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Senate Joint Resolution

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A joint resolution proposing amendments to Sections 4 and

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6 of Article VII and the creation of Section 27 of Article

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XII of the State Constitution to provide for the transfer

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of the accrued benefit from the limitation on the assessed

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value of homestead property, to provide for an additional

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homestead exemption, and to provide an effective date if

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such amendments are adopted.

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

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     That the following amendment to Sections 4 and 6 of Article

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

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Constitution are agreed to and shall be submitted to the electors

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of this state for approval or rejection at the next general

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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.--By general law

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regulations shall be prescribed which shall secure a just

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valuation of all property for ad valorem taxation, 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 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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paragraph (8) apply. Thereafter, the homestead shall be assessed

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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 paragraph (8) apply. That

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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 amendment are severable. If any

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of the provisions of this amendment shall be held

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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. For all levies other than school district levies, a

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person who establishes a new homestead as of January 1, 2009, or

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January 1 of any subsequent year and who has received a homestead

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exemption pursuant to Section 6 of this Article as of January 1

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of either of the two years immediately preceding the

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establishment of the new homestead is entitled to have the new

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homestead assessed at less than just value. A person who

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establishes a new homestead as of January 1, 2009, is entitled to

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have the new homestead assessed at less than just value only if

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that person received a homestead exemption on January 1, 2008.

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The 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 of the person

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establishing the new 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 the lesser of:

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     (A) The just value of the new homestead minus an amount

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equal to the difference between the just value and the assessed

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

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the prior homestead was abandoned, not to exceed one million

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dollars; or

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     (B) Sixty percent (60%) of the just value of the new

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homestead up to one million dollars and one hundred percent

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(100%) of that portion of just value exceeding one million

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dollars.

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Thereafter, the homestead shall be 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 of the person establishing the

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

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homestead was abandoned, the assessed value of the new homestead

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shall be equal to the lesser of:

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     (A) The just value of the new homestead divided by the just

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value of the prior homestead and multiplied by the assessed value

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of the prior homestead; or

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     (B) Sixty percent (60%) of the just value of the new

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homestead up to $1 million and one hundred percent (100%) of that

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portion of the just value exceeding one million dollars.

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However, if the difference between the just value of the new

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homestead and the assessed value of the new homestead calculated

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pursuant to this sub-subparagraph is greater than one million

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dollars, the assessed value of the new homestead shall be

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increased so that the difference between the just value and the

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assessed value equals one million dollars. Thereafter, the

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homestead shall be assessed as provided 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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     (9) By general law, the legislature may decrease the

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percentages specified in sub-sub-subparagraphs (8)a.1.(B) and

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2.(B).

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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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     SECTION 6.  Homestead exemptions.--

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     (a)(1) Every person who has the legal or equitable title to

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real estate and maintains thereon the permanent residence of the

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

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shall be exempt from taxation thereon, upon establishment of

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right thereto in the manner prescribed by law, except assessments

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for special benefits, up to the assessed valuation of twenty-five

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five thousand dollars plus an amount equal to the greater of:

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     a. Forty percent (40%) of the just valuation of such

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property greater than twenty-five thousand dollars up to five

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hundred thousand dollars of just valuation; or

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     b. The accumulated benefit provided under subsection (c) of

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Section 4 of this Article, upon establishment of right thereto in

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the manner prescribed by law.

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     (2) The real estate may be held by legal or equitable

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title, by the entireties, jointly, in common, as a condominium,

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or indirectly by stock ownership or membership representing the

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owner's or member's proprietary interest in a corporation owning

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a fee or a leasehold initially in excess of ninety-eight years.

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The exemption shall not apply with respect to any assessment roll

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until such roll is first determined to be in compliance with the

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provisions of Section 4 of this Article by a state agency

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designated by general law. This exemption is repealed on the

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effective date of any amendment to Section 4 of this Article that

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provides for the assessment of homestead property at less than

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just value.

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

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individual or family unit or with respect to any residential

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

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

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membership in a corporation, the value of the proportion which

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the interest in the corporation bears to the assessed value of

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the property.

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     (c) By general law and subject to conditions specified

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therein, the exemption shall be increased to a total of twenty-

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five thousand dollars of the assessed value of the real estate

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for each school district levy. By general law and subject to

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conditions specified therein, the exemption for all other levies

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may be increased up to an amount not exceeding ten thousand

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dollars of the assessed value of the real estate if the owner has

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attained age sixty-five or is totally and permanently disabled

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and if the owner is not entitled to the exemption provided in

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subsection (d).

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     (d) By general law and subject to conditions specified

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

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following amounts of assessed value of real estate for each levy

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other than those of school districts: fifteen thousand dollars

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with respect to 1980 assessments; twenty thousand dollars with

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respect to 1981 assessments; twenty-five thousand dollars with

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respect to assessments for 1982 and each year thereafter.

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However, such increase shall not apply with respect to any

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assessment roll until such roll is first determined to be in

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compliance with the provisions of section 4 by a state agency

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designated by general law. This subsection shall stand repealed

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on the effective date of any amendment to section 4 which

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provides for the assessment of homestead property at a specified

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percentage of its just value.

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

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therein, the Legislature may provide to renters, who are

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

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levies. Such ad valorem tax relief shall be in the form and

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amount established by general law.

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

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or municipalities, for the purpose of their respective tax levies

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and subject to the provisions of general law, to grant an

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additional homestead tax exemption not exceeding fifty thousand

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dollars to any person who has the legal or equitable title to

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real estate and maintains thereon the permanent residence of the

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owner and who has attained age sixty-five and whose household

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income, as defined by general law, does not exceed twenty

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thousand dollars. The general law must allow counties and

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municipalities to grant this additional exemption, within the

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limits prescribed in this subsection, by ordinance adopted in the

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manner prescribed by general law, and must provide for the

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periodic adjustment of the income limitation prescribed in this

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subsection for changes in the cost of living.

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

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or totally permanently disabled shall receive a discount from the

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amount of the ad valorem tax otherwise owed on homestead property

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the veteran owns and resides in if the disability was combat

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related, the veteran was a resident of this state at the time of

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entering the military service of the United States, and the

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veteran was honorably discharged upon separation from military

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service. The discount shall be in a percentage equal to the

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percentage of the veteran's permanent, service-connected

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disability as determined by the United States Department of

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Veterans Affairs. To qualify for the discount granted by this

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subsection, an applicant must submit to the county property

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appraiser, by March 1, proof of residency at the time of entering

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military service, an official letter from the United States

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Department of Veterans Affairs stating the percentage of the

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veteran's service-connected disability and such evidence that

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reasonably identifies the disability as combat related, and a

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copy of the veteran's honorable discharge. If the property

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appraiser denies the request for a discount, the appraiser must

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notify the applicant in writing of the reasons for the denial,

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

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waive the annual application requirement in subsequent years.

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This subsection shall take effect December 7, 2006, is self-

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executing, and does not require implementing legislation.

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ARTICLE XII

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SCHEDULE

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     SECTION 27. Property tax exemptions and ad valorem tax

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limitations.--The amendments to Sections 4 and 6 of Article VII,

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authorizing the transfer of the accrued benefit from the

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limitation on annual increases in assessments of homestead

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property and providing an additional homestead exemption equal to

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the greater of forty percent of the homestead's just valuation

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from twenty-five thousand dollars up to five hundred thousand

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dollars or the accumulated benefit from the limitation on annual

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increases in assessments of homestead property and this section,

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if submitted to the electors of this state for approval or

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rejection at the next general election, shall take effect January

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1 of the year following such general election.

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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 AMENDMENTS

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ARTICLE VII, SECTIONS 4 and 6

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ARTICLE XII, SECTION 27

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     TRANSFER OF ACCUMULATED BENEFIT OF LIMITATIONS ON INCREASES

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IN HOMESTEAD PROPERTY ASSESSMENTS; ADDITIONAL HOMESTEAD

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EXEMPTION.--Proposing amendments to the State Constitution to:

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     (1)  Provide for the transfer of accumulated Save-Our-Homes

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benefits. Homestead property owners will be able to transfer

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their Save-Our-Homes benefit to a new homestead within two years

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of relinquishing their previous homestead exemption; except, if

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

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homestead must have been relinquished in 2007. If the new

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homestead has a higher just value than the old one, the benefit

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transferred shall be the lesser of (a) the just value of the new

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homestead minus an amount equal to the difference between the

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

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

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not to exceed $1 million, or (b) 60 percent of the just value up

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to $1 million in just value, and 100 percent of that portion of

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just value over $1 million, of the new homestead; if the new

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homestead has a lower just value, the amount of benefit

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transferred will be equal to the lesser of (c) the just value of

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the new homestead divided by the just value of the prior

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homestead and multiplied by the assessed value of the prior

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homestead, or (d) 60 percent of the just value up to $1 million

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in just value, and 100 percent of that portion of the just value

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over $1 million, of the new homestead. The transferred benefit

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may not exceed $1 million. Authorizes the Legislature to decrease

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the percentages of the just value of the new homestead used in

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the calculations. This provision does not apply to school taxes.

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     (2)  Provide for an additional homestead exemption equal to

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the greater of 40 percent of the just value of the homestead

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property from $25,000 up to $500,000 or the accumulated benefit

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provided under Save Our Homes.