A Florida Housing Coalition report released this week estimates that Amendment 3, which would expand the homestead exemption for property owners, could increase annual property taxes by an average of $406 per apartment and $1,081 per single-family rental home in 2028 if local governments raise tax rates to replace lost revenue. Amendment 3 would increase the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029. The exemption reduces the property value on which taxes are calculated for qualifying primary residences, but rental properties do not qualify for the homestead exemption.
Much of the additional tax expense on rental properties could ultimately be passed on to tenants through higher rents, according to Jared Walczak, the tax-policy analyst who wrote the report. "Renters pay taxes, they just don't write the check," Walczak said. "While landlords would write the check, most of the burden would ultimately be borne by renters in the form of higher rent."
The report models what would happen if local governments facing lost revenue respond by increasing property-tax rates to replace that revenue, subject to existing limits on those rates. By 2031, the additional annual property-tax burden would reach $544 per apartment and $1,471 per single-family rental home under the same approach, the report estimates. How much of that cost reaches tenants would depend on rental-market conditions and local budget decisions.
The amendment also includes a provision benefiting rental and other non-homestead properties by lowering the annual cap on increases in assessed value from 10% to 5%. Walczak's report concludes that the benefit of the lower assessment cap would be outweighed by the modeled tax shift. Supporters, including Florida Realtors, argue that homeowners also need help with housing costs. "Everywhere you look, people are feeling the pinch of affordability, and Amendment 3 has the opportunity to return more money back to the taxpayer," said Margy Grant of Florida Realtors.
The potential loss of local revenue has drawn opposition from the Florida Sheriffs Association, which warns the amendment could squeeze funding for deputies and other public-safety needs. Miami-Dade Sheriff Rosie Cordero-Stutz pushed back against those warnings in a statement posted on X. "Tax relief and public safety are not competing priorities," she said, urging government agencies to examine their spending and eliminate unnecessary costs while protecting essential law-enforcement resources.
Gov. Ron DeSantis supports Amendment 3 and says future lawmakers will pursue targeted state grants to help maintain essential services. "We will ensure that essential services continue, but we also recognize taxpayers need a break," DeSantis said. The proposed constitutional amendment needs at least 60% of the votes cast on it to pass in November.