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.
The following answers are from West Palm Beach City Administrator Faye Johnson.
How much would the average homeowner in West Palm save?
The impact on an individual homeowner would depend on the property's taxable value, applicable exemptions and the specific provisions ultimately approved. The city receives only a portion of a homeowner's total property tax payment.
Property tax bills also include taxes levied by Palm Beach County, the School District of Palm Beach County and other taxing authorities.
How much revenue would West Palm lose?
If Amendment 3 passes, the City has estimated a revenue loss of $21.7 million for fiscal year 2028.
Would police and fire services be affected? If so, how?
Property taxes account for 53% of the city’s General Fund revenue and do not fully fund police and fire rescue services, which represent approximately 60% of General Fund expenses. As public safety is the city’s number one priority, to the greatest extent possible, the city’s goal is to maintain the high level of police and fire services required to continue to protect our growing city.
Would fees for parking, recreation, permitting or utilities rise?
No specific fee increases have been discussed. Any future discussions about fee increases would focus on fees that support the General Fund. This would not include parking, permitting, or utilities which are enterprise funds and cannot be used for General Fund operations.
➤ AMENDMENT 3: See how the amendment could affect other cities, towns and the county
Would renters, condo owners and businesses ultimately pay more? If so, how?
The city does not have sufficient information at this time to determine what, if any, financial impact the proposed changes would have on renters, condominium owners or businesses.
What new revenues would you be looking at to make up for the loss?
No specific replacement revenue sources have been discussed. The city would explore all available general fund revenue options in addition to operational expenditure reductions.
What decisions by the commission could become more difficult or restricted?
The West Palm Beach Commission adopts the city's annual budget and approves how available General Fund resources are allocated among city services. If there is a loss of $21.7 million in property tax revenue, the commission would have to make tough decisions on what to support as part of restructuring the General Fund budget. The city has not identified any specific commission decisions that would be restricted.
Amendment 3 would place constitutional limits on how counties and municipalities may use certain property-tax revenues. Do you believe those provisions would reduce your city's home-rule authority and local control over budgeting? Why or why not?
Yes. Currently, the city has full authority to decide how to spend its property tax revenue among a host of general fund services for any valid public purpose. Whereas, if approved, the constitutional amendment restricts how the city may spend remaining property tax revenue to seven enumerated categories: public safety, education, infrastructure, natural resources/flood control, bond obligations, employee retirement benefits and government operations.
What decisions that are currently made by your city commission or council could become more difficult or restricted because of state-imposed rules?
The West Palm Beach Commission currently adopts the city's annual budget and approves how available resources are allocated among city services. The proposed amendment would establish additional constitutional provisions governing the use of certain property tax revenues. The specific impact on future city budget decisions would depend on the amendment's application and implementation.
This article originally appeared on Palm Beach Post: West Palm analysis says city would lose $21.7M if Amendment 3 passes
