State Reps. Nathan Boyles and Patt Maney, along with state Sen. Don Gaetz, heard from local officials and residents about the changes and what they could mean for local governments.
Okaloosa County Commission Chairman Trey Goodwin asked lawmakers to support a plan that would replace the remaining property taxes on homestead properties with a 1 percent local sales tax.
“One percent is the magic number that works in Okaloosa County,” Goodwin said.
Goodwin said 68 percent of Okaloosa County voters supported Amendment 3, while the same percentage voted to renew the county’s local option sales tax for infrastructure.
He said the idea is to give counties a choice in how they collect taxes. In Okaloosa County, Goodwin estimated that about a third of the sales tax revenue would come from people who live outside the county.
Crestview Mayor JB Whitten also spoke about Amendment 3 and what it means for city budgets.
“We still need police officers and firefighters to answer calls, and we still need to maintain our roads, stormwater systems, and water infrastructure,” Whitten said.
He said that some cities will have a harder time making up for lost property tax revenue than others, especially smaller cities with fewer sources of income.
Whitten asked lawmakers to involve city officials as they work out how Amendment 3 will take effect and give them time to plan their budgets.
“I’m asking the delegation to bring city officials into the discussion early, give us clear rules in time to plan our budgets, and preserve local flexibility so city councils can make spending decisions that reflect their communities’ needs,” Whitten said.
Valparaiso Mayor Joe Morgan told lawmakers that property taxes account for about 44 percent of the city’s general fund revenue, which supports police, fire protection, parks, streets and other services.
He said the city’s property tax revenue increased by just 1 percent from higher property values while operating costs have risen between 8 percent and 10 percent.
“We’re already tightening our belts,” Morgan said.
State Sen. Don Gaetz said lawmakers have a difficult job ahead as they work to implement Amendment 3.
He said state economists expect Florida to finish the next year in the black, but the state could face a $1 billion shortfall the following year.
“We do face an excruciating and difficult task of implementing Amendment 3,” Gaetz said.
He encouraged residents to stay in touch with lawmakers, even after the meeting.
“We want your voices heard in Tallahassee as we take up these matters,” he said.
