Voters to Decide on Property Tax Assessment Caps in November

A constitutional amendment on the November 2026 ballot, known as Amendment 3, holds significant implications for Florida's rental and commercial property owners. If passed by at least 60% of voters, the measure would reduce the annual assessment cap on non-homestead property—which includes long-term rentals and second homes—from 10% to 5%, effective January 1, 2027.

While this change would limit how quickly a property's assessed value can grow, experts warn landlords against banking on the savings prematurely. The amendment specifically targets the assessment cap and does not change the actual tax rate set by local governments. Furthermore, any property purchased in 2026 or 2027 will undergo a reassessment at full market value, meaning the cap benefit only accrues over time.

The ballot measure also proposes a significant increase in the homestead exemption for owner-occupants, a move that does not provide direct relief to renters. With local governments potentially facing revenue shifts, some analysts suggest that municipalities might explore alternative fee structures to offset the loss in property tax revenue, a factor that landlords should monitor closely as they set future rent pricing.