Florida property tax Amendment 3 could cut local taxes by $45 billion by 2032

Florida voters will decide on Amendment 3 this Tuesday, a proposal to provide a significant property tax cut for homeowners across the state, WKMG News 6 ClickOrlando reported.

The amendment would create a new homestead exemption applying only to non-school taxes, increasing the exempted amount for permanent Florida residents starting January 1, 2027, according to the nonprofit Florida Tax Watch.

New residents would receive a five-year homestead exemption with lower initial benefits before becoming eligible for the higher exemption after that period.

Florida Tax Watch estimates the amendment could reduce local property tax revenues by over $45 billion statewide by fiscal year 2032, with individual counties, including those in the Orlando area, facing substantial losses.

Critics warn that these tax cuts may significantly impact local government budgets, potentially affecting funding for essential services such as police departments and libraries.

The amendment also proposes to lower the annual non-homestead property assessment growth cap from 10% to 5%, further limiting tax revenue growth.

Voters in Orlando and across Florida will weigh the potential tax relief against the possible consequences for local services when casting their ballots.