Florida voters have approved Amendment 3, a measure that will significantly reduce property taxes for many homeowners while cutting revenue for local governmental services.
The News Service of Florida reported that it received 62% support. It needed at least 60% of the vote.
Separately, Amendment 1 failed. It would have required the state to put more money in the budget stabilization fund, also called a rainy-day fund. Amendment 2, which would've exempted farmers’ agricultural equipment from property taxes, also failed.
ALSO READ: Florida’s Amendment 3 could slash property taxes — and reshape local services
The Republican-controlled Legislature put Amendment 3 on the ballot, but not every Republican has been in favor of it. While he voted to put it before voters, Senate President Ben Albritton ultimately advocated against the amendment. He said it would hurt already resource-strapped rural communities.
Local governments and Democrats have heavily criticized the proposal.
A state economic analysis predicted local governments could lose nearly $5 billion from Amendment 3's passage. Those losses would rise to approach $9 billion the next year, with an eventual recurring impact of nearly $12 billion.
The Republican Party of Florida encouraged a yes vote. So did Gov. Ron DeSantis, though he said it didn’t go far enough.
ALSO READ: DeSantis and several GOP candidates push for the passage of Amendment 3
The tax reduction will affect homestead exemptions on the property taxes that don't go toward schools.
By next year, most homeowners will not have to pay those taxes on the first $150,000 of their house's assessed value. That's roughly three times what it is now. The current exemption is about $50,000, but the first $25,000 exempts all property taxes, including those going to school districts.
The exemption goes up to $250,000 the following year and can be adjusted for inflation later.
Amendment 3 also affects non-homestead properties, like businesses and rental units. Right now, the taxable value of those properties can rise by as much as 10% a year. The amendment will cut that in half.
Those who move to Florida starting next year will have to live in the state for five years before qualifying for the new homestead exemption.
