This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0161.WMC
DATE: 2/13/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 161 Homestead Exemptions for Persons Age 65 and Older
SPONSOR(S): Borrero and others
TIED BILLS: HJR 159 IDEN./SIM. BILLS: SB 124
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee McCain Aldridge
2) Local Administration, Federal Affairs & Special
Districts Subcommittee
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.
Article VII, section 6(d), of the Florida Constitution authorizes the Legislature to allow counties and
municipalities to grant an additional homestead exemption to certain persons aged 65 or older who have lived
in their home for 25 years and have a household income that does not exceed a specified amount. The
Legislature has implemented that specific provision through s. 196.075(2)(b), F.S., which allows counties and
municipalities to fully exempt the homestead of long-term, low-income seniors for property with a just value
less than $250,000 in the year the owner first applies for the exemption.
The bill implements the amendment to art. VII, s. 6 of the Florida Constitution, proposed by HJR 159, which
increases the allowable just value of a home from $250,000 to $300,000 in the year the owner applies for the
exemption. The bill amends s. 196.075, Florida Statutes, to increase the just value limitation for the existing
exemption from $250,000 to $300,000 to align with the constitutional amendment.
The Revenue Estimating Conference adopted an impact of zero/negative indeterminate for the bill due to the
requirement for a statewide referendum on the constitutional amendment. If the constitutional amendment
does not pass, the impact of this bill is zero. If approved by the voters, the Conference assumed there would
be no change in the jurisdictions offering the exemption and that this bill would have a recurring negative
impact on local government revenues of $5.7 million per year.
This bill takes effect on the same day that the constitutional amendment proposed by HJR 159, or a similar
joint resolution, takes effect if approved by the voters, which is January 1, 2025.
STORAGE NAME: h0161.WMC PAGE: 2
DATE: 2/13/2023
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 2023, the income threshold for this exemption is $35,167.
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
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 2023), available at
http://floridarevenue.com/property/Documents/AdditionalHomesteadExemptions.pdf (last visited Jan. 27, 2023).
9
Art. VII, s. 6(d), Fla. Const.
10
S. 196.075(8), F.S. STORAGE NAME: h0161.WMC PAGE: 3
DATE: 2/13/2023
Under this section of the Constitution, a county or municipality may grant either (or both) of following
exemptions:
An additional homestead exemption of up to $50,000 for all low-income seniors;
11
or
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.
The Legislature has previously implemented this provision of the Constitution through s. 196.075, F.S.,
which authorizes counties and municipalities to grant these low-income senior exemptions consistent
with the Constitution. That section specifies ordinance requirements for local governments and
provides for an annual increase in the income limitation, among other administrative provisions.
Effect of Proposed Changes
The bill implements the proposed constitutional amendment in HJR 159, which revises the just value
limitation for the existing long-term, low-income senior resident exemption from $250,000 to $300,000.
The bill amends s. 196.075, Florida Statutes, to conform with the constitutional change by increasing
the just value limitation for the existing additional homestead exemption for long-term, low-income
seniors. The just value limit of the property in the first year the owner is eligible for and applies for the
exemption is increased from $250,000 to $300,000 in s. 196.075(2)(b), F.S.
The bill shall take effect January 1, 2025 if HJR 159, or a similar joint resolution having substantially the
same specific intent and purpose, is approved by the voters.
B. SECTION DIRECTORY:
Section 1: Amends s.196.075, F.S., increasing the property value limit for the long-term, low-
income senior exemption.
Section 2: Provides that the bill shall take effect on the effective date of the amendment to the
Florida Constitution proposed by HJR 159, or a similar joint resolution having
substantially the same specific intent and purpose, if such amendment is approved at
the next general election or at an earlier special election specifically authorized by law
for that purpose.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
11
Art. VII, s. 6(d)(1), Fla. Const.
12
Art. VII, s. 6(d)(2), Fla. Const.
13
S. 196.075(4)(b), F.S. STORAGE NAME: h0161.WMC PAGE: 4
DATE: 2/13/2023
1. Revenues:
The Revenue Estimating Conference (REC) determined that the revenue impact of the bill on local
governments is zero/negative indeterminate because the bill is contingent upon passage of the
constitutional amendment proposed by HJR 159. If the constitutional amendment does not pass,
the impact of the bill is zero. If the constitutional amendment is approved by the voters and all local
governments currently granting the exemption continue to grant the increased exemption, the REC
estimated that the bill would have a recurring negative impact on local government non-school
revenues of $5.7 million per year.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
If HJR 159 is approved by at least 60 percent of voters, and this bill therefore goes into effect, more
low-income, long-term resident seniors may realize lower property taxes than would otherwise occur.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not require counties or municipalities to spend funds or take action
requiring the expenditures of funds; reduce the authority that counties or municipalities have to raise
revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES