CS/HJR 655

1
House Joint Resolution
2A joint resolution proposing an amendment to Sections 4
3and 6 of Article VII and the creation of Sections 31 and
432 of Article XII of the State Constitution to reduce from
510 percent to 5 percent the limitation on annual
6assessment increases applicable to nonhomestead real
7property, provide an additional homestead exemption for
8new owners of homestead property and application and
9limitations with respect thereto, and provide an effective
10date.
11
12Be It Resolved by the Legislature of the State of Florida:
13
14     That the following amendments to Sections 4 and 6 of
15Article VII and the creation of Sections 31 and 32 of Article
16XII of the State Constitution are agreed to and shall be
17submitted to the electors of this state for approval or
18rejection at the next general election or at an earlier special
19election specifically authorized by law for that purpose:
20
ARTICLE VII
21
FINANCE AND TAXATION
22     SECTION 4.  Taxation; assessments.-By general law
23regulations shall be prescribed which shall secure a just
24valuation of all property for ad valorem taxation, provided:
25     (a)  Agricultural land, land producing high water recharge
26to Florida's aquifers, or land used exclusively for
27noncommercial recreational purposes may be classified by general
28law and assessed solely on the basis of character or use.
29     (b)  As provided by general law and subject to conditions,
30limitations, and reasonable definitions specified therein, land
31used for conservation purposes shall be classified by general
32law and assessed solely on the basis of character or use.
33     (c)  Pursuant to general law tangible personal property
34held for sale as stock in trade and livestock may be valued for
35taxation at a specified percentage of its value, may be
36classified for tax purposes, or may be exempted from taxation.
37     (d)  All persons entitled to a homestead exemption under
38Section 6 of this Article shall have their homestead assessed at
39just value as of January 1 of the year following the effective
40date of this amendment. This assessment shall change only as
41provided in this subsection.
42     (1)  Assessments subject to this subsection shall be
43changed annually on January 1 1st of each year; but those
44changes in assessments shall not exceed the lower of the
45following:
46     a.  Three percent (3%) of the assessment for the prior
47year.
48     b.  The percent change in the Consumer Price Index for all
49urban consumers, U.S. City Average, all items 1967=100, or
50successor reports for the preceding calendar year as initially
51reported by the United States Department of Labor, Bureau of
52Labor Statistics.
53     (2)  No assessment shall exceed just value.
54     (3)  After any change of ownership, as provided by general
55law, homestead property shall be assessed at just value as of
56January 1 of the following year, unless the provisions of
57paragraph (8) apply. Thereafter, the homestead shall be assessed
58as provided in this subsection.
59     (4)  New homestead property shall be assessed at just value
60as of January 1 1st of the year following the establishment of
61the homestead, unless the provisions of paragraph (8) apply.
62That assessment shall only change as provided in this
63subsection.
64     (5)  Changes, additions, reductions, or improvements to
65homestead property shall be assessed as provided for by general
66law; provided, however, after the adjustment for any change,
67addition, reduction, or improvement, the property shall be
68assessed as provided in this subsection.
69     (6)  In the event of a termination of homestead status, the
70property shall be assessed as provided by general law.
71     (7)  The provisions of this amendment are severable. If any
72of the provisions of this amendment shall be held
73unconstitutional by any court of competent jurisdiction, the
74decision of such court shall not affect or impair any remaining
75provisions of this amendment.
76     (8)a.  A person who establishes a new homestead as of
77January 1, 2009, or January 1 of any subsequent year and who has
78received a homestead exemption pursuant to Section 6 of this
79Article as of January 1 of either of the 2 two years immediately
80preceding the establishment of the new homestead is entitled to
81have the new homestead assessed at less than just value. If this
82revision is approved in January of 2008, a person who
83establishes a new homestead as of January 1, 2008, is entitled
84to have the new homestead assessed at less than just value only
85if that person received a homestead exemption on January 1,
862007. The assessed value of the newly established homestead
87shall be determined as follows:
88     1.  If the just value of the new homestead is greater than
89or equal to the just value of the prior homestead as of January
901 of the year in which the prior homestead was abandoned, the
91assessed value of the new homestead shall be the just value of
92the new homestead minus an amount equal to the lesser of
93$500,000 or the difference between the just value and the
94assessed value of the prior homestead as of January 1 of the
95year in which the prior homestead was abandoned. Thereafter, the
96homestead shall be assessed as provided in this subsection.
97     2.  If the just value of the new homestead is less than the
98just value of the prior homestead as of January 1 of the year in
99which the prior homestead was abandoned, the assessed value of
100the new homestead shall be equal to the just value of the new
101homestead divided by the just value of the prior homestead and
102multiplied by the assessed value of the prior homestead.
103However, if the difference between the just value of the new
104homestead and the assessed value of the new homestead calculated
105pursuant to this sub-subparagraph is greater than $500,000, the
106assessed value of the new homestead shall be increased so that
107the difference between the just value and the assessed value
108equals $500,000. Thereafter, the homestead shall be assessed as
109provided in this subsection.
110     b.  By general law and subject to conditions specified
111therein, the legislature shall provide for application of this
112paragraph to property owned by more than one person.
113     (e)  The legislature may, by general law, for assessment
114purposes and subject to the provisions of this subsection, allow
115counties and municipalities to authorize by ordinance that
116historic property may be assessed solely on the basis of
117character or use. Such character or use assessment shall apply
118only to the jurisdiction adopting the ordinance. The
119requirements for eligible properties must be specified by
120general law.
121     (f)  A county may, in the manner prescribed by general law,
122provide for a reduction in the assessed value of homestead
123property to the extent of any increase in the assessed value of
124that property which results from the construction or
125reconstruction of the property for the purpose of providing
126living quarters for one or more natural or adoptive grandparents
127or parents of the owner of the property or of the owner's spouse
128if at least one of the grandparents or parents for whom the
129living quarters are provided is 62 years of age or older. Such a
130reduction may not exceed the lesser of the following:
131     (1)  The increase in assessed value resulting from
132construction or reconstruction of the property.
133     (2)  Twenty percent of the total assessed value of the
134property as improved.
135     (g)  For all levies other than school district levies,
136assessments of residential real property, as defined by general
137law, which contains nine units or fewer and which is not subject
138to the assessment limitations set forth in subsections (a)
139through (d) shall change only as provided in this subsection.
140     (1)  Assessments subject to this subsection shall be
141changed annually on the date of assessment provided by law; but
142those changes in assessments shall not exceed 5 ten percent
143(10%) of the assessment for the prior year.
144     (2)  No assessment shall exceed just value.
145     (3)  After a change of ownership or control, as defined by
146general law, including any change of ownership of a legal entity
147that owns the property, such property shall be assessed at just
148value as of the next assessment date. Thereafter, such property
149shall be assessed as provided in this subsection.
150     (4)  Changes, additions, reductions, or improvements to
151such property shall be assessed as provided for by general law;
152however, after the adjustment for any change, addition,
153reduction, or improvement, the property shall be assessed as
154provided in this subsection.
155     (h)  For all levies other than school district levies,
156assessments of real property that is not subject to the
157assessment limitations set forth in subsections (a) through (d)
158and (g) shall change only as provided in this subsection.
159     (1)  Assessments subject to this subsection shall be
160changed annually on the date of assessment provided by law; but
161those changes in assessments shall not exceed 5 ten percent
162(10%) of the assessment for the prior year.
163     (2)  No assessment shall exceed just value.
164     (3)  The legislature must provide that such property shall
165be assessed at just value as of the next assessment date after a
166qualifying improvement, as defined by general law, is made to
167such property. Thereafter, such property shall be assessed as
168provided in this subsection.
169     (4)  The legislature may provide that such property shall
170be assessed at just value as of the next assessment date after a
171change of ownership or control, as defined by general law,
172including any change of ownership of the legal entity that owns
173the property. Thereafter, such property shall be assessed as
174provided in this subsection.
175     (5)  Changes, additions, reductions, or improvements to
176such property shall be assessed as provided for by general law;
177however, after the adjustment for any change, addition,
178reduction, or improvement, the property shall be assessed as
179provided in this subsection.
180     (i)  The legislature, by general law and subject to
181conditions specified therein, may prohibit the consideration of
182the following in the determination of the assessed value of real
183property used for residential purposes:
184     (1)  Any change or improvement made for the purpose of
185improving the property's resistance to wind damage.
186     (2)  The installation of a renewable energy source device.
187     (j)(1)  The assessment of the following working waterfront
188properties shall be based upon the current use of the property:
189     a.  Land used predominantly for commercial fishing
190purposes.
191     b.  Land that is accessible to the public and used for
192vessel launches into waters that are navigable.
193     c.  Marinas and drystacks that are open to the public.
194     d.  Water-dependent marine manufacturing facilities,
195commercial fishing facilities, and marine vessel construction
196and repair facilities and their support activities.
197     (2)  The assessment benefit provided by this subsection is
198subject to conditions and limitations and reasonable definitions
199as specified by the legislature by general law.
200     SECTION 6.  Homestead exemptions.-
201     (a)  Every person who has the legal or equitable title to
202real estate and maintains thereon the permanent residence of the
203owner, or another legally or naturally dependent upon the owner,
204shall be exempt from taxation thereon, except assessments for
205special benefits, up to the assessed valuation of $25,000
206twenty-five thousand dollars and, for all levies other than
207school district levies, on the assessed valuation greater than
208$50,000 fifty thousand dollars and up to $75,000 seventy-five
209thousand dollars, upon establishment of right thereto in the
210manner prescribed by law. The real estate may be held by legal
211or equitable title, by the entireties, jointly, in common, as a
212condominium, or indirectly by stock ownership or membership
213representing the owner's or member's proprietary interest in a
214corporation owning a fee or a leasehold initially in excess of
21598 ninety-eight years. The exemption shall not apply with
216respect to any assessment roll until such roll is first
217determined to be in compliance with the provisions of Section 4
218of this Article by a state agency designated by general law.
219This exemption is repealed on the effective date of any
220amendment to this Article which provides for the assessment of
221homestead property at less than just value.
222     (b)  Not more than one exemption shall be allowed any
223individual or family unit or with respect to any residential
224unit. No exemption shall exceed the value of the real estate
225assessable to the owner or, in case of ownership through stock
226or membership in a corporation, the value of the proportion
227which the interest in the corporation bears to the assessed
228value of the property.
229     (c)  By general law and subject to conditions specified
230therein, the legislature may provide to renters, who are
231permanent residents, ad valorem tax relief on all ad valorem tax
232levies. Such ad valorem tax relief shall be in the form and
233amount established by general law.
234     (d)  The legislature may, by general law, allow counties or
235municipalities, for the purpose of their respective tax levies
236and subject to the provisions of general law, to grant an
237additional homestead tax exemption not exceeding $50,000 fifty
238thousand dollars to any person who has the legal or equitable
239title to real estate and maintains thereon the permanent
240residence of the owner and who has attained age 65 sixty-five
241and whose household income, as defined by general law, does not
242exceed $20,000 twenty thousand dollars. The general law must
243allow counties and municipalities to grant this additional
244exemption, within the limits prescribed in this subsection, by
245ordinance adopted in the manner prescribed by general law, and
246must provide for the periodic adjustment of the income
247limitation prescribed in this subsection for changes in the cost
248of living.
249     (e)  Each veteran who is age 65 or older who is partially
250or totally permanently disabled shall receive a discount from
251the amount of the ad valorem tax otherwise owed on homestead
252property the veteran owns and resides in if the disability was
253combat related, the veteran was a resident of this state at the
254time of entering the military service of the United States, and
255the veteran was honorably discharged upon separation from
256military service. The discount shall be in a percentage equal to
257the percentage of the veteran's permanent, service-connected
258disability as determined by the United States Department of
259Veterans Affairs. To qualify for the discount granted by this
260subsection, an applicant must submit to the county property
261appraiser, by March 1, proof of residency at the time of
262entering military service, an official letter from the United
263States Department of Veterans Affairs stating the percentage of
264the veteran's service-connected disability and such evidence
265that reasonably identifies the disability as combat related, and
266a copy of the veteran's honorable discharge. If the property
267appraiser denies the request for a discount, the appraiser must
268notify the applicant in writing of the reasons for the denial,
269and the veteran may reapply. The legislature may, by general
270law, waive the annual application requirement in subsequent
271years. This subsection shall take effect December 7, 2006, is
272self-executing, and does not require implementing legislation.
273     (f)  As provided by general law and subject to conditions
274specified therein, every person who establishes the right to
275receive the homestead exemption provided in subsection (a)
276within 1 year after purchasing the homestead property and who
277has not owned property in the previous 3 years to which the
278homestead exemption provided in subsection (a) applied is
279entitled to an additional homestead exemption in an amount equal
280to 50 percent of the homestead property's just value on January
2811 of the year the homestead is established for all levies other
282than school district levies. The additional exemption shall
283apply for a period of 5 years or until the year the property is
284sold, whichever occurs first. The amount of the additional
285exemption shall not exceed $200,000 and shall be reduced in each
286subsequent year by an amount equal to 20 percent of the amount
287of the additional exemption received in the year the homestead
288was established or by an amount equal to the difference between
289the just value of the property and the assessed value of the
290property determined under Section 4(d) of this Article,
291whichever is greater. Not more than one exemption provided under
292this subsection shall be allowed per homestead property. The
293additional exemption shall apply to property purchased after
294January 1, 2010, but shall not be available in the sixth and
295subsequent years after the additional exemption is first
296received.
297
ARTICLE XII
298
SCHEDULE
299     SECTION 31.  Property tax limit for nonhomestead property.-
300The amendment to Section 4 of Article VII reducing the limit on
301the maximum annual increase in the assessed value of
302nonhomestead property from 10 percent to 5 percent and this
303section shall take effect January 1, 2011.
304     SECTION 32.  Additional homestead exemption for new owners
305of homestead property.-The amendment to Section 6 of Article VII
306providing for an additional homestead exemption for new owners
307of homestead property who have not owned homestead property
308during the immediately preceding 3 years and this section shall
309take effect January 1, 2011, and shall be available for
310properties purchased on or after January 1, 2010.
311     BE IT FURTHER RESOLVED that the following statement be
312placed on the ballot:
313
CONSTITUTIONAL AMENDMENT
314
ARTICLE VII, SECTIONS 4, 6
315
ARTICLE XII, SECTIONS 31, 32
316     REDUCED NONHOMESTEAD PROPERTY ANNUAL ASSESSMENT INCREASE
317LIMITATION; ADDITIONAL HOMESTEAD EXEMPTION FOR NEW HOMESTEAD
318PROPERTY OWNERS.-
319     (1)  This amendment reduces from 10 percent to 5 percent
320the limitation on annual increases in assessments of
321nonhomestead real property and provides an effective date of
322January 1, 2011.
323     (2)  This amendment also provides new owners of homestead
324property who have not owned homestead property during the
325immediately preceding 3 years with an additional homestead
326exemption equal to 50 percent of the property's just value in
327the first year for all levies other than school district levies,
328limited to $200,000; applies the additional exemption for the
329shorter of 5 years or the year of sale of the property; reduces
330the amount of the additional exemption in each succeeding year
331for 5 years by the greater of 20 percent of the amount of the
332initial additional exemption or the difference between the just
333value and the assessed value of the property; limits the
334additional exemption to one per homestead property; limits the
335additional exemption to properties purchased after January 1,
3362010; prohibits availability of the additional exemption in the
337sixth and subsequent years after the additional exemption is
338granted; and provides for the amendment to take effect January
3391, 2011, and apply to properties purchased on or after January
3401, 2010.


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