City recommends no property tax millage hike, but it is a tax increase

By Mike Lednovich

The City of Fernandina Beach will not increase property taxes for  the 2025-26 budget if commissioners agree to the recommendation of city staff, according to the agenda for next Tuesday's special city commission meeting.

The resolution for the meeting reads: SECTION 1. The proposed operating millage rate for FY 2025/2026 is 4.6849 mills, which is the same operational millage rate set for FY2024/2025. 

Despite keeping the same millage rate, commissioners would be increasing taxes because when property values go up then applying the same millage rate to a higher property value results in higher tax bills for property owners — even though the rate (the number of mills) hasn't changed.

The meeting summary states: The gross taxable value for operating purposes not exempt from taxation within the City of Fernandina Beach, Nassau County has been certified by the County Property Appraiser to the City of Fernandina Beach as $4,744,257,752 The operating "modified" millage rate is 4.6849 and will generate $21,337,318 in property tax receipts.

The “rollback rate” is the millage rate that would bring in the same amount of revenue as the previous year, accounting for new growth but excluding reassessment increases.

If a city keeps the same millage rate instead of adopting the lower rollback rate, it's technically collecting more tax revenue, and Florida law requires it to advertise this as a tax increase — even if the millage stays the same.

It's the first step in the budgeting procedure. The city said in setting the meeting: The City Commission must adopt the proposed millage rate and schedule public hearings prior to adoption of the final millage rate and budget. An early step in the annual budget adoption process is to set a millage rate, referred to as the tentative or proposed rate. Once set, this rate cannot be increased but may be decreased during the budget process.

The only lower property tax rates listed are the Rollback Rate (3 commission votes required) of 4.3632 and the Adjusted Rollback Rate (3 votes required) of 4.6027 mills.

Commissioners will vote on setting the tentative millage rate at the meeting.

The meeting is scheduled at 5:05 p.m. at City Hall on Ash Street.

The preliminary budget has not made public thus far.

Additional budget workshops are scheduled for Aug. 5, 6 and 7 (if necessary) from 5 p.m. to 6 p.m. at city hall.