HB 1259 2025
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to a property tax exemption and 2
assessment limitation on long -term leased property; 3
creating s. 193.1553, F.S.; providing that property 4
that receives a certain tax exemption shall be 5
assessed in a specified manner; providing that 6
changes, additions, and improvements to such 7
properties shall be assessed in a specified manner; 8
providing exceptions and alternative assessments; 9
providing constructi on; requiring property that no 10
longer meets eligibility requirements to be assessed 11
in an alternative manner; amending s. 196.011, F.S.; 12
requiring the submission of an application containing 13
specified information before receiving a specified tax 14
exemption; amending s. 196.034, F.S.; providing 15
specified tax exemptions for property that meets 16
certain eligibility requirements; providing that 17
certain damaged or destroyed property is eligible for 18
the exemption if specified conditions are met; 19
providing that if such conditions are not met, such 20
property shall be considered abandoned for a specified 21
purpose; amending ss. 193.1554 and 194.032, F.S.; 22
conforming provisions to changes made by the act; 23
providing an effective date. 24
25
HB 1259 2025
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Be It Enacted by the Legislature o f the State of Florida: 26
27
Section 1. Section 193.1553, Florida Statutes, is created 28
to read: 29
193.1553 Assessment of certain residential property 30
subject to a long-term lease.— 31
(1) Property that receives the exemption under s. 196.034 32
shall be assessed under this section. 33
(2) Except as provided in subsection (4), property that 34
meets the conditions of subsection (1) shall be assessed 35
pursuant to this section as of January 1 of any year for which 36
the property is eligible for assessment under this sect ion, 37
using the prior year's assessed value as the basis for any 38
change in assessment. Any change resulting from such assessment 39
shall not exceed the lower of the following: 40
(a) Three percent of the assessed value of the property 41
for the prior year; or 42
(b) The percentage change in the Consumer Price Index for 43
All Urban Consumers, U.S. City Average, all items 1967=100, or 44
successor reports for the preceding calendar year as initially 45
reported by the United States Department of Labor, Bureau of 46
Labor Statistics. 47
(3) If the assessed value of the property as calculated 48
under subsection (2) exceeds the just value, the assessed value 49
of the property shall be lowered to the just value of the 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
property. 51
(4) Property assessed under this section shall be assesse d 52
at just value as of January 1 of the year following a change of 53
ownership. Thereafter, the annual changes in the assessed value 54
of the property are subject to the limitations in subsections 55
(2) and (3). For purposes of this subsection, the term "change 56
of ownership" means any sale, foreclosure, or transfer of legal 57
title or beneficial title in equity to any person, except if any 58
of the provisions of s. 193.155(3)(a) apply. 59
(5)(a) Except as provided in paragraph (b) and s. 193.624, 60
changes, additions, or improvements to property subject to this 61
section shall be assessed at just value as of the first January 62
1 after the changes, additions, or improvements are 63
substantially completed. 64
(b)1. Changes, additions, or improvements that replace all 65
or a portion of property assessed under this section, including 66
ancillary improvements, that are damaged or destroyed by 67
misfortune or calamity shall be assessed upon substantial 68
completion as provided in this paragraph. Such assessment must 69
be calculated using the pr operty's assessed value as of the 70
January 1 immediately before the date on which the damage or 71
destruction was sustained, subject to the assessment limitations 72
in subsections (2) and (3), when: 73
a. The square footage of the property as changed or 74
improved does not exceed 110 percent of the square footage of 75
HB 1259 2025
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
the property before the damage or destruction; or 76
b. The total square footage of the property as changed or 77
improved does not exceed 1,500 square feet. 78
2. The property's assessed value must be increased by the 79
just value of that portion of the changed or improved property 80
which is in excess of 110 percent of the square footage of the 81
property before the damage or destruction or of that portion 82
exceeding 1,500 square feet. 83
3. Property damaged o r destroyed by misfortune or calamity 84
which, after being changed or improved, has a square footage of 85
less than 100 percent of the property's total square footage 86
before the damage or destruction shall be assessed pursuant to 87
subsection (6). 88
4. Changes, additions, or improvements assessed pursuant 89
to this paragraph must be reassessed pursuant to subsection (2) 90
in subsequent years. This paragraph applies to changes, 91
additions, or improvements commenced within 5 years after the 92
January 1 following the damag e or destruction of the property. 93
(c) Changes, additions, or improvements include 94
improvements made to common areas or other improvements made to 95
property other than to the property by the owner or by an owner 96
association, which improvements directly ben efit the property. 97
Such changes, additions, or improvements shall be assessed at 98
just value, and the just value shall be apportioned among the 99
parcels benefiting from the improvement. 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(6) When property is destroyed or removed and not 101
replaced, the assess ed value of the parcel shall be reduced by 102
the assessed value attributable to the destroyed or removed 103
property. 104
(7) Only property that meets the conditions of subsection 105
(1) is subject to this section. Any portion of property that is 106
assessed solely on the basis of character or use pursuant to s. 107
193.461 or s. 193.501, or assessed pursuant to s. 193.505, is 108
not subject to this section. When property is assessed under s. 109
193.461, s. 193.501, or s. 193.505 and contains a residence 110
under the same ownership, the portion of the property consisting 111
of the residence and curtilage must be assessed separately, 112
pursuant to s. 193.011, for the assessment to be subject to the 113
limitation in this section. 114
(8)(a) If, after meeting the conditions of subsection (1) 115
and receiving the benefit of the assessment limitation in 116
subsections (2) and (3), the property does not meet the 117
conditions of subsection (1) on January 1 of any year, the 118
property shall instead be assessed pursuant to s. 193.1554(3) 119
and (4) or s. 193.1555(3) and (4), as applicable, beginning with 120
such year. Any change in assessment in the first year the 121
property is assessed pursuant to s. 193.1554 or s. 193.1555 122
shall use the most recent year's assessed value under this 123
section as the basis for adjustment, an d may not revert to just 124
value unless such property experiences a change of ownership or 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
control as provided in s. 193.1554 or s. 193.1555. 126
(b) If the property meets the conditions of subsection (1) 127
in a subsequent year, this section shall apply beginnin g with 128
such year, and the application of the limitation in subsection 129
(2) shall use the most recent year's assessed value as the basis 130
for adjustment, even if the property was assessed in that year 131
pursuant to s. 193.1554 or s. 193.1555. 132
Section 2. Paragraph (b) of subsection (1) of section 133
196.011, Florida Statutes, is amended, and subsection (14) is 134
added to that section, to read: 135
196.011 Annual application required for exemption. — 136
(1) 137
(b) The form to apply for an exemption under s. 196.031, 138
s. 196.034, s. 196.081, s. 196.091, s. 196.101, s. 196.102, s. 139
196.173, or s. 196.202 must include a space for the applicant to 140
list the social security number of the applicant and of the 141
applicant's spouse, if any. If an applicant files a timely and 142
otherwise complete application, and omits the required social 143
security numbers, the application is incomplete. In that event, 144
the property appraiser shall contact the applicant, who may 145
refile a complete application by April 1. Failure to file a 146
complete application by that date constitutes a waiver of the 147
exemption privilege for that year, except as provided in 148
subsection (7) or subsection (9). 149
(14) Notwithstanding paragraph (7)(a), an applicant who is 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
eligible to receive an exemption under s. 196.034 must file a n 151
application each year by March 1. Such application must include 152
the address of the property at which the owner currently 153
receives a homestead exemption, and an executed copy of the 154
lease for the property to be exempted under s. 196.034. 155
Section 3. Section 196.034, Florida Statutes, is created 156
to read: 157
196.034 Exemption of certain residential property subject 158
to a long-term lease.— 159
(1)(a) Property that meets the following conditions is 160
entitled to an exemption from all taxation up to the assessed 161
valuation of $25,000: 162
1. The owner of the property holds the legal or equitable 163
title to a separate parcel that receives the exemption under s. 164
196.031 and such parcel is his or her permanent residence. 165
2. As of January 1 of the taxable year, the proper ty is 166
rented by the owner to one or more persons for residential use 167
under a written lease that has a duration of 6 months or more. 168
(b) Every property that qualifies to receive the exemption 169
provided in paragraph (a) is entitled to an additional exemptio n 170
of up to $25,000 on the assessed valuation greater than $50,000 171
for all levies other than school district levies. 172
(c) Any property that does not meet the conditions of 173
paragraph (a) for a given year may not receive the benefits 174
provided in paragraphs ( a) and (b) for such year unless 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
subsection (2) applies, but the property may receive the 176
benefits in paragraphs (a) and (b) in any future year for which 177
all conditions in paragraph (a) are met. 178
(2) For purposes of this section, when property exempted 179
under this section is damaged or destroyed by misfortune or 180
calamity and the property is uninhabitable on the January 1 181
after the damage or destruction occurs, the property shall be 182
considered to be subject to a long -term lease on January 1 and 183
an existing exemption under this section shall continue if the 184
property is otherwise qualified and if the property owner 185
notifies the property appraiser that he or she intends to repair 186
or rebuild the property and the existing or another lessee will 187
resume residency aft er the property is repaired or rebuilt. 188
Failure by the property owner to commence the repair or 189
rebuilding of the property within 5 years after the January 1 190
following the property's damage or destruction constitutes 191
abandonment of the property as exempt u nder this section. After 192
the 5-year period, the expiration, lapse, nonrenewal, or 193
revocation of a building permit issued to the property owner for 194
such repairs or rebuilding also constitutes abandonment of the 195
property under this section. 196
Section 4. Subsection (1) of section 193.1554, Florida 197
Statutes, is amended to read: 198
193.1554 Assessment of nonhomestead residential property. — 199
(1) As used in this section, the term "nonhomestead 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
residential property" means residential real property that 201
contains nine or fewer dwelling units, including vacant property 202
zoned and platted for residential use, and that does not receive 203
the exemption under s. 196.031 or s. 196.034. 204
Section 5. Paragraph (a) of subsection (1) of section 205
194.032, Florida Statutes, is am ended to read: 206
194.032 Hearing purposes; timetable. — 207
(1)(a) The value adjustment board shall meet not earlier 208
than 30 days and not later than 60 days after the mailing of the 209
notice provided in s. 194.011(1); however, no board hearing 210
shall be held before approval of all or any part of the 211
assessment rolls by the Department of Revenue. The board shall 212
meet for the following purposes: 213
1. Hearing petitions relating to assessments filed 214
pursuant to s. 194.011(3). 215
2. Hearing complaints relating to homes tead exemptions as 216
provided for under s. 196.151. 217
3. Hearing appeals from exemptions denied, or disputes 218
arising from exemptions granted, upon the filing of exemption 219
applications under s. 196.011. 220
4. Hearing appeals concerning ad valorem tax deferrals and 221
classifications. 222
5. Hearing appeals from determinations that a change of 223
ownership under s. 193.155(3), a change of ownership or control 224
under s. 193.1553(4), s. 193.1554(5), or s. 193.1555(5), or a 225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
qualifying improvement under s. 193.1555(5) has oc curred. 226
Section 6. This act shall take effect on the effective 227
date of the amendment to the State Constitution proposed by HJR 228
1257 or a similar joint resolution having substantially the same 229
specific intent and purpose , if such amendment is approved at 230
the next general election. 231