Proposed Amendment 3 to Florida’s Constitution

In addition to federal, state and local races, the 2026 General Election ballot will contain three proposed amendments to Florida’s Constitution.  While it is anticipated the US Senate and Governor’s races will garner the most attention, the proposed amendments are significant and should be carefully considered by the voters. Amendment 1 increases the amount of funds the Legislature must keep in the state’s “rainy-day” fund.  Amendment 2 exempts farm equipment from local property taxes.  Amendment 3 is the most controversial and has the potential to impact everyone in Florida.

Amendment 3: Homestead Tax Exemptions, Property Assessments and Spending Restrictions would make major changes to how property taxes are calculated and spent in the state. If approved by 60% of the voters, the “homestead” exemption which shields part of the home’s taxable value would increase from its current amount of $50,000 to $150,000 in 2027 and to $250,000 in 2028. It would increase with inflation annually thereafter.  New Florida residents would not receive an increased exemption until they live in the state for 5 yearsAs a result of a legal challenge claiming the title was deceptive, the amendment originally known as “Save Our Homes From Excessive Property Taxes” underwent a court ordered title change by the State Attorney General and is now called “Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments”.

 It is important to understand that the exemption increases apply only to county and local government taxes and do not apply to school taxes where the “homestead” exemption would remain at $25,000.  Amendment 3 also reduces the amount of the assessed value of non-homestead properties (commercial, rental and non-primary residences) can rise from 10% to 5% annually.

In addition to lowering property taxes, Amendment 3 imposes restrictions on how county and local governments can use property tax revenue.  It could only be spent on certain core needs like public safety, education, infrastructure, natural resource projects, flood control, local bonds, employee retirement benefits and government operations. The amendment, however, allows funds to be used for “expenditures approved” by county and local governments thereby providing some flexibility.

For many homeowners, especially those with lower assessed values, Amendment 3 could eliminate their non-school property tax bill. It is estimated that if passed, Amendment 3 would result in a decline of about $12 billion in revenue to county and local governments. Such a deficit could be made up by raising other taxes and fees or reducing or eliminating services or a combination of both.

As you prepare to vote on Amendment 3, look at your latest tax bill to see how it could affect you. Remember Amendment 3  only reduces ad valorum county and local government property taxes. It does not affect school taxes or non-ad valorum assessments such as Maintenance fees or Fire District fees and does not change any bond obligations you may have on your property.

A “yes” vote would result in a lower property tax bill for most homeowners, reduce the increase of property value growth on non-homestead property from 10% to 5% annually and limit how county and local governments can use property tax revenue. A “no” vote would maintain the current exemptions, and higher property value growth limitations and not restrict how county and local governments use property tax revenue.

Next time, there will be a discussion of the potential impact on county and local governments if Amendment 3 passes.

The VHA Editorial Committee

Rich Cole

Roger Kass