BREAKING NEWS: Key West trims proposed tax hike to 4% above rollback

With three members absent, commissioners back smaller increase; staff must cut spending before Sept. 25 budget vote

A divided Key West City Commission on Thursday scaled back a proposed property tax increase, voting instead for a 4% millage rate above rollback after a 5% increase failed to gain support.

Only four commissioners — Lissette Carey, Aaron Castillo, Sam Kaufman and Donie Lee — were present for the afternoon meeting. Commissioners Monica Haskell, Mary Lou Hoover and Mayor Danise Henriquez were absent.

After passing the gavel to Kaufman, Lee moved to adopt the lower 4% rate when the original proposal stalled without a second. The vote passed 3-1 among those present, with Kaufman the lone no vote.

The rollback rate is the tax level that would bring in the same amount of revenue as the year before, excluding new construction. Any rate above rollback means property owners pay more, even if the increase appears small. In Key West, a 4% increase raises the millage to about $3.07 per $1,000 of taxable value, compared to $2.95 at rollback. For a homesteaded home assessed at $600,000, that works out to about $72 more per year in city taxes. The originally proposed 5% increase would have cost closer to $90.

The decision leaves City Manager Brian Barroso and his staff facing the task of identifying spending cuts before the Sept. 25 final reading of the fiscal year 2026 budget.

Carey suggested that eliminating the proposed independent inspector general’s office could help offset the reductions. The watchdog position was floated earlier this year following allegations that Carey colluded with former City Attorney Rob Ramsingh, his brother, Chief Building Officer Raj Ramsingh, and longtime Code Director Jim Young in the ouster of former City Manager Al Childress.

Kaufman opposed any tax increase, arguing that Key West should move toward financial self-sufficiency in anticipation of Gov. Ron DeSantis’ push to reduce or abolish property taxes statewide.

The Key West City Commission will hold a final vote ont eh FY 26 budget at 5 p.m. on Thurs., Sept. 25 at City Hall at 1300 White Street.