Amendment 3: Property Tax Reform, Explained

Amendment 3 proposes a major overhaul of Florida's property tax system. Its primary purpose is to substantially reduce property taxes on primary residences while restricting how much local governments can collect and spend.

The Florida Legislature placed the amendment on the ballot, and it requires 60% voter approval to pass.

1. Dramatically increase the homestead exemption

2027: Increase the exemption to $150,000 of assessed value.

2028: Increase it to $250,000.

2029 onward: Adjust the exemption annually for inflation.

The increased exemption would apply only to non-school property taxes. School district property taxes would remain unchanged. For example, a homeowner with a taxable assessed value of $250,000 or less could potentially eliminate the non-school portion of their property tax bill.

2. Allow local governments to eliminate additional property taxes

The amendment would establish a process allowing counties and municipalities to increase the homestead exemption up to the property's full assessed value. This could eventually eliminate all non-school property taxes on primary residences in participating jurisdictions. However, the amendment does not require local governments to eliminate these taxes entirely.

3. Reduce assessment increases on non-homestead properties

Currently, Florida generally limits annual increases in assessed value on non-homestead properties to 10%. Amendment 3 would reduce that cap to 5% annually for non-school property taxes. This would benefit owners of rental properties, commercial properties, and second homes by limiting how quickly their taxable assessments could increase.

4. Establish a five-year waiting period for new Florida residents

People who are not Florida residents as of December 31, 2026, would initially qualify only for the existing homestead exemption. They would become eligible for the increased exemption beginning in their fifth year of homestead eligibility. This provision would apply only to the extent permitted by the U.S. Constitution.

5. Restrict how local governments spend property tax revenues

Amendment 3 would limit county and municipal property tax spending primarily to  public safety, including police and fire protection; education and schools; infrastructure, natural resources, bond debt payments, employee retirement benefits, government operations and administration

Local officials could still approve other expenditures unless state law prohibits them. This provision is particularly significant because it introduces additional state constitutional restrictions on local governments' traditional home-rule authority.

According to Florida's Revenue Estimating Conference, the amendment would reduce local government property tax revenues by approximately:

FY 2027–2028: $4.95 billion

FY 2028–2029: $8.78 billion

Fully implemented: $11.86 billion annually

These estimates do not include additional losses if local governments subsequently eliminate more homestead property taxes.

Supporters argue that Florida homeowners are paying increasingly burdensome property taxes despite the state's substantial population growth and rising property values. They contend that the amendment would provide meaningful relief to homeowners, particularly retirees and residents on fixed incomes.

Supporters also argue that local governments should be able to find ways to operate more efficiently and prioritize essential services rather than continually increasing spending.

Opponents contend that the amendment would undermine local governments' ability to fund essential services. They argue that cities and counties would have three main options to address the revenue losses: cutting services, raising other taxes and fees, or shifting more of the property tax burden onto businesses and non-homestead properties.

Critics also emphasize that renters would receive no direct homestead tax relief and could face higher costs if landlords pass along increased taxes or fees. Another concern is that the amendment would further restrict local home rule by allowing the state to dictate how locally generated tax revenues can be spent.

One of the more consequential aspects of Amendment 3 is its potential impact on local self-government. Although the amendment permits local officials to authorize additional spending categories, it also explicitly allows the Legislature to prohibit those expenditures through state law. Consequently, the Legislature could gain additional influence over how counties and municipalities spend their own property tax revenues.

The central trade-off: Amendment 3 would deliver substantial property tax reductions to homesteaded homeowners, but at the expense of local government revenues and potentially greater state control over local spending.

If approved, the amendment would take effect January 1, 2027.