Florida homeowners could get a smaller property tax bill if Amendment 3 passes. But local governments would collect less money, potentially forcing difficult decisions about everyday services.
In Escambia County, resident Margaret Hofstetter wants commissioners to explain how they would prepare.
“I’m asking that you plan for the worst case scenarios, and this is the opportunity to do it,” Hofstetter told commissioners.
Amendment 3 would change Florida’s constitution to increase the homestead exemption for eligible homeowners.
The exemption is the portion of a home’s assessed value excluded from property tax calculations. Under the proposal, eligible homeowners who are permanent Florida residents by the end of this year would receive a $150,000 exemption in 2027. That would increase to $250,000 in 2028 and then grow with inflation.
That does not mean a homeowner would save $150,000 in taxes. The savings would depend on the home’s assessed value and local tax rates.
The changes would apply to taxes that support counties, cities and other local taxing districts, but not school taxes. The amendment would also slow increases in the assessed value of many rental and business properties for those local taxes.
Supporters say property owners need relief, and local governments should reduce wasteful spending.
At the Escambia commission meeting, Hofstetter questioned whether officials were preparing quickly enough if Amendment 3 passes.
“It’s like you’re rearranging the chairs on the deck of the Titanic,” Hofstetter said. “It’s going down.”
County Administrator Wes Moreno said departments already had little room to spare.
“Our departments are very lean,” Moreno said. “Most of your cost in the budget is going to be personnel. Your operational costs are not going to be very exorbitant at all.”
Moreno said he had asked every county department to identify ways to reduce its budget by 10%. He described that as a planning goal, not a decision to impose identical cuts across departments. Officials would still have to determine which reductions were realistic and how they would affect services, staffing, and projects in Escambia County.
The state’s Revenue Estimating Conference projects that, over fiscal years 2027-28 and 2028-29, Amendment 3 could reduce revenue by about $115 million in Escambia County, nearly $72 million in Santa Rosa County and about $70 million in Okaloosa County. That’s roughly $256 million across the three counties.
These figures represent revenue that would no longer be collected.
Property taxes help fund public safety, roads, libraries and parks. How governments respond would depend on future budget decisions. Okaloosa County said the effects on services, staffing and projects would depend on its county commission and notes that the amendment does not create recurring state funding to replace lost property tax revenue.
In Escambia, Hofstetter asked for a public workshop.
“How could you possibly accommodate such a drastic reduction?” Hofstetter said. “And that’s why you need a workshop where we can hear you talk about it so we can understand what is really being considered.”
Moreno said preparations had begun, with more substantial work expected next year.
“We’re doing some preparations now, but the heavy lift of that preparation would be this coming fiscal year,” Moreno said.
State analysts estimate the annual loss across Florida could eventually reach nearly $12 billion, though losses would be smaller in the first years.
Amendment 3 needs approval from at least 60% of voters casting a ballot on the measure to pass.
For homeowners, it offers possible tax relief. For local officials, it raises questions about how to maintain services with less revenue. Hofstetter wants these questions discussed publicly before voters decide in November.
