Senate Bill sb2444c1
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Florida Senate - 2004 CS for SB 2444
By the Committee on Finance and Taxation; and Senator Margolis
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1 A bill to be entitled
2 An act relating to property tax; amending s.
3 194.011, F.S.; revising requirements for
4 petitioners and property appraisers with
5 respect to providing evidence lists and
6 documentation for proceedings of the value
7 adjustment board; amending s. 194.032, F.S.;
8 requiring that a petitioner be notified earlier
9 of a scheduled appearance before the value
10 adjustment board; amending s. 195.062, F.S.;
11 authorizing the Department of Revenue to
12 provide additional information in its update of
13 the manual of instructions for property
14 appraisers and other officials; repealing s.
15 373.516, F.S., relating to the assessment of
16 rights-of-way of railroads and other public
17 service corporations; creating s. 689.261,
18 F.S.; requiring a seller to give notice to the
19 prospective purchaser of homestead property
20 concerning ad valorem taxes on the property;
21 specifying the form of notice; creating s.
22 193.017, F.S.; providing for assessment of
23 property used for affordable housing and
24 subject to a low-income housing tax credit;
25 amending s. 194.181, F.S.; authorizing a person
26 other than the taxpayer to contest the
27 assessment of any tax; designating the tax
28 collector as the defendant with respect to
29 questions relating to applications for tax
30 deeds; amending s. 197.502, F.S.; providing for
31 the escheatment of lands available for taxes;
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1 defining the term "contiguous" for purposes of
2 ch. 197, F.S.; providing that submerged
3 sovereignty lands are not contiguous for
4 purposes of certain notice requirements;
5 requiring that a search of official records for
6 purposes of obtaining a tax deed be made by a
7 direct and inverse search; authorizing the tax
8 collector to contract for higher limits of
9 liability than otherwise provided; amending s.
10 193.501, F.S.; clarifying a prohibition on the
11 restriction of the normal use and maintenance
12 of land that is subject to conservation
13 restrictions; amending s. 1011.62, F.S.;
14 prescribing the method by which the Department
15 of Revenue is required to calculate the
16 assessment level for purposes of equalizing the
17 required local effort to fund the operation of
18 schools; specifying that the provisions of the
19 act apply to the assessment level for 2004 and
20 after; ratifying any certification made under
21 prior provisions of law; providing an effective
22 date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Subsection (4) of section 194.011, Florida
27 Statutes, is amended to read:
28 194.011 Assessment notice; objections to
29 assessments.--
30 (4)(a) At least 15 10 days before the hearing, the
31 petitioner shall provide to the property appraiser a list of
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1 evidence to be presented at the hearing, together with copies
2 of all documentation to be considered by the value adjustment
3 board and a summary of evidence to be presented by witnesses.
4 (b) No later than 7 5 days before the hearing, if
5 after the petitioner has provided provides the information
6 required under paragraph (a), and if requested in writing by
7 the petitioner, the property appraiser shall provide to the
8 petitioner a list of evidence to be presented at the hearing,
9 together with copies of all documentation to be considered by
10 the value adjustment board and a summary of evidence to be
11 presented by witnesses. The evidence list must contain the
12 property record card if provided by the clerk. Failure of the
13 property appraiser to timely comply with the requirements of
14 this paragraph shall result in a rescheduling of the hearing.
15 Section 2. Subsection (2) of section 194.032, Florida
16 Statutes, is amended to read:
17 194.032 Hearing purposes; timetable.--
18 (2) The clerk of the governing body of the county
19 shall prepare a schedule of appearances before the board based
20 on petitions timely filed with him or her. The clerk shall
21 notify each petitioner of the scheduled time of his or her
22 appearance no less than 25 20 calendar days prior to the day
23 of such scheduled appearance. Upon receipt of this
24 notification, the petitioner shall have the right to
25 reschedule the hearing a single time by submitting to the
26 clerk of the governing body of the county a written request to
27 reschedule, no less than 5 calendar days before the day of the
28 originally scheduled hearing. A copy of the property record
29 card containing relevant information used in computing the
30 taxpayer's current assessment shall be included with such
31 notice, if said card was requested by the taxpayer. Such
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1 request shall be made by checking an appropriate box on the
2 petition form. No petitioner shall be required to wait for
3 more than 4 hours from the scheduled time; and, if his or her
4 petition is not heard in that time, the petitioner may, at his
5 or her option, report to the chairperson of the meeting that
6 he or she intends to leave; and, if he or she is not heard
7 immediately, the petitioner's administrative remedies will be
8 deemed to be exhausted, and he or she may seek further relief
9 as he or she deems appropriate. Failure on three occasions
10 with respect to any single tax year to convene at the
11 scheduled time of meetings of the board shall constitute
12 grounds for removal from office by the Governor for neglect of
13 duties.
14 Section 3. Subsection (1) of section 195.062, Florida
15 Statutes, is amended to read:
16 195.062 Manual of instructions.--
17 (1) The department shall prepare and maintain a
18 current manual of instructions for property appraisers and
19 other officials connected with the administration of property
20 taxes. This manual shall contain all:
21 (a) Rules and regulations.
22 (b) Standard measures of value.
23 (c) Forms and instructions relating to the use of
24 forms and maps.
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26 Consistent with s. 195.032, the standard measures of value
27 shall be adopted in general conformity with the procedures set
28 forth in s. 120.54, but shall not have the force or effect of
29 such rules and shall be used only to assist tax officers in
30 the assessment of property as provided by s. 195.002.
31 Guidelines may be updated annually to incorporate new market
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1 data, which may be in tabular form, technical changes, changes
2 indicated by established decisions of the Supreme Court, and,
3 if a summary of justification is set forth in the notice
4 required under s. 120.54, other changes relevant to
5 appropriate assessment practices or standard measurement of
6 value. Such new data may be incorporated into the guidelines
7 on the approval of the executive director if after notice in
8 substantial conformity with s. 120.54 there is no objection
9 filed with the department within 45 days, and the procedures
10 set forth in s. 120.54 do not apply.
11 Section 4. Section 373.516, Florida Statutes, is
12 repealed.
13 Section 5. Section 689.261, Florida Statutes, is
14 created to read:
15 689.261 Sale of residential property; disclosure of ad
16 valorem taxes to prospective purchaser.--
17 (1) A prospective purchaser of residential property
18 must be presented a disclosure summary at or before execution
19 of the contract for sale. Unless a substantially similar
20 disclosure summary is included in the contract for sale, a
21 separate disclosure summary must be attached to the contract
22 for sale. The disclosure summary, whether separate or included
23 in the contract, must be in a form substantially similar to
24 the following:
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26 PROPERTY TAX
27 DISCLOSURE SUMMARY
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29 BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT PROPERTY TAXES
30 AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE
31 OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE
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1 OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS
2 OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF
3 YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE
4 COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION.
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6 (2) Unless included in the contract, the disclosure
7 summary must be provided by the seller. If the disclosure
8 summary is not included in the contract for sale, the contract
9 for sale must refer to and incorporate by reference the
10 disclosure summary and include, in prominent language, a
11 statement that the potential purchaser should not execute the
12 contract until he or she has read the disclosure summary
13 required by this section.
14 Section 6. Section 193.017, Florida Statutes, is
15 created to read:
16 193.017 Low-income housing tax credit.--Property used
17 for affordable housing which has received a low-income housing
18 tax credit from the Florida Housing Finance Corporation, as
19 authorized by s. 420.5099, shall be assessed under s. 193.011
20 and, consistent with s. 420.5099(5) and (6), pursuant to this
21 section.
22 (1) The tax credits granted and the financing
23 generated by the tax credits may not be considered as income
24 to the property.
25 (2) The actual rental income from rent-restricted
26 units in such a property shall be recognized by the property
27 appraiser.
28 (3) Any costs paid for by tax credits and costs paid
29 for by additional financing proceeds received under chapter
30 420 may not be included in the valuation of the property.
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1 (4) If an extended low-income housing agreement is
2 filed in the official public records of the county in which
3 the property is located, the agreement, and any recorded
4 amendment or supplement thereto, shall be considered a
5 land-use regulation and a limitation on the highest and best
6 use of the property during the term of the agreement,
7 amendment, or supplement.
8 Section 7. Subsections (1) and (3) of section 194.181,
9 Florida Statutes, are amended to read:
10 194.181 Parties to a tax suit.--
11 (1) The plaintiff in any tax suit shall be:
12 (a) The taxpayer or other person contesting the
13 assessment of any tax, the payment of which he or she is
14 responsible for under a statute or a person who is responsible
15 for the entire tax payment pursuant to a contract and has the
16 written consent of the property owner, the law or the
17 condominium association, cooperative association, or
18 homeowners' association as defined in s. 723.075 which
19 operates the units subject to the assessment; or
20 (b) The property appraiser pursuant to s. 194.036.
21 (3) In any suit involving the collection of any tax on
22 property, as well as questions relating to tax certificates or
23 applications for tax deeds, the tax collector charged under
24 the law with collecting such tax shall be the defendant.
25 Section 8. Subsection (4), paragraph (a) of subsection
26 (5), and subsection (8) of section 197.502, Florida Statutes,
27 are amended to read:
28 197.502 Application for obtaining tax deed by holder
29 of tax sale certificate; fees.--
30 (4) The tax collector shall deliver to the clerk of
31 the circuit court a statement that payment has been made for
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1 all outstanding certificates or, if the certificate is held by
2 the county, that all appropriate fees have been deposited, and
3 stating that the following persons are to be notified prior to
4 the sale of the property:
5 (a) Any legal titleholder of record if the address of
6 the owner appears on the record of conveyance of the lands to
7 the owner. However, if the legal titleholder of record is the
8 same as the person to whom the property was assessed on the
9 tax roll for the year in which the property was last assessed,
10 then the notice may only be mailed to the address of the legal
11 titleholder as it appears on the latest assessment roll.
12 (b) Any lienholder of record who has recorded a lien
13 against the property described in the tax certificate if an
14 address appears on the recorded lien.
15 (c) Any mortgagee of record if an address appears on
16 the recorded mortgage.
17 (d) Any vendee of a recorded contract for deed if an
18 address appears on the recorded contract or, if the contract
19 is not recorded, any vendee who has applied to receive notice
20 pursuant to s. 197.344(1)(c).
21 (e) Any other lienholder who has applied to the tax
22 collector to receive notice if an address is supplied to the
23 collector by such lienholder.
24 (f) Any person to whom the property was assessed on
25 the tax roll for the year in which the property was last
26 assessed. The certificate shall be signed by the collector and
27 the collector's seal affixed. The collector may purchase a
28 reasonable bond for errors and omissions of his or her office
29 in making such certificate.
30 (g) Any lienholder of record who has recorded a lien
31 against a mobile home located on the property described in the
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1 tax certificate if an address appears on the recorded lien and
2 if the lien is recorded with the clerk of the circuit court in
3 the county where the mobile home is located.
4 (h) Any legal titleholder of record of property that
5 is contiguous to the property described in the tax
6 certificate, when the property described is either submerged
7 land or common elements of a subdivision, if the address of
8 the titleholder of contiguous property appears on the record
9 of conveyance of the land to that legal titleholder. However,
10 if the legal titleholder of property contiguous to the
11 property described in the tax certificate is the same as the
12 person to whom the property described in the tax certificate
13 was assessed on the tax roll for the year in which the
14 property was last assessed, the notice may be mailed only to
15 the address of the legal titleholder as it appears on the
16 latest assessment roll. As used in this chapter, the term
17 "contiguous" means touching, meeting, or joining at the
18 surface or border, other than at a corner or a single point,
19 and not separated by submerged lands. Submerged lands lying
20 below the ordinary high-water mark which are sovereignty lands
21 are not part of the upland contiguous property for purposes of
22 notification.
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24 The statement must be signed by the tax collector, with the
25 tax collector's seal affixed. The tax collector may purchase a
26 reasonable bond for errors and omissions of his or her office
27 in making such statement. The search of the official records
28 must be made by a direct and inverse search. "Direct" means
29 the index in straight and continuous alphabetic order by
30 grantor, and "inverse" means the index in straight and
31 continuous alphabetic order by grantee.
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1 (5)(a) The tax collector may contract with a title
2 company or an abstract company at a reasonable fee to provide
3 the minimum information required in subsection (4), consistent
4 with rules adopted by the department. If additional
5 information is required, the tax collector must make a written
6 request to the title or abstract company stating the
7 additional requirements. The tax collector may select any
8 title or abstract company, regardless of its location, as long
9 as the fee is reasonable, the minimum information is
10 submitted, and the title or abstract company is authorized to
11 do business in this state. The tax collector may advertise and
12 accept bids for the title or abstract company if he or she
13 considers it appropriate to do so.
14 1. The ownership and encumbrance report must be
15 printed or typed on stationery or other paper showing a
16 letterhead of the person, firm, or company that makes the
17 search, and the signature of the person who makes the search
18 or of an officer of the firm must be attached. The tax
19 collector is not liable for payment to the firm unless these
20 requirements are met.
21 2. The tax collector may not accept or pay for any
22 title search or abstract if no financial responsibility is
23 assumed for the search. However, reasonable restrictions as to
24 the liability or responsibility of the title or abstract
25 company are acceptable. Notwithstanding s. 627.7843(3), the
26 tax collector may contract for higher maximum liability
27 limits.
28 3. In order to establish uniform prices for ownership
29 and encumbrance reports within the county, the tax collector
30 shall ensure that the contract for ownership and encumbrance
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1 reports include all requests for title searches or abstracts
2 for a given period of time.
3 (8) Taxes shall not be extended against parcels listed
4 as lands available for taxes, but in each year the taxes that
5 would have been due shall be treated as omitted years and
6 added to the required minimum bid. Three years after from the
7 day the land was offered for public sale, the land shall
8 escheat to the county in which it is located, free and clear.
9 All tax certificates, accrued taxes, and liens of any nature
10 against the property shall be deemed canceled as a matter of
11 law and of no further legal force and effect, and the clerk
12 shall execute an escheatment a tax deed vesting title in the
13 board of county commissioners of the county in which the land
14 it is located.
15 Section 9. Subsection (1) of section 193.501, Florida
16 Statutes, is amended to read:
17 193.501 Assessment of lands subject to a conservation
18 easement, environmentally endangered lands, or lands used for
19 outdoor recreational or park purposes when land development
20 rights have been conveyed or conservation restrictions have
21 been covenanted.--
22 (1) The owner or owners in fee of any land subject to
23 a conservation easement as described in s. 704.06(1); land
24 qualified as environmentally endangered pursuant to paragraph
25 (6)(i) and so designated by formal resolution of the governing
26 board of the municipality or county within which such land is
27 located; land designated as conservation land in a
28 comprehensive plan adopted by the appropriate municipal or
29 county governing body; or any land which is utilized for
30 outdoor recreational or park purposes may, by appropriate
31 instrument, for a term of not less than 10 years:
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1 (a) Convey the development right of such land to the
2 governing board of any public agency in this state within
3 which the land is located, or to the Board of Trustees of the
4 Internal Improvement Trust Fund, or to a charitable
5 corporation or trust as described in s. 704.06(3); or
6 (b) Covenant with the governing board of any public
7 agency in this state within which the land is located, or with
8 the Board of Trustees of the Internal Improvement Trust Fund,
9 or with a charitable corporation or trust as described in s.
10 704.06(3), that such land be subject to one or more of the
11 conservation restrictions provided in s. 704.06(1) or not be
12 used by the owner for any purpose other than outdoor
13 recreational or park purposes. If land is covenanted and used
14 for an outdoor recreational purpose, the normal use and
15 maintenance of the land for that purpose, consistent with the
16 covenant, shall not be restricted.
17 Section 10. Paragraph (c) of subsection (4) of section
18 1011.62, Florida Statutes, is amended to read:
19 1011.62 Funds for operation of schools.--If the annual
20 allocation from the Florida Education Finance Program to each
21 district for operation of schools is not determined in the
22 annual appropriations act or the substantive bill implementing
23 the annual appropriations act, it shall be determined as
24 follows:
25 (4) COMPUTATION OF DISTRICT REQUIRED LOCAL
26 EFFORT.--The Legislature shall prescribe the aggregate
27 required local effort for all school districts collectively as
28 an item in the General Appropriations Act for each fiscal
29 year. The amount that each district shall provide annually
30 toward the cost of the Florida Education Finance Program for
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1 kindergarten through grade 12 programs shall be calculated as
2 follows:
3 (c) Equalization of required local effort.--
4 1. The Department of Revenue shall include with its
5 certifications provided pursuant to paragraph (a) its most
6 recent determination of the assessment level of the prior
7 year's assessment roll for each county and for the state as a
8 whole.
9 2. The Commissioner of Education shall adjust the
10 required local effort millage of each district for the current
11 year, computed pursuant to paragraph (a), as follows:
12 a. The equalization factor for the prior year's
13 assessment roll of each district shall be multiplied by 95
14 percent of the taxable value for school purposes shown on that
15 roll and by the prior year's required local-effort millage,
16 exclusive of any equalization adjustment made pursuant to this
17 paragraph. The dollar amount so computed shall be the
18 additional required local effort for equalization for the
19 current year.
20 b. Such equalization factor shall be computed as the
21 quotient of the prior year's assessment level of the state as
22 a whole divided by the prior year's assessment level of the
23 county, from which quotient shall be subtracted 1.
24 c. The dollar amount of additional required local
25 effort for equalization for each district shall be converted
26 to a millage rate, based on 95 percent of the current year's
27 taxable value for that district, and added to the required
28 local effort millage determined pursuant to paragraph (a).
29 3. Notwithstanding the limitations imposed pursuant to
30 s. 1011.71(1), the total required local-effort millage,
31 including additional required local effort for equalization,
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1 shall be an amount not to exceed 10 minus the maximum millage
2 allowed as nonvoted discretionary millage, exclusive of
3 millage authorized pursuant to s. 1011.71(2). Nothing herein
4 shall be construed to allow a millage in excess of that
5 authorized in s. 9, Art. VII of the State Constitution.
6 4. For the purposes of this chapter, the term
7 "assessment level" means the value-weighted mean assessment
8 ratio for the county or state as a whole, as determined
9 pursuant to s. 195.096, or as subsequently adjusted. However,
10 for those parcels studied pursuant to s. 195.096(3)(a)1. which
11 are receiving the assessment limitation set forth in s.
12 193.155, and for which the assessed value is less than the
13 just value, the department shall use the assessed value in the
14 numerator and the denominator of such assessment ratio. In the
15 event a court has adjudicated that the department failed to
16 establish an accurate estimate of an assessment level of a
17 county and recomputation resulting in an accurate estimate
18 based upon the evidence before the court was not possible,
19 that county shall be presumed to have an assessment level
20 equal to that of the state as a whole.
21 5. If, in the prior year, taxes were levied against an
22 interim assessment roll pursuant to s. 193.1145, the
23 assessment level and prior year's nonexempt assessed valuation
24 used for the purposes of this paragraph shall be those of the
25 interim assessment roll.
26 Section 11. The amendment made by this act to section
27 1011.62(4)(c)4., Florida Statutes, applies to the
28 certifications of the 2004 and later levels of assessment. It
29 is the intent of the Legislature that the use of just value
30 instead of assessed value for property assessed pursuant to
31 section 193.155, Florida Statutes, for the calculation of such
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1 levels for any certification made pursuant to section
2 1011.62(4)(c)4. or former section 236.081(4)(c)4., Florida
3 Statutes, prior to the 2004 tax roll is validated and
4 ratified.
5 Section 12. This act shall take effect January 1,
6 2005.
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8 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
9 SB 2444
10
11 The committee substitute:
12 Provides that the tax collector is the defendant in any suit
involving an application for tax deeds, and allows a person
13 other than the property owner to contest its assessment for
property tax purposes if that person is responsible for paying
14 the tax and has the written permission of the property owner;
15 Streamlines the process by which lands available for taxes
escheat to the county where they are located, provides that
16 submerged sovereignty lands are not considered contiguous
property under s. 197.502, F.S., and provides that the search
17 of public records required under that section shall be by
direct and inverse search. Also, the tax collector is allowed
18 to contract for higher limits of liability for title or
abstract companies that perform title searches or abstracts;
19
Provides that when land development rights have been
20 restricted or conservation restrictions have been covenanted
for land used for an outdoor recreation purpose, normal use
21 and maintenance of the land for that purpose shall not be
restricted; and
22
Directs the Department of Revenue to use the assessed value of
23 parcels subject to Save Our Homes in determining the level of
assessment for the purpose of equalizing required local effort
24 of school funding.
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