HJR 421

1	House Joint Resolution
2	A joint resolution proposing amendments to Section 4 and 6
3	of Article VII and the creation of Section 27 of Article
4	XII of the State Constitution to provide for the transfer
5	of the accrued benefit from the limitation on the assessed
6	value of homestead property, to provide for an additional
7	homestead exemption, and to provide an effective date if
8	such amendments are adopted.
9
10	Be It Resolved by the Legislature of the State of Florida:
11
12	That the following amendments to Section 4 and 6 of Article
13	VII and the creation of Section 27 of Article XII of the State
14	Constitution are agreed to and shall be submitted to the
15	electors of this state for approval or rejection at the next
16	general election:
17	ARTICLE VII
18	FINANCE AND TAXATION
19	SECTION 4.  Taxation; assessments.--By general law
20	regulations shall be prescribed which shall secure a just
21	valuation of all property for ad valorem taxation, provided:
22	(a)  Agricultural land, land producing high water recharge
23	to Florida's aquifers, or land used exclusively for
24	noncommercial recreational purposes may be classified by general
25	law and assessed solely on the basis of character or use.
26	(b)  Pursuant to general law tangible personal property
27	held for sale as stock in trade and livestock may be valued for
28	taxation at a specified percentage of its value, may be
29	classified for tax purposes, or may be exempted from taxation.
30	(c)  All persons entitled to a homestead exemption under
31	Section 6 of this Article shall have their homestead assessed at
32	just value as of January 1 of the year following the effective
33	date of this amendment. This assessment shall change only as
34	provided herein.
35	(1)  Assessments subject to this provision shall be changed
36	annually on January 1st of each year; but those changes in
37	assessments shall not exceed the lower of the following:
38	a.  Three percent (3%) of the assessment for the prior
39	year.
40	b.  The percent change in the Consumer Price Index for all
41	urban consumers, U.S. City Average, all items 1967=100, or
42	successor reports for the preceding calendar year as initially
43	reported by the United States Department of Labor, Bureau of
44	Labor Statistics.
45	(2)  No assessment shall exceed just value.
46	(3)  After any change of ownership, as provided by general
47	law, homestead property shall be assessed at just value as of
48	January 1 of the following year, unless the provisions of
49	paragraph (8) apply. Thereafter, the homestead shall be assessed
50	as provided herein.
51	(4)  New homestead property shall be assessed at just value
52	as of January 1st of the year following the establishment of the
53	homestead, unless the provisions of paragraph (8) apply. That
54	assessment shall only change as provided herein.
55	(5)  Changes, additions, reductions, or improvements to
56	homestead property shall be assessed as provided for by general
57	law; provided, however, after the adjustment for any change,
58	addition, reduction, or improvement, the property shall be
59	assessed as provided herein.
60	(6)  In the event of a termination of homestead status, the
61	property shall be assessed as provided by general law.
62	(7)  The provisions of this amendment are severable. If any
63	of the provisions of this amendment shall be held
64	unconstitutional by any court of competent jurisdiction, the
65	decision of such court shall not affect or impair any remaining
66	provisions of this amendment.
67	(8)a.  For all levies other than school district levies, a
68	person who establishes a new homestead as of January 1, 2009, or
69	January 1 of any subsequent year and who has received a
70	homestead exemption pursuant to Section 6 of this Article as of
71	January 1 of either of the two years immediately preceding the
72	establishment of the new homestead is entitled to have the new
73	homestead assessed at less than just value. A person who
74	establishes a new homestead as of January 1, 2009, is entitled
75	to have the new homestead assessed at less than just value only
76	if that person received a homestead exemption on January 1,
77	2008. The assessed value of the newly established homestead
78	shall be determined as follows:
79	1.  If the just value of the new homestead is greater than
80	or equal to the just value of the prior homestead of the person
81	establishing the new homestead as of January 1 of the year in
82	which the prior homestead was abandoned, the assessed value of
83	the new homestead shall be the lesser of:
84	(A)  The just value of the new homestead minus an amount
85	equal to the difference between the just value and the assessed
86	value of the prior homestead as of January 1 of the year in
87	which the prior homestead was abandoned, not to exceed one
88	million dollars; or
89	(B)  Sixty percent (60%) of the just value of the new
90	homestead up to one million dollars and one hundred percent
91	(100%) of that portion of just value exceeding one million
92	dollars.
93
94	Thereafter, the homestead shall be assessed as provided herein.
95	2.  If the just value of the new homestead is less than the
96	just value of the prior homestead of the person establishing the
97	new homestead as of January 1 of the year in which the prior
98	homestead was abandoned, the assessed value of the new homestead
99	shall be equal to the lesser of:
100	(A)  The just value of the new homestead divided by the
101	just value of the prior homestead and multiplied by the assessed
102	value of the prior homestead; or
103	(B)  Sixty percent (60%) of the just value of the new
104	homestead up to $1 million and one hundred percent (100%) of
105	that portion of the just value exceeding one million dollars.
106
107	However, if the difference between the just value of the new
108	homestead and the assessed value of the new homestead calculated
109	pursuant to this sub-subparagraph is greater than one million
110	dollars, the assessed value of the new homestead shall be
111	increased so that the difference between the just value and the
112	assessed value equals one million dollars. Thereafter, the
113	homestead shall be assessed as provided herein.
114	b.  By general law and subject to conditions specified
115	therein, the legislature shall provide for application of this
116	paragraph to property owned by more than one person.
117	(9)  By general law, the legislature may decrease the
118	percentages specified in sub-sub-subparagraphs (8)a.1.(B) and
119	2.(B).
120	(d)  The legislature may, by general law, for assessment
121	purposes and subject to the provisions of this subsection, allow
122	counties and municipalities to authorize by ordinance that
123	historic property may be assessed solely on the basis of
124	character or use. Such character or use assessment shall apply
125	only to the jurisdiction adopting the ordinance. The
126	requirements for eligible properties must be specified by
127	general law.
128	(e)  A county may, in the manner prescribed by general law,
129	provide for a reduction in the assessed value of homestead
130	property to the extent of any increase in the assessed value of
131	that property which results from the construction or
132	reconstruction of the property for the purpose of providing
133	living quarters for one or more natural or adoptive grandparents
134	or parents of the owner of the property or of the owner's spouse
135	if at least one of the grandparents or parents for whom the
136	living quarters are provided is 62 years of age or older. Such a
137	reduction may not exceed the lesser of the following:
138	(1)  The increase in assessed value resulting from
139	construction or reconstruction of the property.
140	(2)  Twenty percent of the total assessed value of the
141	property as improved.
142	SECTION 6.  Homestead exemptions.--
143	(a)(1)  Every person who has the legal or equitable title
144	to real estate and maintains thereon the permanent residence of
145	the owner, or another legally or naturally dependent upon the
146	owner, shall be exempt from taxation thereon, upon establishment
147	of right thereto in the manner prescribed by law, except
148	assessments for special benefits, up to the assessed valuation
149	of twenty-five five thousand dollars plus an amount equal to the
150	greater of:
151	a.  Forty percent (40%) of the just valuation of such
152	property greater than twenty-five thousand dollars up to five
153	hundred thousand dollars of just valuation; or
154	b.  The accumulated benefit provided under subsection (c)
155	of Section 4 of this Article, upon establishment of right
156	thereto in the manner prescribed by law.
157	(2)  The real estate may be held by legal or equitable
158	title, by the entireties, jointly, in common, as a condominium,
159	or indirectly by stock ownership or membership representing the
160	owner's or member's proprietary interest in a corporation owning
161	a fee or a leasehold initially in excess of ninety-eight years.
162	The exemption shall not apply with respect to any assessment
163	roll until such roll is first determined to be in compliance
164	with the provisions of Section 4 of this Article by a state
165	agency designated by general law. This exemption is repealed on
166	the effective date of any amendment to Section 4 of this Article
167	that provides for the assessment of homestead property at less
168	than just value.
169	(b)  Not more than one exemption shall be allowed any
170	individual or family unit or with respect to any residential
171	unit. No exemption shall exceed the value of the real estate
172	assessable to the owner or, in case of ownership through stock
173	or membership in a corporation, the value of the proportion
174	which the interest in the corporation bears to the assessed
175	value of the property.
176	(c)  By general law and subject to conditions specified
177	therein, the exemption shall be increased to a total of twenty-
178	five thousand dollars of the assessed value of the real estate
179	for each school district levy. By general law and subject to
180	conditions specified therein, the exemption for all other levies
181	may be increased up to an amount not exceeding ten thousand
182	dollars of the assessed value of the real estate if the owner
183	has attained age sixty-five or is totally and permanently
184	disabled and if the owner is not entitled to the exemption
185	provided in subsection (d).
186	(d)  By general law and subject to conditions specified
187	therein, the exemption shall be increased to a total of the
188	following amounts of assessed value of real estate for each levy
189	other than those of school districts: fifteen thousand dollars
190	with respect to 1980 assessments; twenty thousand dollars with
191	respect to 1981 assessments; twenty-five thousand dollars with
192	respect to assessments for 1982 and each year thereafter.
193	However, such increase shall not apply with respect to any
194	assessment roll until such roll is first determined to be in
195	compliance with the provisions of section 4 by a state agency
196	designated by general law. This subsection shall stand repealed
197	on the effective date of any amendment to section 4 which
198	provides for the assessment of homestead property at a specified
199	percentage of its just value.
200	(c)(e)  By general law and subject to conditions specified
201	therein, the Legislature may provide to renters, who are
202	permanent residents, ad valorem tax relief on all ad valorem tax
203	levies. Such ad valorem tax relief shall be in the form and
204	amount established by general law.
205	(d)(f)  The legislature may, by general law, allow counties
206	or municipalities, for the purpose of their respective tax
207	levies and subject to the provisions of general law, to grant an
208	additional homestead tax exemption not exceeding fifty thousand
209	dollars to any person who has the legal or equitable title to
210	real estate and maintains thereon the permanent residence of the
211	owner and who has attained age sixty-five and whose household
212	income, as defined by general law, does not exceed twenty
213	thousand dollars. The general law must allow counties and
214	municipalities to grant this additional exemption, within the
215	limits prescribed in this subsection, by ordinance adopted in
216	the manner prescribed by general law, and must provide for the
217	periodic adjustment of the income limitation prescribed in this
218	subsection for changes in the cost of living.
219	(e)(g)  Each veteran who is age 65 or older who is
220	partially or totally permanently disabled shall receive a
221	discount from the amount of the ad valorem tax otherwise owed on
222	homestead property the veteran owns and resides in if the
223	disability was combat related, the veteran was a resident of
224	this state at the time of entering the military service of the
225	United States, and the veteran was honorably discharged upon
226	separation from military service. The discount shall be in a
227	percentage equal to the percentage of the veteran's permanent,
228	service-connected disability as determined by the United States
229	Department of Veterans Affairs. To qualify for the discount
230	granted by this subsection, an applicant must submit to the
231	county property appraiser, by March 1, proof of residency at the
232	time of entering military service, an official letter from the
233	United States Department of Veterans Affairs stating the
234	percentage of the veteran's service-connected disability and
235	such evidence that reasonably identifies the disability as
236	combat related, and a copy of the veteran's honorable discharge.
237	If the property appraiser denies the request for a discount, the
238	appraiser must notify the applicant in writing of the reasons
239	for the denial, and the veteran may reapply. The Legislature
240	may, by general law, waive the annual application requirement in
241	subsequent years. This subsection shall take effect December 7,
242	2006, is self-executing, and does not require implementing
243	legislation.
244	ARTICLE XII
245	SCHEDULE
246	SECTION 27.  Property tax exemptions and ad valorem tax
247	limitations.--The amendments to Sections 4 and 6 of Article VII,
248	authorizing the transfer of the accrued benefit from the
249	limitation on annual increases in assessments of homestead
250	property and providing an additional homestead exemption equal
251	to the greater of forty percent of the homestead's just
252	valuation from twenty-five thousand dollars up to five hundred
253	thousand dollars or the accumulated benefit from the limitation
254	on annual increases in assessments of homestead property and
255	this section, if submitted to the electors of this state for
256	approval or rejection at the next general election, shall take
257	effect January 1 of the year following such general election.
258	BE IT FURTHER RESOLVED that the following statement be
259	placed on the ballot:
260	CONSTITUTIONAL AMENDMENT
261	ARTICLE VII, SECTIONS 4 AND 6
262	ARTICLE XII, SECTION 27
263	TRANSFER OF ACCUMULATED BENEFIT OF LIMITATIONS ON INCREASES
264	IN HOMESTEAD PROPERTY ASSESSMENTS; ADDITIONAL HOMESTEAD
265	EXEMPTION.--Proposing amendments to the State Constitution to:
266	(1)  Provide for the transfer of accumulated Save-Our-Homes
267	benefits. Homestead property owners will be able to transfer
268	their Save-Our-Homes benefit to a new homestead within two years
269	of relinquishing their previous homestead exemption; except, if
270	the new homestead is established on January 1, 2008, the
271	previous homestead must have been relinquished in 2007. If the
272	new homestead has a higher just value than the old one, the
273	benefit transferred shall be the lesser of (a) the just value of
274	the new homestead minus an amount equal to the difference
275	between the just value and the assessed value of the prior
276	homestead as of January 1 of the year in which the prior
277	homestead was abandoned, not to exceed $1 million, or (b) 60
278	percent of the just value up to $1 million in just value, and
279	100 percent of that portion of just value over $1 million, of
280	the new homestead; if the new homestead has a lower just value,
281	the amount of benefit transferred will be equal to the lesser of
282	(c) the just value of the new homestead divided by the just
283	value of the prior homestead and multiplied by the assessed
284	value of the prior homestead, or (d) 60 percent of the just
285	value up to $1 million in just value, and 100 percent of that
286	portion of the just value over $1 million, of the new homestead.
287	The transferred benefit may not exceed $1 million. Authorizes
288	the Legislature to decrease the percentages of the just value of
289	the new homestead used in the calculations. This provision does
290	not apply to school taxes.
291	(2)  Provide for an additional homestead exemption equal to
292	the greater of 40 percent of the just value of the homestead
293	property from $25,000 up to $500,000 or the accumulated benefit
294	provided under Save Our Homes.

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