Niceville Mayor Dan Henkel and City Manager David Deitch hosted a town hall on property tax Monday evening, inviting residents to an open discussion.
Niceville residents gathered in the community center to hear Deitch present on how the potential loss of property tax revenue could affect the city’s services and operation before responding with their own questions and concerns.
Though Deitch has been a vocal opponent of Gov. Ron DeSantis’ proposed “Save Our Homes” amendment, he said his only goal at the town hall was to educate and encourage Floridians to vote in November’s general election.
Deitch opened the town hall with a slideshow on property taxes and what they fund, then explained DeSantis’ proposed changes to the current homestead exemption.
Deitch’s data showed that by 2029, Niceville could lose 57% of its overall property tax revenue if DeSantis’ proposal passes. Deitch said this would raise costs in other areas for taxpayers.
“This is not a tax cut,” he said. “This is a tax shift, because again, the cost of services does not change; only the revenue does. Those expenses aren’t going away. So, if I am going to maintain the same level of service, your same quality of life, where does that money come from? Increased taxes, increased fees, etc. etc.”
Deitch shared examples of real Niceville residents showing what they’d save if they didn’t pay property taxes.
This individual, this resident, her home is worth 103,” he said. “The assessed value is worth $103,593. … At the $250,000 homestead exemption, this resident is going to save $1.05 a day.”
The most expensive homestead Deitch analyzed would save its owner $4.55 a day under the property tax amendment.
What this means for local budgets
After presenting, Deitch opened the floor for a Q&A.
One resident said predicting future revenue loss without accounting for new tax revenue from potential new builds in Niceville isn’t accurate. Mayor Dan Henkel responded.
“So, as most of you know, Niceville is landlocked,” Henkel said. “ We got water to the south. We got Eglin Reservation to the east, west and to the north. We are not going to grow much more. So, when we talk about what possible additional revenue might come in based on growth — not much.”
Attendees then began to discuss ways the city could make up revenue lost from a property tax cut. Some raised concerns that Deitch had only shared potential negative impacts DeSantis’ property tax proposal could cause.
“We’re considering a myriad of options — millage rate increases, increased fees, new fees that don’t currently exist, reduction in services, right?” Deitch responded. “But what I’m asking you is — it’s a rhetorical question — What do you want me to reduce or eliminate entirely to [save] $2.6 million? … There aren’t enough fees I can charge to cover that value.”
Deitch concluded the town hall by asking residents to “vote their conscience.”
“I don’t care how you vote, but for the love of God, vote. It’s your constitutional right.”
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