Florida Amendment 3: How New Tax Rules Could Reshape Property Ownership

The proposal, HJR 1F, requires 60% voter support to pass. If enacted, the non-school homestead exemption would climb from its current $50,000 to $150,000 in 2027, followed by a second increase to $250,000 the following year. Crucially, this exemption applies only to non-school levies—such as fire rescue and infrastructure—leaving school district taxes, which typically comprise up to 45% of a bill, unaffected.

For those moving to the Treasure Coast, timing is now a strategic factor. Buyers establishing residency after December 31, 2026, will face a five-year wait to claim the higher exemption, receiving only the base $50,000 amount initially. Scott Reynolds, founder of The Reynolds Team of Compass, notes that this creates a clear divide between current residents and newcomers. While existing homeowners retain their current protections, including the 3% Save Our Homes assessment cap and established portability rules, out-of-state buyers must now weigh the residency deadline against potential tax savings.

Fiscal analysts project the amendment could reduce statewide revenue by $8.4 billion by the second year, with local impacts in Indian River County estimated at roughly $50 million. Despite these cuts, taxing authorities maintain the power to adjust millage rates annually. Furthermore, non-ad valorem assessments—such as utility fees and special district bonds—remain unchanged, as they operate independently of property value exemptions.