Understanding Municipal Property Taxes
Property taxes are how cities fund the services people count on—law enforcement, road repair, emergency response, and more. Unlike other revenue sources, they stay in the community where they’re raised, giving residents a strong say in how dollars are spent.
Where Your Sanford Property Tax Dollar Goes
Every dollar of property tax helps keep our city running! The City of Sanford has a current General Fund budget of 85.6 million dollars. Your property taxes provide 55% of funding for that budget. Those funds help support:
- Public Safety – Police & Fire
- Public Works & Utilities – Roads, water, sewer
- Finance/IT
- Development Services – Building, Planning, Code Enforcement
- Parks & Recreation – Parks & Youth and Adult programs
See the chart below to understand the revenue sources that fund the City’s budget.
What Is Being Proposed
- Expanded Homestead Exemption: The non-school homestead exemption jumps from the current $50,000 to $150,000 in 2027, and increases again to $250,000 in 2028 (and adjusted for inflation thereafter).
- Full Phase-Out: The amendment instructs the Florida Legislature to set a legal schedule to completely eliminate all non-school property taxes on homestead properties down the line.
- The “School Tax” Exception: School district property taxes are not affected and will still be collected on all properties.
- New Resident Waiting Period: If you establish Florida residency after January 1, 2027, you must maintain residency for five years before you qualify for the higher $150,000 or $250,000 exemption. During those first five years, you will receive a lesser $50,000 exemption.
- Assessment Cap Cut: For non-homestead properties (including commercial buildings, rental units, and second homes), the maximum annual cap on assessment value increases will be cut in half, dropping from 10% to 5% per year.
- Core Services Mandate: Limit the use of ad valorem revenue by counties and municipalities to the following list of core needs: Provide for public safety, including law enforcement, fire service, and emergency medical service; Provide funding for education and public schools; Finance or refinance infrastructure, including expenditures on road and bridge construction and maintenance and stormwater control; Finance or refinance natural resource projects, including flood control measures; Issue local bonds for uses consistent with the approved uses above, and to make debt service payments for existing obligations; Meet obligations for retirement benefits of local government employees; or Fund the operations and administration of county officers and commissioners established under Article VIII of the Florida Constitution and municipalities, and the expenditures approved by such county officers or county or municipal governing bodies, except those expenditures prohibited by general law.
Where to Learn More
The Florida League of Cities has compiled helpful information on understanding property taxes and how they affect you. Click on the link below to access this resource.
