Market Brief
Bay County expects to lose about $22 million in property tax revenue by 2028 after voters passed Amendment 3, and county leaders say parks and libraries could face cuts while the jail and elections are protected.
How Amendment 3 hits Bay and Walton county budgets, which services officials say are at risk, and what it means for Panama City area owners and buyers.
Bay County projects a revenue loss of about $22 million by 2028 from Amendment 3, which Florida voters passed on November 3, 2026, WJHG reported. The amendment raises the homestead exemption from non-school property taxes to $150,000 next fall and $250,000 by 2028. County leaders said the jail and elections are protected while parks and libraries could face cuts. Neighboring Walton County projects a loss of $4 million to $8 million.
This piece covers what the two counties said they will do, what changes for Panama City area homeowners, and what buyers should check before they close. Monthly market figures are on the Panama City market data hub.
How much revenue will Bay County lose under Amendment 3?
| County | Projected loss | Protected or prioritized | Possible cuts or changes |
|---|---|---|---|
| Bay | About $22 million by 2028 | Jail, elections, first responders; two new fire and EMS stations due in six to eight months | Parks and libraries; consumption taxes that shift more of the cost to visitors are under study |
| Walton | $4 million to $8 million | Public safety | County vehicle fleet first; budget town halls before other cuts |
Source: WJHG, November 4, 2026.
Bay County Manager Joel Schubert said the county fully funded its general fund reserves this year and that infrastructure projects and employee salaries would most likely be unaffected, WJHG reported. Budget planning for the change starts next summer in both counties. Before the vote, Schubert told a Bay County Chamber audience that 87% of every property tax dollar the county collects is already committed, WJHG reported on October 2. The Central Panhandle Association of Realtors endorsed the amendment, according to the same report.
What does Amendment 3 change for Panama City homeowners?
The amendment applies to homestead property, a primary residence the owner has claimed for the exemption. It raises the exemption on non-school taxes; school district taxes keep their existing exemption. Rental homes, second homes and vacation condos, which make up a large share of Panama City Beach ownership, do not get the homestead exemption, so their bills are not reduced by it.
The savings for a homestead owner depend on the home's assessed value and on the millage rates the county, city and other districts set. A home assessed below the new exemption level could see its non-school county and city taxable value drop sharply, while a higher value home gets the same fixed exemption. Our Amendment 3 calculator estimates the change for a given value, and the Bay County property tax page lists local millage rates. Our Amendment 3 explainer covers the statewide rules.
Local governments can respond to lower taxable values by raising millage rates, adding other taxes and fees, or cutting spending. Bay County has named parks, libraries and consumption taxes as the areas it is weighing. Non-homestead owners, including landlords and second-home owners, could pay more if a city or the county raises rates to make up the difference.
How is the Panama City housing market doing as budgets tighten?
Our October Market Pulse for the Central Panhandle MLS shows Bay County recorded 385 residential closings in October 2026 at a median sale price of $345,000 and a median of 73 days on market. Across the whole feed, the October median was $328,150 on 498 closings. Walton County sales in the same feed, mostly the northern part of the county, numbered 18 at a median of $595,000.
| County | October 2026 closings | Median sale price | Median days on market |
|---|---|---|---|
| Bay | 385 | $345,000 | 73 |
| Walton (Central Panhandle MLS only) | 18 | $595,000 | 69.5 |
| All Central Panhandle MLS counties | 498 | $328,150 | 74 |
Source: Momentum Market Pulse, Panama City, October 2026 edition, computed by Momentum from Central Panhandle MLS records (all residential). Deemed reliable but not guaranteed. Most Walton County coastal sales trade through a different MLS and are covered on our Destin market data hub.
What should Panama City buyers check before closing?
Buyers planning to live in the home should file for the homestead exemption with the Bay County Property Appraiser by the state deadline in the year after they buy, since the larger exemption only helps owners who claim it. A seller's current tax bill is a weak guide for a buyer, because the buyer's assessment resets near the purchase price; our Bay County listing tax bills piece shows how far apart the two can be. Investors and second-home buyers should budget for the full non-homestead bill and watch the county's 2027 budget hearings.
Current listings are on the Panama City, Panama City Beach and Lynn Haven market pages. Our Panama City area ZIP code piece and sales by county and price piece have more market detail.
People also ask
How much will Bay County lose from Amendment 3? Bay County projects a revenue loss of about $22 million by 2028, WJHG reported on November 4, 2026. County leaders said parks and libraries could be cut while the jail and elections are protected.
When does the new Florida homestead exemption start? Amendment 3 raises the homestead exemption from non-school property taxes to $150,000 next fall and to $250,000 by 2028, according to WJHG.
Does Amendment 3 lower taxes on Panama City Beach rentals or second homes? No. The homestead exemption applies only to a primary residence the owner has claimed. Rentals and second homes do not receive it.
What is the median home price in Bay County? Bay County residential closings had a median sale price of $345,000 in October 2026 on 385 sales, according to our October Market Pulse.
Limitations
Revenue projections are county estimates as reported by WJHG and may change as budgets are built; other local reports have cited different figures based on different assumptions and time frames. City governments, including Panama City and Panama City Beach, will set their own responses. This is general information, not tax advice. Market figures are computed by Momentum from MLS records and are deemed reliable but not guaranteed.
Sources
- Leticia Vaselli, Bay and Walton counties plan for revenue loss after Amendment 3 passes, WJHG, November 4, 2026.
- Kailey Schuchts, Amendment 3 raises concerns among Bay County leaders ahead of November vote, WJHG, October 2, 2026.
- Momentum Market Pulse, Panama City, October 2026 edition, Momentum Research report built from Central Panhandle MLS records.
- Panama City market data hub, Momentum Research.
Disclosure: Jon Brooks is a co-founder of Momentum Realty, a Florida real estate brokerage that owns and funds Florida Housing Intelligence. Momentum has a financial interest in Florida real estate transactions, including in markets named here. See our editorial standards.
Market statistics in this article are computed from MLS data licensed by Momentum Realty, and are current as of the date shown. Data may be preliminary and subject to revision by its source. This article is general information, not advice about any specific property, transaction, or financial decision, and is not a representation about any specific property, community, builder, or association.
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