Florida Tax Watch President Breaks Down Amendment 3 — And Raises a Warning About Fee Increases

Pensacola, FL (NewsRadio 92.3) -- Former Lieutenant Governor Jeff Kottkamp — now President and CEO of Florida Tax Watch — joined Pensacola's Morning News Thursday with guest host Todd Thompson to walk listeners through what Amendment 3 would actually do to local government budgets if Florida voters approve it in November.

Kottkamp was careful to note upfront that Florida Tax Watch is a nonpartisan independent organization — it does not endorse or oppose the amendment. Its role is to make sure voters understand the facts before they decide.

The Numbers

The amendment raises the homestead exemption for non-school property taxes — currently at $50,000 — in two steps. On January 1st of 2027 it rises to $150,000. That change alone would cost local governments statewide approximately $4.9 billion in lost revenue. On January 1st of 2028 it rises again to $250,000 — an $8.7 billion annual hit to local government revenue. Starting January 1st of 2029 the exemption is indexed for inflation — pushing the total statewide impact to approximately $11.8 billion annually. For Pensacola specifically Kottkamp put the loss at approximately $8.2 million.

The amendment also reduces the annual assessment cap on non-homestead properties — rental homes, commercial buildings, investment properties — from 10 percent to 5 percent annually. That is an additional reduction in property tax revenue beyond the homestead exemption changes.

The Fee Increase Concern

Kottkamp says one of Florida Tax Watch's biggest concerns is that voters may approve the amendment expecting a significant tax cut — only to see local governments offset their losses by raising fees. The amendment does not prohibit local governments from increasing fees to make up the revenue difference. Kottkamp says solid waste fees, stormwater fees, and fire service impact fees are all tools local governments could use to backfill lost property tax revenue. He says if that happens residents would effectively be paying the same amount — just in a different form.

Constrained Counties

Kottkamp also flagged the situation for fiscally constrained counties — roughly 30 counties statewide that can barely afford to operate under current revenue. After the amendment passed the legislature the governor's office created a pool of money to help backfill losses for those counties — but the House did not go along with it and it was stripped from the final bill. Kottkamp says those counties face the most severe consequences if the amendment passes with no replacement mechanism.

What Florida Tax Watch Would Prefer

Kottkamp says Florida has a Taxation and Budget Reform Commission that convenes every 20 years — a panel appointed by the governor, the House speaker, and the Senate president — with a year and a half to two years to study tax policy and put thoughtful proposals on the ballot. He says Florida Tax Watch would much prefer this kind of property tax reform go through that commission rather than being rushed through a three-day special session without full analysis of all the downstream effects.

Florida Tax Watch is releasing a comprehensive Amendment 3 information portal at floridataxwatch.org next Friday — designed to answer every question voters might have before November. The amendment requires 60 percent voter approval to take effect.