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Senate Joint Resolution

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A joint resolution proposing an amendment to Section 4 of

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Article VII of the State Constitution to allow the cap on

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homestead property assessments and the transfer of that

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cap to a new homestead to inure to the spouse, child, or

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grandchild of the property owner who inherits the property

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if the property becomes the homestead of the inheritor.

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

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     That the following amendment to Section 4 of Article VII of

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the State Constitution is agreed to and shall be submitted to the

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electors of this state for approval or rejection at the next

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general election or at an earlier special election specifically

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authorized by law for that purpose:

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ARTICLE VII

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FINANCE AND TAXATION

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     SECTION 4.  Taxation; assessments.-

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     By general law regulations shall be prescribed which shall

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secure a just valuation of all property for ad valorem taxation,

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provided:

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     (a)  Agricultural land, land producing high water recharge

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to Florida's aquifers, or land used exclusively for noncommercial

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recreational purposes may be classified by general law and

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assessed solely on the basis of character or use.

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     (b)  Pursuant to general law tangible personal property held

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

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taxation at a specified percentage of its value, may be

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

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     (c)  All persons entitled to a homestead exemption under

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Section 6 of this Article shall have their homestead assessed at

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just value as of January 1 of the year following the effective

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date of this amendment. This assessment shall change only as

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provided herein.

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     (1)  Assessments subject to this provision shall be changed

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annually on January 1st of each year; but those changes in

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assessments may shall not exceed the lower of the following:

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

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

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

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successor reports for the preceding calendar year as initially

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reported by the United States Department of Labor, Bureau of

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Labor Statistics.

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     (2)  No assessment shall exceed just value.

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

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law, homestead property shall be assessed at just value as of

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January 1 of the following year, unless the provisions of

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paragraphs (7) and paragraph (8) apply. Thereafter, the homestead

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shall be assessed as provided herein.

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

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as of January 1st of the year following the establishment of the

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homestead, unless the provisions of paragraphs (7) and paragraph

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(8) apply. That assessment shall only change as provided herein.

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

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homestead property shall be assessed as provided for by general

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law; provided, however, after the adjustment for any change,

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addition, reduction, or improvement, the property shall be

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assessed as provided herein.

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

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property shall be assessed as provided by general law.

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     (7) The provisions of this subsection shall inure to the

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surviving spouse, child, or grandchild of the property owner who

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inherits the homestead property if such spouse, child, or

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grandchild make the property his or her homestead as provided in

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Section 6 of this Article. The provisions of this amendment are

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severable. If any of the provisions of this amendment shall be

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held unconstitutional by any court of competent jurisdiction, the

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decision of such court shall not affect or impair any remaining

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provisions of this amendment.

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

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

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received a homestead exemption pursuant to Section 6 of this

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Article as of January 1 of either of the two years immediately

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preceding the establishment of the new homestead is entitled to

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have the new homestead assessed at less than just value. If this

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revision is approved in January of 2008, a person who establishes

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a new homestead as of January 1, 2008, is entitled to have the

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new homestead assessed at less than just value only if that

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person received a homestead exemption on January 1, 2007. The

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assessed value of the newly established homestead shall be

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determined as follows:

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

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or equal to the just value of the prior homestead as of January 1

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of the year in which the prior homestead was abandoned, the

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assessed value of the new homestead shall be the just value of

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the new homestead minus an amount equal to the lesser of $500,000

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or the difference between the just value and the assessed value

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

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prior homestead was abandoned. Thereafter, the homestead shall be

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assessed as provided herein.

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

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just value of the prior homestead as of January 1 of the year in

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which the prior homestead was abandoned, the assessed value of

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

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homestead divided by the just value of the prior homestead and

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multiplied by the assessed value of the prior homestead. However,

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if the difference between the just value of the new homestead and

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the assessed value of the new homestead calculated pursuant to

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this sub-subparagraph is greater than $500,000, the assessed

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value of the new homestead shall be increased so that the

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difference between the just value and the assessed value equals

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$500,000. Thereafter, the homestead shall be assessed as provided

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herein.

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     b.  By general law and subject to conditions specified

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therein, the Legislature shall provide for application of this

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paragraph to property owned by more than one person.

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

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purposes and subject to the provisions of this subsection, allow

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counties and municipalities to authorize by ordinance that

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historic property may be assessed solely on the basis of

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character or use. Such character or use assessment shall apply

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only to the jurisdiction adopting the ordinance. The requirements

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for eligible properties must be specified by general law.

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

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provide for a reduction in the assessed value of homestead

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property to the extent of any increase in the assessed value of

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that property which results from the construction or

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reconstruction of the property for the purpose of providing

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living quarters for one or more natural or adoptive grandparents

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or parents of the owner of the property or of the owner's spouse

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if at least one of the grandparents or parents for whom the

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living quarters are provided is 62 years of age or older. Such a

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reduction may not exceed the lesser of the following:

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     (1)  The increase in assessed value resulting from

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construction or reconstruction of the property.

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

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property as improved.

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

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assessments of residential real property, as defined by general

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law, which contains nine units or fewer and which is not subject

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to the assessment limitations set forth in subsections (a)

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through (c) shall change only as provided in this subsection.

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     (1)  Assessments subject to this subsection shall be changed

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annually on the date of assessment provided by law; but those

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changes in assessments shall not exceed ten percent (10%) of the

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assessment for the prior year.

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     (2)  No assessment shall exceed just value.

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

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general law, including any change of ownership of a legal entity

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that owns the property, such property shall be assessed at just

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value as of the next assessment date. Thereafter, such property

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shall be assessed as provided in this subsection.

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

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property shall be assessed as provided for by general law;

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however, after the adjustment for any change, addition,

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reduction, or improvement, the property shall be assessed as

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provided in this subsection.

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

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assessments of real property that is not subject to the

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assessment limitations set forth in subsections (a) through (c)

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

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     (1)  Assessments subject to this subsection shall be changed

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annually on the date of assessment provided by law; but those

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changes in assessments shall not exceed ten percent (10%) of the

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assessment for the prior year.

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     (2)  No assessment shall exceed just value.

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     (3)  The legislature must provide that such property shall

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be assessed at just value as of the next assessment date after a

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qualifying improvement, as defined by general law, is made to

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such property. Thereafter, such property shall be assessed as

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provided in this subsection.

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     (4)  The legislature may provide that such property shall be

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assessed at just value as of the next assessment date after a

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change of ownership or control, as defined by general law,

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including any change of ownership of the legal entity that owns

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the property. Thereafter, such property shall be assessed as

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provided in this subsection.

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

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property shall be assessed as provided for by general law;

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however, after the adjustment for any change, addition,

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reduction, or improvement, the property shall be assessed as

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provided in this subsection.

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     BE IT FURTHER RESOLVED that the following statement be

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placed on the ballot:

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CONSTITUTIONAL AMENDMENT

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ARTICLE VII, SECTION 4

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     INHERITING HOMESTEAD PROPERTY.--Proposing an amendment to

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the State Constitution to allow the cap on homestead property

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assessments and the transfer of that cap to a new homestead to

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inure to the spouse, child, or grandchild of the property owner

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who inherits the property if the property becomes the homestead

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of the inheritor.