HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1379 Property Assessments for Elevated Properties
SPONSOR(S): State Affairs Committee, Environment, Agriculture & Flooding Subcommittee, Chaney, Aloupis
and others
TIED BILLS: HJR 1377 IDEN./SIM. BILLS: CS/CS/SB 1186
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Environment, Agriculture & Flooding 17 Y, 0 N, As CS Melkun Moore
Subcommittee
2) Ways & Means Committee 15 Y, 0 N Curry Aldridge
3) State Affairs Committee 21 Y, 0 N, As CS Melkun Williamson
SUMMARY ANALYSIS
Local governments impose and collect ad valorem taxes on real and tangible personal property within Florida.
All property in Florida is subject to taxation and must be assessed at just value unless the Florida Constitution
authorizes an exemption or exception. Under the homestead exemption, persons with legal and equitable title
in real property on which they or their dependent permanently reside may have a portion of the just value of
their property exempted from taxation.
The Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program,
which was created to offer federally subsidized flood insurance to property owners and to encourage land-use
controls in floodplains. Once an owner or developer makes a decision to construct, add to or substantially
improve a building in a flood hazard area, certain requirements intended to minimize future flood damage must
be satisfied.
House Joint Resolution 1377 (2021), to which this bill is tied, proposes an amendment to Article VII, section
4(i) of the Florida Constitution to authorize the Legislature to prohibit the consideration of any change or
improvement to real property used for residential purposes made to improve the property’s resistance to flood
damage.
The bill specifies that changes, additions, or improvements that replace all or a portion of a homestead or
nonhomestead residential property for the purpose of voluntarily elevating the property do not increase the
property's assessed value if:
 The square footage of the property after the voluntary elevation does not exceed 1,500 square feet or
does not exceed 110 percent of the square footage of the property before the elevation; and
 At the time the voluntary elevation commenced, the property was not deemed uninhabitable under state
or local law; all ad valorem taxes, special assessments, utility charges, and other government-imposed
liens against the property had been paid; and the property did not comply with FEMA’s National Flood
Insurance Program requirements and Florida Building Code elevation requirements and was elevated
in compliance with such requirements.
The Revenue Estimating Conference has estimated 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 1377. See Fiscal Analysis.
The bill takes effect on the same date that HJR 1377, or a similar joint resolution, is approved by the electors at
the general election held in November 2022 or at an earlier special election specifically authorized for that
purpose. If approved by the voters, the joint resolution and this bill will take effect on January 1, 2023.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Property Taxes
The Florida Constitution reserves ad valorem taxation on real and tangible personal property to local
governments and prohibits the state from levying ad valorem taxes on such property.1 The ad valorem
tax is an annual tax levied by counties, cities, school districts, and some special districts based on the
value of real and tangible personal property as of January 1 of each year.2 The Florida Constitution
requires all property to be assessed at just value for ad valorem tax purposes3 and provides for
specified assessment limitations, property classifications, and exemptions.4 After the property appraiser
considers any assessment limitation or use classification affecting the just value of a property, an
assessed value is produced. The assessed value is then reduced by any exemptions to produce the
taxable value.5
Property Tax Exemptions
Unless expressly exempted from taxation, all real and personal property and leasehold interests in the
state are subject to taxation.6 The Florida Constitution limits the Legislature’s authority to grant an
exemption from taxes7 and any modifications to existing ad valorem tax exemptions must be consistent
with the constitutional provision authorizing the exemption.8
Changes, Additions, or Improvements to Real Property
A homestead9 property’s tax assessment cannot be increased in one year by more than the greater of
three percent or the percent change in the Consumer Price Index, except under certain
circumstances.10 Similarly, a nonhomestead residential property’s tax assessment cannot increase by
more than 10 percent each year, except that the same exceptions that apply to homestead properties
also apply to nonhomestead residential properties.11 One such exception is that changes, additions,
and improvements to homestead or nonhomestead residential property are assessed at market value,
which can increase the total assessment by any amount.12
1
Art. VII, s. 1(a), Fla. Const.
2
Section 192.001(12), F.S., defines “real property” as land, buildings, fixtures, and all other improvements to land. The terms “land,”
“real estate,” “realty,” and “real property” may be used interchangeably. Section 192.001(11)(d), F.S., defines “tangible personal
property” as all goods, chattels, and other articles of value (but does not include the vehicular items enumerated in article VII, section
1(b) of the Florida Constitution and elsewhere defined) capable of manual possession and whose chief value is intrinsic to the article
itself.
3
Art. VII, s. 4, Fla. Const.
4
Art. VII, ss. 3, 4, and 6, Fla. Const.
5
Section 196.031, F.S.
6
Section 196.001, F.S.; see also Sebring Airport Authority v. McIntyre, 642 So. 2d 1072, 1073 (Fla. 1994), noting exemptions are
strictly construed against the party claiming them.
7
Archer v. Marshall, 355 So. 2d 781, 784 (Fla. 1978).
8
Sebring Airport Auth. v. McIntyre, 783, So. 2d 238, 248 (Fla. 2001); Archer v. Marshall, 355 So. 2d 781, 784. (Fla. 1978); Am Fi
Inv. Corp v. Kinney, 360 So. 2d 415 (Fla. 1978). See also Sparkman v. State, 58 So. 2d 431, 432 (Fla. 1952).
9
The term “homestead” means a property held by every person who has the legal or equitable title to real estate and maintains thereon
the permanent residence of the owner, or another legally or naturally dependent upon the owner, that is exempt from taxation thereon,
except assessments for special benefits, up to the assessed valuation of $25,000 and, for all levies other than school district levies, on
the assessed valuation greater than $50,000 and up to $75,000, upon establishment of right thereto in the manner prescribed by law.
Art. VII, s. 6(a), Fla. Const.; s. 192.001(8), F.S.
10
Art. VII, s. 4(d), Fla. Const.
11 Art. VII, s. 4(h), Fla. Const.
12
Sections 193.155(4)(a) and 193.1554(6)(a), F.S.
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 However, current law specifies that changes, additions, or improvements that replace all or a portion of
homestead or nonhomestead residential property13 damaged or destroyed by misfortune or calamity
may not increase the property’s assessed value when the square footage of the property as changed or
improved does not exceed 110 percent of the square footage of the property before the damage or
destruction.14 Additionally, the property’s assessed value may not increase if the total square footage of
the homestead property as changed or improved does not exceed 1,500 square feet.15
Building Elevation Requirements
Hurricanes and other storms that result in flooding have caused billions of dollars in damage across all
parts of Florida. Local jurisdictions throughout the state recognize, plan for, and manage development
in flood hazard areas. The Federal Emergency Management Agency (FEMA) administers the National
Flood Insurance Program, which was created to offer federally subsidized flood insurance to property
owners and to encourage land-use controls in floodplains.16 Communities eligible to participate in the
National Flood Insurance Program Community Rating System receive discounts on flood insurance
premiums.17 To participate in the National Flood Insurance Program, communities agree to regulate all
development in flood hazard areas mapped by FEMA.18
A Flood Insurance Rate Map is an official map of a community on which FEMA has delineated both the
special hazard areas and the risk premium zones applicable to the community.19 These maps have
many applications relevant to resilience planning, including communicating base flood elevations and
flood risk, establishing special flood hazard areas where flood insurance is required, and setting local
floodplain and building standards.20
When an owner or developer constructs, adds to, or substantially improves a building in a flood hazard
area, certain requirements intended to minimize future flood damage must be satisfied. These
provisions are found in the Florida Building Code (FBC) and require design professionals and builders
to address requirements related to elevation, wave loads, flood velocity, and debris impact, along with
other applicable load and design requirements.21
House Joint Resolution 1377 (2021)
House Joint Resolution 1377 (2021), to which this bill is tied, proposes an amendment to Article VII,
section 4(i) of the Florida Constitution to authorize the Legislature to prohibit the consideration of any
change or improvement to real property used for residential purposes made to improve the property’s
resistance to flood damage. If approved by the voters, the joint resolution will be effective on January 1,
2023.
13
The term “nonhomestead residential property” means residential real property that contains nine or fewer dwelling units, including
vacant property zoned and platted for residential use. Section 193.1554(1), F.S.
14
Sections 193.155(4)(b) and 193.1554(6)(b), F.S.
15
Id.
16
42 U.S.C. § 4001 et seq.; 44 C.F.R. Ch. I, Subchap. B.; FEMA, Flood Insurance, available at https://www.fema.gov/national-flood-
insurance-program (last visited Feb. 18, 2021).
17
FEMA, National Flood Insurance Program Community Rating System, available at https://www.fema.gov/floodplain-
management/community-rating-system (last visited Feb. 18, 2021).
18
Build a Safer Florida Inc., Flood Resistant Construction and the 6th Edition Florida Building Code (2017), available at
https://floridabuilding.org/fbc/thecode/2017-6edition/BASF_2017_flood_061217.pdf (last visited Mar. 2, 2021).
19
44 C.F.R. § 59.1.
20
FEMA, Flood Maps, available at https://www.fema.gov/media-library-data/1516468489259-
8eb4bfef27ab35159b2f140a2926e809/What_Goes_Into_a_Flood_Map.pdf (last visited Feb. 18, 2021); Florida Division of Emergency
Management, Enhanced State Hazard Mitigation Plan, State of Florida (2018), 102-103, available at
https://www.floridadisaster.org/globalassets/dem/mitigation/mitigate-fl--shmp/shmp-2018-full_final_approved.6.11.2018.pdf (last
visited Mar. 10, 2021); Florida Department of Environmental Protection, Florida Adaptation Planning Guidebook: Glossary (2018),
40-41, available at https://floridadep.gov/sites/default/files/AdaptationPlanningGuidebook.pdf (last visited Mar. 10, 2021).
21
Build a Safer Florida Inc., Flood Resistant Construction and the 6th Edition Florida Building Code (2017), available at
https://floridabuilding.org/fbc/thecode/2017-6edition/BASF_2017_flood_061217.pdf (last visited Mar. 2, 2021).
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 Effect of the Bill
The bill specifies that changes, additions, or improvements that replace all or a portion of a homestead
or nonhomestead residential property for the purpose of voluntarily elevating the property do not
increase the property's assessed value if:
 The square footage of the property after the voluntary elevation does not exceed 1,500 square
feet or does not exceed 110 percent of the square footage of the property before the elevation;
and
 At the time the voluntary elevation commenced, the property was not deemed uninhabitable in
part or in whole under state or local law; all ad valorem taxes, special assessments, county or
municipal utility charges, and other government-imposed liens against the property had been
paid; and the property did not comply with FEMA’s National Flood Insurance Program
requirements and Florida Building Code elevation requirements and was elevated in compliance
with such requirements.
If a voluntary elevation results in the property exceeding more than 110 percent of its previous square
footage, the assessed value must be increased by the value of that portion in excess of 110 percent of
the previous area. Conforming areas below an elevated structure designated only for parking, storage,
or access may not be included in the 110 percent calculation unless the area exceeds 110 percent of
the square footage before the voluntary elevation.
The bill requires the property owner to provide elevation certificates for both the original and elevated
property.
The bill specifies that the term "voluntary elevation" or "voluntarily elevated" means the elevation of an
existing nonconforming property or the removal and rebuilding of a nonconforming property.
The bill takes effect on the same date that HJR 1377, or a similar joint resolution, is approved by the
electors at the general election held in November 2022 or at an earlier special election specifically
authorized for that purpose. If approved by the voters, the joint resolution and this bill will take effect on
January 1, 2023.
B. SECTION DIRECTORY:
Section 1. Amends s. 193.155, F.S., to provide an exemption for the assessment of a homestead
property.
Section 2. Amends s. 193.1554, F.S., to provide an exemption for the assessment of
nonhomestead residential property.
Section 3. Provides a contingent effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
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 B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
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 1377. 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 in fiscal year 2021-22 of -$9.4 million
on school property tax revenues and -$15.7 million on non-school property tax revenues.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
If the voters approve HJR 1377 and this bill passes, certain homestead and nonhomestead residential
property owners will be able to elevate their properties without having to pay increased ad valorem
taxes on the property.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill implements a constitutional amendment to which the mandates provision of
Article VII, section 18 of the Florida Constitution does not apply.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On March 15, 2021, the Environment, Agriculture & Flooding Subcommittee adopted an amendment and
reported the bill favorably as a committee substitute. The amendment clarified that changes, additions, or
improvements made to replace property that has been destroyed by misfortune or calamity must begin
within three years after the damage or destruction occurs.
On April 15, 2021, the State Affairs Committee adopted an amendment and reported the bill favorably as a
committee substitute. The amendment specified that the property assessment li