As Florida voters consider Amendment 3 on the November ballot, The Palm Beach Post is seeking information about how the proposal could affect taxpayers, local governments, public safety agencies, special districts and the broader economy in Palm Beach County.
The amendment would expand homestead tax exemptions, reduce future growth in some property tax assessments and place new constitutional restrictions on how certain property tax revenues may be used.
Palm Beach County Fire Rescue, which relies heavily on property taxes collected in unincorporated areas, would lose millions of dollars in revenue because roughly one-third of homesteaded properties are assessed at less than $250,000. The department also provides fire and emergency services to
several municipalities that contract with the county for protection.
County commissioners set Palm Beach County Fire Rescue's millage rate each year based on the budget submitted by the department. The county created a separate taxing district to fund the agency, which provides emergency medical services, coordinates life-saving responses and fights fires in unincorporated areas and municipalities that contract with the department for service.
Supporters of Amendment 3 say it would provide meaningful tax relief and promote fiscal discipline. Critics contend it could reduce revenues that support local services and limit the budget flexibility traditionally exercised by local governments under Florida's home-rule system.
How would Fire Rescue make up for the loss in revenue?
At a recent budget workshop, Fire Rescue Chief Patrick Kennedy said the agency plans to hire a consultant to explore the adoption of a fee-based system. Each property owner would be assessed a fee for fire-rescue services. User-type fees would not be impacted by Amendment 3.
How much in property taxes will county fire rescue lose immediately and in the coming years?
According to county budget analysts, Fire Rescue would lose an estimated $41 million in fiscal year 2028, the first year Amendment 3 is expected to affect local governments. Under the proposal, homesteaded properties assessed at $150,000 or less would owe no property taxes, while owners of higher-valued homesteaded properties would receive an exemption on the first $150,000 of assessed value.
In fiscal 2029, the exemption rises to $250,000. The agency would lose another $26 million. Over the two-year period, the loss would be $67 million.
What will be directly affected by the loss of revenue?
During the budget workshop, county officials warned that approval of Amendment 3 could affect Fire Rescue's ability to maintain current service levels. They said the loss of property tax revenue could lead to slower emergency response times and delay the construction of new fire stations needed to serve the county's growing population.
Mike Diamond is a journalist atThe Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: How Amendment 3 could affect the Palm Beach County Fire Rescue
