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VAB Agenda 02/10/2020 Item # 3A2 c(HJR 369) ITEM 3A2 Florida Legislative Session 2020 — Proposed Bills HJR 369 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 1 House Joint Resolution 2 A joint resolution proposing an amendment to Section 4 3 of Article VII and the creation of a new section in 4 Article XII of the State Constitution to increase the 5 period of time during which the accrued benefit from 6 specified limitations on homestead property tax 7 assessments may be transferred from a prior homestead 8 to a new homestead and to provide an effective date . 9 10 Be It Resolved by the Legislature of the State of Florida: 11 12 That the following amendment to Section 4 of Article VII 13 and the creation of a new section in Article XII of the State 14 Constitution are agreed to and shall be submitted to the 15 electors of this state for approval or rejection at the next 16 general election or at an earlier special election specifically 17 authorized by law for that purpose : 18 ARTICLE VII 19 FINANCE AND TAXATION 20 SECTION 4 . Taxation; assessments .- 21 By general law regulations shall be prescribed which shall 22 secure a just valuation of all property for ad valorem taxation, 23 provided: 24 (a) Agricultural land, land producing high water recharge 25 to Florida ' s aquifers, or land used exclusively for Page 1 of 9 CODING: Words 6tricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 26 noncommercial recreational purposes may be classified by general 27 law and assessed solely on the basis of character or use . 28 (b) As provided by general law and subject to conditions, 29 limitations, and reasonable definitions specified therein, land 30 used for conservation purposes shall be classified by general 31 law and assessed solely on the basis of character or use . 32 (c) Pursuant to general law tangible personal property 33 held for sale as stock in trade and livestock may be valued for 34 taxation at a specified percentage of its value, may be 35 classified for tax purposes, or may be exempted from taxation. 36 (d) All persons entitled to a homestead exemption under 37 Section 6 of this Article shall have their homestead assessed at 38 just value as of January 1 of the year following the effective 39 date of this amendment . This assessment shall change only as 40 provided in this subsection. 41 ( 1) Assessments subject to this subsection shall be 42 changed annually on January 1st of each year; but those changes 43 in assessments shall not exceed the lower of the following: 44 a . Three percent (3%) of the assessment for the prior 45 year. 46 b. The percent change in the Consumer Price Index for all 47 urban consumers, U. S . City Average, all items 1967=100, or 48 successor reports for the preceding calendar year as initially 49 reported by the United States Department of Labor, Bureau of 50 Labor Statistics . Page 2 of 9 CODING: Words stricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 51 (2) No assessment shall exceed just value. 52 (3) After any change of ownership, as provided by general 53 law, homestead property shall be assessed at just value as of 54 January 1 of the following year, unless the provisions of 55 paragraph (8 ) apply. Thereafter, the homestead shall be assessed 56 as provided in this subsection. 57 (4 ) New homestead property shall be assessed at just value 58 as of January 1st of the year following the establishment of the 59 homestead, unless the provisions of paragraph (8 ) apply. That 60 assessment shall only change as provided in this subsection. 61 (5) Changes, additions, reductions, or improvements to 62 homestead property shall be assessed as provided for by general 63 law; provided, however, after the adjustment for any change, 64 addition, reduction, or improvement, the property shall be 65 assessed as provided in this subsection. 66 ( 6) In the event of a termination of homestead status, the 67 property shall be assessed as provided by general law. 68 (7) The provisions of this amendment are severable . If any 69 of the provisions of this amendment shall be held 70 unconstitutional by any court of competent jurisdiction, the 71 decision of such court shall not affect or impair any remaining 72 provisions of this amendment . 73 (8 ) 74 a . A person who establishes a new homestead as of January 75 1, 2009, or January 1 of any aubacqucnt ycar and who has Page 3 of 9 CODING: Words stricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 76 received a homestead exemption pursuant to Section 6 of this 77 Article as of January 1 of any cithcr of the three two years 78 immediately preceding the establishment of the new homestead is 79 entitled to have the new homestead assessed at less than just 80 value . If this revision is approved in January of 2008, a person 81 who establishes a ncw homcstcad as of January 1, 2008 , is 82 entitled to have the ncw homestead assessed at less than just 83 value only if that person received a homcstcad exemption on 84 January 1, 2007 . The assessed value of the newly established 85 homestead shall be determined as follows : 86 1 . If the just value of the new homestead is greater than 87 or equal to the just value of the prior homestead as of January 88 1 of the year in which the prior homestead was abandoned, the 89 assessed value of the new homestead shall be the just value of 90 the new homestead minus an amount equal to the lesser of 91 $500, 000 or the difference between the just value and the 92 assessed value of the prior homestead as of January 1 of the 93 year in which the prior homestead was abandoned. Thereafter, the 94 homestead shall be assessed as provided in this subsection. 95 2 . If the just value of the new homestead is less than the 96 just value of the prior homestead as of January 1 of the year in 97 which the prior homestead was abandoned, the assessed value of 98 the new homestead shall be equal to the just value of the new 99 homestead divided by the just value of the prior homestead and 100 multiplied by the assessed value of the prior homestead. Page 4 of 9 CODING: Words stricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 101 However, if the difference between the just value of the new 102 homestead and the assessed value of the new homestead calculated 103 pursuant to this sub-subparagraph is greater than $500, 000, the 104 assessed value of the new homestead shall be increased so that 105 the difference between the just value and the assessed value 106 equals $500, 000 . Thereafter, the homestead shall be assessed as 107 provided in this subsection. 108 b. By general law and subject to conditions specified 109 therein, the legislature shall provide for application of this 110 paragraph to property owned by more than one person. 111 (e) The legislature may, by general law, for assessment 112 purposes and subject to the provisions of this subsection, allow 113 counties and municipalities to authorize by ordinance that 114 historic property may be assessed solely on the basis of 115 character or use . Such character or use assessment shall apply 116 only to the jurisdiction adopting the ordinance. The 117 requirements for eligible properties must be specified by 118 general law. 119 (f) A county may, in the manner prescribed by general law, 120 provide for a reduction in the assessed value of homestead 121 property to the extent of any increase in the assessed value of 122 that property which results from the construction or 123 reconstruction of the property for the purpose of providing 124 living quarters for one or more natural or adoptive grandparents 125 or parents of the owner of the property or of the owner ' s spouse Page 5 of 9 CODING: Words stricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 126 if at least one of the grandparents or parents for whom the 127 living quarters are provided is 62 years of age or older. Such a 128 reduction may not exceed the lesser of the following: 129 (1) The increase in assessed value resulting from 130 construction or reconstruction of the property. 131 (2) Twenty percent of the total assessed value of the 132 property as improved. 133 (g) For all levies other than school district levies, 134 assessments of residential real property, as defined by general 135 law, which contains nine units or fewer and which is not subject 136 to the assessment limitations set forth in subsections (a) 137 through (d) shall change only as provided in this subsection. 138 ( 1) Assessments subject to this subsection shall be 139 changed annually on the date of assessment provided by law; but 140 those changes in assessments shall not exceed ten percent (10%) 141 of the assessment for the prior year . 142 (2) No assessment shall exceed just value. 143 (3) After a change of ownership or control, as defined by 144 general law, including any change of ownership of a legal entity 145 that owns the property, such property shall be assessed at just 146 value as of the next assessment date . Thereafter, such property 147 shall be assessed as provided in this subsection. 148 (4 ) Changes, additions, reductions, or improvements to 149 such property shall be assessed as provided for by general law; 150 however, after the adjustment for any change, addition, Page 6 of 9 CODING: Words stricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 151 reduction, or improvement, the property shall be assessed as 152 provided in this subsection. 153 (h) For all levies other than school district levies, 154 assessments of real property that is not subject to the 155 assessment limitations set forth in subsections (a) through (d) 156 and (g) shall change only as provided in this subsection. 157 ( 1) Assessments subject to this subsection shall be 158 changed annually on the date of assessment provided by law; but 159 those changes in assessments shall not exceed ten percent (10%) 160 of the assessment for the prior year. 161 (2) No assessment shall exceed just value. 162 (3) The legislature must provide that such property shall 163 be assessed at just value as of the next assessment date after a 164 qualifying improvement, as defined by general law, is made to 165 such property. Thereafter, such property shall be assessed as 166 provided in this subsection. 167 (4) The legislature may provide that such property shall 168 be assessed at just value as of the next assessment date after a 169 change of ownership or control, as defined by general law, 170 including any change of ownership of the legal entity that owns 171 the property. Thereafter, such property shall be assessed as 172 provided in this subsection. 173 (5) Changes, additions, reductions, or improvements to 174 such property shall be assessed as provided for by general law; 175 however, after the adjustment for any change, addition, Page 7 of 9 CODING: Words stricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 176 reduction, or improvement, the property shall be assessed as 177 provided in this subsection. 178 (i) The legislature, by general law and subject to 179 conditions specified therein, may prohibit the consideration of 180 the following in the determination of the assessed value of real 181 property: 182 (1) Any change or improvement to real property used for 183 residential purposes made to improve the property' s resistance 184 to wind damage . 185 (2) The installation of a solar or renewable energy source 186 device . 187 (j ) 188 (1 ) The assessment of the following working waterfront 189 properties shall be based upon the current use of the property: 190 a . Land used predominantly for commercial fishing 191 purposes . 192 b. Land that is accessible to the public and used for 193 vessel launches into waters that are navigable . 194 c. Marinas and drystacks that are open to the public . 195 d. Water-dependent marine manufacturing facilities, 196 commercial fishing facilities, and marine vessel construction 197 and repair facilities and their support activities . 198 (2 ) The assessment benefit provided by this subsection is 199 subject to conditions and limitations and reasonable definitions 200 as specified by the legislature by general law. Page 8 of 9 CODING: Words stricken are deletions; words underlined are additions. hjr0369-00 FLORIDA HOUSE OF REPRESENTATIVES HJR 369 2020 201 ARTICLE XII 202 SCHEDULE 203 Transfer of the accrued benefit from specified limitations 204 on homestead property tax assessments; increased portability 205 period.—This section and the amendment to Section 4 of Article 206 VII, which extends to three years the time period during which 207 the accrued benefit from specified limitations on homestead 208 property tax assessments may be transferred from a prior 209 homestead to a new homestead, shall take effect January 1, 2021 . 210 BE IT FURTHER RESOLVED that the following statement be 211 placed on the ballot : 212 CONSTITUTIONAL AMENDMENT 213 ARTICLE VII, SECTION 4 214 ARTICLE XII 215 LIMITATIONS ON HOMESTEAD PROPERTY TAX ASSESSMENTS; 216 INCREASED PORTABILITY PERIOD TO TRANSFER ACCRUED BENEFIT.- 217 Proposing an amendment to the State Constitution, effective 218 January 1, 2021, to increase, from 2 years to 3 years, the 219 period of time during which accrued Save-Our-Homes benefits may 220 be transferred from a prior homestead to a new homestead. 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