In November, we shared with you an overview of financial governance in the Town of Orchid, with a particular emphasis on property taxes.
Additionally, please review the Town’s independently audited annual financial statements for recent years or find the Town’s annual financial reports to the Florida Department of Financial Services. You may also request copies of the monthly financial snapshot reports prepared for Councilmembers and/or monthly bank and investment statements.
Florida voters will decide on the amendment at the November 2026 general election, when approval will require at least 60% of the votes cast on the measure to be in favor of it. If that threshold is reached, the principal constitutional changes would take effect on January 1, 2027. Implementing legislation and local budget decisions thereafter would determine many practical details.
If approved, HJR 1F would become part of the Florida Constitution. The State Legislature could enact implementing laws consistent with the amendment, but a material change to the constitutional requirements ordinarily would require another constitutional amendment approved by at least 60% of Florida voters participating in a referendum.
Property taxes are the Town of Orchid’s principal revenue source and help support the Town’s general operations, services, and ability to respond to local needs, including but not limited to:
Importantly, the proposal does not require the Town to discontinue any particular service.
Because revenues are deposited into the Town’s General Fund, property taxes, which generally make up more than half of all regular revenues, should be understood as supporting the Town’s overall operations rather than being assigned exclusively to particular services. Town services and activities may also be supported by intergovernmental revenues, fees, investment earnings, and other sources.
Property taxes paid to other local taxing authorities may support services such as:
Each taxing authority adopts its own budget and determines how its revenues will be used. Apart from authorizing uses for property taxes, the proposal does not make requirements on local taxing authorities regarding where to make cuts, if those are part of a taxing authority’s funding strategy.
Not with certainty. The result will depend on:
An Orchid property owner pays property taxes to several taxing authorities. A typical tax bill includes levies from the Town of Orchid, but also from Indian River County, the School Board, and a variety of special districts, including Mosquito Control and Water Management. Search for your property’s most recent tax bill to see them all.
The Revenue Estimating Conference projects that the Indian River County Board of County Commissioners would experience reductions of approximately $30,400,000 in 2027 to 2028 and $54,000,000 in 2028 to 2029. Independent special districts in Indian River County are collectively projected to lose approximately $5,700,000 in fiscal year 2027 to 2028 and $10,100,000 in fiscal year 2028 to 2029.
Each taxing authority adopts its own budget and millage rate. Florida law requires a public budget and notice process when a taxing authority establishes that rate, and local governments retain legal authority, within constitutional and statutory limits, to change their millage rates.
The Florida Legislature’s Revenue Estimating Conference published taxing-authority estimates.
Its July 10, 2026, analysis projects the following reductions in revenue for the Town of Orchid:
These are state estimates rather than guaranteed results. They depend on future property values, exemptions, residency patterns, millage rates, implementing legislation, and other assumptions used in the state model.
For context, Orchid collected approximately $423,000 in property-tax revenue during the fiscal year ended September 30, 2025, per the Town’s most recent independently audited financial statements. Property taxes generally make up at least 50% of the Town’s regular revenues. About a quarter of regular revenues are restricted to specific uses.
Orchid’s projected dollar impact is comparatively modest based on these official estimates, but the effects are cumulative.
The proposal directs the Legislature to establish by general law a uniform procedure for counties and municipalities to increase the exemption. Because implementing legislation is not available, the potential additional effect on Orchid cannot yet be quantified, but it is helpful to note that more than half of properties in Orchid are currently homesteaded.
Like the boards of all other non-school taxing authorities with jurisdiction in Orchid, the Town Council would need to address any recurring revenue reduction through its annual budget process.
Broadening of the tax base may be another strategy used by some taxing authorities. This could include prioritizing or otherwise encouraging commercial, rental, or other non-homestead development. However, this approach could create additional service and infrastructure costs that would need to be balanced. Any such strategy would need to be consistent with the community’s comprehensive plan, environmental and coastal constraints, infrastructure capacity, and long-term vision. Furthermore, development depends on market conditions, as well as available land. The effect of this proposal on growth is not predictable.
The Town of Orchid is platted and almost entirely built out. No additional growth is estimated, regardless of the outcome of the proposal.
The proposal does not require any taxing authority to adopt or eschew any particular response. Depending on the size of its revenue reduction, a taxing authority could:
Any millage-rate increase, fee, assessment, service reduction, or other budget action would be considered separately through the applicable and established public processes. Some entities may determine no adjustment strategy is needed.
For this reason, the ultimate effect of the proposal may depend not only on the amount of a property owner’s new exemption, but also on the budget and revenue decisions made by each taxing authority appearing on the property-tax bill.
The proposal does not address other types of taxes to which Florida’s property owners may be subject. There is no increase in the sales tax rate proposed in this measure, for instance.
It may be of interest to some property owners that, generally, local property taxes may be deductible on a federal income-tax return for taxpayers who itemize, subject to federal limitations. Fees for services and many assessments are generally not deductible.