Florida's Proposed Property Tax Amendment: What Investors Should Model for Carry Costs

What is on the ballot

The measure is CS/HJR 1-F, titled "Save our Homes from Excessive Property Taxes." According to the Florida Senate's bill page, the House passed it 75 to 26 and the Senate passed it 30 to 9 on June 2, 2026, and it was filed with the Secretary of State on June 16, 2026. The bill page describes it as revising the limitation on annual assessment increases for specified real property, with a January 1, 2027 effective date if approved.

County property appraiser summaries and law firm analyses say the amendment goes on the November 3, 2026 ballot, needs at least 60 percent voter approval because it amends the state constitution, and would lower the annual cap on assessment increases for many non-homestead properties from 10 percent to 5 percent. Those same summaries say it also contains homestead exemption changes, which matter to owner-occupants but are outside the scope of this investor-focused article.

How the current cap works

Today, Article VII, Section 4 of the Florida Constitution limits yearly increases in the assessed value of most non-homestead real property to 10 percent of the prior year's assessment. Section 4(g) covers residential property with nine units or fewer (for levies other than school district levies), and Section 4(h) covers other non-homestead real property. Both provide that an assessment cannot exceed just (market) value.

Two features matter a great deal to investors. First, the cap limits assessment growth, not tax rates. Local governments can still change millage rates. Second, the protection is not permanent across a sale: the constitution provides for reassessment at just value after a change of ownership or control, as defined by general law. A buyer should not assume the seller's capped value comes along with the property.

Why it matters for hold periods

A lower cap would slow the climb of assessed value for an owner who keeps a property through a rising market, if the amendment passes and the property is covered. A summary from the Manatee County Property Appraiser says changes would first be reflected on 2027 tax bills, with the first affected bills issued in November 2027. So any benefit would not show up in the near term, and a short flip that is bought and sold within months may never see the difference.

Longer holds are where a lower cap could matter in a model, such as a rental held through stabilization or a property held during a multi-year redevelopment. Because the cap resets on a change of ownership, the buyer's first-year assessment and the cap that applies after that are separate questions. Ask your tax professional which one drives your numbers.

How to model carry costs under both outcomes

Because the result is unknown, run two cases instead of picking one. The figures below are examples only and are not statements about any lender's terms.

Example: a property is assessed at $1,000,000 and just value rises faster than the cap each year. Under a 10 percent cap, assessed value could rise to $1,100,000 after one year. Under a 5 percent cap, it could rise to $1,050,000. At an example millage rate of 2 percent, that is $22,000 versus $21,000 of tax in that year, before any change in the millage rate itself.

• Case A: the amendment fails, so keep the current 10 percent cap assumption.
• Case B: the amendment passes, so model a 5 percent cap beginning with 2027 assessments, after confirming your property type is covered.
• Do not model a lower millage rate. The cap does not control rates, and local budgets can change.
• Reset the basis at purchase. Assume the new owner's first assessment starts from just value, then apply the cap going forward.
• Keep a cushion in the budget. Insurance, repairs and interest are separate carrying costs that this measure does not touch.

Confirm before you rely on it

Summaries differ in how they describe which property types are covered, and the official ballot language and full text control. Read the measure on the Florida Senate site, check your county property appraiser's page for the property in question, and talk to a CPA or tax attorney before changing a purchase price, renovation budget or exit timeline. Facts in this article are stated as of October 2026 and may change.

Common questions