- October 15, 2026
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Photo by Petert2
As anyone who’s turned on a TV or checked their mailbox in the past few knows, it’s election season. And one of the most heated contests in Florida has to do with Amendment 3, a constitutional amendment aimed at property taxes.
What it does, according to the ballot language on the Florida Department of State’s website, is increase “the homestead exemption, for all non-school taxes, to $150,000 in 2027 and $250,000 in 2028, and adjusts for inflation thereafter.”
In May, Gov. Ron DeSantis called a special session to pass what he called the “Save Our Homes from Excessive Property Taxes plan.” It was approved by the Legislature in early June and voters will take it up next month.
It needs 60% approval to pass.
The Business Observer asked the leaders of two prominent statewide organizations, Florida Realtors and Florida TaxWatch, about how each views Amendment 3 and its impact.
Florida Realtors has come out in support of the amendment. Florida TaxWatch is opposed. Edited excerpts of the answers:
Florida families and businesses are facing rising costs from every direction, including housing, insurance, groceries and fuel, and paychecks haven’t kept up. Most of those costs are outside of Floridians’ control. Property taxes are one we can do something about.
By increasing the homestead exemption for non-school property taxes, Amendment 3 provides meaningful property tax relief at a time when affordability remains a major challenge. It would lower property tax bills and put more money back into household budgets.
For current and aspiring homeowners, the cost of owning a home goes well beyond closing. Property taxes put a strain on family budgets, and even if your local tax rate doesn’t change, your bill can rise as property values increase. Reducing and stabilizing that annual cost can make a real difference for families.
Businesses feel the same pressure. When assessments on commercial and rental property can grow up to 10% a year, operating costs can climb fast. Amendment 3 cuts that cap in half to 5%, giving property owners a clearer picture of future costs as they plan, invest and grow. It can also ease pressure on tenants who often absorb those rising costs.
Affordability is also a workforce issue. When Floridians can’t afford to live where they work, hiring and retention suffer. Relief for homeowners puts more money in workers’ pockets and more stability in their lives, which matters to every employer in the state.
At its core, Amendment 3 is about helping Floridians keep more of their hard-earned money and making it more affordable to buy, own and keep a home or business in Florida.
Florida voters will ultimately make that decision, but if Amendment 3 does not pass, Floridians miss a rare chance to directly address rising costs. Homeowners will not receive the property-tax relief the amendment provides, and businesses will keep operating under the current 10% cap on assessment growth. Costs will keep rising, and budgets will keep getting tighter.
Meanwhile, local government budgets will keep growing. Property tax collections by Florida's counties, cities and special districts have nearly doubled in seven years, from $32 billion to $60 billion — and they’re projected to hit $83 billion by 2032. Some counties have seen even steeper growth: Manatee (County’s) property tax revenue is up nearly 125% in ten years. Floridians helped fuel that growth, and they deserve to share in it.
Amendment 3 is a meaningful step that can provide relief now while broader conversations about Florida's tax system continue.
One of the biggest misconceptions is that Floridians must choose between property tax relief and essential services. That’s not the case.
Amendment 3 protects local school funding and directs counties and cities to put the property tax dollars they collect toward core needs first, like public safety and infrastructure. Those services remain the priority.
Property tax revenue has grown significantly, and Amendment 3 asks local governments to share some of that growth with the homeowners who helped generate it. That will require adjustments, just as Florida families and businesses have had to adjust as their own costs have climbed.
How each community adapts will look different, and that’s how it should be. Local leaders will set priorities based on their communities’ unique needs, through a transparent local budget process where residents have a voice.
Amendment 3 is about providing meaningful relief to homeowners today while allowing state and local leaders to continue governing and implementing. When voters approved major property tax reform in 2008, homeowners got relief and local governments adapted. We can do it again.
If at least 60% of voters approve Amendment 3, it will take effect on Jan. 1, 2027, but the conversation won’t end there. Implementation will begin, moving through the normal legislative and local budgeting processes. State and local leaders will continue making decisions about budgets, services and priorities for their communities. Florida Realtors has worked alongside state and local leaders for decades, and we’ll bring that same partnership to this next phase, helping support a smooth transition for homeowners, businesses and communities across the state.
If it does not pass, Florida will still need to confront the affordability challenges facing homeowners, renters and businesses.
Although Floridians deserve property tax relief, this hastily developed and passed amendment is not the right approach. It does not provide tax relief for those that have borne the brunt of increasing property taxes, non-homestead property such as renters, businesses, people who renovate or add to their home, first time homebuyers, and snowbirds. It has no safeguards against local governments replacing the lost revenue by raising millage rates or increasing or enacting other taxes or fees. This will increase the considerable tax shift that already exists for non-homestead property owners and also decrease the net tax relief for homestead homeowners.
For business owners, higher millage rates or other taxes means it is likely their overall tax burden will increase. The government services they receive may be reduced. Amendment 3 does reduce the non-homestead assessment cap from 10% to 5%, which will protect them from spikes in property values. But this is a cap on assessments, not taxes, so actual tax relief for non-homestead properties is not assured.
The largest fiscal change in the history of Florida government should not be sent to the ballot one week after the initial proposal surfaced. Florida TaxWatch believes it would be better to allow the constitutionally created Taxation and Budget Reform Commission to fully and deliberately examine this property tax relief, along with other tax and budget issues. The TBRC, which meets every 20 years and can put constitutional amendments on the ballot, will be created again in 2027.
The degree to which local governments rely on property taxes varies considerably, so the consequences for local governments will also vary, depending on how they respond. Many local governments will cut their budgets, as least initially, so services could be reduced. But others will increase taxes.
Most homestead owners will see their tax bill reduced. At the statewide average non-school rate of 10.5 mills, the average taxpayer would save $1,035 in 2027 and $2,085 in 2028. This assumes millage rates do not increase. Savings will vary depending on where a taxpayer lives.
Consequences which are likely include some service reductions, some tax increases, an increasing tax shift, and a negative impact of local government bond ratings, which will increase debt costs. There could also be a proliferation of non-ad valorem assessments and special taxing districts.
There are a few:
A yes vote automatically equals permanently lower taxes. Without restrictions on local government spending, millage rates, or other taxes, tax savings could dissipate over time.
Property taxes will be phased out. The amendment requires the Legislature to develop a uniform process for local government to further increase the new homestead exemption, but there is no requirement to do it.
Public safety and other core services are protected from budget cuts. Such protection does not exist, as evidenced by the opposition of many law enforcement agencies.
Again, it depends on how local governments choose to respond. Hopefully, cost savings and cutting unnecessary spending would be part of all local governments’ responses to Amendment 3. However, this is not guaranteed. Counties, cities, and special districts will either have to cut their budget or increase taxes. Residents will see this impact in the next fiscal year (2027-28), when the homestead exemption is increased to $150,000. The full impact will be felt in FY 2028-29 when the exemption rises to $250,000.
