Bill Text: FL S0658 | 2011 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Homestead/Nonhomestead Property

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-05-03 - Read 2nd time -SJ 768 [S0658 Detail]

Download: Florida-2011-S0658-Comm_Sub.html

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       Florida Senate - 2011                             CS for SJR 658
       
       
       
       By the Committee on Community Affairs; and Senator Fasano
       
       
       
       
       578-02438-11                                           2011658c1
    1                       Senate Joint Resolution                     
    2         A joint resolution proposing amendments to Sections 4
    3         and 6 of Article VII and the creation of Sections 32
    4         and 33 of Article XII of the State Constitution to
    5         prohibit increases in the assessed value of homestead
    6         property if the just value of the property decreases,
    7         reduce the limitation on annual assessment increases
    8         applicable to nonhomestead real property, provide an
    9         additional homestead exemption for owners of homestead
   10         property who have not owned homestead property for a
   11         specified time before purchase of the current
   12         homestead property, and application and limitations
   13         with respect thereto, and provide effective dates.
   14  
   15  Be It Resolved by the Legislature of the State of Florida:
   16  
   17         That the following amendments to Sections 4 and 6 of
   18  Article VII and the creation of Sections 32 and 33 of Article
   19  XII of the State Constitution are agreed to and shall be
   20  submitted to the electors of this state for approval or
   21  rejection at the next general election or at an earlier special
   22  election specifically authorized by law for that purpose:
   23                             ARTICLE VII                           
   24                        FINANCE AND TAXATION                       
   25         SECTION 4. Taxation; assessments.—By general law
   26  regulations shall be prescribed which shall secure a just
   27  valuation of all property for ad valorem taxation, provided:
   28         (a) Agricultural land, land producing high water recharge
   29  to Florida’s aquifers, or land used exclusively for
   30  noncommercial recreational purposes may be classified by general
   31  law and assessed solely on the basis of character or use.
   32         (b) As provided by general law and subject to conditions,
   33  limitations, and reasonable definitions specified therein, land
   34  used for conservation purposes shall be classified by general
   35  law and assessed solely on the basis of character or use.
   36         (c) Pursuant to general law tangible personal property held
   37  for sale as stock in trade and livestock may be valued for
   38  taxation at a specified percentage of its value, may be
   39  classified for tax purposes, or may be exempted from taxation.
   40         (d) All persons entitled to a homestead exemption under
   41  Section 6 of this Article shall have their homestead assessed at
   42  just value as of January 1 of the year following the effective
   43  date of this amendment. This assessment shall change only as
   44  provided in this subsection.
   45         (1) Assessments subject to this subsection shall change be
   46  changed annually on January 1 1st of each year.; but those
   47  changes in assessments
   48         a. A change in an assessment may shall not exceed the lower
   49  of the following:
   50         1.a. Three percent (3%) of the assessment for the prior
   51  year.
   52         2.b. The percent change in the Consumer Price Index for all
   53  urban consumers, U.S. City Average, all items 1967=100, or a
   54  successor index reports for the preceding calendar year as
   55  initially reported by the United States Department of Labor,
   56  Bureau of Labor Statistics.
   57         b. Except for changes, additions, reductions, or
   58  improvements to homestead property assessed as provided in
   59  subsection (d)(5), an assessment may not increase if the just
   60  value of the property is less than the just value of the
   61  property on the preceding January 1.
   62         (2) An No assessment may not shall exceed just value.
   63         (3) After a any change of ownership, as provided by general
   64  law, homestead property shall be assessed at just value as of
   65  January 1 of the following year, unless the provisions of
   66  paragraph (8) apply. Thereafter, the homestead shall be assessed
   67  as provided in this subsection.
   68         (4) New homestead property shall be assessed at just value
   69  as of January 1 1st of the year following the establishment of
   70  the homestead, unless the provisions of paragraph (8) apply.
   71  That assessment shall only change only as provided in this
   72  subsection.
   73         (5) Changes, additions, reductions, or improvements to
   74  homestead property shall be assessed as provided for by general
   75  law.; provided, However, after the adjustment for any change,
   76  addition, reduction, or improvement, the property shall be
   77  assessed as provided in this subsection.
   78         (6) In the event of a termination of homestead status, the
   79  property shall be assessed as provided by general law.
   80         (7) The provisions of this subsection amendment are
   81  severable. If a provision any of the provisions of this
   82  subsection is amendment shall be held unconstitutional by a any
   83  court of competent jurisdiction, the decision of the such court
   84  does shall not affect or impair any remaining provisions of this
   85  subsection 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 2 two years immediately
   90  preceding the establishment of a the new homestead is entitled
   91  to have the new homestead assessed at less than just value. If
   92  this 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 changed
  151  annually on the date of assessment provided by law. However,;
  152  but those changes in assessments may shall not exceed 3 ten
  153  percent (10%) of the assessment for the prior year. An
  154  assessment may not increase if the just value of the property is
  155  less than the just value of the property on the preceding date
  156  of assessment provided by law.
  157         (2) An No assessment may not 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 such
  164  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 changed
  173  annually on the date of assessment provided by law. However,;
  174  but those changes in assessments may shall not exceed 3 ten
  175  percent (10%) of the assessment for the prior year. An
  176  assessment may not increase if the just value of the property is
  177  less than the just value of the property on the preceding date
  178  of assessment provided by law.
  179         (2) An No assessment may not 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 be
  186  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 such
  192  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 purposes.
  206         b. Land that is accessible to the public and used for
  207  vessel launches into waters that are navigable.
  208         c. Marinas and drystacks that are open to the public.
  209         d. Water-dependent marine manufacturing facilities,
  210  commercial fishing facilities, and marine vessel construction
  211  and repair facilities and their support activities.
  212         (2) The assessment benefit provided by this subsection is
  213  subject to conditions and limitations and reasonable definitions
  214  as specified by the legislature by general law.
  215         SECTION 6. Homestead exemptions.—
  216         (a) Every person who has the legal or equitable title to
  217  real estate and maintains thereon the permanent residence of the
  218  owner, or another legally or naturally dependent upon the owner,
  219  shall be exempt from taxation thereon, except assessments for
  220  special benefits, up to the assessed valuation of $25,000
  221  twenty-five thousand dollars and, for all levies other than
  222  school district levies, on the assessed valuation greater than
  223  $50,000 fifty thousand dollars and up to $75,000 seventy-five
  224  thousand dollars, upon establishment of right thereto in the
  225  manner prescribed by law. The real estate may be held by legal
  226  or equitable title, by the entireties, jointly, in common, as a
  227  condominium, or indirectly by stock ownership or membership
  228  representing the owner’s or member’s proprietary interest in a
  229  corporation owning a fee or a leasehold initially in excess of
  230  98 ninety-eight years. The exemption shall not apply with
  231  respect to any assessment roll until such roll is first
  232  determined to be in compliance with the provisions of Section 4
  233  by a state agency designated by general law. This exemption is
  234  repealed on the effective date of any amendment to this Article
  235  which provides for the assessment of homestead property at less
  236  than just value.
  237         (b) Not more than one exemption shall be allowed any
  238  individual or family unit or with respect to any residential
  239  unit. No exemption shall exceed the value of the real estate
  240  assessable to the owner or, in case of ownership through stock
  241  or membership in a corporation, the value of the proportion
  242  which the interest in the corporation bears to the assessed
  243  value of the property.
  244         (c) By general law and subject to conditions specified
  245  therein, the legislature may provide to renters, who are
  246  permanent residents, ad valorem tax relief on all ad valorem tax
  247  levies. Such ad valorem tax relief shall be in the form and
  248  amount established by general law.
  249         (d) The legislature may, by general law, allow counties or
  250  municipalities, for the purpose of their respective tax levies
  251  and subject to the provisions of general law, to grant an
  252  additional homestead tax exemption not exceeding $50,000 fifty
  253  thousand dollars to any person who has the legal or equitable
  254  title to real estate and maintains thereon the permanent
  255  residence of the owner and who has attained age 65 sixty-five
  256  and whose household income, as defined by general law, does not
  257  exceed $20,000 twenty thousand dollars. The general law must
  258  allow counties and municipalities to grant this additional
  259  exemption, within the limits prescribed in this subsection, by
  260  ordinance adopted in the manner prescribed by general law, and
  261  must provide for the periodic adjustment of the income
  262  limitation prescribed in this subsection for changes in the cost
  263  of living.
  264         (e) Each veteran who is age 65 or older who is partially or
  265  totally permanently disabled shall receive a discount from the
  266  amount of the ad valorem tax otherwise owed on homestead
  267  property the veteran owns and resides in if the disability was
  268  combat related, the veteran was a resident of this state at the
  269  time of entering the military service of the United States, and
  270  the veteran was honorably discharged upon separation from
  271  military service. The discount shall be in a percentage equal to
  272  the percentage of the veteran’s permanent, service-connected
  273  disability as determined by the United States Department of
  274  Veterans Affairs. To qualify for the discount granted by this
  275  subsection, an applicant must submit to the county property
  276  appraiser, by March 1, proof of residency at the time of
  277  entering military service, an official letter from the United
  278  States Department of Veterans Affairs stating the percentage of
  279  the veteran’s service-connected disability and such evidence
  280  that reasonably identifies the disability as combat related, and
  281  a copy of the veteran’s honorable discharge. If the property
  282  appraiser denies the request for a discount, the appraiser must
  283  notify the applicant in writing of the reasons for the denial,
  284  and the veteran may reapply. The legislature may, by general
  285  law, waive the annual application requirement in subsequent
  286  years. This subsection shall take effect December 7, 2006, is
  287  self-executing, and does not require implementing legislation.
  288         (f) As provided by general law and subject to conditions
  289  specified therein, every person who establishes the right to
  290  receive the homestead exemption provided in subsection (a)
  291  within 1 year after purchasing the homestead property and who
  292  has not owned property in the previous 3 calendar years to which
  293  the homestead exemption provided in subsection (a) applied is
  294  entitled to an additional homestead exemption in an amount equal
  295  to 50 percent of the homestead property’s just value on January
  296  1 of the year the homestead is established for all levies other
  297  than school district levies. The additional exemption shall
  298  apply for a period of 5 years or until the year the property is
  299  sold, whichever occurs first. The amount of the additional
  300  exemption shall not exceed $200,000 and shall be reduced in each
  301  subsequent year by an amount equal to 20 percent of the amount
  302  of the additional exemption received in the year the homestead
  303  was established or by an amount equal to the difference between
  304  the just value of the property and the assessed value of the
  305  property determined under Section 4(d), whichever is greater.
  306  Not more than one exemption provided under this subsection shall
  307  be allowed per homestead property. The additional exemption
  308  shall apply to property purchased on or after January 1, 2012,
  309  but shall not be available in the sixth and subsequent years
  310  after the additional exemption is first received.
  311                             ARTICLE XII                           
  312                              SCHEDULE                             
  313         SECTION 32. Property assessments.—This section and the
  314  amendment of Section 4 of Article VII protecting homestead
  315  property having a declining just value and reducing the limit on
  316  the maximum annual increase in the assessed value of
  317  nonhomestead property from 10 percent to 3 percent shall take
  318  effect January 1, 2013.
  319         SECTION 33. Additional homestead exemption for owners of
  320  homestead property who recently have not owned homestead
  321  property.—This section and the amendment to Section 6 of Article
  322  VII providing for an additional homestead exemption for owners
  323  of homestead property who have not owned homestead property
  324  during the 3 calendar years immediately preceding purchase of
  325  the current homestead property shall take effect January 1,
  326  2013, and the additional homestead exemption shall be available
  327  for properties purchased on or after January 1, 2012.
  328         BE IT FURTHER RESOLVED that the following statement be
  329  placed on the ballot:
  330                      CONSTITUTIONAL AMENDMENT                     
  331                     ARTICLE VII, SECTIONS 4, 6                    
  332                    ARTICLE XII, SECTIONS 32, 33                   
  333         PROPERTY ASSESSMENT; HOMESTEAD VALUE DECLINE; NONHOMESTEAD
  334  INCREASE LIMITATION REDUCTION; ADDITIONAL HOMESTEAD EXEMPTION.—
  335         (1) In certain circumstances, the law requires the assessed
  336  value of homestead property to increase when the just value of
  337  the property decreases. Therefore, this amendment provides that
  338  the assessed value of homestead property will not increase if
  339  the just value of that property decreases and provides an
  340  effective date of January 1, 2013.
  341         (2) This amendment reduces from 10 percent to 3 percent the
  342  limitation on annual increases in assessments of nonhomestead
  343  real property and provides an effective date of January 1, 2013.
  344         (3) This amendment also provides owners of homestead
  345  property who have not owned homestead property during the 3
  346  calendar years immediately preceding purchase of the current
  347  homestead property with an additional homestead exemption equal
  348  to 50 percent of the property’s just value in the first year for
  349  all levies other than school district levies, limited to
  350  $200,000; applies the additional exemption for the shorter of 5
  351  years or the year of sale of the property; reduces the amount of
  352  the additional exemption in each succeeding year for 5 years by
  353  the greater of 20 percent of the amount of the initial
  354  additional exemption or the difference between the just value
  355  and the assessed value of the property; limits the additional
  356  exemption to one per homestead property; limits the additional
  357  exemption to properties purchased on or after January 1, 2012;
  358  prohibits availability of the additional exemption in the sixth
  359  and subsequent years after the additional exemption is granted;
  360  and provides for the amendment to take effect January 1, 2013,
  361  and apply to properties purchased on or after January 1, 2012.