Amendment
Bill No. 7089
Amendment No. 814655
CHAMBER ACTION
Senate House
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1Representative(s) Saunders offered the following:
2
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
6Article VII and the creation of Section 27 of Article XII of the
7State Constitution are agreed to and shall be submitted to the
8electors of this state for approval or rejection at the next
9general election or at an earlier special election specifically
10authorized 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
15exclusively by it for municipal or public purposes shall be
16exempt from taxation. A municipality, owning property outside
17the municipality, may be required by general law to make payment
18to the taxing unit in which the property is located. Such
19portions of property as are used predominantly for educational,
20literary, scientific, religious or charitable purposes may be
21exempted by general law from taxation.
22     (b)  There shall be exempt from taxation, cumulatively, to
23every head of a family residing in this state, household goods
24and personal effects to the value fixed by general law, not less
25than one thousand dollars, and to every widow or widower or
26person who is blind or totally and permanently disabled,
27property to the value fixed by general law not less than five
28hundred dollars.
29     (c)  Any county or municipality may, for the purpose of its
30respective tax levy and subject to the provisions of this
31subsection and general law, grant community and economic
32development ad valorem tax exemptions to new businesses and
33expansions of existing businesses, as defined by general law.
34Such an exemption may be granted only by ordinance of the county
35or municipality, and only after the electors of the county or
36municipality voting on such question in a referendum authorize
37the county or municipality to adopt such ordinances. An
38exemption so granted shall apply to improvements to real
39property made by or for the use of a new business and
40improvements to real property related to the expansion of an
41existing business and shall also apply to tangible personal
42property of such new business and tangible personal property
43related to the expansion of an existing business. The amount or
44limits of the amount of such exemption shall be specified by
45general law. The period of time for which such exemption may be
46granted to a new business or expansion of an existing business
47shall be determined by general law. The authority to grant such
48exemption shall expire ten years from the date of approval by
49the electors of the county or municipality, and may be renewable
50by referendum as provided by general law.
51     (d)  By general law and subject to conditions specified
52therein, there may be granted an ad valorem tax exemption to a
53renewable energy source device and to real property on which
54such device is installed and operated, to the value fixed by
55general law not to exceed the original cost of the device, and
56for the period of time fixed by general law not to exceed ten
57years.
58     (e)  Any county or municipality may, for the purpose of its
59respective tax levy and subject to the provisions of this
60subsection and general law, grant historic preservation ad
61valorem tax exemptions to owners of historic properties. This
62exemption may be granted only by ordinance of the county or
63municipality. The amount or limits of the amount of this
64exemption and the requirements for eligible properties must be
65specified by general law. The period of time for which this
66exemption may be granted to a property owner shall be determined
67by general law.
68     (f)  By general law and subject to conditions specified
69therein, tangible personal property up to a value of twenty-five
70thousand dollars shall be exempt from taxation.
71     SECTION 6.  Homestead exemptions.--
72     (a)  Every person who has the legal or equitable title to
73real estate and maintains thereon the permanent residence of the
74owner, or another legally or naturally dependent upon the owner,
75shall be exempt from taxation thereon, except assessments for
76special benefits, up to the assessed valuation of five thousand
77dollars, upon establishment of right thereto in the manner
78prescribed by law. The real estate may be held by legal or
79equitable title, by the entireties, jointly, in common, as a
80condominium, or indirectly by stock ownership or membership
81representing the owner's or member's proprietary interest in a
82corporation owning a fee or a leasehold initially in excess of
83ninety-eight years.
84     (b)  Not more than one exemption shall be allowed any
85individual or family unit or with respect to any residential
86unit. No exemption shall exceed the value of the real estate
87assessable to the owner or, in case of ownership through stock
88or membership in a corporation, the value of the proportion
89which the interest in the corporation bears to the assessed
90value of the property.
91     (c)  By general law and subject to conditions specified
92therein, the exemption shall be increased to a total of twenty-
93five thousand dollars of the assessed value of the real estate
94for each school district levy. By general law and subject to
95conditions specified therein, the exemption for all other levies
96may be increased up to an amount not exceeding ten thousand
97dollars of the assessed value of the real estate if the owner
98has attained age sixty-five or is totally and permanently
99disabled and if the owner is not entitled to the exemption
100provided in subsection (d).
101     (d)  By general law and subject to conditions specified
102therein, the exemption shall be increased to a total of the
103following amounts of assessed value of real estate for each levy
104other than those of school districts: fifteen thousand dollars
105with respect to 1980 assessments; twenty thousand dollars with
106respect to 1981 assessments; twenty-five thousand dollars with
107respect to assessments for 1982 and each year thereafter.
108However, such increase shall not apply with respect to any
109assessment roll until such roll is first determined to be in
110compliance with the provisions of section 4 by a state agency
111designated by general law. This subsection shall stand repealed
112on the effective date of any amendment to section 4 which
113provides for the assessment of homestead property at a specified
114percentage of its just value.
115     (e)  By general law and subject to conditions specified
116therein, the Legislature may provide to renters, who are
117permanent residents, ad valorem tax relief on all ad valorem tax
118levies. Such ad valorem tax relief shall be in the form and
119amount established by general law and may be provided in the
120form of tax relief to the owner of the property.
121     (f)  The legislature may, by general law, allow counties or
122municipalities, for the purpose of their respective tax levies
123and subject to the provisions of general law, to grant an
124additional homestead tax exemption not exceeding fifty thousand
125dollars to any person who has the legal or equitable title to
126real estate and maintains thereon the permanent residence of the
127owner and who has attained age sixty-five and whose household
128income, as defined by general law, does not exceed twenty
129thousand dollars. The general law must allow counties and
130municipalities to grant this additional exemption, within the
131limits prescribed in this subsection, by ordinance adopted in
132the manner prescribed by general law, and must provide for the
133periodic adjustment of the income limitation prescribed in this
134subsection for changes in the cost of living.
135     (g)  Each veteran who is age 65 or older who is partially
136or totally permanently disabled shall receive a discount from
137the amount of the ad valorem tax otherwise owed on homestead
138property the veteran owns and resides in if the disability was
139combat related, the veteran was a resident of this state at the
140time of entering the military service of the United States, and
141the veteran was honorably discharged upon separation from
142military service. The discount shall be in a percentage equal to
143the percentage of the veteran's permanent, service-connected
144disability as determined by the United States Department of
145Veterans Affairs. To qualify for the discount granted by this
146subsection, an applicant must submit to the county property
147appraiser, by March 1, proof of residency at the time of
148entering military service, an official letter from the United
149States Department of Veterans Affairs stating the percentage of
150the veteran's service-connected disability and such evidence
151that reasonably identifies the disability as combat related, and
152a copy of the veteran's honorable discharge. If the property
153appraiser denies the request for a discount, the appraiser must
154notify the applicant in writing of the reasons for the denial,
155and the veteran may reapply. The Legislature may, by general
156law, waive the annual application requirement in subsequent
157years. This subsection shall take effect December 7, 2006, is
158self-executing, and does not require implementing legislation.
159     SECTION 9.  Local taxes.--
160     (a)  Counties, school districts, and municipalities shall,
161and special districts may, be authorized by law to levy ad
162valorem taxes and may be authorized by general law to levy other
163taxes, for their respective purposes, except ad valorem taxes on
164intangible personal property and taxes prohibited by this
165constitution.
166     (b)  Ad valorem taxes, exclusive of taxes levied for the
167payment of bonds and taxes levied for periods not longer than
168two years when authorized by vote of the electors who are the
169owners of freeholds therein not wholly exempt from taxation,
170shall not be levied in excess of the following millages upon the
171assessed value of real estate and tangible personal property:
172for all county purposes, ten mills; for all municipal purposes,
173ten mills; for all school purposes, ten mills; for water
174management purposes for the northwest portion of the state lying
175west of the line between ranges two and three east, 0.05 mill;
176for water management purposes for the remaining portions of the
177state, 1.0 mill; and for all other special districts a millage
178authorized by law approved by vote of the electors who are
179owners of freeholds therein not wholly exempt from taxation. A
180county furnishing municipal services may, to the extent
181authorized by law, levy additional taxes within the limits fixed
182for 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
186millage rate equal to the rolled-back rate adjusted by the
187percentage change in the Consumer Price Index for all urban
188consumers, U.S. City Average, all items 1982-84 = 100, or
189successor reports, for the 12-month period through June prior to
190the beginning of the fiscal year as initially reported by the
191United States Department of Labor, Bureau of Labor Statistics.
192For purposes of this paragraph, the term "rolled-back rate"
193means a millage rate that, exclusive of new construction,
194additions to structures, deletions, increases in the value of
195improvements that have undergone a substantial rehabilitation
196that increased the assessed value of such improvements by at
197least one hundred percent, and property added due to geographic
198boundary changes, will provide the same ad valorem tax revenue
199for each taxing authority as was levied during the immediately
200preceding year. The rolled-back rate applicable for the year
201tangible personal property is first exempt pursuant to Section 3
202of this Article or homestead property is first exempt pursuant
203to Section (6)(h) or (i) or Section 19 of this Article shall be
204calculated by using the ad valorem tax revenue levied during the
205immediately preceding year reduced by the taxes levied on the
206property being first exempt.
207     b.  This paragraph does not apply to taxing authorities
208that have levied ad valorem taxes for less than five years and
209to millage rates required by the legislature to be levied by
210school boards as required local effort from ad valorem taxes.
211     (2)a.  For the fiscal year beginning October 1, 2008, ad
212valorem taxes may not be levied in excess of the maximum millage
213rate that would have resulted from the application of paragraph
214(1) if paragraph (1) had been in effect beginning on January 1,
2152004, and had been applied each year up to and including the
216fiscal year beginning October 1, 2007.
217     b.  A taxing authority that begins levying taxes after
218January 1, 1999, may not levy ad valorem taxes in excess of the
219maximum millage rate that would have resulted from the
220application of paragraph (1) if paragraph (1) had been in effect
221in the fifth full fiscal year in which the authority levied ad
222valorem taxes and had been applied up to and including the
223fiscal year beginning October 1, 2007.
224     c.  This paragraph does not apply to ad valorem taxes
225levied by school districts and independent special districts as
226defined by general law. By general law and subject to conditions
227specified therein, the legislature shall exempt taxes levied by
228hospital and health care districts, children's services
229districts, fiscally constrained counties, municipalities located
230in a county considered a fiscally constrained county pursuant to
231general law, and municipalities located in a rural area of
232critical economic concern established pursuant to general law
233from the provisions of this paragraph.
234     (3)  Ad valorem taxes may be levied in excess of the
235limitations provided in this subsection upon approval by a
236unanimous vote of the full membership of the governing body
237adopting the millage rate.
238     (4)  This subsection does not apply to ad valorem taxes
239levied for the payment of bonds issued pursuant to Section 12 of
240this Article or levied for periods not longer than two years
241when authorized by a vote of the electors.
242     (d)  The aggregate amount of required local effort for all
243school districts collectively to be raised from ad valorem taxes
244each year may not exceed the aggregate amount required in the
245immediately preceding prior year, adjusted by the percentage
246that additions to the ad valorem tax base represent to the
247entire ad valorem tax base and by the percentage change in the
248Consumer Price Index for all urban consumers, U.S. City Average,
249all items 1982-84 = 100, or successor reports, for the 12-month
250period through June prior to the beginning of the fiscal year as
251initially reported by the United States Department of Labor,
252Bureau of Labor Statistics. For purposes of this subsection, the
253term "additions to the ad valorem tax base" means new
254construction, additions to structures, deletions, increases in
255the value of improvements that have undergone a substantial
256rehabilitation that increased the assessed value of such
257improvements by at least one hundred percent, and property added
258due 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
263and the creation of this section of this constitution contained
264in this revision shall take effect January 1, 2008.
265     (b)  The amendments to Sections 3, 6, and 9 of Article VII
266of this constitution contained in this revision are not
267severable. If any portion of this revision is held invalid under
268any provision of this constitution, the effect of such
269declaration shall be that the amendments to Sections 3, 6, and 9
270of Article VII of this constitution contained in this revision
271shall be null, void, and without effect.
272
273
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
280LIMITATION.--Proposing amendment of the State Constitution to
281provide for a $25,000 exemption from ad valorem taxes for
282tangible personal property; to clarify that ad valorem tax
283relief to renters may be provided in the form of tax relief to
284the owner of the property; to provide a methodology for limiting
285increases in ad valorem taxes, including an override by a
286unanimous vote of the governing body levying the millage; to
287limit the aggregate amount of required local effort for all
288school districts collectively; to require that provisions of the
289revision are not severable such that if any are held invalid,
290all will be invalid; and to provide an effective date of January
2911, 2008.
292
293
294======= T I T L E  A M E N D M E N T =======
295     Remove line(s) 3-18 and insert:
296and 9 of Article VII and the creation of Section 27 of
297Article XII of the State Constitution to provide for an ad
298valorem tax exemption for tangible personal property,
299clarify that ad valorem tax relief to renters may be
300provided in the form of tax relief to the owner of the
301property, provide a methodology for limiting increases in
302ad valorem taxes, and provide applicability,
303nonseverability, and an effective date.


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