Politics
Hollywood says proposed homestead tax cuts could leave $34 million budget gap
Hollywood officials say the first phase of Amendment 3 could reduce city revenue by $34 million, forcing choices among service cuts, higher fees or other tax increases. The proposal would expand property-tax breaks for primary residences and leave the Legislature to consider a full exemption later.
HOLLYWOOD, Fla. — City officials warned residents at a public meeting that Amendment 3 could leave Hollywood with a $34 million revenue shortfall, putting pressure on services and the city budget if voters approve the property-tax proposal.
The measure would reduce the taxable value of a primary residence by $150,000 in 2027 and $250,000 in 2028. After those reductions, the Florida Legislature would decide whether to eliminate property taxes on primary residences altogether.
Adam Reichbach, Hollywood’s deputy city manager, said the city would have to balance its budget through some combination of spending cuts and increased taxes or fees. He cautioned that no services or programs would necessarily be shielded from reductions.
Property taxes account for 46% of Hollywood’s general fund. If that revenue falls, property owners who do not qualify for a homestead exemption could face higher taxes as local governments seek to make up part of the difference, officials said.
The potential loss comes as the city faces rising operating expenses. Reichbach cited increases of more than 25% in landscaping contracts and police vehicle costs, and a 160% increase in medical supplies. Fuel costs also affect police and fire operations, he said.
The meeting gave residents an opportunity to ask questions about the proposal and its possible effects on city finances. The measure would lower taxes for eligible homeowners, while leaving cities to contend with reduced revenue and difficult budget choices.