DeSantis wants to stop local governments taxing back your property tax cut

Voters passed the cut, and the state priced it

Gov. Ron DeSantis wants lawmakers back for a special session by January to stop local governments from replacing the lost tax money with fees or other taxes. That fight shapes how much of the cut you keep on a home, second home, rental or business.

Voters passed the cut, Amendment 3, with 62% of Tuesday's vote in the state's unofficial count. The state panel that priced it, the Revenue Estimating Conference, estimates local governments' first-year loss at nearly $5 billion, most of it from counties.

At full effect, local governments in the Palm Beach County area could lose $1.07 billion a year, the state's tables show. Jim Boyd, the Republican in line to lead the Senate, said before the vote that, in his view, any follow-up law "can wait until we reconvene in January." Sam Garrison, the Republican in line to lead the House, said then that he would "rather be right than be quick."

Why it matters: Homestead owners who are permanent Florida residents by Dec. 31 get a $150,000 exemption in 2027 and $250,000 in 2028. It covers county, city and district taxes, not school taxes, and newcomers wait until their fifth year. Second homes, rentals and businesses gain too: the 10% yearly limit on how fast their taxable value can rise is cut in half.

The story so far: In a June special session, lawmakers sent voters the plan DeSantis's office wrote. They left school taxes out of the bigger exemption. Florida Realtors, the state's Realtors trade group, then gave $19.5 million of the $21.5 million the yes campaign raised, state records show.

What's new: At a Capitol news conference on Wednesday, Nov. 4, DeSantis said lawmakers will pick the dates and the work "has to be implemented by January 1st per the amendment." He also promised a pool of grant money for local governments.

Who carries the first-year bill

The state's Revenue Estimating Conference adopted its estimate on July 10. Local governments could lose $4.93 billion of non-school property tax in the 2027-28 budget year. The loss grows to $8.71 billion the next year and $11.8 billion a year at full effect. The school column is zero in every year.

County governments carry the most. Counties, with the districts they run, could lose $3.20 billion in the first year. Cities, with their districts, could lose $1.29 billion. Independent special districts could lose $433 million. Counties carry about 65% of the first-year loss, by our arithmetic.

The biggest county areas lose the most at full effect, the state's tables show. Miami-Dade could lose $1.39 billion a year, Broward $1.19 billion, Palm Beach $1.07 billion and Hillsborough $942 million. In the first year, Broward's cash loss is $536 million and Miami-Dade's $525 million. Palm Beach's is $418 million and Hillsborough's $342 million. Those county figures rest on the state's tables alone.

A state analysis predicted local governments could lose nearly $5 billion, rising toward $9 billion the next year, St. Pete Catalyst reported. Jacksonville's City Council auditor estimates the city's revenue will drop $300 million a year by the 2028-29 budget year, Jacksonville Today reported.

What changes on your bill, and when

Nothing changes on 2026 tax bills, a Leon County Property Appraiser webpage says, St. Pete Catalyst reported. The changes start with 2027 bills.

The amendment raises the second homestead exemption, which applies only to non-school taxes. For people who were permanent Florida residents by Dec. 31, 2026, it becomes $150,000 in 2027 and $250,000 in 2028, the state's analysis says. From 2029 it rises with inflation.

People who were not residents by that date get the current $50,000 exemption, adjusted for inflation, for four years. They get the larger exemption in their fifth year. A county or city may shorten that wait by a two-thirds vote if the lost revenue is "warranted for a critical local need," the analysis says.

Florida Realtors puts today's homestead exemption from non-school taxes at $51,411.

Owners of property that is not a homestead also gain. Today the taxable value of a business or rental can rise as much as 10% a year. "The amendment will cut that in half," St. Pete Catalyst reported. The state's analysis says the cap on non-homestead, non-farm property falls to 5%.

The amendment also limits what counties and cities may spend property tax money on, the state's analysis and Suncoast Searchlight report.

DeSantis's call, in his own words

DeSantis spoke at a news conference in the State Capitol on Nov. 4. The Florida Channel recorded it.

"I will work with them and let them pick the dates," he said, at 11:08 in the recording. The session would set the exemption schedule, "but also limiting local governments from just doing an end run around the amendment and taxing them in other ways," the News Service of Florida quoted him.

"This will require a taxpayer bill of rights where we are not allowed to just go and put fees or play games," he said, at 11:46 in the recording. At 12:04 he said: "I will work with the Legislature to provide a pool of funding that will issue grants to local governments for these needs." He named no amount.

"It has to be implemented by January 1st per the amendment," he said at 13:40. "That has to be done by January 1, and we will do it by January 1," the Florida Phoenix quoted him. The News Service of Florida reported the session would come before his second term ends in early January.

He called himself "basically on lame duck duty at this point," St. Pete Catalyst reported. He also called the amendment "the beginning of our property tax elimination efforts in the state of Florida."

DeSantis credited the measure with Republican turnout. "Had Amendment 3 not been on the ballot, I don't know that we'd turn out the voters that we ended up turning out," he said, the News Service of Florida reported. He hinted that lawmakers would look at changes to the state's school funding formula next year, the News Service reported.

The governor may call a special session by a proclamation stating its purpose, the state constitution says. A special session may last 20 days unless three-fifths of each house extends it. No proclamation has been filed, and no bill text for a taxpayer bill of rights has been published.

Where the Legislature's leaders stand

The Legislature's incoming leaders spoke before the vote, on the "Between the Lines with Dara Kam" podcast. "Personally, I believe that it can wait until we reconvene in January," said Senate President-Designate Jim Boyd, a Bradenton Republican. "I think the new administration ought to have a say in that."

House Speaker-Designate Sam Garrison, a Republican, said the amendment will "not be something that can be rolled out and just implemented in three days." He added: "I personally am of the belief, I'd rather be right than be quick."

On Thursday, Boyd named his leadership team and confirmed an organization session in Tallahassee on Tuesday, Nov. 17. His announcement did not mention a special session, the Florida Phoenix reported. Garrison had made no announcement about his team. Neither chamber answered the Phoenix's requests for comment on Wednesday afternoon.

Christine Hunschofsky, the incoming House Democratic leader, said this week: "I am hoping that this will not be a special session. Those haven't always worked out so well." She said it is her understanding that Garrison and Boyd have made no decision. She prefers the regular session that starts in March.

Jeff Brandes, a former Republican state senator who leads the nonpartisan Florida Policy Project, fought the amendment. "I don't know how [DeSantis] would exempt non-ad valorem taxation, or try to prevent some other type of fee shift," he told the Phoenix. "I don't think there's any reason that the Legislature should go back into special session under a DeSantis administration." On X he wrote: "The governor and the Legislature own what comes next."

What local governments say

Local leaders around the state asked how governments will work with less money, the Florida Phoenix reported. Some said shifting to fees could be the only way to keep services.

"You're going to see cuts to local services and programs, or you're going to see tax increases," said Jackson Peel of Save Our Services, the No on 3 campaign. Each community will decide which, or what mix, he told St. Pete Catalyst.

Valparaiso Mayor Joseph Morgan said his city expects to lose nearly $500,000 next year, climbing past $1 million by 2029, WEAR-TV reported. That is nearly 20% of its $5.4 million budget. "There's also other possibilities of having fees," he said. Okaloosa County Administrator John Hofstad said the county expects $15 million less next year and may freeze hiring for general-fund jobs.

Sarasota County Commissioner Tom Knight said he will treat the next budget like a recession. "I'm certain we won't be filling positions, and possibly, laying people off," he told Suncoast Searchlight. Manatee County Commissioner Tal Siddique said: "People are angry ... We're going to take that order to heart."

In Jacksonville, Mayor Donna Deegan's office and the 19 City Council members have no consensus on raising other taxes and fees or on what to cut, the Jacksonville Daily Record reported. St. Johns County Administrator Joy Andrews said the vote "will naturally require adjustments" to how local governments raise money and the services they can afford.

Who paid to pass it

The yes campaign, Vote Yes on 3, raised $21.5 million, state campaign records show. Florida Realtors gave $19.5 million of it in seven checks from Sept. 3 to Sept. 30. The National Association of Realtors gave $2.02 million on Oct. 9. Bank interest added $10.33.

The campaign paid SGS Inc. of Gainesville $20.7 million in 17 payments, the last on Oct. 28, by our sum of the state records. Orlando Weekly reported that SGS is owned by longtime Republican operative Patrick Bainter. No contribution after Oct. 9 and no payment after Oct. 28 is on file.

This was campaign money spent before the vote. No record we read ties it to the result or to any official act.

DeSantis toured the state for more than a year pushing the cut, the News Service of Florida reported. The Republican Party of Florida and Florida Realtors backed it. Senate President Ben Albritton and his predecessor as Senate president, Kathleen Passidomo, spoke against it. So did groups of firefighters, police and emergency medical technicians, alongside local officials, Jacksonville Today reported.

Their side

Florida Realtors called the result "meaningful progress toward making it more affordable to own and maintain a home in our state." The group said it "will continue to serve as a resource for lawmakers and local government leaders throughout the implementation process."

"The voters have spoken, and we respect their decision," Deegan said in a written statement. "The necessary adjustments will be made in collaboration with the community and City Council."

We did not find a statement from the Florida Association of Counties or the Florida League of Cities in what we read.

What's next

What's next: The Legislature meets to organize on Tuesday, Nov. 17. DeSantis says the cut must be in place by Jan. 1. Gov.-elect Byron Donalds, a Republican, takes office Tuesday, Jan. 5; he has said he wants to repeal homestead property taxes entirely if the math allows. The regular session opens in March, and the first bills under the new rules arrive in 2027.

Sources we read

Florida Division of Elections, unofficial Amendment 3 results, read Nov. 5, and the Vote Yes on 3 contribution and expenditure records, re-read Nov. 5. The Revenue Estimating Conference's adopted impact statement for CS/HJR 1F, July 10, 2026, with Addendum 1. The Florida Channel's recording of the governor's Nov. 4 news conference (timestamps from its caption file). The Florida Constitution, Article III. The News Service of Florida (Ana Goni-Lessan) via Tallahassee Reports, Nov. 5, and via Jacksonville Today, Nov. 3. Florida Phoenix, Nov. 4 (Jay Waagmeester) and Nov. 5 (Christine Sexton; Mitch Perry). St. Pete Catalyst (Doug Soule, WUSF), Nov. 5. Suncoast Searchlight (Derek Gilliam), Nov. 3. WEAR-TV, Nov. 4. Jacksonville Daily Record (Joe Lister), Nov. 3. Orlando Weekly, Oct. 17. Florida Realtors' Amendment 3 page, read Nov. 5. The Governor's office website.