Property Tax Amendment: Potential Impact on Arts & Culture in Palm Beach County

Legislative analyses project Amendment 3 could reduce local government revenues statewide by $4.6 billion initially, growing to $8.4 billion annually. Palm Beach County, as one of Florida’s largest tax bases, is projecting annual revenue losses of $324 million once the amendment phases in—a reduction of more than 38% in current operating revenue.

At the municipal and special-district level, projected impacts include a $31.8 million annual budget loss for West Palm Beach, a publicly estimated $16.7 million annual loss for Boca Raton by year two, and an estimated $26 million annual budget reduction for the Children’s Services Council. The Florida League of Cities has also projected that South Bay could lose 99% of its tax base.

Reductions of this scale could create difficult budget decisions for counties, municipalities and special districts that invest in arts, culture, parks, libraries, tourism and other quality-of-life services.

As the County’s designated Local Arts Agency, the Cultural Council is contracted with Palm Beach County to administer a small grant program that distributes approximately $400,000 in ad valorem taxes annually to small or emerging cultural organizations. The Category C-I Cultural Development Fund supports cultural heritage and traditions, cultural opportunities for children and youth, and culturally diverse, innovative and excellent programs and projects. The Cultural Council believes this program offers critical support for smaller organizations and is a gateway toward eligibility for tourism grants and larger funding opportunities. This grant will be at risk if Amendment 3 passes.

The Cultural Council is also contracted by Palm Beach County’s Tourist Development Council to administer a portion of locally generated bed taxes through Category B and Category C-II grants for large and mid-sized cultural organizations. These grants support tourism efforts by funding marketing and some program expenses associated with top-tier performances, exhibitions and events. Although bed taxes are not included in Amendment 3, there is concern that, if the amendment passes, this funding could be at risk in the future.

Using data from its 63 grantees in 2025-2026, the Cultural Council found that 23 organizations received nearly $1.8 million in local government funding outside the Council’s grant programs. This support came from county departments, municipalities and special districts such as DDAs, CRAs, the Children’s Services Council and others. About 68% of the funding went to larger cultural organizations, such as The Society of the Four Arts, Arts Garage, the Henry Morrison Flagler Museum, Boca Raton Museum of Art and others. These figures do not include additional support from county and city partners such as free or reduced-cost rental space, free parking, beach access, maintenance and other in-kind services.