Senate Bill 1748c1

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    Florida Senate - 1998                           CS for SB 1748

    By the Committee on Ways and Means; and Senator Thomas





    301-2242-98

  1                      A bill to be entitled

  2         An act relating to funds distributed to local

  3         governments; amending s. 236.081, F.S.;

  4         amending the prerequisites to excluding from

  5         the computation of district required local

  6         effort the assessed value of property that is

  7         the subject of litigation; creating s. 218.66,

  8         F.S.; providing for a special distribution of

  9         funds from the Local Government Half-cent Sales

10         Tax Clearing Trust Fund to a county or

11         municipality under certain conditions;

12         providing an effective date.

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

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16         Section 1.  Paragraph (d) of subsection (4) of section

17  236.081, Florida Statutes, as amended by section 1 of chapter

18  97-380, Laws of Florida, is amended to read:

19         236.081  Funds for operation of schools.--If the annual

20  allocation from the Florida Education Finance Program to each

21  district for operation of schools is not determined in the

22  annual appropriations act or the substantive bill implementing

23  the annual appropriations act, it shall be determined as

24  follows:

25         (4)  COMPUTATION OF DISTRICT REQUIRED LOCAL

26  EFFORT.--The Legislature shall prescribe the aggregate

27  required local effort for all school districts collectively as

28  an item in the General Appropriations Act for each fiscal

29  year. The amount that each district shall provide annually

30  toward the cost of the Florida Education Finance Program for

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    Florida Senate - 1998                           CS for SB 1748
    301-2242-98




  1  kindergarten through grade 12 programs shall be calculated as

  2  follows:

  3         (d)  Exclusion.--In those instances in which:

  4         1.  There is litigation either attacking the authority

  5  of the property appraiser to include certain property on the

  6  tax assessment roll as taxable property or contesting the

  7  assessed value of certain property on the tax assessment

  8  roll,; and

  9         2.  The assessed value of the property in contest

10  involves more than 6 10 percent of the total nonexempt

11  assessment roll,;

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13  the assessed value of the property in contest shall be

14  excluded from the taxable value for school purposes for

15  purposes of computing the district required local effort.

16         Section 2.  Section 218.66, Florida Statutes, is

17  created to read:

18         218.66  Special distributions for contested property

19  taxes.--

20         (1)  In the event that an action to contest a tax

21  assessment is brought by a taxpayer in a county or

22  municipality participating in the distribution of half-cent

23  sales tax proceeds pursuant to s. 218.61 and the difference

24  between the good-faith payment made by that taxpayer pursuant

25  to s. 194.171(3) and the taxes that would have been paid on

26  the property appraiser's tax assessment is greater than 6

27  percent of the total assessed taxes for the county or

28  municipality, the county or municipality qualifies for a

29  special distribution of funds from the Local Government

30  Half-cent Sales Tax Clearing Trust Fund as provided in this

31  section.

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    Florida Senate - 1998                           CS for SB 1748
    301-2242-98




  1         (2)  The determination of eligibility for the special

  2  distribution pursuant to this section and the amount of the

  3  distribution shall be calculated based on the total of

  4  district-wide millage levies by the county or municipality.

  5  The distribution shall be made upon application to the

  6  Department of Revenue by a qualified county or municipality in

  7  which the action to contest a tax assessment has not been

  8  resolved by July 1 of the year following the year in which the

  9  tax was assessed. Distributions shall be made prior to

10  September 30 of that year and shall be in an amount equal to

11  95 percent of the difference between the good faith payment by

12  the taxpayer and the taxes that would have been paid on the

13  property appraiser's tax assessment. Counties or

14  municipalities receiving such distributions must use the

15  revenue in the same manner prescribed for the ad valorem

16  revenue which the distribution replaces. In calculating the

17  distribution to participating county and municipal governments

18  pursuant to s. 218.61, the amount earmarked for distribution

19  within each county pursuant to s. 218.61(2) shall be reduced

20  by a portion of the amount required for the special

21  distribution equal to its proportionate share of total moneys

22  remitted for distribution by sales tax dealers located in all

23  counties.

24         (3)  Upon resolution of the action to contest the tax

25  assessment, any county or municipality which received a

26  special distribution pursuant to this section shall

27  immediately repay to the Local Government Half-cent Sales Tax

28  Clearing Trust Fund the full amount of any tax revenues

29  received as a result of the resolution. In calculating the

30  distribution to participating county and municipal governments

31  pursuant to s. 218.61, the amount earmarked for distribution

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    Florida Senate - 1998                           CS for SB 1748
    301-2242-98




  1  within each county pursuant to s. 218.61(2) shall be increased

  2  by a portion of the amount of such repayment equal to its

  3  proportionate share of total moneys remitted for distribution

  4  by sales tax dealers located in all counties.

  5         Section 3.  This act shall take effect upon becoming a

  6  law.

  7

  8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  9                             SB 1748

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11  The committee substitute, in addition to provisions in the
    original bill, establishes a special distribution to cities
12  and counties from the Local Government Half-cent Sales Tax
    Clearing Trust Fund in the event an action to contest a
13  property tax assessment results in a difference between the
    property appraiser's assessment and the good faith payment by
14  the taxpayer is greater than 6 percent.

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