Florida property tax amendment could reduce state revenue by $5 billion

Florida voters will decide on a constitutional amendment in November that would significantly increase the homestead property tax exemption. Currently set at $50,000, the proposed amendment would raise the exemption to $150,000 in the first year and $250,000 in the second year.

If passed, the Tax Foundation indicates Florida would possess the largest property tax exemption in the United States. However, the Florida Office of Economic and Demographic Research estimates the change would reduce state property tax revenue by nearly $5 billion in the first year alone.

Local government officials are already expressing concerns regarding potential service cuts to offset the loss of revenue. Proposed measures to manage the budget shortfall include hiring freezes, reductions in travel and capital projects, and cuts to essential services such as EMS, fire response, parks, and beaches. Some discussions have even surfaced regarding the consolidation of police and fire services.