Palm Coast Provides Information on Proposed Property Tax Amendment

Palm Coast residents will see a proposed constitutional amendment addressing property taxes on the November 3 General Election ballot. The City of Palm Coast is providing information about the amendment and its potential local financial impacts to help residents understand the impacts before voting.

If approved by at least 60% of voters, Florida’s Amendment 3 would:

• Increase the homestead exemption for property taxes other than school district taxes from $50,000 to $150,000 beginning in 2027 and to $250,000 beginning in 2028. 
• Reduce the annual assessment increase cap for certain non-homestead properties from 10% to 5%. 
• Make additional changes to how property tax revenue may be used by local governments. 

Property taxes are one source of funding for the City's General Fund, which supports services including fire, law enforcement, streets, parks, recreation, administration, and community development.

The Florida League of Cities estimates that Palm Coast could see a reduction in property tax revenue of approximately $12.4 million in 2027 and $21.7 million in 2028 if the amendment takes effect. These figures are projections and the actual impact could vary. 

Ad valorem property taxes fund approximately $45.5 million of the City’s General Fund. Public safety represents one of the City's largest General Fund commitments. In FY2026, Palm Coast budgeted approximately $15.2 million for fire services and $11 million for law enforcement, or approximately $26.2 million combined.

A significant reduction in property tax revenue could affect the City's ability to maintain current service levels, address the needs of a growing community, maintain infrastructure, and fund future priorities.

No decisions have been made regarding service reductions or other changes. If the amendment passes, the City would evaluate its budget, service levels, capital plans, and legally available revenue options.

There is no single revenue source currently available to the City that would fully replace a loss of this magnitude. Addressing a significant reduction could require a combination of budget adjustments, spending reductions, fees, and other legally authorized revenue options.

The City of Palm Coast is providing this information for educational purposes. The City's intent is to provide residents with factual information about the proposed amendment and its potential local implications so residents can make their own informed decisions. The City of Palm Coast does not advocate for or against the ballot measure.

For additional information and to learn more about Amendment 3 and the City of Palm Coast, please visit palmcoast.gov/2026-florida-amendment-3

The 2026 General Election is November 3, 2026.

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