Florida Passes Amendment 3: Property Tax Relief Collides With Local Services

Florida voters have approved a sweeping overhaul of property taxes that promises immediate financial relief for homeowners while threatening billions in budget cuts for local municipalities. HousingWire, CBS 12, and Yahoo Finance reported that Florida Amendment 3 passed with 62% of the vote on November 3, 2026, clearing the state's required 60% threshold.

The measure fundamentally restructures how local governments are funded in the state, driven by years of surging home valuations and property tax burdens stemming from pandemic-era migration. Median homeowner property taxes in Florida jumped over 50% from $2,035 in 2019 to $3,180 in 2025, according to Yahoo Finance.

When do the new homestead exemption changes take effect?

The phased exemption changes and commercial cap reductions take effect starting January 1, 2027, according to reporting from HousingWire and FOX Business.

Under the new rules, the existing $50,000 homestead exemption will increase to $150,000 for non-school property taxes in 2027, and climb further to $250,000 in 2028. Additionally, non-homestead commercial property assessment caps will be lowered from 10% to 5% starting on January 1, 2027. Homeowners must establish Florida residency by December 31, 2026, to receive the full benefit immediately; later arrivals will receive the standard $50,000 exemption for four years before qualifying for the higher tiers.

How much revenue will local governments lose?

Projections from state analysts and independent tax groups point to billions of dollars in lost municipal revenue, though estimates vary by organization.

• The Florida legislature’s economic research office estimated local governments would lose nearly $5 billion in revenue in 2027 and $8.8 billion in 2028 when fully phased in, as reported by Yahoo Finance and CBS 12.
• The Tax Foundation projected revenue losses of $4.9 billion in the first year under the $150,000 exemption, rising to $8.7 billion in the second year, and reaching $11.8 billion annually starting in tax year 2031.

Who supports and opposes Amendment 3?

Proponents argue the amendment provides long-overdue relief, while opponents warn of severe consequences for public safety and infrastructure.

Gov. Ron DeSantis, who called a special session to place the measure on the ballot, celebrated the outcome on X on Tuesday night, posting, “Big win on Amendment 3 for Florida homeowners!” DeSantis noted that county property tax revenues increased nearly 100% over the past seven years, arguing that local governments "can surely do the same" as the state budget, which was reduced four years in a row. Danielle Blake, Chief of Residential and Advocacy for Miami Realtors, told Yahoo Finance that the vote showed "voters speaking loud and clear that they want relief."

Conversely, opponents including the Florida Sheriffs Association, Florida State Democratic Party, and the Tax Foundation warned of severe fallout. Florida State Democratic Party Chair Nikki Fried stated the measure "would hurt our local communities and cut local services while giving huge tax breaks to billionaires and corporations." Billy Woods, President of the Florida Sheriffs Association, warned in an association ad of fewer deputies, slower 911 response times, and increased crime, stating, “We want a tax cut too, but Amendment 3 is the wrong way to do it.” The Tax Foundation added in its analysis that the amendment "is not simply a tax cut" but a restructuring that shifts tax burdens onto renters, businesses, and new homebuyers.