BOCA RATON, FL — The proposal could mean lower tax bills for many homesteaded Boca Raton homeowners. It could also mean less money for City Hall.
The discussion followed Boca Post’s earlier reporting on the scheduled June 9 review, which previewed the city’s analysis of how the proposed state property tax changes could affect future revenue, fees, services, and budget planning in Boca Raton.
That tradeoff was the focus Tuesday as Boca Raton City Council reviewed a staff analysis of state property tax reform expected to go before Florida voters in November 2026.
City staff said the proposal could reduce Boca Raton revenue by about $8.14 million at first, then by about $16.73 million once fully phased in.
Supporters of the reform say that is the point. They argue homeowners need relief, local governments should control spending, and cities should look for savings before raising fees or taxes elsewhere.
City staff and some council members warned that a revenue reduction of that size could force future decisions involving services, fees, millage rates, staffing, public safety, parks, libraries, and other parts of the city budget.
No budget cut is expected for the upcoming budget year. According to the city, any impact would begin with the FY 2027-28 budget and would be phased in over two fiscal years.
What The State Proposal Would Do
The discussion focused on House Joint Resolution 1-F and Senate Bill 4-F, a state property tax reform package tied to the homestead exemption.
According to the city presentation, the proposal would replace the current $50,000 homestead exemption structure with a $150,000 exemption effective Jan. 1, 2027.
The exemption would increase to $250,000 effective Jan. 1, 2028.
The change would apply to non-school ad valorem property taxes, including taxes levied by cities, counties, and special districts. It would not affect school property taxes or non-ad valorem assessments, such as certain fire rescue, stormwater, solid waste, street lighting, or other parcel-based assessments.
City staff said the amendment would require at least 60% voter approval.
The proposal also would reduce the annual assessed value growth cap for non-homesteaded properties from 10% to 5%, according to the city.
The Taxpayer Argument
Several residents and online commenters pushed back against framing the proposal mainly as a budget threat.
Resident Mike Liebelson told the council that lower property taxes could help families trying to buy homes in Boca Raton. He argued the city should look for spending reductions before considering millage rate increases or new fees.
Liebelson said the proposal would return money to residents and called on the city to find $8 million in savings next year and $16 million the following year.
Other residents and commenters made similar points, arguing that government should reduce costs, review staffing, and avoid shifting the savings into other taxes or fees.
That argument reflects the larger political debate behind the proposal: as property values have risen, local governments have collected more revenue, and some taxpayers believe cities should be able to absorb a reduction without cutting essential services.
What Boca Raton Says The Numbers Show
City staff said Boca Raton’s estimated taxable value would fall from about $41.65 billion to about $37.06 billion if the proposed homestead exemption increase is approved.
That would reduce the city’s total tax base by about 11.01%, according to the presentation.
The city estimates the $150,000 exemption would reduce annual city revenue by about $8.14 million. At the $250,000 level, the annual reduction would rise to about $16.73 million.
City staff said that larger figure equals about 11.56% of total property tax revenue and about 6.10% of general fund revenue.
Boca Raton’s FY 2026-27 draft budget projects $144.68 million in ad valorem tax revenue, making up about 52.77% of the general fund budget.
The city also noted that only 21.55% of property taxes paid by Boca Raton residents goes to the city. The rest goes to other taxing agencies in Palm Beach County, with schools receiving the largest share. School taxes would not be affected by the proposed reform, according to the city.
How Homeowners Could Benefit
City staff presented examples using 2025 tax data.
In one example, a homesteaded property purchased in 1992 would see its total tax bill fall from $5,051 to $2,914, a reduction of $2,137.
In another example, a homesteaded property purchased in 2023 would see its total tax bill fall from $13,098 to $10,961, also a reduction of $2,137.
The city said homesteaded properties with the same taxing agencies would receive the same dollar benefit. Longer-term homesteaded properties would see a larger percentage reduction because their taxable values are already lower under existing assessment protections.
Non-homesteaded properties, including rental units, commercial properties, industrial properties, and seasonal homes, would not receive the same homestead exemption benefit.
The Budget And Services Argument
City staff did not recommend one specific response Tuesday.
Instead, the presentation laid out options the council may need to consider if voters approve the measure.
Those options include reducing services, changing budget priorities, raising the millage rate, increasing fees, creating new revenue sources, adjusting assessments, rebating CRA tax increment revenue, outsourcing certain city operations, or monetizing city assets.
The city said public safety makes up 62% of the general fund budget. The public safety budget is about $157.7 million, or 109% of projected property tax revenue.
According to the city, absorbing the full $16.73 million impact through across-the-board cuts would require reductions of about 6.53%.
If police and fire rescue were excluded from cuts, reductions to the rest of the general fund would need to average about 16.96%, according to the presentation.
City staff also said increasing the millage rate from 3.6649 mills to 4.1078 mills would fully replace the lost revenue. The presentation noted that would still be below the 10-mill legal maximum.
Other options listed by staff included increasing the non-ad valorem fire fee, raising some user fees to full cost recovery, creating assessments for neighborhood services or infrastructure, and evaluating other revenue sources.
Council Reaction And Public Pushback
Council Member Yvette Drucker criticized the state proposal and said state leaders should have focused on property insurance reform instead of local property taxes. She said Boca Raton has been fiscally responsible and warned that reduced local revenue could affect services residents expect.
Drucker also pointed to public safety response times as one area where service reductions could have real consequences.
Council Member Stacy Sipple said Boca Raton may have more options than some smaller Florida cities, but warned that the proposal could hit harder in communities with fewer revenue sources.
Deputy Mayor Michelle Grau urged residents to attend the city’s June 18 budget workshop and said local budget decisions should involve the public.
Not everyone at the meeting agreed with the city’s concerns.
Liebelson argued that Boca Raton’s property tax revenue has increased significantly in recent years and said the council should focus on cuts before discussing new fees or higher millage rates.
Resident Martin Bell also urged the city not to panic, saying future development, reserves, and careful budget planning could help soften the impact.
What Happens Next
The state proposal is expected to go before Florida voters in November 2026.
For Boca Raton, the next step is the city budget process.
The city’s next budget workshop is scheduled for June 18, 2026. City staff said Boca Raton must adopt its FY 2026-27 budget by Sept. 30, 2026.
If voters approve the property tax reform proposal, the council would need to decide how to handle the future revenue reduction before the FY 2027-28 budget.
For residents, the question is likely to remain simple but difficult: how much tax relief should homeowners receive, and what should city government change if that money no longer comes in?
New residential projects, commercial construction, and redevelopment proposals are constantly reshaping Boca Raton. Follow our Boca Raton City Government and Development coverage for detailed reporting on zoning applications and planning board reviews.
