Florida Realtors are pumping up support for an effort to pass a proposed constitutional amendment aimed at reducing property taxes for homeowners, as law enforcement officials and local governments line up in opposition to what will appear as Amendment 3 in November.
The ballot measure, also backed by Gov. Ron DeSantis, would increase the nonschool homestead tax exemption to $150,000 on Jan. 1, 2027, and to $250,000 on Jan. 1, 2028. After that, the exemption would be adjusted annually for inflation.
Florida Realtors CEO Margy Grant estimated the proposal would save about $1,000 a year in 2027 and $1,800 in 2028 for the average homeowner.
“Amendment 3 is ultimately about giving Florida homeowners actual meaningful tax relief,” Grant said on the latest episode of State Affairs’ “Between the Lines with Dara Kam” podcast.
Florida Realtors has contributed $18 million to the Vote Yes on 3 committee backing the measure, fully bankrolling the effort thus far.
DeSantis spent a year traveling the state and calling for a measure to reduce property taxes to be placed on the Nov. 3 ballot. Lawmakers approved the proposed constitutional amendment, House Bill 1F, in a June special session, but it fell short of what DeSantis wanted.
Under current law, residents with homestead exemptions do not pay taxes on the first $25,000 of their properties’ assessed values. They also do not pay property taxes based on the assessed values between $50,000 and $75,000, although that exemption does not apply to school taxes. Lawmakers decided to shield schools from the proposed cuts. Property taxes that go to schools would continue under the current $25,000 homestead exemption framework.
The ballot measure would also further limit tax increases on nonhomesteaded properties, including second homes, rental homes and commercial properties. Current law caps annual increases in the assessed value of those properties at 10%; the proposal would lower the cap to 5%.
The proposed changes would give landlords more predictability and could potentially stabilize rents, Grant argued.
“If they’re paying less, then there is a very high probability they’re not going to have a need to increase rent,” Grant said.
The proposal restricts how counties and municipalities may spend ad valorem revenue, saying spending must be used “solely for public safety, education and schools, infrastructure, natural resources, bond debt service, retirement benefits for employees, and operations and administration.” Other types of spending would have to be approved by county or city governing bodies.
Opponents of the plan include state associations representing law enforcement such as sheriffs, police chiefs and fire chiefs; environmental groups, such as 1000 Friends of Florida and the Sierra Club; and economic development councils.
Critics argue the proposed property tax reductions would shrink local government spending by billions of dollars in the first five years and could pose a threat to public safety, local infrastructure projects and funding for parks and libraries. Rural communities with small tax bases also have expressed concern that the measure could gut their revenues.
For example, Polk County Sheriff Grady Judd called the proposal “a train wreck” and threatened it would slow down emergency response times.
“Amendment 3 doesn’t protect law enforcement, firefighters or emergency services, it defunds them. You can’t take billions of dollars out of local government and pretend it won’t affect the law enforcement officer who answers your 911 call, the firefighter responding to your home or the roads and stormwater systems your community relies on,” Judd said.
Some opponents suggest the state should wait for recommendations from the Florida Taxation and Budget Reform Commission, which meets every 20 years and will gather in 2027, before enacting property tax reform.
But Grant said Amendment 3 is just part of a broader review of property taxes.
“Amendment 3, however, will provide homeowners with relief now, while that larger conversation continues,” she said. “Right now, the focus is simply on Amendment 3 as proposed. … Amendment 3 is designed to increase the homestead exemption to make homes more affordable to live in.”
Dara Kam is the senior Statehouse reporter for State Affairs Florida. Reach her at dkam@stateaffairs.com or on X @TheDaraKam.
