Property Tax

Property-Tax-Amendment-What-it-means-for-the-City-of-Sarasota-1

 

Florida House Joint Resolution 1F (HJR 1F), proposes significant constitutional changes to Florida’s property tax system, including increasing homestead exemptions, reducing assessment caps on non-homestead properties, and limiting certain uses of ad valorem tax revenues. The measure was approved by the Florida Legislature on June 2, 2026, and will appear on the November 2026 ballot. If approved by at least 60% of voters, the amendment would take effect January 1, 2027.

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Frequently Asked Questions

 

What is the Property Tax Amendment proposing?

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.  Finally, the amendment restricts allowable uses of ad valorem revenues to specified governmental functions:

  • Public safety, including law enforcement, fire service, and emergency medical service;
  • Funding for education and public schools;
  • Financing or refinancing of infrastructure, including roads and bridge construction and maintenance and stormwater control; 
  • Financing or refinancing natural resource projects, including flood control measures; 
  • Local bonds for uses consistent with the approved uses above, and to make debt service payments for existing obligations; 
  • Retirement benefits of local government employees;
  • Fund the operations and administration of county officers and commissioners established under Article VIII of the Florida Constitution and municipalities, and the expenditures approved by such county officers or county or municipal governing bodies, except those expenditures prohibited by general law.

 

Does the homestead exemption cap at $250,000?

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.

 

How does this impact the City’s revenue?

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 we have not yet fully calculated, such as what is the reduction in County services, reduction in City services, The Bay Park TIF impact and the Newtown CRA impact.

 

How does this impact the City’s services?

All local services may be impacted in some way by this amendment, including police services, streets and sidewalks, parks and recreation services, homelessness response and many other services our residents rely on and expect from our City.

 

When would the financial impact take effect?

 

Could this impact the City’s ability to borrow/bond on future capital projects?

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.

 

What happens next?

The amendment will be placed on the General Election ballot on November 3, 2026 and must receive 60% voter approval to pass.

 

Who can I contact for more information?

Jennifer Jorgensen

Interim Deputy City Manager and Director of Governmental Affairs

Jennifer.Jorgensen@sarasotaFL.gov

941-263-6286

 

 

 

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