Florida's Amendment 3 Would Raise the Homestead Exemption to $250,000 by 2028, and the Tax Foundation Says Local Governments Would Lose Billions
Voters need 60% to pass it. DeSantis says local property tax revenue has nearly doubled in seven years. Democrats call it a giveaway, and the Tax Foundation says it shifts the burden to renters, businesses and new buyers.
Florida voters decide Tuesday on a property tax measure that would change how local government is paid for, Fox Business reports. It needs 60% of the vote to pass.
What it does. Amendment 3 would raise the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, then adjust it for inflation. It would cut the annual cap on assessment increases for non-homestead property from 10% to 5%. People who move to Florida after Dec. 31, 2026 would get the larger exemption only after five years, with the current exemption of up to $50,000 in the meantime. It would also limit local governments to spending property tax revenue on public safety, infrastructure, natural resource projects, flood control, bonds and debt, employee retirement benefits and government operations. It would take effect Jan. 1, 2027.
The case for it. Republican lawmakers, the state party and Gov. Ron DeSantis back it. DeSantis said at a roundtable that property tax revenue across Florida's 67 counties has risen nearly 100% in seven years, "far more than inflation and population," while the state has cut its own budget four years running. He says the measure gives relief and could eliminate property taxes for homesteaded Floridians.
The case against it. The Florida Democratic Party's executive committee opposes it. Chair Nikki Fried called it "a scam" that would either raise other taxes on working families or cut public hospitals, EMTs, fire rescue, roads, libraries and parks, and said it gives big breaks to billionaires and corporations.
The Tax Foundation's view. The nonpartisan group is critical of the design. It estimates local governments would lose about $4.9 billion in the first year, $8.7 billion in the second, and $11.8 billion a year from tax year 2031, and warns the cost "could easily exceed current estimates." It says the measure "is not simply a tax cut" and that burdens "would shift to businesses, renters, new homebuyers, and other property owners through higher taxes, fees, and housing costs."
Our note. The dollar figures belong to the Tax Foundation and the quotes to the people named. We have not checked them, and the real effect would depend on how local governments respond. Earlier coverage on the cost of homeownership is in our economy section.