Kylee Bo, Government Affairs Advisor, GrayRobinson - July 2026
In May, the Governor issued a proclamation convening the Florida Legislature in special session focused on property tax reform. The Legislature met in June to consider two related measures: a constitutional amendment on property taxes and implementing legislation to support the tax system if voters approve the amendment in November. Because the amendment was legislatively proposed, it required 60 percent approval in each chamber (72 votes in the House and 24 votes in the Senate) to be placed on the ballot.
Following committee action, both chambers took up the bills. The constitutional amendment, House Joint Resolution 1F (HJR 1F), passed 75–26 in the House and 30–9 in the Senate, exceeding the threshold required for placement on the November ballot. The implementing bill, Senate Bill 4F (SB 4F), also passed, 75–27 in the House and 30–8 in the Senate. HJR 1F does not require the Governor’s signature and will proceed directly to the ballot unless successfully challenged in court. SB 4F will be presented to the Governor and is expected to be signed.
HJR 1F would make four major changes to Florida’s property tax system. It significantly increases the homestead exemption for existing residents, reduces assessment growth caps on non-homestead property (including commercial property), creates a five-year residency requirement before new residents can receive the
enhanced exemption and adds new limits on how local governments may use property tax revenues.
Under the homestead provisions, the exemption for non-school property taxes would increase to $150,000 beginning January 1, 2027 and $250,000 beginning January 1, 2028. Beginning in 2029, the $250,000 exemption would be indexed to the Consumer Price Index (CPI). The amendment also directs the Legislature to establish a pathway toward further expansion of the exemption, potentially up to a complete exemption from non-school ad valorem taxes, although questions remain regarding the constitutional viability of such an expansion. For non-homestead property, the amendment reduces the annual assessment growth cap from 10 to 5 percent beginning in 2027. It also requires new Florida residents after January 1, 2027 to wait five years before receiving the enhanced exemption, although local governments may shorten that period beginning in 2030 under limited circumstances.
The amendment also restricts the use of ad valorem tax revenues to defined core governmental purposes such as public safety, education, infrastructure, flood control, debt service, pensions and core administration. Uses such as economic development, parks and recreation and certain social services would no longer be permitted under the constitutional language, which is narrowly drawn and provides limited flexibility. Notably, the amendment still allows local governments to increase homestead exemptions further through procedures established in law.
One area of uncertainty involves the provision authorizing funding for the operations and administration of county officers, county commissioners, municipalities and expenditures approved by those governing bodies, provided such expenditures are not otherwise prohibited by general law. Some interpret this language narrowly to permit only core administrative functions. Others argue the language is broad enough to authorize any expenditure approved by a county or municipal governing body unless specifically prohibited by law. As a result, the ultimate scope of this provision will likely be determined through judicial interpretation.
If a court adopts the narrower interpretation, property tax revenues could no longer be used for activities such as economic development initiatives, parks and recreation programs, social services such as homeless shelters or grants to charitable organizations and community events. If the broader interpretation prevails,
local governments may retain greater flexibility in how ad valorem tax revenues are spent.
SB 4F serves as the implementing legislation for the constitutional amendment and establishes the statutory and administrative framework necessary to implement the proposed changes if approved by voters. One of the bill’s most significant provisions revises the calculation of the maximum millage rate a local government may levy with a simple majority vote. Under current law, the rolled-back rate may be adjusted annually based on changes in per capita Florida personal income. SB 4F generally eliminates that adjustment and limits the maximum levy to the rolledback rate unless additional approvals are obtained.
Under the bill, local government may levy a rate of up to 110 percent of the rolled-back rate with approval by a two-thirds vote of the governing body. A rate exceeding 110 percent of the rolled-back rate would require unanimous approval of the governing body (or a three-fourths vote for governing bodies with nine or more members) or approval through referendum. Because the revised methodology no longer accounts for personal income growth, the change is expected to reduce the baseline millage capacity of many local governments beginning next year.
Lastly, the bill provides an exception to the standard 75-word limit for ballot summaries, allowing a longer summary for this constitutional amendment due to its scope.
Kylee Bo, GrayRobinson, is a Government Affairs Advisor specializing in policy and appropriations at both the Florida Capitol and local levels. Based in Orlando, she offers clients strategic insights, summaries of state and local hearings and tailored government affairs updates and reports. Kylee works to strengthen relationships with elected officials across the state and represents GrayRobinson at key board meetings. She also delivers educational briefings to select groups, including college students pursuing careers in the legislative field.