Florida Senate - 2012 CS for SJR 314
By the Committee on Judiciary; and Senator Simmons
590-01563-12 2012314c1
1 Senate Joint Resolution
2 A joint resolution proposing amendments to Sections 4
3 and 6 of Article VII and Section 27 of Article XII and
4 the creation of two new Sections in Article XII of the
5 State Constitution to allow the Legislature by general
6 law to prohibit increases in the assessed value of
7 homestead and specified nonhomestead property if the
8 just value of the property decreases, reduce the
9 limitation on annual assessment increases applicable
10 to nonhomestead real property, provide an additional
11 homestead exemption for owners of homestead property,
12 authorize the Legislature to adjust the amount of the
13 exemption, provide that the additional exemption is to
14 be reduced by the difference between the just value
15 and the assessed value, delay a future repeal of
16 provisions limiting annual assessment increases for
17 specified nonhomestead real property, and provide
18 effective dates.
19
20 Be It Resolved by the Legislature of the State of Florida:
21
22 That the following amendments to Sections 4 and 6 of
23 Article VII and Section 27 of Article XII and the creation of
24 two new Sections in Article XII of the State Constitution are
25 agreed to and shall be submitted to the electors of this state
26 for approval or rejection at the next general election or at an
27 earlier special election specifically authorized by law for that
28 purpose:
29 ARTICLE VII
30 FINANCE AND TAXATION
31 SECTION 4. Taxation; assessments.—By general law
32 regulations shall be prescribed which shall secure a just
33 valuation of all property for ad valorem taxation, provided:
34 (a) Agricultural land, land producing high water recharge
35 to Florida’s aquifers, or land used exclusively for
36 noncommercial recreational purposes may be classified by general
37 law and assessed solely on the basis of character or use.
38 (b) As provided by general law and subject to conditions,
39 limitations, and reasonable definitions specified therein, land
40 used for conservation purposes shall be classified by general
41 law and assessed solely on the basis of character or use.
42 (c) Pursuant to general law tangible personal property held
43 for sale as stock in trade and livestock may be valued for
44 taxation at a specified percentage of its value, may be
45 classified for tax purposes, or may be exempted from taxation.
46 (d) All persons entitled to a homestead exemption under
47 Section 6 of this Article shall have their homestead assessed at
48 just value as of January 1 of the year following the effective
49 date of this amendment. This assessment shall change only as
50 provided in this subsection.
51 (1) Assessments subject to this subsection shall change be
52 changed annually on January 1 1st of each year.; but those
53 changes in assessments
54 a. A change in an assessment may shall not exceed the lower
55 of the following:
56 1.a. Three percent (3%) of the assessment for the prior
57 year.
58 2.b. The percent change in the Consumer Price Index for all
59 urban consumers, U.S. City Average, all items 1967=100, or a
60 successor index reports for the preceding calendar year as
61 initially reported by the United States Department of Labor,
62 Bureau of Labor Statistics.
63 b. The legislature may provide by general law that, except
64 for changes, additions, reductions, or improvements to homestead
65 property assessed as provided in paragraph (5), an assessment
66 may not increase if the just value of the property is less than
67 the just value of the property on the preceding January 1.
68 (2) An No assessment may not shall exceed just value.
69 (3) After a any change of ownership, as provided by general
70 law, homestead property shall be assessed at just value as of
71 January 1 of the following year, unless the provisions of
72 paragraph (8) apply. Thereafter, the homestead shall be assessed
73 as provided in this subsection.
74 (4) New homestead property shall be assessed at just value
75 as of January 1 1st of the year following the establishment of
76 the homestead, unless the provisions of paragraph (8) apply.
77 That assessment shall only change only as provided in this
78 subsection.
79 (5) Changes, additions, reductions, or improvements to
80 homestead property shall be assessed as provided for by general
81 law.; provided, However, after the adjustment for any change,
82 addition, reduction, or improvement, the property shall be
83 assessed as provided in this subsection.
84 (6) In the event of a termination of homestead status, the
85 property shall be assessed as provided by general law.
86 (7) The provisions of this subsection amendment are
87 severable. If a provision any of the provisions of this
88 subsection is amendment shall be held unconstitutional by a any
89 court of competent jurisdiction, the decision of the such court
90 does shall not affect or impair any remaining provisions of this
91 subsection amendment.
92 (8)a. A person who establishes a new homestead as of
93 January 1, 2009, or January 1 of any subsequent year and who has
94 received a homestead exemption pursuant to Section 6 of this
95 Article as of January 1 of either of the 2 two years immediately
96 preceding the establishment of a the new homestead is entitled
97 to have the new homestead assessed at less than just value. If
98 this revision is approved in January of 2008, a person who
99 establishes a new homestead as of January 1, 2008, is entitled
100 to have the new homestead assessed at less than just value only
101 if that person received a homestead exemption on January 1,
102 2007. The assessed value of the newly established homestead
103 shall be determined as follows:
104 1. If the just value of the new homestead is greater than
105 or equal to the just value of the prior homestead as of January
106 1 of the year in which the prior homestead was abandoned, the
107 assessed value of the new homestead shall be the just value of
108 the new homestead minus an amount equal to the lesser of
109 $500,000 or the difference between the just value and the
110 assessed value of the prior homestead as of January 1 of the
111 year in which the prior homestead was abandoned. Thereafter, the
112 homestead shall be assessed as provided in this subsection.
113 2. If the just value of the new homestead is less than the
114 just value of the prior homestead as of January 1 of the year in
115 which the prior homestead was abandoned, the assessed value of
116 the new homestead shall be equal to the just value of the new
117 homestead divided by the just value of the prior homestead and
118 multiplied by the assessed value of the prior homestead.
119 However, if the difference between the just value of the new
120 homestead and the assessed value of the new homestead calculated
121 pursuant to this sub-subparagraph is greater than $500,000, the
122 assessed value of the new homestead shall be increased so that
123 the difference between the just value and the assessed value
124 equals $500,000. Thereafter, the homestead shall be assessed as
125 provided in this subsection.
126 b. By general law and subject to conditions specified
127 therein, the legislature shall provide for application of this
128 paragraph to property owned by more than one person.
129 (e) The legislature may, by general law, for assessment
130 purposes and subject to the provisions of this subsection, allow
131 counties and municipalities to authorize by ordinance that
132 historic property may be assessed solely on the basis of
133 character or use. Such character or use assessment shall apply
134 only to the jurisdiction adopting the ordinance. The
135 requirements for eligible properties must be specified by
136 general law.
137 (f) A county may, in the manner prescribed by general law,
138 provide for a reduction in the assessed value of homestead
139 property to the extent of any increase in the assessed value of
140 that property which results from the construction or
141 reconstruction of the property for the purpose of providing
142 living quarters for one or more natural or adoptive grandparents
143 or parents of the owner of the property or of the owner’s spouse
144 if at least one of the grandparents or parents for whom the
145 living quarters are provided is 62 years of age or older. Such a
146 reduction may not exceed the lesser of the following:
147 (1) The increase in assessed value resulting from
148 construction or reconstruction of the property.
149 (2) Twenty percent of the total assessed value of the
150 property as improved.
151 (g) For all levies other than school district levies,
152 assessments of residential real property, as defined by general
153 law, which contains nine units or fewer and which is not subject
154 to the assessment limitations set forth in subsections (a)
155 through (d) shall change only as provided in this subsection.
156 (1) Assessments subject to this subsection shall be changed
157 annually on the date of assessment provided by law. However,;
158 but those changes in assessments may shall not exceed 7 ten
159 percent (10%) of the assessment for the prior year. The
160 legislature may provide by general law that, except for changes,
161 additions, reductions, or improvements to property assessed as
162 provided in paragraph (4), an assessment may not increase if the
163 just value of the property is less than the just value of the
164 property on the preceding date of assessment provided by law.
165 (2) An No assessment may not shall exceed just value.
166 (3) After a change of ownership or control, as defined by
167 general law, including any change of ownership of a legal entity
168 that owns the property, such property shall be assessed at just
169 value as of the next assessment date. Thereafter, such property
170 shall be assessed as provided in this subsection.
171 (4) Changes, additions, reductions, or improvements to such
172 property shall be assessed as provided for by general law.;
173 However, after the adjustment for any change, addition,
174 reduction, or improvement, the property shall be assessed as
175 provided in this subsection.
176 (h) For all levies other than school district levies,
177 assessments of real property that is not subject to the
178 assessment limitations set forth in subsections (a) through (d)
179 and (g) shall change only as provided in this subsection.
180 (1) Assessments subject to this subsection shall be changed
181 annually on the date of assessment provided by law. However,;
182 but those changes in assessments may shall not exceed 7 ten
183 percent (10%) of the assessment for the prior year. The
184 legislature may provide by general law that, except for changes,
185 additions, reductions, or improvements to property assessed as
186 provided in paragraph (5), an assessment may not increase if the
187 just value of the property is less than the just value of the
188 property on the preceding date of assessment provided by law.
189 (2) An No assessment may not shall exceed just value.
190 (3) The legislature must provide that such property shall
191 be assessed at just value as of the next assessment date after a
192 qualifying improvement, as defined by general law, is made to
193 such property. Thereafter, such property shall be assessed as
194 provided in this subsection.
195 (4) The legislature may provide that such property shall be
196 assessed at just value as of the next assessment date after a
197 change of ownership or control, as defined by general law,
198 including any change of ownership of the legal entity that owns
199 the property. Thereafter, such property shall be assessed as
200 provided in this subsection.
201 (5) Changes, additions, reductions, or improvements to such
202 property shall be assessed as provided for by general law.;
203 However, after the adjustment for any change, addition,
204 reduction, or improvement, the property shall be assessed as
205 provided in this subsection.
206 (i) The legislature, by general law and subject to
207 conditions specified therein, may prohibit the consideration of
208 the following in the determination of the assessed value of real
209 property used for residential purposes:
210 (1) Any change or improvement made for the purpose of
211 improving the property’s resistance to wind damage.
212 (2) The installation of a renewable energy source device.
213 (j)(1) The assessment of the following working waterfront
214 properties shall be based upon the current use of the property:
215 a. Land used predominantly for commercial fishing purposes.
216 b. Land that is accessible to the public and used for
217 vessel launches into waters that are navigable.
218 c. Marinas and drystacks that are open to the public.
219 d. Water-dependent marine manufacturing facilities,
220 commercial fishing facilities, and marine vessel construction
221 and repair facilities and their support activities.
222 (2) The assessment benefit provided by this subsection is
223 subject to conditions and limitations and reasonable definitions
224 as specified by the legislature by general law.
225 SECTION 6. Homestead exemptions.—
226 (a) Every person who has the legal or equitable title to
227 real estate and maintains thereon the permanent residence of the
228 owner, or another legally or naturally dependent upon the owner,
229 shall be exempt from taxation thereon, except assessments for
230 special benefits, up to the assessed valuation of $25,000
231 twenty-five thousand dollars and, for all levies other than
232 school district levies, on the assessed valuation greater than
233 $50,000 fifty thousand dollars and up to $75,000 seventy-five
234 thousand dollars, upon establishment of right thereto in the
235 manner prescribed by law. The real estate may be held by legal
236 or equitable title, by the entireties, jointly, in common, as a
237 condominium, or indirectly by stock ownership or membership
238 representing the owner’s or member’s proprietary interest in a
239 corporation owning a fee or a leasehold initially in excess of
240 98 ninety-eight years. The exemption shall not apply with
241 respect to any assessment roll until such roll is first
242 determined to be in compliance with the provisions of Section 4
243 by a state agency designated by general law. This exemption is
244 repealed on the effective date of any amendment to this Article
245 which provides for the assessment of homestead property at less
246 than just value.
247 (b) Not more than one exemption under subsection (a) and
248 one exemption under subsection (f) shall be allowed any
249 individual or family unit or with respect to any residential
250 unit. No exemption shall exceed the value of the real estate
251 assessable to the owner or, in case of ownership through stock
252 or membership in a corporation, the value of the proportion
253 which the interest in the corporation bears to the assessed
254 value of the property.
255 (c) By general law and subject to conditions specified
256 therein, the legislature may provide to renters, who are
257 permanent residents, ad valorem tax relief on all ad valorem tax
258 levies. Such ad valorem tax relief shall be in the form and
259 amount established by general law.
260 (d) The legislature may, by general law, allow counties or
261 municipalities, for the purpose of their respective tax levies
262 and subject to the provisions of general law, to grant an
263 additional homestead tax exemption not exceeding $50,000 fifty
264 thousand dollars to any person who has the legal or equitable
265 title to real estate and maintains thereon the permanent
266 residence of the owner and who has attained age 65 sixty-five
267 and whose household income, as defined by general law, does not
268 exceed $20,000 twenty thousand dollars. The general law must
269 allow counties and municipalities to grant this additional
270 exemption, within the limits prescribed in this subsection, by
271 ordinance adopted in the manner prescribed by general law, and
272 must provide for the periodic adjustment of the income
273 limitation prescribed in this subsection for changes in the cost
274 of living.
275 (e) Each veteran who is age 65 or older who is partially or
276 totally permanently disabled shall receive a discount from the
277 amount of the ad valorem tax otherwise owed on homestead
278 property the veteran owns and resides in if the disability was
279 combat related, the veteran was a resident of this state at the
280 time of entering the military service of the United States, and
281 the veteran was honorably discharged upon separation from
282 military service. The discount shall be in a percentage equal to
283 the percentage of the veteran’s permanent, service-connected
284 disability as determined by the United States Department of
285 Veterans Affairs. To qualify for the discount granted by this
286 subsection, an applicant must submit to the county property
287 appraiser, by March 1, proof of residency at the time of
288 entering military service, an official letter from the United
289 States Department of Veterans Affairs stating the percentage of
290 the veteran’s service-connected disability and such evidence
291 that reasonably identifies the disability as combat related, and
292 a copy of the veteran’s honorable discharge. If the property
293 appraiser denies the request for a discount, the appraiser must
294 notify the applicant in writing of the reasons for the denial,
295 and the veteran may reapply. The legislature may, by general
296 law, waive the annual application requirement in subsequent
297 years. This subsection shall take effect December 7, 2006, is
298 self-executing, and does not require implementing legislation.
299 (f) Every person who has established the right to receive
300 the homestead exemption provided in subsection (a) is entitled
301 to an additional homestead exemption for all levies other than
302 school district levies in an amount equal to 30 percent of the
303 homestead property’s just value in excess of $75,000 but less
304 than or equal to $200,000, plus 15 percent of the homestead
305 property’s just value in excess of $200,000 but less than or
306 equal to $400,000. The value of the additional homestead
307 exemption shall be reduced by the difference between the just
308 value of the property and the assessed value of the property
309 determined under Section 4(d). By general law, the legislature
310 may adjust the percent of just value or the maximum and minimum
311 levels of just value used to calculate the additional homestead
312 exemption, but may not reduce the value of the additional
313 exemption below the value established in this subsection.
314 ARTICLE XII
315 SCHEDULE
316 SECTION 27. Property tax exemptions and limitations on
317 property tax assessments.—The amendments to Sections 3, 4, and 6
318 of Article VII, providing a $25,000 exemption for tangible
319 personal property, providing an additional $25,000 homestead
320 exemption, authorizing transfer of the accrued benefit from the
321 limitations on the assessment of homestead property, and this
322 section, if submitted to the electors of this state for approval
323 or rejection at a special election authorized by law to be held
324 on January 29, 2008, shall take effect upon approval by the
325 electors and shall operate retroactively to January 1, 2008, or,
326 if submitted to the electors of this state for approval or
327 rejection at the next general election, shall take effect
328 January 1 of the year following such general election. The
329 amendments to Section 4 of Article VII creating subsections (g)
330 (f) and (h) (g) of that section, creating a limitation on annual
331 assessment increases for specified real property, shall take
332 effect upon approval of the electors and shall first limit
333 assessments beginning January 1, 2009, if approved at a special
334 election held on January 29, 2008, or shall first limit
335 assessments beginning January 1, 2010, if approved at the
336 general election held in November of 2008. Subsections (g) (f)
337 and (h) (g) of Section 4 of Article VII are repealed effective
338 January 1, 2023 2019; however, the legislature shall by joint
339 resolution propose an amendment abrogating the repeal of
340 subsections (g) (f) and (h) (g), which shall be submitted to the
341 electors of this state for approval or rejection at the general
342 election of 2022 2018 and, if approved, shall take effect
343 January 1, 2023 2019.
344 Property assessments.—This section and the amendments to
345 Section 4 of Article VII authorizing the legislature to prohibit
346 increases in the assessed value of homestead property that has a
347 declining just value and reducing the limit on the maximum
348 annual increase in the assessed value of nonhomestead property
349 from 10 percent to 7 percent shall take effect January 1, 2013.
350 Additional homestead exemption.—This section and the
351 amendment to Section 6 of Article VII providing for an
352 additional homestead exemption shall take effect January 1,
353 2013.
354 BE IT FURTHER RESOLVED that the following statement be
355 placed on the ballot:
356 CONSTITUTIONAL AMENDMENT
357 ARTICLE VII, SECTIONS 4, 6
358 ARTICLE XII, SECTION 27
359 PROPERTY TAX LIMITATIONS; ADDITIONAL HOMESTEAD EXEMPTION.—
360 (1) In certain circumstances, the law requires the assessed
361 value of real property to increase when the just value of the
362 property is greater than its assessed value. This amendment
363 authorizes the Legislature, by general law, to prohibit such
364 increase in the assessment of property whose just value is less
365 than its just value on the preceding assessment date. This
366 amendment takes effect January 1, 2013.
367 (2) The State Constitution generally limits increases in
368 the assessed value of nonhomestead real property for property
369 tax purposes to 10 percent annually. This amendment reduces that
370 limit to 7 percent. This amendment takes effect January 1, 2013.
371 (3) This amendment also provides owners of homestead
372 property an additional homestead exemption for all levies other
373 than school district levies in an amount equal to 30 percent of
374 the homestead property’s just value between $75,000 and
375 $200,000, plus 15 percent of the homestead property’s just value
376 between $200,000 and $400,000. The Legislature may adjust the
377 amount of the additional homestead exemption but may not reduce
378 it below what is provided in this amendment. The value of the
379 additional homestead exemption shall be reduced by the
380 difference between the just value of the property and its
381 assessed value. This amendment takes effect January 1, 2013.
382 (4) The State Constitution provides for the automatic
383 repeal of the provisions that provide a general limit on annual
384 increases in the assessed value of nonhomestead properties for
385 the purposes of property taxes. This amendment delays until 2023
386 the repeal of those provisions, which is currently scheduled to
387 occur in 2019.