Florida’s Proposed Property-Tax Amendment: Potential Savings and Trade-offs

It also caps annual assessment increases for rental, commercial and second-home properties at 5 % instead of the existing 10 % limit. The amendment does not eliminate property taxes, nor does it extend any exemption to renters. To become part of the Florida Constitution, it must receive approval from at least 60 % of voters on the November ballot.

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The Florida Revenue Estimating Conference, the legislature’s research arm, projects that the amendment would cut state and local property-tax revenue by roughly $11.8 billion each year. The average Florida home is valued at about $378,000 (median $395,000), generating just over $3,000 in annual property taxes. Homeowners who qualify for the expanded homestead exemption could see a noticeable reduction in their tax bills, while owners of non-homestead properties would face the new 5 % assessment cap but could still experience higher tax rates to offset the revenue loss.

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Current homeowners with a homestead exemption stand to benefit from lower taxes, whereas landlords, businesses, and owners of second homes would likely see their tax bills rise. A 1 % millage increase on a $15 million commercial property, for example, would add $150,000 to the owner’s annual tax liability. Because Florida lacks a state income tax, any shortfall in property-tax revenue would have to be compensated by local governments through higher millage rates on less-protected properties, new fees, or potentially higher sales and documentary-stamp taxes.

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Ben Albritton, the Florida Senate president, has argued that the amendment will shield small businesses from tax hikes, yet the ballot language does not guarantee such protection. The Florida Fire Chiefs’ Association has formally opposed the measure, warning that it could create substantial uncertainty for funding emergency-services operations. Local officials also note that essential services—police, fire, libraries, and parks—are largely funded by property taxes, and smaller counties with limited tax bases could face sharper cuts than larger jurisdictions.

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Supporters present the amendment as a way to lower homeownership costs while preserving funding for schools and core services. Critics contend that the projected $11.8 billion revenue loss will force higher taxes elsewhere or reductions in local services. Voters will decide whether the anticipated tax relief outweighs these trade-offs when the amendment appears on the November ballot.

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