Florida Senate - 2015                             CS for SJR 400
       
       
        
       By the Committee on Communications, Energy, and Public
       Utilities; and Senator Brandes
       
       
       
       
       579-02143-15                                           2015400c1
    1                       Senate Joint Resolution                     
    2         A joint resolution proposing amendments to Sections 3
    3         and 4 of Article VII and the creation of Section 34 of
    4         Article XII of the State Constitution to require the
    5         Legislature, by general law, to exempt the assessed
    6         value of a renewable energy source device or a
    7         component thereof from the tangible personal property
    8         tax, to allow the Legislature, by general law, to
    9         prohibit the consideration of the installation of such
   10         device or component in determining the assessed value
   11         of residential and nonresidential real property for
   12         the purpose of ad valorem taxation, and to provide
   13         effective and expiration dates.
   14          
   15  Be It Resolved by the Legislature of the State of Florida:
   16  
   17         That the following amendment to Sections 3 and 4 of Article
   18  VII and the creation of Section 34 of Article XII of the State
   19  Constitution are agreed to and shall be submitted to the
   20  electors of this state for approval or rejection at the next
   21  general election or at an earlier special election specifically
   22  authorized by law for that purpose:
   23                             ARTICLE VII                           
   24                        FINANCE AND TAXATION                       
   25         SECTION 3. Taxes; exemptions.—
   26         (a) All property owned by a municipality and used
   27  exclusively by it for municipal or public purposes shall be
   28  exempt from taxation. A municipality, owning property outside
   29  the municipality, may be required by general law to make payment
   30  to the taxing unit in which the property is located. Such
   31  portions of property as are used predominantly for educational,
   32  literary, scientific, religious or charitable purposes may be
   33  exempted by general law from taxation.
   34         (b) There shall be exempt from taxation, cumulatively, to
   35  every head of a family residing in this state, household goods
   36  and personal effects to the value fixed by general law, not less
   37  than one thousand dollars, and to every widow or widower or
   38  person who is blind or totally and permanently disabled,
   39  property to the value fixed by general law not less than five
   40  hundred dollars.
   41         (c) Any county or municipality may, for the purpose of its
   42  respective tax levy and subject to the provisions of this
   43  subsection and general law, grant community and economic
   44  development ad valorem tax exemptions to new businesses and
   45  expansions of existing businesses, as defined by general law.
   46  Such an exemption may be granted only by ordinance of the county
   47  or municipality, and only after the electors of the county or
   48  municipality voting on such question in a referendum authorize
   49  the county or municipality to adopt such ordinances. An
   50  exemption so granted shall apply to improvements to real
   51  property made by or for the use of a new business and
   52  improvements to real property related to the expansion of an
   53  existing business and shall also apply to tangible personal
   54  property of such new business and tangible personal property
   55  related to the expansion of an existing business. The amount or
   56  limits of the amount of such exemption shall be specified by
   57  general law. The period of time for which such exemption may be
   58  granted to a new business or expansion of an existing business
   59  shall be determined by general law. The authority to grant such
   60  exemption shall expire ten years from the date of approval by
   61  the electors of the county or municipality, and may be renewable
   62  by referendum as provided by general law.
   63         (d) Any county or municipality may, for the purpose of its
   64  respective tax levy and subject to the provisions of this
   65  subsection and general law, grant historic preservation ad
   66  valorem tax exemptions to owners of historic properties. This
   67  exemption may be granted only by ordinance of the county or
   68  municipality. The amount or limits of the amount of this
   69  exemption and the requirements for eligible properties must be
   70  specified by general law. The period of time for which this
   71  exemption may be granted to a property owner shall be determined
   72  by general law.
   73         (e) By general law and subject to conditions specified
   74  therein:,
   75         (1) Twenty-five thousand dollars of the assessed value of
   76  property subject to tangible personal property tax shall be
   77  exempt from ad valorem taxation.
   78         (2) The assessed value of a renewable energy source device,
   79  or a component thereof, shall be exempt from the tangible
   80  personal property tax.
   81         (f) There shall be granted an ad valorem tax exemption for
   82  real property dedicated in perpetuity for conservation purposes,
   83  including real property encumbered by perpetual conservation
   84  easements or by other perpetual conservation protections, as
   85  defined by general law.
   86         (g) By general law and subject to the conditions specified
   87  therein, each person who receives a homestead exemption as
   88  provided in section 6 of this article; who was a member of the
   89  United States military or military reserves, the United States
   90  Coast Guard or its reserves, or the Florida National Guard; and
   91  who was deployed during the preceding calendar year on active
   92  duty outside the continental United States, Alaska, or Hawaii in
   93  support of military operations designated by the legislature
   94  shall receive an additional exemption equal to a percentage of
   95  the taxable value of his or her homestead property. The
   96  applicable percentage shall be calculated as the number of days
   97  during the preceding calendar year the person was deployed on
   98  active duty outside the continental United States, Alaska, or
   99  Hawaii in support of military operations designated by the
  100  legislature divided by the number of days in that year.
  101         SECTION 4. Taxation; assessments.—By general law
  102  regulations shall be prescribed which shall secure a just
  103  valuation of all property for ad valorem taxation, provided:
  104         (a) Agricultural land, land producing high water recharge
  105  to Florida’s aquifers, or land used exclusively for
  106  noncommercial recreational purposes may be classified by general
  107  law and assessed solely on the basis of character or use.
  108         (b) As provided by general law and subject to conditions,
  109  limitations, and reasonable definitions specified therein, land
  110  used for conservation purposes shall be classified by general
  111  law and assessed solely on the basis of character or use.
  112         (c) Pursuant to general law tangible personal property held
  113  for sale as stock in trade and livestock may be valued for
  114  taxation at a specified percentage of its value, may be
  115  classified for tax purposes, or may be exempted from taxation.
  116         (d) All persons entitled to a homestead exemption under
  117  Section 6 of this Article shall have their homestead assessed at
  118  just value as of January 1 of the year following the effective
  119  date of this amendment. This assessment shall change only as
  120  provided in this subsection.
  121         (1) Assessments subject to this subsection shall be changed
  122  annually on January 1st of each year; but those changes in
  123  assessments shall not exceed the lower of the following:
  124         a. Three percent (3%) of the assessment for the prior year.
  125         b. The percent change in the Consumer Price Index for all
  126  urban consumers, U.S. City Average, all items 1967=100, or
  127  successor reports for the preceding calendar year as initially
  128  reported by the United States Department of Labor, Bureau of
  129  Labor Statistics.
  130         (2) No assessment shall exceed just value.
  131         (3) After any change of ownership, as provided by general
  132  law, homestead property shall be assessed at just value as of
  133  January 1 of the following year, unless the provisions of
  134  paragraph (8) apply. Thereafter, the homestead shall be assessed
  135  as provided in this subsection.
  136         (4) New homestead property shall be assessed at just value
  137  as of January 1st of the year following the establishment of the
  138  homestead, unless the provisions of paragraph (8) apply. That
  139  assessment shall only change as provided in this subsection.
  140         (5) Changes, additions, reductions, or improvements to
  141  homestead property shall be assessed as provided for by general
  142  law; provided, however, after the adjustment for any change,
  143  addition, reduction, or improvement, the property shall be
  144  assessed as provided in this subsection.
  145         (6) In the event of a termination of homestead status, the
  146  property shall be assessed as provided by general law.
  147         (7) The provisions of this amendment are severable. If any
  148  of the provisions of this amendment shall be held
  149  unconstitutional by any court of competent jurisdiction, the
  150  decision of such court shall not affect or impair any remaining
  151  provisions of this amendment.
  152         (8)a. A person who establishes a new homestead as of
  153  January 1, 2009, or January 1 of any subsequent year and who has
  154  received a homestead exemption pursuant to Section 6 of this
  155  Article as of January 1 of either of the two years immediately
  156  preceding the establishment of the new homestead is entitled to
  157  have the new homestead assessed at less than just value. If this
  158  revision is approved in January of 2008, a person who
  159  establishes a new homestead as of January 1, 2008, is entitled
  160  to have the new homestead assessed at less than just value only
  161  if that person received a homestead exemption on January 1,
  162  2007. The assessed value of the newly established homestead
  163  shall be determined as follows:
  164         1. If the just value of the new homestead is greater than
  165  or equal to the just value of the prior homestead as of January
  166  1 of the year in which the prior homestead was abandoned, the
  167  assessed value of the new homestead shall be the just value of
  168  the new homestead minus an amount equal to the lesser of
  169  $500,000 or the difference between the just value and the
  170  assessed value of the prior homestead as of January 1 of the
  171  year in which the prior homestead was abandoned. Thereafter, the
  172  homestead shall be assessed as provided in this subsection.
  173         2. If the just value of the new homestead is less than the
  174  just value of the prior homestead as of January 1 of the year in
  175  which the prior homestead was abandoned, the assessed value of
  176  the new homestead shall be equal to the just value of the new
  177  homestead divided by the just value of the prior homestead and
  178  multiplied by the assessed value of the prior homestead.
  179  However, if the difference between the just value of the new
  180  homestead and the assessed value of the new homestead calculated
  181  pursuant to this sub-subparagraph is greater than $500,000, the
  182  assessed value of the new homestead shall be increased so that
  183  the difference between the just value and the assessed value
  184  equals $500,000. Thereafter, the homestead shall be assessed as
  185  provided in this subsection.
  186         b. By general law and subject to conditions specified
  187  therein, the legislature shall provide for application of this
  188  paragraph to property owned by more than one person.
  189         (e) The legislature may, by general law, for assessment
  190  purposes and subject to the provisions of this subsection, allow
  191  counties and municipalities to authorize by ordinance that
  192  historic property may be assessed solely on the basis of
  193  character or use. Such character or use assessment shall apply
  194  only to the jurisdiction adopting the ordinance. The
  195  requirements for eligible properties must be specified by
  196  general law.
  197         (f) A county may, in the manner prescribed by general law,
  198  provide for a reduction in the assessed value of homestead
  199  property to the extent of any increase in the assessed value of
  200  that property which results from the construction or
  201  reconstruction of the property for the purpose of providing
  202  living quarters for one or more natural or adoptive grandparents
  203  or parents of the owner of the property or of the owner’s spouse
  204  if at least one of the grandparents or parents for whom the
  205  living quarters are provided is 62 years of age or older. Such a
  206  reduction may not exceed the lesser of the following:
  207         (1) The increase in assessed value resulting from
  208  construction or reconstruction of the property.
  209         (2) Twenty percent of the total assessed value of the
  210  property as improved.
  211         (g) For all levies other than school district levies,
  212  assessments of residential real property, as defined by general
  213  law, which contains nine units or fewer and which is not subject
  214  to the assessment limitations set forth in subsections (a)
  215  through (d) shall change only as provided in this subsection.
  216         (1) Assessments subject to this subsection shall be changed
  217  annually on the date of assessment provided by law; but those
  218  changes in assessments shall not exceed ten percent (10%) of the
  219  assessment for the prior year.
  220         (2) No assessment shall exceed just value.
  221         (3) After a change of ownership or control, as defined by
  222  general law, including any change of ownership of a legal entity
  223  that owns the property, such property shall be assessed at just
  224  value as of the next assessment date. Thereafter, such property
  225  shall be assessed as provided in this subsection.
  226         (4) Changes, additions, reductions, or improvements to such
  227  property shall be assessed as provided for by general law;
  228  however, after the adjustment for any change, addition,
  229  reduction, or improvement, the property shall be assessed as
  230  provided in this subsection.
  231         (h) For all levies other than school district levies,
  232  assessments of real property that is not subject to the
  233  assessment limitations set forth in subsections (a) through (d)
  234  and (g) shall change only as provided in this subsection.
  235         (1) Assessments subject to this subsection shall be changed
  236  annually on the date of assessment provided by law; but those
  237  changes in assessments shall not exceed ten percent (10%) of the
  238  assessment for the prior year.
  239         (2) No assessment shall exceed just value.
  240         (3) The legislature must provide that such property shall
  241  be assessed at just value as of the next assessment date after a
  242  qualifying improvement, as defined by general law, is made to
  243  such property. Thereafter, such property shall be assessed as
  244  provided in this subsection.
  245         (4) The legislature may provide that such property shall be
  246  assessed at just value as of the next assessment date after a
  247  change of ownership or control, as defined by general law,
  248  including any change of ownership of the legal entity that owns
  249  the property. Thereafter, such property shall be assessed as
  250  provided in this subsection.
  251         (5) Changes, additions, reductions, or improvements to such
  252  property shall be assessed as provided for by general law;
  253  however, after the adjustment for any change, addition,
  254  reduction, or improvement, the property shall be assessed as
  255  provided in this subsection.
  256         (i) The legislature, by general law and subject to
  257  conditions specified therein, may prohibit the consideration of
  258  the following in the determination of the assessed value of real
  259  property used for residential purposes:
  260         (1) Any change or improvement to real property used for
  261  residential purposes made to improve for the purpose of
  262  improving the property’s resistance to wind damage.
  263         (2) The installation of a renewable energy source device or
  264  a component thereof.
  265         (j)(1) The assessment of the following working waterfront
  266  properties shall be based upon the current use of the property:
  267         a. Land used predominantly for commercial fishing purposes.
  268         b. Land that is accessible to the public and used for
  269  vessel launches into waters that are navigable.
  270         c. Marinas and drystacks that are open to the public.
  271         d. Water-dependent marine manufacturing facilities,
  272  commercial fishing facilities, and marine vessel construction
  273  and repair facilities and their support activities.
  274         (2) The assessment benefit provided by this subsection is
  275  subject to conditions and limitations and reasonable definitions
  276  as specified by the legislature by general law.
  277                             ARTICLE XII                           
  278                              SCHEDULE                             
  279  SECTION 34. Renewable energy source devices and components
  280  thereof; exemption from certain taxation and assessment.—This
  281  section, the amendment to subsection (e) of Section 3 of Article
  282  VII requiring the legislature, by general law, to exempt the
  283  assessed value of a renewable energy source device, or a
  284  component thereof, from the tangible personal property tax, and
  285  the amendment to subsection (i) of Section 4 of Article VII
  286  allowing the legislature, by general law, to prohibit the
  287  consideration of the installation of a renewable energy source
  288  device, or a component thereof, in determining the assessed
  289  value of real property for the purpose of ad valorem taxation
  290  shall take effect on January 1, 2017, and shall expire on
  291  December 31, 2036. Upon expiration, this section shall be
  292  repealed and the text of subsection (e) of Section 3 of Article
  293  VII and subsection (i) of Section 4 of Article VII shall revert
  294  to that in existence on December 31, 2016, except that any
  295  amendments to such text otherwise adopted shall be preserved and
  296  continue to operate to the extent that such amendments are not
  297  dependent upon the portions of text which expire pursuant to
  298  this section.
  299         BE IT FURTHER RESOLVED that the following statement be
  300  placed on the ballot:
  301                      CONSTITUTIONAL AMENDMENT                     
  302                    ARTICLE VII, SECTIONS 3 AND 4                  
  303                       ARTICLE XII, SECTION 34                     
  304         RENEWABLE ENERGY SOURCE DEVICES AND COMPONENTS THEREOF;
  305  EXEMPTION FROM CERTAIN TAXATION AND ASSESSMENT.—Proposing an
  306  amendment to the State Constitution to require the Legislature
  307  to exempt the assessed value of a renewable energy source device
  308  or component thereof from the tangible personal property tax and
  309  allow the Legislature to prohibit consideration of the
  310  installation of such device or component in determining the
  311  assessed value of all real property for the purpose of ad
  312  valorem taxation. This amendment takes effect January 1, 2017,
  313  and expires on December 31, 2036.