Week 2

Florida Legislative Session Update – Week 2 Recap

House Advances Constitutional  Amendment to Eliminate Most Property Taxes on Homesteads to the Floor

On Thursday, the House Ways and Means Committee passed HJR 203, a proposed constitutional amendment that would phase-out non-school property taxes on homestead property over ten years. The resolution would increase the total homestead exemption to the first $150,000 of a home’s value in 2027, then increase the exemption by $100,000 annually for nine years. Beginning in 2037 all homestead property would be totally exemption from county, city, and special district property taxes. This would result in firstyear taxpayer savings/local revenue loss of $4.4 billion, increasing to $13.3 billion when the phase-out is complete. The proposal also prohibits cities and counties from reducing spending for law enforcement, firefighters, and other first responders.

Another one of the eight proposals offered by the House Select Committee on Property Taxes cleared a committee stop on Thursday.  HJR 213 would change the cap on homestead assessments (Save Our Homes) from the lesser of three percent or inflation annually to three percent once every three years. The cap on non-homestead property assessments would change from ten percent annually to 15 percent once every three years. As is the case with all the House proposals, HJR 213 does not apply to school taxes and includes the prohibition on reducing first responder funding. This is the only House proposal that provides a benefit to non-homestead properties and that would reduce the property tax system’s tax burden shift from homestead to renters, businesses, and other non-homestead properties. This proposal has a fiscal impact of $1.7 billion in the first year, growing to $5.5 billion annually.

Florida TaxWatch’s new report, Save Our Taxpayers – Property Tax Relief Must be Accomplished Equitably, warns against eliminating property taxes without a comprehensive plan for dealing with the impact and provides the Legislature with recommendations on how to better provide meaningful and equitable property relief/reform.

Other Legislation that Advanced this Week

Bills Aligned with Florida TaxWatch Research Priorities/Recommendations

• Research & Development Tax Credit -SB 1076, which would increase the annual cap on the R&D credit from $9 million to $50 million, cleared the Senate Commerce and Tourism Committee.
• Swimming Lesson Voucher Program – Bills in both chambers (SB 428 and HB 85) to expand this life-saving program to children aged one to seven passed a committee this week.
• Manufacturing Promotion – SB 528 creates a Chief Manufacturing Officer, the

Florida Manufacturing Promotional Campaign, and Florida Manufacturers’ Workforce Development Grant Program. This bill cleared its second committee in two weeks.

• Health Care Provider Scope of Practice – Two bills advanced this week that would increase the ability of certified registered nurse anesthetists (HB 375) and certified psychiatric mental health advanced practice registered nurses (HB 301) to perform certain services autonomously (without an established supervisory physician protocol). Both bills now go to the floor. In an effort to address health care workforce shortages, increase access to care, and reduce costs, Florida TaxWatch research has generally supported the past expansion of scope of service for Advanced Practice Registered Nurses and Physician Assistants.

Action this Week on Other Bills Florida TaxWatch is Following

• Artificial Intelligence Bills of Rights – A priority of Governor DeSantis, SB 482 would provide protections that include: giving parents the right to control children’s interaction with chatbots; requiring chatbots to remind users they are not human; restricting AI companies from selling or disclosing personal information; protecting Floridians from unauthorized use of people’s names, images or likenesses.
• Data Center Regulation – SB 484 would ensure data centers cover the full cost of their massive electricity needs, shielding residents and businesses from paying some of the cost. The bill would also strengthen water permitting, including requiring data centers to use some reclaimed water.
• School Administrative Efficiency – The full Senate passed SB 320 this week. The bill aims to increase administrative efficiency and flexibility in public schools by streamlining administrative processes and revising requirements for teacher certifications and contracts, district budget transparency, and facilities management.