Understanding Amendment 3: Your Home, Your Tax Bill, Your Vote

What Is Amendment 3?

Along with the candidates on the November 3 ballot, Volusia County voters will find a question that lands close to home. Amendment 3 would change how much homeowners pay in property taxes. It would also change how local governments pay for the services residents count on every day, including fire protection, local parks maintenance, municipal sports fields upkeep, public libraries and public roadways. It needs 60 percent voter approval to pass. If approved, the changes would take effect January 1, 2027.

How Amendment 3 Would Change Homestead Exemptions

Currently, Volusia homeowners receive a homestead exemption of about $51,000. Amendment 3 would raise the exemption on non-school property taxes to $150,000 in 2027 and $250,000 in 2028. School taxes are handled separately. According to the Volusia County Property Appraiser’s Office, only the first $25,000 of a home’s assessed value would remain exempt from school taxes, so most property owners would still receive a school tax bill.

The amendment would also lower the cap on how much the assessed value of non-homesteaded property, like second homes, rental properties and commercial buildings, can rise each year from 10 percent to 5 percent.

Some longtime homeowners are concerned if they would lose their Save Our Homes (SOH) benefit. Approved by Florida voters in 1992, SOH keeps a homestead’s taxable value from rising as fast as the market, so owners who have stayed in the same home for years often pay taxes on less than what their homes are worth. According to the property appraiser, homeowners would not lose SOH. Portability benefits would also stay in place.

Portability lets homeowners who sell and buy another Florida home take their SOH savings with them, up to $500,000 of the difference between their old home’s market value and its assessed value. Homeowners have up to three years to establish a new homestead and must apply through Volusia’s property appraiser.

In other words, the larger exemption would be added on top of the protection homeowners already have.

According to the Proposed Florida Property Tax Amendment 3 Frequently Asked Questions, found on the Property Appraiser’s website, VCPA.vcgov.org, using the countywide average tax rate, estimates a homestead would save about $1,164 in 2027 and $2,345 in 2028. Actual savings will vary by property.

Who Would Benefit From Amendment 3?

Not everyone would see the same benefit. People who establish Florida residency on or after January 1, 2027, would start with a $50,000 exemption and become eligible for the larger exemption in their fifth year. Owners of second homes and rental properties would not receive the homestead exemption but would benefit from the lower 5 percent cap. Renters would not receive a direct tax break.

Property taxes help pay for police, fire rescue, roads, parks and other local services. The Florida Revenue Estimating Conference, a panel of state economists that estimates cost of legislation, estimated Amendment 3 would reduce local government revenue statewide by about $5 billion in its first year and as much as $12 billion a year once fully in place.

New Smyrna Beach Prepares for Potential Revenue Losses

Some Volusia cities are already planning for the possibility. According to a news release published on CityofNSB.com, in New Smyrna Beach, city officials estimated in July that the city could lose $4.5 million in property tax revenue in 2028 if the amendment passes. On September 8, the City Commission established an annual “fire assessment” to fund about $2.4 million in fire protection services, along with a $100,000 program to help eligible low-income homeowners cover the fee.

What Voters Need to Know

How Amendment 3 affects each household will depend on whether residents own or rent, how long they have lived in their homes and where in the county they live. Questions remain about how local governments would adjust their budgets if passed. Residents can find estimates and answers to common questions on the Volusia County Property Appraiser’s website at VCPA.vcgov.org

For official information regarding the proposed constitutional amendment, please refer to information published by the Florida Legislature, Florida Department of State, Florida Department of Revenue, and other official state sources.

Any information provided for this news column is based on personal research and analysis and does not reflect the views or opinions of Ocean Properties & Management Inc.