CS/CS/HB 261

1
A bill to be entitled
2An act relating to just valuation of property; amending s.
3193.011, F.S.; providing for consideration of zoning
4changes and permits in determining the highest and best
5use; revising the condition of property just valuation
6factor; including cost of removal of tangible personal
7property as a consideration in the net sale proceeds
8factor; requiring property appraisers to use only market
9rent in arriving at just value of certain income-producing
10properties; providing a definition; providing
11applicability; amending s. 193.016, F.S.; providing for
12consideration of value adjustment board decisions for all
13properties; creating s. 193.018, F.S.; authorizing owners
14of certain properties to enter into deed-restriction
15agreements with counties for certain purposes; requiring
16property appraisers to consider deed-restriction
17agreements in determining just value; providing for
18payment of back taxes plus interest if the deed-
19restriction agreement is terminated early; amending s.
20194.011, F.S.; revising provisions relating to provision
21of evidence by petitioners and property appraisers;
22amending s. 194.013, F.S.; requiring value adjustment
23boards to waive a petition filing fee for taxpayers
24eligible for certain constitutional exemptions; amending
25s. 194.015, F.S.; revising the membership of value
26adjustment boards, appointment criteria, and quorum
27requirements; amending s. 194.032, F.S.; providing for
28criteria for rescheduling certain hearings under certain
29circumstances; amending s. 194.034, F.S.; requiring value
30adjustment boards to order refund of certain filing fees
31if a determination of a property appraiser is overturned;
32amending s. 194.192, F.S.; providing for judgments against
33property appraisers under certain circumstances; providing
34for assessment and award of attorney fees to taxpayers
35under certain circumstances; amending s. 194.301, F.S.;  
36revising criteria for a presumption of correctness of ad
37valorem taxation assessments and the burden of proof in
38actions challenging such assessments; providing an
39effective date.
40
41Be It Enacted by the Legislature of the State of Florida:
42
43     Section 1.  Effective upon this act becoming a law and
44applicable to assessments beginning January 1, 2008, section
45193.011, Florida Statutes, is amended to read:
46     193.011  Factors to consider in deriving just valuation.--
47     (1)  In arriving at just valuation as required under s. 4,
48Art. VII of the State Constitution, the property appraiser shall
49take into consideration the following factors:
50     (a)(1)  The present cash value of the property, which is
51the amount a willing purchaser would pay a willing seller,
52exclusive of reasonable fees and costs of purchase, in cash or
53the immediate equivalent thereof in a transaction at arm's
54length;
55     (b)(2)  The highest and best use to which the property can
56be expected to be put in the immediate future and the present
57use of the property, taking into consideration any applicable
58judicial limitation, local or state land use regulation, or
59historic preservation ordinance, and any zoning changes and
60permits necessary to achieve the highest and best use, and
61considering any moratorium imposed by executive order, law,
62ordinance, regulation, resolution, or proclamation adopted by
63any governmental body or agency or the Governor when the
64moratorium or judicial limitation prohibits or restricts the
65development or improvement of property as otherwise authorized
66by applicable law. The applicable governmental body or agency or
67the Governor shall notify the property appraiser in writing of
68any executive order, ordinance, regulation, resolution, or
69proclamation it adopts imposing any such limitation, regulation,
70or moratorium;
71     (c)(3)  The location of said property;
72     (d)(4)  The quantity or size of said property;
73     (e)(5)  The cost of said property and the present
74replacement value of any improvements thereon;
75     (f)(6)  The condition of said property. When determining
76the condition of the property, the property appraiser shall
77consider physical deterioration, functional obsolescence, and
78external obsolescence;
79     (g)(7)  The income from said property; and
80     (h)(8)  The net proceeds of the sale of the property, as
81received by the seller, after deduction of all of the usual and
82reasonable fees and costs of the sale, including the costs and
83expenses of financing, and allowance for unconventional or
84atypical terms of financing arrangements, and including the
85costs of removal of tangible personal property. When the net
86proceeds of the sale of any property are utilized, directly or
87indirectly, in the determination of just valuation of realty of
88the sold parcel or any other parcel under the provisions of this
89section, the property appraiser, for the purposes of such
90determination, shall exclude any portion of such net proceeds
91attributable to payments for household furnishings or other
92items of personal property.
93     (2)  Notwithstanding the requirement that property
94appraisers consider all of the factors enumerated in subsection
95(1) in arriving at just valuation, property appraisers shall
96consider only the market rent from income-producing property in
97the case of all residential rental property and all commercial
98property that is leased to more than one legal entity, each of
99which conducts a separate business activity on the property. For
100purposes of this subsection, the term "market rent" means the
101most likely rent that an income-producing property would command
102if offered for lease in the open market.
103     Section 2.  Section 193.016, Florida Statutes, is amended
104to read:
105     193.016  Property appraiser's assessment; effect of
106determinations by value adjustment board.--If the property
107appraiser's assessment of the same items of tangible personal
108property in the previous year was adjusted by the value
109adjustment board and the decision of the board to reduce the
110assessment was not successfully appealed by the property
111appraiser, the property appraiser shall consider the reduced
112value values determined by the value adjustment board in
113assessing the those items of tangible personal property. If the
114property appraiser adjusts upward the reduced value values
115previously determined by the value adjustment board, the
116property appraiser shall assert additional basic and underlying
117facts not properly considered by the value adjustment board as
118the basis for the increased valuation notwithstanding the prior
119adjustment by the board.
120     Section 3.  Section 193.018, Florida Statutes, is created
121to read:
122     193.018  Assessment of deed-restricted property.--
123     (1)  The owner of residential rental property, multiunit
124commercial rental property, property used as a marina,
125waterfront property used exclusively for commercial fishing
126purposes, or property rented for use by mobile homes may enter
127into a deed-restriction agreement with the county to maintain
128the property at its current use for a period of at least 5
129years.
130     (2)  The property appraiser shall consider the deed-
131restriction agreement in determining the just value of the
132property.
133     (3)  If, prior to the expiration of the deed-restriction
134agreement, the property is not used for the purposes set forth
135in the deed-restriction agreement, the deed-restriction
136agreement shall be terminated and the property owner shall pay
137to the county an amount equal to the additional taxes that would
138have been paid in prior years had the deed-restriction agreement
139not been in effect, plus 12 percent interest.
140     Section 4.  Subsection (4) of section 194.011, Florida
141Statutes, is amended to read:
142     194.011  Assessment notice; objections to assessments.--
143     (4)(a)  At least 15 days before the hearing, the petitioner
144shall provide to the property appraiser a list of evidence to be
145presented at the hearing, together with copies of all
146documentation to be considered by the value adjustment board and
147a summary of evidence to be presented by witnesses.
148     (b)  At least 15 No later than 7 days before the hearing,
149if the petitioner has provided the information required under
150paragraph (a), and if requested in writing by the petitioner,
151the property appraiser shall provide to the petitioner a list of
152evidence to be presented at the hearing, together with copies of
153all documentation to be considered by the value adjustment board
154and a summary of evidence to be presented by witnesses. The
155evidence list must contain the property record card if provided
156by the clerk. Failure of the property appraiser to timely comply
157with the requirements of this paragraph shall result in a
158rescheduling of the hearing.
159     Section 5.  Subsection (2) of section 194.013, Florida
160Statutes, is amended to read:
161     194.013  Filing fees for petitions; disposition; waiver.--
162     (2)  The value adjustment board shall waive the filing fee
163with respect to a petition filed by a taxpayer who is eligible
164to receive one or more of the exemptions under s. 6(c), (f), or
165(g), Art. VII of the State Constitution, regardless of whether
166the taxpayer's local government grants the additional local
167homestead exemptions. The filing fee also shall be waived for a
168taxpayer who demonstrates at the time of filing, by an
169appropriate certificate or other documentation issued by the
170Department of Children and Family Services and submitted with
171the petition, that the petitioner is then an eligible recipient
172of temporary assistance under chapter 414.
173     Section 6.  Section 194.015, Florida Statutes, is amended
174to read:
175     194.015  Value adjustment board.--
176     (1)  There is hereby created a value adjustment board for
177each county, which shall consist of five members.
178     (2)(a)1.  Three members shall be appointed by of the
179governing body of the county, as follows:
180     a.  One member must own a homestead property within the
181county.
182     b.  One member must own a business that occupies commercial
183space located within the county.
184     c.  An appointee may not be a member or an employee of any
185taxing authority.
186     2.  as elected from the membership of the board of said
187governing body, One of such appointees whom shall be elected
188chairperson.
189     (b)  , and Two members shall be appointed by of the school
190board, as follows:
191     1.  One member must own a business that occupies commercial
192space located within the school district.
193     2.  One member must be eligible to receive one or more of
194the exemptions under s. 6(c), (f), or (g), Art. VII of the State
195Constitution, regardless of whether the taxpayer's local
196government grants the additional local homestead exemptions.
197     3.  An appointee may not be a member or an employee of any
198taxing authority as elected from the membership of the school
199board. The members of the board may be temporarily replaced by
200other members of the respective boards on appointment by their
201respective chairpersons.
202     (3)  Any three members shall constitute a quorum of the
203board, except that each quorum must include at least one member
204of said governing board and at least one member of the school
205board, and no meeting of the board shall take place unless a
206quorum is present.
207     (4)  Members of the board may receive such per diem
208compensation as is allowed by law for state employees if both
209bodies elect to allow such compensation.
210     (5)  The clerk of the governing body of the county shall be
211the clerk of the value adjustment board.
212     (6)(a)  The office of the county attorney may be counsel to
213the board unless the county attorney represents the property
214appraiser, in which instance the board shall appoint private
215counsel who has practiced law for over 5 years and who shall
216receive such compensation as may be established by the board.
217     (b)  Meetings No meeting of the board may not shall take
218place unless counsel to the board is present. However, counsel
219for the property appraiser shall not be required when the county
220attorney represents only the board at the board hearings, even
221though the county attorney may represent the property appraiser
222in other matters or at a different time.
223     (7)  Two-fifths of the expenses of the board shall be borne
224by the district school board and three-fifths by the district
225county commission.
226     Section 7.  Subsection (2) of section 194.032, Florida
227Statutes, is amended to read:
228     194.032  Hearing purposes; timetable.--
229     (2)  The clerk of the governing body of the county shall
230prepare a schedule of appearances before the board based on
231petitions timely filed with him or her. The clerk shall notify
232each petitioner of the scheduled time of his or her appearance
233no less than 25 calendar days prior to the day of such scheduled
234appearance. Upon receipt of this notification, the petitioner
235shall have the right to reschedule the hearing for the failure
236of the property appraiser to comply with the requirements of s.
237194.011(4)(b). The hearing shall be rescheduled no sooner than
23815 days after the property appraiser complies with the
239requirements of s. 194.011(4)(b). The petitioner shall also have
240the right to reschedule the hearing a single time by submitting
241to the clerk of the governing body of the county a written
242request to reschedule, no less than 5 calendar days before the
243day of the originally scheduled hearing. Additional rescheduling
244of the hearing may be granted to the taxpayer upon receipt of an
245affidavit from a physician that states a medical reason as to
246why the petitioner needs to reschedule the hearing. A copy of
247the property record card containing relevant information used in
248computing the taxpayer's current assessment shall be included
249with such notice, if said card was requested by the taxpayer.
250Such request shall be made by checking an appropriate box on the
251petition form. No petitioner shall be required to wait for more
252than 2 4 hours from the scheduled time; and, if his or her
253petition is not heard in that time, the petitioner may, at his
254or her option, report to the chairperson of the meeting that he
255or she intends to leave; and, if he or she is not heard
256immediately, the petitioner's hearing shall be rescheduled for a
257time reserved exclusively for the petitioner administrative
258remedies will be deemed to be exhausted, and he or she may seek
259further relief as he or she deems appropriate. Failure on three
260occasions with respect to any single tax year to convene at the
261scheduled time of meetings of the board shall constitute grounds
262for removal from office by the Governor for neglect of duties.
263     Section 8.  Subsection (2) of section 194.034, Florida
264Statutes, is amended to read:
265     194.034  Hearing procedures; rules.--
266     (2)  In each case, except when a complaint is withdrawn by
267the petitioner or is acknowledged as correct by the property
268appraiser, the value adjustment board shall render a written
269decision. All such decisions shall be issued within 20 calendar
270days of the last day the board is in session under s. 194.032.
271The decision of the board shall contain findings of fact and
272conclusions of law and shall include reasons for upholding or
273overturning the determination of the property appraiser. If the
274determination of the property appraiser is overturned, the board
275shall order the refunding of the filing fee required by s.
276194.013. When a special magistrate has been appointed, the
277recommendations of the special magistrate shall be considered by
278the board. The clerk, upon issuance of the decisions, shall, on
279a form provided by the Department of Revenue, notify by first-
280class mail each taxpayer, the property appraiser, and the
281department of the decision of the board.
282     Section 9.  Subsection (3) is added to section 194.192,
283Florida Statutes, to read:
284     194.192  Costs; interest on unpaid taxes; penalty; attorney
285fees.--
286     (3)  If the court finds that the amount owed by the
287taxpayer is less than the amount of tax paid, the court shall
288enter judgment against the appraiser for the difference and for
289interest on the difference at the rate of 12 percent per year
290from the date of payment. If the final assessment established by
291the court is lower than the value assessed by the property
292appraiser by more than 10 percent, the court shall assess and
293award reasonable attorney fees to the taxpayer.
294     Section 10.  Section 194.301, Florida Statutes, is amended
295to read:
296     194.301  Presumption of correctness and burden of proof in
297ad valorem tax assessment challenges.--In any administrative or
298judicial proceeding action in which a taxpayer challenges an ad
299valorem tax assessment of value is challenged, the burden of
300proof shall be upon the party initiating the proceeding and such
301party shall have the burden of proving by a preponderance of the
302evidence that the assessment, as established by the property
303appraiser or the Value Adjustment Board, is incorrect. The
304property appraiser's assessment shall be presumed correct,
305except that if the Value Adjustment Board has established a
306different assessment, the assessment of the Value Adjustment
307Board shall be presumed correct. This presumption of correctness
308is lost if the taxpayer shows by a preponderance of the evidence
309that either the property appraiser has failed to comply with
310uniform standards of professional appraisal practice in his or
311her consideration of consider properly the criteria in s.
312193.011 or if the property appraiser's assessment is arbitrarily
313based on appraisal practices which are different from the
314appraisal practices generally applied by the property appraiser
315to comparable property within the same class and within the same
316county. If the presumption of correctness is lost, the taxpayer
317shall have the burden of proving by a preponderance of the
318evidence that the appraiser's assessment is in excess of just
319value. If the presumption of correctness is retained, the
320taxpayer shall have the burden of proving by clear and
321convincing evidence that the appraiser's assessment is in excess
322of just value. In no case shall the taxpayer have the burden of
323proving that the property appraiser's assessment is not
324supported by any reasonable hypothesis of a legal assessment. If
325the property appraiser's assessment is determined to be
326erroneous, the Value Adjustment Board or the court can establish
327the assessment if there exists competent, substantial evidence
328in the record, which cumulatively meets the requirements of s.
329193.011. If the record lacks competent, substantial evidence
330meeting the just value criteria of s. 193.011, the matter shall
331be remanded to the property appraiser with appropriate
332directions from the Value Adjustment Board or the court.
333     Section 11.  This act shall take effect upon becoming a
334law.


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