Deployed Service Members (Additional Operations

REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Tax Exemption for Deployed Servicemembers - 2 Year Applicability - UPDATED Bill Number(s): House proposed language

x Entire Bill Partial Bill: Sponsor(s): Month/Year Impact Begins: Upon becoming law and applies to ad valorem tax rolls for 2015 and 2016 Date of Analysis: 1/2/16

Section 1: Narrative a. Current Law: A service member who receives a homestead exemption may receive an additional ad valorem tax exemption on that homestead property if he or she was deployed during the preceding calendar year on active duty outside the continental United States, Alaska, or Hawaii in support of: Operation Noble Eagle, which began on September 15, 2001; Operation Enduring Freedom, which began on October 7, 2001; Operation New Dawn, which began on September 1, 2010, and ended on December 15, 2011; or Operation Odyssey Dawn, which began on March 19, 2011, and ended on October 31, 2011; b. Proposed Change: The bill proposes that service members who were also in support of the following operations qualify for the exemption: Operation Joint Guardian, which began on June 12, 1999; Operation Octave Shield, which began in 2000; Operation Trans-Sahara Counterterrorism Partnership, which began in June 2005; Operation Nomad Shadow, which began in 2007; Operation US Airstrikes Al Qaeda in Somalia, which began in January 2007; Operation Objective Voice, which began in 2009; Operation Georgia Deployment Program, which began in August 2009; Operation Copper Dune, which began in 2010; Operation Observant Compass, which began in October 2011; Operation Juniper Shield, which began in 2013; Operation Inherent Resolve, which began on August 8, 2014. This bill provides that the deadline for claiming the ad valorem tax exemption in 2014 is June 1, 2016; If an application is not timely filed, a property appraiser may grant the exemption under certain conditions; If the property appraiser denies an application, the applicant may file a petition with the VAB which requests that the exemption be granted under certain conditions. The section 2(1) provides how to use the number of days in deployment for amount refund calculation. The act will take effect upon becoming law and first applies to ad valorem tax rolls for 2015 and 2016. Section 2: Description of Data and Sources Data from U.S. Department of Defense provided by the Florida Department of Military Affairs Florida Department of Revenue, Florida Final 2014 Tax Rolls A deployment event is defined as a deployment of a member within a service and component. A member may have overlapping deployment events between multiple services and components. Each individual event is counted in the total. A member is counted once for each service and component under which they have been deployed. Based on the Defense Manpower Data Certer, the % with deployment experience of total deployment is 52.3%. Section 3: Methodology (Include Assumptions and Attach Details) There are currently 1,410 service members claiming the exemption. The school and non-school millage rates were used to calculate the average value of exemption claimed. We then looked at the deployment data classified by family status and found that 61% of deployed service members are either married, have children, or both. When we looked at the deployment data classified by state of legal residence, we found that 10.46% of deployed members had a legal residence in Florida. To get the total number of Florida deployments, we took 10.46% of the number of deployed soldiers in 2014. We got our estimates by multiplying the total number of Florida deployments by the average tax break (school and non- school), the % of deployed soldiers that own homes in Florida, and the % of deployed soldiers that are involved in the above defined operations. For the high we assumed that 61% of deployed soldiers own homes and 50% of deployed soldiers were involved in these operations, for the middle it was assumed that 40% own homes and 40% were involved in the operations, and for the low we assumed that 30% of deployed soldiers own their own homes and 30% were involved with the operations in 2014. We then grew these numbers by the predicted homestead growth rates.

46 REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Tax Exemption for Deployed Servicemembers Bill Number(s): House proposed language

Section 4: Proposed Fiscal Impact

School High Middle Low Cash Recurring Cash Recurring Cash Recurring 2016-17 $(2.4 M) $(1.2 M) $(1.2 M) $(0.6 M) $(0.6) $(0.3) 2017-18 $(1.2 M) $(1.2 M) $(0.6 M) $(0.6 M) $(0.4) $(0.4) 2018-19 $(1.3 M) $(2.3 M) $(0.7 M) $(0.7 M) $(0.4) $(.04) 2019-20 $(1.3 M) $(2.3 M) $(0.7 M) $(0.7 M) $(0.4) $(0.4) 2020-21 $(1.3 M) $(2.3 M) $(0.7 M) $(0.7 M) $(0.4) $(0.4)

Non- High Middle Low School Cash Recurring Cash Recurring Cash Recurring 2016-17 $(3.4 M) $(1.7 M) $(1.8 M) $(0.9 M) $(1.0 M) $(0.5 M) 2017-18 $(2.8 M) $(1.8 M) $(0.9 M) $(0.9 M) $(0.5 M) $(0.5 M) 2018-19 $(2.9 M) $(1.9 M) $(1.0 M) $(1.0 M) $(0.6 M) $(0.6 M) 2019-20 $(2.0 M) $(1.9 M) $(1.0 M) $(1.0 M) $(0.6 M) $(0.6 M) 2020-21 $(2.0 M) $(2.0 M) $(1.0 M) $(1.0 M) $(0.6 M) $(0.6 M)

List of affected Trust Funds:

Section 5: Consensus Estimate (Adopted: 1/08/2016): The Conference adopted the low estimate.

School Non-School Total Local/Other

Cash Recurring Cash Recurring Cash Recurring 2016-17 (0.6) (0.3) (1.0) (0.5) (1.6) (0.8) 2017-18 (0.4) (0.4) (0.5) (0.5) (0.9) (0.9) 2018-19 (0.4) (0.4) (0.6) (0.6) (1.0) (1.0) 2019-20 (0.4) (0.4) (0.6) (0.6) (1.0) (1.0) 2020-21 (0.4) (0.4) (0.6) (0.6) (1.0) (1.0)

47 REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Tax Exemption for Deployed Servicemembers Bill Number(s): SB 160

x Entire Bill Partial Bill: Sponsor(s): Senator Gaetz Month/Year Impact Begins: Upon becoming law and applies to ad valorem tax rolls for 2015 and 2016 Date of Analysis: 10/2/15

Section 2: Description of Data and Sources Data from U.S. Department of Defense provided by the Florida Department of Military Affairs Florida Department of Revenue, Florida Final 2014 Tax Rolls A deployment event is defined as a deployment of a member within a service and component. A member may have overlapping deployment events between multiple services and components. Each individual event is counted in the total. A member is counted once for each service and component under which they have been deployed. Based on the Defense Manpower Data Center, the % with deployment experience of total deployment is 52.3%. Section 3: Methodology (Include Assumptions and Attach Details) There are currently 1,410 service members claiming the exemption. The school and non-school millage rates were used to calculate the average value of exemption claimed. We then looked at the deployment data classified by family status and found that 61% of deployed service members are either married, have children, or both. When we looked at the deployment data classified by state of legal residence, we found that 10.46% of deployed members had a legal residence in Florida. To get the total number of Florida deployments, we took 10.46% of the number of deployed soldiers in 2014. We got our estimates by multiplying the total number of Florida deployments by the average tax break (school and non- school), the % of deployed soldiers that own homes in Florida, and the % of deployed soldiers that are involved in the above defined operations. For the high we assumed that 61% of deployed soldiers own homes and 50% of deployed soldiers were involved in these operations, for the middle it was assumed that 40% own homes and 40% were involved in the operations, and for the low we

48 REVENUE ESTIMATING CONFERENCE Tax: Ad Valorem Issue: Tax Exemption for Deployed Servicemembers Bill Number(s): SB 160 assumed that 30% of deployed soldiers own their own homes and 30% were involved with the operations in 2014. We then grew these numbers by the predicted homestead growth rates.

Section 4: Proposed Fiscal Impact

School High Middle Low Cash Recurring Cash Recurring Cash Recurring 2016-17 $(2.4 M) $(1.2 M) $(1.2 M) $(0.6 M) $(0.6) $(0.3) 2017-18 $(1.2 M) $(1.2 M) $(0.6 M) $(0.6 M) $(0.4) $(0.4) 2018-19 $(1.3 M) $(1.3 M) $(0.7 M) $(0.7 M) $(0.4) $(.04) 2019-20 $(1.3 M) $(1.3 M) $(0.7 M) $(0.7 M) $(0.4) $(0.4) 2020-21 $(1.3 M) $(1.3 M) $(0.7 M) $(0.7 M) $(0.4) $(0.4)

Non- High Middle Low School Cash Recurring Cash Recurring Cash Recurring 2016-17 $(3.4 M) $(1.7 M) $(1.8 M) $(0.9 M) $(1.0 M) $(0.5 M) 2017-18 $(1.8 M) $(1.8 M) $(0.9 M) $(0.9 M) $(0.5 M) $(0.5 M) 2018-19 $(1.9 M) $(1.9 M) $(1.0 M) $(1.0 M) $(0.6 M) $(0.6 M) 2019-20 $(1.9 M) $(1.9 M) $(1.0 M) $(1.0 M) $(0.6 M) $(0.6 M) 2020-21 $(2.0 M) $(2.0 M) $(1.0 M) $(1.0 M) $(0.6 M) $(0.6 M)

List of affected Trust Funds:

Section 5: Consensus Estimate (Adopted: 10/16/2015): The Conference adopted the low estimate.

School Non-School Total Local/Other

49 SB 160 Deployed Veterans Historic utilization of exemption

A BC D E F G H I J K L 1 2015 2014 2013 2012 2011 2 Parcels Exempt Value Parcels Exempt Value Parcels Exempt Value Parcels Exempt Value Parcels Exempt Value 3 11 Alachua 5 $160,875 11 $282,136 17 $537,052 10 $291,588 4 12 Baker 5 13 Bay 30 $1,546,531 24 $1,074,707 50 $2,244,627 36 $1,641,133 58 $3,084,796 6 14 Bradford 4 $94,523 3 $35,971 5 $132,000 7 15 Brevard 62 $2,172,080 26 $1,256,420 27 $974,950 65 $1,796,720 8 16 Broward 27 $1,402,720 46 $2,986,120 48 $2,787,110 42 $2,452,530 15 $1,292,610 9 17 Calhoun 1 $55,567 1 $32,267 1 $81,467 10 18 Charlotte 1 $21,596 1 $21,143 1 $1,716 11 19 Citrus 1 $27,896 3 $150,993 2 $210,494 1 $17,772 3 $103,294 12 20 Clay 90 $4,680,236 80 $3,246,951 129 $5,993,378 302 $9,966,040 2 $7,064 13 21 Collier 1 $49,330 14 22 Columbia 7 $187,650 1 $19,041 2 $121,274 15 23 Miami-Dade 18 $1,257,766 23 $1,497,711 22 $1,322,116 17 $2,211,438 9 $403,474 16 24 DeSoto 3 $34,708 17 25 Dixie 1 $64,400 1 $64,400 1 $64,400 1 $64,400 1 $64,400 18 26 Duval 24 $1,520,349 99 $5,103,037 144 $9,133,728 347 $18,775,994 19 27 Escambia 36 $2,303,585 46 $3,054,249 68 $3,350,214 80 $2,997,949 20 28 Flagler 3 $131,438 7 $353,681 9 $304,680 14 $550,900 8 $262,836 21 29 Franklin 1 $8,425 1 $10,246 1 $62,401 22 30 Gadsden 1 $79,463 1 $42,295 8 $442,971 2 $35,136 23 31 Gilchrist 2 $82,406 2 $73,823 2 $85,820 2 $90,081 1 $66,168 24 32 Glades 25 33 Gulf 26 34 Hamilton 27 35 Hardee 2 $45,472 2 $32,818 1 $54,198 28 36 Hendry 1 $38,012 29 37 Hernando 6 $123,644 8 $165,754 9 $166,366 4 $176,612 30 38 Highlands 31 39 Hillsborough 129 $6,876,718 179 $9,606,158 243 $12,185,059 348 $14,116,031 32 40 Holmes 1 $3,296 1 $3,296 1 $3,287 1 $3,296 2 $72,248 33 41 Indian River 1 $13,021 1 $563 1 $14,343 34 42 Jackson 1 $42,776 3 $124,139 35 43 Jefferson 2 $91,517 1 $28,541 1 $27,879 3 $175,475 2 $103,664 36 44 Lafayette 37 45 Lake 3 $197,084 2 $95,417 4 $103,942 4 $134,104 3 $118,771

October 16, 2015 50 Impact Conference SB 160 Deployed Veterans Historic utilization of exemption

A BC D E F G H I J K L 1 2015 2014 2013 2012 2011 2 Parcels Exempt Value Parcels Exempt Value Parcels Exempt Value Parcels Exempt Value Parcels Exempt Value 383 46 Lee 4 $111,513 11 $445,743 12 $215,381 3 $107,358 39 47 Leon 9 $320,257 12 $711,422 9 $596,940 40 48 Levy 1 $113,142 1 $27,811 4 $85,026 4 $92,129 41 49 Liberty 42 50 Madison 43 51 Manatee 3 $202,368 5 $315,885 4 $372,585 6 $354,480 44 52 Marion 1 $837 2 $6,889 4 $66,957 9 $104,045 8 $200,338 45 53 Martin 3 $219,423 2 $188,016 1 $26,494 1 $48,629 1 $10,348 46 54 Monroe 2 $118,739 2 $22,017 2 $168,976 2 $240,352 2 $405,516 47 55 Nassau 4 $484,284 3 $249,037 9 $533,552 18 $1,346,960 3 $117,110 48 56 Okaloosa 362 $15,991,459 416 $18,505,985 347 $16,950,474 355 $14,543,310 391 $15,756,358 49 57 Okeechobee 1 $14,061 1 $10,392 50 58 Orange 20 $1,164,933 16 $1,181,547 25 $1,574,309 40 $2,374,809 5 $370,174 51 59 Osceola 3 $146,781 2 $76,211 6 $122,687 6 $336,544 52 60 Palm Beach 5 $562,257 4 $199,540 8 $580,318 3 $238,853 53 61 Pasco 14 $1,032,649 17 $905,670 21 $940,298 26 $1,287,392 54 62 Pinellas 15 $1,140,763 20 $1,242,475 36 $2,541,649 35 $1,008,218 35 $1,312,591 55 63 Polk 7 $248,706 11 $308,235 11 $430,732 12 $325,830 56 64 Putnam 3 $166,949 2 $67,278 4 $192,718 3 $172,134 57 65 Saint Johns 47 $3,050,048 29 $1,658,663 54 $3,536,892 94 $4,610,561 45 $2,764,325 58 66 Saint Lucie 9 $305,519 16 $487,067 11 $389,877 5 $143,411 59 67 Santa Rosa 183 $7,495,874 221 $8,854,776 275 $10,334,568 306 $11,945,167 197 $6,939,379 60 68 Sarasota 4 $161,909 4 $268,444 6 $365,373 3 $105,131 3 $91,615 61 69 Seminole 2 $56,683 10 $645,690 6 $270,451 6 $327,129 12 $1,112,241 62 70 Sumter 1 $20,820 63 71 Suwannee 64 72 Taylor 65 73 Union 4 $46,463 3 $45,957 3 $46,596 3 $47,212 1 $13,080 66 74 Volusia 13 $686,027 13 $502,803 16 $478,801 32 $1,632,194 11 $368,052 67 75 Wakulla 1 $87,559 2 $129,943 1 $14,458 68 76 Walton 24 $1,586,392 26 $1,481,401 34 $1,634,567 21 $1,163,961 14 $755,043 69 77 Washington 2 $72,299 6 $212,535 70 Total 1171 $57,740,756 1416 $67,401,124 1714 $83,069,160 2296 $98,851,001 854 $36,697,720 71 Average $49,309 $47,600 $48,465 $43,054 $42,972

October 16, 2015 51 Impact Conference SB 160 Deployed Service Members Exemptions-Impact Summary

A B C D E F G H I 1 country wide monthly data 2 Current Law Exemption Data 2014 (Florida) Currently Deployed Personnel Total

3 Number of Exemptions 1410 Married With Children 26,235

4 Number of Active Operations 2 Married Without Children 12,972 Average number of exemptions per 5 operation 705 Single with Children 3,843 6 Value of exempt homestead $ 67,207,238 Total Deployed 70,461 % Deployed married, 7 Average Florida Millage Rate (School) 7.133 have children, or both 61% Total Tax Value of Exemptions (School % of the deployed service members 8 Rate) $ 479,416 with legal Florida residence

9 Average Tax Break (School Rate) $ 340 10.46%

The % with deployment experience of the 10 Average Florida Millage Rate (Non-School) 10.639 total deployment is 52.3% Total Tax Value of Exemptions (Non-School 11 Rate) $ 715,018 based on DEC 2014 monthly data 12 Average Tax Break (Non-School Rate) $ 507 13 14 Nation-wide Data: Total Number of Deployed Service Members Total US reduce the multiple % overseas 15 Total active duty troop levels Deployment deployment overseas % Florida Floridian overseas counting by 50%

16 2012 1,388,028 16.65% 231,151 10.46% 24,178 12,089

17 2013 1,222,599 203,602 21,297 10,648

18 2014 1,216,690 202,618 21,194 10,597

19 School 20 Florida Information High Middle Low School 21 Total # of Deployments 10,597 10,597 10,597 High Middle Low

22 % that own homes 61% 40% 30% % involved w operations 50% 40% 30% 23 % involed with specified operations 50% 40% 30% % own home 61% 40% 30% 24 Average Tax Break $ 340 $ 340 $ 340 2015-2016 $ (1,098,936) $ (576,491) $ (324,276) 25 Fiscal Impact $ 1,098,936 $ 576,491 $ 324,276 2016-2017 $ (1,163,334) $ (610,274) $ (343,279) 26 Non-School 2017-2018 $ (1,213,590) $ (636,637) $ (358,109) 27 Total # of Deployments 10,597 10,597 10,597 2018-2019 $ (1,251,818) $ (656,691) $ (369,389) 28 % that own homes 61% 40% 30% 2019-2020 $ (1,289,873) $ (676,655) $ (380,618) 29 % involed with specified operations 50% 40% 30% 2020-2021 $ (1,329,086) $ (697,225) $ (392,189) 30 Average Tax Break $ 507 $ 507 $ 507 Non-School 31 Fiscal Impact $ 1,638,992 $ 859,799 $ 483,637 High Middle Low 32 % involved w operations 50% 40% 30% 33 % that own home 61% 40% 30%

34 2015-2016 $ (1,638,992) $ (859,799) $ (483,637) 35 2016-2017 $ (1,735,037) $ (910,183) $ (511,978) 36 2017-2018 $ (1,809,990) $ (949,503) $ (534,095) 37 2018-2019 $ (1,867,005) $ (979,412) $ (550,919) 38 2019-2020 $ (1,923,762) $ (1,009,187) $ (567,667)

39 2020-2021 $ (1,982,244) $ (1,039,866) $ (584,925)

41 52 Impact Conference October 2, 2015