Florida Voters to Decide on Property Tax Changes in November

Floridians will vote on Amendment 3 in the upcoming November election, a constitutional change that could significantly alter property tax assessments across the state. The measure, already passed by the Florida Legislature, aims to increase homestead exemptions and reduce the annual cap on property value increases for non-homestead properties.

If approved by 60% of voters, Amendment 3 would raise the non-school portion of the homestead exemption from $50,000 to $150,000 in 2027 and $250,000 in 2028. It would also lower the cap on annual assessment increases for non-homestead properties from 10% to 5%. Furthermore, new Florida residents would face a five-year waiting period to qualify for the full homestead exemption amount.

Indian River County Property Appraiser Wesley Davis stated that the amendment's specifics are crucial for homeowners. While current homesteaded owners would see a larger exemption, the portability of the "Save Our Homes" benefit remains intact, allowing them to transfer accumulated savings when purchasing a new Florida residence.

The amendment introduces a residency deadline for prospective buyers. Those establishing Florida residency by December 31, 2026, would receive the full exemption upon approval. Individuals establishing residency after this date would initially receive a $50,000 exemption and must wait five years for the higher amount, a factor real estate professionals note will influence purchasing decisions.

Beyond primary residences, the change impacts second homes, rental properties, and commercial real estate by capping their annual assessment increases at 5%. Legislative analysis projects significant reductions in state tax revenues, potentially reaching $4.6 billion in the first year. Local taxing authorities retain the ability to adjust millage rates, and non-ad valorem assessments are unaffected.