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

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Status: (Introduced - Dead) 2011-03-08 - Withdrawn from Finance and Tax Committee; Community and Military Affairs Subcommittee; Economic Affairs Committee [H0537 Detail]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

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HJR 537

1	House Joint Resolution
2	A joint resolution proposing an amendment to Sections 2,
3	4, and 9 of Article VII of the State Constitution to
4	prevent taxes from increasing on homestead and
5	nonhomestead property with a declining market value by
6	prohibiting increases in the annual assessment and the
7	applicable millage rate.
8
9	Be It Resolved by the Legislature of the State of Florida:
10
11	That the following amendments to Sections 2, 4, and 9 of
12	Article VII of the State Constitution are agreed to and shall be
13	submitted to the electors of this state for approval or
14	rejection at the next general election or at an earlier special
15	election 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
19	at a uniform rate within each taxing unit, except the taxes on
20	real property may be at different rates if the property is not
21	subject to an assessment increase under Section 4 and a millage
22	increase under Section 9 and except the taxes on intangible
23	personal property may be at different rates but shall never
24	exceed two mills on the dollar of assessed value; provided, as
25	to any obligations secured by mortgage, deed of trust, or other
26	lien on real estate wherever located, an intangible tax of not
27	more than two mills on the dollar may be levied by law to be in
28	lieu of all other intangible assessments on such obligations.
29	SECTION 4.  Taxation; assessments.-By general law
30	regulations shall be prescribed which shall secure a just
31	valuation of all property for ad valorem taxation, provided:
32	(a)  Agricultural land, land producing high water recharge
33	to Florida's aquifers, or land used exclusively for
34	noncommercial recreational purposes may be classified by general
35	law and assessed solely on the basis of character or use.
36	(b)  As provided by general law and subject to conditions,
37	limitations, and reasonable definitions specified therein, land
38	used for conservation purposes shall be classified by general
39	law and assessed solely on the basis of character or use.
40	(c)  Pursuant to general law tangible personal property
41	held for sale as stock in trade and livestock may be valued for
42	taxation at a specified percentage of its value, may be
43	classified for tax purposes, or may be exempted from taxation.
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
50	changed annually on January 1 1st of each year.
51	a.  An increase in an assessment; but those changes in
52	assessments shall not exceed the lower of the following:
53	1.a.  Three percent (3%) of the assessment for the prior
54	year.
55	2.b.  The percent change in the Consumer Price Index for
56	all urban consumers, U.S. City Average, all items 1967=100, or
57	successor reports for the preceding calendar year as initially
58	reported by the United States Department of Labor, Bureau of
59	Labor Statistics.
60	b.  An assessment shall not increase if the just value of
61	the property is less than the just value of the property on the
62	preceding January 1.
63	(2)  No assessment shall exceed just value.
64	(3)  After any change of ownership, as provided by general
65	law, homestead property shall be assessed at just value as of
66	January 1 of the following year, unless the provisions of
67	paragraph (8) apply. Thereafter, the homestead shall be assessed
68	as provided in this subsection.
69	(4)  New homestead property shall be assessed at just value
70	as of January 1 1st of the year following the establishment of
71	the homestead, unless the provisions of paragraph (8) apply.
72	That assessment shall only change as provided in this
73	subsection.
74	(5)  Changes, additions, reductions, or improvements to
75	homestead property shall be assessed as provided for by general
76	law; provided, however, after the adjustment for any change,
77	addition, reduction, or improvement, the property shall be
78	assessed as provided in this subsection.
79	(6)  In the event of a termination of homestead status, the
80	property shall be assessed as provided by general law.
81	(7)  The provisions of this amendment are severable. If any
82	of the provisions of this amendment shall be held
83	unconstitutional by any court of competent jurisdiction, the
84	decision of such court shall not affect or impair any remaining
85	provisions of this amendment.
86	(8)a.  A person who establishes a new homestead as of
87	January 1, 2009, or January 1 of any subsequent year and who has
88	received a homestead exemption pursuant to Section 6 of this
89	Article as of January 1 of either of the two years immediately
90	preceding the establishment of the new homestead is entitled to
91	have the new homestead assessed at less than just value. If this
92	revision is approved in January of 2008, a person who
93	establishes a new homestead as of January 1, 2008, is entitled
94	to have the new homestead assessed at less than just value only
95	if that person received a homestead exemption on January 1,
96	2007. The assessed value of the newly established homestead
97	shall be determined as follows:
98	1.  If the just value of the new homestead is greater than
99	or equal to the just value of the prior homestead as of January
100	1 of the year in which the prior homestead was abandoned, the
101	assessed value of the new homestead shall be the just value of
102	the new homestead minus an amount equal to the lesser of
103	$500,000 or the difference between the just value and the
104	assessed value of the prior homestead as of January 1 of the
105	year in which the prior homestead was abandoned. Thereafter, the
106	homestead shall be assessed as provided in this subsection.
107	2.  If the just value of the new homestead is less than the
108	just value of the prior homestead as of January 1 of the year in
109	which the prior homestead was abandoned, the assessed value of
110	the new homestead shall be equal to the just value of the new
111	homestead divided by the just value of the prior homestead and
112	multiplied by the assessed value of the prior homestead.
113	However, if the difference between the just value of the new
114	homestead and the assessed value of the new homestead calculated
115	pursuant to this sub-subparagraph is greater than $500,000, the
116	assessed value of the new homestead shall be increased so that
117	the difference between the just value and the assessed value
118	equals $500,000. Thereafter, the homestead shall be assessed as
119	provided in this subsection.
120	b.  By general law and subject to conditions specified
121	therein, the Legislature shall provide for application of this
122	paragraph to property owned by more than one person.
123	(e)  The legislature may, by general law, for assessment
124	purposes and subject to the provisions of this subsection, allow
125	counties and municipalities to authorize by ordinance that
126	historic property may be assessed solely on the basis of
127	character or use. Such character or use assessment shall apply
128	only to the jurisdiction adopting the ordinance. The
129	requirements for eligible properties must be specified by
130	general law.
131	(f)  A county may, in the manner prescribed by general law,
132	provide for a reduction in the assessed value of homestead
133	property to the extent of any increase in the assessed value of
134	that property which results from the construction or
135	reconstruction of the property for the purpose of providing
136	living quarters for one or more natural or adoptive grandparents
137	or parents of the owner of the property or of the owner's spouse
138	if at least one of the grandparents or parents for whom the
139	living quarters are provided is 62 years of age or older. Such a
140	reduction may not exceed the lesser of the following:
141	(1)  The increase in assessed value resulting from
142	construction or reconstruction of the property.
143	(2)  Twenty percent of the total assessed value of the
144	property as improved.
145	(g)  For all levies other than school district levies,
146	assessments of residential real property, as defined by general
147	law, which contains nine units or fewer and which is not subject
148	to the assessment limitations set forth in subsections (a)
149	through (d) shall change only as provided in this subsection.
150	(1)  Assessments subject to this subsection shall be
151	changed annually on the date of assessment provided by law,; but
152	an increase those changes in assessments shall not exceed ten
153	percent (10%) of the assessment for the prior year. An
154	assessment shall not increase if the just value of the property
155	is less than the just value of the property on the preceding
156	date 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
159	general law, including any change of ownership of a legal entity
160	that owns the property, such property shall be assessed at just
161	value as of the next assessment date. Thereafter, such property
162	shall be assessed as provided in this subsection.
163	(4)  Changes, additions, reductions, or improvements to
164	such property shall be assessed as provided for by general law;
165	however, after the adjustment for any change, addition,
166	reduction, or improvement, the property shall be assessed as
167	provided in this subsection.
168	(h)  For all levies other than school district levies,
169	assessments of real property that is not subject to the
170	assessment limitations set forth in subsections (a) through (d)
171	and (g) shall change only as provided in this subsection.
172	(1)  Assessments subject to this subsection shall be
173	changed annually on the date of assessment provided by law,; but
174	an increase those changes in assessments shall not exceed ten
175	percent (10%) of the assessment for the prior year. An
176	assessment shall not increase if the just value of the property
177	is less than the just value of the property on the preceding
178	date of assessment provided by law.
179	(2)  No assessment shall exceed just value.
180	(3)  The legislature must provide that such property shall
181	be assessed at just value as of the next assessment date after a
182	qualifying improvement, as defined by general law, is made to
183	such property. Thereafter, such property shall be assessed as
184	provided in this subsection.
185	(4)  The legislature may provide that such property shall
186	be assessed at just value as of the next assessment date after a
187	change of ownership or control, as defined by general law,
188	including any change of ownership of the legal entity that owns
189	the property. Thereafter, such property shall be assessed as
190	provided in this subsection.
191	(5)  Changes, additions, reductions, or improvements to
192	such property shall be assessed as provided for by general law;
193	however, after the adjustment for any change, addition,
194	reduction, or improvement, the property shall be assessed as
195	provided in this subsection.
196	(i)  The legislature, by general law and subject to
197	conditions specified therein, may prohibit the consideration of
198	the following in the determination of the assessed value of real
199	property used for residential purposes:
200	(1)  Any change or improvement made for the purpose of
201	improving 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
204	properties shall be based upon the current use of the property:
205	a.  Land used predominantly for commercial fishing
206	purposes.
207	b.  Land that is accessible to the public and used for
208	vessel launches into waters that are navigable.
209	c.  Marinas and drystacks that are open to the public.
210	d.  Water-dependent marine manufacturing facilities,
211	commercial fishing facilities, and marine vessel construction
212	and repair facilities and their support activities.
213	(2)  The assessment benefit provided by this subsection is
214	subject to conditions and limitations and reasonable definitions
215	as specified by the legislature by general law.
216	SECTION 9.  Local taxes.-
217	(a)  Counties, school districts, and municipalities shall,
218	and special districts may, be authorized by law to levy ad
219	valorem taxes and may be authorized by general law to levy other
220	taxes, for their respective purposes, except ad valorem taxes on
221	intangible personal property and taxes prohibited by this
222	constitution.
223	(b)  Ad valorem taxes, exclusive of taxes levied for the
224	payment of bonds and taxes levied for periods not longer than
225	two years when authorized by vote of the electors who are the
226	owners of freeholds therein not wholly exempt from taxation,
227	shall not be levied in excess of the following millages upon the
228	assessed value of real estate and tangible personal property:
229	for all county purposes, ten mills; for all municipal purposes,
230	ten mills; for all school purposes, ten mills; for water
231	management purposes for the northwest portion of the state lying
232	west of the line between ranges two and three east, 0.05 mill;
233	for water management purposes for the remaining portions of the
234	state, 1.0 mill; and for all other special districts a millage
235	authorized by law approved by vote of the electors who are
236	owners of freeholds therein not wholly exempt from taxation. A
237	county furnishing municipal services may, to the extent
238	authorized by law, levy additional taxes within the limits fixed
239	for municipal purposes.
240	(c)  An increase in millage by a county, municipality, or
241	special district shall not apply to any real property if the
242	property's assessment may not be increased under Section 4
243	because the just value of the property is less than the just
244	value of the property on the preceding date of assessment
245	provided by law. An increase in millage by a school district
246	shall not apply to homestead property if the property's
247	assessment may not be increased under Section 4 because the just
248	value of the property is less than the just value of the
249	property on the preceding date of assessment provided by law.
250	BE IT FURTHER RESOLVED that the following statement be
251	placed on the ballot:
252	CONSTITUTIONAL AMENDMENT
253	ARTICLE VII, SECTIONS 2, 4, 9
254	HOMESTEAD AND NONHOMESTEAD PROPERTY WITH A DECLINING MARKET
255	VALUE; PROHIBITING INCREASES IN ASSESSMENTS OR MILLAGE.-
256	Proposing an amendment to the State Constitution to prevent
257	property taxes from increasing on homestead and nonhomestead
258	property with a declining fair market value by prohibiting
259	increases in either the assessed value or millage rate
260	applicable to the property.

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