June 5, 2026
By: Chris Carmody and Robert Stuart
BACKGROUND
On May 27, the Governor issued a proclamation convening the Florida Legislature in special session focused on property tax reform. The Legislature began its work on June 1 and concluded on the afternoon of June 2.
During the special session, both the House and Senate introduced two measures: one proposing an amendment to the Florida Constitution related to property taxes, and another implementing statutory and administrative changes to support the property tax system should the amendment be approved by Florida voters in November. Because the constitutional amendment was proposed by the Legislature, it required approval by at least 60% of the membership of each chamber, 72 votes in the House and 24 votes in the Senate, to be placed before voters in the General Election.
Result
Following committee hearings and amendments on June 1, both chambers took up the legislation on June 2.
The constitutional amendment, House Joint Resolution 1F (HJR 1F), was approved by votes of 75-26 in the House and 30-9 in the Senate, exceeding the constitutional threshold required for placement on the ballot.
The implementing legislation, Senate Bill 4F (SB 4F), was also amended and passed on June 2 by votes of 30-8 in the Senate and 75-27 in the House.
Constitutional amendments proposed and passed by the Legislature do not require the Governor's signature, so it will proceed directly to the November 2026 ballot, unless successfully challenged in court. SB 4F, however, is statutory legislation and must be presented to the Governor for approval or veto. The Governor is widely expected to sign the bill into law.
WHAT’S IN THE LEGISLATION?
Constitutional Amendment
The proposed amendment (HJR 1F) does four major things:
- Significantly increases the homestead exemption for existing Florida residents.
- Limits future assessment growth on non-homestead property, including commercial property.
- Creates a residency waiting period for new Florida residents before they receive the enhanced homestead exemption.
- Restricts how counties and municipalities may spend property-tax revenues.
(1) Homestead Exemption Increase: For all non-school ad valorem tax levies, existing Florida homesteads will receive an exemption of:
- $150,000 beginning January 1, 2027
- $250,000 beginning January 1, 2028
The amendment also indexes the $250,000 to the Consumer Price Index (CPI), beginning in 2029. Finally, it directs the Legislature to establish a path toward further expansion, potentially up to a complete exemption for non-school levies; a point which is already the subject of debate as to whether it is allowed constitutionally.
Real World Application: Trim notices in 2027 will reflect the increased $150,000 exemption on the assessed value of a homestead property. Thus, if a property has an assessed value of $500,000, the exemption will reduce the taxable value to $350,000. The trim notices in 2028 would reflect the increase to the $250,000 exemption, and thus, the same property (assuming the same assessed value of $500,000) would have a taxable value of $250,000.
(2) Non-Homestead Property Assessment Cap: The amendment reduces annual assessment growth limits on non-homestead property. Current constitutional limits generally allow up to 10% annual assessment growth. Beginning January 1, 2027, the cap would be reduced to 5% annually for:
- Commercial property
- Industrial property
- Office property
- Most non-homestead real estate
- Multifamily property not otherwise protected
This does reduce the maximum annual increase to assessed value. However, this does not restrict a local government from increasing the millage rate on which to tax the above properties.
(3) Five-Year Residency Requirement for New Florida Residents: Any homestead property owner establishing Florida residency after January 1, 2027, will initially receive only the exemption allowable prior to the implementation of the new amendment, if approved by the voters ($50,000). The property owner must maintain Florida residency for five years before receiving the enhanced exemption. Counties and municipalities may shorten that waiting period beginning in 2030 for critical local needs.
(4) Local Government Spending Restrictions: The amendment adds constitutional language limiting county and municipal use of ad valorem taxes to specified purposes, including:
- Public safety, including law enforcement, fire service, and emergency medical service
- Education and public schools
- Infrastructure, including expenditures on road and bridge construction and maintenance and stormwater control
- Flood control and natural-resource projects
- Bond obligations
- Pension obligations
- Core governmental administration
Limitations: The list above is finite. Sometimes legislation provides “including, but not limited to” language, allowing for flexibility through interpretation. The above list does not include wording to allow for expansion and has very little room for interpretation. There is some possible flexibility in the wording for core governmental administration which is as follows:
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.
On one hand, this wording can be interpreted as allowing administrative costs for counties and cities. On the other hand, there is a school of thought that the wording is just general enough to allow for anything that a county or city board approves, so long as it is not otherwise prohibited by general law. This issue will likely be subject to a court’s determination. If the core administrative costs interpretation is the interpreted view, the following services would not be allowed uses of ad valorem taxes:
- Economic development initiatives
- Parks and recreation programs
- Social services like homeless shelters or funding local charities that provide those safety net services
- Community events (parades, etc.)
Additional Local Exemptions: Interestingly, the amendment does allow counties, municipalities, and certain special districts to increase homestead exemptions even further under procedures established by law.
Didn’t Make the Cut: The original version of the legislation provided by the Governor’s office included the following proposals that were not ultimately included:
(1) School Taxes Included in the Exemption: If included in the proposal and passed by the voters, this would have created a multi-billion-dollar hole in the state’s required local effort budget. Ultimately, it was amended out.
- On one hand: School districts were held harmless.
- On the other hand: The perceived tax savings to a homestead property owner would be much less with school taxes still included.
(2) Trust Fund for Local Government Core Services Grants to Support Implementation: This provision faced opposition immediately as a potential fund for the state legislative and executive branches to hold political sway over fiscally constrained local governments. Further, the State Legislature itself questioned how this would be funded and who would be the beneficiaries.
- On one hand: This fund, if codified in the Florida Constitution, could have become a political wedge pitting cities and counties against each other for funds.
- On the other hand: This fund was originally proposed as a way to protect fiscally constrained counties from loss of revenue created by the amendment. Without this fund, many counties will likely become insolvent under the proposal, without any immediate source of relief.
November Ballot: The language will appear on the November 2026 ballot, requiring at least 60% approval by voters. If approved, it would take effect January 1, 2027.
The Other Bill (Administrative Changes)
Senate Bill 4F (Property Tax Administration) is the statutory implementation bill that accompanies House Joint Resolution 1F (Save Our Homes from Excessive Property Taxes). While HJR 1F proposes constitutional changes that voters would decide in November 2026, SB 4F modifies Florida statutes to administer, implement, and transition to the new system if voters approve the amendment.
Rollback Rate Adjustment: The bill revises the calculation of the maximum millage rate that a local government can levy with a simple majority vote. The revised calculation may result in a lower millage rate for some jurisdictions, compared to the current methodology, which allows for an annual adjustment to the rolled-back rate based on changes in per capita Florida personal income. Specifically, the bill generally limits the maximum levy to the rolled-back rate with no adjustment for changes in per capita Florida personal income. The bill allows rates in excess of the rolled-back rate as follows:
- A rate no more than 110% of the rolled-back rate can be levied if approved by a two-thirds vote of the governing body.
- A rate in excess of 110% of the rolled back rate can be levied if approved unanimously by the governing body (or by a three-fourths vote if such body has nine or more members) or if approved in a referendum.
Impact of Change: This will likely decrease most local governments’ base millage rate for this coming year, given the rollback does not account for personal income growth.
Ballot Summary Word Count: The bill provides an exception to the existing 75-word limitation on ballot summary statements for a joint resolution proposing an amendment or a revision to Article VII, ss. 4, 6, and 9 of the Florida Constitution, which is to be submitted to the electors at the general election to be held on November 3, 2026. In other words, this constitutional amendment can have more words in the summary.
Didn’t Make the Cut: The original version of the legislation provided by the Governor’s office included the following proposals that were not ultimately included:
- Requirements for property appraisers to send notices to property taxpayers regarding proposed constitutional amendments or revisions related to property taxes and specifying requirements for the contents and formatting of such notices.
- Requirements for the Department of Revenue to establish a website relating to proposed constitutional amendments or revisions related to property taxes.
Questions?
Contact GrayRobinson Shareholder Chris Carmody, Senior Government Affairs Advisor Robert Stuart, or a member of the Government Affairs and Lobbying Section.