Clearwater stands to lose roughly $12 million in property tax revenue in the first year Florida's Amendment 3 takes effect, and a cumulative $20 million by year two, according to preliminary estimates the city published on its website July 7.

That revenue funds police, fire rescue, parks, libraries, road maintenance and code compliance. The city collects about $109 million in property taxes annually, with 30% coming from homestead properties. Amendment 3 would dramatically expand the homestead exemption that shields those properties from non-school taxes.

The amendment, which Florida voters will decide Nov. 3, 2026, requires 60% approval to pass. If it does, the homestead exemption for non-school property taxes would jump from the current $51,411 to $150,000 beginning Jan. 1, 2027, and to $250,000 beginning Jan. 1, 2028. School district levies are excluded.

For a Pinellas County homeowner, that translates to roughly $1,203 in tax savings in 2027 and $2,423 in 2028, based on the countywide average non-school millage rate of 12.2011 mills, according to the Pinellas County Property Appraiser.

The Florida Legislature approved the measure (HJR 1) during a special session called by Gov. Ron DeSantis on June 2, with the House voting 75-26 and the Senate 30-9. Legislative staff estimated the amendment would cut local government revenue across Florida by $4.6 billion in fiscal year 2027-28 and $8.4 billion the following year, according to Ballotpedia. The Florida Association of Counties opposes the amendment.

Statewide, counties also face rising Medicaid obligations. State economists project that Florida's 67 counties will owe nearly $420 million toward the state's Medicaid costs this fiscal year, Creative Loafing Tampa Bay reported July 20. Those economists project the figure will rise to $452 million in fiscal year 2027-28, the same year Amendment 3 would first take effect. Counties would face those growing costs with less property tax revenue to cover them.

Clearwater's city government said no decisions have been made about service cuts and that any changes would go through the public budget process. The city also noted that non-property-tax revenues like water utility fees, stormwater fees and solid waste fees are legally restricted and cannot be redirected to replace lost property tax dollars.

No named Clearwater official has commented publicly on the amendment's budget impact. The Clearwater Sentinel has requested comment from the city manager's office.

The City Council is scheduled to set the FY27 millage rate Aug. 1 at 6 p.m. The first public hearing on the FY27 operating and capital budget is set for Sept. 21 at 6 p.m. Both meetings are open to residents who want to weigh in on how the city should prepare for a potential revenue shortfall. Details are available at myclearwater.com.