Florida Amendment 3: What It Could Mean for Treasure Island Homeowners, Buyers and Sellers
Updated August 2026
Florida voters are expected to consider a significant property tax proposal during the November 3, 2026 general election. Known as Amendment 3, the proposal could change the homestead exemption available to Florida residents and reduce the annual assessment cap for many non-homestead properties.
For Treasure Island homeowners, the potential impact depends heavily on how the property is used. A primary residence, second home, vacation rental and investment property may each be affected differently.
What Would Amendment 3 Change?
If approved, Amendment 3 would increase the homestead exemption for taxes levied by counties, municipalities and other non-school taxing authorities.
The proposed exemption would increase:
- To $150,000 in 2027
- To $250,000 in 2028
- Annually thereafter based on inflation
The increased exemption would not apply to school district property taxes.
The proposal would also reduce the annual assessment-growth cap for many non-homestead properties from 10% to 5%. This portion may be especially relevant in Treasure Island, where many properties are used as second homes, seasonal residences, vacation rentals or investment properties.
Florida constitutional amendments require approval from at least 60% of voters. If Amendment 3 does not reach that threshold, the proposed changes will not take effect.
Who Could Benefit From the Increased Homestead Exemption?
The expanded exemption would primarily benefit owners who qualify for Florida’s homestead exemption because the property is their permanent primary residence.
Longtime Treasure Island residents who already receive a homestead exemption could potentially see a meaningful reduction in the non-school portion of their property tax bill.
The result would not be the same for every homeowner. Actual savings would depend on several factors, including:
- The property’s assessed value
- Existing Save Our Homes benefits
- Local millage rates
- The portion of the tax bill attributable to school taxes
- Additional exemptions for which the owner may qualify
A homeowner currently paying $6,000 per year in property taxes should not assume that the entire bill would be reduced proportionately. School district taxes would remain, and the exemption would only reduce the taxable value used by qualifying non-school taxing authorities.
What About New Florida Residents?
Timing could become particularly important for people planning to establish a new Florida homestead.
Under the current proposal, owners who do not meet the applicable Florida residency and homestead requirements by the end of 2026 may initially receive the existing homestead exemption when they qualify. The increased exemption would generally become available beginning with their fifth year of exemption, subject to the final approved language and applicable law.
Simply purchasing a home before December 31 would not automatically guarantee eligibility. Homestead qualification depends on ownership, occupancy and use of the property as a permanent residence.
This distinction could become an important consideration for people relocating to Treasure Island and planning to make Florida their primary home.
What Would Amendment 3 Mean for Second Homes and Vacation Rentals?
Many Treasure Island properties do not qualify as homesteads because they are used as second homes, seasonal residences, short-term rentals or other investment properties.
These owners would not receive the proposed $150,000 or $250,000 homestead exemption. However, they could benefit from the proposed reduction in the annual non-homestead assessment cap from 10% to 5%.
The cap limits how much a property’s assessed value may increase annually. It does not necessarily limit the property tax bill itself, and it generally does not protect a new owner from reassessment following a change in ownership.
This is important for both buyers and sellers. A seller’s current tax bill may reflect years of assessment limitations and should not be used as an estimate of what a buyer will pay after purchasing the property.
Treasure Island has many waterfront condominiums, vacation rentals and investment properties. Understanding the intended use of a property is essential when evaluating its potential tax treatment and total ownership costs.
Why This Matters in Treasure Island
Treasure Island has a unique mix of waterfront primary residences, beachfront condominiums, second homes, condo-hotels and short-term rental properties. A statewide property tax change may therefore affect owners and buyers in very different ways.
A buyer purchasing a waterfront home as a permanent residence may evaluate Amendment 3 differently from an investor purchasing a vacation rental. Likewise, a longtime homesteaded owner may have a very different tax position from someone moving to Florida after 2026.
The proposed changes could influence:
- The cost of owning a Treasure Island primary residence
- Long-term planning for retirees and Florida residents
- Buyer comparisons between primary residences and second homes
- Holding costs for vacation rental and investment properties
- Conversations about purchasing or establishing residency before the end of 2026
Could Amendment 3 Affect the Treasure Island Real Estate Market?
It is too early to know exactly how the market will respond. Amendment 3 must first receive voter approval, and the final effect will depend on implementation and each owner’s eligibility.
However, the proposal may create additional interest among buyers considering Florida residency. Some buyers may decide to evaluate their plans before the end of 2026, particularly if establishing a Florida homestead is already part of their long-term strategy.
The amendment could also create confusion. Buyers may hear about a $250,000 exemption and assume that it applies to every Florida property. It does not. The proposed expanded exemption is tied to homestead eligibility and would not apply to school district taxes.
Clear information will be essential when comparing properties and estimating future ownership costs.
What Should Treasure Island Sellers Know?
Sellers should be prepared to explain how their property is currently used, whether it receives a homestead exemption and why a buyer’s future tax bill may be different.
Property marketing should not promise a specific tax savings or represent that a buyer will qualify for the expanded exemption. Instead, sellers and their agents can provide the property’s current tax information while making it clear that the buyer’s assessment and exemptions may change after closing.
For waterfront and coastal properties, taxes are only one part of the ownership picture. Buyers are also evaluating flood and wind insurance, elevation, seawall condition, dock and lift features, boating access, rental restrictions and overall maintenance costs.
Presenting this information clearly can help buyers make more confident decisions.
What Happens Next?
Amendment 3 is scheduled to appear on Florida’s November 3, 2026 general election ballot. It will require at least 60% voter approval to pass.
Because the ballot title and summary have been involved in legal review, the wording voters ultimately see may be revised. Homeowners can follow updates through the Florida Division of Elections and review local information provided by the Pinellas County Property Appraiser.
Considering Selling or Buying in Treasure Island?
Amendment 3 could become an important part of Florida real estate conversations during the remainder of 2026. Its potential impact will depend on whether the property is a primary residence, second home or investment property, as well as the owner’s eligibility and timing.
If you are considering selling a waterfront home, beachfront condominium, vacation rental or investment property in Treasure Island, I would be happy to help you evaluate the current market, review your competition and understand how issues such as property taxes may affect buyer decisions.
Contact Jill Helgren to discuss selling or buying real estate in Treasure Island.
Jill Helgren Coastal Properties Group International | Forbes Global Properties
