The Governor’s initiative, modified by the Legislature and known as Amendment 3, will appear on
all statewide ballots this November, requiring a 60% statewide approval for adoption. The
description appearing on the ballot is brief as required by Statute, but does not accurately define
the proposal. The intent is a real estate tax decrease for Floridians who have Homesteaded their
residence. This wording does not clarify that public school taxes are exempt from this proposal,
thus property taxes will not be completely eliminated for anyone. Homesteading does not require
full time occupancy but, does require voting in the local precincts and significantly restricts
rental opportunities of those properties. The Bill does offer an increase in the Homestead exemption
from $50,000 to $150,000 in 2027 and to $250,000 in 2028, with the possibility of future
Legislators eliminating all non-school taxes for some properties.
The Bill does not address the offsets or adverse affects which would follow, if enacted. In addition,
the Bill does not offer any alternative sources of income to Cities to replace the lost revenue
supporting multiple City services. The Bill is a “one size fits all” approach, disfavoring cities
which are effectively and efficiently managing their financial resources. On average, Holmes Beach
homesteaded property owners pay approximately 13-14% of their total tax bill to the City, the
majority of their total tax is allocated to public schools, which again are not affected by this
Bill.
This Bill also represents a further attack on Home Rule, a trend which has gained momentum over the
past 10 years by continuing to usurp local decision making in favor of State control. The ambiguous
Bill would also allow future State Legislators to totally eliminate taxes on some homesteaded
properties, except for the public schools, without clarifying the process or timetable to do so.
If enacted, this amendment would shift a majority of the funding of City services to commercial and
rental income properties, which we believe, would not be a fair method of spreading the costs of
services which benefit all. The Bill simply requires all Cities to spend less across the board
while continuing to provide services, as costs of doing so continues to rise.
The Bill is void of any provisions for replacing revenue and would result in each city determining
which services to cut or which additional assessments or fees to consider adopting to allow the
continuation existing services.
Here are some facts to analyze actual Holmes Beach taxing highlights over the past 5 years;
1. The millage rate has been decreased consecutively for 5 years from 2.25% in 2020 to 1.99% in
2025, where it remained this year. The preliminary 2027 budget calls for a further reduction to
1.92%, subject to further review.
2. The storms of 2024 resulted in a loss of $300,000,000 of taxable assessed valuation while we
froze the millage rate, resulting in a revenue loss of approximately $600,000 for the year.
3. Balanced our budgets in 2024 & 2025 while utilizing some reserves, still maintaining the
recommended 25% of operating budget in unassigned reserves.
4. Prudent management resulted in total operating expenses of approximately $1,000,000 below
budget for 2025.
5. On average the Holmes Beach line item is 13-14% for Homesteaded properties based on the
existing $50,000 homestead exemption. Public school line items receive a $25,000 exemption. In
addition, the existing “Save Our Homes” Legislation caps Homesteaded properties to a 3% maximum
assessed valuation increase annually and allows ”portability” allowing up to
$500,000 decrease in assessed valuation to a different homesteaded property in Florida.
ADVERSE AFFECTS of Amendment 3;
1.There are no offsetting revenue sources identified to address the financial loss to cities and
counties.
2. Operating budgets are capped to a 10% increase over prior year, no matter the needs of
municipalities.
3. Cities may establish new fees to offset the losses which could result in a less equitable means
of spreading the costs of city services.
4. Services such as public works, stormwater improvements, parks maintenance and future wetland
purchases may be curtailed in order to balance budgets. Public safety and road
4. Services such as public works, stormwater improvements, parks maintenance and fut
wetland purchases may be curtailed in order to balance budgets. Public safety and road
maintenance & improvements could also be affected. Statewide, Public Safety represents 56% of
cities general fund spending.
5. A reduction in services and or an increase in assessments are the remaining options for cities
to consider. This would represent a shift of revenue sources, potentially eliminating gains from
the homestead exemption increase.
6. A further troubling result of passage would be a continued reduction of local control or Home
Rule. Home Rule is granted by our State Constitution, allowing small government and local control
by local citizens choosing the candidates they elect.
Considerable push back has been established through law suits and opposition by the States Fire
Chiefs’ Association. It is important for all registered voters and property owners to understand
the full consequences of this proposal.
I recommend a NO vote,
Terry Schaefer, Holmes Beach
Legislative Liaison
For further information search:
https://localvoicesunited/prop
For further information search:
https://localvoicesunited/property-tax