Florida voters will decide whether a constitutional amendment that dramatically expands homestead tax breaks and reins local government spending gets the 60% approval needed to become law.
Key points
- Amendment 3 would increase the homestead exemption to $250,000 by 2028 and cap non‑homestead assessment hikes at 5%.
- The Tax Foundation projects up to $11.8 billion in annual revenue losses for local governments by 2031 if the amendment passes.
- Supporters frame the measure as tax relief; opponents warn it could shift the burden to renters, businesses and new homeowners while curtailing local services.
The Florida Legislature has placed Amendment 3 – the Homestead Tax Exemptions, Property Assessments and Spending Restrictions Amendment – on the ballot for the November 2026 election, requiring a super‑majority of 60% to pass.
If approved, the amendment would raise the non‑school homestead exemption to $150,000 in 2027 and to $250,000 in 2028, with future adjustments tied to inflation. It would also halve the annual cap on assessment increases for non‑homestead properties from 10% to 5% and set new residency rules, giving newcomers a smaller initial exemption after Dec. 31 2026.
What Amendment 3 proposes
A Tax Foundation analysis estimates the first‑year loss of property‑tax revenue at about $4.9 billion, climbing to $8.7 billion in the second year and reaching $11.8 billion by 2031, though the group cautions that the full fiscal impact remains uncertain and could exceed current projections.
Governor Ron DeSantis and a coalition of Republican lawmakers back the measure, arguing that property‑tax revenues have nearly doubled in the past seven years and that the amendment would provide needed relief for homeowners. Democratic leaders, including State Party Chair Nikki Fried, oppose it, warning that the cuts could force local governments to raise other taxes or fees and jeopardize services such as public safety, health care and infrastructure.
Estimated fiscal impact
Beyond the exemption changes, the amendment would constitutionally restrict how counties and municipalities may spend property‑tax revenue, limiting expenditures to public safety, infrastructure, natural‑resource projects, flood control, debt service, employee retirement benefits and core government operations.
Reader questions
When would the new homestead exemptions take effect?
The $150,000 exemption would begin on Jan. 1 2027, rising to $250,000 on Jan. 1 2028, with later adjustments tied to inflation.
How much revenue could local governments lose under Amendment 3?
The Tax Foundation estimates $4.9 billion in the first year, $8.7 billion in the second year and $11.8 billion annually by 2031, though the total impact could be higher.
What are the main arguments for and against the amendment?
Proponents, led by Gov. Ron DeSantis, say the amendment eases the tax burden on homeowners. Opponents, including the Florida Democratic Party, argue it would reduce funding for essential services and shift costs to other taxpayers.
Source: foxbusiness.com
