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 1052
INTRODUCER: Senator Berman
SUBJECT: Exemptions for Totally and Permanently Disabled Veterans
DATE: March 27, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. FT
3. AP
I. Summary:
SB 1052 provides that a totally and permanently disabled veteran or their surviving spouse who
acquires property between January 1 and November 1 may receive a prorated refund of taxes
paid in the year of acquisition if he or she applies for and receives an ad valorem tax exemption
for totally and permanently disabled veterans in the subsequent tax year. The veteran must have
qualified as having had a service-connected total and permanent disability as of January 1 of the
year of acquisition.
Current law provides such a refund only when the property owner actually received such
exemption for a different homestead property in the year of acquisition.
The Revenue Estimating Conference has estimated the bill will reduce local government revenue
by $200,000 beginning in Fiscal Year 2024-2025.
The bill first applies to the 2024 tax roll, and takes effect July 1, 2023.
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
REVISED: BILL: SB 1052 Page 2
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
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
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.
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). BILL: SB 1052 Page 3
$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
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
III. Effect of Proposed Changes:
The bill amends s. 196.081, F.S., to provide that a totally and permanently disabled veteran or
their surviving spouse who acquire property between January 1 and November 1 may receive a
prorated refund of taxes paid in the year of acquisition if he or she applies for and receives an ad
valorem tax exemption for totally and permanently disabled veterans in the subsequent tax year.
The property owner must have qualified as having had a service-connected total and permanent
disability as of January 1 of the year of acquisition.
15
Id.
16
Section 196.011(1)(a), F.S.
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. BILL: SB 1052 Page 4
Current law provides such a refund only when the property owner actually received such
exemption for a different homestead property in the year of acquisition.
The bill first applies to the 2024 tax roll, and takes effect July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, Section 18(b) of the Florida Constitution provides that, except upon the
approval of each house of the Legislature by a two-thirds vote of the membership, the
Legislature may not enact, amend, or repeal any general law if the anticipated effect of
doing so would be to reduce the authority that municipalities or counties have to raise
revenue in the aggregate, as such authority existed on February 1, 1989. However, the
mandate requirement does not apply to laws having an insignificant impact,
21
which for
Fiscal Year 2022-2023 is forecast at approximately $2.3 million.
22
As the Revenue
Estimating Conference has estimated the bill will reduce local government revenue by
$200,000 beginning in Fiscal Year 2024-2025, the mandates provision likely does not
apply.
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.
21
FLA. CONST. art. VII, s. 18(d).
22
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. 15, 2023). BILL: SB 1052 Page 5
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has estimated the bill will reduce local government
revenue by $200,000 beginning in Fiscal Year 2024-2025.
23
B. Private Sector Impact:
The bill may positively impact property owners who take advantage of the granted
refund.
C. Government Sector Impact:
The bill may negatively impact local governments who furnish the refund to newly
eligible property owners.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 196.081 of the 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.
23
Office of Economic and Demographic Research, Revenue Estimating Conference Impact Results: SB 1052/HB 1001, 322-
23, (Mar. 24, 2023), available at: http://edr.state.fl.us/content/conferences/revenueimpact/archives/2023/_pdf/impact0324.pdf
(last visited Mar. 25, 2023).