House Joint Resolution 1F is proposing an amendment to the Florida Constitution to increase the homestead exemption from $50,000 to $150,000 effective January 1, 2027 and then to $250,000 effective January 1, 2028.
The amendment would also reduce the non-homestead assessment cap from 10% to 5%.
It requires new residents to wait 5 years before qualifying for the increased exemption.
The amendment restricts allowable uses of ad valorem revenues to specified governmental functions:
21 cents of each dollar goes to the City of Sarasota.
Tax bill by jurisdiction based on current millage rates:
A mill is a unit of measurement used to calculate property taxes. One mill equals $1 of tax for every $1,000 of taxable property value.
The City’s current operating millage is 3.2730. For every $1,000 of taxable property value the City of Sarasota collects $3.2730.
The proposed amendment indexes the exemption amount to inflation beginning in 2029. However, the language of the amendment directs the Legislature to establish a schedule for full elimination of non-school property taxes on homestead through future laws.
No. All property taxes will not be eliminated. School taxes and non-homesteaded property such as rentals, second homes and commercial would continue. The homestead exemption would increase significantly in 2027 and 2028 and the amendment directs state lawmakers to create a schedule to allow local governments to increase the homestead exemption over time up to the property’s full value providing a path to eliminate the non-school homestead tax. Property taxes would remain a revenue source for public schools.
At the full $250,000 homestead exemption, the impact to the City’s General Fund is estimated to be $5.5 million; however, there are various other impacts to the City have not yet fully calculated, such possible reductions in services by Sarasota County, The Bay Park TIF impact and the Newtown CRA impact.
Property taxes comprise 51% of the City’s total General Fund revenue sources. All local services could be impacted in some way if the amendment passes including police services, streets and sidewalks, parks and recreation services, homelessness response and many other services.
No. Property taxes are 51% of the City’s General Fund revenue sources. All departments throughout the organization are being analyzed for efficiencies, possible reductions and alternative revenue streams. The Sarasota Police Department budget is 53% of total General Fund expenditures. With SPD using nearly half of property tax revenue, SPD operations are being carefully reviewed for efficiencies and possible reductions.
The City cannot wait for the results of the November election. Sound fiscal management requires the City to anticipate challenges and begin preparing now. The Fiscal Year 2026-27 budget currently is being assembled with a thoughtful 3-pronged approach: looking for efficiencies throughout the organization, considering additional revenue sources and reviewing possible service and program reductions.
If the amendment is approved, to offset the loss of property tax revenue, the City will consider efficiencies, service reductions and alternative revenue sources including increased fees.
If the amendment passes, all City recreational facilities and services may experience impacts including school break programming.
Renters would not benefit from a property tax reduction since the homestead exemption applies to owner-occupied primary residences. Renters could be affected through reduced services and possible new fees implemented to replace property tax revenue.
The initial $150,000 homestead increase takes effect on January 1, 2027, which would impact the City’s Fiscal Year 2027-28 budget. The full $250,000 homestead exemption takes effective January 1, 2028, impacting the City’s Fiscal Year 2028-29 budget.
Possibly. Bond markets evaluate whether a local government has reliable revenue and the ability to respond to emergencies and disasters in order to borrow money. The amendment could affect local governments credit ratings, borrowing costs, and market access, which may make it difficult and expensive for the City to borrow or bond money to pay for future capital projects.
The amendment will be placed on the General Election ballot on November 3, 2026 and must receive 60% voter approval to pass.
Jennifer Jorgensen
Interim Deputy City Manager and Director of Governmental Affairs
Jennifer.Jorgensen@sarasotaFL.gov
941-263-6286