South Pasadena only Pinellas city to see taxable values decline, eyes higher tax rate

SOUTH PASADENA — Among Pinellas County’s 24 municipalities, this city of retirees holds an unwanted distinction: It was the only one that saw a decline in taxable property values last year.

That unusual dip — less than 1% — nonetheless led city commissioners to set a tentative maximum property tax rate for next year that is 10% above the rollback rate, leaving open the possibility of a major tax increase.

The commission voted unanimously July 1 to certify a maximum tax rate, or millage, of 5.81 mills for the upcoming fiscal year that starts Oct. 1. Commissioners still can lower that tentative tax rate after budget hearings later this summer.

For the owner of a $300,000 home that receives the two homestead exemptions totaling $51,411, the proposed tax increase would raise the annual tax bill by $159.95, to $1,453.70, city figures show.

The preliminary 2026 tax roll from Pinellas County Property Appraiser Mike Twitty shows that taxable values in the 1-square-mile community, between St. Petersburg and the Gulf beaches, fell 0.83 percent, from $913.9 million to $906.2 million.

By contrast, the average Pinellas municipality saw its taxable value grow about 3.8%. Among the county's other 23 cities and towns, gains ranged from 0.72% in Gulfport to 6.87% in St. Petersburg, according to the preliminary tax roll.

"I'm a little perplexed because out of 24 municipalities in Pinellas County, we are the only one that has a decrease in taxable value," Vice Mayor Thomas B. Reid said.

Finance Director Heather Guadagnoli said the property appraiser's office offered no explanation, but she cited the city's relatively small size and the timing of new development. Much of South Pasadena is already built out, leaving the city with fewer opportunities for new taxable development than many larger municipalities.

Despite the overall decline, figures show the city saw more than $11 million in new construction last year, which Guadagnoli called “substantial.”

"All those improvements for the new construction will increase the property values, not only the taxable values," she said. "You're just not there yet."

Guadagnoli recommended that commissioners certify a maximum rate equal to a 10% increase over the rollback rate, saying the city needs to leave its budget options open. The rollback rate raises the same amount of tax revenue as the prior year, minus new construction.

"I know it's not a popular thing to do to raise taxes, but prices are going up," she said.

Mayor Arthur Penny pointed out that commissioners reduced the tax rate beyond the rollback rate last year and waived more than $1 million in permit fees following the 2024 hurricanes even as the city faced rising operating costs and future capital projects.

All governments in Pinellas — such as cities, the county and special taxing districts — are now setting tentative tax rates that will appear on Truth-In-Millage notices. The annual rite is complicated this tax season by a proposed constitutional amendment that could sharply limit property tax revenues for local governments.

The property appraiser sends TRIM notices to taxpayers in late July to give them an estimate of their upcoming tax bills and to allow time for anyone to voice objections at public hearings in September.

The millage that appears on the notices may be lowered later, but not raised, by the taxing authority. Tax bills are mailed in November.

“We’ve got more meetings to process this and decide on a final number,” the mayor said.

South Pasadena has just over 5,000 residents. Census figures show the city's median age is 69, and its population has declined by nearly 4% since 2020.