Bill Text: FL H0655 | 2010 | Regular Session | Comm Sub

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Bill Title: Nonhomestead Property/Homestead Exemption

Spectrum: Strong Partisan Bill (Republican 11-1)

Status: (Failed) 2010-04-30 - Died in Rules and Calendar Council [H0655 Detail]

Download: Florida-2010-H0655-Comm_Sub.html

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CS/HJR 655

1	House Joint Resolution
2	A joint resolution proposing an amendment to Sections 4
3	and 6 of Article VII and the creation of Sections 31 and
4	32 of Article XII of the State Constitution to reduce from
5	10 percent to 5 percent the limitation on annual
6	assessment increases applicable to nonhomestead real
7	property, provide an additional homestead exemption for
8	new owners of homestead property and application and
9	limitations with respect thereto, and provide an effective
10	date.
11
12	Be It Resolved by the Legislature of the State of Florida:
13
14	That the following amendments to Sections 4 and 6 of
15	Article VII and the creation of Sections 31 and 32 of Article
16	XII of the State Constitution are agreed to and shall be
17	submitted to the electors of this state for approval or
18	rejection at the next general election or at an earlier special
19	election specifically authorized by law for that purpose:
20	ARTICLE VII
21	FINANCE AND TAXATION
22	SECTION 4. Taxation; assessments.-By general law
23	regulations shall be prescribed which shall secure a just
24	valuation of all property for ad valorem taxation, provided:
25	(a) Agricultural land, land producing high water recharge
26	to Florida's aquifers, or land used exclusively for
27	noncommercial recreational purposes may be classified by general
28	law and assessed solely on the basis of character or use.
29	(b) As provided by general law and subject to conditions,
30	limitations, and reasonable definitions specified therein, land
31	used for conservation purposes shall be classified by general
32	law and assessed solely on the basis of character or use.
33	(c) Pursuant to general law tangible personal property
34	held for sale as stock in trade and livestock may be valued for
35	taxation at a specified percentage of its value, may be
36	classified for tax purposes, or may be exempted from taxation.
37	(d) All persons entitled to a homestead exemption under
38	Section 6 of this Article shall have their homestead assessed at
39	just value as of January 1 of the year following the effective
40	date of this amendment. This assessment shall change only as
41	provided in this subsection.
42	(1) Assessments subject to this subsection shall be
43	changed annually on January 1 1st of each year; but those
44	changes in assessments shall not exceed the lower of the
45	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) After any change of ownership, as provided by general
55	law, homestead property shall be assessed at just value as of
56	January 1 of the following year, unless the provisions of
57	paragraph (8) apply. Thereafter, the homestead shall be assessed
58	as provided in this subsection.
59	(4) New homestead property shall be assessed at just value
60	as of January 1 1st of the year following the establishment of
61	the homestead, unless the provisions of paragraph (8) apply.
62	That assessment shall only change as provided in this
63	subsection.
64	(5) Changes, additions, reductions, or improvements to
65	homestead property shall be assessed as provided for by general
66	law; provided, however, after the adjustment for any change,
67	addition, reduction, or improvement, the property shall be
68	assessed as provided in this subsection.
69	(6) In the event of a termination of homestead status, the
70	property shall be assessed as provided by general law.
71	(7) The provisions of this amendment are severable. If any
72	of the provisions of this amendment shall be held
73	unconstitutional by any court of competent jurisdiction, the
74	decision of such court shall not affect or impair any remaining
75	provisions of this amendment.
76	(8)a. A person who establishes a new homestead as of
77	January 1, 2009, or January 1 of any subsequent year and who has
78	received a homestead exemption pursuant to Section 6 of this
79	Article as of January 1 of either of the 2 two years immediately
80	preceding the establishment of the new homestead is entitled to
81	have the new homestead assessed at less than just value. If this
82	revision is approved in January of 2008, a person who
83	establishes a new homestead as of January 1, 2008, is entitled
84	to have the new homestead assessed at less than just value only
85	if that person received a homestead exemption on January 1,
86	2007. The assessed value of the newly established homestead
87	shall be determined as follows:
88	1. If the just value of the new homestead is greater than
89	or equal to the just value of the prior homestead as of January
90	1 of the year in which the prior homestead was abandoned, the
91	assessed value of the new homestead shall be the just value of
92	the new homestead minus an amount equal to the lesser of
93	$500,000 or the difference between the just value and the
94	assessed value of the prior homestead as of January 1 of the
95	year in which the prior homestead was abandoned. Thereafter, the
96	homestead shall be assessed as provided in this subsection.
97	2. If the just value of the new homestead is less than the
98	just value of the prior homestead as of January 1 of the year in
99	which the prior homestead was abandoned, the assessed value of
100	the new homestead shall be equal to the just value of the new
101	homestead divided by the just value of the prior homestead and
102	multiplied by the assessed value of the prior homestead.
103	However, if the difference between the just value of the new
104	homestead and the assessed value of the new homestead calculated
105	pursuant to this sub-subparagraph is greater than $500,000, the
106	assessed value of the new homestead shall be increased so that
107	the difference between the just value and the assessed value
108	equals $500,000. Thereafter, the homestead shall be assessed as
109	provided in this subsection.
110	b. By general law and subject to conditions specified
111	therein, the legislature shall provide for application of this
112	paragraph to property owned by more than one person.
113	(e) The legislature may, by general law, for assessment
114	purposes and subject to the provisions of this subsection, allow
115	counties and municipalities to authorize by ordinance that
116	historic property may be assessed solely on the basis of
117	character or use. Such character or use assessment shall apply
118	only to the jurisdiction adopting the ordinance. The
119	requirements for eligible properties must be specified by
120	general law.
121	(f) A county may, in the manner prescribed by general law,
122	provide for a reduction in the assessed value of homestead
123	property to the extent of any increase in the assessed value of
124	that property which results from the construction or
125	reconstruction of the property for the purpose of providing
126	living quarters for one or more natural or adoptive grandparents
127	or parents of the owner of the property or of the owner's spouse
128	if at least one of the grandparents or parents for whom the
129	living quarters are provided is 62 years of age or older. Such a
130	reduction may not exceed the lesser of the following:
131	(1) The increase in assessed value resulting from
132	construction or reconstruction of the property.
133	(2) Twenty percent of the total assessed value of the
134	property as improved.
135	(g) For all levies other than school district levies,
136	assessments of residential real property, as defined by general
137	law, which contains nine units or fewer and which is not subject
138	to the assessment limitations set forth in subsections (a)
139	through (d) shall change only as provided in this subsection.
140	(1) Assessments subject to this subsection shall be
141	changed annually on the date of assessment provided by law; but
142	those changes in assessments shall not exceed 5 ten percent
143	(10%) of the assessment for the prior year.
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	(h) For all levies other than school district levies,
156	assessments of real property that is not subject to the
157	assessment limitations set forth in subsections (a) through (d)
158	and (g) shall change only as provided in this subsection.
159	(1) Assessments subject to this subsection shall be
160	changed annually on the date of assessment provided by law; but
161	those changes in assessments shall not exceed 5 ten percent
162	(10%) of the assessment for the prior year.
163	(2) No assessment shall exceed just value.
164	(3) The legislature must provide that such property shall
165	be assessed at just value as of the next assessment date after a
166	qualifying improvement, as defined by general law, is made to
167	such property. Thereafter, such property shall be assessed as
168	provided in this subsection.
169	(4) The legislature may provide that such property shall
170	be assessed at just value as of the next assessment date after a
171	change of ownership or control, as defined by general law,
172	including any change of ownership of the legal entity that owns
173	the property. Thereafter, such property shall be assessed as
174	provided in this subsection.
175	(5) Changes, additions, reductions, or improvements to
176	such property shall be assessed as provided for by general law;
177	however, after the adjustment for any change, addition,
178	reduction, or improvement, the property shall be assessed as
179	provided in this subsection.
180	(i) The legislature, by general law and subject to
181	conditions specified therein, may prohibit the consideration of
182	the following in the determination of the assessed value of real
183	property used for residential purposes:
184	(1) Any change or improvement made for the purpose of
185	improving the property's resistance to wind damage.
186	(2) The installation of a renewable energy source device.
187	(j)(1) The assessment of the following working waterfront
188	properties shall be based upon the current use of the property:
189	a. Land used predominantly for commercial fishing
190	purposes.
191	b. Land that is accessible to the public and used for
192	vessel launches into waters that are navigable.
193	c. Marinas and drystacks that are open to the public.
194	d. Water-dependent marine manufacturing facilities,
195	commercial fishing facilities, and marine vessel construction
196	and repair facilities and their support activities.
197	(2) The assessment benefit provided by this subsection is
198	subject to conditions and limitations and reasonable definitions
199	as specified by the legislature by general law.
200	SECTION 6. Homestead exemptions.-
201	(a) Every person who has the legal or equitable title to
202	real estate and maintains thereon the permanent residence of the
203	owner, or another legally or naturally dependent upon the owner,
204	shall be exempt from taxation thereon, except assessments for
205	special benefits, up to the assessed valuation of $25,000
206	twenty-five thousand dollars and, for all levies other than
207	school district levies, on the assessed valuation greater than
208	$50,000 fifty thousand dollars and up to $75,000 seventy-five
209	thousand dollars, upon establishment of right thereto in the
210	manner prescribed by law. The real estate may be held by legal
211	or equitable title, by the entireties, jointly, in common, as a
212	condominium, or indirectly by stock ownership or membership
213	representing the owner's or member's proprietary interest in a
214	corporation owning a fee or a leasehold initially in excess of
215	98 ninety-eight years. The exemption shall not apply with
216	respect to any assessment roll until such roll is first
217	determined to be in compliance with the provisions of Section 4
218	of this Article by a state agency designated by general law.
219	This exemption is repealed on the effective date of any
220	amendment to this Article which provides for the assessment of
221	homestead property at less than just value.
222	(b) Not more than one exemption shall be allowed any
223	individual or family unit or with respect to any residential
224	unit. No exemption shall exceed the value of the real estate
225	assessable to the owner or, in case of ownership through stock
226	or membership in a corporation, the value of the proportion
227	which the interest in the corporation bears to the assessed
228	value of the property.
229	(c) By general law and subject to conditions specified
230	therein, the legislature may provide to renters, who are
231	permanent residents, ad valorem tax relief on all ad valorem tax
232	levies. Such ad valorem tax relief shall be in the form and
233	amount established by general law.
234	(d) The legislature may, by general law, allow counties or
235	municipalities, for the purpose of their respective tax levies
236	and subject to the provisions of general law, to grant an
237	additional homestead tax exemption not exceeding $50,000 fifty
238	thousand dollars to any person who has the legal or equitable
239	title to real estate and maintains thereon the permanent
240	residence of the owner and who has attained age 65 sixty-five
241	and whose household income, as defined by general law, does not
242	exceed $20,000 twenty thousand dollars. The general law must
243	allow counties and municipalities to grant this additional
244	exemption, within the limits prescribed in this subsection, by
245	ordinance adopted in the manner prescribed by general law, and
246	must provide for the periodic adjustment of the income
247	limitation prescribed in this subsection for changes in the cost
248	of living.
249	(e) Each veteran who is age 65 or older who is partially
250	or totally permanently disabled shall receive a discount from
251	the amount of the ad valorem tax otherwise owed on homestead
252	property the veteran owns and resides in if the disability was
253	combat related, the veteran was a resident of this state at the
254	time of entering the military service of the United States, and
255	the veteran was honorably discharged upon separation from
256	military service. The discount shall be in a percentage equal to
257	the percentage of the veteran's permanent, service-connected
258	disability as determined by the United States Department of
259	Veterans Affairs. To qualify for the discount granted by this
260	subsection, an applicant must submit to the county property
261	appraiser, by March 1, proof of residency at the time of
262	entering military service, an official letter from the United
263	States Department of Veterans Affairs stating the percentage of
264	the veteran's service-connected disability and such evidence
265	that reasonably identifies the disability as combat related, and
266	a copy of the veteran's honorable discharge. If the property
267	appraiser denies the request for a discount, the appraiser must
268	notify the applicant in writing of the reasons for the denial,
269	and the veteran may reapply. The legislature may, by general
270	law, waive the annual application requirement in subsequent
271	years. This subsection shall take effect December 7, 2006, is
272	self-executing, and does not require implementing legislation.
273	(f) As provided by general law and subject to conditions
274	specified therein, every person who establishes the right to
275	receive the homestead exemption provided in subsection (a)
276	within 1 year after purchasing the homestead property and who
277	has not owned property in the previous 3 years to which the
278	homestead exemption provided in subsection (a) applied is
279	entitled to an additional homestead exemption in an amount equal
280	to 50 percent of the homestead property's just value on January
281	1 of the year the homestead is established for all levies other
282	than school district levies. The additional exemption shall
283	apply for a period of 5 years or until the year the property is
284	sold, whichever occurs first. The amount of the additional
285	exemption shall not exceed $200,000 and shall be reduced in each
286	subsequent year by an amount equal to 20 percent of the amount
287	of the additional exemption received in the year the homestead
288	was established or by an amount equal to the difference between
289	the just value of the property and the assessed value of the
290	property determined under Section 4(d) of this Article,
291	whichever is greater. Not more than one exemption provided under
292	this subsection shall be allowed per homestead property. The
293	additional exemption shall apply to property purchased after
294	January 1, 2010, but shall not be available in the sixth and
295	subsequent years after the additional exemption is first
296	received.
297	ARTICLE XII
298	SCHEDULE
299	SECTION 31. Property tax limit for nonhomestead property.-
300	The amendment to Section 4 of Article VII reducing the limit on
301	the maximum annual increase in the assessed value of
302	nonhomestead property from 10 percent to 5 percent and this
303	section shall take effect January 1, 2011.
304	SECTION 32. Additional homestead exemption for new owners
305	of homestead property.-The amendment to Section 6 of Article VII
306	providing for an additional homestead exemption for new owners
307	of homestead property who have not owned homestead property
308	during the immediately preceding 3 years and this section shall
309	take effect January 1, 2011, and shall be available for
310	properties purchased on or after January 1, 2010.
311	BE IT FURTHER RESOLVED that the following statement be
312	placed on the ballot:
313	CONSTITUTIONAL AMENDMENT
314	ARTICLE VII, SECTIONS 4, 6
315	ARTICLE XII, SECTIONS 31, 32
316	REDUCED NONHOMESTEAD PROPERTY ANNUAL ASSESSMENT INCREASE
317	LIMITATION; ADDITIONAL HOMESTEAD EXEMPTION FOR NEW HOMESTEAD
318	PROPERTY OWNERS.-
319	(1) This amendment reduces from 10 percent to 5 percent
320	the limitation on annual increases in assessments of
321	nonhomestead real property and provides an effective date of
322	January 1, 2011.
323	(2) This amendment also provides new owners of homestead
324	property who have not owned homestead property during the
325	immediately preceding 3 years with an additional homestead
326	exemption equal to 50 percent of the property's just value in
327	the first year for all levies other than school district levies,
328	limited to $200,000; applies the additional exemption for the
329	shorter of 5 years or the year of sale of the property; reduces
330	the amount of the additional exemption in each succeeding year
331	for 5 years by the greater of 20 percent of the amount of the
332	initial additional exemption or the difference between the just
333	value and the assessed value of the property; limits the
334	additional exemption to one per homestead property; limits the
335	additional exemption to properties purchased after January 1,
336	2010; prohibits availability of the additional exemption in the
337	sixth and subsequent years after the additional exemption is
338	granted; and provides for the amendment to take effect January
339	1, 2011, and apply to properties purchased on or after January
340	1, 2010.

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