Information for Pinecrest Residents

Understanding the Proposed Constitutional Amendment

On November 3, 2026, Florida voters will consider a proposed amendment to the Florida Constitution that would make significant changes to the state's homestead property tax system.

Our Commitment to Residents

Because the proposed amendment could affect qualifying homeowners, local governments, and municipal services throughout Florida, the Village of Pinecrest is committed to providing residents with accurate, factual, and transparent information about what the amendment would do, what it would not do, and how it would affect Village finances and services if approved.

Florida law prohibits municipalities from using public funds to advocate for or against ballot measures. Accordingly, the Village does not endorse or oppose the proposed amendment.

This webpage is provided solely for informational purposes to help residents understand:

• What the amendment proposes
• How it would affect qualifying homeowners
• How it would affect Village finances
• What is currently known based on available information

Why Is the Village Providing This Information?

Residents often ask why the Village is discussing a state constitutional amendment.

The answer is straightforward: property taxes are the Village's primary locally controlled source of revenue.

• Nearly half of the Village's operating revenues are generated through ad valorem property taxes. Those revenues fund and support the municipal services residents rely on every day.
• Because the proposed amendment would significantly affect those revenues, the Village believes it is appropriate to provide factual information regarding the potential financial impacts and how they would affect municipal operations.
• The Village's goal is not to influence how residents vote, but to ensure residents understand how the amendment would affect local government operations if approved.

At a Glance

*Estimate based on current information. Actual impacts will depend on voter approval, implementing legislation, and final State guidance.

What Would the Amendment Do?

If approved, the amendment would:

• Increase Florida's homestead property tax exemption to $150,000 beginning January 1, 2027.
• Increase the exemption to $250,000 beginning January 1, 2028.
• Reduce the annual assessment cap for many non-homesteaded properties from 10% to 5%.
• Establish a constitutional framework for future changes to Florida's homestead property tax system.

Understanding the Assessment Cap

The assessment cap limits how much a property's taxable value may increase each year, regardless of changes in market value.

Example (Example assumes a property with a current taxable value of $500,000.)

Even if the property's market value increases substantially, the taxable value (the amount of dollars that would pay taxes) could only increase by up to 5% each year under the proposed amendment, rather than 10%. Because property taxes are based on taxable value, this would generally result in smaller year-over-year property tax increases for owners of non-homesteaded and commercial properties.

What Does This Mean for Homeowners?

Overall, the proposed amendment is focused on homesteaded, owner-occupied primary residences. If approved, qualifying homeowners would receive additional property tax relief on those homesteaded, owner-occupied primary residences. The amendment would not eliminate or significantly change property taxes for most other types of property, such as:

• School district property taxes, which typically account for about 40% of the average Florida property tax bill (the exact percentage varies by community).
• Second homes and vacation homes that are not the owner's primary residence.
• Investment and rental properties, which would continue to be subject to property taxes.
• Commercial and business properties, which would continue to pay property taxes. (The proposal includes a separate change to the assessment cap for many non-homesteaded properties but does not eliminate these taxes.)
• Other non-homesteaded residential properties, including many seasonal homes.

Why Does This Matter to Pinecrest?

• Property taxes are the Village of Pinecrest's primary locally controlled source of revenue.
• These ad valorem taxes are paid annually by homeowners and fund many of the services residents rely on every day.
• 70% of Pinecrest's land is designated for single-family residential use.
• Approximately 70% of the Village's properties are homesteaded/eligible for this exemption and generate the majority of the Village's budget revenue.
• They account for 48% of the annual budget.
• A reduction in that revenue would affect the Village's ability to maintain funding for essential services and capital investments.

How Property Taxes Support Your Community

Property taxes help fund many of the essential services that contribute to Pinecrest's quality of life, including police, parks, transportation infrastructure, and neighborhood services.

Fiscal Impact Analysis

Village staff have completed a comprehensive fiscal impact analysis and developed multiple financial scenarios to evaluate the amendment's potential effects.

Current estimates indicate revenue reductions of approximately:

Revenue reductions could continue to grow over time because of both:

• the expanded homestead exemption provision in the constitutional amendment; and
• the reduction in the non-homesteaded assessment cap.

Actual impacts will depend on unknown future variables yet to be determined:

• implementing legislation,
• State funding decisions,
• future property values,
• taxable value growth,
• and additional guidance from the State.

Expected Impact on Village Services

Based on current estimates, if approved, the amendment would reduce Pinecrest's annual property tax revenue by approximately $1,492,037 during the first year 2027-2028, and by approximately $2,955,622 on fiscal year 2028–2029.

In the first two years alone, there would be a deficiency of $4,447,659 in the budget. With the 5% cap on the taxable value of a property, this amount would grow each year, hindering the Village’s ability to provide essential services, including:

• Police services
• Parks and recreation
• Roadway, sidewalk, drainage, and other infrastructure maintenance and repairs
• Stormwater and environmental programs
• Maintenance of public buildings and Village facilities
• Pinecrest Gardens
• Other Infrastructure improvements
• Replacement of vehicles, equipment, and other capital assets
• Community programs and other quality-of-life services
• Capital improvement projects
• Emergency recovery

These services are delivered by the Village's professional staff. Because personnel costs represent a significant portion of the operating budget, reductions in property tax revenue could also affect staffing levels, limiting the Village's ability to maintain current service levels.

The Village's priority will remain protecting public safety and other essential municipal services while responsibly managing the financial impact of any reduction in property tax revenue.

Potential Budget Considerations

Florida law requires municipalities to adopt a balanced budget each year.

If property tax revenues decline and replacement funding is unavailable or insufficient, future Village Councils would evaluate budget priorities and available funding through the annual public budget process.

Potential considerations would include:

• Staffing levels
• Staff compensation, which depends on cost-of-living increases, union negotiations, and other variables
• Capital improvement schedules
• Infrastructure maintenance
• Equipment replacement
• Facility maintenance
• Parks programming
• Other municipal operations

State Funding

The proposed amendment directs the Florida Legislature to establish a trust fund intended to assist local governments in continuing to provide core governmental services.

However, important implementation details have not yet been established, including:

• Funding levels
• Eligibility requirements
• Distribution formulas
• Timing
• Reimbursement methods

Would New Florida Residents Qualify?

If you establish Florida residency on or before December 31, 2026: You would be eligible for the expanded homestead exemption as soon as it takes effect (assuming Florida voters approve the amendment).

If you establish Florida residency after January 1, 2027: You would initially receive only the existing homestead exemption. To qualify for the increased exemption, you would have to maintain Florida residency for five years.

What counts as "Florida residency"?

Based on Florida's existing homestead rules, residency generally means:

• You make the home your permanent residence.
• You qualify for Florida's homestead exemption.
• You establish domicile in Florida (typically evidenced by things like a Florida driver's license, voter registration, vehicle registration, and other indicators of permanent residence).

How the Village Continues to Prepare

Although the final vote is in the hands of Florida voters as the amendment needs 60% approval to pass, the Village of Pinecrest continues monitoring this amendment and taking proactive steps to prepare for its potential financial impacts, including:

• Updating its comprehensive fiscal impact analysis as updates develop.
• Developing multiple long-term budget scenarios based on projected revenue reductions.
• Evaluating impacts on operating budgets and capital improvement projects.
• Assessing potential impacts to municipal services and staffing.
• Reviewing long-term financial sustainability strategies.
• Continuing responsible financial management while protecting essential public services whenever possible.
• Monitoring proposed implementing legislation and future State guidance.