The amendment offers real tax relief, but not all residents and property owners would experience it equally.
This is the 2nd in a 3 part series on the impacts of Amendment 3 in St. Johns County. I’m not advocating for or against. My goal is to explain the full impacts as you make your decision on how to vote.
The most direct beneficiaries of Amendment 3 would be existing Florida homestead owners. But the dollar savings would depend on assessed value, current exemptions, location and the non-school millage rates applied to each property.
The Same Exemption Can Produce Very Different Results
A homeowner can use only the portion of the exemption that falls below the property’s assessed value. A home assessed at $125,000 cannot use a $250,000 exemption in full. A more highly assessed property can.
Using 2025 St. Johns County rates as a simplified illustration, compare a homesteaded property assessed at $200,000 with one assessed at $1 million:
| Estimated 2028 Bill Component | $200,000 Property | $1 Million Property |
| Non-school property taxes | $0 | $5,397 |
| School property taxes | $1,098 | $6,115 |
| Illustrative solid-waste assessments | $334 | $334 |
| Illustrative CDD assessment, if applicable | $1,486 | $1,486 |
| Estimated total with illustrative CDD | $2,918 | $13,333 |
The lower-assessed property could see its affected non-school tax reduced to zero. The $1 million property would still have approximately $750,000 subject to non-school taxes. School taxes and assessments remain in both examples.
Different Residents Different Results
Existing homestead owners would receive the expanded exemption directly. Other residents and property owners would be treated differently:
- New Florida residents would generally wait five years before receiving the expanded exemption, even though they begin using local services immediately.
- Renters would receive no automatic relief. The amendment permits the Legislature to create renter relief later but does not require it or establish an amount.
- Businesses, rental properties and second homes would not receive the homestead exemption. They could benefit over time from the reduction in the annual assessment-growth cap from 10% to 5%.
- Residents in St. Augustine or St. Augustine Beach could experience county, municipal and special-district effects.
The five-year residency distinction is especially relevant in fast-growing St. Johns County. New residents would contribute under a different exemption structure while adding to demand for roads, fire rescue, law enforcement, parks and other services.
The amendment provides meaningful relief to many homeowners, but it does not distribute either the benefit or the resulting local consequences evenly.
It’s important to consider the impact to renters. Rental properties and second homes do not receive the homestead exemption. They will continue paying the full ad valorem tax rate. While the assessment growth cap will reduce from 10% to 5% for these properties, the cost of those ad valorem taxes are most likely passed on to the renters in the form of higher rents across the county.
If Amendment 3 Passes Where Does St Johns County Find the Money
The County projects a $68.3 million first-year revenue reduction and is already reviewing projects, staffing, services and fees.
St. Johns County expects approximately $426 million in property tax revenue in Fiscal Year 2027. The Florida Office of Economic and Demographic Research estimates that Amendment 3 would reduce the County’s anticipated revenue by $68.3 million in Fiscal Year 2028.
The estimated reduction grows in subsequent years:
- $136.1 million in Fiscal Year 2029
- $152.5 million in Fiscal Year 2030
- $171.2 million in Fiscal Year 2031
- $191.6 million in Fiscal Year 2032
Compared with the County’s estimated FY 2027 property tax revenue, those figures range from approximately 16% to 45%. They do not mean the County will literally collect 45% less in 2032 than it does today. Property values, construction, millage rates and other variables will continue changing. They do show the scale of revenue removed from the expected tax base.
The state analysis separately projects losses for independent special districts within St. Johns County and for St. Augustine and St. Augustine Beach. Some residents could therefore experience the effects at more than one level of local government.
What Property Taxes Currently Support
The County’s FY 2027 adopted budget shows that property taxes support:
- 31% Sheriff’s Office
- 27% Fire Rescue and emergency services
- 13% Roads and transportation
- 7% Parks, recreation and libraries
- 7% County buildings and technology
- 5% General government
- 5% Constitutional offices
- 3% Health and human services
- 2% Economic development, housing and veterans services
These percentages do not identify which services would change. Any changes would require decisions through the public budget process.
The County Is Already Preparing
The County began reviewing the possible effects in May. Staff has examined services, staffing, contracts, capital projects, fees and alternative funding sources.
- Approximately $100 million in capital improvement projects have been placed on hold pending the election outcome.
- Approximately $8.6 million associated with current vacancies and proposed or paused positions has been identified for reassessment.
- The County has reviewed 1,137 existing fees and several dozen possible new fees.
A project placed on hold has not necessarily been canceled. It may eventually continue, be phased, be redesigned or receive funding from another source. But the review identifies the choices that could follow: delayed projects, unfilled positions, changes in service levels, higher user fees, new assessments or alternative revenue sources.
At the recent St. Johns County Town Hall, County Administrator Andrews explained that even though a capital project is fully funded, the county has to consider the on-going maintenance of that project. An example used was a new library. The building may be funded and could be completed. The county then has to fund staff, initial materials and their on-going maintenance, and on-going maintenance of the building.
Also brought up in the recent Town Hall was the $61.2 Million in reserves. The County shared that yes, reserves could help with this transition but there is no recurring revenue to replace those reserves. They cannot be a continued source of replacement funding.
Inflation or Cost Shifting?
Some officials have warned that Amendment 3 could create substantial local inflation. Cost shifting is probably the more accurate description.
The amendment would not directly raise the price of groceries, gasoline, insurance or other goods throughout the local economy. But services now supported collectively by property taxes could increasingly be funded through user fees, special assessments or other charges. Businesses and landlords might pass some additional costs to customers or tenants. Delayed infrastructure could impose less visible costs through congestion and reduced capacity.
One example presented has been if there is insufficient funding from the remaining 7% for parks and libraries, maybe services that had previously been free to county residents shift to fee-based usage. This could impact those who make the most use of these free services today.
The clearer question is whether residents will pay less overall or simply pay differently.
The final article will consider the larger governance issue: who controls local budgets when Tallahassee limits the revenue, but local officials remain responsible for the services.
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