In Tuesday’s general election, Florida’s Amendment 3 was approved by more than 61% of the voters with more than 90% of votes counted. The proposed amendment will increase the state’s homestead property tax exemption from the current $50,000 exemption to $150,000 in 2027 and $250,000 in 2028. This proposed amendment is limited to non-school ad valorem taxes, so it only applies to property taxes levied by counties, cities, and special taxing districts. The Constitutional Amendment was initially crafted by Governor Ron DeSantis and passed by the Florida Legislature during a Special Session early this June.

Florida voters exclaimed that they need relief from the excess growth of local property taxes post-pandemic. Due to a combination of market value increase and local millage rates, statewide property tax collections grew from nearly $40 billion in 2021, to nearly $45 billion in 2022, over $50 billion in 2023, over $55 billion in 2024, and nearly $60 billion in 2025. State economists forecast that local property taxes were expected to grow to more than $80 billion by 2032 under the current system. The passage of Amendment 3 changes that trajectory.

In addition to the new super homestead exemption, Amendment 3 will halve the current Constitutional limit for annual taxable value increases for nonhomestead properties from the 10% to 5%. If local government millage rates remain consistent, this reduction of the annual cap will provide predictability for nonhomestead property owners. If local governments are able to increase property tax rates without limitation, tax burdens will be shifted.

Even though voters approved this proposal, expect more discussions of property tax changes. While campaigning for the Amendment, Governor DeSantis provided that he would call the Legislature into a Special Session to further implement Amendment 3. Additionally in 2027, Florida will kick off a once-every-twenty-year Taxation and Budget Reform Commission that will continue to look at potential changes. That Commission will be appointed by newly elected Governor Byron Donalds, Senate President Jim Boyd, and Speaker of the House Sam Garrison.  The Commission will be responsible for suggesting legislative changes or placing Constitutional Amendments on the 2028 General Election ballot.