| 1 | Representative(s) Brummer offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove lines 103-105 and insert: |
| 5 | Section 3. (1) The Department of Revenue shall conduct a |
| 6 | study of the state's property tax structure to analyze the |
| 7 | impact of the current homestead exemptions and homestead |
| 8 | assessment limitations on different types of property. |
| 9 | (a) The study shall include: |
| 10 | 1. An analysis of the effects of Save Our Homes provisions |
| 11 | of s. 4(c), Art. VII of the State Constitution on the |
| 12 | distribution of property taxes among and between homestead |
| 13 | properties as well as between homesteads and other types of |
| 14 | property; |
| 15 | 2. An analysis of the effect of the Save Our Homes |
| 16 | provisions of s. 4(c), Art. VII of the State Constitution on |
| 17 | affordable housing, as evidenced by the differential tax burden |
| 18 | on first-time homestead property owners and long-term homestead |
| 19 | property owners and the amendment's effect on property taxes |
| 20 | paid by nonhomestead residential property owners. |
| 21 | 3. The identification and analysis of the impact of the |
| 22 | differential under the Save Our Homes provisions of s. 4(c), |
| 23 | Art. VII of the State Constitution on each county; |
| 24 | 4. An analysis of the effects of the Save Our Homes |
| 25 | provisions of s. 4(c), Art. VII of the State Constitution on the |
| 26 | distribution of the school property taxes, including the |
| 27 | required local effort levy for the Florida Education Finance |
| 28 | Program, and other school levies; |
| 29 | 5. An analysis of the fiscal impacts of allowing the |
| 30 | assessments under the Save Our Homes provisions of s. 4(c), Art. |
| 31 | VII of the State Constitution to be transferred to newly |
| 32 | acquired homes, the resulting changes in the relative taxes |
| 33 | levied on all other classes of property, including other |
| 34 | homestead properties, nonhomestead properties and properties |
| 35 | purchased by first-time homestead owners, and in the |
| 36 | distribution of the required local effort for school funding; |
| 37 | and |
| 38 | 6. An analysis of the millage rates adopted by local |
| 39 | governments compared to the rolled back rate as advertised in |
| 40 | the Truth In Millage (TRIM) Notices required under s. 200.069, |
| 41 | Florida Statutes. |
| 42 | (b) The Department of Revenue shall prepare a draft of the |
| 43 | study by November 15, 2006, and conclude the study by January 2, |
| 44 | 2007. |
| 45 | (2) The Office of Economic and Demographic Research shall |
| 46 | prepare a report summarizing the study conducted by the |
| 47 | Department of Revenue. The report must also contain findings and |
| 48 | policy options that may be available to the state. In preparing |
| 49 | the report, the Office of Economic and Demographic Research may |
| 50 | consider other available information. |
| 51 | (a) In addition to findings and policy options, the report |
| 52 | must include: |
| 53 | 1. An evaluation of the assessment differentials under the |
| 54 | Save Our Homes provisions of s. 4(c), Art. VII of the State |
| 55 | Constitution on homeowners' willingness to purchase a new |
| 56 | homestead. |
| 57 | 2. An evaluation of the effects of the Save Our Homes |
| 58 | provisions of s. 4(c), Art. VII of the State Constitution on |
| 59 | local government budget decisions, including whether the Truth |
| 60 | In Millage (TRIM) notification process under s. 200.069, Florida |
| 61 | Statutes, adequately informs taxpayers of local governments' tax |
| 62 | and budget decisions. |
| 63 | 3. An evaluation of the effectiveness of the notice of |
| 64 | proposed property taxes and non-ad valorem assessments created |
| 65 | under s. 200.069, Florida Statutes. If the current notice is |
| 66 | deemed ineffective, the evaluation should propose alternative |
| 67 | methods of conveying the information contained in the notice. |
| 68 | (b) The findings and policy options must apply and |
| 69 | consider the following principles of taxation described in the |
| 70 | 2002 Florida State Tax Reform Task Force Final Report: |
| 71 | 1. Equity.--The Florida tax system should treat |
| 72 | individuals equitably. It should impose similar tax burdens on |
| 73 | people in similar circumstances and should minimize |
| 74 | regressivity. |
| 75 | 2. Compliance.--The Florida tax system should facilitate |
| 76 | taxpayer compliance. The system should be simple and easy to |
| 77 | understand so as to minimize compliance costs and increase the |
| 78 | visibility and awareness of the taxes being paid. Enforcement |
| 79 | and collection of tax revenues should be accomplished in a fair, |
| 80 | consistent, professional, predictable, and cost-effective |
| 81 | manner. |
| 82 | 3. Pro-competitiveness.--The Florida tax system should be |
| 83 | responsive to interstate and international competition in order |
| 84 | to encourage savings and investment in physical plants, |
| 85 | equipment, people, and technology in this state. |
| 86 | 4. Neutrality.--The Florida tax system should affect |
| 87 | competitors uniformly and not become a tool for social |
| 88 | engineering. The system should minimize government involvement |
| 89 | in investment decisions, making any such involvement explicit, |
| 90 | and should minimize pyramiding. |
| 91 | 5. Stability.--The Florida tax system should produce, in a |
| 92 | stable and reliable manner, revenues that are sufficient to fund |
| 93 | appropriate governmental functions and expenditures. |
| 94 | 6. Integration.--The Florida tax system should balance the |
| 95 | need for integration of federal, state, and local taxation. |
| 96 | (c) The Office of Economic and Demographic Research shall |
| 97 | submit a progress report to the President of the Senate and the |
| 98 | Speaker of the House of Representatives by February 15, 2007. |
| 99 | The progress report may include preliminary findings and any |
| 100 | policy options that may be considered during the 2007 regular |
| 101 | legislative session. |
| 102 | (d) The final report must be submitted to the Governor, |
| 103 | the President of the Senate, the Speaker of the House of |
| 104 | Representatives, and the chair of the Taxation and Budget Reform |
| 105 | Commission no later than September 1, 2007. |
| 106 | (e) The Office of Economic and Demographic Research may |
| 107 | contract with state universities or a nationally recognized |
| 108 | property appraisal education and certification organization for |
| 109 | the purpose of developing findings and policy options to be |
| 110 | included in the report. |
| 111 | Section 5. Section 12 of chapter 2005-187, Laws of |
| 112 | Florida, is repealed. |
| 113 | Section 6. The sum of $300,000 in nonrecurring general |
| 114 | revenue is hereby appropriated to the Department of Revenue for |
| 115 | the purpose of conducting the study required by this act. |
| 116 | Section 7. The sum of $500,000 in nonrecurring general |
| 117 | revenue is hereby appropriated to the Office of Economic and |
| 118 | Demographic Research for the purpose of preparing the report |
| 119 | required by this act. |
| 120 | Section 8. The unexpended balance of funds appropriated in |
| 121 | section 13 of chapter 2005-187, Laws of Florida, shall revert |
| 122 | immediately to the General Revenue Fund. |
| 123 | Section 9. Sections 1 and 2 of this act shall apply |
| 124 | retroactively to homestead property replaced on or after January |
| 125 | 1, 2006. |
| 126 | Section 10. Except as otherwise expressly provided in this |
| 127 | act, this act shall take effect upon becoming a law. |
| 128 |
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| 129 |
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| 130 | ======= T I T L E A M E N D M E N T ======= |
| 131 | Remove line(s) 6-21 and insert: |
| 132 | An act relating to taxation; amending s. 193.155, F.S.; |
| 133 | revising exceptions applicable to damaged or destroyed |
| 134 | homestead property to a requirement that changes, |
| 135 | additions, or improvements to homestead property be |
| 136 | assessed at just value under certain circumstances; |
| 137 | providing for application to certain changes, additions, |
| 138 | and improvements; providing for assessment of homestead |
| 139 | property after substantial completion of changes, |
| 140 | additions, and improvements; providing criteria; amending |
| 141 | s. 196.031, F.S.; providing for the continued granting of |
| 142 | a homestead exemption for certain damaged or destroyed |
| 143 | homestead property under certain circumstances; specifying |
| 144 | circumstances for abandonment of property as homestead; |
| 145 | requiring the Department of Revenue to study the state's |
| 146 | property tax structure; providing the contents of the |
| 147 | study; requiring the Office of Economic and Demographic |
| 148 | Research to prepare a report; requiring that the report |
| 149 | recommend changes to achieve specified principles of |
| 150 | taxation; providing deadlines; requiring a report to the |
| 151 | Governor and the Legislature; repealing s. 12, ch. 2005- |
| 152 | 187, Laws of Florida, relating to dissolving the |
| 153 | Communications Services Tax Task Force; providing |
| 154 | appropriations; providing for reversion of unused funds to |
| 155 | the General Revenue Fund; providing for retroactive |
| 156 | application; providing effective dates. |