What Florida's Amendment 3 Could Mean for Ormond Beach's Budget

If at least 60% of voters approve it, Amendment 3 would, beginning Jan. 1, 2027:

Raise the homestead exemption for non-school property taxes from $50,000 to $150,000 in 2027, and to $250,000 in 2028. The $250,000 figure would be adjusted for inflation starting in 2029.

Direct the Legislature to create a procedure that lets counties and cities raise their local homestead exemption up to a home's full assessed value, a path toward eventually eliminating non-school homestead property taxes.

Require counties and cities to spend property tax revenue only on defined core categories, including public safety, education, infrastructure, natural resources, debt service, retirement obligations and general government operations.

Lower the annual assessment growth cap on non-homestead property from 10% to 5%, phased in for non-school levies.

Give new Florida residents who establish residency on or after Jan. 1, 2027 the current $50,000 exemption right away, with the full increased exemption available after five years.

School property taxes are not affected.

In June, when the city planned its budget, Finance Director Kelly McGuire estimated the amendment would cost Ormond Beach about $8.2 million by 2028. About $1.9 billion in taxable value would leave the rolls, and about 59% of city homes would owe no property tax to the city, according to the estimate. McGuire noted that even eliminating the entire parks and recreation department would leave the city about $1 million short. Staff said service cuts or new fees would likely be needed.

The city kept its general fund millage flat at 4.3202 mills for fiscal 2026-27. A rollback rate, staff said, would widen the shortfall to $10.2 million and save the average taxpayer only about $70.

Commissioners weighed in at that meeting. Travis Sargent supported staying flat because of what is coming. Harold Briley said fiscally prudent cities will be hit hardest and noted that Ormond Beach has the county's second-lowest millage rate. Lori Tolland, now the mayor-elect, favored a flat rate and opposed a rollback, saying residents "deserve more" than cuts to services that cannot be restored.

These figures are the city's estimates from June. The city has not published an update that we found, and the actual effect would depend on how the Legislature carries out the amendment.

Supporters say the amendment gives homeowners direct tax relief amid rising property values, creates a path toward reducing or eliminating non-school homestead taxes, and makes local spending more transparent and accountable.

Opponents say it removes a major local revenue source without a reliable replacement, which could force cuts to other services, higher fees, or higher millage rates on remaining taxable property. They also say the phased exemptions and caps would further complicate an already complex property tax system.

Florida TaxWatch has estimated annual savings in Central Florida cities of roughly $1,000 to $1,400 in 2027 and about $2,100 to $2,800 in 2028, with savings varying by location and home value. Those examples did not include Ormond Beach, and the savings tool is aimed at properties assessed above $250,000.

Amendment 3 appears on every Florida ballot, and it needs 60% voter approval to pass. Early voting runs Oct. 19 to 31 at the Ormond Beach Regional Library, 30 S. Beach St., and elsewhere in the county. Election Day is Nov. 3.

Ormond Beach Buzz will keep covering how the city plans for the vote.