PCS for CS/HB 1259 — Act Relating to Property Tax Benefits for Residential Properties (2025)

Summary

PCS for CS/HB 1259 2025 is a bill to be entitled an act relating to property tax benefits for residential properties. Section 1 creates a section on assessment of residential property subject to a long-term lease, limiting any change in assessment to the lower of three percent of the prior year's assessed value or the percentage change in the Consumer Price Index for All Urban Consumers. The bill also creates a first-time Florida homesteader additional homestead exemption and lets the Department of Revenue adopt emergency rules. Its effective date is tied to the effective date of the State Constitution amendment proposed by HJR 1257 or a similar joint resolution.

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“PCS for CS/HB 1259 — Act Relating to Property Tax Benefits for Residential Properties (2025).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-3285-commerce-committee-proposed-committee-bills-pcbs-fn-pcs-for-da77febb57/, SHA-256 65778904438b841f8d018aa82b50768c34be2ac189796ac19ba62375f7c75b44.

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

PCS for CS/HB 1259 2025

1 A bill to be entitled
2 An act relating to property tax benefits for
3 residential properties; creating s. 193.1553, F.S.;
4 providing that property that receives a certain tax
5 exemption shall be assessed in a specified manner;
6 providing that changes, additions, and improvements to
7 such property shall be assessed in a specified manner;
8 providing exceptions and alternative assessments;
9 providing construction; requiring property that no
10 longer meets eligibility requirements to be assessed
11 in an alternative manner; amending s. 196.011, F.S.;
12 requiring the submission of an application containing
13 specified information before receiving a specified tax
14 exemption; creating s. 196.034, F.S.; providing
15 specified tax exemptions for property that meets
16 certain eligibility requirements; providing that
17 certain damaged or destroyed property is eligible for
18 the exemption if specified conditions are met;
19 providing that if such conditions are not met, such
20 property shall be considered abandoned for a specified
21 purpose; creating s. 196.078, F.S.; providing a
22 definition; providing a first-time Florida homesteader
23 with an additional homestead exemption; providing for
24 calculation of the exemption; providing for the
25 applicability period of the exemption; providing for

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26 an annual reduction in the exemption during the
27 applicability period; providing application
28 procedures; amending ss. 193.1554 and 194.032, F.S.;
29 conforming provisions to changes made by the act;
30 authorizing the Department of Revenue to adopt
31 emergency rules; providing a contingent effective
32 date.
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36 Section 1. Section 193.1553, Florida Statutes, is created
37 to read:
38 193.1553 Assessment of certain residential property
39 subject to a long-term lease.—
40 (1) Property that receives the exemption under s. 196.034
41 shall be assessed under this section.
42 (2) Except as provided in subsection (4), property that
43 meets the conditions of subsection (1) shall be assessed
44 pursuant to this section as of January 1 of any year for which
45 the property is eligible for assessment under this section,
46 using the prior year's assessed value as the basis for any
47 change in assessment. Any change resulting from such assessment
48 shall not exceed the lower of the following:
49 (a) Three percent of the assessed value of the property
50 for the prior year; or

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51 (b) The percentage change in the Consumer Price Index for
52 All Urban Consumers, U.S. City Average, all items 1967=100, or
53 successor reports for the preceding calendar year as initially
54 reported by the United States Department of Labor, Bureau of
55 Labor Statistics.
56 (3) If the assessed value of the property as calculated
57 under subsection (2) exceeds the just value, the assessed value
58 of the property shall be lowered to the just value of the
59 property.
60 (4) Property assessed under this section shall be assessed
61 at just value as of January 1 of the year following a change of
62 ownership, or as of January 1 of the year following abandonment
63 of homestead on a property that becomes eligible for assessment
64 under this section, but no sooner than the January 1 following
65 the certification to the property appraiser required by s.
66 193.155(8)(i)2. Thereafter, the annual changes in the assessed
67 value of the property are subject to the limitations in
68 subsections (2) and (3). For purposes of this subsection, the
69 term "change of ownership" means any sale, foreclosure, or
70 transfer of legal title or beneficial title in equity to any
71 person, except if any of the provisions of s. 193.155(3)(a)
72 apply.
73 (5)(a) Except as provided in paragraph (b) and s. 193.624,
74 changes, additions, or improvements to property subject to this
75 section shall be assessed at just value as of the first January

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76 1 after the changes, additions, or improvements are
77 substantially completed.
78 (b)1. Changes, additions, or improvements that replace all
79 or a portion of property assessed under this section, including
80 ancillary improvements, that are damaged or destroyed by
81 misfortune or calamity shall be assessed upon substantial
82 completion as provided in this paragraph. Such assessment must
83 be calculated using the property's assessed value as of the
84 January 1 immediately before the date on which the damage or
85 destruction was sustained, subject to the assessment limitations
86 in subsections (2) and (3), when:
87 a. The square footage of the property as changed or
88 improved does not exceed 110 percent of the square footage of
89 the property before the damage or destruction; or
90 b. The total square footage of the property as changed or
91 improved does not exceed 1,500 square feet.
92 2. The property's assessed value must be increased by the
93 just value of that portion of the changed or improved property
94 which is in excess of 110 percent of the square footage of the
95 property before the damage or destruction or of that portion
96 exceeding 1,500 square feet.
97 3. Property damaged or destroyed by misfortune or calamity
98 which, after being changed or improved, has a square footage of
99 less than 100 percent of the property's total square footage
100 before the damage or destruction shall be assessed pursuant to

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101 subsection (6).
102 4. Changes, additions, or improvements assessed pursuant
103 to this paragraph must be reassessed pursuant to subsection (2)
104 in subsequent years. This paragraph applies to changes,
105 additions, or improvements commenced within 5 years after the
106 January 1 following the damage or destruction of the property.
107 (c) Changes, additions, or improvements include
108 improvements made to common areas or other improvements made to
109 property other than to the property by the owner or by an owner
110 association, which improvements directly benefit the property.
111 Such changes, additions, or improvements shall be assessed at
112 just value, and the just value shall be apportioned among the
113 parcels benefiting from the improvement.
114 (6) When property is destroyed or removed and not
115 replaced, the assessed value of the parcel shall be reduced by
116 the assessed value attributable to the destroyed or removed
117 property.
118 (7) Only property that meets the conditions of subsection
119 (1) is subject to this section. Any portion of property that is
120 assessed solely on the basis of character or use pursuant to s.
121 193.461 or s. 193.501, or assessed pursuant to s. 193.505, is
122 not subject to this section.
123 (8)(a) If, after meeting the conditions of subsection (1)
124 and receiving the benefit of the assessment limitation in
125 subsections (2) and (3), the property does not meet the

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126 conditions of subsection (1) on January 1 of any subsequent
127 year, the property shall instead be assessed pursuant to s.
128 193.155(1) and (2), or s. 193.1554(3) and (4), as applicable,
129 beginning with such year.
130 1. Any change in assessment in the first year the property
131 is assessed pursuant to s. 193.1554 shall use the most recent
132 year's assessed value under this section as the basis for
133 adjustment, and may not revert to just value, unless the
134 property experiences a change of ownership or control as
135 provided in s. 193.1554.
136 2. Any change in assessment in the first year the property
137 is assessed pursuant to s. 193.155 shall use the just value of
138 the property, as adjusted pursuant to s. 193.155(8), if
139 applicable.
140 (b)1. If the property meets the conditions of subsection
141 (1) on January 1 of a subsequent year, this section shall apply
142 beginning with such year, and the application of the limitation
143 in subsection (2) shall use the most recent year's assessed
144 value as the basis for adjustment if the property was assessed
145 in the most recent year pursuant to s. 193.1554.
146 2. If the property meets the conditions of subsection (1)
147 on January 1 of a subsequent year and the property was assessed
148 as the homestead of the owner in the prior year pursuant to s.
149 193.155, then the application of the limitation in subsection
150 (2) shall use the just value of the property, rather than the

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151 prior year's assessment, for the first year's assessment
152 limitation in subsection (2). A property that was abandoned as a
153 homestead is only eligible under this section if the property
154 appraiser in the county in which the abandoned homestead
155 property is located provides the certification to the property
156 appraiser in the county in which the new homestead is located as
157 required by s. 193.155(8)(i)2., stating that the property has
158 been or will be reassessed at just value.
159 (9)(a) Erroneous assessments of property assessed under
160 this section may be corrected in the following manner:
161 (a) If errors are made in arriving at any assessment under
162 this section due to a material mistake of fact concerning an
163 essential characteristic of the property, the just value and
164 assessed value must be recalculated for every such year,
165 including the year in which the mistake occurred.
166 (b) If changes, additions, or improvements are not assessed
167 at just value as of the first January 1 after they were
168 substantially completed, the property appraiser shall determine
169 the just value for such changes, additions, or improvements for
170 the year they were substantially completed. Assessments for
171 subsequent years shall be corrected, applying this section if
172 applicable.
173 (c) When a person entitled to exemption pursuant to s.
174 196.034 inadvertently receives the limitation pursuant to this
175 section following a change of ownership, the assessment of such

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176 property must be corrected as provided in paragraph (9)(a), and
177 the person need not pay the unpaid taxes, penalties, or
178 interest.
179 (d) If the property appraiser improperly grants the
180 property assessment limitation as a result of a clerical mistake
181 or an omission, the person or entity improperly receiving the
182 property assessment limitation may not be assessed a penalty or
183 interest. Back taxes shall apply only as follows:
184 1. If the person who received the limitation as a result of
185 a clerical mistake or omission voluntarily discloses to the
186 property appraiser that he or she was not entitled to the
187 limitation before the property appraiser notifies the owner of
188 the mistake or omission, no back taxes shall be due.
189 2. If the person who received the limitation as a result of
190 a clerical mistake or omission does not voluntarily disclose to
191 the property appraiser that he or she was not entitled to the
192 limitation before the property appraiser notifies the owner of
193 the mistake or omission, back taxes shall be due for any year or
194 years that the owner was not entitled to the limitation within
195 the 5 years before the property appraiser notified the owner of
196 the mistake or omission.
197 (e) If back taxes are due pursuant to s. 193.092, the
198 corrections made pursuant to this subsection shall be used to
199 calculate such back taxes.
200 (10)(a) If the property appraiser determines that for any

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201 year or years within the prior 10 years a person was granted a
202 limitation under this section due to an application that was
203 fraudulent at the time the application was submitted to the
204 property appraiser’s office, the property appraiser shall remove
205 all assessment limitations and exemptions under s. 196.034 on
206 the property for the year such fraud occurred and assess the
207 property for that year at just value, then recalculate the value
208 for all subsequent years using applicable limitations and
209 exemptions. The owner shall be liable for back taxes for the
210 year the fraud occurred and all subsequent years through the
211 current year, a penalty of 100 percent of the unpaid taxes for
212 each year, and 15 percent interest per annum.
213 (b) The property appraiser shall serve upon an owner that
214 owes back taxes under this subsection a notice of intent to
215 record in the public records of the county a notice of tax lien
216 against any property owned by that person in the county, and
217 such property must be identified in the notice of tax lien. The
218 property appraiser must include with such notice information
219 explaining why the owner is not entitled to the limitation, the
220 years for which unpaid taxes are due, and the manner in which
221 unpaid taxes have been calculated. Before a lien may be filed,
222 the person or entity so notified must be given 30 days to pay
223 the taxes.
224 Section 2. Paragraph (b) of subsection (1) of section
225 196.011, Florida Statutes, is amended, and subsection (14) is

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226 added to that section, to read:
227 196.011 Annual application required for exemption.—
228 (1)
229 (b) The form to apply for an exemption under s. 196.031,
230 s. 196.034, s. 196.078, s. 196.081, s. 196.091, s. 196.101, s.
231 196.102, s. 196.173, or s. 196.202 must include a space for the
232 applicant to list the social security number of the applicant
233 and of the applicant's spouse, if any. If an applicant files a
234 timely and otherwise complete application, and omits the
235 required social security numbers, the application is incomplete.
236 In that event, the property appraiser shall contact the
237 applicant, who may refile a complete application by April 1.
238 Failure to file a complete application by that date constitutes
239 a waiver of the exemption privilege for that year, except as
240 provided in subsection (7) or subsection (9).
241 (14) Notwithstanding paragraphs (7)(a) and (10)(a), an
242 applicant who is eligible to receive an exemption under s.
243 196.034 must file an application each year by March 1. Such
244 application must include the address of the property at which
245 the owner currently receives a homestead exemption, and an
246 executed copy of the lease for the property to be exempted under
247 s. 196.034.
248 Section 3. Section 196.034, Florida Statutes, is created
249 to read:
250 196.034 Exemption of certain residential property subject

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251 to a long-term lease.—
252 (1)(a) Property that meets the following conditions is
253 entitled to an exemption from all taxation up to the assessed
254 valuation of $25,000:
255 1. The owner of the property holds the legal or equitable
256 title to a separate parcel that receives the exemption under s.
257 196.031 and such parcel is his or her permanent residence.
258 2. The property is owned through sole ownership or joint
259 ownership with a spouse, or indirectly through a limited
260 liability company that holds legal or equitable title to such
261 real estate if such limited liability company is owned solely or
262 jointly with a spouse.
263 3. As of January 1 of the taxable year, the property is
264 rented by the owner to one or more natural persons for
265 residential use under a bona fide written lease that has a
266 continuous duration of 6 months or more and, by the terms of the
267 lease, may not be subleased during the rental period.
268 4. The entire parcel of property would otherwise qualify
269 for a homestead exemption under to s. 196.031 if the property
270 were the owner's permanent residence.
271 5. The property is classified under s. 195.073(1)(a)1.,
272 2., or 4.
273 6. The lessee of the property is not married to the owner
274 of the property.
275 (b) Every property that qualifies to receive the exemption

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276 provided in paragraph (a) is entitled to an additional exemption
277 of up to $25,000 on the assessed valuation greater than $50,000
278 for all levies other than school district levies.
279 (c) Any property that does not meet the conditions of
280 paragraph (a) for a given year may not receive the benefits
281 provided in paragraphs (a) and (b) for such year unless
282 subsection (2) applies, but the property may receive the
283 benefits in paragraphs (a) and (b) in any future year for which
284 all conditions in paragraph (a) are met.
285 (2) For purposes of this section, when property exempted
286 under this section is damaged or destroyed by misfortune or
287 calamity and the property is uninhabitable on the January 1
288 after the damage or destruction occurs, the property shall be
289 considered to be subject to a long-term lease on January 1 and
290 an existing exemption under this section shall continue if the
291 property is otherwise qualified and if the property owner
292 notifies the property appraiser that he or she intends to repair
293 or rebuild the property and the existing or another lessee will
294 resume residency after the property is repaired or rebuilt.
295 Failure by the property owner to commence the repair or
296 rebuilding of the property within 5 years after the January 1
297 following the property's damage or destruction constitutes
298 abandonment of the property as exempt under this section. After
299 the 5-year period, the expiration, lapse, nonrenewal, or
300 revocation of a building permit issued to the property owner for

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301 such repairs or rebuilding also constitutes abandonment of the
302 property under this section.
303 Section 4. Section 196.078, Florida Statutes, is created
304 to read:
305 196.078 Additional homestead exemption for a first-time
306 Florida homesteader.—
307 (1) As used in this section, the term "first-time Florida
308 homesteader" means a person who establishes the right to receive
309 the homestead exemption provided in s. 196.031 within 1 year
310 after purchasing the homestead property and who has not owned
311 property in the 4 calendar years prior to such purchase to which
312 the homestead exemption provided in s. 196.031(1)(a) applied.
313 (2) For purposes of this section, the date on which the
314 deed or other transfer instrument was signed and notarized or
315 otherwise executed shall be considered the date a property was
316 purchased.
317 (3) Every first-time Florida homesteader is entitled to an
318 additional homestead exemption in an amount equal to 50 percent
319 of the homestead property's just value on January 1 of the year
320 the homestead is established, for all levies other than school
321 district levies. The additional exemption may not exceed the
322 median just value for homestead property in the county where the
323 property at issue is located in the calendar year immediately
324 preceding January 1 of the year the homestead is established.
325 The additional exemption applies for a period of 5 years or

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326 until the year the property is sold, whichever occurs first. The
327 amount of the additional exemption shall be reduced in each
328 subsequent year by an amount equal to 20 percent of the amount
329 of the additional exemption received in the year the homestead
330 was established. Not more than one exemption provided under this
331 subsection is allowed per homestead property. The additional
332 exemption applies to property purchased on or after January 1,
333 2027, but is not available in the sixth and subsequent years
334 after the additional exemption is first received.
335 (4) The property appraiser shall require a first-time
336 Florida homesteader claiming an exemption under this section to
337 submit, not later than March 1 on a form prescribed by the
338 Department of Revenue, a sworn statement attesting that the
339 taxpayer, and each other person who holds legal or equitable
340 title to the property, has not owned property in the 4 calendar
341 years prior to such purchase to which the homestead exemption
342 provided by s. 196.031(1)(a) applied. In order for the exemption
343 to be retained upon the addition of another person to the title
344 to the property, the person added must also submit, not later
345 than the subsequent March 1 on a form prescribed by the
346 department, a sworn statement attesting that he or she has not
347 owned property in the 4 calendar years prior to being added to
348 the title to which the homestead exemption provided by s.
349 196.031(1)(a) applied.
350 (5) Sections 196.131, 196.151, and 196.161 apply to the

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351 exemption provided in this section.
352 Section 5. Subsection (1) of section 193.1554, Florida
353 Statutes, is amended to read:
354 193.1554 Assessment of nonhomestead residential property.—
355 (1) As used in this section, the term "nonhomestead
356 residential property" means residential real property that
357 contains nine or fewer dwelling units, including vacant property
358 zoned and platted for residential use, and that does not receive
359 the exemption under s. 196.031 or s. 196.034.
360 Section 6. Paragraph (a) of subsection (1) of section
361 194.032, Florida Statutes, is amended to read:
362 194.032 Hearing purposes; timetable.—
363 (1)(a) The value adjustment board shall meet not earlier
364 than 30 days and not later than 60 days after the mailing of the
365 notice provided in s. 194.011(1); however, no board hearing
366 shall be held before approval of all or any part of the
367 assessment rolls by the Department of Revenue. The board shall
368 meet for the following purposes:
369 1. Hearing petitions relating to assessments filed
370 pursuant to s. 194.011(3).
371 2. Hearing complaints relating to homestead exemptions as
372 provided for under s. 196.151.
373 3. Hearing appeals from exemptions denied, or disputes
374 arising from exemptions granted, upon the filing of exemption
375 applications under s. 196.011.

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376 4. Hearing appeals concerning ad valorem tax deferrals and
377 classifications.
378 5. Hearing appeals from determinations that a change of
379 ownership under s. 193.155(3), a change of ownership or control
380 under s. 193.1553(4), s. 193.1554(5), or s. 193.1555(5), or a
381 qualifying improvement under s. 193.1555(5) has occurred.
382 Section 7. (1) The Department of Revenue may, and all
383 conditions are deemed met to, adopt emergency rules pursuant to
384 s. 120.54(4), Florida Statutes, for the purpose of implementing
385 ss. 193.1553, 196.034, and 196.078, Florida Statutes, as created
386 by this act. Notwithstanding any other law, emergency rules
387 adopted pursuant to this section are effective for 6 months
388 after adoption and may be renewed during the pendency of
389 procedures to adopt permanent rules addressing the subject of
390 the emergency rules.
391 (2) This section shall take effect the day after the
392 Department of State certifies, pursuant to s. 102.112, the
393 approval of the amendment to the State Constitution proposed by
394 HJR 1257 or a similar joint resolution having substantially the
395 same specific intent and purpose, if such amendment is approved
396 at the next general election, and shall expire July 1, 2029.
397 Section 8. Except as otherwise provided, this act shall
398 take effect on the effective date of the amendment to the State
399 Constitution proposed by HJR 1257 or a similar joint resolution
400 having substantially the same specific intent and purpose, if

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401 such amendment is approved at the next general election.

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