A proposed constitutional amendment could save Florida homeowners tens of thousands of dollars in property taxes, but local governments and other organizations warn it could also lead to billions of dollars in lost revenue.

News 6 hosted a community discussion Monday to examine the potential impact of Amendment 3, which would dramatically expand Florida’s homestead exemption.

Supporters say the measure could help rein in rising property taxes. But critics question whether a larger exemption is the best way to address those increases and warn it could create unintended consequences.

[PART 1: Answers to your questions about Amendment 3]

“Homestead exemptions are really not a great way to tax property,” one panelist said. “They’re a carve-out, and carve-outs have adverse results.”

Another panelist said the amendment could increase market distortions.

“There are billions of dollars being spent in ways that weren’t being spent just a few years ago because of this increase,” the panelist said. “That’s what this amendment would help rein in.”

[PART 2: Answers to your questions about Amendment 3]

The Orlando Economic Partnership is hosting a forum Friday morning to discuss the amendment and its potential effects on Florida’s economy. Local leaders, including Orange County Sheriff John Mina, are expected to participate.

“Amendment 3 could have a huge impact on Florida’s economy,” said Bob O’Malley of the Orlando Economic Partnership. “And there’s really a lot of unknowns. We don’t know. And that’s really the danger of Amendment 3.”

[PART 3: Answers to your questions about Amendment 3]

If approved, the amendment would reduce the amount of a homeowner’s property value subject to taxation. That could mean lower property tax bills for homeowners, but less revenue for local governments.

Those governments could be forced to reduce spending, cut services or eliminate jobs — or find other sources of revenue.

[PART 4: Answers to your questions about Amendment 3]

“We really think that this issue is too complex to deal with in a yes-or-no vote and an amendment to the state’s Constitution,” O’Malley said. “It really needs to be handled during the legislative session.”

The amendment needs at least 60% of the vote to pass. If approved, it would take effect Jan. 1, 2027.

[PART 5: Answers to your questions about Amendment 3]