This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h7017.SAC
DATE: 1/19/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HJR 7017 PCB WMC 24-02 Annual Adjustment to Homestead Exemption Value
SPONSOR(S): Ways & Means Committee, Buchanan
TIED BILLS: HB 7019 IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Ways & Means Committee 16 Y, 8 N Rexford Aldridge
1) State Affairs Committee Burgess Williamson
SUMMARY ANALYSIS
The Florida Constitution requires all property to be assessed at just value (fair market value) as of January 1 of
each year for purposes of ad valorem taxation. Ad valorem assessments are used to calculate property 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 any applicable exemptions
allowed by the Florida Constitution. One such exemption is on the assessed value between $50,000 and
$75,000, which is exempt from all ad valorem taxes other than school district taxes.
This joint resolution proposes an amendment to the Florida Constitution requiring the $25,000 of assessed
value, which is exempt from all ad valorem taxes other than school district taxes, be adjusted annually for
inflation. It would also apply to any future homestead exemption applying only to ad valorem taxes, other than
school district taxes, if approved by the voters, and would begin on January 1, 2025.
The joint resolution, if passed by the legislature, would be considered by the electorate at the 2024 general
election and, if approved by 60 percent of the electors voting on the measure, the joint resolution would take
effect on January 1, 2025.
The Revenue Estimating Conference met on January 19, 2024, to discuss the potential revenue impacts of the
bill; however, those results are not yet available. Staff estimates that if voters approve the proposed
constitutional amendment, the impact on non-school local government property taxes in Fiscal Year (FY) 2025-
26 (the first year of implementation) would be approximately -$23 million, growing to approximately -$173
million in FY 2030-31, assuming current tax rates.
A joint resolution proposing an amendment or revision to the Florida Constitution requires a three-
fifths vote of the membership of each house of the Legislature to appear on the next general election
ballot.
STORAGE NAME: h7017.SAC PAGE: 2
DATE: 1/19/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Ad Valorem Taxes
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
Ad valorem taxes are annual taxes
levied by counties, municipalities, school districts, and certain special districts. These taxes are based
on the just value (fair market value) of real and tangible property as determined by county property
appraisers on January 1 of each year.
2
The just value may be subject to limitations, such as the “Save
Our Homes” limitation on homestead property assessment increases.
3
The value arrived at after
accounting for applicable limitations is known as the assessed value. Property appraisers then
calculate the taxable value by reducing the assessed value in accordance with any applicable
exemptions, such as the exemptions for homestead property.
4
Each year, local governing boards levy
millage rates (i.e., tax rates) on the taxable value to generate the property tax revenue contemplated in
their annual budgets.
Homestead Exemptions
Certain homestead exemptions are specified in Article VII, Section 6 of the Florida Constitution, which
provides that every person who holds legal or equitable title to real estate and uses said real estate as
a permanent residence for themselves, or a legal or natural dependent, is entitled to exemption from
taxes on the first $25,000 in assessed value.
5
In 2008, Florida voters amended this provision to include
an additional $25,000 exemption from all ad valorem taxes, other than school district taxes, on the
assessed value greater than $50,000.
6
Overall, the assessed value of $50,000 up to $75,000 is exempt
from all taxes other than school district taxes. Currently, this assessed value amount is not adjusted
annually for inflation.
Effect of Proposed Changes
This joint resolution proposes an amendment to Article VII, Section 6(a) of the Florida Constitution
requiring the existing $25,000 assessed value amount, which is exempt from all ad valorem taxes other
than school district taxes, be adjusted annually for inflation.
7
This inflation adjustment provision would
also apply to any future homestead exemption applying only to ad valorem taxes, other than school
district taxes, if approved by the voters, and would begin on January 1, 2025.
The joint resolution, if passed by the Legislature, would place the amendment on the ballot at the 2024
general election, or an earlier special election held for the purpose of proposing the amendment to the
voters,
8
where 60 percent of the electors voting on the measure must approve it for passage.
9
If
approved, the amendment would take effect on January 1, 2025.
1
Art. VII, s. 1(a)., Fla. Const.
2
Art. VII, s. 4., Fla. Const.
3
See generally s. 193.155, F.S.
4
S. 196.031, F.S.
5
Art. VII s. 6., Fla. Const.
6
Id.
7
The annual inflation adjustment calculation uses the same Consumer Price Index metric as used for the Save Our Homes calculation
in Art. VII, s. 4(a)(1)b., Fla. Const.
8
Pursuant to Art. XI, s. 5(a), Fla. Const., placing the joint resolution on a special election ballot requires the legislature to pass a
general law by a three-fourths vote of the membership of each house of the legislature.
9
Art. XI, s. 5(e), Fla. Const. STORAGE NAME: h7017.SAC PAGE: 3
DATE: 1/19/2024
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
Article XI, Section 5(d) of the Florida Constitution requires publication of a proposed amendment in
a newspaper of general circulation in each county. The Division of Elections within the Department
of State must advertise the full text of the amendment twice in a newspaper of general circulation in
each county where the amendment will appear on the ballot. The Division must also provide each
supervisor of elections with either booklets or posters displaying the full text of each proposed
amendment.
10
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The Revenue Estimating Conference met on January 19, 2024, to discuss the potential revenue
impacts of the bill; however, those results are not yet available. Staff estimates that if voters
approve the proposed constitutional amendment, the impact on non-school local government
property taxes in Fiscal Year (FY) 2025-26 (the first year of implementation) would be
approximately -$23 million, growing to approximately -$173 million in FY 2030-31, assuming current
tax rates.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
If this joint resolution is approved, homestead property owners would realize lower property taxes over
time.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The mandates provision applies only to general laws, not to a joint resolution
proposing to amend the state Constitution.
2. Other:
A joint resolution proposing a constitutional amendment or revision to the Florida Constitution
requires a three-fifths vote of the membership of each house of the Legislature to appear on the next
general election ballot.
11
10
S. 101.171, F.S.
11
Art. XI, s. 1, Fla. Const. STORAGE NAME: h7017.SAC PAGE: 4
DATE: 1/19/2024
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SU BSTITUTE CHANGES
None.