Amendment 3: What It Could Mean for Marco Island, Collier County and Florida

Homeowners are facing higher insurance premiums, housing costs, gas prices, and higher maintenance costs; so are cities and counties. Collier County is exposed to the same inflationary pressure on goods and services. It is incumbent upon each city and county to annually assess budget needs. At local levels, citizens have the greatest opportunity for input and control by visiting elected officials or attending policy meetings. Amendment 3 is a state reduction without a plan for continuing services.

In the 2026 Fiscal Year, year to date, the county spent $17.6 million on electricity, up $1.1 million from the year before. The county spent $6.4 million on fuel in Fiscal Year 2026, which is up from $4.5 million in fiscal year 2025. The Collier County Sheriff’s Office also spent an additional $300,000 on jail-related food, which has dietary requirements set by law and recent hurricane costs were over $100 million for cleanup. The county is facing higher costs for goods and services just like the citizens we serve.

When considering Amendment 3, Marco Island residents should look closely at what the proposal could mean for their property and their community. In 1997, the majority of Marco Island voters opted to provide an increased level of service for citizens living within the new municipality’s boundaries. The voters approved of the City’s formation, understanding that adding a layer of governance would come at a cost.

Amendment 3 would increase Florida’s non-school homestead exemption from $50,000 to $150,000 in 2027 and to $250,000 in 2028, while reducing the annual assessment-growth cap on non-homestead property from 10% to 5%. These changes provide some tax relief to individual homesteaded properties but could shift costs to commercial and non-homesteaded properties.

For Marco Island, this matters. The Florida Policy Institute estimates that Amendment 3 will reduce Marco Island’s property tax revenues by approximately $2.1 million in FY 2028, with the annual impact growing to $3.4 million by FY 2032. Such losses of revenue come at a particularly challenging time for the City.

Marco Island has identified needs related to roads, bridges, drainage, parks, and other public assets. Its proposed FY 2027 capital plan includes approximately $6.9 million in projects, but some of these needs are currently unfunded.

Last year, the City staff slightly increased the millage rate after eight years of rollbacks. While this benefited the citizens financially, some infrastructure needs went unmet. Now, with funding decisions such as these possibly subject to the impact of Amendment 3, the City may be forced to make even more difficult choices.

The Florida Policy Institute estimates that Amendment 3 will reduce Collier County’s property tax values by $198.8 million. This reduction will affect overarching countywide services such as public safety (both detention and enforcement), parks, libraries, and maintenance on such infrastructure as roads and government facilities.

The Florida Association of Counties (FAC) estimates a $44.1 million impact to Collier County in FY 2028 and an $83.3 million impact in FY 2029. Florida TaxWatch’s estimates provided for Collier County are higher: $47.7 million and $91.9 million, respectively. These are projections, and the estimates differ, but each points to a substantial change that local budgets would have to address.

While Collier County is in good financial position, the challenge is even greater for counties with limited tax bases. Florida law defines a fiscally constrained county as one located entirely within a designated rural area of opportunity or where a one-mill property tax levy raises no more than $5 million annually. Twenty-nine of Florida’s 67 counties meet that designation. In comparison, one mill in Collier County is projected to generate $170.3 million in FY 2027. A statewide tax change will affect counties with vastly different abilities to replace lost revenue that provides critical services. In each county, circumstances are different. The “one-size-fits-all” cuts do not work.

Reducing revenue sources does not, by itself, reduce the need for public safety, roads, emergency management, courts, parks, libraries and other local services. Counties may have to reduce spending, find other revenue sources, increase fees or assessments, or adjust millage where permitted. Amendment 3 does not include dedicated state funding to replace the property tax revenue local governments would lose. Please review the Amendment language; it is extensive and while it indicates “Provide for” provisions, the source of revenue replacement is not guaranteed. Debt is referred to as a possible replacement but only adds to costs. It provides authority to fund certain costs but with over $47 million in estimated cuts, it does not offer revenue to support critical services.

For additional information on Amendment 3, please refer to our website at collierclerk.com or contact our office for a presentation to your HOA, friends, or other groups; we’ll be glad to answer your questions.