Florida Introduces Affordable Housing Exemption for State-Owned Land Projects: PTO 25-12

PTO Bulletin 25-12 outlines a new ad valorem tax exemption for affordable housing projects on state-owned land, effective beginning with the 2026 tax roll.

Introduction

On August 13, 2025, the Florida Department of Revenue’s Property Tax Oversight (PTO) program released Informational Bulletin 25-12, which explains a new ad valorem property tax exemption for affordable housing projects on state-owned land. The exemption is authorized by Chapter 2025-208 (HB 7031), will first apply to the 2026 tax roll, and takes effect on July 1, 2025.

Eligibility Requirements

• The land must be owned by the State of Florida.
• The property must have more than 70 residential units reserved for extremely-low-income to moderate-income households (per s. 420.0004, F.S.).
• There must be a lease or restrictive use agreement that ensures affordability for at least 60 years.
• The owner or operator must apply annually by March 1.

How the Exemption Applies

The exemption applies proportionally to common areas and the land attributable to the affordable housing units.

Compliance and Penalties

If the property fails to maintain at least 70 affordable units by January 1 of any year, it loses eligibility for that year. If an improper exemption was granted in the past 10 years, the appraiser issues a notice of intent to record a lien, and the operator owes the exempted taxes plus a 50% penalty per year and 15% annual interest, unless it was a clerical error.

Supporting Context

This exemption is part of a broader legislative push under HB 7031 to expand affordable housing tax relief in Florida.

Conclusion

PTO 25-12 establishes a new property tax exemption for affordable housing developments on state-owned lands starting with the 2026 tax roll—requiring careful compliance and annual application by stakeholders.