Florida Senate - 2021                             CS for SB 1186
       
       
        
       By the Committee on Community Affairs; and Senator Brandes
       
       
       
       
       
       578-02663-21                                          20211186c1
    1                        A bill to be entitled                      
    2         An act relating to property assessments for elevated
    3         properties; amending ss. 193.155 and 193.1554, F.S.;
    4         specifying that changes to elevate certain homestead
    5         and nonhomestead residential property, respectively,
    6         do not increase the assessed value of the property
    7         under certain circumstances; requiring property owners
    8         to provide certification for such property; defining
    9         the terms “voluntary elevation” and “voluntarily
   10         elevated”; prohibiting certain areas from being
   11         included in square footage calculation; making
   12         clarifying revisions; reenacting s. 193.1557, F.S.,
   13         relating to assessment of certain property damaged or
   14         destroyed by Hurricane Michael, to incorporate
   15         amendments made by this act to ss. 193.155 and
   16         193.1554, F.S., in references thereto; providing a
   17         contingent effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Subsection (4) of section 193.155, Florida
   22  Statutes, is amended to read:
   23         193.155 Homestead assessments.—Homestead property shall be
   24  assessed at just value as of January 1, 1994. Property receiving
   25  the homestead exemption after January 1, 1994, shall be assessed
   26  at just value as of January 1 of the year in which the property
   27  receives the exemption unless the provisions of subsection (8)
   28  apply.
   29         (4)(a) Except as provided in paragraph (b) and s. 193.624,
   30  changes, additions, or improvements to homestead property shall
   31  be assessed at just value as of the first January 1 after the
   32  changes, additions, or improvements are substantially completed.
   33         (b) Changes, additions, or improvements that replace all or
   34  a portion of homestead property damaged or destroyed by
   35  misfortune or calamity shall not increase the homestead
   36  property’s assessed value when the square footage of the
   37  homestead property as changed or improved does not exceed 110
   38  percent of the square footage of the homestead property before
   39  the damage, or destruction, or voluntary elevation of the
   40  homestead property if:
   41         1.The homestead property was damaged or destroyed by
   42  misfortune or calamity; or
   43         2.Before the voluntary elevation, the homestead property
   44  did not comply with the Federal Emergency Management Agency’s
   45  National Flood Insurance Program requirements and Florida
   46  Building Code elevation requirements and was elevated in
   47  compliance with such requirements. The property owner shall
   48  provide elevation certificates for both the original and the
   49  elevated homestead property. For purposes of this subsection,
   50  the term “voluntary elevation” or “voluntarily elevated” means
   51  the elevation of an existing nonconforming homestead property or
   52  the removal and rebuilding of a nonconforming homestead
   53  property. Conforming areas below an elevated structure
   54  designated only for parking, storage, or access may not be
   55  included in the 110 percent calculation unless the area exceeds
   56  110 percent of the square footage before the voluntary
   57  elevation.
   58  
   59  Additionally, the homestead property’s assessed value may shall
   60  not increase if the total square footage of the homestead
   61  property as changed, or improved, or elevated does not exceed
   62  1,500 square feet.
   63         (c) Changes, additions, or improvements that do not cause
   64  the total to exceed 110 percent of the total square footage of
   65  the homestead property before the qualifying damage, or
   66  destruction, or voluntary elevation or that do not cause the
   67  total to exceed 1,500 total square feet shall be reassessed as
   68  provided under subsection (1). The homestead property’s assessed
   69  value shall be increased by the just value of that portion of
   70  the changed or improved homestead property which is in excess of
   71  110 percent of the square footage of the homestead property
   72  before the qualifying damage, or destruction, or voluntary
   73  elevation or of that portion exceeding 1,500 square feet.
   74  Homestead property damaged, or destroyed, or voluntarily
   75  elevated by misfortune or calamity which, after being changed or
   76  improved, has a square footage of less than 100 percent of the
   77  homestead property’s total square footage before the qualifying
   78  damage, or destruction, or voluntary elevation shall be assessed
   79  pursuant to subsection (5). This subsection paragraph applies to
   80  changes, additions, or improvements commenced within 3 years
   81  after the January 1 following the qualifying damage, or
   82  destruction, or voluntary elevation of the homestead property.
   83         (d)(c) Changes, additions, or improvements that replace all
   84  or a portion of real property that was damaged, or destroyed, or
   85  voluntarily elevated by misfortune or calamity shall be assessed
   86  upon substantial completion as if such qualifying damage, or
   87  destruction, or voluntary elevation had not occurred and in
   88  accordance with paragraph (b) if the owner of such property:
   89         1. Was permanently residing on such property when the
   90  qualifying damage, or destruction, or voluntary elevation
   91  occurred;
   92         2. Was not entitled to receive homestead exemption on such
   93  property as of January 1 of that year; and
   94         3. Applies for and receives homestead exemption on such
   95  property the following year.
   96         (e)(d) Changes, additions, or improvements include
   97  improvements made to common areas or other improvements made to
   98  property other than to the homestead property by the owner or by
   99  an owner association, which improvements directly benefit the
  100  homestead property. Such changes, additions, or improvements
  101  shall be assessed at just value, and the just value shall be
  102  apportioned among the parcels benefiting from the improvement.
  103         Section 2. Subsection (6) of section 193.1554, Florida
  104  Statutes, is amended to read:
  105         193.1554 Assessment of nonhomestead residential property.—
  106         (6)(a) Except as provided in paragraph (b) and s. 193.624,
  107  changes, additions, or improvements to nonhomestead residential
  108  property shall be assessed at just value as of the first January
  109  1 after the changes, additions, or improvements are
  110  substantially completed.
  111         (b) Changes, additions, or improvements that replace all or
  112  a portion of nonhomestead residential property damaged or
  113  destroyed by misfortune or calamity shall not increase the
  114  property’s assessed value when the square footage of the
  115  property as changed or improved does not exceed 110 percent of
  116  the square footage of the property before the damage, or
  117  destruction, or voluntary elevation of the property if:
  118         1.The property was damaged or destroyed by misfortune or
  119  calamity; or
  120         2.Before the voluntary elevation, the property did not
  121  comply with the Federal Emergency Management Agency’s National
  122  Flood Insurance Program requirements and Florida Building Code
  123  elevation requirements and was elevated in compliance with such
  124  requirements. The property owner must provide elevation
  125  certificates for both the original and the elevated property.
  126  For purposes of this subsection, the term “voluntary elevation”
  127  or “voluntarily elevated” means the elevation of an existing
  128  nonconforming nonhomestead residential property or the removal
  129  and rebuilding of a nonconforming nonhomestead residential
  130  property. Conforming areas below an elevated structure
  131  designated only for parking, storage, or access may not be
  132  included in the 110 percent calculation unless the area exceeds
  133  110 percent of the square footage before the voluntary
  134  elevation.
  135  
  136  Additionally, the property’s assessed value may shall not
  137  increase if the total square footage of the property as changed,
  138  or improved, or elevated does not exceed 1,500 square feet.
  139         (c) Changes, additions, or improvements that do not cause
  140  the total to exceed 110 percent of the total square footage of
  141  the property before the qualifying damage, or destruction, or
  142  voluntary elevation or that do not cause the total to exceed
  143  1,500 total square feet shall be reassessed as provided under
  144  subsection (3). The property’s assessed value shall be increased
  145  by the just value of that portion of the changed or improved
  146  property which is in excess of 110 percent of the square footage
  147  of the property before the qualifying damage, or destruction, or
  148  voluntary elevation or of that portion exceeding 1,500 square
  149  feet. Property damaged, or destroyed, or voluntarily elevated by
  150  misfortune or calamity which, after being changed or improved,
  151  has a square footage of less than 100 percent of the property’s
  152  total square footage before the qualifying damage, or
  153  destruction, or voluntary elevation shall be assessed pursuant
  154  to subsection (8). This subsection paragraph applies to changes,
  155  additions, or improvements commenced within 3 years after the
  156  January 1 following the qualifying damage, or destruction, or
  157  voluntary elevation of the property.
  158         (d)(c) Changes, additions, or improvements include
  159  improvements made to common areas or other improvements made to
  160  property other than to the nonhomestead residential property by
  161  the owner or by an owner association, which improvements
  162  directly benefit the property. Such changes, additions, or
  163  improvements shall be assessed at just value, and the just value
  164  shall be apportioned among the parcels benefiting from the
  165  improvement.
  166         Section 3. For the purpose of incorporating the amendments
  167  made by this act to sections 193.155 and 193.1554, Florida
  168  Statutes, in references thereto, section 193.1557, Florida
  169  Statutes, is reenacted to read:
  170         193.1557 Assessment of certain property damaged or
  171  destroyed by Hurricane Michael.—For property damaged or
  172  destroyed by Hurricane Michael in 2018, s. 193.155(4)(b), s.
  173  193.1554(6)(b), or s. 193.1555(6)(b) applies to changes,
  174  additions, or improvements commenced within 5 years after
  175  January 1, 2019. This section applies to the 2019-2023 tax rolls
  176  and shall stand repealed on December 31, 2023.
  177         Section 4. This act shall take effect on the effective date
  178  of the amendment to the State Constitution proposed by SJR 1182
  179  or a similar joint resolution having substantially the same
  180  specific intent and purpose, if such amendment to the State
  181  Constitution is approved at the general election held in
  182  November 2022 or at an earlier special election specifically
  183  authorized by law for that purpose.