Florida’s proposed Amendment 3 would expand the homestead exemption for non-school property taxes, potentially lowering bills for homeowners while reducing revenue for local governments. Supporters say the change could offer meaningful relief as housing costs rise. Critics warn that counties and cities may have to cut services, raise fees or find other revenue to make up the difference.
Key takeaways
- The proposal would raise the homestead exemption to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments starting in 2029.
- Florida Tax Watch estimates an average homeowner saving of $1,035 during the first phase; individual savings would vary by local tax rates.
- Local officials say lost property-tax revenue could affect public safety and community services, while supporters argue governments can adapt.
- Renters would receive no guaranteed direct benefit, and landlords would not be required to pass along any savings.
How the proposal would change taxes
Florida’s current homestead exemption reduces the taxable value of an eligible primary residence. Amendment 3 would expand that exemption for non-school property taxes, with the increase phased in over two years. It would also lower the annual cap on assessment increases for non-homestead properties, including rentals and commercial buildings, from 10% to 5%.
The measure would create a process for lawmakers to let counties and municipalities expand the exemption further over time. Supporters, including Gov. Ron DeSantis and state Rep. Berny Jacques, describe the change as direct relief for homeowners facing affordability pressures.
The debate over local budgets
Property taxes help fund county and municipal operations. Local projections show the potential scale of the revenue impact varies by community: Hillsborough County estimates losses of about $250 million after the first increase and more than $360 million after the second. Citrus County projects losses exceeding $30 million in the first phase and just over $45 million in the next.
Sheriffs and other opponents say reductions could force local governments to reconsider staffing and services. Polk County Sheriff Grady Judd has called for a plan to replace the revenue, while Pinellas County Sheriff Bob Gualtieri has warned that staffing could be affected. Property-tax revenue also supports services such as parks, libraries, recreation programs and emergency response. Supporters counter that governments have options to manage budgets, pointing to rising property-tax collections in recent years.
What renters and homeowners may see
Homeowners’ savings would depend on assessed values and local tax rates. Renters would not receive an exemption themselves, and the proposal does not require landlords to lower rents if their property-tax bills fall. Some renters also worry that service cuts or new fees could offset any indirect benefits.
If the amendment passes, local governments’ responses would shape its effects. They could adjust spending, seek other revenue or reduce services; the extent of any changes remains uncertain. The first scheduled exemption increase would take effect Jan. 1, 2027.