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Florida Property Tax Updates

UPDATED march 2024

Live Local: Property Tax Exemption for the “Missing Middle”

A new property tax exemption signed into law in March 2023 has garnered significant attention from multifamily developers. The property tax exemption is referred to colloquially as the “Missing Middle” property tax exemption because its aim is to encourage development of workforce housing to serve people with incomes above those served by traditional affordable housing, but still priced out of the very high rental market.

The exemption has two levels. There is a 100% exemption for units rented to tenants whose income is at or below 80% of the area median income, commonly known as AMI, and a 75% exemption for units rented to tenants whose income is between 80% and 120% AMI. To qualify for the exemption, multifamily projects must have at least 71 units meeting the restrictions and must have been built within the past five years. Rents must be the lesser of 90% of market rent for the area in question or the rental limits prescribed by HUD annually. Counties administer the exemption on a unit-by-unit basis, but the proportionate value of the land and common elements are also exempt.

The law passed in 2023 and first applies to the 2024 tax year.  With such a quick roll-out, many details remain to be worked out and changes were already made in the 2024 legislative session.  For example, a  new bill passed in March 2024 allowing  counties to opt out of the 75% exemption if the number of available units catering to tenants at or below 120% AMI exceeds the number of households in the county at or below 120% AMI.   Changes and clarification will certainly continue to be made as this exemption is first applied this year.


Julie Schwartz and Daniel Wolfe
Rennert Vogel Mander & Rodriguez, P.A.
American Property Tax Counsel (APTC)

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