Florida's HJR 1-F Lawsuit and the 2026 Residency Cutoff: What Luxury Buyers Must Do Now

On June 11, 2026, a lawsuit filed in Leon County's Second Judicial Circuit put Florida's biggest property tax overhaul in decades into legal limbo — four and a half months before voters were set to decide it. If you're an out-of-state buyer looking at downsizing or rightsizing a luxury home in Winter Park, Windermere, or along the Butler Chain, you now have two clocks running at once: a December 31, 2026 residency cutoff written into the amendment, and a court case that could rewrite or remove the ballot measure entirely. For a complete market overview, see my comprehensive Dr. Phillips snowbird home buyer guide.

I'm Yousef Zeidan, a luxury right-sizing, downsizing, and tax-sensitive relocation specialist with RE/MAX Prime Properties (License #SL3520428) serving Dr. Phillips, Windermere, and the Butler Chain of Lakes. If you're currently asking yourself is it time to downsize your luxury home, this page is my working brief for relocation clients: what HJR 1-F actually does, what the lawsuit changes, and how to make a seven-figure purchase decision that doesn't hinge on a court ruling. This is general information, not legal or tax advice — confirm your specific situation with a Florida tax attorney or CPA.

What Is HJR 1-F, and Why Is It Being Challenged in Court?

HJR 1-F is a proposed Florida constitutional amendment that would raise the non-school homestead exemption from $50,000 to $150,000 on January 1, 2027, and to $250,000 on January 1, 2028, if at least 60% of voters approve it in November 2026. On June 11, 2026, Weston City Attorney Jamie Cole filed suit in Leon County arguing the ballot title — "SAVE OUR HOMES FROM EXCESSIVE PROPERTY TAXES" — and its summary are unconstitutionally misleading, and asking the court to force a rewrite or strike the measure from the ballot.

The amendment does more than expand the exemption. It also cuts the annual assessment-increase cap on non-homestead property (rentals, second homes, commercial buildings) from 10% to 5%, restricts local property tax spending to "core services," and — critically for relocating buyers looking at downsizing opportunities — imposes a five-year waiting period before new Florida residents can claim the expanded exemption.

The lawsuit, filed on behalf of former Stuart Mayor Thomas F. Campenni, former Key Biscayne Mayor Michael Davey, and the group "Save Our Voters From Misleading Ballot Language," argues the summary reads like a campaign slogan and omits material facts, including the phase-in schedule and projected local revenue losses of up to $8.4 billion annually. Cole has done this before: in 2007 he successfully challenged a similar property tax amendment, and the court struck it from the ballot. That precedent is why this filing deserves more attention than a routine procedural challenge. For the policy mechanics, see my plain-English breakdown of HJR 1-F and my updated weekly lawsuit tracker.

The December 31, 2026 Residency Cutoff: What's Actually at Stake for Luxury Downsizing

Anyone who establishes Florida residency after December 31, 2026, would wait five years before qualifying for the expanded exemption, staying capped at the standard $50,000 during that period. New residents still receive the $50,000 exemption, the 3% Save Our Homes assessment cap, and Florida's lack of state income tax immediately — only the new super-exemption is delayed.

In my experience helping empty nesters navigate downsizing and rightsizing transitions in Dr. Phillips, Windermere, and the Butler Chain of Lakes, the cumulative penalty for missing the cutoff typically pencils out to roughly $5,000–$8,000 over the five-year wait, depending on local non-school millage. For part-time residents, navigating this timeline alongside local HOA rules for seasonal residents in Orlando is vital. That's real money — but on a $3M Windermere lakefront purchase, it's a rounding error compared to overpaying in a rushed negotiation, which is the mistake I see most often.

Establishing domicile is not the same as closing on a house. Before December 31, 2026, you would need to physically occupy the home and assemble the paper trail: a Florida driver's license, vehicle registration, voter registration, and a formal Declaration of Domicile filed with the Orange County Clerk of Court. Bureaucratic processing alone can eat 30–60 days, so a buyer closing in November is already cutting it close. I keep a step-by-step Florida domicile checklist updated for clients working against this deadline.

The School Tax Carve-Out Most Downsizing Coverage Ignores

HJR 1-F's expanded exemptions apply only to non-school levies; school district taxes will still be calculated using the existing $25,000 school exemption. Because school millage is a substantial share of a typical Orange County tax bill, the real-world savings are meaningfully smaller than the "$250,000 exemption" headlines imply.

This is the single most common miscalculation I see in buyer spreadsheets. A client comparing a Park Avenue-area Winter Park home against a Keene's Pointe property will often apply the full exemption against the entire millage rate. Run the numbers correctly — exemption against non-school millage only — and the projected savings shrink considerably. My interactive HJR 1-F savings calculator separates school and non-school privileges so you can see your actual number, not the headline one.

The Assessment Reset Downsized Buyers Rarely Budget For

When a Florida home changes ownership, its assessed value resets to full market value on January 1 following the closing — erasing the seller's accumulated Save Our Homes savings. Buyers who underwrite carrying costs from the seller's current tax bill routinely understate their own year-one taxes, sometimes dramatically.

A long-tenured seller on the Butler Chain may be paying taxes on an assessed value far below what you're about to pay for the house. The Orange County Property Appraiser will reassess at your purchase price, and your bill is built from there. Two mitigants matter: the 3% Save Our Homes cap begins protecting you after your first homestead year, and if you're moving within Florida, portability lets you transfer up to $500,000 of accrued Save Our Homes benefit to the new home. Out-of-state buyers get neither head start — which is exactly why I model the reset for every client before we write an offer. When factoring this reset into the true annual cost of staying in a large Orlando home, the financial variance can be eye-opening. See my clean assessment reset explainer for worked examples.

Should You Accelerate a 2026 Downsizing or Rightsizing Purchase? A Decision Framework

Accelerating makes sense if you were already planning to relocate within the next 12–18 months and the five-year exemption penalty exceeds the cost of buying under time pressure. It does not make sense to compress due diligence on a seven-figure home to chase tax savings measured in the low five figures.

• Already house-hunting in Orlando? Pull the timeline forward and prioritize the domicile paperwork. The cutoff is a deadline, not a reason to change which house you buy. If you need to liquidate an out-of-market property first, it helps to understand how long it takes to sell a luxury home in Orlando to properly calibrate your dates.
• On the fence about Florida? The immediate benefits — no state income tax, the $50,000 exemption, the 3% cap — don't depend on the cutoff at all. Decide on lifestyle and fundamentals first.
• Buying purely for the exemption? Don't. The lawsuit could remove the measure from the ballot, and even if it passes, the school carve-out and assessment reset shrink the prize. A sound purchase should survive every legal outcome.
• Selling a current Florida homestead? Portability may matter more to you than HJR 1-F does — review my Save Our Homes portability guide before listing, especially if you are evaluating whether you should downsize your Dr. Phillips home.

What Happens If the Court Strikes the Measure?

Under Florida law, the court can direct Attorney General James Uthmeier to redraft the ballot summary within 10 days, or remove the measure from the November 2026 ballot entirely. If HJR 1-F never reaches voters or fails to hit 60%, current law stands — the $50,000 exemption, the 10% non-homestead cap — and the December 31 cutoff becomes moot.

The 2007 precedent shows removal is a live possibility, not a long shot: Chief Judge Charles Francis struck that year's "Super Exemption" amendment after finding its summary misleading. Local governments are also watching closely — a Florida House staff analysis projects revenue losses of $4.6 billion in 2027 rising to $8.4 billion annually, and bond rating agencies have flagged potential downgrades. Those second-order effects (millage adjustments, fee increases, service changes) are part of any honest carrying-cost model, which is why my calculator includes a local millage-offset variable rather than assuming rates stay frozen.

How I'm Advising Winter Park and Windermere Clients Right Now

My current guidance: buy on fundamentals, paper your domicile early if relocation is already planned, and model taxes using the school carve-out and the assessment reset — never the seller's bill or the headline exemption. The lawsuit changes the urgency narrative, not the underlying math of a well-chosen home.

To begin exploring your options, review my compiled briefs on the top 5 Orlando luxury communities, or browse current curated listings channels across Winter Park and Windermere. Nothing here is legal or tax advice; for domicile and exemption questions specific to your situation, consult a Florida-licensed attorney or CPA.