Florida voters have approved Amendment 3, which expands property tax relief. It passed with 62%, above the 60% threshold required. Real estate agent organizations are hoping for a boost to the housing market, while local governments such as Jacksonville are preparing budget adjustments.
The amendment raises the homestead exemption on non-school property taxes from $50,000 to $150,000 in 2027 and to $250,000 in 2028. It also lowers the annual cap on growth in the assessed value of non-homestead property from 10% to 5%. For some new residents, a five-year waiting period for the higher exemption is provided.
Florida Realtors welcomed the result and believe homes will become more affordable. Experts note, however, that prices, mortgage rates and insurance costs will also determine affordability. The amendment does not increase the housing supply, so its effect may come sooner for current homeowners than for people entering the market.
The provisions take effect in January, but homeowners will not see lower bills until November 2027. According to estimates from the Duval County property appraiser, the owner of a home worth $290,000 (the median) will save $1,632 in 2027 and $2,674 in 2028.
The other side of the equation is local government revenue. A legislative analysis estimates that in fiscal year 2027–28, local government revenue will fall by nearly $5 billion. In Jacksonville, the City Council auditor projects a loss of $200 million in the 2027–28 budget and $300 million in 2028–29. Property tax accounts for nearly 64 cents of every dollar of city revenue.
Mayor Donna Deegan said the city will present a balanced budget. City Council member Rory Diamond is already proposing to cut spending, freeze hiring and reduce incentives for private investment. The amendment does not take effect until next year. Details of Jacksonville’s 2027–28 budget are not yet known.
Source: Local 10, Florida Politics
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