Pinellas Suncoast Transit Authority | a3

Amendment 3 Impacts on Transit

This November, Floridians will face an important decision regarding the future of property taxes. Homesteaded homeowners will see a lower property tax bill if Amendment 3 passes. At the same time, many public services funded by property tax—including public transit—will lose funding that makes their current level of service possible.

This page provides information about the proposed amendment and PSTA’s financial planning estimates. It does not recommend a vote for or against the amendment.

The potential service and staffing changes below reflect a PSTA planning scenario, not automatic requirements of the amendment. Any service changes as a result of declining revenues must be approved by PSTA’s Board of Directors. Board members requested staff provide a scenario should Amendment 3 pass. Staff presented the following scenario to the PSTA Board of Directors during a June 2026 workshop and in presentations made to the Board of Directors in July and August 2026.

The scenario that was discussed included reducing PSTA’s services to a core-only network. The map below shows what a core-only scenario would look like:

This map illustrates a potential response to projected funding reductions.

What is Amendment 3

Amendment 3 is a constitutional amendment that, if passed, will increase the Homestead Exemption for non-school taxes from $50,000 to $150,000 in 2027, increase to $250,000 in 2028, and adjust for inflation starting in 2029. This means that if your home is assessed to be worth $500,000, the first $150,000 in 2027, then $250,000 in 2028, of value will not be taxed. However, you would be taxed on the remaining amount of assessed value. Amendment 3 would not eliminate property taxes; it would lower the amount of assessed home value that’s taxed.

Additionally, Amendment 3 would decrease the cap on how much the assessed value of non-homestead properties, like rentals and commercial buildings, can increase each year from 10% to 5%, except for school district taxes.

Property taxes fund many public services that every resident, whether homeowner or renter, relies on. 

The property appraiser estimates $253,116,677 of lost revenue to all local and county governments in Pinellas County starting in 2028. All local and county governments would have to address this lost revenue to still provide many public services that all Pinellas County residents depend on.

How Amendment 3 Affects PSTA Funding

PSTA’s budget is split between an operating budget and a capital budget. Operating costs include expenses needed to keep the lights on, fill gas tanks, pay staff, and keep buses, trolleys, and ferries running. Capital costs, on the other hand, include projects that improve existing services or brand-new services that expand regional mobility and help get more cars off the road. 

Basically, the operating budget is used to operate the current system, and the capital budget is used to fund brand-new, innovative projects.

When you see PSTA in the news for winning millions of dollars in funding for things like new buses or the new ferry service, that money can only be used for those capital projects. These grants cannot be used for operating costs.

Let’s take a look at what funding sources power our yearly operating budget:

Nearly 70% of our operating budget is funded through property taxes.

According to the tax appraiser, PSTA may lose up to 24% of it’s property tax budget. The agency would be unable to provide its current level of service and may have to consider cuts to bus, trolley, and ferry services. Additionally, Amendment 3 could impact funding we receive from municipalities for unique services such as the beach trolleys, the Clearwater Ferry, the upcoming ferry between St. Pete and Tampa, and the Transportation Disadvantaged (TD) programs that support riders at or below 200% of the poverty line.

The following forecast separates direct property tax effects from assumed changes in municipal contributions, fare revenue, and other funding sources.

*According to the Pinellas County Tax Appraiser.

If Amendment 3 passes, property taxes will be indexed to inflation starting in 2029, so the lost property tax revenue number is expected to increase each year.