This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1001d.SAC
DATE: 4/7/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1001 Exemptions for Totally and Permanently Disabled Veterans
SPONSOR(S): Ways & Means Committee, Franklin and others
TIED BILLS: IDEN./SIM. BILLS: SB 1052
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee 21 Y, 0 N, As CS McCain Aldridge
2) Local Administration, Federal Affairs & Special
Districts Subcommittee
18 Y, 0 N Mwakyanjala Darden
3) State Affairs Committee Mwakyanjala Williamson
SUMMARY ANALYSIS
The Florida Constitution requires all property to be assessed at just value (i.e. market value) as of January 1 of
each year for purposes of ad valorem taxation. Property assessments are used to calculate ad valorem 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 exceptions 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 assessed
value between $50,000 and $75,000, which is exempt from all taxes other than school district taxes.
The homestead property of a veteran who was honorably discharged with a service-connected total and
permanent disability is exempt from taxation. To qualify for this exemption, the veteran must be a permanent
resident of the state on January 1 of the tax year for which the exemption is being claimed. The presentation of
a letter of total and permanent disability from the United States Government or United States Department of
Veterans Affairs by a veteran or his or her spouse to the property appraiser is prima facie evidence of
entitlement to the exemption.
Section 196.081, F.S., provides that a veteran who was honorably discharged with a service-connected total
and permanent disability may apply for this homestead property exemption in the current tax year for a
property acquired between January 1 and November 1 of the tax year if the veteran had received the
exemption on another property in the immediately preceding tax year. The veteran will receive the exemption
in the form of a refund, prorated from the date of property transfer, if the veteran applies for and receives the
exemption on the newly acquired property in the following tax year.
This bill removes the requirement that a totally and permanently disabled veteran must have had the
exemption on another property in the same year in order to qualify for the prorated refund of property taxes on
newly acquired property. This will allow certain totally and permanently disabled veterans who were not owners
of homestead property to receive the benefit of the exemption from property taxes from the date of property
acquisition in the form of a refund, instead of having to wait until the following January 1 to receive the
exemption. However, the veteran must have qualified as having a service-connected total and permanent
disability as of January 1 of the year the new property was acquired.
The Revenue Estimating Conference estimates the bill will have an annual recurring impact on local
government revenues of -$0.2 million beginning in Fiscal Year 2023-24.
This bill will take effect July 1, 2023 and will first apply to the 2024 tax roll.
STORAGE NAME: h1001d.SAC PAGE: 2
DATE: 4/7/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Ad Valorem Taxation
The Florida Constitution reserves to local governments the authority to levy ad valorem taxes on real
and tangible personal property.
1
Ad valorem taxes are levied annually by counties, cities, school
districts, and some special districts based on the value of real and tangible personal property as of
January 1 of each year.
2
The Florida Constitution requires that all property be assessed at just value for
ad valorem tax purposes,
3
and provides for specified assessment limitations, property classifications,
and exemptions.
4
After the property appraiser considers any assessment limitation or use classification
affecting the just value of a parcel of real property, an assessed value is produced. The assessed value
is then reduced by any exemptions to produce the taxable value.
5
Each property appraiser must complete an assessment of the value of all property within the
appraiser’s jurisdiction and certify to the taxing authorities the taxable value of such property no later
than July 1 of each year, unless extended for good cause by the Department of Revenue (DOR).
6
The
taxable value of a parcel includes both the value of structures and other improvements on the parcel
and the value of the land on which those structures and improvements sit.
7
The property appraiser also
ensures that all real property is listed on the real property assessment roll.
8
Each taxing authority uses the taxable value provided by the property appraiser to prepare a proposed
millage rate that is levied on each parcel’s taxable value.
9
Each taxing authority must compute
proposed or final millage rates based on utilizing at least 95 percent of the taxable value of the property
within the boundaries of the taxing authority. Each taxing authority must prepare and submit its
tentative budget in accordance with applicable law.
10
Homestead Exemption
Every person having legal and equitable title to real estate and 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.
11
An additional $25,000 exemption applies to
homestead property value between $50,000 and $75,000. This exemption does not apply to ad
valorem taxes levied by school districts.
1
Art. VII, ss. 1(a), 9(a), Fla. Const.
2
S. 192.001(12), F.S., defines “real property” as land, buildings, fixtures, and all other improvements to land. The terms “land,” “real
estate,” “realty,” and “real property” may be used interchangeably. S. 192.001(11)(d), F.S., defines “tangible personal property” as all
goods, chattels, and other articles of value (but does not include the vehicular items enumerated in Art. VII, s. 1(b) of the Florida
Constitution and elsewhere defined) capable of manual possession and whose chief value is intrinsic to the article itself.
3
Art. VII, s. 4, Fla. Const.
4
Art. VII, ss. 3, 4, and 6, Fla. Const.
5
S. 196.031, F.S.
6
S. 193.023(1), F.S.
7
See The Appraisal Process and Your Taxes, Hillsborough County Property Appraiser, available at http://www.hcpafl.org/Property-
Info/The-Appraisal-Process-Your-Taxes (last visited Jan. 24, 2020) (process for calculating property tax values).
8
S. 193.085(1), F.S.
9
S. 200.065(2)(a)1., F.S.
10
See s. 200.065(2)(a)2.-4., F.S. (requiring county commissions to prepare and submit budgets in accordance with s. 129.03, F.S.,
requiring school districts to prepare and submit budgets in accordance with Ch. 1011, F.S., and requiring other taxing authorities to
prepare and consider budgets in accordance with s. 200.065 and other provisions of law).
11
Art. VII, s. 6(a), Fla. Const. STORAGE NAME: h1001d.SAC PAGE: 3
DATE: 4/7/2023
Exemption for Permanently and Totally Disabled Veterans
The homestead property of a veteran who was honorably discharged with a service-connected total
and permanent disability is exempt from taxation.
12
To qualify for this exemption, the veteran must be a
permanent resident of the state on January 1 of the tax year for which exemption is being claimed or
must have been a permanent resident of this state on January 1 of the year the veteran died. If the
veteran predeceases his or her spouse, the spouse may continue to receive the exemption as long as
the property remains the homestead property of the spouse and the spouse is unmarried.
13
The presentation of a letter of total and permanent disability from the United States Government or
United States Department of Veterans Affairs by a veteran or his or her spouse to the property
appraiser is prima facie evidence of entitlement to the exemption.
14
A veteran may apply for the
exemption before receiving documentation from the United States Government or the United States
Department of Veterans Affairs.
15
When the property appraiser receives the documentation, the
exemption is granted as of the date of the original application, with excess taxes paid refunded (subject
to the four-year period of limitation under s. 197.182(1)(e), F.S.).
Section 196.081, F.S., provides that a veteran who was honorably discharged with a service-connected
total and permanent disability may apply for this homestead property exemption in the current tax year
for a property acquired between January 1 and November 1 of the tax year if the veteran had received
the exemption on another property in the immediately preceding tax year.
16
The veteran will receive the
exemption in the form of a refund, prorated from the date of property transfer, if the veteran applies for
and receives the exemption on the newly acquired property in the following tax year.
17
If the totally and permanently disabled veteran predeceases his or her spouse, the tax exemption will
carry over to the surviving spouse if the surviving spouse has legal or beneficial title to the property and
uses it as a homestead, and does not remarry.
18
If the surviving spouse sells the property, the
exemption amount for the sold property from the most recent tax roll may be transferred to the new
property so long as the new property is used as a homestead by the surviving spouse and the spouse
does not remarry.
19
Effect of Proposed Changes
This bill removes the requirement that a totally and permanently disabled veteran must have had the
exemption on another property in the same year in order to qualify for the prorated refund of property
taxes on newly acquired property. This will allow certain totally and permanently disabled veterans who
were not owners of homestead property to receive the benefit of the exemption from property taxes
from the date of property acquisition in the form of a refund, instead of having to wait until the following
January 1 to receive the exemption. However, the veteran must have qualified as having a service-
connected total and permanent disability as of January 1 of the year the new property was acquired.
This bill will take effect July 1, 2023 and will first apply to the 2024 tax roll.
B. SECTION DIRECTORY:
Section 1: Amends s. 196.081, F.S., allowing qualifying totally and permanently disabled veterans
who were not owners of homestead property to receive the benefit of the exemption from
12
S. 196.081(1), F.S.
13
S. 196.081(3), F.S.
14
S. 196.081(2), F.S.
15
S. 196.081(5), F.S.
16
S. 196.081(1)(b), F.S.
17
S. 196.081(1)(b), F.S.
18
S. 196.081(3), F.S.
19
S. 196.081(3), F.S. STORAGE NAME: h1001d.SAC PAGE: 4
DATE: 4/7/2023
property taxes from the date of property acquisition in the form of a refund in specified
circumstances.
Section 2: Specifies that this act will first apply to the 2024 tax roll.
Section 3: Provides an effective date of July 1, 2023.
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 estimates the bill will have an annual recurring impact on local
government revenues of -$0.2 million beginning in Fiscal Year 2023-24.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Certain qualifying totally and permanently disabled veterans who were not owners of homestead
property may receive the benefit of an exemption from property taxes not allowed under current law.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
because this bill allows certain qualifying totally and permanently disabled veterans who were not
owners of homestead property to receive the benefit of an exemption from property taxes not
allowed under current law; however, an exemption may apply if the bill has an insignificant fiscal
impact.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
STORAGE NAME: h1001d.SAC PAGE: 5
DATE: 4/7/2023
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On March 20, 2023, the Ways & Means Committee adopted an amendment that made clarifying changes
to the bill to more precisely accomplish the purpose of the bill.
The analysis is drafted to the committee substitute as approved by the Ways & Means Committee.