HJR 7089

1
House Joint Resolution
2A joint resolution proposing amendments to Sections 3, 6,
3and 9 of Article VII and the creation of Section 19 of
4Article VII and Section 27 of Article XII of the State
5Constitution to provide for an ad valorem tax exemption
6for tangible personal property, clarify that ad valorem
7tax relief to renters may be provided in the form of tax
8relief to the owner of the property, authorize counties
9and school districts to grant a homestead property
10exemption and impose a discretionary sales surtax upon
11approval by referendum, authorize qualified electors to
12petition for a grant of the homestead exemption and
13imposition of the surtax, provide a methodology for
14limiting increases in ad valorem taxes, increase the state
15sales and use tax to replace school district revenues lost
16from not imposing a required local effort on homestead
17property, and provide applicability, nonseverability, and
18an effective date.
19
20Be It Resolved by the Legislature of the State of Florida:
21
22     That the following amendments to Sections 3, 6, and 9 of
23Article VII and the creation of Section 19 of Article VII and
24Section 27 of Article XII of the State Constitution are agreed
25to and shall be submitted to the electors of this state for
26approval or rejection at the next general election or at an
27earlier special election specifically authorized by law for that
28purpose:
29
ARTICLE VII
30
FINANCE AND TAXATION
31     SECTION 3.  Taxes; exemptions.--
32     (a)  All property owned by a municipality and used
33exclusively by it for municipal or public purposes shall be
34exempt from taxation. A municipality, owning property outside
35the municipality, may be required by general law to make payment
36to the taxing unit in which the property is located. Such
37portions of property as are used predominantly for educational,
38literary, scientific, religious or charitable purposes may be
39exempted by general law from taxation.
40     (b)  There shall be exempt from taxation, cumulatively, to
41every head of a family residing in this state, household goods
42and personal effects to the value fixed by general law, not less
43than one thousand dollars, and to every widow or widower or
44person who is blind or totally and permanently disabled,
45property to the value fixed by general law not less than five
46hundred dollars.
47     (c)  Any county or municipality may, for the purpose of its
48respective tax levy and subject to the provisions of this
49subsection and general law, grant community and economic
50development ad valorem tax exemptions to new businesses and
51expansions of existing businesses, as defined by general law.
52Such an exemption may be granted only by ordinance of the county
53or municipality, and only after the electors of the county or
54municipality voting on such question in a referendum authorize
55the county or municipality to adopt such ordinances. An
56exemption so granted shall apply to improvements to real
57property made by or for the use of a new business and
58improvements to real property related to the expansion of an
59existing business and shall also apply to tangible personal
60property of such new business and tangible personal property
61related to the expansion of an existing business. The amount or
62limits of the amount of such exemption shall be specified by
63general law. The period of time for which such exemption may be
64granted to a new business or expansion of an existing business
65shall be determined by general law. The authority to grant such
66exemption shall expire ten years from the date of approval by
67the electors of the county or municipality, and may be renewable
68by referendum as provided by general law.
69     (d)  By general law and subject to conditions specified
70therein, there may be granted an ad valorem tax exemption to a
71renewable energy source device and to real property on which
72such device is installed and operated, to the value fixed by
73general law not to exceed the original cost of the device, and
74for the period of time fixed by general law not to exceed ten
75years.
76     (e)  Any county or municipality may, for the purpose of its
77respective tax levy and subject to the provisions of this
78subsection and general law, grant historic preservation ad
79valorem tax exemptions to owners of historic properties. This
80exemption may be granted only by ordinance of the county or
81municipality. The amount or limits of the amount of this
82exemption and the requirements for eligible properties must be
83specified by general law. The period of time for which this
84exemption may be granted to a property owner shall be determined
85by general law.
86     (f)  By general law and subject to conditions specified
87therein, tangible personal property up to a value of twenty-five
88thousand dollars shall be exempt from taxation.
89     SECTION 6.  Homestead exemptions.--
90     (a)  Every person who has the legal or equitable title to
91real estate and maintains thereon the permanent residence of the
92owner, or another legally or naturally dependent upon the owner,
93shall be exempt from taxation thereon, except assessments for
94special benefits, up to the assessed valuation of five thousand
95dollars, upon establishment of right thereto in the manner
96prescribed by law. The real estate may be held by legal or
97equitable title, by the entireties, jointly, in common, as a
98condominium, or indirectly by stock ownership or membership
99representing the owner's or member's proprietary interest in a
100corporation owning a fee or a leasehold initially in excess of
101ninety-eight years.
102     (b)  Not more than one exemption shall be allowed any
103individual or family unit or with respect to any residential
104unit. No exemption shall exceed the value of the real estate
105assessable to the owner or, in case of ownership through stock
106or membership in a corporation, the value of the proportion
107which the interest in the corporation bears to the assessed
108value of the property.
109     (c)  By general law and subject to conditions specified
110therein, the exemption shall be increased to a total of twenty-
111five thousand dollars of the assessed value of the real estate
112for each school district levy. By general law and subject to
113conditions specified therein, the exemption for all other levies
114may be increased up to an amount not exceeding ten thousand
115dollars of the assessed value of the real estate if the owner
116has attained age sixty-five or is totally and permanently
117disabled and if the owner is not entitled to the exemption
118provided in subsection (d).
119     (d)  By general law and subject to conditions specified
120therein, the exemption shall be increased to a total of the
121following amounts of assessed value of real estate for each levy
122other than those of school districts: fifteen thousand dollars
123with respect to 1980 assessments; twenty thousand dollars with
124respect to 1981 assessments; twenty-five thousand dollars with
125respect to assessments for 1982 and each year thereafter.
126However, such increase shall not apply with respect to any
127assessment roll until such roll is first determined to be in
128compliance with the provisions of section 4 by a state agency
129designated by general law. This subsection shall stand repealed
130on the effective date of any amendment to section 4 which
131provides for the assessment of homestead property at a specified
132percentage of its just value.
133     (e)  By general law and subject to conditions specified
134therein, the Legislature may provide to renters, who are
135permanent residents, ad valorem tax relief on all ad valorem tax
136levies. Such ad valorem tax relief shall be in the form and
137amount established by general law and may be provided in the
138form of tax relief to the owner of the property.
139     (f)  The legislature may, by general law, allow counties or
140municipalities, for the purpose of their respective tax levies
141and subject to the provisions of general law, to grant an
142additional homestead tax exemption not exceeding fifty thousand
143dollars to any person who has the legal or equitable title to
144real estate and maintains thereon the permanent residence of the
145owner and who has attained age sixty-five and whose household
146income, as defined by general law, does not exceed twenty
147thousand dollars. The general law must allow counties and
148municipalities to grant this additional exemption, within the
149limits prescribed in this subsection, by ordinance adopted in
150the manner prescribed by general law, and must provide for the
151periodic adjustment of the income limitation prescribed in this
152subsection for changes in the cost of living.
153     (g)  Each veteran who is age 65 or older who is partially
154or totally permanently disabled shall receive a discount from
155the amount of the ad valorem tax otherwise owed on homestead
156property the veteran owns and resides in if the disability was
157combat related, the veteran was a resident of this state at the
158time of entering the military service of the United States, and
159the veteran was honorably discharged upon separation from
160military service. The discount shall be in a percentage equal to
161the percentage of the veteran's permanent, service-connected
162disability as determined by the United States Department of
163Veterans Affairs. To qualify for the discount granted by this
164subsection, an applicant must submit to the county property
165appraiser, by March 1, proof of residency at the time of
166entering military service, an official letter from the United
167States Department of Veterans Affairs stating the percentage of
168the veteran's service-connected disability and such evidence
169that reasonably identifies the disability as combat related, and
170a copy of the veteran's honorable discharge. If the property
171appraiser denies the request for a discount, the appraiser must
172notify the applicant in writing of the reasons for the denial,
173and the veteran may reapply. The Legislature may, by general
174law, waive the annual application requirement in subsequent
175years. This subsection shall take effect December 7, 2006, is
176self-executing, and does not require implementing legislation.
177     (h)  A county may provide to every person who qualifies for
178an exemption under this section an exemption from all ad valorem
179tax levies imposed by all taxing authorities within the county
180other than school districts and, at the same time, levy a
181discretionary sales surtax of up to one percent on any
182transaction or use currently or hereafter subject to tax
183pursuant to the provisions of chapter 212, Florida Statutes.
184Exemptions from the tax imposed pursuant to chapter 212, Florida
185Statutes, adopted by general law, shall apply to the surtax. The
186sales surtax rate levied may not be expected to produce revenues
187in the first full year it is in effect that exceed the revenues
188expected to be produced from the ad valorem tax being replaced.
189The exemption and the imposition of the surtax shall be by
190ordinance and shall not take effect unless the ordinance is
191approved by a majority of the electors of the county voting in a
192referendum. Upon submission of a petition to the county
193commission signed by at least fifteen percent of the qualified
194electors of the county requesting that a referendum be held on
195an ordinance providing for the exemption and imposition of the
196surtax as provided in this subsection, the county commission
197shall adopt such an ordinance and schedule such referendum
198within 90 days. Proceeds from the surtax shall be distributed to
199the taxing authorities within the county, other than the school
200district, based upon a formula developed by the county. Proceeds
201from the surtax received by a county, municipality, or special
202district shall be used, prior to any other purpose, to the
203extent necessary for payments relating to bonds or any similar
204financial obligations, paid from or secured by ad valorem tax
205revenues, that are outstanding on the effective date of this
206amendment, including any subsequent refunding of such bonds or
207other similar financial obligations. If a referendum has not
208been held pursuant to this subsection before October 31, 2010, a
209referendum shall be held in November of 2010. After an ordinance
210adopted under this subsection has been approved by referendum,
211the exemption granted and surtax imposed shall be permanent and
212may not be repealed or rescinded.
213     (i)  A school district may provide to every person who
214qualifies for an exemption under this section an exemption from
215all ad valorem tax levies imposed by the school district and, at
216the same time, levy a discretionary sales surtax of up to one-
217half of one percent on any transaction or use currently or
218hereafter subject to tax pursuant to the provisions of chapter
219212, Florida Statutes. The sales surtax rate levied may not be
220expected to produce revenues in the first full year it is in
221effect that exceed the revenues expected to be produced from the
222ad valorem tax being replaced. Exemptions from the tax imposed
223pursuant to chapter 212, Florida Statutes, adopted by general
224law, shall apply to the surtax. The exemption and the imposition
225of the surtax shall be by resolution adopted by the district
226school board and shall not take effect unless the resolution is
227approved by a majority of the electors of the school district
228voting in a referendum. Upon submission of a petition to the
229district school board signed by at least fifteen percent of the
230qualified electors of the school district requesting that a
231referendum be held on a resolution providing for the exemption
232and imposition of the surtax as provided in this subsection, the
233district school board shall adopt such a resolution and schedule
234such referendum within 90 days. Proceeds from the surtax shall
235be distributed to the school district. Proceeds from the surtax
236received by the school district shall be used, prior to any
237other purpose, to the extent necessary for payments relating to
238bonds or any similar financial obligations, paid from or secured
239by ad valorem tax revenues, that are outstanding on the
240effective date of this amendment, including any subsequent
241refunding of such bonds or other similar financial obligations.
242If a referendum has not been held pursuant to this subsection
243before October 31, 2010, a referendum shall be held in November
244of 2010. After an ordinance adopted under this subsection has
245been approved by referendum, the exemption granted and surtax
246imposed shall be permanent and may not be repealed or rescinded.
247     SECTION 9.  Local taxes.--
248     (a)  Counties, school districts, and municipalities shall,
249and special districts may, be authorized by law to levy ad
250valorem taxes and may be authorized by general law to levy other
251taxes, for their respective purposes, except ad valorem taxes on
252intangible personal property and taxes prohibited by this
253constitution.
254     (b)  Ad valorem taxes, exclusive of taxes levied for the
255payment of bonds and taxes levied for periods not longer than
256two years when authorized by vote of the electors who are the
257owners of freeholds therein not wholly exempt from taxation,
258shall not be levied in excess of the following millages upon the
259assessed value of real estate and tangible personal property:
260for all county purposes, ten mills; for all municipal purposes,
261ten mills; for all school purposes, ten mills; for water
262management purposes for the northwest portion of the state lying
263west of the line between ranges two and three east, 0.05 mill;
264for water management purposes for the remaining portions of the
265state, 1.0 mill; and for all other special districts a millage
266authorized by law approved by vote of the electors who are
267owners of freeholds therein not wholly exempt from taxation. A
268county furnishing municipal services may, to the extent
269authorized by law, levy additional taxes within the limits fixed
270for 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
274millage rate equal to the rolled-back rate adjusted by the
275percentage change in the Consumer Price Index for all urban
276consumers, U.S. City Average, all items 1982-84 = 100, or
277successor reports, for the 12-month period through June prior to
278the beginning of the fiscal year as initially reported by the
279United States Department of Labor, Bureau of Labor Statistics.
280For purposes of this paragraph, the term "rolled-back rate"
281means a millage rate that, exclusive of new construction,
282additions to structures, deletions, increases in the value of
283improvements that have undergone a substantial rehabilitation
284that increased the assessed value of such improvements by at
285least one hundred percent, and property added due to geographic
286boundary changes, will provide the same ad valorem tax revenue
287for each taxing authority as was levied during the immediately
288preceding year. The rolled-back rate applicable for the year
289tangible personal property is first exempt pursuant to Section 3
290of this Article or homestead property is first exempt pursuant
291to Section (6)(h) or (i) or Section 19 of this Article shall be
292calculated by using the ad valorem tax revenue levied during the
293immediately preceding year reduced by the taxes levied on the
294property being first exempt.
295     b.  This paragraph does not apply to taxing authorities
296that have levied ad valorem taxes for less than five years and
297to millage rates required by the legislature to be levied by
298school boards as required local effort from ad valorem taxes.
299     (2)a.  For the fiscal year beginning October 1, 2009, ad
300valorem taxes may not be levied in excess of the maximum millage
301rate that would have resulted from the application of paragraph
302(1) if paragraph (1) had been in effect beginning on January 1,
3032004, and had been applied each year up to and including the
304fiscal year beginning October 1, 2008.
305     b.  A taxing authority that begins levying taxes after
306January 1, 2000, may not levy ad valorem taxes in excess of the
307maximum millage rate that would have resulted from the
308application of paragraph (1) if paragraph (1) had been in effect
309in the fifth full fiscal year in which the authority levied ad
310valorem taxes and had been applied up to and including the
311fiscal year beginning October 1, 2008.
312     c.  This paragraph does not apply to ad valorem taxes
313levied by school districts and independent special districts as
314defined by general law. By general law and subject to conditions
315specified therein, the legislature shall exempt taxes levied by
316hospital and health care districts, children's services
317districts, fiscally constrained counties, municipalities located
318in a county considered a fiscally constrained county pursuant to
319general law, and municipalities located in a rural area of
320critical economic concern established pursuant to general law,
321and taxes levied by a county to provide children's services, or
322to provide indigent care pursuant to an operating agreement with
323a hospital or medical facility and for which annual contractual
324obligations have been made, from the provisions of this
325paragraph.
326     (3)  Ad valorem taxes may be levied in excess of the
327limitations provided in this subsection upon approval by a
328unanimous vote of the full membership of the governing body
329adopting the millage rate.
330     (4)  This subsection does not apply to ad valorem taxes
331levied for the payment of bonds issued pursuant to Section 12 of
332this Article or levied for periods not longer than two years
333when authorized by a vote of the electors.
334     (d)  The aggregate amount of required local effort for all
335school districts collectively to be raised from ad valorem taxes
336each year may not exceed the aggregate amount required in the
337immediately preceding prior year, adjusted by the percentage
338that additions to the ad valorem tax base represent to the
339entire ad valorem tax base and by the percentage change in the
340Consumer Price Index for all urban consumers, U.S. City Average,
341all items 1982-84 = 100, or successor reports, for the 12-month
342period through June prior to the beginning of the fiscal year as
343initially reported by the United States Department of Labor,
344Bureau of Labor Statistics. For purposes of this subsection, the
345term "additions to the ad valorem tax base" means new
346construction, additions to structures, deletions, increases in
347the value of improvements that have undergone a substantial
348rehabilitation that increased the assessed value of such
349improvements by at least one hundred percent, and property added
350due to geographic boundary changes.
351     SECTION 19.  Increased state sales and use tax.--
352     (a)  Beginning July 1, 2009, the tax imposed on any
353transaction or use currently or hereafter subject to tax
354pursuant to the provisions of chapter 212, Florida Statutes, is
355increased by adding one percent to the tax rate imposed by
356chapter 212, Florida Statutes. Exemptions from the tax imposed
357pursuant to chapter 212, Florida Statutes, adopted by general
358law, shall apply to the tax increase provided by this section.
359     (b)  The proceeds of the tax increase provided by this
360section shall be set aside for distribution to school districts
361and shall replace the imposition of the required local effort
362for all school districts collectively that has historically been
363raised from ad valorem taxes each year from persons who qualify
364for an exemption under Section 6 of this Article.
365     (c)  Proceeds received by a school district shall be used,
366prior to any other purpose, to the extent necessary for payments
367relating to bonds or any similar financial obligations, paid
368from or secured by ad valorem tax revenues, that are outstanding
369on the effective date of this amendment, including any
370subsequent refunding of such bonds or other similar financial
371obligations.
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
376and the creation of Section 19 of Article VII and this section
377of this constitution contained in this revision shall take
378effect January 1, 2009.
379     (b)  The amendments to Sections 3, 6, and 9 of Article VII
380and the creation of Section 19 of Article VII of this
381constitution contained in this revision are not severable. If
382any portion of this revision is held invalid under any provision
383of this constitution, the effect of such declaration shall be
384that the amendments to Sections 3, 6, and 9 of Article VII and
385the creation of Section 19 of Article VII of this constitution
386contained in this revision shall be null, void, and without
387effect.
388     BE IT FURTHER RESOLVED that the following statement be
389placed 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
394VALOREM TAX MILLAGE LIMITATION; INCREASED SALES TAX.--Proposing
395amendment of the State Constitution to provide for a $25,000
396exemption from ad valorem taxes for tangible personal property;
397to clarify that ad valorem tax relief to renters may be provided
398in the form of tax relief to the owner of the property; to
399provide that counties may grant homestead property an exemption
400from all ad valorem tax levies other than school district levies
401together with the imposition of a discretionary sales surtax of
402up to 1 percent upon approval by referendum and authorize the
403qualified electors to petition for a referendum providing for
404the exemption and imposing the surtax; to provide that school
405districts may grant homestead property an exemption from all
406school district ad valorem tax levies together with the
407imposition of a discretionary sales surtax of up to 0.5 percent
408upon approval by referendum and authorize the qualified electors
409to petition for a referendum providing for the exemption and
410imposing the surtax; to provide a methodology for limiting
411increases in ad valorem taxes, including an override by a
412unanimous vote of the governing body levying the millage; to
413limit the aggregate amount of required local effort for all
414school districts collectively; to increase the state sales and
415use tax by 1 percent, dedicate the increased revenues to
416replacing the required local effort for all school districts
417collectively, and provide for distribution and application of
418such revenues; to require that provisions of the revision are
419not severable such that if any are held invalid, all will be
420invalid; and to provide an effective date of January 1, 2009.


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