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: SJR 976
INTRODUCER: Senator Perry
SUBJECT: Reduction of Assessed Value
DATE: January 19, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. FT
3. AP
I. Summary:
SJR 976 proposes an amendment to the Florida Constitution to permit a county to provide ad
valorem tax relief to portions of homestead property utilized for the purpose of providing living
quarters for parents or grandparents. Currently the Florida Constitution permits a reduction in
assessed value only where a property has been improved in order to provide such housing.
If adopted by the Legislature, the proposed amendment will be submitted to Florida’s electors for
approval or rejection at the next general election in November 2024.
If approved by at least 60 percent of the electors, the proposed amendment will take effect on
January 1, 2025.
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 authority and then applies relevant exclusions, assessment
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).
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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
Property Tax Exemptions for Homesteads
Statewide Homestead Exemption
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.6 An additional
$25,000 exemption applies to homestead property value between $50,000 and $75,000.7 This
exemption does not apply to ad valorem taxes levied by school districts.
Additional Homestead Exemption for Living Quarters for Parents and Grandparents
Counties may provide a reduction in assessed value for living quarters constructed on homestead
property for the purpose of providing living quarters for the property owner’s or property
owner’s spouse’s parents or grandparents over 62 years of age, commonly referred to as “granny
flats.”8 This exemption requires new improvements to a home intended to house parents or
grandparents; the use of existing living quarters on a property for such purposes will not trigger
the exemption. The assessed value of the property may be reduced by the value resulting from
the construction of the granny flat, not exceeding twenty percent of the total assessed value of
the property.9
III. Effect of Proposed Changes:
The joint resolution proposes an amendment to the Florida Constitution to permit a county to
provide ad valorem tax relief to portions of homestead property utilized for the purpose of
providing living quarters for parents or grandparents.
If adopted by the Legislature, the proposed amendment will be submitted to Florida’s electors for
approval or rejection at the next general election in November 2024.
If approved by at least 60 percent of the electors, the proposed amendment will take effect on
January 1, 2025.
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
FLA. CONST. art VII, s. 6(a) and s. 196.031, F.S.
7
Section 196.031(1)(b), F.S.
8
FLA. CONST. art. VII, s. 4(f) and s. 193.703, F.S.
9
Section 193.703(4), F.S.
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IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
The mandate provisions in Article VII, section 18 of the Florida Constitution, do not
apply to joint resolutions.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
Article XI, s. 1 of the Florida Constitution authorizes the Legislature to propose
amendments to the Florida Constitution by joint resolution approved by a three-fifths
vote of the membership of each house. Article XI, s. 5(a) of the Florida Constitution
requires the amendment be placed before the electorate at the next general election10 held
more than 90 days after the proposal has been filed with the Secretary of State or at a
special election held for that purpose. Constitutional amendments submitted to the
electors must be printed in clear and unambiguous language on the ballot.11
Article XI, s. 5(d) of the Florida Constitution requires proposed amendments or
constitutional revisions to be published in a newspaper of general circulation in each
county where a newspaper is published. The amendment or revision must be published
once in the 10th week and again in the 6th week immediately preceding the week the
election is held.
Article XI, s. 5(e) of the Florida Constitution requires approval by 60 percent of voters
for a constitutional amendment to take effect. The amendment, if approved, becomes
effective on the first Tuesday after the first Monday in January following the election, or
on such other date as may be specified in the amendment.
10
Section 97.021(16), F.S., defines “general election” as an election held on the first Tuesday after the first Monday in
November in the even-numbered years, for the purpose of filling national, state, county, and district offices and for voting on
constitutional amendments not otherwise provided for by law.
11
Section 101.161(1), F.S.
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V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
Article XI, Section 5(d) of the Florida Constitution requires proposed amendments or
constitutional revisions to be published in a newspaper of general circulation in each
county where a newspaper is published. The amendment or revision must be published in
the 10th week and again in the 6th week immediately preceding the week the election is
held.
The Division of Elections (division) within the Department of State pays for publication
costs to advertise all constitutional amendments in both English and Spanish, 12 typically
paid from non-recurring General Revenue funds.13 Accurate cost estimates for the next
constitutional amendment advertising cannot be determined until the total number of
amendments to be advertised is known and updated quotes are obtained from
newspapers.
There is an unknown additional cost for the printing and distributing of the constitutional
amendments, in poster or booklet form, in English and Spanish, for each of the 67
Supervisors of Elections to post or make available at each polling room or each voting
site, as required by s. 101.171, F.S. Historically, the division has printed and distributed
booklets that include the ballot title, ballot summary, text of the constitutional
amendment, and, if applicable, the financial impact statement. Beginning in 2020, the
summary of such financial information statements was also included as part of the
booklets.14
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This resolution substantially amends section 4, Article VII of the Florida Constitution.
12
Pursuant to Section 203 of the Voting Rights Act (52 U.S.C.A. § 10503).
13
See Ch. 2022-156, Specific Appropriation 3137, Laws of Fla.
14
Section 100.371(13)(e)4., F.S. See also Ch. 2019-64, s. 3, Laws of Fla.
BILL: SJR 976 Page 5
This resolution also creates a new section in Article XII of the Florida Constitution.
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.