Florida voters will consider Amendment #3 on the ballot for November 3, 2026. The proposed Florida Constitutional amendment would substantially expand homestead tax relief, reduce the permissible annual growth of non-homestead assessments, establish constitutional parameters governing local-government use of ad valorem revenues, and authorize future mechanisms for additional local homestead tax relief. Publicly available analyses project significant reductions in local government property tax revenues statewide should the amendment be approved by voters.

For Florida cities and municipalities, the principal concern is not a direct change to public pension laws. Amendment #3 does not amend Chapters 175 or 185, Florida Statutes, does not alter accrued pension benefits, does not change statutory funding requirements, and does not modify state premium-tax distributions supporting police officer and firefighter local law pension plans.

The primary impact is expected to be a fiscal one for the plan sponsor, namely Florida cities and municipalities. Due to the fact that Florida cities rely heavily upon residential property taxes and have a predominantly homestead-based residential tax base, Amendment #3 could materially reduce future growth in taxable value and property-tax revenues. Because pension obligations, labor costs, infrastructure needs, and public-safety expenditures are expected to continue increasing over time, Florida cities could experience growing budgetary pressure despite remaining fully obligated to fund their pension commitments.

Accordingly, from both a pension-law and municipal-finance perspective, Amendment #3 presents a potential affordability and fiscal-capacity issue rather than a more specific pension-compliance issue.