Florida local governments face strict new limits on their ability to raise property taxes and shield their spending from the public following the signing of two major pieces of legislation. Governor Ron DeSantis signed Senate Bill 4-F and House Bill 1329 into law, marking a significant shift in how cities and counties must handle their budgets and tax rates.
The legislative package is designed to restrict local tax increases and inject transparency into municipal finance, arriving just months ahead of a major property tax amendment heading to voters this fall.
“Florida has reduced its budget for four straight years and has demonstrated fiscal responsibility and respect for taxpayers,” Governor Ron DeSantis said. “Now, we are stepping in to protect taxpayers from taxes at the local level.”
State officials argue the measures are necessary to stop local governments from inflating their budgets and avoiding accountability by using essential services as leverage.
“Local governments have continued to grow their budgets by resorting to scare tactics like threatening cuts to essential services,” Chief Financial Officer Blaise Ingoglia said. “This pivotal piece of legislation pulls the curtain back on local government’s wasteful spending so that Floridians are better equipped to hold their local officials accountable. Thank you, Governor DeSantis, for signing this bill and ensuring that local governments are good stewards of taxpayer dollars.”
Senate Bill 4-F serves as the implementation framework for the “Save Our Homes from Excessive Property Taxes” constitutional amendment, which Florida voters will consider on the ballot in November 2026. The law fundamentally alters how local governments calculate the maximum property tax rate they can adopt with a simple majority vote. Previously, local governments could increase this “rolled-back rate” based on state per-capita personal income growth. SB 4-F eliminates that adjustment, effectively capping the maximum baseline levy at the standard rolled-back rate.
To go beyond that baseline, local boards will now face much higher voting hurdles. Any millage rate increase up to 110 percent of the rolled-back rate will require a two-thirds majority vote of the governing body. Anything higher than 110 percent demands a unanimous vote, a three-fourths vote for larger boards, or direct approval from voters through a local referendum. The bill also expands the explanatory ballot summary language for the upcoming constitutional amendment to give voters a clearer understanding of the measure.
Alongside the tax caps, House Bill 1329—known as the Local Government Financial Transparency and Accountability Act—forces local governments to move their financial data into the open. Counties and municipalities are now required to publish comprehensive, easily accessible financial profiles online. This mandated disclosure includes detailed budget summaries, revenue and expenditure logs, departmental spending breakdowns, staffing information, and exact reserve levels or fund balances.
Local governments must also provide quarterly reports tracking employee compensation and adhere to an annual budget development calendar to promote year-round public visibility.
Perhaps the most notable administrative shift in HB 1329 is a mandatory 10 percent budget reduction exercise. Before a final budget can be adopted, local officials must explicitly identify strategies to trim 10 percent from their proposed spending. These cuts must come from non-essential areas, explicitly protecting core public functions like law enforcement, fire protection, and other legally required government services.
State leaders say this requirement ensures local governments examine internal efficiencies before claiming that taxpayer relief would require cuts to critical public safety services.
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