Property-Tax Proposal: 

Florida landlords watching the property-tax debate have a reason to look beyond the headlines about homeowner exemptions. Amendment 3, on the November 2026 ballot, would reduce the annual assessment-growth cap on non-homestead property from 10% to 5%. The proposal requires approval from at least 60% of voters. It has not yet become law.

A recent True North Managed article highlights the distinction between the proposal's homeowner benefits and its potential value to rental owners. For landlords, the central question is how the lower assessment cap would affect their properties over time.

The rental-property provision

Under the enrolled resolution, the lower cap would begin January 1, 2027. It would cover qualifying non-homestead residential property and other qualifying real property, including commercial property. School-district levies would remain excluded.

The proposal also preserves reassessment at just value following a qualifying change of ownership or control. Buyers should therefore avoid projecting future taxes from the seller's capped assessment.

A 5% assessment cap is not a 5% tax-bill cap

This distinction matters when preparing a rental budget. An assessment cap limits growth in the value used to calculate certain taxes. The final bill also depends on applicable tax rates, school taxes, exemptions, and other charges.

Consider this simplified illustration: a qualifying rental has a prior assessed value of $200,000, and its just value is high enough for either cap to apply. A 10% increase would produce a $220,000 assessment; a 5% increase would produce $210,000.

At an assumed, unchanged non-school tax rate of 12 mills—$12 per $1,000—that $10,000 difference would mean $120 less in non-school taxes for that year. This is an illustration, not a forecast for a particular property.

The larger homestead exemption generally would not cover rentals

The proposal would expand the qualifying homestead exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028. It also includes residency conditions for new Florida residents.

Those homeowner benefits generally would not apply to ordinary rental properties. Orange County's explanation specifically distinguishes primary residences from rental and investment properties.

Local budget decisions still matter

Orange County warns that reduced revenues could require spending reductions, fees, or other legally authorized revenue options. Those are potential responses, not adopted outcomes. Landlords should continue watching local budgets rather than assuming the proposed assessment protection will translate directly into lower operating costs.

For planning purposes, prepare two budgets: one under current rules and another assuming the amendment passes. Keep school taxes separate, verify the property's assessment history, and obtain an updated tax estimate before buying.

A lower assessment cap could provide useful protection for landlords holding property over many years. But don't spend the savings before they exist.

Look at your actual tax bill, understand which portions the proposal would affect, and keep realistic reserves. When buying, investigate the taxes you are likely to pay after the transfer—not simply what the seller paid last year.