Florida voters approve Amendment 3 to cut property taxes

Florida voters have approved Amendment 3, a constitutional measure designed to provide significant property tax relief. The amendment passed with 62 percent of the vote, exceeding the 60 percent threshold required for constitutional changes.

The measure primarily targets primary residences by tripling the homestead exemption to $150,000 next year, increasing to $250,000 the following year, with future hikes tied to inflation. Additionally, the amendment will halve the annual cap on assessed value increases for commercial properties and second homes, lowering the limit from 10 percent to 5 percent.

Economic analyses suggest substantial fiscal implications for local governments. The Florida Legislature estimates the cuts will cost local governments $4.6 billion in 2027, rising to nearly $12 billion by 2032. To offset these losses, some municipalities may raise millage rates or fees. There are also concerns regarding the commercial real estate sector, as landlords might increase rents to cover potential tax shifts, particularly for multifamily properties.