The passing of Amendment 3 has now put Florida cities on notice to find ways to handle the anticipated loss of revenue.
"I was interviewed a couple of years ago when this first came up, and I said, 'What are we going to do, have a bake sale,' and here we are," says Lake Worth Beach Mayor Betty Resch.
WATCH REPORT BELOW:
Florida Cities Chart Uncertain Future Under Amendment 3According to Florida Tax Watch, Lake Worth Beach stands to lose $2.9 million in the first year of the higher homestead exemption and $5 million in the second year.
"We can't just keep raising the fees. We can't charge somebody if they want to go to the library," Resch said.
Voters made a statement on affordability, with 62% approving the referendum. The measure raises the homestead exemption to $150,000 in 2027 and $250,000 in 2028, which will mean savings on property tax bills.
Local governments that depend on property tax revenue now face tightening budgets by making cuts, reducing services and possibly finding new ways to raise revenue.
"We don't charge yet for parking downtown, and every time we talk about it, everybody flips out because they don't want it and neither do I," Resch said. "I don't know where we're going to go. I don't know what we're going to do."
