Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. SJR 532
Barcode 433790
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/15/2009 .
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The Committee on Finance and Tax (Altman) recommended the
following:
1 Senate Substitute for Amendment (886910) (with title
2 amendment)
3
4 Delete everything after the resolving clause
5 and insert:
6 That the following amendments to Sections 4 and 6 of
7 Article VII and the creation of two new sections in Article XII
8 of the State Constitution are agreed to and shall be submitted
9 to the electors of this state for approval or rejection at the
10 next general election or at an earlier special election
11 specifically authorized by law for that purpose:
12 ARTICLE VII
13 FINANCE AND TAXATION
14 SECTION 4. Taxation; assessments.—By general law
15 regulations shall be prescribed which shall secure a just
16 valuation of all property for ad valorem taxation, provided:
17 (a) Agricultural land, land producing high water recharge
18 to Florida’s aquifers, or land used exclusively for
19 noncommercial recreational purposes may be classified by general
20 law and assessed solely on the basis of character or use.
21 (b) As provided by general law and subject to conditions,
22 limitations, and reasonable definitions specified therein, land
23 used for conservation purposes shall be classified by general
24 law and assessed solely on the basis of character or use.
25 (c) Pursuant to general law tangible personal property held
26 for sale as stock in trade and livestock may be valued for
27 taxation at a specified percentage of its value, may be
28 classified for tax purposes, or may be exempted from taxation.
29 (d) All persons entitled to a homestead exemption under
30 Section 6 of this Article shall have their homestead assessed at
31 just value as of January 1 of the year following the effective
32 date of this amendment. This assessment shall change only as
33 provided in this subsection.
34 (1) Assessments subject to this subsection shall be changed
35 annually on January 1st of each year; but those changes in
36 assessments shall not exceed the lower of the following:
37 a. Three percent (3%) of the assessment for the prior year.
38 b. The percent change in the Consumer Price Index for all
39 urban consumers, U.S. City Average, all items 1967=100, or
40 successor reports for the preceding calendar year as initially
41 reported by the United States Department of Labor, Bureau of
42 Labor Statistics.
43 (2) No assessment shall exceed just value.
44 (3) After any change of ownership, as provided by general
45 law, homestead property shall be assessed at just value as of
46 January 1 of the following year, unless the provisions of
47 paragraph (8) apply. Thereafter, the homestead shall be assessed
48 as provided in this subsection.
49 (4) New homestead property shall be assessed at just value
50 as of January 1st of the year following the establishment of the
51 homestead, unless the provisions of paragraph (8) apply. That
52 assessment shall only change as provided in this subsection.
53 (5) Changes, additions, reductions, or improvements to
54 homestead property shall be assessed as provided for by general
55 law; provided, however, after the adjustment for any change,
56 addition, reduction, or improvement, the property shall be
57 assessed as provided in this subsection.
58 (6) In the event of a termination of homestead status, the
59 property shall be assessed as provided by general law.
60 (7) The provisions of this amendment are severable. If any
61 of the provisions of this amendment shall be held
62 unconstitutional by any court of competent jurisdiction, the
63 decision of such court shall not affect or impair any remaining
64 provisions of this amendment.
65 (8)a. A person who establishes a new homestead as of
66 January 1, 2009, or January 1 of any subsequent year and who has
67 received a homestead exemption pursuant to Section 6 of this
68 Article as of January 1 of either of the two years immediately
69 preceding the establishment of the new homestead is entitled to
70 have the new homestead assessed at less than just value. If this
71 revision is approved in January of 2008, a person who
72 establishes a new homestead as of January 1, 2008, is entitled
73 to have the new homestead assessed at less than just value only
74 if that person received a homestead exemption on January 1,
75 2007. The assessed value of the newly established homestead
76 shall be determined as follows:
77 1. If the just value of the new homestead is greater than
78 or equal to the just value of the prior homestead as of January
79 1 of the year in which the prior homestead was abandoned, the
80 assessed value of the new homestead shall be the just value of
81 the new homestead minus an amount equal to the lesser of
82 $500,000 or the difference between the just value and the
83 assessed value of the prior homestead as of January 1 of the
84 year in which the prior homestead was abandoned. Thereafter, the
85 homestead shall be assessed as provided in this subsection.
86 2. If the just value of the new homestead is less than the
87 just value of the prior homestead as of January 1 of the year in
88 which the prior homestead was abandoned, the assessed value of
89 the new homestead shall be equal to the just value of the new
90 homestead divided by the just value of the prior homestead and
91 multiplied by the assessed value of the prior homestead.
92 However, if the difference between the just value of the new
93 homestead and the assessed value of the new homestead calculated
94 pursuant to this sub-subparagraph is greater than $500,000, the
95 assessed value of the new homestead shall be increased so that
96 the difference between the just value and the assessed value
97 equals $500,000. Thereafter, the homestead shall be assessed as
98 provided in this subsection.
99 b. By general law and subject to conditions specified
100 therein, the Legislature shall provide for application of this
101 paragraph to property owned by more than one person.
102 (e) The legislature may, by general law, for assessment
103 purposes and subject to the provisions of this subsection, allow
104 counties and municipalities to authorize by ordinance that
105 historic property may be assessed solely on the basis of
106 character or use. Such character or use assessment shall apply
107 only to the jurisdiction adopting the ordinance. The
108 requirements for eligible properties must be specified by
109 general law.
110 (f) A county may, in the manner prescribed by general law,
111 provide for a reduction in the assessed value of homestead
112 property to the extent of any increase in the assessed value of
113 that property which results from the construction or
114 reconstruction of the property for the purpose of providing
115 living quarters for one or more natural or adoptive grandparents
116 or parents of the owner of the property or of the owner’s spouse
117 if at least one of the grandparents or parents for whom the
118 living quarters are provided is 62 years of age or older. Such a
119 reduction may not exceed the lesser of the following:
120 (1) The increase in assessed value resulting from
121 construction or reconstruction of the property.
122 (2) Twenty percent of the total assessed value of the
123 property as improved.
124 (g) For all levies other than school district levies,
125 assessments of residential real property, as defined by general
126 law, which contains nine units or fewer and which is not subject
127 to the assessment limitations set forth in subsections (a)
128 through (d) shall change only as provided in this subsection.
129 (1) Assessments subject to this subsection shall be changed
130 annually on the date of assessment provided by law; but those
131 changes in assessments shall not exceed ten percent (10%) of the
132 assessment for the prior year.
133 (2) No assessment shall exceed just value.
134 (3) After a change of ownership or control, as defined by
135 general law, including any change of ownership of a legal entity
136 that owns the property, such property shall be assessed at just
137 value as of the next assessment date. Thereafter, such property
138 shall be assessed as provided in this subsection.
139 (4) Changes, additions, reductions, or improvements to such
140 property shall be assessed as provided for by general law;
141 however, after the adjustment for any change, addition,
142 reduction, or improvement, the property shall be assessed as
143 provided in this subsection.
144 (h) For all levies other than school district levies,
145 assessments of real property that is not subject to the
146 assessment limitations set forth in subsections (a) through (d)
147 and (g) shall change only as provided in this subsection.
148 (1) Assessments subject to this subsection shall be changed
149 annually on the date of assessment provided by law; but those
150 changes in assessments shall not exceed ten percent (10%) of the
151 assessment for the prior year.
152 (2) No assessment shall exceed just value.
153 (3) The legislature must provide that such property shall
154 be assessed at just value as of the next assessment date after a
155 qualifying improvement, as defined by general law, is made to
156 such property. Thereafter, such property shall be assessed as
157 provided in this subsection.
158 (4) The legislature may provide that such property shall be
159 assessed at just value as of the next assessment date after a
160 change of ownership or control, as defined by general law,
161 including any change of ownership of the legal entity that owns
162 the property. Thereafter, such property shall be assessed as
163 provided in this subsection.
164 (5) Changes, additions, reductions, or improvements to such
165 property shall be assessed as provided for by general law;
166 however, after the adjustment for any change, addition,
167 reduction, or improvement, the property shall be assessed as
168 provided in this subsection.
169 (i) The legislature, by general law and subject to
170 conditions specified therein, may prohibit the consideration of
171 the following in the determination of the assessed value of real
172 property used for residential purposes:
173 (1) Any change or improvement made for the purpose of
174 improving the property’s resistance to wind damage.
175 (2) The installation of a renewable energy source device.
176 (j)(1) The assessment of the following working waterfront
177 properties shall be based upon the current use of the property:
178 a. Land used predominantly for commercial fishing purposes.
179 b. Land that is accessible to the public and used for
180 vessel launches into waters that are navigable.
181 c. Marinas and drystacks that are open to the public.
182 d. Water-dependent marine manufacturing facilities,
183 commercial fishing facilities, and marine vessel construction
184 and repair facilities and their support activities.
185 (2) The assessment benefit provided by this subsection is
186 subject to conditions and limitations and reasonable definitions
187 as specified by the legislature by general law.
188 (k) Pursuant to general law and subject to conditions
189 specified therein, increases in assessments of real property
190 used for commercial or residential rental purposes may be
191 limited to the greater of five percent or the average annual
192 percentage growth in revenues derived from a property over the
193 preceding three years if ownership of the property has not
194 changed within that period.
195 SECTION 6. Homestead exemptions.—
196 (a) Every person who has the legal or equitable title to
197 real estate and maintains thereon the permanent residence of the
198 owner, or another legally or naturally dependent upon the owner,
199 shall be exempt from taxation thereon, except assessments for
200 special benefits, up to the assessed valuation of twenty-five
201 thousand dollars and, for all levies other than school district
202 levies, on the assessed valuation greater than fifty thousand
203 dollars and up to seventy-five thousand dollars, upon
204 establishment of right thereto in the manner prescribed by law.
205 The real estate may be held by legal or equitable title, by the
206 entireties, jointly, in common, as a condominium, or indirectly
207 by stock ownership or membership representing the owner’s or
208 member’s proprietary interest in a corporation owning a fee or a
209 leasehold initially in excess of ninety-eight years. The
210 exemption shall not apply with respect to any assessment roll
211 until such roll is first determined to be in compliance with the
212 provisions of section 4 by a state agency designated by general
213 law. This exemption is repealed on the effective date of any
214 amendment to this Article which provides for the assessment of
215 homestead property at less than just value.
216 (b) Not more than one exemption shall be allowed any
217 individual or family unit or with respect to any residential
218 unit. No exemption shall exceed the value of the real estate
219 assessable to the owner or, in case of ownership through stock
220 or membership in a corporation, the value of the proportion
221 which the interest in the corporation bears to the assessed
222 value of the property.
223 (c) By general law and subject to conditions specified
224 therein, the Legislature may provide to renters, who are
225 permanent residents, ad valorem tax relief on all ad valorem tax
226 levies. Such ad valorem tax relief shall be in the form and
227 amount established by general law.
228 (d) The legislature may, by general law, allow counties or
229 municipalities, for the purpose of their respective tax levies
230 and subject to the provisions of general law, to grant an
231 additional homestead tax exemption not exceeding fifty thousand
232 dollars to any person who has the legal or equitable title to
233 real estate and maintains thereon the permanent residence of the
234 owner and who has attained age sixty-five and whose household
235 income, as defined by general law, does not exceed twenty
236 thousand dollars. The general law must allow counties and
237 municipalities to grant this additional exemption, within the
238 limits prescribed in this subsection, by ordinance adopted in
239 the manner prescribed by general law, and must provide for the
240 periodic adjustment of the income limitation prescribed in this
241 subsection for changes in the cost of living.
242 (e) Each veteran who is age 65 or older who is partially or
243 totally permanently disabled shall receive a discount from the
244 amount of the ad valorem tax otherwise owed on homestead
245 property the veteran owns and resides in if the disability was
246 combat related, the veteran was a resident of this state at the
247 time of entering the military service of the United States, and
248 the veteran was honorably discharged upon separation from
249 military service. The discount shall be in a percentage equal to
250 the percentage of the veteran’s permanent, service-connected
251 disability as determined by the United States Department of
252 Veterans Affairs. To qualify for the discount granted by this
253 subsection, an applicant must submit to the county property
254 appraiser, by March 1, proof of residency at the time of
255 entering military service, an official letter from the United
256 States Department of Veterans Affairs stating the percentage of
257 the veteran’s service-connected disability and such evidence
258 that reasonably identifies the disability as combat related, and
259 a copy of the veteran’s honorable discharge. If the property
260 appraiser denies the request for a discount, the appraiser must
261 notify the applicant in writing of the reasons for the denial,
262 and the veteran may reapply. The Legislature may, by general
263 law, waive the annual application requirement in subsequent
264 years. This subsection shall take effect December 7, 2006, is
265 self-executing, and does not require implementing legislation.
266 (f)(1) By general law, and subject to conditions specified
267 therein, the legislature shall provide an additional homestead
268 exemption to the person or persons who:
269 a. Establish the right to receive the homestead exemption
270 in subsection (a) within one year after purchasing the homestead
271 property; and
272 b. Have not owned a principal residence during the ten-year
273 period before the purchase. For married persons, neither the
274 purchaser nor his or her spouse may have owned a principal
275 residence during the preceding ten years.
276 (2) The additional homestead exemption shall equal 25
277 percent of the just value of the property on January 1 of the
278 year in which the homestead exemption in subsection (a) is
279 received, but not more than $100,000.
280 a. The amount of the additional exemption shall be reduced
281 in each subsequent year by an amount equal to twenty percent of
282 the amount of the initial additional exemption or by an amount
283 equal to the difference between the just value of the property
284 and the assessed value determined under subsection (d) of
285 section 4 of this Article, whichever is greater.
286 b. The additional homestead exemption shall not apply after
287 the fifth year after the initial additional exemption is
288 granted.
289 (3) Only one additional exemption under this subsection may
290 apply to a single homestead property.
291 ARTICLE XII
292 SCHEDULE
293 Property tax limit for commercial and residential rental
294 property.—The amendment to Section 4 of Article VII permitting
295 the legislature to reduce the maximum annual increase in the
296 assessed value of nonhomestead property and this section shall
297 take effect January 1, 20ll.
298 Additional homestead exemption for first-time homestead
299 property owners.—The amendment to subsection (f) of Section 6 of
300 Article VII providing for an additional homestead exemption for
301 persons who have not owned a principal residence within a ten
302 year period and this section shall take effect January 1, 2011,
303 and shall be available for properties purchased on or after
304 January 1, 2010.
305 CONSTITUTIONAL AMENDMENTS
306 ARTICLE VII, SECTIONS 4 and 6
307 ARTICLE XII
308 PROPERTY TAX LIMIT FOR PROPERTY TYPES; ADDITIONAL HOMESTEAD
309 EXEMPTION FOR NEW PRINCIPAL RESIDENCES.—The State Constitution
310 generally limits the maximum annual increase in the assessed
311 value of nonhomestead property to 10 percent annually. This
312 proposed amendment permits the Legislature to limit those
313 increases to the greater of 5 percent or the rate of growth in
314 tax revenues derived from the property over the preceding 3
315 years.
316 This amendment also requires the Legislature to provide an
317 additional homestead exemption for persons who have not owned a
318 principal residence during the preceding 10 years. Under the
319 exemption, 25 percent of the just value of a first-time
320 homestead, up to $100,000, will be exempt from property taxes.
321 The amount of the additional exemption will decrease in each
322 succeeding year for 5 years by the greater of 20 percent of the
323 initial additional exemption or the difference between the just
324 value and the assessed value of the property. The additional
325 exemption will not be available in the 6th and subsequent years.
326
327 ================= T I T L E A M E N D M E N T ================
328 And the title is amended as follows:
329 Delete everything before the resolving clause
330 and insert:
331 Senate Joint Resolution
332 A joint resolution proposing an amendments to Sections
333 4 and 6 of Article VII and the creation of two new
334 sections in Article XII of the State Constitution to
335 generally limit the maximum annual increase in the
336 assessed value of certain nonhomestead properties and
337 to provide an additional homestead exemption to
338 persons who have not owned a principal residence
339 within the preceding 10 years.