HJR 3B

1
House Joint Resolution
2A joint resolution proposing amendments to Sections 3, 4,
36, and 9 of Article VII and the creation of Section 27 of
4Article XII of the State Constitution to authorize an
5exemption from ad valorem taxation for tangible personal
6property, revise the limitation in the difference between
7the just value and the assessed value for homestead
8property, provide for assessing rent-restricted affordable
9housing and commercial and public-access waterfront
10property by general law, increase the homestead exemption,
11require the Legislature to limit county, municipality, and
12special district authority to increase ad valorem taxes,
13provide for transitional assessments of homestead
14property, and provide an effective date.
15
16Be It Resolved by the Legislature of the State of Florida:
17
18     That the following amendments to Sections 3, 4, 6, and 9 of
19Article VII and the creation of Section 27 of Article XII of the
20State Constitution are agreed to and shall be submitted to the
21electors of this state for approval or rejection at the next
22general election or at an earlier special election specifically
23authorized 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
28exclusively by it for municipal or public purposes shall be
29exempt from taxation. A municipality, owning property outside
30the municipality, may be required by general law to make payment
31to the taxing unit in which the property is located. Such
32portions of property as are used predominantly for educational,
33literary, scientific, religious or charitable purposes may be
34exempted by general law from taxation.
35     (b)  There shall be exempt from taxation, cumulatively, to
36every head of a family residing in this state, household goods
37and personal effects to the value fixed by general law, not less
38than one thousand dollars, and to every widow or widower or
39person who is blind or totally and permanently disabled,
40property to the value fixed by general law not less than five
41hundred dollars.
42     (c)  Any county or municipality may, for the purpose of its
43respective tax levy and subject to the provisions of this
44subsection and general law, grant community and economic
45development ad valorem tax exemptions to new businesses and
46expansions of existing businesses, as defined by general law.
47Such an exemption may be granted only by ordinance of the county
48or municipality, and only after the electors of the county or
49municipality voting on such question in a referendum authorize
50the county or municipality to adopt such ordinances. An
51exemption so granted shall apply to improvements to real
52property made by or for the use of a new business and
53improvements to real property related to the expansion of an
54existing business and shall also apply to tangible personal
55property of such new business and tangible personal property
56related to the expansion of an existing business. The amount or
57limits of the amount of such exemption shall be specified by
58general law. The period of time for which such exemption may be
59granted to a new business or expansion of an existing business
60shall be determined by general law. The authority to grant such
61exemption shall expire ten years from the date of approval by
62the electors of the county or municipality, and may be renewable
63by referendum as provided by general law.
64     (d)  By general law and subject to conditions specified
65therein, there may be granted an ad valorem tax exemption to a
66renewable energy source device and to real property on which
67such device is installed and operated, to the value fixed by
68general law not to exceed the original cost of the device, and
69for the period of time fixed by general law not to exceed ten
70years.
71     (e)  Any county or municipality may, for the purpose of its
72respective tax levy and subject to the provisions of this
73subsection and general law, grant historic preservation ad
74valorem tax exemptions to owners of historic properties. This
75exemption may be granted only by ordinance of the county or
76municipality. The amount or limits of the amount of this
77exemption and the requirements for eligible properties must be
78specified by general law. The period of time for which this
79exemption may be granted to a property owner shall be determined
80by general law.
81     (f)  By general law and subject to conditions specified
82therein, not less than twenty-five thousand dollars of the
83assessed value of property subject to tangible personal property
84tax may be exempt from ad valorem taxation.
85     SECTION 4.  Taxation; assessments.--By general law
86regulations shall be prescribed which shall secure a just
87valuation of all property for ad valorem taxation, provided:
88     (a)  Agricultural land, land producing high water recharge
89to Florida's aquifers, or land used exclusively for
90noncommercial recreational purposes may be classified by general
91law and assessed solely on the basis of character or use.
92     (b)  Pursuant to general law tangible personal property
93held for sale as stock in trade and livestock may be valued for
94taxation at a specified percentage of its value, may be
95classified for tax purposes, or may be exempted from taxation.
96     (c)  All persons entitled to a homestead exemption under
97Section 6 of this Article who are entitled to have their
98homestead assessed under this subsection pursuant to Section 27
99of Article XII shall have their homestead assessed at just value
100as of January 1 of the year following the effective date of this
101amendment. This assessment shall change only as provided herein.
102     (1)  Assessments subject to this provision shall be changed
103annually on January 1st of each year; but those changes in
104assessments shall not exceed the lower of the following:
105     a.  Three percent (3%) of the assessment for the prior
106year.
107     b.  The percent change in the Consumer Price Index for all
108urban consumers, U.S. City Average, all items 1967=100, or
109successor reports for the preceding calendar year as initially
110reported by the United States Department of Labor, Bureau of
111Labor Statistics.
112     (2)  No assessment shall exceed just value.
113     (3)  After any change of ownership, as provided by general
114law, homestead property shall be assessed at just value as of
115January 1 of the following year. Thereafter, the homestead shall
116be assessed as provided herein.
117     (4)  New homestead property shall be assessed at just value
118as of January 1st of the year following the establishment of the
119homestead. That assessment shall only change as provided herein.
120     (4)(5)  Changes, additions, reductions, or improvements to
121homestead property shall be assessed as provided for by general
122law; provided, however, after the adjustment for any change,
123addition, reduction, or improvement, the property shall be
124assessed as provided herein.
125     (5)(6)  In the event of a termination of homestead status,
126the property shall be assessed at just value as of January 1 of
127the following year as provided by general law.
128     (6)(7)  The provisions of this amendment are severable. If
129any of the provisions of this amendment shall be held
130unconstitutional by any court of competent jurisdiction, the
131decision of such court shall not affect or impair any remaining
132provisions of this amendment.
133     (d)  The legislature may, by general law, for assessment
134purposes and subject to the provisions of this subsection, allow
135counties and municipalities to authorize by ordinance that
136historic property may be assessed solely on the basis of
137character or use. Such character or use assessment shall apply
138only to the jurisdiction adopting the ordinance. The
139requirements for eligible properties must be specified by
140general law.
141     (e)  A county may, in the manner prescribed by general law,
142provide for a reduction in the assessed value of homestead
143property to the extent of any increase in the assessed value of
144that property which results from the construction or
145reconstruction of the property for the purpose of providing
146living quarters for one or more natural or adoptive grandparents
147or parents of the owner of the property or of the owner's spouse
148if at least one of the grandparents or parents for whom the
149living quarters are provided is 62 years of age or older. Such a
150reduction may not exceed the lesser of the following:
151     (1)  The increase in assessed value resulting from
152construction or reconstruction of the property.
153     (2)  Twenty percent of the total assessed value of the
154property as improved.
155     (f)  As defined by general law, real property that is used
156to provide affordable housing and is subject to rent
157restrictions imposed by a governmental agency may be assessed as
158provided by general law, subject to conditions or limitations
159specified therein.
160     (g)  As defined by general law, land that is used
161exclusively for commercial fishing purposes or that is open to
162the public and used predominantly for commercial water-dependent
163activities or for public access to waters that are navigable may
164be assessed as provided by general law, subject to conditions or
165limitations specified therein. For purposes of this paragraph,
166the term "water-dependent activity" means any activity that can
167be conducted only on, in, over, or adjacent to waters that are
168navigable and that requires direct access to water and involves
169the 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
172real estate and maintains thereon the permanent residence of the
173owner, or another legally or naturally dependent upon the owner,
174shall be exempt from taxation thereon, except assessments for
175special benefits, on seventy-five percent of up to the just
176assessed valuation of such property up to two hundred of five
177thousand dollars and on fifteen percent of the just valuation of
178such property above two hundred thousand dollars up to five
179hundred thousand dollars, upon establishment of right thereto in
180the manner prescribed by law. The five hundred thousand dollar
181threshold shall be adjusted each year by the percentage change
182in per capita personal income, as defined by general law, for
183the previous year, and may be increased by general law enacted
184by an affirmative vote of at least two-thirds of the membership
185of each house of the legislature. The exemption shall not be
186less than fifty thousand dollars but, for low-income seniors who
187meet the eligibility criteria under subsection (d), the
188exemption shall not be less than one hundred thousand dollars.
189The real estate may be held by legal or equitable title, by the
190entireties, jointly, in common, as a condominium, or indirectly
191by stock ownership or membership representing the owner's or
192member's proprietary interest in a corporation owning a fee or a
193leasehold initially in excess of ninety-eight years. The
194exemption shall not apply with respect to any assessment roll
195until such roll is first determined to be in compliance with the
196provisions of section 4 by a state agency designated by general
197law. This exemption is repealed on the effective date of any
198amendment to this Article which provides for the assessment of
199homestead property at less than just value.
200     (b)  Not more than one exemption shall be allowed any
201individual or family unit or with respect to any residential
202unit. No exemption shall exceed the value of the real estate
203assessable to the owner or, in case of ownership through stock
204or membership in a corporation, the value of the proportion
205which the interest in the corporation bears to the assessed
206value of the property.
207     (c)  By general law and subject to conditions specified
208therein, the exemption shall be increased to a total of twenty-
209five thousand dollars of the assessed value of the real estate
210for each school district levy. By general law and subject to
211conditions specified therein, the exemption for all other levies
212may be increased up to an amount not exceeding ten thousand
213dollars of the assessed value of the real estate if the owner
214has attained age sixty-five or is totally and permanently
215disabled and if the owner is not entitled to the exemption
216provided in subsection (d).
217     (d)  By general law and subject to conditions specified
218therein, the exemption shall be increased to a total of the
219following amounts of assessed value of real estate for each levy
220other than those of school districts: fifteen thousand dollars
221with respect to 1980 assessments; twenty thousand dollars with
222respect to 1981 assessments; twenty-five thousand dollars with
223respect to assessments for 1982 and each year thereafter.
224However, such increase shall not apply with respect to any
225assessment roll until such roll is first determined to be in
226compliance with the provisions of section 4 by a state agency
227designated by general law. This subsection shall stand repealed
228on the effective date of any amendment to section 4 which
229provides for the assessment of homestead property at a specified
230percentage of its just value.
231     (c)(e)  By general law and subject to conditions specified
232therein, the Legislature may provide to renters, who are
233permanent residents, ad valorem tax relief on all ad valorem tax
234levies. Such ad valorem tax relief shall be in the form and
235amount established by general law.
236     (d)(f)  The legislature may, by general law, allow counties
237or municipalities, for the purpose of their respective tax
238levies and subject to the provisions of general law, to grant an
239additional homestead tax exemption not exceeding fifty thousand
240dollars to any person who has the legal or equitable title to
241real estate and maintains thereon the permanent residence of the
242owner and who has attained age sixty-five and whose household
243income, as defined by general law, does not exceed twenty
244thousand dollars. The general law must allow counties and
245municipalities to grant this additional exemption, within the
246limits prescribed in this subsection, by ordinance adopted in
247the manner prescribed by general law, and must provide for the
248periodic adjustment of the income limitation prescribed in this
249subsection for changes in the cost of living.
250     (e)(g)  Each veteran who is age 65 or older who is
251partially or totally permanently disabled shall receive a
252discount from the amount of the ad valorem tax otherwise owed on
253homestead property the veteran owns and resides in if the
254disability was combat related, the veteran was a resident of
255this state at the time of entering the military service of the
256United States, and the veteran was honorably discharged upon
257separation from military service. The discount shall be in a
258percentage equal to the percentage of the veteran's permanent,
259service-connected disability as determined by the United States
260Department of Veterans Affairs. To qualify for the discount
261granted by this subsection, an applicant must submit to the
262county property appraiser, by March 1, proof of residency at the
263time of entering military service, an official letter from the
264United States Department of Veterans Affairs stating the
265percentage of the veteran's service-connected disability and
266such evidence that reasonably identifies the disability as
267combat related, and a copy of the veteran's honorable discharge.
268If the property appraiser denies the request for a discount, the
269appraiser must notify the applicant in writing of the reasons
270for the denial, and the veteran may reapply. The Legislature
271may, by general law, waive the annual application requirement in
272subsequent years. This subsection shall take effect December 7,
2732006, is self-executing, and does not require implementing
274legislation.
275     SECTION 9.  Local taxes.--
276     (a)  Counties, school districts, and municipalities shall,
277and special districts may, be authorized by law to levy ad
278valorem taxes and may be authorized by general law to levy other
279taxes, for their respective purposes, except ad valorem taxes on
280intangible personal property and taxes prohibited by this
281constitution.
282     (b)  Ad valorem taxes, exclusive of taxes levied for the
283payment of bonds and taxes levied for periods not longer than
284two years when authorized by vote of the electors who are the
285owners of freeholds therein not wholly exempt from taxation,
286shall not be levied in excess of the following millages upon the
287assessed value of real estate and tangible personal property:
288for all county purposes, ten mills; for all municipal purposes,
289ten mills; for all school purposes, ten mills; for water
290management purposes for the northwest portion of the state lying
291west of the line between ranges two and three east, 0.05 mill;
292for water management purposes for the remaining portions of the
293state, 1.0 mill; and for all other special districts a millage
294authorized by law approved by vote of the electors who are
295owners of freeholds therein not wholly exempt from taxation. A
296county furnishing municipal services may, to the extent
297authorized by law, levy additional taxes within the limits fixed
298for municipal purposes.
299     (c)  By general law, the legislature shall limit the
300authority of counties, municipalities, and special districts to
301increase ad valorem taxes.
302
ARTICLE XII
303
SCHEDULE
304     SECTION 27.  Transitional assessments of homestead
305property; effective date.--
306     (a)  Each person entitled to a homestead exemption under
307Section 6 of Article VII on January 1, 2008, shall continue to
308have the person's current homestead assessed under Section 4(c)
309of Article VII so long as, on January 1 of each year, the sum of
310the exemption the person would have received under Section 6(a)-
311(d) of Article VII, as it existed on December 31, 2007, plus the
312difference between the homestead's just value and its assessed
313value determined pursuant to Section 4(c) of Article VII is
314greater than the exemption provided by Section 6(a) of Article
315VII. After the exemption provided in Section 6(a) of Article VII
316exceeds such sum in any year, the homestead may not be assessed
317under Section 4(c) of Article VII.
318     (b)  The exemption provided in Section 6(a) of Article VII
319to each person entitled to have the person's homestead assessed
320under Section 4(c) of Article VII pursuant to subsection (a)
321shall be limited to the exemption the person would have been
322entitled to under Section 6(a)-(d) of Article VII as it existed
323on December 31, 2007.
324     (c)  The amendments to Sections 3, 4, 6, and 9 of Article
325VII, providing an exemption from ad valorem taxation for
326tangible personal property, revising provisions limiting an
327increase in the assessed value of homestead property, providing
328for assessing rent-restricted affordable housing and commercial
329and public-access waterfront property pursuant to general law,
330increasing the homestead exemption by providing a schedule for
331determining the exemption based on a percentage of the
332property's just value, and requiring the legislature to limit
333the authority of counties, municipalities, and special districts
334to increase ad valorem taxes, and this section, providing for
335transitional assessments of homestead property, shall take
336effect upon approval by the electors and shall operate
337retroactively to January 1, 2008.
338     BE IT FURTHER RESOLVED that the following statement be
339placed 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,
344LIMITATIONS, AND HOMESTEADS.--Proposing amendments to the State
345Constitution to increase the homestead exemption from $25,000 to
34675 percent of the just value of the property up to $200,000 and
34715 percent of the just value of the property above $200,000 up
348to $500,000, to subject the $500,000 threshold to annual
349adjustments based on the percentage change in per capita
350personal income, to authorize an increase in the $500,000
351threshold amount by a two-thirds vote of the Legislature, and to
352specify minimum homestead exemption amounts of $50,000 for
353everyone except low-income seniors and $100,000 for low-income
354seniors; to provide for transitional assessments of homestead
355property under the increased homestead exemption that include
356preserving application of Save-Our-Homes provisions when those
357provisions provide a benefit that is greater than the increased
358homestead exemption; to revise Save-Our-Homes provisions to
359conform to provisions providing for the increased homestead
360exemption and transitional assessments of homestead property; to
361require the Legislature to limit the authority of counties,
362municipalities, and special districts to increase ad valorem
363taxes; to authorize an exemption from ad valorem taxes of no
364less than $25,000 of assessed value of tangible personal
365property; to provide for assessing rent-restricted affordable
366housing property and waterfront property used for commercial
367fishing, commercial water-dependent activities, and public
368access at less than just value; and to schedule the amendments
369to take effect upon approval by the voters and operate
370retroactively to January 1, 2008.


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