Florida voters faced a ballot measure on Election Day known as Amendment 3, the Homestead Tax Exemptions, Property Assessments and Spending Restrictions Amendment, which required 60% voter approval to pass [1]. The measure would significantly reshape Florida's property tax landscape by increasing the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with subsequent inflation adjustments [1]. Additionally, Amendment 3 would lower the annual cap on assessment increases for non-homestead properties from 10% to 5% and establish new residency requirements, making new Florida residents eligible for the increased exemption after five years of residency [1].
The fiscal impact of Amendment 3 would be substantial for local governments. According to Tax Foundation analysis, the measure would cost local governments approximately $4.9 billion in foregone property tax revenue in the first year with the $150,000 exemption in place, rising to $8.7 billion in the second year once the $250,000 exemption takes effect [1]. Annual impacts would escalate to $11.8 billion starting in tax year 2031, though the Tax Foundation cautioned that "the full fiscal impact remains uncertain and could easily exceed current estimates" [1]. The measure would also establish constitutional guidelines restricting how county and municipal governments use property tax revenue, confining expenditures to public safety, infrastructure, natural resource projects, flood control, local bonds and debt payments, employee retirement benefits, and local government operations [1].
Proponents of Amendment 3, including Florida Republican Governor Ron DeSantis and many GOP leaders, argued that local governments have significantly increased revenues in recent years. DeSantis noted that "property tax revenues across Florida's 67 counties have increased nearly 100%" over the past seven years, stating that "local governments are taking in almost twice as much money – far more than inflation and population has increased" [1]. The measure was set to take effect on January 1, 2027, with people moving to Florida after December 31, 2026, receiving a smaller initial exemption under the law [1].
CONCLUSION
Amendment 3 represents a major fiscal shift for Florida's local governments, potentially reducing annual property tax revenue by $11.8 billion by 2031 while providing homeowners with substantial tax relief [1]. The measure's passage would significantly constrain local government financing and require substantial budget adjustments across Florida's 67 counties, though the full fiscal impact remains uncertain and could exceed current estimates [1].