HJR 381

1	House Joint Resolution
2	A joint resolution proposing amendments to Sections 4 and
3	6 of Article VII and the creation of Sections 32 and 33 of
4	Article XII of the State Constitution to prohibit
5	increases in the assessed value of homestead property if
6	the fair market value of the property decreases, reduce
7	the limitation on annual assessment increases applicable
8	to nonhomestead real property, provide an additional
9	homestead exemption for owners of homestead property who
10	have not owned homestead property for a specified time
11	before purchase of the current homestead property, and
12	application and limitations with respect thereto, and
13	provide effective dates.
14
15	Be It Resolved by the Legislature of the State of Florida:
16
17	That the following amendments to Sections 4 and 6 of
18	Article VII and the creation of Sections 32 and 33 of Article
19	XII of the State Constitution are agreed to and shall be
20	submitted to the electors of this state for approval or
21	rejection at the next general election or at an earlier special
22	election specifically authorized by law for that purpose:
23	ARTICLE VII
24	FINANCE AND TAXATION
25	SECTION 4.  Taxation; assessments.-By general law
26	regulations shall be prescribed which shall secure a just
27	valuation of all property for ad valorem taxation, provided:
28	(a)  Agricultural land, land producing high water recharge
29	to Florida's aquifers, or land used exclusively for
30	noncommercial recreational purposes may be classified by general
31	law and assessed solely on the basis of character or use.
32	(b)  As provided by general law and subject to conditions,
33	limitations, and reasonable definitions specified therein, land
34	used for conservation purposes shall be classified by general
35	law and assessed solely on the basis of character or use.
36	(c)  Pursuant to general law tangible personal property
37	held for sale as stock in trade and livestock may be valued for
38	taxation at a specified percentage of its value, may be
39	classified for tax purposes, or may be exempted from taxation.
40	(d)  All persons entitled to a homestead exemption under
41	Section 6 of this Article shall have their homestead assessed at
42	just value as of January 1 of the year following the effective
43	date of this amendment. This assessment shall change only as
44	provided in this subsection.
45	(1)  Assessments subject to this subsection shall change be
46	changed annually on January 1 1st of each year.; but those
47	changes in assessments
48	a.  An increase in an assessment may shall not exceed the
49	lower of the following:
50	1.a.  Three percent (3%) of the assessment for the prior
51	year.
52	2.b.  The percent change in the Consumer Price Index for
53	all urban consumers, U.S. City Average, all items 1967=100, or a
54	successor index reports for the preceding calendar year as
55	initially reported by the United States
56	Bureau of Labor Statistics.
57	b.  An assessment may not increase if the just value of the
58	property is less than the just value of the property on the
59	preceding January 1.
60	(2)  An No assessment may not shall exceed just value.
61	(3)  After a any change of ownership, as provided by
62	general law, homestead property shall be assessed at just value
63	as of January 1 of the following year, unless the provisions of
64	paragraph (8) apply. Thereafter, the homestead shall be assessed
65	as provided in this subsection.
66	(4)  New homestead property shall be assessed at just value
67	as of January 1 1st of the year following the establishment of
68	the homestead, unless the provisions of paragraph (8) apply.
69	That assessment shall only change only as provided in this
70	subsection.
71	(5)  Changes, additions, reductions, or improvements to
72	homestead property shall be assessed as provided for by general
73	law.; provided, However, after the adjustment for any change,
74	addition, reduction, or improvement, the property shall be
75	assessed as provided in this subsection.
76	(6)  In the event of a termination of homestead status, the
77	property shall be assessed as provided by general law.
78	(7)  The provisions of this subsection amendment are
79	severable. If a provision any of the provisions of this
80	subsection is amendment shall be held unconstitutional by a any
81	court of competent jurisdiction, the decision of the such court
82	does shall not affect or impair any remaining
83	subsection amendment.
84	(8)a.  A person who establishes a new homestead as of
85	January 1, 2009, or January 1 of any subsequent year and who has
86	received a homestead exemption pursuant to Section 6 of this
87	Article as of January 1 of either of the 2 two years immediately
88	preceding the establishment of a the new homestead is entitled
89	to have the new homestead assessed at less than just value. If
90	this revision is approved in January of 2008, a person who
91	establishes a new homestead as of January 1, 2008, is entitled
92	to have the new homestead assessed at less than just value only
93	if that person received a homestead exemption on January 1,
94	2007. The assessed value of the newly established homestead
95	shall be determined as follows:
96	1.  If the just value of the new homestead is greater than
97	or equal to the just value of the prior homestead as of January
98	1 of the year in which the prior homestead was abandoned, the
99	assessed value of the new homestead shall be the just value of
100	the new homestead minus an amount equal to the lesser of
101	$500,000 or the difference between the just value and the
102	assessed value of the prior homestead as of January 1 of the
103	year in which the prior homestead was abandoned. Thereafter, the
104	homestead shall be assessed as provided in this subsection.
105	2.  If the just value of the new homestead is less than the
106	just value of the prior homestead as of January 1 of the year in
107	which the prior homestead was abandoned, the assessed value of
108	the new homestead shall be equal to the just value of the new
109	homestead divided by the just value of the prior homestead and
110	multiplied by the assessed value of the prior homestead.
111	However, if the difference between the just value of the new
112	homestead and the assessed value of the new homestead calculated
113	pursuant to this sub-subparagraph is greater than $500,000, the
114	assessed value of the new homestead shall be increased so that
115	the difference between the just value and the assessed value
116	equals $500,000. Thereafter, the homestead shall be assessed as
117	provided in this subsection.
118	b.  By general law and subject to conditions specified
119	therein, the legislature shall provide for application of this
120	paragraph to property owned by more than one person.
121	(e)  The legislature may, by general law, for assessment
122	purposes and subject to the provisions of this subsection, allow
123	counties and municipalities to authorize by ordinance that
124	historic property may be assessed solely on the basis of
125	character or use. Such character or use assessment shall apply
126	only to the jurisdiction adopting the ordinance. The
127	requirements for eligible properties must be specified by
128	general law.
129	(f)  A county may, in the manner prescribed by general law,
130	provide for a reduction in the assessed value of homestead
131	property to the extent of any increase in the assessed value of
132	that property which results from the construction or
133	reconstruction of the property for the purpose of providing
134	living quarters for one or more natural or adoptive grandparents
135	or parents of the owner of the property or of the owner's spouse
136	if at least one of the grandparents or parents for whom the
137	living quarters are provided is 62 years of age or older. Such a
138	reduction may not exceed the lesser of the following:
139	(1)  The increase in assessed value resulting from
140	construction or reconstruction of the property.
141	(2)  Twenty percent of the total assessed value of the
142	property as improved.
143	(g)  For all levies other than school district levies,
144	assessments of residential real property, as defined by general
145	law, which contains nine units or fewer and which is not subject
146	to the assessment limitations set forth in subsections (a)
147	through (d) shall change only as provided in this subsection.
148	(1)  Assessments subject to this subsection shall be
149	changed annually on the date of assessment provided by law.
150	However,; but those changes in assessments may shall not exceed
151	3 ten percent (10%) of the assessment for the prior year.
152	(2)  An No assessment may not shall exceed just value.
153	(3)  After a change of ownership or control, as defined by
154	general law, including any change of ownership of a legal entity
155	that owns the property, such property shall be assessed at just
156	value as of the next assessment date. Thereafter, such property
157	shall be assessed as provided in this subsection.
158	(4)  Changes, additions, reductions, or improvements to
159	such property shall be assessed as provided for by general law.;
160	However, after the adjustment for any change, addition,
161	reduction, or improvement, the property shall be assessed as
162	provided in this subsection.
163	(h)  For all levies other than school district levies,
164	assessments of real property that is not subject to the
165	assessment limitations set forth in subsections (a) through (d)
166	and (g) shall change only as provided in this subsection.
167	(1)  Assessments subject to this subsection shall be
168	changed annually on the date of assessment provided by law.
169	However,; but those changes in assessments may shall not exceed
170	3 ten percent (10%) of the assessment for the prior year.
171	(2)  An No assessment may not shall exceed just value.
172	(3)  The legislature must provide that such property shall
173	be assessed at just value as of the next assessment date after a
174	qualifying improvement, as defined by general law, is made to
175	such property. Thereafter, such property shall be assessed as
176	provided in this subsection.
177	(4)  The legislature may provide that such property shall
178	be assessed at just value as of the next assessment date after a
179	change of ownership or control, as defined by general law,
180	including any change of ownership of the legal entity that owns
181	the property. Thereafter, such property shall be assessed as
182	provided in this subsection.
183	(5)  Changes, additions, reductions, or improvements to
184	such property shall be assessed as provided for by general law.;
185	However, after the adjustment for any change, addition,
186	reduction, or improvement, the property shall be assessed as
187	provided in this subsection.
188	(i)  The legislature, by general law and subject to
189	conditions specified therein, may prohibit the consideration of
190	the following in the determination of the assessed value of real
191	property used for residential purposes:
192	(1)  Any change or improvement made for the purpose of
193	improving the property's resistance to wind damage.
194	(2)  The installation of a renewable energy source device.
195	(j)(1)  The assessment of the following working waterfront
196	properties shall be based upon the current use of the property:
197	a.  Land used predominantly for commercial fishing
198	purposes.
199	b.  Land that is accessible to the public and used for
200	vessel launches into waters that are navigable.
201	c.  Marinas and drystacks that are open to the public.
202	d.  Water-dependent marine manufacturing facilities,
203	commercial fishing facilities, and marine vessel construction
204	and repair facilities and their support activities.
205	(2)  The assessment benefit provided by this subsection is
206	subject to conditions and limitations and reasonable definitions
207	as specified by the legislature by general law.
208	SECTION 6.  Homestead exemptions.-
209	(a)  Every person who has the legal or equitable title to
210	real estate and maintains thereon the permanent residence of the
211	owner, or another legally or naturally dependent upon the owner,
212	shall be exempt from taxation thereon, except assessments for
213	special benefits, up to the assessed valuation of $25,000
214	twenty-five thousand dollars and, for all levies other than
215	school district levies, on the assessed valuation greater than
216	$50,000 fifty thousand dollars and up to $75,000 seventy-five
217	thousand dollars, upon establishment of right thereto in the
218	manner prescribed by law. The real estate may be held by legal
219	or equitable title, by the entireties, jointly, in common, as a
220	condominium, or indirectly by stock ownership or membership
221	representing the owner's or member's proprietary interest in a
222	corporation owning a fee or a leasehold initially in excess of
223	98 ninety-eight years. The exemption shall not apply with
224	respect to any assessment roll until such roll is first
225	determined to be in compliance with the provisions of Section 4
226	by a state agency designated by general law. This exemption is
227	repealed on the effective date of any amendment to this Article
228	which provides for the assessment of homestead property at less
229	than just value.
230	(b)  Not more than one exemption shall be allowed any
231	individual or family unit or with respect to any residential
232	unit. No exemption shall exceed the value of the real estate
233	assessable to the owner or, in case of ownership through stock
234	or membership in a corporation, the value of the proportion
235	which the interest in the corporation bears to the assessed
236	value of the property.
237	(c)  By general law and subject to conditions specified
238	therein, the legislature may provide to renters, who are
239	permanent residents, ad valorem tax relief on all ad valorem tax
240	levies. Such ad valorem tax relief shall be in the form and
241	amount established by general law.
242	(d)  The legislature may, by general law, allow counties or
243	municipalities, for the purpose of their respective tax levies
244	and subject to the provisions of general law, to grant an
245	additional homestead tax exemption not exceeding $50,000 fifty
246	thousand dollars to any person who has the legal or equitable
247	title to real estate and maintains thereon the permanent
248	residence of the owner and who has attained age 65 sixty-five
249	and whose household income, as defined by general law, does not
250	exceed $20,000 twenty thousand dollars. The general law must
251	allow counties and municipalities to grant this additional
252	exemption, within the limits prescribed in this subsection, by
253	ordinance adopted in the manner prescribed by general law, and
254	must provide for the periodic adjustment of the income
255	limitation prescribed in this subsection for changes in the cost
256	of living.
257	(e)  Each veteran who is age 65 or older who is partially
258	or totally permanently disabled shall receive a discount from
259	the amount of the ad valorem tax otherwise owed on homestead
260	property the veteran owns and resides in if the disability was
261	combat related, the veteran was a resident of this state at the
262	time of entering the military service of the United States, and
263	the veteran was honorably discharged upon separation from
264	military service. The discount shall be in a percentage equal to
265	the percentage of the veteran's permanent, service-connected
266	disability as determined by the United States Department of
267	Veterans Affairs. To qualify for the discount granted by this
268	subsection, an applicant must submit to the county property
269	appraiser, by March 1, proof of residency at the time of
270	entering military service, an official letter from the United
271	States Department of Veterans Affairs stating the percentage of
272	the veteran's service-connected disability and such evidence
273	that reasonably identifies the disability as combat related, and
274	a copy of the veteran's honorable discharge. If the property
275	appraiser denies the request for a discount, the appraiser must
276	notify the applicant in writing of the reasons for the denial,
277	and the veteran may reapply. The legislature may, by general
278	law, waive the annual application requirement in subsequent
279	years. This subsection shall take effect December 7, 2006, is
280	self-executing, and does not require implementing legislation.
281	(f)  As provided by general law and subject to conditions
282	specified therein, every person who establishes the right to
283	receive the homestead exemption provided in subsection (a)
284	within 1 year after purchasing the homestead property and who
285	has not owned property in the previous 3 calendar years to which
286	the homestead exemption provided in subsection (a) applied is
287	entitled to an additional homestead exemption in an amount equal
288	to 50 percent of the homestead property's just value on January
289	1 of the year the homestead is established for all levies other
290	than school district levies. The additional exemption shall
291	apply for a period of 5 years or until the year the property is
292	sold, whichever occurs first. The amount of the additional
293	exemption shall not exceed $200,000 and shall be reduced in each
294	subsequent year by an amount equal to 20 percent of the amount
295	of the additional exemption received in the year the homestead
296	was established or by an amount equal to the difference between
297	the just value of the property and the assessed value of the
298	property determined under Section 4(d), whichever is greater.
299	Not more than one exemption provided under this subsection shall
300	be allowed per homestead property. The additional exemption
301	shall apply to property purchased on or after January 1, 2012,
302	but shall not be available in the sixth and subsequent years
303	after the additional exemption is first received.
304	ARTICLE XII
305	SCHEDULE
306	SECTION 32.  Property assessments.-This section and the
307	amendment of Section 4 of Article VII protecting homestead
308	property having a declining market value and reducing the limit
309	on the maximum annual increase in the assessed value of
310	nonhomestead property from 10 percent to 3 percent shall take
311	effect January 1, 2013.
312	SECTION 33.  Additional homestead exemption for owners of
313	homestead property who recently have not owned homestead
314	property.-This section and the amendment to Section 6 of Article
315	VII providing for an additional homestead exemption for owners
316	of homestead property who have not owned homestead property
317	during the 3 calendar years immediately preceding purchase of
318	the current homestead property shall take effect January 1,
319	2013, and the additional homestead exemption shall be available
320	for properties purchased on or after January 1, 2012.
321	BE IT FURTHER RESOLVED that the following statement be
322	placed on the ballot:
323	CONSTITUTIONAL AMENDMENT
324	ARTICLE VII, SECTIONS 4, 6
325	ARTICLE XII, SECTIONS 32, 33
326	PROPERTY ASSESSMENT; HOMESTEAD VALUE DECLINE; NONHOMESTEAD
327	INCREASE LIMITATION REDUCTION; ADDITIONAL HOMESTEAD EXEMPTION.-
328	(1)  In certain circumstances, the law requires the
329	assessed value of homestead property to increase when the fair
330	market value of the property decreases. Therefore, this
331	amendment provides that the assessed value of homestead property
332	will not increase if the fair market value of that property
333	decreases and provides an effective date of January 1, 2013.
334	(2)  This amendment reduces from 10 percent to 3 percent
335	the limitation on annual increases in assessments of
336	nonhomestead real property and provides an effective date of
337	January 1, 2013.
338	(3)  This amendment also provides owners of homestead
339	property who have not owned homestead property during the 3
340	calendar years immediately preceding purchase of the current
341	homestead property with an additional homestead exemption equal
342	to 50 percent of the property's just value in the first year for
343	all levies other than school district levies, limited to
344	$200,000; applies the additional exemption for the shorter of 5
345	years or the year of sale of the property; reduces the amount of
346	the additional exemption in each succeeding year for 5 years by
347	the greater of 20 percent of the amount of the initial
348	additional exemption or the difference between the just value
349	and the assessed value of the property; limits the additional
350	exemption to one per homestead property; limits the additional
351	exemption to properties purchased on or after January 1, 2012;
352	prohibits availability of the additional exemption in the sixth
353	and subsequent years after the additional exemption is granted;
354	and provides for the amendment to take effect January 1, 2013,
355	and apply to properties purchased on or after January 1, 2012.

CODING: Words stricken are deletions; words underlined are additions.