St. Johns County faces a projected $109.38 million drop in nonschool property tax revenue by fiscal year 2029 after Florida voters approved Amendment 3 on Tuesday, Nov. 3.

The constitutional amendment, which raises the state's homestead exemption, passed with 62% of the statewide vote, the Jax Daily Record reported. In St. Johns County, 65% of voters backed the measure. The Associated Press called the result at 9:46 p.m. with 99% of ballots counted.

The hit is significant.

The $109.38 million figure comes from the Florida Association of Counties, according to the Jax Daily Record. St. Johns County's own estimates, based on Florida Office of Economic and Demographic Research projections presented at a Sept. 29 town hall, put the FY2029 revenue reduction higher at $136.1 million. The county projected cumulative losses exceeding $700 million over five years.

St. Johns County Administrator Joy Andrews wrote in a post-vote statement that "more than 60% of residents have voted for a lower property tax structure, which will naturally require adjustments to how local governments raise revenue and the level of services they can afford to provide under the new structure."

Andrews added that "there is still a lot to be unpacked because the constitutional amendment is subject to interpretation, particularly regarding which categories of services can and cannot be funded with property taxes."

What changes

Amendment 3 increases the homestead exemption from $50,000 to $150,000 starting Jan. 1, 2027, and to $250,000 starting Jan. 1, 2028. The maximum exemption will then receive annual inflation adjustments beginning in 2029. The amendment also cuts the cap on year-over-year assessed value increases for nonhomestead properties from 10% to 5% and directs state lawmakers to eventually eliminate homestead property taxes altogether.

Local governments use nonschool property tax revenue to fund police and fire protection, public works, libraries and parks, according to the Jax Daily Record.

County had already begun preparing

The county began preparing for the amendment's potential effects in the spring, according to Jax Daily Record coverage of the Sept. 29 town hall. Andrews said at that event the county had paused about $8.6 million in hiring and position funding, with exceptions for public safety, legal requirements and grant-funded positions.

The county also paused about $100 million of roughly $800 million in capital improvement projects, Andrews said at the town hall.

St. Johns County collects about $426 million in property taxes annually through its general fund, fire district and transportation trust fund, Andrews said. The first-year reduction would equal about 16% of that revenue, increasing to about 32% in the second year.

Wade Schroeder, the county's Office of Management and Budget director, cautioned at the town hall that the county cannot simply redirect other revenue streams to fill the gap. Utility revenue, solid waste assessments and revenue from services such as the county's golf course, pier and beach operations are restricted in how they can be spent, he said.

The county holds about $31 million in an emergency response reserve and about $30 million in a financial resiliency reserve. Andrews called those one-time resources that would not replace recurring property tax revenue.

Statewide picture

Across Florida, the amendment will reduce property tax revenue by an estimated $5 billion in FY2028 and almost $12 billion by 2031, according to state economists cited by the Jax Daily Record. About 5 million homesteaded properties statewide are affected.

No substantial economic impact studies were conducted before the Florida Legislature placed Amendment 3 on the ballot, and no comprehensive studies have been conducted since, the Jax Daily Record reported. The proposal received more than 50% of the vote in every Florida county.