Amendment 1

Budget Stabilization Fund

Placed By
2025 Florida Legislature, House Joint Resolution 5019

Amending
Amends Article III, Section 19 (g)

Ballot Summary
“Proposing an amendment to the State Constitution to increase the amount of funds that may be retained in the budget stabilization fund from 10% to 25% of general revenue collections, require the legislature to transfer the lesser of $750 million or the amount required to reach 25% of the general revenue collections each year unless certain conditions are met, and allow the legislature to withdraw funds for critical state needs.”

The Arguments

Supporters:

HJR 5019 received bi-partisan support, passing by a 100-1 vote in the House and 29-4 in the Senate. Supporters note that putting more money in reserves shows fiscal discipline and would better protect the state from hurricanes and other emergencies. In case of a budget shortfall, larger reserves can help avoid drastic cuts in services and raising taxes. Senate President Ben Albritton said that the amendment “makes Florida’s balance sheet more durable in difficult times, and we’re setting more money aside to have its rainy-day reserves if things get difficult.”¹ House Speaker Daniel Perez said it would make Florida better prepared for a recession.² It has also been noted that credit rating agencies like large reserves, and a higher credit rating can reduce bonding costs for the state.

There are no formal campaigns in support of Amendment 1.

Opponents:

During legislative debate and public comment, opponents focused on how the $750 million annual transfer to the BSF would tie future legislators’ hands and limit flexibility in addressing unforeseen needs. They also point to Florida’s already large reserves and argue that the state has plenty of unmet needs that would be a better use of the money. House Democratic Leader Fentrice Driskell said, “you don’t get to talk about saving money for a rainy day when it’s still raining, and it’s already raining on the people in Florida.”³ Public comment included “when we consider this joint resolution in the midst of this budgeting process that we are in, it seems that what we value is putting money into an account that may or may never be used as opposed to funding kids having access to healthcare, or education, or teacher salaries.”⁴ There are no formal campaigns in opposition to Amendment 1.

Analysis

Budget Stabilization Fund

The Budget Stabilization Fund (BSF)⁵ , sometimes called the Rainy Day Fund, was created in 1992 to provide a dedicated reserve fund in case of budget shortfalls or emergencies. It was part of a large budget reform package that was put on the ballot by the Taxation and Budget Reform Commission. The amendment was approved by 82.7 percent of those voting. First funded in FY1994-95, the Legislature was required to increase the BSF balance to at least five percent of the last completed fiscal year’s net revenue collections for the General Revenue Fund by FY 1998-99. The BSF cannot exceed a maximum balance of ten percent of the last completed fiscal year’s net revenue collections.

The current balance of the BSF is $5.056 billion, or 9.75 percent of last year’s GR collections, the highest it has ever been. Funds may only be withdrawn from the BSF to cover deficits⁶ in the General Revenue Fund or to provide funding for an emergency.⁷ Any withdrawal from the BSF must be repaid with five equal annual transfers from the General Revenue Fund, beginning in the third fiscal year following the withdrawal. The Legislature may change the restoration schedule by law at any time.

FY2008-09 has been the only year with a net withdrawal from the BSF. To deal with a decline in revenue due to the Great Recession, the Legislature withdrew $1.078 billion, bringing the balance down to one percent of the prior year’s GR collections, the lowest since the fund’s inception. The BSF was not accessed during the Covid-19 pandemic or during the 2001 recession. In fact, the balance was at the maximum 5.0 percent when those two events occurred and stayed there.

Since the BSF balance first reached 5.0 percent in FY1998-99, the Legislature has generally transferred the amount needed to maintain the maximum 5.0 percent balance, with the exception of the withdrawal in FY2008-09 and the subsequent years of the fund’s restoration. Beginning in 2021, helped by Covid-related federal aid, rapidly rising revenue collections, and $1.1 billion in transfers from the Lawton Chiles Endowment—which the Legislature dissolved—more revenue began pouring into the BSF. The Legislature added $3.2 billion to the BSF from FY2021-22 and FY2025-26. The 2026 Legislature added $118 million to bring the balance to $5.056 billion, planning to reach the 10 percent maximum balance.⁸ The Legislature also tried to start the transfer of $750 million annually, contingent on the amendment passing, in the last two budgets.

Governor DeSantis vetoed both transfers.

Other Reserves

The BSF is not the only state revenue reserves Florida has. There is also the Emergency Preparedness and Response Fund (EPRF), created in 2022 to allow quick response to disasters. The Governor could use that money in an emergency without Legislature approval. The fund was recreated in 2026 with some added legislative involvement and oversight. It currently has a balance of $250 million. Both the BSF and the EPRF pale in comparison to the balance in cash reserves, known as the working capital fund or unobligated GR. This is the money in the General Revenue Fund that exceeds the amount needed to fund the current budget. Any money remaining in the GR Fund at the end of the fiscal year stays there and is available for the next Legislature. Florida has been carrying forward huge end-of-year cash reserves ever since the pandemic, peaking at $22.8 billion in FY2021- 22. Based on the recent new revenue estimates and accounting for all the GR appropriations and scheduled transfers and distributions in the new FY2026-27 state budget, Florida now has estimated unobligated GR reserves of $11.045 billion.

To recap, Florida’s current GR reserves are:

• The Budget Stabilization Fund $5.056 billion
• The Emergency Response & Preparedness Fund $0.250 billion
• Unobligated GR (cash reserves) $11.045 billion
• Total GR Reserves $16.351 billion

This amounts to 31.5 percent of last year’s GR collections. While noting that an adequate general fund reserve should take into account a government’s unique circumstances, the Government Finance Officers Association (GFOA) recommends, at a minimum, governments regardless of size maintain unrestricted general fund balances (including contingency reserves) of no less than two months (16.7 percent) of operating revenues or expenditures. Florida reserves are approaching double that standard.⁹ The Pew Charitable Trusts also reports that in 2025, Florida has sufficient reserves to run the government for 125 days (34.2 percent), well above the median for all states of 91.6 days (25.1 percent).¹⁰ Florida’s BSF was growing despite Pew’s findings that, on average, state rainy day funds were declining.

What is Florida’s State Fiscal Outlook?

Each September, the Legislature produces the Long-Range Financial Outlook.¹¹ Required by the Florida Constitution,¹² the Outlook compares spending and revenue projections over the next three years and estimates budget surpluses or deficits in each year. The idea is to alert the Legislature to potential future budget difficulty. The 2025 Outlook forecasted a surplus in FY2026-27 (the current budget year), but deficits of $1.5 billion the following year and $6.6 billion in FY 2028-29.

Projections of upcoming deficits by the Outlook are common, but the Legislature takes measures to at least postpone them. This year was no different. Helped by $4

billion more than anticipated carried forward from last year, revenue beating projections, and the 2026 Legislature providing much less tax relief than in recent years, the state is projected to have $11.0 billion in unobligated GR at the end of this fiscal year. This should be more than enough to balance the next budget. This is despite the net effective appropriations made by the Legislature slightly exceeding the amount projected in the Outlook.¹³ The newly released Outlook for FY2027-28 through FY2029-30 paints a rosier picture, but a budget shortfall is forecast for FY2029-30. After projected surpluses of $7.1 billion and $3.4 billion in the first two years, a shortfall of $1.0 billion follows in Year 3.¹⁴

How Many $750 Million Deposits Would It Take to Reach the 25 Percent Target?

Legislators generally do not want to overcommit future legislatures, and $750 million is a big commitment. If Amendment 1 passes, how long before the BSF hits the 25 percent balance? The current balance in the BSF is $5.058 billion (9.75 percent). Assuming the first transfer will be made by the 2027 Legislature, using the latest revenue estimates through FY2031-32, followed by a modest, estimated growth rate of 2.4 percent annually after that, the balance would not reach 25 percent of the previous year’s GR collections until 2049—22 years and $16.4 billion later.

The BSF would then have a balance of $21.5 billion.¹⁵ If annual GR growth of 3.0 percent is assumed, which is less than the 3.4 percent average annual growth rate over the last 20 years, the BSF would never reach the 25 percent maximum balance by adding $750 million every year. The balance would reach 23.1 percent in 2052, but the continued addition of $750 million would not keep pace with GR collection growth, and the percentage would begin to decrease.¹⁶ These estimates assume no money is withdrawn from the BSF and GR collections grow at a steady, modest rate. Of course, the next 20 years may have something entirely different in store for Florida’s fiscal future. The Legislature could also add more than $750 million to the BSF to reach the 25 percent threshold sooner. But it is apparent that the annual $750 million transfer in Amendment 1 would be a very long commitment.

Fiscal Impact

The amendment requires the Legislature to transfer $750 million annually from the General Revenue Fund to the Budget Stabilization Fund (BSF), until the BSF balance reaches 25 percent of the previous year’s GR collections. Reaching this threshold could take a very long time, and conceivably it might never be attained without additional transfers to the BSF or a significant drop in revenue (see above).

Conclusion

Not spending all the money a government has available and putting some of it aside for a rainy day is almost always a good idea. It shows fiscal discipline and protects taxpayers from having to increase taxes or cut services in case of a budget shortfall or a disaster like a hurricane. There is increasing uncertainty and volatility in the world, and economic disruptions and severe weather can be expected. When it comes to reserves, the Florida Legislature has been a good steward of the taxpayers’ money. The state’s current total GR reserves of $16.4 billion, including $5.056 billion in the BSF, are more than adequate and much better than most other states. The current BSF has only been used once since it was first funded in FY1993-94. Florida also survived the 2001 recession and the pandemic without having to access the BSF.

Florida TaxWatch concludes that the Budget Stabilization Fund’s current maximum balance of ten percent of the prior year’s general revenue collections should be increased. If Amendment 1 does not pass, Florida TaxWatch may recommend that the Legislature or the Taxation and Budget Reform Commission do just that. However, mandating that $750 million be added to the fund every year, for what could be a very long time, is a concern. If Florida has enough tax revenue to add billions of dollars to already robust reserves, perhaps more should be returned to the taxpayer. On the other hand, if a serious recession or other economic downturn occurs, reserves can protect taxpayers from tax increases when they can least afford it. In the end, it is hard to turn down a legislature offering to save more money.

It is a very tough call, but for these reasons…

Amendment 2

Exemption of Tangible Personal Property on Agricultural Land from Taxation

Placed By
2025 Florida Legislature, House Joint Resolution 1215

Amending
Creates a new paragraph (h) to Article VII, Section 3, and amends Article XII.

Ballot Summary
“Proposing an amendment to the State Constitution to exempt tangible personal property habitually located or typically present on land classified as agricultural, used in the production of agricultural products or for agritourism activities, and owned by the landowner or leaseholder of the agricultural land from ad valorem taxation. If approved this amendment would first apply for tax years beginning January 1, 2027.” Exemption of Tangible Personal Property on Agricultural Land from Taxation

The Arguments

Supporters

The House joint resolution received wide bi-partisan support from the Florida Legislature, passing the House by a 110 to 1 vote and clearing the Senate unanimously. The House sponsor: “Farmers are the lifeblood of our State and removing barriers to their survival and therefore our own is essential to making sure we have a safe and secure food supply. The Tangible Personal Property tax literally handicaps a struggling sector of our society that we so desperately rely on. Getting rid of it allows Farmers and Ranchers the chance to reinvest their money in themselves in order to insure we all have a better tomorrow.”¹⁷ Florida Commissioner of Agriculture Wilton Simpson said “Food security is a national security issue, and this proposed constitutional amendment represents a pivotal step towards securing the permanent future of agriculture in Florida. By eliminating the burdensome multiple taxation of agricultural production, we can pave the way for sustained growth and resilience within our agricultural sector, strengthen and secure our food supply chain, support our hardworking farmers, and safeguard our state and nation’s well-being.”¹⁸ The Florida Farm Bureau says: “After years of advocacy, we are thrilled that the Legislature approved this key measure. The joint resolution paves the way for a 2026 ballot initiative that would exempt agricultural equipment from the burdensome tangible personal property (TPP) tax.”¹⁹

Opponents

The lone vote in opposition to HJR 1215 was cast by Rep. Anna Eskamani, whose “Explanation of Vote,” reads “According to the REC²⁰, this bill would have a $30 million fiscal impact for local governments, with no guardrails to prevent windfalls. It would also mostly benefit a handful of giant agribusinesses with multiple TPP accounts. There could be a more targeted approach to support smaller business owners and farmers, but this approach is not targeted enough to earn my support.”²¹ Rep. Eskamani later said, “really, what’s going to happen is that you’ll see large actors tap into this tax break multiple times to again give an unfair advantage to big guys over small guys.”²²

Analysis

Tangible Personal Property Tax

The ad valorem taxation of tangible personal property (TPP) in Florida raises approximately $3.2 billion²³ for counties, cities, schools and special districts. It is a relatively small, and shrinking, part of Florida’s $59 billion property tax system, but it plays an important role in many local governments’ financial structure, especially small, rural counties where TPP can comprise a significant portion of the tax roll.

A general definition of personal property is property that is not attached to the land and can therefore be moved from place to place. Florida has exempted household goods, inventory, and intangible personal property such as stocks and bonds.²⁴ As a result, the property tax on TPP is only paid by businesses on items such as machinery, equipment, furniture, computers, tools, supplies, etc.

TPP taxes are ad valorem (property) taxes levied annually by local governments and school districts based on its value as of January 1 of each year. TPP is taxed with the same millage rates that apply to real property. Unlike real property, TPP taxpayers have to file a return with their property appraiser that details all personal property they possess, including leased, loaned and rented equipment. A single return must be filed for each site in the county where the owner of the TPP transacts business. All TPP taxpayers currently receive a $25,000 exemption and those with TPP valued below that amount do not have to file a return or pay taxes.

Florida TaxWatch has researched tangible personal property taxes for years and has concluded that the tax is costly for Florida businesses to comply with and for government to administer, that there is a lack of uniformity to its application, and that the current system allows for significant tax avoidance. And perhaps most importantly, there is a perception that the tax stands as an impediment to capital formation and job creation in our state.²⁵ The Tax Foundation agrees. “Florida’s tangible personal property tax is an arcane business tax that is levied yearly on personal property ranging from office supplies to machinery. Taxes like these distort business activity, as they create a disincentive for businesses to buy efficiency-enhancing machinery, and the compliance costs of filling out all forms required to properly account for and depreciate mundane objects like desk chairs and computers is unnecessarily complex.²⁶ Fourteen states do not tax tangible personal property²⁷, and several more provide partial or total exemption from agricultural TPP, such as Colorado, Kentucky, Ohio, and Virginia.

Agricultural Taxation in Florida

Florida already provides several tax advantages to agriculture. For other real property, property appraisers are legally required to consider a property’s “highest and best use” when determining its “just value” (market value) for tax purposes. Accordingly, properties classified as bona fide agricultural operations are allowed to be taxed according to the “use” value of the agricultural operation, rather than the developmental value. Generally, tax assessments for qualifying lands are lower than tax assessments for other uses.²⁸ Statewide agricultural land is assessed at 16.1 percent of just value, compared to 81.3 percent for all other properties.

The Legislature has also enacted many agricultural sales tax exemptions. This includes electricity used in packaging and processing agricultural commodities, power farm and irrigation equipment, fencing, farm trailers, fertilizers, insecticides, herbicides, animal health products, feed, fuel, generators, cattle growth enhancers, nursery stock, seeds, seedlings, stakes, topsoil, sand and more.²⁹

Fiscal Impact

If Amendment 2 is approved by the voters, it is estimated that the agricultural property owners will save, and local governments and schools will lose, more than $30 million annually ($31.0 million in FY 2027-28, $32.3 in the second year, and $33.6 in the third year.)³⁰ This will be a minimal impact on larger counties, but the impact may be felt to a higher degree in smaller, rural counties. This is especially true if Amendment 3 (see next section) is also approved by voters.

If it is determined that some counties are disproportionately impacted, the Legislature could easily reimburse fiscally constrained counties for lost revenue, as it does for revenue lost from increasing the TPP exemption from $5,000 to $25,000 back in 2008 and other constitutional property tax relief measures.

Conclusion

Agriculture is very important to Florida. It is the state’s second largest industry, following tourism. More than 45,000 farms and ranches support 2.5 million jobs and have a $387 billion total economic impact on Florida’s economy.³¹ The Florida Legislature has decided that it is important to assist the industry, evidenced by the many agricultural sales tax exemptions and other legislation, such as the 2026 Florida Farm Bill (SB 290), it has enacted.

Florida TaxWatch research has shown that this tax on tangible personal property (TPP) is burdensome to comply with and has other negative attributes that make tangible personal property taxes a good candidate for reduction or repeal. We have recommended, and continue to recommend, that the standard $25,000 exemption be increased and that the Legislature be given more flexibility in reducing the TPP tax. The goal should be total repeal of the tax, with safeguards for the counties that have property tax bases that rely heavily on TPP. Amendment 2 is another way of chipping away at this onerous tax.

Florida TaxWatch continues to have concerns about exemptions granted to only some property taxpayers, which puts upward pressure on millage rates, thereby shifting tax burden to others; however, the relatively minor fiscal impact of this amendment should not substantially increase the inequities caused by Florida’s property tax system. For these reasons…

Amendment 3

Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments

Placed By
2026 Florida Legislature, HJR 1F

Amending
Article VII, Sections 4, 6, and 9; Article XII

Ballot Summary
“This amendment increases the homestead exemption, for all non-school taxes, to $150,000 in 2027 and $250,000 in 2028, and adjusts for inflation thereafter. It requires the Legislature to prescribe a uniform procedure for counties and municipalities, for their respective levies, to increase the homestead exemption up to full assessed value, and allows special districts, subject to referendum approval, to do the same. Persons who are not Florida residents on December 31, 2026, will receive the existing homestead exemption upon qualifying for a homestead exemption, with the increased homestead exemption beginning with the fifth year of exemption, to the extent permitted by the U.S. Constitution. This amendment reduces the annual cap on assessment increases for non-homestead properties from 10% to 5%. This amendment requires counties and municipalities to use property taxes solely for public safety, education and schools, infrastructure, natural resources, bond debt service, retirement benefits for employees, and operations and administration. Other expenditures may be approved by county officers or county or municipal governing bodies unless prohibited by general law, notwithstanding Article VII, Section 9(a) of the Florida Constitution, which allows counties and municipalities to levy property taxes for their respective purposes. This amendment takes effect January 1, 2027.”

The Arguments

Supporters

The supporters’ main contention is that this is needed to stem the rapid rise of property taxes in Florida and that Florida families need tax relief. They say local government spending is out of control, especially on things that are not core services, and this will force them to cut unnecessary spending. Some say there is enough waste to avoid significant cuts to services. Governor DeSantis and others have said that homeowners should not have to pay “rent” to the government for something they own.

The Florida Realtors have come out in support of A3. “Florida Realtors supports Amendment 3 because it offers voters an opportunity to provide meaningful property tax relief while strengthening Florida’s commitment to attainable homeownership.”³²

Opponents

Opponents focus on the large fiscal impact to local governments, saying it will require extensive budget cuts to essential services like police and fire protection. They say the amendment has no assistance for local governments facing these deep cuts. Others say that property tax exemptions are not tax cuts as much as they are tax shifts, increasing the burden on non-homestead properties, and hurting renters and small businesses.

They also say it will require new or increased taxes to fund services the people need and expect. Another concern voiced by many is how hastily this proposed amendment was put on the ballot, as it was passed by the Legislature a week after it first surfaced. The ballot summary was criticized for being misleading, a judge agreed and the summary had to be rewritten.

Several organizations have opposed or raised significant concerns with Amendment 3. These include Florida State Fraternal Order of Police, Florida Sheriffs Associations, Florida Professional Firefighters, Florida Association of Counties, Florida League of Cities, 1000 Friends of Florida, and the Florida Policy Institute.³³

Analysis

Property Taxes in Brief

The terms “ad valorem tax” and “property tax” are often used interchangeably. Ad valorem taxes are annual taxes levied by counties, municipalities, school districts, and certain special districts. These taxes are based on the just value (fair market value) of property as determined by county property appraisers on January 1 of each year. Increases in homestead property assessed values are limited by the Save Our Homes (SOH) amendment to the lesser of inflation or three percent. Non-homestead property assessment increases are limited to ten percent.

Statewide, property taxes are the largest revenue source for city and county general funds and can be used for any valid public purpose. While a very important revenue source, reliance on property taxes varies considerably among local governments. Common services funded by property taxes include law enforcement, fire protection, emergency management, road maintenance, parks and recreation and public health. Property tax levies have been rising rapidly in Florida, increasing by nearly 40 percent in just the last three years and more than doubling in the last ten years.

Property taxes now total $59.2 billion (FY2025-26).³⁴ This rise is nearly twice as fast as the combined growth of population and inflation. Spending by some county and municipal governments is also surging.³⁵

The Homestead Exemption

A homestead is the permanent, primary home owned by a Florida resident. Rental residences, second homes, and part-year residences do not qualify for the Homestead exemption. There are two homestead exemptions.³⁶ The original homestead exemption exempts the first $25,000 of the home’s assessed value (applies to all tax levies, including school districts). In 2008, Florida voters approved a second $25,000 homestead exemption that exempts the appraised value between $50,000 and $75,000 (this exemption does not apply to taxes levied by the school district). In 2024, voters approved Amendment 5 to increase the second homestead annually by inflation. This has been adjusted twice, and the exemption is $26,411 in 2026, bringing the total homestead exemption to $51,411. Deducting exemptions from assessed value determines the taxable value upon which property tax rates (millage rates) apply. Each year, all local governing boards calculate millage rates to generate the property tax revenue contemplated in their annual budgets. It is the millage rates governments adopt that ultimately determine someone’s tax bill.

How Would Amendment 3 Impact Taxpayers and Local Governments? Is There a Tax Shift?

This proposal would save homestead property taxpayers—and cost counties, cities, and special districts—tens of billions of dollars over the first five years, as long as local governments do not increase millage rates or raise other taxes and fees. There is nothing in the amendment that prevents or limits increasing revenue or spending. Hopefully, cost savings and cutting unnecessary spending would be part of all local governments’ responses to Amendment 3, should it pass; however, this is not guaranteed.

This raises one of the big concerns with Amendment 3. Property tax exemptions and assessment caps that benefit only some properties are not really tax cuts as much as tax shifts. Florida TaxWatch research has often highlighted the inequities Florida’s property tax system creates. The system favors long-term homestead property at the expense of non-homestead property

(e.g., renters, businesses, second homes), homesteaders that renovate or build an addition to their home, people moving to Florida, and first-time homeowners³⁷. History has shown that despite the many property tax relief measures that have been passed in Florida, total property taxes collected in the state do not decrease. The only time (at least for the last 50 years) that property taxes fell year-over-year was from FY2007-08 to FY2012-13,³⁸ when the sub-prime mortgage crisis and the bursting of the housing bubble led to the Great Recession, which in turn led to significant drops in property values. Tax relief has not resulted in reduced total local government revenue or the total property taxes paid by all Floridians.

The reason total property tax revenue does not decrease is the millage rates adopted by local governments to be applied to rising property values. In recent years, local governments have not often increased their millage rates. This is because they do not have to. Over the last ten years, taxable values grew by 131.5 percent. So, even though the average statewide millage rate has been reduced by 10.9 percent, tax levies have more than doubled (108.1 percent). This is due in part to Florida’s rapid growth, but it is also because property values experience sizable increases almost every year, and local governments seldom adopt the “rolled-back rate,”

which is the rate that would raise the same amount of property tax revenue as the prior year when applied to the taxable value of the new tax roll, minus new construction.³⁹ Florida’s Truth in Millage (TRIM) law⁴⁰ considers any millage rate higher than the rolled-back rate to be a tax increase and requires local governments to advertise it as one. An average of five counties, out of 67, have adopted the rolled-back (or lower) millage rate over the last five years.⁴¹ That means an average of 62 counties adopted a tax increase.

Other Considerations

• The reduction in the non-homestead assessment cap from ten percent to five percent may help to slightly mitigate the tax shift to non-homestead properties, but it will not result in reduction in property taxes for those properties that have borne the brunt of the rapid statewide increase in property taxes. The current ten percent cap is inadequate, and Florida TaxWatch has recommended equalizing it with the Save our Homes cap of the lesser of three percent or inflation.
• The original intent was to mandate that property taxes could only be used for “core” services such as public safety, education, infrastructure, and natural resources. More services were added and the final resolution includes “the expenditures approved by such county officers or county or municipal governing bodies” unless prohibited by law. That really does not restrict anything.
• The amendment gives local governments no direction or assistance with avoiding budget deficits due to reduced revenue. The Governor’s original proposal included a trust fund to help provide grants to local governments to assist with the continuation of core local services. There is also no assistance for fiscally constrained counties that have limited capacity to raise revenue. The state annually reimburses these counties for lost revenue from past property tax constitutional amendments, including the last increase in the homestead exemption. The Governor says he expects the Legislature will create one when it drafts an implementing bill⁴², but that is not certain.
• The five-year waiting period for new residents raises constitutional concerns about equal protection.⁴³ In 1982, a similar five-year waiting period for an increased homestead exemption was struck down by the Florida Supreme Court. The Court wrote: “It is constitutionally prohibited for this state to impose different taxes on its citizens based solely on their length of permanent residence in the state.”⁴⁴ The rewritten ballot summary for Amendment 3 acknowledges this constitutional question. After explaining the new resident provisions, it adds “to the extent permitted by the U.S. Constitution.”

Fiscal Impact

The state’s Revenue Impact Estimating Conference adopted a fiscal impact estimate for HJR 1F.⁴⁵ It estimates that, assuming current millage rates, local government property tax revenue will decrease by $4.939 billion in 2027 and $8.714 billion in 2028, growing to $11.835 billion by 2031. The total impact of five years is $45.837 billion. Individual savings are dependent on taxpayers’ property tax rates (millage rates), which vary considerably depending on where they live. Average non-school millage rates range from 15.3 mills (St. Lucie) to 4.9 mills (Walton).

The millage rates even vary within each county, depending on which city you live in, if you live in an unincorporated area, and which special districts you live in. The average homestead owner, assuming the average statewide non-homestead millage rate of 10.5 mills, would save $1,035 in 2027, and $2,085 in 2028. The new homestead exemption would be adjusted by inflation beginning in 2029, so one’s savings would also increase by inflation.

If the assessed value of a home is $150,000 or less in 2027 and $250,000 or less in 2028, the owner would pay zero property taxes to the county, city, and special districts. The owner would only pay school property taxes. To see how to calculate your specific savings, see Appendix A.

Conclusion

Property taxes and local government spending in Florida have been rising rapidly, with property taxes doubling in the last ten years, including nearly 40 percent growth in the last three. Our report Save Our Taxpayers – Property Tax Relief Must be Accomplished Equitably highlighted the rapid growth in local government property tax collections and concluded that significant relief is warranted. Our How Counties Compare report shows that most counties in Florida have increases in property tax revenues that have far exceeded the growth in population and inflation over the last 10 years.

Tax relief for Floridians is certainly justified but relief is needed by homestead property owners and non-homestead property owners alike. Florida’s property tax system already shifts billions in property taxes from homesteads to non-homestead property. This proposal would worsen this inequity, even with the reduction in the non-homestead cap. We also need to discuss the rapid increase in local government budgets although some local governments have controlled their spending better than others. If guardrails are not put in place to curb local government spending, any reduction in homestead property tax revenue will simply be passed on to non-homestead property owners or replaced with other taxes, fees and assessments.

We should also not forget about millage rates. Florida TaxWatch research has shown that no matter what kind of property tax relief has been granted, property tax collections keep rising. It must be remembered that if taxable values decrease from one year to the next (whether due to added exemptions or falling property values), a local government’s rolled-back rate becomes a “rolled up” rate. This means local governments can adopt a higher millage rate that recoups those tax losses with a simple majority vote without even having to portray it as a tax increase.

The largest fiscal change in the history of Florida government should not be sent to the ballot one week after the initial proposal surfaced. Florida TaxWatch believes that the entire process behind getting Amendment 3 onto the November ballot was rushed, did not secure appropriate input from impacted stakeholders, and, even with this recent ballot summary rewrite, some may still be unclear about what they are voting on.

It would be far better to have this issue taken up by the constitutionally mandated group Florida TaxWatch helped establish—the Taxation and Budget Reform Commission (TBRC). The TBRC meets only once every 20 years and will be appointed in 2027. It will have the time to fully study not only the property tax issue, but a wide range of budget, taxation, and government efficiency issues. They can place issues like property tax reform directly on the ballot for voters to decide.

For more information on Amendment 3, visit the Florida Property Tax Resource Center. https://floridataxwatch.org/research/florida-property-tax-resource-center/ For these reasons…

Appendix A

How much will I save if Amendment 3 passes?

Your savings are dependent on your property tax rates (millage rates), which vary considerably depending on where you live. Average non-school millage rates range from 15.3 mills (St. Lucie) to 4.9 mills (Walton). The millage rates even vary within each county, depending on which city you live in, if you live in an unincorporated area, and which special districts you live in. If the assessed value of your home is greater than $150,000 in 2027, your savings would equal the total of your non-school millage rates applied to $98,589 ($150,000 minus the current $51,411 exemption). If the assessed value of your home is greater than $250,000 in 2028, your savings would equal your non-school millage rates applied to $198,589.

If the assessed value of your home is $150,000 or less in 2027 and $250,000 or less in 2028, you would pay zero property taxes to the county, city, and special districts. You would only pay school property taxes.

Calculate your actual savings

1. Add up all your non-school millage rates. You can get them from your last tax bill sent by your county tax collector, or from your tax collector or property appraiser’s website.
2. Multiply that number by $98.59 in 2027 and $198.59 in 2028.* This result is the difference between the non-school property taxes you would pay with the increased exemptions and the amount you would pay without Amendment 3.

EXAMPLE (Using the statewide average millage rate of 10.5 mills.)

If the assessed value of your home is more than the new exemption. 2027: $98.59 multiplied by 10.5 = $1,035 savings 2028: $198.59 multiplied by 10.5 = $2,085 savings This assumes your millage rates do not change. The new homestead exemption would be adjusted by inflation beginning in 2029, so your savings would also increase by inflation. *1 mill is equal to $1 of tax per $1,000 of taxable value, so the dollar amount increase in the homestead exemption is divided by 1,000 to arrive at these numbers.

Appendix B

Full Text

Amendment 1 / Article III, Section 19 (g)

BUDGET STABILIZATION FUND

Article III

LEGISLATURE

Words underlined are additions; words stricken are deleted.

SECTION 19. State Budgeting, Planning and Appropriations Processes.—

(a) ANNUAL BUDGETING.

(1) General law shall prescribe the adoption of annual state budgetary and planning processes and require that detail reflecting the annualized costs of the state budget and reflecting the nonrecurring costs of the budget requests shall accompany state department and agency legislative budget requests, the governor’s recommended budget, and appropriation bills.

(2) Unless approved by a three-fifths vote of the membership of each house, appropriations made for recurring purposes from nonrecurring general revenue funds for any fiscal year shall not exceed three percent of the total general revenue funds estimated to be available at the time such appropriation is made.

(3) As prescribed by general law, each state department and agency shall be required to submit a legislative budget request that is based upon and that reflects the long-range financial outlook adopted by the joint legislative budget commission or that specifically explains any variance from the long-range financial outlook contained in the request.

(4) For purposes of this section, the terms department and agency shall include the judicial branch.

(b) APPROPRIATION BILLS FORMAT. Separate sections within the general appropriation bill shall be used for each major program area of the state budget; major program areas shall include: education enhancement “lottery” trust fund items; education (all other funds); human services; criminal justice and corrections; natural resources, environment, growth management, and transportation; general government; and judicial branch. Each major program area shall include an itemization of expenditures for: state operations; state capital outlay; aid to local governments and nonprofit organizations operations; aid to local governments and nonprofit organizations capital outlay; federal funds and the associated state matching funds; spending authorizations for operations; and spending authorizations for capital outlay. Additionally, appropriation bills passed by the legislature shall include an itemization of specific appropriations that exceed one million dollars ($1,000,000.00) in 1992 dollars.

For purposes of this subsection, “specific appropriation,” “itemization,” and “major program area” shall be defined by law. This itemization threshold shall be adjusted by general law every four years to reflect the rate of inflation or deflation as indicated in the Consumer Price Index for All Urban Consumers, U.S. City Average, All Items, or successor reports as reported by the United States Department of Labor, Bureau of Labor Statistics or its successor.

Substantive bills containing appropriations shall also be subject to the itemization requirement mandated under this provision and shall be subject to the governor’s specific appropriation veto power described in Article III, Section 8.

(c) APPROPRIATIONS PROCESS.

(1) No later than September 15 of each year, the joint legislative budget commission shall issue a long-range financial outlook setting out recommended fiscal strategies for the state and its departments and agencies in order to assist the legislature in making budget decisions. The long-range financial outlook must include major workload and revenue estimates. In order to implement this paragraph, the joint legislative budget commission shall use current official consensus estimates and may request the development of additional official estimates.

(2) The joint legislative budget commission shall seek input from the public and from the executive and judicial branches when developing and recommending the long-range financial outlook.

(3) The legislature shall prescribe by general law conditions under which limited adjustments to the budget, as recommended by the governor or the chief justice of the supreme court, may be approved without the concurrence of the full legislature.

(d) SEVENTY-TWO HOUR PUBLIC REVIEW PERIOD. All general appropriation bills shall be furnished to each member of the legislature, each member of the cabinet, the governor, and the chief justice of the supreme court at least seventy-two hours before final passage by either house of the legislature of the bill in the form that will be presented to the governor.

(e) FINAL BUDGET REPORT. A final budget report shall be prepared as prescribed by general law. The final budget report shall be produced no later than the 120th day after the beginning of the fiscal year, and copies of the report shall be furnished to each member of the legislature, the head of each department and agency of the state, the auditor general, and the chief justice of the supreme court.

(f) TRUST FUNDS.

(1) No trust fund of the State of Florida or other public body may be created or re-created by law without a three-fifths vote of the membership of each house of the legislature in a separate bill for that purpose only.

(2) State trust funds shall terminate not more than four years after the effective date of the act authorizing the initial creation of the trust fund. By law the legislature may set a shorter time period for which any trust fund is authorized.

(3) Trust funds required by federal programs or mandates; trust funds established for bond covenants, indentures, or resolutions, whose revenues are legally pledged by the state or public body to meet debt service or other financial requirements of any debt obligations of the state or any public body; the state transportation trust fund; the trust fund containing the net annual proceeds from the Florida Education Lotteries; the Florida retirement trust fund; trust funds for institutions under the management of the Board of Governors, where such trust funds are for auxiliary enterprises and contracts, grants, and donations, as those terms are defined by general law; trust funds that serve as clearing funds or accounts for the chief financial officer or state agencies; trust funds that account for assets held by the state in a trustee capacity as an agent or fiduciary for individuals, private organizations, or other governmental units; and other trust funds authorized by this Constitution, are not subject to the requirements set forth in paragraph (2) of this subsection.

(4) All cash balances and income of any trust funds abolished under this subsection shall be deposited into the general revenue fund.

(g) BUDGET STABILIZATION FUND.

(1) For purposes of this subsection, the term “revenue collections” means the last completed fiscal year’s net revenue collections for the general revenue fund.

(2) Subject to the provisions of this subsection, an amount equal to at least 5% of the last completed fiscal year’s net revenue collections for the general revenue fund shall be retained in the budget stabilization fund. The budget stabilization fund’s principal balance shall not exceed an amount equal to 25% 10% of the last completed fiscal

year’s net revenue collections for the general revenue fund.

(3) The legislature shall transfer the lesser of $750 million or the amount required to increase the principal balance of the budget stabilization fund to an amount equal to 25% of revenue collections from the general revenue fund to the budget stabilization fund no later than June 30th of each fiscal year. The legislature may suspend this transfer in a fiscal year in which:

(4) The legislature shall provide criteria for withdrawing funds from the budget stabilization fund in a separate bill for that purpose only and only for the purpose of covering revenue shortfalls of the general revenue fund or for the purpose of providing funding for an emergency, as defined by general law.

(5) If the principal balance of the budget stabilization fund exceeds an amount equal to 15% of revenue collections, the legislature may withdraw funds for the purpose of funding on a nonrecurring basis a critical state need. Such withdrawal must be approved by a two-thirds vote of the membership of each house of the legislature in a separate bill for that purpose only. The withdrawal must not cause the principal balance of the budget stabilization fund to equal an amount that is less than 10% of revenue collections.

(6) General law shall provide for the restoration of this fund. The budget stabilization fund shall be comprised of funds not otherwise obligated or committed for any purpose.

(h) LONG-RANGE STATE PLANNING DOCUMENT AND DEPARTMENT AND AGENCY PLANNING DOCUMENT PROCESSES. General law shall provide for a long-range state planning document. The governor shall recommend to the legislature biennially any revisions to the long-range state planning document, as defined by law. General law shall require a biennial review and revision of the long range state planning document and shall require all departments and agencies of state government to develop planning documents that identify statewide strategic goals and objectives, consistent with the long-range state planning document. The long-range state planning document and department and agency planning documents shall remain subject to review and revision by the legislature. The long-range state planning document must include projections of future needs and resources of the state which are consistent with the long-range financial outlook. The department and agency planning documents shall include a prioritized listing of planned expenditures for review and possible reduction in the event of revenue shortfalls, as defined by general law.

(i) GOVERNMENT EFFICIENCY TASK FORCE. No later than January of 2007, and each fourth year thereafter, the president of the senate, the speaker of the house of representatives, and the governor shall appoint a government efficiency task force, the membership of which shall be established by general law. The task force shall be composed of members of the legislature and representatives from the private and public sectors who shall develop recommendations for improving governmental operations and reducing costs. Staff to assist the task force in performing its duties shall be assigned by general law, and the task force may obtain assistance from the private sector. The task force shall complete its work within one year and shall submit its recommendations to the joint legislative budget commission, the governor, and the chief justice of the supreme court.

(j) JOINT LEGISLATIVE BUDGET COMMISSION. There is created within the legislature the joint legislative budget commission composed of equal numbers of senate members appointed by the president of the senate and

house members appointed by the speaker of the house of representatives. Each member shall serve at the pleasure of the officer who appointed the member. A vacancy on the commission shall be filled in the same manner as the original appointment. From November of each odd-numbered year through October of each even-numbered year, the chairperson of the joint legislative budget commission shall be appointed by the president of the senate and the vice chairperson of the commission shall be appointed by the speaker of the house of representatives.

From November of each even-numbered year through October of each odd-numbered year, the chairperson of the joint legislative budget commission shall be appointed by the speaker of the house of representatives and the vice chairperson of the commission shall be appointed by the president of the senate. The joint legislative budget commission shall be governed by the joint rules of the senate and the house of representatives, which shall remain in effect until repealed or amended by concurrent resolution. The commission shall convene at least quarterly and shall convene at the call of the president of the senate and the speaker of the house of representatives. A majority of the commission members of each house plus one additional member from either house constitutes a quorum. Action by the commission requires a majority vote of the commission members present of each house.

The commission may conduct its meetings through teleconferences or similar means. In addition to the powers and duties specified in this subsection, the joint legislative budget commission shall exercise all other powers and perform any other duties not in conflict with paragraph (c)(3) and as prescribed by general law or joint rule.

Appendix C

Full Text

Amendment 2 / Article VII, Section 3, and amends Article XII. EXEMPTION OF TANGIBLE PERSONAL PROPERTY ON AGRICULTURAL LAND FROM TAXATION

ARTICLE VII

FINANCE AND TAXATION

Words underlined are additions; words stricken are deleted.

SECTION 3. Taxes; Exemptions.—

(a) All property owned by a municipality and used exclusively by it for municipal or public purposes shall be exempt from taxation. A municipality, owning property outside the municipality, may be required by general law to make payment to the taxing unit in which the property is located. Such portions of property as are used predominantly for educational, literary, scientific, religious or charitable purposes may be exempted by general law from taxation.

(b) There shall be exempt from taxation, cumulatively, to every head of a family residing in this state, household goods and personal effects to the value fixed by general law, not less than one thousand dollars, and to every widow or widower or person who is blind or totally and permanently disabled, property to the value fixed by general law not less than five hundred dollars.

(c) Any county or municipality may, for the purpose of its respective tax levy and subject to the provisions of this subsection and general law, grant community and economic development ad valorem tax exemptions to new businesses and expansions of existing businesses, as defined by general law. Such an exemption may be granted only by ordinance of the county or municipality, and only after the electors of the county or municipality voting on such question in a referendum authorize the county or municipality to adopt such ordinances. An exemption so granted shall apply to improvements to real property made by or for the use of a new business and improvements to real property related to the expansion of an existing business and shall also apply to tangible personal property of such new business and tangible personal property related to the expansion of an existing business. The amount or limits of the amount of such exemption shall be specified by general law. The period of time for which such exemption may be granted to a new business or expansion of an existing business shall be determined by general law. The authority to grant such exemption shall expire ten years from the date of approval by the electors of the county or municipality, and may be renewable by referendum as provided by general law.

(d) Any county or municipality may, for the purpose of its respective tax levy and subject to the provisions of this subsection and general law, grant historic preservation ad valorem tax exemptions to owners of historic properties. This exemption may be granted only by ordinance of the county or municipality. The amount or limits of the amount of this exemption and the requirements for eligible properties must be specified by general law. The period of time for which this exemption may be granted to a property owner shall be determined by general law.

(e) By general law and subject to conditions specified therein:

(1) Twenty-five thousand dollars of the assessed value of property subject to tangible personal property tax shall be exempt from ad valorem taxation.

(2) The assessed value of solar devices or renewable energy source devices subject to tangible personal property tax may be exempt from ad valorem taxation, subject to limitations provided by general law.

(f) There shall be granted an ad valorem tax exemption for real property dedicated in perpetuity for conservation purposes, including real property encumbered by perpetual conservation easements or by other perpetual conservation protections, as defined by general law.

(g) By general law and subject to the conditions specified therein, each person who receives a homestead exemption as provided in section 6 of this article; who was a member of the United States military or military reserves, the United States Coast Guard or its reserves, or the Florida National Guard; and who was deployed during the preceding calendar year on active duty outside the continental United States, Alaska, or Hawaii in support of military operations designated by the legislature shall receive an additional exemption equal to a percentage of the taxable value of his or her homestead property. The applicable percentage shall be calculated as the number of days during the preceding calendar year the person was deployed on active duty outside the continental United States, Alaska, or Hawaii in support of military operations designated by the legislature divided by the number of days in that year.

(h)(1) Tangible personal property that meets all of the following conditions shall be exempt from ad valorem taxation:

(2) The exemption provided by this subsection is subject to conditions and limitations and reasonable definitions as specified by the legislature in general law.

ARTICLE XII

SCHEDULE

Ad valorem exemption for tangible personal property on land classified as agricultural.—The amendment to Section 3 of Article VII, providing for a tax exemption for certain tangible personal property, and this section, shall take effect upon approval by the electors and shall first apply for assessments for tax years beginning January 1, 2027.

Appendix D

Full Text

Amendment 3 / Article VII, Section 4,6,9 and Article XII INCREASED HOMESTEAD EXEMPTION; LOWER CAP ON INCREASES IN NON-HOMESTEAD PROPERTY ASSESSMENTS

ARTICLE VII

FINANCE AND TAXATION

Words underlined are additions; words stricken are deleted.

SECTION 4. Taxation; assessments.—By general law valuation of all property for ad valorem taxation, provided:

(a) Agricultural land, land producing high water recharge to Florida’s aquifers, or land used exclusively for noncommercial recreational purposes may be classified by general law and assessed solely on the basis of character or use.

(b) As provided by general law and subject to conditions, limitations, and reasonable definitions specified therein, land used for conservation purposes shall be classified by general law and assessed solely on the basis of character or use.

(c) Pursuant to general law tangible personal property held for sale as stock in trade and livestock may be valued for taxation at a specified percentage of its value, may be classified for tax purposes, or may be exempted from taxation.

(d) All persons entitled to a homestead exemption under Section 6 of this Article shall have their homestead assessed at just value as of January 1 of the year following the effective date of this amendment. This assessment shall change only as provided in this subsection.

(1) Assessments subject to this subsection shall be changed annually on January 1st of each year; but those changes in assessments shall not exceed the lower of the following:

a. Three percent (3%) of the assessment for the prior year.

b. The percent change in the Consumer Price Index for all urban consumers, U.S. City Average, all items 1967 = 100, or successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics.

(2) No assessment shall exceed just value.

(3) After any change of ownership, as provided by general law, homestead property shall be assessed at just value as of January 1 of the following year, unless the provisions of paragraph (8) apply. Thereafter, the homestead shall be assessed as provided in this subsection.

(4) New homestead property shall be assessed at just value as of January 1st of the year following the establishment of the homestead, unless the provisions of paragraph (8) apply. That assessment shall only change as provided in this subsection.

(5) Changes, additions, reductions, or improvements to homestead property shall be assessed as provided for by

general law; provided, however, after the adjustment for any change, addition, reduction, or improvement, the property shall be assessed as provided in this subsection.

(6) In the event of a termination of homestead status, the property shall be assessed as provided by general law.

(7) The provisions of this amendment are severable. If any of the provisions of this amendment shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any remaining provisions of this amendment.

(8)a. A person who establishes a new homestead as of January 1 and who has received a homestead exemption pursuant to Section 6 of this Article as of January 1 of any of the three years immediately preceding the establishment of the new homestead is entitled to have the new homestead assessed at less than just value. The assessed value of the newly established homestead shall be determined as follows:

1. If the just value of the new homestead is greater than or equal to the just value of the prior homestead as of January 1 of the year in which the prior homestead was abandoned, the assessed value of the new homestead shall be the just value of the new homestead minus an amount equal to the lesser of $500,000 or the difference between the just value and the assessed value of the prior homestead as of January 1 of the year in which the prior homestead was abandoned. Thereafter, the homestead shall be assessed as provided in this subsection.

2. If the just value of the new homestead is less than the just value of the prior homestead as of January 1 of the year in which the prior homestead was abandoned, the assessed value of the new homestead shall be equal to the just value of the new homestead divided by the just value of the prior homestead and multiplied by the assessed value of the prior homestead. However, if the difference between the just value of the new homestead and the assessed value of the new homestead calculated pursuant to this sub-subparagraph is greater than $500,000, the assessed value of the new homestead shall be increased so that the difference between the just value and the assessed value equals $500,000. Thereafter, the homestead shall be assessed as provided in this subsection.

b. By general law and subject to conditions specified therein, the legislature shall provide for application of this paragraph to property owned by more than one person.

(e) The legislature may, by general law, for assessment purposes and subject to the provisions of this subsection, allow counties and municipalities to authorize by ordinance that historic property may be assessed solely on the basis of character or use. Such character or use assessment shall apply only to the jurisdiction adopting the ordinance. The requirements for eligible properties must be specified by general law.

(f) A county may, in the manner prescribed by general law, provide for a reduction in the assessed value of homestead property to the extent of any increase in the assessed value of that property which results from the construction or reconstruction of the property for the purpose of providing living quarters for one or more natural or adoptive grandparents or parents of the owner of the property or of the owner’s spouse if at least one of the grandparents or parents for whom the living quarters are provided is 62 years of age or older. Such a reduction may not exceed the lesser of the following:

(1) The increase in assessed value resulting from construction or reconstruction of the property.

(2) Twenty percent of the total assessed value of the property as improved.

(g) For all levies other than school district levies, assessments of residential real property, as defined by general law, which contains nine units or fewer and which is not subject to the assessment limitations set forth in subsections

(a) through (d) shall change only as provided in this subsection.

(1) Assessments subject to this subsection shall be changed annually on the date of assessment provided by law; but those changes in assessments shall not exceed the following percentages of the assessment for the prior year:

a. Before January 1, 2027, ten percent (10%).

b. Beginning January 1, 2027, five percent (5%).

(2) No assessment shall exceed just value.

(3) After a change of ownership or control, as defined by general law, including any change of ownership of a legal entity that owns the property, such property shall be assessed at just value as of the next assessment date. Thereafter, such property shall be assessed as provided in this subsection.

(4) Changes, additions, reductions, or improvements to such property shall be assessed as provided for by general law; however, after the adjustment for any change, addition, reduction, or improvement, the property shall be assessed as provided in this subsection.

(h) For all levies other than school district levies, assessments of real property that is not subject to the assessment limitations set forth in subsections (a) through (d) and (g) shall change only as provided in this subsection.

(1) Assessments subject to this subsection shall be changed annually on the date of assessment provided by law; but those changes in assessments shall not exceed the following percentages ten percent (10%) of the assessment for the prior year:

a. Before January 1, 2027, ten percent (10%).

b. Beginning January 1, 2027, five percent (5%).

(2) No assessment shall exceed just value.

(3) The legislature must provide that such property shall be assessed at just value as of the next assessment date after a qualifying improvement, as defined by general law, is made to such property. Thereafter, such property shall be assessed as provided in this subsection.

(4) The legislature may provide that such property shall be assessed at just value as of the next assessment date after a change of ownership or control, as defined by general law, including any change of ownership of the legal entity that owns the property. Thereafter, such property shall be assessed as provided in this subsection.

(5) Changes, additions, reductions, or improvements to such property shall be assessed as provided for by general law; however, after the adjustment for any change, addition, reduction, or improvement, the property shall be assessed as provided in this subsection.

(i) The legislature, by general law and subject to conditions specified therein, may prohibit the consideration of the following in the determination of the assessed value of real property:

(1) Any change or improvement to real property used for residential purposes made to improve the property’s resistance to wind damage.

(2) The installation of a solar or renewable energy source device.

(j)

(1) The assessment of the following working waterfront properties shall be based upon the current use of the property:

a. Land used predominantly for commercial fishing purposes.

b. Land that is accessible to the public and used for vessel launches into waters that are navigable.

c. Marinas and drystacks that are open to the public.

d. Water-dependent marine manufacturing facilities, commercial fishing facilities, and marine vessel construction and repair facilities and their support activities.

(2) The assessment benefit provided by this subsection is subject to conditions and limitations and reasonable definitions as specified by the legislature by general law.

SECTION 6. Homestead exemptions.—

(a)(1)a. Every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon, except assessments for special benefits, as follows:

1.a. For school district levies, up to the assessed valuation of twenty-five thousand dollars; and

2.b. For all levies other than school district levies,

I. Beginning on January 1, 2027, up to the assessed valuation of one hundred and fifty thousand dollars.

II. Beginning on January 1, 2028, up to the assessed valuation of two hundred and fifty thousand dollars.

b. Every person who, on or after January 1, 2027, has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, who had not maintained a permanent residence in this state as of December 31, 2026, shall be exempt from taxation thereon, except assessments for special benefits, as follows:

The exemptions provided by this paragraph apply only greater than fifty thousand dollars and up to seventy-five thousand dollars, upon establishment of right thereto in the manner prescribed by law. The real estate may be held by legal or equitable title, by the entireties, jointly, in common, as a condominium, or indirectly by stock ownership or membership representing the owner’s or member’s proprietary interest in a corporation owning a fee or a leasehold initially in excess of ninety-eight years. The exemptions exemption shall not apply with respect to any assessment roll until such roll is first determined to be in compliance with the provisions of section 4 by a state agency designated by general law. These exemptions are This exemption is repealed on the effective date of any amendment to this Article which provides for the assessment of homestead property at less than just value.

2a. The twenty-five thousand dollar amount of assessed valuation exempt from taxation provided in sub-sub-subparagraph (1)a.2.II. subparagraph (a)(1)b. shall be adjusted annually for inflation beginning on January 1, 2029, and of each year thereafter, for inflation using the percent change in the Consumer Price Index for All Urban Consumers, U.S. City Average, all items 1967 = 100, or successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics, if such percent change is positive.

b. The amount of assessed valuation exempt from taxation provided in sub-subparagraph (1)b.2. shall be adjusted annually for inflation beginning on January 1, 2028, and each year thereafter, using the percent change in the Consumer Price Index for All Urban Consumers, U.S. City Average, all items 1967 = 100, or successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics, if such percent change is positive.

(3) Except for the exemptions provided in sub-subparagraphs (1)a.2. and b.2. and paragraph (4), the amount of assessed valuation exempt from taxation for which every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another person legally or naturally dependent upon the owner, is eligible, and which applies solely to levies other than school district levies, that is added to this constitution after January 1, 2025, shall be adjusted annually on January 1 of each year for inflation using the percent change in the Consumer Price Index for All Urban Consumers, U.S. City Average, all items 1967 = 100, or

successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics, if such percent change is positive, beginning the year following the effective date of such exemption.

(4)a.1. The legislature shall, by general law, prescribe a uniform procedure for counties and municipalities, for their respective levies, to increase the amount of assessed valuation exempt from taxation under paragraph (1), up to all remaining assessed valuation.

2. A special district may adjust the amount of assessed valuation exempt from taxation as approved under sub-subparagraph 1. annually on January 1 of each year for inflation using the percent change in the Consumer Price Index for All Urban Consumers, U.S. City Average, all items 1967 = 100, or successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics, if such percent change is positive.

(b) Not more than one exemption shall be allowed any individual or family unit or with respect to any residential unit. No exemption shall exceed the value of the real estate assessable to the owner or, in case of ownership through stock or membership in a corporation, the value of the proportion which the interest in the corporation bears to the assessed value of the property.

(c) By general law and subject to conditions specified therein, the Legislature may provide to renters, who are permanent residents, ad valorem tax relief on all ad valorem tax levies. Such ad valorem tax relief shall be in the form and amount established by general law.

(d) The legislature may, by general law, allow counties or municipalities, for the purpose of their respective tax levies and subject to the provisions of general law, to grant either or both of the following additional homestead tax exemptions:

(1) An exemption not exceeding fifty thousand dollars to a person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, who has attained age sixty-five, and whose household income, as defined by general law, does not exceed twenty thousand dollars; or

(2) An exemption equal to the assessed value of the property to a person who has the legal or equitable title to real estate with a just value less than two hundred and fifty thousand dollars, as determined in the first tax year that the owner applies and is eligible for the exemption, and who has maintained thereon the permanent residence of the owner for not less than twenty-five years, who has attained age sixty-five, and whose household income does not exceed the income limitation prescribed in paragraph (1).

The general law must allow counties and municipalities to grant these additional exemptions, within the limits prescribed in this subsection, by ordinance adopted in the manner prescribed by general law, and must provide for the periodic adjustment of the income limitation prescribed in this subsection for changes in the cost of living.

(e)

(1) Each veteran who is age 65 or older who is partially or totally permanently disabled shall receive a discount from the amount of the ad valorem tax otherwise owed on homestead property the veteran owns and resides in if the disability was combat related and the veteran was honorably discharged upon separation from military service. The discount shall be in a percentage equal to the percentage of the veteran’s permanent, service-connected disability as determined by the United States Department of Veterans Affairs. To qualify for the discount granted by this paragraph, an applicant must submit to the county property appraiser, by March 1, an official letter from the United States Department of Veterans Affairs stating the percentage of the veteran’s service-connected disability and such evidence that reasonably identifies the disability as combat related and a copy of the veteran’s honorable discharge. If the property appraiser denies the request for a discount, the appraiser must notify the applicant in writing of the reasons for the denial, and the veteran may reapply. The Legislature may, by general law, waive the annual application requirement in subsequent years.

(2) If a veteran who receives the discount described in paragraph (1) predeceases his or her spouse, and if, upon the death of the veteran, the surviving spouse holds the legal or beneficial title to the homestead property and permanently resides thereon, the discount carries over to the surviving spouse until he or she remarries or sells or otherwise disposes of the homestead property. If the surviving spouse sells or otherwise disposes of the property, a discount not to exceed the dollar amount granted from the most recent ad valorem tax roll may be transferred to the surviving spouse’s new homestead property, if used as his or her permanent residence and he or she has not remarried.

(3) This subsection is self-executing and does not require implementing legislation.

(f) By general law and subject to conditions and limitations specified therein, the Legislature may provide ad valorem tax relief equal to the total amount or a portion of the ad valorem tax otherwise owed on homestead property to:

(1) The surviving spouse of a veteran who died from service-connected causes while on active duty as a member of the United States Armed Forces.

(2) The surviving spouse of a first responder who died in the line of duty.

(3) A first responder who is totally and permanently disabled as a result of an injury or injuries sustained in the line of duty. Causal connection between a disability and service in the line of duty shall not be presumed but must be determined as provided by general law. For purposes of this paragraph, the term “disability” does not include a chronic condition or chronic disease, unless the injury sustained in the line of duty was the sole cause of the chronic condition or chronic disease. As used in this subsection and as further defined by general law, the term “first responder” means a law enforcement officer, a correctional officer, a firefighter, an emergency medical technician, or a paramedic, and the term “in the line of duty” means arising out of and in the actual performance of duty required by employment as a first responder.

SECTION 9. Local taxes.—

(a)(1) Counties, school districts, and municipalities shall, and special districts may, be authorized by law to levy ad valorem taxes and may be authorized by general law to levy other taxes, for their respective purposes, except ad valorem taxes on intangible personal property and taxes prohibited by this constitution.

(2) Ad valorem taxes levied by counties and municipalities shall be used only to:

g. Fund the operations and administration of county officers and commissioners established under Article VIII and municipalities, and the expenditures approved by such county officers or county or municipal governing bodies, except those expenditures prohibited by general law.

(b) Ad valorem taxes, exclusive of taxes levied for the payment of bonds and taxes levied for periods not longer than two years when authorized by vote of the electors who are the owners of freeholds therein not wholly exempt from taxation, shall not be levied in excess of the following millages upon the assessed value of real estate and tangible personal property: for all county purposes, ten mills; for all municipal purposes, ten mills; for all school purposes, ten mills; for water management purposes for the northwest portion of the state lying west of the line between ranges two and three east, 0.05 mill; for water management purposes for the remaining portions of the state, 1.0 mill; and for all other special districts a millage authorized by law approved by vote of the electors who are owners of freeholds therein not wholly exempt from taxation. A county furnishing municipal services may, to the extent authorized by law, levy additional taxes within the limits fixed for municipal purposes.

ARTICLE XII

SCHEDULE

Limitation on the assessment of real property, homestead property exemptions, and local government revenue— This section and the amendments to Sections 4 and 6 of Article VII, relating to a limitation on the assessed value of real property, an increase to the homestead property tax exemption, and the creation of a new homestead exemption beginning January 1, 2027, and the amendment to Section 9 of Article VII, relating to the uses of certain revenues by counties and municipalities, shall take effect January 1, 2027.