Key Biscayne stands to lose more than $2 million a year in property-tax revenue after Florida voters approved Amendment 3 on Tuesday, Nov. 3.

The constitutional amendment raises the homestead exemption on non-school property taxes to $150,000 in 2027 and $250,000 in 2028. It takes effect Jan. 1, 2027.

Unofficial statewide results showed the measure receiving about 62% of the vote, clearing the 60% threshold required to amend the Florida Constitution, according to the Islander News. In Miami-Dade County, unofficial returns showed approximately 65.6% support.

What it means for Key Biscayne

The hit to the Village budget will grow over three years. The Florida Office of Economic and Demographic Research estimated the reduction in Village property-tax revenue at:

  • $1,051,068 in fiscal year 2027-28
  • $2,039,220 in fiscal year 2028-29
  • $2,245,804 in fiscal year 2029-30

Those figures represent projected revenue reductions, not budget or service cuts already approved, the Islander News reported. Village Chief Financial Officer Benjamin Nussbaum shared the state estimates after the Office of Economic and Demographic Research revised its projections in August, according to a September Islander News report.

No post-election statement from Village officials appeared in public records as of publication.

County-level impact

Miami-Dade County estimates it will collect $385.8 million less in property taxes in the budget year beginning in October 2027, growing to $696.7 million the following year, The Center Square reported. The county uses property taxes to help fund fire rescue, roads, libraries and other services.

Miami-Dade Tax Collector Dariel Fernandez, who publicly supported the amendment, said the result reflected homeowners' concerns about rising costs. In an official statement, Fernandez warned local governments against clawing back the savings.

"Tax relief must reach the taxpayer," Fernandez said. "I will oppose efforts to take that relief back through higher rates or new fees."

Other changes in the amendment

The measure also lowers the annual cap on assessed-value increases for rental and commercial properties from 10% to 5%. People who are not Florida residents by Dec. 31, 2026, generally must wait until their fifth year of homestead eligibility to receive the larger exemption. Inflation adjustments to the exemption begin in 2029.

Individual homeowner savings will depend on a property's assessed value and local tax rates. The exemption applied to school district taxes does not change.

The amendment also directs state lawmakers to create a process for cities and counties to exempt up to a home's full assessed value from their own property taxes.

How the Village plans to absorb the revenue reduction remains an open question heading into the next budget cycle.