Florida Lawmakers Propose Constitutional Amendment on Property Tax Exemptions

Florida Voters to Decide on Major Homestead Exemption Increase

The Florida Legislature has advanced a proposed constitutional amendment that would significantly increase the state's homestead property tax exemption, placing the measure before voters in the November election. The proposal has sparked debate over its potential impact on local government revenues and public services.

"The amendment requires approval from at least 60% of voters in November to take effect."

Proposed Changes

The amendment, approved by the Florida Senate on a 30-9 vote and the House on a 75-26 vote, would gradually increase the homestead exemption from its current $50,000. Under the plan, the exemption would rise to $150,000 in 2027 and to $250,000 in 2028.

Key provisions include:

• The expanded exemption does not apply to school district property tax levies.
• The cap on annual assessment increases for non-homestead properties would decrease from 10% to 5%.
• First-time homeowners purchasing after January 1, 2027, would need to reside in Florida for up to five years before qualifying for the increased exemption.

Financial Estimates

According to an analysis by the Florida House of Representatives, the proposal would result in:

• An initial annual reduction of approximately $4.6 billion in revenue for non-school local governments.
• Growth to approximately $8.4 billion in annual revenue reductions over time.
• Projected losses of over $8 billion in local government revenue in fiscal year 2027-28, including $3.4 billion in school taxes and $4.6 billion in non-school taxes, potentially exceeding $14 billion in fiscal year 2028-29.

The Florida Policy Institute estimates that increasing the exemption to $250,000 would cost school districts an average of $5 billion annually and counties $4.8 billion annually.

"Approximately 28% of homestead properties have a market value of $250,000 or below, while about 76% are valued at $500,000 or below."
— Analysis by WLRN radio and PolitiFact

Government and Official Reactions

Supporting Arguments:

• Proponents state the measure provides homeowners relief from increasing property tax bills and allows voters to decide on local government revenue levels.

Opposing Arguments:

• Local government officials and some lawmakers have expressed concerns about reduced property tax revenue. Gainesville Commissioner Bryan Eastman stated the proposal would cut about 35% of the tax base funding the Alachua County Sheriff's Office.
• Miami-Dade Mayor Daniella Levine-Cava called for a balanced approach and sent a letter to legislative leaders highlighting potential service cuts, including libraries, bus routes, road maintenance, parks, and emergency services.
• Boca Raton Mayor Andy Thomson described the proposal as "a war on local governments."
• The city of Parkland estimates a loss of $27 million in revenue, leaving $5.4 million for operations.
• Opponents warn the measure could force cities and counties to cut services or shift costs to businesses, renters, and owners of non-homesteaded properties.
• Representative Allison Tant expressed concerns about loss of local autonomy and potential cuts to public safety.

Legislative Amendments Rejected

Democrats attempted but failed to amend the bill to:

• Allow water management districts to use property tax revenue.
• Use state funds to compensate for lost revenue for senior programs and services.
• Prohibit public funds from being used to advertise the ballot initiative.

Next Steps

Lawmakers are considering property tax reforms during a special legislative session that began on Monday. The constitutional amendment will appear on the November ballot, requiring a 60% supermajority of voter approval to take effect.

Governor Ron DeSantis has proposed using $5.5 million in taxpayer funds for mailers to inform property owners about potential savings, a move criticized by former Republican lawmaker Jeff Brandes as an attempt to pressure voters and lawmakers.

Counties where homestead property-tax revenue constitutes the highest share of total county revenue include: