Newsletter

Welcome to the first edition of The Closing Brief from Bonita Title, a monthly newsletter designed to provide helpful insight into real estate, closing issues, and the Southwest Florida market. Our goal is simple: to be a trusted resource and guide in the ever-changing world of real estate.

In this issue, we’re taking a closer look at proposed Amendment 3 and what it could mean for Florida real estate professionals.

Amendment 3: What Florida Real Estate Professionals Should Know

The Florida Legislature approved a proposed constitutional amendment that will appear as Amendment 3 on the November 3, 2026 general-election ballot. The amendment must receive at least 60% of the votes cast on the measure to pass. If approved, the changes would take effect January 1, 2027 and would first appear on the August 2027 TRIM notices and November 2027 tax bills.

If approved, Amendment 3 would increase Florida’s homestead exemption for non-school property taxes to the first $150,000 of assessed value in 2027 and the first $250,000 in 2028. The $250,000 amount would then be adjusted annually for inflation.

The proposal would also reduce the existing annual cap on increases in the assessed value of non-homestead property, for non-school tax purposes, from 10% to 5%, beginning with the January 1, 2027 assessment. Lastly, there are additional provisions addressing how certain local governments may increase homestead exemptions and how counties and municipalities may use ad valorem revenue.

Here are four key things to know about Amendment 3:

1. The homestead exemption would increase.

If approved, the exemption for non-school taxes would increase to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning thereafter.

2. December 31, 2026 is an important residency date.

People who are not Florida residents by December 31, 2026 would initially receive a $50,000 non-school homestead exemption when they qualify. The increased exemption would generally begin with their fifth year of exemption.

3. Property taxes would not disappear.

The expanded exemption applies to non-school property taxes. It would not eliminate every component of a homeowner’s property tax bill.

4. Non-homestead property would also be affected.

The proposal would reduce the annual cap on increases in assessed value for non-homestead property from 10% to 5%.

Amendment 3 Questions and Answers

This is a proposed constitutional amendment, not current law. Florida voters must approve it before the changes described below take effect. The answers are based on the current version of CS/HJR 1-F as of September 23, 2026 and may be updated or changed.

Source: proposed Article VII, Section 6

Source: Florida Statutes, Section 196.031

Who would receive the expanded homestead exemption?

Permanent Florida residents as of December 31, 2026 would be eligible for the full expanded benefit when they otherwise qualify for homestead. Someone who is not a permanent Florida resident as of December 31, 2026 would initially receive a $50,000 non-school homestead exemption upon qualifying. The expanded exemption would generally begin with that homeowner’s fifth year of exemption, subject to the proposal’s terms and applicable constitutional limits.

What happens for folks moving into the area beginning in 2027 or who don’t qualify for homestead until 2027 or after?

EXAMPLE: Customer A moves to Florida, buys a home, and establishes Florida residency at said home on June 1, 2030. When does the expanded homestead exemption kick in?

ANSWER: The expanded exemption would normally begin with your 2035 property tax year, assuming Customer A files for homestead beginning 2031.

EXPLANATION: Because Customer A moves on June 1, 2030, Customer A misses the January 1, 2030 homestead qualification date. His or her first eligible year would be 2031 under Florida’s January 1 rule. The proposal gives someone who was not a Florida permanent resident on December 31, 2026 a $50,000 exemption for non-school taxes at first, then moves them to the expanded exemption beginning with the fifth year of exemption. Proposal, Article VII, § 6(a)(1)b; Fla. Stat. § 196.031.

What would the amendment change for existing Florida residents?

For qualifying homeowners who maintained a permanent residence in Florida as of December 31, 2026, the proposal would raise the homestead exemption for non-school property taxes to $150,000 beginning in 2027 and $250,000 beginning in 2028, subject to the home’s assessed value. The proposed $250,000 amount would subsequently be adjusted for inflation.

Would a new Florida resident receive the larger exemption right away?

Generally, no. Refer to the specific answer above for a detailed example. Someone who had not maintained a permanent residence in Florida as of December 31, 2026 would initially qualify for a $50,000 non-school homestead exemption. Under the proposal, the larger exemption would begin in that person’s fifth year of exemption. Eligibility still depends on meeting the requirements for a Florida homestead.

Would the amendment eliminate my property tax bill?

No. The larger proposed exemption would apply to taxes other than school district taxes. The proposal retains a $25,000 exemption for school district taxes. It also does not eliminate assessments for special benefits, which may appear on a property tax bill. The amount of any savings would depend on your assessed value and the tax rates that apply to your property.

If I buy a Florida home during the year, do I receive the homestead exemption immediately?

Generally, no. Florida homestead qualification is determined based on ownership and permanent residence on January 1 of the tax year. If you buy and move into a home in June, the following year would ordinarily be your first year of eligibility. Apply through the property appraiser in the county where the home is located.

Does Amendment 3 change Save Our Homes or portability?

No. The 3% (or CPI) Save Our Homes cap and portability of up to $500,000 would stay the same.

What about non-homestead property?

For non-homestead property, Amendment 3 would reduce the annual cap on increases in assessed value from 10% to 5% for non-school property taxes.

This cap applies to assessed value—not necessarily the property’s market value—and it would not prevent a property from being reassessed at just value following a qualifying change of ownership. School-tax assessments would also remain outside the proposed 5% limitation.

Market Update

August 2026 – Lee & Collier County

August sales activity improved year over year across all four property categories, while pricing was mixed. Lee County single-family prices were up modestly, while Lee townhouse and condo and Collier single-family median prices declined slightly. The data reinforces the importance of looking at property type and location rather than treating Southwest Florida as one market.

Source: Florida Realtors market data.

Source: Florida Realtors — https://www.floridarealtors.org/newsroom/market-data

Official source links

Florida Department of State — official Amendment 3 title and summary: https://constitutionalinitiatives.dos.fl.gov/Home/InitDetail?account=10&seqnum=110

Florida Department of State — full text of CS/HJR 1F: https://initiativepetitions.dos.fl.gov/InitiativeForms/FulltextPDF/10-110.pdf

Florida House final bill analysis — CS/HJR 1F: https://www.flsenate.gov/Session/Bill/2026F/HJR1/Analyses/h0001z.SAC.PDF

Florida Division of Elections — 2026 election dates: https://dos.fl.gov/elections/for-voters/election-dates/

Publication note

Bonita Title, Inc. is a title and escrow company. This page is for general information only and is based on the proposed amendment as written. It is not legal or tax advice, and it does not determine whether any person or property qualifies for an exemption. The proposal has not become law and may not be approved. For advice about your circumstances, consult a Florida attorney or tax professional. For exemption eligibility and application requirements, contact the property appraiser in the county where the property is located.

Questions about an upcoming closing? Call Bonita Title at (239) 948-2109.