Bill Summary – FastDemocracy

HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:       CS/CS/HJR 1 Additional Homestead Property Tax Exemption for Specified Critical Public
Service Workforce
SPONSOR(S): State Affairs Committee, Ways & Means Committee, Tomkow and others
TIED BILLS: CS/HB 1563 IDEN./SIM. BILLS: CS/SJR 1746
    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF
    1) Ways & Means Committee                                   15 Y, 0 N, As CS        Davis              Aldridge
    2) Local Administration & Veterans Affairs                  18 Y, 0 N               Darden             Miller
       Subcommittee
    3) State Affairs Committee                                  20 Y, 1 N, As CS        Darden             Williamson
                                               SUMMARY ANALYSIS
The Florida Constitution requires all property to be assessed at just value (fair market value) as of January 1 of
each year for purposes of ad valorem taxation. Ad valorem assessments are used to calculate property taxes
that fund counties, municipalities, district school boards, and special districts. The taxable value against which
local governments levy tax rates each year reflects the just value as reduced by applicable limitations and
exemptions allowed by the Florida Constitution. One such exemption is on the first $25,000 of assessed value
of a homestead property, which is exempt from all taxes. A second homestead exemption is on the value
between $50,000 and $75,000, which is exempt from all taxes other than school district taxes.
This joint resolution proposes an amendment to the Florida Constitution to authorize the Legislature to provide
by general law, and subject to conditions specified therein, an additional homestead exemption of $50,000 on
the assessed value between $100,000 and $150,000 for all taxes other than school district taxes for specified
critical public service employees.
Subject to approval by 60 percent of voters during the 2022 general election or earlier special election, the
amendment proposed in the joint resolution will take effect on January 1, 2023.
The Revenue Estimating Conference estimated that the joint resolution will not have an impact on local
government revenue as the amendment it proposes is subject to voter approval and is not self-executing.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0001d.SAC
DATE: 2/17/2022
                                                            FULL ANALYSIS
                                                    I. SUBSTANTIVE ANALYSIS
    A. EFFECT OF PROPOSED CHANGES:
         Current Situation
         The Florida Constitution reserves ad valorem taxation to local governments and prohibits the state from
         levying ad valorem taxes on real and tangible personal property. 1 Ad valorem taxes are annual taxes
         levied by counties, cities, school districts, and certain special districts. These taxes are based on the
         just value (fair market value) of real and tangible personal property as determined by county property
         appraisers on January 1 of each year.2 The just value may be subject to limitations, such as the “save
         our homes” limitation on homestead property assessment increases. 3 The value arrived at after
         accounting for applicable limitations is known as the assessed value. Property appraisers then
         calculate taxable value by reducing the assessed value in accordance with any applicable exemptions,
         such as the exemptions for homestead property.4 Each year, local governing boards levy millage rates
         (i.e. tax rates) on taxable value to generate the property tax revenue contemplated in their annual
         budgets.
         The homestead exemption is specified in Art. VII, s. 6 of the Florida Constitution, which provides that
         every person who holds legal or equitable title to real estate and uses said real estate as a permanent
         residence for themselves or a legal or natural dependent is entitled to exemption from taxes on the first
         $25,000 of assessed value.5 In 2008, Florida voters amended this provision to include an additional
         $25,000 exemption from all taxes other than school district taxes on assessed value greater than
         $50,000.6 The Florida Constitution also vests the Legislature with authority to enact general law
         establishing the manner by which individuals qualify for the exemption. Accordingly, s. 196.031(1)(b),
         F.S., automatically grants the additional, non-school homestead exemption to every individual who
         qualifies for the initial homestead exemption on the first $25,000 in assessed value. An additional
         homestead exemption is not currently in place which benefits classroom teachers, law enforcement
         officers, correctional officers, firefighters, emergency medical technicians, paramedics, child welfare
         services professionals, active duty military personnel, or members of the Florida National Guard.
         Effect of Proposed Changes
         The joint resolution proposes to add s. 6(g) to Art. VII of the Florida Constitution to authorize the
         Legislature to provide by general law an additional homestead exemption from all ad valorem taxes,
         other than school district levies, on the assessed value from $100,000 to $150,000 of homestead
         property owned by classroom teachers, law enforcement officers, correctional officers, firefighters,
         emergency medical technicians, paramedics, child welfare services professionals, active duty military
         members of the United States Armed Forces, and members of the Florida National Guard.
         Approving the joint resolution would place the amendment on the ballot during either the 2022 general
         election or an earlier special election held for the purpose of proposing this amendment to the voters. 7
         The proposed amendment must be approved by at least 60 percent of electors voting on the measure.
         If approved by the voters, the amendment will take effect on January 1, 2023.
                               II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
    A. FISCAL IMPACT ON STATE GOVERNMENT:
1 Art. VII, s. 1(a), Fla. Const.
2 Art. VII, s. 4, Fla. Const.
3 S. 193.155(1), F.S.
4 S. 196.031, F.S.
5 Art. VII, s. 6, Fla. Const.
6 Id.
7 Note: Pursuant to Article XI, Section 5 of the Florida Constitution, placing the joint resolution on a special elec tion ballot would require
the legislature to pass a general law by 3/4th vote of each house.
STORAGE NAME: h0001d.SAC                                                                                                               PAGE: 2
DATE: 2/17/2022
           1. Revenues:
                None.
           2. Expenditures:
                Article XI, s. 5(d) of the Florida Constitution requires publication of a proposed amendment in a
                newspaper of general circulation in each county. The Division of Elections within the Department of
                State must advertise the full text of the amendment twice in a newspaper of general circulation in
                each county where the amendment will appear on the ballot. The Division must also provide eac h
                supervisor of elections with either booklets or posters displaying the full text of each proposed
                amendment.8 The Division has not estimated the costs to advertise the amendment and produce
                the booklets or posters. These costs are normally paid from non-recurring General Revenue Funds.
       B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
           1. Revenues:
                The Revenue Estimating Conference estimated that the joint resolution will not have an impact on
                local government revenue as the amendment it proposes is subject to voter approval and is not
                self-executing.
           2. Expenditures:
                None.
       C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
           None, because the amendment proposed by the joint resolution is subject to voter approval and is not
           self-executing.
       D. FISCAL COMMENTS:
           None.
                                                   III. COMMENTS
       A. CONSTITUTIONAL ISSUES:
           1. Applicability of Municipality/County Mandates Provision:
              Not applicable. The mandates provision applies only to general laws, not to a joint resolution
              proposing to amend the Florida Constitution.
           2. Other:
              None.
       B. RULE-MAKING AUTHORITY:
           None.
       C. DRAFTING ISSUES OR OTHER COMMENTS:
           None.
                             IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
       On January 31, 2022, the Ways & Means Committee adopted an amendment and reported the joint
       resolution favorably as amended. The amendment limits the proposed additional homestead exemption to
8   S. 101.171, F.S.
STORAGE NAME: h0001d.SAC                                                                                       PAGE: 3
DATE: 2/17/2022
   non-school taxes and provides that the exemption applies to real estate wherein another or others legally
   or naturally dependent upon the owner maintain permanent residence, consistent with the existing
   homestead exemptions in Art. VII, s. 6(a), Fla. Const.
   On February 17, 2022, the State Affairs Committee adopted a proposed committee substitute (PCS) and
   reported the joint resolution favorably as a committee substitute. The PCS added emergency medical
   technicians and paramedics to the list of critical public service employees eligible for the proposed
   additional homestead exemption.
   This analysis is drafted to the joint resolution as amended by the State Affairs Committee.
STORAGE NAME: h0001d.SAC                                                                                PAGE: 4
DATE: 2/17/2022