Property tax plan draws warning from St. Pete City Council

The St. Petersburg City Council has formally warned state lawmakers that property tax cuts could put public safety, infrastructure and other essential city services at risk.

Council members approved a resolution urging the Legislature to “carefully consider the practical and financial impacts” of any proposed property tax changes before advancing a constitutional amendment or related legislation.

City Council Member Brandi Gabbard also wrote on social media that the proposal before the Legislature could have a significant impact on the city budget if approved by voters during the November election.

“As Chair of the Legislative Affairs and Intergovernmental Relations (LAIR) Committee, my priority is protecting our city’s financial stability and essential services,” Gabbard wrote on social media Tuesday. 

“Last week, I led the City Council in passing a formal resolution opposing the state’s current property tax reform proposal. We are taking a firm, fact-based stand because this legislation risks underfunding our public safety budgets and shifting an unfair financial burden onto non-homesteaded properties and renters. Strong leadership means confronting these challenges early, and we are committed to defending our community’s local priorities.”

The resolution, passed last week, comes as Gov. Ron DeSantis pushes a proposal, titled “Save Our Homes from Excessive Property Taxes,” that could eventually eliminate property taxes on homesteaded properties. 

But for St. Petersburg officials, the proposal raises questions about how the city would pay for police, fire, infrastructure, stormwater upgrades, parks, libraries and other day-to-day services if a major recurring revenue source is reduced or eliminated.

The resolution indicates that property taxes do not fully cover the cost of the city’s public safety budget, and notes that the cost of police, fire and emergency services is expected to rise each year.

“Eliminating or substantially reducing this recurring funding source would undermine the city’s public safety funding structure, limit the ability to safely manage future growth, and force difficult trade-offs affecting essential City services,” the resolution says.

The local pushback comes as DeSantis and state officials argue local governments have become overly dependent on excessive property tax collections, frequently comparing increases in taxes paid to population growth rates.

Local government property tax collections have nearly doubled over the past seven years, increasing from roughly $32 billion to $60 billion statewide, and are projected to reach $83 billion by 2032 if current trends continue, according to reporting by the St. Pete Catalyst citing figures from the Governor’s Office.

In an analysis shared with members of the Pinellas County legislative delegation, the city estimated that the proposal would cost St. Petersburg about $38 million in ad valorem revenue in the 2028 fiscal year and $75 million in the 2029 fiscal year.