Florida Ballot: Amendment 3 Puts $45 Billion Tax Cut to Voters

Orlando-based nonprofit Florida Tax Watch released a resource center on Monday, the day before Florida voters decide on Amendment 3. The ballot measure, known as HJR 1F, proposes a massive reduction in local property taxes for homeowners. If approved, the amendment would cut $45.84 billion from local government revenue over the next five fiscal years.

The financial impact is not spread evenly across the state. Florida Tax Watch projects the tax reduction will grow annually as the exemption limits increase. In the fiscal year 2027-28, local governments would lose $4.93 billion in revenue. That figure rises to $8.71 billion in the fiscal year 2028-29 and reaches $9.65 billion in the fiscal year 2029-30. By the end of the fiscal year 2031-32, the annual loss would hit $11.83 billion.

The amendment changes how the homestead exemption works for non-school taxes. Current rules allow for two brackets of assessed value to be tax-exempt. Under HJR 1F, the exemption applies only to non-school taxes but increases the dollar amount significantly. In 2027, the first $150,000 of a home's assessed value would be exempt. By 2028, that limit jumps to the first $250,000. Starting in 2029, the exemption remains at $250,000 but is indexed to inflation.

The rules differ for new residents. Homeowners who are permanent residents of Florida before January 1, 2027, receive the full exemption immediately. Newcomers get a five-year homestead exemption first. After that period, they become eligible for the higher exemption tiers. The amendment also lowers the annual growth cap for non-homestead property assessments from 10% to 5%.

Critics argue that cutting property taxes hurts the funding available for core services. Local governments use this revenue to pay for police departments, libraries, fire services, and public schools. The proposal restricts how local governments can spend the remaining property tax revenue. Allowed uses include public safety, education, infrastructure, natural resource projects, and debt service payments. Local governments may also use funds to meet employee retirement obligations and cover administrative costs for county officers.

State lawmakers approved the amendment, but it requires 60% of the vote to pass. Voters will cast their ballots on Tuesday, November 3. The outcome will determine whether Florida homeowners receive the proposed tax relief or if local governments retain the current level of property tax revenue.

Florida Tax Watch’s resource center aims to help residents understand the potential impacts of the proposal. The organization provided the five-year revenue forecast and the specific exemption schedules for both existing and new residents.