As we know, the Property Tax reform will be put to a vote by Florida voters in the upcoming election on November 3. It is included in Amendment 3 and is strongly supported by real estate professionals, who see it as a way to provide financial relief to families facing rising living costs and to support the market.
Florida Realtors, a well-funded real estate association, has invested $10 million to promote Amendment 3, which would result in a massive reduction in property taxes for “homestead” owners—that is, Florida tax residents who own their primary residence.
This financial push comes as many rural local governments and neighborhood associations oppose the amendment. If approved by voters in November, this tax cut will directly impact local funding for public services.
As Garry McDonald, president of the Canadian Snowbirds Association (CSA), explains: “Local governments in Florida rely heavily on property taxes to fund essential services such as police, fire, emergency response, roads, water and sewer infrastructure, parks, and libraries.”
For snowbirds
There is great concern among Canadian and American snowbirds. McDonald continues: “If homeowners benefiting from the homestead exemption were no longer to pay a significant portion of local property taxes, local governments would still need revenue to maintain services. Without a new source of funding, there is a real risk that a greater share of the tax burden would be shifted to non-homesteaded properties. ”
The CSA has therefore taken action to engage in discussions with legislators across the state, explaining that it would be unfair for snowbirds to shoulder the burden of the funding shortfall, especially since they contribute significantly to Florida’s economic development. Its efforts have borne fruit, as the final bill (see paragraph below) is much more moderate than the initial radical proposals, which even called for the complete elimination of property taxes.
Furthermore, and most importantly, as McDonald points out: “The law reduces the annual cap on assessment growth for non-homesteaded properties, lowering it from 10% to 5% starting in 2027. For many CSA members, this may be the most important aspect of the entire reform.” ”
In effect, this means that property taxes for non-resident seasonal homeowners cannot increase by more than 5% per year. Currently, the maximum increase is 10% per year.
This measure, included in Amendment 3, is therefore very important, as it would prevent local governments from heavily overtaxing snowbirds to balance their budgets.
The CSA has supported this measure for many years. According to McDonald, “this would provide greater predictability, help moderate future tax increases, and offer significant protection during periods of strong real estate appreciation.”
Final Bill: A Reminder
If approved by more than 60% of the vote, the bill provides that exemptions will be $150,000 as of January 1, 2027 (up from the current $50,000); $250,000 as of January 1, 2028; and then indexed annually to inflation starting in 2029.
Everything is now in the hands of Florida voters.
Translated with Deepl
