Florida voters are set to consider a proposed constitutional amendment that could significantly reduce property taxes for many permanent residents, while potentially increasing the tax burden on non-resident property owners, including Canadians.
The proposal, known as Amendment 3, is being promoted by Florida Governor Ron DeSantis and is expected to go before voters in the state's midterm election. Under the plan, qualifying primary residences valued at $250,000 or less could eventually face no property tax, while homeowners with more expensive properties could also see their bills reduced.
Proposed Tax Change Could Create a Major Revenue Gap
Property taxes are an important source of funding for Florida's local governments, supporting services such as law enforcement, emergency response, fire protection and disaster preparedness.
State economists cited in the source estimate that eliminating or substantially reducing homestead property taxes could leave governments facing an annual revenue gap of around $12 billion.
That raises a key question: how would local authorities replace the lost revenue without imposing broader tax increases or cutting essential services?
Canadian Property Owners Could Face Higher Costs
The proposal specifically distinguishes between homesteaded properties and non-homesteaded properties.
According to the source, assessed values for non-homesteaded properties owned by Canadians and other non-residents could rise by as much as 5% annually. Florida officials have argued that this could generate additional revenue without introducing a new tax.
Canadians are a significant presence in Florida's property market, with the source estimating that they own around $60 billion worth of property in the state.
For Canadian and other overseas property owners, changes in U.S. property taxation can affect the cost of maintaining real estate, investment returns and broader cross-border financial planning. Those assessing such exposure may need to consider International Tax implications alongside local property-tax rules.
Florida's Housing Market Could Also Feel the Impact
The proposed tax changes are emerging as some Florida markets are already dealing with weaker demand from Canadian buyers.
The source notes that Canadians account for more than 70% of international demand in the Cape Coral metropolitan area, while Canadian purchases have remained below earlier levels. Some Florida markets have also experienced longer listing periods and increased pricing pressure.
A further increase in the cost of owning non-homesteaded property could potentially encourage some Canadian owners to sell, although the scale of any such effect would depend on the final policy and broader market conditions.
Canadian Snowbirds Express Concerns
The proposed tax changes have also become part of wider tensions between Florida and Canadian seasonal residents.
Some Canadians interviewed by CBC said political rhetoric and the possibility of higher property costs had influenced their decisions to sell or stop spending winters in Florida. Others said they were concerned that additional costs could make seasonal ownership less attractive.
At the same time, Florida businesses that depend on Canadian visitors could also be affected if fewer Canadians choose to spend their winters in the state.
Tourism and Local Businesses Face Another Risk
Canadians have historically represented Florida's largest single international tourism market. The source reports that Canadian visits during the latest prime winter season fell by 20%.
A continued decline could affect restaurants, retailers, accommodation providers and other small businesses that depend heavily on seasonal visitors.
What Happens Next
The proposed amendment still depends on the outcome of the Florida ballot process. If approved, the measure could substantially change how residential property taxes are collected and how local governments replace lost revenue.
For Canadian property owners, the issue goes beyond the immediate tax bill. Changes in property taxation, housing demand and tourism could influence the economics of maintaining a Florida home over the longer term.
The debate therefore reflects a broader policy challenge: providing tax relief to permanent residents while ensuring that local governments retain enough revenue to fund essential services.