CS/HJR 1-F: Florida's Proposed Homestead Tax Amendment Could Drastically Cut City Revenue in 2026

A proposed constitutional amendment passed by the Florida Legislature could significantly alter local government finances if approved by voters in November. CS/HJR 1-F, which will appear on the November 2026 General Election ballot, requires 60% voter approval to take effect. City staff are currently refining budget assumptions and figures based on state direction to understand the full scope of these potential changes.

The amendment proposes substantial increases to the homestead property tax exemption, raising it from $50,000 to $150,000 starting January 1, 2027, and further to $250,000 by January 1, 2028. It also mandates the Legislature to establish a schedule for the full elimination of homestead property taxes. These changes exclude school district levies from the increased exemption, meaning school funding would not be directly impacted by the homestead exemption increase.

Beyond homestead properties, the amendment also reduces the cap on annual assessment increases for non-homestead properties from 10% to 5%. This measure aims to provide relief to businesses and other property owners. New Florida residents who establish residency after January 1, 2027, would need to wait five years before qualifying for the increased homestead exemption, creating a phased approach for new residents.

The potential reduction in property tax revenue directly impacts the city's General Fund, which supports essential services like public safety, parks, and infrastructure maintenance. Emergency Medical Services, funded through a separate tax, also face potential adjustments. City Manager Frances Robustelli noted in her June 5, 2026, operational briefing that city staff are tracking the bill and its implications for how cities can use ad valorem tax revenue. The City Commission held a budget workshop on June 9, 2026, at 3:00 PM to discuss these impending budgetary changes and align with state direction.