Dunedin homeowners and businesses could eventually see a new annual fire assessment fee on their tax bills if a statewide property tax cut passes in November.

The City Commission voted unanimously July 9 to issue a request for proposals seeking a consultant to study whether such a fee could help replace lost property tax revenue. The vote does not create a fee. It launches what city leaders say will be a months-long study.

"We do feel like [a fire assessment] is something that we have to consider, based on the fact that we've gotta be able to fund critical services in some way for our city," Mayor Moe Freaney said.

Statewide amendment could cost Dunedin millions in property tax revenue

The trigger is a constitutional amendment the Florida Legislature passed in June and placed on the November ballot under the title "Save Our Homes from Excessive Property Taxes." It needs 60% voter approval to take effect Jan. 1, 2027.

If it passes, the amendment would create a $150,000 "super" homestead exemption on the non-school portion of property taxes starting in 2027, rising to $250,000 in 2028. It would also lower the annual assessment-increase cap on rentals, commercial properties and second homes from 10% to 5%.

A poll of 850 Florida voters by Sachs Media, a Tallahassee public-relations firm, found 64% support for the measure.

Dunedin collects about $18 million a year in property taxes. City leaders estimate the amendment would cut that revenue by about $4.2 million in its first year and roughly $6.3 million in its second.

Consultant would design a formula for charging property owners

The hired firm would examine Dunedin's fire protection costs, recommend a formula for calculating any assessment and estimate how different property types could be charged. The study would also review long-term funding needs for fire stations, equipment and prevention programs.

If commissioners eventually decide to move forward, the proposal would still require additional public hearings and another vote before any assessment could take effect.

Downtown reactions range from resigned to frustrated

Frank Rivera, a Dunedin resident interviewed while getting a haircut downtown, said cities will still need a way to pay for essential services if property tax revenue drops.

Monique Chiofalo, co-owner of Lyin' Bulldog in downtown Dunedin, pushed back. She called another fee from the city "a little ridiculous," saying residents have been paying enough taxes all their lives.

November ballot outcome will shape the city's next move

No timeline has been announced for when the consultant's findings will come back to the commission. The November vote on the statewide amendment will determine whether Dunedin needs to act on the study's recommendations at all.