Palmetto Bay is most reliant on homestead property taxes in Miami-Dade, making Amendment 3 a big risk, mayor says

The Village of Palmetto Bay could face significant budget shortfalls if Florida voters approve Amendment 3, a measure that would lower the taxable value of primary homes statewide.

If passed, Amendment 3 would lower the taxable value of primary residences by $150,000 in 2027 and by $250,000 in 2028.

For Palmetto Bay, where 73.3% of properties are homesteaded, the hit could be especially severe. Outgoing Mayor Karyn Cunningham said that makes the village the most reliant on single-family property taxes in Miami-Dade County.

"Because we're 73.3 percent homesteaded properties in the village of Palmetto Bay it makes us the most reliant in Miami-Dade County," Cunningham said. "Those with larger commercial bases may be a little less worried about the impact. But if you're here in Palmetto Bay it's going to create a huge impact."

Village estimates show that if Amendment 3 passes, Palmetto Bay could lose $2.2 million — or 8% of its property tax revenue — next year, and more than $3.5 million, or 14%, the following year.

The village's current budget was recently approved, but Cunningham said Amendment 3's cuts would hit during next year's budget cycle.

With a new mayor and two new council members taking office next year, leadership is already looking at spending cuts. Councilman Steve Cody said that includes scaling back the village's contracted partnership with the sheriff's office.

"That may mean that we're going to have to cut back and lose a couple of deputies," Cody said.

Families are weighing personal tax relief against cuts to public services. John Hannau pays around $8,000 a year in property taxes. He likes the idea of relief but worries about what gets cut.

"It's doable, but yeah, of course it'd be nice to get that reduced," Hannau said. He's still undecided, unsure what services — parks, public safety — might take the hit. "It wouldn't make sense if we were to lose benefits to what those taxes provide."

CBS News Miami is sitting down with all mayoral candidates to ask how they'd manage the village if Amendment 3 passes.