As part of a special legislative session convened by the governor, the Florida state legislature has passed a constitutional amendment to greatly reduce the state’s property tax on homestead properties.

A provision included in the amendment would increase a homestead exemption that currently allows Florida homeowners to deduct $25,000 from the assessed value of their property for tax purposes, with the potential to deduct up to $25,000 more. If this amendment passes, it will increase the current homestead exemption to $150,000 in 2027 and $250,000 in 2028, with further increases each year indexed to CPI inflation.

While this type of legislation does not require the governor’s signature, it does require approval from voters. If this measure receives more than 60% support on the November ballot, it will successfully amend the Florida constitution. NAIOP of Florida is closely following the amendment’s progress to ensure that any shortfall in tax revenue is not offset by higher taxes on commercial real estate.