September 30, 1997
Mr. Billy Buzzett, Executive Director
Constitution Revision Commission
Room B-11 Historic Old Capitol
Tallahassee, FL 32399-1300

Dear Mr. Buzzett:

Over the years, I have identified several Constitutional issues and problem areas which I am hereby suggesting for your consideration as Constitutional amendments. This proposal is too involved to have been presented at any of your public hearings, so I decided to submit it in writing.

I believe the current Taxpayer's Bill of Rights in the Constitution should be strengthened and expanded as per the attached. The current legislation adopted pursuant to Article I, Section 25 of the Constitution does not address safeguards involving ad valorem or non-ad valorem taxes.

Items one (1) through twelve (12) and sixteen (16) through nineteen (19) are current provisions in chapter 213.015, Florida Statutes. Following is a summarization of the other provisions in this proposal:

#13 There is a need to protect and preserve the separation of the Constitutional functions of assessing property for ad valorem taxes and collecting and refunding such taxes from the control of the county taxing authority which sets the tax millage rate. There are numerous potential statutory conflicts if such Constitutional officers are controlled by a major taxing authority. I am attaching a position paper on this issue as it relates to the position of Property Appraiser in Brevard County, prepared for presentation to the local Charter Study Commission (Exhibit A). Also, an attached petition, involving this issue, illustrates that 60 of 67 Property Appraisers showed their concern by signing it in 1995. (Exhibit B, Issue 2)

#14 This would avoid a proliferation of new county municipal service taxing districts and special non-ad valorem assessment charges being placed on tax bills for services taxpayers do not want.

#15 This would prevent a municipality which owns property in another county from removing such property from that county's tax rolls, as tax exempt property, when the municipality provides no direct public services to the residents of the county.

#20 Appeals of property valuations should not be decided by persons who are members of taxing authorities and utilize such revenues. Rather, a system should be developed, by general law, which provides for such decisions to be made by independent persons who are licensed or certified as having an understanding of property valuation. Some taxpayers scoff at having to appear before persons who levy taxes and spend tax revenues when they are told who decides their appeals. Also, there are instances of pure politics by these Boards as is evidenced by decisions in Levy county in 1994 which are the subject of lingering litigation to this day. (See also Exhibit B, Issue 1)

#21 There are types of tangible personal property which now must be identified and assessed which produce little tax revenue compared to the cost of administering and collecting such taxes. The Legislature should be permitted to identify and exempt such properties by general law.

#22 A property tax inequity exists between property owned by a city or a special district and similar property owned by a county. We now have city or special district owned ports or airports which pay taxes on leased property and county owned ports or airports which do not, even when the use of the property is clearly for a private, proprietary purpose.

#23 After Constitutional Amendment 10 passed in 1992, the Florida Department of Revenue was successful in having a rule adopted which requires a re-assessment of the property each year to recapture taxable value, even when there is no further change in the market value. This is based on a misreading of the intent of the original amendment which, having to address only a single subject, could not also have implemented this procedure. Such was not the intent of the amendment's drafter and would be precluded by this Constitutional provision.

#24 There are many different federal, state and local government regulations which are adopted placing extraordinary permitting constraints on various types of private property for environmental reasons. Once these designations are officially made, there is a chilling effect on the marketability of these properties as buyers will purchase other properties not having this stigma. Thus, there is no market for these properties. Consequently, property appraisers should be permitted to place these properties, or portions thereof, in a special classification and assess them at a nominal value until their extent of utility can be determined, after necessary environmental permits are obtained. It is arguable that current statutory provisions, in this regard, are sufficient to allow proper treatment for these properties.

A better approach would be to pattern the treatment of all environmental properties after the way in which the Constitution currently addresses recharge "blue belt" areas by valuing them based upon their character and use as vacant, unimproved properties in their natural condition. Currently, a costly and difficult parcel by parcel evaluation is necessary to determine if the highest and best use is even attainable and, if so, at what price. Sometimes the cost to obtain permits can exceed the value of the property. Also, one is never certain as to whether an environmental permit will be issued or upon what conditions.

This proposal is better suited to the mass appraisal process of valuing property uniformly for ad valorem tax purposes. The current situation requires too many individual studies and too many tax dollars spent trying to value certain properties fairly for all concerned. The current system places the property appraiser in the middle of conflict between those who regulate to protect the environment and those who wish to use their property for its highest and best use.

I would appreciate your forwarding these recommendations for the consideration of the Constitutional Revision Commission.

Sincerely,

Jim Ford