Florida’s Amendment 3
To ensure our members have clear, factual information about Amendment 3 and its potential effects on Sarasota’s business environment, the Chamber has prepared the following fact sheet and position statement.
Florida Amendment 3: Property Tax Facts, Impacts & Resources
An important part of our advocacy efforts is helping our members, business leaders and community stay informed about policy issues that may impact our region.
This resource page provides nonpartisan, educational information about Amendment 3 and the proposed changes to Florida’s property tax system. Here, you’ll find an overview of the proposal, official ballot language, helpful resources and information about potential impacts on businesses, local governments, residents and the greater Sarasota community.
Our goal is to provide the information and perspectives needed to better understand the proposal and its potential short- and long-term implications for our region, empowering voters to stay informed and make their own decisions.
For questions or additional information, please contact Marlon Brown, Director of Government Affairs.
Voting Day is November 3, 2026
What is Amendment 3?
Amendment 3 is a proposed amendment to the Florida Constitution that would change how homestead and non-homestead properties are treated for property tax purposes. If approved by voters, the amendment would increase the homestead exemption for certain property taxes and lower the annual assessment-growth cap for non-homestead properties.
The measure could reduce property taxes for many property owners while also reducing the property-tax revenue that counties, municipalities and certain special districts would otherwise collect. How individual taxpayers and local governments are affected will vary.
Amendment 3 would increase Florida’s homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028, with future increases tied to inflation. It would also allow counties, municipalities, and—subject to voter approval—special districts to increase exemptions further, up to the property’s full assessed value.
The amendment would also lower the annual assessment-growth cap on non-homestead property from 10% to 5% and place limits on how counties and municipalities may use property-tax revenue, generally prioritizing public safety, education, infrastructure, natural resources, debt service, employee retirement benefits, and government operations. New Florida residents after December 31, 2026, would phase into the increased homestead exemption beginning in their fifth year of eligibility. The amendment would take effect January 1, 2027.
This summary is provided for informational purposes only. Voters should review the official ballot language and full constitutional amendment before voting.
What Would Change?
ISSUE
CURRENT
UNDER AMENDMENT 3
Homestead exemption
$50,000
$150,000 in 2027; $250,000 in 2028 for non-school levies, then adjusted for inflation
Non-homestead assessment cap
10% annually
5% annually
School taxes
Varies by municipality
Increased homestead exemption does not apply to school levies
Effective date
_
January 1, 2027
What Could This Mean for You?
Below are some potential considerations for Sarasota County/City business & commercial property owners, homeowners, renters, and local governments to make when considering their vote on Amendment 3.
Businesses & Commercial Property Owners
- Non-homestead property would receive a lower annual assessment-growth cap, declining from 10% to 5%.
- This could provide greater predictability or slower growth in taxable assessments for certain commercial properties.
- At the same time, businesses should consider how local governments might respond to changes in property-tax revenue.
- Potential responses could include changes to millage rates, fees, assessments, spending or service levels, subject to applicable law and local decisions.
Homeowners
- Larger homestead exemptions could reduce non-school property taxes for qualifying homeowners.
- The amount of savings would vary based on assessed value, taxing jurisdiction and millage rates.
- School district property taxes would not receive the increased exemption.
- Future decisions by local governments could affect the ultimate impact on taxpayers, including millage rates and cutting of public services.
Renters
- Renters do not directly receive a homestead exemption on rental property, but changes in property taxation can affect the economics of rental properties.
- A lower non-homestead assessment cap could benefit owners of some rental properties, while broader changes in local government revenues or taxes/fees could also indirectly affect renters.
What Are People Saying? Arguments Being Made About Amendment 3
As voters consider Amendment 3, organizations, elected officials, local governments, business groups, and other stakeholders have raised arguments both supporting and opposing the proposal. The following summarizes some of the most common arguments being made publicly.
Inclusion does not indicate endorsement by the Greater Sarasota Chamber of Commerce.
Potential Benefits & Considerations
Why This Matters to Sarasota County
The greater Sarasota region is home to a diverse mix of businesses, residents, local governments and public agencies, each with unique economic conditions, service needs and tax bases.
Changes to Florida’s property tax system could affect communities across our region in different ways.
For businesses, the potential impact extends beyond a property tax bill. Local revenues help support infrastructure, public safety, transportation, parks, economic development and other essential services that contribute to a strong business environment and quality of life.
The Greater Sarasota Chamber of Commerce encourages voters and business leaders to consider both the direct tax implications of Amendment 3 and its potential long-term effects on the communities where we live, work and do business.
Where Do Your Property Taxes Go?
For FY2026, Sarasota County and the City of Sarasota property-tax revenues were allocated across countywide and city government services. The county and city also identified property taxes as one of the major revenue sources.
Did You Know? Property Taxes help fund services that support Sarasota County & City of Sarasota residents and economy, including:
Questions Businesses Should Be Asking
- How could the lower non-homestead assessment cap affect my business property?
- Could the impacts differ between businesses that own and lease their property?
- How much of my municipality's budget currently comes from property taxes?
- Which local services rely most heavily on property-tax revenue?
- How might local governments respond if property-tax revenue declines?
- Could other taxes, fees or assessments change?
- What could this mean for infrastructure and transportation investment?
- How could the amendment affect housing affordability and workforce availability?
Frequently Asked Questions
Resource Library
Greater Sarasota Chamber of Commerce Amendment 3 Position
When Florida voters go to the polls this November, they will decide on Amendment 3—a complex package of property-tax changes with significant consequences for homeowners, businesses, local communities, and community service organizations across our state.
The Greater Sarasota Chamber agrees that Florida's property-tax system deserves serious examination. Homeowners are feeling the pressure of rising housing costs and taxes. Those concerns should not be dismissed.
However, while the Greater Sarasota Chamber of Commerce supports lower taxes and a lower tax burden, it must result from thoughtful property-tax reform and meaningful efforts to address affordability in Florida. But we also believe major changes to Florida's tax structure should be carefully analyzed, fiscally responsible and transparent about who ultimately pays the bill.
That is where we have significant concerns with Amendment 3.
This is not a partisan issue. It is a business and fiscal issue.
Amendment 3 would substantially reduce property-tax revenues available to Florida's cities and counties. Florida Chamber of Commerce analysis estimates a statewide revenue reduction of approximately $5 billion in FY 2027-28, growing to nearly $8.8 billion the following year and an estimated recurring impact of approximately $11.9 billion annually. Opponents of the amendment estimate the cumulative impact could eventually reach $34 billion. Those are significant numbers—and reducing a source of revenue does not eliminate the cost of providing services. Essential services must be funded.
If revenues decline substantially, local governments will face choices about reducing expenditures and services for projects and programs such as The Bay, the Environmentally Sensitive Lands Protection Program, homelessness response, the Legacy Trail Extension and mosquito control; increasing fees or assessments for Emergency Medical Services (EMS) and summer camps for kids; adjusting millage rates where legally permitted to generate lost revenue or finding revenue elsewhere.
Our concern is that the burden could ultimately shift to Florida's business community.
That could mean increased costs for commercial property owners, costs passed along to tenants through higher rents, increased prices for consumers, or additional pressure on small businesses already navigating rising labor, housing, and operating costs. Ultimately the business’s customers will bear the cost of increased products and services.
Amendment 3 does include a provision reducing the annual assessment-growth cap on non-homestead property from 10% to 5%, which could benefit commercial and rental property owners. But that provision does not answer the larger fiscal question: How will Florida communities address the billions of dollars in reduced property-tax revenue created by the amendment?
For Sarasota, this is not an abstract issue. Our community's continued success depends upon maintaining the infrastructure, quality of life and public services provided by such entities as Sarasota Memorial Hospital, the City of Sarasota, North Port, Venice, and Longboat Key, which allow businesses to grow, attract employees and invest here.
We are also not alone in raising these concerns. Organizations across Florida have raised concerns or expressed opposition regarding Amendment 3 and its potential fiscal consequences —including:
Florida TaxWatch has argued that property-tax reform of this magnitude deserves a more comprehensive examination and has pointed to Florida's Taxation and Budget Reform Commission, which convenes in 2027, as an appropriate venue for that work. Public-safety organizations have raised concerns about the potential effect on the resources available to provide essential services.
But property tax relief should actually solve a problem—not simply moving the bill from one taxpayer to another.
Florida can pursue meaningful property tax reform while protecting homeowners, businesses, essential services, and our state's economic competitiveness. We believe that work should be comprehensive, transparent, and grounded in sound fiscal policy.
We are also asking our member businesses to help educate their teams about Amendment 3.
Employers are trusted sources of information about issues that can affect their businesses, their employees, and our local economy. We encourage our members to share the Chamber's information and analysis with their employees, talk about the potential business and community impacts, and encourage their teams to learn more about the amendment before casting their ballots.
With more than 1,500 member businesses representing more than 60,000 employees across our region, our collective reach is significant. An informed business community—and an informed workforce—strengthens Sarasota.
For the Greater Sarasota Chamber, our concern with Amendment 3 comes down to a straightforward question:
If billions of dollars are removed from local government revenues, who ultimately pays for the services our communities still need?
Florida's businesses—and the people they employ—deserve a clear answer to that question.
Amendment 3 is the wrong approach to property-tax reform. The Sarasota Chamber therefore urges our members, businesses, and community to vote NO and consider the amendment’s long-term effects on the business community and local government services.