Property Tax Amendment - What this could mean for us

Dear St. Pete Beach residents,

This November, Florida voters will decide on a constitutional amendment that could significantly change how homestead properties are taxed statewide, including here in St. Pete Beach. Given the potential impact on the city's budget and the services we provide, I want to make sure residents have clear, factual information well ahead of the vote. This page is intended purely to inform, not to advocate a position either way.

What the amendment does

The measure, known as Amendment 3 (originally House Joint Resolution 1F, titled "Save Our Homes from Excessive Property Taxes"), would raise the homestead exemption available to Florida homeowners on their primary residence. In practical terms, it would:

• Increase the non-school homestead exemption from the current $50,000 to $150,000 in 2027, rising to $250,000 in 2028, with inflation adjustments after that
• Apply only to non-school property taxes; school district taxes would remain calculated on a home's full assessed value, unaffected
• Leave the existing 3% "Save Our Homes" annual assessment cap in place, adding the new exemption on top of it rather than replacing it
• Phase in more slowly for new homesteads established on or after January 1, 2027, which would start at a lower exemption and build up over five years of residency

It's important to note that this amendment does not eliminate property taxes or set our millage rate. It changes how much of a home's value is exempt from taxation. The City Commission would still set the tax rate each year through our normal budget process, just as we do today.

What it takes to pass, and the timeline

Because this is a constitutional amendment, it needs approval from at least 60% of Florida voters, not a simple majority. It will be on the ballot for the November 3, 2026 general election. If it falls short of that 60% threshold, nothing changes and current property tax law remains in effect. If it passes, it would take effect January 1, 2027, first appearing on TRIM notices in August 2027 and on tax bills mailed that November.

What this could mean for St. Pete Beach

I want to be transparent about the scale involved. Our current millage rate of 3.0913 generates an estimated $15.98 million in gross property tax revenue for the city annually, and a substantial portion of that comes from homesteaded residential properties, the same properties eligible for the expanded exemption.

Because the exemption layers on top of protections that already exist, the exact size of any revenue impact to St. Pete Beach would depend on several factors still outside the city's control, including:

• How many of our properties are homesteaded and their assessed values
• Implementing legislation the Florida Legislature would need to pass to work out administrative details, some of which have not yet been finalized
• Broader statewide patterns, where organizations analyzing similar proposals have projected impacts to local government revenue in the billions of dollars in aggregate

I want to be equally clear that the amendment does not guarantee any funding level for services like police, fire rescue, EMS, or public works. Those decisions remain with local governments like ours, made through our annual budget process.

If the amendment passes: how the city would approach it

To be clear, nothing below would take effect unless voters approve the amendment in November. I am not asking you to plan around a specific city decision that has already been made, because one hasn't been. What I can tell you is how a revenue change of this kind would typically move through our budget process, based on how it works in St. Pete Beach and in comparable Florida cities addressing the same amendment:

• We would review our millage rate as part of the normal annual budget cycle to determine whether an adjustment is needed to maintain current service levels
• Staff would assess which programs or services could be affected, with an emphasis on protecting core public safety and infrastructure functions
• The city would evaluate whether reserve funds could serve as a short-term buffer while any longer-term budget decisions are made
• As always, any changes to our millage rate or budget would go through public hearings, as required by Florida law, giving residents a direct opportunity to weigh in before anything is finalized

My commitment to you is that as more becomes clear, whether that's how the vote turns out in November or how any implementing legislation shapes the amendment's details, we will update this page and communicate directly with residents well before any budget decisions are made. My office and the Finance Department will continue to monitor this closely on your behalf.

Sincerely,
Frances Robustelli
City Manager
City of St. Pete Beach