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A bill to be entitled

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An act relating to homestead property assessments;

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amending s. 193.155, F.S.; providing additional

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limitations on annual changes in assessments of homestead

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real property; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 193.155, Florida Statutes, is amended to

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read:

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     193.155 Homestead assessments.--Homestead property shall be

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assessed at just value as of January 1, 1994. Property receiving

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the homestead exemption after January 1, 1994, shall be assessed

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at just value as of January 1 of the year in which the property

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receives the exemption.

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     (1) Beginning in 1995, or the year after following the year

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the property receives a homestead exemption, whichever is later,

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the property shall be reassessed annually on January 1 as

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follows:

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     (a) If the just value of the homestead property decreases

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from the prior year, the change in the assessment shall decrease

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by the percentage decrease in just value.

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     (b) If the just value of the homestead property remains the

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same from the prior year, the assessment shall not change.

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     (c) If the just value of the homestead property increases

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from the prior year, the. Any change resulting from such

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reassessment shall not exceed the lower of the following:

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     1.(a) Three percent of the assessed value of the property

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for the prior year; or

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     2.(b) The percentage change in the Consumer Price Index for

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All Urban Consumers, U.S. City Average, all items 1967=100, or

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successor reports for the preceding calendar year as initially

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reported by the United States Department of Labor, Bureau of

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Labor Statistics.

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     (2)  If the assessed value of the property as calculated

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under subsection (1) exceeds the just value, the assessed value

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of the property shall be lowered to the just value of the

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property.

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     (3)  Except as provided in this subsection, property

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assessed under this section shall be assessed at just value as of

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January 1 of the year following a change of ownership.

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Thereafter, the annual changes in the assessed value of the

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property are subject to the limitations in subsections (1) and

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(2). For the purpose of this section, a change in ownership means

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any sale, foreclosure, or transfer of legal title or beneficial

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title in equity to any person, except as provided in this

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subsection. There is no change of ownership if:

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     (a)  Subsequent to the change or transfer, the same person

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is entitled to the homestead exemption as was previously entitled

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and:

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     1.  The transfer of title is to correct an error;

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     2.  The transfer is between legal and equitable title; or

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     3.  The change or transfer is by means of an instrument in

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which the owner is listed as both grantor and grantee of the real

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property and one or more other individuals are additionally named

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as grantee. However, if any individual who is additionally named

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as a grantee applies for a homestead exemption on the property,

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the application shall be considered a change of ownership;

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     (b)  The transfer is between husband and wife, including a

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transfer to a surviving spouse or a transfer due to a dissolution

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of marriage;

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     (c)  The transfer occurs by operation of law under s.

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732.4015; or

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     (d)  Upon the death of the owner, the transfer is between

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the owner and another who is a permanent resident and is legally

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or naturally dependent upon the owner.

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     (4)(a)  Except as provided in paragraph (b), changes,

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additions, or improvements to homestead property shall be

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assessed at just value as of the first January 1 after the

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changes, additions, or improvements are substantially completed.

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     (b)  Changes, additions, or improvements that replace all or

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a portion of homestead property damaged or destroyed by

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misfortune or calamity shall not increase the homestead

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property's assessed value when the square footage of the

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homestead property as changed or improved does not exceed 110

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percent of the square footage of the homestead property before

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the damage or destruction. Additionally, the homestead property's

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assessed value shall not increase if the total square footage of

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the homestead property as changed or improved does not exceed

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1,500 square feet. Changes, additions, or improvements that do

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not cause the total to exceed 110 percent of the total square

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footage of the homestead property before the damage or

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destruction or that do not cause the total to exceed 1,500 total

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square feet shall be reassessed as provided under subsection (1).

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The homestead property's assessed value shall be increased by the

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just value of that portion of the changed or improved homestead

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property which is in excess of 110 percent of the square footage

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of the homestead property before the damage or destruction or of

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that portion exceeding 1,500 square feet. Homestead property

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damaged or destroyed by misfortune or calamity which, after being

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changed or improved, has a square footage of less than 100

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percent of the homestead property's total square footage before

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the damage or destruction shall be assessed pursuant to

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subsection (5). This paragraph applies to changes, additions, or

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improvements commenced within 3 years after the January 1

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following the damage or destruction of the homestead.

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     (c)  Changes, additions, or improvements that replace all or

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a portion of real property that was damaged or destroyed by

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misfortune or calamity shall be assessed upon substantial

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completion as if such damage or destruction had not occurred and

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in accordance with paragraph (b) if the owner of such property:

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     1.  Was permanently residing on such property when the

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damage or destruction occurred;

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     2.  Was not entitled to receive homestead exemption on such

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property as of January 1 of that year; and

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     3.  Applies for and receives homestead exemption on such

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property the following year.

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     (d)  Changes, additions, or improvements include

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improvements made to common areas or other improvements made to

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property other than to the homestead property by the owner or by

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an owner association, which improvements directly benefit the

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homestead property. Such changes, additions, or improvements

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shall be assessed at just value, and the just value shall be

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apportioned among the parcels benefiting from the improvement.

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     (5)  When property is destroyed or removed and not replaced,

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the assessed value of the parcel shall be reduced by the assessed

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value attributable to the destroyed or removed property.

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     (6)  Only property that receives a homestead exemption is

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subject to this section. No portion of property that is assessed

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solely on the basis of character or use pursuant to s. 193.461 or

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s. 193.501, or assessed pursuant to s. 193.505, is subject to

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this section. When property is assessed under s. 193.461, s.

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193.501, or s. 193.505 and contains a residence under the same

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ownership, the portion of the property consisting of the

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residence and curtilage must be assessed separately, pursuant to

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s. 193.011, for the assessment to be subject to the limitation in

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this section.

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     (7)  If a person received a homestead exemption limited to

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that person's proportionate interest in real property, the

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provisions of this section apply only to that interest.

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     (8)  Erroneous assessments of homestead property assessed

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under this section may be corrected in the following manner:

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     (a)  If errors are made in arriving at any assessment under

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this section due to a material mistake of fact concerning an

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essential characteristic of the property, the just value and

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assessed value must be recalculated for every such year,

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including the year in which the mistake occurred.

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     (b)  If changes, additions, or improvements are not assessed

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at just value as of the first January 1 after they were

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substantially completed, the property appraiser shall determine

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the just value for such changes, additions, or improvements for

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the year they were substantially completed. Assessments for

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subsequent years shall be corrected, applying this section if

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applicable.

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     (c)  If back taxes are due pursuant to s. 193.092, the

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corrections made pursuant to this subsection shall be used to

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calculate such back taxes.

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     (9)  If the property appraiser determines that for any year

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or years within the prior 10 years a person who was not entitled

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to the homestead property assessment limitation granted under

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this section was granted the homestead property assessment

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limitation, the property appraiser making such determination

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shall record in the public records of the county a notice of tax

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lien against any property owned by that person in the county, and

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such property must be identified in the notice of tax lien. Such

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property that is situated in this state is subject to the unpaid

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taxes, plus a penalty of 50 percent of the unpaid taxes for each

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year and 15 percent interest per annum. However, when a person

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entitled to exemption pursuant to s. 196.031 inadvertently

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receives the limitation pursuant to this section following a

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change of ownership, the assessment of such property must be

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corrected as provided in paragraph (8)(a), and the person need

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not pay the unpaid taxes, penalties, or interest.

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     Section 2.  This act shall take effect January 1, 2009.