CS/HJR 441

1	House Joint Resolution
2	A joint resolution proposing an amendment to Section 4 of
3	Article VII and the creation of Section 28 of Article XII
4	of the State Constitution to provide a limitation on
5	increases in assessments of residential rental or
6	commercial property.
7
8	Be It Resolved by the Legislature of the State of Florida:
9
10	That the following amendment to Section 4 of Article VII
11	and the creation of Section 28 of Article XII of the State
12	Constitution are agreed to and shall be submitted to the
13	electors of this state for approval or rejection at the next
14	general election or at an earlier special election specifically
15	authorized by law for that purpose:
16	ARTICLE VII
17	FINANCE AND TAXATION
18	SECTION 4.  Taxation; assessments.--By general law
19	regulations shall be prescribed which shall secure a just
20	valuation of all property for ad valorem taxation, provided:
21	(a)  Agricultural land, land producing high water recharge
22	to Florida's aquifers, or land used exclusively for
23	noncommercial recreational purposes may be classified by general
24	law and assessed solely on the basis of character or use.
25	(b)  Pursuant to general law tangible personal property
26	held 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	(c)  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 herein.
34	(1)  Assessments subject to this provision 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
38	year.
39	b.  The percent change in the Consumer Price Index for all
40	urban consumers, U.S. City Average, all items 1967=100, or
41	successor reports for the preceding calendar year as initially
42	reported by the United States Department of Labor, Bureau of
43	Labor Statistics.
44	(2)  No assessment shall exceed just value.
45	(3)  After any change of ownership, as provided by general
46	law, homestead property shall be assessed at just value as of
47	January 1 of the following year, unless the provisions of
48	paragraph (8) apply. Thereafter, the homestead shall be assessed
49	as provided herein.
50	(4)  New homestead property shall be assessed at just value
51	as of January 1st of the year following the establishment of the
52	homestead, unless the provisions of paragraph (8) apply. That
53	assessment shall only change as provided herein.
54	(5)  Changes, additions, reductions, or improvements to
55	homestead property shall be assessed as provided for by general
56	law; provided, however, after the adjustment for any change,
57	addition, reduction, or improvement, the property shall be
58	assessed as provided herein.
59	(6)  In the event of a termination of homestead status, the
60	property shall be assessed as provided by general law.
61	(7)  The provisions of this amendment are severable. If any
62	of the provisions of this amendment shall be held
63	unconstitutional by any court of competent jurisdiction, the
64	decision of such court shall not affect or impair any remaining
65	provisions of this amendment.
66	(8)a.  A person who establishes a new homestead as of
67	January 1, 2009, or January 1 of any subsequent year and who has
68	received a homestead exemption pursuant to Section 6 of this
69	Article as of January 1 of either of the two years immediately
70	preceding the establishment of the new homestead is entitled to
71	have the new homestead assessed at less than just value. If this
72	revision is approved in January of 2008, a person who
73	establishes a new homestead as of January 1, 2008, is entitled
74	to have the new homestead assessed at less than just value only
75	if that person received a homestead exemption on January 1,
76	2007. The assessed value of the newly established homestead
77	shall be determined as follows:
78	1.  If the just value of the new homestead is greater than
79	or equal to the just value of the prior homestead as of January
80	1 of the year in which the prior homestead was abandoned, the
81	assessed value of the new homestead shall be the just value of
82	the new homestead minus an amount equal to the lesser of
83	$500,000 or the difference between the just value and the
84	assessed value of the prior homestead as of January 1 of the
85	year in which the prior homestead was abandoned. Thereafter, the
86	homestead shall be assessed as provided herein.
87	2.  If the just value of the new homestead is less than the
88	just value of the prior homestead as of January 1 of the year in
89	which the prior homestead was abandoned, the assessed value of
90	the new homestead shall be equal to the just value of the new
91	homestead divided by the just value of the prior homestead and
92	multiplied by the assessed value of the prior homestead.
93	However, if the difference between the just value of the new
94	homestead and the assessed value of the new homestead calculated
95	pursuant to this sub-subparagraph is greater than $500,000, the
96	assessed value of the new homestead shall be increased so that
97	the difference between the just value and the assessed value
98	equals $500,000. Thereafter, the homestead shall be assessed as
99	provided herein.
100	b.  By general law and subject to conditions specified
101	therein, the Legislature shall provide for application of this
102	paragraph to property owned by more than one person.
103	(d)  The legislature may, by general law, for assessment
104	purposes and subject to the provisions of this subsection, allow
105	counties and municipalities to authorize by ordinance that
106	historic property may be assessed solely on the basis of
107	character or use. Such character or use assessment shall apply
108	only to the jurisdiction adopting the ordinance. The
109	requirements for eligible properties must be specified by
110	general law.
111	(e)  A county may, in the manner prescribed by general law,
112	provide for a reduction in the assessed value of homestead
113	property to the extent of any increase in the assessed value of
114	that property which results from the construction or
115	reconstruction of the property for the purpose of providing
116	living quarters for one or more natural or adoptive grandparents
117	or parents of the owner of the property or of the owner's spouse
118	if at least one of the grandparents or parents for whom the
119	living quarters are provided is 62 years of age or older. Such a
120	reduction may not exceed the lesser of the following:
121	(1)  The increase in assessed value resulting from
122	construction or reconstruction of the property.
123	(2)  Twenty percent of the total assessed value of the
124	property as improved.
125	(f)  Pursuant to general law and subject to conditions
126	specified therein For all levies other than school district
127	levies, assessments of residential real property that, as
128	defined by general law, which contains nine units or fewer and
129	which is not subject to the assessment limitations set forth in
130	subsections (a) through (c) shall change only as provided in
131	this subsection.
132	(1)a.  For all levies other than school district levies,
133	assessments of residential rental property that contains nine
134	units or fewer subject to this subsection shall be changed
135	annually on the date of assessment provided by law; but those
136	changes in assessments shall not exceed ten percent (10%) of the
137	assessment for the prior year.
138	b.  If increases in assessment of real property used for
139	residential rental purposes exceed five percent (5%) of the
140	assessment for the prior year, the assessment shall be limited
141	to the average annual percentage growth in revenues derived from
142	the property owner over the preceding three years if ownership
143	has not changed.
144	(2)  No assessment shall exceed just value.
145	(3)  After a change of ownership or control, as defined by
146	general law, including any change of ownership of a legal entity
147	that owns the property, such property shall be assessed at just
148	value as of the next assessment date. Thereafter, such property
149	shall be assessed as provided in this subsection.
150	(4)  Changes, additions, reductions, or improvements to
151	such property shall be assessed as provided for by general law;
152	however, after the adjustment for any change, addition,
153	reduction, or improvement, the property shall be assessed as
154	provided in this subsection.
155	(g)   Pursuant to general law and subject to conditions
156	specified therein For all levies other than school district
157	levies, assessments of real property that is not subject to the
158	assessment limitations set forth in subsections (a) through (c)
159	and (f) shall change only as provided in this subsection.
160	(1)a.  Assessments subject to this subsection shall be
161	changed annually on the date of assessment provided by law; but
162	those changes in assessments shall not exceed ten percent (10%)
163	of the assessment for the prior year.
164	b.  If increases in assessments of real property used for
165	commercial purposes exceed five percent (5%)of the assessment
166	for the prior year, the assessment shall be limited to the
167	average annual percentage growth in revenues derived from the
168	property over the preceding three years if ownership has not
169	changed.
170	(2)  No assessment shall exceed just value.
171	(3)  The legislature must provide that such property shall
172	be assessed at just value as of the next assessment date after a
173	qualifying improvement, as defined by general law, is made to
174	such property. Thereafter, such property shall be assessed as
175	provided in this subsection.
176	(4)  The legislature may provide that such property shall
177	be assessed at just value as of the next assessment date after a
178	change of ownership or control, as defined by general law,
179	including any change of ownership of the legal entity that owns
180	the property. Thereafter, such property shall be assessed as
181	provided in this subsection.
182	(5)  Changes, additions, reductions, or improvements to
183	such property shall be assessed as provided for by general law;
184	however, after the adjustment for any change, addition,
185	reduction, or improvement, the property shall be assessed as
186	provided in this subsection.
187	ARTICLE XII
188	SCHEDULE
189	SECTION 28.  Residential rental or commercial property
190	assessment increase limitation.--The amendment to Section 4 of
191	Article VII, providing for assessment limitations for
192	residential rental real property and property used for
193	commercial purposes, if submitted to the electors of this state
194	for approval or rejection at the next general election, shall
195	take effect January 1 of the year following such general
196	election.
197	BE IT FURTHER RESOLVED that the following statement be
198	placed on the ballot:
199	CONSTITUTIONAL AMENDMENT
200	ARTICLE VII, SECTION 4
201	RESIDENTIAL RENTAL OR COMMERCIAL PROPERTY ASSESSMENT
202	INCREASE LIMITATION.--Proposing an amendment to the State
203	Constitution to limit increases in assessments of real property
204	used for residential rental or commercial purposes that exceed 5
205	percent of the assessment for the prior year to the average
206	annual percentage growth in revenues derived from the property
207	over the preceding 3 years if ownership has not changed.

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