STORAGE NAME: h1257b.HAT
DATE: 4/2/2025
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/HJR 1257
TITLE: Property Tax Benefits for Certain Residential
Properties Subject to a Long-term Lease
SPONSOR(S): Busatta
COMPANION BILL: SJR 1510 (Avila)
LINKED BILLS: CS/HB 1259 Busatta
RELATED BILLS: SB 1512 (Avila)
Committee References
Ways & Means
14 Y, 4 N, As CS
Housing, Agriculture & Tourism
9 Y, 4 N
Commerce
SUMMARY
Effect of the Bill:
The joint resolution proposes an amendment to the Florida Constitution to authorize the Legislature to provide two
$25,000 ad valorem tax exemptions, and to limit the increase in ad valorem tax assessments to the lesser of 3% or
the percent change in the consumer price index, for any property that is under a residential lease of at least 6
months on January 1 of each year, is owned by a person who also owns a homestead property in this state, and
could qualify as a homestead property if it was the primary residence of the owner.
The amendment takes effect on January 1, 2027, if approved by 60 percent of voters in the November 2026 general
election, and first applies to the 2027 tax roll.
Fiscal or Economic Impact:
The Revenue Estimating Conference estimated that the joint resolution has no impact on state or local government
revenues as the amendment it proposes is not self-executing.
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ANALYSIS
EFFECT OF THE BILL:
The joint resolution proposes amendments to Sections 3 and 4 of Article VII of the Florida Constitution to authorize
the Legislature to provide certain ad valorem taxation exemptions and assessment limitations for nonhomestead
residential real property, if the property is subject to a long-term residential lease, the property could qualify for a
homestead exemption if it was the owner’s primary residence, and the property is owned by a person who also has
a homestead exemption on another parcel of real estate.
If those conditions are met, the Legislature is authorized to provide by general law that qualifying nonhomestead
property:
Receives an exemption on the value of the property between $0 and $25,000 (for all levies) and between
$50,000 and $75,000 (for all levies other than school levies);
Cannot have the assessed value increase more than the lesser of three percent or the change in the
consumer price index for the year; and
Generally retains accumulated benefits if the property changes from year to year among qualifying
nonhomestead, property, nonqualifying nonhomestead property, and homestead property.
The bill provides through a new section of Article XII of the Florida Constitution, that the changes first apply to the
2027 tax roll. The changes take effect on January 1, 2027, if approved by 60 percent of voters in the November
2026 general election.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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FISCAL OR ECONOMIC IMPACT:
LOCAL GOVERNMENT:
The Revenue Estimating Conference estimated that the joint resolution has no impact on state or local government
revenues as the amendment it proposes is not self-executing.
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Ad Valorem Taxation
The ad valorem tax or “property tax” is an annual tax levied by counties, municipalities, school districts, and some
special districts. 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 local governments 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
Homestead Property
“Homestead” property is defined in section 6 of Article VII of the Florida Constitution, and in s. 196.031, F.S., as
property for which a person, on January 1, has the legal or beneficial title and who in good faith makes the property
his or her permanent residence (or the permanent residence of another legally or naturally dependent on him or
her). The property may be owned jointly, as tenancy by the entireties, or otherwise in common with others, and
can be apportioned among such shared owners.
9 Only one homestead exemption is allowed to any one person or
on any one dwelling house.
10 Individual condominium owners, however, can each qualify for a separate homestead
designation.
11
Homestead Exemption
1
FLA. CONST. art VII, ss. 1(a), 9(a)
2
S. 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. S. 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
FLA. CONST. art VII, s. 4
4
FLA. CONST. art VII, ss. 3, 4, and 6
5
S. 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).
9
S. 196.031(1)(a), F.S.
10
Id.
11
Id. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
Every person having legal and equitable title to real estate and who maintains a permanent residence on the real
estate (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.
13 This exemption does not apply to ad valorem taxes levied by school districts.
Limitation on Annual Increases in Assessments for Homestead Properties
The Florida Constitution
14 provides that, for those entitled to a homestead exemption, the assessed value of the
homestead for all levies shall be changed annually on January 1
st of each year. Those changes in assessments
cannot exceed the lesser of three percent of the prior year’s assessment or the percent change in the Consumer
Price Index
15 for the preceding calendar year.
16
Nonhomestead Property
Property that is residential real property but does not qualify as homestead property is assessed at just value on
January 1 of the year the property is purchased or becomes non-homestead property.
17 In each subsequent year,
for purposes of all levies other than school district levies, the property is reassessed each January 1, but cannot
increase by more than 10 percent over the prior year’s assessed value.
18 Property is generally reassessed at just
value on the January 1 following a change of ownership,
19 and changes, additions, or improvements are also
generally assessed at just value on the January 1 following the change.
20 The assessed value of nonhomestead
property is not limited by the 10 percent cap for purposes of school levies.
Long-Term Residential Leases
Under current law, there is no specific ad valorem benefit for properties used for residential leases of longer than 6
months. For sales tax purposes in Chapter 212, F.S., however, any person who rents property through a bona fide
written agreement for continuous residence for longer than six months in duration at that property is exempt from
sales tax and any applicable transient rental taxes (e.g., tourist development taxes
21) for that lease.
22
12
FLA. CONST. art VII, s. 6(a) and s. 196.031, F.S.
13
Section 196.031(1)(b), F.S.
14
As amended by Constitutional Amendment 10 (1992), commonly referred to as the “Save Our Homes” initiative.
15
Specifically, the Consumer Price Index for All Urban Consumers, U.S. City Average, all items 1967=100, or successor reports.
16
FLA. CONST. art. VII, s. 4(d)(1), implemented by section 193.155, F.S.
17
S. 193.1554(2), F.S., and s. 193.1555(2), F.S.
18
FLA. CONST. art. VII, s. 4(g)(1) and 4(h)(1), implemented by s. 193.1554(3), F.S., and s. 193.1555(3), F.S.
19
FLA. CONST. art. VII, s. 4(g)(3 and 4(h)(4), implemented by s. 193.1554(5), F.S., and s. 193.1555(5), F.S.
20
FLA. CONST. art. VII, s. 4(g)(4) and 4(h)(5), implemented by s. 193.1554(6), F.S., and s. 193.1555(6), F.S.
21
Section 125.0104, F.S.
22
Section 212.03(1)(a), F.S. 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 14 Y, 4 N, As CS 3/27/2025 Aldridge Berg
THE CHANGES ADOPTED BY THE
COMMITTEE:
Moved language in the joint resolution from Section 6 (Homestead) of
Article VII of the Florida Constitution to Sections 3 (Exemptions) and 4
(Assessment Limitations), as applicable.
Clarified that the benefits only apply to properties that could qualify as
homestead property if occupied by the owner.
Housing, Agriculture & Tourism
Subcommittee
9 Y, 4 N 4/1/2025 Curtin Fletcher
Commerce Committee
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THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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