Florida Senate - 2018 SB 772 By Senators Grimsley and Passidomo 26-00708B-18 2018772__ 1 A bill to be entitled 2 An act relating to homestead exemption implementation; 3 amending s. 3 of chapter 2017-35, Laws of Florida; 4 requiring the Legislature to appropriate moneys, 5 beginning in a specified fiscal year, to offset 6 reductions in ad valorem tax revenue experienced by 7 rural communities within a rural area of opportunity 8 which result from a specified additional exemption; 9 requiring the moneys appropriated for this purpose to 10 be distributed each fiscal year among rural 11 communities based on each region’s proportion of the 12 total reduction in ad valorem tax revenue; requiring 13 each rural community to apply to the Department of 14 Revenue each year to participate in the distribution 15 of the appropriation and provide documentation 16 supporting the region’s estimated reduction in ad 17 valorem tax revenue; providing requirements for such 18 documentation; providing for calculation of each rural 19 community’s reduction in ad valorem tax revenue; 20 requiring the rural community’s share to revert to the 21 fund from which the appropriation was made if it fails 22 to apply for the distribution; conforming provisions 23 to changes made by the act; providing a contingent 24 effective date. 25 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1. Section 3 of chapter 2017-35, Laws of Florida, 29 is amended to read: 30 31 Section 3. Section 218.125, Florida Statutes, is amended to 32 read: 33 218.125 Offset for tax loss associated with certain 34 constitutional amendments affecting fiscally constrained 35 counties and rural communities within a rural area of 36 opportunity.— 37 (1)(a) Beginning in the 2010-2011 fiscal year, the 38 Legislature shall appropriate moneys to offset the reductions in 39 ad valorem tax revenue experienced by fiscally constrained 40 counties, as defined in s. 218.67(1), which occur as a direct 41 result of the implementation of revisions of ss. 3(f) and 4(b) 42 of Art. VII of the State Constitution which were approved in the 43 general election held in November 2008. The moneys appropriated 44 for this purpose shall be distributed in January of each fiscal 45 year among the fiscally constrained counties based on each 46 county’s proportion of the total reduction in ad valorem tax 47 revenue resulting from the implementation of the revisions. 48 (b) Beginning in the 2019-2020 fiscal year, the Legislature 49 shall appropriate moneys to offset reductions in ad valorem tax 50 revenue experienced by fiscally constrained counties, as defined 51 in s. 218.67(1), and by rural communities within a rural area of 52 opportunity, as those terms are defined in s. 288.0656(2), which 53 is designated by the Governor under s. 288.0656(7)(a), which 54 occur as a direct result of implementation of the revision to s. 55 6(a) of Art. VII of the State Constitution approved in November 56 2018 which authorizes an additional exemption of up to $25,000 57 for all levies other than school district levies. The moneys 58 appropriated for this purpose shall be distributed in January of 59 each fiscal year among the fiscally constrained counties and the 60 rural communities within a rural area of opportunity based on 61 each region’scounty’sproportion of the total reduction in ad 62 valorem tax revenue resulting from the implementation of the 63 revisions. 64 (2) On or before November 15 of each year, each fiscally 65 constrained county and each rural community within a rural area 66 of opportunity shall apply to the Department of Revenue to 67 participate in the distribution of the appropriation and provide 68 documentation supporting the region’scounty’sestimated 69 reduction in ad valorem tax revenue in the form and manner 70 prescribed by the department. The documentation must include an 71 estimate of the reduction in taxable value directly attributable 72 to revisions of Art. VII of the State Constitution for all 73countytaxing jurisdictions within the regioncountyand shall 74 be prepared by the property appraiser in each fiscally 75 constrained county and each rural community within a rural area 76 of opportunity. The documentation must also include thecounty77 millage rates applicable in all such jurisdictions for the 78 current year and the prior year, rolled-back rates determined as 79 provided in s. 200.065 for eachcountytaxing jurisdiction, and 80 maximum millage rates that could have been levied by majority 81 vote pursuant to s. 200.065(5). 82 (a) For purposes of paragraph (1)(a), each fiscally 83 constrained county’s reduction in ad valorem tax revenue shall 84 be calculated as 95 percent of the estimated reduction in 85 taxable value multiplied by the lesser of the 2010 applicable 86 millage rate or the applicable millage rate for each county 87 taxing jurisdiction in the current year. If a fiscally 88 constrained county fails to apply for the distribution, its 89 share shall revert to the fund from which the appropriation was 90 made. 91 (b) For purposes of paragraph (1)(b), the reduction in ad 92 valorem tax revenue for each fiscally constrained county and 93 each rural community within a rural area of opportunitycounty’s94reduction in ad valorem tax revenueshall be calculated as 95 95 percent of the estimated reduction in taxable value multiplied 96 by the lesser of the 2017 applicable millage rate or the 97 applicable millage rate for eachcountytaxing jurisdiction in 98 the current year. If a fiscally constrained county or rural 99 community within a rural area of opportunity fails to apply for 100 the distribution, its share shall revert to the fund from which 101 the appropriation was made. 102 Section 2. This act shall take effect on the effective date 103 of the amendment to the State Constitution proposed by HJR 7105 104 (2017), if such amendment to the State Constitution is approved 105 at the general election held in November 2018, and shall apply 106 to the 2019 tax roll.