Florida Amendment 3: What It Means for Vacant Land

Early voting is already underway in Florida, and the question on the ballot that matters most to anyone who owns land is Amendment 3, the property tax measure. Most of the coverage is about homeowners and the bigger homestead exemption. But the amendment has a second part that affects vacant land, rental lots, second homes and commercial parcels directly. It also has a third effect that's easy to miss: it could change how Florida counties pay for the roads, water and sewer that make raw land buildable.

Here's what is actually in the measure, where the polls stand, and what builders, land investors and mobile home investors should be watching.

What Florida Amendment 3 Does

According to the Pinellas County Property Appraiser's Amendment 3 FAQ, the measure will be on the November 3, 2026 general election ballot and needs at least 60% of the vote to pass. If it passes, it takes effect January 1, 2027. The first place owners would see it is the August 2027 TRIM notices and the tax bills mailed in November 2027.

The amendment has three main parts:

A larger homestead exemption. For primary residences, a $25,000 exemption would apply to school taxes. For non-school taxes, the exemption would be up to $150,000 starting in 2027 and up to $250,000 starting in 2028, with yearly CPI adjustments beginning in 2029 (Pinellas County Property Appraiser).
A lower cap on non-homestead assessments. The limit on how much the assessed value of non-homestead property can rise each year would drop from 10% to 5% (Pinellas County Property Appraiser).
New residency rules. People who are Florida residents by December 31, 2026 could get the larger exemption. People who become residents later would wait five years, though they would still get the current $50,000 exemption in the meantime (CBS12).

Does the 5% Cap Apply to Vacant Land?

Yes, according to the property appraisers. Pinellas County's FAQ defines non-homestead property as any property without a homestead exemption and names vacant land among them, along with rentals, commercial property and second homes (PCPAO). Martin County Property Appraiser Jenny Fields told CBS12 the same thing: the lower 5% cap "could apply to second homes, rental properties, vacant land, businesses and other non-homesteaded real property" (CBS12).

There are two big limits that land investors shouldn't miss:

School taxes stay uncapped. The 5% limit only applies to assessed value for non-school taxes. School taxes on non-homestead property would still be based on just (market) value (PCPAO).
A lower cap doesn't guarantee a lower bill. The cap limits how fast assessed value can rise. It doesn't touch tax rates. "This amendment does not control or limit or put any restrictions on the millage rates set by the local taxing authorities," Fields said (CBS12).

What this means for buy-and-hold land

If you hold lots or acreage in a fast-appreciating Florida county, a 5% cap could make the non-school part of your yearly carrying cost easier to predict. That's a real advantage when you're modeling a multi-year hold. Two things still apply, though. The school-tax portion moves with market value, and the millage rates can move too.

The Bigger Story: About $12 Billion Less for Local Governments

For builders and developers, the cap probably matters less than the hole it would leave in local budgets. In an analysis published this weekend, Florida Politics reports that state economists at the Office of Economic and Demographic Research estimate $11.86 billion a year would eventually come out of local budgets. The estimates are nearly $5 billion in FY 2027-28 and $8.775 billion in FY 2028-29.

The losses aren't spread evenly. St. Lucie County could take the biggest hit at about 35% of revenue, and Clay, Baker, Citrus and Hernando counties could each lose more than 30% (Florida Politics). In South Florida, the Revenue Estimating Conference table shows all local taxing authorities in Broward losing $968.5 million in FY 2028-29 and Miami-Dade losing $945.7 million (The American Developer).

Under the amendment, counties and cities could spend property tax money only on certain core areas: public safety, schools, infrastructure, natural resources, debt service, pensions, and the operations of county officers and governing bodies (Florida Politics).

Why Impact Fees Are the Number to Watch

Here's where it gets practical for anyone buying land to build on. Florida TaxWatch says Amendment 3 includes no new dedicated state money to replace lost revenue. It also doesn't stop local governments from raising taxes or fees, including impact fees, to make up the difference.

Some counties have already put that on the table:

Bay County's published contingency list includes "increase impact fees on new developments" as a possible revenue source, along with franchise fees, EMS fees and a gas tax (Bay County).
St. Johns County adopted its FY 2027 budget with $100 million in capital improvement projects on hold until after the election. State economists estimate the county could lose about $68.3 million in FY 2028, growing to $191.6 million by FY 2032 (St. Johns Record).
Wakulla County officials have pointed out that under Chapter 163 of Florida Statutes, impact fees can only pay for capital infrastructure, not operations like salaries. So impact fees can't fill a budget gap on their own (WTXL).

For a builder, that means two things to model. The first is higher per-door fees in counties that lean on impact fees. The second is slower road, water and sewer extensions in counties that delay capital projects. Both affect which lots pencil out. Infrastructure timing is often the difference between a "buildable" lot and a lot that just sits. Our guide on how builders find buildable lots goes deeper on that checklist.

Where the Polls Stand

The measure needs 60%, and recent polls show it below that line:

University of North Florida (Oct. 12–19, 1,471 likely voters): 50% yes, 35% no (Florida Politics).
MDW Communications / EDGE: 50% yes, 27% no, 23% undecided (MDW Communications).
Stetson University (Oct. 1–9): 56% yes, 21% no, 23% undecided (Stetson CPOR).
St. Pete Polls (October): 42% support (Florida Politics).

Polls aren't results, and lots of voters are still undecided. Smart land buyers are planning for both outcomes.

How Land Investors Can Prepare for Either Outcome

Underwrite two tax scenarios. Run your hold costs once with the current 10% cap and once with a 5% cap, and keep school taxes tied to market value in both.
Call the county before you buy. Ask whether impact fee studies or capital project delays are pending in the counties you target.
Watch the fast-growing commuter counties. Florida Politics notes that commuter counties with less commercial development rely more on homestead taxes, so they're the most exposed (Florida Politics).
Tighten your buy box. If fees or infrastructure timing change after November 3, refine your target counties, lot sizes and price ranges so sellers know exactly what still works for you. New to the idea? Start with what a land buy box is. For the national pricing picture, see our look at the 2026 land buyer's market and lot prices.

Post Your Florida Buy Box on LandMatch

LandMatch USA was founded in Fort Lauderdale. It's a map where land buyers post their buy box (target zones, acreage and price) so wholesalers and sellers know exactly what you want. Whatever voters decide on November 3, the buyers with the clearest criteria will see the right deals first. Post your buy box free at LandMatch USA and join a community of builders, investors and mobile home investors who share deals, buy boxes and lessons learned.

Post your buy box

Builders and land investors: tell wholesalers exactly which Florida land you buy.

Post your buy box

FAQ

Does Florida Amendment 3 lower property taxes on vacant land?

Not directly. It lowers the yearly cap on assessed-value increases for non-homestead property, including vacant land, from 10% to 5% for non-school taxes. School taxes stay tied to market value, and local governments can still change millage rates (PCPAO; CBS12).

When would Amendment 3 take effect?

If at least 60% of voters approve it on November 3, 2026, it takes effect January 1, 2027. The changes would first show up on the August 2027 TRIM notices and the November 2027 tax bills (PCPAO).

Could Amendment 3 raise impact fees for builders?

It could. The amendment doesn't stop local governments from raising fees, including impact fees, to replace lost revenue (Florida TaxWatch), and Bay County lists higher impact fees as one option (Bay County).

How much revenue would Florida local governments lose?

State economists estimate $8.775 billion in FY 2028-29, eventually reaching $11.86 billion a year (Florida Politics).

Is Amendment 3 expected to pass?

Recent polls put support between 42% and 56%, below the 60% it needs, with many voters undecided (Florida Politics; Stetson CPOR).

Sources

This article is for general information only and isn't tax or legal advice. Talk to a Florida tax professional about your specific property.