--- title: "Florida property-tax cut could strip billions from local governments and fire protection" description: "The amendment is projected to drain local budgets that fund fire departments and building offices, and insurers use those services when they price homes." url: https://insurance.skoop.news/new-florida-property-tax-cut-could-impact-insurance-rates-ca-982502/ published: 2026-11-07T03:41:05.655993-05:00 modified: 2026-11-07T03:41:05.655993-05:00 section: "Insurance" publisher: "skoop.news" language: en keywords: ["Florida", "Jesse Keenan of Tulane University", "Pinellas County Sheriff Bob Gualtieri", "Florida Association of Counties", "Insurance Information Institute", "Insurance Services Office", "Verisk Analytics Inc", "ISO", "Dunedin", "Legislature"] hashtags: ["#JesseKeenanOfTulaneUniversity", "#FloridaAssociationOfCounties", "#Insurance", "#insurancenews"] image: https://upload.wikimedia.org/wikipedia/commons/f/f2/Alfa_insurance_logo.png?utm_source=commons.wikimedia.org&utm_campaign=imageinfo&utm_content=thumbnail_unscaled --- # Florida property-tax cut could strip billions from local governments and fire protection > The amendment is projected to drain local budgets that fund fire departments and building offices, and insurers use those services when they price homes. Published 2026-11-07 · Insurance, [skoop.news](https://skoop.news/) ## In brief - Florida's property-tax cut is projected to strip billions of dollars from local governments, and homeowners who insure property in the state have reason to watch where the cuts land. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) - Many insurers rely on ISO ratings, which are produced by the Insurance Services Office, a private insurance-data company owned by Verisk Analytics Inc. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) - Businesses, landlords and second-home owners do not get the expanded homestead exemption. They benefit from a provision capping annual assessed-value increases at 5%, down from 10%. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) ## A projected loss of billions Florida's property-tax cut is projected to strip billions of dollars from local governments, and homeowners who insure property in the state have reason to watch where the cuts land. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) Florida TaxWatch says the amendment will cost counties, cities and special districts tens of billions of dollars in lost revenue over its first five years. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) The revenue loss could squeeze fire departments, building safety offices and other services that help protect homes and reduce losses. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) Pinellas County Sheriff Bob Gualtieri has warned that the amendment could jeopardize public safety. [[2]](https://commercialobserver.com/2026/11/florida-property-tax-amendment-3/) ## Why fire service budgets matter to insurers Many insurers rely on ISO ratings, which are produced by the Insurance Services Office, a private insurance-data company owned by Verisk Analytics Inc. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) ISO evaluates local fire protection, including firefighter staffing, training, equipment, water supply and emergency communications. It then assigns communities a rating insurers can use in underwriting. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) Mark Friedlander of the Insurance Information Institute said a reduction in fire protection services can lead to a lower ISO rating. A downgraded rating could cause premiums to increase. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) The city of Dunedin, in Pinellas County, is doing contingency planning for having fewer firefighters working per shift. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) ## Who gets the cut Businesses, landlords and second-home owners do not get the expanded homestead exemption. They benefit from a provision capping annual assessed-value increases at 5%, down from 10%. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) The measure applies only to people who were Florida residents before the end of the year. Transplants must wait five years to qualify for the cuts. [[2]](https://commercialobserver.com/2026/11/florida-property-tax-amendment-3/) ## Backers, opponents and the cost shift Florida Realtors spent heavily to support the measure, promoting it as a way to ease housing costs. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) The Florida Association of Counties opposed it. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) Former Republican state senator Jeff Brandes, who opposed the initiative, said the governor and Legislature are responsible for managing the fallout. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) Officials will likely raise millage rates and fees, including permit fees, to make up for the shortfall, diminishing the touted savings. [[2]](https://commercialobserver.com/2026/11/florida-property-tax-amendment-3/) ## The starting point: costly homes, middling tax rates Homes in Florida are already among the most costly to insure in the US because of exposure to hurricanes, floods and other natural hazards. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) Florida's mean effective property-tax rate on owner-occupied homes ranks 27th among states. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) Jesse Keenan of Tulane University said Florida homeowners will pay for living in a high-risk area either as taxpayers or as ratepayers. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) ## What it means for you If you own a Florida home, the savings may be smaller than advertised, because officials will likely raise millage rates and fees, including permit fees, to make up for the shortfall. [[2]](https://commercialobserver.com/2026/11/florida-property-tax-amendment-3/) Keenan said homeowners will pay for living in a high-risk area either as taxpayers or as ratepayers. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) If your local fire department cuts staffing, your community's ISO rating is one thing to watch, since insurers can use it in underwriting. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) A reduction in fire protection services can lead to a lower rating, and a downgrade could cause premiums to increase. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) If you own a business, rent out property or hold a second home, you do not get the expanded homestead exemption. You benefit from the cap on annual assessed-value increases at 5%, down from 10%. [[1]](https://www.carriermanagement.com/news/2026/11/06/293289.htm) If you moved to Florida recently, you must wait five years to qualify for the cuts. [[2]](https://commercialobserver.com/2026/11/florida-property-tax-amendment-3/) ## Sources 1. [New Florida Property Tax Cut Could Impact Insurance Rates - Carrier Management](https://www.carriermanagement.com/news/2026/11/06/293289.htm) — Carrier Management 2. [Florida’s Property Tax Cut Proposal Could Boomerang on Commercial Owners](https://commercialobserver.com/2026/11/florida-property-tax-amendment-3/) — Commercial Observer Image: Photo (illustrative): Alfa designer / Wikimedia Commons, Public domain (https://commons.wikimedia.org/wiki/File:Alfa_insurance_logo.png) --- Written from the sources above and checked twice (rules and an independent model) before publishing. How we work: https://skoop.news/how-we-work/ · Corrections: https://skoop.news/corrections/