Florida Legislature Places Major Property Tax Reform Amendment on November 2026 Ballot

The Florida Legislature has approved a sweeping constitutional amendment that could significantly reshape Florida’s property tax system and affect local government revenues for decades to come.

Approved through CS/HJR 1F during the 2026 special session, the proposal would do the following:

• Expand homestead exemptions
• Limit future growth in taxable values for many properties
• Establish new residency requirements for certain tax benefits
• Create constitutional restrictions on the use of county and municipal property tax revenues

Because the proposal amends the Florida Constitution, it must be approved by at least 60% of voters in the November 2026 general election before taking effect. If it passes, most provisions will become effective Jan. 1, 2027.

Major Changes Included in the Amendment

The property tax reform amendment features several key provisions.

Expanded Homestead Exemption

The amendment would substantially increase Florida’s homestead exemption for levies other than school district taxes.

Beginning Jan. 1, 2027, the first $150,000 of assessed value would be exempt from taxation for qualifying homestead properties. Beginning Jan. 1, 2028, that exemption would increase to $250,000, with future inflation adjustments beginning in 2029.

The amendment’s ballot summary also references a future legislative schedule for the full elimination of property taxes on homestead properties for non-school district levies.

For local governments, these changes could significantly reduce taxable value growth and property tax revenues depending on community demographics and tax base composition.

New Residency Requirement for Enhanced Benefits

The proposal establishes different treatment for individuals who become Florida residents after Jan. 1, 2027.

New residents generally would receive a reduced homestead exemption and would be required to maintain Florida residency for five years before becoming eligible for the enhanced exemption available to existing Florida residents.

This provision appears intended to prioritize tax relief for existing Florida homeowners while discouraging individuals from immediately relocating to Florida solely to obtain expanded property tax benefits.

Reduced Assessment Growth Caps for Non-Homestead Property

The amendment would reduce the annual assessment limitation applicable to many non-homestead properties.

Currently, many residential and commercial properties are subject to a 10% cap on annual increases in assessed value. Beginning Jan. 1, 2027, that limitation would be reduced to 5%.

The change would apply to many residential rental properties, commercial properties and other non-homestead real estate. This would provide greater predictability for property owners while potentially slowing future growth in local government tax bases.

Constitutional Restrictions on Use of Property Tax Revenue

One of the most discussed provisions of the amendment is a new constitutional limitation on how counties and municipalities may use ad valorem tax revenues.

Under the proposal, county and municipal property tax revenues would be restricted to specified governmental purposes, including:

• Public safety services
• Education and public schools
• Infrastructure projects
• Natural resource and flood control projects
• Debt service and bond obligations
• Retirement obligations
• Government operations and administration

While the ballot language emphasizes the use of property taxes for “core public needs,” the actual amendment language includes broader provisions allowing funding for governmental operations and expenditures approved by county and municipal governing bodies.

As a result, many traditional local government services — such as parks and recreation, libraries, planning functions, and other community services — would likely continue to qualify for property tax support. However, the practical effect of these constitutional restrictions will likely depend on future legislative implementation and legal interpretation.

Local governments should monitor future legislative action closely if the amendment is approved, as additional statutory guidance may be needed to clarify the application of these provisions.

Potential Impact on Local Governments

The long-term impact of the amendment will vary considerably across Florida communities.

Local governments with large residential tax bases may experience more significant revenue impacts due to the expanded homestead exemption. Meanwhile, communities with substantial commercial and industrial property may also see slower taxable value growth because of the reduced assessment caps.

If approved, local governments may need to reevaluate:

• Long-term revenue forecasts
• Capital improvement programs
• Debt capacity and financing plans
• Reserve policies
• Millage rate strategies
• Alternative revenue sources

Because many provisions would take effect at the start of next year, local government finance officers and elected officials should begin assessing potential impacts now.

What Happens Next?

Unlike ordinary legislation, constitutional amendments proposed by the legislature must be approved by Florida voters. The amendment will appear on the November 2026 general election ballot and must receive at least 60% voter approval to become part of Florida’s constitution.

Our Government Services team is tracking this news. Please reach out if you have questions on how it could impact your municipality.

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