Understanding Amendment 3

Where your property tax dollars go

For the Fiscal Year 2026 Budget, Bay County collected approximately $164 million countywide in property taxes to fund essential services, with the largest shares going toward public safety and required payments to Community Redevelopment Agencies (CRAs).

• Public Safety — Approximately 44.7 percent of Bay County’s FY 2026 $164 million in ad valorem revenue supports core county responsibilities, including the Sheriff’s Office, Jail operations, and Emergency Medical Services. These obligations are not optional.
• Community Redevelopment Agencies (CRAs) — CRA-related allocations total approximately $27 million, or 16.5 percent, of all countywide tax dollars collected and are subsequently paid to the municipalities.

Understanding the numbers

Bay County’s overall FY 2026 budget is approximately $734 million, but only a portion of that figure is actual property taxes collected. Most of the budget comes from funds that are legally restricted to specific purposes and cannot be used for public safety or other purposes. These restricted funds include: utilities, solid waste, gas taxes, impact fees, grants, tourist development taxes.

Note: This graphic represents only property tax revenues in the General Fund.

What could Amendment 3 mean for Bay County?

Based on current projections, Amendment 3 would reduce county property tax collections across the General Fund and special taxing districts by approximately $36 million annually upon full implementation in Fiscal Year 2029.

Revenue collected through the Fire Services Municipal Services Taxing Unit (MSTU) is dedicated to fire protection services in the unincorporated areas, while Mosquito Control property tax revenue supports mosquito control operations east of the Hathaway Bridge. Reductions to these revenues would therefore affect those funds separately from reductions to the General Fund.

How services could be affected

If Amendment 3 passes, Bay County would need to evaluate the potential impact on the revenue used to support county services and obligations. Because Public Safety and CRA allocations represent such a large share of ad valorem revenue (62 percent), any significant reduction would require careful review.

Potential areas for review could include service levels, capital projects, infrastructure needs, staffing, reserves, interlocal obligations and long-term financial planning. Bay County would continue to prioritize essential services and responsible stewardship of taxpayer dollars. Services funded through the General Fund, such as Parks and Recreation, the Bay County Public Library, Veterans Services, and Transit could require careful evaluation.

Possible Expenditure Reductions

• Reduce/eliminate Parks operations and maintenance
• Eliminate Cooperative Extension Office contributions
• Reduce/eliminate Veterans Services Office operations
• Reduce/eliminate Library operations
• Eliminate BayWay Transit contribution
• Elminate St. Andrews Medical Clinic funding
• Eliminate Council on Aging funding
• Eliminate Economic Development Alliance funding

Overview of possible alternative revenue sources

In addition to budgetary cuts and reductions, Bay County would likely need to pursue revenue sources to help offset the significant impact of Amendment 3. 

• Franchise fees - Power bill surcharges applicable only in the unincorporated area
• Additional sales tax - Requires legislative authorization and voter approval
• Emergency Medical Services fee increase - Increased charges to individuals for EMS services
• Charges for services/parking - Additional user-generated revenue, including parking charges
• Additional penny gas tax - Additional 1-cent gas tax
• Use impact fees for eligible capital costs - Increase impact fees on new developments

Note: Some alternatives may be considered regardless of Amendment 3. 

How CRAs uniquely impact Bay County's budget

Community Redevelopment Agencies, or CRAs, receive revenue based on growth in property values within designated areas. The money collected inside a CRA may only be spent in that geographical area. CRA-related allocations total approximately $27 million, or 17 percent of all countywide tax dollars collected. Bay County cannot unilaterally reduce or eliminate required CRA payments, which are governed by state law and existing agreements with the cities.

Bay County's annual $22.2 million payment to the Front Beach Road CRA is an anomaly. The average annual payment for all other counties in the state with a CRA is about 3 percent total of ad valorem collections.

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