City staff warn proposed Florida homestead exemption could cut Cocoa Beach revenue by millions

City staff at Cocoa Beach’s budget workshop briefed commissioners on a state-level property tax reform package passed in a recent special session that increases the homestead exemption and requires a 60% voter approval in November to take effect.

Hannah said the legislation would raise the exemption to about $150,000 in 2027 and $250,000 in 2028 and thereafter grow with the Consumer Price Index until a $500,000 cap is reached. While staff said the change would not affect FY27 budgets, preliminary fiscal-impact figures provided by the Florida League of Cities estimated roughly $3.5 million of local revenue loss in FY28 and about $5 million in FY29 for Cocoa Beach if voters approve the referendum.

Commissioners and members of the public urged caution in committing to new recurring expenditures before the referendum outcome is known and stressed the need to monitor the measure’s progress and its potential effect on reserve planning and the five-year CIP.

Staff recommended continued monitoring and scenario planning; no formal action or vote was taken during the workshop.