Hollywood city officials are warning residents that a statewide property tax measure on the ballot could blow a $34 million hole in the city's budget, forcing officials to choose between cutting services, raising fees, or both. The warning came during a public meeting where residents could ask questions and learn more about Amendment 3, the proposed constitutional amendment that aims to drastically slash property taxes across Florida.
Deputy City Manager Adam Reichbach led the presentation, laying out just how exposed Hollywood's budget is to the proposed changes. As reported by CBS News, Reichbach said the initial tax reduction alone could cost Hollywood $34 million in lost revenue, and he didn't mince words about what that could mean going forward: “Nothing is safe” from potential cuts, he said. Cities, he explained, must balance their budgets every year, and that leaves Hollywood with a narrow set of options — cutting services or programs, raising taxes or fees, or some combination of both.
What Amendment 3 Would Actually Change
Amendment 3 would raise the non-school homestead exemption to $150,000 starting January 1, 2027, and then to $250,000 the following year, according to Florida TaxWatch. Starting in 2029, that exemption would be adjusted annually for inflation. The increase applies only to homesteaded primary residences — second homes, rental units and commercial properties are not eligible, and the exemption would not touch school property taxes, which make up roughly 40 percent of the average tax bill.
The measure would also lower the annual cap on assessment increases for non-homestead properties from 10 percent to 5 percent, per the Florida League of Cities. And beyond the immediate exemption increases, the proposal would open a pathway toward fully exempting homesteads from non-school property taxes, according to the Institute on Taxation and Economic Policy. Under Amendment 3, the state Legislature would be required to create a process for increasing homestead exemptions toward full assessed value, while local governments would decide whether to use that process to eliminate non-school property taxes on primary residences.
Rising Costs Add to the Squeeze
Hollywood's budget troubles aren't just about lost tax revenue — Reichbach pointed to municipal operating costs that are already rising sharply. He said landscaping contracts are up more than 25 percent, police vehicle costs have climbed 25 percent, and medical supplies have jumped a striking 160 percent. Police vehicles and fire units also rely on gas, another expense that fluctuates and adds pressure to day-to-day operations.
Hollywood says property taxes make up approximately 40.9 percent of its general fund, according to the city's own Office of Budget and Strategy, though the CBS News report on the meeting put the figure at 46 percent of general fund revenue coming from tax revenue. The city's Office of Budget and Strategy prepares Hollywood's annual operating budget, which runs each year from October 1 through September 30.
Who Picks Up the Tab
If Hollywood loses tens of millions in expected revenue, officials say property owners without a homestead exemption could face tax increases to help offset the shortfall. That mirrors warnings playing out statewide: local governments could raise rates on properties still eligible to be taxed or lean more heavily on other revenue sources to make up the difference, according to NBC 6 South Florida.
Statewide, the stakes are enormous. State economists project Amendment 3 would cut local property tax revenue by nearly $12 billion annually on a recurring basis, per Florida TaxWatch, while a separate estimate from the same NBC 6 report put the first two years' hit at $13.7 billion statewide. A Fox 13 Tampa Bay report cited a different projection of an $11 billion statewide revenue loss, underscoring that estimates vary depending on the source and methodology. For context, Florida's schools, counties, cities and special districts collected about $59.1 billion in property taxes in 2025, nearly 75 percent more than in 2019, per the same NBC 6 report.
Public Safety Could Feel the Pinch
Experts warn that falling tax revenue combined with rising equipment and insurance costs will likely shrink public safety funding in cities and counties across Florida, according to NBC 6. A 2025 Florida League of Cities analysis found that police, fire and EMS spending already exceeds all property tax revenue collected in 176 of Florida's 276 cities, and the same analysis estimated that 85 cities would be unable to fund public safety at current levels under a $250,000 homestead exemption — even if every other property-tax-funded service were eliminated. A separate Florida Association of Counties analysis found public safety is the largest single budget item in 55 of Florida's 67 counties, consuming roughly 85 cents of every property tax dollar collected.
The threat isn't uniform across Florida communities. WGCU News reported that North Port, a largely residential community, stands to lose a larger share of its annual budget than nearby Sarasota, which has fewer homes and a larger commercial tax base to draw from. That dynamic could play out in Hollywood too, where officials have been direct that homeowners benefiting from a bigger exemption may eventually see the cost shift elsewhere — whether through higher fees, service cuts, or increased rates on properties that don't qualify for homestead protection.
For homeowners who do qualify, the savings could be real: NBC 6 reported that a $400,000 primary residence in Broward County could see its property tax bill drop by about $2,672 in 2028 under the amendment's stated assumptions. Whether that relief is worth the tradeoffs Hollywood officials described is now a question voters will have to weigh for themselves.
