HJR 3B

1	House Joint Resolution
2	A joint resolution proposing amendments to Sections 3, 4,
3	6, and 9 of Article VII and the creation of Section 27 of
4	Article XII of the State Constitution to authorize an
5	exemption from ad valorem taxation for tangible personal
6	property, revise the limitation in the difference between
7	the just value and the assessed value for homestead
8	property, provide for assessing rent-restricted affordable
9	housing and commercial and public-access waterfront
10	property by general law, increase the homestead exemption,
11	require the Legislature to limit county, municipality, and
12	special district authority to increase ad valorem taxes,
13	provide for transitional assessments of homestead
14	property, and provide an effective date.
15
16	Be It Resolved by the Legislature of the State of Florida:
17
18	That the following amendments to Sections 3, 4, 6, and 9 of
19	Article VII and the creation of Section 27 of Article XII of the
20	State Constitution are agreed to and shall be submitted to the
21	electors of this state for approval or rejection at the next
22	general election or at an earlier special election specifically
23	authorized by law for that purpose:
24	ARTICLE VII
25	FINANCE AND TAXATION
26	SECTION 3.  Taxes; exemptions.--
27	(a)  All property owned by a municipality and used
28	exclusively by it for municipal or public purposes shall be
29	exempt from taxation. A municipality, owning property outside
30	the municipality, may be required by general law to make payment
31	to the taxing unit in which the property is located. Such
32	portions of property as are used predominantly for educational,
33	literary, scientific, religious or charitable purposes may be
34	exempted by general law from taxation.
35	(b)  There shall be exempt from taxation, cumulatively, to
36	every head of a family residing in this state, household goods
37	and personal effects to the value fixed by general law, not less
38	than one thousand dollars, and to every widow or widower or
39	person who is blind or totally and permanently disabled,
40	property to the value fixed by general law not less than five
41	hundred dollars.
42	(c)  Any county or municipality may, for the purpose of its
43	respective tax levy and subject to the provisions of this
44	subsection and general law, grant community and economic
45	development ad valorem tax exemptions to new businesses and
46	expansions of existing businesses, as defined by general law.
47	Such an exemption may be granted only by ordinance of the county
48	or municipality, and only after the electors of the county or
49	municipality voting on such question in a referendum authorize
50	the county or municipality to adopt such ordinances. An
51	exemption so granted shall apply to improvements to real
52	property made by or for the use of a new business and
53	improvements to real property related to the expansion of an
54	existing business and shall also apply to tangible personal
55	property of such new business and tangible personal property
56	related to the expansion of an existing business. The amount or
57	limits of the amount of such exemption shall be specified by
58	general law. The period of time for which such exemption may be
59	granted to a new business or expansion of an existing business
60	shall be determined by general law. The authority to grant such
61	exemption shall expire ten years from the date of approval by
62	the electors of the county or municipality, and may be renewable
63	by referendum as provided by general law.
64	(d)  By general law and subject to conditions specified
65	therein, there may be granted an ad valorem tax exemption to a
66	renewable energy source device and to real property on which
67	such device is installed and operated, to the value fixed by
68	general law not to exceed the original cost of the device, and
69	for the period of time fixed by general law not to exceed ten
70	years.
71	(e)  Any county or municipality may, for the purpose of its
72	respective tax levy and subject to the provisions of this
73	subsection and general law, grant historic preservation ad
74	valorem tax exemptions to owners of historic properties. This
75	exemption may be granted only by ordinance of the county or
76	municipality. The amount or limits of the amount of this
77	exemption and the requirements for eligible properties must be
78	specified by general law. The period of time for which this
79	exemption may be granted to a property owner shall be determined
80	by general law.
81	(f)  By general law and subject to conditions specified
82	therein, not less than twenty-five thousand dollars of the
83	assessed value of property subject to tangible personal property
84	tax may be exempt from ad valorem taxation.
85	SECTION 4.  Taxation; assessments.--By general law
86	regulations shall be prescribed which shall secure a just
87	valuation of all property for ad valorem taxation, provided:
88	(a)  Agricultural land, land producing high water recharge
89	to Florida's aquifers, or land used exclusively for
90	noncommercial recreational purposes may be classified by general
91	law and assessed solely on the basis of character or use.
92	(b)  Pursuant to general law tangible personal property
93	held for sale as stock in trade and livestock may be valued for
94	taxation at a specified percentage of its value, may be
95	classified for tax purposes, or may be exempted from taxation.
96	(c)  All persons entitled to a homestead exemption under
97	Section 6 of this Article who are entitled to have their
98	homestead assessed under this subsection pursuant to Section 27
99	of Article XII shall have their homestead assessed at just value
100	as of January 1 of the year following the effective date of this
101	amendment. This assessment shall change only as provided herein.
102	(1)  Assessments subject to this provision shall be changed
103	annually on January 1st of each year; but those changes in
104	assessments shall not exceed the lower of the following:
105	a.  Three percent (3%) of the assessment for the prior
106	year.
107	b.  The percent change in the Consumer Price Index for all
108	urban consumers, U.S. City Average, all items 1967=100, or
109	successor reports for the preceding calendar year as initially
110	reported by the United States Department of Labor, Bureau of
111	Labor Statistics.
112	(2)  No assessment shall exceed just value.
113	(3)  After any change of ownership, as provided by general
114	law, homestead property shall be assessed at just value as of
115	January 1 of the following year. Thereafter, the homestead shall
116	be assessed as provided herein.
117	(4)  New homestead property shall be assessed at just value
118	as of January 1st of the year following the establishment of the
119	homestead. That assessment shall only change as provided herein.
120	(4)(5)  Changes, additions, reductions, or improvements to
121	homestead property shall be assessed as provided for by general
122	law; provided, however, after the adjustment for any change,
123	addition, reduction, or improvement, the property shall be
124	assessed as provided herein.
125	(5)(6)  In the event of a termination of homestead status,
126	the property shall be assessed at just value as of January 1 of
127	the following year as provided by general law.
128	(6)(7)  The provisions of this amendment are severable. If
129	any of the provisions of this amendment shall be held
130	unconstitutional by any court of competent jurisdiction, the
131	decision of such court shall not affect or impair any remaining
132	provisions of this amendment.
133	(d)  The legislature may, by general law, for assessment
134	purposes and subject to the provisions of this subsection, allow
135	counties and municipalities to authorize by ordinance that
136	historic property may be assessed solely on the basis of
137	character or use. Such character or use assessment shall apply
138	only to the jurisdiction adopting the ordinance. The
139	requirements for eligible properties must be specified by
140	general law.
141	(e)  A county may, in the manner prescribed by general law,
142	provide for a reduction in the assessed value of homestead
143	property to the extent of any increase in the assessed value of
144	that property which results from the construction or
145	reconstruction of the property for the purpose of providing
146	living quarters for one or more natural or adoptive grandparents
147	or parents of the owner of the property or of the owner's spouse
148	if at least one of the grandparents or parents for whom the
149	living quarters are provided is 62 years of age or older. Such a
150	reduction may not exceed the lesser of the following:
151	(1)  The increase in assessed value resulting from
152	construction or reconstruction of the property.
153	(2)  Twenty percent of the total assessed value of the
154	property as improved.
155	(f)  As defined by general law, real property that is used
156	to provide affordable housing and is subject to rent
157	restrictions imposed by a governmental agency may be assessed as
158	provided by general law, subject to conditions or limitations
159	specified therein.
160	(g)  As defined by general law, land that is used
161	exclusively for commercial fishing purposes or that is open to
162	the public and used predominantly for commercial water-dependent
163	activities or for public access to waters that are navigable may
164	be assessed as provided by general law, subject to conditions or
165	limitations specified therein. For purposes of this paragraph,
166	the term "water-dependent activity" means any activity that can
167	be conducted only on, in, over, or adjacent to waters that are
168	navigable and that requires direct access to water and involves
169	the use of water as an integral part of such activity.
170	SECTION 6.  Homestead exemptions.--
171	(a)  Every person who has the legal or equitable title to
172	real estate and maintains thereon the permanent residence of the
173	owner, or another legally or naturally dependent upon the owner,
174	shall be exempt from taxation thereon, except assessments for
175	special benefits, on seventy-five percent of up to the just
176	assessed valuation of such property up to two hundred of five
177	thousand dollars and on fifteen percent of the just valuation of
178	such property above two hundred thousand dollars up to five
179	hundred thousand dollars, upon establishment of right thereto in
180	the manner prescribed by law. The five hundred thousand dollar
181	threshold shall be adjusted each year by the percentage change
182	in per capita personal income, as defined by general law, for
183	the previous year, and may be increased by general law enacted
184	by an affirmative vote of at least two-thirds of the membership
185	of each house of the legislature. The exemption shall not be
186	less than fifty thousand dollars but, for low-income seniors who
187	meet the eligibility criteria under subsection (d), the
188	exemption shall not be less than one hundred thousand dollars.
189	The real estate may be held by legal or equitable title, by the
190	entireties, jointly, in common, as a condominium, or indirectly
191	by stock ownership or membership representing the owner's or
192	member's proprietary interest in a corporation owning a fee or a
193	leasehold initially in excess of ninety-eight years. The
194	exemption shall not apply with respect to any assessment roll
195	until such roll is first determined to be in compliance with the
196	provisions of section 4 by a state agency designated by general
197	law. This exemption is repealed on the effective date of any
198	amendment to this Article which provides for the assessment of
199	homestead property at less than just value.
200	(b)  Not more than one exemption shall be allowed any
201	individual or family unit or with respect to any residential
202	unit. No exemption shall exceed the value of the real estate
203	assessable to the owner or, in case of ownership through stock
204	or membership in a corporation, the value of the proportion
205	which the interest in the corporation bears to the assessed
206	value of the property.
207	(c)  By general law and subject to conditions specified
208	therein, the exemption shall be increased to a total of twenty-
209	five thousand dollars of the assessed value of the real estate
210	for each school district levy. By general law and subject to
211	conditions specified therein, the exemption for all other levies
212	may be increased up to an amount not exceeding ten thousand
213	dollars of the assessed value of the real estate if the owner
214	has attained age sixty-five or is totally and permanently
215	disabled and if the owner is not entitled to the exemption
216	provided in subsection (d).
217	(d)  By general law and subject to conditions specified
218	therein, the exemption shall be increased to a total of the
219	following amounts of assessed value of real estate for each levy
220	other than those of school districts: fifteen thousand dollars
221	with respect to 1980 assessments; twenty thousand dollars with
222	respect to 1981 assessments; twenty-five thousand dollars with
223	respect to assessments for 1982 and each year thereafter.
224	However, such increase shall not apply with respect to any
225	assessment roll until such roll is first determined to be in
226	compliance with the provisions of section 4 by a state agency
227	designated by general law. This subsection shall stand repealed
228	on the effective date of any amendment to section 4 which
229	provides for the assessment of homestead property at a specified
230	percentage of its just value.
231	(c)(e)  By general law and subject to conditions specified
232	therein, the Legislature may provide to renters, who are
233	permanent residents, ad valorem tax relief on all ad valorem tax
234	levies. Such ad valorem tax relief shall be in the form and
235	amount established by general law.
236	(d)(f)  The legislature may, by general law, allow counties
237	or municipalities, for the purpose of their respective tax
238	levies and subject to the provisions of general law, to grant an
239	additional homestead tax exemption not exceeding fifty thousand
240	dollars to any person who has the legal or equitable title to
241	real estate and maintains thereon the permanent residence of the
242	owner and who has attained age sixty-five and whose household
243	income, as defined by general law, does not exceed twenty
244	thousand dollars. The general law must allow counties and
245	municipalities to grant this additional exemption, within the
246	limits prescribed in this subsection, by ordinance adopted in
247	the manner prescribed by general law, and must provide for the
248	periodic adjustment of the income limitation prescribed in this
249	subsection for changes in the cost of living.
250	(e)(g)  Each veteran who is age 65 or older who is
251	partially or totally permanently disabled shall receive a
252	discount from the amount of the ad valorem tax otherwise owed on
253	homestead property the veteran owns and resides in if the
254	disability was combat related, the veteran was a resident of
255	this state at the time of entering the military service of the
256	United States, and the veteran was honorably discharged upon
257	separation from military service. The discount shall be in a
258	percentage equal to the percentage of the veteran's permanent,
259	service-connected disability as determined by the United States
260	Department of Veterans Affairs. To qualify for the discount
261	granted by this subsection, an applicant must submit to the
262	county property appraiser, by March 1, proof of residency at the
263	time of entering military service, an official letter from the
264	United States Department of Veterans Affairs stating the
265	percentage of the veteran's service-connected disability and
266	such evidence that reasonably identifies the disability as
267	combat related, and a copy of the veteran's honorable discharge.
268	If the property appraiser denies the request for a discount, the
269	appraiser must notify the applicant in writing of the reasons
270	for the denial, and the veteran may reapply. The Legislature
271	may, by general law, waive the annual application requirement in
272	subsequent years. This subsection shall take effect December 7,
273	2006, is self-executing, and does not require implementing
274	legislation.
275	SECTION 9.  Local taxes.--
276	(a)  Counties, school districts, and municipalities shall,
277	and special districts may, be authorized by law to levy ad
278	valorem taxes and may be authorized by general law to levy other
279	taxes, for their respective purposes, except ad valorem taxes on
280	intangible personal property and taxes prohibited by this
281	constitution.
282	(b)  Ad valorem taxes, exclusive of taxes levied for the
283	payment of bonds and taxes levied for periods not longer than
284	two years when authorized by vote of the electors who are the
285	owners of freeholds therein not wholly exempt from taxation,
286	shall not be levied in excess of the following millages upon the
287	assessed value of real estate and tangible personal property:
288	for all county purposes, ten mills; for all municipal purposes,
289	ten mills; for all school purposes, ten mills; for water
290	management purposes for the northwest portion of the state lying
291	west of the line between ranges two and three east, 0.05 mill;
292	for water management purposes for the remaining portions of the
293	state, 1.0 mill; and for all other special districts a millage
294	authorized by law approved by vote of the electors who are
295	owners of freeholds therein not wholly exempt from taxation. A
296	county furnishing municipal services may, to the extent
297	authorized by law, levy additional taxes within the limits fixed
298	for municipal purposes.
299	(c)  By general law, the legislature shall limit the
300	authority of counties, municipalities, and special districts to
301	increase ad valorem taxes.
302	ARTICLE XII
303	SCHEDULE
304	SECTION 27.  Transitional assessments of homestead
305	property; effective date.--
306	(a)  Each person entitled to a homestead exemption under
307	Section 6 of Article VII on January 1, 2008, shall continue to
308	have the person's current homestead assessed under Section 4(c)
309	of Article VII so long as, on January 1 of each year, the sum of
310	the exemption the person would have received under Section 6(a)-
311	(d) of Article VII, as it existed on December 31, 2007, plus the
312	difference between the homestead's just value and its assessed
313	value determined pursuant to Section 4(c) of Article VII is
314	greater than the exemption provided by Section 6(a) of Article
315	VII. After the exemption provided in Section 6(a) of Article VII
316	exceeds such sum in any year, the homestead may not be assessed
317	under Section 4(c) of Article VII.
318	(b)  The exemption provided in Section 6(a) of Article VII
319	to each person entitled to have the person's homestead assessed
320	under Section 4(c) of Article VII pursuant to subsection (a)
321	shall be limited to the exemption the person would have been
322	entitled to under Section 6(a)-(d) of Article VII as it existed
323	on December 31, 2007.
324	(c)  The amendments to Sections 3, 4, 6, and 9 of Article
325	VII, providing an exemption from ad valorem taxation for
326	tangible personal property, revising provisions limiting an
327	increase in the assessed value of homestead property, providing
328	for assessing rent-restricted affordable housing and commercial
329	and public-access waterfront property pursuant to general law,
330	increasing the homestead exemption by providing a schedule for
331	determining the exemption based on a percentage of the
332	property's just value, and requiring the legislature to limit
333	the authority of counties, municipalities, and special districts
334	to increase ad valorem taxes, and this section, providing for
335	transitional assessments of homestead property, shall take
336	effect upon approval by the electors and shall operate
337	retroactively to January 1, 2008.
338	BE IT FURTHER RESOLVED that the following statement be
339	placed on the ballot:
340	CONSTITUTIONAL AMENDMENT
341	ARTICLE VII, SECTIONS 3, 4, 6, AND 9;
342	ARTICLE XII, SECTION 27
343	AD VALOREM PROPERTY TAXATION: ASSESSMENTS, EXEMPTIONS,
344	LIMITATIONS, AND HOMESTEADS.--Proposing amendments to the State
345	Constitution to increase the homestead exemption from $25,000 to
346	75 percent of the just value of the property up to $200,000 and
347	15 percent of the just value of the property above $200,000 up
348	to $500,000, to subject the $500,000 threshold to annual
349	adjustments based on the percentage change in per capita
350	personal income, to authorize an increase in the $500,000
351	threshold amount by a two-thirds vote of the Legislature, and to
352	specify minimum homestead exemption amounts of $50,000 for
353	everyone except low-income seniors and $100,000 for low-income
354	seniors; to provide for transitional assessments of homestead
355	property under the increased homestead exemption that include
356	preserving application of Save-Our-Homes provisions when those
357	provisions provide a benefit that is greater than the increased
358	homestead exemption; to revise Save-Our-Homes provisions to
359	conform to provisions providing for the increased homestead
360	exemption and transitional assessments of homestead property; to
361	require the Legislature to limit the authority of counties,
362	municipalities, and special districts to increase ad valorem
363	taxes; to authorize an exemption from ad valorem taxes of no
364	less than $25,000 of assessed value of tangible personal
365	property; to provide for assessing rent-restricted affordable
366	housing property and waterfront property used for commercial
367	fishing, commercial water-dependent activities, and public
368	access at less than just value; and to schedule the amendments
369	to take effect upon approval by the voters and operate
370	retroactively to January 1, 2008.

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