Property Tax Amendment 3

What it means for Orange County.

Proposed Property Tax Amendment 3

The Florida Legislator voted to place a proposed constitutional amendment on the November 2026 ballot. If approved by at least 60% of voters, the amendment would increase homestead exemptions for homeowners who use their property as a primary residence in Florida. Below is a summary. For more information, read the full legislation HJR 1F (Joint Resolution) and SB 4F (General Bill).

Homestead Exemption

Assessment Cap

Residency

Inflation

Millage

Category Lock

New Homestead Exemption

Creates a new homestead exemption of $150,000 in 2027 and $250,000 in 2028, applicable to all levies excluding school districts.

Non-homestead Assessment Cap

Reduces the assessment cap on non-homestead properties (e.g. second homes and commercial real estate) from 10% to 5%.

Residency Requirement

Requires a five-year Florida residency period before new residents qualify for the expanded exemption.

Automatic Inflation Growth

Grows both exemptions automatically with inflation each year.

Millage Rate Ceiling Narrowed

Narrows the default maximum millage rate to the roll-back millage rate. A rate of not more than 110 percent of the rolled-back rate may be adopted if approved by a two-thirds vote of the membership of the governing body. A rate in excess of 110 percent may be adopted if approved by a unanimous vote of the membership of the governing body.

Constitutional Category Lock

Restricts county and municipal ad valorem to a closed list of seven categories:

a. Provide for public safety, including law enforcement, fire service, and emergency medical service;
b. Provide funding for education and public schools;
c. Finance or refinance infrastructure, including expenditures on road and bridge construction and maintenance and stormwater control;
d. Finance or refinance natural resource projects, including flood control measures;
e. Issue local bonds and to make debt service payments for existing obligations;
f. Meet obligations for retirement benefits of local government employees;
g. Fund the operations and administration of county officers and commissioners established under Article VIII and municipalities, and the expenditures approved by such county officers or county or municipal governing bodies, except those expenditures prohibited by general law.

Estimated Impact

Based on Orange County's current population and homeowner data, the following provides an estimate of the financial impact of exempt homestead property tax collection.

Year 1 (2027): $150,000 Homestead Exemption would create an estimated reduction of $165,000,000
Year 2 (2028): $250,000 Homestead Exemption would create an estimated reduction of $275,000,000

Countywide Tax Reductions

Year 1 (2027)

-$89,000,000

Year 2 (2028)

-$157,000,000

Fire Tax Reductions

Year 1 (2027)

-$46,000,000

Year 2 (2028)

-$72,000,000

Sheriff Tax Reductions

Year 1 (2027)

-$30,000,000

Year 2 (2028)

-$46,000,000

Dollar Breakdown

Reductions in property tax collections affect the amount of funds that can be invested into county services. The following shows the county's current allocation of property tax revenues.

Tax - Dollar639180007276015292

Percentage	Dollar Amount	Funding Type	Details
51%	$1,195,763,797	Public Safety	Fire Rescue: Communications (911), Logistics, Office of Emergency Management, Operations, Planning and Technical Services Corrections: Community Corrections, Inmate Services, Security Operations, Support Operations, Support Services Sheriff: Operational Services Bureau, Uniform Patrol, Criminal Investigations Special Operations, High Risk Incident Command
19%	$432,714,361	Community Care and Affordable Housing	Planning, Environmental, and Development Services: Environmental Protection, Housing, Neighborhood Services, Planning, Zoning Community and Family Services: Citizen Resources and Outreach, Citizens Commission for Children, Community Action (Community Centers), Cooperative Extension (UF/IFAS), Head Start, Mental Health and Homelessness, Parks and Recreation, Regional History Center, Youth and Family Services Health Services: Animal Services, Corrections Health Services, Drug Free Office, EMS, Medical Clinic, Mosquito Control, Office of the Medical Examiner
8%	$183,018,635	Internal Operations	Administrative Services: Business Development, Capital Projects, Facilities, Procurement, Real Estate Management Administration and Fiscal: Human Resources, Information Systems Services, Office of Management and Budget, Office of Professional Standards
7%	$158,415,399	Other Countywide Services	Interfund Transfers: Internal movement of resources between different funds within an organization or government entity Other Offices: Arts & Cultural Affairs, Charter Review, County Administrator’s Office, County Attorney’s Office, East Central Florida Regional Planning, Economic, Trade and Tourism Development, Innovation and Emerging Technologies, Legislative Affairs, MetroPlan, Non-Departmental (CRAs, Other Post Employment Benefits Long-Term Liabilities, Other Misc. Expenditures), Office of Communications, Sustainability and Resilience Office
5%	$116,389,928	Transportation (Transit Only)	LYNX: Operation of buses and bus shelters SunRail: Operations of regional commuter rail
5%	$126,840,663	Constitutional Offices (Excludes Sheriff)	Constitutional Offices: Board of County Commissioners, Comptroller, Court Agencies, Mayor, Property Appraiser, Public Defender, Supervisor of Elections, Tax Collector
5%	$124,703,073	Reserves	Reserves: Used to provide a contingency for unanticipated expenses, such as natural disasters, emergencies, and other unanticipated events. Reserves are also used to provide cash flow until property tax revenue is received.

Frequently Asked Questions

What is a homestead property?

A homestead property is a homeowner's primary residence that qualifies for Florida's homestead exemption and Save Our Homes benefits. Vacation homes, rental properties, and investment properties generally do not qualify.

How much would the homestead exemption increase?

The current homestead exemption is typically $50,000; the proposed amendment would increase the homestead exemption from the typical $50,000 to $250,000 over two years. It would also direct the Florida Legislature to establish a schedule for fully eliminating non-school property taxes on homestead properties.

What would the impacts of this proposal be on Orange County?

While the proposal would reduce property taxes for qualifying homeowners, it would also significantly reduce a major source of funding for local government services. Residents would continue to expect the same level of service, but Orange County would have fewer resources available to meet the growing demand for public safety, infrastructure, and other essential services.

How much revenue would Orange County lose if voters approve the amendment?

Orange County estimates the amendment would reduce County property tax revenue by approximately $165 million in 2027 and $275 million in 2028. These projected reductions would affect the County's ability to fund services, maintain infrastructure, and address the needs of a growing community.

How could residents experience the impact?

Property taxes help fund services residents rely on every day, including public safety, roads, parks, libraries, stormwater infrastructure, and environmental programs. Revenue reductions of this scale could require difficult decisions regarding service levels, capital projects, and future investments.

How could this affect public safety services such as the Sheriff's Office, Fire Rescue, and Corrections?

Public safety represents one of Orange County's largest budget commitments. While no decisions have been made, a significant reduction in revenue could make it more challenging to maintain staffing levels, expand services to meet population growth, and invest in future public safety needs.

Why should residents who are not homeowners care about this proposal?

The proposal could affect more than homeowners. Renters, businesses, and visitors also rely on County services and infrastructure. Because commercial and rental properties would not receive the same benefit, property owners could face higher tax burdens, which may be passed along to tenants through higher rents.

Can Orange County replace the lost revenue with another tax?

Local governments have limited authority under Florida law to create new taxes or increase existing revenues. There is no single revenue source currently available that would fully replace a loss of this magnitude, meaning County leaders would likely need to consider a combination of spending reductions, fees, and other legally authorized revenue options.

Does the State plan to replace the revenue Orange County would lose?

The legislation currently under consideration does not include a recurring source of state funding sufficient to offset Orange County's projected long-term revenue losses. Local governments would therefore remain responsible for addressing any resulting budget shortfalls.

If the amendment passes, would I still pay property taxes as a homeowner?

Yes. The proposed exemption applies only to non-school property taxes. For many homeowners, school taxes represent the largest portion of the annual property tax bill. Even with a larger homestead exemption, most homeowners would still receive a property tax bill and remain subject to the same collection requirements.

Is Orange County telling residents how to vote on the amendment?

No. Orange County Government's intent is to provide factual information so residents can make informed decisions. State law prohibits local governments from using public resources to advocate for or against a ballot measure. Individual elected officials, however, may express their personal views.

Contact Us

Email: mayor@ocfl.net
Phone: (407) 836-7370

Media Inquiries
PIO@ocfl.net

All e-mail sent to this address becomes part of Orange County public record. Comments received by our e-mail subsystem can be read by anyone who requests that privilege. In compliance with "Government in the Sunshine" laws, Orange County Government must make available, at request, any and all information not deemed a threat to the security of law enforcement agencies and personnel.