This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1161.WMC
DATE: 1/31/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1161 Verification of Eligibility for Homestead Exemption
SPONSOR(S): Ways & Means Committee, Arrington and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 172
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee 23 Y, 0 N, As CS Berg Aldridge
SUMMARY ANALYSIS
Sections 196.081, 196.082, and 196.091, F.S., provide property tax benefits for homestead properties of
certain veterans and surviving spouses. These benefits require application to the property appraise and
documentation that supports the eligibility of the applicant to receive the benefit. The application and approval
process takes place after a property is purchased.
The bill requires the Department of Revenue to provide a form that a county property appraiser may use to
tentatively verify a veteran or surviving spouse who believes they will qualify for an exemption under s.
196.081, s. 196.082, or s. 196.091, F.S., once they purchase a homestead property. The form may only be
issued if the person provides the forms, documentation, or other proof necessary to qualify for the relevant
exemption, and the person must still apply after the purchase and in each subsequent year in order to receive
the exemption (unless an annual application is otherwise not required). The tentative verification by the
property appraiser is not binding on the taxpayer or the property appraiser. Decisions by the property appraiser
regarding whether to issue a letter are not subject to administrative or judicial appeal.
The bill takes effect July 1, 2024.
STORAGE NAME: h1161.WMC PAGE: 2
DATE: 1/31/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Property Taxes in Florida
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
The ad valorem tax is an annual tax
levied by counties, municipalities, 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 it 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 property, an
assessed value is produced. The assessed value is then reduced by any exemptions to produce the
taxable value.
5
Exemptions
Article VII, Section 6 of the Florida Constitution provides that every person who owns real estate with
legal and equitable title, and maintains their permanent residence or the permanent residence of their
dependent upon such real estate, is eligible for a $25,000 homestead tax exemption applicable to all ad
valorem tax levies including school district levies. An additional $25,000 homestead exemption applies
to homesteads that have an assessed value greater than $50,000 and up to $75,000, excluding school
district levies.
The Florida Constitution provides other specific ad valorem exemptions. For example, Article VII,
Section 3 of the Florida Constitution provides for specific exemptions from property taxes for widows
and widowers, blind persons, and persons who are totally and permanently disabled.
Property Tax Exemptions for Veterans and Surviving Spouses
Florida law provides several property tax exemptions for disabled veterans and their surviving spouses.
These include exemptions for the following persons:
A veteran
with a total and permanent service-connected disability is entitled to a complete
exemption for property owned and used as a homestead.
6
A veteran with a total service-connected disability that confines him or her to a wheelchair is
entitled to a complete exemption for property owned and used as a homestead.
7
Upon the
veteran’s death, the exemption carries over to the veteran’s un-remarried surviving spouse.
8
The un-remarried surviving spouse of a veteran who died while on active duty is entitled to a
complete exemption for property owned and used as a homestead if the veteran was a
permanent resident of Florida on the day he or she died.
9
1
Art. VII, s. 1(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), Fla. Const., 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
Art. VII, s. 3(b), Fla. Const.; s. 196.081, F.S.
7
S. 196.091(1), F.S.
8
S. 196.091(3), F.S.
9
S. 196.081(4), F.S. STORAGE NAME: h1161.WMC PAGE: 3
DATE: 1/31/2024
Applications for Property Tax Exemptions for Veterans and Surviving Spouses
Each person or organization who meets 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.
10
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 property after an initial application is made and the exemption
granted.
11
No formal application can be made for an ad valorem tax exemption before the purchase of the
property.
Effect of the Bill
The bill requires the Department of Revenue to provide a form that a county property appraiser may
use to tentatively verify a veteran or surviving spouse who believes they will qualify for an exemption
under s. 196.081, s. 196.082, or s. 196.091, F.S., once they purchase a homestead property. The form
may only be issued if the person provides the forms, documentation, or other proof necessary to qualify
for the relevant exemption, and the person must still apply after the purchase and in each subsequent
year in order to receive the exemption (unless an annual application is otherwise not required). The
tentative verification by the property appraiser is not binding on the taxpayer or the property appraiser.
Decisions by the property appraiser regarding whether to issue a letter are not subject to administrative
or judicial appeal.
The bill takes effect July 1, 2024.
B. SECTION DIRECTORY:
Section 1: Creates s. 196.092, F.S., requiring the Department of Revenue to provide a form.
Section 2: Provides an effective date.
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:
None.
10
S. 196.011(1)(a), F.S.
11
S. 196.011(5) and (9)(a), F.S. STORAGE NAME: h1161.WMC PAGE: 4
DATE: 1/31/2024
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Individuals who receive a tentative verification letter under this provision may be able to qualify for a
larger mortgage than would otherwise be available to them, depending on lender practices.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to 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 January 31, 2024, the Ways & Means Committee considered a Proposed Committee Substitute (PCS)
and reported the bill favorably as a committee substitute. The PCS:
Clarified the responsibility of the Department of Revenue with respect to providing a form to property
appraisers.
Gave additional guidance on the documentation requirements before a property appraiser could issue a
tentative verification of eligibility for certain exemptions.
Provided that decisions about whether to consider a request for tentative verification, or whether to
issue a tentative verification after receipt of documentation from a taxpayer, are not subject to
administrative or judicial review.
This analysis is drafted to the committee substitute as approved by the Ways & Means Committee.