DeSantis's tax cut hits small towns like Howey-in-the-Hills harder than Orlando

A bedroom town loses a bigger share than the city

Gov. Ron DeSantis championed the property tax cut voters passed Nov. 3, and Howey-in-the-Hills, a small Lake County town, now plans to dip into its reserves to absorb it. Howey-in-the-Hills loses 22.5% of its general fund once the cut is fully phased in, an Orlando Sentinel analysis found.

Why it matters: Orlando loses about 7.6% of its general revenues, the Sentinel found, so the same cut hits small bedroom towns much harder. That money pays for their police, parks and libraries. Their mayors now talk of using reserves, freezing spending and merging police.

The story so far: Voters passed Amendment 3 with about 62% in unofficial results. It raises the homestead exemption from non-school taxes to $150,000 in 2027 and $250,000 in 2028. DeSantis says he will call a special session before his term ends in early January, and no date is set.

The state's estimate, town by town

The state's Revenue Estimating Conference priced the amendment this summer, and its town-by-town table gives each loss to the dollar. Howey-in-the-Hills, a small town in mostly rural central Lake County, loses $507,321 in the 2027-28 budget year and $936,752 in 2028-29. Its loss reaches $1,249,929 by 2031-32.

Orlando loses $31.7 million in 2027-28 and $59.5 million in 2028-29, rising to $100.1 million by 2031-32, the state estimates. Oviedo loses $5.59 million and then $10.4 million. Winter Springs loses $2.46 million and then $4.49 million.

Belle Isle loses $1.08 million and then $2.07 million. Eatonville loses $151,899 and then $253,876. In Palm Beach County, Lake Worth Beach loses $2.94 million and then $5.11 million.

Statewide, local governments lose $4.93 billion in the first budget year and $11.8 billion a year once the cut recurs in 2031-32, the state estimates. Cities, with the districts they run, lose $1.29 billion in the first year.

The table prices the whole amendment. Besides the bigger homestead exemption, it cuts the yearly cap on taxable-value increases for non-homestead property from 10% to 5%.

By our arithmetic, Orlando's 2028-29 loss is about 64 times Howey-in-the-Hills'. Howey's own loss grows about 85% from the first year to the second.

Why the shares differ so much

The Sentinel compared Florida TaxWatch's town-by-town projections, which match the state's table, with each government's current general fund. Florida TaxWatch is a nonprofit led by former Lt. Gov. Jeff Kottkamp.

Howey-in-the-Hills' $936,752 is 22.5% of its roughly $4.2 million general fund, the Sentinel calculated. That fund pays for the town's police, library, parks and special events, including its Christmas Festival. The town has seven full-time police officers.

In Oviedo, a Seminole County city, just over 66% of taxable properties are homesteads, the Sentinel reported. Its loss of more than $10.4 million is nearly 23% of its roughly $46 million budget. Belle Isle, population about 7,500, gives up about $2 million, 19% of its general fund. Winter Springs gives up about $4.5 million, just over 16% of its $26.3 million general fund.

Orlando's loss of about $60 million is about 7.6% of its general revenues, the Sentinel calculated. The city taxes downtown high-rises and commercial and industrial property that does not get the Amendment 3 break. It also collects big helpings of sales tax and other business taxes.

Once the cut is fully in place, the losses run from 4% of Eatonville's general fund to 32% of Lake County's, the Sentinel found. Eatonville's hit is small because so much of its population rents.

The Sentinel's "2028" figures equal the state's 2028-29 budget-year column. The cuts take effect Oct. 1, 2027, the Sentinel reported.

What the mayors say

Howey-in-the-Hills Mayor Graham Wells said the town is in no danger of losing its police department or festivals. It will pull money from reserves in 2027. "It's not going to impact us from paying the bills," he said. "But the second year is a completely different ball game." He expects 2,600 new homes "by the next five or 10 years" and a new Publix-anchored shopping center to add revenue.

Oviedo Mayor Megan Sladek wants Seminole County to talk about its eight law enforcement agencies. "We need to have a full and robust discussion on whether it makes sense to have eight law enforcement agencies," she said. "Can we collaborate? Can we consolidate?"

Belle Isle Mayor Jason Carson said the city, Orlando's smaller neighbor to the south, has a spending freeze in place. "We're not going to press the panic button," he said. Winter Springs Mayor Kevin McCann said, "Everything is on the table." Asked whether the city faces unincorporation, he said, "I will fight that forever."

Before Election Day, Orlando Mayor Buddy Dyer froze hiring and put last year's budget savings into a "stabilization fund," the Sentinel reported.

In Palm Beach County, Lake Worth Beach Mayor Betty Resch said: "We can't just keep raising the fees. We can't charge somebody if they want to go to the library," WPTV reported.

Polk County Sheriff Grady Judd, one of the amendment's biggest critics, said he will not lay off staff or cut pay, but a hiring freeze is coming, Bay News 9 reported. "You can be assured that over the next few years we won't be adding additional staff," he told Police1. Of the Legislature, he said: "They put it on the ballot. They knew there was going to be significant cuts if it passed."

In the Panhandle, Okaloosa County Administrator John Hofstad warned the losses could be existential for some smaller cities and could lead to dissolution, WEAR-TV reported. The county would then absorb the city and its debt.

DeSantis's promise

Before the vote, DeSantis dismissed law enforcement warnings, including the Florida Fraternal Order of Police's, as "fear-mongering," WUSF reported. At a Cabinet meeting he said state grants could fill some gaps. "If there is a local police department that needs an officer or two, we've got great money," he said. "I'm happy to help through a transitional phase."

After the vote he promised more. "I'll also work with the legislature to provide a pool of funding that we can issue grants to local governments for core needs," he said, Bay News 9 reported. He also wants a taxpayer bill of rights so residents are not hit with "pay fees or play games." He named no amount for the grant pool.

Their side

Florida Realtors, which backed the amendment, has said property tax relief and maintaining public safety can both be priorities, Police1 reported, citing PolitiFact.

Kottkamp said: "Florida voters are telling local governments they need to tighten their belt." The real question, he said, is whether they "truly tighten their belt and reduce services, or will they simply increase fees and other taxes to offset the loss of revenue."

Opponents included firefighters, police, emergency medical technicians, local officials and top Republican leaders, WLRN reported. They argued the cut was too drastic for rural counties to absorb without hitting essential services.

What's next

What's next: The Legislature meets to organize on Tuesday, Nov. 17. DeSantis wants a special session before his term ends in early January, and no date has been set. The first cuts take effect Oct. 1, 2027, the Sentinel reported.

Sources we read

The Revenue Estimating Conference's adopted impact statement for CS/HJR 1F, July 10, 2026, with Addendum 1, the municipal table. Orlando Sentinel (Martin E. Comas, Ryan Gillespie), Nov. 8. WUSF and Suncoast Searchlight (Christian Casale), Oct. 4. CBS News Miami, Nov. 4. Bay News 9, Nov. 5. Police1, Nov. 4. WEAR-TV, Nov. 4. WPTV, Nov. 5. WLRN (Ana Goni-Lessan, News Service of Florida), Nov. 4. Florida TaxWatch, Nov. 4. Florida Phoenix, Nov. 5.