Senate Bill sb0228c1

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    Florida Senate - 2005                           CS for SJR 228

    By the Committee on Community Affairs; and Senators Geller and
    Campbell




    578-1734-05

  1                 Senate Joint Resolution No. ____

  2         A joint resolution proposing an amendment to

  3         Section 4 of Article VII of the State

  4         Constitution to prescribe the method for

  5         valuing certain properties for ad valorem tax

  6         purposes.

  7  

  8  Be It Resolved by the Legislature of the State of Florida:

  9  

10         That the following amendment to Section 4 of Article

11  VII of the State Constitution is agreed to and shall be

12  submitted to the electors of this state for approval or

13  rejection at the next general election or at an earlier

14  special election specifically authorized by law for that

15  purpose:

16                           ARTICLE VII

17                       FINANCE AND TAXATION

18         SECTION 4.  Taxation; assessments.--By general law

19  regulations shall be prescribed which shall secure a just

20  valuation of all property for ad valorem taxation, provided:

21         (a)  Agricultural land, land producing high water

22  recharge to Florida's aquifers, or land used exclusively for

23  noncommercial recreational purposes may be classified by

24  general law and assessed solely on the basis of character or

25  use.

26         (b)  Pursuant to general law tangible personal property

27  held for sale as stock in trade and livestock may be valued

28  for taxation at a specified percentage of its value, may be

29  classified for tax purposes, or may be exempted from taxation.

30         (c)  All persons entitled to a homestead exemption

31  under Section 6 of this Article shall have their homestead

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    Florida Senate - 2005                           CS for SJR 228
    578-1734-05




 1  assessed at just value as of January 1 of the year following

 2  the effective date of this amendment.  This assessment shall

 3  change only as provided herein.

 4         (1)  Assessments subject to this provision shall be

 5  changed annually on January 1st of each year; but those

 6  changes in assessments shall not exceed the lower of the

 7  following:

 8         a.  Three percent (3%) of the assessment for the prior

 9  year.

10         b.  The percent change in the Consumer Price Index for

11  all urban consumers, U.S. City Average, all items 1967=100, or

12  successor reports for the preceding calendar year as initially

13  reported by the United States Department of Labor, Bureau of

14  Labor Statistics.

15         (2)  No assessment shall exceed just value.

16         (3)  After any change of ownership, as provided by

17  general law, homestead property shall be assessed at just

18  value as of January 1 of the following year.  Thereafter, the

19  homestead shall be assessed as provided herein.

20         (4)  New homestead property shall be assessed at just

21  value as of January 1st of the year following the

22  establishment of the homestead. That assessment shall only

23  change as provided herein.

24         (5)  Changes, additions, reductions, or improvements to

25  homestead property shall be assessed as provided for by

26  general law; provided, however, after the adjustment for any

27  change, addition, reduction, or improvement, the property

28  shall be assessed as provided herein.

29         (6)  In the event of a termination of homestead status,

30  the property shall be assessed as provided by general law.

31  

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    Florida Senate - 2005                           CS for SJR 228
    578-1734-05




 1         (7)  The provisions of this amendment are severable.

 2  If any of the provisions of this amendment shall be held

 3  unconstitutional by any court of competent jurisdiction, the

 4  decision of such court shall not affect or impair any

 5  remaining provisions of this amendment.

 6         (d)  The legislature may, by general law, for

 7  assessment purposes and subject to the provisions of this

 8  subsection, allow counties and municipalities to authorize by

 9  ordinance that historic property may be assessed solely on the

10  basis of character or use.  Such character or use assessment

11  shall apply only to the jurisdiction adopting the ordinance.

12  The requirements for eligible properties must be specified by

13  general law.

14         (e)  A county may, in the manner prescribed by general

15  law, provide for a reduction in the assessed value of

16  homestead property to the extent of any increase in the

17  assessed value of that property which results from the

18  construction or reconstruction of the property for the purpose

19  of providing living quarters for one or more natural or

20  adoptive grandparents or parents of the owner of the property

21  or of the owner's spouse if at least one of the grandparents

22  or parents for whom the living quarters are provided is 62

23  years of age or older. Such a reduction may not exceed the

24  lesser of the following:

25         (1)  The increase in assessed value resulting from

26  construction or reconstruction of the property.

27         (2)  Twenty percent of the total assessed value of the

28  property as improved.

29         (f)(1)  If a person whose homestead property is taken

30  through the exercise of eminent domain designates replacement

31  property on which he or she is entitled to a homestead

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    Florida Senate - 2005                           CS for SJR 228
    578-1734-05




 1  exemption as homestead property and the value of the

 2  replacement property is greater than is exempted by subsection

 3  (c) of this section, the replacement homestead property shall

 4  be initially assessed at less than just value, as provided by

 5  general law. The difference between the replacement homestead

 6  property's just value and its assessed value in the first year

 7  the homestead is established may not exceed the difference

 8  between the previous homestead's just value and its assessed

 9  value in the year of sale. In addition, to be assessed as

10  provided in this paragraph, the assessed value of the

11  replacement homestead must equal or exceed the assessed value

12  of the previous homestead. Thereafter, the homestead shall be

13  assessed as provided herein.

14         (2)  The following conditions apply when calculating

15  the assessed value of a replacement homestead property under

16  this subsection:

17         a.  This subsection applies only to the first

18  replacement property on which a homestead exemption is claimed

19  after the taking.

20         b.  The claim of homestead exemption on replacement

21  property must be made no later than the second January 1

22  following the taking.

23         c.  This subsection applies whether the replacement

24  property is in the same county as the taken property or in a

25  different county.

26         d.  This subsection applies whether the replacement

27  property was acquired after, or was owned by the taxpayer at

28  the time of, the taking.

29         BE IT FURTHER RESOLVED that the following statement be

30  placed on the ballot:

31                     CONSTITUTIONAL AMENDMENT

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    Florida Senate - 2005                           CS for SJR 228
    578-1734-05




 1                      ARTICLE VII, SECTION 4

 2         VALUATION OF HOMESTEAD PROPERTY.--Proposing an

 3  amendment to the State Constitution to provide for assessing

 4  at less than just value the replacement homestead property of

 5  a person whose previous homestead property was taken through

 6  eminent domain if the claim of homestead exemption on the

 7  replacement property is made within a specified time limit, to

 8  provide that the difference between the new property's just

 9  value and its assessed value in the first year that a

10  homestead exemption is claimed may not exceed the difference

11  between the previous homestead's just value and its assessed

12  value in the year of sale, and to provide that the assessed

13  value of the new homestead must equal or exceed the assessed

14  value of the previous homestead.

15  

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                   Senate Joint Resolution 228

18                                 

19  The committee substitute changes the method by which the
    assessed value on a replacement property is calculated to
20  provide that the difference between the just value and
    assessed value on the replacement homestead property in the
21  first year that homestead is established is limited to the
    difference between the just value and assessed value on the
22  previous homestead in the year of sale.

23  It also provides that this calculation is only applicable if
    the assessed value of the replacement homestead property
24  equals or exceeds the assessed value of the previous homestead
    property.
25  
    Finally, it amends the ballot summary to conform to changes in
26  the method used to calculate the assessed value of the
    replacement homestead property as described above.
27  

28  

29  

30  

31  

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