Florida Senate - 2018                                    SJR 136
       
       
        
       By Senator Steube
       
       
       
       
       
       23-00073-18                                            2018136__
    1                       Senate Joint Resolution                     
    2         A joint resolution proposing an amendment to Section 4
    3         of Article VII and the creation of a new section in
    4         Article XII of the State Constitution authorizing the
    5         Legislature to exempt certain manufacturing equipment
    6         from the tangible personal property tax or permitting
    7         such equipment to be assessed at less than just value
    8         pursuant to an accelerated depreciation method
    9         established by general law, and providing an effective
   10         date.
   11          
   12  Be It Resolved by the Legislature of the State of Florida:
   13  
   14         That the following amendment to Section 4 of Article VII
   15  and the creation of a new section in Article XII of the State
   16  Constitution are agreed to and shall be submitted to the
   17  electors of this state for approval or rejection at the next
   18  general election or at an earlier special election specifically
   19  authorized by law for that purpose:
   20                             ARTICLE VII                           
   21                        FINANCE AND TAXATION                       
   22         SECTION 4. Taxation; assessments.—
   23         By general law regulations shall be prescribed which shall
   24  secure a just valuation of all property for ad valorem taxation,
   25  provided:
   26         (a) Agricultural land, land producing high water recharge
   27  to Florida’s aquifers, or land used exclusively for
   28  noncommercial recreational purposes may be classified by general
   29  law and assessed solely on the basis of character or use.
   30         (b) As provided by general law and subject to conditions,
   31  limitations, and reasonable definitions specified therein, land
   32  used for conservation purposes shall be classified by general
   33  law and assessed solely on the basis of character or use.
   34         (c) Pursuant to general law, tangible personal property:
   35         (1) Held for sale as stock in trade and livestock may be
   36  valued for taxation at a specified percentage of its value, may
   37  be classified for tax purposes, or may be exempted from
   38  taxation.
   39         (2)In the form of manufacturing equipment, as defined by
   40  general law, which is used by a business primarily engaged in
   41  manufacturing may be exempted from taxation or may be assessed
   42  at less than just value pursuant to a method of accelerated
   43  depreciation established by general law.
   44         (d) All persons entitled to a homestead exemption under
   45  Section 6 of this Article shall have their homestead assessed at
   46  just value as of January 1 of the year following the effective
   47  date of this amendment. This assessment shall change only as
   48  provided in this subsection.
   49         (1) Assessments subject to this subsection shall be changed
   50  annually on January 1st of each year; but those changes in
   51  assessments shall not exceed the lower of the following:
   52         a. Three percent (3%) of the assessment for the prior year.
   53         b. The percent change in the Consumer Price Index for all
   54  urban consumers, U.S. City Average, all items 1967=100, or
   55  successor reports for the preceding calendar year as initially
   56  reported by the United States Department of Labor, Bureau of
   57  Labor Statistics.
   58         (2) No assessment shall exceed just value.
   59         (3) After any change of ownership, as provided by general
   60  law, homestead property shall be assessed at just value as of
   61  January 1 of the following year, unless the provisions of
   62  paragraph (8) apply. Thereafter, the homestead shall be assessed
   63  as provided in this subsection.
   64         (4) New homestead property shall be assessed at just value
   65  as of January 1st of the year following the establishment of the
   66  homestead, unless the provisions of paragraph (8) apply. That
   67  assessment shall only change as provided in this subsection.
   68         (5) Changes, additions, reductions, or improvements to
   69  homestead property shall be assessed as provided for by general
   70  law; provided, however, after the adjustment for any change,
   71  addition, reduction, or improvement, the property shall be
   72  assessed as provided in this subsection.
   73         (6) In the event of a termination of homestead status, the
   74  property shall be assessed as provided by general law.
   75         (7) The provisions of this amendment are severable. If any
   76  of the provisions of this amendment shall be held
   77  unconstitutional by any court of competent jurisdiction, the
   78  decision of such court shall not affect or impair any remaining
   79  provisions of this amendment.
   80         (8)
   81         a. A person who establishes a new homestead as of January
   82  1, 2009, or January 1 of any subsequent year and who has
   83  received a homestead exemption pursuant to Section 6 of this
   84  Article as of January 1 of either of the two years immediately
   85  preceding the establishment of the new homestead is entitled to
   86  have the new homestead assessed at less than just value. If this
   87  revision is approved in January of 2008, a person who
   88  establishes a new homestead as of January 1, 2008, is entitled
   89  to have the new homestead assessed at less than just value only
   90  if that person received a homestead exemption on January 1,
   91  2007. The assessed value of the newly established homestead
   92  shall be determined as follows:
   93         1. If the just value of the new homestead is greater than
   94  or equal to the just value of the prior homestead as of January
   95  1 of the year in which the prior homestead was abandoned, the
   96  assessed value of the new homestead shall be the just value of
   97  the new homestead minus an amount equal to the lesser of
   98  $500,000 or the difference between the just value and the
   99  assessed value of the prior homestead as of January 1 of the
  100  year in which the prior homestead was abandoned. Thereafter, the
  101  homestead shall be assessed as provided in this subsection.
  102         2. If the just value of the new homestead is less than the
  103  just value of the prior homestead as of January 1 of the year in
  104  which the prior homestead was abandoned, the assessed value of
  105  the new homestead shall be equal to the just value of the new
  106  homestead divided by the just value of the prior homestead and
  107  multiplied by the assessed value of the prior homestead.
  108  However, if the difference between the just value of the new
  109  homestead and the assessed value of the new homestead calculated
  110  pursuant to this sub-subparagraph is greater than $500,000, the
  111  assessed value of the new homestead shall be increased so that
  112  the difference between the just value and the assessed value
  113  equals $500,000. Thereafter, the homestead shall be assessed as
  114  provided in this subsection.
  115         b. By general law and subject to conditions specified
  116  therein, the legislature shall provide for application of this
  117  paragraph to property owned by more than one person.
  118         (e) The legislature may, by general law, for assessment
  119  purposes and subject to the provisions of this subsection, allow
  120  counties and municipalities to authorize by ordinance that
  121  historic property may be assessed solely on the basis of
  122  character or use. Such character or use assessment shall apply
  123  only to the jurisdiction adopting the ordinance. The
  124  requirements for eligible properties must be specified by
  125  general law.
  126         (f) A county may, in the manner prescribed by general law,
  127  provide for a reduction in the assessed value of homestead
  128  property to the extent of any increase in the assessed value of
  129  that property which results from the construction or
  130  reconstruction of the property for the purpose of providing
  131  living quarters for one or more natural or adoptive grandparents
  132  or parents of the owner of the property or of the owner’s spouse
  133  if at least one of the grandparents or parents for whom the
  134  living quarters are provided is 62 years of age or older. Such a
  135  reduction may not exceed the lesser of the following:
  136         (1) The increase in assessed value resulting from
  137  construction or reconstruction of the property.
  138         (2) Twenty percent of the total assessed value of the
  139  property as improved.
  140         (g) For all levies other than school district levies,
  141  assessments of residential real property, as defined by general
  142  law, which contains nine units or fewer and which is not subject
  143  to the assessment limitations set forth in subsections (a)
  144  through (d) shall change only as provided in this subsection.
  145         (1) Assessments subject to this subsection shall be changed
  146  annually on the date of assessment provided by law; but those
  147  changes in assessments shall not exceed ten percent (10%) of the
  148  assessment for the prior year.
  149         (2) No assessment shall exceed just value.
  150         (3) After a change of ownership or control, as defined by
  151  general law, including any change of ownership of a legal entity
  152  that owns the property, such property shall be assessed at just
  153  value as of the next assessment date. Thereafter, such property
  154  shall be assessed as provided in this subsection.
  155         (4) Changes, additions, reductions, or improvements to such
  156  property shall be assessed as provided for by general law;
  157  however, after the adjustment for any change, addition,
  158  reduction, or improvement, the property shall be assessed as
  159  provided in this subsection.
  160         (h) For all levies other than school district levies,
  161  assessments of real property that is not subject to the
  162  assessment limitations set forth in subsections (a) through (d)
  163  and (g) shall change only as provided in this subsection.
  164         (1) Assessments subject to this subsection shall be changed
  165  annually on the date of assessment provided by law; but those
  166  changes in assessments shall not exceed ten percent (10%) of the
  167  assessment for the prior year.
  168         (2) No assessment shall exceed just value.
  169         (3) The legislature must provide that such property shall
  170  be assessed at just value as of the next assessment date after a
  171  qualifying improvement, as defined by general law, is made to
  172  such property. Thereafter, such property shall be assessed as
  173  provided in this subsection.
  174         (4) The legislature may provide that such property shall be
  175  assessed at just value as of the next assessment date after a
  176  change of ownership or control, as defined by general law,
  177  including any change of ownership of the legal entity that owns
  178  the property. Thereafter, such property shall be assessed as
  179  provided in this subsection.
  180         (5) Changes, additions, reductions, or improvements to such
  181  property shall be assessed as provided for by general law;
  182  however, after the adjustment for any change, addition,
  183  reduction, or improvement, the property shall be assessed as
  184  provided in this subsection.
  185         (i) The legislature, by general law and subject to
  186  conditions specified therein, may prohibit the consideration of
  187  the following in the determination of the assessed value of real
  188  property:
  189         (1) Any change or improvement to real property used for
  190  residential purposes made to improve the property’s resistance
  191  to wind damage.
  192         (2) The installation of a solar or renewable energy source
  193  device.
  194         (j)
  195         (1) The assessment of the following working waterfront
  196  properties shall be based upon the current use of the property:
  197         a. Land used predominantly for commercial fishing purposes.
  198         b. Land that is accessible to the public and used for
  199  vessel launches into waters that are navigable.
  200         c. Marinas and drystacks that are open to the public.
  201         d. Water-dependent marine manufacturing facilities,
  202  commercial fishing facilities, and marine vessel construction
  203  and repair facilities and their support activities.
  204         (2) The assessment benefit provided by this subsection is
  205  subject to conditions and limitations and reasonable definitions
  206  as specified by the legislature by general law.
  207                             ARTICLE XII                           
  208                              SCHEDULE                             
  209         Certain manufacturing equipment; ad valorem taxation.—This
  210  section and the amendment to Section 4 of Article VII
  211  authorizing the Legislature to exempt certain manufacturing
  212  equipment from the tangible personal property tax or permitting
  213  such equipment to be assessed at less than just value pursuant
  214  to an accelerated depreciation method established by general law
  215  shall take effect January 1, 2019.
  216         BE IT FURTHER RESOLVED that the following statement be
  217  placed on the ballot:
  218                      CONSTITUTIONAL AMENDMENT                     
  219                       ARTICLE VII, SECTION 4                      
  220                             ARTICLE XII                           
  221         CERTAIN MANUFACTURING EQUIPMENT; TANGIBLE PERSONAL PROPERTY
  222  TAX.—Proposing an amendment to the State Constitution
  223  authorizing the Legislature to exempt manufacturing equipment
  224  used by businesses primarily engaged in manufacturing from the
  225  tangible personal property tax or permitting such equipment to
  226  be assessed at less than just value pursuant to an accelerated
  227  depreciation method established by general law. This amendment
  228  takes effect January 1, 2019.