St. Petersburg officials said on June 1 that Governor Ron DeSantis’ proposed property tax reform could lead to a significant reduction in city revenue, potentially requiring major cuts to services and increased user fees to balance the budget.
The city’s analysis, shared with the Pinellas County legislative delegation, estimates that the proposal would cost St. Petersburg about $38 million in ad valorem revenue for fiscal year 2028 and $75 million for fiscal year 2029. The plan is still under negotiation by the Legislature and aims to increase the homestead exemption while requiring local governments to allocate remaining property tax funds primarily for core public needs.
According to St. Petersburg’s current fiscal policy, all ad valorem revenue is first directed toward police and fire services. In fiscal year 2026, the city collected approximately $228.9 million in total ad valorem revenue; after transferring $26.5 million to three tax increment districts, $202.4 million remained—covering about 92% of public safety costs, with other general fund revenues making up the difference.
The analysis states that any major reduction in property tax income would require the city to “significantly reduce services outside of Public Safety and implement increased use fees to maintain a balanced budget.” Officials identified potential risks for community enrichment programs such as libraries, senior centers, athletic facilities, parks maintenance, homeless services—including contributions to organizations like St. Vincent de Paul—and support for arts initiatives and youth employment programs.
Other functions at risk include traffic management infrastructure, planning and zoning services, code inspections and compliance activities, legal services, procurement processes, human resources functions, customer service operations, preservation efforts for historic sites and environmental resources, as well as economic development coordination. Residents may also face higher costs through increased user fees at parks or community event spaces; according to officials, these could double or triple under the new proposal.
Affordable housing subsidies may also be reduced if voters approve cuts in November affecting overall property tax revenues.
