Bill Text: FL H0537 | 2011 | Regular Session | Introduced


Bill Title: Property Taxes/Homestead and Nonhomestead Property

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-03-08 - Withdrawn from Finance and Tax Committee; Community and Military Affairs Subcommittee; Economic Affairs Committee [H0537 Detail]

Download: Florida-2011-H0537-Introduced.html
HJR 537

1
House Joint Resolution
2A joint resolution proposing an amendment to Sections 2,
34, and 9 of Article VII of the State Constitution to
4prevent taxes from increasing on homestead and
5nonhomestead property with a declining market value by
6prohibiting increases in the annual assessment and the
7applicable millage rate.
8
9Be It Resolved by the Legislature of the State of Florida:
10
11     That the following amendments to Sections 2, 4, and 9 of
12Article VII of the State Constitution are 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 2.  Taxes; rate.-All ad valorem taxation shall be
19at a uniform rate within each taxing unit, except the taxes on
20real property may be at different rates if the property is not
21subject to an assessment increase under Section 4 and a millage
22increase under Section 9 and except the taxes on intangible
23personal property may be at different rates but shall never
24exceed two mills on the dollar of assessed value; provided, as
25to any obligations secured by mortgage, deed of trust, or other
26lien on real estate wherever located, an intangible tax of not
27more than two mills on the dollar may be levied by law to be in
28lieu of all other intangible assessments on such obligations.
29     SECTION 4.  Taxation; assessments.-By general law
30regulations shall be prescribed which shall secure a just
31valuation of all property for ad valorem taxation, provided:
32     (a)  Agricultural land, land producing high water recharge
33to Florida's aquifers, or land used exclusively for
34noncommercial recreational purposes may be classified by general
35law and assessed solely on the basis of character or use.
36     (b)  As provided by general law and subject to conditions,
37limitations, and reasonable definitions specified therein, land
38used for conservation purposes shall be classified by general
39law and assessed solely on the basis of character or use.
40     (c)  Pursuant to general law tangible personal property
41held for sale as stock in trade and livestock may be valued for
42taxation at a specified percentage of its value, may be
43classified for tax purposes, or may be exempted from taxation.
44     (d)  All persons entitled to a homestead exemption under
45Section 6 of this Article shall have their homestead assessed at
46just value as of January 1 of the year following the effective
47date of this amendment. This assessment shall change only as
48provided in this subsection.
49     (1)  Assessments subject to this subsection shall be
50changed annually on January 1 1st of each year.
51     a.  An increase in an assessment; but those changes in
52assessments shall not exceed the lower of the following:
53     1.a.  Three percent (3%) of the assessment for the prior
54year.
55     2.b.  The percent change in the Consumer Price Index for
56all urban consumers, U.S. City Average, all items 1967=100, or
57successor reports for the preceding calendar year as initially
58reported by the United States Department of Labor, Bureau of
59Labor Statistics.
60     b.  An assessment shall not increase if the just value of
61the property is less than the just value of the property on the
62preceding January 1.
63     (2)  No assessment shall exceed just value.
64     (3)  After any change of ownership, as provided by general
65law, homestead property shall be assessed at just value as of
66January 1 of the following year, unless the provisions of
67paragraph (8) apply. Thereafter, the homestead shall be assessed
68as provided in this subsection.
69     (4)  New homestead property shall be assessed at just value
70as of January 1 1st of the year following the establishment of
71the homestead, unless the provisions of paragraph (8) apply.
72That assessment shall only change as provided in this
73subsection.
74     (5)  Changes, additions, reductions, or improvements to
75homestead property shall be assessed as provided for by general
76law; provided, however, after the adjustment for any change,
77addition, reduction, or improvement, the property shall be
78assessed as provided in this subsection.
79     (6)  In the event of a termination of homestead status, the
80property shall be assessed as provided by general law.
81     (7)  The provisions of this amendment are severable. If any
82of the provisions of this amendment shall be held
83unconstitutional by any court of competent jurisdiction, the
84decision of such court shall not affect or impair any remaining
85provisions of this amendment.
86     (8)a.  A person who establishes a new homestead as of
87January 1, 2009, or January 1 of any subsequent year and who has
88received a homestead exemption pursuant to Section 6 of this
89Article as of January 1 of either of the two years immediately
90preceding the establishment of the new homestead is entitled to
91have the new homestead assessed at less than just value. If this
92revision is approved in January of 2008, a person who
93establishes a new homestead as of January 1, 2008, is entitled
94to have the new homestead assessed at less than just value only
95if that person received a homestead exemption on January 1,
962007. The assessed value of the newly established homestead
97shall be determined as follows:
98     1.  If the just value of the new homestead is greater than
99or equal to the just value of the prior homestead as of January
1001 of the year in which the prior homestead was abandoned, the
101assessed value of the new homestead shall be the just value of
102the new homestead minus an amount equal to the lesser of
103$500,000 or the difference between the just value and the
104assessed value of the prior homestead as of January 1 of the
105year in which the prior homestead was abandoned. Thereafter, the
106homestead shall be assessed as provided in this subsection.
107     2.  If the just value of the new homestead is less than the
108just value of the prior homestead as of January 1 of the year in
109which the prior homestead was abandoned, the assessed value of
110the new homestead shall be equal to the just value of the new
111homestead divided by the just value of the prior homestead and
112multiplied by the assessed value of the prior homestead.
113However, if the difference between the just value of the new
114homestead and the assessed value of the new homestead calculated
115pursuant to this sub-subparagraph is greater than $500,000, the
116assessed value of the new homestead shall be increased so that
117the difference between the just value and the assessed value
118equals $500,000. Thereafter, the homestead shall be assessed as
119provided in this subsection.
120     b.  By general law and subject to conditions specified
121therein, the Legislature shall provide for application of this
122paragraph to property owned by more than one person.
123     (e)  The legislature may, by general law, for assessment
124purposes and subject to the provisions of this subsection, allow
125counties and municipalities to authorize by ordinance that
126historic property may be assessed solely on the basis of
127character or use. Such character or use assessment shall apply
128only to the jurisdiction adopting the ordinance. The
129requirements for eligible properties must be specified by
130general law.
131     (f)  A county may, in the manner prescribed by general law,
132provide for a reduction in the assessed value of homestead
133property to the extent of any increase in the assessed value of
134that property which results from the construction or
135reconstruction of the property for the purpose of providing
136living quarters for one or more natural or adoptive grandparents
137or parents of the owner of the property or of the owner's spouse
138if at least one of the grandparents or parents for whom the
139living quarters are provided is 62 years of age or older. Such a
140reduction may not exceed the lesser of the following:
141     (1)  The increase in assessed value resulting from
142construction or reconstruction of the property.
143     (2)  Twenty percent of the total assessed value of the
144property as improved.
145     (g)  For all levies other than school district levies,
146assessments of residential real property, as defined by general
147law, which contains nine units or fewer and which is not subject
148to the assessment limitations set forth in subsections (a)
149through (d) shall change only as provided in this subsection.
150     (1)  Assessments subject to this subsection shall be
151changed annually on the date of assessment provided by law,; but
152an increase those changes in assessments shall not exceed ten
153percent (10%) of the assessment for the prior year. An
154assessment shall not increase if the just value of the property
155is less than the just value of the property on the preceding
156date of assessment provided by law.
157     (2)  No assessment shall exceed just value.
158     (3)  After a change of ownership or control, as defined by
159general law, including any change of ownership of a legal entity
160that owns the property, such property shall be assessed at just
161value as of the next assessment date. Thereafter, such property
162shall be assessed as provided in this subsection.
163     (4)  Changes, additions, reductions, or improvements to
164such property shall be assessed as provided for by general law;
165however, after the adjustment for any change, addition,
166reduction, or improvement, the property shall be assessed as
167provided in this subsection.
168     (h)  For all levies other than school district levies,
169assessments of real property that is not subject to the
170assessment limitations set forth in subsections (a) through (d)
171and (g) shall change only as provided in this subsection.
172     (1)  Assessments subject to this subsection shall be
173changed annually on the date of assessment provided by law,; but
174an increase those changes in assessments shall not exceed ten
175percent (10%) of the assessment for the prior year. An
176assessment shall not increase if the just value of the property
177is less than the just value of the property on the preceding
178date of assessment provided by law.
179     (2)  No assessment shall exceed just value.
180     (3)  The legislature must provide that such property shall
181be assessed at just value as of the next assessment date after a
182qualifying improvement, as defined by general law, is made to
183such property. Thereafter, such property shall be assessed as
184provided in this subsection.
185     (4)  The legislature may provide that such property shall
186be assessed at just value as of the next assessment date after a
187change of ownership or control, as defined by general law,
188including any change of ownership of the legal entity that owns
189the property. Thereafter, such property shall be assessed as
190provided in this subsection.
191     (5)  Changes, additions, reductions, or improvements to
192such property shall be assessed as provided for by general law;
193however, after the adjustment for any change, addition,
194reduction, or improvement, the property shall be assessed as
195provided in this subsection.
196     (i)  The legislature, by general law and subject to
197conditions specified therein, may prohibit the consideration of
198the following in the determination of the assessed value of real
199property used for residential purposes:
200     (1)  Any change or improvement made for the purpose of
201improving the property's resistance to wind damage.
202     (2)  The installation of a renewable energy source device.
203     (j)(1)  The assessment of the following working waterfront
204properties shall be based upon the current use of the property:
205     a.  Land used predominantly for commercial fishing
206purposes.
207     b.  Land that is accessible to the public and used for
208vessel launches into waters that are navigable.
209     c.  Marinas and drystacks that are open to the public.
210     d.  Water-dependent marine manufacturing facilities,
211commercial fishing facilities, and marine vessel construction
212and repair facilities and their support activities.
213     (2)  The assessment benefit provided by this subsection is
214subject to conditions and limitations and reasonable definitions
215as specified by the legislature by general law.
216     SECTION 9.  Local taxes.-
217     (a)  Counties, school districts, and municipalities shall,
218and special districts may, be authorized by law to levy ad
219valorem taxes and may be authorized by general law to levy other
220taxes, for their respective purposes, except ad valorem taxes on
221intangible personal property and taxes prohibited by this
222constitution.
223     (b)  Ad valorem taxes, exclusive of taxes levied for the
224payment of bonds and taxes levied for periods not longer than
225two years when authorized by vote of the electors who are the
226owners of freeholds therein not wholly exempt from taxation,
227shall not be levied in excess of the following millages upon the
228assessed value of real estate and tangible personal property:
229for all county purposes, ten mills; for all municipal purposes,
230ten mills; for all school purposes, ten mills; for water
231management purposes for the northwest portion of the state lying
232west of the line between ranges two and three east, 0.05 mill;
233for water management purposes for the remaining portions of the
234state, 1.0 mill; and for all other special districts a millage
235authorized by law approved by vote of the electors who are
236owners of freeholds therein not wholly exempt from taxation. A
237county furnishing municipal services may, to the extent
238authorized by law, levy additional taxes within the limits fixed
239for municipal purposes.
240     (c)  An increase in millage by a county, municipality, or
241special district shall not apply to any real property if the
242property's assessment may not be increased under Section 4
243because the just value of the property is less than the just
244value of the property on the preceding date of assessment
245provided by law. An increase in millage by a school district
246shall not apply to homestead property if the property's
247assessment may not be increased under Section 4 because the just
248value of the property is less than the just value of the
249property on the preceding date of assessment provided by law.
250     BE IT FURTHER RESOLVED that the following statement be
251placed on the ballot:
252
CONSTITUTIONAL AMENDMENT
253
ARTICLE VII, SECTIONS 2, 4, 9
254     HOMESTEAD AND NONHOMESTEAD PROPERTY WITH A DECLINING MARKET
255VALUE; PROHIBITING INCREASES IN ASSESSMENTS OR MILLAGE.-
256Proposing an amendment to the State Constitution to prevent
257property taxes from increasing on homestead and nonhomestead
258property with a declining fair market value by prohibiting
259increases in either the assessed value or millage rate
260applicable to the property.


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