| 1 | The Local Government Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | House Joint Resolution |
| 6 | A joint resolution proposing an amendment to Section 4 of |
| 7 | Article VII of the State Constitution to provide an |
| 8 | additional circumstance for assessing homestead property |
| 9 | at less than just value and authorize an exemption from |
| 10 | such circumstance for homestead property in fiscally |
| 11 | constrained counties subject to voter approval. |
| 12 |
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| 13 | Be It Resolved by the Legislature of the State of Florida: |
| 14 |
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| 15 | That the following amendment to Section 4 of Article VII of |
| 16 | the State Constitution is agreed to and shall be submitted to |
| 17 | the electors of this state for approval or rejection at the next |
| 18 | general election or at an earlier special election specifically |
| 19 | authorized by law for that purpose: |
| 20 | ARTICLE VII |
| 21 | FINANCE AND TAXATION |
| 22 | SECTION 4. Taxation; assessments.--By general law |
| 23 | regulations shall be prescribed which shall secure a just |
| 24 | valuation of all property for ad valorem taxation, provided: |
| 25 | (a) Agricultural land, land producing high water recharge |
| 26 | to Florida's aquifers, or land used exclusively for |
| 27 | noncommercial recreational purposes may be classified by general |
| 28 | law and assessed solely on the basis of character or use. |
| 29 | (b) Pursuant to general law tangible personal property |
| 30 | held for sale as stock in trade and livestock may be valued for |
| 31 | taxation at a specified percentage of its value, may be |
| 32 | classified for tax purposes, or may be exempted from taxation. |
| 33 | (c) All persons entitled to a homestead exemption under |
| 34 | Section 6 of this Article shall have their homestead assessed at |
| 35 | just value as of January 1 of the year following the effective |
| 36 | date of this amendment. This assessment shall change only as |
| 37 | provided herein. |
| 38 | (1) Assessments subject to this provision shall be changed |
| 39 | annually on January 1st of each year; but those changes in |
| 40 | assessments shall not exceed the lower of the following: |
| 41 | a. Three percent (3%) of the assessment for the prior |
| 42 | year. |
| 43 | b. The percent change in the Consumer Price Index for all |
| 44 | urban consumers, U.S. City Average, all items 1967=100, or |
| 45 | successor reports for the preceding calendar year as initially |
| 46 | reported by the United States Department of Labor, Bureau of |
| 47 | Labor Statistics. |
| 48 | (2) No assessment shall exceed just value. |
| 49 | (3) After any change of ownership, as provided by general |
| 50 | law, homestead property shall be assessed at just value as of |
| 51 | January 1 of the following year, unless the provisions of |
| 52 | paragraph (8) apply. Thereafter, the homestead shall be assessed |
| 53 | as provided herein. |
| 54 | (4) New homestead property shall be assessed at just value |
| 55 | as of January 1st of the year following the establishment of the |
| 56 | homestead, unless the provisions of paragraph (8) apply. That |
| 57 | assessment shall only change as provided herein. |
| 58 | (5) Changes, additions, reductions, or improvements to |
| 59 | homestead property shall be assessed as provided for by general |
| 60 | law; provided, however, after the adjustment for any change, |
| 61 | addition, reduction, or improvement, the property shall be |
| 62 | assessed as provided herein. |
| 63 | (6) In the event of a termination of homestead status, the |
| 64 | property shall be assessed as provided by general law. |
| 65 | (7) The provisions of this amendment are severable. If any |
| 66 | of the provisions of this amendment shall be held |
| 67 | unconstitutional by any court of competent jurisdiction, the |
| 68 | decision of such court shall not affect or impair any remaining |
| 69 | provisions of this amendment. |
| 70 | (8) When a person sells his or her homestead property |
| 71 | within this state and within one year purchases another property |
| 72 | and establishes such property as homestead property, the newly |
| 73 | established homestead property shall be initially assessed at |
| 74 | less than just value, as provided by general law. The difference |
| 75 | between the new homestead property's just value and its assessed |
| 76 | value in the first year the homestead is established may not |
| 77 | exceed the difference between the previous homestead property's |
| 78 | just value and its assessed value in the year of sale. In |
| 79 | addition, to be assessed as provided in this paragraph, the |
| 80 | assessed value of the new homestead property must equal or |
| 81 | exceed the assessed value of the previous homestead property. |
| 82 | Thereafter, the homestead property shall be assessed as provided |
| 83 | herein. Homestead property located within a fiscally constrained |
| 84 | county may be exempt from this paragraph as provided by general |
| 85 | law and subject to approval of the electors of the county voting |
| 86 | in a referendum to be held no earlier than November 1, 2009. |
| 87 | (d) The legislature may, by general law, for assessment |
| 88 | purposes and subject to the provisions of this subsection, allow |
| 89 | counties and municipalities to authorize by ordinance that |
| 90 | historic property may be assessed solely on the basis of |
| 91 | character or use. Such character or use assessment shall apply |
| 92 | only to the jurisdiction adopting the ordinance. The |
| 93 | requirements for eligible properties must be specified by |
| 94 | general law. |
| 95 | (e) A county may, in the manner prescribed by general law, |
| 96 | provide for a reduction in the assessed value of homestead |
| 97 | property to the extent of any increase in the assessed value of |
| 98 | that property which results from the construction or |
| 99 | reconstruction of the property for the purpose of providing |
| 100 | living quarters for one or more natural or adoptive grandparents |
| 101 | or parents of the owner of the property or of the owner's spouse |
| 102 | if at least one of the grandparents or parents for whom the |
| 103 | living quarters are provided is 62 years of age or older. Such a |
| 104 | reduction may not exceed the lesser of the following: |
| 105 | (1) The increase in assessed value resulting from |
| 106 | construction or reconstruction of the property. |
| 107 | (2) Twenty percent of the total assessed value of the |
| 108 | property as improved. |
| 109 | BE IT FURTHER RESOLVED that the following statement be |
| 110 | placed on the ballot: |
| 111 | CONSTITUTIONAL AMENDMENT |
| 112 | ARTICLE VII, SECTION 4 |
| 113 | HOMESTEAD PROPERTY ASSESSMENTS.--Proposing an amendment to |
| 114 | the State Constitution to provide for assessing at less than |
| 115 | just value property purchased within one year after a sale of |
| 116 | homestead property and established as new homestead property, |
| 117 | prohibiting the difference between the new homestead property's |
| 118 | just value and its assessed value in the first year the |
| 119 | homestead is established from exceeding the difference between |
| 120 | the previous homestead property's just value and its assessed |
| 121 | value in the year of sale, requiring the new homestead |
| 122 | property's assessed value to equal or exceed the previous |
| 123 | homestead property's assessed value, and authorizing an |
| 124 | exemption from such less-than-just-value assessments for |
| 125 | homestead property in a fiscally constrained county subject to |
| 126 | voter referendum approval no earlier than November 1, 2009. |