Florida voters will decide Amendment 3 on November 3, 2026. The proposal would increase the homestead exemption for non-school property taxes, reduce the assessment-growth cap for certain non-homestead properties, and restrict how counties and municipalities use property-tax revenue. For Highlands County homeowners, the most useful question is straightforward: How much might I save? The answer depends on where you live, your property’s assessed value and the tax rates that apply to your home.
Two tax bills, two different results
To illustrate the potential effect, we compared two hypothetical homes with the same assessed value of $191,340. One is in unincorporated Highlands County; the other is inside the Town of Lake Placid. The calculations use the tax rates and assessments from 2025 bills and apply the proposed exemption amounts. They hold those rates and fixed assessments constant. They are illustrations, not official estimates of future bills.
Example 1: Home outside Lake Placid town limits
| Tax bill | 2025 baseline | 2027 scenario | 2028 scenario |
|---|---|---|---|
| County general tax | $1,068.70 | $314.18 | $0.00 |
| School taxes | $890.25 | $890.25 | $890.25 |
| Water management district | $25.75 | $7.57 | $0.00 |
| County garbage assessment | $472.72 | $472.72 | $472.72 |
| County fire assessment | $158.14 | $158.14 | $158.14 |
| Total bill | $2,615.56 | $1,842.86 | $1,521.11 |
| Annual savings | — | $772.70 | $1,094.45 |
Under these assumptions, the homeowner would save $772.70 in the 2027 scenario and $1,094.45 in the 2028 scenario.
Example 2: Home inside Lake Placid town limits
| Tax bill | 2025 baseline | 2027 scenario | 2028 scenario |
|---|---|---|---|
| County general tax | $1,068.70 | $314.18 | $0.00 |
| School taxes | $890.25 | $890.25 | $890.25 |
| Water management district | $25.75 | $7.57 | $0.00 |
| Town of Lake Placid tax | $513.26 | $150.89 | $0.00 |
| Town garbage assessment | $290.00 | $290.00 | $290.00 |
| County fire assessment | $193.29 | $193.29 | $193.29 |
| Total bill | $2,981.25 | $1,846.18 | $1,373.54 |
| Annual savings | — | $1,135.07 | $1,607.71 |
Under these assumptions, the homeowner inside Lake Placid would save $1,135.07 in the 2027 scenario and $1,607.71 in the 2028 scenario. The difference between the two examples reflects the additional town tax and the different fire and garbage assessments. A homeowner’s actual result will depend on the rates and assessments that apply to that property.
The proposed exemption does not apply to school district property taxes. The examples also retain the fire and garbage assessments shown on the original bills; they do not assume those charges disappear.
What could Highlands County government lose?
The homeowner savings are only one side of the proposal. Florida TaxWatch’s local-government projections estimate that Highlands County government could lose approximately $102.47 million in property-tax revenue over five fiscal years.
| Fiscal year | Projected revenue reduction |
|---|---|
| 2027–28 | $13,732,746 |
| 2028–29 | $20,099,547 |
| 2029–30 | $21,479,051 |
| 2030–31 | $22,884,608 |
| 2031–32 | $24,274,201 |
| Five-year total | $102,470,153 |
These are projections, not adopted budget cuts. They describe the estimated effect on county government, not the combined total for every municipality and special district in Highlands County.
What could the Town of Lake Placid lose?
Florida TaxWatch separately estimates that the Town of Lake Placid could lose approximately $901,425 in property-tax revenue over the same five-year period.
| Fiscal year | Projected revenue reduction |
|---|---|
| 2027–28 | $105,434 |
| 2028–29 | $178,809 |
| 2029–30 | $193,765 |
| 2030–31 | $206,182 |
| 2031–32 | $217,235 |
| Five-year total | $901,425 |
The projections do not identify specific Lake Placid services that would be reduced. They also do not mean the town must raise fees or taxes by a particular amount. The eventual effect on the town budget would depend on its finances and decisions by town officials.
What would Amendment 3 change?
The Florida Department of State’s amendment summary identifies several provisions:
- The homestead exemption for non-school property taxes would increase to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments afterward.
- People who were not Florida residents on December 31, 2026, would initially receive the existing exemption when they qualify for homestead status, with the increased exemption beginning in their fifth year, subject to the amendment’s terms and constitutional limits.
- The annual assessment-growth cap for non-homestead property would fall from 10% to 5%.
What should local voters consider?
The two sample bills show why a homeowner’s location and tax bill matter. Under the stated assumptions, the home outside town limits would save $772.70 in the 2027 scenario, while the home inside Lake Placid would save $1,135.07. In the 2028 scenario, the respective savings would be $1,094.45 and $1,607.71.
At the same time, the projections estimate substantial reductions in property-tax revenue for both Highlands County government and the Town of Lake Placid. Those figures do not establish which services would change, but they give local voters a basis for asking county and town officials how they would respond.
The decision comes down to weighing potential household tax savings against the possible financial effects on the local governments that provide services.
Florida Amendment 3: Top 10 Questions
1. How much would I actually save?
Our examples show $772.70 to $1,135.07 in 2027, and $1,094.45 to $1,607.71 in 2028. Your savings depend on your property and tax rates.
2. Does Amendment 3 eliminate property taxes?
No. The expanded exemption applies to non-school property taxes. School taxes and applicable assessments remain.
3. Who qualifies and how does five-year residency rule work?
The amendment distinguishes between people who maintained Florida residency by December 31, 2026, and those who did not. Newer residents generally receive the larger exemption in their fifth year, subject to the amendment’s terms.
4. Could savings be offset by higher fees or other taxes?
Possibly, but increases are not required by the amendment. Future local decisions cannot be predicted.
5. What about police, fire, EMS, roads, parks, libraries?
Amendment 3 does not guarantee current funding levels for these services. Florida law gives municipalities alternatives for ensuring police assistance, including maintaining two officers on duty or arranging assistance through the sheriff or another agency. The homestead exemption does not eliminate separate fire assessments. The effect on other local services would depend on the Lake Placid Town Council or Highlands County Board of County Commissioners during their budget processes.
6. Does it guarantee funding for public safety?
No. Amendment 3 does not guarantee current funding levels for police, EMS or other services supported by local government budgets. In Highlands County, the fire assessment shown on our sample tax bills is separate from the property-tax exemption and remains in those calculations. The amendment does not establish a minimum funding level for each public service.
7. How are renters affected?
Renters do not receive the homestead exemption directly. The amendment does not determine whether landlords will pass tax savings or costs on to tenants – that is left up to landlords.
8. Changes for businesses, rentals, second homes?
Today, the assessed value of a rental property, second home or business property can generally go up as much as 10% a year for non-school taxes. Amendment 3 would lower that limit to 5%. That could slow the growth of the property’s taxable value, but it doesn’t guarantee a smaller tax bill.
9. School funding?
The expanded exemption does not apply to school district property taxes.
10. What do yes/no votes mean and when?
Yes approves the amendment; no rejects it. At least 60% of voters voting on it must approve it. The election is November 3, 2026.
Sources
- Florida Department of State, Amendment 3: https://constitutionalinitiatives.dos.fl.gov/Home/InitDetail?account=10&seqnum=110
- Florida TaxWatch, Florida Property Tax Resource Center: https://floridataxwatch.org/wp-content/uploads/2026/09/Florida-Property-Tax-Resource-Center-standalone.html
- Florida Legislature, Office of Economic and Demographic Research: https://www.edr.state.fl.us/content/conferences/revenueimpact/
