Floridians will decide the future of the state’s property tax system. Amendment 3 is a proposed change to the state’s Constitution that needs at least 60% voter approval to pass.
It would increase how much of a homeowner’s primary residence is exempt from certain property taxes, raising the maximum homestead exemption from about $51,000 to $150,000 next year, and $250,000 in 2028 for non-school property taxes. The proposal also changes how much the taxable value of rental properties and other non-homestead properties can increase every year.
Amendment 3 supporters say the proposal would provide homeowners with relief as housing costs continue to strain household budgets, while opponents warn that reducing property tax revenue will affect local services, neighborhood appeal, and the broader cost of living.
What’s at state for Florida’s housing market
One of the many questions at the center of the debate is whether reducing property taxes could affect home prices, buyers, and renters.
Amendment 3 supporters say it would offer homeowners tax relief in a state that has become so expensive to buy a home that people are being priced out.
The Florida Realtors Association has given about $19.5 million to a Political Action Committee or PAC called Vote Yes on 3, saying passing this legislation would make owning a home more affordable.
“Right now, my more than 230,000 members have had one message for me, and that is that Florida is becoming unaffordable, and families see it everywhere they go,” said Margy Grant, chief executive officer of Florida Realtors. “Amendment Three is real property tax relief right now.”
Grant also chairs the Vote Yes on 3 committee.
“What we've studied across the state is that in 2027, the average homeowner in the state of Florida is going to see more than $1,000 in property tax savings, and in 2028, that jumps to more than $2,500,” she added.
Grant does not expect Amendment 3 to have a significant impact on home prices arguing those are dictated by the market, what a buyer is willing to pay, and what a seller is willing to accept.
Opponents warn the proposed tax changes will have consequences beyond a homeowner’s property tax bill.
Jackson Peel, communications director for Save Our Services - No on 3, says it’s a tax shift and people will see other costs rise.
“As homestead property taxes get cut a little bit, you're going to see other taxes and fees go up, and so what's going to end up happening is a family is going to basically end up paying the same as they did before or possibly more,” Peel said.
He gave examples such as increased sales tax, gas tax, fire assessment fees, or garbage fees to make up for lost revenue in ways that will affect everyone.
Orlando realtor Eric Rollings of Mainframe Real Estate opposes the amendment, citing concerns about how reduced property tax revenue could affect the quality of local neighborhoods.
“When I sell a house, 90% of the people that are buying a house from me ask, ‘What are the parks like? What kind of neighborhood fees are associated with this? Are their streets being maintained publicly by local entities and municipalities?’”
Rollings said funding from property taxes allows local governments to pay for critical services and maintain public spaces. If that funding declines, communities could see a deterioration in the amenities that help attract homebuyers.
According to the Governor, the proposed constitutional amendment establishes a pathway toward eliminating non-school property taxes on homesteaded properties.
Impact to water management districts
The debate over Amendment 3 and property taxes extends beyond housing. Those taxes help fund Florida’s five water management districts, and the amount varies by region.
The Legislature established the districts after concerns about how water resources were being managed. They were given broad responsibilities, from protecting water supplies and water quality to managing flood risks and preserving natural systems.
Opponents of Amendment 3 have raised questions about whether changes in property tax revenue could affect that work.
Greg Knecht, executive director of the Nature Conservancy in Florida, says the organization has partnered with water management districts on land conservation and restoration. He says that Amendment 3’s broad approach to reducing taxes would negatively impact water resources for decades.
Three districts serve the broader Central Florida region: the St. Johns River, South Florida and Southwest Florida water management districts. Knecht says each relies on property tax revenue, known as ad valorem taxes, to support different priorities.
The South Florida Water Management District, for example, oversees an extensive flood control system and plays a major role in Everglades restoration. The St. Johns River Water Management District funds land acquisition, restoration, and public works projects, while the Southwest Florida Water Management District directs funding toward alternative water supplies to help meet the region’s growing demand for drinking water.
Knecht said a reduction in property tax revenue could force the districts to make difficult decisions about how to allocate their resources.
Central Florida Public Media contacted all three districts serving the region for comment on Amendment 3. They either did not respond or declined to comment on the proposal.
