Florida Property Tax Amendment Heads to November Ballot After Legislative Approval

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Florida Property Tax Amendment Heads to November Ballot After Legislative Approval
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Florida voters will decide in November whether to approve a sweeping property tax amendment that could raise the homestead exemption to $250,000 and reshape how local governments collect and spend ad valorem revenue.

The Florida Legislature passed CS/HJR 1F, titled “Save our Homes from Excessive Property Taxes,” during a special session called by Governor Ron DeSantis. The House approved it 75-26 and the Senate 30-9 on June 2, 2026. The amendment requires at least 60% voter approval to take effect January 1, 2027.

Key Provisions

The measure would amend Article VII, Sections 4, 6, and 9 of the Florida Constitution:

Expanded Homestead Exemption (Non-School Taxes): The homestead exemption for non-school ad valorem taxes would rise to $150,000 of assessed value in 2027, then to $250,000 in 2028 and thereafter. Starting in 2029, the exemption would be indexed for inflation. This applies to taxes levied by counties, municipalities, and other non-school entities.

New Residents Phase-In: Property owners who are not permanent Florida residents as of December 31, 2026, would initially receive a more limited exemption: $25,000 for school levies and $50,000 for non-school levies. The non-school portion indexes to inflation starting in 2028. After five years of residency, they qualify for the full homestead benefits available to long-term residents.

Assessment Caps: The annual assessment increase limitation for non-homestead properties (rentals, commercial, and other non-homestead real property) would drop from 10% to 5% per year for taxes levied by counties, municipalities, and special districts. School districts are excluded.

Spending Restrictions: Counties and municipalities would be limited to spending ad valorem revenue on specific “core” purposes:

  • Public safety (law enforcement, fire, emergency medical services)
  • Education and public schools
  • Infrastructure (roads, bridges, stormwater)
  • Natural resource projects and flood control
  • Debt service on related bonds
  • Retirement benefits for local employees
  • Operations and administration as established under the Constitution or general law

Uniform Procedures and Local Flexibility: The Legislature must prescribe a uniform procedure for counties, municipalities, and school districts to increase exemption amounts. Special districts could increase exemptions via referendum, with inflation indexing.

The proposal builds on Florida’s existing “Save Our Homes” cap, which limits annual assessment increases on homesteads to 3% or CPI, whichever is lower, and the current homestead exemption of roughly $50,000 total.

Fiscal and Economic Impacts

House staff analysis projects substantial revenue losses for local governments: potentially more than $4.6 billion in non-school taxes in FY 2027-28, growing to more than $8.4 billion in FY 2028-29. These figures exclude school taxes, which were protected in the final version.

Supporters, including Gov. DeSantis, note that local property tax collections have nearly doubled in recent years amid rising home values. The governor’s office says the $250,000 exemption could eliminate non-school property taxes for around 60% of homesteaded properties, though independent reviews suggest the figure may be closer to 28% depending on local millage rates and home values.

Local governments and opponents warn of budget shortfalls. County-level analyses project tens of millions in annual losses, potentially forcing cuts to services, higher fees, or shifting the burden to non-homestead properties. Renters would not directly benefit from the homestead exemption, though the lowered 5% cap aims to protect against rapid tax hikes on investment properties.

Legislative Context

The bill originated from Gov. DeSantis’ push during the special session for bolder relief. The final version was moderated to protect school funding. It faced partisan divides, with Democrats raising concerns about impacts on public safety, infrastructure, and equity for new residents and renters.

Linked legislation includes CS/HB 3F on property tax administration and an identical Senate measure.

What It Means for Voters

Homeowners could see significant savings, especially for lower- to mid-value homes in high-tax areas, with estimates of $1,500 to $1,800 or more annually in some South Florida counties.

Local services could face pressure as county and municipal budgets tighten outside protected spending categories, potentially leading to service reductions, efficiency reforms, or alternative revenue sources.

Market impacts could include shifts in property values, development patterns, and rental markets.

Long-term, the amendment opens the door for further legislative action on exemptions while embedding spending guardrails in the Constitution.

This amendment represents one of the most significant property tax policy shifts in Florida in decades. Voters will weigh taxpayer relief against risks to local funding stability.

Sources