Seminole County will stop offering large tax cuts to apartment owners who designate a certain number of units as affordable housing to reduce their property tax bills under Florida’s Live Local Act.

“When that [tax] revenue stream does not come to the county, those are services that are going to be picked up by the rest of the taxpayers. It’s going to fall on their shoulders,” Seminole Commission Chair Jay Zembower said Tuesday before joining other board members in agreeing to opt out of the tax cuts.

If Seminole continued offering the tax breaks — as much as 75% for each apartment unit — it could feasibly lose an estimated $4 million a year in tax revenue, Seminole Property Appraiser David Johnson told commissioners.

“So it’s real money,” Johnson said.

Seminole now joins Lake County and Winter Park in denying the tax cuts. Other municipalities are expected to follow. Maitland, for example, is scheduled to take up the issue at an upcoming council meeting.

Under the Live Local Act, any apartment project is eligible for the tax savings if it’s less than five years old, has at least 70 units and offers rents affordable to tenants making up to 120% of the region’s median income — about $90,000 for a two-member household.

The 2023 law was meant to encourage construction of more housing that’s affordable to people in lower-income brackets. In effect, that would likely lower rents because of an increase in supply of apartment units. But a provision added this year allows local governments to opt out.

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In Seminole, three apartment complexes received a total tax deduction of $371,367 this year after listing 366 units that meet the criteria.

But apartment owners are not passing on the tax deductions to tenants, Johnson and commissioners said.

“The Live Local Act is well intentioned,” Johnson said. “But the problem is it doesn’t have a requirement to push that 75% reduction back to the renters that are occupying the units.”

Commissioner Amy Lockhart said the tax breaks are directed to apartments for middle-income residents — not specifically for low- or very-low-income residents who need so-called affordable housing.

“This is not addressing affordable housing,” Lockhart said. “And we have lots of incentives and lots of things in our county to incentivize [construction of] affordable housing. This is not that.”

In other county action, commissioners without comment agreed to keep the same property tax-rate for its general fund at about $4.88 per $1,000 of taxable value for next fiscal year, which starts Oct. 1. It’s the same rate Seminole has had since 2010.

Still, most property owners will see a hike in their property tax bills because values grew by 8.4% this year, generating an additional $26.6 million in revenue, including $19 million for Seminole’s general fund — which pays for day-to-day operations of the county. Seminole’s general fund next fiscal year is proposed at just over $251.4 million.

Commissioners will vote on the final budget and tax rates at public hearings starting at 5:30 p.m. Sept. 11 and Sept. 24 at 1101 E. First St., Sanford.

mcomas@orlandosentinel.com