This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0973.LAV
DATE: 2/3/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HJR 973 Homestead Property Tax Assessment Limitations and Tax Exemptions for Certain
Low-income Elderly Persons
SPONSOR(S): Borrero
TIED BILLS: HB 975 IDEN./SIM. BILLS: SJR 1278
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration & Veterans Affairs
Subcommittee
Darden Miller
2) Ways & Means Committee
3) State Affairs Committee
SUMMARY ANALYSIS
The Florida Constitution requires all property to be assessed at just value (market value) as of January 1 of
each year for purposes of ad valorem taxation. Ad valorem assessments are used to calculate property taxes
that fund counties, municipalities, district school boards, and special districts. The taxable value against which
local governments levy tax rates each year reflects the just value as reduced by applicable limitations and
exemptions allowed by the Florida Constitution. One such exemption is on the first $25,000 of assessed value
of a homestead property, which is exempt from all taxes. A second homestead exemption is on the value
between $50,000 and $75,000, which is exempt from all taxes other than school district taxes.
The joint resolution:
Amends art. VII, s. 4 of the Florida Constitution to authorize the Legislature to prohibit increases in the
assessed value of homestead property owned by low-income seniors;
Revises the existing additional homestead exemption for low-income seniors to allow counties or
municipalities to choose between exempting $50,000 of the assessed value of the property or
exempting the entire assessed value of the property; and
Creates a new homestead exemption, for all levies other than school district levies, for the entire
assessed value of the property for low-income seniors who have maintained permanent resident on a
property for at least 20 years that has a just value of less than $300,000 in the first year the owner
applies for the exemption.
The joint resolution also requires the just value limitation be adjusted each year to account for the effect of
inflation. Additionally, the joint resolution adds a new section to art. XII of the Florida Constitution providing that
the amendments to art. VII, ss. 4 and 6, take effect January 1, 2023.
Each chamber of the Legislature must pass a joint resolution by a three-fifths vote in order for the proposal to
be placed on the ballot. The joint resolution provides for the proposed constitutional amendment to be
submitted to the electors of Florida for approval or rejection at the next general election or at an earlier special
election specifically authorized by law for that purpose.
The Revenue Estimating Conference estimated that the joint resolution will not have an impact on local
government revenue as the amendment it proposes is subject to voter approval and is not self-executing.
A joint resolution proposing an amendment to the State Constitution must be passed by three-fifths of
the membership of each house of the Legislature.
The Constitution requires 60 percent voter approval for passage of a proposed constitutional
amendment. STORAGE NAME: h0973.LAV PAGE: 2
DATE: 2/3/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Ad Valorem Taxation
The Florida Constitution reserves ad valorem taxation to local governments and prohibits the state from
levying ad valorem taxes on real and tangible personal property.
1
Ad valorem taxes are annual taxes
levied by counties, cities, school districts, and certain special districts. These taxes are based on the
just or fair market value of real and tangible personal property as determined by county property
appraisers on January 1 of each year.
2
The just value may be subject to limitations, such as the “save
our homes” limitation on homestead property assessment increases.
3
The value determined after
accounting for applicable limitations is known as the assessed value. Property appraisers then
calculate taxable value by reducing the assessed value in accordance with any applicable exemptions,
such as the exemptions for homestead property.
4
Each year, local governing boards levy millage rates
(i.e. tax rates) on taxable value to generate the property tax revenue contemplated in their annual
budgets.
Property Tax Assessment Limitations Exemptions Available to Seniors
Homestead Exemption
Every person having legal and equitable title to real estate who maintains a permanent residence on
the real estate (homestead property) is eligible for a $25,000 tax exemption applicable to all ad valorem
tax levies, including levies by school districts.
5
An additional $25,000 exemption applies to homestead
property value between $50,000 and $75,000. This additional exemption does not apply to ad valorem
taxes levied by school districts.
Additional Homestead Exemption for Low-Income Seniors
The Florida Constitution authorizes the Legislature to allow counties and municipalities, by general law,
to grant an additional homestead exemption to persons aged 65 or older with a household income that
does not exceed $20,000 (low-income seniors).
6
The income limitation is adjusted each year to reflect
changes in the consumer price index.
7
For 2022, the income threshold for this exemption is $32,561.
8
An owner must hold legal or equitable title to the property and maintain it as his or her permeant
residence to qualify for the exemption.
9
If title to the property is held jointly with a right of survivorship,
the exemption may be claimed if one of the owners is residing on the property and would otherwise
qualify.
10
Under this section of the Constitution, a county or municipality may grant either (or both) of
following exemptions:
An additional $50,000 of homestead exemption for all low-income seniors;
11
or
1
Art. VII, s. 1(a), Fla. Const.
2
Art. VII, s. 4, Fla. Const.
3
S. 193.155(1), F.S.
4
S. 196.031, F.S.
5
Art. VII, s. 6(a), Fla. Const.
6
Art. VII, s. 6(d), Fla. Const.
7
S. 196.075(3), F.S.
8
Fla. Dept. of Revenue, Two Additional Homestead Exemptions for Persons 65 and Older (Revised January 2022), available at
http://floridarevenue.com/property/Documents/AdditionalHomesteadExemptions.pdf (last visited Feb. 2, 2022).
9
Art. VII, s. 6(d), Fla. Const.
10
S. 196.075(8), F.S.
11
Art. VII, s. 6(d)(1), Fla. Const. STORAGE NAME: h0973.LAV PAGE: 3
DATE: 2/3/2022
The entire assessed value of the homestead property, if the just value is less than $250,000 in
the year the low-income senior owner applies for the exemption, and the owner has maintained
a permanent residence on the property for at least 25 years.
12
The exemption authorized under this section only applies to ad valorem taxes levied by the county or
municipality granting the exemption.
13
This includes taxes levied by dependent special districts or
municipal service taxing units of the government granting the exemption.
Save Our Homes Assessment Limitation and Portability
The Florida Constitution limits the amount of change in the assessed value of a homestead property as
of each January 1 to the lesser of three percent or the percentage change in the Consumer Price Index
(CPI).
14
This cap on the change in the assessed value is called the Save Our Homes (SOH)
assessment limitation and the accumulated difference between the assessed value and the just value
is the SOH benefit.
15
If there is a change in ownership
16
and a new homestead is established, the property must be
assessed at just value as of January 1 of the year following the change unless the new owner transfers
a SOH benefit from a previous homestead to the new homestead.
17
The ability to transfer the SOH
benefit is known as portability. A homestead property owner may transfer up to $500,000 of the SOH
benefit to the new homestead if the owner received a homestead exemption as of January 1 in any of
the immediately preceding three years.
18
Beginning January 1, 2017, an owner of homestead property
that was significantly damaged or destroyed as the result of a hurricane or tropical storm may elect to
abandon his or her homestead as of the date of the storm, even if a homestead exemption was
received in the following year, and transfer the SOH benefit to a new homestead within three years of
the storm.
19
Effect of Proposed Changes
The joint resolution proposes amending art. VII, s. 4 of the Florida Constitution to authorize the
Legislature to prohibit increases in the assessed value of homestead property owned by low-income
seniors.
The joint resolution revises the existing additional homestead exemption for low-income seniors to
allow counties or municipalities to choose between exempting $50,000 of the assessed value of the
property or exempting the entire assessed value of the property.
The joint resolution creates a new homestead exemption, for all levies other than school district levies,
for low-income seniors who have maintained permanent resident on a property for at least 20 years.
The exemption would apply to the entire assessed value of the property. The property must have a just
value of less than $300,000 in the first year the owner applies for the exemption, adjusted annually to
reflect the rate of inflation, as determined by general law. The joint resolution also states this exemption
applies to all low-income seniors who received the existing additional exemption for low-income seniors
with property with an assessed value of less than $250,000 in 2022, regardless of the just value of the
exempted property.
12
Art. VII, s. 6(d)(2), Fla. Const.
13
S. 196.075(4)(b), F.S.
14
Art. VII, s. 4(d)(1), Fla. Const. and s. 193.155, F.S.
15
See Fla. Dept. of Revenue, Save Our Homes Assessment Limitation and Portability Transfer Brochure,
http://floridarevenue.com/property/Documents/pt112.pdf (last visited Feb. 2, 2022).
16
A change of ownership is any sale, foreclosure, or transfer of legal title or beneficial title in equity to any person. See s. 193.155(3),
F.S.
17
Art. VII, s. 4(d)(3), Fla. Const.
18
Art. VII, s. 4(d)(8), Fla. Const.; s. 193.155(8), F.S. The three-year timeframe is calculated from the time the old homestead exemption
is abandoned and not the sale of the old homestead. See supra note 15.
19
S. 193.155(8)(m), F.S. STORAGE NAME: h0973.LAV PAGE: 4
DATE: 2/3/2022
Additionally, the joint resolution adds a new section to art. XII of the Florida Constitution providing that
the amendments to art. VII, ss. 4 and 6, take effect January 1, 2023.
The joint resolution must pass each chamber with a three-fifths vote before it may be placed on the
ballot. Thereafter, it must be approved by at least 60 percent of the electors voting on the measure.
B. SECTION DIRECTORY:
Not applicable.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
Art. XI, s. 5(d) of the Florida Constitution requires publication of a proposed amendment in a
newspaper of general circulation in each county. The Division of Elections within the Department of
State must advertise the full text of the amendment twice in a newspaper of general circulation in
each county where the amendment will appear on the ballot. The Division must also provide each
supervisor of elections with either booklets or posters displaying the full text of each proposed
amendment.
20
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The Revenue Estimating Conference estimated that the joint resolution will not have an impact on
local government revenue as the amendment it proposes is subject to voter approval and is not
self-executing.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The mandates provision applies only to general laws, not to a joint resolution
proposing to amend the state Constitution.
2. Other:
None.
20
S. 101.171, F.S. STORAGE NAME: h0973.LAV PAGE: 5
DATE: 2/3/2022
B. RULE-MAKING AUTHORITY:
The joint resolution neither authorizes nor requires administrative rulemaking by executive branch
agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES