HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1563 Homestead Property Tax Exemptions for Classroom Teachers, Law
Enforcement Officers, Firefighters, Child Welfare Professionals and Servicemembers
SPONSOR(S): State Affairs Committee, Ways & Means Committee, Tomkow and others
TIED BILLS: CS/HJR 1 IDEN./SIM. BILLS: CS/SB 1748
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee 14 Y, 0 N, As CS Davis Aldridge
2) Local Administration & Veterans Affairs 18 Y, 0 N Darden Miller
Subcommittee
3) State Affairs Committee 19 Y, 1 N, As CS Darden Williamson
SUMMARY ANALYSIS
The Florida Constitution requires all property to be assessed at just 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 bill implements the amendment to Article VII, Section 6(g) of the Florida Constitution, proposed in CS/HJR
1, which authorizes the Legislature by general law to provide an additional $50,000 homestead exemption on
the assessed value between $100,000 and $150,000 for specified critical public service employees. This bill
limits the exemption to all taxes other than school district taxes. Specified employees eligible for the exemption
include classroom teachers, law enforcement officers, correctional officers, firefighters, emergency medical
technicians, paramedics, child welfare services professionals, active duty members of the United States Armed
Forces, and members of the Florida National Guard.
This bill also directs the Legislature to appropriate funds to offset ad valorem tax revenue losses in fiscally
constrained counties, as defined in s. 218.67(1), F.S., attributable to the reduction in property tax base caused
by the additional homestead exemption. There are presently 29 fiscally constrained counties within the state.
The Revenue Estimating Conference estimated that if the constitutional amendment is approved by the
voters, this bill would have a recurring negative impact on non-school local government revenues in Fiscal
Year (FY) 2022-23 of $80.9 million, growing to $93.6 million in FY 2026-27.
This bill takes effect on the same day that the constitutional amendment proposed by HJR 1, or a similar joint
resolution, takes effect, if such amendment is approved by the voters, which is January 1, 2023.
This bill may be a county or municipality mandate requiring a two-thirds vote of the membership of the
House. See Section III.A.1 of the analysis.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1563d.SAC
DATE: 2/17/2022
 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Homestead Exemption
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 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 the
taxable value to generate the property tax revenue contemplated in their annual budgets.
The homestead exemption is specified in Article VII, section 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 the assessed value
greater than $50,000.6 The Florida Constitution also vests the Legislature with authority to enact
general law establishing the manner in 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 that 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.
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. 7 A rural area of opportunity is a rural
community8 or region that has been adversely affected by an extraordinary economic event, a severe
distress, or a natural disaster or that presents a unique economic development opportunity of regional
impact, as designated by the Governor.9 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, Liberty, Madison, Okeechobee, Putnam,
Suwannee, Taylor, Union, Wakulla and Washington.10 Under current law, the Legislature annually
appropriates money to these counties to offset ad valorem tax revenue reductions caused by various
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 S. 218.67(1), F.S.
8 A “rural community” as the term relates to counties means a county with a population of 75,000 or fewer, or a county with a p opulation
of 125,000 or fewer which is contiguous to a county with a population of 75,000 or fewer. See s. 288.0656(2)(e), F.S.
9 S. 288.0656(2)(d), F.S.
10 Florida Department of Revenue, List of Fiscally Constrained Counties, http://floridarevenue.com/property/Documents/fcco081210.pdf
(last visited 01/31/2022)
STORAGE NAME: h1563d.SAC PAGE: 2
DATE: 2/17/2022
 amendments in the Florida Constitution.11 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.12
Effect of Proposed Changes
This bill implements the proposed constitutional amendment in CS/HJR 1 by providing an additional
homestead exemption on the assessed value between $100,000 and $150,000 for all taxes, other than
school district taxes, for classroom teachers, law enforcement officers, correctional officers , firefighters,
emergency medical technicians, paramedics, child welfare services professionals, active duty members
of the United States Armed Forces, and members of the Florida National Guard.
Beginning in Fiscal Year (FY) 2023-2024, the bill directs the Legislature to annually appropriate funds
to fiscally constrained counties for the purpose of offsetting the decrease in ad valorem tax revenues
they would otherwise experience as a result of the addition of Article VII, section 6(g) of the Florida
Constitution. The method for applying and calculating distributions is the same as that used in s .
218.125, F.S.
B. SECTION DIRECTORY:
Section 1: Amends s. 196.011, F.S., specifying exemptions under s. 196.077, F.S., are subject to the
annual application for exemption unless waived by the county governing body.
Section 2: Creates s. 196.077, F.S., providing an additional homestead exemption from non-school
taxes for classroom teachers, law enforcement officers, firefighters, child welfare
professionals, and servicemembers.
Section 3: Amends s. 218.125, F.S., requiring the legislature to appropriate moneys to offset
reductions in tax revenue in fiscally constrained counties resulting from the additional
exemption.
Section 4: Authorizes the Department of Revenue to adopt emergency rules to administer the act.
Section 5: Provides that the amendments made to s. 196.011, F.S., and the creation of s. 196.077,
F.S., first apply to the 2022 tax roll.
Section 6: Provides that the bill takes effect on the same date as HJR 1 or a similar joint resolution, if
such resolution is approved by the voters at the next general election or an earlier special
election authorized to approve the resolution.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
If the bill becomes effective and the Legislature makes appropriations as directed by the bill, staff
estimates that state expenditures sufficient to fully offset the impacts to fiscally constrained counties
of the additional homestead exemption will be approximately $4.6 million annually.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
11 See generally s. 218.125, F.S.
12 S. 218.125(2), F.S.
STORAGE NAME: h1563d.SAC PAGE: 3
DATE: 2/17/2022
 1. Revenues:
The Revenue Estimating Conference (REC) determined that the revenue impact of the bill on local
governments is zero/negative indeterminate because the bill is contingent upon passage of the
constitutional amendment proposed by HJR 1. If the constitutional amendment does not pass, the
impact of the bill is zero. If the constitutional amendment is approved by the voters, the REC
estimated that the bill would have a recurring negative impact on non-school property tax revenues
in FY 2022-23 of $80.9 million, growing to $93.6 million in FY 2026-27.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
If HJR 1 is approved by at least 60 percent of the voters and this bill goes into effect, homestead
property owners who are 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, or members of the Florida National Guard
will realize lower property taxes than would otherwise occur.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, subsection 18(b) of the Florida Constitution
may apply because this bill creates an additional ad valorem homestead exemption, which may
reduce the authority of municipalities and counties to raise revenue. This bill does not appear to
qualify under any exemption or exception. If the bill does qualify as a mandate, final passage must
be approved by two-thirds of the membership of each house of the Legislature.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
This bill authorizes the Florida Department of Revenue to adopt emergency rules to administer the act.
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 bill
favorably as amended. The amendment directs the Legislature to appropriate funds to offset ad valorem
tax revenue losses in fiscally constrained counties attributable to the reduction in property tax base caused
by the additional homestead exemption.
On February 17, 2022, the State Affairs Committee adopted a proposed committee substitute (PCS) and
reported the bill favorably as a committee substitute. The PCS added emergency medical technicians and
paramedics to the list of critical public service employees eligible for the additional homestead exemption.
STORAGE NAME: h1563d.SAC PAGE: 4
DATE: 2/17/2022
 This analysis is drafted to the bill as amended by the State Affairs Committee.
STORAGE NAME: h1563d.SAC PAGE: 5
DATE: 2/17/2022


Statutes affected:
H 1563 c1: 218.125
H 1563 c2: 218.125
H 1563 er: 218.125