Fort Walton Beach sets property tax rate at 4.3282 Mills for 2025-26 Budget

In Brief:

🏛️ City Council voted 4-3 to set the maximum millage rate at 4.3282, preserving the current rate.
📈 Property values rose nearly 10%, resulting in projected revenue increases for both the general fund and CRA.
📅 Two public hearings are scheduled for September, when the final millage rate will be determined.

The Fort Walton Beach City Council voted 4-3 on June 24 to set the maximum property tax millage rate at 4.3282 for the 2025–26 fiscal year, preserving the city’s current rate amid rising property values and growing fiscal demands.

The decision establishes a ceiling for the city’s upcoming budget process and will be submitted to the Okaloosa County Property Appraiser, appearing in residents’ “Notice of Proposed Taxes” in August.

Councilman Bryce Jeter, who made the motion, stressed that the vote was procedural.

“This is just setting the maximum rate,” Jeter said. “We’ll have two more meetings where we can look at other options. The goal is to give staff a ceiling to build different budget scenarios.”

Finance Director Nicole Nabors told the council that taxable property values have increased 9.71%, raising the city’s total to over $2.41 billion. Maintaining the current millage would generate an estimated $764,000 in additional general fund revenue and $115,000 more for the Community Redevelopment Agency, which grew by 102 parcels this year through a Tax Increment Financing expansion.

However, the vote exposed a divide on the dais. Councilman Payne Walker opposed keeping the current rate, citing pressure on renters and landlords due to rising tax bills.

“Even if the millage rate stays the same, when home values go up, so do taxes,” Walker said. “That burden gets passed on, especially to renters. I’ve had calls from landlords who are increasing rents because taxes and insurance have gone up.”

Nabors noted that adopting the rollback rate of 4.0543 mills — the level needed to hold revenue flat year over year — would result in a $524,000 shortfall to the general fund. Under the current rate, a homesteaded property with a $100,000 taxable value would pay about $13.70 more annually, while a non-homesteaded property would pay roughly $27.39 more.

Former Councilman Travis Smith spoke during public comment, encouraging the council to act decisively.

“If you’re going to cut it, cut it now,” Smith said. “My experience has been, if you set it at the maximum, staff is going to budget for the maximum.”

City Manager Jason Davis said his team will develop multiple budget scenarios using different millage rates.

“The council’s going to have to tell me what projects we’re cutting, what departments we’re cutting,” Davis said. “Then we can go forth and conquer from there.”

Walker also requested that staff provide data comparing budgeted versus actual property tax revenue over the past three years to assess forecasting accuracy.

The vote initially ended in a 3-3 deadlock, with Mayor Nic Allegretto casting the tiebreaker in favor of maintaining the current rate as the maximum.

The council scheduled two public hearings to finalize the millage rate and budget: September 9 and September 23, both at 6 p.m.