OKALOOSA COUNTY, Fla. — Okaloosa County and several municipalities are launching a public information effort ahead of a November constitutional amendment that would substantially increase homestead property tax exemptions while reducing property tax revenue available to local governments.
Niceville.com Community Partner
Amendment 3, formally proposed by the Florida Legislature as CS/HJR 1-F, will appear on the November 3 general election ballot. It requires approval from at least 60 percent of voters to take effect Jan. 1, 2027.
For qualifying Florida homestead properties, the amendment would increase the exemption from non-school property taxes to as much as $150,000 beginning in 2027 and $250,000 beginning in 2028. The $250,000 amount would then be adjusted for positive inflation beginning in 2029.
The larger exemption would not apply to property taxes levied by school districts.
The measure also would reduce the annual assessment-growth cap on non-homestead residential and non-residential property from 10 percent to five percent.
Niceville.com Community Partner
People establishing permanent Florida residency on or after Jan. 1, 2027, would initially qualify for an exemption of up to $50,000 from non-school taxes, adjusted for inflation. They generally would become eligible for the larger exemption beginning with their fifth year, although counties and municipalities could shorten that period under certain circumstances beginning in 2030.
For homeowners who qualify for the increased exemption, the proposal would reduce the taxable value of their homesteaded property for county, municipal and other affected non-school property taxes. At the same time, counties and cities would collect less property tax revenue unless the reduction is offset through other revenue, tax rates or budget changes.
The Legislature approved the proposed amendment June 2, with the House voting 75-26 and the Senate voting 30-9.
Okaloosa County said county and municipal public information employees will distribute information about the proposal through a website, social media and public speaking engagements. The county said the effort is intended to explain how property taxes are collected and used for services such as public safety and infrastructure.
Many of the statements included in the county’s announcement focus on the potential effect of reduced property tax collections on local governments.
Niceville Mayor Dan Henkel said the amendment could have significant consequences if approved.
Niceville.com Community Partner
“If approved by 60 percent of Florida voters, this amendment could have far-reaching consequences for local governments and the services residents rely on every day,” Mr Henkel said. “In my opinion, the proposal represents a significant challenge to Florida’s tradition of Home Rule, which grants municipalities and counties the authority to govern local affairs and make decisions that best serve their communities.”
Okaloosa County Administrator John Hofstad encouraged residents to become informed and participate in the county’s budget process.
“Having all of the necessary information ahead of the upcoming election is important for all voters,” Mr Hofstad said. “We are going through our annual budget approval process right now and welcome more community engagement at our upcoming budget workshop meetings.”
Crestview Mayor JB Whitten also emphasized understanding the relationship between taxes and government services.
“An informed community is an empowered community,” Mr Whitten said. “It is important that residents understand the relationship between tax revenue and the services they have come to expect from their local government.”
Valparaiso Mayor Joe Morgan said the proposal raises concerns about how cities would replace lost revenue.
Niceville.com Community Partner
“The City of Valparaiso is not unlike many of the cities throughout Florida, small in size, and small in budget, but also generally self-sufficient,” Mr Morgan said.
“This proposal raises significant concerns. The simple fact is that the bills for the services provided ‘will have to be paid somehow’. A robust and full discussion on how that critical revenue stream is to be replaced and/or supplemented is needed.”
Other local officials quoted by the county, including representatives of Cinco Bayou, Fort Walton Beach, Mary Esther and Shalimar, similarly raised concerns about maintaining services or replacing property tax revenue if the amendment passes.
Niceville.com Community Partner
The proposed constitutional amendment also limits the purposes for which counties and municipalities may use property tax revenue, while allowing expenditures for such areas as public safety, infrastructure, natural resources and flood control, debt obligations, employee retirement benefits and government operations.
The county has established an Amendment 3 information page with details about the proposal and local property taxes.
Voter registration and election information is available through the Okaloosa County Supervisor of Elections. Voters will decide the amendment in the November 3 general election.
