What is Amendment 3?

Amendment 3 proposes changes to Florida's property tax system, including a significant increase in the homestead exemption that applies to non-school property taxes.

The proposal could provide property tax savings for qualifying homeowners. At the same time, increasing the exemption would reduce the amount of property tax revenue collected by cities, counties and other local taxing authorities.

Because local property taxes help fund public facilities, infrastructure, maintenance, emergency response and other community needs, the proposal has implications beyond an individual homeowner's tax bill.

What Would Change?

One of the most significant provisions of Amendment 3 is an increase in the homestead exemption for property taxes other than those levied by school districts.

The proposal would also reduce the annual assessment-growth cap for certain non-homestead properties from 10% to 5%.

These changes would affect non-school property taxes. Property taxes levied for public schools are treated separately.

What Could It Mean for Property Owners?

Qualifying homeowners could see a reduction in the non-school portion of their property tax bills as the homestead exemption increases.

Florida TaxWatch has estimated that a homesteaded property assessed above $250,000 could save approximately $1,035 in 2027 and $2,085 in 2028, based on the statewide average non-school property tax rate.

Actual savings would vary depending on a property's assessed value and the tax rates established by the local taxing authorities where the property is located.

The lower assessment-growth cap for certain non-homestead properties could also provide additional predictability for some property owners by limiting how quickly the taxable value of qualifying property may increase from year to year.

What Could It Mean for Local Governments?

The tax savings provided to qualifying property owners would also represent property tax revenue that would no longer be collected by local governments.

Property taxes are a major source of recurring revenue for Florida's cities and counties. Those revenues help support both day-to-day government services and long-term community investments.

Amendment 3 would not prevent a local government from using property tax revenue for buildings or infrastructure. Rather, the issue is that local governments could have less recurring revenue available to divide among competing priorities.

If revenues decline while community needs and costs remain the same or continue to increase, local governments may need to adjust budgets, delay projects or identify other sources of revenue.

Why Does This Matter to Florida's Built Environment?

Florida's cities and counties are responsible for a significant amount of the infrastructure and public facilities that residents use every day. These assets require ongoing investment throughout their useful lives.

Local governments must fund both new construction and the maintenance, repair and replacement of existing facilities and infrastructure. Those responsibilities can include:

• Public buildings and community facilities
• Roads, bridges and transportation infrastructure
• Stormwater and drainage systems
• Public safety and emergency facilities
• Parks and recreational facilities
• Maintenance and renovation of aging public buildings
• Resilience and hazard-mitigation improvements

Florida's continued population growth adds another consideration. Growing communities need additional facilities and infrastructure while also maintaining and replacing what they already own.

If recurring revenue decreases, communities may face difficult decisions about the timing and scope of capital projects and maintenance programs.

How Could Communities Respond to Reduced Revenue?

A reduction in property tax revenue does not necessarily reduce the need for public services, buildings or infrastructure. Local governments could therefore have to consider other ways to balance their budgets.

Depending on local circumstances and the options available under Florida law, responses could include:

• Adjusting millage rates;
• Increasing or creating assessments and user fees;
• Borrowing for capital improvements;
• Reducing or delaying capital projects;
• Deferring maintenance or renovations; or
• Reducing spending in other areas.

Changes to other taxes, assessments or fees could affect commercial property owners, businesses, second-home owners and other taxpayers differently. Renters could also be indirectly affected if increased property-related costs are passed through in rents.

Disaster Recovery and Resilience

Local financial capacity is especially important in Florida, where communities regularly prepare for and recover from hurricanes, flooding and other natural disasters.

Federal and state disaster assistance can reimburse eligible costs, but local governments may still be responsible for significant expenses before, during and after an emergency. Local resources may be needed for debris removal, road clearance, emergency operations, repairs to public facilities and infrastructure, flood mitigation and other recovery needs.

Communities also face the longer-term challenge of investing in more resilient buildings and infrastructure before a disaster occurs. These investments can reduce future damage, protect residents and help communities recover more quickly.

The availability of reliable recurring revenue can therefore affect not only routine capital improvements but also a community's ability to prepare for and respond to future emergencies.