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 1748
INTRODUCER: Finance and Tax Committee and Senator Brodeur
SUBJECT: Homestead Property Tax Exemptions for Classroom Teachers, Law Enforcement
Officers, Firefighters, Child Welfare Professionals, and Servicemembers
DATE: February 10, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. Gross Babin FT Fav/CS
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1748 is linked to CS/SJR 1746, which proposes an amendment to the Florida Constitution
to authorize the Legislature to provide a new homestead tax exemption for classroom teachers,
law enforcement officers, firefighters, child welfare professionals, and active duty members of
the United States Armed Forces, or members of the Florida National Guard.
The bill provides that any of the defined people who hold legal or beneficial title in equity to real
property in this state and makes such property their or their dependent’s permanent residence is
entitled to an exemption of up to $50,000 on the property’s value between $100,000 and
$150,000, for all levies other than school district levies.
The bill directs the Legislature to appropriate money to fiscally constrained counties to offset
reductions in ad valorem tax revenue resulting from the homestead exemption. Distributions to
fiscally constrained counties will be made beginning in Fiscal Year 2023-2024.
The Revenue Estimating Conference (REC) has not analyzed the committee substitute; however,
staff does not expect the committee substitute to change the estimate provided for the prior
version of the bill. The REC determined that a fiscal impact of the prior version of the bill is
contingent upon voter approval of the joint resolution. However, if the joint resolution is
approved, the bill will reduce local property tax revenue for all levies other than school district
levies by $83.8 million beginning in Fiscal Year 2023-2024.
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The bill will take effect on the effective date of the amendment proposed by CS/SJR 1746 or a
similar joint resolution having substantially the same specific intent and purpose. If approved by
the electors in the next general election in November 2022, the proposed amendment (CS/SJR
1746) and CS/SB 1748 will take effect on January 1, 2023.
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
January 1 of each year.1 The property appraiser annually determines the assessed or “just value”2
of property within the taxing jurisdiction and then applies relevant exclusions, assessment
limitations, and exemptions to determine the property’s “taxable value.”3 Tax bills are mailed in
November of each year based on the previous January 1 valuation and payment is due by
March 31.
The Florida Constitution prohibits the state from levying ad valorem taxes4 and limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
authorized.5
The just valuation standard generally requires the property appraiser to consider the highest and
best use of property;6 however, the Florida Constitution authorizes certain types of property to be
valued based on their current use (classified use assessments), which often result in lower
assessments. Properties that receive classified use treatment in Florida include: agricultural land,
land producing high water recharge to Florida’s aquifers, and land used exclusively for
noncommercial recreational purposes; land used for conservation purposes; historic properties
when authorized by the county or municipality; and certain working waterfront property.7
Persons eligible for a property tax exemption must file an application with the property appraiser
on or before March 1 of each year in which the exemption is claimed, unless such requirement
has been waived by a county.8
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 Walter v. Shuler, 176 So. 2d 81 (Fla.
1965); Deltona Corp. v. Bailey, 336 So. 2d 1163 (Fla. 1976); Southern Bell Tel. & Tel. Co. v. Dade County, 275 So. 2d 4
(Fla. 1973).
3
See s. 192.001(2) and (16), F.S.
4
FLA. CONST. art. VII, s. 1(a).
5
See FLA. CONST. art. VII, s. 4.
6
Section 193.011(2), F.S.
7
FLA. CONST. art. VII, s. 4.
8
Section 196.011, F.S.
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Property Tax Exemptions for Homestead Property
Homestead Exemption
Every person having legal or equitable title to real estate and who maintains thereon his or her
permanent residence or the permanent residence of a dependent (homestead property) is eligible
for a homestead tax exemption of up to $25,000. The exemption applies to all ad valorem taxes
levied, including levies by school districts.9 An additional homestead exemption of up to $25,000
applies to the property’s value between $50,000 and $75,000.10 Unlike the first $25,000, the
additional $25,000 exemption does not apply to ad valorem taxes levied by school districts.
Additional Homestead Exemptions for Certain Persons
The Florida Constitution authorizes the Legislature to provide additional property tax
exemptions for the following persons who maintain property as a homestead:
 Counties and municipalities may grant exemptions to persons aged 65 years or over whose
household income does not exceed $20,000 (low-income seniors).11
 A veteran or first responder12 with a total and permanent service-connected disability is
entitled to a complete exemption for the property.13
 A veteran with a total service-connected disability that confines him or her to a wheelchair is
entitled to a complete exemption for the property. Upon the veteran’s death, the exemption
carries over to the veteran’s unremarried surviving spouse.14
 A veteran disabled to a degree of 10 percent or more by misfortune or during wartime service
is entitled to an exemption for any property up to $5,000. Upon the death of the veteran, the
exemption carries over to the veteran’s unremarried surviving spouse.15
 The unremarried surviving spouse of a veteran or first responder who died while on active
duty is entitled to a complete exemption for the property if the veteran was a permanent
resident of Florida on the day he or she died.16
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.17 The discount is calculated as a
9
FLA. CONST. art VII, s. 6(a) and s. 196.031, F.S.
10
Section 196.031(1)(b), F.S.
11
FLA. CONST. Art. VII, s. 6(d)(1) and (2). The income level is adjusted each year according to changes in the consumer price
index. For 2022, persons will qualify if the household income does not surpass $32,561. Florida Department of Revenue,
Florida Property Tax Valuation and Income Limitation Rates, available at:
https://floridarevenue.com/property/Documents/AdditionalHomesteadExemptions.pdf (last visited Feb. 5, 2022).
12
“First responder” in this context means a law enforcement officer or correctional officer as defined in s. 943.10, F.S., a
firefighter as defined in s. 633.102, F.S., or an emergency medical technician or paramedic as defined in s. 401.23, F.S., who
is a full-time paid employee, part-time paid employee, or unpaid volunteer. Section 196.081(6)(c)1., F.S.
13
Sections 196.081 and 196.102, F.S.
14
Section 196.091(1) and (3), F.S.
15
Section 196.24, F.S.
16
Section 196.081(4) and (6), F.S.
17
Section 196.082, F.S.
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percentage equal to the percentage of the veteran’s permanent, service-connected disability.18
The discount is applied as a reduction to the taxable value of the homestead property.19
Fiscally Constrained Counties
Fiscally constrained counties are counties entirely within a Rural Area of Opportunity or where a
1 mill levy would raise no more than $5 million in annual tax revenue.20 A Rural Area of
Opportunity is a rural community or region that has been adversely affected by extraordinary
economic events, severe distresses, natural disasters or that presents unique economic
development opportunities of regional impact, as designated by the Governor.21
Florida’s fiscally constrained counties are: Baker, Bradford, Calhoun, Columbia, Desoto, Dixie,
Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Highlands, Holmes,
Jackson, Jefferson, Lafayette, Levy, Liberty, Madison, Okeechobee, Putnam, Suwannee, Taylor,
Union, Wakulla, and Washington.22
The Legislature annually appropriates money to fiscally constrained counties to offset ad
valorem tax revenue reductions caused by various amendments to the Florida Constitution.23 In
order to receive an offset distribution, fiscally constrained counties must annually provide the
Department of Revenue with an estimate of the expected reduction in ad valorem tax revenues
that are directly attributable to specified revisions of Article VII of the Florida Constitution.24
This prevents such amendments related to property tax from negatively affecting fiscally
constrained county tax revenues.
III. Effect of Proposed Changes:
The bill creates an additional homestead exemption for classroom teachers, law enforcement
officers, firefighters, child welfare professionals, active duty members of the United States
Armed Forces, or members of the Florida National Guard to exempt up to $50,000 of the
assessed value of the property greater than $100,000.
In order to receive the exemption, the qualifying person must be employed on January 1 in a full-
time position in one of the above-described qualifying professions.
The bill provides the following definitions:
 “Child welfare professional” means a state employee engaged in child welfare services as
defined in s. 402.40(2), F.S., who holds a child welfare certification as defined in s.
402.40(2), F.S.;
18
Section 196.082(2), F.S.
19
Section 196.082(5), F.S.
20
Section 218.67(1), F.S.
21
See Section 288.0656, F.S.
22
Florida Department of Revenue, List of Fiscally Constrained Counties, available at:
http://floridarevenue.com/property/Documents/fcco081210.pdf (last visited Feb. 10, 2022)
23
See s. 218.125, F.S.
24
Section 218.125(2), F.S.
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 “Classroom teacher” means a staff member assigned the professional activity of instructing
K-12 students in courses and classroom situations, including basic instruction, exceptional
student education, and career education;
 “Firefighter” means an individual who holds a current and valid Firefighter Certificate of
Compliance or Special Certificate of Compliance issued by the division under s. 633.408,
F.S.;
 “Law enforcement officer” means a law enforcement officer25 or correctional officer26 as
defined by s. 943.10, F.S.; and
 “Servicemember” means a person serving as an active duty member of the United States
Armed Forces or as a member of the Florida National Guard.
The bill prohibits a county from waiving the requirement that an annual application be made.
A person identified as receiving but not entitled to the exemption for any year in the prior 10
years is subject to repayment of the taxes exempted, plus a penalty of the unpaid taxes of 50
percent and 15 percent interest. Persons who knowingly and willfully give false information for
the purpose of claiming the exemption are guilty of a first degree misdemeanor, punishable as
provided by law or by fine not to exceed $5,000.
The bill directs the Legislature to appropriate money, beginning in Fiscal Year 2023-2024, to
fiscally constrained counties to offset any reductions in ad valorem tax revenue resulting from
the homestead exemption provided by the proposed constitutional amendment. The amount
appropriated to each county is based on the county’s proportion of the total reduction and is
calculated as 95 percent of the estimated reduction in taxable value multiplied by the lesser of the
2023 millage rate or the millage rate for each taxing jurisdiction in the current year.
The bill authorizes the Department of Revenue to adopt emergency rules to administer the bill.
The bill will take effect on the effective date of the constitutional amendment proposed by
CS/SJR 1746 and first applies to the 2023 tax roll.
25
Section 943.10(1), F.S.: “Law enforcement officer” means any person who is elected, appointed, or employed full time by
any municipality or the state or any political subdivision thereof; who is vested with authority to bear arms and make arrests;
and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic, or
highway laws of the state. This definition includes all certified supervisory and command personnel whose duties include, in
whole or in part, the supervision, training, guidance, and management responsibilities of full-time law enforcement officers,
part-time law enforcement officers, or auxiliary law enforcement officers but does not include support personnel employed
by the employing agency.
26
Section 943.10(2), F.S.: “Correctional officer” means any person who is appointed or employed full time by the state or
any political subdivision thereof, or by any private entity which has contracted with the state or county, and whose primary
responsibility is the supervision, protection, care, custody, and control, or investigation, of inmates within a correctional
institution; however, the term “correctional officer” does not include any secretarial, clerical, or professionally trained
personnel.
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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. However, the mandates
requirements do not apply to laws having an insignificant impact,27, 28 which is $2.3
million for Fiscal Year 2022-2023.29
The Revenue Estimating Conference determined that the reduction to local property tax
revenue will be $83.8 million beginning in Fiscal Year 2023-2024 if the joint resolution
is approved by the voters. Therefore, the mandates provisions of Art. VII, s. 18 of the
Florida Constitution may apply.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The bill does not create or raise a state tax or fee. Therefore, the requirements of Art. VII,
s. 19 of the Florida Constitution do not apply.