Miami leaders plan for Amendment 3 impacts
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After Florida voters approved Amendment 3, Miami-Dade government leaders must now work to address millions in lost property tax revenue that funds public safety and other government services.
Why it matters: Amendment 3, which will lower property taxes, could lead to service cuts or new taxes and fees, including on commercial buildings, which could increase rents.
Catch up quick: The amendment, which goes into effect in January, increases the homestead exemption from $50,000 to $150,000 by 2027 and then to $250,000 by 2028.
Zoom in: Miami Mayor Eileen Higgins tells Axios that she will work with commissioners and the administration to "make the necessary budget adjustments required by the new state law, while doing everything possible to protect the essential services our residents rely on."
- Amendment 3 is projected to cost Miami about $25 million in lost revenue in 2027 and $18.5 million in 2028.
In Miami-Dade County, Mayor Daniella Levine-Cava tells Axios she understands why voters prioritized financial relief, but Amendment 3 could affect "the safety, well-being and quality of life" for residents.
- The county is projected to lose an estimated $386 million in 2027 and $697 million in 2028.
- She said she'd work with commissioners and county administrators to "do everything we can to protect essential services."
Meanwhile, in North Miami Beach, a spokesperson tells Axios the city will not impose new fees, increase taxes or reduce services.
- In a statement, city manager Darvin E. Williams tells Axios the city will try to save money by streamlining operations, pursuing non-tax revenue generation and "expand[ing] our commercial tax base."
- "Our objective is not to replace lost property tax revenues by simply shifting the financial burden onto our residents through higher fees or taxes."
Amendment 3 will cost the city about $2.5 million per year in lost revenue, per the spokesperson.
- Williams says he's committed to "protecting public safety, preserving essential municipal services, and maintaining the City's long-term financial stability."
What we're watching: Gov. Ron DeSantis said Wednesday that he'll call a special session to implement Amendment 3 and limit local governments' ability to raise other taxes, Axios Hollywood reports.
- "We want to make people sure people are saving money," DeSantis said. "That's going to require a taxpayer bill of rights where we're not allowing to just go and put fees."