Amendment 3 raises homestead exemption and cuts local tax revenue

Amendment 3 will increase the homestead exemption to $150,000 in 2027 and $250,000 in 2028 while lowering the cap on annual assessment hikes for rental and commercial properties to 5 %. State economists estimate local governments will lose about $5 billion in the first year and roughly $12 billion annually once the exemption is fully phased in. University of Tampa economists say the revenue cuts could shrink budgets for police, fire and emergency medical services, especially in smaller counties. A former Republican lawmaker warned the reduced tax base may force gradual closure of fire stations and other emergency services in rural towns.