PLACEMENT: New Business
TITLE:
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CRA - LEGISLATIVE UPDATE SJR 2F: PROPERTY TAX CONSTITUTIONAL AMENDMENT
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EXECUTIVE SUMMARY:executive summary
The Senate joint resolution and bill on property taxes have now been filed as Senate Joint Resolution (SJR) 2F and SB 4F, both by Senator Bryan Ávila (R - Hialeah Gardens), Chairman of the Senate Finance and Tax Committee.
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BACKGROUND/RELATED STRATEGIC GOAL:
SJ-2F proposes the following constitutional amendments that, if approved by the voters in the 2026 general election, would take effect January 1, 2027:
1. Homestead Exemptions:
a. Increase the homestead exemption to the first $150,000 in value beginning in 2027 (from the current $50,000 exemption on the first and third $25,000 of value).
b. Increase the homestead exemption to the first $250,000 in value beginning in 2028.
c. Apply the same annual inflation adjustment to these increased homestead exemptions as is currently applied to the second $25,000 homestead exemption on non-school levies.
d. Require the Legislature to pass legislation establishing a schedule for the full elimination of homestead property taxes for counties, municipalities, and school districts, for their respective levies.
e. Require a five-year waiting period for any person who establishes Florida residency after January 1, 2027, before becoming eligible for the increased homestead exemptions.
f. Allow, beginning on or after January 1, 2030, a county, municipality, or school district, by a two-thirds vote of its governing body, to reduce the five-year waiting period when warranted by a critical local need.
2. Non-homestead assessment increases:
Reduces the cap on increases in non-homestead property values from 10 percent to 5 percent. This cap reduction applies to all non-homestead properties, including but not limited to residential rental property, commercial property, and business property.
3. Limits on use of remaining county and city property tax revenue:
a. Provide for public safety, including law enforcement, fire service, and emergency medical service.
b. Provide funding for education and public schools.
c. Finance or refinance infrastructure, including expenditures on road and bridge construction and maintenance and stormwater control.
d. Finance or refinance natural resource projects, including flood control measures.
e. Issue local bonds for uses consistent with these provisions and to make debt service payments for existing obligations.
f. Meet obligations for retirement benefits of local government employees.
4. State trust fund:
Establishes a state trust fund to provide grants to local governments to assist with the provision of the core local services described above.
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine whether it is consistent with applicable
law, has identified and addressed legal risks, and has developed strategies for legal defensibility.
RECOMMENDED ACTION:
Hear the presentation and provide input.
FISCAL IMPACT:
N/A
DOCUMENT(S) REQUIRING ACTION:
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