If you are moving to Sarasota, the date with the most effect on your future property tax bill is December 31, 2026. That is about six weeks after this post goes up. Under Amendment 3, which Florida voters approved on November 3, the size of your homestead exemption depends on whether you kept a permanent residence in Florida on that date. When you close on a house doesn't decide it. Someone who is renting in Sarasota on New Year's Eve and buys in 2028 can end up with the larger exemption. Someone who closes on a Siesta Key condo next spring while still living in New Jersey will wait years for it.
That one feature changes how relocating buyers, seasonal owners and second-home shoppers should think about the next few years in Sarasota. Here is how the rule is built, what it's worth in dollars, and how it fits a market that has tightened since last year.
The three dates that decide your exemption
Amendment 3 raises the homestead exemption on non-school property taxes to $150,000 in 2027 and to $250,000 in 2028. Today it is about $51,411. From 2029 it will be adjusted for inflation. It takes effect January 1, 2027. The newcomer rule is in the official ballot summary:
"Persons who are not Florida residents on December 31, 2026, will receive the existing homestead exemption upon qualifying for a homestead exemption, with the increased homestead exemption beginning with the fifth year of exemption, to the extent permitted by the U.S. Constitution."
In practice, three separate dates are in play for any Sarasota buyer:
- December 31, 2026, sets your tier. The joint resolution text puts owners who "had not maintained a permanent residence in this state as of December 31, 2026" in the lower tier.
- January 1 of any tax year sets eligibility for that year. The Sarasota County Property Appraiser requires Florida residence, ownership and occupancy as a permanent residence on January 1.
- March 1 is the filing deadline. A timely homestead application for that tax year is due by March 1.
The first date is new, and it is the only one that falls once and never again. The second and third come back every year.
Why a renter can come out ahead of a buyer
Under the rule, Florida residency on the cutoff date counts. Owning property here does not. Florida Realtors says this outright in its October 2 explainer, which features Tallahassee tax attorney French Brown. Anyone whose primary residence is in Florida on December 31, 2026 qualifies for the full benefit, "and that includes renters who buy a home later." Brown advised renters to keep proof of residency such as a driver's license, voter registration or utility bills.
The waiting period has a second detail. The constitutional text gives the larger amount starting "the fifth year of exemption under this subparagraph." The wording ties the count to years of exemption, and a year of Florida residency without a homestead exemption is not a year of exemption. The comparison below works out examples from that wording, and how it is applied to any one owner is a question for a Florida tax professional. Each one assumes the owner files on time every year.
| Buyer situation | Exemption tier | First homestead year | Larger exemption starts |
|---|---|---|---|
| Florida resident on Dec. 31, 2026, owns and occupies on Jan. 1, 2027 | Full | 2027 | 2027, at $150,000 |
| Renting in Florida on Dec. 31, 2026, buys and occupies by Jan. 1, 2028 | Full | 2028 | 2028, at $250,000 |
| Not a Florida resident on Dec. 31, 2026, buys and occupies by Jan. 1, 2027 | Existing | 2027 | 2031, the fifth exemption year |
| Moves to Florida during 2027, buys and occupies by Jan. 1, 2028 | Existing | 2028 | 2032, the fifth exemption year |
Look at the last two rows. A newcomer who arrives after the cutoff and waits a year to buy also starts the five-year count a year later. Florida Realtors puts it this way: people who move here after December 31 receive the current exemption for their first four years and the enhanced exemption from year five. The joint resolution also tells the Legislature to set uniform procedures by general law to administer this tier. The details of how the count is administered will come from that law.
What "permanent residence" means at the Property Appraiser's counter
The Sarasota County Property Appraiser already defines the term the amendment relies on. A permanent residence is a person's true, fixed and permanent home and principal establishment, the place they intend to return to. You can have only one at a time, and the status is presumed to continue until you change it. There is no minimum number of days you must spend in the home each year. You also don't have to be physically present on January 1 if you hold title, intend to return and meet the other residency factors.
The Appraiser weighs these factors:
- A Florida driver's license or ID, with any other state's license given up
- A Florida vehicle tag and Florida voter registration
- A recorded declaration of domicile
- Employment, where your children attend school, and tax returns
- Banking and utilities
- Your prior residence and when it ended
To file an application, the Appraiser's general guidance asks for a Florida ID or driver's license plus at least one of these: voter registration, vehicle registration, or a recorded domicile declaration, along with information about your prior residence. The alternative is two secondary proofs, such as employment, school, tax return, utility or bank records, again with prior-residence information. For a Hoboken or Jersey City owner who spends winters on the Gulf Coast, these are the same records that show which state is home.
The rules here carry real money, so take this section as general information, not legal, tax or financial advice. Confirm your own residency and filing position with the Property Appraiser's office and a Florida tax professional.
What the larger exemption is worth on a Sarasota bill
Sarasota County gives its own example. A homestead with a $300,000 taxable value, after Save Our Homes and the existing exemptions, has a current tax bill of $4,344. With a $250,000 exemption, the County estimates that bill at $3,268, about $90 a month less. Your Observer ran a separate example. A $350,000 homesteaded house in Sarasota County would have a taxable value of $100,000 in FY 2029 and, at the current millage rate, a county tax bill of $339.
Two parts of the bill don't change. School taxes, which the County calls the most expensive portion, are not reduced. Neither are charges for services such as solid waste and stormwater. The County's example puts the yearly difference at $1,076. Applied to the four years a newcomer spends in the lower tier, the same example works out to about $4,300, and that figure is what the residency date is worth in this example.
Second homes get a different deal, and possibly a bigger share of the bill
Many Sarasota buyers own a primary home elsewhere and won't claim a homestead here at all. For them, Amendment 3 lowers the cap on yearly increases in assessed value for non-homestead property, which covers second homes, rentals, businesses and vacant land, from 10% to 5% for non-school taxes.
The County's own page describes the other side of that cap. The amendment cuts local property tax revenue and provides nothing to replace it. The County estimates the hit to county services at about $87 million in Fiscal Year 2029. It also expects a more than $11 million reduction in funds that support Emergency Medical Services. It says taxes may rise on second homes, rentals and other non-homestead property as homestead bills fall. Local governments may also consider park fees, library fees, or higher property tax rates. Mosquito control, navigable waterways and improvements on Siesta Key are among the special-district services the County lists as funded by property taxes.
Before the vote, Florida TaxWatch CEO Jeff Kottkamp told the Business Observer that the measure would not directly help non-homestead owners, snowbirds among them. Local officials have started their budget reviews. WWSB reported that Sarasota City Commissioner Liz Alpert said the city would need to look at what to cut. Commissioner Jen Ahearn-Koch spoke to Your Observer about the city needing to set priorities. On Longboat Key, where most properties belong to seasonal residents, Your Observer reported that the larger exemption should have less budget impact. Commissioner BJ Bishop asked whether fees or emergency-service staffing would be affected.
For a second-home buyer, the 5% cap limits how fast the taxable value can climb. The rate applied to that value and any new fees are still being decided this budget season.
Why a late-2026 closing doesn't line up with the cutoff anyway
The market itself makes the residency distinction matter more. In September 2026, according to the Realtor Association of Sarasota and Manatee, Sarasota County single-family homes took a median 51 days to go under contract. Sellers received 94.3% of original list price. Inventory was 3.7 months of supply, down from 4.8 a year earlier, with active listings down 16.2%. The median sale price was $485,000, up 7.8%. Starting from mid-November, a 51-day search to contract runs into January before closing is even scheduled.
Condos and townhomes moved more slowly. In September 2026 they took a median 77 days to contract, with 4.9 months of supply, down from 6.8, and a median price of $335,000, up 6.3%. Closings rose 34.3% to 309. Cash buyers made up 195 of those 309 condo closings, about 63%, and 287 of 681 single-family closings, about 42%. The September condo average price jumped 157.9% while the median rose 6.3%. RASM ties the jump to all 10 of the county's $10 million-plus condo and townhome sales for the third quarter closing in September, which says more about the mix of sales than about typical values.
With inventory tighter and searches running longer than the weeks left in the year, the tier question comes down to residency paperwork for most buyers. Closing dates won't settle it.
Quick answers
Do current homestead owners need to do anything? According to Florida Realtors, owners who already have a homestead exemption will see the increase on their TRIM notices automatically.
Does Amendment 3 change Save Our Homes or portability? No. Brown told Florida Realtors members that "Amendment 3 does nothing to change Save Our Homes," and portability stays in place.
Which local governments are affected? Sarasota County names all four municipalities, Sarasota, Venice, North Port and Longboat Key, plus Sarasota Memorial Hospital, West Coast Inland Navigation and the Southwest Florida Water Management District.
If you are timing a move from Hoboken or Jersey City to Sarasota around this new date, Brenda Wolfe can lay out your search, your closing and your homestead calendar side by side, then connect you with the Florida tax and legal professionals who can confirm the residency details. Let's talk about your next move. Schedule a consultation.
