Florida Property Tax Cut Could Strain Local Credit, S&P Says (1)

Local governments in Florida will face “greater credit pressure” if voters approve a plan to largely eliminate property taxes on more than half of homes in the state, according to analysts at S&P Global Ratings.

The proposal would introduce financial uncertainty and, if passed, could leave some local government bond issuers facing “material” revenue and spending challenges, according to a new report by S&P analysts, including Michael Parker, the rating company’s primary Florida analyst. The rating company grades more than 100 Florida credits, including 22 counties, 67 municipalities and 22 school districts.

Florida Governor Ron DeSantis unveiled the proposal last ...