Amendment 3 Passes. What's Next?

Florida voters approved Amendment 3 on November 3. One week later, our government team sat down with finance leaders from across the state to work through what it means for the next two budget cycles. The full roundtable is below.

What Changes, and When

Amendment 3 hits local budgets in two places: how much of a home’s value can be taxed, and how fast non-homestead assessments can grow.

• Homestead exemption. No change in 2026. The first $150,000 is exempt in 2027 and the first $250,000 in 2028. From 2029 the exemption is adjusted for inflation.

• Non-homestead assessment cap. Annual growth is capped at 5%, down from 10%. The homestead cap stays at 3%.

• Residency. Anyone who becomes a resident after January 1, 2027 must wait five years before receiving the higher exemption.

• Allowable uses. Property tax revenue is tied to core purposes: public safety, schools, infrastructure, flood control and natural resources, debt service, pensions, and county officers. It also covers spending approved by governing bodies, unless general law prohibits it.

The state estimates the eventual hit to local governments at about $12 billion in annual revenue.

Replace, Shift, Cut

Every local government’s response will be some mix of three moves.

Replace. Bring in new or expanded revenue from fees, grants and other local sources.

Shift. Pay for capital and one-time costs out of reserves instead of the operating budget, revisit expense allocations, and put idle cash to work. Tax shifts such as fire assessments or raising millage to the roll-up rate also fall here, and their political fallout is much harder to predict.

Cut. Adjust services, phase in spending and find savings where revenue can’t be replaced.

The right mix depends on your numbers, your reserves and how your community will react. In the recording, Zach, Brendan and Vince show how one municipality offset a real share of its property tax revenue without raising taxes or fees. They also lay out a four-step roadmap for the budget conversation and answer the questions finance leaders brought to the roundtable, from the potential December special session to whether to plan one year at a time. It’s an hour worth having before your next budget hearing.

Size Your Gap Before the Next Budget Cycle

How exposed your community is depends on its revenue mix, its reserves and how much its budget relies on assessment growth. Our government team can help you put a number on the gap and build the plan you’ll take to your board.