Bay County looks at property tax increase due to sales tax holidays, minimum wage hikes

BAY COUNTY, Fla. (FLV) – The Bay County Board of County Commissioners set the maximum millage rate for the potential property tax increase that is expected in the county’s upcoming fiscal year 2024 budget.

The board unanimously voted to increase the ceiling rate to 5.6862 mills on their Tuesday meeting. A change of 1.25 mills from its current rate of 4.4 mills.

This decision came after several budget concerns were brought to the meeting, regarding funding for first responders and other resources for the community.

“One of the big drivers this year is the sales tax holidays,” County Manager Robert Majka said. “So, we are looking at almost $4.5 million in existing revenue being erased as a result of those sales tax holidays being implemented.”

Majka said that funding for law enforcement, jail operations, and the county’s emergency medical service system are all at risk of being slashed if revenue does not increase.

He highlighted that another burden on the county budget is the growing state minimum wage.

“We are on pace to implement that in stages up until 2026,” he said. “Unfortunately, some of our operating areas are having their expenses accelerated.”

In 2020, Florida residents voted 60% in favor of a ballot referendum that increases the minimum wage rate by $1 per year until the state’s minimum wage is at $15 per hour in 2026.

Majka explained that just this past year, the county had to absorb over $1 million in cost increases. This was most notable in EMS expenses, since every department that is covered by Medicare or Medicaid proceeds has to increase their pay to $15 an hour immediately.

“The state for the last several years has been raising law enforcement officer pay,” he added. “We have to make significant changes in our expenses to be able to keep our existing personnel.”

The county manager said that this type of competition is putting “pressure” on wages not just to fill vacancies, but to simply keep existing staff.

The board reassured citizens that the ceiling rate increase is intended to be decreased from the current proposed 5.6 mills before the budget is voted on in September.