| 1 | A bill to be entitled |
| 2 | An act relating to homestead property assessments; |
| 3 | amending s. 193.155, F.S.; providing additional |
| 4 | limitations on annual changes in assessments of homestead |
| 5 | real property; providing an effective date. |
| 6 |
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| 7 | Be It Enacted by the Legislature of the State of Florida: |
| 8 |
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| 9 | Section 1. Section 193.155, Florida Statutes, is amended |
| 10 | to read: |
| 11 | 193.155 Homestead assessments.--Homestead property shall |
| 12 | be assessed at just value as of January 1, 1994. Property |
| 13 | receiving the homestead exemption after January 1, 1994, shall |
| 14 | be assessed at just value as of January 1 of the year in which |
| 15 | the property receives the exemption. |
| 16 | (1) Beginning in 1995, or the year after following the |
| 17 | year the property receives a homestead exemption, whichever is |
| 18 | later, the property shall be reassessed annually on January 1 as |
| 19 | follows: |
| 20 | (a) If the just value of the homestead property decreases |
| 21 | from the prior year, the change in the assessment shall decrease |
| 22 | by the percentage decrease in just value. |
| 23 | (b) If the just value of the homestead property remains |
| 24 | the same from the prior year, the assessment shall not change. |
| 25 | (c) If the just value of the homestead property increases |
| 26 | from the prior year, the. Any change resulting from such |
| 27 | reassessment shall not exceed the lower of the following: |
| 28 | 1.(a) Three percent of the assessed value of the property |
| 29 | for the prior year; or |
| 30 | 2.(b) The percentage change in the Consumer Price Index |
| 31 | for All Urban Consumers, U.S. City Average, all items 1967=100, |
| 32 | or successor reports for the preceding calendar year as |
| 33 | initially reported by the United States Department of Labor, |
| 34 | Bureau of Labor Statistics. |
| 35 | (2) If the assessed value of the property as calculated |
| 36 | under subsection (1) exceeds the just value, the assessed value |
| 37 | of the property shall be lowered to the just value of the |
| 38 | property. |
| 39 | (3) Except as provided in this subsection, property |
| 40 | assessed under this section shall be assessed at just value as |
| 41 | of January 1 of the year following a change of ownership. |
| 42 | Thereafter, the annual changes in the assessed value of the |
| 43 | property are subject to the limitations in subsections (1) and |
| 44 | (2). For the purpose of this section, a change in ownership |
| 45 | means any sale, foreclosure, or transfer of legal title or |
| 46 | beneficial title in equity to any person, except as provided in |
| 47 | this subsection. There is no change of ownership if: |
| 48 | (a) Subsequent to the change or transfer, the same person |
| 49 | is entitled to the homestead exemption as was previously |
| 50 | entitled and: |
| 51 | 1. The transfer of title is to correct an error; |
| 52 | 2. The transfer is between legal and equitable title; or |
| 53 | 3. The change or transfer is by means of an instrument in |
| 54 | which the owner is listed as both grantor and grantee of the |
| 55 | real property and one or more other individuals are additionally |
| 56 | named as grantee. However, if any individual who is additionally |
| 57 | named as a grantee applies for a homestead exemption on the |
| 58 | property, the application shall be considered a change of |
| 59 | ownership; |
| 60 | (b) The transfer is between husband and wife, including a |
| 61 | transfer to a surviving spouse or a transfer due to a |
| 62 | dissolution of marriage; |
| 63 | (c) The transfer occurs by operation of law under s. |
| 64 | 732.4015; or |
| 65 | (d) Upon the death of the owner, the transfer is between |
| 66 | the owner and another who is a permanent resident and is legally |
| 67 | or naturally dependent upon the owner. |
| 68 | (4)(a) Except as provided in paragraph (b), changes, |
| 69 | additions, or improvements to homestead property shall be |
| 70 | assessed at just value as of the first January 1 after the |
| 71 | changes, additions, or improvements are substantially completed. |
| 72 | (b) Changes, additions, or improvements that replace all |
| 73 | or a portion of homestead property damaged or destroyed by |
| 74 | misfortune or calamity shall not increase the homestead |
| 75 | property's assessed value when the square footage of the |
| 76 | homestead property as changed or improved does not exceed 110 |
| 77 | percent of the square footage of the homestead property before |
| 78 | the damage or destruction. Additionally, the homestead |
| 79 | property's assessed value shall not increase if the total square |
| 80 | footage of the homestead property as changed or improved does |
| 81 | not exceed 1,500 square feet. Changes, additions, or |
| 82 | improvements that do not cause the total to exceed 110 percent |
| 83 | of the total square footage of the homestead property before the |
| 84 | damage or destruction or that do not cause the total to exceed |
| 85 | 1,500 total square feet shall be reassessed as provided under |
| 86 | subsection (1). The homestead property's assessed value shall be |
| 87 | increased by the just value of that portion of the changed or |
| 88 | improved homestead property which is in excess of 110 percent of |
| 89 | the square footage of the homestead property before the damage |
| 90 | or destruction or of that portion exceeding 1,500 square feet. |
| 91 | Homestead property damaged or destroyed by misfortune or |
| 92 | calamity which, after being changed or improved, has a square |
| 93 | footage of less than 100 percent of the homestead property's |
| 94 | total square footage before the damage or destruction shall be |
| 95 | assessed pursuant to subsection (5). This paragraph applies to |
| 96 | changes, additions, or improvements commenced within 3 years |
| 97 | after the January 1 following the damage or destruction of the |
| 98 | homestead. |
| 99 | (c) Changes, additions, or improvements that replace all |
| 100 | or a portion of real property that was damaged or destroyed by |
| 101 | misfortune or calamity shall be assessed upon substantial |
| 102 | completion as if such damage or destruction had not occurred and |
| 103 | in accordance with paragraph (b) if the owner of such property: |
| 104 | 1. Was permanently residing on such property when the |
| 105 | damage or destruction occurred; |
| 106 | 2. Was not entitled to receive homestead exemption on such |
| 107 | property as of January 1 of that year; and |
| 108 | 3. Applies for and receives homestead exemption on such |
| 109 | property the following year. |
| 110 | (d) Changes, additions, or improvements include |
| 111 | improvements made to common areas or other improvements made to |
| 112 | property other than to the homestead property by the owner or by |
| 113 | an owner association, which improvements directly benefit the |
| 114 | homestead property. Such changes, additions, or improvements |
| 115 | shall be assessed at just value, and the just value shall be |
| 116 | apportioned among the parcels benefiting from the improvement. |
| 117 | (5) When property is destroyed or removed and not |
| 118 | replaced, the assessed value of the parcel shall be reduced by |
| 119 | the assessed value attributable to the destroyed or removed |
| 120 | property. |
| 121 | (6) Only property that receives a homestead exemption is |
| 122 | subject to this section. No portion of property that is assessed |
| 123 | solely on the basis of character or use pursuant to s. 193.461 |
| 124 | or s. 193.501, or assessed pursuant to s. 193.505, is subject to |
| 125 | this section. When property is assessed under s. 193.461, s. |
| 126 | 193.501, or s. 193.505 and contains a residence under the same |
| 127 | ownership, the portion of the property consisting of the |
| 128 | residence and curtilage must be assessed separately, pursuant to |
| 129 | s. 193.011, for the assessment to be subject to the limitation |
| 130 | in this section. |
| 131 | (7) If a person received a homestead exemption limited to |
| 132 | that person's proportionate interest in real property, the |
| 133 | provisions of this section apply only to that interest. |
| 134 | (8) Erroneous assessments of homestead property assessed |
| 135 | under this section may be corrected in the following manner: |
| 136 | (a) If errors are made in arriving at any assessment under |
| 137 | this section due to a material mistake of fact concerning an |
| 138 | essential characteristic of the property, the just value and |
| 139 | assessed value must be recalculated for every such year, |
| 140 | including the year in which the mistake occurred. |
| 141 | (b) If changes, additions, or improvements are not |
| 142 | assessed at just value as of the first January 1 after they were |
| 143 | substantially completed, the property appraiser shall determine |
| 144 | the just value for such changes, additions, or improvements for |
| 145 | the year they were substantially completed. Assessments for |
| 146 | subsequent years shall be corrected, applying this section if |
| 147 | applicable. |
| 148 | (c) If back taxes are due pursuant to s. 193.092, the |
| 149 | corrections made pursuant to this subsection shall be used to |
| 150 | calculate such back taxes. |
| 151 | (9) If the property appraiser determines that for any year |
| 152 | or years within the prior 10 years a person who was not entitled |
| 153 | to the homestead property assessment limitation granted under |
| 154 | this section was granted the homestead property assessment |
| 155 | limitation, the property appraiser making such determination |
| 156 | shall record in the public records of the county a notice of tax |
| 157 | lien against any property owned by that person in the county, |
| 158 | and such property must be identified in the notice of tax lien. |
| 159 | Such property that is situated in this state is subject to the |
| 160 | unpaid taxes, plus a penalty of 50 percent of the unpaid taxes |
| 161 | for each year and 15 percent interest per annum. However, when a |
| 162 | person entitled to exemption pursuant to s. 196.031 |
| 163 | inadvertently receives the limitation pursuant to this section |
| 164 | following a change of ownership, the assessment of such property |
| 165 | must be corrected as provided in paragraph (8)(a), and the |
| 166 | person need not pay the unpaid taxes, penalties, or interest. |
| 167 | Section 2. This act shall take effect January 1, 2009. |