St. Augustine budget planning faces proposed homestead tax change

St. Augustine and St. Johns County are planning around an unresolved November ballot question that could reduce future property-tax revenue from homesteaded property. The City of St. Augustine published a local FAQ on July 23, 2026, after the county presented a proposed fiscal 2027 budget on July 21. The proposed constitutional amendment has not been approved by voters, and the city has not announced specific cuts or service changes.

What voters will decide

Florida’s CS/HJR 1-F is scheduled to appear on the November 3, 2026, general-election ballot. Because it would amend the state constitution, it must receive at least 60% approval from voters to take effect.

If approved, the proposal would increase Florida’s homestead exemption for non-school property taxes from the current $50,000 to $150,000 beginning January 1, 2027. It would rise to $250,000 beginning January 1, 2028, with inflation adjustments beginning in 2029.

The larger exemption would apply to city, county and other eligible local taxing authorities. It would not reduce the school-tax portion of a property-tax bill. The effect on an individual homeowner would vary based on assessed value, exemptions, millage rates and the other taxing authorities included on the bill.

Why St. Augustine is watching

The City of St. Augustine says it expects approximately $25 million in ad valorem revenue during fiscal year 2026. The city also says roughly 38% of a typical property-tax bill is allocated to the city, with the remainder distributed among St. Johns County, the School District and other taxing authorities.

City property-tax revenue supports services including police, fire, streets, parks and grounds maintenance, public works, planning, historic preservation, code enforcement, facilities and other local operations. The city has not identified specific departments for reductions. Instead, it says it could review staffing levels, service levels, open positions, user fees, parking fines, other revenue sources and expenditures if future revenue declines.

Any changes would have to be considered through the City Commission’s public budget process. The city’s water and wastewater utility, stormwater utility, marina, sanitation services and Visitor Information Center are generally supported through enterprise funds and user fees rather than property taxes.

County projections add to the uncertainty

St. Johns County’s proposed fiscal 2027 budget was presented as being “drafted with uncertainty” because of the possible amendment. County officials estimate that countywide property-tax revenue could fall by roughly $66 million in fiscal 2028 and $130 million in fiscal 2029 if voters approve the measure.

Those are countywide projections, not St. Augustine-specific losses. They span the county’s general fund, fire district and transportation trust fund. The county fire-district rate does not apply inside the City of St. Augustine.

The county has begun reviewing exposed operations and funding sources, pausing some new recurring spending, reviewing capital projects and considering alternative revenue sources. Those steps reflect planning under uncertainty, not adopted cuts caused by the amendment.

What residents should watch next

St. Augustine voters will decide the amendment on November 3. Before then, residents can expect the city and county to continue developing budgets without knowing whether the higher exemption will take effect. Future budget documents will show whether officials recommend changes to staffing, services, fees or capital projects.

For homeowners, the immediate question is whether the amendment passes the 60% threshold. For renters, workers, businesses and other residents, the longer-term question is how the city and county would respond if taxable value declines and local governments must balance service needs with reduced revenue.

Sources

• City of St. Augustine property-tax amendment FAQ
• Florida Senate CS/HJR 1-F bill summary
• Jacksonville Daily Record: proposed St. Johns County budget
• St. Johns County Supervisor of Elections 2026 calendar