Daytona Beach Mayor Derrick Henry “Hopes to Heaven” Florida’s Property Tax Reduction Amendment Fails
- Charles I. Guarria
- 14 hours ago
- 6 min read
During the five-hour, five-minute Daytona Beach City Commission meeting on June 17, Commissioner Monica Paris initiated a discussion that inadvertently led to an issue of grave concern for every governmental body in Florida.
The concern is a state constitutional amendment being brought to a vote this November, known as Save Our Homes from Excessive Property Taxes. Also known, and will be referred to herein, as House Joint Resolution 1-F (HJR 1-F).
If passed, HJR 1-F will result in steep property tax cuts and possibly the elimination of property taxes for all of Florida’s homestead properties.
The idea of eliminating property taxes has been on the minds of Floridians for 19 years, when then Florida Speaker of the House Marco Rubio first suggested that property taxes be abolished in favor of increasing the sales tax.
The current idea proposed by Tallahassee, and backed by Governor DeSantis, doesn’t abolish property taxes for at least three years. The annual cuts in property taxes won’t be accounted for by increasing the sales tax, as now Secretary of State Rubio suggested in 2007.
The Florida State Legislature believes the property tax cuts and possible elimination thereof should be made up for by; nothing at all.
And that scares the bejesus out of near every politician I have spoken with or watched opine on the matter.
Daytona Beach Mayor Derrick Henry is no exception.
“As an elected official, I'm on record as saying that I hope to heaven that it does not pass, but I understand why a person would vote for it,” Mayor Henry stated during the aforementioned Daytona Beach City Commission meeting.
Ms. Paris got the conversation going when she referred to a consent agenda item, asking, “We are collecting code enforcement leans, but at this time they're just going back into the general funds. During our next budget meeting, if we could have a discussion about where that money maybe should be going back into.” She offered examples such as redirecting the money to help with facade programs for residents, or to help seniors and Daytonians who are ill.
Mayor Derrick Henry jumped at the chance to bring up HJR 1-F by stating that normally he’d consider Ms. Paris’ suggestion as a good idea. However. “Considering what will potentially happen as it relates to property taxes and a possible $10 million shortfall (for 2027, more in the years that follow) …we're not going to be able to do that.”
The specter of what will be, if, heavens to Murgatroyd, government has to tighten its belt, hangs over every elected official and government worker.
Let’s be clear, republicans spend like drunken sailors; democrats spend like two drunken sailors. By and large, these folks simply want to keep getting drunk and have the residents they represent foot the bill.
Many of them are fond of saying that they, too, pay property taxes, but we would lose essential services if HJR 1-F were to be enacted. Mayor Henry suggested a “deep dive” was in order to ascertain “how we're going to account for this (property tax cut.)
Admitting that HJR 1-F has kept him awake into the wee hours, Mayor Henry suggested his thoughts in those early morning hours go to, “do we halt wage increases,” thus reducing “how many people you cut because the last thing that I want to do is begin to displace people and have people unemployed.”
The mayor believes that a lot of things are going to have to change if HRJ 1-F passes.
That isn’t true.
Daytona Beach just has to come up with other ways to finance the bloat that they think is important.
For the uninitiated, HJR 1-F requires that ad valorem taxes (taxes based on the value of property and other assets) be used for public safety, education, infrastructure, natural resource projects (think flooding), issues related to bonds, retirement benefits, and to run the government.
About the other stuff the government has been funding, such as Daytona’s recent 31 Zone Supported Funds that totaled $128,101. Or the five community centers* the city supports which Mayor Henry described as “thriving and doing great work” there are answers to fund it.
Sponsors or naming rights are one answer.
The US already has advertisements on arenas and other public gathering spots; one example would be the Kia Center in Orlando. Companies would clamor to be associated with any of the five great working-thriving community centers in Daytona Beach.
By way of example, take the Yvonne Scarlett-Golden Cultural & Educational Center located at 1000 Vine Street. There is a Wawa less than a half mile away and a Courtyard by Marriott 10 minutes out. The city can sell the naming rights and sponsorships of the center to these entities.
Rename it the Wawa YSG Cultural & Educational Center. And special programs like the Senior Oasis program can be renamed the Courtyard by Marriott Senior Oasis Program.
Businesses must adhere to the guidelines set by the city, while Daytona is required to always mention the business when referring to the YSG or its programs in all official communications.
That cuts into the city’s cost while giving the business advertising. Just like the Kia Center.
Another idea is a sovereign wealth fund similar to the Alaska Permanent Fund. That fund does so well the state cuts a $1,000 check to almost all Alaskans.
Daytona’s wealth fund wouldn’t cut checks to its residents but could do what Norway does: put the money in the government coffers. Norway’s wealth fund handles its pension. Daytona can set the fund allocation on an annual basis based on need. **
A wealth fund is a long-term solution. However, property tax elimination in Florida is a years-long process.
If HJR 1-F gets the needed super majority of 60% to be entered into the state constitution, it would go into effect on Jan. 1, 2027. That year, the homestead exemption moves from $50,000 to $150,000. In year two, Jan. 1, 2028, the exemption is raised to $250,000, and in year three, Jan. 1, 2029, the $$250,000 exemption will be adjusted for inflation. Also in year three, the state legislature will work on a plan for the complete elimination of homestead property taxes.
Michael Chambliss, Daytona Beach government relations coordinator, informed the Commission during his presentation that 38.7% of the city’s homes qualify for the homestead exemption. For non-homestead properties, the assessment cap would be lowered from 10% to 5%.
In what at first blush seems like a proactive move, City Manager Deric Feacher said that the city is fashioning a budget representing a 5% cut. Mr. Chambliss noted that the city could lose as much as 16% of the property tax income. Meaning that the city’s budget cut of 5% possibly leaves the city 11% short. I have reached out to Mr. Chambliss to clarify if the 16% is for year one only, cumulative for the first three years, or possibly representing some other time frame.
What can Daytonians expect to see by way of savings if HJR 1-F passes?
Mr. Chambliss estimates that the fiscal year 20027-28 savings for the average Daytona Beach household is $444.18. For FY 2028-29, it rises to $711.35.
Depending on how big the family is and where they eat, $444.18 is approximately three dinners and a movie. For the sake of discussion, let’s say $711.35 is four to five nights out. Imagine the multiplier effect of that money being spent within the community?
Well, I did more than imagine it and Googled, “a multiplier effect calculator for Daytona Beach,” Alas, there isn’t one.
But there is Google AI (I know, dubious, but it’s all we got.) I gave AI the HJR 1-F average savings of the first two years, and its answer is as follows: “In Daytona Beach, spending $577.77 generates an estimated total economic impact of $964.88. Using Volusia County tourism economic data.” Keep in mind that this is per homestead-eligible households. That’s a pretty good impact on the community.
A clarification is needed: Mayor Henry slightly exaggerated the tax loss. Mr. Chambliss put year one losses at a range of $7 to $10 million, not a hard $10 million as the mayor stated. Year two losses begin at $10 million and might be as high as $15 million.
Nevertheless, Mayor Henry summed the situation well: “whatever happens, we have to deal with it.”
Charles I. Guarria is an author, reporter and host based in the state of Florida, USA, covering any topic, anywhere in the world. His career began in 2009. Mr. Guarria is a three-time winner of Emerald Group Publishing’s Highly Commended Award and host of The Opinion Guy Fun Friendly Informative. He is available for hire to write, research, or beta-read.
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* The community centers are the John H. Dickerson Community Center, Julia T. and Charles W. Cherry, Sr. Cultural & Educational Center, Schnebly Recreation Center, Sunnyland Recreation Center, and the Yvonne Scarlett-Golden Cultural & Educational Center.
**These proposals come from the policies of Larry Sharpe. A libertarian running as an independent for Governor of New York.
Photo Credit: Daytona Beach City Government
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