CS/HJR 381

1
House Joint Resolution
2A joint resolution proposing amendments to Sections 4 and
36 of Article VII and the creation of Sections 32 and 33 of
4Article XII of the State Constitution to reduce the
5limitation on annual assessment increases applicable to
6nonhomestead real property, provide an additional
7homestead exemption for new owners of homestead property
8and application and limitations with respect thereto, and
9provide effective dates.
10
11Be It Resolved by the Legislature of the State of Florida:
12
13     That the following amendments to Sections 4 and 6 of
14Article VII and the creation of Sections 32 and 33 of Article
15XII of the State Constitution are agreed to and shall be
16submitted to the electors of this state for approval or
17rejection at the next general election or at an earlier special
18election specifically authorized by law for that purpose:
19
ARTICLE VII
20
FINANCE AND TAXATION
21     SECTION 4.  Taxation; assessments.-By general law
22regulations shall be prescribed which shall secure a just
23valuation of all property for ad valorem taxation, provided:
24     (a)  Agricultural land, land producing high water recharge
25to Florida's aquifers, or land used exclusively for
26noncommercial recreational purposes may be classified by general
27law and assessed solely on the basis of character or use.
28     (b)  As provided by general law and subject to conditions,
29limitations, and reasonable definitions specified therein, land
30used for conservation purposes shall be classified by general
31law and assessed solely on the basis of character or use.
32     (c)  Pursuant to general law tangible personal property
33held for sale as stock in trade and livestock may be valued for
34taxation at a specified percentage of its value, may be
35classified for tax purposes, or may be exempted from taxation.
36     (d)  All persons entitled to a homestead exemption under
37Section 6 of this Article shall have their homestead assessed at
38just value as of January 1 of the year following the effective
39date of this amendment. This assessment shall change only as
40provided in this subsection.
41     (1)  Assessments subject to this subsection shall be
42changed annually on January 1 1st of each year; but those
43changes in assessments shall not exceed the lower of the
44following:
45     a.  Three percent (3%) of the assessment for the prior
46year.
47     b.  The percent change in the Consumer Price Index for all
48urban consumers, U.S. City Average, all items 1967=100, or
49successor reports for the preceding calendar year as initially
50reported by the United States Department of Labor, Bureau of
51Labor Statistics.
52     (2)  No assessment shall exceed just value.
53     (3)  After any change of ownership, as provided by general
54law, homestead property shall be assessed at just value as of
55January 1 of the following year, unless the provisions of
56paragraph (8) apply. Thereafter, the homestead shall be assessed
57as provided in this subsection.
58     (4)  New homestead property shall be assessed at just value
59as of January 1 1st of the year following the establishment of
60the homestead, unless the provisions of paragraph (8) apply.
61That assessment shall only change as provided in this
62subsection.
63     (5)  Changes, additions, reductions, or improvements to
64homestead property shall be assessed as provided for by general
65law; provided, however, after the adjustment for any change,
66addition, reduction, or improvement, the property shall be
67assessed as provided in this subsection.
68     (6)  In the event of a termination of homestead status, the
69property shall be assessed as provided by general law.
70     (7)  The provisions of this amendment are severable. If any
71of the provisions of this amendment shall be held
72unconstitutional by any court of competent jurisdiction, the
73decision of such court shall not affect or impair any remaining
74provisions of this amendment.
75     (8)a.  A person who establishes a new homestead as of
76January 1, 2009, or January 1 of any subsequent year and who has
77received a homestead exemption pursuant to Section 6 of this
78Article as of January 1 of either of the 2 two years immediately
79preceding the establishment of the new homestead is entitled to
80have the new homestead assessed at less than just value. If this
81revision is approved in January of 2008, a person who
82establishes a new homestead as of January 1, 2008, is entitled
83to have the new homestead assessed at less than just value only
84if that person received a homestead exemption on January 1,
852007. The assessed value of the newly established homestead
86shall be determined as follows:
87     1.  If the just value of the new homestead is greater than
88or equal to the just value of the prior homestead as of January
891 of the year in which the prior homestead was abandoned, the
90assessed value of the new homestead shall be the just value of
91the new homestead minus an amount equal to the lesser of
92$500,000 or the difference between the just value and the
93assessed value of the prior homestead as of January 1 of the
94year in which the prior homestead was abandoned. Thereafter, the
95homestead shall be assessed as provided in this subsection.
96     2.  If the just value of the new homestead is less than the
97just value of the prior homestead as of January 1 of the year in
98which the prior homestead was abandoned, the assessed value of
99the new homestead shall be equal to the just value of the new
100homestead divided by the just value of the prior homestead and
101multiplied by the assessed value of the prior homestead.
102However, if the difference between the just value of the new
103homestead and the assessed value of the new homestead calculated
104pursuant to this sub-subparagraph is greater than $500,000, the
105assessed value of the new homestead shall be increased so that
106the difference between the just value and the assessed value
107equals $500,000. Thereafter, the homestead shall be assessed as
108provided in this subsection.
109     b.  By general law and subject to conditions specified
110therein, the legislature shall provide for application of this
111paragraph to property owned by more than one person.
112     (e)  The legislature may, by general law, for assessment
113purposes and subject to the provisions of this subsection, allow
114counties and municipalities to authorize by ordinance that
115historic property may be assessed solely on the basis of
116character or use. Such character or use assessment shall apply
117only to the jurisdiction adopting the ordinance. The
118requirements for eligible properties must be specified by
119general law.
120     (f)  A county may, in the manner prescribed by general law,
121provide for a reduction in the assessed value of homestead
122property to the extent of any increase in the assessed value of
123that property which results from the construction or
124reconstruction of the property for the purpose of providing
125living quarters for one or more natural or adoptive grandparents
126or parents of the owner of the property or of the owner's spouse
127if at least one of the grandparents or parents for whom the
128living quarters are provided is 62 years of age or older. Such a
129reduction may not exceed the lesser of the following:
130     (1)  The increase in assessed value resulting from
131construction or reconstruction of the property.
132     (2)  Twenty percent of the total assessed value of the
133property as improved.
134     (g)  For all levies other than school district levies,
135assessments of residential real property, as defined by general
136law, which contains nine units or fewer and which is not subject
137to the assessment limitations set forth in subsections (a)
138through (d) shall change only as provided in this subsection.
139     (1)  Assessments subject to this subsection shall be
140changed annually on the date of assessment provided by law; but
141those changes in assessments shall not exceed 3 ten percent
142(10%) of the 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
145general law, including any change of ownership of a legal entity
146that owns the property, such property shall be assessed at just
147value as of the next assessment date. Thereafter, such property
148shall be assessed as provided in this subsection.
149     (4)  Changes, additions, reductions, or improvements to
150such property shall be assessed as provided for by general law;
151however, after the adjustment for any change, addition,
152reduction, or improvement, the property shall be assessed as
153provided in this subsection.
154     (h)  For all levies other than school district levies,
155assessments of real property that is not subject to the
156assessment limitations set forth in subsections (a) through (d)
157and (g) shall change only as provided in this subsection.
158     (1)  Assessments subject to this subsection shall be
159changed annually on the date of assessment provided by law; but
160those changes in assessments shall not exceed 3 ten percent
161(10%) of the assessment for the prior year.
162     (2)  No assessment shall exceed just value.
163     (3)  The legislature must provide that such property shall
164be assessed at just value as of the next assessment date after a
165qualifying improvement, as defined by general law, is made to
166such property. Thereafter, such property shall be assessed as
167provided in this subsection.
168     (4)  The legislature may provide that such property shall
169be assessed at just value as of the next assessment date after a
170change of ownership or control, as defined by general law,
171including any change of ownership of the legal entity that owns
172the property. Thereafter, such property shall be assessed as
173provided in this subsection.
174     (5)  Changes, additions, reductions, or improvements to
175such property shall be assessed as provided for by general law;
176however, after the adjustment for any change, addition,
177reduction, or improvement, the property shall be assessed as
178provided in this subsection.
179     (i)  The legislature, by general law and subject to
180conditions specified therein, may prohibit the consideration of
181the following in the determination of the assessed value of real
182property used for residential purposes:
183     (1)  Any change or improvement made for the purpose of
184improving 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
187properties shall be based upon the current use of the property:
188     a.  Land used predominantly for commercial fishing
189purposes.
190     b.  Land that is accessible to the public and used for
191vessel launches into waters that are navigable.
192     c.  Marinas and drystacks that are open to the public.
193     d.  Water-dependent marine manufacturing facilities,
194commercial fishing facilities, and marine vessel construction
195and repair facilities and their support activities.
196     (2)  The assessment benefit provided by this subsection is
197subject to conditions and limitations and reasonable definitions
198as specified by the legislature by general law.
199     SECTION 6.  Homestead exemptions.-
200     (a)  Every person who has the legal or equitable title to
201real estate and maintains thereon the permanent residence of the
202owner, or another legally or naturally dependent upon the owner,
203shall be exempt from taxation thereon, except assessments for
204special benefits, up to the assessed valuation of $25,000
205twenty-five thousand dollars and, for all levies other than
206school district levies, on the assessed valuation greater than
207$50,000 fifty thousand dollars and up to $75,000 seventy-five
208thousand dollars, upon establishment of right thereto in the
209manner prescribed by law. The real estate may be held by legal
210or equitable title, by the entireties, jointly, in common, as a
211condominium, or indirectly by stock ownership or membership
212representing the owner's or member's proprietary interest in a
213corporation owning a fee or a leasehold initially in excess of
21498 ninety-eight years. The exemption shall not apply with
215respect to any assessment roll until such roll is first
216determined to be in compliance with the provisions of Section 4
217by a state agency designated by general law. This exemption is
218repealed on the effective date of any amendment to this Article
219which provides for the assessment of homestead property at less
220than just value.
221     (b)  Not more than one exemption shall be allowed any
222individual or family unit or with respect to any residential
223unit. No exemption shall exceed the value of the real estate
224assessable to the owner or, in case of ownership through stock
225or membership in a corporation, the value of the proportion
226which the interest in the corporation bears to the assessed
227value of the property.
228     (c)  By general law and subject to conditions specified
229therein, the legislature may provide to renters, who are
230permanent residents, ad valorem tax relief on all ad valorem tax
231levies. Such ad valorem tax relief shall be in the form and
232amount established by general law.
233     (d)  The legislature may, by general law, allow counties or
234municipalities, for the purpose of their respective tax levies
235and subject to the provisions of general law, to grant an
236additional homestead tax exemption not exceeding $50,000 fifty
237thousand dollars to any person who has the legal or equitable
238title to real estate and maintains thereon the permanent
239residence of the owner and who has attained age 65 sixty-five
240and whose household income, as defined by general law, does not
241exceed $20,000 twenty thousand dollars. The general law must
242allow counties and municipalities to grant this additional
243exemption, within the limits prescribed in this subsection, by
244ordinance adopted in the manner prescribed by general law, and
245must provide for the periodic adjustment of the income
246limitation prescribed in this subsection for changes in the cost
247of living.
248     (e)  Each veteran who is age 65 or older who is partially
249or totally permanently disabled shall receive a discount from
250the amount of the ad valorem tax otherwise owed on homestead
251property the veteran owns and resides in if the disability was
252combat related, the veteran was a resident of this state at the
253time of entering the military service of the United States, and
254the veteran was honorably discharged upon separation from
255military service. The discount shall be in a percentage equal to
256the percentage of the veteran's permanent, service-connected
257disability as determined by the United States Department of
258Veterans Affairs. To qualify for the discount granted by this
259subsection, an applicant must submit to the county property
260appraiser, by March 1, proof of residency at the time of
261entering military service, an official letter from the United
262States Department of Veterans Affairs stating the percentage of
263the veteran's service-connected disability and such evidence
264that reasonably identifies the disability as combat related, and
265a copy of the veteran's honorable discharge. If the property
266appraiser denies the request for a discount, the appraiser must
267notify the applicant in writing of the reasons for the denial,
268and the veteran may reapply. The legislature may, by general
269law, waive the annual application requirement in subsequent
270years. This subsection shall take effect December 7, 2006, is
271self-executing, and does not require implementing legislation.
272     (f)  As provided by general law and subject to conditions
273specified therein, every person who establishes the right to
274receive the homestead exemption provided in subsection (a)
275within 1 year after purchasing the homestead property and who
276has not owned property in the previous 3 years to which the
277homestead exemption provided in subsection (a) applied is
278entitled to an additional homestead exemption in an amount equal
279to 50 percent of the homestead property's just value on January
2801 of the year the homestead is established for all levies other
281than school district levies. The additional exemption shall
282apply for a period of 5 years or until the year the property is
283sold, whichever occurs first. The amount of the additional
284exemption shall not exceed $200,000 and shall be reduced in each
285subsequent year by an amount equal to 20 percent of the amount
286of the additional exemption received in the year the homestead
287was established or by an amount equal to the difference between
288the just value of the property and the assessed value of the
289property determined under Section 4(d), whichever is greater.
290Not more than one exemption provided under this subsection shall
291be allowed per homestead property. The additional exemption
292shall apply to property purchased on or after January 1, 2011,
293but shall not be available in the sixth and subsequent years
294after the additional exemption is first received.
295
ARTICLE XII
296
SCHEDULE
297     SECTION 32.  Property tax limit for nonhomestead property.-
298This section and the amendment to Section 4 of Article VII
299reducing the limit on the maximum annual increase in the
300assessed value of nonhomestead property from 10 percent to 3
301percent shall take effect January 1, 2012.
302     SECTION 33.  Additional homestead exemption for new owners
303of homestead property.-This section and the amendment to Section
3046 of Article VII providing for an additional homestead exemption
305for new owners of homestead property who have not owned
306homestead property during the immediately preceding 3 years
307shall take effect January 1, 2012, and the additional homestead
308exemption shall be available for properties purchased on or
309after January 1, 2011.
310     BE IT FURTHER RESOLVED that the following statement be
311placed on the ballot:
312
CONSTITUTIONAL AMENDMENT
313
ARTICLE VII, SECTIONS 4, 6
314
ARTICLE XII, SECTIONS 32, 33
315     PROPERTY ASSESSMENT; NONHOMESTEAD INCREASE LIMITATION
316REDUCTION; NEW HOMESTEAD OWNERS' ADDITIONAL EXEMPTION.-
317     (1)  This amendment reduces from 10 percent to 3 percent
318the limitation on annual increases in assessments of
319nonhomestead real property and provides an effective date of
320January 1, 2012.
321     (2)  This amendment also provides new owners of homestead
322property who have not owned homestead property during the
323immediately preceding 3 years with an additional homestead
324exemption equal to 50 percent of the property's just value in
325the first year for all levies other than school district levies,
326limited to $200,000; applies the additional exemption for the
327shorter of 5 years or the year of sale of the property; reduces
328the amount of the additional exemption in each succeeding year
329for 5 years by the greater of 20 percent of the amount of the
330initial additional exemption or the difference between the just
331value and the assessed value of the property; limits the
332additional exemption to one per homestead property; limits the
333additional exemption to properties purchased on or after January
3341, 2011; prohibits availability of the additional exemption in
335the sixth and subsequent years after the additional exemption is
336granted; and provides for the amendment to take effect January
3371, 2012, and apply to properties purchased on or after January
3381, 2011.


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