$250,000. If Amendment 3 passes in the vote this Tuesday, this will be the amount of the non-school property tax exemption applied to Florida homestead properties starting in 2028.

Currently, this exemption is capped at $50,000, so it appears to be five times larger. However, when you ask retired neighbors how much their taxes will decrease, they often struggle to answer.

With the vote on November 3, time is running out. So today, rather than discussing the pros and cons, let's first clarify how this will be calculated on my tax bill.

First, let's look at the current structure. The homestead exemption applies to the first $25,000 of assessed value for all taxes, including school taxes.

The second $25,000 applies to assessed values between $50,000 and $75,000, but only to taxes excluding school taxes. Starting in 2025, this second portion will be adjusted for inflation based on a referendum in 2024.

Additionally, there is a Save Our Homes cap. The assessed value of homestead properties can only increase by the lower of 3% or the consumer price index each year, and according to Florida Department of Revenue data, the cap for 2026 is 2.7%.

Amendment 3 proposes to change the non-school exemption. It will increase to $150,000 in 2027 and $250,000 in 2028, and thereafter will be adjusted for inflation.

This does not add to the existing non-school exemption but replaces it. The $25,000 exemption that applies to school taxes will remain unchanged.

Also, since this is a constitutional amendment, it must receive more than 60% approval to pass. Many people are unaware that a simple majority is not enough.

The calculation formula itself is simple. You subtract the exemption amount from the assessed value, multiply by the millage rate, and divide by 1,000.

The issue is that this calculation must be done separately for school and non-school taxes. City, county, and special district taxes fall under the non-school category, and this is where the exemption will increase.

Let's consider an example. Suppose there is a home that has been assessed at $180,000 due to the Save Our Homes benefit.

Currently, the non-school taxable amount is about $130,000, which is $180,000 minus $50,000. If the exemption increases to $250,000 in 2028, the exemption will exceed the assessed value, making the non-school taxable amount $0.

If we assume a combined non-school millage rate of 10 mills for simplicity, the tax reduction would be $1,300. The actual millage rates vary by location, so this number is just an example.

On the other hand, the school tax will still apply to $155,000, which is $180,000 minus $25,000. The Duval County school millage rate was 6.343 mills as of 2025, combining several items.

Here's an important point: older retirees with lower assessed values may not be able to take full advantage of the maximum exemption.

Homes valued over $300,000 will benefit from the expanded exemption of $200,000 almost entirely. Ultimately, the size of the benefit varies significantly based on home value and assessed value.

According to the Florida TaxWatch calculator, the maximum exemption for homesteads in Duval will save $1,121 in 2027 and $2,258 in 2028, assuming the millage rates remain the same.

So where will that money come from? The Jacksonville City Council's auditor predicts that city revenues will decrease by $200 million in 2027 and $300 million in 2028.

With the city's operating budget around $2 billion, that's about a 10% reduction. Concerns about cuts to police and fire budgets are not unfounded.

In Korean news, there are often debates about property taxes and the reality of assessed values, questioning whether it's a tax burden or a tax break for the wealthy. The same question arises here: if taxes are reduced, who will make up the difference?

There are a few more points to note. New residents moving to Florida after December 31, 2026, will start with the current level of exemptions and will not receive full exemptions until five years have passed.

The cap on assessed value increases for non-homestead properties, such as rental homes, will decrease from 10% to 5%. This may be more welcome news for those with investment properties.

Fees for non-ad valorem assessments, such as fire fees, will remain unchanged regardless of this amendment. This means property taxes will not disappear.

Additional exemptions for low-income retirees over 65 will vary based on county and city ordinances, as well as income thresholds adjusted annually. It's best to check with the Duval County Property Appraiser to see if you qualify.

When calculating, be sure to pull out the assessed value and millage rate from your tax bill. Separate the school items from the others and plug them into the formula for a rough estimate of the difference.

However, if retirement income, other exemptions, and plans to sell the house come into play, the calculations may change. It varies by individual circumstances, so it's advisable to consult a tax professional or the property appraiser's office.

I generally believe that lower taxes are better. For retirees living on fixed incomes, rising property taxes each year can be a real burden.

Still, it honestly concerns me that there are no plans for what to cut with a 10% reduction in the city budget. If it were me, I would calculate my tax bill first and then check the alternatives proposed by our city council before casting my vote.