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/CS/SB 1684
INTRODUCER: Finance and Tax Committee; Community Affairs Committee; and Senator Collins
SUBJECT: Property Tax Exemption of Ex-servicemembers
DATE: February 15, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Fav/CS
2. Shuler Khan FT Fav/CS
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1684 provides that a veteran or such veteran’s unremarried surviving spouse is
eligible for an additional $10,000 ad valorem homestead tax exemption if the veteran has been
awarded the Purple Heart medal or any of the 9 additional listed medals of superior precedence.
The bill specifies qualification and application requirements, and authorizes appeals of denials
and application before documentation has been received.
The bill will take effect on the effective date of the constitutional amendment proposed by
CS/SJR 1686, or a similar joint resolution having substantially the same specific intent and
purpose.
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 property as of
REVISED: BILL: CS/CS/SB 1684 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
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
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).
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 Feb. 7, 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 Feb. 7, 2024).
6
Section 197.333, 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. BILL: CS/CS/SB 1684 Page 3
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
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
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.
22
The discount is calculated as a
percentage equal to the percentage of the veteran’s permanent, service-connected disability.
23
The discount is applied as a reduction to the taxable value of the homestead property.
24
To qualify for the tax discount, the veteran must:
Be aged 65 or older;
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.
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
FLA. CONST. art. VII, s. 6(e); s. 196.082, F.S.
23
Section 196.082(2), F.S.
24
Section 196.082(6), F.S. BILL: CS/CS/SB 1684 Page 4
Be partially or totally disabled with combat-related disabilities; and
Have received an honorable discharge.
25
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.
26
Armed Forces Decorations and Awards
George Washington established the first system for recognizing the heroic acts of military
servicemembers on August 7, 1782.
27
When first established by George Washington during the
Revolutionary War, the award was initially known as the Badge of Military Merit, then brought
into its modern form as the Purple Heart in 1932.
28
It is a medal awarded to any member of the
Armed Forces of the United States who, during service, has been wounded, was killed, or died of
wounds received in any action or as the result of an act of any hostile foreign force.
29
Rather than
being recommended for the honor, as with all other military decorations, a servicemember is
entitled to the Purple Heart after meeting the set criteria.
30
On December 21, 1861, Abraham Lincoln established the next award, the Medal of Honor,
which was initially for members of the Navy and Marine Corps, then later expanded to all
services.
31
Numerous decorations and awards have been created since then, but the Medal of
Honor remains the highest military decoration that can be awarded by this nation.
32
Behind the
Medal of Honor, but superior in precedence to the Purple Heart, are The Navy Cross, The Air
Force Cross, The Distinguished Service Cross, The Distinguished Service Medal with Combat
V, The Silver Star, The Legion of Merit with Combat V, The Distinguished Flying Cross, and
The Bronze Star with Combat V.
33
III. Effect of Proposed Changes:
The bill creates s. 196.083, F.S. to provide that a veteran or such veteran’s unremarried surviving
spouse is eligible for an additional $10,000 ad valorem homestead tax exemption if the veteran
has been awarded the Purple Heart medal or any of the 9 listed medals of superior precedence,
which are: The Medal of Honor, The Navy Cross, The Air Force Cross, The Distinguished
25
Section 196.082(1), F.S.
26
Section 196.082(3), F.S.
27
AMERICAN FORCES INFORMATION SERVICE, ARMED FORCES DECORATIONS AND AWARDS, 1 (1992) available at
https://history.army.mil/moh/Armed-Forces-Decorations-and-Awards.pdf
28
Id.
29
United State Army Human Resources Command, Purple Heart, Nov. 08, 2023,
https://www.hrc.army.mil/content/Purple%20Heart (last visited Feb. 7, 2024).
30
Id.
31
AMERICAN FORCES INFORMATION SERVICE, supra note 27.
32
Id.
33
See id., 22-31. BILL: CS/CS/SB 1684 Page 5
Service Cross, The Distinguished Service Medal with Combat V, The Silver Star, The Legion of
Merit with Combat V, The Distinguished Flying Cross, and The Bronze Star with Combat V.
The bill specifies requirements for qualifying for and applying for the exemption. Applicants are
authorized to appeal denials of the exemption by the property appraiser and may apply before
receiving necessary documentation from the U.S. Government.
The bill will take effect on the effective date of the constitutional amendment proposed by
CS/SJR 1686, or a similar joint resolution having substantially the same specific intent and
purpose.
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 mandate requirement
does not apply to laws having an insignificant impact, which for Fiscal Year 2024-2025
is forecast at approximately $2.3 million.
The Revenue Estimating Conference has not reviewed the bill at this time.
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.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet reviewed this bill. BILL: CS/CS/SB 1684 Page 6
B. Private Sector Impact:
If the proposed amendment (CS/SJR 1686) is approved by 60 percent of voters in
November 2024, this bill will alter the population eligible for the tax exemption, with an
uncertain aggregate impact.
C. Government Sector Impact:
If the proposed amendment (CS/SJR 1686) is approved by 60 percent of voters in
November 2024, this bill will have a negative impact on local government revenues to
the extent that it expands the number of veterans eligible for the tax exemption.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill creates section 196.083 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
Committee Substitute by Finance and Tax on February 13, 2024:
The committee substitute:
Places the exemption in a newly created section of statute.
Lists 9 medals in addition to the Purple Heart that will allow a veteran to qualify.
Specifies veteran and surviving spouse qualification and application requirements.
Authorizes applicants to appeal denials and apply before receiving US
Government documentation.
Restores effective date language linking the bill with the proposed constitutional
amendment (SJR 1686).
Committee Substitute by Community Affairs on January 29, 2024:
The committee substitute revises the bill to, rather than affect the current tax discount for
partially or totally permanently disabled veterans, provide an additional $10,000 property
tax exemption for veterans who have been awarded the Purple Heart medal or a combat
decoration superior in precedence.
B. Amendments:
None. BILL: CS/CS/SB 1684 Page 7
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.