| 1 | House Joint Resolution |
| 2 | A joint resolution proposing an amendment to Section 4 of |
| 3 | Article VII of the State Constitution to authorize |
| 4 | counties and municipalities to freeze the assessed value |
| 5 | of the homesteads of certain low-income senior citizens. |
| 6 |
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| 7 | Be It Resolved by the Legislature of the State of Florida: |
| 8 |
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| 9 | That the following amendment to Section 4 of Article VII of |
| 10 | the State Constitution is agreed to and shall be submitted to |
| 11 | the electors of this state for approval or rejection at the next |
| 12 | general election or at an earlier special election specifically |
| 13 | authorized by law for that purpose: |
| 14 | ARTICLE VII |
| 15 | FINANCE AND TAXATION |
| 16 | SECTION 4. Taxation; assessments.-By general law |
| 17 | regulations shall be prescribed which shall secure a just |
| 18 | valuation of all property for ad valorem taxation, provided: |
| 19 | (a) Agricultural land, land producing high water recharge |
| 20 | to Florida's aquifers, or land used exclusively for |
| 21 | noncommercial recreational purposes may be classified by general |
| 22 | law and assessed solely on the basis of character or use. |
| 23 | (b) As provided by general law and subject to conditions, |
| 24 | limitations, and reasonable definitions specified therein, land |
| 25 | used for conservation purposes shall be classified by general |
| 26 | law and assessed solely on the basis of character or use. |
| 27 | (c) Pursuant to general law tangible personal property |
| 28 | held for sale as stock in trade and livestock may be valued for |
| 29 | taxation at a specified percentage of its value, may be |
| 30 | classified for tax purposes, or may be exempted from taxation. |
| 31 | (d) All persons entitled to a homestead exemption under |
| 32 | Section 6 of this Article shall have their homestead assessed at |
| 33 | just value as of January 1 of the year following the effective |
| 34 | date of this amendment. This assessment shall change only as |
| 35 | provided in this subsection. |
| 36 | (1) Except as provided in paragraph (2), assessments |
| 37 | subject to this subsection shall be changed annually on January |
| 38 | 1 1st of each year; but those changes in assessments shall not |
| 39 | exceed the lower of the following: |
| 40 | a. Three percent (3%) of the assessment for the prior |
| 41 | year. |
| 42 | b. The percent change in the Consumer Price Index for all |
| 43 | urban consumers, U.S. City Average, all items 1967=100, or |
| 44 | successor reports for the preceding calendar year as initially |
| 45 | reported by the United States Department of Labor, Bureau of |
| 46 | Labor Statistics. |
| 47 | (2) An assessment subject to the additional homestead tax |
| 48 | exemption under Section 6(d) shall be changed annually on |
| 49 | January 1 of each year. However, a county or municipality may |
| 50 | choose to limit its assessment of the value of the property |
| 51 | subject to the additional exemption to the assessed value of the |
| 52 | property in the prior year if the just value of the property is |
| 53 | equal to or less than one hundred fifty percent of the average |
| 54 | just value of residential property within the county. The state |
| 55 | agency designated by law shall calculate the average just value |
| 56 | of residential property within each county and supply that |
| 57 | information to each property appraiser. The calculation shall be |
| 58 | based on the final tax roll of each county for the prior year. |
| 59 | (3)(2) No assessment shall exceed just value. |
| 60 | (4)(3) After any change of ownership, as provided by |
| 61 | general law, homestead property shall be assessed at just value |
| 62 | as of January 1 of the following year, unless the provisions of |
| 63 | paragraph (9) (8) apply. Thereafter, the homestead shall be |
| 64 | assessed as provided in this subsection. |
| 65 | (5)(4) New homestead property shall be assessed at just |
| 66 | value as of January 1 1st of the year following the |
| 67 | establishment of the homestead, unless the provisions of |
| 68 | paragraph (9) (8) apply. That assessment shall only change as |
| 69 | provided in this subsection. |
| 70 | (6)(5) Changes, additions, reductions, or improvements to |
| 71 | homestead property shall be assessed as provided for by general |
| 72 | law; provided, however, after the adjustment for any change, |
| 73 | addition, reduction, or improvement, the property shall be |
| 74 | assessed as provided in this subsection. |
| 75 | (7)(6) In the event of a termination of homestead status, |
| 76 | the property shall be assessed as provided by general law. |
| 77 | (8)(7) The provisions of this amendment are severable. If |
| 78 | any of the provisions of this amendment shall be held |
| 79 | unconstitutional by any court of competent jurisdiction, the |
| 80 | decision of such court shall not affect or impair any remaining |
| 81 | provisions of this amendment. |
| 82 | (9)(8)a. A person who establishes a new homestead as of |
| 83 | January 1, 2009, or January 1 of any subsequent year and who has |
| 84 | received a homestead exemption pursuant to Section 6 of this |
| 85 | Article as of January 1 of either of the two years immediately |
| 86 | preceding the establishment of the new homestead is entitled to |
| 87 | have the new homestead assessed at less than just value. If this |
| 88 | revision is approved in January of 2008, a person who |
| 89 | establishes a new homestead as of January 1, 2008, is entitled |
| 90 | to have the new homestead assessed at less than just value only |
| 91 | if that person received a homestead exemption on January 1, |
| 92 | 2007. The assessed value of the newly established homestead |
| 93 | shall be determined as follows: |
| 94 | 1. If the just value of the new homestead is greater than |
| 95 | or equal to the just value of the prior homestead as of January |
| 96 | 1 of the year in which the prior homestead was abandoned, the |
| 97 | assessed value of the new homestead shall be the just value of |
| 98 | the new homestead minus an amount equal to the lesser of |
| 99 | $500,000 or the difference between the just value and the |
| 100 | assessed value of the prior homestead as of January 1 of the |
| 101 | year in which the prior homestead was abandoned. Thereafter, the |
| 102 | homestead shall be assessed as provided in this subsection. |
| 103 | 2. If the just value of the new homestead is less than the |
| 104 | just value of the prior homestead as of January 1 of the year in |
| 105 | which the prior homestead was abandoned, the assessed value of |
| 106 | the new homestead shall be equal to the just value of the new |
| 107 | homestead divided by the just value of the prior homestead and |
| 108 | multiplied by the assessed value of the prior homestead. |
| 109 | However, if the difference between the just value of the new |
| 110 | homestead and the assessed value of the new homestead calculated |
| 111 | pursuant to this sub-subparagraph is greater than $500,000, the |
| 112 | assessed value of the new homestead shall be increased so that |
| 113 | the difference between the just value and the assessed value |
| 114 | equals $500,000. Thereafter, the homestead shall be assessed as |
| 115 | provided in this subsection. |
| 116 | b. By general law and subject to conditions specified |
| 117 | therein, the Legislature shall provide for application of this |
| 118 | paragraph to property owned by more than one person. |
| 119 | (e) The legislature may, by general law, for assessment |
| 120 | purposes and subject to the provisions of this subsection, allow |
| 121 | counties and municipalities to authorize by ordinance that |
| 122 | historic property may be assessed solely on the basis of |
| 123 | character or use. Such character or use assessment shall apply |
| 124 | only to the jurisdiction adopting the ordinance. The |
| 125 | requirements for eligible properties must be specified by |
| 126 | general law. |
| 127 | (f) A county may, in the manner prescribed by general law, |
| 128 | provide for a reduction in the assessed value of homestead |
| 129 | property to the extent of any increase in the assessed value of |
| 130 | that property which results from the construction or |
| 131 | reconstruction of the property for the purpose of providing |
| 132 | living quarters for one or more natural or adoptive grandparents |
| 133 | or parents of the owner of the property or of the owner's spouse |
| 134 | if at least one of the grandparents or parents for whom the |
| 135 | living quarters are provided is 62 years of age or older. Such a |
| 136 | reduction may not exceed the lesser of the following: |
| 137 | (1) The increase in assessed value resulting from |
| 138 | construction or reconstruction of the property. |
| 139 | (2) Twenty percent of the total assessed value of the |
| 140 | property as improved. |
| 141 | (g) For all levies other than school district levies, |
| 142 | assessments of residential real property, as defined by general |
| 143 | law, which contains nine units or fewer and which is not subject |
| 144 | to the assessment limitations set forth in subsections (a) |
| 145 | through (d) shall change only as provided in this subsection. |
| 146 | (1) Assessments subject to this subsection shall be |
| 147 | changed annually on the date of assessment provided by law; but |
| 148 | those changes in assessments shall not exceed ten percent (10%) |
| 149 | of the assessment for the prior year. |
| 150 | (2) No assessment shall exceed just value. |
| 151 | (3) After a change of ownership or control, as defined by |
| 152 | general law, including any change of ownership of a legal entity |
| 153 | that owns the property, such property shall be assessed at just |
| 154 | value as of the next assessment date. Thereafter, such property |
| 155 | shall be assessed as provided in this subsection. |
| 156 | (4) Changes, additions, reductions, or improvements to |
| 157 | such property shall be assessed as provided for by general law; |
| 158 | however, after the adjustment for any change, addition, |
| 159 | reduction, or improvement, the property shall be assessed as |
| 160 | provided in this subsection. |
| 161 | (h) For all levies other than school district levies, |
| 162 | assessments of real property that is not subject to the |
| 163 | assessment limitations set forth in subsections (a) through (d) |
| 164 | and (g) shall change only as provided in this subsection. |
| 165 | (1) Assessments subject to this subsection shall be |
| 166 | changed annually on the date of assessment provided by law; but |
| 167 | those changes in assessments shall not exceed ten percent (10%) |
| 168 | of the assessment for the prior year. |
| 169 | (2) No assessment shall exceed just value. |
| 170 | (3) The legislature must provide that such property shall |
| 171 | be assessed at just value as of the next assessment date after a |
| 172 | qualifying improvement, as defined by general law, is made to |
| 173 | such property. Thereafter, such property shall be assessed as |
| 174 | provided in this subsection. |
| 175 | (4) The legislature may provide that such property shall |
| 176 | be assessed at just value as of the next assessment date after a |
| 177 | change of ownership or control, as defined by general law, |
| 178 | including any change of ownership of the legal entity that owns |
| 179 | the property. Thereafter, such property shall be assessed as |
| 180 | provided in this subsection. |
| 181 | (5) Changes, additions, reductions, or improvements to |
| 182 | such property shall be assessed as provided for by general law; |
| 183 | however, after the adjustment for any change, addition, |
| 184 | reduction, or improvement, the property shall be assessed as |
| 185 | provided in this subsection. |
| 186 | (i) The legislature, by general law and subject to |
| 187 | conditions specified therein, may prohibit the consideration of |
| 188 | the following in the determination of the assessed value of real |
| 189 | property used for residential purposes: |
| 190 | (1) Any change or improvement made for the purpose of |
| 191 | improving the property's resistance to wind damage. |
| 192 | (2) The installation of a renewable energy source device. |
| 193 | (j)(1) The assessment of the following working waterfront |
| 194 | properties shall be based upon the current use of the property: |
| 195 | a. Land used predominantly for commercial fishing |
| 196 | purposes. |
| 197 | b. Land that is accessible to the public and used for |
| 198 | vessel launches into waters that are navigable. |
| 199 | c. Marinas and drystacks that are open to the public. |
| 200 | d. Water-dependent marine manufacturing facilities, |
| 201 | commercial fishing facilities, and marine vessel construction |
| 202 | and repair facilities and their support activities. |
| 203 | (2) The assessment benefit provided by this subsection is |
| 204 | subject to conditions and limitations and reasonable definitions |
| 205 | as specified by the legislature by general law. |
| 206 | BE IT FURTHER RESOLVED that the following statement be |
| 207 | placed on the ballot: |
| 208 | CONSTITUTIONAL AMENDMENT |
| 209 | ARTICLE VII, SECTION 4 |
| 210 | ASSESSMENT OF HOMESTEAD PROPERTY OWNED BY LOW-INCOME SENIOR |
| 211 | CITIZENS.-Currently, counties and municipalities may grant an |
| 212 | additional homestead exemption to a person who is 65 years of |
| 213 | age or older and who has a household income of $20,000 or less. |
| 214 | This proposed amendment to the State Constitution authorizes |
| 215 | counties and municipalities to grant another ad valorem tax |
| 216 | benefit to those individuals. Specifically, the amendment |
| 217 | authorizes counties and municipalities to freeze the assessed |
| 218 | value of the homesteads of persons receiving the additional |
| 219 | exemption at the assessed value of the property in the previous |
| 220 | year if the just value of the property is equal to or less than |
| 221 | 150 percent of the average just value of residential property in |
| 222 | the county. As such, if authorized by a county or municipality, |
| 223 | these individuals will not be required to pay more ad valorem |
| 224 | taxes than they paid in the previous year as the result of an |
| 225 | increase in the value of their homesteads. |