Homestead Deduction Change moves to the November Ballot

In the waning days of the final special session of the Florida Legislature, lawmakers approved moving a proposed change to Florida’s Homestead Exemption to the November ballot to let voters decide the issue.
In a vote of 30 to 9 in the Senate, and 75-26 on the House, with local representative Kiyan Michael and State Senator Clay Yarborough both voted yes on it final passage.
The measure would increase the Homestead Exemption from $50,000 to $150,000 for homesteaded properties on January 1, 2027, and then to $250,000 in 2028. Non-homesteaded residential properties and commercial properties are unable to claim this exemption. However, included in the legislation is a reduction in the annual cap on assessment increases for non-homestead properties (vacation homes, investment properties, and commercial real estate) from 10% to 5%, the increased value of a property. The property tax levy applies to its assessed value.
If passed, the increase in the homestead exemption would only be for those who established residency in Florida by December 31, 2026. Anyone moving to Florida after that date will have to wait five years for claim the exemption.
Where do our property taxes go?
When a property owner pays his or her property tax, which is usually done through escrow for those holding a mortgage, it goes to fund different governments. The bulk of the taxes paid by beaches property owners goes to the City of Jacksonville and Duval County Public Schools. The city in which the property is located is the third largest recipient. The three beach cities each have their own millage rate, which is how the total amount going to that city is calculated.
The proposed measure only applies to the revenue cities and counties collect and excludes school systems from the exemption.
Jacksonville uses the property tax dollars it receives from the Beaches for county services, such as the jail, courts, county roads (e.g. Penman Rd.), and other services and infrastructure used by those who live at the Beaches. Duval Conty Public Schools use it for the public schools located at the Beaches, in addition to public schools throughout the county.
What does property taxes pay for?
Property taxes received by each beach city are deposited into the City’s General Fund. This fund pays for Police and Fire services, parks, code enforcement, administration, and other city services. This is separate from Enterprise funds, which only pay for expenses in a specific area, like your garbage fee or water and sewer. A city cannot use Enterprise Funds to fund general services. The other major fund is for capital improvements, which are monies put aside annually for large purchases, such as new police cars or road improvements.
Impact on the Beaches
At the Beaches Watch monthly meeting on June 3, 2026, the city managers for the three Beaches cities presented on their city budgets. Jacksonville Beach City Manager Staffopoulos, went into details on the potential impact for each city. When asked how they were going to inform the public about the impact of this bill on their local governments, Atlantic Beach City Manager Kenin Hogencamp noted that they can educate the public on how its passage would impact city services, but they cannot ask people to vote for or against it.
People walking away from that meeting received a lot of information about the potential impact to the Beaches governments if passed. While it would save homesteaded property owners money, that savings would come at a cost to the level of services currently provided. Those in support of the proposal argue that people who live in Florida are being priced out of their homes. Those opposed fear the deep budget cuts that local officials would face when deciding which services to cut and which to continue.
A challenge
Currently the proposed wording of the measure that will be placed on the ballot is being challenged by the nonprofit Save Our Voters From Misleading Ballot Language, Inc. and two former mayors who are suing as registered voters. They argue it is misleading by using political tag lines and that the ballot title is a sales pitch (SAVE OUR HOMES FROM EXCESSIVE PROPERTY TAXES). They argue that it needs to be reworded to better reflect what people are voting on. Regardless of the outcome of this case, it will appear on the November ballot.
Over the next couple of months, Beach Gazette will dive deeper into the impact – both positive and negative – for each beach municipality and those who live in them if the “Save Our Homes from Excessive Property Taxes” amendment passes.