HJR 551

1	House Joint Resolution
2	A joint resolution proposing an amendment to Section 4 of
3	Article VII of the State Constitution to prescribe the
4	method for valuing certain properties for ad valorem tax
5	purposes.
6
7	Be It Resolved by the Legislature of the State of Florida:
8
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
46	shall 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
58	any 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)  If a person whose homestead property is taken
85	through the exercise of eminent domain designates replacement
86	property on which he or she is entitled to a homestead exemption
87	as homestead property and the value of the replacement property
88	is greater than that exempted by subsection (c) of this section,
89	the replacement homestead property shall be initially assessed
90	at less than just value, as provided by general law. The
91	difference between the replacement homestead property's just
92	value and its assessed value in the first year the homestead is
93	established may not exceed the difference between the previous
94	homestead's just value and its assessed value in the year of
95	sale. In addition, to be assessed as provided in this paragraph,
96	the assessed value of the replacement homestead must equal or
97	exceed the assessed value of the previous homestead. Thereafter,
98	the homestead shall be assessed as provided herein.
99	(2)  The following conditions apply when calculating the
100	assessed value of a replacement homestead property under this
101	subsection:
102	a.  This subsection applies only to the first replacement
103	property on which a homestead exemption is claimed after the
104	taking.
105	b.  The claim of homestead exemption on replacement
106	property must be made no later than the second January 1,
107	following the taking.
108	c.  This subsection applies regardless of whether the
109	replacement property is in the same county as the taken property
110	or in a different county.
111	d.  This subsection applies regardless of whether the
112	replacement property was acquired after, or was owned by the
113	taxpayer at the time of, the taking.
114	(3)  This subsection applies retroactively to replacement
115	homestead property that is designated as described in paragraph
116	(1) after December 31, 2004.
117	BE IT FURTHER RESOLVED that the following statement be
118	placed on the ballot:
119	CONSTITUTIONAL AMENDMENT
120	ARTICLE VII, SECTION 4
121	VALUATION OF HOMESTEAD PROPERTY.--Proposing an amendment to
122	the State Constitution to provide for assessing at less than
123	just value the replacement homestead property of a person whose
124	previous homestead property was taken through eminent domain if
125	the claim of homestead exemption on the replacement property is
126	made within a specified time, if the assessed value of the new
127	homestead equals or exceeds the assessed value of the previous
128	homestead, and if the difference between the new property's just
129	value and its assessed value in the first year that a homestead
130	exemption is claimed does not exceed the difference between the
131	previous homestead's just value and its assessed value in the
132	year of sale, and to provide for retroactive applicability of
133	such assessment procedures to property designated after December
134	31, 2004, as replacement homestead property.

CODING: Words stricken are deletions; words underlined are additions.