Guest Commentary | Insights on Amendment 3
The November ballot will offer an opportunity for voters to alter the future financial shape of Florida. Before we address Amendment 3, a note quickly on Amendment 1 and 2. Amendment 1 would permanently “Exempt agricultural-related tangible personal property, such as farm equipment or tools, from property taxes.” Amendment 2 would “Increase the amount of funds that may be retained in the budget stabilization fund from 10% to 25% of net general revenue among other changes.”.
But the amendment receiving all of the press is Amendment 3, which proposes several significant changes to the real property tax structure in Florida. It would increase the existing homestead exemption to $150,000 in 2027 and then $250,000 in 2028. It would require five years of residency in order to qualify for the increased homestead exemption amounts. It would lower the non-homestead assessment cap from 10% annually to 5%. And it would provide a defined list of government services that can be funded by property tax.
The potential benefits are fairly obvious, as the favored taxpayers would see their relative share of the property tax burden decreased and shifted to the unfavored taxpayers.
One major critique of the amendment is that none of the expanded benefits would apply to the property tax lines for public schools; these lines will simply become an ever-larger share of the property tax bill. Another is that the residency restriction is federally unconstitutional under Equal Protection provisions. And the largest critique is that the amendment provides no backstop preventing local governments from shifting the burden to non-ad valorem assessments, which are not subject to any exemptions (homestead, disabled, religious, etc.), thereby potentially resulting in some homestead property owners actually paying higher net property taxes once the second order effects of the changes are fully realized.
This column is too short to provide lengthy analysis of each provision; however, the Property Appraiser Association of Florida has developed an FAQ for those that wish to investigate further. It can be found HERE.
Regardless of the outcome of the vote in November, the subject of tax reform will not disappear. The constitutionally mandated Taxation and Budget Reform Commission (TBRC) is seated in January 2027 with a task of providing amendments for the 2028 ballot. Voters should expect to see plenty more debate in the near future. You can be sure that our office will be involved, sharing best practices and advocating for the taxpayers of Lee County.
Matt Caldwell is the Lee County Property Appraiser.