Senate Bill sb0002De3

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    CS for SJR 2-D                                 Third Engrossed



  1                     Senate Joint Resolution

  2         A joint resolution proposing amendments to

  3         Sections 3, 4, and 6 of Article VII and the

  4         creation of Section 27 of Article XII of the

  5         State Constitution, to require an exemption

  6         from ad valorem taxation for tangible personal

  7         property, to provide for the transfer of the

  8         accrued benefit from the limitation on the

  9         assessed value of homestead property, to create

10         a limitation on annual assessment increases for

11         specified real property, to increase the

12         homestead exemption, and to provide an

13         effective date if such amendments are adopted.

14  

15  Be It Resolved by the Legislature of the State of Florida:

16  

17         That the following amendments to Sections 3, 4, and 6

18  of Article VII and the creation of Section 27 of Article XII

19  of the State Constitution are agreed to and shall be submitted

20  to the electors of this state for approval or rejection at the

21  next general election or at an earlier special election

22  specifically authorized by law for that purpose:

23                           ARTICLE VII

24                       FINANCE AND TAXATION

25         SECTION 3.  Taxes; exemptions.--

26         (a)  All property owned by a municipality and used

27  exclusively by it for municipal or public purposes shall be

28  exempt from taxation.  A municipality, owning property outside

29  the municipality, may be required by general law to make

30  payment to the taxing unit in which the property is

31  located.  Such portions of property as are used predominantly


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    CS for SJR 2-D                                 Third Engrossed



 1  for educational, literary, scientific, religious or charitable

 2  purposes may be exempted by general law from taxation.

 3         (b)  There shall be exempt from taxation, cumulatively,

 4  to every head of a family residing in this state, household

 5  goods and personal effects to the value fixed by general law,

 6  not less than one thousand dollars, and to every widow or

 7  widower or person who is blind or totally and permanently

 8  disabled, property to the value fixed by general law not less

 9  than five hundred dollars.

10         (c)  Any county or municipality may, for the purpose of

11  its respective tax levy and subject to the provisions of this

12  subsection and general law, grant community and economic

13  development ad valorem tax exemptions to new businesses and

14  expansions of existing businesses, as defined by general law.

15  Such an exemption may be granted only by ordinance of the

16  county or municipality, and only after the electors of the

17  county or municipality voting on such question in a referendum

18  authorize the county or municipality to adopt such

19  ordinances.  An exemption so granted shall apply to

20  improvements to real property made by or for the use of a new

21  business and improvements to real property related to the

22  expansion of an existing business and shall also apply to

23  tangible personal property of such new business and tangible

24  personal property related to the expansion of an existing

25  business. The amount or limits of the amount of such exemption

26  shall be specified by general law.  The period of time for

27  which such exemption may be granted to a new business or

28  expansion of an existing business shall be determined by

29  general law.  The authority to grant such exemption shall

30  expire ten years from the date of approval by the electors of

31  


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    CS for SJR 2-D                                 Third Engrossed



 1  the county or municipality, and may be renewable by referendum

 2  as provided by general law.

 3         (d)  By general law and subject to conditions specified

 4  therein, there may be granted an ad valorem tax exemption to a

 5  renewable energy source device and to real property on which

 6  such device is installed and operated, to the value fixed by

 7  general law not to exceed the original cost of the device, and

 8  for the period of time fixed by general law not to exceed ten

 9  years.

10         (e)  Any county or municipality may, for the purpose of

11  its respective tax levy and subject to the provisions of this

12  subsection and general law, grant historic preservation ad

13  valorem tax exemptions to owners of historic properties.  This

14  exemption may be granted only by ordinance of the county or

15  municipality.  The amount or limits of the amount of this

16  exemption and the requirements for eligible properties must be

17  specified by general law.  The period of time for which this

18  exemption may be granted to a property owner shall be

19  determined by general law.

20         (f)  By general law and subject to conditions specified

21  therein, twenty-five thousand dollars of the assessed value of

22  property subject to tangible personal property tax shall be

23  exempt from ad valorem taxation.

24         SECTION 4.  Taxation; assessments.--By general law

25  regulations shall be prescribed which shall secure a just

26  valuation of all property for ad valorem taxation, provided:

27         (a)  Agricultural land, land producing high water

28  recharge to Florida's aquifers, or land used exclusively for

29  noncommercial recreational purposes may be classified by

30  general law and assessed solely on the basis of character or

31  use.


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 1         (b)  Pursuant to general law tangible personal property

 2  held for sale as stock in trade and livestock may be valued

 3  for taxation at a specified percentage of its value, may be

 4  classified for tax purposes, or may be exempted from taxation.

 5         (c)  All persons entitled to a homestead exemption

 6  under Section 6 of this Article shall have their homestead

 7  assessed at just value as of January 1 of the year following

 8  the effective date of this amendment. This assessment shall

 9  change only as provided herein.

10         (1)  Assessments subject to this provision shall be

11  changed annually on January 1st of each year; but those

12  changes in assessments shall not exceed the lower of the

13  following:

14         a.  Three percent (3%) of the assessment for the prior

15  year.

16         b.  The percent change in the Consumer Price Index for

17  all urban consumers, U.S. City Average, all items 1967=100, or

18  successor reports for the preceding calendar year as initially

19  reported by the United States Department of Labor, Bureau of

20  Labor Statistics.

21         (2)  No assessment shall exceed just value.

22         (3)  After any change of ownership, as provided by

23  general law, homestead property shall be assessed at just

24  value as of January 1 of the following year, unless the

25  provisions of paragraph (8) apply. Thereafter, the homestead

26  shall be assessed as provided herein.

27         (4)  New homestead property shall be assessed at just

28  value as of January 1st of the year following the

29  establishment of the homestead, unless the provisions of

30  paragraph (8) apply. That assessment shall only change as

31  provided herein.


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 1         (5)  Changes, additions, reductions, or improvements to

 2  homestead property shall be assessed as provided for by

 3  general law; provided, however, after the adjustment for any

 4  change, addition, reduction, or improvement, the property

 5  shall be assessed as provided herein.

 6         (6)  In the event of a termination of homestead status,

 7  the property shall be assessed as provided by general law.

 8         (7)  The provisions of this amendment are severable. If

 9  any of the provisions of this amendment shall be held

10  unconstitutional by any court of competent jurisdiction, the

11  decision of such court shall not affect or impair any

12  remaining provisions of this amendment.

13         (8)a.  A person who establishes a new homestead as of

14  January 1, 2009, or January 1 of any subsequent year and who

15  has received a homestead exemption pursuant to Section 6 of

16  this Article as of January 1 of either of the two years

17  immediately preceding the establishment of the new homestead

18  is entitled to have the new homestead assessed at less than

19  just value. If this revision is approved in January of 2008, a

20  person who establishes a new homestead as of January 1, 2008,

21  is entitled to have the new homestead assessed at less than

22  just value only if that person received a homestead exemption

23  on January 1, 2007. The assessed value of the newly

24  established homestead shall be determined as follows:

25         1.  If the just value of the new homestead is greater

26  than or equal to the just value of the prior homestead as of

27  January 1 of the year in which the prior homestead was

28  abandoned, the assessed value of the new homestead shall be

29  the just value of the new homestead minus an amount equal to

30  the lesser of $500,000 or the difference between the just

31  value and the assessed value of the prior homestead as of


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    CS for SJR 2-D                                 Third Engrossed



 1  January 1 of the year in which the prior homestead was

 2  abandoned. Thereafter, the homestead shall be assessed as

 3  provided herein.

 4         2.  If the just value of the new homestead is less than

 5  the just value of the prior homestead as of January 1 of the

 6  year in which the prior homestead was abandoned, the assessed

 7  value of the new homestead shall be equal to the just value of

 8  the new homestead divided by the just value of the prior

 9  homestead and multiplied by the assessed value of the prior

10  homestead. However, if the difference between the just value

11  of the new homestead and the assessed value of the new

12  homestead calculated pursuant to this sub-subparagraph is

13  greater than $500,000, the assessed value of the new homestead

14  shall be increased so that the difference between the just

15  value and the assessed value equals $500,000. Thereafter, the

16  homestead shall be assessed as provided herein.

17         b.  By general law and subject to conditions specified

18  therein, the Legislature shall provide for application of this

19  paragraph to property owned by more than one person.

20         (d)  The legislature may, by general law, for

21  assessment purposes and subject to the provisions of this

22  subsection, allow counties and municipalities to authorize by

23  ordinance that historic property may be assessed solely on the

24  basis of character or use. Such character or use assessment

25  shall apply only to the jurisdiction adopting the ordinance.

26  The requirements for eligible properties must be specified by

27  general law.

28         (e)  A county may, in the manner prescribed by general

29  law, provide for a reduction in the assessed value of

30  homestead property to the extent of any increase in the

31  assessed value of that property which results from the


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    CS for SJR 2-D                                 Third Engrossed



 1  construction or reconstruction of the property for the purpose

 2  of providing living quarters for one or more natural or

 3  adoptive grandparents or parents of the owner of the property

 4  or of the owner's spouse if at least one of the grandparents

 5  or parents for whom the living quarters are provided is 62

 6  years of age or older. Such a reduction may not exceed the

 7  lesser of the following:

 8         (1)  The increase in assessed value resulting from

 9  construction or reconstruction of the property.

10         (2)  Twenty percent of the total assessed value of the

11  property as improved.

12         (f)  For all levies other than school district levies,

13  assessments of residential real property, as defined by

14  general law, which contains nine units or fewer and which is

15  not subject to the assessment limitations set forth in

16  subsections (a) through (c) shall change only as provided in

17  this subsection.

18         (1)  Assessments subject to this subsection shall be

19  changed annually on the date of assessment provided by law;

20  but those changes in assessments shall not exceed ten percent

21  (10%) of the assessment for the prior year.

22         (2)  No assessment shall exceed just value.

23         (3)  After a change of ownership or control, as defined

24  by general law, including any change of ownership of a legal

25  entity that owns the property, such property shall be assessed

26  at just value as of the next assessment date. Thereafter, such

27  property shall be assessed as provided in this subsection.

28         (4)  Changes, additions, reductions, or improvements to

29  such property shall be assessed as provided for by general

30  law; however, after the adjustment for any change, addition,

31  


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    CS for SJR 2-D                                 Third Engrossed



 1  reduction, or improvement, the property shall be assessed as

 2  provided in this subsection.

 3         (g)  For all levies other than school district levies,

 4  assessments of real property that is not subject to the

 5  assessment limitations set forth in subsections (a) through

 6  (c) and (f) shall change only as provided in this subsection.

 7         (1)  Assessments subject to this subsection shall be

 8  changed annually on the date of assessment provided by law;

 9  but those changes in assessments shall not exceed ten percent

10  (10%) of the assessment for the prior year.

11         (2)  No assessment shall exceed just value.

12         (3)  The legislature must provide that such property

13  shall be assessed at just value as of the next assessment date

14  after a qualifying improvement, as defined by general law, is

15  made to such property. Thereafter, such property shall be

16  assessed as provided in this subsection.

17         (4)  The legislature may provide that such property

18  shall be assessed at just value as of the next assessment date

19  after a change of ownership or control, as defined by general

20  law, including any change of ownership of the legal entity

21  that owns the property. Thereafter, such property shall be

22  assessed as provided in this subsection.

23         (5)  Changes, additions, reductions, or improvements to

24  such property shall be assessed as provided for by general

25  law; however, after the adjustment for any change, addition,

26  reduction, or improvement, the property shall be assessed as

27  provided in this subsection.

28         SECTION 6.  Homestead exemptions.--

29         (a)  Every person who has the legal or equitable title

30  to real estate and maintains thereon the permanent residence

31  of the owner, or another legally or naturally dependent upon


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    CS for SJR 2-D                                 Third Engrossed



 1  the owner, shall be exempt from taxation thereon, except

 2  assessments for special benefits, up to the assessed valuation

 3  of twenty-five five thousand dollars and, for all levies other

 4  than school district levies, on the assessed valuation greater

 5  than fifty thousand dollars and up to seventy-five thousand

 6  dollars, upon establishment of right thereto in the manner

 7  prescribed by law.  The real estate may be held by legal or

 8  equitable title, by the entireties, jointly, in common, as a

 9  condominium, or indirectly by stock ownership or membership

10  representing the owner's or member's proprietary interest in a

11  corporation owning a fee or a leasehold initially in excess of

12  ninety-eight years. The exemption shall not apply with respect

13  to any assessment roll until such roll is first determined to

14  be in compliance with the provisions of section 4 by a state

15  agency designated by general law. This exemption is repealed

16  on the effective date of any amendment to this Article which

17  provides for the assessment of homestead property at less than

18  just value.

19         (b)  Not more than one exemption shall be allowed any

20  individual or family unit or with respect to any residential

21  unit. No exemption shall exceed the value of the real estate

22  assessable to the owner or, in case of ownership through stock

23  or membership in a corporation, the value of the proportion

24  which the interest in the corporation bears to the assessed

25  value of the property.

26         (c)  By general law and subject to conditions specified

27  therein, the exemption shall be increased to a total of

28  twenty-five thousand dollars of the assessed value of the real

29  estate for each school district levy. By general law and

30  subject to conditions specified therein, the exemption for all

31  other levies may be increased up to an amount not exceeding


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    CS for SJR 2-D                                 Third Engrossed



 1  ten thousand dollars of the assessed value of the real estate

 2  if the owner has attained age sixty-five or is totally and

 3  permanently disabled and if the owner is not entitled to the

 4  exemption provided in subsection (d).

 5         (d)  By general law and subject to conditions specified

 6  therein, the exemption shall be increased to a total of the

 7  following amounts of assessed value of real estate for each

 8  levy other than those of school districts: fifteen thousand

 9  dollars with respect to 1980 assessments; twenty thousand

10  dollars with respect to 1981 assessments; twenty-five thousand

11  dollars with respect to assessments for 1982 and each year

12  thereafter. However, such increase shall not apply with

13  respect to any assessment roll until such roll is first

14  determined to be in compliance with the provisions of section

15  4 by a state agency designated by general law.  This

16  subsection shall stand repealed on the effective date of any

17  amendment to section 4 which provides for the assessment of

18  homestead property at a specified percentage of its just

19  value.

20         (c)(e)  By general law and subject to conditions

21  specified therein, the Legislature may provide to renters, who

22  are permanent residents, ad valorem tax relief on all ad

23  valorem tax levies. Such ad valorem tax relief shall be in the

24  form and amount established by general law.

25         (d)(f)  The legislature may, by general law, allow

26  counties or municipalities, for the purpose of their

27  respective tax levies and subject to the provisions of general

28  law, to grant an additional homestead tax exemption not

29  exceeding fifty thousand dollars to any person who has the

30  legal or equitable title to real estate and maintains thereon

31  the permanent residence of the owner and who has attained age


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    CS for SJR 2-D                                 Third Engrossed



 1  sixty-five and whose household income, as defined by general

 2  law, does not exceed twenty thousand dollars. The general law

 3  must allow counties and municipalities to grant this

 4  additional exemption, within the limits prescribed in this

 5  subsection, by ordinance adopted in the manner prescribed by

 6  general law, and must provide for the periodic adjustment of

 7  the income limitation prescribed in this subsection for

 8  changes in the cost of living.

 9         (e)(g)  Each veteran who is age 65 or older who is

10  partially or totally permanently disabled shall receive a

11  discount from the amount of the ad valorem tax otherwise owed

12  on homestead property the veteran owns and resides in if the

13  disability was combat related, the veteran was a resident of

14  this state at the time of entering the military service of the

15  United States, and the veteran was honorably discharged upon

16  separation from military service. The discount shall be in a

17  percentage equal to the percentage of the veteran's permanent,

18  service-connected disability as determined by the United

19  States Department of Veterans Affairs. To qualify for the

20  discount granted by this subsection, an applicant must submit

21  to the county property appraiser, by March 1, proof of

22  residency at the time of entering military service, an

23  official letter from the United States Department of Veterans

24  Affairs stating the percentage of the veteran's

25  service-connected disability and such evidence that reasonably

26  identifies the disability as combat related, and a copy of the

27  veteran's honorable discharge. If the property appraiser

28  denies the request for a discount, the appraiser must notify

29  the applicant in writing of the reasons for the denial, and

30  the veteran may reapply. The Legislature may, by general law,

31  waive the annual application requirement in subsequent years.


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    CS for SJR 2-D                                 Third Engrossed



 1  This subsection shall take effect December 7, 2006, is

 2  self-executing, and does not require implementing legislation.

 3                           ARTICLE XII

 4                             SCHEDULE

 5         SECTION 27.  Property tax exemptions and limitations on

 6  property tax assessments.--The amendments to Sections 3, 4,

 7  and 6 of Article VII, providing a $25,000 exemption for

 8  tangible personal property, providing an additional $25,000

 9  homestead exemption, authorizing transfer of the accrued

10  benefit from the limitations on the assessment of homestead

11  property, and this section, if submitted to the electors of

12  this state for approval or rejection at a special election

13  authorized by law to be held on January 29, 2008, shall take

14  effect upon approval by the electors and shall operate

15  retroactively to January 1, 2008, or, if submitted to the

16  electors of this state for approval or rejection at the next

17  general election, shall take effect January 1 of the year

18  following such general election. The amendments to Section 4

19  of Article VII creating subsections (f) and (g) of that

20  section, creating a limitation on annual assessment increases

21  for specified real property, shall take effect upon approval

22  of the electors and shall first limit assessments beginning

23  January 1, 2009, if approved at a special election held on

24  January 29, 2008, or shall first limit assessments beginning

25  January 1, 2010, if approved at the general election held in

26  November of 2008. Subsections (f) and (g) of Section 4 of

27  Article VII are repealed effective January 1, 2019; however,

28  the legislature shall by joint resolution propose an amendment

29  abrogating the repeal of subsections (f) and (g), which shall

30  be submitted to the electors of this state for approval or

31  


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    CS for SJR 2-D                                 Third Engrossed



 1  rejection at the general election of 2018 and, if approved,

 2  shall take effect January 1, 2019.

 3         BE IT FURTHER RESOLVED that the following statement be

 4  placed on the ballot:

 5                     CONSTITUTIONAL REVISION

 6                ARTICLE VII, SECTIONS 3, 4, AND 6

 7                     ARTICLE XII, SECTION 27

 8         PROPERTY TAX EXEMPTIONS; LIMITATIONS ON PROPERTY TAX

 9  ASSESSMENTS.--This revision proposes changes to the State

10  Constitution relating to property taxation. With respect to

11  homestead property, this revision: (1) increases the homestead

12  exemption except for school district taxes and (2) allows

13  homestead property owners to transfer up to $500,000 of their

14  Save-Our-Homes benefits to their next homestead. With respect

15  to nonhomestead property, this revision (3) provides a $25,000

16  exemption for tangible personal property and (4) limits

17  assessment increases for specified nonhomestead real property

18  except for school district taxes.

19         In more detail, this revision:

20         (1)  Increases the homestead exemption by exempting the

21  assessed value between $50,000 and $75,000. This exemption

22  does not apply to school district taxes.

23         (2)  Provides for the transfer of accumulated

24  Save-Our-Homes benefits. Homestead property owners will be

25  able to transfer their Save-Our-Homes benefit to a new

26  homestead within 1 year and not more than 2 years after

27  relinquishing their previous homestead; except, if this

28  revision is approved by the electors in January of 2008 and if

29  the new homestead is established on January 1, 2008, the

30  previous homestead must have been relinquished in 2007. If the

31  new homestead has a higher just value than the previous one,


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    CS for SJR 2-D                                 Third Engrossed



 1  the accumulated benefit can be transferred; if the new

 2  homestead has a lower just value, the amount of benefit

 3  transferred will be reduced. The transferred benefit may not

 4  exceed $500,000. This provision applies to all taxes.

 5         (3)  Authorizes an exemption from property taxes of

 6  $25,000 of assessed value of tangible personal property. This

 7  provision applies to all taxes.

 8         (4)  Limits the assessment increases for specified

 9  nonhomestead real property to 10 percent each year. Property

10  will be assessed at just value following an improvement, as

11  defined by general law, and may be assessed at just value

12  following a change of ownership or control if provided by

13  general law. This limitation does not apply to school district

14  taxes. This limitation is repealed effective January 1, 2019,

15  unless renewed by a vote of the electors in the general

16  election held in 2018.

17         Further, this revision:

18         a.  Repeals obsolete language on the homestead

19  exemption when it was less than $25,000 and did not apply

20  uniformly to property taxes levied by all local governments.

21         b.  Provides for homestead exemptions to be repealed if

22  a future constitutional amendment provides for assessment of

23  homesteads "at less than just value" rather than as currently

24  provided "at a specified percentage" of just value.

25         c.  Schedules the changes to take effect upon approval

26  by the electors and operate retroactively to January 1, 2008,

27  if approved in a special election held on January 29, 2008, or

28  to take effect January 1, 2009, if approved in the general

29  election held in November of 2008. The limitation on annual

30  assessment increases for specified real property shall first

31  apply to the 2009 tax roll if this revision is approved in a


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    CS for SJR 2-D                                 Third Engrossed



 1  special election held on January 29, 2008, or shall first

 2  apply to the 2010 tax roll if this revision is approved in the

 3  general election held in November of 2008.

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