- The Florida Legislature proposes raising homestead exemptions from $50,000 to $250,000, potentially reducing taxable property values by 15.69% to 44.51% in Alachua County.
- Alachua County could lose $48.9 million in revenue, while the city of Gainesville might lose $12.6 million under the proposed exemption increase.
- High Springs faces the highest revenue loss among local cities at $1.82 million due to a 44% reduction in taxable value on 2,251 properties.
The Florida Legislature is advancing a proposal to raise homestead exemptions from $50,000 to $250,000 if approved by citizens, and local cities are counting the cost to their budgets.
For Alachua County and its nine municipalities, the $250,000 would mean anywhere from a 15.69% to a 44.51% reduction in their taxable values, using 2025 numbers.
The biggest loser would be High Springs with 2,251 homesteaded properties and the 44% reduction. The percentage would translate to $1.82 million in less revenue if the higher homestead exemption were in place for the current fiscal year. The city’s total general fund revenues were projected to hit $5.2 million in the current budget, with $3.9 million from property taxes.
Alachua County, though, would lose the most revenue at $48.9 million, followed by the city of Gainesville at $12 million.
According to the Alachua County Property Appraiser, there are 54,774 homesteaded properties in the county. The town of LaCrosse has the fewest, at 82, resulting in an estimated revenue loss of $30,000.
Alachua County levied $190 million in property tax revenue for the current fiscal year, plus another $35 million from the MSTU Law Enforcement tax. In a press release, the county said it’s required to spend $178 million of that revenue on mandated services like the sheriff’s office, state attorney, public defender, tax collector and supervisor of elections.
The sheriff’s office accounts for the bulk of the funding, at $136 million.
The county said the $250,000 homestead exemption would leave around $11 million in general revenue for the following services: community redevelopment agency commitments, animal resources, parks, codes enforcement, community support services such as affordable and workforce housing programs, roads, growth management functions not covered by fees, facilities and other core county operations, including administrative functions.
The county does have some special revenue streams, like its one-cent infrastructure surtax, that can assist in some of those areas.
Gov. Ron DeSantis and state republicans have heralded the homestead increases as a tax saver for residents and a way to make homes affordable, while also aiming at local taxing authorities for what they’ve called wasteful spending.
A supermajority of the Florida Legislature voted in favor of the proposal on Tuesday, and now voters will have the final say, needing 60% approval to pass.
DeSantis said the $250,000 homestead exemption would eliminate property taxes for 60% of Florida homeowners—though a PolitiFact check placed the number at 30%.
Alachua County taxable value loss with 2025 numbers under the new proposal:
Alachua County
- $48.9 million estimated revenue loss
- $6.44 billion taxable value loss
City of Gainesville
- $12.6 million estimated revenue loss
- $1.87 billion taxable value loss
City of Alachua
- $2.38 million estimated revenue loss
- $381.06 million taxable value loss
City of Archer
- $100,000 estimated revenue loss
- $15.2 million taxable value loss
City of Hawthorne
- $120,000 estimated revenue loss
- $19.35 million taxable value loss
City of High Springs
- $1.82 million estimated revenue loss
- $259.8 million taxable value loss
Town of LaCrosse
- $30,000 estimated revenue loss
- $5 million taxable value loss
Town of Micanopy
- $80,000 estimated revenue loss
- $15.4 million taxable revenue loss
City of Newberry
- $2 million estimated revenue loss
- $340.2 million taxable value loss