Coral Springs elected officials unanimously reject proposed business tax increase due to concerns over economic uncertainty
Coral Springs, Florida – In a move reflecting caution and sensitivity to economic uncertainty, the Coral Springs City Commission voted unanimously last week to reject a proposed increase in the city’s local business tax.
The decision came during the commission’s regular meeting, where elected leaders weighed the potential consequences of a 5% tax hike that would have raised the standard business tax from $160.80 to $168.84 for most business categories. Those impacted would have included local offices, contractors, educational providers, entertainment venues, personal service providers, and even home-based businesses. Despite the modest size of the proposed increase — just about $8 — commissioners said the timing and message behind the change were simply not right.
“It’s the optics,” said City Commissioner Shawn Cerra. “It’s the perception.”
Cerra, who has supported such increases in the past, pointed to a variety of factors that influenced his vote against the tax bump this time around. Rising operational and production costs, continued staffing challenges across sectors, and international trade tariffs have all created a tough landscape for small businesses, he said. For Cerra, the concern wasn’t about the small dollar figure but the public’s response to what could be viewed as another layer of pressure during a fragile economic period.
Operational costs are increasing,” Cerra said. “Production costs are increasing. We have instability with staffing for some of these local businesses. We have tariffs now, which have been a game-changer.”
Other commissioners shared similar sentiments. Commissioner Joshua Simmons warned that even minimal increases can generate damaging narratives during times of national and global instability.
“While the amount may be nominal, the narratives could be detrimental to what it is that we’re trying to do here in terms of what’s happening nationally and globally, and just the message itself,” Simmons said.
Commissioner Joseph McHugh also urged caution, pointing to the unpredictability of the economic future under the current administration in Washington.
“We’ve got a new president right now,” McHugh said. “We don’t know where this economy is going. We truly don’t. I just think we can revisit this when we do have an idea of where this economy is going to end up.”
According to city documents, the proposed increase would have generated roughly $56,700 in additional revenue annually. The funds would have supported the city’s ability to ensure that businesses are operating in compliance with zoning, building, and safety codes — a key function of the local business tax, as noted in a city staff memo.
However, with the commission’s 5-0 vote against the proposal, that revenue will now need to be made up through other means. City officials did not specify where those funds might come from, but discussions are expected in upcoming budget planning sessions.
Under Florida law, municipalities are permitted to raise local business taxes by up to 5% every two years. That means Coral Springs will have another opportunity to revisit the issue in 2026 if economic conditions become more stable.
For now, city leaders say the choice to hold off on raising taxes is part of a broader effort to support the local business community during a time of persistent uncertainty and economic anxiety.
The message, they said, is clear: Coral Springs is putting its businesses first — even if it means tightening the city’s own belt for a little while longer.
