Florida Law SB 4-F Limits Local Property Tax Increases

Florida law now restricts how local governments can raise property taxes. The change comes from SB 4-F, which Governor Ron DeSantis signed earlier this year. The law took effect immediately upon his signature. It operates alongside the new homestead exemption amendment that voters approved on Tuesday.

SB 4-F was passed during the recent property tax special session. Lawmakers included it in the same session that produced Amendment 3. Unlike Amendment 3, however, this new statute does not alter the state constitution. It changes the calculation methods used by local jurisdictions. The law targets the rolled-back rate, which is the rate needed to generate the same revenue as the prior year.

Under previous rules, local governments could increase the rolled-back rate based on growth in Florida’s per-capita income. SB 4-F removes that automatic adjustment. Local governments can no longer rely on this income-growth add-on. Instead, they must follow the existing TRIM law. This requires public notice and budget hearings for any rate changes.

The statute also establishes stricter voting requirements for local governing boards. If a local government proposes a millage rate up to 110 percent of the rolled-back rate, the board must pass it with a two-thirds vote. If the proposed rate exceeds 110 percent, the requirements become more stringent. Smaller boards require a unanimous vote. Larger boards require a three-fourths vote. Alternatively, voters must approve the rate via referendum.

State officials expect these changes to lower base millage rates in many areas. The law limits the ability of local governments to increase property tax collections without broad public support. The threshold for raising taxes is now higher than it was under the old income-adjustment system.

Governor DeSantis also signed HB 1329 during the same legislative period. This bill requires local governments to post tentative or final budgets on their official websites. The posted information must be downloadable. It must cover the proposed year, the current year, and the previous four fiscal years. The data must include budget overviews, revenue and expenditure summaries by fund, and departmental expense breakdowns.

HB 1329 also mandates that local budget officers perform a budget-cutting exercise. This exercise must occur at least 14 days before the final adoption of the local government’s budget. This law is not yet in force. It will take effect on Jan. 1, 2027.