Amendment 3 passes: Here’s how Florida’s newest property tax proposal works
Florida voters have officially approved a new property-tax plan that is soon set to take effect, according to the Associated Press.
The proposal — Amendment 3 — provides a new homestead exemption for non-school taxes for residents in the state.
Current homestead exemption rules in the state operate as follows, with two different brackets of assessed value being tax exempt:
| Assessed Value | Application of Homestead Exemption (Current) |
|---|---|
| The first $25,000 | Exempt from all property tax |
| $25,000.01 –> $50,000 | Fully taxable |
| $50,000.01 –> $75,000 | Exempt from non-school taxes |
| Remaining value | Taxable, though other exemptions may apply |
But under Amendment 3, the exemptions would apply solely to non-school taxes, though the exempted amount would raise dramatically:
- 2027 — First $150,000 of assessed value
- 2028 — First $250,000 of assessed value
- 2029 onward — First $250,000 of assessed value, indexed to inflation
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However, this only applies to homeowners who are permanent residents of Florida before the amendment takes effect on Jan. 1, 2027. For newcomers, the timeline is a bit different.
Amendment 3 instead provides new residents with a five-year homestead exemption that comes out as follows:
| Assessed Value | Application of Homestead Exemption (Proposed) |
|---|---|
| The first $25,000 | Exempt from school taxes |
| $25,000.01 –> $50,000 | Exempt from non-school taxes |
| Remaining value | Taxable |
After this five-year period, the new residents will then be eligible for the higher exemption.
Meanwhile, the amendment also reduces the annual non-homestead property assessment growth cap from 10% to 5%, limiting how much these sorts of properties may be assessed each year.
In addition, the plan limits how local governments may spend property tax revenue:
- Public safety, including law enforcement, EMS and fire services
- Education and public schools
- Infrastructure, including roads, bridges and stormwater controls
- Natural resource projects, including flood control measures
- Issue local bonds for approved uses or to make debt service payments
- Meet obligations and retirement benefits of local government employees
- Fund the operations and administration of county officers and commissioners
If approved by at least 60% of voters on Tuesday night, the amendment is set to take effect on Jan. 1, 2027.