STORAGE NAME: h1041d.SAC
DATE: 3/31/2025
1
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1041
TITLE: Assessment of Homestead Property
SPONSOR(S): Berfield, Anderson
COMPANION BILL: CS/SB 176 (DiCeglie)
LINKED BILLS: HJR 1039 Berfield
RELATED BILLS: SB 1192 (Ingoglia)
Committee References
Ways & Means
17 Y, 0 N, As CS
Intergovernmental Affairs
14 Y, 0 N
State Affairs
SUMMARY
Effect of the Bill:
This bill implements the amendment to Art. VII, s. 4 of the Florida Constitution, proposed by HJR 1039 (2025), to
prohibit the consideration of any change or improvement made to mitigate a property’s susceptibility to flood
damage when calculating ad valorem property taxes.
The bill takes effect on January 1, 2027, if the constitutional amendment proposed by HJR 1039 (2025), or a similar
joint resolution, is approved by 60 percent of voters voting in the November 2026 general election.
Fiscal or Economic Impact:
The Revenue Estimating Conference has not estimated potential impacts of the bill on state and local government
revenues. Staff estimates that the bill will have a zero or negative indeterminate impact on local government
revenues due to the need for approval by the voters of the constitutional amendment proposed by HJR 1039
(2025).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill provides that changes, additions, or improvements that replace all or a portion of homestead property,
damaged or destroyed by misfortune or calamity, must be calculated using the assessed value as of the January 1
immediately before the date on which the damage or destruction was sustained when the total square footage of
the homestead does not exceed 110 percent of the square footage before the damage or destruction or 2,000
square feet, rather than 1,500 square feet. (Section 1)
The bill specifies that changes, additions, or improvements that replace or are made to homestead property to
elevate such property for the purpose of mitigating the impacts of flood damage do not increase the property's
assessed value for purposes of ad valorem property taxes if:
The square footage of the property after the voluntary elevation does not exceed 2,000 square feet; or
The square footage of the property after the voluntary elevation does not exceed 110 percent of the square
footage of the property before the elevation. (Section 1)
Any increase in the square footage beyond these thresholds must be assessed at just value. However, the bill
provides that the area underneath an elevated structure which is dedicated only for parking, storage, or access may
not be included in the 110 percent calculation. (Section 1)
Changes, additions, or improvements made to property that was unable to be used as homestead due to damage or
destruction caused by misfortune or calamity must be commenced within 5 years after the January 1 following the
damage to the homestead. (Section 1)
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
Homestead property must comply with all applicable Federal Emergency Management Agency’s National Flood
Insurance Program building requirements and Florida Building Code elevation requirements in order to receive
these benefits. (Section 1)
The bill takes effect on the same date that HJR 1039 (2025), or a similar joint resolution, takes effect if approved by
60 percent of the electors voting at the general election held in November 2026. If approved by the voters, the joint
resolution and this bill will take effect on January 1, 2027. (Section 2)
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The Revenue Estimating Conference has not estimated the potential impact of the bill on state government
revenues. Staff estimates that impact to be zero.
LOCAL GOVERNMENT:
The Revenue Estimating Conference has not estimated the potential impacts of the bill on local government
revenues. However, staff estimates that the bill will have a zero/negative indeterminate impact on local
government revenues because the bill is contingent upon passage of the constitutional amendment proposed by
HJR 1039 (2025). If approved by the voters, and assuming current millage rates, staff estimates the bill to have a
negative recurring impact on local government revenues of $123.6 million (-$44.6 million on school taxes; -$79.0
million on non-school taxes) in Fiscal Year (FY) 2025-26. Because the bill is effective on January 1, 2027, if the
constitutional amendment proposed by HJR 1039 (2025) is approved by the voters, cash impacts do not begin until
FY 2027-28.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Ad Valorem Taxation
The Florida Constitution reserves to local governments the authority to levy ad valorem taxes on real and tangible
personal property.
1 Ad valorem taxes are levied annually by counties, cities, 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 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 parcel of real property, an assessed
value is produced. The assessed value is then reduced by any exemptions to produce the taxable value.
5
Unless expressly exempted from taxation, all real and personal property and leasehold interests in the state are
subject to taxation.
6 The Florida Constitution limits the Legislature’s authority to grant an exemption or
assessment limitation from taxes,
7 and any modifications to existing ad valorem tax exemptions or limitations must
be consistent with the constitutional provision authorizing the exemption or limitation.
8
1
Art. VII, ss. 1(a) and 9(a), Fla. Const.
2
Section 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. Section 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) of the Florida Constitution 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
Section 196.031, F.S.
6
Section 196.001, F.S.; see also Sebring Airport Authority v. McIntyre, 642 So. 2d 1072, 1073 (Fla. 1994), noting exemptions are
strictly construed against the party claiming them.
7
Archer v. Marshall, 355 So. 2d 781, 784 (Fla. 1978).
8
Sebring Airport Auth. v. McIntyre, 783, So. 2d 238, 248 (Fla. 2001); Archer v. Marshall, 355 So. 2d 781, 784. (Fla. 1978); Am Fi
Inv. Corp v. Kinney, 360 So. 2d 415 (Fla. 1978); see also Sparkman v. State, 58 So. 2d 431, 432 (Fla. 1952). JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Homestead Property
Article VII, s. 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 on that property (a “homestead”). 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.
9
Changes, Additions, or Improvements to Real Property
A homestead property’s tax assessment cannot be increased in one year by more than the greater of three percent
or the percent change in the Consumer Price Index, except under certain circumstances.
10 One such circumstance is
that changes, additions, and improvements to homestead property are assessed at market value, which can
increase the total assessment by any amount.
11
However, current law specifies that changes, additions, or improvements that replace all or a portion of homestead
property damaged or destroyed by misfortune or calamity may not increase the property’s assessed value when
the square footage of the property as changed or improved does not exceed 110 percent of the square footage of
the property before the damage or destruction.
12 Additionally, the property’s assessed value may not increase if
the total square footage of the homestead property as changed or improved does not exceed 1,500 square feet.
13
In addition, Art. VII, s. 4 of the Florida Constitution authorizes the Legislature to prohibit the consideration of:
Any change or improvement to residential real property made to improve the property’s resistance to wind
damage; or
The installation of a solar or renewable energy device.
Flood Damage and Insurance
Hurricanes and other storms that result in flooding have caused billions of dollars in damage across all parts of
Florida.
14 Flooding is one of Florida’s most frequent hazards, and can happen any time of the year.
15 Flood
insurance can assist with recovery after a flooding incident, but most standard homeowner’s insurance does not
cover flood damage.
16
The Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program, which
was created to offer federally subsidized flood insurance to property owners and to encourage land-use controls in
floodplains.
17 Communities eligible to participate in the National Flood Insurance Program Community Rating
System receive discounts on flood insurance premiums.
18 To participate in the National Flood Insurance Program,
communities agree to regulate all development in flood hazard areas mapped by FEMA.
19
A Flood Insurance Rate Map is an official map of a community on which FEMA has delineated both the special
hazard areas and the risk premium zones applicable to the community.
20 These maps have many applications
9
Art. VII, s. 6(a)(1)b., Fla. Const.
10
Art. VII, s. 4(d), Fla. Const.
11
Section 193.155(4)(a), F.S.
12
Section 193.155(4)(b), F.S.
13
Section 193.155(4)(b), F.S.
14
Catastrophe Claims Data, Office of Insurance Regulation, available at https://floir.com/tools-and-data/catastrophe-
reporting (last visited March 15, 2025).
15
Florida Department of Emergency Management, Floods, available at https://www.floridadisaster.org/hazards/floods/ (last
visited March 15, 2025).
16
National Flood Insurance Program, available at https://www.floodsmart.gov/ (last visited March 15, 2025).
17
42 U.S.C. § 4001 et seq.; 44 C.F.R. Ch. I, Subchap. B.; FEMA, Flood Insurance, available at https://www.fema.gov/national-
flood-insurance-program (last visited March 15, 2025).
18
FEMA, National Flood Insurance Program Community Rating System, available at https://www.fema.gov/floodplain-
management/community-rating-system (last visited March 15, 2025).
19
Flood Resistant Provisions in the 7
th
Edition Florida Building Code (2020), Florida Division of Emergency Management,
available at https://www.floridadisaster.org/globalassets/dem/mitigation/fmap/2020/7th-
ed_fbc_floodprovisions_nov2020.pdf (last visited March 15, 2025).
20
44 C.F.R. § 59.1. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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relevant to resilience planning, including communicating base flood elevations and flood risk, establishing special
flood hazard areas where flood insurance is required, and setting local floodplain and building standards.
21
Flood Mitigation
Local jurisdictions throughout the state recognize, plan for, and manage development in flood hazard areas.
22 An
area’s resistance to flood damage can be increased through mitigation strategies such as large structural public
works projects, including dams, seawalls, and levees, as well as improvements made to individual properties, such
as elevating structures, filling basements, and waterproofing.
23 Mitigation can also include non-structural
improvements, such as the maintenance of land to allow for stormwater runoff, installing flood vents in walls and
garages, waterproofing basements, installing backflow and check valves capable of preventing water backup, and
elevating furnaces, heaters, and electrical panels.
24
When an owner or developer constructs, adds to, or substantially improves a building in a flood hazard area,
certain requirements intended to minimize future flood damage must be satisfied. These provisions are found in
the Florida Building Code and require design professionals and builders to address requirements related to
elevation, wave loads, flood velocity, and debris impact, along with other applicable load and design
requirements.
25
When a home is substantially damaged in a flooding event, such that the cost of improvements or repair the
damage exceeds 50 percent of the market value of the home, FEMA generally requires such home to be brought up
to current floodplain management standards.
26
HJR 1039 (2025)
HJR 1039 (2025), which this bill is linked to, proposes an amendment to the Florida Constitution to authorize the
Legislature to prohibit, for purposes of ad valorem property taxes, the consideration of any change or
improvement to homestead property that mitigates the property’s susceptibility to flood damage.
RECENT LEGISLATION:
YEAR BILL # HOUSE SPONSOR(S) SENATE SPONSOR OTHER INFORMATION
2021 CS/CS/HB 1379 Chaney Brandes Passed in Ch. 2021-31, L.O.F.
(HB 7061); did not take effect
due to failure of amendment
proposed by HJR 1377
21
FEMA, Flood Maps, available at https://www.fema.gov/flood-maps (last visited March 15, 2025); Florida Division of
Emergency Management, Enhanced State Hazard Mitigation Plan, State of Florida (2023), available at https://flshmp-
floridadisaster.hub.arcgis.com/ (last visited March 15, 2025).
22
See, e.g., Lee County (https://www.leegov.com/dcd/flood/firm/zones/hazardareas last visited March 15, 2025),
Hillsborough County (https://hcfl.gov/residents/public-safety/hazard-mitigation/local-mitigation-strategy last visited March
15, 2025), and Miami-Dade County (https://www.miamidade.gov/environment/flood-protection.asp last visited March 15,
2025).
23
Beverly Cigler, U.S. Floods: The Necessity of Mitigation, State and Local Government Review, Vol. 49 Issue 2 (Sept. 2017),
available at https://www.napawash.org/uploads/Standing_Panel_Blogs/cigler-floods-and-mitigation-Sept.-20172.pdf (last
visited March 15, 2025).
24
Mitigation for Homeowners, FEMA, available at https://www.fema.gov/fact-sheet/mitigation-homeowners (last visited
March 15, 2025).
25
Flood Resistant Provisions in the 7
th
Edition Florida Building Code (2020), Florida Division of Emergency Management,
available at https://www.floridadisaster.org/globalassets/dem/mitigation/fmap/2020/7th-
ed_fbc_floodprovisions_nov2020.pdf (last visited March 15, 2025).
26
Substantial Improvement and Substantial Damage, FEMA, available at
https://www.fema.gov/pdf/floodplain/nfip_sg_unit_8.pdf (last visited March 15, 2025). JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Ways & Means Committee 17 Y, 0 N, As CS 3/20/2025 Aldridge Berg
THE CHANGES ADOPTED BY THE
COMMITTEE:
Added the requirement that property damaged in a flooding event must
begin repairs or replacement within 5 years to maintain homestead
benefits, for consistency with current law; and
Made technical and clarifying changes.
Intergovernmental Affairs
Subcommittee
14 Y, 0 N 3/26/2025 Darden Jones
State Affairs Committee Williamson Jones
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THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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