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 762
INTRODUCER: Senator Wright
SUBJECT: Property Tax Exemption for Surviving Spouses of Veterans
DATE: March 14, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. FT
3. AP
I. Summary:
SB 762 clarifies that if a veteran predeceases the issuance of a letter of total and permanent
disability from the United States Department of Veterans Affairs, the veteran’s surviving spouse
may produce the letter to the property appraiser to establish eligibility for the homestead
exemption for surviving spouses of permanently and totally disabled veterans. The bill does not
substantively alter the requirements or procedure for applying for or receiving such an
exemption.
The Revenue Estimating Conference has determined the bill will have no fiscal impact.
The bill takes effect January 1, 2024, and first applies to the 2024 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 762 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, available 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 762 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 Veterans with Total and Permanent Service-Connected Disability
The homestead property of a veteran who was honorably discharged with a service-connected
total and permanent disability is exempt from taxation.
18
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 their 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.
19
A totally and permanently disabled veteran, or his or her surviving spouse, who acquires legal or
beneficial title to property between January 1 and November 1, may receive a prorated refund of
the ad valorem taxes paid for the newly acquired property as of the date of the property transfer
provided they were eligible for and granted the exemption on another homestead property in the
previous tax year.
20
Application for This Exemption
The presentation of a letter of total and permanent disability from the United States Government
or United States Department of Veterans Affairs (USDVA) or its predecessor by a veteran or
their spouse to the property appraiser is prima facie evidence of entitlement to the exemption.
21
A veteran may apply for the exemption before receiving documentation from the USDVA.
22
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 years of limitation
under s. 197.182(1)(e), F.S.).
A letter of total and permanent disability is a document requested by a veteran from the USDVA.
A veteran must file an application for disability benefits alongside supporting medical
documentation of disability.
23
A surviving spouse may apply independently to the Department of
Veterans Affairs for certain benefits, but a letter of total and permanent disability requires
application by the veteran. In the event that a veteran applies for a letter and predeceases either
17
Section 196.011(5) and (9)(a), F.S.
18
Section 196.081(1), F.S.
19
Section 196.081(3), F.S.
20
Section 196.081(1)(b), F.S.
21
Section 196.081(2), F.S.
22
Section 196.081(5), F.S.
23
United States Department of Veterans Affairs, How to File A VA Disability Claim, available at
https://www.va.gov/disability/how-to-file-claim/ (last visited Mar. 11, 2023). BILL: SB 762 Page 4
its issuance or presentation, however, a surviving spouse may present the letter to the property
appraiser to establish eligibility for the homestead exemptions discussed.
24
III. Effect of Proposed Changes:
The bill amends s. 196.081(2), F.S., to clarify that if a veteran predeceases the issuance of a letter
of total and permanent disability from USDVA, the veteran’s surviving spouse may produce the
letter to the property appraiser to establish eligibility for the homestead exemption for surviving
spouses of permanently and totally disabled veterans. The bill does not substantively alter the
requirements or procedure for applying for or receiving such an exemption.
The bill takes effect January 1, 2024, and first applies to the 2024 tax roll.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
As the Revenue Estimating Conference estimates no impact on local governments from
this bill, the county and municipality mandate provisions of Article VII, section 18 of the
Florida Constitution likely do not apply. Laws having an “insignificant fiscal impact” are
exempt from the mandate requirements, which for Fiscal Year 2022-2023 is forecast at
approximately $2.3 million.
25,26
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.
24
Section 196.081(2), F.S., provides that “production by a veteran or the spouse or surviving spouse of a letter of total and
permanent disability […] is prima facie evidence of the fact that the veteran or the surviving spouse is entitled to the
exemption.” (emphasis added).
25
FLA. CONST. art. VII, s. 18(d).
26
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). BILL: SB 762 Page 5
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has determined the bill will have no impact on local
government ad valorem receipts.
27
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
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.
27
Office of Economic and Demographic Research, Revenue Estimating Conference Impact Results: SB 762/HB747, 190-191,
(Mar. 3, 2023), available at: http://edr.state.fl.us/content/conferences/revenueimpact/archives/2023/_pdf/impact0303.pdf
(last visited Mar. 11, 2023).