THE BILL ITSELF
HJR 1275
Prohibition on Levying Ad Valorem Taxes on Tangible Personal Property
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House Joint Resolution
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A joint resolution proposing amendments to Sections 3,
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4, and 9 of Article VII and creating a new section in
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Article XII of the State Constitution to prohibit
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levying ad valorem taxes on tangible personal property
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by counties, school districts, and municipalities and
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to provide an effective date.
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Be It Resolved by the Legislature of the State of Florida:
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That the following amendments to Sections 3, 4, and 9 of
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Article VII and the creation of a new section in Article XII of
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the State Constitution are agreed to and shall be submitted to
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the electors of this state for approval or rejection at the next
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general election or at an earlier special election specifically
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authorized by law for that purpose:
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ARTICLE VII
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FINANCE AND TAXATION
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SECTION 3. Taxes; exemptions.—
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(a) All property owned by a municipality and used
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exclusively by it for municipal or public purposes shall be
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exempt from taxation. A municipality, owning property outside
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the municipality, may be required by general law to make payment
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to the taxing unit in which the property is located. Such
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portions of property as are used predominantly for educational,
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literary, scientific, religious or charitable purposes may be
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exempted by general law from taxation.
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(b) There shall be exempt from taxation, cumulatively, to
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every head of a family residing in this state, household goods
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and personal effects to the value fixed by general law, not less
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than one thousand dollars, and to every widow or widower or
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person who is blind or totally and permanently disabled,
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property to the value fixed by general law not less than five
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hundred dollars.
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(c) Any county or municipality may, for the purpose of its
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respective tax levy and subject to the provisions of this
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subsection and general law, grant community and economic
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development ad valorem tax exemptions to new businesses and
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expansions of existing businesses, as defined by general law.
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Such an exemption may be granted only by ordinance of the county
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or municipality, and only after the electors of the county or
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municipality voting on such question in a referendum authorize
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the county or municipality to adopt such ordinances. An
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exemption so granted shall apply to improvements to real
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property made by or for the use of a new business and
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improvements to real property related to the expansion of an
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existing business and shall also apply to tangible personal
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property of such new business and tangible personal property
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related to the expansion of an existing business. The amount or
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limits of the amount of such exemption shall be specified by
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general law. The period of time for which such exemption may be
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granted to a new business or expansion of an existing business
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shall be determined by general law. The authority to grant such
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exemption shall expire ten years from the date of approval by
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the electors of the county or municipality, and may be renewable
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by referendum as provided by general law.
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(d) Any county or municipality may, for the purpose of its
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respective tax levy and subject to the provisions of this
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subsection and general law, grant historic preservation ad
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valorem tax exemptions to owners of historic properties. This
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exemption may be granted only by ordinance of the county or
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municipality. The amount or limits of the amount of this
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exemption and the requirements for eligible properties must be
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specified by general law. The period of time for which this
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exemption may be granted to a property owner shall be determined
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by general law.
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(e) By general law and subject to conditions specified
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therein:
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(1) Twenty-five thousand dollars of the assessed value of
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property subject to tangible personal property tax shall be
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exempt from ad valorem taxation.
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(2) The assessed value of solar devices or renewable
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energy source devices subject to tangible personal property tax
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may be exempt from ad valorem taxation, subject to limitations
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provided by general law.
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(f) There shall be granted an ad valorem tax exemption for
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real property dedicated in perpetuity for conservation purposes,
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including real property encumbered by perpetual conservation
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easements or by other perpetual conservation protections, as
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defined by general law.
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(f)(g) By general law and subject to the conditions
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specified therein, each person who receives a homestead
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exemption as provided in section 6 of this article; who was a
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member of the United States military or military reserves, the
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United States Coast Guard or its reserves, or the Florida
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National Guard; and who was deployed during the preceding
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calendar year on active duty outside the continental United
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States, Alaska, or Hawaii in support of military operations
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designated by the legislature shall receive an additional
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exemption equal to a percentage of the taxable value of his or
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her homestead property. The applicable percentage shall be
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calculated as the number of days during the preceding calendar
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year the person was deployed on active duty outside the
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continental United States, Alaska, or Hawaii in support of
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military operations designated by the legislature divided by the
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number of days in that year.
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SECTION 4. Taxation; assessments.—By general law
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regulations shall be prescribed which shall secure a just
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valuation of all property for ad valorem taxation, provided:
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(a) Agricultural land, land producing high water recharge
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to Florida's aquifers, or land used exclusively for
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noncommercial recreational purposes may be classified by general
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law and assessed solely on the basis of character or use.
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(b) As provided by general law and subject to conditions,
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limitations, and reasonable definitions specified therein, land
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used for conservation purposes shall be classified by general
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law and assessed solely on the basis of character or use.
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(c) Pursuant to general law tangible personal property
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held for sale as stock in trade and livestock may be valued for
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taxation at a specified percentage of its value, may be
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classified for tax purposes, or may be exempted from taxation.
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(d) All persons entitled to a homestead exemption under
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section 6 of this article shall have their homestead assessed at
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just value as of January 1 of the year following the effective
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date of this amendment. This assessment shall change only as
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provided in this subsection.
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(1) Assessments subject to this subsection shall be
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changed annually on January 1st of each year; but those changes
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in assessments shall not exceed the lower of the following:
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a. Three percent (3%) of the assessment for the prior
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year.
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b. The percent change in the Consumer Price Index for all
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urban consumers, U.S. City Average, all items 1967=100, or
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successor reports for the preceding calendar year as initially
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reported by the United States Department of Labor, Bureau of
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Labor Statistics.
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(2) No assessment shall exceed just value.
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(3) After any change of ownership, as provided by general
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law, homestead property shall be assessed at just value as of
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January 1 of the following year, unless the provisions of
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paragraph (8) apply. Thereafter, the homestead shall be assessed
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as provided in this subsection.
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(4) New homestead property shall be assessed at just value
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as of January 1st of the year following the establishment of the
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homestead, unless the provisions of paragraph (8) apply. That
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assessment shall only change as provided in this subsection.
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(5) Changes, additions, reductions, or improvements to
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homestead property shall be assessed as provided for by general
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law; provided, however, after the adjustment for any change,
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addition, reduction, or improvement, the property shall be
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assessed as provided in this subsection.
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(6) In the event of a termination of homestead status, the
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property shall be assessed as provided by general law.
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(7) The provisions of this amendment are severable. If any
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of the provisions of this amendment shall be held
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unconstitutional by any court of competent jurisdiction, the
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decision of such court shall not affect or impair any remaining
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provisions of this amendment.
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(8)a. A person who establishes a new homestead as of
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January 1 and who has received a homestead exemption pursuant to
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section 6 of this article as of January 1 of any of the three
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years immediately preceding the establishment of the new
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homestead is entitled to have the new homestead assessed at less
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than just value. The assessed value of the newly established
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homestead shall be determined as follows:
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1. If the just value of the new homestead is greater than
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or equal to the just value of the prior homestead as of January
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1 of the year in which the prior homestead was abandoned, the
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assessed value of the new homestead shall be the just value of
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the new homestead minus an amount equal to the lesser of
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$500,000 or the difference between the just value and the
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assessed value of the prior homestead as of January 1 of the
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year in which the prior homestead was abandoned. Thereafter, the
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homestead shall be assessed as provided in this subsection.
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2. If the just value of the new homestead is less than the
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just value of the prior homestead as of January 1 of the year in
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which the prior homestead was abandoned, the assessed value of
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the new homestead shall be equal to the just value of the new
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homestead divided by the just value of the prior homestead and
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multiplied by the assessed value of the prior homestead.
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However, if the difference between the just value of the new
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homestead and the assessed value of the new homestead calculated
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pursuant to this sub-subparagraph is greater than $500,000, the
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assessed value of the new homestead shall be increased so that
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the difference between the just value and the assessed value
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equals $500,000. Thereafter, the homestead shall be assessed as
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provided in this subsection.
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b. By general law and subject to conditions specified
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therein, the legislature shall provide for application of this
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paragraph to property owned by more than one person.
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(d)(e) The legislature may, by general law, for assessment
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purposes and subject to the provisions of this subsection, allow
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counties and municipalities to authorize by ordinance that
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historic property may be assessed solely on the basis of
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character or use. Such character or use assessment shall apply
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only to the jurisdiction adopting the ordinance. The
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requirements for eligible properties must be specified by
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general law.
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(e)(f) A county may, in the manner prescribed by general
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law, provide for a reduction in the assessed value of homestead
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property to the extent of any increase in the assessed value of
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that property which results from the construction or
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reconstruction of the property for the purpose of providing
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living quarters for one or more natural or adoptive grandparents
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or parents of the owner of the property or of the owner's spouse
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if at least one of the grandparents or parents for whom the
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living quarters are provided is 62 years of age or older. Such a
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reduction may not exceed the lesser of the following:
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(1) The increase in assessed value resulting from
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construction or reconstruction of the property.
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(2) Twenty percent (20%) of the total assessed value of
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the property as improved.
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(f)(g) For all levies other than school district levies,
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assessments of residential real property, as defined by general
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law, which contains nine units or fewer and which is not subject
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to the assessment limitations set forth in subsections (a)
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through (d) shall change only as provided in this subsection.
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(1) Assessments subject to this subsection shall be
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changed annually on the date of assessment provided by law; but
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those changes in assessments shall not exceed ten percent (10%)
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of the assessment for the prior year.
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(2) No assessment shall exceed just value.
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(3) After a change of ownership or control, as defined by
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general law, including any change of ownership of a legal entity
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that owns the property, such property shall be assessed at just
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value as of the next assessment date. Thereafter, such property
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shall be assessed as provided in this subsection.
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(4) Changes, additions, reductions, or improvements to
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such property shall be assessed as provided for by general law;
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however, after the adjustment for any change, addition,
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reduction, or improvement, the property shall be assessed as
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provided in this subsection.
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(g)(h) For all levies other than school district levies,
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assessments of real property that is not subject to the
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assessment limitations set forth in subsections (a), (b), (c),
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(a) through (d) and (f) (g) shall change only as provided in
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this subsection.
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(1) Assessments subject to this subsection shall be
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changed annually on the date of assessment provided by law; but
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those changes in assessments shall not exceed ten percent (10%)
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of the assessment for the prior year.
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(2) No assessment shall exceed just value.
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(3) The legislature must provide that such property shall
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be assessed at just value as of the next assessment date after a
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qualifying improvement, as defined by general law, is made to
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such property. Thereafter, such property shall be assessed as
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provided in this subsection.
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(4) The legislature may provide that such property shall
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be assessed at just value as of the next assessment date after a
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change of ownership or control, as defined by general law,
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including any change of ownership of the legal entity that owns
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the property. Thereafter, such property shall be assessed as
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provided in this subsection.
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(5) Changes, additions, reductions, or improvements to
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such property shall be assessed as provided for by general law;
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however, after the adjustment for any change, addition,
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reduction, or improvement, the property shall be assessed as
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provided in this subsection.
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(h)(i) The legislature, by general law and subject to
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conditions specified therein, may prohibit the consideration of
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the following in the determination of the assessed value of real
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property:
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(1) Any change or improvement to real property used for
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residential purposes made to improve the property's resistance
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to wind damage.
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(2) The installation of a solar or renewable energy source
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device.
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(i)(j)(1) The assessment of the following working
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waterfront properties shall be based upon the current use of the
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property:
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a. Land used predominantly for commercial fishing
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purposes.
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b. Land that is accessible to the public and used for
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vessel launches into waters that are navigable.
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c. Marinas and drystacks that are open to the public.
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d. Water-dependent marine manufacturing facilities,
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commercial fishing facilities, and marine vessel construction
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and repair facilities and their support activities.
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(2) The assessment benefit provided by this subsection is
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subject to conditions and limitations and reasonable definitions
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as specified by the legislature by general law.
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SECTION 9. Local taxes.—
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(a) Counties, school districts, and municipalities shall,
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and special districts may, be authorized by law to levy ad
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valorem taxes and may be authorized by general law to levy other
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taxes, for their respective purposes, except ad valorem taxes on
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intangible personal property and tangible personal property and
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taxes prohibited by this constitution.
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(b) Ad valorem taxes, exclusive of taxes levied for the
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payment of bonds and taxes levied for periods not longer than
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two years when authorized by vote of the electors who are the
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owners of freeholds therein not wholly exempt from taxation,
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shall not be levied in excess of the following millages upon the
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assessed value of real estate and tangible personal property:
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for all county purposes, ten mills; for all municipal purposes,
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ten mills; for all school purposes, ten mills; for water
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management purposes for the northwest portion of the state lying
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west of the line between ranges two and three east, 0.05 mill;
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for water management purposes for the remaining portions of the
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state, 1.0 mill; and for all other special districts a millage
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authorized by law approved by vote of the electors who are
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owners of freeholds therein not wholly exempt from taxation. A
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county furnishing municipal services may, to the extent
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authorized by law, levy additional taxes within the limits fixed
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for municipal purposes.
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ARTICLE XII
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SCHEDULE
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Prohibition on levying ad valorem taxes on tangible
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personal property by counties, school districts, and
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municipalities.—This section and the amendments to Sections 3,
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4, and 9 of Article VII, prohibiting the levying of ad valorem
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taxes on tangible personal property by counties, school
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districts, and municipalities, shall take effect January 1,
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2027.
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BE IT FURTHER RESOLVED that the following statement be
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placed on the ballot:
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CONSTITUTIONAL AMENDMENT
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ARTICLE VII, SECTIONS 3, 4, AND 9
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ARTICLE XII
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PROHIBITION ON LEVYING AD VALOREM TAXES ON TANGIBLE
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PERSONAL PROPERTY BY CERTAIN ENTITIES.—Proposing amendments to
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the State Constitution to prohibit the levying of ad valorem
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taxes on tangible personal property by counties, school
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districts, and municipalities. This amendment takes effect
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January 1, 2027.