Bill Text: FL S1402 | 2010 | Regular Session | Introduced
Bill Title: Homestead Property [WPSC]
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2010-04-30 - Died in Committee on Community Affairs [S1402 Detail]
Download: Florida-2010-S1402-Introduced.html
Florida Senate - 2010 SJR 1402 By Senator Garcia 40-01189-10 20101402__ 1 Senate Joint Resolution 2 A joint resolution proposing amendments to Sections 2, 3 4, and 6 and the creation of Section 19 of Article VII 4 and the creation of Section 31 of Article XII of the 5 State Constitution to provide for an alternative 6 methodology for changing assessments of homestead 7 property, the rate for taxing homestead property, and 8 homestead exemptions, provide for transitional 9 assessments of homestead property, and provide an 10 effective date. 11 12 Be It Resolved by the Legislature of the State of Florida: 13 14 That the following amendments to Sections 2, 4, and 6 and 15 the creation of Section 19 of Article VII and the creation of 16 Section 31 of Article XII of the State Constitution are agreed 17 to and shall be submitted to the electors of this state for 18 approval or rejection at the next general election or at an 19 earlier special election specifically authorized by law for that 20 purpose: 21 ARTICLE VII 22 FINANCE AND TAXATION 23 SECTION 2. Taxes; rate.—Except as provided in Section 19 of 24 this Article, all ad valorem taxation shall be at a uniform rate 25 within each taxing unit, except the taxes on intangible personal 26 property may be at different rates but shall never exceed two 27 mills on the dollar of assessed value; provided, as to any 28 obligations secured by mortgage, deed of trust, or other lien on 29 real estate wherever located, an intangible tax of not more than 30 two mills on the dollar may be levied by law to be in lieu of 31 all other intangible assessments on such obligations. 32 SECTION 4. Taxation; assessments.—By general law 33 regulations shall be prescribed which shall secure a just 34 valuation of all property for ad valorem taxation, provided: 35 (a) Agricultural land, land producing high water recharge 36 to Florida’s aquifers, or land used exclusively for 37 noncommercial recreational purposes may be classified by general 38 law and assessed solely on the basis of character or use. 39 (b) As provided by general law and subject to conditions, 40 limitations, and reasonable definitions specified therein, land 41 used for conservation purposes shall be classified by general 42 law and assessed solely on the basis of character or use. 43 (c) Pursuant to general law tangible personal property held 44 for sale as stock in trade and livestock may be valued for 45 taxation at a specified percentage of its value, may be 46 classified for tax purposes, or may be exempted from taxation. 47 (d) Except as provided in Section 19 of this Article, all 48 persons entitled to a homestead exemption under Section 6 of 49 this Article shall have their homestead assessed at just value 50 as of January 1 of the year following the effective date of this 51 amendment. This assessment shall change only as provided in this 52 subsection. 53 (1) Assessments subject to this subsection shall be changed 54 annually on January 1st of each year; but those changes in 55 assessments shall not exceed the lower of the following: 56 a. Three percent (3%) of the assessment for the prior year. 57 b. The percent change in the Consumer Price Index for all 58 urban consumers, U.S. City Average, all items 1967=100, or 59 successor reports for the preceding calendar year as initially 60 reported by the United States Department of Labor, Bureau of 61 Labor Statistics. 62 (2) No assessment shall exceed just value. 63 (3) After 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 1st of the year following the establishment of the 70 homestead, unless the provisions of paragraph (8) apply. That 71 assessment shall only change as provided in this subsection. 72 (5) Changes, additions, reductions, or improvements to 73 homestead property shall be assessed as provided for by general 74 law; provided, however, after the adjustment for any change, 75 addition, reduction, or improvement, the property shall be 76 assessed as provided in this subsection. 77 (6) In the event of a termination of homestead status, the 78 property shall be assessed as provided by general law. 79 (7) The provisions of this amendment are severable. If any 80 of the provisions of this amendment shall be held 81 unconstitutional by any court of competent jurisdiction, the 82 decision of such court shall not affect or impair any remaining 83 provisions of this amendment. 84 (8)a. A person who establishes a new homestead as of 85 January 1, 2009, or January 1 of any subsequent year and who has 86 received a homestead exemption pursuant to Section 6 of this 87 Article as of January 1 of either of the two years immediately 88 preceding the establishment of the new homestead is entitled to 89 have the new homestead assessed at less than just value. If this 90 revision is approved in January of 2008, a person who 91 establishes a new homestead as of January 1, 2008, is entitled 92 to have the new homestead assessed at less than just value only 93 if that person received a homestead exemption on January 1, 94 2007. The assessed value of the newly established homestead 95 shall be determined as follows: 96 1. If the just value of the new homestead is greater than 97 or equal to the just value of the prior homestead as of January 98 1 of the year in which the prior homestead was abandoned, the 99 assessed value of the new homestead shall be the just value of 100 the new homestead minus an amount equal to the lesser of 101 $500,000 or the difference between the just value and the 102 assessed value of the prior homestead as of January 1 of the 103 year in which the prior homestead was abandoned. Thereafter, the 104 homestead shall be assessed as provided in this subsection. 105 2. If the just value of the new homestead is less than the 106 just value of the prior homestead as of January 1 of the year in 107 which the prior homestead was abandoned, the assessed value of 108 the new homestead shall be equal to the just value of the new 109 homestead divided by the just value of the prior homestead and 110 multiplied by the assessed value of the prior homestead. 111 However, if the difference between the just value of the new 112 homestead and the assessed value of the new homestead calculated 113 pursuant to this sub-subparagraph is greater than $500,000, the 114 assessed value of the new homestead shall be increased so that 115 the difference between the just value and the assessed value 116 equals $500,000. Thereafter, the homestead shall be assessed as 117 provided in this subsection. 118 b. By general law and subject to conditions specified 119 therein, the Legislature shall provide for application of this 120 paragraph to property owned by more than one person. 121 (e) The legislature may, by general law, for assessment 122 purposes and subject to the provisions of this subsection, allow 123 counties and municipalities to authorize by ordinance that 124 historic property may be assessed solely on the basis of 125 character or use. Such character or use assessment shall apply 126 only to the jurisdiction adopting the ordinance. The 127 requirements for eligible properties must be specified by 128 general law. 129 (f) A county may, in the manner prescribed by general law, 130 provide for a reduction in the assessed value of homestead 131 property to the extent of any increase in the assessed value of 132 that property which results from the construction or 133 reconstruction of the property for the purpose of providing 134 living quarters for one or more natural or adoptive grandparents 135 or parents of the owner of the property or of the owner’s spouse 136 if at least one of the grandparents or parents for whom the 137 living quarters are provided is 62 years of age or older. Such a 138 reduction may not exceed the lesser of the following: 139 (1) The increase in assessed value resulting from 140 construction or reconstruction of the property. 141 (2) Twenty percent of the total assessed value of the 142 property as improved. 143 (g) Except as provided in Section 19 of this Article, for 144 all levies other than school district levies, assessments of 145 residential real property, as defined by general law, which 146 contains nine units or fewer and which is not subject to the 147 assessment limitations set forth in subsections (a) through (d) 148 shall change only as provided in this subsection. 149 (1) Assessments subject to this subsection shall be changed 150 annually on the date of assessment provided by law; but those 151 changes in assessments shall not exceed ten percent (10%) of the 152 assessment for the prior year. 153 (2) No assessment shall exceed just value. 154 (3) After a change of ownership or control, as defined by 155 general law, including any change of ownership of a legal entity 156 that owns the property, such property shall be assessed at just 157 value as of the next assessment date. Thereafter, such property 158 shall be assessed as provided in this subsection. 159 (4) Changes, additions, reductions, or improvements to such 160 property shall be assessed as provided for by general law; 161 however, after the adjustment for any change, addition, 162 reduction, or improvement, the property shall be assessed as 163 provided in this subsection. 164 (h) Except as provided in Section 19 of this Article, for 165 all levies other than school district levies, assessments of 166 real property that is not subject to the assessment limitations 167 set forth in subsections (a) through (d) and (g) shall change 168 only as provided in this subsection. 169 (1) Assessments subject to this subsection shall be changed 170 annually on the date of assessment provided by law; but those 171 changes in assessments shall not exceed ten percent (10%) of the 172 assessment for the prior year. 173 (2) No assessment shall exceed just value. 174 (3) The legislature must provide that such property shall 175 be assessed at just value as of the next assessment date after a 176 qualifying improvement, as defined by general law, is made to 177 such property. Thereafter, such property shall be assessed as 178 provided in this subsection. 179 (4) The legislature may provide that such property shall be 180 assessed at just value as of the next assessment date after a 181 change of ownership or control, as defined by general law, 182 including any change of ownership of the legal entity that owns 183 the property. Thereafter, such property shall be assessed as 184 provided in this subsection. 185 (5) Changes, additions, reductions, or improvements to such 186 property shall be assessed as provided for by general law; 187 however, after the adjustment for any change, addition, 188 reduction, or improvement, the property shall be assessed as 189 provided in this subsection. 190 (i) The legislature, by general law and subject to 191 conditions specified therein, may prohibit the consideration of 192 the following in the determination of the assessed value of real 193 property used for residential purposes: 194 (1) Any change or improvement made for the purpose of 195 improving the property’s resistance to wind damage. 196 (2) The installation of a renewable energy source device. 197 (j)(1) The assessment of the following working waterfront 198 properties shall be based upon the current use of the property: 199 a. Land used predominantly for commercial fishing purposes. 200 b. Land that is accessible to the public and used for 201 vessel launches into waters that are navigable. 202 c. Marinas and drystacks that are open to the public. 203 d. Water-dependent marine manufacturing facilities, 204 commercial fishing facilities, and marine vessel construction 205 and repair facilities and their support activities. 206 (2) The assessment benefit provided by this subsection is 207 subject to conditions and limitations and reasonable definitions 208 as specified by the legislature by general law. 209 SECTION 6. Homestead exemptions.— 210 (a) Except as provided in Section 19 of this Article, every 211 person who has the legal or equitable title to real estate and 212 maintains thereon the permanent residence of the owner, or 213 another legally or naturally dependent upon the owner, shall be 214 exempt from taxation thereon, except assessments for special 215 benefits, up to the assessed valuation of twenty-five thousand 216 dollars and, for all levies other than school district levies, 217 on the assessed valuation greater than fifty thousand dollars 218 and up to seventy-five thousand dollars, upon establishment of 219 right thereto in the manner prescribed by law. The real estate 220 may be held by legal or equitable title, by the entireties, 221 jointly, in common, as a condominium, or indirectly by stock 222 ownership or membership representing the owner’s or member’s 223 proprietary interest in a corporation owning a fee or a 224 leasehold initially in excess of ninety-eight years. The 225 exemption shall not apply with respect to any assessment roll 226 until such roll is first determined to be in compliance with the 227 provisions of section 4 by a state agency designated by general 228 law. This exemption is repealed on the effective date of any 229 amendment to this Article which provides for the assessment of 230 homestead property at less than just value. 231 (b) Not more than one exemption shall be allowed any 232 individual or family unit or with respect to any residential 233 unit. No exemption shall exceed the value of the real estate 234 assessable to the owner or, in case of ownership through stock 235 or membership in a corporation, the value of the proportion 236 which the interest in the corporation bears to the assessed 237 value of the property. 238 (c) By general law and subject to conditions specified 239 therein, the Legislature may provide to renters, who are 240 permanent residents, ad valorem tax relief on all ad valorem tax 241 levies. Such ad valorem tax relief shall be in the form and 242 amount established by general law. 243 (d) Except as provided in Section 19 of this Article, the 244 legislature may, by general law, allow counties or 245 municipalities, for the purpose of their respective tax levies 246 and subject to the provisions of general law, to grant an 247 additional homestead tax exemption not exceeding fifty thousand 248 dollars to any person who has the legal or equitable title to 249 real estate and maintains thereon the permanent residence of the 250 owner and who has attained age sixty-five and whose household 251 income, as defined by general law, does not exceed twenty 252 thousand dollars. The general law must allow counties and 253 municipalities to grant this additional exemption, within the 254 limits prescribed in this subsection, by ordinance adopted in 255 the manner prescribed by general law, and must provide for the 256 periodic adjustment of the income limitation prescribed in this 257 subsection for changes in the cost of living. 258 (e) Except as provided in Section 19 of this Article, each 259 veteran who is age 65 or older who is partially or totally 260 permanently disabled shall receive a discount from the amount of 261 the ad valorem tax otherwise owed on homestead property the 262 veteran owns and resides in if the disability was combat 263 related, the veteran was a resident of this state at the time of 264 entering the military service of the United States, and the 265 veteran was honorably discharged upon separation from military 266 service. The discount shall be in a percentage equal to the 267 percentage of the veteran’s permanent, service-connected 268 disability as determined by the United States Department of 269 Veterans Affairs. To qualify for the discount granted by this 270 subsection, an applicant must submit to the county property 271 appraiser, by March 1, proof of residency at the time of 272 entering military service, an official letter from the United 273 States Department of Veterans Affairs stating the percentage of 274 the veteran’s service-connected disability and such evidence 275 that reasonably identifies the disability as combat related, and 276 a copy of the veteran’s honorable discharge. If the property 277 appraiser denies the request for a discount, the appraiser must 278 notify the applicant in writing of the reasons for the denial, 279 and the veteran may reapply. The Legislature may, by general 280 law, waive the annual application requirement in subsequent 281 years. This subsection shall take effect December 7, 2006, is 282 self-executing, and does not require implementing legislation. 283 SECTION 19. Alternative homestead property assessment; 284 taxation; exemption; future revision limitation.— 285 (a) All persons entitled to a homestead exemption under 286 this section shall have their homestead assessed at just value 287 as of January 1 of the year following the effective date of this 288 section. This assessment shall be changed each year by the 289 percentage change in the market value of the property from the 290 prior year, provided that any increase in the assessment shall 291 not exceed the lower of three percent (3%) of the assessment for 292 the prior year or the percent change in the Consumer Price Index 293 for all urban consumers, U.S. City Average, all items 1967=100, 294 or successor reports for the preceding calendar year as 295 initially reported by the United States Department of Labor, 296 Bureau of Labor Statistics. 297 (b) Under this section, homestead property shall be taxed 298 at the rate of one and one-half percent (1.5%) of the just value 299 of the property. 300 (c) Every person who has the legal or equitable title to 301 real estate and maintains thereon the permanent residence of the 302 owner, or another legally or naturally dependent upon the owner, 303 shall be exempt from taxation thereon, except assessments for 304 special benefits, up to the assessed valuation of the median 305 value of single-family homes for the prior year in the county in 306 which the homestead is located. The owner of a homestead who is 307 65 years of age or older and whose income does not exceed 80 308 percent of the median family income for the county shall be 309 entitled to an additional exemption equal to the amount of the 310 exemption provided in this subsection. 311 (d) The provisions of this section shall apply only to the 312 owner of homestead property and the homestead if the owner makes 313 an irrevocable election to have this section apply instead of 314 Sections 2, 4, and 6 of this Article. 315 (e) By general law, the legislature shall provide 316 regulations to implement and enforce this section. 317 (f) Notwithstanding any other provision of Article XI, any 318 revision to the provisions of this section may be made only by 319 initiative filed as provided in Section 3 of Article XI and 320 submitted to the voters in a general election. 321 ARTICLE XII 322 SCHEDULE 323 SECTION 31. Transitional assessments of homestead property; 324 effective date.— 325 (a) Each person entitled to a homestead exemption under 326 Section 6 of Article VII on the effective date of this section 327 shall continue to have the person’s current homestead assessed 328 under Section 4(c) of Article VII until the person makes an 329 irrevocable election to have the person’s homestead assessed 330 under Section 19 of Article VII. After an irrevocable election 331 is made, the homestead will continue to be assessed under 332 Section 4(c) of Article VII until December 31 of the year in 333 which the election is made and thereafter may not be assessed 334 under Section 4(c) of Article VII. Beginning January 1 of the 335 year following such election, the homestead shall be assessed 336 and taxed as provided by Section 19 of Article VII. By general 337 law and subject to conditions specified therein, the legislature 338 shall provide procedures for persons to make the election. 339 (b) The amendments to Sections 2, 4, and 6 and the creation 340 of Section 19 of Article VII, providing an alternative 341 methodology for changing assessments of homestead property, 342 providing for taxing homestead property at 1.5 percent of the 343 just value, and providing a homestead exemption equal to the 344 median value of single-family homes in the county in which the 345 homestead is located and a double homestead exemption for low 346 income property owners 65 years of age or older, and limiting 347 revisions to a citizen’s initiative, and this section, providing 348 for transitional assessments of homestead property, if submitted 349 to the electors of this state for approval or rejection at a 350 special election authorized by law to be held in 2010 or at the 351 2010 general election, shall take effect upon approval by the 352 electors and shall operate retroactively to January 1, 2010. 353 BE IT FURTHER RESOLVED that the following statement be 354 placed on the ballot: 355 CONSTITUTIONAL AMENDMENT 356 ARTICLE VII, SECTIONS 2, 4, 6, 19 357 ARTICLE XII, SECTION 31 358 ALTERNATIVE HOMESTEAD PROPERTY ASSESSMENT, TAXATION, 359 EXEMPTION.—Proposing changes to the State Constitution relating 360 to ad valorem taxation as follows: 361 1.a. Provides for changing the assessment of homestead 362 property each year by the percentage change in the market value 363 of the property from the prior year and limiting increases in 364 assessments to the lower of 3 percent or the percentage change 365 in the Consumer Price Index. 366 b. Provides for taxing homestead property at 1.5 percent of 367 the just value of the property. 368 c. Provides for a homestead exemption equal to the median 369 value of single-family homes in the county in which the 370 homestead is located and a double exemption for homestead owners 371 65 years of age or older with an income not exceeding 80 percent 372 of the median family income for the county. 373 2. Preserves the existing assessment, taxation, and 374 exemption of homestead property but provides for an irrevocable 375 election by the homestead owner to apply the provisions of the 376 amendments to the homestead property. 377 3. Limits revising the provisions of the amendment to 378 citizen’s initiative. 379 4. Schedules the changes to take effect upon approval by 380 the voters and operate retroactively to January 1, 2010, if 381 approved in a special election held in 2010 or in the general 382 election held in November of 2010.
