Flagler County Sheriff Rick Staly Proposes Dedicated Law Enforcement Tax to Offset Amendment 3 Shortfall

Flagler County Sheriff Rick Staly has asked county commissioners to create a dedicated property tax for law enforcement, a proposal aimed at filling a projected budget hole of roughly $15 million that his agency blames on Amendment 3, the property tax cut Florida voters approved on Nov. 3. Under the plan Staly presented to the Flagler County Commission, the tax would be set up as a mandatory Municipal Service Taxing Unit, or MSTU, with the money restricted to law enforcement instead of flowing into the county's general fund, FOX 35 Orlando reported on Nov. 13.

No changes have been approved. Commissioners agreed to help draft a proposed policy, but the idea faces a legal hurdle in state law that Staly is asking the Legislature to remove.

What Staly proposed

The tax would apply in parts of Flagler County that do not have their own police departments and depend on the Sheriff's Office for patrol and emergency response. FOX 35 identified those areas as Palm Coast, Beverly Beach and Marineland. Palm Coast, the county's largest city, contracts with the Sheriff's Office for law enforcement rather than operating its own police force.

An MSTU is a special taxing district that levies a property tax rate on top of general county taxes within a defined area, so owners of higher-value property pay more. Because the revenue would be legally restricted to law enforcement, it could not be redirected to other county departments during budget negotiations.

Staly said the proposal is not meant to get around voters' decision on Amendment 3, according to FOX 35. One option discussed would allow the county to lower its existing general property tax rate while setting a separate law enforcement rate, which could soften the overall impact on taxpayers. FOX 35's report did not include a proposed millage rate or an estimate of how much the tax would raise.

The legal hurdle

Under current Florida law, a city must consent before a county can impose this kind of taxing unit inside the city's boundaries. That means Palm Coast, Beverly Beach and Marineland would each have to agree before the MSTU could cover them. Staly is asking state lawmakers to eliminate that requirement for municipalities that do not have their own police departments, an argument that rests on the fact that those residents already rely on county law enforcement.

Any such change would require action by the Legislature in its 2027 session. Flagler County adopted a framework ordinance in July for future special taxing and assessment districts, but each individual district still requires its own public approval process before any tax can be levied.

How Amendment 3 changes property taxes

Amendment 3 passed with more than 60% of the vote, clearing the supermajority threshold required for a constitutional amendment. It sharply expands the homestead exemption for non-school property taxes, which fund counties, cities and sheriffs, and tightens limits on how fast assessments on other property can rise. The changes phase in over several years:

The previous non-school exemption was about $50,000. The $25,000 exemption for school taxes is unchanged. City and county officials across Florida warned before the vote that the lost revenue could reach tens of billions of dollars over five years statewide and could force local governments to cut services or raise tax rates, according to FOX 35 Orlando.

Cuts already underway

The dedicated tax proposal comes on top of spending cuts Staly has already started. The Sheriff's Office projects a potential $15.5 million loss in fiscal year 2028, WFTV reported on Nov. 11. FOX 35 put the projected shortfall at $15 million for next year.

In the week after the election, an agency-wide email revoked authorized over-hires and confirmed the Sheriff's Office would not take over animal control services. Staly then announced a hiring freeze and canceled an order for 10 to 15 new vehicles planned for the next fiscal year, according to WFTV. He has asked department leaders to list every current contract, estimate the savings from canceling each one and assess the effect on service, with that review due by the end of January. Staly said nothing is exempt from review.

"Voters have spoken, and they are our bosses," Staly told WFTV. Shanea Stankiewicz, director of the agency's Business Service Section, said the election sent a clear message. "The voters have spoken. They don't want additional taxes or more fees or anything else. They want these cuts," she said.

A long fight over funding deputies

Staly has clashed with local governments over money before. He has pushed for years for more deputies to keep up with growth in Palm Coast and the unincorporated county, and in 2024 the County Commission and the Palm Coast City Council split over whether to adopt a half-cent sales tax to pay for additional deputies. The Sheriff's Office relies mainly on the County Commission and the city of Palm Coast for its funding, Staly told WFTV after the election.

Before the vote, Staly urged caution on the amendment and warned voters about its potential effect on public safety. The Florida Sheriffs Association ran an ad campaign against Amendment 3, warning of fewer deputies and slower 911 responses. In Seminole County, Sheriff Dennis Lemma had said he would have to eliminate about 300 filled and vacant positions, according to an earlier WFTV report.

Other Central Florida sheriffs have been more cautious about predicting cuts. Orange County Sheriff John Mina said the amendment's effect on law enforcement remains unclear, and the Osceola County Sheriff's Office said it had not identified any potential changes.

What's next

Flagler County commissioners and county staff will work with the Sheriff's Office on a draft policy for the law enforcement MSTU. For it to cover Palm Coast and the other cities without their own police, either those municipalities would have to consent or the Legislature would have to change state law, as Staly is requesting. Lawmakers begin organizational meetings for the 2027 session later this month.

Meanwhile, the Sheriff's Office's contract review is due by the end of January, and the hiring freeze remains in place. The agency's $15.5 million projection is for fiscal year 2028, after the larger $250,000 exemption takes effect, so the county and the sheriff have limited time to settle on a funding plan.