Florida voters approved Amendment 3 on Tuesday, November 3, a reform that will allow thousands of homeowners to pay less in taxes on their primary residences starting in 2027. However, it could also impact the revenues of local governments and increase costs for some tenants.
The proposal received around 62% of the votes, exceeding the 60% required to amend the state constitution, according to preliminary results published by Creative Loafing Tampa, with 96% of the precincts counted.
The measure, promoted by Governor Ron DeSantis, significantly expands the tax exemption known as homestead, which reduces the value of the home on which certain taxes are calculated.
How much could homeowners in Miami-Dade save?
The reform will increase the exemption for non-school taxes from approximately $50,000 to $150,000 in 2027 and to $250,000 in 2028, with subsequent adjustments for inflation. Taxes allocated for schools will not be affected by this measure.
For families who own homes in Hialeah, Kendall, or Doral, the savings could be significant.
According to Axios, the property appraiser of Miami-Dade, Tomás Regalado, estimated that an annual bill of about $6,000 could be reduced to approximately $4,367 in 2027 and $3,289 in 2028, based on current tax rates.
According to estimates from their office, the average savings for eligible homeowners in the county would be around $1,700 in the first year and $2,700 in the second, although this will depend on the assessed value of each home and local tax rates.
New residents of Florida will not immediately receive the expanded benefit. Those who are not state residents by December 31, 2026, will have to wait until their fifth year of eligibility to access the greater exemption, although they can apply for the basic exemption once they meet the requirements.
What will happen to those who live in rented accommodations?
Tenants will not receive the tax reduction directly, as the exemption is reserved for primary residences occupied by their owners.
A study conducted by Jared Walczak of Walczak Policy Consulting, for several housing sector organizations, warns that rents could increase if local governments raise taxes on rental properties to make up for lost revenue.
However, the amendment also reduces the annual limit for the increase in the assessed fiscal value of properties that are not primary residences, including rental properties, from 10% to 5%. This limit does not prevent the tax bill from increasing if tax rates change.
The possible impact on tenants was one of the main points of debate during the campaign.
Less income for local governments
The reform also poses a challenge for public budgets. State economists estimate that local governments in Florida would lose approximately $4.9 billion in the fiscal year 2027-2028 and $8.7 billion in 2028-2029, assuming current tax rates remain in place.
In Miami-Dade, the county government estimates a revenue reduction of approximately 386 million dollars in the first year and 697 million in the second, resources used to fund services such as fire protection, transportation, libraries, and infrastructure maintenance.
During the campaign, several Cuban-American officials from Miami-Dade publicly supported the proposal, including Regalado himself and Sheriff Rosie Cordero-Stutz.
In contrast, police associations and authorities from other locations warned about the consequences that a decline in revenue could have for public safety.
Amendment 3 will come into effect on January 1, 2027, while local governments will need to adjust their budgets to the new tax provisions.
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