* —AMENDMENT-3- TITLE TAX EXEMPTION FOR TOTALLY AND PERMANENTLY DISABLED FIRST RESPONDERS PLACED BY BALLOT SUMMARY 2016 Florida Legislature Proposing an amendinent to the State Constitution to authorize a fist responder, who is totally and permanently disabled asa result of injuries sastained in the line of duty; to receive relief from ad valorem taxes AMENDING assessed on homestead property, ifauthorized by genera law. approved by voters, the amendment takes effect January 1, 2017. Article VI, Section 6, Article XIE AYES VOTE MEANS ANO VOTE MEANS ‘The Legislature would be authorized to enact fullor Because property tax amendments must be anthorized partial property tax exemption on homestead property in the Florida Constitution, te Legislature would be for fist responders who are totally and permanently _unable to provide a new property tax amendment for disabled asa result ofan injury sustained intheline __ disabled first responders. of duty. The amendment itself does not grant the exemption, a subsequent Legislature would have to pass law providing the exemption — 9 —————____ int ui vorer cue“This would be a way to pay back fist responders for the sacrifice they make for the citizens of Florida, When a frst responder becomes totally and permanently disabled in the line of duty while protecting and serving Floridians, helping them redace or eliminate their property tax bill justified, In order for the exemption to become law it would stil have to go through the democratic process, asthe Lepislature would have to pass implementing legislation in order forthe exemption to be granted. CONS “The exemption would i ease the complexity and ‘non-uniformity of Florida's property tax system, ‘The system already does not treat all taxpayers the same and an exemption based on occupation is unwarranted, ‘Expanding the eurrent exemptions to include frst responders could create a ‘slippery slope,” leading to ‘other occupations becoming exempt, Exemptions also hhave the potential to reduce tax revenue and funding forschools and local governments or shift the tax burden to others ANALYSIS ‘Ad valorem (property) taxation in Florida provides approximately $28 billion to school districts, cities, counties, and special districts, ‘The tax applies to the market value of eal property, adjusted for any diffecentils, assessment caps, and exemptions, The average millage rate (tax rate) in the states 18.2.mills, ‘or $18.20 per $1000 of taxable value. Businesses (and property owners who rent property) also are subject to property taxes on thei tangible personal property FLORIDA TARNATCH (TBP). Household items are not subject tothe tax, BETA TPP WE ae te by DsnEeT om Ue niachinery, equiparent furniture, Computers, signs, supplies, and other such property ‘there area number of exemptions to property taxes. ‘New exemptions or anything that eanses property tobe assessed a ess than fll value must be authorized in the constitution, ‘The changes propased by Amendment 3 cannot be done solely statutorily Article VI, section 3(b) ofthe Florida Constitution curtently provides for property tax exemptions oft least $500 for widows and widowers, blind persons, and persons who are totally and permanently disable. “The Legislature implemented these exemptions by totally exempting homestead property owned by quadriplegic, paraplegic, hemiplegic, or other totally and permanently disabfed person who must use a ‘wheelchair for mobility or who is legally blind, Except for quadtiplegics, the other disabled persons must meet income limitations to qualify! Article VI, section 6 provides (no logistation required) «property tex discount for veterans who are age 6S or older who are partially or totally permanently disabled. ‘The disability must be combat related and the veteran must have been honorably discharged. ‘The discount is equal to the percentage of the veteran's disability. Inaddition, Article VI, section 6 authorizes the Legislature to provide, by general lw, property tax relief to the surviving spouse of veteran who died rom service-connected canses while on active duty, as well asthe surviving spouse ofa first responder who dled in the line of duty. v‘The exemptions forthe surviving spouses of veterans a FRCRESPTTUETS ATE BET CAAT BY WE ‘Legislature: "First responder” is defined wa law enforcement offices correctional offices, «firefighter, an emergency medical technician, ora paramedic. For fics responders, “in the line of duty” is defined in igeneral lw to include: + Engaging inlaw enforcement; + Peeforming an activity relating to fire suppression and prevention; Responding to a hazardous material emergency; + Performing rescue activity; + Providing emergency medical services; Performing disaster relief activity; + Otherwise engaging in emergency response activity; oF Engaging in a training exercise related to any cof the events or activities enumerated in this subparagraph ifthe training has been authorized by the employing entity. Amendment 3 requires that the connection between a disability and service in the line of duty shall not bbe presumed but must be determined as provided by general fa. Italso provides thatthe term “disabilit does not include a chronic condition or chronle Gisease, unless the jty sustained in the line of duty was the sole cause of the condition or disease, Teappears that many totally and permanently disabled fest sesponders may be able to qualify for the exemption provided in Article VU section 3(8)-" ‘The current exemption has a requirement that other totally and peemanently disabled persons must “use a TH 2016 VOU * ‘wheelhait for mobility? This may restrict the number ope responete thar cout liye Te fa Tat be worked ont by the Legislanuve, However; there — iso assurance the 2017 Leglelatue, ora subsequent cone, willpass such abil, The 2016 Legislatere didnot ts consider an implementing bill for Amendment 3 FISCAL IMPACT Financial impact statements! are not required for amendments proposed by the Legislature, so Amendment 3 does not have one, Hloweves, the state Revenve Estimating Conference examined the ‘amendment ints Impact Conference. ‘the conference adopted a “zero” estimate for the amendment because the Legislature would stil have to pass an implementing bill. But work papers show it was cstimate tthe exemption would be worth between $1.2 millon and $6.4 million inthe fist year! Even atthe highest estimate, thi approximately two ‘one hundredths of a percent of Florida’ $28 billion in property tax collections. These estimetes assume current millage rates Ifthe amendment passes, itis not certain property tax revenues will be reduced by this amount fatal Local governments may adjust millage rates to make up forthe lost taxable value, Newly qualified totally and permanenty disabled first responders would certainly save on property taxes (in comparison to property tax due without the exemption) butat least some ofthat savings could be shifted to other property taxpayers, FS 00a7 Fic Better oats aan! poe Eating secon any propored conattions|zmendmert WRI ENCE on (ER GUIDEisno.assarance the exempt by the Legislature, but the Joint Resolution creating ‘proposed Amendment 3 received a unanimous vote in both the House and Senate during the 2016 legislative session, ‘The amendment could serve to compensate— in relatively minor way—frst responders who are totally and permanently disabled while caying out their duties to protect Floridians. There are currently property tax exemptions for disabled persons in Florida and this may serve to allow more disabled fest responders to qualify for tax elie Itis a smal revenue impact fora big sacrifice ofthe Sunshine State's totally and permanently disabled fist responders and should receive the approval of the voters. FLORIDA TAXWATCH