HB 0353

CS

CHAMBER ACTION

1	The Finance & Tax Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	House Joint Resolution
6	A joint resolution proposing amendments to Sections 4 and
7	6 of Article VII and the creation of Section 26 of Article
8	XII of the State Constitution to provide for a phased
9	increase in the homestead exemption over 10 years from
10	$25,000 to $50,000 for all levies, limit the difference
11	between the just value and the assessed value for
12	homestead property, provide for assessing newly
13	established homestead property at less than just value
14	subject to a limitation, and schedule the amendments to
15	take effect January 1, 2007, if adopted.
16
17	Be It Resolved by the Legislature of the State of Florida:
18
19	That the following amendments to Sections 4 and 6 of
20	Article VII and the creation of Section 26 of Article XII of the
21	State Constitution are agreed to and shall be submitted to the
22	electors of this state for approval or rejection at the next
23	general election or at an earlier special election specifically
24	authorized by law for that purpose:
25	ARTICLE VII
26	FINANCE AND TAXATION
27	SECTION 4.  Taxation; assessments.--By general law
28	regulations shall be prescribed which shall secure a just
29	valuation of all property for ad valorem taxation, provided:
30	(a)  Agricultural land, land producing high water recharge
31	to Florida's aquifers, or land used exclusively for
32	noncommercial recreational purposes may be classified by general
33	law and assessed solely on the basis of character or use.
34	(b)  Pursuant to general law tangible personal property
35	held for sale as stock in trade and livestock may be valued for
36	taxation at a specified percentage of its value, may be
37	classified for tax purposes, or may be exempted from taxation.
38	(c)  All persons entitled to a homestead exemption under
39	Section 6 of this Article shall have their homestead assessed at
40	just value as of January 1 of the year following the effective
41	date of this amendment. This assessment shall change only as
42	provided herein.
43	(1)  Assessments subject to this provision shall be changed
44	annually on January 1st of each year; but those changes in
45	assessments shall not exceed the lower of the following:
46	a.  Three percent (3%) of the assessment for the prior
47	year.
48	b.  The percent change in the Consumer Price Index for all
49	urban consumers, U.S. City Average, all items 1967=100, or
50	successor reports for the preceding calendar year as initially
51	reported by the United States Department of Labor, Bureau of
52	Labor Statistics.
53	(2)  No assessment shall exceed just value.
54	(3)  The difference between just value and assessed value
55	shall not exceed $100,000 unless the provisions of paragraph
56	(10) apply.
57	(4)(3)  After any change of ownership, as provided by
58	general law, homestead property shall be assessed at just value
59	as of January 1 of the following year, unless the provisions of
60	paragraph (9) apply. Thereafter, the homestead shall be assessed
61	as provided herein.
62	(5)(4)  New homestead property shall be assessed at just
63	value as of January 1st of the year following the establishment
64	of the homestead, unless the provisions of paragraph (9) apply.
65	That assessment shall only change as provided herein.
66	(6)(5)  Changes, additions, reductions, or improvements to
67	homestead property shall be assessed as provided for by general
68	law; provided, however, after the adjustment for any change,
69	addition, reduction, or improvement, the property shall be
70	assessed as provided herein.
71	(7)(6)  In the event of a termination of homestead status,
72	the property shall be assessed as provided by general law.
73	(8)(7)  The provisions of this amendment are severable. If
74	any of the provisions of this amendment shall be held
75	unconstitutional by any court of competent jurisdiction, the
76	decision of such court shall not affect or impair any remaining
77	provisions of this amendment.
78	(9)  When a person sells or transfers his or her homestead
79	within this state and within one year establishes within the
80	same county another property as his or her new homestead, the
81	newly established homestead property shall be initially assessed
82	at less than just value, as provided by general law. The
83	difference between the new homestead property's just value and
84	its assessed value in the first year the homestead is
85	established shall equal the difference between the prior
86	homestead property's just value and its assessed value in the
87	year of sale or transfer, provided the difference does not
88	exceed $100,000. However, in no case shall this adjustment
89	result in the new homestead property having an assessed value
90	less than the assessed value of the previous homestead property.
91	Thereafter, the homestead property shall be assessed as provided
92	herein.
93	(10)  For a homestead established before January 1, 2007,
94	the difference between just value and assessed value may not
95	exceed the difference between just value and assessed value that
96	exists on January 1, 2007, plus $100,000.
97	(d)  The legislature may, by general law, for assessment
98	purposes and subject to the provisions of this subsection, allow
99	counties and municipalities to authorize by ordinance that
100	historic property may be assessed solely on the basis of
101	character or use. Such character or use assessment shall apply
102	only to the jurisdiction adopting the ordinance. The
103	requirements for eligible properties must be specified by
104	general law.
105	(e)  A county may, in the manner prescribed by general law,
106	provide for a reduction in the assessed value of homestead
107	property to the extent of any increase in the assessed value of
108	that property which results from the construction or
109	reconstruction of the property for the purpose of providing
110	living quarters for one or more natural or adoptive grandparents
111	or parents of the owner of the property or of the owner's spouse
112	if at least one of the grandparents or parents for whom the
113	living quarters are provided is 62 years of age or older. Such a
114	reduction may not exceed the lesser of the following:
115	(1)  The increase in assessed value resulting from
116	construction or reconstruction of the property.
117	(2)  Twenty percent of the total assessed value of the
118	property as improved.
119	SECTION 6.  Homestead exemptions.--
120	(a)  Every person who has the legal or equitable title to
121	real estate and maintains thereon the permanent residence of the
122	owner, or another legally or naturally dependent upon the owner,
123	shall be exempt from taxation thereon, except assessments for
124	special benefits, up to the assessed valuation of five thousand
125	dollars, upon establishment of right thereto in the manner
126	prescribed by law. The real estate may be held by legal or
127	equitable title, by the entireties, jointly, in common, as a
128	condominium, or indirectly by stock ownership or membership
129	representing the owner's or member's proprietary interest in a
130	corporation owning a fee or a leasehold initially in excess of
131	ninety-eight years.
132	(b)  Not more than one exemption shall be allowed any
133	individual or family unit or with respect to any residential
134	unit. No exemption shall exceed the value of the real estate
135	assessable to the owner or, in case of ownership through stock
136	or membership in a corporation, the value of the proportion
137	which the interest in the corporation bears to the assessed
138	value of the property.
139	(c)(1)  By general law and subject to conditions specified
140	therein, the exemption shall be increased to a total of the
141	following amounts twenty-five thousand dollars of the assessed
142	value of the real estate for each school district levy: twenty-
143	seven thousand five hundred dollars with respect to 2007
144	assessments; thirty thousand dollars with respect to 2008
145	assessments; thirty-two thousand five hundred dollars with
146	respect to 2009 assessments; thirty-five thousand dollars with
147	respect to 2010 assessments; thirty-seven thousand five hundred
148	dollars with respect to 2011 assessments; forty thousand dollars
149	with respect to 2012 assessments; forty-two thousand five
150	hundred dollars with respect to 2013 assessments; forty-five
151	thousand dollars with respect to 2014 assessments; forty-seven
152	thousand five hundred dollars with respect to 2015 assessments;
153	and fifty thousand dollars with respect to 2016 assessments. In
154	2017 and each year thereafter, the exemption shall increase
155	annually by the percentage change in the Consumer Price Index
156	for all urban consumers, U.S. City Average, all items 1967=100,
157	or successor reports for the preceding calendar year as
158	initially reported by the United States Department of Labor,
159	Bureau of Labor Statistics.
160	(2)  By general law and subject to conditions specified
161	therein, the exemption for all other levies may be increased up
162	to an amount not exceeding ten thousand dollars of the assessed
163	value of the real estate if the owner has attained age sixty-
164	five or is totally and permanently disabled and if the owner is
165	not entitled to the exemption provided in subsection (d).
166	(d)  By general law and subject to conditions specified
167	therein, the exemption shall be increased to a total of the
168	following amounts of assessed value of real estate for each levy
169	other than those of school districts: twenty-seven fifteen
170	thousand five hundred dollars with respect to 2007 1980
171	assessments; thirty twenty thousand dollars with respect to 2008
172	1981 assessments; thirty-two twenty-five thousand five hundred
173	dollars with respect to 2009 assessments; thirty-five thousand
174	dollars with respect to 2010 assessments; thirty-seven thousand
175	five hundred dollars with respect to 2011 assessments; forty
176	thousand dollars with respect to 2012 assessments; forty-two
177	thousand five hundred dollars with respect to 2013 assessments;
178	forty-five thousand dollars with respect to 2014 assessments;
179	forty-seven thousand five hundred dollars with respect to 2015
180	assessments; and fifty thousand dollars with respect to 2016
181	assessments. In 2017 for 1982 and each year thereafter, the
182	exemption shall increase annually by the percentage change in
183	the Consumer Price Index for all urban consumers, U.S. City
184	Average, all items 1967=100, or successor reports for the
185	preceding calendar year as initially reported by the United
186	States Department of Labor, Bureau of Labor Statistics. However,
187	such increase shall not apply with respect to any assessment
188	roll until such roll is first determined to be in compliance
189	with the provisions of section 4 by a state agency designated by
190	general law. This subsection shall stand repealed on the
191	effective date of any amendment to section 4 which provides for
192	the assessment of homestead property at a specified percentage
193	of its just value.
194	(e)  By general law and subject to conditions specified
195	therein, the Legislature may provide to renters, who are
196	permanent residents, ad valorem tax relief on all ad valorem tax
197	levies. Such ad valorem tax relief shall be in the form and
198	amount established by general law.
199	(f)  The legislature may, by general law, allow counties or
200	municipalities, for the purpose of their respective tax levies
201	and subject to the provisions of general law, to grant an
202	additional homestead tax exemption not exceeding twenty-five
203	thousand dollars to any person who has the legal or equitable
204	title to real estate and maintains thereon the permanent
205	residence of the owner and who has attained age sixty-five and
206	whose household income, as defined by general law, does not
207	exceed twenty thousand dollars. The general law must allow
208	counties and municipalities to grant this additional exemption,
209	within the limits prescribed in this subsection, by ordinance
210	adopted in the manner prescribed by general law, and must
211	provide for the periodic adjustment of the income limitation
212	prescribed in this subsection for changes in the cost of living.
213	ARTICLE XII
214	SCHEDULE
215	SECTION 26.  Homestead property assessment limitations;
216	increased homestead exemption.--The amendments to Sections 4 and
217	6 of Article VII, modifying the limitations on the assessment of
218	homestead property and increasing the amount of the homestead
219	exemption, shall take effect January 1, 2007.
220	BE IT FURTHER RESOLVED that the following statement be
221	placed on the ballot:
222	CONSTITUTIONAL AMENDMENT
223	ARTICLE VII, SECTIONS 4 AND 6
224	ARTICLE XII, SECTION 26
225	ASSESSMENT OF HOMESTEAD PROPERTY.--Proposing amendments to
226	the State Constitution to provide for a phased increase in the
227	homestead exemption from $25,000 to $50,000 over 10 years for
228	all levies, school districts or otherwise; provide that
229	homeowners who move from one homestead property to another in
230	the same county would have the new homestead property assessed
231	at up to $100,000 less than just value depending on the
232	differential between the just value and the assessed value of
233	their previous homestead property; limit the difference between
234	the just value and the assessed value of homestead property to
235	$100,000 except property established as homestead property
236	before January 1, 2007, for which the difference between just
237	value and assessed value may not exceed the difference between
238	just value and assessed value existing on January 1, 2007, plus
239	$100,000; and schedule the amendments to take effect January 1,
240	2007, if adopted.

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