Bill Text: FL S0314 | 2012 | Regular Session | Comm Sub
Bill Title: Ad Valorem Taxation
Spectrum: Bipartisan Bill
Status: (Failed) 2012-03-09 - Died in Budget Subcommittee on Finance and Tax [S0314 Detail]
Download: Florida-2012-S0314-Comm_Sub.html
Florida Senate - 2012 CS for SJR 314 By the Committee on Judiciary; and Senator Simmons 590-01563-12 2012314c1 1 Senate Joint Resolution 2 A joint resolution proposing amendments to Sections 4 3 and 6 of Article VII and Section 27 of Article XII and 4 the creation of two new Sections in Article XII of the 5 State Constitution to allow the Legislature by general 6 law to prohibit increases in the assessed value of 7 homestead and specified nonhomestead property if the 8 just value of the property decreases, reduce the 9 limitation on annual assessment increases applicable 10 to nonhomestead real property, provide an additional 11 homestead exemption for owners of homestead property, 12 authorize the Legislature to adjust the amount of the 13 exemption, provide that the additional exemption is to 14 be reduced by the difference between the just value 15 and the assessed value, delay a future repeal of 16 provisions limiting annual assessment increases for 17 specified nonhomestead real property, and provide 18 effective dates. 19 20 Be It Resolved by the Legislature of the State of Florida: 21 22 That the following amendments to Sections 4 and 6 of 23 Article VII and Section 27 of Article XII and the creation of 24 two new Sections in Article XII of the State Constitution are 25 agreed to and shall be submitted to the electors of this state 26 for approval or rejection at the next general election or at an 27 earlier special election specifically authorized by law for that 28 purpose: 29 ARTICLE VII 30 FINANCE AND TAXATION 31 SECTION 4. Taxation; assessments.—By general law 32 regulations shall be prescribed which shall secure a just 33 valuation of all property for ad valorem taxation, provided: 34 (a) Agricultural land, land producing high water recharge 35 to Florida’s aquifers, or land used exclusively for 36 noncommercial recreational purposes may be classified by general 37 law and assessed solely on the basis of character or use. 38 (b) As provided by general law and subject to conditions, 39 limitations, and reasonable definitions specified therein, land 40 used for conservation purposes shall be classified by general 41 law and assessed solely on the basis of character or use. 42 (c) Pursuant to general law tangible personal property held 43 for sale as stock in trade and livestock may be valued for 44 taxation at a specified percentage of its value, may be 45 classified for tax purposes, or may be exempted from taxation. 46 (d) All persons entitled to a homestead exemption under 47 Section 6of this Articleshall have their homestead assessedat48just value as of January 1 of the year following the effective49date of this amendment. This assessment shall change onlyas 50 provided in this subsection. 51 (1) Assessments subject to this subsection shall changebe52changedannually on January 11stof each year.;but those53changes in assessments54 a. A change in an assessment mayshallnot exceed the lower 55 of the following: 56 1.a.Three percent(3%)of the assessment for the prior 57 year. 58 2.b.The percent change in the Consumer Price Index for all 59 urban consumers, U.S. City Average, all items 1967=100, or a 60 successor indexreportsfor the preceding calendar year as 61 initially reported by the United States Department of Labor, 62 Bureau of Labor Statistics. 63 b. The legislature may provide by general law that, except 64 for changes, additions, reductions, or improvements to homestead 65 property assessed as provided in paragraph (5), an assessment 66 may not increase if the just value of the property is less than 67 the just value of the property on the preceding January 1. 68 (2) AnNoassessment may notshallexceed just value. 69 (3) After aanychange of ownership, as provided by general 70 law, homestead property shall be assessed at just value as of 71 January 1 of the following year, unless the provisions of 72 paragraph (8) apply. Thereafter, the homestead shall be assessed 73 as provided in this subsection. 74 (4) New homestead property shall be assessed at just value 75 as of January 11stof the year following the establishment of 76 the homestead, unless the provisions of paragraph (8) apply. 77 That assessment shallonlychange only as provided in this 78 subsection. 79 (5) Changes, additions, reductions, or improvements to 80 homestead property shall be assessed as provided for by general 81 law.; provided,However, after the adjustment for any change, 82 addition, reduction, or improvement, the property shall be 83 assessed as provided in this subsection. 84 (6) In the event of a termination of homestead status, the 85 property shall be assessed as provided by general law. 86 (7) The provisions of this subsectionamendmentare 87 severable. If a provisionany of the provisionsof this 88 subsection isamendment shall beheld unconstitutional by aany89 court of competent jurisdiction, the decision of thesuchcourt 90 doesshallnot affect or impair any remaining provisions of this 91 subsectionamendment. 92 (8)a. A person whoestablishes a new homestead as of93January 1, 2009, or January 1 of any subsequent year and whohas 94 received a homestead exemption pursuant to Section 6of this95Articleas of January 1 of either of the 2twoyears immediately 96 preceding the establishment of athenew homestead is entitled 97 to have the new homestead assessed at less than just value.If98this revision is approved in January of 2008, a person who99establishes a new homestead as of January 1, 2008, is entitled100to have the new homestead assessed at less than just value only101if that person received a homestead exemption on January 1,1022007.The assessed value of the newly established homestead 103 shall be determined as follows: 104 1. If the just value of the new homestead is greater than 105 or equal to the just value of the prior homestead as of January 106 1 of the year in which the prior homestead was abandoned, the 107 assessed value of the new homestead shall be the just value of 108 the new homestead minus an amount equal to the lesser of 109 $500,000 or the difference between the just value and the 110 assessed value of the prior homestead as of January 1 of the 111 year in which the prior homestead was abandoned. Thereafter, the 112 homestead shall be assessed as provided in this subsection. 113 2. If the just value of the new homestead is less than the 114 just value of the prior homestead as of January 1 of the year in 115 which the prior homestead was abandoned, the assessed value of 116 the new homestead shall be equal to the just value of the new 117 homestead divided by the just value of the prior homestead and 118 multiplied by the assessed value of the prior homestead. 119 However, if the difference between the just value of the new 120 homestead and the assessed value of the new homestead calculated 121 pursuant to this sub-subparagraph is greater than $500,000, the 122 assessed value of the new homestead shall be increased so that 123 the difference between the just value and the assessed value 124 equals $500,000. Thereafter, the homestead shall be assessed as 125 provided in this subsection. 126 b. By general law and subject to conditions specified 127 therein, the legislature shall provide for application of this 128 paragraph to property owned by more than one person. 129 (e) The legislature may, by general law, for assessment 130 purposes and subject to the provisions of this subsection, allow 131 counties and municipalities to authorize by ordinance that 132 historic property may be assessed solely on the basis of 133 character or use. Such character or use assessment shall apply 134 only to the jurisdiction adopting the ordinance. The 135 requirements for eligible properties must be specified by 136 general law. 137 (f) A county may, in the manner prescribed by general law, 138 provide for a reduction in the assessed value of homestead 139 property to the extent of any increase in the assessed value of 140 that property which results from the construction or 141 reconstruction of the property for the purpose of providing 142 living quarters for one or more natural or adoptive grandparents 143 or parents of the owner of the property or of the owner’s spouse 144 if at least one of the grandparents or parents for whom the 145 living quarters are provided is 62 years of age or older. Such a 146 reduction may not exceed the lesser of the following: 147 (1) The increase in assessed value resulting from 148 construction or reconstruction of the property. 149 (2) Twenty percent of the total assessed value of the 150 property as improved. 151 (g) For all levies other than school district levies, 152 assessments of residential real property, as defined by general 153 law, which contains nine units or fewer and which is not subject 154 to the assessment limitations set forth in subsections (a) 155 through (d) shall change only as provided in this subsection. 156 (1) Assessments subject to this subsection shall be changed 157 annually on the date of assessment provided by law. However,;158butthose changes in assessments mayshallnot exceed 7ten159 percent(10%)of the assessment for the prior year. The 160 legislature may provide by general law that, except for changes, 161 additions, reductions, or improvements to property assessed as 162 provided in paragraph (4), an assessment may not increase if the 163 just value of the property is less than the just value of the 164 property on the preceding date of assessment provided by law. 165 (2) AnNoassessment may notshallexceed just value. 166 (3) After a change of ownership or control, as defined by 167 general law, including any change of ownership of a legal entity 168 that owns the property, such property shall be assessed at just 169 value as of the next assessment date. Thereafter, such property 170 shall be assessed as provided in this subsection. 171 (4) Changes, additions, reductions, or improvements to such 172 property shall be assessed as provided for by general law.;173 However, after the adjustment for any change, addition, 174 reduction, or improvement, the property shall be assessed as 175 provided in this subsection. 176 (h) For all levies other than school district levies, 177 assessments of real property that is not subject to the 178 assessment limitations set forth in subsections (a) through (d) 179 and (g) shall change only as provided in this subsection. 180 (1) Assessments subject to this subsection shall be changed 181 annually on the date of assessment provided by law. However,;182butthose changes in assessments mayshallnot exceed 7ten183 percent(10%)of the assessment for the prior year. The 184 legislature may provide by general law that, except for changes, 185 additions, reductions, or improvements to property assessed as 186 provided in paragraph (5), an assessment may not increase if the 187 just value of the property is less than the just value of the 188 property on the preceding date of assessment provided by law. 189 (2) AnNoassessment may notshallexceed just value. 190 (3) The legislature must provide that such property shall 191 be assessed at just value as of the next assessment date after a 192 qualifying improvement, as defined by general law, is made to 193 such property. Thereafter, such property shall be assessed as 194 provided in this subsection. 195 (4) The legislature may provide that such property shall be 196 assessed at just value as of the next assessment date after a 197 change of ownership or control, as defined by general law, 198 including any change of ownership of the legal entity that owns 199 the property. Thereafter, such property shall be assessed as 200 provided in this subsection. 201 (5) Changes, additions, reductions, or improvements to such 202 property shall be assessed as provided for by general law.;203 However, after the adjustment for any change, addition, 204 reduction, or improvement, the property shall be assessed as 205 provided in this subsection. 206 (i) The legislature, by general law and subject to 207 conditions specified therein, may prohibit the consideration of 208 the following in the determination of the assessed value of real 209 property used for residential purposes: 210 (1) Any change or improvement made for the purpose of 211 improving the property’s resistance to wind damage. 212 (2) The installation of a renewable energy source device. 213 (j)(1) The assessment of the following working waterfront 214 properties shall be based upon the current use of the property: 215 a. Land used predominantly for commercial fishing purposes. 216 b. Land that is accessible to the public and used for 217 vessel launches into waters that are navigable. 218 c. Marinas and drystacks that are open to the public. 219 d. Water-dependent marine manufacturing facilities, 220 commercial fishing facilities, and marine vessel construction 221 and repair facilities and their support activities. 222 (2) The assessment benefit provided by this subsection is 223 subject to conditions and limitations and reasonable definitions 224 as specified by the legislature by general law. 225 SECTION 6. Homestead exemptions.— 226 (a) Every person who has the legal or equitable title to 227 real estate and maintains thereon the permanent residence of the 228 owner, or another legally or naturally dependent upon the owner, 229 shall be exempt from taxation thereon, except assessments for 230 special benefits, up to the assessed valuation of $25,000 231twenty-five thousand dollarsand, for all levies other than 232 school district levies, on the assessed valuation greater than 233 $50,000fifty thousand dollarsand up to $75,000seventy-five234thousand dollars, upon establishment of right thereto in the 235 manner prescribed by law. The real estate may be held by legal 236 or equitable title, by the entireties, jointly, in common, as a 237 condominium, or indirectly by stock ownership or membership 238 representing the owner’s or member’s proprietary interest in a 239 corporation owning a fee or a leasehold initially in excess of 240 98ninety-eightyears. The exemption shall not apply with 241 respect to any assessment roll until such roll is first 242 determined to be in compliance with the provisions of Section 4 243 by a state agency designated by general law. This exemption is 244 repealed on the effective date of any amendment to this Article 245 which provides for the assessment of homestead property at less 246 than just value. 247 (b) Not more than one exemption under subsection (a) and 248 one exemption under subsection (f) shall be allowed any 249 individual or family unit or with respect to any residential 250 unit. No exemption shall exceed the value of the real estate 251 assessable to the owner or, in case of ownership through stock 252 or membership in a corporation, the value of the proportion 253 which the interest in the corporation bears to the assessed 254 value of the property. 255 (c) By general law and subject to conditions specified 256 therein, the legislature may provide to renters, who are 257 permanent residents, ad valorem tax relief on all ad valorem tax 258 levies. Such ad valorem tax relief shall be in the form and 259 amount established by general law. 260 (d) The legislature may, by general law, allow counties or 261 municipalities, for the purpose of their respective tax levies 262 and subject to the provisions of general law, to grant an 263 additional homestead tax exemption not exceeding $50,000fifty264thousand dollarsto any person who has the legal or equitable 265 title to real estate and maintains thereon the permanent 266 residence of the owner and who has attained age 65sixty-five267 and whose household income, as defined by general law, does not 268 exceed $20,000twenty thousand dollars. The general law must 269 allow counties and municipalities to grant this additional 270 exemption, within the limits prescribed in this subsection, by 271 ordinance adopted in the manner prescribed by general law, and 272 must provide for the periodic adjustment of the income 273 limitation prescribed in this subsection for changes in the cost 274 of living. 275 (e) Each veteran who is age 65 or older who is partially or 276 totally permanently disabled shall receive a discount from the 277 amount of the ad valorem tax otherwise owed on homestead 278 property the veteran owns and resides in if the disability was 279 combat related, the veteran was a resident of this state at the 280 time of entering the military service of the United States, and 281 the veteran was honorably discharged upon separation from 282 military service. The discount shall be in a percentage equal to 283 the percentage of the veteran’s permanent, service-connected 284 disability as determined by the United States Department of 285 Veterans Affairs. To qualify for the discount granted by this 286 subsection, an applicant must submit to the county property 287 appraiser, by March 1, proof of residency at the time of 288 entering military service, an official letter from the United 289 States Department of Veterans Affairs stating the percentage of 290 the veteran’s service-connected disability and such evidence 291 that reasonably identifies the disability as combat related, and 292 a copy of the veteran’s honorable discharge. If the property 293 appraiser denies the request for a discount, the appraiser must 294 notify the applicant in writing of the reasons for the denial, 295 and the veteran may reapply. The legislature may, by general 296 law, waive the annual application requirement in subsequent 297 years. This subsection shall take effect December 7, 2006, is 298 self-executing, and does not require implementing legislation. 299 (f) Every person who has established the right to receive 300 the homestead exemption provided in subsection (a) is entitled 301 to an additional homestead exemption for all levies other than 302 school district levies in an amount equal to 30 percent of the 303 homestead property’s just value in excess of $75,000 but less 304 than or equal to $200,000, plus 15 percent of the homestead 305 property’s just value in excess of $200,000 but less than or 306 equal to $400,000. The value of the additional homestead 307 exemption shall be reduced by the difference between the just 308 value of the property and the assessed value of the property 309 determined under Section 4(d). By general law, the legislature 310 may adjust the percent of just value or the maximum and minimum 311 levels of just value used to calculate the additional homestead 312 exemption, but may not reduce the value of the additional 313 exemption below the value established in this subsection. 314 ARTICLE XII 315 SCHEDULE 316 SECTION 27. Property tax exemptions and limitations on 317 property tax assessments.—The amendments to Sections 3, 4, and 6 318 of Article VII, providing a $25,000 exemption for tangible 319 personal property, providing an additional $25,000 homestead 320 exemption, authorizing transfer of the accrued benefit from the 321 limitations on the assessment of homestead property, and this 322 section, if submitted to the electors of this state for approval 323 or rejection at a special election authorized by law to be held 324 on January 29, 2008, shall take effect upon approval by the 325 electors and shall operate retroactively to January 1, 2008, or, 326 if submitted to the electors of this state for approval or 327 rejection at the next general election, shall take effect 328 January 1 of the year following such general election. The 329 amendments to Section 4 of Article VII creating subsections (g) 330(f)and (h)(g)of that section, creating a limitation on annual 331 assessment increases for specified real property, shall take 332 effect upon approval of the electors and shall first limit 333 assessments beginning January 1, 2009, if approved at a special 334 election held on January 29, 2008, or shall first limit 335 assessments beginning January 1, 2010, if approved at the 336 general election held in November of 2008. Subsections (g)(f)337 and (h)(g)of Section 4 of Article VII are repealed effective 338 January 1, 20232019; however, the legislature shall by joint 339 resolution propose an amendment abrogating the repeal of 340 subsections (g)(f)and (h)(g), which shall be submitted to the 341 electors of this state for approval or rejection at the general 342 election of 20222018and, if approved, shall take effect 343 January 1, 20232019. 344 Property assessments.—This section and the amendments to 345 Section 4 of Article VII authorizing the legislature to prohibit 346 increases in the assessed value of homestead property that has a 347 declining just value and reducing the limit on the maximum 348 annual increase in the assessed value of nonhomestead property 349 from 10 percent to 7 percent shall take effect January 1, 2013. 350 Additional homestead exemption.—This section and the 351 amendment to Section 6 of Article VII providing for an 352 additional homestead exemption shall take effect January 1, 353 2013. 354 BE IT FURTHER RESOLVED that the following statement be 355 placed on the ballot: 356 CONSTITUTIONAL AMENDMENT 357 ARTICLE VII, SECTIONS 4, 6 358 ARTICLE XII, SECTION 27 359 PROPERTY TAX LIMITATIONS; ADDITIONAL HOMESTEAD EXEMPTION.— 360 (1) In certain circumstances, the law requires the assessed 361 value of real property to increase when the just value of the 362 property is greater than its assessed value. This amendment 363 authorizes the Legislature, by general law, to prohibit such 364 increase in the assessment of property whose just value is less 365 than its just value on the preceding assessment date. This 366 amendment takes effect January 1, 2013. 367 (2) The State Constitution generally limits increases in 368 the assessed value of nonhomestead real property for property 369 tax purposes to 10 percent annually. This amendment reduces that 370 limit to 7 percent. This amendment takes effect January 1, 2013. 371 (3) This amendment also provides owners of homestead 372 property an additional homestead exemption for all levies other 373 than school district levies in an amount equal to 30 percent of 374 the homestead property’s just value between $75,000 and 375 $200,000, plus 15 percent of the homestead property’s just value 376 between $200,000 and $400,000. The Legislature may adjust the 377 amount of the additional homestead exemption but may not reduce 378 it below what is provided in this amendment. The value of the 379 additional homestead exemption shall be reduced by the 380 difference between the just value of the property and its 381 assessed value. This amendment takes effect January 1, 2013. 382 (4) The State Constitution provides for the automatic 383 repeal of the provisions that provide a general limit on annual 384 increases in the assessed value of nonhomestead properties for 385 the purposes of property taxes. This amendment delays until 2023 386 the repeal of those provisions, which is currently scheduled to 387 occur in 2019.