Launch Pad

Public Policy Update

Hello everyone. We are about three weeks away from the scheduled end of the legislative session and I’m happy to report that we had some very good news drop regarding the Business Rent Tax (BRT). 

On Monday, the House Ways and Means Committee filed PCB WMC5, otherwise known as the “tax package,” and passed it on a 16 – 6 vote. Contained within PCB WMC5 is another cut to the BRT that would kick in on July 1st. The cut would drop the state sales tax on commercial leases from 2% down to 1.25% for one year! 

Remember, the current BRT is set at 4.5%, but it is expected to drop to 2% in June based on legislation that was passed in 2021. So, you will actually see two reductions to the BRT this year if the House tax package passes as is – a drop to 2% in June followed by a drop to 1.25% in July.

Since being filed on Monday, PCB WMC5 has now been assigned a bill number that you can easily track – HB 7073. It’s waiting to receive its committee references, which will most likely be the Appropriations Committee, but the tax package usually has a very quick, if not direct path to the chamber floor. 

The Senate has since followed suit and filed a preliminary draft of their version of the tax package in SPB 7074. Since it’s preliminary, we don’t have the contents of the bill just yet, but it is scheduled to be heard next week on 2/20 in the Finance and Tax Committee so we will have all the details then. Like any other bill, once both chambers pass their respective tax package bills they will need to reconcile them if there are differences. So, stay tuned for more information on this exciting news.

Staying on the topic of the BRT, Florida Realtors published new research this week that examines the benefits of eliminating the tax entirely. Long story short, if the state were to invest an estimated $976 million to do away with tax, the economic benefits to Florida would be tremendous. In just the first year alone the state would see an additional $4 billion in new business growth and operations. That number then grows to nearly $20 billion over five years. The state would also be looking at more than 58,000 new jobs over five years and an additional $340 million each year in recurring spending.

This research helps make the case that eliminating the BRT would be one of the best investments Florida could make. We provided this new research to lawmakers who are involved in the tax package process and encouraged them to review it as they consider the proposed bills. 

I also wanted to mention that we initiated a limited Call for Action (CFA) this week regarding HB 979, one of the estoppel certificate bills we are supporting this session. Its companion bill has already been passed by the Senate, but the House version still has to get through the Judiciary Committee before it goes to the floor. 

HB 979 is important because it places a permanent cap on estoppel certificate fees, prevents estoppel certificate add-on fees and significantly speeds up the time in which these documents must be provided. We wanted the members of the Judiciary Committee to hear directly from Realtors who live in their districts on the importance of the bill so they have a complete picture of its impact. 

Based on the feedback we have received so far, it appears that the CFA has been a big success and I can’t thank those of you who participated in it enough. We anticipate that it will be heard next week and will of course report on the outcome.

2024 Legislative Session

Below is the current list of bills that we are monitoring closely. The color code for the bill list is as follows: 

• Green = Florida Realtors supports the bill. 
• Yellow = Florida Realtors is currently neutral on the bill but is working through some concerns with the bill sponsor(s). 
• Red = Florida Realtors opposes the bill. 
• No Color = Florida Realtors is watching the bill but has no stance or concerns with it.

Housing and Taxation

• Development (Live Local Act-related): SB 328 and HB 1239 prohibit cities and counties from restricting the floor area ratio as well as density for Live Local proposed developments. It also authorizes cities and counties to restrict the height of proposed developments under certain circumstances. It makes remedial and clarifying changes to property tax exemptions granted by the Live Local Act and appropriates $100 million to the Florida Housing Finance Corporation for the Hometown Heroes Program.  
• Recent Actions: SB 328 was unanimously passed by the Senate. HB 1239 was reported favorably out of its first committee, the State Affairs Committee, and now heads to its final committee, the Appropriations Committee. 
• My Safe Florida Home Program: SB 7028 and HB 1263 specify eligibility requirements for hurricane mitigation inspections under the program and authorizes an applicant to receive a home inspection for the program without being eligible for a grant or applying for a grant. They also revise the improvements for which grants may be used and provide an appropriation for $100 million to provide mitigation grants for the program and $7 million for administrative costs.  
• Recent Actions: SB 7028 was unanimously passed by the Senate. HB 1263 unanimously passed its second committee on 2/13 and now heads to its final committee, the Commerce Committee. The amendment passed in the State Administration & Technology Appropriations Subcommittee removes the appropriation for $107 million, as the funds will come through the budget instead.
• My Safe Florida Condominium Pilot Program: SB 1366 and HB 1029 establish the My Safe Florida Condominium Pilot Program within DFS and provides requirements for DFS to implement the program. It also establishes the eligibility for the pilot program.   
• Recent Actions: SB 1366 is in its final committee, the Appropriations Committee, waiting to be placed on the agenda. HB 1029 unanimously passed its second committee on 2/13 and now heads to its final committee, the Commerce Committee
• Taxation (Business Rent Tax Cut-related): HB 7073, known as the House version of the tax package, decreases the business rent tax rate to 1.25% for one year. It also provides for several tax holidays, makes changes to sales tax law, limits all new Tourist Development Taxes (TDTs) to 6 years and requires existing TDTs to be approved by voters by July 1, 2029, to continue (with exceptions), and allows certain counties designated as an area of critical concern to use certain local tax surpluses to provide affordable housing to workers, among other provisions. 
• Recent Actions: the bill, first filed as PCB WMC5, was heard in the Ways & Means Committee on 2/14 and passed on a 16 – 6 vote. It is awaiting further committee references. 
• Taxation: SB 890 and HB 835 exempt impact-resistant windows, impact-resistant doors, and impact-resistant garage doors from sales and use tax from July 1, 2024-June 30, 2026.  
• Recent Actions: SB 890 passed its first stop, Commerce and Tourism, unanimously on 1/16. HB 835 has been referred to three committees and is waiting to be placed on agenda. 
• Affordable Housing Property Tax Exemptions for Accessory Dwelling Units: SB 1440 and HB 1299 amend the local option tax exemption for affordable housing to provide that, in addition to existing options for what properties may receive the exemption, cities and counties may exempt up to 100% of the assessed value of an ADU meeting certain affordable housing requirements. 
• Recent Actions: SB 1440 is in its second of three committees waiting to be placed on the agenda. HB 1299 was referred to three committees and is waiting to be placed on agenda. 
• Disclosure of Estimated Ad Valorem Taxes: SB 380 and HB 295 require that online listings of residential property include an estimate of property taxes the purchaser would pay based on a formula developed by DOR. A listing platform must alternatively provide a link to the respective property appraiser’s website for a more detailed property tax estimate for the residential parcel. The bill further requires each property appraiser to provide DOR with information needed to provide the estimate. DOR must publish this information alongside a formula to calculate an estimate of ad valorem taxes annually.   
• Recent Actions: SB 380 is in its second of three committees. HB 295 unanimously passed its second committee and now heads to its final committee, the Commerce Committee.
• Local Business Taxes: HB 609 and SB 1144 repeal Florida Statute Chapter 205 in its entirety. Chapter 205 authorizes the Local Business Tax, which represents the taxes charged and the method by which a local government grants the privilege of engaging in or managing any business, profession, and occupation within its jurisdiction. Counties and municipalities may levy a business tax, and the tax proceeds are considered general revenue for the local government. This tax does not refer to any fees or licenses paid to any board, commission, or officer for permits, registration, examination, or inspection. To levy a business tax, the governing body must first give at least 14 days of public notice between the first and last reading of the resolution or ordinance by publishing a notice in a newspaper of general circulation within its jurisdiction. The public notice must contain the proposed classifications and rates applicable to the business tax. A number of other conditions for levy are imposed on counties and municipalities.  
• Recent Actions: HB 609 passed its last committee on 2/14 by a 12 – 7 vote and now moves to the House floor. The bill now provides a limitation on the amount of revenue a local government may receive from local business taxes and provides guidance and conforming changes. SB 1144 is waiting to be placed on an agenda. 
• Reduction of Assessed Value: SB 976 / 978 and HB 1511 / 1513 proposes an amendment to the State Constitution to allow counties to reduce the assessed value of a homestead property for the portions of such property used as living quarters for the property owner’s parent or grandparent who is 62 years of age or older. The bill would also remove current provisions limiting the exemption to increases in assessments resulting from construction or reconstruction of such living quarters and limiting the amount of such exemption.   
• Recent actions: SB 976 and SB 978 were unanimously passed by the Community Affairs Committee on 1/22 and are waiting to be placed on the agenda of their second of three committees. HB 1511 and HB 1513 were referred to three committees and are waiting to be placed on agenda. 
• Improvements to Real Property: SB 770 and HB 927 revise provisions concerning residential or commercial property owners in applying for qualifying improvement funding with local governments.   
• Recent Actions: SB 770 was passed by the Senate on a 38 – 2 vote. HB 927 passed its second committee on 2/14 on a 19 – 2 vote and now heads to its final committee, the State Affairs Committee. 
• Taxation: SB 1030 and HB 1001 authorize a county or school board to exclude rent or license fees from the discretionary sales surtax imposed, under certain conditions, upon other provisions.   
• Recent Actions: SB 1030 unanimously passed its second committee on 2/13 and now heads to its final committee, the Appropriations Committee. HB 1001 unanimously passed its final committee on 2/14 and now heads to the House floor. The bill was substantially changed and no longer authorizes the local option sales tax on rental of commercial property. 
• Homestead Exemption Increase: HB 7015 proposes an amendment to the State Constitution to increase the maximum amount of homestead exemption for all levies other than school district levies from a maximum amount of $25,000 to a maximum of $50,000 for homestead properties with an assessed value greater than $50,000.  
• Recent Actions: HB 7015 was filed as a PCB and heard in the Ways and Means Committee on 1/8. It has also been referred to the State Affairs Committee.
• Annual Adjustment to Homestead Exemption Value and Exemption of Homesteads: HB 7017 and HB 7019 propose an amendment to the State Constitution requiring the $25,000 of assessed value which is exempt from all ad valorem taxes other than school district taxes be adjusted annually for inflation. It would also apply to the increase in the existing $25,000 assessed value amount which is exempt from all ad valorem taxes other than school district taxes in the constitutional amendment proposed by HB 7015, if that amendment is approved by voters.  
• Recent Actions: HB 7017 and HB 7019 passed the House on 2/1 on an 86 to 29 vote. They were received by the Senate and referred to the Senate Appropriations Committee. 
• Taxation: SB 7074, known as the Senate version of the tax package, has been preliminarily filed by the Senate.
• Recent Actions: SB 7074 will be heard in the Finance and Tax Committee on 2/20 at 1:30 p.m. 
• Tangible Personal Property Tax Exemption: HB 7075 and HB 7077 propose an amendment to the State Constitution requiring an increase in ad valorem tax exemption on assessed value of tangible personal property from twenty-five thousand dollars to fifty thousand dollars.
• Recent Actions: The bills, first filed as PCB WMC6 and PCB WMC7, were heard in the Ways & Means Committee on 2/14 and passed on a 15 – 7 vote. They are awaiting further committee references.

Community Associations/Insurance/Business Issues

• Community Associations: HB 1021 and SB 1178 require an association managing a condominium with 25 or more units to post digital copies of official condominium documents on its website. These documents include things such as condominium bylaws, articles of incorporation, contracts/documents to which the association is a party, the annual budget, financial reports, building inspection reports, structural integrity reserve studies, etc.  
• Recent Actions: SB 1178 unanimously passed its second committee on 2/13 and now heads to its final committee. HB 1021 also passed its second committee, unanimously, on 2/13 and now heads to its final committee. 
• Estoppel Certificates: SB 278 and HB 979 deal with estoppel certificates. SB 278 was amended to speed up the delivery of estoppel certificates from 10 to 5 days, lower the estoppel fee cap from $299 to $250, and prohibit other fees from being charged.
• Recent actions: SB 278 has been passed by the Senate. HB 979 passed its first committee and is waiting to be placed on the agenda of its final committee, the Judiciary Committee. PLEASE NOTE: We have initiated a Call for Action on HB 979 encouraging members of the Judiciary Committee to vote in favor of the bill when it comes before them.
• Homeowners’ Associations: SB 7044 and HB 1243 involve changes to the laws governing homeowners’ associations (HOAs), including requiring HOAs with more than 100 parcels to provide homeowners with important governing documents. 
• Recent Actions: SB 7044 unanimously passed its final committee on 2/14 and is scheduled to be considered by the full Senate on 2/21. HB 1243 unanimously passed its second committee on 2/14 and now heads to its final committee, the Commerce Committee. 
• HOA Disclosure Requirements for Prospective Purchasers: HB 627 and SB 1234 require prospective purchasers of a parcel subject to association membership to be provided with certain documents, in addition to disclosure summary, before executing contract. They also authorize prospective purchasers to cancel their contract within specified time frame.  
• Recent Actions: HB 627 and SB 1234 have both been assigned to three committees of reference and have not yet been placed on an agenda.  
• Interstate Mobility: In an effort to attract professions needed to keep up with Florida’s continued growth, SB 1600 and HB 1381 provide a truncated path to licensure for professionals in other states who would be regulated by the Department of Business and Professional Regulation in Florida.   
• Recent Actions: SB 1600 unanimously passed its second assigned committee and now moves on to its final committee, the Fiscal Policy Committee. HB 1381 is waiting to be heard in its first of three committees.
• Department of Business and Professional Regulation: SB 1544 includes language in an otherwise wide-ranging DBPR bill that would repeal the requirement that real estate licensee applicants pass the state examination within two years of passing the prelicensure course. HB 1335 was previously identical to SB 1544 but has since been amended to not include the real estate licensee changes that are in the Senate bill.  
• Recent Actions: SB 1544 unanimously passed its second assigned committee on 2/13 and now heads to its final committee, the Fiscal Policy Committee. HB 1335 unanimously passed its final committee on 2/15 and now heads to the House floor.
• Flood Disclosure in the Sale of Real Property: SB 484 and HB 1049 require a seller of real property to disclose in writing certain flood information to a prospective purchaser before executing a contract for the sale of the property.  
• Recent Actions: SB 484 unanimously passed its first assigned committee and now heads to its second of three committees. HB 1049 also passed its first assigned committee and now heads to its second of three committees. 

Environment

• Department of Environmental Protection: HB 1557  and SB 1386 require the Department of Environmental Protection to conduct enforcement activities for violations of certain onsite sewage treatment and disposal system regulations in accordance with specified provisions and requires certain facilities and systems to include a domestic wastewater treatment plan as part of a basin management action plan for nutrient total maximum daily loads, among other things.    
• Recent Actions: SB 1386 unanimously passed its second committee on 2/13 and now heads to its final committee, the Fiscal Policy Committee. HB 1557 was unanimously passed by the House on 2/15.
• Ratification of the Department of Environmental Protection’s Rules Relating to Stormwater: SB 7040  and HB 7053,  a specified rule relating to environmental resource permitting for the sole and exclusive purpose of satisfying any condition on effectiveness pursuant to s. 120.541(3), F.S., which requires ratification of any rule exceeding the specified thresholds for likely adverse impact or increase in regulatory costs; ratifying rule 62-330.010, Florida Administrative Code, with specified changes; requiring that specified future amendments to such rule be submitted in bill form to and approved by the Legislature, etc.  
• Recent actions: SB 7040 unanimously passed its final committee on 2/14 and now heads to the Senate floor. HB 7053 unanimously passed its final committee on 2/15 and now heads to the House floor. 

Private Property Rights/Property Management/Other

• Vacation Rentals: SB 280 and HB 1537 preempt the licensing of vacation rentals to the state but allows local governments to create a vacation rental registration program. The bill also would require advertising platforms to collect and remit taxes for certain transactions, limit local government registration requirements, allow local governments to revoke a registration under certain conditions, allows local governments to fine a vacation rental operator under certain conditions, and require advertisements to attest to certain information, among other things. The bills were both amended and are no longer identical but the overall intent of the bills remain the same.  
• Recent actions: SB 280 has passed on the Senate floor and is now in House Messages. HB 1537 had a committee removed and is now in its final committee, the Commerce Committee, waiting to be placed on an agenda. 
• Residential Building Permits: HB 267 and SB 684 both deal with building regulations. HB 267 requires governing bodies to create a program to expedite the process for issuing residential building permits. The bill also provides requirements for governing bodies & applicants and authorizes applicants to use a private provider for certain reviews. Additionally, the bill authorizes governing bodies to issue a temporary parcel identification number and revises provisions relating to acquiring building permits for residential dwellings and reduces permit fees. HB 267 has been amended twice, moving it further away from the language of SB 684.     
• Recent actions: HB 267 passed its final committee on 2/15 on a 16 – 2 vote and now heads to the House floor. SB 684 passed its first committee, the Community Affairs Committee, on 2/6 by a 5 – 3 vote and now heads to its second of three committees, the Fiscal Policy Committee.
• Possession of Real Property/ Property Rights: HB 621 and SB 888 Providing that a person is presumed to be a transient occupant if he or she is unable to produce specified documentation. The bill makes a technical change by authorizing property owners or their authorized agents to request assistance from the sheriff from where the property is located for immediate removal of unauthorized occupants from a residential dwelling under certain conditions. In addition, it authorizes a sheriff to arrest an unauthorized occupant for legal cause. Finally, the bill provides criminal penalties for a person who unlawfully detains, or occupies or trespasses upon, a residential dwelling and who intentionally damages the dwelling causing at least a specified amount damages. 
• Recent actions: HB 621 is in its final committee, the Judiciary Committee, waiting to be placed on the agenda. SB 888 is the senate version, but the bills do not match up regarding the logistics of how and who will be removing the squatters if information cannot be supplied. SB 888 passed its second committee, the Criminal Justice Committee, on 2/6 by a 7 – 1 vote and now heads to its final committee, the Rules Committee. 
• Attorney Fees and Costs: SB 702 and HB 1167 require courts to award reasonable attorney fees and costs to prevailing defendants in civil litigation concerning property rights, if the improvements made by the defendant property owner were made in substantial compliance with, or in reliance on, environmental or regulatory approvals or permits issued by a political subdivision of the state or a state agency. For purposes of the bill, the term “property rights” includes, but is not limited to, use rights, ingress and egress rights, and those rights incident to land bordering upon navigable waters as described in the riparian rights statute.   
• Recent Actions: SB 702 was unanimously passed by the Senate. HB 1167 is in its final committee, the Judiciary Committee, waiting to be placed on an agenda. 
• Expedited Approval of Residential Building Permits: HB 665 and SB 812 require certain governing bodies to create or update a program to expedite the process for issuing residential building permits, among other things.
• Recent actions: HB 665 has passed all committee stops and is on the floor for final vote. SB 812 has also passed all committee references and is on the floor for final vote.

NAR President Kevin Sears Provides Advocacy Update

Last week, NAR President Kevin Sears discussed the association’s recent advocacy efforts with Chief Advocacy Officer Shannon McGahn. Check out the video direct from Capitol Hill.

NAR Weighs in on Independent Contractor Classification Rule

NAR submitted 2 letters to the U.S. Department of Labor (DOL) expressing concerns about the new Employee or Independent Contractor Classification Under the Fair Labor Standards Act rule and how it may impact real estate professionals. NAR is requesting that DOL delay implementation until the agency issues additional guidance. NAR has also requested industry-specific guidance that considers the Internal Revenue Code carve-out for real estate agents, and that recognizes state laws governing how real estate professionals should be classified. Read the full story here.

NAR Submits Comments on Veterans Affairs' Minimum Property Requirements

NAR commented on an advanced notice of proposed rulemaking (AS02) from the U.S. Department of Veterans Affairs (VA) on the VA’s minimum property requirements (MPRs). The MPRs are intended to ensure that VA borrowers have safe and secure housing, but REALTORS® have observed that they can put VA buyers at a disadvantage. NAR recommends adopting a framework of minimum standards similar to those of Fannie Mae and Freddie Mac to eliminate confusion and competitive disadvantages. Read the full story here.

Please reach out to us at publicpolicy@floridarealtors.org with any questions you may have.

Sincerely,

Andy Gonzalez
Vice President of Public Policy
Florida Realtors®