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.
   23  Be It Proposed by the Constitution Revision Commission of
   24  Florida:
   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.