Florida Senate - 2009 SB 464
By Senator Fasano
11-00294-09 2009464__
1 A bill to be entitled
2 An act relating to homestead assessments; amending s.
3 193.155, F.S.; providing additional limitations on
4 annual changes in assessments of homestead real
5 property; providing an effective date.
6
7 Be It Enacted by the Legislature of the State of Florida:
8
9 Section 1. Section 193.155, Florida Statutes, is amended to
10 read:
11 193.155 Homestead assessments.—Homestead property shall be
12 assessed at just value as of January 1, 1994. Property receiving
13 the homestead exemption after January 1, 1994, shall be assessed
14 at just value as of January 1 of the year in which the property
15 receives the exemption unless the provisions of subsection (8)
16 apply.
17 (1) Beginning in 1995, or the year after following the year
18 the property receives a homestead exemption, whichever is later,
19 the property shall be reassessed annually on January 1 as
20 follows:
21 (a) If the just value of the homestead property decreases
22 from the prior year, the change in the assessment shall decrease
23 by the percentage decrease in just value.
24 (b) If the just value of the homestead property remains the
25 same from the prior year, the assessment shall not change.
26 (c) If the just value of the homestead property increases
27 from the prior year, the. Any change resulting from such
28 reassessment shall not exceed the lower of the following:
29 1.(a) Three percent of the assessed value of the property
30 for the prior year; or
31 2.(b) The percentage change in the Consumer Price Index for
32 All Urban Consumers, U.S. City Average, all items 1967=100, or
33 successor reports for the preceding calendar year as initially
34 reported by the United States Department of Labor, Bureau of
35 Labor Statistics.
36 (2) If the assessed value of the property as calculated
37 under subsection (1) exceeds the just value, the assessed value
38 of the property shall be lowered to the just value of the
39 property.
40 (3) Except as provided in this subsection or subsection
41 (8), property assessed under this section shall be assessed at
42 just value as of January 1 of the year following a change of
43 ownership. Thereafter, the annual changes in the assessed value
44 of the property are subject to the limitations in subsections
45 (1) and (2). For the purpose of this section, a change of
46 ownership means any sale, foreclosure, or transfer of legal
47 title or beneficial title in equity to any person, except as
48 provided in this subsection. There is no change of ownership if:
49 (a) Subsequent to the change or transfer, the same person
50 is entitled to the homestead exemption as was previously
51 entitled and:
52 1. The transfer of title is to correct an error;
53 2. The transfer is between legal and equitable title; or
54 3. The change or transfer is by means of an instrument in
55 which the owner is listed as both grantor and grantee of the
56 real property and one or more other individuals are additionally
57 named as grantee. However, if any individual who is additionally
58 named as a grantee applies for a homestead exemption on the
59 property, the application shall be considered a change of
60 ownership;
61 (b) The transfer is between husband and wife, including a
62 transfer to a surviving spouse or a transfer due to a
63 dissolution of marriage;
64 (c) The transfer occurs by operation of law under s.
65 732.4015; or
66 (d) Upon the death of the owner, the transfer is between
67 the owner and another who is a permanent resident and is legally
68 or naturally dependent upon the owner.
69 (4)(a) Except as provided in paragraph (b), changes,
70 additions, or improvements to homestead property shall be
71 assessed at just value as of the first January 1 after the
72 changes, additions, or improvements are substantially completed.
73 (b) Changes, additions, or improvements that replace all or
74 a portion of homestead property damaged or destroyed by
75 misfortune or calamity shall not increase the homestead
76 property's assessed value when the square footage of the
77 homestead property as changed or improved does not exceed 110
78 percent of the square footage of the homestead property before
79 the damage or destruction. Additionally, the homestead
80 property's assessed value shall not increase if the total square
81 footage of the homestead property as changed or improved does
82 not exceed 1,500 square feet. Changes, additions, or
83 improvements that do not cause the total to exceed 110 percent
84 of the total square footage of the homestead property before the
85 damage or destruction or that do not cause the total to exceed
86 1,500 total square feet shall be reassessed as provided under
87 subsection (1). The homestead property's assessed value shall be
88 increased by the just value of that portion of the changed or
89 improved homestead property which is in excess of 110 percent of
90 the square footage of the homestead property before the damage
91 or destruction or of that portion exceeding 1,500 square feet.
92 Homestead property damaged or destroyed by misfortune or
93 calamity which, after being changed or improved, has a square
94 footage of less than 100 percent of the homestead property's
95 total square footage before the damage or destruction shall be
96 assessed pursuant to subsection (5). This paragraph applies to
97 changes, additions, or improvements commenced within 3 years
98 after the January 1 following the damage or destruction of the
99 homestead.
100 (c) Changes, additions, or improvements that replace all or
101 a portion of real property that was damaged or destroyed by
102 misfortune or calamity shall be assessed upon substantial
103 completion as if such damage or destruction had not occurred and
104 in accordance with paragraph (b) if the owner of such property:
105 1. Was permanently residing on such property when the
106 damage or destruction occurred;
107 2. Was not entitled to receive homestead exemption on such
108 property as of January 1 of that year; and
109 3. Applies for and receives homestead exemption on such
110 property the following year.
111 (d) Changes, additions, or improvements include
112 improvements made to common areas or other improvements made to
113 property other than to the homestead property by the owner or by
114 an owner association, which improvements directly benefit the
115 homestead property. Such changes, additions, or improvements
116 shall be assessed at just value, and the just value shall be
117 apportioned among the parcels benefiting from the improvement.
118 (5) When property is destroyed or removed and not replaced,
119 the assessed value of the parcel shall be reduced by the
120 assessed value attributable to the destroyed or removed
121 property.
122 (6) Only property that receives a homestead exemption is
123 subject to this section. No portion of property that is assessed
124 solely on the basis of character or use pursuant to s. 193.461
125 or s. 193.501, or assessed pursuant to s. 193.505, is subject to
126 this section. When property is assessed under s. 193.461, s.
127 193.501, or s. 193.505 and contains a residence under the same
128 ownership, the portion of the property consisting of the
129 residence and curtilage must be assessed separately, pursuant to
130 s. 193.011, for the assessment to be subject to the limitation
131 in this section.
132 (7) If a person received a homestead exemption limited to
133 that person's proportionate interest in real property, the
134 provisions of this section apply only to that interest.
135 (8) Property assessed under this section shall be assessed
136 at less than just value when the person who establishes a new
137 homestead has received a homestead exemption as of January 1 of
138 either of the 2 immediately preceding years. A person who
139 establishes a new homestead as of January 1, 2008, is entitled
140 to have the new homestead assessed at less than just value only
141 if that person received a homestead exemption on January 1,
142 2007, and only if this subsection applies retroactive to January
143 1, 2008. For purposes of this subsection, a husband and wife who
144 owned and both permanently resided on a previous homestead shall
145 each be considered to have received the homestead exemption even
146 though only the husband or the wife applied for the homestead
147 exemption on the previous homestead. The assessed value of the
148 newly established homestead shall be determined as provided in
149 this subsection.
150 (a) If the just value of the new homestead as of January 1
151 is greater than or equal to the just value of the immediate
152 prior homestead as of January 1 of the year in which the
153 immediate prior homestead was abandoned, the assessed value of
154 the new homestead shall be the just value of the new homestead
155 minus an amount equal to the lesser of $500,000 or the
156 difference between the just value and the assessed value of the
157 immediate prior homestead as of January 1 of the year in which
158 the prior homestead was abandoned. Thereafter, the homestead
159 shall be assessed as provided in this section.
160 (b) If the just value of the new homestead as of January 1
161 is less than the just value of the immediate prior homestead as
162 of January 1 of the year in which the immediate prior homestead
163 was abandoned, the assessed value of the new homestead shall be
164 equal to the just value of the new homestead divided by the just
165 value of the immediate prior homestead and multiplied by the
166 assessed value of the immediate prior homestead. However, if the
167 difference between the just value of the new homestead and the
168 assessed value of the new homestead calculated pursuant to this
169 paragraph is greater than $500,000, the assessed value of the
170 new homestead shall be increased so that the difference between
171 the just value and the assessed value equals $500,000.
172 Thereafter, the homestead shall be assessed as provided in this
173 section.
174 (c) If two or more persons who have each received a
175 homestead exemption as of January 1 of either of the 2
176 immediately preceding years and who would otherwise be eligible
177 to have a new homestead property assessed under this subsection
178 establish a single new homestead, the reduction from just value
179 is limited to the higher of the difference between the just
180 value and the assessed value of either of the prior eligible
181 homesteads as of January 1 of the year in which either of the
182 eligible prior homesteads was abandoned, but may not exceed
183 $500,000.
184 (d) If two or more persons abandon jointly owned and
185 jointly titled property that received a homestead exemption as
186 of January 1 of either of the 2 immediately preceding years, and
187 one or more such persons who were entitled to and received a
188 homestead exemption on the abandoned property establish a new
189 homestead that would otherwise be eligible for assessment under
190 this subsection, each such person establishing a new homestead
191 is entitled to a reduction from just value for the new homestead
192 equal to the just value of the prior homestead minus the
193 assessed value of the prior homestead divided by the number of
194 owners of the prior homestead who received a homestead
195 exemption, unless the title of the property contains specific
196 ownership shares, in which case the share of reduction from just
197 value shall be proportionate to the ownership share. In
198 calculating the assessment reduction to be transferred from a
199 prior homestead that has an assessment reduction for living
200 quarters of parents or grandparents pursuant to s. 193.703, the
201 value calculated pursuant to s. 193.703(6) must first be added
202 back to the assessed value of the prior homestead. The total
203 reduction from just value for all new homesteads established
204 under this paragraph may not exceed $500,000. There shall be no
205 reduction from just value of any new homestead unless the prior
206 homestead is reassessed at just value or is reassessed under
207 this subsection as of January 1 after the abandonment occurs.
208 (e) If one or more persons who previously owned a single
209 homestead and each received the homestead exemption qualify for
210 a new homestead where all persons who qualify for homestead
211 exemption in the new homestead also qualified for homestead
212 exemption in the previous homestead without an additional person
213 qualifying for homestead exemption in the new homestead, the
214 reduction in just value shall be calculated pursuant to
215 paragraph (a) or paragraph (b), without application of paragraph
216 (c) or paragraph (d).
217 (f) For purposes of receiving an assessment reduction
218 pursuant to this subsection, a person entitled to assessment
219 under this section may abandon his or her homestead even though
220 it remains his or her primary residence by notifying the
221 property appraiser of the county where the homestead is located.
222 This notification must be in writing and delivered at the same
223 time as or before timely filing a new application for homestead
224 exemption on the property.
225 (g) In order to have his or her homestead property assessed
226 under this subsection, a person must file a form provided by the
227 department as an attachment to the application for homestead
228 exemption. The form, which must include a sworn statement
229 attesting to the applicant's entitlement to assessment under
230 this subsection, shall be considered sufficient documentation
231 for applying for assessment under this subsection. The
232 department shall require by rule that the required form be
233 submitted with the application for homestead exemption under the
234 timeframes and processes set forth in chapter 196 to the extent
235 practicable.
236 (h)1. If the previous homestead was located in a different
237 county than the new homestead, the property appraiser in the
238 county where the new homestead is located must transmit a copy
239 of the completed form together with a completed application for
240 homestead exemption to the property appraiser in the county
241 where the previous homestead was located. If the previous
242 homesteads of applicants for transfer were in more than one
243 county, each applicant from a different county must submit a
244 separate form.
245 2. The property appraiser in the county where the previous
246 homestead was located must return information to the property
247 appraiser in the county where the new homestead is located by
248 April 1 or within 2 weeks after receipt of the completed
249 application from that property appraiser, whichever is later. As
250 part of the information returned, the property appraiser in the
251 county where the previous homestead was located must provide
252 sufficient information concerning the previous homestead to
253 allow the property appraiser in the county where the new
254 homestead is located to calculate the amount of the assessment
255 limitation difference which may be transferred and must certify
256 whether the previous homestead was abandoned and has been or
257 will be reassessed at just value or reassessed according to the
258 provisions of this subsection as of the January 1 following its
259 abandonment.
260 3. Based on the information provided on the form from the
261 property appraiser in the county where the previous homestead
262 was located, the property appraiser in the county where the new
263 homestead is located shall calculate the amount of the
264 assessment limitation difference which may be transferred and
265 apply the difference to the January 1 assessment of the new
266 homestead.
267 4. All property appraisers having information-sharing
268 agreements with the department are authorized to share
269 confidential tax information with each other pursuant to s.
270 195.084, including social security numbers and linked
271 information on the forms provided pursuant to this section.
272 5. The transfer of any limitation is not final until any
273 values on the assessment roll on which the transfer is based are
274 final. If such values are final after tax notice bills have been
275 sent, the property appraiser shall make appropriate corrections
276 and a corrected tax notice bill shall be sent. Any values that
277 are under administrative or judicial review shall be noticed to
278 the tribunal or court for accelerated hearing and resolution so
279 that the intent of this subsection may be carried out.
280 6. If the property appraiser in the county where the
281 previous homestead was located has not provided information
282 sufficient to identify the previous homestead and the assessment
283 limitation difference is transferable, the taxpayer may file an
284 action in circuit court in that county seeking to establish that
285 the property appraiser must provide such information.
286 7. If the information from the property appraiser in the
287 county where the previous homestead was located is provided
288 after the procedures in this section are exercised, the property
289 appraiser in the county where the new homestead is located shall
290 make appropriate corrections and a corrected tax notice and tax
291 bill shall be sent.
292 8. This subsection does not authorize the consideration or
293 adjustment of the just, assessed, or taxable value of the
294 previous homestead property.
295 9. The property appraiser in the county where the new
296 homestead is located shall promptly notify a taxpayer if the
297 information received, or available, is insufficient to identify
298 the previous homestead and the amount of the assessment
299 limitation difference which is transferable. Such notification
300 shall be sent on or before July 1 as specified in s. 196.151.
301 10. The taxpayer may correspond with the property appraiser
302 in the county where the previous homestead was located to
303 further seek to identify the homestead and the amount of the
304 assessment limitation difference which is transferable.
305 11. If the property appraiser in the county where the
306 previous homestead was located supplies sufficient information
307 to the property appraiser in the county where the new homestead
308 is located, such information shall be considered timely if
309 provided in time for inclusion on the notice of proposed
310 property taxes sent pursuant to ss. 194.011 and 200.065(1).
311 12. If the property appraiser has not received information
312 sufficient to identify the previous homestead and the amount of
313 the assessment limitation difference which is transferable
314 before mailing the notice of proposed property taxes, the
315 taxpayer may file a petition with the value adjustment board in
316 the county where the new homestead is located.
317 (i) Any person who is qualified to have his or her property
318 assessed under this subsection and who fails to file an
319 application by March 1 may file an application for assessment
320 under this subsection and may, pursuant to s. 194.011(3), file a
321 petition with the value adjustment board requesting that an
322 assessment under this subsection be granted. Such petition may
323 be filed at any time during the taxable year on or before the
324 25th day following the mailing of the notice by the property
325 appraiser as provided in s. 194.011(1). Notwithstanding s.
326 194.013, such person must pay a nonrefundable fee of $15 upon
327 filing the petition. Upon reviewing the petition, if the person
328 is qualified to receive the assessment under this subsection and
329 demonstrates particular extenuating circumstances judged by the
330 property appraiser or the value adjustment board to warrant
331 granting the assessment, the property appraiser or the value
332 adjustment board may grant an assessment under this subsection.
333 For the 2008 assessments, all petitioners for assessment under
334 this subsection shall be considered to have demonstrated
335 particular extenuating circumstances.
336 (j) Any person who is qualified to have his or her property
337 assessed under this subsection and who fails to timely file an
338 application for his or her new homestead in the first year
339 following eligibility may file in a subsequent year. The
340 assessment reduction shall be applied to assessed value in the
341 year the transfer is first approved, and refunds of tax may not
342 be made for previous years.
343 (k) The property appraisers of the state shall, as soon as
344 practicable after March 1 of each year and on or before July 1
345 of that year, carefully consider all applications for assessment
346 under this subsection which have been filed in their respective
347 offices on or before March 1 of that year. If, upon
348 investigation, the property appraiser finds that the applicant
349 is entitled to assessment under this subsection, the property
350 appraiser shall make such entries upon the tax rolls of the
351 county as are necessary to allow the assessment. If, after due
352 consideration, the property appraiser finds that the applicant
353 is not entitled under the law to assessment under this
354 subsection, the property appraiser shall immediately make out a
355 notice of such disapproval, giving his or her reasons therefor,
356 and a copy of the notice must be served upon the applicant by
357 the property appraiser either by personal delivery or by
358 registered mail to the post office address given by the
359 applicant. The applicant may appeal the decision of the property
360 appraiser refusing to allow the assessment under this subsection
361 to the value adjustment board, and the board shall review the
362 application and evidence presented to the property appraiser
363 upon which the applicant based the claim and shall hear the
364 applicant in person or by agent on behalf of his or her right to
365 such assessment. Such appeal shall be heard by an attorney
366 special magistrate if the value adjustment board uses special
367 magistrates. The value adjustment board shall reverse the
368 decision of the property appraiser in the cause and grant
369 assessment under this subsection to the applicant if, in its
370 judgment, the applicant is entitled to be granted the assessment
371 or shall affirm the decision of the property appraiser. The
372 action of the board is final in the cause unless the applicant,
373 within 15 days following the date of refusal of the application
374 by the board, files in the circuit court of the county in which
375 the homestead is located a proceeding against the property
376 appraiser for a declaratory judgment as is provided by chapter
377 86 or other appropriate proceeding. The failure of the taxpayer
378 to appear before the property appraiser or value adjustment
379 board or to file any paper other than the application as
380 provided in this subsection does not constitute any bar to or
381 defense in the proceedings.
382 (9) Erroneous assessments of homestead property assessed
383 under this section may be corrected in the following manner:
384 (a) If errors are made in arriving at any assessment under
385 this section due to a material mistake of fact concerning an
386 essential characteristic of the property, the just value and
387 assessed value must be recalculated for every such year,
388 including the year in which the mistake occurred.
389 (b) If changes, additions, or improvements are not assessed
390 at just value as of the first January 1 after they were
391 substantially completed, the property appraiser shall determine
392 the just value for such changes, additions, or improvements for
393 the year they were substantially completed. Assessments for
394 subsequent years shall be corrected, applying this section if
395 applicable.
396 (c) If back taxes are due pursuant to s. 193.092, the
397 corrections made pursuant to this subsection shall be used to
398 calculate such back taxes.
399 (10) If the property appraiser determines that for any year
400 or years within the prior 10 years a person who was not entitled
401 to the homestead property assessment limitation granted under
402 this section was granted the homestead property assessment
403 limitation, the property appraiser making such determination
404 shall record in the public records of the county a notice of tax
405 lien against any property owned by that person in the county,
406 and such property must be identified in the notice of tax lien.
407 Such property that is situated in this state is subject to the
408 unpaid taxes, plus a penalty of 50 percent of the unpaid taxes
409 for each year and 15 percent interest per annum. However, when a
410 person entitled to exemption pursuant to s. 196.031
411 inadvertently receives the limitation pursuant to this section
412 following a change of ownership, the assessment of such property
413 must be corrected as provided in paragraph (9)(a), and the
414 person need not pay the unpaid taxes, penalties, or interest.
415 Section 2. This act shall take effect January 1, 2010.