CRC - 2017 P 69
By Commissioner Sprowls
sprowlsc-00046-17 201769__
1 A proposal to amend
2 Section 9 of Article VII of the State Constitution to
3 prohibit certain special districts, except ones
4 created for water management purposes, from levying ad
5 valorem taxes after January 7, 2029, or 10 years after
6 the date of voter approval for such authority,
7 whichever is later; to grant districts authority to
8 levy ad valorem taxes beyond that date under certain
9 circumstances; to authorize the grant or renewal of
10 the authority by referendum for 10-year periods if
11 certain conditions are met; to require ballot
12 proposals to include specified language; to require
13 the Legislature to dissolve, merge, consolidate, or
14 provide for appropriate disposition of special
15 districts if the referendum fails; to authorize debt
16 secured by ad valorem taxes and incurred before
17 January 7, 2019, to be refinanced under certain
18 circumstances; and to prohibit special districts from
19 pledging ad valorem tax revenue to repay or
20 restructure debt incurred after a specified date under
21 certain circumstances.
22
23 Be It Proposed by the Constitution Revision Commission of
24 Florida:
25
26 Section 9 of Article VII of the State Constitution is
27 amended to read:
28 ARTICLE VII
29 FINANCE AND TAXATION
30 SECTION 9. Local taxes.—
31 (a) Counties, school districts, and municipalities shall,
32 and special districts may, be authorized by law to levy ad
33 valorem taxes and may be authorized by general law to levy other
34 taxes, for their respective purposes, except ad valorem taxes on
35 intangible personal property and taxes prohibited by this
36 constitution.
37 (b) Ad valorem taxes, exclusive of taxes levied for the
38 payment of bonds and taxes levied for periods not longer than
39 two years when authorized by vote of the electors who are the
40 owners of freeholds therein not wholly exempt from taxation,
41 shall not be levied in excess of the following millages upon the
42 assessed value of real estate and tangible personal property:
43 for all county purposes, ten mills; for all municipal purposes,
44 ten mills; for all school purposes, ten mills; for water
45 management purposes for the northwest portion of the state lying
46 west of the line between ranges two and three east, 0.05 mill;
47 for water management purposes for the remaining portions of the
48 state, 1.0 mill; and for all other special districts a millage
49 authorized by law approved by vote of the electors who are
50 owners of freeholds therein not wholly exempt from taxation. A
51 county furnishing municipal services may, to the extent
52 authorized by law, levy additional taxes within the limits fixed
53 for municipal purposes.
54 (c)(1)a. The authority of a special district to levy ad
55 valorem taxes shall expire the later of January 7, 2029, or ten
56 years after the date of approval of such authority by vote of
57 the electors who are the owners of freeholds therein not wholly
58 exempt from taxation.
59 b. Notwithstanding subparagraph a., if debt incurred by a
60 special district prior to January 7, 2019, matures later than
61 January 7, 2029, and repayment of the debt is secured by a
62 pledge of ad valorem tax revenues, the district’s authority to
63 levy ad valorem taxes shall expire on the final maturity date of
64 the debt. Such debt may be refinanced after January 7, 2019, but
65 the final maturity date of the debt may not be extended beyond
66 the date of the original debt.
67 c. A special district may not pledge revenue from its ad
68 valorem tax authority to repay debt incurred after January 7,
69 2019, if the pledge would require or allow debt service payments
70 to be made after the earlier of ten years after issuance of the
71 debt or the date of expiration of the district’s ad valorem tax
72 authority.
73 (2)a. A special district referendum to obtain initial
74 authority to levy ad valorem taxes or to renew an existing
75 authority to levy ad valorem taxes, must include in the ballot
76 proposal the public purpose for which the authority to levy ad
77 valorem taxes is sought; the number of years, which shall not
78 exceed ten years, for which the authority will be in effect; and
79 the millage limit.
80 b. In the general election held prior to the expiration
81 date provided in subparagraph (1)a. or (1)b., the electors who
82 are the owners of freeholds within the district not wholly
83 exempt from taxation may vote to renew the authority to levy ad
84 valorem taxes for a period not to exceed ten years. There is no
85 limit to the number of times the authority to levy ad valorem
86 taxes may be renewed under this subparagraph.
87 (3) The legislature shall provide by general or special law
88 for the dissolution, merger, consolidation, or other appropriate
89 disposition of each special district for which the authority to
90 levy ad valorem taxes has expired.
91 (4) This subsection does not apply to special districts
92 created by general law for water management purposes.