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 122
INTRODUCER: Senator Avila
SUBJECT: Revised Limitation on Increases of Homestead Property Tax Assessments
DATE: February 10, 2023 REVISED: 2/16/23
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. FT
3. AP
I. Summary:
SJR 122 proposes an amendment to the Florida Constitution to reduce the maximum increase in
assessments on homestead properties from three to two percent of the previous year’s
assessment.
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
The just valuation standard generally requires the property appraiser to consider the highest and
best use of property;6 however, the Florida Constitution authorizes certain types of property to be
valued based on their current use (classified use assessments), which often result in lower
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;7 land used for conservation purposes;8 historic properties
when authorized by the county or municipality;9 and certain working waterfront property.10
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.11 An additional
$25,000 exemption applies to homestead property value between $50,000 and $75,000.12 This
exemption does not apply to ad valorem taxes levied by school districts.
Additional Homestead Exemptions
The Florida Constitution authorizes additional homestead exemptions, either directly through
legislation or through statutory permission for local governments to enact:
 An exemption not exceeding $50,000 in home value for any low-income senior. 13
 An exemption of the entire assessed value of a low-income senior’s homestead with a just
value less than $250,000 if he or she has maintained that homestead for not less than 25
years. 14, 15
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
Section 193.011(2), F.S.
7
FLA. CONST. art. VII, s. 4(a).
8
FLA. CONST. art. VII, s. 4(b).
9
FLA. CONST. art. VII, s. 4(e).
10
FLA. CONST. art. VII, s. 4(j).
11
FLA. CONST. art VII, s. 6(a) and s. 196.031, F.S.
12
Section 196.031(1)(b), F.S.
13
Implementing FLA. CONST. art. VII, s. 6(d)(1).
14
Implementing FLA. CONST. art. VII, s. 6(d)(2)
15
Taxpayers who initially receive the exemption are denied the exemption in a later year if the just value of their homestead
exceeds $250,000.
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 A veteran or first responder16 with a total and permanent service-connected disability is
entitled to a complete exemption for property owned and used as a homestead.17
 A veteran with a total service-connected disability that confines him or her to a wheelchair is
entitled to a complete exemption for property owned and used as a homestead. Upon the
veteran’s death, the exemption carries over to the veteran’s unremarried surviving spouse.18
 A veteran disabled to a degree of 10 percent or more by misfortune or during wartime service
is entitled to an exemption for any property up to $5,000. Upon the death of the veteran, the
exemption carries over to the veteran’s unremarried surviving spouse.19
 The unremarried surviving spouse of a veteran or first responder who died while on active
duty is entitled to a complete exemption for property owned and used as a homestead if the
veteran was a permanent resident of Florida on the day he or she died.20
 Certain combat-disabled veterans are entitled to a discount on their homestead property
taxes.21
Limitation on Annual Increases in Assessments for Homestead Properties
The Florida Constitution22 provides that, for those entitled to a homestead exemption, the
assessed value of the homestead shall be changed annually on January 1st of each year, but those
changes in assessments shall not exceed the lesser of three percent of the prior year’s assessment
or the percent change in the Consumer Price Index23 for the preceding calendar year.24
III. Effect of Proposed Changes:
The joint resolution proposes an amendment to Article VII, s. 4(d)(1) of the Florida Constitution
to reduce the maximum increase in assessments on homestead properties from three to two
percent of the previous year’s assessment.
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.
The joint resolution also provides the ballot statement, which will appear on the November 2024
ballot if adopted by the Legislature, as follows:
REVISED LIMITATION ON INCREASES OF HOMESTEAD PROPERTY
TAX 205 ASSESSMENTS.—Proposing an amendment to the State Constitution
to revise, from 3 percent to 2 percent, the limitation on an annual increase of a
16
“First responder” in this context means 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 paramedic as defined in s. 401.23 who is a full-
time paid employee, part-time paid employee, or unpaid volunteer. Section 196.081(6)(c)1., F.S.
17
Sections 196.081 and 196.102, F.S.
18
Section 196.091(1) and (3), F.S.
19
Section 196.24, F.S.
20
Section 196.081(4), (6) F.S.
21
Section 196.082, F.S.
22
As amended by Constitutional Amendment 10 (1992), commonly referred to as the “Save Our Homes” initiative.
23
Specifically the Consumer Price Index for All Urban Consumers, U.S. City Average, all items 1967=100, or successor
reports.
24
FLA. CONST. art. VII, s. 4(d)(1), implemented by section 193.155, F.S.
BILL: SJR 122 Page 4
homestead property tax assessment when such percentage is lower than the
percent change in the Consumer Price Index for all urban consumers for the
preceding calendar year. If approved, this amendment shall take effect January 1,
2025.
If approved by at least 60 percent of the electors, the proposed amendment will take effect on
January 1, 2025.
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 election25 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.26
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.
25
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.
26
Section 101.161(1), F.S.
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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.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
Beginning in Fiscal Year 2025-2026 and assuming that the voters approve the
constitutional amendment proposed by the joint resolution, the constitutional amendment
will reduce local property tax in any year that the relevant Consumer Price Index exceeds
2 percent. The Revenue Estimating Conference concluded that the fiscal impact is
indeterminate because it is unknown when the Consumer Price Index will exceed 2
percent. However, the Revenue Estimating Conference concluded that if the
constitutional amendment had been in place in 2022 – a year in which the Save Our
Homes limit was 3 percent – the constitutional amendment would have reduced local
property taxes by $150 million, statewide.
B. Private Sector Impact:
If approved by 60 percent of voters in November 2024, homeowners with homestead
exemptions will enjoy a reduced limit on rises in their homestead assessment. This will
result in an indeterminate positive fiscal impact as homeowners take advantage of ad
valorem tax savings.
C. Government Sector Impact:
If approved by 60 percent of voters in November 2024, homeowners with homestead
exemptions will enjoy a reduced limit on rises in their homestead assessment. This will
result in an indeterminate negative fiscal impact on local governments as their ability to
raise assessments on homestead property will be reduced.
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 sixth 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, 27 typically
paid from non-recurring General Revenue funds.28 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.
27
Pursuant to Section 203 of the Voting Rights Act (52 U.S.C.A. § 10503).
28
See Ch. 2020-111, Specific Appropriation 3132, Laws of Fla.
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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.29
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This resolution substantially amends section 4, Article VII of the Florida Constitution.
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.
29
Section 100.371(13)(e)4., F.S. See also Chapter 2019-64, s. 3, Laws of Fla.