Understanding Florida Amendment 3: Proposed Property Tax Changes and Local Impacts

On Nov. 3, 2026, Florida voters will consider Amendment 3, a proposed constitutional amendment that would make significant changes to homestead exemptions, limits on non-homestead property assessments, and the use of local property tax revenue.

The Community Foundation of Sarasota County is not taking a position on Amendment 3. We are sharing this overview as a resource for community members who want to better understand the proposal, its potential local effects, and the different perspectives surrounding it.

What would Amendment 3 change?

Amendment 3 is titled “Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments.” Because it would amend the Florida Constitution, it requires approval from at least 60 percent of voters. If approved, the amendment would take effect Jan. 1, 2027.

For eligible homestead properties, the amendment would increase the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028. Beginning after that, the exemption would be adjusted for inflation. The increased exemption would not apply to school district property taxes.

The amendment would also reduce the annual assessment-growth cap for non-homestead property—including commercial properties, rental properties, and second homes — from 10 percent to 5 percent. This limits how quickly a property's assessed value can increase; it does not limit the tax rate, or millage rate, applied to that value.

For people who are not Florida residents as of Dec. 31, 2026, the amendment establishes a waiting period before the larger homestead exemption would apply. It also directs the Florida Legislature to establish a process through which counties and municipalities could increase the exemption further, potentially up to the full assessed value of a homesteaded property. Special districts could increase exemptions with voter approval.

The amendment also adds provisions addressing how counties and municipalities may use property tax revenue, identifying categories including public safety, education, infrastructure, natural resources, debt service, retirement obligations, and government operations. Other locally approved expenditures would remain permitted unless prohibited by state law.

What could the financial impact be?

Because the amendment would reduce the taxable value of many properties for non-school taxes, it would also reduce the amount of property tax revenue collected by local governments if current millage rates remain unchanged.

Statewide estimates by the Florida Legislature’s Office of Economic & Demographic Research indicate that local property tax revenue would be approximately $4.9 billion lower in fiscal year 2027–2028 and $8.7 billion lower in 2028–2029, with the annual reduction growing to approximately $11.8 billion by 2031, assuming current tax rates. Actual effects would differ across communities based on property values, tax bases, millage rates, and decisions made by individual taxing authorities. Local governments are also developing their own estimates.

The amendment does not prescribe how local governments must respond to reduced property tax revenue. Decisions about budgets, tax rates, fees, reserves, and services would continue to be made by individual local governments within the requirements of state law.

What are supporters and opponents saying?

Organizations across Florida have reached different conclusions about Amendment 3.

Supporters, including Florida Realtors, emphasize the property tax savings available to eligible homeowners and argue that reducing housing-related costs can help address affordability and the cost of homeownership.

Organizations expressing opposition or concern have focused primarily on the effect reduced property tax collections could have on local government finances and services. The Florida Nonprofit Alliance says it supports meaningful property tax relief, but not this specific amendment proposal due to the possible effects on public services and the resulting pressure on nonprofits. The Florida League of Cities opposes the amendment and argues that it could shift costs within the local tax system. The Florida Fire Chiefs’ Association and Florida Sheriffs Association have raised concerns about uncertainty surrounding future funding for public safety services.

These organizations represent their own perspectives. Readers may find it useful to review their complete statements, along with the official amendment language and fiscal analyses, when considering the measure.

Learn more

• Official amendment information: The Florida Department of State provides the ballot title, summary, and constitutional language.

• Fiscal and policy analysis: Florida TaxWatch and the Florida Chamber of Commerce provide additional information about the proposal and estimated impacts.

• Local information: The City of Sarasota, City of Venice, and Manatee County Property Appraiser provide examples of how local agencies are evaluating the amendment.

• Perspectives on Amendment 3: The Florida Nonprofit Alliance provides research and resources focused on the potential effects of Amendment 3 on nonprofit organizations and local services and has announced its opposition to the amendment. Florida Realtors has announced support for the measure, while the Florida League of Cities and Florida Fire Chiefs’ Association provide perspectives raising concerns about its effects.

• How Florida property taxes work: The Florida Department of Revenue explains assessed value, taxable value, exemptions, and millage rates.

• Voting and election information: Visit the Florida Division of Elections or your local supervisor of elections in Sarasota, Manatee, Charlotte, or DeSoto County.