Here’s what to know about Florida’s other new property tax law

On Tuesday, Florida voters approved a new property tax amendment that will massively expand the homestead exemption for residents across the state.

But earlier this year, Florida Gov. Ron DeSantis signed another new bill into law that may have a major impact on local governments trying to raise property taxes.

That law — SB 4-F — was approved by lawmakers during the recent property tax special session, which also yielded Amendment 3.

But unlike that amendment, SB 4-F doesn’t alter the state’s constitution.

LOCAL PROPERTY TAX CHANGES

Instead, SB 4-F revises how local governments calculate the maximum property tax rate that may be adopted with a simple majority vote.

Under current law, local governments may raise the rolled-back rate — the rate necessary to bring in just as much revenue as the prior year — based on growth in Florida’s per-capita income, state officials explain. SB 4-F removes that adjustment.

In short: this means that local governments can’t rely on the automatic “income-growth” add-on; they’ll instead have to provide public notice and budget hearings, per the existing TRIM law.

SB 4-F also establishes higher approval thresholds for local governments who want to raise these rates:

• Millage rates up to 110% of the rolled-back rate require a two-thirds vote.
• Millage rates above 110% of the rolled-back rate require a:
• • Unanimous vote
  • Three-fourths vote for larger governing boards, or
  • Approval by voters via referendum

Per state officials, these changes are expected to bring down the base millage rate for many areas of the state and limit local governments’ ability to raise property tax collections without broad public support.

SB 4-F took effect immediately upon being signed.

BUDGET POSTINGS?

SB 4-F isn’t the only law that DeSantis signed, either. HB 1329 was also passed.

HB 1329 requires tentative or final budgets be posted to the official website of a local government.

The budget information provided must be downloadable and contain the following details for the proposed, current, and previous four fiscal years:

• Budget overview and summary, including a narrative analysis that also utilizes graphical illustrations to highlight major points of emphasis or trends
• An overall summary of revenue and expenditures of the county or municipality
• A summary of revenue and expenditures by fund
• Summaries of expenses by department and division, program or function, and those related to debt obligations and capital projects
• An organizational chart or staffing summary
• A summary and analysis of reserves and fund balances of the local government

Furthermore, the law requires that local budget officers perform a budget-cutting exercise at least 14 days before the final adoption of the local government’s budget.

HB 1329 takes effect on Jan. 1, 2027.