Tampa residents critical of proposal to increase property taxes for the first time in 30 years

TAMPA, Fla. - Tampa Mayor Jane Castor made a public appeal for support Thursday, after her proposal to increase property taxes for the first time in three decades received harsh public criticism from Tampa residents during a special City Council meeting.

The mayor, speaking at a news conference at intersection where the roads are deteriorating and filled with potholes, explained why she's asking council to approve a one millage increase, which equals a 16% property tax hike.

"If we don't do this today, these roads aren't getting in any better condition," Castor said. "We're doing all that we can to help our community with the rising cost of living in Tampa today, but these are issues that have got to be addressed, and they have got to be addressed today. Not only the repaving, but the safety on our roadways as well, so it is a critical issue."

Castor said the double-digit tax increase would cost the average homeowner an additional $240 each year, while increasing the general revenue fund by an estimated $45 million.

READ: Tampa's new Tenant Services Team helps people find affordable rent

The additional revenue would be used to primarily address the city’s infrastructure and transportation needs, with nearly 40% of the potential funding earmarked for those issues. Twenty-one percent would go to police and fire department needs, while 20% would be allocated to support low-income housing initiatives.

"How do we fix the problem? Let's come up with solutions," the mayor said.

Tampa's mayor is calling for a property tax rate hike.

The proposed rate increase would put Tampa’s property tax rate above both St. Petersburg and Orlando.

The mayor's public appeal came a day after a city council meeting that during which majority of public speakers decried the increase and questioned why, with tax revenues booming from soaring property values across the city, Tampa still finds itself in a budget shortfall.

"We are now finding ourselves, even with two incomes, we cannot afford to live here. It boggles my mind that with a straight face, anyone could ask average hard-working citizens to take even more out of their pockets at a time when gas, groceries, and just the basics are pushing us to the breaking point," said one speaker.

"I’m one house in all of Tampa and seeing this enormous increase in property taxes, where’s the money?!" asked one speaker.

READ: California residents relocating here more than any other US city, study shows

Some council members also questioned how homeowners could be expected to find room in their budget when they’re already dealing with doubling home insurance premiums, rising utility rates and some of the highest inflation in the country on household expenses.

"Sixteen-percent is a big increase on top of everything else. This is a cherry on top of everything: The insurance, the inflation. It’s a lot of money," said City Council Chairman Guido Maniscalco. "My car insurance is up $600 this year. My HOA has a special assessment of an extra $300. This [tax] will impact me about $200-300 based on the assessed values of what I have. That’s me. What about other people that are in houses that are more expensive or property owners that are going to pass this burden onto their tenants?"

The city says the tax increase will help fund critical projects. Some 40% of Tampa’s roadways are in bad condition, according to a report presented by city staff at Monday’s meeting. The funds would also address the city’s near 1,300 miles of sidewalk gaps and would help hire more police officers, and fund other public safety projects, parks, housing assistance, and more.

The mayor said, with the increase, the city could afford 10 road projects in five years. Without it, the number drops to about 30.

Council members, however, sounded hesitant to approve the mayor's proposal.

"There’s a reasonable way forward where we can have real forward progress on all of these areas, but doing it in a reasonable manner that does not raise taxes by sixteen percent in a seven-and-a-half percent inflation economy," said Councilman Luis Viera.

The next public hearing on the proposed tax increase will take place next month.