Could Amendment 3 Mean Lower Property Taxes but Fewer City Services in Oviedo?

Florida voters will have a big property-tax question on the ballot this November, and Oviedo homeowners have good reason to pay attention.

Amendment 3 would increase Florida's homestead exemption for non-school property taxes to $150,000 in 2027 and $250,000 in 2028.

If you’re not familiar with how Florida’s homestead exemption works, I break it down here in plain English.

For homeowners, the appeal is obvious: a bigger exemption could mean a smaller property-tax bill.

But for cities like Oviedo, it also means less money coming in.

What Could an Oviedo Homeowner Save?

The City of Oviedo has already run an example.

Using a home with a $415,000 assessed value, the city estimates its portion of the property-tax bill at about $2,239 in FY 2026-27.

With the proposed $150,000 exemption, that would drop to approximately $1,719 the following year. Once the exemption reaches $250,000, the city's portion would fall to about $1,192.

That's a difference of more than $1,000 from the original example.

One detail matters here: the larger exemption would not apply to school property taxes. We're talking about the portion of the tax bill going to the city, county and other non-school taxing authorities.

What Happens to Oviedo's Budget?

That potential savings comes with a tradeoff.

Oviedo estimates Amendment 3 could reduce its General Fund revenue by about $5.1 million in FY 2027-28 and $9.2 million the following year.

That's money currently used to help pay for police and fire services, parks and recreation, public works, facilities and other city operations.

If that revenue goes away, the city has to make up the difference somewhere — or spend less.

That could mean cutting or changing services, finding other revenue sources, adjusting the city's millage rate within legal limits, or relying more heavily on fees and assessments.

None of those outcomes is guaranteed. But they are possibilities Oviedo officials are discussing as voters consider the amendment.

It's Not Just About Homesteaded Homes

There's another piece of Amendment 3 that could matter to real estate investors and landlords.

The proposal would also reduce the annual assessment-growth cap on non-homestead property from 10% to 5%.

That could affect rental properties, second homes, investment properties and commercial real estate.

So while most of the attention has been on the larger homestead exemption, there's more in this amendment than just a tax break for primary residences.

Want to Hear Directly From the City?

Oviedo is holding public information sessions to explain the proposal, how the city's budget works and what could happen if Amendment 3 passes.

The first meeting is:

Wednesday, September 16, 2026
6:30–8:30 p.m.
Oviedo Cultural Center
357 Center Lake Lane

Residents will also have an opportunity to speak with representatives from city departments.

Oviedo Amendment 3 Information Sessions:
https://www.cityofoviedo.net/m/NewsFlash/Home/Detail/809

Amendment 3 will need at least 60% voter approval in November to become part of the Florida Constitution.

For Oviedo homeowners, the choice isn't quite as simple as lower property taxes: yes or no. The amount you pay matters, but so do the services those taxes pay for.

If Amendment 3 saved you $1,000 a year in property taxes but meant fewer city services or higher fees somewhere else, would you still vote for it?