Florida Voters Approve Amendment 3, Reshaping Property Taxes for Residents and Snowbirds
Florida voters passed Amendment 3, raising homestead exemptions for permanent residents and lowering the annual cap on assessed value increases for non-homestead properties from 10% to 5%. While Canadian snowbirds do not qualify for the homestead exemption, they benefit from the reduced assessment cap. Economists warn the measure could cost local governments billions in lost revenue annually.
Florida voters approved Amendment 3 on Tuesday night, clearing the required 60 per cent threshold approximately 40 minutes after polls closed. The constitutional amendment introduces significant changes to property taxes across the state, affecting both permanent residents and non-resident property owners, including Canadian snowbirds.
Under the new amendment, the homestead exemption for permanent Florida residents will increase to US$150,000 in 2027 and US$250,000 in 2028 for property taxes unrelated to school funding. Beginning in 2029, the homestead exemption will rise with inflation. Canadian snowbirds generally do not qualify for this exemption because their Florida properties are not considered their permanent residences.
However, the amendment also reduces the annual cap on increases in the assessed value of non-homestead properties from 10 per cent to five per cent. This lower assessment cap applies to second homes, vacation properties, and rental units, including those owned by Canadians. Despite the reduced cap on assessed values, actual property tax bills may still increase beyond five per cent because they depend on tax rates set by local governments, which can change independently of assessed values.
Florida Gov. Ron DeSantis backed the amendment, having previously argued that tax relief should primarily benefit Florida residents rather than tourists. Florida Realtors also supported the measure, arguing it would provide tax relief for homeowners and greater predictability for owners of vacation properties.
State economists estimate the amendment will reduce local property-tax revenue by US$4.9 billion in the 2027-28 fiscal year. Over time, the measure is projected to cause an eventual recurring annual loss of approximately US$11.8 billion in local property-tax revenue. In Miami-Dade County alone, the projected recurring annual loss is US$1.39 billion.
Ken Johnson, a former real estate economist at Florida Atlantic University, warned that the amendment could encourage lawmakers to pursue complete elimination of property taxes on primary residences. Johnson stated that passage of Amendment 3 will continue to undermine Florida’s tax base, resulting in exposure to a severe property crash during future national recessions. To offset lost property-tax revenue, local governments could turn to higher fees for services like garbage collection, water, and sewer services.