Florida approves sweeping property-tax breaks

Key Points:

• Florida voters approved Amendment 3 with 62% support, expanding the homestead exemption to shield the first $150,000 of a home's assessed value from most local property taxes starting in 2027, increasing to $250,000 in 2028 and adjusting for inflation thereafter.
• The amendment offers significant savings for homeowners, with estimates suggesting median savings of around $1,800 annually by 2028, though out-of-state residents face a five-year waiting period before qualifying for the expanded exemption.
• The five-year delay for new residents may encourage some wealthy buyers, particularly from states like New York and California, to accelerate their relocation plans to Florida, where the luxury real estate market is already responding positively.
• Amendment 3 also reduces the annual cap on assessed value increases for second homes, rental properties, and commercial buildings from 10% to 5%, potentially slowing property tax growth on these properties despite rising real estate values.
• The measure aligns with Florida's ongoing appeal to affluent individuals and financial institutions, as the state continues to attract wealth-management firms and high-net-worth residents seeking tax advantages and favorable living conditions.