FL’s Amendment 3: Will it lead to higher sales taxes, rent? Could local governments absorb the loss?
PolitiFact ·
Floridians have a lot to say about what Amendment 3 will or won’t do.
The ballot measure, which got 62% of the vote , will raise the threshold for taxing Florida’s primary residences, or homestead properties, to $150,000 in 2027 and to $250,000 in 2028. Property taxes that go to schools aren’t affected.
Florida economists estimate the amendment will cut $13.7 billion in local government revenue in its first two years and reduce local revenue by nearly $12 billion a year thereafter.
Online, there is excitement, and some panic. On election night, people warned the measure would raise sales taxes and drive up rents . Amendment 3 supporters said local governments can absorb the loss, citing the vast increase in Florida’s property tax revenue over the last several years.
All of these claims need context.
It could take local governments months to decide how to adjust their budgets and services. Some may pursue a mix of raising taxes, fees and imposing cuts to services such as public safety, parks and libraries. Others may have more room in their budgets and tax base that allows them to make less noticeable cuts.
The measure requires the Legislature to create a schedule that would continue raising the exemption, eventually eliminating all non-school property taxes on every primary home in the state.
Florida Republican Gov. Ron DeSantis, who supported Amendment 3 after proposing a steeper version, said he will call a special session to implement a “taxpayer bill of rights.”
DeSantis said lawmakers would set the schedule for further homestead exemption and limit local governments from “doing an end run around the amendment and taxing them in other ways.”
Experts were skeptical how DeSantis would exempt non-ad valorem taxes — flat fees that fund specific local services or infrastructure improvements that aren’t subject to exemptions — or prevent other kinds of fee shifts. PolitiFact reached out to the governor’s office for more details but did not receive a response.
Here’s how some claims about Amendment 3 stack up against what we know.
Social media users warned the measure would usher in higher sales taxes in Florida, some saying up to “15%.”
Experts said this is doubtful.
The state’s base sales tax rate is 6%. Local governments cannot unilaterally raise it to help cover budget shortfalls, but they have other tools.
Some cities and counties have added sales surtaxes, often ranging from 0.5% to 2%, which typically require voter support. There are state-imposed limits for high how they can go.
Instead, cities and counties are more likely to address revenue gaps by increasing local utility fees, service charges or millage rates , experts told us. The approach localities ultimately decide will depend on different factors, such as population density, tourism, existing businesses and other local conditions.
“I would anticipate increases in taxes for non-homesteaded properties, rentals, second homes, businesses and industrial properties,” said Abigail Hall, a University of Tampa economics professor. People may also see increases in tourism taxes, depending on the location, and for licenses and various fees, such as car registrations and filing fees, she said.
Some described Amendment 3 as a doomsday event, saying that renters will see their monthly payments skyrocket.
Analysts said it’s likely that rents will go up over time, but it’s hard to know by how much.
If local governments raise millage rates to try to make up the gap from the shrinking tax base, those higher rates will fall on commercial and non-homestead properties — including apartment complexes and single-family rental homes.
Although renters don’t directly pay a property tax bill, landlords typically pass increased property taxes to tenants in the form of higher rent.
The ballot amendment reduces the annual cap on non-school property tax increases for non-homesteaded properties, such as businesses and rental properties, from 10% to 5% to help shield them from market spikes: This limits how much these property values can be taxed each year, but it doesn’t apply to millage rates and other fees.
A September analysis — commissioned by the Florida Housing Coalition, Florida Apartment Association and Miami Homes for All, which opposed the amendment — found that if local governments raise property tax rates to make up for the lost revenue, annual taxes would increase by $406 on the average Florida apartment unit. Taxes would increase by $1,081 on single-family rental homes and $1,196 on owner-occupied properties that don’t qualify for a homestead exemption by 2028.
Some on social media also warned that “essential emergency workers will start losing their jobs.”
If a local government can’t find funding to replace property taxes, it’s possible that municipalities will cut jobs. PolitiFact didn’t hear back from different local governments about their plans. Some city and county officials drafted “what if” scenarios ahead of the amendment’s passage, but it could be months until they make decisions about raising a tax or user fee, such as for fire, trash or stormwater, or where to make cuts.
“You may have to go without services you are accustomed to or at a lower level,” said J. Edwin Benton, a University of South Florida professor of political science and public administration.
Some agencies and local governments preemptively slowed hiring in preparation, while others, such as the city of Hialeah , held emergency meetings after Amendment 3’s passage to discuss salary reductions and a hiring freeze.
Martin County Fire Chief Chad Cianciulli told county commissioners before the election that the amendment could lead to the department losing up to 116 firefighters over the next two fiscal years.
Polk County Sheriff Grady Judd, who starred in TV ads against the amendment, said Nov. 4 after its passage that he anticipates a hiring freeze.
Amendment 3 supporters counter that property taxes have surged in recent years and “municipalities are flush with cash.”
In 2025 , Florida’s schools, counties, cities and special districts took in about $59.1 billion in property tax revenue — a nearly 75% increase from 2019. Much of this has come from the post- pandemic real estate boom, which surged property values.
Although large cities with substantial commercial tax bases may have room for cuts in their budgets, hundreds of smaller municipalities and rural counties operate on tight margins where a drop in revenue can threaten core services.
There’s also the cost of government — from fire trucks to insurance — which has increased faster than inflation.
Experts said it’s going to look different everywhere, but the hit for rural areas could be disproportionate.
“Places that have more commercial properties and more tourism dollars have different potentials for making up the money,” Hall said. “In rural counties, sparsely populated and primarily residential areas, you are looking at a wiping out of a lot of their primary means of generating revenue.”
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