This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0161e.SAC
DATE: 3/23/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 161 Homestead Exemptions for Persons Age 65 and Older
SPONSOR(S): Ways & Means Committee, Borrero, Garcia and others
TIED BILLS: HJR 159 IDEN./SIM. BILLS: CS/SB 124
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee 24 Y, 0 N, As CS McCain Aldridge
2) Local Administration, Federal Affairs & Special
Districts Subcommittee
16 Y, 0 N Mwakyanjala Darden
3) State Affairs Committee 18 Y, 0 N Mwakyanjala Williamson
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, s. 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, F.S., to increase the just value limitation for the existing exemption
from $250,000 to $300,000 to align with the constitutional amendment.
The bill provides that counties and municipalities with an ordinance authorizing the existing exemption that
wish to continue to offer the exemption with the new just value limitation must amend such ordinance or adopt
a new ordinance to comport with the increased just value limitation amount, and provides timing and
administrative provisions related to that process.
The bill specifies that persons receiving the exemption for the 2024 tax year will not need to reapply to
continue to receive the exemption for the 2025 tax year so long as all other conditions are met.
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.
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DATE: 3/23/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
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 Mar. 10, 2023).
9
Art. VII, s. 6(d), Fla. Const.
10
S. 196.075(8), F.S. STORAGE NAME: h0161e.SAC PAGE: 3
DATE: 3/23/2023
Under this section of the Constitution, a county or municipality may grant either (or both) of the
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 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 provides ordinance requirements for local governments and provides for an
annual increase in the income limitation, among other administrative provisions. Specifically, s.
196.075(6), F.S., provides that the board of county commissioners or governing body of the
municipality must deliver a copy of the ordinance to the property appraiser no later than December 1 of
the year prior to the year the exemption will take effect.
14
The board must also notify the property
appraiser if the exemption is repealed no later than December 1 of the year prior to the year in which
the exemption expires.
15
An applicant for the exemption must submit a sworn statement of household income to the property
appraiser by March 1.
16
This statement must be on a form prescribed by the Department of Revenue
and must be submitted the first time the taxpayer claims the exemption.
17
Effect of Proposed Changes
The bill implements the proposed constitutional amendment in HJR 159, increasing the just value
limitation for the existing additional homestead exemption for low-income, long-term resident 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 .
The bill provides that counties and municipalities with an ordinance authorizing the existing exemption
that wish to continue to offer the exemption with the new just value limitation must amend such
ordinance or adopt a new ordinance to comport with the increased just value limitation amount.
Counties and municipalities may prospectively amend or adopt an ordinance changing the just value
limitation, contingent upon voter approval of the amendment. Alternatively, an existing ordinance may
be updated by amending the ordinance or adopting a new ordinance after the election at any time
through December 31, 2024. An ordinance adopted after the election must be delivered to the property
appraiser by January 15, 2025. All ordinances under this provision will be effective January 1, 2025, if
voters approve the constitutional amendment proposed by HJR 159. Any prior ordinance not updated to
the new just value limitation by December 31, 2024, becomes null and void beginning January 1, 2025.
The bill also provides that persons who received the exemption for the 2024 tax year do not need to
reapply in order to receive the exemption for the 2025 tax year so long as all other conditions are met
and their county or municipality adopted or amended their ordinance to comport with the increased just
value limitation amount.
The section of the bill dealing with local ordinances and application requirements is effective July 1,
2023, and is repealed December 31, 2025.
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.
14
S. 196.075(6), F.S.
15
S. 196.075(6), F.S.
16
S. 196.075(4)(d), F.S.
17
S. 196.075(4)(d), F.S. STORAGE NAME: h0161e.SAC PAGE: 4
DATE: 3/23/2023
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 the process for a county or municipality to amend an existing local ordinance or
to adopt a new ordinance to incorporate the new just value limitation, and preserves
existing exemptions for residents receiving the exemption in 2024 in jurisdictions that
continue the exemption at the higher just value limitation for 2025 and thereafter. This
section of the bill is effective July 1, 2023, and is repealed December 31, 2025.
Section 3: Provides that, except as otherwise provided, the bill takes 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:
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.
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DATE: 3/23/2023
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
On February 14, 2023, the Ways & Means Committee adopted an amendment that specified actions
required by counties and municipalities that currently offer the low-income, long-term senior resident
exemption must take to continue offering such exemption if the constitutional amendment in HJR 159 is
approved by the voters. The amendment provided:
Local governments could
o prospectively amend or adopt an ordinance to update the just value limitation from
$250,000 to $300,000, contingent upon voter approval of the amendment; or
o amend, update, or repeal their ordinance after the election, at any time through
December 31, 2024. If a local government uses this option, the local government must
notify the property appraiser of the ordinance by January 15, 2025 (extended from the
standard December 1 requirement).
Either of these options would take effect January 1, 2025, and any ordinance not updated to
comply with the constitutional amendment by December 31, 2024 becomes null and void
January 1, 2025.
Any homeowner receiving the exemption in 2024 will continue to receive the exemption in 2025
without the need for an additional application if the relevant jurisdiction adopts or amends their
ordinance under this section and the homeowner otherwise qualifies for the exemption.
The analysis is drafted to the bill as amended by the Ways & Means Committee.