TAMPA, Fla. \u2014 As Florida voters prepare for the November election, Amendment 3 is drawing attention from homeowners, landlords and renters.<\/p>\n
The property tax measure would expand the homestead exemption for homeowners, reducing the amount of property tax revenue collected by local governments. It would also affect investors who own rental properties, which do not qualify for the homestead exemption.<\/p>\n
Under current law, property tax increases on rental homes are capped at 10% year over year. If Amendment 3 passes, that cap would be reduced to 5%.<\/p>\n
Supporters say the change could save rental property owners\u2019 money, savings they argue could be passed on to tenants. But opponents question whether landlords would actually lower rent and warn local governments could make up the lost revenue in other ways.<\/p>\n
John Jones, a Largo rental property owner who has owned and managed five rental properties for more than two decades, said the proposal could make a real difference.<\/p>\n
\u201cI\u2019m a numbers guy,\u201d Jones said. \u201cI\u2019m in the mortgage business, real estate business. So everything\u2019s numbers.\u201d<\/p>\n
Jones reviewed property taxes and assessed value increases for one of his rental homes over the past 10 years, comparing the current system with what would happen if Amendment 3 passed.<\/p>\n
\u201cIt would have been a difference of $80,000 in savings, tax savings for me, and that I would be able to pass on to the tenant,\u201d Jones said. \u201cThat equates to about $1,200 a year in tax savings. So it\u2019s $100 a month that I could reduce my rent and pass on to the tenant.\u201d<\/p>\n
However, opponents say there is no requirement in the amendment forcing landlords to pass savings along to renters.<\/p>\n
Lacey Lingelbach with the St. Pete Tenants Union is urging voters to reject the amendment.<\/p>\n
\u201cMore than likely landlords are not going to decrease the rental prices just because they\u2019re looking to make a profit off of us as renters,\u201d Lingelbach said.<\/p>\n
A FloridaHousing.org analysis<\/a> found that while Amendment 3 would protect investors through a lower year-over-year property tax cap, it would not prevent local governments from raising millage rates.<\/p>\n According to the analysis, apartment units could see an average property tax increase of about $406 a year by 2028. Single-family rentals could see increases of more than $1,000 a year.<\/p>\n