Amendment 3: tax cut or cost shift?
In the upcoming election on November 3, Florida voters will decide on Amendment 3, a constitutional amendment that would significantly increase the homestead property-tax exemption. For homeowners, the exemption would increase to $150,000 for non-school property taxes in 2027 and $250,000 in 2028, with future increases tied to inflation. Sounds great, right? But there is another side to this tax cut.According to Florida’s Revenue Estimating Conference, Amendment 3 could eventually reduce local non-school property-tax revenue by nearly $12 billion a year. Local governments would then have to decide whether to reduce services or find other sources of revenue. Those costs could shift to renters, consumers and small businesses.Health care could also be affected. A recent analysis estimates that Florida’s public hospital districts and health systems could lose about $323 million over three years. Some districts could lose more than half of their total revenue. These losses could affect access to care, staffing, wait times and programs serving uninsured and low-income Floridians.Local governments are also warning that reduced property-tax revenue could affect services such as law enforcement, fire protection, libraries and stormwater management.Amendment 3 may lower property taxes for some homeowners, but it does not make the cost of government disappear. It shifts where those costs are paid. Florida voters should understand both the potential tax savings and the possible effects on local services before voting on November 3.
Eileen Briening, Naples
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