This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h7017z.DOCX
DATE: 3/20/2024
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: CS/HJR 7017 PCB WMC 24-02 Annual Adjustment to Homestead Exemption Value
SPONSOR(S): State Affairs Committee and Ways & Means Committee, Buchanan and others
TIED BILLS: CS/HB 7019 IDEN./SIM. BILLS:
FINAL HOUSE FLOOR ACTION: 86 Y’s
29 N’s GOVERNOR’S ACTION: N/A
SUMMARY ANALYSIS
CS/HJR 7017 passed the House on February 1, 2024, and subsequently passed the Senate on March 6, 2024.
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.
The joint resolution proposes an amendment to the Florida Constitution requiring the $25,000 of assessed
value amount between $50,000 and $75,000, which is exempt from all ad valorem taxes other than school
district taxes, be adjusted annually for positive inflation growth. 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 constitutional amendment proposed by the joint resolution will be considered by the electorate at the 2024
general election and, if approved by 60 percent of the electors voting on the measure, would take effect on
January 1, 2025.
The Revenue Estimating Conference (REC) estimated that the joint resolution would have a zero/negative
indeterminate impact on local government revenues because it is proposing an amendment to be submitted to
the voters for approval. If the amendment proposed by the joint resolution is not approved by the voters, the
REC estimated the impact on local government revenues would be zero. If the amendment is approved by the
voters, the REC estimated the impact on non-school local government property taxes in Fiscal Year (FY) 2025-
26 (the first year of implementation) would be approximately -$22.8 million, growing to approximately -$111.8
million in FY 2028-29, assuming current tax rates.
The joint resolution is not subject to the Governor’s veto powers.
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DATE: 3/20/2024
I. SUBSTANTIVE INFORMATION
A. EFFECT OF 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 between $50,000 and $75,000, which is exempt
from all ad valorem taxes other than school district taxes, be adjusted annually for positive inflation
growth.
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 places the constitutional amendment on the ballot at the 2024 general election
where 60 percent of the electors voting on the measure must approve it for passage.
8
If approved, the
amendment would take effect on January 1, 2025.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
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
Art. XI, s. 5(e), Fla. Const.
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DATE: 3/20/2024
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.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The Revenue Estimating Conference (REC) estimated that the joint resolution would have a
zero/negative indeterminate impact on local government revenues because it is proposing an
amendment to be submitted to the voters for approval. If the amendment proposed by the joint
resolution is not approved by the voters, the REC estimated the impact on local government
revenues would be zero. If the amendment is approved by the voters, the REC estimated the
impact on non-school local government property taxes in Fiscal Year (FY) 2025-26 (the first year of
implementation) would be approximately -$22.8 million, growing to approximately -$111.8 million in
FY 2028-29, assuming current tax rates.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
If the constitutional amendment proposed by the joint resolution is approved by the voters, homestead
property owners would realize lower property taxes over time.
D. FISCAL COMMENTS:
None.