As Florida weighs proposals to eliminate property taxes, Miami is seeking state approval to use building fees to offset general operating costs and preserve funding for essential city services. Miami Commissioner Ralph Rosado is sponsoring an item on the April 23 city commission agenda that urges Go v. Ron DeSantis and the Florida Legislature to authorize local governments to use building fee revenue to help cover general operating expenses. It also calls on other municipalities and counties across the state to adopt similar measures, saying the change could provide fiscal flexibility if property tax revenues are reduced or eliminated. The resolution comes as Florida lawmakers continue to advance property tax relief proposals that could significantly restructure or phase down portions of the state’s ad valorem tax system, which is the largest source of revenue for counties, cities and school districts. Earlier this year, the Florida House approved by an 80 to 30 vote a proposal that would have gradually eliminated non-school property taxes on homestead properties over a 10-year period beginning in 2027. The measure would have required 60% voter approval in the November election to take effect. Under the proposal, the homestead exemption would have increased by $100,000 annually, ultimately exempting homeowners from all non-school ad valorem taxes by 2037. Supporters of the proposal argued it would provide predictable, long-term tax relief while giving local governments time to adjust their budgets. However, the measure stalled in the Senate Appropriations Committee in March amid concerns about the potential loss of stable funding for essential local services, effectively removing it from the 2026 ballot. Although that proposal did not advance, state lawmakers continue to explore alternative property tax relief options, including phased reductions and broader restructuring plans. Under current Florida law, building fees collected by local governments are generally restricted to covering the direct costs of permitting, inspections and enforcement of the Florida Building Code. They cannot be used to subsidize general operating expenses. Miami’s resolution argues that changing that restriction could give cities a lawful fiscal tool to offset potential reductions in property tax revenue while maintaining services such as public safety, infrastructure maintenance and emergency response. If adopted, the resolution would also formally encourage other municipalities and counties across Florida to take similar action and transmit the request to state leadership, including the governor and legislative leaders. The post Could building fees replace Florida property taxes? appeared first on Miami Today. ...read more read less