Amendment 3: Renters Face Higher Property Taxes, Report Warns

A proposed constitutional amendment, Amendment 3, could increase property tax costs for Florida renters, including those in Palm Beach County, according to a new report from the Florida Housing Coalition.

The amendment, which will appear on the Nov. 3 ballot, aims to expand the homestead exemption for homeowners. However, tax-policy analyst Jared Walczak's report estimates that local governments might raise property tax rates to offset revenue losses. This could lead to higher annual housing costs for renters.

By 2028, renters could see an average annual property tax increase of $406 per apartment and $1,081 per single-family rental home, according to the report. Landlords typically pass these costs onto tenants through increased rents, affecting communities from Boca Raton to Jupiter and West Palm Beach.

Amendment 3 proposes to increase the homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with adjustments for inflation. This exemption applies only to primary residences; rental properties do not qualify.

The report models that local governments could also lower the annual cap on increases in assessed value for non-homestead properties, including rentals, from 10% to 5%. However, the report concludes this benefit would be outweighed by increased tax costs for renters.

Supporters, including Florida Realtors, argue the amendment offers much-needed relief from rising housing costs. "Everywhere you look, people are feeling the pinch of affordability, and Amendment 3 has the opportunity to return more money back to the taxpayer," said Margy Grant of Florida Realtors.

Conversely, organizations like the Florida Sheriffs Association have voiced concerns about potential reductions in funding for public safety services. Miami-Dade Sheriff Rosie Cordero-Stutz stated, "Tax relief and public safety are not competing priorities."

Gov. Ron DeSantis supports the amendment and plans to work with lawmakers on state grants to help maintain essential services.