Florida Senate - 2025                             CS for SB 1512
       
       
        
       By the Committee on Finance and Tax; and Senator Avila
       
       
       
       
       
       593-03609-25                                          20251512c1
    1                        A bill to be entitled                      
    2         An act relating to a property tax exemption and
    3         assessment limitation on long-term leased property;
    4         creating s. 193.1553, F.S.; providing that property
    5         that receives a certain tax exemption shall be
    6         assessed in a specified manner; providing that
    7         changes, additions, and improvements to such
    8         properties shall be assessed in a specified manner;
    9         providing exceptions and alternative assessments;
   10         providing construction; requiring property that no
   11         longer meets eligibility requirements to be assessed
   12         in an alternative manner; amending s. 196.011, F.S.;
   13         requiring the submission of an application containing
   14         specified information before receiving a specified tax
   15         exemption; amending s. 196.034, F.S.; providing
   16         specified tax exemptions for property that meets
   17         certain eligibility requirements; providing that
   18         certain damaged or destroyed property is eligible for
   19         the exemption if specified conditions are met;
   20         providing that if such conditions are not met, such
   21         property shall be considered abandoned for a specified
   22         purpose; amending ss. 193.1554 and 194.032, F.S.;
   23         conforming provisions to changes made by the act;
   24         providing a contingent effective date.
   25          
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Section 193.1553, Florida Statutes, is created
   29  to read:
   30         193.1553Assessment of certain residential property subject
   31  to a long-term lease.—
   32         (1)Property that receives the exemption under s. 196.034
   33  shall be assessed under this section.
   34         (2)Except as provided in subsection (4), property that
   35  meets the conditions of subsection (1) shall be assessed
   36  pursuant to this section as of January 1 of any year for which
   37  the property is eligible for assessment under this section,
   38  using the prior year’s assessed value as the basis for any
   39  change in assessment. Any change resulting from such assessment
   40  shall not exceed the lower of the following:
   41         (a)Three percent of the assessed value of the property for
   42  the prior year; or
   43         (b)The percentage change in the Consumer Price Index for
   44  All Urban Consumers, U.S. City Average, all items 1967=100, or
   45  successor reports for the preceding calendar year as initially
   46  reported by the United States Department of Labor, Bureau of
   47  Labor Statistics.
   48         (3)If the assessed value of the property as calculated
   49  under subsection (2) exceeds the just value, the assessed value
   50  of the property shall be lowered to the just value of the
   51  property.
   52         (4)Property assessed under this section shall be assessed
   53  at just value as of January 1 of the year following a change of
   54  ownership, or as of January 1 of the year following abandonment
   55  of homestead on a property that becomes eligible for assessment
   56  under this section, but no sooner than the January 1 following
   57  the certification to the property appraiser required by s.
   58  193.155(8)(i)2. Thereafter, the annual changes in the assessed
   59  value of the property are subject to the limitations in
   60  subsections (2) and (3). For purposes of this subsection, the
   61  term “change of ownership” means any sale, foreclosure, or
   62  transfer of legal title or beneficial title in equity to any
   63  person, except if any of the provisions of s. 193.155(3)(a)
   64  apply.
   65         (5)(a)Except as provided in paragraph (b) and s. 193.624,
   66  changes, additions, or improvements to property subject to this
   67  section shall be assessed at just value as of the first January
   68  1 after the changes, additions, or improvements are
   69  substantially completed.
   70         (b)1.Changes, additions, or improvements that replace all
   71  or a portion of property assessed under this section, including
   72  ancillary improvements, that are damaged or destroyed by
   73  misfortune or calamity shall be assessed upon substantial
   74  completion as provided in this paragraph. Such assessment must
   75  be calculated using the property’s assessed value as of the
   76  January 1 immediately before the date on which the damage or
   77  destruction was sustained, subject to the assessment limitations
   78  in subsections (2) and (3), when:
   79         a.The square footage of the property as changed or
   80  improved does not exceed 110 percent of the square footage of
   81  the property before the damage or destruction; or
   82         b.The total square footage of the property as changed or
   83  improved does not exceed 1,500 square feet.
   84         2.The property’s assessed value must be increased by the
   85  just value of that portion of the changed or improved property
   86  which is in excess of 110 percent of the square footage of the
   87  property before the damage or destruction or of that portion
   88  exceeding 1,500 square feet.
   89         3.Property damaged or destroyed by misfortune or calamity
   90  which, after being changed or improved, has a square footage of
   91  less than 100 percent of the property’s total square footage
   92  before the damage or destruction shall be assessed pursuant to
   93  subsection (6).
   94         4.Changes, additions, or improvements assessed pursuant to
   95  this paragraph must be reassessed pursuant to subsection (2) in
   96  subsequent years. This paragraph applies to changes, additions,
   97  or improvements commenced within 5 years after the January 1
   98  following the damage or destruction of the property.
   99         (c)Changes, additions, or improvements include
  100  improvements made to common areas or other improvements made to
  101  property other than to the property by the owner or by an owner
  102  association, which improvements directly benefit the property.
  103  Such changes, additions, or improvements shall be assessed at
  104  just value, and the just value shall be apportioned among the
  105  parcels benefiting from the improvement.
  106         (6)When property is destroyed or removed and not replaced,
  107  the assessed value of the parcel shall be reduced by the
  108  assessed value attributable to the destroyed or removed
  109  property.
  110         (7)Only property that meets the conditions of subsection
  111  (1) is subject to this section. Any portion of property that is
  112  assessed solely on the basis of character or use pursuant to s.
  113  193.461 or s. 193.501, or assessed pursuant to s. 193.505, is
  114  not subject to this section.
  115         (8)(a)If, after meeting the conditions of subsection (1)
  116  and receiving the benefit of the assessment limitation in
  117  subsections (2) and (3), the property does not meet the
  118  conditions of subsection (1) on January 1 of any subsequent
  119  year, the property shall instead be assessed pursuant to s.
  120  193.155(1) and (2) or s. 193.1554(3) and (4), as applicable,
  121  beginning with such year.
  122         1.Any change in assessment in the first year the property
  123  is assessed pursuant to s. 193.1554 shall use the most recent
  124  year’s assessed value under this section as the basis for
  125  adjustment, and may not revert to just value, unless such
  126  property experiences a change of ownership or control as
  127  provided in s. 193.1554.
  128         2.Any change in assessment in the first year the property
  129  is assessed pursuant to s. 193.155 shall use the just value of
  130  the property, as adjusted pursuant to s. 193.155(8), if
  131  applicable.
  132         (b)1.If the property meets the conditions of subsection
  133  (1) on January 1 of a subsequent year, this section shall apply
  134  beginning with such year, and the application of the limitation
  135  in subsection (2) shall use the most recent year’s assessed
  136  value as the basis for adjustment if the property was assessed
  137  in the most recent year pursuant to s. 193.1554.
  138         2.If the property meets the conditions of subsection (1)
  139  on January 1 of a subsequent year and the property was assessed
  140  as the homestead of the owner in the prior year pursuant to s.
  141  193.155, then the application of the limitation in subsection
  142  (2) shall use the just value of the property, rather than the
  143  prior year’s assessment, for the first year’s assessment
  144  limitation in subsection (2). A property that was abandoned as a
  145  homestead is only eligible under this section if the property
  146  appraiser in the county in which the abandoned homestead
  147  property is located provides the certification to the property
  148  appraiser in the county in which the new homestead is located as
  149  required by s. 193.155(8)(i)2., stating that the property has
  150  been or will be reassessed at just value.
  151         Section 2. Paragraph (b) of subsection (1) of section
  152  196.011, Florida Statutes, is amended, and subsection (14) is
  153  added to that section, to read:
  154         196.011 Annual application required for exemption.—
  155         (1)
  156         (b) The form to apply for an exemption under s. 196.031, s.
  157  196.034, s. 196.081, s. 196.091, s. 196.101, s. 196.102, s.
  158  196.173, or s. 196.202 must include a space for the applicant to
  159  list the social security number of the applicant and of the
  160  applicant’s spouse, if any. If an applicant files a timely and
  161  otherwise complete application, and omits the required social
  162  security numbers, the application is incomplete. In that event,
  163  the property appraiser shall contact the applicant, who may
  164  refile a complete application by April 1. Failure to file a
  165  complete application by that date constitutes a waiver of the
  166  exemption privilege for that year, except as provided in
  167  subsection (7) or subsection (9).
  168         (14)Notwithstanding paragraph (7)(a), an applicant who is
  169  eligible to receive an exemption under s. 196.034 must file an
  170  application each year by March 1. Such application must include
  171  the address of the property at which the owner currently
  172  receives a homestead exemption, and an executed copy of the
  173  lease for the property to be exempted under s. 196.034.
  174         Section 3. Section 196.034, Florida Statutes, is created to
  175  read:
  176         196.034Exemption of certain residential property subject
  177  to a long-term lease.—
  178         (1)(a)Property that meets the following conditions is
  179  entitled to an exemption from all taxation up to the assessed
  180  valuation of $25,000:
  181         1.The owner of the property holds the legal or equitable
  182  title to a separate parcel that receives the exemption under s.
  183  196.031 and such parcel is his or her permanent residence.
  184         2.As of January 1 of the taxable year, the property is
  185  rented by the owner to one or more persons for residential use
  186  under a bona fide written lease that has a duration of 6 months
  187  or more.
  188         3.The property would otherwise qualify for a homestead
  189  exemption under s. 196.031 if the property were the owner’s
  190  primary residence.
  191         4.The property is not eligible for assessment under s.
  192  193.1555.
  193         5.The property is classified under s. 195.073(1)(a)1., 2.,
  194  or 4.
  195         (b)A person is entitled to the exemption provided by this
  196  section on one separate parcel of real estate.
  197         (c)Every property that qualifies to receive the exemption
  198  provided in paragraph (a) is entitled to an additional exemption
  199  of up to $25,000 on the assessed valuation greater than $50,000
  200  for all levies other than school district levies.
  201         (d)Any property that does not meet the conditions of
  202  paragraph (a) for a given year may not receive the benefits
  203  provided in paragraphs (a) and (c) for such year unless
  204  subsection (2) applies, but the property may receive the
  205  benefits in paragraphs (a) and (c) in any future year for which
  206  all conditions in paragraph (a) are met.
  207         (2)For purposes of this section, when property exempted
  208  under this section is damaged or destroyed by misfortune or
  209  calamity and the property is uninhabitable on the January 1
  210  after the damage or destruction occurs, the property shall be
  211  considered to be subject to a long-term lease on January 1 and
  212  an existing exemption under this section shall continue if the
  213  property is otherwise qualified and if the property owner
  214  notifies the property appraiser that he or she intends to repair
  215  or rebuild the property and the existing or another lessee will
  216  resume residency after the property is repaired or rebuilt.
  217  Failure by the property owner to commence the repair or
  218  rebuilding of the property within 5 years after the January 1
  219  following the property’s damage or destruction constitutes
  220  abandonment of the property as exempt under this section. After
  221  the 5-year period, the expiration, lapse, nonrenewal, or
  222  revocation of a building permit issued to the property owner for
  223  such repairs or rebuilding also constitutes abandonment of the
  224  property under this section.
  225         Section 4. Subsection (1) of section 193.1554, Florida
  226  Statutes, is amended to read:
  227         193.1554 Assessment of nonhomestead residential property.—
  228         (1) As used in this section, the term “nonhomestead
  229  residential property” means residential real property that
  230  contains nine or fewer dwelling units, including vacant property
  231  zoned and platted for residential use, and that does not receive
  232  the exemption under s. 196.031 or s. 196.034.
  233         Section 5. Paragraph (a) of subsection (1) of section
  234  194.032, Florida Statutes, is amended to read:
  235         194.032 Hearing purposes; timetable.—
  236         (1)(a) The value adjustment board shall meet not earlier
  237  than 30 days and not later than 60 days after the mailing of the
  238  notice provided in s. 194.011(1); however, no board hearing
  239  shall be held before approval of all or any part of the
  240  assessment rolls by the Department of Revenue. The board shall
  241  meet for the following purposes:
  242         1. Hearing petitions relating to assessments filed pursuant
  243  to s. 194.011(3).
  244         2. Hearing complaints relating to homestead exemptions as
  245  provided for under s. 196.151.
  246         3. Hearing appeals from exemptions denied, or disputes
  247  arising from exemptions granted, upon the filing of exemption
  248  applications under s. 196.011.
  249         4. Hearing appeals concerning ad valorem tax deferrals and
  250  classifications.
  251         5. Hearing appeals from determinations that a change of
  252  ownership under s. 193.155(3), a change of ownership or control
  253  under s. 193.1553(4), s. 193.1554(5), or s. 193.1555(5), or a
  254  qualifying improvement under s. 193.1555(5) has occurred.
  255         Section 6. This act shall take effect on the effective date
  256  of the amendment to the State Constitution proposed by SJR 1510
  257  or a similar joint resolution having substantially the same
  258  specific intent and purpose, if such amendment is approved at
  259  the next general election.