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Amendment 3
Governmental Affairs
Amendment 3
Understanding the proposed changes to Florida's property tax
system and the potential implications for homeowners,
local governments and the built environment.
What is Amendment 3?
Amendment 3 would amend the Florida Constitution and make
significant changes to Florida's property tax system.
The proposal would increase the homestead exemption for
non-school property taxes, reduce the annual assessment-growth
cap for certain non-homestead properties, and establish a
residency requirement for some new Florida residents.
If approved, the amendment would take effect January 1, 2027.
60%
Amendment 3 must be approved by at least 60% of voters
to become part of the Florida Constitution.
What Would Change?
The proposal includes several significant changes to
property taxation in Florida.
Current Exemption
$50K
Current homestead exemption applicable to
non-school property taxes.
Beginning in 2027
$150K
Proposed homestead exemption for non-school
property taxes in 2027.
Beginning in 2028
$250K
Proposed exemption beginning in 2028, with
inflation adjustments beginning in 2029.
The annual assessment-growth cap for qualifying
non-homestead properties would also decrease from
10% to 5%.
Potential Property Tax Savings
What Could It Mean for Homeowners?
For qualifying homeowners, the increased exemption
could provide meaningful property tax savings.
Florida TaxWatch estimates that a home assessed above
$250,000 could save approximately:
$1,035
Estimated savings in 2027
$2,085
Estimated savings in 2028
These estimates use the statewide average non-school
property tax rate. Actual savings would vary by property
and local tax rates.
Source: Florida TaxWatch
Visit Florida TaxWatch
What About Local Government Revenue?
The potential homeowner savings also represent property
tax dollars that would no longer flow to local governments.
This raises questions about how buildings, infrastructure
and public improvements traditionally supported by this
revenue would be funded.
01
Recurring Revenue
Property tax revenue is an important recurring funding
source for Florida's cities and counties. Amendment 3
would not prohibit governments from spending property
tax revenue on infrastructure; the issue is whether
communities would have less revenue overall to divide
among competing needs.
02
Capital Improvements
New public projects, maintenance of existing structures
and other capital improvements require stable and
substantial funding. Reduced recurring revenue could
place additional pressure on capital improvement budgets.
03
Existing Infrastructure
Florida communities already own and operate significant
inventories of public buildings and infrastructure that
must be maintained, repaired, renovated and eventually
replaced.
04
Population Growth
Growing communities will need new public facilities and
infrastructure while simultaneously maintaining what
they already have. Reducing a recurring revenue source
does not eliminate those needs or their costs.
Impact on Florida's Built Environment
Local governments routinely balance competing needs when
determining how limited public dollars should be invested.
If recurring revenue declines, projects could be delayed,
reduced in scope or financed differently as communities
balance available funding against growing infrastructure
needs.
Constructing new public facilities
Repairing aging buildings
Improving roads and transportation
Upgrading stormwater systems
Maintaining existing infrastructure
Paying existing public debt
How Could Communities Respond?
If property tax revenue decreases while infrastructure,
building and service needs remain, local governments may
have to identify other ways to fund those responsibilities.
Depending on local circumstances and applicable law,
possible responses could include:
Higher Millage Rates
New or Increased Assessments
Service & User Fees
Additional Borrowing
Delayed Capital Projects
Reductions in Other Programs
Commercial property owners, large landowners and owners of
second homes could potentially face higher taxes or fees.
Renters could also be affected if property owners pass
increased costs along through higher rents.
Resilience & Recovery
Local Funding Matters During Disasters
Reliable local revenue is also important when communities face
hurricanes, flooding, wildfires and other disasters. Federal
and state assistance may cover some recovery expenses, but
local governments can remain responsible for substantial costs.
Debris Removal
Road Clearance
Emergency Operations
Flood Mitigation
Public Facility Repairs
Infrastructure Recovery
Emergency Response
Resilience Improvements
Maintaining sufficient local financial capacity is particularly
important in a state where resilient buildings and infrastructure
are essential to protecting communities.
What Voters Should Consider
Amendment 3 could provide significant tax relief to
qualifying homeowners and greater predictability for certain
property owners.
At the same time, it would reduce recurring property tax
revenue available to cities and counties responsible for
maintaining Florida's communities without providing an
alternative revenue source for those needs.
Voters may wish to consider both the potential individual
property tax savings and how their community could address
reduced revenue while continuing to fund buildings,
infrastructure, maintenance, resilience and capital
improvements.
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