HJR 203 Asks Voters to Use Homestead Exemption for Non-School Property Taxes

(FLORIDA) — The key distinction in HJR 203 is simple: it targets only the non-school portion of property taxes on a homesteaded primary residence, not school taxes and not rental or investment homes.

Florida lawmakers have advanced HJR 203, a proposal to amend Florida’s constitution. If it clears the remaining steps and voters approve it, the measure would phase in a much larger homestead exemption over time. The long-run goal is to bring the non-school property taxes on eligible homesteaded homes down to zero.

For immigrants, visa holders, and new Florida residents, the practical question is not just “Will my bill drop?” It is also “Do I qualify for homestead?” and “How will this change my mortgage escrow and my federal return for tax year 2026 (filed in 2027) and beyond?”

1) Overview of HJR 203 and the ballot timeline

HJR 203 is a Florida House joint resolution. In Florida, a joint resolution can propose a constitutional amendment. The pathway is procedural and time-sensitive:

• The House passes the resolution.
• The Florida Senate must also pass it.
• If it reaches the ballot, voters decide.
• If approved by the required supermajority, the change begins with a future property-tax year, not immediately.

“Ballot placement” and “effective tax year” are different concepts. Ballot placement determines when voters decide. The effective year determines which property-tax bills could start reflecting the new exemption.

That timing matters for:

• Buyers estimating monthly payments and escrow.
• Recent movers who may not yet have homestead applied.
• New immigrants still building Florida residency documents needed for homestead.

What are “non-school property taxes”? Florida property tax bills often include multiple lines. Some fund schools. Others fund counties, cities, water management districts, and special districts. HJR 203 focuses on reducing the non-school side for homesteaded homes, while leaving school-related taxes in place.

📅 Deadline Alert: Property tax changes usually show up on future bills, not right after an election. Plan for escrow to adjust on a lag.

IRS reference for federal filing context: IRS Publication 519, U.S. Tax Guide for Aliens, explains resident vs. nonresident filing rules and itemized deductions. See IRS Pub. 519 (PDF).

2) How the homestead exemption would change under HJR 203

The proposal, in plain English

HJR 203 would phase in a larger homestead exemption year by year. Conceptually, each year an additional “block” of home value would be shielded from non-school property taxes. The end state is that the non-school portion on qualifying homes is eliminated.

The phased approach matters. It means two homeowners with the same home could see different results depending on:

• when they bought,
• when they successfully filed for homestead, and
• how their local millage rates break between school and non-school lines.

How that differs from today’s homestead framework

Florida’s current homestead system already reduces taxable value for many owners and includes assessment limits like “Save Our Homes.” HJR 203 is different because it aims to remove an entire category of tax (non-school) for homesteaded homes, rather than only trimming taxable value by a fixed amount.

How property tax bills are typically composed

A simplified bill has:

• School-related taxes (not targeted by HJR 203).
• Non-school taxes (the target).
• Sometimes special assessments (which may not behave like ad valorem taxes).

That’s why some homeowners may still have meaningful property-related charges even if non-school property taxes fall sharply.

Homestead eligibility basics for new Florida residents (including immigrants)

Homestead is about primary residence and intent to make Florida your permanent home. Counties often expect you to show Florida ties, such as:

• Florida driver license or state ID
• Florida vehicle registration
• Voter registration (for those eligible)
• Immigration documentation plus proof of Florida residence
• Utility bills and lease/closing documents

Rules vary by county, but two principles are consistent:

• One homestead per person/family unit.
• The home must be your primary residence.

Renters, second-home owners, and investors generally will not get the same direct relief. They could still see indirect effects, such as fee increases or service changes.

Federal tax note for immigrants: If you are a nonresident alien filing Form 1040-NR, itemized deductions can work differently than for residents. Pub. 519 covers those rules.

For IRS international tax basics, see IRS International Taxpayers.

Side-by-side comparison: Current system vs. HJR 203 (proposed)

3) Voter approval threshold and implementation mechanics

Florida constitutional amendments need more than a simple majority. HJR 203 would need a three-fifths “yes” vote statewide.

Supermajority requirements matter because:

• a proposal can win a clear majority and still fail, and
• polling close to Election Day is not the same as final passage.

Implementation mechanics are also easy to misunderstand. Property taxes depend on a cycle:

• Assessment date determines value and exemptions.
• Mid-year notices estimate taxes.
• Bills arrive later.

If the measure becomes effective for a given tax year, many homeowners will first “feel” it when:

• the annual notice reflects the new exemption, and
• the new bill is issued and paid.

Escrow adjustments: why the savings may not show up right away

Mortgage servicers typically use your last paid bill to project the next year. If taxes drop, your servicer may:

• reduce your monthly escrow payment later, or
• issue an escrow refund after analysis.

That timing can be uneven, especially for first-time buyers and new Florida residents.

4) Protections and restrictions on local funding

HJR 203 includes a guardrail tied to public safety. The intent is to limit local governments from cutting total funding for certain first-responder functions below specified recent baseline levels.

That does not mean local budgets are unaffected. Local governments usually fund services through a mix of:

• property taxes,
• sales taxes (where allowed),
• fees and permits,
• state-shared revenues,
• grants.

If non-school property tax revenues decline, pressure can show up in areas such as:

• libraries and parks,
• transit and road maintenance,
• staffing for permitting and inspections,
• recreation programs.

The “protection” is not a promise that other services keep pace with growth.

5) Financial impact on local and state budgets

Estimates for lost revenue are large, and they differ. That is normal for long-run projections. Differences often come from:

• assumptions about population growth,
• home price appreciation,
• how quickly households qualify for homestead,
• local millage decisions over time.

For homeowners, the budget debate matters because local governments may respond with:

• higher fees (waste, stormwater, permitting),
• new special assessments,
• attempts to shift revenue sources within legal limits.

Impacts will also vary by county. Areas with rapid growth and heavy reliance on non-school property taxes may face harder choices.

6) Next steps in the legislative process

For HJR 203 to reach voters, the Florida Senate must act. That typically means:

• committee consideration,
• placement on an agenda,
• a floor vote.

Governor messaging can shape the debate, but it does not replace Senate passage.

For official status, rely on Florida’s legislative tracking tools. Avoid rumor-based timelines. For federal tax planning, the IRS forms and publications hub is at IRS Forms & Publications.

7) Opposition, concerns, and potential trade-offs for homeowners, renters, and businesses

Critics raise three recurring concerns:

• 1) Tax shifts to renters and businesses
  If local governments need revenue, they may lean more on commercial property, fees, or other charges. Renters can feel that through pass-through costs.
• 2) Distribution of benefits
  Homestead-based relief can skew toward households that own homes, and often toward higher-value properties, depending on design and local tax mix.
• 3) Capacity for growth-related services
  Fast-growing communities may need more police, fire capacity, and infrastructure. Revenue constraints can tighten budgets even with public safety guardrails.

For immigrants and new residents, the split between renters and owners matters. Many newcomers rent first. They could see limited direct relief, while still facing fee-driven cost increases.

Small business owners should also watch local budget changes. Permitting costs and local assessments can change even if residential homesteads pay less.

⚠️ Warning: A common mistake is assuming a lower Florida property tax bill automatically reduces your federal tax. Federal rules depend on itemizing, residency status, and the SALT cap.

Federal tax example (tax year 2026, filed in 2027): why the savings may not reduce your IRS bill

Even if your Florida bill drops, your federal benefit may be limited.

• If you take the standard deduction (most filers do), lower property tax usually does not change your federal tax.
• If you itemize on Schedule A (Form 1040), state and local taxes are generally capped at $10,000 per return ($5,000 if married filing separately). This is the SALT cap under current federal law.
• Nonresident aliens filing Form 1040-NR have separate rules for deductions. Pub. 519 explains when itemizing is allowed and how state and local taxes apply.

Common mistakes (and how to avoid them)

• Mistake: Missing homestead deadlines after a move.
  Fix: File promptly after buying or establishing Florida residence. Keep proof of move date and residency documents.
• Mistake: Budgeting for lower escrow too early.
  Fix: Assume escrow stays near the old level until your servicer recalculates after a new bill.
• Mistake: Confusing school vs. non-school taxes.
  Fix: Read the bill lines. Confirm which millage rates are school-related.
• Mistake: Treating homestead as automatic for visa holders.
  Fix: Homestead is a Florida residency concept. Bring immigration documents and Florida residency proof. Ask your county property appraiser what they accept.

You are most likely to benefit if…

You are a Florida homeowner if your home is your primary residence and you can qualify for homestead.

You are less likely to benefit directly if you are a renter, a seasonal resident, or you own a non-homesteaded investment property.

You are most exposed to indirect trade-offs if you rent, run a small business, or rely on local services that depend on non-school property taxes.

Action items:

• If you bought recently, confirm your homestead filing status with your county property appraiser.
• Review your latest property tax bill and identify the school vs. non-school lines.
• If you itemize federally, review the SALT cap and your filing status before assuming a federal tax change.

⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.