Broward County is at a critical juncture as proposed state-level property tax reforms threaten to dramatically impact municipal revenues. Governor Ron DeSantis has championed significant property tax reductions, aiming to provide relief to homeowners. However, a new report highlights the potential "dramatic erosion of municipal revenue" in Broward, raising concerns about the sustainability of essential local services.
Key Takeaways
- Proposed property tax reforms in Florida could significantly reduce municipal funding in Broward County.
- Property taxes are the primary revenue source for local governments, funding essential services like public safety.
- Various legislative proposals aim to cut property taxes, with differing impacts on Broward’s cities.
- Broward County has seen a substantial rise in property taxes in recent years.
The Threat to Municipal Services
Property taxes are the lifeblood of local governments in Broward County, accounting for an average of 48% of a city’s general fund. The Broward League of Cities and the Broward County City Managers’ Association have released a report detailing the potential consequences of legislative efforts to cut these taxes. The report, "Impact of Property Tax Reform on Broward County Municipalities," analyzes several House Joint Resolutions (HJRs) and their fiscal implications.
Public safety, which includes police, fire, and EMS services, represents the largest portion of municipal general funds, averaging 55% in Broward. Proposed bills that would prevent cuts to law enforcement funding would necessitate budget reductions in other departments, such as parks and recreation and public works. Furthermore, the loss of property tax revenue could jeopardize cities’ ability to pay down debt and negatively impact their credit ratings.
Analyzing Proposed Reforms
Several legislative proposals are under consideration for the upcoming 2026 session:
- House Joint Resolution 201: This resolution aims to eliminate all non-school district property taxes. It could remove $110 billion in taxable value from Broward’s municipalities. Heavily homesteaded cities like Parkland could lose over 75% of their revenue, while Pembroke Park, with more commercial properties, might only lose 1.3%. Cities like Coral Springs, Miramar, and Pembroke Pines could see revenue losses equivalent to nearly 200% of their Parks and Recreation budgets.
- House Joint Resolution 203: This proposal suggests a gradual phase-out of non-school district property taxes over ten years. While softening the immediate blow, the report warns that rising service costs and a shrinking tax base would still force service cuts before the phase-out is complete.
- House Joint Resolution 205: This would exempt individuals aged 65 and older from paying non-school related property taxes. Cities with a higher senior population, such as Deerfield Beach, would experience significant impacts on their tax bases.
- House Joint Resolution 207: This would introduce a new homestead exemption for 25% of a home’s assessed value. While considered milder, it could still lead to an average revenue loss of around 11% for Broward cities, with some, like Cooper City and Parkland, potentially losing over 20%.
Rising Property Values and Taxes in Broward
Adding to the complexity, Broward County has experienced a significant increase in property taxes. Between 2019 and 2024, Broward County saw the sharpest percentage increase in property taxes among 15 ranked counties, with a 56.80% rise. This trend is partly driven by rising property values, which grew by 8.8% in Broward County in the past year, with new construction adding $3.3 billion to the tax roll. While this growth indicates a healthy market, it also presents affordability challenges for residents, particularly younger generations.
Broward County Property Appraiser Marty Kiar emphasized the critical nature of the upcoming legislative votes, stating they will be "one of the most consequential votes you’ll ever take." The report concludes by urging state leaders to collaborate with municipalities to find solutions that balance taxpayer relief with the imperative to maintain essential public services.
Sources
- Report warns of ‘dramatic’ impact of proposed property tax reforms in Broward, WLRN.
- A property tax primer by a Broward expert, Sun Sentinel.
- 15 counties with the sharpest rise in property taxes, National Mortgage News.
- Fort Lauderdale, Hollywood see taxable property values grow, Miami Herald.