Florida Amendment 3: Palm Beach Forum Weighs Property Tax Cuts Against Service Budgets
Officials at the Palm Beach Civic Association's Oct. 28 forum said Amendment 3 would cost the Town of Palm Beach about $3.4 million a year in combined revenue, while warning its long-term path toward eliminating homestead property taxes could cut vital county services.
Palm Beach's municipal budget would face minimal cuts if Florida voters pass Amendment 3 on Tuesday, Nov. 3, but the proposal's long-term impact is another matter, state and local officials warned at the Palm Beach Civic Association's 83rd annual Welcome Back Community Forum on Oct. 28, the Palm Beach Post reported. The forum, held in the fellowship hall of the Royal Poinciana Chapel, drew about 110 people. If passed, Amendment 3 would raise the homestead exemption on non-school taxes from $50,000 to $150,000 in 2027 and to $250,000 in 2028.
Deputy Town Manager Bob Miracle said the exemption increase alone would cost Palm Beach roughly $800,000 in property tax revenue the first year and $1.7 million the subsequent year, against a town budget of about $137 million, the Post reported. The bigger hit, he said, would come from the amendment's other major change - cutting the annual assessment cap to 5 percent from 10 percent for non-homesteaded properties such as rentals, second homes and commercial properties - worth roughly another $1.7 million a year, for a combined reduction of about $3.4 million. Miracle noted that 352 of the town's 496 residences assessed at over $10 million are not homesteaded, and that property taxes make up roughly 70 percent of the town's revenue.
State Rep. Emily Gregory, whose state House District 87 includes Palm Beach, noted that school districts are carved out of the amendment but other taxing authorities - including those for health care, children's services and water management - would all see their revenues decline, which long term could force significant budget cuts to vital Palm Beach County services or replacement funding through increased assessments or service fees, the Post reported. County Property Appraiser Dorothy Jacks said the change should not be viewed as a tax cut but rather a tax shift, and recommended owners check her office's online Amendment 3 calculator. Casey Cook of the Florida League of Cities said the immediate impact would be devastating for many residential-majority municipalities, and Haverhill officials have noted a 53 percent property-tax revenue loss for their town if the amendment passes, according to the panel as reported by the Post.
