Bill Text: FL H0381 | 2011 | Regular Session | Engrossed

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Bill Title: Property Assessment/Homestead Exemption

Spectrum: Moderate Partisan Bill (Republican 17-4)

Status: (Engrossed - Dead) 2011-05-04 - Ordered enrolled -HJ 1163 [H0381 Detail]

Download: Florida-2011-H0381-Engrossed.html

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CS/CS/CS/CS/CS/HJR 381

1	House Joint Resolution
2	A joint resolution proposing amendments to Sections 4 and
3	6 of Article VII and Section 27 of Article XII and the
4	creation of Sections 32 and 33 of Article XII of the State
5	Constitution to allow the Legislature by general law to
6	prohibit increases in the assessed value of homestead and
7	specified nonhomestead property if the just value of the
8	property decreases, reduce the limitation on annual
9	assessment increases applicable to nonhomestead real
10	property, provide an additional homestead exemption for
11	owners of homestead property who have not owned homestead
12	property for a specified time before purchase of the
13	current homestead property, and application and
14	limitations with respect thereto, delay the future repeal
15	of provisions limiting annual assessment increases for
16	specified nonhomestead real property, and provide
17	effective dates.
18
19	Be It Resolved by the Legislature of the State of Florida:
20
21	That the following amendments to Sections 4 and 6 of
22	Article VII and Section 27 of Article XII and the creation of
23	Sections 32 and 33 of Article XII of the State Constitution are
24	agreed to and shall be submitted to the electors of this state
25	for approval or rejection at the next general election or at an
26	earlier special election specifically authorized by law for that
27	purpose:
28	ARTICLE VII
29	FINANCE AND TAXATION
30	SECTION 4.  Taxation; assessments.-By general law
31	regulations shall be prescribed which shall secure a just
32	valuation of all property for ad valorem taxation, provided:
33	(a)  Agricultural land, land producing high water recharge
34	to Florida's aquifers, or land used exclusively for
35	noncommercial recreational purposes may be classified by general
36	law and assessed solely on the basis of character or use.
37	(b)  As provided by general law and subject to conditions,
38	limitations, and reasonable definitions specified therein, land
39	used for conservation purposes shall be classified by general
40	law and assessed solely on the basis of character or use.
41	(c)  Pursuant to general law tangible personal property
42	held for sale as stock in trade and livestock may be valued for
43	taxation at a specified percentage of its value, may be
44	classified for tax purposes, or may be exempted from taxation.
45	(d)  All persons entitled to a homestead exemption under
46	Section 6 of this Article shall have their homestead assessed at
47	just value as of January 1 of the year following the effective
48	date of this amendment. This assessment shall change only as
49	provided in this subsection.
50	(1)  Assessments subject to this subsection shall change be
51	changed annually on January 1 1st of each year.; but those
52	changes in assessments
53	a.  A change in an assessment may shall not exceed the
54	lower of the following:
55	1.a.  Three percent (3%) of the assessment for the prior
56	year.
57	2.b.  The percent change in the Consumer Price Index for
58	all urban consumers, U.S. City Average, all items 1967=100, or a
59	successor index reports for the preceding calendar year as
60	initially reported by the United States Department of Labor,
61	Bureau of Labor Statistics.
62	b.  The legislature may provide by general law that, except
63	for changes, additions, reductions, or improvements to homestead
64	property assessed as provided in paragraph (5), an assessment
65	may not increase if the just value of the property is less than
66	the just value of the property on the preceding January 1.
67	(2)  An No assessment may not shall exceed just value.
68	(3)  After a any change of ownership, as provided by
69	general law, homestead property shall be assessed at just value
70	as of January 1 of the following year, unless the provisions of
71	paragraph (8) apply. Thereafter, the homestead shall be assessed
72	as provided in this subsection.
73	(4)  New homestead property shall be assessed at just value
74	as of January 1 1st of the year following the establishment of
75	the homestead, unless the provisions of paragraph (8) apply.
76	That assessment shall only change only as provided in this
77	subsection.
78	(5)  Changes, additions, reductions, or improvements to
79	homestead property shall be assessed as provided for by general
80	law.; provided, However, after the adjustment for any change,
81	addition, reduction, or improvement, the property shall be
82	assessed as provided in this subsection.
83	(6)  In the event of a termination of homestead status, the
84	property shall be assessed as provided by general law.
85	(7)  The provisions of this subsection amendment are
86	severable. If a provision any of the provisions of this
87	subsection is amendment shall be held unconstitutional by a any
88	court of competent jurisdiction, the decision of the such court
89	does shall not affect or impair any remaining provisions of this
90	subsection amendment.
91	(8)a.  A person who establishes a new homestead as of
92	January 1, 2009, or January 1 of any subsequent year and who has
93	received a homestead exemption pursuant to Section 6 of this
94	Article as of January 1 of either of the 2 two years immediately
95	preceding the establishment of a the new homestead is entitled
96	to have the new homestead assessed at less than just value. If
97	this revision is approved in January of 2008, a person who
98	establishes a new homestead as of January 1, 2008, is entitled
99	to have the new homestead assessed at less than just value only
100	if that person received a homestead exemption on January 1,
101	2007. The assessed value of the newly established homestead
102	shall be determined as follows:
103	1.  If the just value of the new homestead is greater than
104	or equal to the just value of the prior homestead as of January
105	1 of the year in which the prior homestead was abandoned, the
106	assessed value of the new homestead shall be the just value of
107	the new homestead minus an amount equal to the lesser of
108	$500,000 or the difference between the just value and the
109	assessed value of the prior homestead as of January 1 of the
110	year in which the prior homestead was abandoned. Thereafter, the
111	homestead shall be assessed as provided in this subsection.
112	2.  If the just value of the new homestead is less than the
113	just value of the prior homestead as of January 1 of the year in
114	which the prior homestead was abandoned, the assessed value of
115	the new homestead shall be equal to the just value of the new
116	homestead divided by the just value of the prior homestead and
117	multiplied by the assessed value of the prior homestead.
118	However, if the difference between the just value of the new
119	homestead and the assessed value of the new homestead calculated
120	pursuant to this sub-subparagraph is greater than $500,000, the
121	assessed value of the new homestead shall be increased so that
122	the difference between the just value and the assessed value
123	equals $500,000. Thereafter, the homestead shall be assessed as
124	provided in this subsection.
125	b.  By general law and subject to conditions specified
126	therein, the legislature shall provide for application of this
127	paragraph to property owned by more than one person.
128	(e)  The legislature may, by general law, for assessment
129	purposes and subject to the provisions of this subsection, allow
130	counties and municipalities to authorize by ordinance that
131	historic property may be assessed solely on the basis of
132	character or use. Such character or use assessment shall apply
133	only to the jurisdiction adopting the ordinance. The
134	requirements for eligible properties must be specified by
135	general law.
136	(f)  A county may, in the manner prescribed by general law,
137	provide for a reduction in the assessed value of homestead
138	property to the extent of any increase in the assessed value of
139	that property which results from the construction or
140	reconstruction of the property for the purpose of providing
141	living quarters for one or more natural or adoptive grandparents
142	or parents of the owner of the property or of the owner's spouse
143	if at least one of the grandparents or parents for whom the
144	living quarters are provided is 62 years of age or older. Such a
145	reduction may not exceed the lesser of the following:
146	(1)  The increase in assessed value resulting from
147	construction or reconstruction of the property.
148	(2)  Twenty percent of the total assessed value of the
149	property as improved.
150	(g)  For all levies other than school district levies,
151	assessments of residential real property, as defined by general
152	law, which contains nine units or fewer and which is not subject
153	to the assessment limitations set forth in subsections (a)
154	through (d) shall change only as provided in this subsection.
155	(1)  Assessments subject to this subsection shall be
156	changed annually on the date of assessment provided by law.
157	However,; but those changes in assessments may shall not exceed
158	5 ten percent (10%) of the assessment for the prior year. The
159	legislature may provide by general law that, except for changes,
160	additions, reductions, or improvements to property assessed as
161	provided in paragraph (4), an assessment may not increase if the
162	just value of the property is less than the just value of the
163	property on the preceding date of assessment provided by law.
164	(2)  An No assessment may not shall exceed just value.
165	(3)  After a change of ownership or control, as defined by
166	general law, including any change of ownership of a legal entity
167	that owns the property, such property shall be assessed at just
168	value as of the next assessment date. Thereafter, such property
169	shall be assessed as provided in this subsection.
170	(4)  Changes, additions, reductions, or improvements to
171	such property shall be assessed as provided for by general law.;
172	However, after the adjustment for any change, addition,
173	reduction, or improvement, the property shall be assessed as
174	provided in this subsection.
175	(h)  For all levies other than school district levies,
176	assessments of real property that is not subject to the
177	assessment limitations set forth in subsections (a) through (d)
178	and (g) shall change only as provided in this subsection.
179	(1)  Assessments subject to this subsection shall be
180	changed annually on the date of assessment provided by law.
181	However,; but those changes in assessments may shall not exceed
182	5 ten percent (10%) of the assessment for the prior year. The
183	legislature may provide by general law that, except for changes,
184	additions, reductions, or improvements to property assessed as
185	provided in paragraph (5), an assessment may not increase if the
186	just value of the property is less than the just value of the
187	property on the preceding date of assessment provided by law.
188	(2)  An No assessment may not shall exceed just value.
189	(3)  The legislature must provide that such property shall
190	be assessed at just value as of the next assessment date after a
191	qualifying improvement, as defined by general law, is made to
192	such property. Thereafter, such property shall be assessed as
193	provided in this subsection.
194	(4)  The legislature may provide that such property shall
195	be assessed at just value as of the next assessment date after a
196	change of ownership or control, as defined by general law,
197	including any change of ownership of the legal entity that owns
198	the property. Thereafter, such property shall be assessed as
199	provided in this subsection.
200	(5)  Changes, additions, reductions, or improvements to
201	such property shall be assessed as provided for by general law.;
202	However, after the adjustment for any change, addition,
203	reduction, or improvement, the property shall be assessed as
204	provided in this subsection.
205	(i)  The legislature, by general law and subject to
206	conditions specified therein, may prohibit the consideration of
207	the following in the determination of the assessed value of real
208	property used for residential purposes:
209	(1)  Any change or improvement made for the purpose of
210	improving the property's resistance to wind damage.
211	(2)  The installation of a renewable energy source device.
212	(j)(1)  The assessment of the following working waterfront
213	properties shall be based upon the current use of the property:
214	a.  Land used predominantly for commercial fishing
215	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
231	twenty-five thousand dollars and, for all levies other than
232	school district levies, on the assessed valuation greater than
233	$50,000 fifty thousand dollars and up to $75,000 seventy-five
234	thousand 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	98 ninety-eight years. 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 shall be allowed any
248	individual or family unit or with respect to any residential
249	unit. No exemption shall exceed the value of the real estate
250	assessable to the owner or, in case of ownership through stock
251	or membership in a corporation, the value of the proportion
252	which the interest in the corporation bears to the assessed
253	value of the property.
254	(c)  By general law and subject to conditions specified
255	therein, the legislature may provide to renters, who are
256	permanent residents, ad valorem tax relief on all ad valorem tax
257	levies. Such ad valorem tax relief shall be in the form and
258	amount established by general law.
259	(d)  The legislature may, by general law, allow counties or
260	municipalities, for the purpose of their respective tax levies
261	and subject to the provisions of general law, to grant an
262	additional homestead tax exemption not exceeding $50,000 fifty
263	thousand dollars to any person who has the legal or equitable
264	title to real estate and maintains thereon the permanent
265	residence of the owner and who has attained age 65 sixty-five
266	and whose household income, as defined by general law, does not
267	exceed $20,000 twenty thousand dollars. The general law must
268	allow counties and municipalities to grant this additional
269	exemption, within the limits prescribed in this subsection, by
270	ordinance adopted in the manner prescribed by general law, and
271	must provide for the periodic adjustment of the income
272	limitation prescribed in this subsection for changes in the cost
273	of living.
274	(e)  Each veteran who is age 65 or older who is partially
275	or totally permanently disabled shall receive a discount from
276	the amount of the ad valorem tax otherwise owed on homestead
277	property the veteran owns and resides in if the disability was
278	combat related, the veteran was a resident of this state at the
279	time of entering the military service of the United States, and
280	the veteran was honorably discharged upon separation from
281	military service. The discount shall be in a percentage equal to
282	the percentage of the veteran's permanent, service-connected
283	disability as determined by the United States Department of
284	Veterans Affairs. To qualify for the discount granted by this
285	subsection, an applicant must submit to the county property
286	appraiser, by March 1, proof of residency at the time of
287	entering military service, an official letter from the United
288	States Department of Veterans Affairs stating the percentage of
289	the veteran's service-connected disability and such evidence
290	that reasonably identifies the disability as combat related, and
291	a copy of the veteran's honorable discharge. If the property
292	appraiser denies the request for a discount, the appraiser must
293	notify the applicant in writing of the reasons for the denial,
294	and the veteran may reapply. The legislature may, by general
295	law, waive the annual application requirement in subsequent
296	years. This subsection shall take effect December 7, 2006, is
297	self-executing, and does not require implementing legislation.
298	(f)  As provided by general law and subject to conditions
299	specified therein, every person who establishes the right to
300	receive the homestead exemption provided in subsection (a)
301	within 1 year after purchasing the homestead property and who
302	has not owned property in the previous 3 calendar years to which
303	the homestead exemption provided in subsection (a) applied is
304	entitled to an additional homestead exemption for all levies
305	except school district levies. The additional exemption is an
306	amount equal to 50 percent of the homestead property's just
307	value on January 1 of the year the homestead is established. The
308	additional exemption may not exceed the median just value of all
309	homestead property within the county where the property at issue
310	is located for the calendar year immediately preceding January 1
311	of the year the homestead is established. The additional
312	exemption shall apply for a period of 5 years or until the year
313	the property is sold, whichever occurs first. The amount of the
314	additional exemption shall be reduced in each subsequent year by
315	an amount equal to 20 percent of the amount of the additional
316	exemption received in the year the homestead was established or
317	by an amount equal to the difference between the just value of
318	the property and the assessed value of the property determined
319	under Section 4(d), whichever is greater. Not more than one
320	exemption provided under this subsection shall be allowed per
321	homestead property at one time. The additional exemption applies
322	to property purchased on or after January 1, 2011, if this
323	amendment is approved at a special election held on the date of
324	the 2012 presidential preference primary, or to property
325	purchased on or after January 1, 2012, if this amendment is
326	approved at the 2012 general election, but the additional
327	exemption is not available in the sixth and subsequent years
328	after it is first received.
329	ARTICLE XII
330	SCHEDULE
331	SECTION 27.  Property tax exemptions and limitations on
332	property tax assessments.-The amendments to Sections 3, 4, and 6
333	of Article VII, providing a $25,000 exemption for tangible
334	personal property, providing an additional $25,000 homestead
335	exemption, authorizing transfer of the accrued benefit from the
336	limitations on the assessment of homestead property, and this
337	section, if submitted to the electors of this state for approval
338	or rejection at a special election authorized by law to be held
339	on January 29, 2008, shall take effect upon approval by the
340	electors and shall operate retroactively to January 1, 2008, or,
341	if submitted to the electors of this state for approval or
342	rejection at the next general election, shall take effect
343	January 1 of the year following such general election. The
344	amendments to Section 4 of Article VII creating subsections (f)
345	and (g) of that section, creating a limitation on annual
346	assessment increases for specified real property, shall take
347	effect upon approval of the electors and shall first limit
348	assessments beginning January 1, 2009, if approved at a special
349	election held on January 29, 2008, or shall first limit
350	assessments beginning January 1, 2010, if approved at the
351	general election held in November of 2008. Subsections (g) (f)
352	and (h) (g) of Section 4 of Article VII, initially adopted as
353	subsections (f) and (g), are repealed effective January 1, 2023
354	2019; however, the legislature shall by joint resolution propose
355	an amendment abrogating the repeal of subsections (g) (f) and
356	(h) (g), which shall be submitted to the electors of this state
357	for approval or rejection at the general election of 2022 2018
358	and, if approved, shall take effect January 1, 2023 2019.
359	SECTION 32.  Property assessments.-This section and the
360	amendment of Section 4 of Article VII addressing homestead and
361	specified nonhomestead property having a declining just value
362	and reducing the limit on the maximum annual increase in the
363	assessed value of nonhomestead property, if submitted to the
364	electors of this state for approval or rejection at a special
365	election authorized by law to be held on the date of the 2012
366	presidential preference primary, shall take effect upon approval
367	by the electors and shall operate retroactively to January 1,
368	2012, or, if submitted to the electors of this state for
369	approval or rejection at the 2012 general election, shall take
370	effect January 1, 2013.
371	SECTION 33.  Additional homestead exemption for owners of
372	homestead property who recently have not owned homestead
373	property.-This section and the amendment to Section 6 of Article
374	VII providing for an additional homestead exemption for owners
375	of homestead property who have not owned homestead property
376	during the 3 calendar years immediately preceding purchase of
377	the current homestead property, if submitted to the electors of
378	this state for approval or rejection at a special election
379	authorized by law to be held on the date of the 2012
380	presidential preference primary, shall take effect upon approval
381	by the electors and operate retroactively to January 1, 2012,
382	and the additional homestead exemption shall be available for
383	properties purchased on or after January 1, 2011, or if
384	submitted to the electors of this state for approval or
385	rejection at the 2012 general election, shall take effect
386	January 1, 2013, and the additional homestead exemption shall be
387	available for properties purchased on or after January 1, 2012.
388	BE IT FURTHER RESOLVED that the following statement be
389	placed on the ballot:
390	CONSTITUTIONAL AMENDMENT
391	ARTICLE VII, SECTIONS 4, 6
392	ARTICLE XII, SECTIONS 27, 32, 33
393	PROPERTY TAX LIMITATIONS; PROPERTY VALUE DECLINE; REDUCTION
394	FOR NONHOMESTEAD ASSESSMENT INCREASES; DELAY OF SCHEDULED
395	REPEAL.-
396	(1)  This would amend Florida Constitution Article VII,
397	Section 4 (Taxation; assessments) and Section 6 (Homestead
398	exemptions). It also would amend Article XII, Section 27, and
399	add Sections 32 and 33, relating to the Schedule for the
400	amendments.
401	(2)  In certain circumstances, the law requires the
402	assessed value of homestead and specified nonhomestead property
403	to increase when the just value of the property decreases.
404	Therefore, this amendment provides that the Legislature may, by
405	general law, provide that the assessment of homestead and
406	specified nonhomestead property may not increase if the just
407	value of that property is less than the just value of the
408	property on the preceding January 1, subject to any adjustment
409	in the assessed value due to changes, additions, reductions, or
410	improvements to such property which are assessed as provided for
411	by general law. This amendment takes effect upon approval by the
412	voters. If approved at a special election held on the date of
413	the 2012 presidential preference primary, it shall operate
414	retroactively to January 1, 2012, or, if approved at the 2012
415	general election, shall take effect January 1, 2013.
416	(3)  This amendment reduces from 10 percent to 5 percent
417	the limitation on annual changes in assessments of nonhomestead
418	real property. This amendment takes effect upon approval of the
419	voters. If approved at a special election held on the date of
420	the 2012 presidential preference primary, it shall operate
421	retroactively to January 1, 2012, or, if approved at the 2012
422	general election, takes effect January 1, 2013.
423	(4)  This amendment also authorizes general law to provide,
424	subject to conditions specified in such law, an additional
425	homestead exemption to every person who establishes the right to
426	receive the homestead exemption provided in the Florida
427	Constitution within 1 year after purchasing the homestead
428	property and who has not owned property in the previous 3
429	calendar years to which the Florida homestead exemption applied.
430	The additional homestead exemption shall apply to all levies
431	except school district levies. The additional exemption is an
432	amount equal to 50 percent of the homestead property's just
433	value on January 1 of the year the homestead is established. The
434	additional homestead exemption may not exceed an amount equal to
435	the median just value of all homestead property within the
436	county where the property at issue is located for the calendar
437	year immediately preceding January 1 of the year the homestead
438	is established. The additional exemption shall apply for the
439	shorter of 5 years or the year of sale of the property. The
440	amount of the additional exemption shall be reduced in each
441	subsequent year by an amount equal to 20 percent of the amount
442	of the additional exemption received in the year the homestead
443	was established or by an amount equal to the difference between
444	the just value of the property and the assessed value of the
445	property determined under Article VII, Section 4(d), whichever
446	is greater. Not more than one such exemption shall be allowed
447	per homestead property at one time. The additional exemption
448	applies to property purchased on or after January 1, 2011, if
449	approved by the voters at a special election held on the date of
450	the 2012 presidential preference primary, or to property
451	purchased on or after January 1, 2012, if approved by the voters
452	at the 2012 general election. The additional exemption is not
453	available in the sixth and subsequent years after it is first
454	received. The amendment shall take effect upon approval by the
455	voters. If approved at a special election held on the date of
456	the 2012 presidential preference primary, it shall operate
457	retroactively to January 1, 2012, or, if approved at the 2012
458	general election, takes effect January 1, 2013.
459	(5)  This amendment also delays until 2023, the repeal,
460	currently scheduled to take effect in 2019, of constitutional
461	amendments adopted in 2008 which limit annual assessment
462	increases for specified nonhomestead real property. This
463	amendment delays until 2022 the submission of an amendment
464	proposing the abrogation of such repeal to the voters.

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