City seeks same tax millage for 2025-26, but it is a tax increase

The city of Fernandina Beach will not increase property tax millage 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 FY 2024/2025. 

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.

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 for 5:05 p.m. July 29 at City Hall on Ash Street.