Florida voters will decide in November whether to triple the state's homestead property tax exemption from $50,000 to $150,000 in 2027 and then to $250,000 in 2028, according to a new analysis from Americans for Tax Reform. The ballot measure, passed by the state legislature during a special session this month, requires 60% voter approval and represents a dramatic shift from Governor Ron DeSantis's original call to eliminate property taxes entirely. The amendment would fundamentally reshape how Florida taxes homeowners while leaving school property taxes untouched.
The "Save Our Homes from Excessive Property Taxes" amendment includes several major changes beyond the homestead exemption increase. The measure would cut the property tax assessment cap for commercial properties, apartments, and condos from 10% to 5%, which the report notes affects "larger buildings where people live" and "small mom-and-pop landlords too." The amendment also restricts how local governments can spend property tax revenue, limiting it to public safety, education, infrastructure, natural resource projects, debt service, employee retirement obligations, and basic government operations. The enabling legislation sets new limits on automatic tax increases: counties and municipalities can only levy property taxes at the "rolled-back rate" adjusted for per capita Florida personal income growth, with any increase requiring either a two-thirds vote of the governing body or voter referendum for larger hikes.
The final plan differs significantly from what DeSantis proposed, according to the report. The legislature exempted school property taxes from all changes, which the report calls "very significant as education spending makes up a significant part of budgets" and means "property tax on homesteads will never go away under this plan." Lawmakers also removed a provision creating a state fund to compensate local governments for lost revenue. The report finds that DeSantis "lived up to this promise" not to raise state taxes, avoiding what it describes as "the worst trap for states" of raising statewide taxes to subsidize local governments. Florida's Chief Financial Officer has identified $3.7 billion in wasteful local government spending as of June 2026, defined as spending growth exceeding inflation plus population growth.
The Florida approach offers important lessons for other states grappling with property tax revolts, the report argues. By focusing on local government spending limits rather than state tax shifts, Florida addresses what the report calls the "accountability mechanism" problem where voters lose clarity about who's responsible for tax burdens. The report emphasizes that "full, immediate elimination of property taxes is not reasonable," pointing to North Dakota's 2024 rejection of a property tax elimination measure that would have guaranteed state tax increases. School funding creates the biggest challenge: nationally, 50% to 65% of property tax revenue funds local schools, and state constitutions require public education funding. By exempting schools, Florida legislators sidestepped what the report describes as "tricky issues that could arise with replacing school revenue." The measure still allows the legislature to develop a framework for fully eliminating property taxes on homesteads outside of school funding, but that remains a future possibility rather than a guaranteed outcome.