Revision 10: proposing solutions to the property tax structure and the right of citizens to contact local elected officials.

• Author: Barnett, Martha
• Position: Florida Constitution Revision Commission

Ballot Title: Local and Municipal Property Tax Exemptions and Citizen Access to Local Officials

Ballot Summary: Broadens tax exemption for governmental uses of municipal property; authorizes legislature to exempt certain municipal and special district property used for airport, seaport, or public purposes; permits local option tax exemption for property used for conservation purposes; permits local option tangible personal property tax exemption for attachments to mobile homes and certain residential rental furnishings; removes limitations on citizens' ability to communicate with local officials about matters which are the subject of public hearings.

Florida] is a democracy in which every parcel of property is expected to bear its due portion of the burden of government, unless exempted by the Legislature ...."(1)

The "unless exempted" clause of Justice Sundberg's statement has caused disagreement among the Florida courts and the Legislature for many years. This is particularly true when the property is owned by a governmental entity. It is further complicated when the governmental property is used by a private entity for profit making purposes. What use of governmental property is entitled to a tax exemption? Does the property lose its exemption if the government leases it to a private entity? Where does property owned by a special district fit into the equation? Which controls: ownership or use? Can counties and municipalities provide a property tax exemption for property used for conservation purposes or for the tangible personal property of persons who live in mobile homes? These are some of the questions that the Constitution Revision Commission (CRC) addressed in proposed Revision 10.(2)

Revision 10 is one of the more involved of the nine revisions proposed by the CRC. It encompasses several distinct constitutional provisions which will be discussed separately. Briefly, they are as follows:

* Broadens the existing ad valorem tax exemption for municipalities.

* Authorizes the legislature to exempt certain governmental property used by nongovernmental entities for airport, seaport, or public purposes.

* Permits local governments to exempt property used for conservation purposes.

* Permits local governments to exempt tangible personal property attached to mobile homes and certain residential rental housing.

* Removes barriers to citizens' ability to communicate with local officials about matters which are the subject of public hearings before their respective boards or commissions.

This article explains the current law and the reasons that the CRC has suggested the proposed revisions.

Broadening Tax Exemptions for Municipalities

The Florida Supreme Court has determined that the state and its political subdivisions are immune from taxation. Political subdivisions are, however, limited to counties and school boards. Municipalities, according to the Florida Supreme Court, are not political subdivisions of the state and do not enjoy the same immune status.(3) Moreover, the Court has determined that the Legislature does not have the authority to determine which governmental entities are political subdivisions.(4)

Property owned by the state or a political subdivision is "immune" from taxation regardless of its use. As a result, it is immune even if, for example, the property is leased to a private person for profit-making purposes. Municipal and special district property, on the other hand, is "exempt" from taxation, but only when such property is...