This so-called \u201cSave our Homes from Excessive Property Taxes<\/a>\u201d amendment now heads to the November 2026 ballot, putting the future of local public finance decisions in the hands of Florida voters.<\/p>\n First of all, ad valorem taxes make up about 72% of Key Biscayne’s annual revenue.<\/p>\n Of the 7,395 parcels in Key Biscayne on Miami-Dade County\u2019s tax roll, 2,777 (37.5%) are homesteaded, meaning that the property is the principal residence (as opposed to investment property or secondary home) of a natural person.<\/p>\n Homesteaded property owners could save approximately $1,000-plus off their entire tax bill, according to an analysis by the Orlando Sentinel<\/a> this past weekend.<\/p>\n Village of Key Biscayne Chief Financial Officer Benjamin Nussbaum explained to Islander News that just the Village proportion of tax savings (using the current millage rate of 2.8846 mills) for homesteaded property owners would be:<\/p>\n \u2022 Year 1 (2027, $150K exemption): approx. $288 in Village tax savings<\/p>\n \u2022\u00a0Year 2 (2028, $250K exemption): approx. $576 in Village tax savings<\/p>\n Nussbaum said three things to keep in mind are:<\/p>\n 1. The new exemptions replace the existing $50,000 exemption, so the real added break is $100,000 in Year 1 and $200,000 in Year 2.<\/p>\n 2. The $1 million and $2 million homes (for example) save the same amount. The exemption is a flat dollar amount off assessed value, so every homestead above $250,000, which is nearly all of them on the island, receive the identical Village savings. The home’s value doesn’t change it.<\/p>\n 3. This is only the Village’s portion. The same exemption also applies to the County and other (non-school) taxing authorities on the property tax bill, so a homeowner’s total savings would be larger.<\/p>\n Those additional savings would come from the Miami-Dade County Property Appraiser.<\/p>\n The proposed constitutional amendment<\/a> could reduce Key Biscayne’s annual property tax revenue by as much as $1.6 million by 2028, according to preliminary estimates<\/a> from Nussbaum.<\/p>\n \u201cBased on the draft language … (and) using the Village\u2019s 2025 tax roll of 2,777 homesteaded properties,” he said, the estimated annual ad-valorem impact would be:<\/p>\n Village CFO Benjamin Nussbaum at his desk.<\/p>\n \u2022 2027: $150,000 homestead exemption (increase of $100,000 over today\u2019s baseline): approximately an $800,000 annual reduction;<\/p>\n \u2022\u00a02028: $250,000 homestead exemption (increase of $200,000 over today\u2019s baseline): approximately a $1.6 million annual reduction.<\/p>\n As of press time, Nussbaum was gathering data and planned to deliver further explanations about the possible tax reduction impact to the Village at Tuesday night’s Village Council meeting.<\/p>\n Meanwhile, there was good news for the Village government, at least, when the June 1 estimated 2026 taxable values<\/a> from the Miami-Dade Taxing Authority were released.<\/p>\n Those figures have shown a significant increase in taxable values on Key Biscayne, rising $491 million, or 4.2%, from last June 1. The June 1 estimate totals $12.2 trillion, including $640 million in new construction.<\/p>\n Taxable values also have climbed throughout most of Miami-Dade, including nearby Coral Gables (6.5%), Pinecrest (5.8%) and the City of Miami (5.7%).<\/p>\n Also of importance is the 5.5% County-wide average increase in value.<\/p>\n What the amendment does<\/p>\n If approved by at least 60% of voters, the constitutional amendment would do five things:<\/p>\n 1. Grants the $250,000 super homestead exemption for non-school levies to homeowners who are Florida residents on or before December 31, 2026.<\/p>\n 2. New Florida residents will receive a homestead exemption of $50,000 for four years, after which they will be eligible for the $250,000 super homestead exemption.<\/p>\n 3. If passed by Florida voters, beginning on January 1, 2027, homeowners will have access to a $150,000 homestead exemption. The super exemption increases to $250,000 on January 1, 2028, and increases by inflation every year thereafter.<\/p>\n 4. The amendment does not apply to ad valorem taxes collected by school boards.<\/p>\n 5. To ensure funding for critical functions of local government, the amendment requires cities and counties to use remaining property tax revenue for the following:<\/p>\n \u2022 Public safety, including law enforcement, fire service, and emergency medical service<\/p>\n \u2022\u00a0Education and public schools (additional funds beyond operational expenses covered by school board taxes)<\/p>\n \u2022\u00a0Road and bridge construction and maintenance, stormwater control, and other infrastructure projects<\/p>\n \u2022\u00a0Natural resource projects, including flood control measures<\/p>\n \u2022\u00a0Retirement benefits of local government employees<\/p>\n \u2022\u00a0Bond obligations<\/p>\n \u2022\u00a0Operations and administration of county officers and commissioners and municipalities, and approved expenditures thereof<\/p>\n In addition, it would ensure local governments do not pass along the cost of homestead property relief on to small businesses, the amendment provides additional tax savings for non-residential property. Currently, the assessment increase for a non-residential property is limited to 10% annually. The amendment limits the annual assessment increase to 5% beginning January 1, 2027.<\/p>\n As a result of all this, local governments would need to find ways to supplement the lost tax revenue to at least keep the status quo in place.<\/p>\n According to the Tax Foundation<\/a>, property taxes are the cornerstone of local government revenues, accounting for 74%<\/a> of local tax collections in Florida as of fiscal year (FY) 2023.<\/p>\n Homestead property accounts for 46.6%<\/a> of the just value (market value) and 36.1% of the taxable value of all real property in Florida, making it a large share of Florida\u2019s property tax base<\/a>.<\/p>\n<\/p>\n