Florida House Joint Resolution (HJR) 1-F, which voters will see as Amendment 3 on the November 2026 ballot, would reduce the taxable value of homestead property for non-school local property taxes. If approved, the amendment raises the homestead exemption in two phases beginning in 2027 and directs the Florida Legislature to create a future schedule for full elimination of non-school homestead property taxes.
Key Takeaways
- Florida HJR 1-F proposes a significant increase in homestead exemptions for non-school local property taxes.
- The amendment requires local governments to restrict property tax spending to defined core public services.
- Finance officers must model revenue scenarios to prepare for potential changes to property tax bases.
- The measure introduces a lower 5 percent assessment growth cap for commercial and rental properties.
- Successful implementation of the amendment depends on voter approval in the November 2026 general election.
What is Florida HJR 1-F (Amendment 3)?
HJR 1-F, titled “Save Our Homes from Excessive Property Taxes,” is a proposed amendment to the Florida Constitution. The Legislature passed it during a special session held June 1 through 3, 2026, and it will appear on the November 3, 2026, general election ballot, where it needs 60 percent approval to take effect. Because it’s a joint resolution, it goes straight to voters and isn’t subject to the Governor’s veto. A companion administration bill, SB 4-F, sets out how the changes would be carried out if voters approve them.
For county and municipal finance officers, the primary impacts of HJR 1-F involve two specific changes:
- An increased homestead exemption that reduces the local taxable property base
- A restrictive spending rule governing how the remaining property tax revenue may be allocated
Why Does HJR 1-F Look Different from Previous Florida Property Tax Legislation?
If you’ve been following Florida’s property tax debate throughout 2026, the numbers in HJR 1-F may look different from earlier proposals.
During the regular legislative session, HJR 203 proposed eliminating non-school homestead property taxes over ten years by increasing the homestead exemption in $100,000 increments. The House approved that measure, but it never cleared the Senate before the session ended.
During the June special session, lawmakers replaced that proposal with HJR 1-F. Instead of a gradual ten-year phase-out, the new amendment raises the homestead exemption to $150,000 in 2027 and $250,000 in 2028, while requiring the Legislature to create a schedule for full elimination of non-school homestead property taxes. That schedule would establish, through future legislation, how the remaining phase-out of non-school homestead property taxes would be implemented. This is why finance professionals who tracked the issue earlier in the year may have seen very different figures reported.
Proposed Changes to Florida Homestead Exemption Levels Under HJR 1-F
Amendment 3 increases the homestead exemption for all taxes other than school district taxes through a two-step implementation process. Beginning in 2027, the first $150,000 of a homestead’s assessed value would be exempt from non-school property taxes. In 2028, that exemption rises to $250,000, indexed to the Consumer Price Index (CPI) starting in 2029.
Here’s an example of what that looks like:
A homestead property assessed at $500,000 would have a taxable value of $350,000 in 2027 under the $150,000 exemption. In 2028, with the $250,000 exemption, the same property would carry a taxable value of $250,000 for non-school taxes.
Impact of the Florida Property Tax Amendment on Municipal and County Budgets
For many Florida counties, property taxes are the single largest source of local revenue, funding law enforcement, fire rescue, libraries, parks, and public works.
Because the election occurs in November 2026 and the provisions would take effect January 1, 2027, if passed, the change would land mid-year in the fiscal year already underway and shape the entire FY 2027-28 planning cycle that follows. That leaves finance directors planning for two possible outcomes at once: one where voters approve the amendment and the exemption changes begin phasing in, and one where it falls short and current rules hold. The timing, more than the outcome, is what makes this budget cycle unusual. A budget office is better positioned with a credible revenue number for both paths before the results come in, which puts more weight on revenue forecasting and scenario modeling than in a typical year.
The exemption is only part of what the amendment does. If approved, counties and municipalities would be required to spend property tax revenue only on a defined set of core public needs.
Core Public Services Eligible for Property Tax Funding Under HJR 1-F
The amendment lists the categories that property tax revenue may fund:
- Public safety, including law enforcement, fire service, and emergency medical service
- Education and public schools
- Infrastructure, including road and bridge construction and maintenance and stormwater control
- Natural resource projects, including flood control
- Local bonds consistent with these uses, plus debt service on existing obligations
- Retirement benefits for local government employees
- Operations and administration of county officers and municipal governing bodies, except expenditures prohibited by general law
Any public services falling outside these defined categories would need to be funded in some other way. For a budget officer, that turns the amendment into a question of both how much revenue comes in and how each remaining dollar is tracked and documented.
That work also overlaps with a second change arriving on the same date. HB 1329, a separate transparency law already signed and effective January 1, 2027, requires local governments to post more detailed budgets and model potential spending cuts. Whichever way the November vote goes, Florida finance teams are documenting and publishing their budget decisions in more detail starting that year.
How HJR 1-F Affects Assessment Caps for Commercial and Rental Properties
HJR 1-F also reduces the annual assessment growth cap for non-homestead property from 10 percent to 5 percent, starting January 1, 2027. That cap covers commercial real estate, second homes, and rental properties. The change slows how quickly those assessments can climb, which affects the revenue local governments can expect from the portion of the tax base that is not homesteaded.
When Does HJR 1-F Take Effect?
The amendment appears on the November 3, 2026, general election ballot and requires approval from at least 60 percent of voters. If it passes, most provisions take effect January 1, 2027, with the $150,000 exemption applying that year and the $250,000 exemption in 2028. If it falls short of 60 percent, current property tax rules stay in place.
What Can Finance Teams Do to Prepare for HJR 1-F Approval?
Even though the outcome won’t be known until after the November election, finance teams don’t have the luxury of waiting until January to begin planning. A few steps can help local governments prepare for a possible change to one of their largest revenue sources:
- Understand how dependent your budget is on homestead property taxes, so you know the size of the exposure.
- Begin modeling multiple revenue scenarios for FY 2027-28, one that assumes the amendment passes and one that assumes the current law holds.
- Look for opportunities to stabilize revenue from fees, permits, utilities, and other everyday collections.
- Evaluate whether revenue leakage exists today, such as delinquent payments or uncollected balances that add up over a year.
The first two steps focus on forecasting. The last two focus on protecting the revenue a local government already collects. When future property tax revenue is uncertain, maximizing the revenue your agency already collects from permits, utilities, licenses, and other fees becomes even more important.
It also helps to ask a few questions:
- How much of our general fund depends on homestead property taxes?
- Which services rely most heavily on that revenue?
- What would a 5, 10, or 15 percent decline in that revenue look like across a full budget cycle?
- Which other revenue streams could offset part of the loss?
- Do we have confidence in our current revenue forecasts?
This is where Euna Payments can help. When residents can pay the way that suits them, whether online, by phone, at a self-service kiosk, or in person, more of what your city or county is owed gets collected on time. That accessibility strengthens collection on the fees, utilities, and other everyday payments your budget depends on. Euna Payments also gives your finance team clearer, steadier visibility into those payments through its centralized reporting tool, Revenue Management, which supports more reliable revenue forecasting as you prepare for multiple budget scenarios.
Frequently Asked Questions
How does the proposed amendment change local government revenue?
The amendment impacts revenue by increasing homestead exemptions and limiting property tax spending to core public services. Understanding how Florida HJR 1-F affects local government is critical for budget planning, as it requires finance teams to model scenarios for both the approval and rejection of the proposed tax changes.
What is the timeline for implementing the property tax changes?
If voters approve the amendment on November 3, 2026, most provisions take effect on January 1, 2027. The homestead exemption would increase to $150,000 in 2027 and $250,000 in 2028, requiring immediate adjustments to local government revenue forecasting and long-term budget strategies for the upcoming fiscal years.
Which public services are eligible for property tax funding?
Property tax revenue remains restricted to core public needs under the amendment. Eligible expenditures include public safety, education, infrastructure, natural resources, debt service on existing obligations, local government employee retirement benefits, and the general operations and administration of county and municipal governing bodies, excluding any expenditures prohibited by general law.
How are commercial and rental properties affected by the amendment?
The amendment reduces the annual assessment growth cap for non-homestead properties, including commercial real estate, second homes, and rental properties, from 10 percent to 5 percent. This change, effective January 1, 2027, limits the growth of the taxable base for properties that do not qualify for the homestead exemption.
