Florida Local Governments Brace for Property Tax Revenue Losses
Florida officials are evaluating budget cuts and fee increases after voters passed Amendment 3, which expands homestead property tax exemptions starting in 2027.
Florida voters approved Amendment 3 with 62% of the vote, expanding the homestead property tax exemption to $150,000 in 2027 and $250,000 in 2028. The measure has triggered immediate fiscal concerns across Southwest Florida, where local governments are projecting significant losses in ad valorem property tax revenue.
Ron DeSantis, Governor of Florida, announced he will call a special legislative session to rewrite the state's property tax laws and develop an implementation plan before January 1. At the local level, the City of Cape Coral faces a projected $31.1 million loss, while Marco Island expects to lose $12 million over five years. The Town of Fort Myers Beach has already raised parking meter rates from $6 to $7 per hour to offset a projected $294,000 shortfall.
In Lee County, officials are weighing personnel cuts and increased fees. Lee County Property Appraiser Matt Caldwell noted that while public safety funding should remain intact, nonessential services such as libraries, parks, and boat ramps may face reductions. Sheriff Carmine Marceno expressed concern over the impact on law enforcement budgets, noting that 80% of his funding covers salaries and benefits. Incoming Lee County Board of County Commissioners Chair David Mulicka warned that the county must make hard decisions regarding priorities as it learns to live on less money.
