Okaloosa County keeps property tax rate flat for FY2026, advances $687M budget amid surging property values

In Brief:

  • 🏡 No Property Tax Increase: The county’s ad valorem rate remains at 3.8308 mills for the eighth consecutive year.

  • 📈 $687 Million Budget: Growth in property values helps fund an expansive budget without changing the tax rate.

  • 📅 Hearings Set: Public budget hearings are scheduled for Sept. 4 in Crestview and Sept. 16 in Shalimar.

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SHALIMAR — The Okaloosa County Commission voted unanimously Tuesday to hold its property tax and MSTU millage rates steady for the upcoming fiscal year, advancing a proposed $687 million countywide budget.

The vote followed a budget workshop held on July 22, during which County Administrator John Hofstad presented a comprehensive overview of revenue projections, historical property valuations, and long-term fiscal trends.

He recommended keeping the ad valorem millage rate at 3.8308 mills — where it has stood since 2017 — and slightly lowering the Municipal Services Taxing Unit (MSTU) millage from 0.299 to 0.288 mills.

Both motions passed without opposition.

Property Values and General Fund Growth

The proposed ad valorem rate is expected to generate $117.8 million in gross revenue, which equates to approximately $112 million at the county’s budgeted 95% collection rate. That revenue funds general government operations, including the Board of County Commissioners, the Sheriff’s Office, the Supervisor of Elections, the Clerk of Court, and other constitutional offices.

The MSTU millage, used to fund stormwater services and parks in unincorporated areas, is projected to generate just over $4 million in gross revenue, or approximately $3.8 million at a 95% collection rate — consistent with last year’s levels.

The overall county budget, encompassing all funds, totals over $687 million.

Hofstad noted that property values in Okaloosa County have doubled over the past decade, mirroring growth trends across Florida.

DR-420 Certification and TRIM Compliance

Tuesday’s actions authorized Hofstad to certify form DR-420 with the Florida Department of Revenue, formally setting the tentative millage rates by the state’s Truth in Millage (TRIM) process.

The DR-420 certification must occur within 35 days of the Property Appraiser certifying the county’s taxable value, which was finalized on June 9 or July 1, whichever is later.

Per state law, the certification also establishes the date, time, and location of the county’s public budget hearings:

  • First Budget Hearing: Sept. 4 at 5:01 p.m. at the Crestview Courthouse
  • Final Budget Adoption: Sept. 16 at 5:01 p.m. at the County Administration Building in Shalimar

Hofstad concluded his presentation by crediting the board’s long-term vision and fiscal discipline for maintaining the county’s strong financial standing and AAA bond rating.

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A drone view of the activity on Boggy Bayou before the annual fireworks festival put on every year by the cities of Niceville  and Valparaiso.