| 1 | Representative(s) Saunders offered the following: |
| 2 |
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| 3 | Amendment (with ballot statement and title amendments) |
| 4 | Remove lines 22-383 and insert: |
| 5 | That the following amendments to Sections 3, 6, and 9 of |
| 6 | Article VII and the creation of Section 27 of Article XII of the |
| 7 | State Constitution are agreed to and shall be submitted to the |
| 8 | electors of this state for approval or rejection at the next |
| 9 | general election or at an earlier special election specifically |
| 10 | authorized by law for that purpose: |
| 11 | ARTICLE VII |
| 12 | FINANCE AND TAXATION |
| 13 | SECTION 3. Taxes; exemptions.-- |
| 14 | (a) All property owned by a municipality and used |
| 15 | exclusively by it for municipal or public purposes shall be |
| 16 | exempt from taxation. A municipality, owning property outside |
| 17 | the municipality, may be required by general law to make payment |
| 18 | to the taxing unit in which the property is located. Such |
| 19 | portions of property as are used predominantly for educational, |
| 20 | literary, scientific, religious or charitable purposes may be |
| 21 | exempted by general law from taxation. |
| 22 | (b) There shall be exempt from taxation, cumulatively, to |
| 23 | every head of a family residing in this state, household goods |
| 24 | and personal effects to the value fixed by general law, not less |
| 25 | than one thousand dollars, and to every widow or widower or |
| 26 | person who is blind or totally and permanently disabled, |
| 27 | property to the value fixed by general law not less than five |
| 28 | hundred dollars. |
| 29 | (c) Any county or municipality may, for the purpose of its |
| 30 | respective tax levy and subject to the provisions of this |
| 31 | subsection and general law, grant community and economic |
| 32 | development ad valorem tax exemptions to new businesses and |
| 33 | expansions of existing businesses, as defined by general law. |
| 34 | Such an exemption may be granted only by ordinance of the county |
| 35 | or municipality, and only after the electors of the county or |
| 36 | municipality voting on such question in a referendum authorize |
| 37 | the county or municipality to adopt such ordinances. An |
| 38 | exemption so granted shall apply to improvements to real |
| 39 | property made by or for the use of a new business and |
| 40 | improvements to real property related to the expansion of an |
| 41 | existing business and shall also apply to tangible personal |
| 42 | property of such new business and tangible personal property |
| 43 | related to the expansion of an existing business. The amount or |
| 44 | limits of the amount of such exemption shall be specified by |
| 45 | general law. The period of time for which such exemption may be |
| 46 | granted to a new business or expansion of an existing business |
| 47 | shall be determined by general law. The authority to grant such |
| 48 | exemption shall expire ten years from the date of approval by |
| 49 | the electors of the county or municipality, and may be renewable |
| 50 | by referendum as provided by general law. |
| 51 | (d) By general law and subject to conditions specified |
| 52 | therein, there may be granted an ad valorem tax exemption to a |
| 53 | renewable energy source device and to real property on which |
| 54 | such device is installed and operated, to the value fixed by |
| 55 | general law not to exceed the original cost of the device, and |
| 56 | for the period of time fixed by general law not to exceed ten |
| 57 | years. |
| 58 | (e) Any county or municipality may, for the purpose of its |
| 59 | respective tax levy and subject to the provisions of this |
| 60 | subsection and general law, grant historic preservation ad |
| 61 | valorem tax exemptions to owners of historic properties. This |
| 62 | exemption may be granted only by ordinance of the county or |
| 63 | municipality. The amount or limits of the amount of this |
| 64 | exemption and the requirements for eligible properties must be |
| 65 | specified by general law. The period of time for which this |
| 66 | exemption may be granted to a property owner shall be determined |
| 67 | by general law. |
| 68 | (f) By general law and subject to conditions specified |
| 69 | therein, tangible personal property up to a value of twenty-five |
| 70 | thousand dollars shall be exempt from taxation. |
| 71 | SECTION 6. Homestead exemptions.-- |
| 72 | (a) Every person who has the legal or equitable title to |
| 73 | real estate and maintains thereon the permanent residence of the |
| 74 | owner, or another legally or naturally dependent upon the owner, |
| 75 | shall be exempt from taxation thereon, except assessments for |
| 76 | special benefits, up to the assessed valuation of five thousand |
| 77 | dollars, upon establishment of right thereto in the manner |
| 78 | prescribed by law. The real estate may be held by legal or |
| 79 | equitable title, by the entireties, jointly, in common, as a |
| 80 | condominium, or indirectly by stock ownership or membership |
| 81 | representing the owner's or member's proprietary interest in a |
| 82 | corporation owning a fee or a leasehold initially in excess of |
| 83 | ninety-eight years. |
| 84 | (b) Not more than one exemption shall be allowed any |
| 85 | individual or family unit or with respect to any residential |
| 86 | unit. No exemption shall exceed the value of the real estate |
| 87 | assessable to the owner or, in case of ownership through stock |
| 88 | or membership in a corporation, the value of the proportion |
| 89 | which the interest in the corporation bears to the assessed |
| 90 | value of the property. |
| 91 | (c) By general law and subject to conditions specified |
| 92 | therein, the exemption shall be increased to a total of twenty- |
| 93 | five thousand dollars of the assessed value of the real estate |
| 94 | for each school district levy. By general law and subject to |
| 95 | conditions specified therein, the exemption for all other levies |
| 96 | may be increased up to an amount not exceeding ten thousand |
| 97 | dollars of the assessed value of the real estate if the owner |
| 98 | has attained age sixty-five or is totally and permanently |
| 99 | disabled and if the owner is not entitled to the exemption |
| 100 | provided in subsection (d). |
| 101 | (d) By general law and subject to conditions specified |
| 102 | therein, the exemption shall be increased to a total of the |
| 103 | following amounts of assessed value of real estate for each levy |
| 104 | other than those of school districts: fifteen thousand dollars |
| 105 | with respect to 1980 assessments; twenty thousand dollars with |
| 106 | respect to 1981 assessments; twenty-five thousand dollars with |
| 107 | respect to assessments for 1982 and each year thereafter. |
| 108 | However, such increase shall not apply with respect to any |
| 109 | assessment roll until such roll is first determined to be in |
| 110 | compliance with the provisions of section 4 by a state agency |
| 111 | designated by general law. This subsection shall stand repealed |
| 112 | on the effective date of any amendment to section 4 which |
| 113 | provides for the assessment of homestead property at a specified |
| 114 | percentage of its just value. |
| 115 | (e) By general law and subject to conditions specified |
| 116 | therein, the Legislature may provide to renters, who are |
| 117 | permanent residents, ad valorem tax relief on all ad valorem tax |
| 118 | levies. Such ad valorem tax relief shall be in the form and |
| 119 | amount established by general law and may be provided in the |
| 120 | form of tax relief to the owner of the property. |
| 121 | (f) The legislature may, by general law, allow counties or |
| 122 | municipalities, for the purpose of their respective tax levies |
| 123 | and subject to the provisions of general law, to grant an |
| 124 | additional homestead tax exemption not exceeding fifty thousand |
| 125 | dollars to any person who has the legal or equitable title to |
| 126 | real estate and maintains thereon the permanent residence of the |
| 127 | owner and who has attained age sixty-five and whose household |
| 128 | income, as defined by general law, does not exceed twenty |
| 129 | thousand dollars. The general law must allow counties and |
| 130 | municipalities to grant this additional exemption, within the |
| 131 | limits prescribed in this subsection, by ordinance adopted in |
| 132 | the manner prescribed by general law, and must provide for the |
| 133 | periodic adjustment of the income limitation prescribed in this |
| 134 | subsection for changes in the cost of living. |
| 135 | (g) Each veteran who is age 65 or older who is partially |
| 136 | or totally permanently disabled shall receive a discount from |
| 137 | the amount of the ad valorem tax otherwise owed on homestead |
| 138 | property the veteran owns and resides in if the disability was |
| 139 | combat related, the veteran was a resident of this state at the |
| 140 | time of entering the military service of the United States, and |
| 141 | the veteran was honorably discharged upon separation from |
| 142 | military service. The discount shall be in a percentage equal to |
| 143 | the percentage of the veteran's permanent, service-connected |
| 144 | disability as determined by the United States Department of |
| 145 | Veterans Affairs. To qualify for the discount granted by this |
| 146 | subsection, an applicant must submit to the county property |
| 147 | appraiser, by March 1, proof of residency at the time of |
| 148 | entering military service, an official letter from the United |
| 149 | States Department of Veterans Affairs stating the percentage of |
| 150 | the veteran's service-connected disability and such evidence |
| 151 | that reasonably identifies the disability as combat related, and |
| 152 | a copy of the veteran's honorable discharge. If the property |
| 153 | appraiser denies the request for a discount, the appraiser must |
| 154 | notify the applicant in writing of the reasons for the denial, |
| 155 | and the veteran may reapply. The Legislature may, by general |
| 156 | law, waive the annual application requirement in subsequent |
| 157 | years. This subsection shall take effect December 7, 2006, is |
| 158 | self-executing, and does not require implementing legislation. |
| 159 | SECTION 9. Local taxes.-- |
| 160 | (a) Counties, school districts, and municipalities shall, |
| 161 | and special districts may, be authorized by law to levy ad |
| 162 | valorem taxes and may be authorized by general law to levy other |
| 163 | taxes, for their respective purposes, except ad valorem taxes on |
| 164 | intangible personal property and taxes prohibited by this |
| 165 | constitution. |
| 166 | (b) Ad valorem taxes, exclusive of taxes levied for the |
| 167 | payment of bonds and taxes levied for periods not longer than |
| 168 | two years when authorized by vote of the electors who are the |
| 169 | owners of freeholds therein not wholly exempt from taxation, |
| 170 | shall not be levied in excess of the following millages upon the |
| 171 | assessed value of real estate and tangible personal property: |
| 172 | for all county purposes, ten mills; for all municipal purposes, |
| 173 | ten mills; for all school purposes, ten mills; for water |
| 174 | management purposes for the northwest portion of the state lying |
| 175 | west of the line between ranges two and three east, 0.05 mill; |
| 176 | for water management purposes for the remaining portions of the |
| 177 | state, 1.0 mill; and for all other special districts a millage |
| 178 | authorized by law approved by vote of the electors who are |
| 179 | owners of freeholds therein not wholly exempt from taxation. A |
| 180 | county furnishing municipal services may, to the extent |
| 181 | authorized by law, levy additional taxes within the limits fixed |
| 182 | for municipal purposes. |
| 183 | (c) Subject to the limitations provided for in subsection |
| 184 | (b): |
| 185 | (1)a. Ad valorem taxes may not be levied in excess of a |
| 186 | millage rate equal to the rolled-back rate adjusted by the |
| 187 | percentage change in the Consumer Price Index for all urban |
| 188 | consumers, U.S. City Average, all items 1982-84 = 100, or |
| 189 | successor reports, for the 12-month period through June prior to |
| 190 | the beginning of the fiscal year as initially reported by the |
| 191 | United States Department of Labor, Bureau of Labor Statistics. |
| 192 | For purposes of this paragraph, the term "rolled-back rate" |
| 193 | means a millage rate that, exclusive of new construction, |
| 194 | additions to structures, deletions, increases in the value of |
| 195 | improvements that have undergone a substantial rehabilitation |
| 196 | that increased the assessed value of such improvements by at |
| 197 | least one hundred percent, and property added due to geographic |
| 198 | boundary changes, will provide the same ad valorem tax revenue |
| 199 | for each taxing authority as was levied during the immediately |
| 200 | preceding year. The rolled-back rate applicable for the year |
| 201 | tangible personal property is first exempt pursuant to Section 3 |
| 202 | of this Article or homestead property is first exempt pursuant |
| 203 | to Section (6)(h) or (i) or Section 19 of this Article shall be |
| 204 | calculated by using the ad valorem tax revenue levied during the |
| 205 | immediately preceding year reduced by the taxes levied on the |
| 206 | property being first exempt. |
| 207 | b. This paragraph does not apply to taxing authorities |
| 208 | that have levied ad valorem taxes for less than five years and |
| 209 | to millage rates required by the legislature to be levied by |
| 210 | school boards as required local effort from ad valorem taxes. |
| 211 | (2)a. For the fiscal year beginning October 1, 2008, ad |
| 212 | valorem taxes may not be levied in excess of the maximum millage |
| 213 | rate that would have resulted from the application of paragraph |
| 214 | (1) if paragraph (1) had been in effect beginning on January 1, |
| 215 | 2004, and had been applied each year up to and including the |
| 216 | fiscal year beginning October 1, 2007. |
| 217 | b. A taxing authority that begins levying taxes after |
| 218 | January 1, 1999, may not levy ad valorem taxes in excess of the |
| 219 | maximum millage rate that would have resulted from the |
| 220 | application of paragraph (1) if paragraph (1) had been in effect |
| 221 | in the fifth full fiscal year in which the authority levied ad |
| 222 | valorem taxes and had been applied up to and including the |
| 223 | fiscal year beginning October 1, 2007. |
| 224 | c. This paragraph does not apply to ad valorem taxes |
| 225 | levied by school districts and independent special districts as |
| 226 | defined by general law. By general law and subject to conditions |
| 227 | specified therein, the legislature shall exempt taxes levied by |
| 228 | hospital and health care districts, children's services |
| 229 | districts, fiscally constrained counties, municipalities located |
| 230 | in a county considered a fiscally constrained county pursuant to |
| 231 | general law, and municipalities located in a rural area of |
| 232 | critical economic concern established pursuant to general law |
| 233 | from the provisions of this paragraph. |
| 234 | (3) Ad valorem taxes may be levied in excess of the |
| 235 | limitations provided in this subsection upon approval by a |
| 236 | unanimous vote of the full membership of the governing body |
| 237 | adopting the millage rate. |
| 238 | (4) This subsection does not apply to ad valorem taxes |
| 239 | levied for the payment of bonds issued pursuant to Section 12 of |
| 240 | this Article or levied for periods not longer than two years |
| 241 | when authorized by a vote of the electors. |
| 242 | (d) The aggregate amount of required local effort for all |
| 243 | school districts collectively to be raised from ad valorem taxes |
| 244 | each year may not exceed the aggregate amount required in the |
| 245 | immediately preceding prior year, adjusted by the percentage |
| 246 | that additions to the ad valorem tax base represent to the |
| 247 | entire ad valorem tax base and by the percentage change in the |
| 248 | Consumer Price Index for all urban consumers, U.S. City Average, |
| 249 | all items 1982-84 = 100, or successor reports, for the 12-month |
| 250 | period through June prior to the beginning of the fiscal year as |
| 251 | initially reported by the United States Department of Labor, |
| 252 | Bureau of Labor Statistics. For purposes of this subsection, the |
| 253 | term "additions to the ad valorem tax base" means new |
| 254 | construction, additions to structures, deletions, increases in |
| 255 | the value of improvements that have undergone a substantial |
| 256 | rehabilitation that increased the assessed value of such |
| 257 | improvements by at least one hundred percent, and property added |
| 258 | due to geographic boundary changes. |
| 259 | ARTICLE XII |
| 260 | SCHEDULE |
| 261 | SECTION 27. Property tax relief reform; nonseverability.-- |
| 262 | (a) The amendments to Sections 3, 6, and 9 of Article VII |
| 263 | and the creation of this section of this constitution contained |
| 264 | in this revision shall take effect January 1, 2008. |
| 265 | (b) The amendments to Sections 3, 6, and 9 of Article VII |
| 266 | of this constitution contained in this revision are not |
| 267 | severable. If any portion of this revision is held invalid under |
| 268 | any provision of this constitution, the effect of such |
| 269 | declaration shall be that the amendments to Sections 3, 6, and 9 |
| 270 | of Article VII of this constitution contained in this revision |
| 271 | shall be null, void, and without effect. |
| 272 |
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| 273 |
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| 274 | == B A L L O T S T A T E M E N T A M E N D M E N T == |
| 275 | Remove line(s) 386-416 and insert: |
| 276 | CONSTITUTIONAL AMENDMENT |
| 277 | ARTICLE VII, SECTIONS 3, 6, 9 |
| 278 | ARTICLE XII, SECTION 27 |
| 279 | PROPERTY TAX EXEMPTIONS; AD VALOREM TAX MILLAGE |
| 280 | LIMITATION.--Proposing amendment of the State Constitution to |
| 281 | provide for a $25,000 exemption from ad valorem taxes for |
| 282 | tangible personal property; to clarify that ad valorem tax |
| 283 | relief to renters may be provided in the form of tax relief to |
| 284 | the owner of the property; to provide a methodology for limiting |
| 285 | increases in ad valorem taxes, including an override by a |
| 286 | unanimous vote of the governing body levying the millage; to |
| 287 | limit the aggregate amount of required local effort for all |
| 288 | school districts collectively; to require that provisions of the |
| 289 | revision are not severable such that if any are held invalid, |
| 290 | all will be invalid; and to provide an effective date of January |
| 291 | 1, 2008. |
| 292 |
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| 293 |
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| 294 | ======= T I T L E A M E N D M E N T ======= |
| 295 | Remove line(s) 3-18 and insert: |
| 296 | and 9 of Article VII and the creation of Section 27 of |
| 297 | Article XII of the State Constitution to provide for an ad |
| 298 | valorem tax exemption for tangible personal property, |
| 299 | clarify that ad valorem tax relief to renters may be |
| 300 | provided in the form of tax relief to the owner of the |
| 301 | property, provide a methodology for limiting increases in |
| 302 | ad valorem taxes, and provide applicability, |
| 303 | nonseverability, and an effective date. |