Picture two buyers who close on similar houses on the same Royal Palm Beach street in spring 2027. Both file for homestead. One moved to Florida from Broward County years ago. The other moves from out of state in January. Under the amendment voters approved on November 3, the first buyer can qualify right away for the larger exemption on non-school taxes. The second starts with the existing exemption and doesn't become eligible for the larger one until their fifth year of receiving homestead.
That gap is the part of Amendment 3 most likely to surprise a buyer. A second part is still taking shape at Village Hall. Royal Palm Beach expects to lose a large share of its property-tax revenue. In September it declined a proposed rate increase, and its manager pointed to the November 3 vote as a reason to hold off. Whatever the village does next can land in parts of the bill the bigger exemption doesn't touch.
The cutoff is December 31, 2026, less than two months away
According to the Palm Beach County Property Appraiser's Amendment 3 page, homeowners who were Florida residents by December 31, 2026 and meet the homestead requirements may qualify for the increased exemption. The page says that holds even if they buy their first home in 2027, though they still have to apply on the new property. People who were not Florida residents by that date get the existing exemption when they qualify. They become eligible for the increased amount beginning in their fifth year of receiving homestead.
The Property Appraiser adds that these residency rules are subject to federal constitutional requirements. Future legislation, legal challenges or court decisions could change them, and the Legislature may issue more guidance on residency documentation.
Here is how the new rules sort different owners, based on the Property Appraiser's FAQ:
| Owner | Exemption on non-school taxes | Still on the bill |
|---|---|---|
| Already homesteaded in Royal Palm Beach | Increase applied automatically starting with the 2027 tax year | School taxes, non-ad valorem assessments |
| Florida resident by Dec. 31, 2026, buying a first home in 2027 | May qualify for the increased exemption after applying | School taxes, non-ad valorem assessments |
| Not a Florida resident by Dec. 31, 2026 | Existing exemption first, increased amount from the fifth exemption year | School taxes, non-ad valorem assessments |
| Rental, second home or other non-homestead | No homestead exemption; assessed-value growth cap drops from 10% to 5% for non-school taxes | Full tax rates on the capped value |
Rows two and three can describe two buyers with the same budget looking at the same listing. For a family relocating from another state, what the house costs to carry after closing can depend on a date that has nothing to do with the house.
This is general information, not legal, tax or financial advice. Confirm how these rules apply to you with the Property Appraiser's office at 561-355-2866 or with a tax professional.
What the larger exemption reaches, and what it doesn't
The amendment raises the homestead exemption for non-school property taxes. As Town-Crier explained before the vote, it goes from the current $50,000 to $150,000 in 2027 and $250,000 in 2028, with the $250,000 figure adjusted for inflation starting in 2029. The first $25,000 of assessed value stays exempt from school taxes, and school taxes will keep appearing on most bills. Save Our Homes and portability stay as they are, so a seller moving within Florida can still transfer a qualifying benefit under the existing rules.
Nothing changes on the 2026 tax bill. The new exemption first shows up on August 2027 TRIM notices and November 2027 tax bills.
On a Royal Palm Beach bill, the village is one of the smaller non-school lines. The Property Appraiser's 2026 rate table lists these rates in mills, meaning dollars per $1,000 of taxable value:
- Palm Beach County: 4.5000
- Fire/Rescue: 3.4581
- Royal Palm Beach: 1.9200, the rate the council approved in September
- Health Care District: 0.6561
- Library: 0.5491
- Children's Services: 0.4908
Run the arithmetic on the first year's extra $100,000 of exempt value. At the village rate, that $100,000 equals $192 of village tax. At the county's general rate it equals $450, and at the Fire/Rescue rate about $346. Most of a homesteaded owner's dollar savings comes off county lines. Palm Beach County Fire Rescue runs Stations 28 and 29 at Royal Palm Beach addresses. Before the election, the county estimated an annual reduction of about $233.3 million in General Fund property-tax revenue once the amendment is fully in place. In June, WFLX reported a county estimate of just under $200 million less for Palm Beach County Fire Rescue over two years.
To see your own estimate, the Property Appraiser's Amendment 3 calculator works for properties that already have a homestead exemption. It doesn't account for the 5% non-homestead cap.
The village kept its rate flat ahead of this vote
The village line is small on each bill, but the dollars matter a lot to the village. Before the election, Town-Crier reported that Royal Palm Beach expected about $10 million in property-tax revenue in 2027 and that village officials projected losing 40 percent of it, about $4 million, if Amendment 3 passed. Town-Crier also reported that the village's 2027 operating-budget model showed a $7.65 million revenue loss, almost 14 percent, growing the following year. The amendment passed. Unofficial election-night results from the Florida Division of Elections show 61.98 percent yes statewide. The county's unofficial totals were 326,522 yes and 217,637 no, just over 60 percent.
The vote came after a budget season that had left a decision open. In July, staff proposed raising the rate to 2.15 mills to cut down on drawing from reserves. At the September 10 hearing, Town-Crier reported, the council unanimously approved 1.92 mills instead, the same rate as last year, and set the final hearing for September 17. Earlier that month, Town-Crier quoted Village Manager Ray Liggins on why the smaller increase could wait:
"There's such a change that might come to us Nov. 3 that so much would have to be looked at that doing this smaller change now is not necessary."
The September 10 coverage shows what holding the rate left unfunded. Finance Director Sharon Almeida put the difference between the two budgets at $1,167,284 in property-tax revenue and excess reserves. Liggins explained that capital projects and replacements had been paid for with utility sale proceeds, federal funding and added sales-tax revenue, and that those sources have ended. Reserves can cover the gap until about 2033. "The millage [rate] of 1.92 does fund the operating budget," he said. "It does not fund any of the capital replacement or capital."
So Royal Palm Beach goes into the Amendment 3 era already drawing on reserves for capital work, after setting aside the staff's 2.15-mill proposal in September, and now facing a projected 40 percent loss of its property-tax revenue.
Where replacement money can come from
Town-Crier's pre-election report listed the options local governments have for replacing lost property-tax revenue: staff reductions, new or higher permit and service fees, non-ad valorem assessments for services such as road paving, reserve draws, tax-rate increases, and eliminating or delaying projects. Most of these could only happen through a public process.
This is where the exemption runs out. It applies to non-school property taxes. Non-ad valorem assessments aren't reduced by it, and a service fee isn't a property tax. If the village covers part of its gap with assessments or fees, a homesteaded owner pays those in full, the same as a landlord.
The village already raised one fee this year. Town-Crier reported that the stormwater fee will rise from $6.50 to $7.50 to build reserves for the stormwater system. Mayor Jeff Hmara told Town-Crier which areas he saw as most at risk from a 40 percent revenue loss: village public services, recreation, senior services, events and beautification. His examples included mowing park grass less often and putting canal dredging at risk in a village with 18 miles of canals. He described the measure as "a tax shift, not a tax cut." Police, fire and village employees make up 85 percent of the village's operating budget, Hmara said. Royal Palm Beach contracts with the Palm Beach County Sheriff's Office for law enforcement.
Royal Palm Beach isn't alone. Town-Crier cited a Wellington analysis estimating a $7.2 million loss and a West Palm Beach analysis putting that city's at $21.7 million. If you're comparing those towns, it's worth watching how each one fills its gap.
Landlords get a different deal
Rental homes don't get the homestead exemption. What they get is a lower cap on how fast assessed value can grow, which drops from 10 percent to 5 percent a year for non-school taxes. The Property Appraiser points out that this limits assessed value only. It doesn't cap tax rates and doesn't guarantee a bill grows by 5 percent or less. That matters in a year when Royal Palm Beach's taxable values were projected to rise 8.24 percent, according to the September budget coverage. Like homestead owners, landlords would pay in full any fees or assessments the village adds.
The 2027 calendar
- December 31, 2026: the residency date that decides which exemption track a new homesteader starts on.
- January 1, 2027: the amendment takes effect and the non-school exemption rises to $150,000.
- August 2027: TRIM notices show the change for the first time.
- November 2027: first tax bills with the larger exemption.
- January 1, 2028: the exemption rises to $250,000.
Royal Palm Beach's next budget season will run alongside this calendar. Whatever the village decides about rates, fees or assessments will appear on the same TRIM notice that first shows the new exemption.
Quick answers
Do current homesteaded owners in Royal Palm Beach need to reapply? No. The Property Appraiser says the increased exemption will be applied automatically starting with the 2027 tax year for owners who meet the requirements.
Does this change what I pay in school taxes? No. The increased exemption covers non-school taxes only.
Does it affect senior or veteran exemptions? Those exemptions aren't eliminated. Depending on a property's taxable value, the larger homestead exemption may reduce or eliminate the additional savings they provide.
If you're buying or selling here in 2027, the comparison now includes the residency date and the village's next budget, not just the price. You can find more local background in our Royal Palm Beach neighborhood guide, our breakdown of what $500K buys in Royal Palm Beach and our buyer's guide. If you own a rental and want to know how the 5 percent cap and possible new village fees affect your numbers, or you're relocating and want to talk through timing before December 31, call me. At On Call Realty, I answer my phone. Schedule a free consultation.
