Florida’s proposed property tax amendment, which residents will vote on come November, is garnering more criticism than expected.
That could be because the ballot item, which now has a new name and language thanks to a court-ordered rewrite, may create more problems than solutions.
Late last month, the Florida chapter of the Fraternal Order of Police announced it opposes Amendment 3, even though the organization supports property tax relief. The Florida Fire Chiefs’ Association and the Florida Sheriffs Association also opposed the amendment.
“We oppose the current Amendment 3 because it creates far too much uncertainty about how local governments would continue to fund law enforcement, fire rescue, emergency medical services, and other critical public safety functions. Public safety should never become collateral damage with uncertain fiscal consequences,” Florida’s FOP said in a statement, according to WLRN.
The proposed amendment would raise the $50,000 homestead exemption on primary residences to $150,000 in 2027 and $250,000 in 2028. Beyond that, the Florida Legislature would raise the exemption based on the consumer price index, which is a little murky. Under the proposal, annual assessment increases on non-homesteaded property (including commercial real estate) would be capped at 5 percent, down from the current cap of 10 percent.
The constitutional amendment would require 60 percent approval from voters to become law.
The measure was pushed by Gov. Ron DeSantis, but he is not actively campaigning for it, though he said he will vote for it.
“Even the governor himself said he had second thoughts about this very amendment, and for good reason, because it really wasn’t well thought out,” said Fort Lauderdale Mayor Dean Trantalis. Trantalis spoke on a panel I moderated at the Tower Club in Fort Lauderdale, which also included Broward County Property Appraiser Marty Kiar and Boca Raton Mayor Andy Thomson.
Trantalis and Thomson spoke about tough decisions ahead should the measure pass. Local governments and other groups are looking at how the amendment would affect budgets, including for parks and other government services, and nonprofits that rely on local funding — food banks, children’s charities and others.
“Now is an opportunity for us to have that honest discussion about reducing property taxes, but do it in a way that makes more sense for not just the property owner, but also the property owner and the citizen that lives in our communities, that visit our communities, and expect a certain level of service that they come to enjoy, which makes the quality of life here so great,” Trantalis said.
Last week, the amendment got a rewrite by Florida Attorney General James Uthmeier after Tallahassee Judge David Frank ruled its language was misleading and “more akin to a political slogan.” The new referendum eliminated language that included “protecting small businesses” and “ensuring fairness for Florida residents.”
If it passes, the amendment would affect local counties and cities differently based on how much of the pie property taxes take up. Florida has 411 municipalities, including 67 counties.
“You may have some municipalities that say, ‘We have a certain level of service that people are used to. We have fantastic police and fire, roads and bridges, our parks and libraries are awesome. What we’re going to do is we’re going to raise the millage rate. We’re going to increase fees. We’re going to find ways to bring that revenue in,’” Kiar said. “You also might have other municipalities and other counties say, ‘You know what? The people voted for a tax cut. We’re just going to cut.”
What we’re thinking about: Why did Hillstone Bal Harbour close abruptly? What other big restaurant closures have you heard about? Send me a note at kk@therealdeal.com.
CLOSING TIME
Residential: The estate of Sydell Herrick sold the oceanfront lot at 625 Ocean Boulevard in Golden Beach for $24 million. A company managed by spec developer David Rodriguez, who intends to build a home on the 0.6-acre site, bought the property.
Commercial: In Delray Beach, the senior living community at 6589 and 6595 Morikami Park Road changed hands for $140 million. An affiliate of PGIM Real Estate sold the property to an LLC tied to Artemis Real Estate Partners, based in Chevy Chase, Maryland.
— Research by Mary Diduch
NEW TO THE MARKET
An over 5-acre portion of Gordon Pointe in Naples returned to the market, asking $195 million. The properties at 100 and 104 Bay Road, with 722 feet of “pristine, white sand beach,” according to the listing, are listed with Tim Savage of Gulf Coast International Properties. They’re in Port Royal, one of Naples’ most exclusive communities.
A thing we’ve learned
Venture capital billionaire Josh Kushner, whose brother Jared is married to Ivanka Trump, is part of the $12.5 billion bid for the Los Angeles Lakers, which includes former Disney CEO Bob Iger. If approved, it would mark the highest price ever paid for a professional sports team. Kushner would have to sell his 5 percent stake in the Miami Heat — Kushner’s interest in the Heat was previously unreported.
Elsewhere in Florida
- Miami Beach Commissioner David Suarez accused the city’s police department of retaliation after he was pulled over while driving a golf cart. Suarez is calling for the officers involved to be fired after reviewing how the department handled an investigation into explicit messages, while the police union insists Suarez is making baseless allegations, WSVN reported.
- Jeff Bezos’ Blue Origin is expanding on the Space Coast, according to the Orlando Sentinel. The company revealed details for plans to build out a second launch pad to support the New Glenn rocket, a new vertical integration facility, and a new payload processing facility.
