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 Finance and Tax
BILL: CS/SB 172
INTRODUCER: Community Affairs Committee and Senator Polsky and others
SUBJECT: Verification of Eligibility for Homestead Exemption
DATE: February 7, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Fav/CS
2. Shuler Khan FT Pre-meeting
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 172 requires the Department of Revenue to create a form with which a property appraiser
may verify an individual’s eligibility to receive an exemption related to the applicant’s status as a
disabled veteran before the purchase of property.
The bill takes effect July 1, 2024.
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
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, e.g., Walter v. Schuler, 176 So. 2d 81 (Fla.
1965); Deltona Corp. v. Bailey, 336 So. 2d 1163 (Fla. 1976); S. Bell Tel. & Tel. Co. v. Dade Cnty., 275 So. 2d 4 (Fla. 1973).
REVISED: BILL: CS/SB 172 Page 2
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
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.
9
Second, the homestead provisions
protect the homestead from forced sale by creditors.
10
Third, the homestead provisions delineate
the restrictions a homestead owner faces when attempting to alienate or devise the homestead
property.
11
Every person having 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.
12
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.
13
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.
14
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.
15
The application must list and describe the property for which the exemption is being
3
See ss. 192.001(2) and (16), F.S.
4
Section 197.322, F.S.; see also Florida Department of Revenue, Florida Property Tax Calendar, available at
https://floridarevenue.com/property/Documents/taxcalendar.pdf (last visited Jan. 31, 2024).
5
Section 197.162, F.S.; see also Florida Department of Revenue, Tax Collector Calendar , available at
https://floridarevenue.com/property/Documents/tccalendar.pdf (last visited Jan. 31, 2024).
6
Section 197.162, F.S.
7
FLA. CONST. art. VII, s. 1(a).
8
See FLA. CONST. art. VII, s. 4.
9
FLA. CONST. art. VII, s. 6.
10
FLA. CONST. art. X, s. 4.
11
Id. at (c).
12
FLA. CONST. art VII, s. 6(a).
13
Id.
14
Section 196.011(1)(a), F.S.
15
Section 196.011(1), F.S. But see s. 196.011(7) and (8) for conditions when the exemption may be granted if an application
is filed after March 1. BILL: CS/SB 172 Page 3
claimed and certify the ownership and use of the property.
16
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.
19
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.
20
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.
21
Exemption for Disabled Veterans Confined to Wheelchairs
Similar to the homestead property of veterans with total and permanent disabilities, the
homestead property of a veteran who was honorably discharged with a service-connected total
disability and who requires a wheelchair is exempt from taxation.
22
The veteran must have a
certificate from the United States Government or United States Department of Veterans Affairs
or its predecessor, or its successors, certifying that the ex-servicemember is receiving or has
received special pecuniary assistance due to disability requiring specially adapted housing and is
required to use a wheelchair for his or her transportation.
23
The surviving spouse of the veteran
may continue to receive the exemption if the veteran predeceases their spouse as long as the
spouse continues to reside on the property, uses it as their domicile, and does not remarry or sell
or otherwise dispose of the property.
24
Tax Discount on Homestead Property for a Combat-disabled Veteran
In addition to the property tax exemptions described above, certain combat-disabled veterans are
entitled to a discount on their homestead property taxes.
25
The discount is calculated as a
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
Id.
20
Section 196.081(3), F.S.
21
Section 196.081(1)(b), F.S.
22
Section 196.091(1), F.S.
23
Id.
24
Section 196.091(3), F.S.
25
Section 196.082, F.S. BILL: CS/SB 172 Page 4
percentage equal to the percentage of the veteran’s permanent, service-connected disability.
26
The discount is applied as a reduction to the taxable value of the homestead property.
27
To qualify for the tax discount, the veteran must:
Be aged 65 or older;
Be partially or totally disabled with combat-related disabilities; and
Have received an honorable discharge.
28
In addition to filing an application with the county tax appraiser for the discount, an eligible
veteran must also provide to the tax appraiser by March 1:
An official letter from the United States Department of Veterans Affairs which includes the
percentage of the veteran’s service-connected disability and evidence that reasonably
identifies the disability as combat-related;
A copy of the veteran’s honorable discharge; and
Proof of age as of January 1 of the year to which the discount will apply.
29
III. Effect of Proposed Changes:
The bill requires the Department of Revenue (department) to create a form with which a property
appraiser may tentatively verify an individual’s eligibility to receive an ad valorem tax
exemption under ss. 196.081, 196.082, or 196.091, F.S., related to the applicant’s status as a
disabled veteran before the purchase of property. The form must indicate that the tentative
verification is not binding upon the property appraiser and that the person must comply with
annual application requirements. Currently, this is a service which is not required but may be
undertaken by local property appraisers at their own discretion.
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 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. The mandates provision
does not apply to this bill as it requires the development of an administrative form for
optional use by property appraisers and does not affect municipal or county authority to
raise revenue.
26
Section 196.082(2), F.S.
27
Section 196.082(6), F.S.
28
Section 196.082(1), F.S.
29
Section 196.082(4), F.S. BILL: CS/SB 172 Page 5
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Article VII, s. 19 of the Florida Constitution requires that legislation that increases or
creates taxes or fees be passed by a 2/3 vote of each chamber in a bill with no other
subject. The bill does not increase or create new taxes or fees. Thus, the constitutional
requirements related to new or increased taxes or fees do not apply.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
Property appraisers may incur additional administrative burdens reviewing forms to
verify applicants’ potential eligibility for exemptions before their official application for
the exemptions.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill creates s. 196.092 of the Florida Statutes. BILL: CS/SB 172 Page 6
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Community Affairs on January 29, 2024:
The committee substitute revises the bill to require the Department of Revenue to create a
form for use by property appraisers to utilize in verifying eligibility, as opposed to the
Department conducting the verification process.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.