Zingale v. Powell

• Citation: 885 So.2d 277
• Decision Date: 15 September 2004
• Docket Number: No. SC03-1270.,SC03-1270.
• Parties: James A. ZINGALE, Petitioner, v. Robert O. POWELL, et al., Respondents.
• Court: United States State Supreme Court of Florida

885 So.2d 277

James A. ZINGALE, Petitioner,
v.
Robert O. POWELL, et al., Respondents

No. SC03-1270.

Supreme Court of Florida.

September 15, 2004.

Rehearing Denied October 21, 2004.

885 So.2d 279

Charles J. Crist, Jr., Attorney General, Mark T. Aliff, Assistant Attorney General, Christopher M. Kise, Solicitor General, and Louis F. Hubener, Chief Deputy Solicitor General, Tallahassee, FL, for Petitioner

Harry S. Raleigh, Jr. of Dobbins, Meeks, Raleigh and Dover, LLP, Fort Lauderdale, FL, for Respondent.

Sherri L. Johnson and John C. Dent, Jr. of Dent and Associates, Sarasota, FL, on behalf of Ed Crapo, as Property Appraiser of Alachua County, FL, Ervin Higgs, as Property Appraiser of Monroe County, FL, Ken Wilkinson, as Property Appraiser of Lee County, FL, and Timothy "Pete" Smith, as Property Appraiser of Okaloosa County, FL; Robert A. Ginsburg, Miami-Dad County Attorney and Melinda S. Thornton, Assistant County Attorney, Miami, FL on behalf of Miami-Dade County Property Appraiser; Larry E. Levy and Loren E. Levy, of the Levy Law Firm, Tallahassee, FL, on behalf of Property Appraisers' Association of Florida, Inc.; Eddie Stephens of Christiansen and Jacknin, West Palm Beach, FL, on behalf of Gary R. Nikolits, Palm Beach County Property Appraiser; and Gaylord A. Wood, Jr., B. Jordan Stuart and J. Christopher Woolsey of Wood and Stuart, P.A., New Smyrna Beach, Florida on behalf of Morgan Gilbreath, as Volusia County Property Appraiser, H.W. "Bill" Suber, as Seminole County Property Appraiser, Sharon Outland, as St. Johns County Property Appraiser and Alvin Mazourek, as Hernando County Property Appraiser, Amici Curiae for Petitioner.

Arthur I. Jacobs and Lisa G. Satcher of Jacobs and Associates, P.A., Fernandina Beach, FL, on behalf of Stephen M. Klein, et al., Amicus Curiae for Respondent.

PARIENTE, C.J.

In this case, we construe article VII, section 4(c) of the Florida Constitution, known as the "Save Our Homes" amendment, which limits the annual change in property tax assessments on homestead exempt property to three percent of the previous assessment or the change in the Consumer Price Index, whichever is less. We must decide whether a homeowner qualifies for the provision's limit on increases in property tax assessments immediately upon meeting the ownership and residency requirements for a homestead exemption, or instead only upon being granted the homestead exemption. We conclude that the cap is tied to the grant of a homestead exemption, and therefore quash the decision below, in which the Fourth District Court of Appeal reached a contrary conclusion. See Powell v. Markham, 847 So.2d 1105, 1106 (Fla. 4th DCA 2003).¹

I. FACTS AND PROCEDURAL HISTORY

Robert and Ann Powell purchased a home in Fort Lauderdale in 1990. They

885 So.2d 280

have continuously used the home as their primary residence since its purchase, but did not apply for a homestead exemption until September 2001, after the Broward County Property Appraiser notified them of an increase of almost $40,000 in their ad valorem property taxes. The steep rise in the Powells' property taxes resulted from a correspondingly large increase in the assessed value of their home, from $2.3 million to almost $3.9 million. In addition to filing for a homestead exemption in 2001, the Powells also sought to have the Save Our Homes cap applied to limit the increase in their assessment from 2000 to 2001. Their homestead exemption application was approved for 2001, but the property appraiser did not reduce the 2001 assessment to the limits of the Save Our Homes cap for that year. The Powells subsequently filed suit to challenge Broward County's refusal to apply the Save Our Homes cap to the increase in the assessed value of their home from 2000 to 2001.² The trial court granted judgment on the pleadings in favor of the defendants. The trial court concluded that "[b]ecause the Powells' property did not `receive' the Homestead Exemption until 2001, that is their base year, one year after which commences their entitlement to the assessment limitations of the Constitution." The Powells appealed

The Fourth District reversed the trial court order, concluding that the cap applied to homeowners who qualified for the exemption, not just to those who applied for it. Therefore, the Fourth District held that the cap applied to the increase in the assessed value of the Powells' home from 2000 to 2001. See Powell, 847 So.2d at 1106-07. In dissent, Judge Stone concluded that because the Powells had not timely applied for a homestead exemption for 2000, they were not entitled to application of the cap on increases in value based on an assessment for 2000. See id. at 1107 (Stone, J., dissenting). Zingale, Executive Director of the State Department of Revenue, seeks review of the Fourth District's decision.

II. ANALYSIS

Like the Fourth District before us, we must determine the meaning of the language in article VII, section 4(c) of the Florida Constitution. This provision took its place in the Florida Constitution after the voters of this State approved a citizens' initiative on November 3, 1992.³ Although we take into consideration the district court's analysis on the issue, constitutional interpretation, like statutory interpretation, is performed de novo. Cf. BellSouth Telecomm., Inc. v. Meeks, 863 So.2d 287, 289 (Fla.2003) ("Statutory interpretation is a question of law subject to de novo review.")

Article VII, section 4(c) provides:

(c) All persons entitled to a homestead exemption under Section 6 of this Article shall have their homestead assessed at just value as of January 1 of the year following the effective date of this

885 So.2d 281

amendment. This assessment shall change only as provided herein.

(1) Assessments subject to this provision shall be changed annually on January 1st of each year; but those changes in assessments shall not exceed the lower of the following:

a. Three percent (3%) of the assessment for the prior year.

b. The percent change in the Consumer Price Index for all urban consumers, U.S. City Average, all items 1967=100, or successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics.

(2) No assessment shall exceed just value.

(3) After any change of ownership, as provided by general law, homestead property shall be assessed at just value as of January 1 of the following year. Thereafter, the homestead shall be assessed as provided herein.

(4) New homestead property shall be assessed at just value as of January 1st of the year following the establishment of the homestead. That assessment shall only change as provided herein.

(5) Changes, additions, reductions, or improvements to homestead property shall be assessed as provided for by general law; provided, however, after the adjustment for any change, addition, reduction, or improvement, the property shall be assessed as provided herein.

(6) In the event of a termination of homestead status, the property shall be assessed as provided by general law.

(7) The provisions of this amendment are severable. If any of the provisions of this amendment shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any remaining provisions of this amendment.

Article VII, section 6, which is referred to in subsection 4(c), provides in pertinent part:

(a) Every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon, except assessments for special benefits, up to the assessed valuation of five thousand dollars, upon establishment of right thereto in the manner prescribed by law.[⁴]

Both constitutional provisions reduce the tax burden on homestead property. The...