Florida Senate - 2018 SJR 974 By Senator Brandes 24-01172-18 2018974__ 1 Senate Joint Resolution 2 A joint resolution proposing amendments to Sections 3 3 and 4 of Article VII and the creation of a new section 4 in Article XII of the State Constitution to authorize 5 the Legislature, by general law, to exempt certain 6 permanently installed standby generators from the 7 tangible personal property tax and prohibit the 8 consideration of such generators in determining the 9 assessed value of real property, and to provide an 10 effective date. 11 12 Be It Resolved by the Legislature of the State of Florida: 13 14 That the following amendments to Sections 3 and 4 of 15 Article VII and the creation of a new section in Article XII of 16 the State Constitution are agreed to and shall be submitted to 17 the electors of this state for approval or rejection at the next 18 general election or at an earlier special election specifically 19 authorized by law for that purpose: 20 ARTICLE VII 21 FINANCE AND TAXATION 22 SECTION 3. Taxes; exemptions.— 23 (a) All property owned by a municipality and used 24 exclusively by it for municipal or public purposes shall be 25 exempt from taxation. A municipality, owning property outside 26 the municipality, may be required by general law to make payment 27 to the taxing unit in which the property is located. Such 28 portions of property as are used predominantly for educational, 29 literary, scientific, religious or charitable purposes may be 30 exempted by general law from taxation. 31 (b) There shall be exempt from taxation, cumulatively, to 32 every head of a family residing in this state, household goods 33 and personal effects to the value fixed by general law, not less 34 than one thousand dollars, and to every widow or widower or 35 person who is blind or totally and permanently disabled, 36 property to the value fixed by general law not less than five 37 hundred dollars. 38 (c) Any county or municipality may, for the purpose of its 39 respective tax levy and subject to the provisions of this 40 subsection and general law, grant community and economic 41 development ad valorem tax exemptions to new businesses and 42 expansions of existing businesses, as defined by general law. 43 Such an exemption may be granted only by ordinance of the county 44 or municipality, and only after the electors of the county or 45 municipality voting on such question in a referendum authorize 46 the county or municipality to adopt such ordinances. An 47 exemption so granted shall apply to improvements to real 48 property made by or for the use of a new business and 49 improvements to real property related to the expansion of an 50 existing business and shall also apply to tangible personal 51 property of such new business and tangible personal property 52 related to the expansion of an existing business. The amount or 53 limits of the amount of such exemption shall be specified by 54 general law. The period of time for which such exemption may be 55 granted to a new business or expansion of an existing business 56 shall be determined by general law. The authority to grant such 57 exemption shall expire ten years from the date of approval by 58 the electors of the county or municipality, and may be renewable 59 by referendum as provided by general law. 60 (d) Any county or municipality may, for the purpose of its 61 respective tax levy and subject to the provisions of this 62 subsection and general law, grant historic preservation ad 63 valorem tax exemptions to owners of historic properties. This 64 exemption may be granted only by ordinance of the county or 65 municipality. The amount or limits of the amount of this 66 exemption and the requirements for eligible properties must be 67 specified by general law. The period of time for which this 68 exemption may be granted to a property owner shall be determined 69 by general law. 70 (e) By general law and subject to conditions specified 71 therein: 72 (1) Twenty-five thousand dollars of the assessed value of 73 property subject to tangible personal property tax shall be 74 exempt from ad valorem taxation. 75 (2) The assessed value of solar devices or renewable energy 76 source devices subject to tangible personal property tax may be 77 exempt from ad valorem taxation, subject to limitations provided 78 by general law. 79 (3) A permanently installed standby generator that is 80 subject to tangible personal property tax may be exempted from 81 ad valorem taxation if the generator is intended for use when 82 electric service is interrupted. 83 (f) There shall be granted an ad valorem tax exemption for 84 real property dedicated in perpetuity for conservation purposes, 85 including real property encumbered by perpetual conservation 86 easements or by other perpetual conservation protections, as 87 defined by general law. 88 (g) By general law and subject to the conditions specified 89 therein, each person who receives a homestead exemption as 90 provided in section 6 of this article; who was a member of the 91 United States military or military reserves, the United States 92 Coast Guard or its reserves, or the Florida National Guard; and 93 who was deployed during the preceding calendar year on active 94 duty outside the continental United States, Alaska, or Hawaii in 95 support of military operations designated by the legislature 96 shall receive an additional exemption equal to a percentage of 97 the taxable value of his or her homestead property. The 98 applicable percentage shall be calculated as the number of days 99 during the preceding calendar year the person was deployed on 100 active duty outside the continental United States, Alaska, or 101 Hawaii in support of military operations designated by the 102 legislature divided by the number of days in that year. 103 SECTION 4. Taxation; assessments.—By general law 104 regulations shall be prescribed which shall secure a just 105 valuation of all property for ad valorem taxation, provided: 106 (a) Agricultural land, land producing high water recharge 107 to Florida’s aquifers, or land used exclusively for 108 noncommercial recreational purposes may be classified by general 109 law and assessed solely on the basis of character or use. 110 (b) As provided by general law and subject to conditions, 111 limitations, and reasonable definitions specified therein, land 112 used for conservation purposes shall be classified by general 113 law and assessed solely on the basis of character or use. 114 (c) Pursuant to general law tangible personal property held 115 for sale as stock in trade and livestock may be valued for 116 taxation at a specified percentage of its value, may be 117 classified for tax purposes, or may be exempted from taxation. 118 (d) All persons entitled to a homestead exemption under 119 Section 6 of this Article shall have their homestead assessed at 120 just value as of January 1 of the year following the effective 121 date of this amendment. This assessment shall change only as 122 provided in this subsection. 123 (1) Assessments subject to this subsection shall be changed 124 annually on January 1st of each year; but those changes in 125 assessments shall not exceed the lower of the following: 126 a. Three percent (3%) of the assessment for the prior year. 127 b. The percent change in the Consumer Price Index for all 128 urban consumers, U.S. City Average, all items 1967=100, or 129 successor reports for the preceding calendar year as initially 130 reported by the United States Department of Labor, Bureau of 131 Labor Statistics. 132 (2) No assessment shall exceed just value. 133 (3) After any change of ownership, as provided by general 134 law, homestead property shall be assessed at just value as of 135 January 1 of the following year, unless the provisions of 136 paragraph (8) apply. Thereafter, the homestead shall be assessed 137 as provided in this subsection. 138 (4) New homestead property shall be assessed at just value 139 as of January 1st of the year following the establishment of the 140 homestead, unless the provisions of paragraph (8) apply. That 141 assessment shall only change as provided in this subsection. 142 (5) Changes, additions, reductions, or improvements to 143 homestead property shall be assessed as provided for by general 144 law; provided, however, after the adjustment for any change, 145 addition, reduction, or improvement, the property shall be 146 assessed as provided in this subsection. 147 (6) In the event of a termination of homestead status, the 148 property shall be assessed as provided by general law. 149 (7) The provisions of this amendment are severable. If any 150 of the provisions of this amendment shall be held 151 unconstitutional by any court of competent jurisdiction, the 152 decision of such court shall not affect or impair any remaining 153 provisions of this amendment. 154 (8)a. A person who establishes a new homestead as of 155 January 1, 2009, or January 1 of any subsequent year and who has 156 received a homestead exemption pursuant to Section 6 of this 157 Article as of January 1 of either of the two years immediately 158 preceding the establishment of the new homestead is entitled to 159 have the new homestead assessed at less than just value. If this 160 revision is approved in January of 2008, a person who 161 establishes a new homestead as of January 1, 2008, is entitled 162 to have the new homestead assessed at less than just value only 163 if that person received a homestead exemption on January 1, 164 2007. The assessed value of the newly established homestead 165 shall be determined as follows: 166 1. If the just value of the new homestead is greater than 167 or equal to the just value of the prior homestead as of January 168 1 of the year in which the prior homestead was abandoned, the 169 assessed value of the new homestead shall be the just value of 170 the new homestead minus an amount equal to the lesser of 171 $500,000 or the difference between the just value and the 172 assessed value of the prior homestead as of January 1 of the 173 year in which the prior homestead was abandoned. Thereafter, the 174 homestead shall be assessed as provided in this subsection. 175 2. If the just value of the new homestead is less than the 176 just value of the prior homestead as of January 1 of the year in 177 which the prior homestead was abandoned, the assessed value of 178 the new homestead shall be equal to the just value of the new 179 homestead divided by the just value of the prior homestead and 180 multiplied by the assessed value of the prior homestead. 181 However, if the difference between the just value of the new 182 homestead and the assessed value of the new homestead calculated 183 pursuant to this sub-subparagraph is greater than $500,000, the 184 assessed value of the new homestead shall be increased so that 185 the difference between the just value and the assessed value 186 equals $500,000. Thereafter, the homestead shall be assessed as 187 provided in this subsection. 188 b. By general law and subject to conditions specified 189 therein, the legislature shall provide for application of this 190 paragraph to property owned by more than one person. 191 (e) The legislature may, by general law, for assessment 192 purposes and subject to the provisions of this subsection, allow 193 counties and municipalities to authorize by ordinance that 194 historic property may be assessed solely on the basis of 195 character or use. Such character or use assessment shall apply 196 only to the jurisdiction adopting the ordinance. The 197 requirements for eligible properties must be specified by 198 general law. 199 (f) A county may, in the manner prescribed by general law, 200 provide for a reduction in the assessed value of homestead 201 property to the extent of any increase in the assessed value of 202 that property which results from the construction or 203 reconstruction of the property for the purpose of providing 204 living quarters for one or more natural or adoptive grandparents 205 or parents of the owner of the property or of the owner’s spouse 206 if at least one of the grandparents or parents for whom the 207 living quarters are provided is 62 years of age or older. Such a 208 reduction may not exceed the lesser of the following: 209 (1) The increase in assessed value resulting from 210 construction or reconstruction of the property. 211 (2) Twenty percent of the total assessed value of the 212 property as improved. 213 (g) For all levies other than school district levies, 214 assessments of residential real property, as defined by general 215 law, which contains nine units or fewer and which is not subject 216 to the assessment limitations set forth in subsections (a) 217 through (d) shall change only as provided in this subsection. 218 (1) Assessments subject to this subsection shall be changed 219 annually on the date of assessment provided by law; but those 220 changes in assessments shall not exceed ten percent (10%) of the 221 assessment for the prior year. 222 (2) No assessment shall exceed just value. 223 (3) After a change of ownership or control, as defined by 224 general law, including any change of ownership of a legal entity 225 that owns the property, such property shall be assessed at just 226 value as of the next assessment date. Thereafter, such property 227 shall be assessed as provided in this subsection. 228 (4) Changes, additions, reductions, or improvements to such 229 property shall be assessed as provided for by general law; 230 however, after the adjustment for any change, addition, 231 reduction, or improvement, the property shall be assessed as 232 provided in this subsection. 233 (h) For all levies other than school district levies, 234 assessments of real property that is not subject to the 235 assessment limitations set forth in subsections (a) through (d) 236 and (g) shall change only as provided in this subsection. 237 (1) Assessments subject to this subsection shall be changed 238 annually on the date of assessment provided by law; but those 239 changes in assessments shall not exceed ten percent (10%) of the 240 assessment for the prior year. 241 (2) No assessment shall exceed just value. 242 (3) The legislature must provide that such property shall 243 be assessed at just value as of the next assessment date after a 244 qualifying improvement, as defined by general law, is made to 245 such property. Thereafter, such property shall be assessed as 246 provided in this subsection. 247 (4) The legislature may provide that such property shall be 248 assessed at just value as of the next assessment date after a 249 change of ownership or control, as defined by general law, 250 including any change of ownership of the legal entity that owns 251 the property. Thereafter, such property shall be assessed as 252 provided in this subsection. 253 (5) Changes, additions, reductions, or improvements to such 254 property shall be assessed as provided for by general law; 255 however, after the adjustment for any change, addition, 256 reduction, or improvement, the property shall be assessed as 257 provided in this subsection. 258 (i) The legislature, by general law and subject to 259 conditions specified therein, may prohibit the consideration of 260 the following in the determination of the assessed value of real 261 property: 262 (1) Any change or improvement to real property used for 263 residential purposes made to improve the property’s resistance 264 to wind damage. 265 (2) The installation of a solar or renewable energy source 266 device. 267 (3) A permanent standby generator intended for use when 268 electric service is interrupted. 269 (j)(1) The assessment of the following working waterfront 270 properties shall be based upon the current use of the property: 271 a. Land used predominantly for commercial fishing purposes. 272 b. Land that is accessible to the public and used for 273 vessel launches into waters that are navigable. 274 c. Marinas and drystacks that are open to the public. 275 d. Water-dependent marine manufacturing facilities, 276 commercial fishing facilities, and marine vessel construction 277 and repair facilities and their support activities. 278 (2) The assessment benefit provided by this subsection is 279 subject to conditions and limitations and reasonable definitions 280 as specified by the legislature by general law. 281 ARTICLE XII 282 SCHEDULE 283 Permanently installed standby generators; exemption from 284 certain taxation and assessment.—The amendments to Sections 3 285 and 4 of Article VII authorizing the legislature to exempt 286 certain generators from the tangible personal property tax and 287 to prohibit the consideration of such generators in determining 288 the assessed value of real property, respectively, shall take 289 effect on January 1, 2019. 290 BE IT FURTHER RESOLVED that the following statement be 291 placed on the ballot: 292 CONSTITUTIONAL AMENDMENT 293 ARTICLE VII, SECTIONS 3 AND 4 294 ARTICLE XII 295 PERMANENTLY INSTALLED STANDBY GENERATORS; EXEMPTION FROM 296 CERTAIN TAXATION AND ASSESSMENT.—Proposing an amendment to the 297 State Constitution authorizing the Legislature to exempt 298 permanently installed standby generators from the tangible 299 personal property tax and to prohibit property appraisers from 300 considering the presence of such generators in determining the 301 assessed value of real property. If approved by voters, this 302 amendment takes effect January 1, 2019.