| 1 | House Joint Resolution |
| 2 | A joint resolution proposing amendments to Sections 3, 6, |
| 3 | and 9 of Article VII and the creation of Section 19 of |
| 4 | Article VII and Section 27 of Article XII of the State |
| 5 | Constitution to provide for an ad valorem tax exemption |
| 6 | for tangible personal property, clarify that ad valorem |
| 7 | tax relief to renters may be provided in the form of tax |
| 8 | relief to the owner of the property, authorize counties |
| 9 | and school districts to grant a homestead property |
| 10 | exemption and impose a discretionary sales surtax upon |
| 11 | approval by referendum, authorize qualified electors to |
| 12 | petition for a grant of the homestead exemption and |
| 13 | imposition of the surtax, provide a methodology for |
| 14 | limiting increases in ad valorem taxes, increase the state |
| 15 | sales and use tax to replace school district revenues lost |
| 16 | from not imposing a required local effort on homestead |
| 17 | property, and provide applicability, nonseverability, and |
| 18 | an effective date. |
| 19 |
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| 20 | Be It Resolved by the Legislature of the State of Florida: |
| 21 |
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| 22 | That the following amendments to Sections 3, 6, and 9 of |
| 23 | Article VII and the creation of Section 19 of Article VII and |
| 24 | Section 27 of Article XII of the State Constitution are agreed |
| 25 | to and shall be submitted to the electors of this state for |
| 26 | approval or rejection at the next general election or at an |
| 27 | earlier special election specifically authorized by law for that |
| 28 | purpose: |
| 29 | ARTICLE VII |
| 30 | FINANCE AND TAXATION |
| 31 | SECTION 3. Taxes; exemptions.-- |
| 32 | (a) All property owned by a municipality and used |
| 33 | exclusively by it for municipal or public purposes shall be |
| 34 | exempt from taxation. A municipality, owning property outside |
| 35 | the municipality, may be required by general law to make payment |
| 36 | to the taxing unit in which the property is located. Such |
| 37 | portions of property as are used predominantly for educational, |
| 38 | literary, scientific, religious or charitable purposes may be |
| 39 | exempted by general law from taxation. |
| 40 | (b) There shall be exempt from taxation, cumulatively, to |
| 41 | every head of a family residing in this state, household goods |
| 42 | and personal effects to the value fixed by general law, not less |
| 43 | than one thousand dollars, and to every widow or widower or |
| 44 | person who is blind or totally and permanently disabled, |
| 45 | property to the value fixed by general law not less than five |
| 46 | hundred dollars. |
| 47 | (c) Any county or municipality may, for the purpose of its |
| 48 | respective tax levy and subject to the provisions of this |
| 49 | subsection and general law, grant community and economic |
| 50 | development ad valorem tax exemptions to new businesses and |
| 51 | expansions of existing businesses, as defined by general law. |
| 52 | Such an exemption may be granted only by ordinance of the county |
| 53 | or municipality, and only after the electors of the county or |
| 54 | municipality voting on such question in a referendum authorize |
| 55 | the county or municipality to adopt such ordinances. An |
| 56 | exemption so granted shall apply to improvements to real |
| 57 | property made by or for the use of a new business and |
| 58 | improvements to real property related to the expansion of an |
| 59 | existing business and shall also apply to tangible personal |
| 60 | property of such new business and tangible personal property |
| 61 | related to the expansion of an existing business. The amount or |
| 62 | limits of the amount of such exemption shall be specified by |
| 63 | general law. The period of time for which such exemption may be |
| 64 | granted to a new business or expansion of an existing business |
| 65 | shall be determined by general law. The authority to grant such |
| 66 | exemption shall expire ten years from the date of approval by |
| 67 | the electors of the county or municipality, and may be renewable |
| 68 | by referendum as provided by general law. |
| 69 | (d) By general law and subject to conditions specified |
| 70 | therein, there may be granted an ad valorem tax exemption to a |
| 71 | renewable energy source device and to real property on which |
| 72 | such device is installed and operated, to the value fixed by |
| 73 | general law not to exceed the original cost of the device, and |
| 74 | for the period of time fixed by general law not to exceed ten |
| 75 | years. |
| 76 | (e) Any county or municipality may, for the purpose of its |
| 77 | respective tax levy and subject to the provisions of this |
| 78 | subsection and general law, grant historic preservation ad |
| 79 | valorem tax exemptions to owners of historic properties. This |
| 80 | exemption may be granted only by ordinance of the county or |
| 81 | municipality. The amount or limits of the amount of this |
| 82 | exemption and the requirements for eligible properties must be |
| 83 | specified by general law. The period of time for which this |
| 84 | exemption may be granted to a property owner shall be determined |
| 85 | by general law. |
| 86 | (f) By general law and subject to conditions specified |
| 87 | therein, tangible personal property up to a value of twenty-five |
| 88 | thousand dollars shall be exempt from taxation. |
| 89 | SECTION 6. Homestead exemptions.-- |
| 90 | (a) Every person who has the legal or equitable title to |
| 91 | real estate and maintains thereon the permanent residence of the |
| 92 | owner, or another legally or naturally dependent upon the owner, |
| 93 | shall be exempt from taxation thereon, except assessments for |
| 94 | special benefits, up to the assessed valuation of five thousand |
| 95 | dollars, upon establishment of right thereto in the manner |
| 96 | prescribed by law. The real estate may be held by legal or |
| 97 | equitable title, by the entireties, jointly, in common, as a |
| 98 | condominium, or indirectly by stock ownership or membership |
| 99 | representing the owner's or member's proprietary interest in a |
| 100 | corporation owning a fee or a leasehold initially in excess of |
| 101 | ninety-eight years. |
| 102 | (b) Not more than one exemption shall be allowed any |
| 103 | individual or family unit or with respect to any residential |
| 104 | unit. No exemption shall exceed the value of the real estate |
| 105 | assessable to the owner or, in case of ownership through stock |
| 106 | or membership in a corporation, the value of the proportion |
| 107 | which the interest in the corporation bears to the assessed |
| 108 | value of the property. |
| 109 | (c) By general law and subject to conditions specified |
| 110 | therein, the exemption shall be increased to a total of twenty- |
| 111 | five thousand dollars of the assessed value of the real estate |
| 112 | for each school district levy. By general law and subject to |
| 113 | conditions specified therein, the exemption for all other levies |
| 114 | may be increased up to an amount not exceeding ten thousand |
| 115 | dollars of the assessed value of the real estate if the owner |
| 116 | has attained age sixty-five or is totally and permanently |
| 117 | disabled and if the owner is not entitled to the exemption |
| 118 | provided in subsection (d). |
| 119 | (d) By general law and subject to conditions specified |
| 120 | therein, the exemption shall be increased to a total of the |
| 121 | following amounts of assessed value of real estate for each levy |
| 122 | other than those of school districts: fifteen thousand dollars |
| 123 | with respect to 1980 assessments; twenty thousand dollars with |
| 124 | respect to 1981 assessments; twenty-five thousand dollars with |
| 125 | respect to assessments for 1982 and each year thereafter. |
| 126 | However, such increase shall not apply with respect to any |
| 127 | assessment roll until such roll is first determined to be in |
| 128 | compliance with the provisions of section 4 by a state agency |
| 129 | designated by general law. This subsection shall stand repealed |
| 130 | on the effective date of any amendment to section 4 which |
| 131 | provides for the assessment of homestead property at a specified |
| 132 | percentage of its just value. |
| 133 | (e) By general law and subject to conditions specified |
| 134 | therein, the Legislature may provide to renters, who are |
| 135 | permanent residents, ad valorem tax relief on all ad valorem tax |
| 136 | levies. Such ad valorem tax relief shall be in the form and |
| 137 | amount established by general law and may be provided in the |
| 138 | form of tax relief to the owner of the property. |
| 139 | (f) The legislature may, by general law, allow counties or |
| 140 | municipalities, for the purpose of their respective tax levies |
| 141 | and subject to the provisions of general law, to grant an |
| 142 | additional homestead tax exemption not exceeding fifty thousand |
| 143 | dollars to any person who has the legal or equitable title to |
| 144 | real estate and maintains thereon the permanent residence of the |
| 145 | owner and who has attained age sixty-five and whose household |
| 146 | income, as defined by general law, does not exceed twenty |
| 147 | thousand dollars. The general law must allow counties and |
| 148 | municipalities to grant this additional exemption, within the |
| 149 | limits prescribed in this subsection, by ordinance adopted in |
| 150 | the manner prescribed by general law, and must provide for the |
| 151 | periodic adjustment of the income limitation prescribed in this |
| 152 | subsection for changes in the cost of living. |
| 153 | (g) Each veteran who is age 65 or older who is partially |
| 154 | or totally permanently disabled shall receive a discount from |
| 155 | the amount of the ad valorem tax otherwise owed on homestead |
| 156 | property the veteran owns and resides in if the disability was |
| 157 | combat related, the veteran was a resident of this state at the |
| 158 | time of entering the military service of the United States, and |
| 159 | the veteran was honorably discharged upon separation from |
| 160 | military service. The discount shall be in a percentage equal to |
| 161 | the percentage of the veteran's permanent, service-connected |
| 162 | disability as determined by the United States Department of |
| 163 | Veterans Affairs. To qualify for the discount granted by this |
| 164 | subsection, an applicant must submit to the county property |
| 165 | appraiser, by March 1, proof of residency at the time of |
| 166 | entering military service, an official letter from the United |
| 167 | States Department of Veterans Affairs stating the percentage of |
| 168 | the veteran's service-connected disability and such evidence |
| 169 | that reasonably identifies the disability as combat related, and |
| 170 | a copy of the veteran's honorable discharge. If the property |
| 171 | appraiser denies the request for a discount, the appraiser must |
| 172 | notify the applicant in writing of the reasons for the denial, |
| 173 | and the veteran may reapply. The Legislature may, by general |
| 174 | law, waive the annual application requirement in subsequent |
| 175 | years. This subsection shall take effect December 7, 2006, is |
| 176 | self-executing, and does not require implementing legislation. |
| 177 | (h) A county may provide to every person who qualifies for |
| 178 | an exemption under this section an exemption from all ad valorem |
| 179 | tax levies imposed by all taxing authorities within the county |
| 180 | other than school districts and, at the same time, levy a |
| 181 | discretionary sales surtax of up to one percent on any |
| 182 | transaction or use currently or hereafter subject to tax |
| 183 | pursuant to the provisions of chapter 212, Florida Statutes. |
| 184 | Exemptions from the tax imposed pursuant to chapter 212, Florida |
| 185 | Statutes, adopted by general law, shall apply to the surtax. The |
| 186 | sales surtax rate levied may not be expected to produce revenues |
| 187 | in the first full year it is in effect that exceed the revenues |
| 188 | expected to be produced from the ad valorem tax being replaced. |
| 189 | The exemption and the imposition of the surtax shall be by |
| 190 | ordinance and shall not take effect unless the ordinance is |
| 191 | approved by a majority of the electors of the county voting in a |
| 192 | referendum. Upon submission of a petition to the county |
| 193 | commission signed by at least fifteen percent of the qualified |
| 194 | electors of the county requesting that a referendum be held on |
| 195 | an ordinance providing for the exemption and imposition of the |
| 196 | surtax as provided in this subsection, the county commission |
| 197 | shall adopt such an ordinance and schedule such referendum |
| 198 | within 90 days. Proceeds from the surtax shall be distributed to |
| 199 | the taxing authorities within the county, other than the school |
| 200 | district, based upon a formula developed by the county. Proceeds |
| 201 | from the surtax received by a county, municipality, or special |
| 202 | district shall be used, prior to any other purpose, to the |
| 203 | extent necessary for payments relating to bonds or any similar |
| 204 | financial obligations, paid from or secured by ad valorem tax |
| 205 | revenues, that are outstanding on the effective date of this |
| 206 | amendment, including any subsequent refunding of such bonds or |
| 207 | other similar financial obligations. If a referendum has not |
| 208 | been held pursuant to this subsection before October 31, 2010, a |
| 209 | referendum shall be held in November of 2010. After an ordinance |
| 210 | adopted under this subsection has been approved by referendum, |
| 211 | the exemption granted and surtax imposed shall be permanent and |
| 212 | may not be repealed or rescinded. |
| 213 | (i) A school district may provide to every person who |
| 214 | qualifies for an exemption under this section an exemption from |
| 215 | all ad valorem tax levies imposed by the school district and, at |
| 216 | the same time, levy a discretionary sales surtax of up to one- |
| 217 | half of one percent on any transaction or use currently or |
| 218 | hereafter subject to tax pursuant to the provisions of chapter |
| 219 | 212, Florida Statutes. The sales surtax rate levied may not be |
| 220 | expected to produce revenues in the first full year it is in |
| 221 | effect that exceed the revenues expected to be produced from the |
| 222 | ad valorem tax being replaced. Exemptions from the tax imposed |
| 223 | pursuant to chapter 212, Florida Statutes, adopted by general |
| 224 | law, shall apply to the surtax. The exemption and the imposition |
| 225 | of the surtax shall be by resolution adopted by the district |
| 226 | school board and shall not take effect unless the resolution is |
| 227 | approved by a majority of the electors of the school district |
| 228 | voting in a referendum. Upon submission of a petition to the |
| 229 | district school board signed by at least fifteen percent of the |
| 230 | qualified electors of the school district requesting that a |
| 231 | referendum be held on a resolution providing for the exemption |
| 232 | and imposition of the surtax as provided in this subsection, the |
| 233 | district school board shall adopt such a resolution and schedule |
| 234 | such referendum within 90 days. Proceeds from the surtax shall |
| 235 | be distributed to the school district. Proceeds from the surtax |
| 236 | received by the school district shall be used, prior to any |
| 237 | other purpose, to the extent necessary for payments relating to |
| 238 | bonds or any similar financial obligations, paid from or secured |
| 239 | by ad valorem tax revenues, that are outstanding on the |
| 240 | effective date of this amendment, including any subsequent |
| 241 | refunding of such bonds or other similar financial obligations. |
| 242 | If a referendum has not been held pursuant to this subsection |
| 243 | before October 31, 2010, a referendum shall be held in November |
| 244 | of 2010. After an ordinance adopted under this subsection has |
| 245 | been approved by referendum, the exemption granted and surtax |
| 246 | imposed shall be permanent and may not be repealed or rescinded. |
| 247 | SECTION 9. Local taxes.-- |
| 248 | (a) Counties, school districts, and municipalities shall, |
| 249 | and special districts may, be authorized by law to levy ad |
| 250 | valorem taxes and may be authorized by general law to levy other |
| 251 | taxes, for their respective purposes, except ad valorem taxes on |
| 252 | intangible personal property and taxes prohibited by this |
| 253 | constitution. |
| 254 | (b) Ad valorem taxes, exclusive of taxes levied for the |
| 255 | payment of bonds and taxes levied for periods not longer than |
| 256 | two years when authorized by vote of the electors who are the |
| 257 | owners of freeholds therein not wholly exempt from taxation, |
| 258 | shall not be levied in excess of the following millages upon the |
| 259 | assessed value of real estate and tangible personal property: |
| 260 | for all county purposes, ten mills; for all municipal purposes, |
| 261 | ten mills; for all school purposes, ten mills; for water |
| 262 | management purposes for the northwest portion of the state lying |
| 263 | west of the line between ranges two and three east, 0.05 mill; |
| 264 | for water management purposes for the remaining portions of the |
| 265 | state, 1.0 mill; and for all other special districts a millage |
| 266 | authorized by law approved by vote of the electors who are |
| 267 | owners of freeholds therein not wholly exempt from taxation. A |
| 268 | county furnishing municipal services may, to the extent |
| 269 | authorized by law, levy additional taxes within the limits fixed |
| 270 | for municipal purposes. |
| 271 | (c) Subject to the limitations provided for in subsection |
| 272 | (b): |
| 273 | (1)a. Ad valorem taxes may not be levied in excess of a |
| 274 | millage rate equal to the rolled-back rate adjusted by the |
| 275 | percentage change in the Consumer Price Index for all urban |
| 276 | consumers, U.S. City Average, all items 1982-84 = 100, or |
| 277 | successor reports, for the 12-month period through June prior to |
| 278 | the beginning of the fiscal year as initially reported by the |
| 279 | United States Department of Labor, Bureau of Labor Statistics. |
| 280 | For purposes of this paragraph, the term "rolled-back rate" |
| 281 | means a millage rate that, exclusive of new construction, |
| 282 | additions to structures, deletions, increases in the value of |
| 283 | improvements that have undergone a substantial rehabilitation |
| 284 | that increased the assessed value of such improvements by at |
| 285 | least one hundred percent, and property added due to geographic |
| 286 | boundary changes, will provide the same ad valorem tax revenue |
| 287 | for each taxing authority as was levied during the immediately |
| 288 | preceding year. The rolled-back rate applicable for the year |
| 289 | tangible personal property is first exempt pursuant to Section 3 |
| 290 | of this Article or homestead property is first exempt pursuant |
| 291 | to Section (6)(h) or (i) or Section 19 of this Article shall be |
| 292 | calculated by using the ad valorem tax revenue levied during the |
| 293 | immediately preceding year reduced by the taxes levied on the |
| 294 | property being first exempt. |
| 295 | b. This paragraph does not apply to taxing authorities |
| 296 | that have levied ad valorem taxes for less than five years and |
| 297 | to millage rates required by the legislature to be levied by |
| 298 | school boards as required local effort from ad valorem taxes. |
| 299 | (2)a. For the fiscal year beginning October 1, 2009, ad |
| 300 | valorem taxes may not be levied in excess of the maximum millage |
| 301 | rate that would have resulted from the application of paragraph |
| 302 | (1) if paragraph (1) had been in effect beginning on January 1, |
| 303 | 2004, and had been applied each year up to and including the |
| 304 | fiscal year beginning October 1, 2008. |
| 305 | b. A taxing authority that begins levying taxes after |
| 306 | January 1, 2000, may not levy ad valorem taxes in excess of the |
| 307 | maximum millage rate that would have resulted from the |
| 308 | application of paragraph (1) if paragraph (1) had been in effect |
| 309 | in the fifth full fiscal year in which the authority levied ad |
| 310 | valorem taxes and had been applied up to and including the |
| 311 | fiscal year beginning October 1, 2008. |
| 312 | c. This paragraph does not apply to ad valorem taxes |
| 313 | levied by school districts and independent special districts as |
| 314 | defined by general law. By general law and subject to conditions |
| 315 | specified therein, the legislature shall exempt taxes levied by |
| 316 | hospital and health care districts, children's services |
| 317 | districts, fiscally constrained counties, municipalities located |
| 318 | in a county considered a fiscally constrained county pursuant to |
| 319 | general law, and municipalities located in a rural area of |
| 320 | critical economic concern established pursuant to general law, |
| 321 | and taxes levied by a county to provide children's services, or |
| 322 | to provide indigent care pursuant to an operating agreement with |
| 323 | a hospital or medical facility and for which annual contractual |
| 324 | obligations have been made, from the provisions of this |
| 325 | paragraph. |
| 326 | (3) Ad valorem taxes may be levied in excess of the |
| 327 | limitations provided in this subsection upon approval by a |
| 328 | unanimous vote of the full membership of the governing body |
| 329 | adopting the millage rate. |
| 330 | (4) This subsection does not apply to ad valorem taxes |
| 331 | levied for the payment of bonds issued pursuant to Section 12 of |
| 332 | this Article or levied for periods not longer than two years |
| 333 | when authorized by a vote of the electors. |
| 334 | (d) The aggregate amount of required local effort for all |
| 335 | school districts collectively to be raised from ad valorem taxes |
| 336 | each year may not exceed the aggregate amount required in the |
| 337 | immediately preceding prior year, adjusted by the percentage |
| 338 | that additions to the ad valorem tax base represent to the |
| 339 | entire ad valorem tax base and by the percentage change in the |
| 340 | Consumer Price Index for all urban consumers, U.S. City Average, |
| 341 | all items 1982-84 = 100, or successor reports, for the 12-month |
| 342 | period through June prior to the beginning of the fiscal year as |
| 343 | initially reported by the United States Department of Labor, |
| 344 | Bureau of Labor Statistics. For purposes of this subsection, the |
| 345 | term "additions to the ad valorem tax base" means new |
| 346 | construction, additions to structures, deletions, increases in |
| 347 | the value of improvements that have undergone a substantial |
| 348 | rehabilitation that increased the assessed value of such |
| 349 | improvements by at least one hundred percent, and property added |
| 350 | due to geographic boundary changes. |
| 351 | SECTION 19. Increased state sales and use tax.-- |
| 352 | (a) Beginning July 1, 2009, the tax imposed on any |
| 353 | transaction or use currently or hereafter subject to tax |
| 354 | pursuant to the provisions of chapter 212, Florida Statutes, is |
| 355 | increased by adding one percent to the tax rate imposed by |
| 356 | chapter 212, Florida Statutes. Exemptions from the tax imposed |
| 357 | pursuant to chapter 212, Florida Statutes, adopted by general |
| 358 | law, shall apply to the tax increase provided by this section. |
| 359 | (b) The proceeds of the tax increase provided by this |
| 360 | section shall be set aside for distribution to school districts |
| 361 | and shall replace the imposition of the required local effort |
| 362 | for all school districts collectively that has historically been |
| 363 | raised from ad valorem taxes each year from persons who qualify |
| 364 | for an exemption under Section 6 of this Article. |
| 365 | (c) Proceeds received by a school district shall be used, |
| 366 | prior to any other purpose, to the extent necessary for payments |
| 367 | relating to bonds or any similar financial obligations, paid |
| 368 | from or secured by ad valorem tax revenues, that are outstanding |
| 369 | on the effective date of this amendment, including any |
| 370 | subsequent refunding of such bonds or other similar financial |
| 371 | obligations. |
| 372 | ARTICLE XII |
| 373 | SCHEDULE |
| 374 | SECTION 27. Property tax relief reform; nonseverability.-- |
| 375 | (a) The amendments to Sections 3, 6, and 9 of Article VII |
| 376 | and the creation of Section 19 of Article VII and this section |
| 377 | of this constitution contained in this revision shall take |
| 378 | effect January 1, 2009. |
| 379 | (b) The amendments to Sections 3, 6, and 9 of Article VII |
| 380 | and the creation of Section 19 of Article VII of this |
| 381 | constitution contained in this revision are not severable. If |
| 382 | any portion of this revision is held invalid under any provision |
| 383 | of this constitution, the effect of such declaration shall be |
| 384 | that the amendments to Sections 3, 6, and 9 of Article VII and |
| 385 | the creation of Section 19 of Article VII of this constitution |
| 386 | contained in this revision shall be null, void, and without |
| 387 | effect. |
| 388 | BE IT FURTHER RESOLVED that the following statement be |
| 389 | placed on the ballot: |
| 390 | CONSTITUTIONAL AMENDMENT |
| 391 | ARTICLE VII, SECTIONS 3, 6, 9, 19 |
| 392 | ARTICLE XII, SECTION 27 |
| 393 | PROPERTY TAX EXEMPTIONS; DISCRETIONARY SALES SURTAXES; AD |
| 394 | VALOREM TAX MILLAGE LIMITATION; INCREASED SALES TAX.--Proposing |
| 395 | amendment of the State Constitution to provide for a $25,000 |
| 396 | exemption from ad valorem taxes for tangible personal property; |
| 397 | to clarify that ad valorem tax relief to renters may be provided |
| 398 | in the form of tax relief to the owner of the property; to |
| 399 | provide that counties may grant homestead property an exemption |
| 400 | from all ad valorem tax levies other than school district levies |
| 401 | together with the imposition of a discretionary sales surtax of |
| 402 | up to 1 percent upon approval by referendum and authorize the |
| 403 | qualified electors to petition for a referendum providing for |
| 404 | the exemption and imposing the surtax; to provide that school |
| 405 | districts may grant homestead property an exemption from all |
| 406 | school district ad valorem tax levies together with the |
| 407 | imposition of a discretionary sales surtax of up to 0.5 percent |
| 408 | upon approval by referendum and authorize the qualified electors |
| 409 | to petition for a referendum providing for the exemption and |
| 410 | imposing the surtax; to provide a methodology for limiting |
| 411 | increases in ad valorem taxes, including an override by a |
| 412 | unanimous vote of the governing body levying the millage; to |
| 413 | limit the aggregate amount of required local effort for all |
| 414 | school districts collectively; to increase the state sales and |
| 415 | use tax by 1 percent, dedicate the increased revenues to |
| 416 | replacing the required local effort for all school districts |
| 417 | collectively, and provide for distribution and application of |
| 418 | such revenues; to require that provisions of the revision are |
| 419 | not severable such that if any are held invalid, all will be |
| 420 | invalid; and to provide an effective date of January 1, 2009. |