Amendment 3 Aims to Change Treasure Coast Property Taxes

VERO BEACH, Fla., Sept. 29, 2026 /CourierPR/ -- The Reynolds Team of Compass and Indian River County Property Appraiser Wesley Davis have outlined how proposed constitutional amendment Amendment 3, which was passed by both chambers of the Florida Legislature on June 2, 2026, and requires 60% voter approval to take effect, would reshape homestead exemptions, assessment caps, and residency timing for property owners in Indian River County and Saint Lucie County.

For property owners on the Vero Beach barrier island and throughout Indian River County, the amendment creates distinct implications depending on current homestead status and residency timeline. Current homesteaded owners on the barrier island and throughout the county would see a meaningful increase in their non-school exemption. Portability protections under Save Our Homes remain fully intact, with the $500,000 portability cap and the three-year transfer window through Form DR-501T not changing under this amendment.

For out-of-state buyers considering a permanent move to the Treasure Coast, the amendment introduces a timing element that did not previously exist. Buyers who establish Florida residency by December 31, 2026, would qualify for the full exemption immediately upon approval. Those who establish residency after that date would receive an initial $50,000 non-school exemption and would need to maintain their homestead for five years before qualifying for the higher amount.

The amendment would also reduce the annual assessment cap on non-homestead properties in Indian River County and Saint Lucie County, including second homes, rental properties, and commercial real estate, from 10% to 5%. The Florida Legislature's fiscal analysis projects statewide revenue reductions of approximately $4.6 billion in the first year and $8.4 billion in the second year. Local taxing authorities in Indian River County have estimated the local fiscal impact at approximately $50 million by 2028.

The increased exemption applies to non-school ad valorem levies, which include funding for county and municipal services such as fire rescue, emergency medical services, law enforcement, and infrastructure. School district levies, which account for roughly 35 to 45 percent of a typical Florida property tax bill depending on the county, are not subject to the increased exemption. The amendment does not alter the existing Save Our Homes assessment cap of 3% annually for homesteaded owners. Portability rules for homesteaded owners moving within Florida remain unchanged.

For current homesteaded owners on the Treasure Coast, the amendment keeps every protection they have now, with a larger exemption if the amendment passes. For out-of-state buyers, the five-year waiting period applies only to residency established after December 31, 2026. The amendment's structure creates different considerations for the two buyer populations the team serves on the Treasure Coast.

The Reynolds Team of Compass, led by founder Scott Reynolds, is a luxury real estate team based in Vero Beach, Florida, serving buyers and sellers across the Treasure Coast. The team focuses on coastal properties in Vero Beach, Hutchinson Island, Sebastian, and surrounding markets, and publishes recurring market research including the monthly Vero Luxury Market Report.

The amendment's structure creates different considerations for the two buyer populations the team serves on the Treasure Coast. Current homesteaded owners on the Treasure Coast keep every protection they have now, with a larger exemption if the amendment passes. Out-of-state buyers face a residency timing question that the team did not have to discuss six months ago.