Florida Senate - 2010 SJR 112 By Senator Dean 3-00276-10 2010112__ 1 Senate Joint Resolution 2 A joint resolution proposing an amendment to Section 4 3 of Article VII of the State Constitution to allow the 4 cap on homestead property assessments and the transfer 5 of that cap to a new homestead to inure to the spouse, 6 child, or grandchild of the property owner who 7 inherits the property if the property becomes the 8 homestead of the inheritor. 9 10 Be It Resolved by the Legislature of the State of Florida: 11 12 That the following amendment to Section 4 of Article VII of 13 the State Constitution is agreed to and shall be submitted to 14 the electors of this state for approval or rejection at the next 15 general election or at an earlier special election specifically 16 authorized by law for that purpose: 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) As provided by general law and subject to conditions, 27 limitations, and reasonable definitions specified therein, land 28 used for conservation purposes shall be classified by general 29 law and assessed solely on the basis of character or use. 30 (c) Pursuant to general law tangible personal property held 31 for sale as stock in trade and livestock may be valued for 32 taxation at a specified percentage of its value, may be 33 classified for tax purposes, or may be exempted from taxation. 34 (d) All persons entitled to a homestead exemption under 35 Section 6 of this Article shall have their homestead assessed at 36 just value as of January 1 of the year following the effective 37 date of this amendment. This assessment shall change only as 38 provided in this subsection. 39 (1) Assessments subject to this subsection shall be changed 40 annually on January 1st of each year; but those changes in 41 assessments mayshallnot exceed the lower of the following: 42 a. Three percent(3%)of the assessment for the prior year. 43 b. The percent change in the Consumer Price Index for all 44 urban consumers, U.S. City Average, all items 1967=100, or 45 successor reports for the preceding calendar year as initially 46 reported by the United States Department of Labor, Bureau of 47 Labor Statistics. 48 (2) No assessment shall exceed just value. 49 (3) After any change of ownership, as provided by general 50 law, homestead property shall be assessed at just value as of 51 January 1 of the following year, unless the provisions of 52 paragraphs (7) and (8)paragraph (8)apply. Thereafter, the 53 homestead shall be assessed as provided in this subsection. 54 (4) New homestead property shall be assessed at just value 55 as of January 1st of the year following the establishment of the 56 homestead, unless the provisions of paragraphs (7) and (8) 57paragraph (8)apply. That assessment shall only change as 58 provided in this subsection. 59 (5) Changes, additions, reductions, or improvements to 60 homestead property shall be assessed as provided for by general 61 law; provided, however, after the adjustment for any change, 62 addition, reduction, or improvement, the property shall be 63 assessed as provided in this subsection. 64 (6) In the event of a termination of homestead status, the 65 property shall be assessed as provided by general law. 66 (7) The provisions of this subsection shall inure to the 67 surviving spouse, child, or grandchild of the property owner who 68 inherits the homestead property if such spouse, child, or 69 grandchild makes the property his or her homestead as provided 70 in Section 6 of this Article.The provisions of this amendment71are severable. If any of the provisions of this amendment shall72be held unconstitutional by any court of competent jurisdiction,73the decision of such court shall not affect or impair any74remaining provisions of this amendment.75 (8)a. A person who establishes a new homestead as of 76 January 1, 2009, or January 1 of any subsequent year and who has 77 received a homestead exemption pursuant to Section 6 of this 78 Article as of January 1 of either of the two years immediately 79 preceding the establishment of the new homestead is entitled to 80 have the new homestead assessed at less than just value. If this 81 revision is approved in January of 2008, a person who 82 establishes a new homestead as of January 1, 2008, is entitled 83 to have the new homestead assessed at less than just value only 84 if that person received a homestead exemption on January 1, 85 2007. The assessed value of the newly established homestead 86 shall be determined as follows: 87 1. If the just value of the new homestead is greater than 88 or equal to the just value of the prior homestead as of January 89 1 of the year in which the prior homestead was abandoned, the 90 assessed value of the new homestead shall be the just value of 91 the new homestead minus an amount equal to the lesser of 92 $500,000 or the difference between the just value and the 93 assessed value of the prior homestead as of January 1 of the 94 year in which the prior homestead was abandoned. Thereafter, the 95 homestead shall be assessed as provided in this subsection. 96 2. If the just value of the new homestead is less than the 97 just value of the prior homestead as of January 1 of the year in 98 which the prior homestead was abandoned, the assessed value of 99 the new homestead shall be equal to the just value of the new 100 homestead divided by the just value of the prior homestead and 101 multiplied by the assessed value of the prior homestead. 102 However, if the difference between the just value of the new 103 homestead and the assessed value of the new homestead calculated 104 pursuant to this sub-subparagraph is greater than $500,000, the 105 assessed value of the new homestead shall be increased so that 106 the difference between the just value and the assessed value 107 equals $500,000. Thereafter, the homestead shall be assessed as 108 provided in this subsection. 109 b. By general law and subject to conditions specified 110 therein, the Legislature shall provide for application of this 111 paragraph to property owned by more than one person. 112 (e) The legislature may, by general law, for assessment 113 purposes and subject to the provisions of this subsection, allow 114 counties and municipalities to authorize by ordinance that 115 historic property may be assessed solely on the basis of 116 character or use. Such character or use assessment shall apply 117 only to the jurisdiction adopting the ordinance. The 118 requirements for eligible properties must be specified by 119 general law. 120 (f) A county may, in the manner prescribed by general law, 121 provide for a reduction in the assessed value of homestead 122 property to the extent of any increase in the assessed value of 123 that property which results from the construction or 124 reconstruction of the property for the purpose of providing 125 living quarters for one or more natural or adoptive grandparents 126 or parents of the owner of the property or of the owner’s spouse 127 if at least one of the grandparents or parents for whom the 128 living quarters are provided is 62 years of age or older. Such a 129 reduction may not exceed the lesser of the following: 130 (1) The increase in assessed value resulting from 131 construction or reconstruction of the property. 132 (2) Twenty percent of the total assessed value of the 133 property as improved. 134 (g) For all levies other than school district levies, 135 assessments of residential real property, as defined by general 136 law, which contains nine units or fewer and which is not subject 137 to the assessment limitations set forth in subsections (a) 138 through (d) shall change only as provided in this subsection. 139 (1) Assessments subject to this subsection shall be changed 140 annually on the date of assessment provided by law; but those 141 changes in assessments shall not exceed ten percent(10%)of the 142 assessment for the prior year. 143 (2) No assessment shall exceed just value. 144 (3) After a change of ownership or control, as defined by 145 general law, including any change of ownership of a legal entity 146 that owns the property, such property shall be assessed at just 147 value as of the next assessment date. Thereafter, such property 148 shall be assessed as provided in this subsection. 149 (4) Changes, additions, reductions, or improvements to such 150 property shall be assessed as provided for by general law; 151 however, after the adjustment for any change, addition, 152 reduction, or improvement, the property shall be assessed as 153 provided in this subsection. 154 (h) For all levies other than school district levies, 155 assessments of real property that is not subject to the 156 assessment limitations set forth in subsections (a) through (d) 157 and (g) shall change only as provided in this subsection. 158 (1) Assessments subject to this subsection shall be changed 159 annually on the date of assessment provided by law; but those 160 changes in assessments shall not exceed ten percent(10%)of the 161 assessment for the prior year. 162 (2) No assessment shall exceed just value. 163 (3) The legislature must provide that such property shall 164 be assessed at just value as of the next assessment date after a 165 qualifying improvement, as defined by general law, is made to 166 such property. Thereafter, such property shall be assessed as 167 provided in this subsection. 168 (4) The legislature may provide that such property shall be 169 assessed at just value as of the next assessment date after a 170 change of ownership or control, as defined by general law, 171 including any change of ownership of the legal entity that owns 172 the property. Thereafter, such property shall be assessed as 173 provided in this subsection. 174 (5) Changes, additions, reductions, or improvements to such 175 property shall be assessed as provided for by general law; 176 however, after the adjustment for any change, addition, 177 reduction, or improvement, the property shall be assessed as 178 provided in this subsection. 179 (i) The legislature, by general law and subject to 180 conditions specified therein, may prohibit the consideration of 181 the following in the determination of the assessed value of real 182 property used for residential purposes: 183 (1) Any change or improvement made for the purpose of 184 improving the property’s resistance to wind damage. 185 (2) The installation of a renewable energy source device. 186 (j)(1) The assessment of the following working waterfront 187 properties shall be based upon the current use of the property: 188 a. Land used predominantly for commercial fishing purposes. 189 b. Land that is accessible to the public and used for 190 vessel launches into waters that are navigable. 191 c. Marinas and drystacks that are open to the public. 192 d. Water-dependent marine manufacturing facilities, 193 commercial fishing facilities, and marine vessel construction 194 and repair facilities and their support activities. 195 (2) The assessment benefit provided by this subsection is 196 subject to conditions and limitations and reasonable definitions 197 as specified by the legislature by general law. 198 BE IT FURTHER RESOLVED that the following statement be 199 placed on the ballot: 200 CONSTITUTIONAL AMENDMENT 201 ARTICLE VII, SECTION 4 202 INHERITING HOMESTEAD PROPERTY.—Proposing an amendment to 203 the State Constitution to allow the cap on homestead property 204 assessments and the transfer of that cap to a new homestead to 205 inure to the spouse, child, or grandchild of the property owner 206 who inherits the property if the property becomes the homestead 207 of the inheritor.