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 Community Affairs
BILL: SB 380
INTRODUCER: Senator Hooper
SUBJECT: Disclosure of Estimated Ad Valorem Taxes
DATE: January 8, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. FT
3. AP
I. Summary:
SB 380 requires that online listings of residential property include an estimate of property taxes
the purchaser would pay based on a formula developed by the Florida Department of Revenue
(DOR). A listing platform must alternatively provide a link to the respective county property
appraiser’s website for a more detailed property tax estimate for the residential parcel.
The bill further requires each property appraiser to provide DOR with information needed to
calculate such an estimate. DOR must publish this information alongside a formula to calculate
an estimate of ad valorem taxes annually.
The bill takes effect July 1, 2024.
II. Present Situation:
Online Real Property Listing Platforms
The marketplace for real estate has greatly shifted over time in favor of online listings of
property; more than half of all homebuyers in 2022 found the home they purchased on the
internet.1 There are many large online platforms which list real estate, the most familiar of which
being Zillow, Realtor.com, Trulia, and Redfin. In addition to large platforms, many individual
realtors have websites which include listings of real estate for sale.2
1
National Ass’n of Realtors, Quick Real Estate Statistics, Nov. 3, 2022, available at https://www.nar.realtor/research-and-
statistics/quick-real-estate-statistics (last visited Jan. 5, 2024).
2
Id. The National Association of Realtors posits that it has more than 1,600,000 members, 70% of brokers and sales agents
have a website, and 81% of their members have their own listings on their website.
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Online real property listing platforms are not unified in the information displayed to the user.
Some, but not all, include the property’s public tax history, a link to the county property
appraiser’s website, and an estimate of property taxes.3
Property Tax Estimates
Estimating an individual’s tax estimate requires many pieces of information. These might
include the parcel’s millage rate, applicable exemptions, the property’s value, applicable
classified property uses, and other assessments on the property.4 While there is no requirement to
this effect, some property appraisers include on their website a tool or worksheet to assist
homeowners in estimating property taxes.5
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 tax is based on the taxable value of property as of
January 1 of each year.6 The property appraiser annually determines the “just value”7 of property
within the taxing jurisdiction and then applies relevant exclusions, assessment limitations, and
exemptions to determine the property’s “taxable value.”8 Tax bills are mailed in November of
each year based on the previous January 1 valuation, and payment is due by March 31 of the
following year.
The Florida Constitution prohibits the state from levying ad valorem taxes,9 and it limits the
Legislature’s authority to provide for property valuations at less than just value, unless expressly
authorized.10
The just valuation standard generally requires the property appraiser to consider the highest and
best use of property;11 however, the Florida Constitution authorizes certain types of property to
be valued based on their current use (classified use assessments), which often results in lower
3
For example, Zillow’s listings include all of the listed information, and the website’s mortgage calculator includes estimated
property taxes based on the home’s value. https://www.zillowhomeloans.com/calculators/mortgage-calculator/ (last visited
Jan. 5, 2024).
4
Florida Department of Revenue, Property Tax Information for First-Time Florida Homebuyers, available at
https://floridarevenue.com/property/Documents/pt107.pdf (last visited Jan. 5, 2024).
5
See, e.g., Miami-Dade County, Tax Estimator, available at
https://www.miamidade.gov/Apps/PA/PAOnlineTools/Taxes/TaxEstimator.aspx (last visited Jan. 5, 2024).
6
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.
7
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).
8
See s. 192.001(2) and (16), F.S.
9
FLA. CONST. art. VII, s. 1(a).
10
See FLA. CONST. art. VII, s. 4.
11
Section 193.011(2), F.S.
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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;12 land used for conservation purposes;13 historic
properties when authorized by the county or municipality;14 and certain working waterfront
property.15
Property Tax Exemptions for Homesteads
A homestead exemption is a reduction of assessed value, and therefore tax liability, based on the
individual’s maintaining a property as their primary residence. 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.16 An additional $25,000 exemption applies to
homestead property value between $50,000 and $75,000.17 This exemption does not apply to ad
valorem taxes levied by school districts.
The Florida Constitution authorizes various additional homestead exemptions, either directly
through legislation or through statutory permission for local governments to enact. These
homesteads are based largely on the status or profession of the person maintaining the homestead
property.18
III. Effect of Proposed Changes:
The bill amends s. 689.261, F.S., to provide that online listings of residential property visible on
any public-facing online real property listing platform, including websites and web or mobile
applications, must include an estimate of ad valorem taxes. This estimate must use a formula
produced by the Florida Department of Revenue which calculates the ad valorem tax that would
be due, both with and without the homestead exemption, if the purchaser were taxed on the
listing price of the property at current millage rates. The calculated tax must be identified as the
purchaser’s property tax estimate and must specify that the estimate does not represent actual
taxes due for the property. The platform must explain that the jurisdiction of applicable taxing
authorities may vary within a county and that the estimate does not include applicable non-ad
valorem assessments, exemptions, discounts, or other benefits. The tool may not display actual
taxes previously paid by the seller.
The bill further provides that each property appraiser shall annually provide the DOR with the
information needed to calculate such an estimate, including the county name, tax district code,
and applicable summary millage rates. DOR must publish this information alongside a formula
to calculate an estimate of ad valorem taxes annually by December 15. DOR may adopt rules to
implement this provision.
12
FLA. CONST. art. VII, s. 4(a).
13
FLA. CONST. art. VII, s. 4(b).
14
FLA. CONST. art. VII, s. 4(e).
15
FLA. CONST. art. VII, s. 4(j).
16
FLA. CONST. art VII, s. 6(a) and s. 196.031, F.S.
17
Section 196.031(1)(b), F.S.
18
See, e.g., FLA. CONST. art. VII, s. 6(d); Sections 196.081, 196.082, 196.091, and 196.102, F.S.
BILL: SB 380 Page 4
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, section 18 (a) of the Florida Constitution provides in part that a county or
municipality may not be bound by a general law requiring a county or municipality to
spend funds or take an action that requires the expenditure of funds unless certain
specified exemptions or exceptions are met. The bill requires that property appraisers
submit certain information to DOR annually, which would likely not incur additional
expense for local governments.
Article VII, section 18 (d) provides eight exemptions, which, if any single one is met,
exempts the law from the limitations on mandates. Laws having an “insignificant fiscal
impact” are exempt from the mandate requirements, which for Fiscal Year 2024-2025 is
forecast at approximately $2.3 million.19,20 Any local government costs associated with
the bill are speculative and not readily estimable for purposes of determining whether the
exemption for bills having an insignificant fiscal impact applies.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
19
FLA. CONST. art. VII, s. 18(d).
20
An insignificant fiscal impact is the amount not greater than the average statewide population for the applicable fiscal year
times $0.10. See Florida Senate Committee on Community Affairs, Interim Report 2012-115: Insignificant Impact, (Sept.
2011), available at http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last visited Jan.
5, 2024).
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B. Private Sector Impact:
Those operating online real property listings may incur minor expenses in implementing
the tax estimator tool.
C. Government Sector Impact:
The DOR analysis for a comparable bill with similar effects, HB 1097 (2023), indicates
no fiscal impact as a result of the bill.21 While the DOR and local property appraisers are
obligated to take certain actions, these are not likely to incur additional expense.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 689.261 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
21
Florida Department of Revenue, 2023 Agency Legislative Bill Analysis HB 1097, on file with Senate Committee on
Community Affairs.