Florida Legislature Looks to Provide Relief to Seniors With This New Bill

Miami Beach, FL.Photo byDenys KostyuchenonUnsplash

With the cost of living skewing ever-higher, and housing prices continuing their surge throughout the state, Florida residents have been facing an affordability crisis. This is even more true for those living on fixed incomes from pensions, social security, or some combination thereof. In an effort to provide some relief from those pressures, the Florida Senate has proposed some changes to the state's tax code in one of the legislature's newest proposed bills.

The measure - Senate Joint Resolution 126 (SJR-126) - proposes changes to one the state's most-used features: the homestead tax exemption. As currently written, the bill would raise the real estate value subject to the homestead tax exemption for residents over 65 years of age who have owned their homes for 25 years or more.

The 25-year threshold marks the highest tax exemption allowed under the homestead laws, with the exemption being equal to the assessed value of the property in such situations. Currently, the maximum assessed value allowed for these individuals is $250,000. The proposed legislation would raise that maximum to $300,000 for those who qualify.

Tampa, FL.Photo byAnita DenunzioonUnsplash

Given that the price of real estate in the Sunshine State has surged 26% since January of 2021, the measure could be perceived as merely keeping pace with the values of land in the area. According to real estate giant Redfin, the median sale value of a home in Florida at the close of 2022 was $384,000 - a value still higher than even the revised homestead exemption proposed in the new bill.

The tax advantages offered by Florida have long made the state an attractive retirement destination for seniors of all income levels. Wealthier retirees benefit from the state's lower property taxes and non-existant income tax, while middle and lower-income residents receive exemptions and other credits. As a result, state legislatures often propose numerous bills focusing on the tax code throughout each session.

In the current legislative section alone, bills have been presented modifying the estate tax system, credits for homeowners who provide affordable housing, the aforementioned homestead exemptions, fuel taxes, and matters dealing with local business owners who enter disputes with the IRS. Each aims to provide some measure of relief to a portion of the state's residents, but none offers as large a credit or exemption as the homestead measures do.

SJR-126 has passed the committee vote process and is currently awaiting hearings and a vote within the Public Affairs Committee and is scheduled for discussion on February 15th, 2023. Those who would like to read the full proposal and text of the legislation can find it here.