Florida voters cut property tax limits

Florida voters cleared the 60% supermajority threshold required to pass Amendment 3 on Tuesday. The measure overhauls the state constitution's tax structure, expanding exemptions for primary residences while halving allowable yearly assessment increases for business sites, second homes, and rental properties.

Under the new rules, primary homeowners retain the existing $25,000 school-tax deduction. The non-school homestead exemption, previously roughly $51,411, will increase in phases. On Jan. 1, 2027, that threshold jumps to $150,000. It expands further to $250,000 on Jan. 1, 2028, before shifting to automatic annual inflation adjustments beginning in 2029.

Commercial real estate faces stricter limits starting Jan. 1, 2027. Annual assessment increase caps for non-homestead properties drop from 10% to 5%. This lower cap applies to commercial sites, second homes, and residential rental properties. The change aims to shield businesses from abrupt market spikes.

Supporters argued the amendment grants relief to families dealing with climbing home values and cost-of-living pressures. Opponents, including city and county officials, warned the resulting revenue loss could reach tens of billions of dollars over five years. Municipal leaders cautioned that the shortfall could force local governments to trim public services or raise millage rates. The Florida Department of State provided the data for this story.