HB 1547

1
A bill to be entitled
2An act relating to determination of the just value of
3property; amending s. 193.011, F.S.; providing a
4methodology for determining the just value of property for
5ad valorem tax purposes; providing requirements of
6property appraisers; specifying criteria, requirements,
7and limitations for such determinations based on use;
8specifying requirements for determining the just value of
9affordable rental housing; requiring annual
10determinations; authorizing the Department of Revenue to
11adopt, amend, or repeal rules; amending ss. 193.114,
12193.461, 193.503, 193.625, and 195.027, F.S., to conform;
13providing application; providing a contingent effective
14date.
15
16Be It Enacted by the Legislature of the State of Florida:
17
18     Section 1.  Section 193.011, Florida Statutes, is amended
19to read:
20(Substantial rewording of section. See s.
21193.011, Florida Statutes, for current text.)
22     193.011  Determination of just value for purposes of
23assessment of ad valorem taxes.--
24     (1)  "Just value" means and includes, but is not limited
25to, market value, cash value, actual cash value, proper value,
26and value for the purposes of appraisal for ad valorem taxation.
27     (2)  With respect to each and every parcel of property
28subject to assessment, the property appraiser shall, in
29ascertaining just value, consider whenever possible the income
30capitalization approach to value, the cost approach to value,
31and the market data approach to value, as such approaches are
32determined by the Department of Revenue pursuant to s. 195.032.
33For differing types of categories of property, differing
34approaches may be appropriate. The choice of the particular
35valuation approach or approaches to be used should be made by
36the property appraiser upon a consideration of the category or
37nature of the property, the approaches to value for which the
38highest quality data is available, and the current use of the
39property.
40     (3)  Except as otherwise provided in subsection (4), in
41determining the just value of land and improvements thereon,
42factors to be taken into consideration are the proximity to
43navigation; to a highway; to a railroad; to a municipality or
44road; and any other circumstances that tend to affect its value,
45not what the property might bring at a forced sale but what the
46owner would be willing to accept and would reasonably expect to
47receive for the property if he or she were disposed to sell the
48property to another person able and willing to buy the property.
49     (4)(a)  In arriving at the just value of all property and
50improvements, the appraisal shall be made according to current
51use, regardless of location.
52     (b)  In arriving at the just value of any land used for
53agricultural purposes, the appraisal shall be made according to
54its use on January 1 of each year, regardless of its location.
55In making the appraisal, the property appraiser shall use soil
56types, productivity, and other criteria set forth in the
57standard measures of value established by the Department of
58Revenue pursuant to s. 195.032, which criteria shall include,
59but not be limited to, an income capitalization approach with a
60capitalization rate of not less than 10 percent and a moving
61average of not more than 10 years. However, for the year 2007,
62the moving average shall be not more than 5 years; for the year
632008, not more than 6 years; for the year 2009, not more than 7
64years; for the year 2010, not more than 8 years; and for the
65year 2011, not more than 9 years; and for the year 2007, the
66variation up or down from the previous year shall not exceed 20
67percent and thereafter, the variation, up or down, from a
68previous year shall not exceed 20 percent. The land shall be
69deemed to be used for agricultural purposes when the land is
70devoted to the commercial production of crops and other
71commercial products of the soil, including, but not limited to,
72the production of fruits and timber or the raising of livestock
73and poultry; however, enrollment in the federal Conservation
74Reserve Program or in any other United States Department of
75Agriculture conservation program shall not preclude land being
76deemed to be used for agricultural purposes solely on the ground
77that the land is not being devoted to the production of
78commercial products of the soil, and income derived from
79participation in the federal program may be used in combination
80with other relevant criteria to determine the just value of such
81land. The just value of aquaculture shall be determined in the
82same manner as that used to determine the just value of row
83crops.
84     (c)  In determining the just value based upon current use,
85no consideration shall be taken of the prospective value such
86property might have if the property were put to some other
87possible use.
88     (d)  In arriving at the just value of affordable rental
89housing, the assessor shall use the appraisal procedure set
90forth in the standard measures of value established by the
91Department of Revenue pursuant to s. 195.032. Such procedure
92shall prescribe that the appraisal shall be made according to
93actual net operating income attributable to the property,
94capitalized at a market value capitalization rate prescribed by
95the Department of Revenue that reflects the prevailing cost of
96capital for commercial real estate in the geographical market in
97which the affordable rental housing is located adjusted for the
98enhanced risk that any recorded land use regulation places on
99the net operating income from the property. The owner of
100affordable rental housing shall provide to the county tax
101assessor on or before April 1 of each year an accurate statement
102of the actual net operating income attributable to the property
103for the immediately preceding year prepared in accordance with
104generally acceptable accounting principles. As used in this
105paragraph:
106     1.  "Affordable rental housing" means residential housing
107consisting of one or more rental units, the construction or
108rental of which is subject to s. 42 of the Internal Revenue
109Code; the HOME Investment Partnership Program under the
110Cranston-Gonzalez National Affordable Housing Act, 42 U.S.C. s.
11112741 et seq.; the Federal Home Loan Banks Affordable Housing
112Program established pursuant to the Financial Institutions
113Reform, Recovery and Enforcement Act of 1989, Public Law 101-73;
114or any other federal, state, or similar program intended to
115provide affordable housing to persons of low or moderate income
116and the occupancy and maximum rental rates of such housing are
117restricted based on the income of the persons occupying such
118housing.
119     2.  "Land use regulation" means a restriction imposed by an
120extended low-income housing agreement or other covenant recorded
121in the applicable land records or by applicable law or
122regulation restricting the maximum income or residents or the
123maximum rental rate in the affordable rental housing.
124     (5)  The just value of each class of property shall be
125determined annually.
126     (6)  The Department of Revenue may adopt, amend, or repeal
127such rules or regulations in a manner consistent with the State
128Constitution and the laws of this state to implement the duties
129assigned to the department in this section.
130     Section 2.  Paragraph (b) of subsection (2) and paragraph
131(b) of subsection (3) of section 193.114, Florida Statutes, are
132amended to read:
133     193.114  Preparation of assessment rolls.--
134     (2)  The department shall promulgate regulations and forms
135for the preparation of the real property assessment roll to
136reflect:
137     (b)  The just value (pursuant to using the factors set out
138in s. 193.011) of all property.
139     (3)  The department shall promulgate regulations and forms
140for the preparation of the tangible personal property roll to
141reflect:
142     (b)  The just value (pursuant to using the factors set out
143in s. 193.011) of all such property subject to taxation.
144     Section 3.  Subsection (2) of section 193.461, Florida
145Statutes, is amended to read:
146     193.461  Agricultural lands; classification and assessment;
147mandated eradication or quarantine program.--
148     (2)  Any landowner whose land is denied agricultural
149classification by the property appraiser may appeal to the value
150adjustment board. The property appraiser shall notify the
151landowner in writing of the denial of agricultural
152classification on or before July 1 of the year for which the
153application was filed. The notification shall advise the
154landowner of his or her right to appeal to the value adjustment
155board and of the filing deadline. The board may also review all
156lands classified by the property appraiser upon its own motion.
157The property appraiser shall have available at his or her office
158a list by ownership of all applications received showing the
159acreage, the just full valuation under s. 193.011, the valuation
160of the land under the provisions of this section, and whether or
161not the classification requested was granted.
162     Section 4.  Subsection (7) of section 193.503, Florida
163Statutes, is amended to read:
164     193.503  Classification and assessment of historic property
165used for commercial or certain nonprofit purposes.--
166     (7)  Any property owner who is denied classification under
167this section may appeal to the value adjustment board. The
168property appraiser shall notify the property owner in writing of
169the denial of such classification on or before July 1 of the
170year for which the application was filed. The notification shall
171advise the property owner of his or her right to appeal to the
172value adjustment board and of the filing deadline. The board may
173also review all property classified by the property appraiser
174upon its own motion. The property appraiser shall have available
175at his or her office a list by ownership of all applications
176received showing the just full valuation under s. 193.011, the
177valuation of the property under the provisions of this section,
178and whether or not the classification requested was granted.
179     Section 5.  Subsection (2) of section 193.625, Florida
180Statutes, is amended to read:
181     193.625  High-water recharge lands; classification and
182assessment.--
183     (2)  Any landowner whose land is within a county that has a
184high-water recharge protection tax assessment program and whose
185land is denied high-water recharge classification by the
186property appraiser may appeal to the value adjustment board. The
187property appraiser shall notify the landowner in writing of the
188denial of high-water recharge classification on or before July 1
189of the year for which the application was filed. The
190notification must advise the landowner of a right to appeal to
191the value adjustment board and of the filing deadline. The board
192may also review all lands classified by the property appraiser
193upon its own motion. The property appraiser shall have available
194at her or his office a list by ownership of all applications
195received showing the acreage, the just full valuation under s.
196193.011, the valuation of the land under the provisions of this
197section, and whether or not the classification requested was
198granted.
199     Section 6.  Paragraph (b) of subsection (4) of section
200195.027, Florida Statutes, is amended to read:
201     195.027  Rules and regulations.--
202     (4)
203     (b)  For purposes of this subsection, a class of property
204shall include only those items which are substantially similar
205in function and use. Nothing in this chapter shall authorize the
206department to prescribe a return requiring information other
207than that contained in this subsection; nor shall the department
208issue or promulgate any rule or regulation directing the
209assessment of property by the consideration of factors other
210than as provided those enumerated in s. 193.011.
211     Section 7.  This act shall take effect on the effective
212date of the amendment to the State Constitution proposed in
213House Joint Resolution 1545, which authorizes the classification
214and assessment of any real property based on character or use,
215if approved by the electors of this state at the 2006 general
216election, and, if approved, shall apply to classifications and
217assessments of property beginning in the year in which that
218amendment to the State Constitution takes effect.


CODING: Words stricken are deletions; words underlined are additions.