A proposed expansion of Florida's homestead exemption could reduce property tax bills for homeowners, but there are concerns that renters may face higher costs if local governments increase tax rates to make up for lost revenue. According to a Florida Policy Institute analysis, Martin County could lose more than $67 million in tax revenue if voters approve the amendment in November. The same study projects that local governments across Florida could lose nearly $4.8 billion statewide.
Mike Readling, executive director of Habitat for Humanity of Martin County, reports a significant increase in people seeking assistance with rent and utilities, with 95 percent of those requests coming from renters. He emphasizes that the proposed tax cut would provide little benefit to the population his organization serves. "The demographic that we're working with and Habitat for Humanity tries to help, it's not going to help them at all," Readling said. Attorney John Tolley notes that local governments facing budget shortfalls would have limited options: reduce services, use reserve funds, or increase millage rates.
If millage rates increase, homeowners with the exemption would still benefit from the tax break, according to realtor Michael Caputo. However, landlords without the exemption could face higher tax bills and might pass those costs to renters. Caputo acknowledged that renters could be priced out of an already expensive rental market. A 2025 Florida Senate analysis found only 24 affordable and available rental units for every 100 extremely low-income renters in the state. The amendment also includes a provision that could offset some rental increases. It would lower the property tax cap on non-homesteaded properties, including commercial apartment complexes, from 10 percent to 5 percent. Tolley suggested this change could lead to lower rents. "The fact that you could have less taxes, you actually might see a trend where rents go down even further than they were before," Tolley said.
Caputo expressed skepticism that municipalities would raise millage rates significantly and believes the rental market may stabilize through supply and demand forces. He noted that landlords would try to pass on increased costs to tenants, but if that strategy fails, they would adjust their pricing accordingly. The outcome remains uncertain as voters prepare to make their decision on the amendment in November.