Bill Summary – FastDemocracy

HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 101 Homestead Exemption for First Responders
SPONSOR(S): Woodson and others
TIED BILLS:       IDEN./SIM. BILLS: SB 184
    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF
    1) Ways & Means Committee                                   24 Y, 0 N               McCain             Aldridge
    2) Local Administration, Federal Affairs & Special          15 Y, 0 N               Roy                Darden
       Districts Subcommittee
    3) State Affairs Committee                                  18 Y, 0 N               Roy                Williamson
                                            SUMMARY ANALYSIS
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.
The Florida Constitution authorizes the Legislature to provide for a full exemption from ad valorem taxes for the
surviving spouse of a first responder who died in the line of duty. In order to qualify for the exemption, the first
responder and his or her surviving spouse must have been permanent residents of Florida on January 1 of the
year in which the first responder died, the real estate must be owned and used by the surviving spouse as a
homestead, and the first responder must have been employed by the state of Florida or any political
subdivision of Florida at his or her time of death. The surviving spouses of law enforcement officers who were
employed by the federal government and died in the line of duty are not eligible for the exemption under the
current law.
The Florida Constitution also authorizes the Legislature to provide for a full exemption from ad valorem taxes
for first responders who are totally and permanently disabled as a result of an injury sustained in the line of
duty. In order to qualify for the exemption, the property must be owned and used as a homestead by a first
responder who was injured in the line of duty while working as a first responder for the state of Florida or any
political subdivision thereof, and is a permanent resident of the state as of January 1 of the year for which the
exemption is claimed. This exemption also carries over to the surviving spouse of the first responder. Under
current law, this exemption does not extend to law enforcement officers who were employed by the federal
government at the time of their injury or injuries.
The bill revises the definition of “first responder” to include federal law enforcement officers, thereby expanding
the ad valorem tax exemption for surviving spouses of first responders who died in the line of duty and the ad
valorem tax exemption for first responders rendered totally and permanently disabled as the result of an injury
or injuries sustained in the line of duty to include federal law enforcement officers. It does not change any of
the other requirements that must be met in order for to qualify for either exemption.
The bill does not appear to have a fiscal impact on state government, but appears to have a negative
insignificant fiscal impact on local government revenues.
The bill takes effect on January 1, 2024, and will first apply to the 2024 ad valorem tax roll.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0101e.SAC
DATE: 3/23/2023
                                                            FULL ANALYSIS
                                                    I. SUBSTANTIVE ANALYSIS
    A. EFFECT OF PROPOSED CHANGES:
         Present 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 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 Florida Constitution authorizes the Legislature to provide for a full exemption from ad valorem
         taxes for the surviving spouse of a first responder who died in the line of duty.5 This exemption has
         been in place since 2012, when the Legislature passed, and voters subsequently approved, an
         amendment to the constitution authorizing the exemption. 6 In order to qualify for the exemption, the first
         responder and his or her surviving spouse must have been permanent residents of Florida on January
         1 of the year in which the first responder died, the real estate must be owned and used by the surviving
         spouse as a homestead, and the first responder must have been employed by the state of Florida or
         any political subdivision of Florida at his or her time of death. 7 The surviving spouse may receive the
         exemption as long as the spouse holds legal or beneficial title to the homestead, resides permanently
         thereon, and does not remarry.8 If the surviving spouse sells the property and purchases a new
         homestead property, the spouse may transfer the exemption to the new property, capped at the
         amount granted under the most recent ad valorem tax roll.9 The surviving spouses of law enforcement
         officers who were employed by the federal government and died in the line of duty are not eligible for
         the exemption.
         The Florida Constitution also authorizes the Legislature to provide for a full exemption from ad valorem
         taxes for first responders who are totally and permanently disabled as a result of an injury or injuries
         sustained in the line of duty.10 This exemption carries over to the benefit of the surviving spouse as long
         as the spouse holds legal or beneficial title to the homestead, resides permanently thereon, and does
         not remarry.11 In order to qualify for the exemption, the first responder must provide documentation to
         the property appraiser supporting their claim of total and permanent disability. 12 These documents may
         include documentation from the Social Security Administration stating the applicant is totally and
         permanently disabled, a certificate from the organization that employed the applicant as a first
         responder at the time of the injury or injuries containing the details of the injury that caused the
         disability, and a certification from a physician certifying the total and permanent disability of the
         applicant. This exemption is currently available to first responders as the term is defined in 196.081,
         F.S., meaning that it is only available to those first responders who were employed by the state or any
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(f), Fla. Const., implemented by s. 196.081, F.S.
6 CS/HJR 93 (2012).
7 S. 196.081(6), F.S.
8 S. 196.081(6)(b), F.S.
9 Id.
10 Art. VII, s. 6(f), Fla. Const., and s. 196.101, F.S.
11 S. 196.102(8), F.S.
12 S. 196.102(5), F.S.
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            political subdivision thereof at the time of their injury or injuries sustained in the line of duty resulting in
            total and permanent disability.
            The Florida Constitution defines a “first responder” as “a law enforcement officer, a correctional officer,
            a firefighter, an emergency medical technician, or a paramedic,”13 while the statute implementing the
            amendment defines a “first responder” as “a law enforcement officer or correctional officer as defined in
            s. 943.10, a firefighter as defined in s. 633.102, or an emergency medical technician or a paramedic as
            defined in s. 401.23 who is a full-time paid employee, part-time paid employee, or unpaid volunteer.”
            The definition of “law enforcement officer” provided in s. 943.10, F.S., does not include federal law
            enforcement officers.
            Effect of Proposed Changes
            The bill revises the definition of “first responder” to include federal law enforcement officers as defined
            in s. 901.1505(1), F.S., thereby expanding the ad valorem tax exemption for surviving spouses of first
            responders who died in the line of duty and the ad valorem tax exemption for first responders rendered
            totally and permanently disabled as the result from an injury or injuries sustained in the line of duty to
            include federal law enforcement officers. Applicants for the exemption must still meet all other
            requirements.
            The bill takes effect on January 1, 2024, and will first apply to the 2024 ad valorem tax roll.
       B. SECTION DIRECTORY:
            Section 1:          Amends s. 196.081, F.S., expanding the tax exemption for surviving spouses of first
                                responders who died in the line of duty and the tax exemption for first responders
                                rendered totally and permanently disabled in the line of duty to include federal law
                                enforcement officers.
            Section 2:          Provides the amendments made by this bill first apply to the 2024 ad valorem tax roll.
            Section 3:          Provides an effective date of January 1, 2024.
                                      II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
       A. FISCAL IMPACT ON STATE GOVERNMENT:
            1. Revenues:
                 None.
            2. Expenditures:
                 None.
       B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
            1. Revenues:
                 The Revenue Estimating Conference estimates that the bill will have zero cash impact and a
                 negative insignificant recurring impact on local government revenues in Fiscal Year 2023-24.
            2. Expenditures:
                 None.
13   Art. VII, s. 6(e), Fla. Const.
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DATE: 3/23/2023
   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       Qualifying individuals will have a reduction in their property tax liability.
   D. FISCAL COMMENTS:
       None.
                                                  III. COMMENTS
   A. CONSTITUTIONAL ISSUES:
       1. Applicability of Municipality/County Mandates Provision:
           The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
           because this bill may reduce the authority of counties or municipalities have to raise revenues in the
           aggregate; however, an exception appears to apply as the fiscal impact is insignificant.
       2. Other:
           None.
   B. RULE-MAKING AUTHORITY:
       None.
   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.
                           IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   None.
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DATE: 3/23/2023
Statutes affected: 
H 101 Filed: 196.081