CS/SJR 532--Property tax limit/additional homestead exemption.

This joint resolution proposes an amendment to [section]4, Art. VII of the State Constitution, to provide that except for school district levies, the annual maximum assessment change on non-homestead residential real property is reduced from 10 percent to 5 percent of the assessment for the previous year. The measure further proposes an amendment to create subsection (f) in [section]6, Art. VII of the constitution, to provide that the Legislature, by general law, must provide an additional homestead exemption to a person or persons who establish the right to receive a regular homestead exemption within !year after purchasing the homestead property, and who have not owned a principal residence during the 8-year period prior to the purchase of the property. For married persons, neither spouse may have owned a principal residence during the preceding 8 years. The additional exemption is equal to 25 percent of the just value of the property on January 1 of the year in which the regular homestead exemption may first apply to assessment of the property but may not exceed $100,000. The additional exemption is reduced each subsequent year by an amount equal to 20 percent of the initial additional exemption, or by an amount that is equal to the difference between just value and assessed value, whichever is greater. The additional exemption may not apply after the fifth year in which it is granted, and only one additional exemption may apply to a single homestead property. The additional exemption applies to all levies, including school district levies. The joint resolution proposes to amend the schedule of implementation in Art. XII of the State Constitution to provide that if approved by voters, the revision to [section]4, Art. VII of the State Constitution will take effect January 1, 2011; and the revision to [section]6, Art. VII of the State Constitution will take effect January 1, 2011 and first apply to homestead property purchased by first-time homebuyers on or after January 1, 2010. If approved by 60 percent of persons voting in the November 2010 General Election, these provisions take effect January 1, 2011.