Sample ballots that arrived in Monroe County voters’ mailboxes last week feature three proposed amendments, or changes, to the state constitution, and only one of them — Amendment 3 — has received any attention. We’ll get to that one in a moment.
Each proposed constitutional change asks voters to answer yes or no to a question many of them didn’t expect and don’t understand.
“I don’t even know what they’re asking,” one college-educated and politically astute Key West resident told the Keys Weekly last week. “And I’m a reasonably well-informed voter.”
The nonpartisan voter education nonprofit organizations, Ballotpedia and Florida TaxWatch, compiled analyses of each amendment, which will require approval by 60% voters to be enacted.
Amendment 1 – Budget Stabilization Fund
This amendment received bipartisan support in the Florida legislature and would require state lawmakers to put $750 million each year into the state’s Budget Stabilization Fund, one of the state’s savings accounts for emergencies, such as a hurricane or economic recession. Amendment 1’s supporters include state Senate President Ben Albritton and state House Speaker Daniel Perez, who noted that putting more money into the state’s reserves shows fiscal responsibility and can help avoid drastic tax increases or cuts to services in the event of an economic crisis or budget shortfall.
Florida TaxWatch also supports a “yes” vote on Amendment 1, although the group notes that the recommendation was not easy, as the amendment will force lawmakers to put $750 million a year into the Budget Stabilization Fund, which is just one of three “rainy-day funds” that currently contain a total of about $16 billion for emergencies.
“If Florida has enough tax revenue to add billions of dollars to already robust reserves, perhaps more should be returned to the taxpayer,” states Florida TaxWatch. “On the other hand, if a serious recession or other economic downturn occurs, reserves can protect taxpayers from tax increases when they can least afford it. In the end, it is hard to turn down a legislature offering to save more money.”
Governor Ron DeSantis, however, opposes Amendment 1, saying, “We already have a maxed-out rainy day fund and have run the largest surpluses in state history. Any additional revenue should be used for lower taxes, including assisting local governments with grants so that homestead properties can be exempt from local property tax…. “
Amendment 1 would not directly raise or lower taxes for Floridians, but rather dictates how much of the state’s tax revenue is set aside for emergency reserves.
Amendment 2 – Exemption of Tangible Personal Property on Agricultural Land from Taxation
Um, what?
In English, Amendment 2 would eliminate taxes paid on farm equipment, tools and other belongings that are typically present on land used for agriculture and agritourism activities. Such equipment is considered tangible personal property, which refers to physical, movable assets such as furniture, machinery, tools and equipment, as opposed to real property, which typically pertains to land and permanent structures on that land.
Amendment 2 would eliminate the tax on agricultural tangible personal property, meaning farm equipment and tools. The proposal received significant bipartisan support in the state legislature, and Florida TaxWatch recommends a “yes” vote on Amendment 2, stating,
“Florida TaxWatch research has shown that this tax on tangible personal property (TPP) is burdensome to comply with and has other negative attributes that make TPP taxes a good candidate for reduction or repeal. Amendment 2 is a way of chipping away at this onerous tax.”
Amendment 3 – Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments
This one has gotten a significant amount of attention, locally and statewide. Amendment 3 would increase the homestead exemption on primary residences to $150,000 in 2027 and $250,000 in 2028, meaning a home’s taxable value would be lowered by those amounts. The amendment also would lower the cap on property value increases for non-homestead property, from 10% to 5%, meaning a non-homestead property’s taxable value could only increase by 5% each year.
Supporters contend that Amendment 3 “is needed to stem the rapid rise of property taxes in Florida and that Florida families need tax relief,” according to Ballotpedia. “Supporters say local government spending is out of control, and this will force them to cut unnecessary spending. Some say there is enough waste to avoid significant cuts to essential services.”
Opponents of Amendment 3 say, “it will require extensive budget cuts to essential county and municipal services like police and fire protection,” states Ballotpedia. “They say the amendment has no assistance for local governments facing these deep cuts. Others say that property tax exemptions are not tax cuts as much as they are tax shifts, increasing the burden on non-homestead properties, and hurting renters and small businesses.
“Another concern voiced by many is how hastily this proposed amendment was put on the ballot, as it was passed by the legislature a week after it first surfaced,” Ballotpedia states.
The ballot summary was criticized for being misleading and written in a way that sounded like a campaign brochure touting its passage. A judge agreed, and the amendment’s summary had to be rewritten before it could appear on the ballot.
Florida TaxWatch recommends voting “no” on Amendment 3, stating, “The largest fiscal change in the history of Florida government should not be sent to the ballot one week after the initial proposal surfaced. Florida TaxWatch believes that the entire process behind getting Amendment 3 onto the November ballot was rushed, did not secure appropriate input from impacted stakeholders, and, even with the ballot summary rewrite, some may still be unclear about what they are voting on.”
The nonpartisan taxpayer watchdog group adds, “Tax relief for Floridians is certainly justified, but relief is needed by homestead property owners and non-homestead property owners alike.” For the full analyses visit ballotpedia.org and floridataxwatch.org.
