| 1 | A bill to be entitled |
| 2 | An act relating to property taxation; amending s. |
| 3 | 193.1554, F.S.; specifying an additional type of transfer |
| 4 | under which no change of ownership of nonhomestead |
| 5 | residential property occurs; amending s. 193.1555, F.S.; |
| 6 | specifying an additional type of transfer under which no |
| 7 | change of ownership of nonresidential property occurs; |
| 8 | amending s. 193.1556, F.S.; providing that a recorded deed |
| 9 | or other instrument serves as notice of a change of |
| 10 | ownership; requiring the Department of Revenue to provide |
| 11 | a form by which a property owner may notify a property |
| 12 | appraiser of a change of ownership; specifying a form |
| 13 | requirement; amending s. 193.461, F.S.; specifying |
| 14 | application of a methodology for assessing certain |
| 15 | agricultural improvements, structures, or equipment |
| 16 | located on agricultural land and used for specified |
| 17 | purposes; amending s. 196.061, F.S.; revising criteria for |
| 18 | rental of a homestead as constituting abandonment of the |
| 19 | homestead; providing a definition; amending s. 196.1995, |
| 20 | F.S.; expanding the authority of the governing body of a |
| 21 | county or municipality to renew economic development ad |
| 22 | valorem tax exemptions for multiple 10-year periods upon |
| 23 | approval by referendum for each renewal; providing an |
| 24 | effective date. |
| 25 |
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| 26 | Be It Enacted by the Legislature of the State of Florida: |
| 27 |
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| 28 | Section 1. Subsection (5) of section 193.1554, Florida |
| 29 | Statutes, to read: |
| 30 | 193.1554 Assessment of nonhomestead residential property.- |
| 31 | (5) Except as provided in this subsection, property |
| 32 | assessed under this section shall be assessed at just value as |
| 33 | of January 1 of the year following a change of ownership or |
| 34 | control. Thereafter, the annual changes in the assessed value of |
| 35 | the property are subject to the limitations in subsections (3) |
| 36 | and (4). For purpose of this section, a change of ownership or |
| 37 | control means any sale, foreclosure, transfer of legal title or |
| 38 | beneficial title in equity to any person, or the cumulative |
| 39 | transfer of control or of more than 50 percent of the ownership |
| 40 | of the legal entity that owned the property when it was most |
| 41 | recently assessed at just value, except as provided in this |
| 42 | subsection. There is no change of ownership if: |
| 43 | (a) The transfer of title is to correct an error; |
| 44 | (b) The transfer is between legal and equitable title; or |
| 45 | (c) The transfer is between husband and wife, including a |
| 46 | transfer to a surviving spouse or a transfer due to a |
| 47 | dissolution of marriage; or |
| 48 | (d) For a publicly traded company, the cumulative transfer |
| 49 | of more than 50 percent of the ownership of the entity occurs |
| 50 | through the buying and selling of shares of the company on a |
| 51 | public exchange. This exception does not include a transfer made |
| 52 | through a merger with or an acquisition by another company, |
| 53 | including, but not limited to, acquisition by acquiring |
| 54 | outstanding shares of the company. |
| 55 | Section 2. Subsection (5) of section 193.1555, Florida |
| 56 | Statutes, is amended to read: |
| 57 | 193.1555 Assessment of certain residential and |
| 58 | nonresidential real property.- |
| 59 | (5) Except as provided in this subsection, property |
| 60 | assessed under this section shall be assessed at just value as |
| 61 | of January 1 of the year following a qualifying improvement or |
| 62 | change of ownership or control. Thereafter, the annual changes |
| 63 | in the assessed value of the property are subject to the |
| 64 | limitations in subsections (3) and (4). For purpose of this |
| 65 | section: |
| 66 | (a) A qualifying improvement means any substantially |
| 67 | completed improvement that increases the just value of the |
| 68 | property by at least 25 percent. |
| 69 | (b) A change of ownership or control means any sale, |
| 70 | foreclosure, transfer of legal title or beneficial title in |
| 71 | equity to any person, or the cumulative transfer of control or |
| 72 | of more than 50 percent of the ownership of the legal entity |
| 73 | that owned the property when it was most recently assessed at |
| 74 | just value, except as provided in this subsection. There is no |
| 75 | change of ownership if: |
| 76 | 1. The transfer of title is to correct an error; or |
| 77 | 2. The transfer is between legal and equitable title; or |
| 78 | 3. For a publicly traded company, the cumulative transfer |
| 79 | of more than 50 percent of the ownership of the entity occurs |
| 80 | through the buying and selling of shares of the company on a |
| 81 | public exchange. This exception does not include a transfer made |
| 82 | through a merger with or an acquisition by another company, |
| 83 | including, but not limited to, acquisition by acquiring |
| 84 | outstanding shares of the company. |
| 85 | Section 3. Section 193.1556, Florida Statutes, is amended |
| 86 | to read: |
| 87 | 193.1556 Notice of change of ownership or control |
| 88 | required.- |
| 89 | (1) Any person or entity that owns property assessed under |
| 90 | s. 193.1554 or s. 193.1555 must notify the property appraiser |
| 91 | promptly of any change of ownership or control as defined in ss. |
| 92 | 193.1554(5) and 193.1555(5). If the change of ownership is |
| 93 | recorded by a deed or other instrument in the public records of |
| 94 | the county where the property is located, the recorded deed or |
| 95 | other instrument shall serve as notice to the property |
| 96 | appraiser. If any property owner fails to so notify the property |
| 97 | appraiser and the property appraiser determines that for any |
| 98 | year within the prior 10 years the owner's property was not |
| 99 | entitled to assessment under s. 193.1554 or s. 193.1555, the |
| 100 | owner of the property is subject to the taxes avoided as a |
| 101 | result of such failure plus 15 percent interest per annum and a |
| 102 | penalty of 50 percent of the taxes avoided. It is the duty of |
| 103 | the property appraiser making such determination to record in |
| 104 | the public records of the county a notice of tax lien against |
| 105 | any property owned by that person or entity in the county, and |
| 106 | such property must be identified in the notice of tax lien. Such |
| 107 | property is subject to the payment of all taxes and penalties. |
| 108 | Such lien when filed shall attach to any property, identified in |
| 109 | the notice of tax lien, owned by the person or entity that |
| 110 | illegally or improperly was assessed under s. 193.1554 or s. |
| 111 | 193.1555. If such person or entity no longer owns property in |
| 112 | that county, but owns property in some other county or counties |
| 113 | in the state, it shall be the duty of the property appraiser to |
| 114 | record a notice of tax lien in such other county or counties, |
| 115 | identifying the property owned by such person or entity in such |
| 116 | county or counties, and it becomes a lien against such property |
| 117 | in such county or counties. |
| 118 | (2) The Department of Revenue shall provide a form by |
| 119 | which a property owner may provide notice to all property |
| 120 | appraisers of a change in ownership or control. The form must |
| 121 | allow the property owner to list all property that he or she |
| 122 | owns or controls in this state for which a change of ownership |
| 123 | or control as defined in s. 193.1554(5) or s. 193.1555(5) has |
| 124 | occurred but has not been noticed previously to property |
| 125 | appraisers. Providing notice on such form constitutes compliance |
| 126 | with the notification requirements of this section. |
| 127 | Section 4. Paragraph (c) of subsection (6) of section |
| 128 | 193.461, Florida Statutes, is amended to read: |
| 129 | 193.461 Agricultural lands; classification and assessment; |
| 130 | mandated eradication or quarantine program.- |
| 131 | (6) |
| 132 | (c)1. For purposes of the income methodology approach to |
| 133 | assessment of property used for agricultural purposes, |
| 134 | irrigation systems, including pumps and motors, physically |
| 135 | attached to the land shall be considered a part of the average |
| 136 | yields per acre and shall have no separately assessable |
| 137 | contributory value. |
| 138 | 2. Litter containment structures located on producing |
| 139 | poultry farms and animal waste nutrient containment structures |
| 140 | located on producing dairy farms shall be assessed by the |
| 141 | methodology described in subparagraph 1. |
| 142 | 3. Structures or improvements used for horticulture |
| 143 | production that improve water quality or water conservation, as |
| 144 | designated in the Department of Agriculture and Consumer |
| 145 | Service's interim measures or best management practices adopted |
| 146 | pursuant to s. 570.085 or s. 403.067(7)(c), shall be assessed by |
| 147 | the methodology described in subparagraph 1. |
| 148 | Section 5. Section 196.061, Florida Statutes, is amended |
| 149 | to read: |
| 150 | 196.061 Rental of homestead to constitute abandonment.-The |
| 151 | rental of all or substantially all of a an entire dwelling |
| 152 | previously claimed to be a homestead for tax purposes shall |
| 153 | constitute the abandonment of the said dwelling as a homestead, |
| 154 | and such said abandonment shall continue until such dwelling is |
| 155 | physically occupied by the owner thereof. However, such |
| 156 | abandonment of such homestead after January 1 of any year shall |
| 157 | not affect the homestead exemption for tax purposes for that |
| 158 | particular year so long as this provision is not used for 2 |
| 159 | consecutive years. The provisions of this section shall not |
| 160 | apply to a member of the Armed Forces of the United States whose |
| 161 | service in such forces is the result of a mandatory obligation |
| 162 | imposed by the federal Selective Service Act or who volunteers |
| 163 | for service as a member of the Armed Forces of the United |
| 164 | States. As used in this section, the term "rental" means any |
| 165 | rental, lease, license, or other similar agreement by which the |
| 166 | owner is compensated for use of the dwelling by tenants or |
| 167 | guests. |
| 168 | Section 6. Subsection (7) of section 196.1995, Florida |
| 169 | Statutes, is amended to read: |
| 170 | 196.1995 Economic development ad valorem tax exemption.- |
| 171 | (7) The authority to grant exemptions under this section |
| 172 | expires will expire 10 years after the date such authority was |
| 173 | approved in an election, but such authority may be renewed for |
| 174 | subsequent another 10-year periods if each 10-year renewal is |
| 175 | approved period in a referendum called and held pursuant to this |
| 176 | section. |
| 177 | Section 7. This act shall take effect July 1, 2010. |