HJR 97

1
House Joint Resolution
2A joint resolution proposing amendments to Sections 4 and
36 of Article VII of the State Constitution to provide for
4a limitation on increases in assessments of commercial or
5residential rental property and to provide an additional
6homestead exemption for first-time homestead property
7owners.
8
9Be It Resolved by the Legislature of the State of Florida:
10
11     That the following amendments to Sections 4 and 6 of
12Article VII of the State Constitution is agreed to and shall be
13submitted to the electors of this state for approval or
14rejection at the next general election or at an earlier special
15election specifically authorized by law for that purpose:
16
ARTICLE VII
17
FINANCE AND TAXATION
18     SECTION 4.  Taxation; assessments.--By general law
19regulations shall be prescribed which shall secure a just
20valuation of all property for ad valorem taxation, provided:
21     (a)  Agricultural land, land producing high water recharge
22to Florida's aquifers, or land used exclusively for
23noncommercial recreational purposes may be classified by general
24law and assessed solely on the basis of character or use.
25     (b)  As provided by general law and subject to conditions,
26limitations, and reasonable definitions specified therein, land
27used for conservation purposes shall be classified by general
28law and assessed solely on the basis of character or use.
29     (c)  Pursuant to general law tangible personal property
30held for sale as stock in trade and livestock may be valued for
31taxation at a specified percentage of its value, may be
32classified for tax purposes, or may be exempted from taxation.
33     (d)  All persons entitled to a homestead exemption under
34Section 6 of this Article shall have their homestead assessed at
35just value as of January 1 of the year following the effective
36date of this amendment. This assessment shall change only as
37provided in this subsection.
38     (1)  Assessments subject to this subsection shall be
39changed annually on January 1st of each year; but those changes
40in assessments shall not exceed the lower of the following:
41     a.  Three percent (3%) of the assessment for the prior
42year.
43     b.  The percent change in the Consumer Price Index for all
44urban consumers, U.S. City Average, all items 1967=100, or
45successor reports for the preceding calendar year as initially
46reported by the United States Department of Labor, Bureau of
47Labor Statistics.
48     (2)  No assessment shall exceed just value.
49     (3)  After any change of ownership, as provided by general
50law, homestead property shall be assessed at just value as of
51January 1 of the following year, unless the provisions of
52paragraph (8) apply. Thereafter, the homestead shall be assessed
53as provided in this subsection.
54     (4)  New homestead property shall be assessed at just value
55as of January 1st of the year following the establishment of the
56homestead, unless the provisions of paragraph (8) apply. That
57assessment shall only change as provided in this subsection.
58     (5)  Changes, additions, reductions, or improvements to
59homestead property shall be assessed as provided for by general
60law; provided, however, after the adjustment for any change,
61addition, reduction, or improvement, the property shall be
62assessed as provided in this subsection.
63     (6)  In the event of a termination of homestead status, the
64property shall be assessed as provided by general law.
65     (7)  The provisions of this amendment are severable. If any
66of the provisions of this amendment shall be held
67unconstitutional by any court of competent jurisdiction, the
68decision of such court shall not affect or impair any remaining
69provisions of this amendment.
70     (8)a.  A person who establishes a new homestead as of
71January 1, 2009, or January 1 of any subsequent year and who has
72received a homestead exemption pursuant to Section 6 of this
73Article as of January 1 of either of the two years immediately
74preceding the establishment of the new homestead is entitled to
75have the new homestead assessed at less than just value. If this
76revision is approved in January of 2008, a person who
77establishes a new homestead as of January 1, 2008, is entitled
78to have the new homestead assessed at less than just value only
79if that person received a homestead exemption on January 1,
802007. The assessed value of the newly established homestead
81shall be determined as follows:
82     1.  If the just value of the new homestead is greater than
83or equal to the just value of the prior homestead as of January
841 of the year in which the prior homestead was abandoned, the
85assessed value of the new homestead shall be the just value of
86the new homestead minus an amount equal to the lesser of
87$500,000 or the difference between the just value and the
88assessed value of the prior homestead as of January 1 of the
89year in which the prior homestead was abandoned. Thereafter, the
90homestead shall be assessed as provided in this subsection.
91     2.  If the just value of the new homestead is less than the
92just value of the prior homestead as of January 1 of the year in
93which the prior homestead was abandoned, the assessed value of
94the new homestead shall be equal to the just value of the new
95homestead divided by the just value of the prior homestead and
96multiplied by the assessed value of the prior homestead.
97However, if the difference between the just value of the new
98homestead and the assessed value of the new homestead calculated
99pursuant to this sub-subparagraph is greater than $500,000, the
100assessed value of the new homestead shall be increased so that
101the difference between the just value and the assessed value
102equals $500,000. Thereafter, the homestead shall be assessed as
103provided in this subsection.
104     b.  By general law and subject to conditions specified
105therein, the Legislature shall provide for application of this
106paragraph to property owned by more than one person.
107     (e)  The legislature may, by general law, for assessment
108purposes and subject to the provisions of this subsection, allow
109counties and municipalities to authorize by ordinance that
110historic property may be assessed solely on the basis of
111character or use. Such character or use assessment shall apply
112only to the jurisdiction adopting the ordinance. The
113requirements for eligible properties must be specified by
114general law.
115     (f)  A county may, in the manner prescribed by general law,
116provide for a reduction in the assessed value of homestead
117property to the extent of any increase in the assessed value of
118that property which results from the construction or
119reconstruction of the property for the purpose of providing
120living quarters for one or more natural or adoptive grandparents
121or parents of the owner of the property or of the owner's spouse
122if at least one of the grandparents or parents for whom the
123living quarters are provided is 62 years of age or older. Such a
124reduction may not exceed the lesser of the following:
125     (1)  The increase in assessed value resulting from
126construction or reconstruction of the property.
127     (2)  Twenty percent of the total assessed value of the
128property as improved.
129     (g)  For all levies other than school district levies,
130assessments of residential real property, as defined by general
131law, which contains nine units or fewer and which is not subject
132to the assessment limitations set forth in subsections (a)
133through (d) shall change only as provided in this subsection.
134     (1)  Assessments subject to this subsection shall be
135changed annually on the date of assessment provided by law; but
136those changes in assessments shall not exceed ten percent (10%)
137of the assessment for the prior year.
138     (2)  No assessment shall exceed just value.
139     (3)  After a change of ownership or control, as defined by
140general law, including any change of ownership of a legal entity
141that owns the property, such property shall be assessed at just
142value as of the next assessment date. Thereafter, such property
143shall be assessed as provided in this subsection.
144     (4)  Changes, additions, reductions, or improvements to
145such property shall be assessed as provided for by general law;
146however, after the adjustment for any change, addition,
147reduction, or improvement, the property shall be assessed as
148provided in this subsection.
149     (h)  For all levies other than school district levies,
150assessments of real property that is not subject to the
151assessment limitations set forth in subsections (a) through (d)
152and (g) shall change only as provided in this subsection.
153     (1)  Assessments subject to this subsection shall be
154changed annually on the date of assessment provided by law; but
155those changes in assessments shall not exceed ten percent (10%)
156of the assessment for the prior year.
157     (2)  No assessment shall exceed just value.
158     (3)  The legislature must provide that such property shall
159be assessed at just value as of the next assessment date after a
160qualifying improvement, as defined by general law, is made to
161such property. Thereafter, such property shall be assessed as
162provided in this subsection.
163     (4)  The legislature may provide that such property shall
164be assessed at just value as of the next assessment date after a
165change of ownership or control, as defined by general law,
166including any change of ownership of the legal entity that owns
167the property. Thereafter, such property shall be assessed as
168provided in this subsection.
169     (5)  Changes, additions, reductions, or improvements to
170such property shall be assessed as provided for by general law;
171however, after the adjustment for any change, addition,
172reduction, or improvement, the property shall be assessed as
173provided in this subsection.
174     (i)  The legislature, by general law and subject to
175conditions specified therein, may prohibit the consideration of
176the following in the determination of the assessed value of real
177property used for residential purposes:
178     (1)  Any change or improvement made for the purpose of
179improving the property's resistance to wind damage.
180     (2)  The installation of a renewable energy source device.
181     (j)(1)  The assessment of the following working waterfront
182properties shall be based upon the current use of the property:
183     a.  Land used predominantly for commercial fishing
184purposes.
185     b.  Land that is accessible to the public and used for
186vessel launches into waters that are navigable.
187     c.  Marinas and drystacks that are open to the public.
188     d.  Water-dependent marine manufacturing facilities,
189commercial fishing facilities, and marine vessel construction
190and repair facilities and their support activities.
191     (2)  The assessment benefit provided by this subsection is
192subject to conditions and limitations and reasonable definitions
193as specified by the legislature by general law.
194     (k)  Pursuant to general law and subject to conditions
195specified therein, increases in assessments of real property
196used for commercial or residential rental purposes may be
197limited to the greater of five percent or the average annual
198percentage growth in revenues derived from the property over the
199preceding three years if ownership of the property has not
200changed.
201     SECTION 6.  Homestead exemptions.--
202     (a)  Every person who has the legal or equitable title to
203real estate and maintains thereon the permanent residence of the
204owner, or another legally or naturally dependent upon the owner,
205shall be exempt from taxation thereon, except assessments for
206special benefits, up to the assessed valuation of twenty-five
207thousand dollars and, for all levies other than school district
208levies, on the assessed valuation greater than fifty thousand
209dollars and up to seventy-five thousand dollars, upon
210establishment of right thereto in the manner prescribed by law.
211The real estate may be held by legal or equitable title, by the
212entireties, jointly, in common, as a condominium, or indirectly
213by stock ownership or membership representing the owner's or
214member's proprietary interest in a corporation owning a fee or a
215leasehold initially in excess of ninety-eight years. The
216exemption shall not apply with respect to any assessment roll
217until such roll is first determined to be in compliance with the
218provisions of section 4 by a state agency designated by general
219law. This exemption is repealed on the effective date of any
220amendment to this Article which provides for the assessment of
221homestead property at less than just value.
222     (b)  Not more than one exemption shall be allowed any
223individual or family unit or with respect to any residential
224unit. No exemption shall exceed the value of the real estate
225assessable to the owner or, in case of ownership through stock
226or membership in a corporation, the value of the proportion
227which the interest in the corporation bears to the assessed
228value of the property.
229     (c)  As provided by general law and subject to conditions
230specified therein, every person who establishes the right to
231receive the homestead exemption provided in subsection (a)
232within one year after purchasing the homestead property and who
233has not previously owned property to which the homestead
234exemption provided in subsection (a) applied is entitled to an
235additional homestead exemption in an amount equal to fifty
236percent of the homestead property's just value on January 1 of
237the year the homestead is established. The amount of the initial
238additional exemption shall be reduced by twenty percent on
239January 1 of each year after the additional exemption is
240granted. The additional exemption is not available if any owner
241of the property has previously owned property to which the
242homestead exemption provided in subsection (a) applied.
243     (d)(c)  By general law and subject to conditions specified
244therein, the Legislature may provide to renters, who are
245permanent residents, ad valorem tax relief on all ad valorem tax
246levies. Such ad valorem tax relief shall be in the form and
247amount established by general law.
248     (e)(d)  The legislature may, by general law, allow counties
249or municipalities, for the purpose of their respective tax
250levies and subject to the provisions of general law, to grant an
251additional homestead tax exemption not exceeding fifty thousand
252dollars to any person who has the legal or equitable title to
253real estate and maintains thereon the permanent residence of the
254owner and who has attained age sixty-five and whose household
255income, as defined by general law, does not exceed twenty
256thousand dollars. The general law must allow counties and
257municipalities to grant this additional exemption, within the
258limits prescribed in this subsection, by ordinance adopted in
259the manner prescribed by general law, and must provide for the
260periodic adjustment of the income limitation prescribed in this
261subsection for changes in the cost of living.
262     (f)(e)  Each veteran who is age 65 or older who is
263partially or totally permanently disabled shall receive a
264discount from the amount of the ad valorem tax otherwise owed on
265homestead property the veteran owns and resides in if the
266disability was combat related, the veteran was a resident of
267this state at the time of entering the military service of the
268United States, and the veteran was honorably discharged upon
269separation from military service. The discount shall be in a
270percentage equal to the percentage of the veteran's permanent,
271service-connected disability as determined by the United States
272Department of Veterans Affairs. To qualify for the discount
273granted by this subsection, an applicant must submit to the
274county property appraiser, by March 1, proof of residency at the
275time of entering military service, an official letter from the
276United States Department of Veterans Affairs stating the
277percentage of the veteran's service-connected disability and
278such evidence that reasonably identifies the disability as
279combat related, and a copy of the veteran's honorable discharge.
280If the property appraiser denies the request for a discount, the
281appraiser must notify the applicant in writing of the reasons
282for the denial, and the veteran may reapply. The Legislature
283may, by general law, waive the annual application requirement in
284subsequent years. This subsection shall take effect December 7,
2852006, is self-executing, and does not require implementing
286legislation.
287     BE IT FURTHER RESOLVED that the following statement be
288placed on the ballot:
289
CONSTITUTIONAL AMENDMENT
290
ARTICLE VII, SECTIONS 4 AND 6
291     COMMERCIAL AND RESIDENTIAL RENTAL PROPERTY ASSESSMENT
292LIMITATION; ADDITIONAL HOMESTEAD EXEMPTION FOR FIRST-TIME
293HOMESTEAD PROPERTY OWNERS.--Proposing amendments to the State
294Constitution to limit increases in assessments of real property
295used for commercial or residential rental purposes to the
296greater of 5 percent or the average annual percentage growth in
297revenues derived from the property over the preceding 3 years if
298ownership of the property has not changed and to provide first-
299time homestead property owners with an additional homestead
300exemption equal to 50 percent of the property's just value in
301the first year and the amount of the additional exemption to be
302reduced by 20 percent in each succeeding year.


CODING: Words stricken are deletions; words underlined are additions.