The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Community Affairs
BILL: SB 184
INTRODUCER: Senators Polsky and Pizzo
SUBJECT: Homestead Exemption for First Responders
DATE: March 14, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. FT
3. AP
I. Summary:
SB 184 expands both the ad valorem tax exemption for surviving spouses of first responders who
died in the line of duty and the ad valorem tax exemption for first responders rendered totally
and permanently disabled in the line of duty to include federal law enforcement officers. The bill
does not otherwise substantively amend the requirements to receive those tax exemptions.
The Revenue Estimating Conference has determined the bill will reduce local government ad
valorem receipts by an insignificant amount, less than $100,000 total.
The bill takes effect January 1, 2024, and will first apply to the 2024 ad valorem tax roll.
II. Present Situation:
General Overview of Property Taxation
The ad valorem tax or “property tax” is an annual tax levied by counties, municipalities, school
districts, and some special districts. The tax is based on the taxable value of a property as of
January 1 of each year.
1
The property appraiser annually determines the “just value”
2
of property
within the taxing authority and then applies relevant exclusions, assessment limitations, and
exemptions to determine the property’s “taxable value.”
3
Property tax bills are mailed in
1
Both real property and tangible personal property are subject to tax. Section 192.001(12), F.S., defines “real property” as
land, buildings, fixtures, and all other improvements to land. Section 192.001(11)(d), F.S., defines “tangible personal
property” as all goods, chattels, and other articles of value capable of manual possession and whose chief value is intrinsic to
the article itself.
2
Property must be valued at “just value” for purposes of property taxation, unless the Florida Constitution provides otherwise
(FLA. CONST. Art VII, s. 4.). Just value has been interpreted by the courts to mean the fair market value that a willing buyer
would pay a willing seller for the property in an arm’s-length transaction. See Walter v. Shuler, 176 So. 2d 81 (Fla. 1965).
3
See ss. 192.001(2) and (16), F.S.
REVISED: BILL: SB 184 Page 2
November of each year based on the previous January 1 valuation.
4
If a taxpayer furnishes the
outstanding taxes within 30 days after the tax collector mailed the tax notice, the taxpayer will
receive a 4 percent discount on the total amount of taxes due.
5
The full amount of taxes is due by
March 31 of the following year.
6
The Florida Constitution prohibits the state from levying ad valorem taxes,
7
and it limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
authorized.
8
The Florida Constitution prohibits the state from levying ad valorem taxes
9
and limits the
Legislature’s authority to provide for property valuations at less than just value unless expressly
authorized.
10
Homestead Exemptions
The Florida Constitution establishes homestead protections for certain residential real estate in
the state in three distinct ways. First, it provides homesteads, property owned and maintained as
a person’s primary residence, with an exemption from taxes.
11
Second, the homestead provisions
protect the homestead from forced sale by creditors.
12
Third, the homestead provisions delineate
the restrictions a homestead owner faces when attempting to alienate or devise the homestead
property.
13
Every person having a legal or equitable title to real estate and who maintains a permanent
residence on the real estate is deemed to establish homestead property. Homestead property is
eligible for a $25,000 tax exemption applicable to all ad valorem tax levies, including levies by
school districts.
14
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.
15
Annual Application
Each person or organization meeting the criteria for an ad valorem tax exemption may claim the
exemption if the claimant held legal title to the real or personal property subject to the exemption
on January 1.
16
The application for exemption must be filed with the property appraiser on or
4
See Florida Department of Revenue, Florida Property Tax Calendar, avaialable at:
https://floridarevenue.com/property/Documents/taxcalendar.pdf (last visited Mar 9, 2023).
5
See Florida Department of Revenue, Tax Collector Calendar - Property Tax Oversight, available at:
https://floridarevenue.com/property/Documents/tccalendar.pdf (last visited Mar 9, 2023).
6
Id.
7
FLA. CONST. art. VII, s. 1(a).
8
See FLA. CONST. art. VII, s. 4.
9
FLA. CONST. art. VII, s. 1(a).
10
See FLA. CONST. art. VII, s. 4.
11
FLA. CONST. art. VII, s. 6.
12
FLA. CONST. art. VII, s. 4.
13
Id. at (c).
14
FLA. CONST. art VII, s. 6(a).
15
Id.
16
Section 196.011(1)(a), F.S. BILL: SB 184 Page 3
before March 1, and failure to make an application constitutes a waiver of the exemption for that
year. The application must list and describe the property for which the exemption is being
claimed and certify the ownership and use of the property. The claimant must reapply for the
exemption on an annual basis unless the property appraiser (subject to approval by a vote of the
governing body of the county) has waived the annual application requirement for a property after
an initial application is made and the exemption granted.
17
Exemption for Totally and Permanently Disabled First Responders
The homestead property of a first responder who has a total and permanent disability as a result
of an injury or injuries sustained in the line of duty while serving as a first responder or during an
operation in another state or country authorized by this state is exempt from taxation.
18
To be eligible for this exemption, the first responder must be a permanent resident of Florida on
January 1 of the year in which the exemption is sought, and must present documentation showing
disability and causation to the property appraiser.
19
This exemption may carry over to the benefit of the first responder’s surviving spouse so long as
the surviving spouse holds title to the homestead property, permanently resides thereon, and does
not remarry.
20
The amount exempted may be carried forward to a new homestead if the property
is sold.
21
“First responder” is defined as a law enforcement or correctional officer as defined in s. 943.10,
F.S.; a firefighter as defined in s. 633.102, F.S.; or an emergency medical technician or
paramedic as defined in s. 401.23, F.S.
22
Exemption for Surviving Spouses of First Responders
The homestead property of the surviving spouse of a first responder who died in the line of duty
while employed by the state or any political subdivision thereof is exempt from taxation.
23
To be eligible for this exemption, the first responder and their spouse must have been permanent
residents of Florida on January 1 of the year in which the first responder died, and a letter must
have been issued by the proper employing authority legally recognizing and certifying that the
first responder died in the line of duty.
24
17
Section 196.011(5) and (9)(a), F.S.
18
Section 196.102 (2), F.S.
19
Id.; Section 196.102(5), F.S.
20
Section 196.102(8), F.S.
21
Id.
22
Section 196.102(1)(c), F.S., referring to Section 196.081(6)(c)1., F.S.
23
Section 196.081(6), F.S.
24
Id. BILL: SB 184 Page 4
This exemption continues so long as the surviving spouse holds title to the homestead property,
permanently resides thereon, and does not remarry.
25
The amount exempted may be carried
forward to a new homestead if the property is sold.
26
“First responder” is defined as a law enforcement or correctional officer as defined in s. 943.10,
F.S.; a firefighter as defined in s. 633.102, F.S.; or an emergency medical technician or
paramedic as defined in s. 401.23, F.S.
27
III. Effect of Proposed Changes:
The bill amends s. 196.081, F.S., to revise the definition of “first responder” to include federal
law enforcement officers as defined in s. 901.1505(1), F.S.
28
This revision expands both the ad
valorem tax exemption for surviving spouses of first responders who died in the line of duty and
the ad valorem tax exemption for first responders rendered totally and permanently disabled in
the line of duty to include federal law enforcement officers. The bill does not otherwise
substantively amend the requirements to receive those tax exemptions.
The bill provides that the amendments made therein first apply to the 2024 ad valorem tax roll.
The bill takes effect January 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
The county and municipality mandate provisions of Article VII, section 18 of the Florida
Constitution may apply because the bill requires local governments to expend funds to
produce a business impact statement for each ordinance prior to consideration for
adoption. Article VII, section 18 (a) of the Florida Constitution provides in part that a
county or municipality may not be bound by a general law requiring a county or
municipality to spend funds or take an action that requires the expenditure of funds unless
certain specified exemptions or exceptions are met. None of the constitutional exceptions
appear to apply.
Article VII, section 18(d) provides eight exemptions, which, if any single one is met,
exempts the law from the limitations on mandates. Laws having an “insignificant fiscal
impact” are exempt from the mandate requirements, which for Fiscal Year 2022-2023 is
25
Section 196.081(6)(b), F.S.
26
Id.
27
Section 196.081(6)(c)1., F.S.
28
Section 901.1505(1), F.S, provides that the term “federal law enforcement officer” means “a person who is employed by
the Federal Government as a full-time law enforcement officer as defined by the applicable provisions of the United States
Code, who is empowered to effect an arrest for violations of the United States Code, who is authorized to carry firearms in
the performance of her or his duties, and who has received law enforcement training equivalent to that prescribed in s.
943.13.” BILL: SB 184 Page 5
forecast at approximately $2.3 million.
29,30
The Revenue Estimating Conference
estimated that the impact would be insignificant, or less than $100,000.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has determined the bill will reduce local
government ad valorem receipts by an insignificant amount, less than $100,000 total.
31
B. Private Sector Impact:
The bill may positively impact surviving spouses of first responders employed by the
federal government who take advantage of the granted homestead exemption.
C. Government Sector Impact:
The bill may negatively impact local governments who furnish the homestead exemption
to newly eligible property owners.
VI. Technical Deficiencies:
None.
29
FLA. CONST. art. VII, s. 18(d).
30
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
times $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact, (Sept.
2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last visited
Mar. 10, 2023).
31
Office of Economic and Demographic Research, Revenue Estimating Conference Impact Results: HB 101 / SB 184, 8-9
(Feb. 24, 2023), available at: http://edr.state.fl.us/content/conferences/revenueimpact/archives/2023/_pdf/impact0224.pdf
(last visited Mar. 10, 2023). BILL: SB 184 Page 6
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 196.081, Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.