Why to Vote NO on the Proposed Property Tax Amendment – “Real Estate Matters” 6-13-26

For nearly 12 years, Real Estate Matters has been the voice of real estate in Palm Coast and Flagler County, Florida. Veranda Bay, the new luxury Intracoastal Community in Flagler Beach, sponsors the show.

How much local property tax revenue will be lost if the proposed amendment passes? And with no plan to replace the lost revenue. Hear what the Flagler County Property Appraiser has to say. 

Watch the Poscast and read the Show Notes for more details.

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Be sure to check out the new Flagler County Map of Developments and Subdivisions.

Raw Show Notes

Our behind-the-scenes guide to the show’s flow, including topics we didn’t have time to get to on the show. This is raw and likely contains typos. Data reflects the date of the show’s recording.

Show Notes for 6-13-2026

Recorded 6-10-2026

Welcome to the tranquil side of Florida. This is Real Estate Matters, the voice of real estate in Flagler County and Palm Coast for nearly 12 years.

I’m Toby Tobin, publisher of real estate news website, GoToby.com, and a Florida-licensed Realtor with Grand Living Realty. Annamaria is out of the studio today. I’m joined by Jay Gardner, Flagler County Property Appraiser.

Thanks to Our Sponsors:

• Our Lead Sponsor is Veranda Bay – A private developing community of lots and luxury homes on the Intracoastal Waterway in Flagler Beach, featuring custom homes by Olsen Homes, AR Homes by Arthur Rutenberg, ICI Homes, and Hulbert Homes. Newly opened sections feature homes by Toll Brothers and Dream Finders. To learn more, visit VerandaBay.com.
• Flagler County Home Builders Association
• Hammock Community Church – On A1A in The Hammock – Small enough to know you but large enough to serve you. North of the toll bridge with the message sign out front. It’s not just for Hammockians. Like me, many people cross the bridge.

Guest: Jay Gardner, Flagler County Property Appraiser

Brief stats update

• 93 homes sold at a median price of $373,925 vs 230 at $358,445. DOM=52
• First 5 months’ comparison
• Homes sold – up 12.5%
• Median price – up 1.9%
• $/SF – down 0.5%
• Sales volume – up 13.1%
• SFR building permits – down 12.4%
• Foreclosure filings – up from 84 to 134
• Foreclosure completions – up from 13 to 19
• Open foreclosure cases – up from 175 to 293

Foreclosures are still low but are reappearing again after years of historic lows that tracked mortgage interest rates.

Today’s topic – the proposed property tax constitutional amendment.

1. The “Super” Homestead Exemption Expansion

The core of the amendment is a massive increase in the homestead exemption for primary residences, phased in over two years. This exemption applies only to non-school property taxes (city, county, and special district levies).

• January 1, 2027: The non-school homestead exemption jumps from the current $50,000 to $150,000.
• January 1, 2028: The exemption increases to $250,000.
• 2029 and Beyond: The $250,000 cap will automatically adjust upward annually to keep pace with inflation.

The School Tax Exception: School district taxes are explicitly excluded from this expanded exemption. Homeowners will continue to pay the school-board portion of their property tax bill (which typically accounts for roughly 40% of the total bill). Even with this carve-out, the Governor’s office estimates the $250,000 exemption will entirely wipe out the non-school property tax liability for about 60% of Florida homestead owners.

2. The Five-Year Residency “Waiting Period.”

To prevent the tax cut from triggering an immediate real estate migration wave and straining local resources, lawmakers built in a strict tenure requirement:

• Established Residents: The full $150,000/$250,000 exemptions are immediately available to homeowners who are permanent Florida residents as of December 31, 2026.

New Residents: Anyone moving to Florida or establishing a new homestead after January 1, 2027, will be limited to the baseline $50,000 homestead exemption for their first five consecutive years. Only after five years do they unlock the “super” exemption tiers.

3. Commercial and Rental Property Relief

To ensure that cities and counties don’t simply shift the tax burden onto local businesses to make up for lost residential revenue, the amendment caps non-homestead properties:

• The annual assessment growth cap for commercial properties, secondary homes, and rental properties will be cut in half—dropping from the current 10% annual limit down to 5% beginning January 1, 2027.

4. Strict Mandates on Local Government Spending

Because this amendment will pull billions of dollars out of municipal budgets, it places a tight constitutional collar on how local governments can spend their remaining ad valorem (property tax) revenues. Moving forward, property tax dollars can only be spent on seven strict categories:

1. Public Safety: Law enforcement, fire services, and emergency medical services (EMS).
2. Public Education: Supporting local schools beyond standard operational school taxes.
3. Critical Infrastructure: Road and bridge construction/maintenance, stormwater systems, etc.
4. Natural Resource Projects: Flood control measures and environmental management.
5. Local Bond Obligations: Fulfilling voter-approved debt.
6. Employee Pensions: Retirement benefits for local government employees.
7. Core Government Operations: Basic administration necessary to keep local government running.

5. A Path to Full Elimination

The text of the amendment directs the Florida Legislature to establish a uniform schedule and procedure via general law that would allow counties, cities, and special districts to further reduce property taxes—up to the full 100% elimination of remaining homestead property valuations in the future.

What Happens Next?

Because this is a constitutional amendment, the Legislature’s vote only earned it a spot on the ballot. It now heads to the voters on the November 2026 ballot, where it requires a supermajority approval of 60% to become law. Ahead of the vote, property appraisers will be required to mail notices to all property owners estimating their individual savings, and the state will launch a public transparency website to calculate the impacts.

1. There is no plan to replace the lost revenue. It’s like sitting on the toilet before checking to see if there is toilet paper nearby.
2. Be careful what you wish for. Florida has historically kept residents’ taxes low by exploiting tourists, non-homesteaded homeowners, businesses, and recent arrivals. Will replacement revenues be so biased to current residents? Doubtful.
3. How many dollars of Taxable Value will be lost in each of our jurisdictions? Can you put a tax revenue value on those numbers?
4. Our aging demographic means that we will be hit harder than other counties in the state.
5. It seems that renters will suffer as landlords will pay more taxes. That is a negative since I am about to transition from a highly favored homestead status ($64,624 of taxable value vs $151,559 of protected value) to the rental sector.
6. At the end of the day, only people pay taxes and fees. We’re simply shifting the burden around and obfuscating its sources for political reasons.
7. To what extent do you see this as a usurpation of home rule?
8. Those Palm Coast City Council members who voted against the franchise tax on FPL should be hanging their heads in shame today. Imagine the fee collection possibilities from the soon to open cable landing station in Town Center.
9. The True Value of my home is dropping this year but my Assessed Value will be going up. I understand why, but many of our listeners probably do not. Please explain.

Wrap up:

Video podcasts of Real Estate Matters are available on GoToby.com. Click on Podcasts on the top navigation bar. Show notes are included so you can see what we didn’t get to on the show. Also, on GoToby.com – the Flagler County Interactive map of residential developments and subdivisions, updated regularly.

Call me first before buying or selling property in Flagler County. You’ll get a referral to a top-notch agent or builder, with me as your knowledgeable consultant throughout the transaction (at no additional cost to you).

Call me at (386) 931-7124 or email me at Toby@GoToby.com

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