| 1 | House Joint Resolution |
| 2 | A joint resolution proposing amendments to Sections 4 and |
| 3 | 6 of Article VII of the State Constitution to limit the |
| 4 | assessment of property purchased and used as homestead |
| 5 | property after the sale of homestead property and increase |
| 6 | the exemption for homestead property. |
| 7 |
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| 8 | Be It Resolved by the Legislature of the State of Florida: |
| 9 |
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| 10 | That the amendments to Sections 4 and 6 of Article VII of |
| 11 | the State Constitution set forth below are agreed to and shall |
| 12 | be submitted to the electors of Florida for approval or |
| 13 | rejection at the general election to be held in November 2004: |
| 14 | ARTICLE VII |
| 15 | FINANCE AND TAXATION |
| 16 | SECTION 4. Taxation; assessments.--By general law |
| 17 | regulations shall be prescribed which shall secure a just |
| 18 | valuation of all property for ad valorem taxation, provided: |
| 19 | (a) Agricultural land, land producing high water recharge |
| 20 | to Florida's aquifers, or land used exclusively for |
| 21 | noncommercial recreational purposes may be classified by general |
| 22 | law and assessed solely on the basis of character or use. |
| 23 | (b) Pursuant to general law tangible personal property |
| 24 | held for sale as stock in trade and livestock may be valued for |
| 25 | taxation at a specified percentage of its value, may be |
| 26 | classified for tax purposes, or may be exempted from taxation. |
| 27 | (c) All persons entitled to a homestead exemption under |
| 28 | Section 6 of this Article shall have their homestead assessed at |
| 29 | just value as of January 1 of the year following the effective |
| 30 | date of this amendment. This assessment shall change only as |
| 31 | provided herein. |
| 32 | (1) Assessments subject to this provision shall be changed |
| 33 | annually on January 1st of each year; but those changes in |
| 34 | assessments shall not exceed the lower of the following: |
| 35 | a. Three percent (3%) of the assessment for the prior |
| 36 | year. |
| 37 | b. The percent change in the Consumer Price Index for all |
| 38 | urban consumers, U.S. City Average, all items 1967=100, or |
| 39 | successor reports for the preceding calendar year as initially |
| 40 | reported by the United States Department of Labor, Bureau of |
| 41 | Labor Statistics. |
| 42 | (2) No assessment shall exceed just value. |
| 43 | (3) After any change of ownership, as provided by general |
| 44 | law, homestead property shall be assessed at just value as of |
| 45 | January 1 of the following year unless the provisions of |
| 46 | paragraph (8) apply. Thereafter, the homestead shall be assessed |
| 47 | as provided herein. |
| 48 | (4) New homestead property shall be assessed at just value |
| 49 | as of January 1st of the year following the establishment of the |
| 50 | homestead unless the provisions of paragraph (8) apply. That |
| 51 | assessment shall only change as provided herein. |
| 52 | (5) Changes, additions, reductions, or improvements to |
| 53 | homestead property shall be assessed as provided for by general |
| 54 | law; provided, however, after the adjustment for any change, |
| 55 | addition, reduction, or improvement, the property shall be |
| 56 | assessed as provided herein. |
| 57 | (6) In the event of a termination of homestead status, the |
| 58 | property shall be assessed as provided by general law. |
| 59 | (7) The provisions of this amendment are severable. If any |
| 60 | of the provisions of this amendment shall be held |
| 61 | unconstitutional by any court of competent jurisdiction, the |
| 62 | decision of such court shall not affect or impair any remaining |
| 63 | provisions of this amendment. |
| 64 | (8) When a person sells his or her homestead property |
| 65 | within this state and within one year purchases another property |
| 66 | in the same county and establishes such property as homestead |
| 67 | property, the assessed value of the newly established homestead |
| 68 | property shall not exceed the just value of the former homestead |
| 69 | property as of the date said property was sold. To be assessed |
| 70 | as provided in this paragraph, the former homestead property |
| 71 | must be owned for a minimum of three years and the just value of |
| 72 | the newly established homestead property may not exceed $1 |
| 73 | million. Thereafter, the homestead shall be assessed as provided |
| 74 | herein. |
| 75 | (d) The legislature may, by general law, for assessment |
| 76 | purposes and subject to the provisions of this subsection, allow |
| 77 | counties and municipalities to authorize by ordinance that |
| 78 | historic property may be assessed solely on the basis of |
| 79 | character or use. Such character or use assessment shall apply |
| 80 | only to the jurisdiction adopting the ordinance. The |
| 81 | requirements for eligible properties must be specified by |
| 82 | general law. |
| 83 | (e) A county may, in the manner prescribed by general law, |
| 84 | provide for a reduction in the assessed value of homestead |
| 85 | property to the extent of any increase in the assessed value of |
| 86 | that property which results from the construction or |
| 87 | reconstruction of the property for the purpose of providing |
| 88 | living quarters for one or more natural or adoptive grandparents |
| 89 | or parents of the owner of the property or of the owner's spouse |
| 90 | if at least one of the grandparents or parents for whom the |
| 91 | living quarters are provided is 62 years of age or older. Such a |
| 92 | reduction may not exceed the lesser of the following: |
| 93 | (1) The increase in assessed value resulting from |
| 94 | construction or reconstruction of the property. |
| 95 | (2) Twenty percent of the total assessed value of the |
| 96 | property as improved. |
| 97 | SECTION 6. Homestead exemptions.-- |
| 98 | (a) Every person who has the legal or equitable title to |
| 99 | real estate and maintains thereon the permanent residence of the |
| 100 | owner, or another legally or naturally dependent upon the owner, |
| 101 | shall be exempt from taxation thereon, except assessments for |
| 102 | special benefits, up to the assessed valuation of five thousand |
| 103 | dollars, upon establishment of right thereto in the manner |
| 104 | prescribed by law. The real estate may be held by legal or |
| 105 | equitable title, by the entireties, jointly, in common, as a |
| 106 | condominium, or indirectly by stock ownership or membership |
| 107 | representing the owner's or member's proprietary interest in a |
| 108 | corporation owning a fee or a leasehold initially in excess of |
| 109 | ninety-eight years. |
| 110 | (b) Not more than one exemption shall be allowed any |
| 111 | individual or family unit or with respect to any residential |
| 112 | unit. No exemption shall exceed the value of the real estate |
| 113 | assessable to the owner or, in case of ownership through stock |
| 114 | or membership in a corporation, the value of the proportion |
| 115 | which the interest in the corporation bears to the assessed |
| 116 | value of the property. |
| 117 | (c) By general law and subject to conditions specified |
| 118 | therein, the exemption shall be increased to a total of fifty |
| 119 | twenty-five thousand dollars of the assessed value of the real |
| 120 | estate for each school district levy. By general law and subject |
| 121 | to conditions specified therein, the exemption for all other |
| 122 | levies may be increased up to an amount not exceeding ten |
| 123 | thousand dollars of the assessed value of the real estate if the |
| 124 | owner has attained age sixty-five or is totally and permanently |
| 125 | disabled and if the owner is not entitled to the exemption |
| 126 | provided in subsection (d). |
| 127 | (d) By general law and subject to conditions specified |
| 128 | therein, the exemption shall be increased to a total of the |
| 129 | following amounts of assessed value of real estate for each levy |
| 130 | other than those of school districts: fifteen thousand dollars |
| 131 | with respect to 1980 assessments; twenty thousand dollars with |
| 132 | respect to 1981 assessments; fifty twenty-five thousand dollars |
| 133 | with respect to assessments for 1982 and each year thereafter. |
| 134 | However, such increase shall not apply with respect to any |
| 135 | assessment roll until such roll is first determined to be in |
| 136 | compliance with the provisions of section 4 by a state agency |
| 137 | designated by general law. This subsection shall stand repealed |
| 138 | on the effective date of any amendment to section 4 which |
| 139 | provides for the assessment of homestead property at a specified |
| 140 | percentage of its just value. |
| 141 | (e) By general law and subject to conditions specified |
| 142 | therein, the Legislature may provide to renters, who are |
| 143 | permanent residents, ad valorem tax relief on all ad valorem tax |
| 144 | levies. Such ad valorem tax relief shall be in the form and |
| 145 | amount established by general law. |
| 146 | (f) The legislature may, by general law, allow counties or |
| 147 | municipalities, for the purpose of their respective tax levies |
| 148 | and subject to the provisions of general law, to grant an |
| 149 | additional homestead tax exemption not exceeding twenty-five |
| 150 | thousand dollars to any person who has the legal or equitable |
| 151 | title to real estate and maintains thereon the permanent |
| 152 | residence of the owner and who has attained age sixty-five and |
| 153 | whose household income, as defined by general law, does not |
| 154 | exceed twenty thousand dollars. The general law must allow |
| 155 | counties and municipalities to grant this additional exemption, |
| 156 | within the limits prescribed in this subsection, by ordinance |
| 157 | adopted in the manner prescribed by general law, and must |
| 158 | provide for the periodic adjustment of the income limitation |
| 159 | prescribed in this subsection for changes in the cost of living. |
| 160 | BE IT FURTHER RESOLVED that the title and substance of the |
| 161 | amendment proposed herein shall appear on the ballot as follows: |
| 162 | HOMESTEAD PROPERTY ASSESSMENTS AND EXEMPTIONS |
| 163 | Proposes amendments to Sections 4 and 6 of Article VII of |
| 164 | the State Constitution to limit the assessed value of property |
| 165 | purchased and used as homestead property after a sale of |
| 166 | homestead property to the just value of the homestead property |
| 167 | sold, subject to specific requirements, and to increase the |
| 168 | homestead exemption from $25,000 to $50,000. |