Mll lQ1Tli Mrnv AI M TLJC QTATI MF P1 filA ARTIr-1 1F VII
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(a) NATURAL PERSONS. No tax upon estates or
inheritances or upon the income of natural persons who
are residents or citizens of the state shall be levied by
the state, or under its authority, in excess of the aggre-
gate of amounts which may be allowed to be credited
upon or deducted from any similar tax levied by the Unit-
ed States or any state.
(b) OTHERS. No tax upon the income of residents
and citizens other than natural persons shall be levied
by the state, or under its authority, in excess of 5% of
net income, as defined by law, or at such greater rate
as is authorized by a three-fifths (3/) vote of the member-
ship of each house of the legislature or as will provide
for the state the maximum amount which may be al-
lowed to be credited against income taxes levied by the
United States and other states. There shall be exempt
from taxation not less than five thousand dollars ($5,000)
of the excess of net income subject to tax over the maxi-
mum amount allowed to be credited against income tax-
es levied by the United States and other states.
(c) EFFECTIVE DATE. This section shall become
effective immediately upon approval by the electors of
Hibty.-Am HJ R. 7-8. 1971. oped 1971
SECTION 6. Homestead exemptions.-
(a) Every person who has the legal or equitable title
to real estate and maintains thereon the permanent resi-
dence of the owner, or another legally or naturally de-
pendent upon the owner, shall be exempt from taxation
thereon, except assessments for special benefits, up to
the assessed valuation of five thousand dollars, upon es-
tablishment of right thereto in the manner prescribed by
law. The real estate may be held by legal or equitable
title, by the entireties, jointly, in common, as a condomin-
ium, or indirectly by stock ownership or membership
representing the owner's or member's proprietary inter-
est in a corporation owning a fee or a leasehold initially
in excess of ninety-eight years.
(b) Not more than one exemption shall be allowed
any individual or family unit or with respect to any resi-
dential unit. No exemption shall exceed the value of the
real estate assessable to the owner or, in case of owner-
ship through stock or membership in a corporation, the
value of the proportion which his interest in the corpora-
tion bears to the assessed value of the property.
(c) By general law and subject to conditions speci-
fied therein, the exemption shall be increased to a total
of twenty-five thousand dollars of the assessed value of
the real estate for each school district levy. By general
law and subject to conditions specified therein, the ex-
emption for all other levies may be increased up to an
amount not exceeding ten thousand dollars of the as-
sessed value of the real estate if the owner has attained
age sixty-five or is totally and permanently disabled and
if the owner is not entitled to the exemption provided in
(d) By general law and subject to conditions speci-
fied therein, the exemption shall be increased to a total
of the following amounts of assessed value of real estate
for each levy other than those of school districts: fifteen
thousand dollars with respect to 1980 assessments;
twenty thousand dollars with respect to 1981 assess-
ments; twenty-five thousand dollars with respect to as-
sessments for 1982 and each year thereafter. However,
such increase shall not apply with respect to any as-
sessment roll until such roll is first determined to be in
compliance with the provisions of section 4 by a state
agency designated by general law This subsection shall
stand repealed on the effective date of any amendment
to section 4 which provides for the assessment of home-
stead property at a specified percentage of its just val-
(e) By general law and subject to conditions speci-
fied therein, the Legislature may provide to renters, who
are permanent residents, ad valorem tax relief on all ad
valorem tax levies. Such ad valorem tax relief shall be in
the form and amount established by general law.
NImeO.-Am SJ R 1.1979. adopd 1980. Am SJ R. 4-E. 1980. dopod
SECTION 7. Allocation of parl-mutuel taxes.-
Taxes upon the operation of pari-mutuel pools may be
preempted to the state or allocated in whole or in part
to the counties. When allocated to the counties, the dis-
tribution shall be in equal amounts to the several coun-
SECTION 8. Aid to local governments.-State
funds may be appropriated to the several counties,
school districts, municipalities or special districts upon
such conditions as may be provided by general law.
These conditions may include the use of relative ad va-
lorem assessment levels determined by a state agency
designated by general law.
HMiMy.-Am S JR 4-E. 19O opted 1980
SECTION 9. Local taxes.-
(a) Counties, school districts, and municipalities
shall, and special districts may, be authorized by law to
levy ad valorem taxes and may be authorized by general
law to levy other taxes, for their respective purposes, ex-
cept ad valorem taxes on intangible personal property
and taxes prohibited by this constitution.
(b) Ad valorem taxes, exclusive of taxes levied for
the payment of bonds and taxes levied for periods not
longer than two years when authorized by vote of the
electors who are the owners of freeholds therein not
wholly exempt from taxation, shall not be levied in ex-
cess of the following milages upon the assessed value
of real estate and tangible personal property: for all
county purposes, ten mills; for all municipal purposes,
ten mills; for all school purposes, ten mills; for water
management purposes for the northwest portion of the
state lying west of the line between ranges two and
three east, 0.05 mill; for water management purposes for
the remaining portions of the state, 1.0 mill, and for all
other special districts a millage authorized by law ap-
proved by vote of the electors who are owners of free-
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ABRTKI F VII
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FINANCE AND TAXATION
1. Taxation; appropriations; state expenses.
2. Taxes; rate.
3. Taxes; exemptions.
4. Taxation; assessments.
5. Estate, inheritance and income taxes.
6. Homestead exemptions.
7. Allocation of pari-mutuel taxes.
8. Aid to local governments.
9. Local taxes.
10. Pledging credit.
11. State bonds; revenue bonds.
12. Local bonds.
13. Relief from illegal taxes.
14. Bonds for pollution control and abatement and oth-
er water facilities.
15. Revenue bonds for scholarship loans.
16. Bonds for housing and related facilities.
SECTION 1. Taxation; appropriations; state ex-
(a) No tax shall be levied except in pursuance of law.
No state ad valorem taxes shall be levied upon real es-
tate or tangible personal property. All other forms of tax-
ation shall be preempted to the state except as provided
by general law.
(b) Motor vehicles, boats, airplanes, trailers, trailer
coaches and mobile homes, as defined by law, shall be
subject to a license tax for their operation In the amounts
and for the purposes prescribed by law, but shall not be
subject to ad valorem taxes.
(c) No money shall be drawn from the treasury ex-
cept in pursuance of appropriation made by law.
(d) Provision shall be made by law for raising suffi-
cient revenue to defray the expenses of the state for
each fiscal period.
SECTION 2. Taxes; rate.-All ad valorem taxation
shall be at a uniform rate within each taxing unit, except
the taxes on intangible personal property may be at dif-
ferent rates but shall never exceed two mills on the dol-
lar of assessed value; provided, as to any obligations se-
cured by mortgage, deed of trust, or other lien on real
estate wherever located, an intangible tax of not more
than two mills on the dollar may be levied by law to be
in lieu of al other intangible assessments on such obli-
SECTION 3 Taxes; exemptions.-
(a) All property owned by a municipality and used
exclusively by it for municipal or public purposes shall
be exempt from taxation. A municipality, owning proper-
ty outside the municipality, may be required by general
law to make payment to the taxing unit in which the
property is located. Such portions of property as are
used predominantly for educational. literary, scientific,
religious or charitable purposes may be exempted by
general law from taxation.
(b) There shall be exempt from taxation, cumulative-
ly, to every head of a family residing in this state, house-
hold goods and personal effects to the value fixed by
general law, not less than one thousand dollars, and to
every widow or person who is blind or totally and perma-
nently disabled, property to the value fixed by general
law not less than five hundred dollars.
(c) Any county or municipality may, for the purpose
of its respective tax levy and subject to the provisions
of this subsection and general law, grant community
and economic development ad valorem tax exemptions
to new businesses and expansions of existing business-
es, as defined by general law. Such an exemption may
be granted only by ordinance of the county or municipal-
ity, and only after the electors of the county or municipal-
ity voting on such question in a referendum authorize
the county or municipality to adopt such ordinances. An
exemption so granted shall Ipply to improvements to
real property made by or for the use of a new business
and improvements to real property related to the expan-
sion of an existing business and sh also apply to tangi-
ble personal property of such new business and tangi-
ble personal property related to the expansion of an ex-
isting business. The amount or limits of the amount of
such exemption shall be specified by general law. The
period of time for which such exemption maybe granted
to a new business or expansion of an existing business
shall be determined by general law. The authority to
grant such exemption shell expire ten years from the
date of approval by the electors of the county or munici-
pality, and may be renewable by referendum as provid-
ed by general law.
'(d) By general law and subject to conditions speci-
fied therein, there may be granted an ad valorem tax ex-
emption to a renewable energy source device and to
real property on which such device la installed and oper-
ated, to the value fixed by general law not to exceed the
original cost of the device, and for the period of time
fixed by general law not to exceed ten years.
MIlrM.--AMn S.J R A I.TE, TO. Sdpt 1M0.
Its.--l admectnongny, o ,~an (j) by S, 154. 19M0. s-
dMgne im ecors in o era to en wlacion (c) cmon-
tlYd inSJR E. 1900
c.--s 1 AM. XI Sh1A e
SECTION 4. Taxation; easese enit.-By general law
regulations shall be prescribed which shaH secure a just
valuation of all property for ad valorem taxation, provid-
(a) Agricultural land or land used exclusively for
non-commercial recreational purposes may be classified
by general law and assessed solely on the basis of char-
acter or use.
(b) Pursuant to general law tangible personal prop-
erty held for sale as stock in trade and livestock may be
valued for taxation at a specified percentage of its value,
may be classified for lax purposes, or may be exempted
mHIty.-Am SJR 12 E 19O0 adoped 19I0
SECTION 5 Estate, inheritance and income taxes.-
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