| 1 | House Joint Resolution |
| 2 | A joint resolution proposing an amendment to Section 4 of |
| 3 | Article VII of the State Constitution to authorize |
| 4 | reductions in assessed value of homestead property |
| 5 | purchased by first-time homebuyers. |
| 6 |
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| 7 | Be It Resolved by the Legislature of the State of Florida: |
| 8 |
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| 9 | That the following amendment to Section 4 of Article VII of |
| 10 | the State Constitution is agreed to and shall be submitted to |
| 11 | the electors of this state for approval or rejection at the next |
| 12 | general election or at an earlier special election specifically |
| 13 | authorized by law for that purpose: |
| 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. Thereafter, the homestead shall |
| 46 | be assessed as provided herein. |
| 47 | (4) New homestead property shall be assessed at just value |
| 48 | as of January 1st of the year following the establishment of the |
| 49 | homestead. That assessment shall only change as provided herein. |
| 50 | (5) Changes, additions, reductions, or improvements to |
| 51 | homestead property shall be assessed as provided for by general |
| 52 | law; provided, however, after the adjustment for any change, |
| 53 | addition, reduction, or improvement, the property shall be |
| 54 | assessed as provided herein. |
| 55 | (6) In the event of a termination of homestead status, the |
| 56 | property shall be assessed as provided by general law. |
| 57 | (7) The provisions of this amendment are severable. If any |
| 58 | of the provisions of this amendment shall be held |
| 59 | unconstitutional by any court of competent jurisdiction, the |
| 60 | decision of such court shall not affect or impair any remaining |
| 61 | provisions of this amendment. |
| 62 | (d) The legislature may, by general law, for assessment |
| 63 | purposes and subject to the provisions of this subsection, allow |
| 64 | counties and municipalities to authorize by ordinance that |
| 65 | historic property may be assessed solely on the basis of |
| 66 | character or use. Such character or use assessment shall apply |
| 67 | only to the jurisdiction adopting the ordinance. The |
| 68 | requirements for eligible properties must be specified by |
| 69 | general law. |
| 70 | (e) A county may, in the manner prescribed by general law, |
| 71 | provide for a reduction in the assessed value of homestead |
| 72 | property to the extent of any increase in the assessed value of |
| 73 | that property which results from the construction or |
| 74 | reconstruction of the property for the purpose of providing |
| 75 | living quarters for one or more natural or adoptive grandparents |
| 76 | or parents of the owner of the property or of the owner's spouse |
| 77 | if at least one of the grandparents or parents for whom the |
| 78 | living quarters are provided is 62 years of age or older. Such a |
| 79 | reduction may not exceed the lesser of the following: |
| 80 | (1) The increase in assessed value resulting from |
| 81 | construction or reconstruction of the property. |
| 82 | (2) Twenty percent of the total assessed value of the |
| 83 | property as improved. |
| 84 | (f)(1) Notwithstanding subsection (c), a county or |
| 85 | municipality in the county may, for assessment purposes and |
| 86 | subject to the provisions of this subsection, by ordinance |
| 87 | approved by vote of the electors of the county or municipality, |
| 88 | provide for a reduction of up to $100,000 in the assessed value |
| 89 | of property purchased and used as homestead property by a first- |
| 90 | time homebuyer. |
| 91 | (2) Such reduction shall be provided over a period of five |
| 92 | years and shall be available only if the first-time homebuyer |
| 93 | remains in and maintains the property as homestead property for |
| 94 | the entire five-year period. |
| 95 | (3) If ownership of the property changes within the five- |
| 96 | year period, property taxes on the amount of the reduction and |
| 97 | interest on the amount of such taxes shall become due and |
| 98 | payable to the respective taxing authority. |
| 99 | (4) At the end of the five-year period, the assessment of |
| 100 | the property shall be calculated as provided in paragraph (c)(1) |
| 101 | on the reduced amount from the date of the initial purchase of |
| 102 | the property. |
| 103 | (5) For purposes of this section, the term "first-time |
| 104 | homebuyer" means a person who purchases a home in the county for |
| 105 | use as a permanent primary residence, who has never owned a home |
| 106 | in this state prior to such purchase, and who earns no more than |
| 107 | 120 percent of the median income of residents of the county. |
| 108 | BE IT FURTHER RESOLVED that the following statement be |
| 109 | placed on the ballot: |
| 110 | CONSTITUTIONAL AMENDMENT |
| 111 | ARTICLE VII, SECTION 4 |
| 112 | HOMESTEAD ASSESSED VALUE REDUCTION.--Proposing an amendment |
| 113 | to the State Constitution to authorize any county or |
| 114 | municipality in the county to provide by ordinance, subject to |
| 115 | elector approval, for a reduction over a 5-year period of up to |
| 116 | $100,000 in the assessed value of property purchased, used, and |
| 117 | maintained by a first-time homebuyer as homestead property for 5 |
| 118 | years; provide for recapture of taxes on the reduced amount and |
| 119 | interest on such taxes if ownership of the property changes |
| 120 | within the 5-year period; provide for calculation of the |
| 121 | assessed value of the property after the 5-year period at the |
| 122 | Save Our Homes rate calculated on the reduced amount from the |
| 123 | date of the original purchase of the property; and define a |
| 124 | first-time homebuyer as a person who purchases a home in the |
| 125 | county for use as a primary permanent residence, who has never |
| 126 | owned a home in Florida prior to such purchase, and who earns no |
| 127 | more than 120 percent of the median income of residents of the |
| 128 | county. |