Florida Senate - 2022                                   SJR 1278
       
       
        
       By Senator Diaz
       
       
       
       
       
       36-00240D-22                                          20221278__
    1                       Senate Joint Resolution                     
    2         A joint resolution proposing amendments to Sections 4
    3         and 6 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 prohibit increases
    6         in the assessed value of homestead property held by a
    7         low-income senior; to authorize the Legislature, by
    8         general law, to allow counties or municipalities to
    9         grant an exemption equal to the assessed value of
   10         homestead property held by a low-income senior; to
   11         provide for a homestead exemption equal to the
   12         assessed value of the property, if the just value of
   13         the property is less than a certain amount and legal
   14         or equitable title to the property is held by certain
   15         senior, low-income, long-term residents, to provide
   16         for annual adjustment of the just value threshold, and
   17         to provide an effective date.
   18          
   19  Be It Resolved by the Legislature of the State of Florida:
   20  
   21         That the following amendments to Sections 4 and 6 of
   22  Article VII and the creation of a new section in Article XII of
   23  the State Constitution are agreed to and shall be submitted to
   24  the electors of this state for approval or rejection at the next
   25  general election or at an earlier special election specifically
   26  authorized by law for that purpose:
   27                             ARTICLE VII                           
   28                        FINANCE AND TAXATION                       
   29         SECTION 4. Taxation; assessments.—By general law
   30  regulations shall be prescribed which shall secure a just
   31  valuation of all property for ad valorem taxation, provided:
   32         (a) Agricultural land, land producing high water recharge
   33  to Florida’s aquifers, or land used exclusively for
   34  noncommercial recreational purposes may be classified by general
   35  law and assessed solely on the basis of character or use.
   36         (b) As provided by general law and subject to conditions,
   37  limitations, and reasonable definitions specified therein, land
   38  used for conservation purposes shall be classified by general
   39  law and assessed solely on the basis of character or use.
   40         (c) Pursuant to general law tangible personal property held
   41  for sale as stock in trade and livestock may be valued for
   42  taxation at a specified percentage of its value, may be
   43  classified for tax purposes, or may be exempted from taxation.
   44         (d) All persons entitled to a homestead exemption under
   45  Section 6 of this Article shall have their homestead assessed at
   46  just value as of January 1 of the year following the effective
   47  date of this amendment. This assessment shall change only as
   48  provided in this subsection.
   49         (1) Assessments subject to this subsection shall be changed
   50  annually on January 1st of each year; but those changes in
   51  assessments shall not exceed the lower of the following:
   52         a. Three percent (3%) of the assessment for the prior year.
   53         b. The percent change in the Consumer Price Index for all
   54  urban consumers, U.S. City Average, all items 1967=100, or
   55  successor reports for the preceding calendar year as initially
   56  reported by the United States Department of Labor, Bureau of
   57  Labor Statistics.
   58         (2) No assessment shall exceed just value.
   59         (3) After any change of ownership, as provided by general
   60  law, homestead property shall be assessed at just value as of
   61  January 1 of the following year, unless the provisions of
   62  paragraph (8) apply. Thereafter, the homestead shall be assessed
   63  as provided in this subsection.
   64         (4) New homestead property shall be assessed at just value
   65  as of January 1st of the year following the establishment of the
   66  homestead, unless the provisions of paragraph (8) apply. That
   67  assessment shall only change as provided in this subsection.
   68         (5) Changes, additions, reductions, or improvements to
   69  homestead property shall be assessed as provided for by general
   70  law; provided, however, after the adjustment for any change,
   71  addition, reduction, or improvement, the property shall be
   72  assessed as provided in this subsection.
   73         (6) In the event of a termination of homestead status, the
   74  property shall be assessed as provided by general law.
   75         (7) The provisions of this amendment are severable. If any
   76  of the provisions of this amendment shall be held
   77  unconstitutional by any court of competent jurisdiction, the
   78  decision of such court shall not affect or impair any remaining
   79  provisions of this amendment.
   80         (8)a. A person who establishes a new homestead as of
   81  January 1 and who has received a homestead exemption pursuant to
   82  Section 6 of this Article as of January 1 of any of the three
   83  years immediately preceding the establishment of the new
   84  homestead is entitled to have the new homestead assessed at less
   85  than just value. The assessed value of the newly established
   86  homestead shall be determined as follows:
   87         1. If the just value of the new homestead is greater than
   88  or equal to the just value of the prior homestead as of January
   89  1 of the year in which the prior homestead was abandoned, the
   90  assessed value of the new homestead shall be the just value of
   91  the new homestead minus an amount equal to the lesser of
   92  $500,000 or the difference between the just value and the
   93  assessed value of the prior homestead as of January 1 of the
   94  year in which the prior homestead was abandoned. Thereafter, the
   95  homestead shall be assessed as provided in this subsection.
   96         2. If the just value of the new homestead is less than the
   97  just value of the prior homestead as of January 1 of the year in
   98  which the prior homestead was abandoned, the assessed value of
   99  the new homestead shall be equal to the just value of the new
  100  homestead divided by the just value of the prior homestead and
  101  multiplied by the assessed value of the prior homestead.
  102  However, if the difference between the just value of the new
  103  homestead and the assessed value of the new homestead calculated
  104  pursuant to this sub-subparagraph is greater than $500,000, the
  105  assessed value of the new homestead shall be increased so that
  106  the difference between the just value and the assessed value
  107  equals $500,000. Thereafter, the homestead shall be assessed as
  108  provided in this subsection.
  109         b. By general law and subject to conditions specified
  110  therein, the legislature shall provide for application of this
  111  paragraph to property owned by more than one person.
  112         (e) The legislature may, by general law, for assessment
  113  purposes and subject to the provisions of this subsection, allow
  114  counties and municipalities to authorize by ordinance that
  115  historic property may be assessed solely on the basis of
  116  character or use. Such character or use assessment shall apply
  117  only to the jurisdiction adopting the ordinance. The
  118  requirements for eligible properties must be specified by
  119  general law.
  120         (f) A county may, in the manner prescribed by general law,
  121  provide for a reduction in the assessed value of homestead
  122  property to the extent of any increase in the assessed value of
  123  that property which results from the construction or
  124  reconstruction of the property for the purpose of providing
  125  living quarters for one or more natural or adoptive grandparents
  126  or parents of the owner of the property or of the owner’s spouse
  127  if at least one of the grandparents or parents for whom the
  128  living quarters are provided is 62 years of age or older. Such a
  129  reduction may not exceed the lesser of the following:
  130         (1) The increase in assessed value resulting from
  131  construction or reconstruction of the property.
  132         (2) Twenty percent of the total assessed value of the
  133  property as improved.
  134         (g) For all levies other than school district levies,
  135  assessments of residential real property, as defined by general
  136  law, which contains nine units or fewer and which is not subject
  137  to the assessment limitations set forth in subsections (a)
  138  through (d) shall change only as provided in this subsection.
  139         (1) Assessments subject to this subsection shall be changed
  140  annually on the date of assessment provided by law; but those
  141  changes in assessments shall not exceed ten percent (10%) of the
  142  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
  145  general law, including any change of ownership of a legal entity
  146  that owns the property, such property shall be assessed at just
  147  value as of the next assessment date. Thereafter, such property
  148  shall be assessed as provided in this subsection.
  149         (4) Changes, additions, reductions, or improvements to such
  150  property shall be assessed as provided for by general law;
  151  however, after the adjustment for any change, addition,
  152  reduction, or improvement, the property shall be assessed as
  153  provided in this subsection.
  154         (h) For all levies other than school district levies,
  155  assessments of real property that is not subject to the
  156  assessment limitations set forth in subsections (a) through (d)
  157  and (g) shall change only as provided in this subsection.
  158         (1) Assessments subject to this subsection shall be changed
  159  annually on the date of assessment provided by law; but those
  160  changes in assessments shall not exceed ten percent (10%) of the
  161  assessment for the prior year.
  162         (2) No assessment shall exceed just value.
  163         (3) The legislature must provide that such property shall
  164  be assessed at just value as of the next assessment date after a
  165  qualifying improvement, as defined by general law, is made to
  166  such property. Thereafter, such property shall be assessed as
  167  provided in this subsection.
  168         (4) The legislature may provide that such property shall be
  169  assessed at just value as of the next assessment date after a
  170  change of ownership or control, as defined by general law,
  171  including any change of ownership of the legal entity that owns
  172  the property. Thereafter, such property shall be assessed as
  173  provided in this subsection.
  174         (5) Changes, additions, reductions, or improvements to such
  175  property shall be assessed as provided for by general law;
  176  however, after the adjustment for any change, addition,
  177  reduction, or improvement, the property shall be assessed as
  178  provided in this subsection.
  179         (i) The legislature, by general law and subject to
  180  conditions specified therein, may prohibit the consideration of
  181  the following in the determination of the assessed value of real
  182  property:
  183         (1) Any change or improvement to real property used for
  184  residential purposes made to improve the property’s resistance
  185  to wind damage.
  186         (2) The installation of a solar or renewable energy source
  187  device.
  188         (j)
  189         (1) The assessment of the following working waterfront
  190  properties shall be based upon the current use of the property:
  191         a. Land used predominantly for commercial fishing purposes.
  192         b. Land that is accessible to the public and used for
  193  vessel launches into waters that are navigable.
  194         c. Marinas and drystacks that are open to the public.
  195         d. Water-dependent marine manufacturing facilities,
  196  commercial fishing facilities, and marine vessel construction
  197  and repair facilities and their support activities.
  198         (2) The assessment benefit provided by this subsection is
  199  subject to conditions and limitations and reasonable definitions
  200  as specified by the legislature by general law.
  201         (k) By general law and subject to conditions specified
  202  therein, the legislature may prohibit increases in the assessed
  203  value of property qualifying for a homestead exemption under
  204  Section 6 of this article if the legal or equitable title to the
  205  property is held by a person who has attained age sixty-five and
  206  whose household income, as defined by general law, does not
  207  exceed the limitation specified in subsection (d) of Section 6
  208  of this article.
  209         SECTION 6. Homestead exemptions.—
  210         (a) Every person who has the legal or equitable title to
  211  real estate and maintains thereon the permanent residence of the
  212  owner, or another legally or naturally dependent upon the owner,
  213  shall be exempt from taxation thereon, except assessments for
  214  special benefits, up to the assessed valuation of twenty-five
  215  thousand dollars and, for all levies other than school district
  216  levies, on the assessed valuation greater than fifty thousand
  217  dollars and up to seventy-five thousand dollars, upon
  218  establishment of right thereto in the manner prescribed by law.
  219  The real estate may be held by legal or equitable title, by the
  220  entireties, jointly, in common, as a condominium, or indirectly
  221  by stock ownership or membership representing the owner’s or
  222  member’s proprietary interest in a corporation owning a fee or a
  223  leasehold initially in excess of ninety-eight years. The
  224  exemption shall not apply with respect to any assessment roll
  225  until such roll is first determined to be in compliance with the
  226  provisions of section 4 by a state agency designated by general
  227  law. This exemption is repealed on the effective date of any
  228  amendment to this Article which provides for the assessment of
  229  homestead property at less than just value.
  230         (b) Not more than one exemption shall be allowed any
  231  individual or family unit or with respect to any residential
  232  unit. No exemption shall exceed the value of the real estate
  233  assessable to the owner or, in case of ownership through stock
  234  or membership in a corporation, the value of the proportion
  235  which the interest in the corporation bears to the assessed
  236  value of the property.
  237         (c) By general law and subject to conditions specified
  238  therein, the Legislature may provide to renters, who are
  239  permanent residents, ad valorem tax relief on all ad valorem tax
  240  levies. Such ad valorem tax relief shall be in the form and
  241  amount established by general law.
  242         (d) The legislature may, by general law, allow counties or
  243  municipalities, for the purpose of their respective tax levies
  244  and subject to the provisions of general law, to grant either or
  245  both of the following additional homestead tax exemptions to a
  246  person who has the legal or equitable title to real estate and
  247  maintains thereon the permanent residence of the owner, who has
  248  attained age sixty-five, and whose household income, as defined
  249  by general law, does not exceed twenty thousand dollars:
  250         (1) An exemption not exceeding fifty thousand dollars of
  251  the assessed value of the property to a person who has the legal
  252  or equitable title to real estate and maintains thereon the
  253  permanent residence of the owner, who has attained age sixty
  254  five, and whose household income, as defined by general law,
  255  does not exceed twenty thousand dollars; or
  256         (2) An exemption equal to the assessed value of the
  257  property to a person who has the legal or equitable title to
  258  real estate with a just value less than two hundred and fifty
  259  thousand dollars, as determined in the first tax year that the
  260  owner applies and is eligible for the exemption, and who has
  261  maintained thereon the permanent residence of the owner for not
  262  less than twenty-five years, who has attained age sixty-five,
  263  and whose household income does not exceed the income limitation
  264  prescribed in paragraph (1).
  265  
  266  The general law must allow counties and municipalities to grant
  267  these additional exemptions, within the limits prescribed in
  268  this subsection, by ordinance adopted in the manner prescribed
  269  by general law, and must provide for the periodic adjustment of
  270  the income limitation prescribed in this subsection for changes
  271  in the cost of living.
  272         (e)(1) Each veteran who is age 65 or older who is partially
  273  or totally permanently disabled shall receive a discount from
  274  the amount of the ad valorem tax otherwise owed on homestead
  275  property the veteran owns and resides in if the disability was
  276  combat related and the veteran was honorably discharged upon
  277  separation from military service. The discount shall be in a
  278  percentage equal to the percentage of the veteran’s permanent,
  279  service-connected disability as determined by the United States
  280  Department of Veterans Affairs. To qualify for the discount
  281  granted by this paragraph, an applicant must submit to the
  282  county property appraiser, by March 1, an official letter from
  283  the United States Department of Veterans Affairs stating the
  284  percentage of the veteran’s service-connected disability and
  285  such evidence that reasonably identifies the disability as
  286  combat related and a copy of the veteran’s honorable discharge.
  287  If the property appraiser denies the request for a discount, the
  288  appraiser must notify the applicant in writing of the reasons
  289  for the denial, and the veteran may reapply. The Legislature
  290  may, by general law, waive the annual application requirement in
  291  subsequent years.
  292         (2) If a veteran who receives the discount described in
  293  paragraph (1) predeceases his or her spouse, and if, upon the
  294  death of the veteran, the surviving spouse holds the legal or
  295  beneficial title to the homestead property and permanently
  296  resides thereon, the discount carries over to the surviving
  297  spouse until he or she remarries or sells or otherwise disposes
  298  of the homestead property. If the surviving spouse sells or
  299  otherwise disposes of the property, a discount not to exceed the
  300  dollar amount granted from the most recent ad valorem tax roll
  301  may be transferred to the surviving spouse’s new homestead
  302  property, if used as his or her permanent residence and he or
  303  she has not remarried.
  304         (3) This subsection is self-executing and does not require
  305  implementing legislation.
  306         (f) By general law and subject to conditions and
  307  limitations specified therein, the Legislature may provide ad
  308  valorem tax relief equal to the total amount or a portion of the
  309  ad valorem tax otherwise owed on homestead property to:
  310         (1) The surviving spouse of a veteran who died from
  311  service-connected causes while on active duty as a member of the
  312  United States Armed Forces.
  313         (2) The surviving spouse of a first responder who died in
  314  the line of duty.
  315         (3) A first responder who is totally and permanently
  316  disabled as a result of an injury or injuries sustained in the
  317  line of duty. Causal connection between a disability and service
  318  in the line of duty shall not be presumed but must be determined
  319  as provided by general law. For purposes of this paragraph, the
  320  term “disability” does not include a chronic condition or
  321  chronic disease, unless the injury sustained in the line of duty
  322  was the sole cause of the chronic condition or chronic disease.
  323  
  324  As used in this subsection and as further defined by general
  325  law, the term “first responder” means a law enforcement officer,
  326  a correctional officer, a firefighter, an emergency medical
  327  technician, or a paramedic, and the term “in the line of duty”
  328  means arising out of and in the actual performance of duty
  329  required by employment as a first responder.
  330         (g)For all levies other than school district levies, each
  331  person who has the legal or equitable title to real estate with
  332  a just value less than three hundred thousand dollars, as
  333  determined in the first year that the owner applies and is
  334  eligible for the exemption pursuant to this subsection, who has
  335  maintained thereon the permanent residence of the owner for not
  336  less than twenty years, who has attained age sixty-five, and
  337  whose household income does not exceed the income limitation
  338  prescribed in subsection (d), is entitled to an exemption equal
  339  to the assessed value of the property. The real estate just
  340  value limitation shall be adjusted annually to reflect the rate
  341  of inflation, as determined by general law, and shall take
  342  effect for new applicants on January 1 of each year. A person
  343  who receives an exemption pursuant to paragraph (d)(2) in 2022,
  344  qualifies for this exemption regardless of the just value of the
  345  exempted property.
  346  
  347                             ARTICLE XII                           
  348                              SCHEDULE                             
  349         Ad valorem assessment limitation and additional ad valorem
  350  exemption for persons who have attained age sixty-five.—This
  351  section and the amendments to Sections 4 and 6 of Article VII
  352  providing an assessment limitation for homestead property owned
  353  by a person age 65 years or older meeting certain income
  354  requirements, revising the eligibility criteria for an exemption
  355  equal to the assessed value of the property which, if authorized
  356  by the legislature, may be granted by counties or municipalities
  357  and providing for a homestead exemption for persons age 65 years
  358  or older meeting certain residency and income requirements, if
  359  the just value of the property is less than $300,000, shall take
  360  effect January 1, 2023.
  361         BE IT FURTHER RESOLVED that the following statement be
  362  placed on the ballot:
  363                      CONSTITUTIONAL AMENDMENT                     
  364                    ARTICLE VII, SECTIONS 4 AND 6                  
  365                             ARTICLE XII                           
  366         HOMESTEAD PROPERTY TAX ASSESSMENT LIMITATION AND TAX
  367  EXEMPTIONS FOR LOW-INCOME PERSONS AGE 65 OR OLDER.—For homestead
  368  property owned by low-income persons age 65 or older: limits
  369  increases in the assessed value of such homestead property;
  370  authorizes the Legislature to allow counties and municipalities
  371  to provide exemptions for such homestead property; and, for
  372  nonschool taxes only, exempts such homestead property valued
  373  less than $300,000, adjusted annually for inflation, if such
  374  low-income persons have maintained their permanent residence
  375  thereon for 20 years or more. This amendment takes effect
  376  January 1, 2023.
  377  
  378         BE IT FURTHER RESOLVED that the following statement be
  379  placed on the ballot if a court declares the preceding statement
  380  defective and the decision of the court is not reversed:
  381                      CONSTITUTIONAL AMENDMENT                     
  382                    ARTICLE VII, SECTIONS 4 AND 6                  
  383                             ARTICLE XII                           
  384         HOMESTEAD PROPERTY TAX ASSESSMENT LIMITATION AND TAX
  385  EXEMPTIONS FOR CERTAIN PERSONS AGE 65 OR OLDER.—This amendment
  386  creates a limitation on property tax assessment increases on
  387  homestead property owned by persons age 65 or older who have low
  388  household income as defined by general law; revises the current
  389  provisions that allow the Legislature to authorize counties and
  390  municipalities to grant additional homestead exemptions for low
  391  income persons age 65 or older by removing the current $250,000
  392  property just value limitation and removing the current
  393  requirement that the owners must have used the property as their
  394  permanent residence for 25 years or more; creates a new
  395  homestead exemption that applies only to nonschool property
  396  taxes for low-income persons, as defined by general law, who are
  397  age 65 or older, whose homestead property value is less than
  398  $300,000, and who have used the property as their permanent
  399  residence for 20 years or more. The $300,000 value limitation
  400  must be adjusted annually to reflect the rate of inflation, as
  401  determined by general law. This amendment takes effect January
  402  1, 2023.