| 1 | A bill to be entitled |
| 2 | An act relating to the assessment of residential and |
| 3 | nonhomestead real property; amending s. 193.114, F.S.; |
| 4 | limiting a review of changes to the assessed or |
| 5 | taxable value of real property resulting from certain |
| 6 | informal conferences to a review by the Department of |
| 7 | Revenue; creating s. 193.624, F.S.; providing |
| 8 | definitions; excluding the value of certain |
| 9 | improvements from the assessed value of residential |
| 10 | real property; specifying a limitation on the assessed |
| 11 | value of residential real property; providing for |
| 12 | application of the assessment limitations; providing |
| 13 | procedural requirements and limitations; requiring a |
| 14 | nonrefundable filing fee for a petition to the value |
| 15 | adjustment board; amending s. 193.155, F.S.; |
| 16 | specifying additional exceptions to the assessment of |
| 17 | homestead property at just value; amending ss. |
| 18 | 193.1554 and 193.1555, F.S.; specifying additional |
| 19 | exceptions to assessment of nonhomestead property at |
| 20 | just value; defining the term "placed on the tax |
| 21 | roll"; providing for the continuity and apportionment |
| 22 | of assessment limitations on combined and divided |
| 23 | parcels; specifying when divided or combined parcels |
| 24 | shall appear as combined or divided on a tax roll; |
| 25 | amending s. 196.012, F.S.; deleting the definition of |
| 26 | the terms "renewable energy source device" and |
| 27 | "device"; conforming a cross-reference; amending ss. |
| 28 | 196.121 and 196.1995, F.S.; conforming cross- |
| 29 | references; repealing s. 196.175, F.S., relating to |
| 30 | the property tax exemption for renewable energy source |
| 31 | devices; providing for application of the act; |
| 32 | providing an effective date. |
| 33 |
|
| 34 | Be It Enacted by the Legislature of the State of Florida: |
| 35 |
|
| 36 | Section 1. Subsection (4) of section 193.114, Florida |
| 37 | Statutes, is amended to read: |
| 38 | 193.114 Preparation of assessment rolls.- |
| 39 | (4)(a) For every change made to the assessed or taxable |
| 40 | value of a parcel on an assessment roll subsequent to the |
| 41 | mailing of the notice provided for in s. 200.069, the property |
| 42 | appraiser shall document the reason for such change in the |
| 43 | public records of the office of the property appraiser in a |
| 44 | manner acceptable to the executive director or the executive |
| 45 | director's designee. For every change made to the assessed or |
| 46 | taxable value of a parcel on the assessment roll as the result |
| 47 | of an informal conference under s. 194.011(2), only the |
| 48 | department may review whether such changes are consistent with |
| 49 | the law. |
| 50 | (b) For every change that decreases the assessed or |
| 51 | taxable value of a parcel on an assessment roll between the time |
| 52 | of complete submission of the tax roll pursuant to s. |
| 53 | 193.1142(3) and mailing of the notice provided for in s. |
| 54 | 200.069, the property appraiser shall document the reason for |
| 55 | such change in the public records of the office of the property |
| 56 | appraiser in a manner acceptable to the executive director or |
| 57 | the executive director's designee. Changes made by the value |
| 58 | adjustment board are not subject to the requirements of this |
| 59 | subsection. |
| 60 | Section 2. Section 193.624, Florida Statutes, is created |
| 61 | to read: |
| 62 | 193.624 Assessment of residential property.- |
| 63 | (1) For the purposes of this section: |
| 64 | (a) "Changes or improvements made for the purpose of |
| 65 | improving a property's resistance to wind damage" means: |
| 66 | 1. Improving the strength of the roof-deck attachment; |
| 67 | 2. Creating a secondary water barrier to prevent water |
| 68 | intrusion; |
| 69 | 3. Installing wind-resistant shingles; |
| 70 | 4. Installing gable-end bracing; |
| 71 | 5. Reinforcing roof-to-wall connections; |
| 72 | 6. Installing storm shutters; or |
| 73 | 7. Installing opening protections. |
| 74 | (b) "Renewable energy source device" means any of the |
| 75 | following equipment that collects, transmits, stores, or uses |
| 76 | solar energy, wind energy, or energy derived from geothermal |
| 77 | deposits: |
| 78 | 1. Solar energy collectors, photovoltaic modules, and |
| 79 | inverters. |
| 80 | 2. Storage tanks and other storage systems, excluding |
| 81 | swimming pools used as storage tanks. |
| 82 | 3. Rockbeds. |
| 83 | 4. Thermostats and other control devices. |
| 84 | 5. Heat exchange devices. |
| 85 | 6. Pumps and fans. |
| 86 | 7. Roof ponds. |
| 87 | 8. Freestanding thermal containers. |
| 88 | 9. Pipes, ducts, refrigerant handling systems, and other |
| 89 | equipment used to interconnect such systems; however, such |
| 90 | equipment does not include conventional backup systems of any |
| 91 | type. |
| 92 | 10. Windmills and wind turbines. |
| 93 | 11. Wind-driven generators. |
| 94 | 12. Power conditioning and storage devices that use wind |
| 95 | energy to generate electricity or mechanical forms of energy. |
| 96 | 13. Pipes and other equipment used to transmit hot |
| 97 | geothermal water to a dwelling or structure from a geothermal |
| 98 | deposit. |
| 99 | (2) In determining the assessed value of real property |
| 100 | used for residential purposes, the just value of changes or |
| 101 | improvements made for the purpose of improving a property's |
| 102 | resistance to wind damage and the just value of renewable energy |
| 103 | source devices may not be added to the assessed value as limited |
| 104 | by s. 193.155 or s. 193.1554. |
| 105 | (3) The assessed value of real property used for |
| 106 | residential purposes may not exceed the total just value of the |
| 107 | property minus the combined just values of changes or |
| 108 | improvements made for the purpose of improving a property's |
| 109 | resistance to wind damage and renewable energy source devices. |
| 110 | (4) This section applies to new and existing construction |
| 111 | used for residential purposes. |
| 112 | (5) A parcel of residential property may not be assessed |
| 113 | pursuant to this section unless an application is filed on or |
| 114 | before March 1 of the first year the property owner claims the |
| 115 | assessment reduction for renewable energy source devices or |
| 116 | changes or improvements made for the purpose of improving the |
| 117 | property's resistance to wind damage. The property appraiser may |
| 118 | require the taxpayer or the taxpayer's representative to furnish |
| 119 | the property appraiser such information as may reasonably be |
| 120 | required to establish the just value of the renewable energy |
| 121 | source devices or changes or improvements made for the purpose |
| 122 | of improving the property's resistance to wind damage. Failure |
| 123 | to make timely application by March 1 constitutes a waiver of |
| 124 | the property owner to have his or her assessment calculated |
| 125 | under this section. However, an applicant who fails to file an |
| 126 | application by March 1 may file a late application and may file, |
| 127 | pursuant to s. 194.011(3), a petition with the value adjustment |
| 128 | board requesting assessment under this section. The petition |
| 129 | must be filed on or before the 25th day after the mailing of the |
| 130 | notice by the property appraiser as provided in s. 194.011(1). |
| 131 | Notwithstanding s. 194.013, the applicant must pay a |
| 132 | nonrefundable fee of $15 upon filing the petition. Upon |
| 133 | reviewing the petition, if the property is qualified to be |
| 134 | assessed under this section and the property owner demonstrates |
| 135 | particular extenuating circumstances judged by the property |
| 136 | appraiser or the value adjustment board to warrant granting |
| 137 | assessment under this section, the property appraiser shall |
| 138 | calculate the assessment pursuant to this section. |
| 139 | Section 3. Paragraph (a) of subsection (4) of section |
| 140 | 193.155, Florida Statutes, is amended to read: |
| 141 | 193.155 Homestead assessments.-Homestead property shall be |
| 142 | assessed at just value as of January 1, 1994. Property receiving |
| 143 | the homestead exemption after January 1, 1994, shall be assessed |
| 144 | at just value as of January 1 of the year in which the property |
| 145 | receives the exemption unless the provisions of subsection (8) |
| 146 | apply. |
| 147 | (4)(a) Except as provided in paragraph (b) and s. 193.624, |
| 148 | changes, additions, or improvements to homestead property shall |
| 149 | be assessed at just value as of the first January 1 after the |
| 150 | changes, additions, or improvements are substantially completed. |
| 151 | Section 4. Subsection (1), paragraph (a) of subsection |
| 152 | (6), and subsection (7) of section 193.1554, Florida Statutes, |
| 153 | are amended to read: |
| 154 | 193.1554 Assessment of nonhomestead residential property.- |
| 155 | (1) As used in this section, the term: |
| 156 | (a) "Nonhomestead residential property" means residential |
| 157 | real property that contains nine or fewer dwelling units, |
| 158 | including vacant property zoned and platted for residential use, |
| 159 | and that does not receive the exemption under s. 196.031. |
| 160 | (b) "Placed on the tax roll" means the year any property, |
| 161 | as of January 1, becomes eligible for assessment under this |
| 162 | section and becomes a nonhomestead property or a property that |
| 163 | has been combined or divided. |
| 164 | (6)(a) Except as provided in paragraph (b) and s. 193.624, |
| 165 | changes, additions, or improvements to nonhomestead residential |
| 166 | property shall be assessed at just value as of the first January |
| 167 | 1 after the changes, additions, or improvements are |
| 168 | substantially completed. |
| 169 | (7) Any property that is combined or divided after January |
| 170 | 1 and included as a combined or divided parcel on the tax notice |
| 171 | shall receive any current assessment limitation on the newly |
| 172 | combined parcel or parcels or have any current assessment |
| 173 | limitation apportioned among the newly created parcel or |
| 174 | parcels, and the property may not be considered combined or |
| 175 | divided for purposes of this section until the following January |
| 176 | 1, when the parcel or parcels shall be considered placed on the |
| 177 | tax roll as a combined or divided parcel or parcels. Any |
| 178 | increase in the value of property assessed under this section |
| 179 | which is attributable to combining or dividing parcels shall be |
| 180 | assessed at just value, and the just value shall be apportioned |
| 181 | among the parcels created. |
| 182 | Section 5. Subsections (1) and (7) of section 193.1555, |
| 183 | Florida Statutes, are amended to read: |
| 184 | 193.1555 Assessment of certain residential and |
| 185 | nonresidential real property.- |
| 186 | (1) As used in this section, the term: |
| 187 | (a) "Nonresidential real property" means real property |
| 188 | that is not subject to the assessment limitations set forth in |
| 189 | s. 4(a), (c), (d), or (g), Art. VII of the State Constitution. |
| 190 | (b) "Improvement" means an addition or change to land or |
| 191 | buildings which increases their value and is more than a repair |
| 192 | or a replacement. |
| 193 | (c) "Placed on the tax roll" means the year any property, |
| 194 | as of January 1, becomes eligible for assessment under this |
| 195 | section and becomes a nonhomestead property or a property that |
| 196 | has been combined or divided. |
| 197 | (7) Any property that is combined or divided after January |
| 198 | 1 and included as a combined or divided parcel on the tax notice |
| 199 | shall receive any current assessment limitation on the newly |
| 200 | combined parcel or parcels or have any current assessment |
| 201 | limitation apportioned among the newly created parcel or |
| 202 | parcels, and the property may not be considered combined or |
| 203 | divided for purposes of this section until the following January |
| 204 | 1, when the parcel or parcels shall be considered placed on the |
| 205 | tax roll as a combined or divided parcel or parcels. Any |
| 206 | increase in the value of property assessed under this section |
| 207 | which is attributable to combining or dividing parcels shall be |
| 208 | assessed at just value, and the just value shall be apportioned |
| 209 | among the parcels created. |
| 210 | Section 6. Subsections (14) through (20) of section |
| 211 | 196.012, Florida Statutes, are amended to read: |
| 212 | 196.012 Definitions.-For the purpose of this chapter, the |
| 213 | following terms are defined as follows, except where the context |
| 214 | clearly indicates otherwise: |
| 215 | (14) "Renewable energy source device" or "device" means |
| 216 | any of the following equipment which, when installed in |
| 217 | connection with a dwelling unit or other structure, collects, |
| 218 | transmits, stores, or uses solar energy, wind energy, or energy |
| 219 | derived from geothermal deposits: |
| 220 | (a) Solar energy collectors. |
| 221 | (b) Storage tanks and other storage systems, excluding |
| 222 | swimming pools used as storage tanks. |
| 223 | (c) Rockbeds. |
| 224 | (d) Thermostats and other control devices. |
| 225 | (e) Heat exchange devices. |
| 226 | (f) Pumps and fans. |
| 227 | (g) Roof ponds. |
| 228 | (h) Freestanding thermal containers. |
| 229 | (i) Pipes, ducts, refrigerant handling systems, and other |
| 230 | equipment used to interconnect such systems; however, |
| 231 | conventional backup systems of any type are not included in this |
| 232 | definition. |
| 233 | (j) Windmills. |
| 234 | (k) Wind-driven generators. |
| 235 | (l) Power conditioning and storage devices that use wind |
| 236 | energy to generate electricity or mechanical forms of energy. |
| 237 | (m) Pipes and other equipment used to transmit hot |
| 238 | geothermal water to a dwelling or structure from a geothermal |
| 239 | deposit. |
| 240 | (14)(15) "New business" means: |
| 241 | (a)1. A business or organization establishing 10 or more |
| 242 | new jobs to employ 10 or more full-time employees in this state, |
| 243 | paying an average wage for such new jobs that is above the |
| 244 | average wage in the area, which principally engages in any one |
| 245 | or more of the following operations: |
| 246 | a. Manufactures, processes, compounds, fabricates, or |
| 247 | produces for sale items of tangible personal property at a fixed |
| 248 | location and which comprises an industrial or manufacturing |
| 249 | plant; or |
| 250 | b. Is a target industry business as defined in s. |
| 251 | 288.106(2)(t); |
| 252 | 2. A business or organization establishing 25 or more new |
| 253 | jobs to employ 25 or more full-time employees in this state, the |
| 254 | sales factor of which, as defined by s. 220.15(5), for the |
| 255 | facility with respect to which it requests an economic |
| 256 | development ad valorem tax exemption is less than 0.50 for each |
| 257 | year the exemption is claimed; or |
| 258 | 3. An office space in this state owned and used by a |
| 259 | business or organization newly domiciled in this state; provided |
| 260 | such office space houses 50 or more full-time employees of such |
| 261 | business or organization; provided that such business or |
| 262 | organization office first begins operation on a site clearly |
| 263 | separate from any other commercial or industrial operation owned |
| 264 | by the same business or organization. |
| 265 | (b) Any business or organization located in an enterprise |
| 266 | zone or brownfield area that first begins operation on a site |
| 267 | clearly separate from any other commercial or industrial |
| 268 | operation owned by the same business or organization. |
| 269 | (c) A business or organization that is situated on |
| 270 | property annexed into a municipality and that, at the time of |
| 271 | the annexation, is receiving an economic development ad valorem |
| 272 | tax exemption from the county under s. 196.1995. |
| 273 | (15)(16) "Expansion of an existing business" means: |
| 274 | (a)1. A business or organization establishing 10 or more |
| 275 | new jobs to employ 10 or more full-time employees in this state, |
| 276 | paying an average wage for such new jobs that is above the |
| 277 | average wage in the area, which principally engages in any of |
| 278 | the operations referred to in subparagraph (15)(a)1.; or |
| 279 | 2. A business or organization establishing 25 or more new |
| 280 | jobs to employ 25 or more full-time employees in this state, the |
| 281 | sales factor of which, as defined by s. 220.15(5), for the |
| 282 | facility with respect to which it requests an economic |
| 283 | development ad valorem tax exemption is less than 0.50 for each |
| 284 | year the exemption is claimed; provided that such business |
| 285 | increases operations on a site located within the same county, |
| 286 | municipality, or both colocated with a commercial or industrial |
| 287 | operation owned by the same business or organization under |
| 288 | common control with the same business or organization, resulting |
| 289 | in a net increase in employment of not less than 10 percent or |
| 290 | an increase in productive output or sales of not less than 10 |
| 291 | percent. |
| 292 | (b) Any business or organization located in an enterprise |
| 293 | zone or brownfield area that increases operations on a site |
| 294 | located within the same zone or area colocated with a commercial |
| 295 | or industrial operation owned by the same business or |
| 296 | organization under common control with the same business or |
| 297 | organization. |
| 298 | (16)(17) "Permanent resident" means a person who has |
| 299 | established a permanent residence as defined in subsection (17) |
| 300 | (18). |
| 301 | (17)(18) "Permanent residence" means that place where a |
| 302 | person has his or her true, fixed, and permanent home and |
| 303 | principal establishment to which, whenever absent, he or she has |
| 304 | the intention of returning. A person may have only one permanent |
| 305 | residence at a time; and, once a permanent residence is |
| 306 | established in a foreign state or country, it is presumed to |
| 307 | continue until the person shows that a change has occurred. |
| 308 | (18)(19) "Enterprise zone" means an area designated as an |
| 309 | enterprise zone pursuant to s. 290.0065. This subsection expires |
| 310 | on the date specified in s. 290.016 for the expiration of the |
| 311 | Florida Enterprise Zone Act. |
| 312 | (19)(20) "Ex-servicemember" means any person who has |
| 313 | served as a member of the United States Armed Forces on active |
| 314 | duty or state active duty, a member of the Florida National |
| 315 | Guard, or a member of the United States Reserve Forces. |
| 316 | Section 7. Subsection (2) of section 196.121, Florida |
| 317 | Statutes, is amended to read: |
| 318 | 196.121 Homestead exemptions; forms.- |
| 319 | (2) The forms shall require the taxpayer to furnish |
| 320 | certain information to the property appraiser for the purpose of |
| 321 | determining that the taxpayer is a permanent resident as defined |
| 322 | in s. 196.012(16)(17). Such information may include, but need |
| 323 | not be limited to, the factors enumerated in s. 196.015. |
| 324 | Section 8. Subsections (6) and (8), paragraph (d) of |
| 325 | subsection (9), and paragraph (d) of subsection (11) of section |
| 326 | 196.1995, Florida Statutes, are amended to read: |
| 327 | 196.1995 Economic development ad valorem tax exemption.- |
| 328 | (6) With respect to a new business as defined by s. |
| 329 | 196.012(14)(15)(c), the municipality annexing the property on |
| 330 | which the business is situated may grant an economic development |
| 331 | ad valorem tax exemption under this section to that business for |
| 332 | a period that will expire upon the expiration of the exemption |
| 333 | granted by the county. If the county renews the exemption under |
| 334 | subsection (7), the municipality may also extend its exemption. |
| 335 | A municipal economic development ad valorem tax exemption |
| 336 | granted under this subsection may not extend beyond the duration |
| 337 | of the county exemption. |
| 338 | (8) Any person, firm, or corporation which desires an |
| 339 | economic development ad valorem tax exemption shall, in the year |
| 340 | the exemption is desired to take effect, file a written |
| 341 | application on a form prescribed by the department with the |
| 342 | board of county commissioners or the governing authority of the |
| 343 | municipality, or both. The application shall request the |
| 344 | adoption of an ordinance granting the applicant an exemption |
| 345 | pursuant to this section and shall include the following |
| 346 | information: |
| 347 | (a) The name and location of the new business or the |
| 348 | expansion of an existing business; |
| 349 | (b) A description of the improvements to real property for |
| 350 | which an exemption is requested and the date of commencement of |
| 351 | construction of such improvements; |
| 352 | (c) A description of the tangible personal property for |
| 353 | which an exemption is requested and the dates when such property |
| 354 | was or is to be purchased; |
| 355 | (d) Proof, to the satisfaction of the board of county |
| 356 | commissioners or the governing authority of the municipality, |
| 357 | that the applicant is a new business or an expansion of an |
| 358 | existing business, as defined in s. 196.012(15) or (16); |
| 359 | (e) The number of jobs the applicant expects to create |
| 360 | along with the average wage of the jobs and whether the jobs are |
| 361 | full-time or part-time; |
| 362 | (f) The expected time schedule for job creation; and |
| 363 | (g) Other information deemed necessary or appropriate by |
| 364 | the department, county, or municipality. |
| 365 | (9) Before it takes action on the application, the board |
| 366 | of county commissioners or the governing authority of the |
| 367 | municipality shall deliver a copy of the application to the |
| 368 | property appraiser of the county. After careful consideration, |
| 369 | the property appraiser shall report the following information to |
| 370 | the board of county commissioners or the governing authority of |
| 371 | the municipality: |
| 372 | (d) A determination as to whether the property for which |
| 373 | an exemption is requested is to be incorporated into a new |
| 374 | business or the expansion of an existing business, as defined in |
| 375 | s. 196.012(15) or (16), or into neither, which determination the |
| 376 | property appraiser shall also affix to the face of the |
| 377 | application. Upon the request of the property appraiser, the |
| 378 | department shall provide to him or her such information as it |
| 379 | may have available to assist in making such determination. |
| 380 | (11) An ordinance granting an exemption under this section |
| 381 | shall be adopted in the same manner as any other ordinance of |
| 382 | the county or municipality and shall include the following: |
| 383 | (d) A finding that the business named in the ordinance |
| 384 | meets the requirements of s. 196.012(14)(15) or (15)(16). |
| 385 | Section 9. Section 196.175, Florida Statutes, is repealed. |
| 386 | Section 10. This act shall take effect July 1, 2012, and |
| 387 | applies to assessments beginning January 1, 2013. |