Q & A on Amendment 3
What is Amendment 3?
Amendment 3 proposes to change the Florida Constitution to “to revise the
limitation on annual assessment increases for specified real property, to
increase the homestead exemption, to provide a limitation on the use of ad
valorem taxes levied by counties and municipalities…”
When will it be on the ballot?
November 3 rd , General Election
Why a Florida Constitutional Amendment?
It takes a 60% vote to amend our Florida Constitution and once in place, it
is more difficult to change.
What are the main provisions of this Amendment?
It proposes major revisions to the property tax laws, homestead
exemptions and local government spending.
Homestead exemptions for non-school taxes will increase up to
$150,000 in 2027 and up to $250,000 in 2028. Future adjustments
are limited to the maximum of 3% or the percent change in the U.S.
City Average of the CPI. Future adjustments are indexed to inflation
beginning in 2029.
Portability of the Homestead Exemption remains in place if you had
an exemption for any time during the 3 years prior to changing your
residence. The legislation provides for a method to calculate the
amount.
New Florida residents after January 1, 2027, will have to wait five
years before qualifying for a homestead exemption.
A county may reduce the assessed value of any new construction or
reconstruction up to the value of the improvements if those
improvements are to house a parent or grandparent.
Residential real property (9 units or less) will have the assessment
cap lowered to 5% after January 1, 2027.
Non-Homestead Assessment Cap will decrease the annual
assessment growth cap for non-homestead properties (such as
commercial buildings and rental properties) from 10% to 5%,
excluding school district taxes.
“Ad valorem taxes levied by counties and municipalities
shall be used only to:
a. Provide for public safety, including law enforcement, fire
service, and emergency medical service;
b. Provide funding for education and public schools;
c. Finance or refinance infrastructure, including expenditures on
road and bridge construction and maintenance and stormwater
control;
d. Finance or refinance natural resource projects,
including flood control measures;”
e. Retirement benefits for public employees;
f. County offices such as Property Appraiser, Clerk of Courts,
Tax Collector, etc.
When does it go into effect?
January 1, 2027.
How many homes in Sewall’s Point have homestead
exemptions?
Approximately 70-75% of the homes in Sewall’s Point have
homestead exemptions.
What will be the impact on the finances of the town?
The first-year impact will be a loss of approximately $277,000 in revenue
with the amount increasing the second year.
Statewide, there will be a major initial impact to ad valorem taxes.