Senate Bill 0740

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    Florida Senate - 1998                                   SB 740

    By Senator Dudley





    25-163-98

  1                      A bill to be entitled

  2         An act providing equity in taxation; providing

  3         for partial-year assessments of real property

  4         for purposes of ad valorem taxation; providing

  5         legislative intent; amending s. 192.001, F.S.;

  6         providing definitions; creating s. 192.039,

  7         F.S.; providing for partial-year real property

  8         assessments; providing formulas for calculating

  9         ad valorem taxes to be levied on real property

10         that is assessed for a partial year; requiring

11         such properties and the tax thereupon to be

12         included in computing rolled-back millage under

13         s. 200.065, F.S.; amending s. 192.042, F.S.;

14         amending the standards for calculating just

15         value to conform to the provisions for

16         partial-year assessment of real property;

17         providing for sharing the costs of implementing

18         partial-year assessments; creating s. 193.078,

19         F.S.; providing for notice of substantially

20         destroyed property; amending s. 193.114, F.S.;

21         amending provisions relating to the preparation

22         of assessment rolls, to conform to this act;

23         amending s. 195.027, F.S.; providing for the

24         Department of Revenue to adopt rules concerning

25         returns for property that is subject to

26         partial-year assessment; amending s. 196.011,

27         F.S.; amending provisions relating to the

28         annual application for the homestead tax

29         exemption, to conform; amending s. 197.3635,

30         F.S.; amending provisions relating to

31         requirements for a combined notice of ad

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  1         valorem taxes and non-ad valorem assessments,

  2         to conform; creating s. 197.3645, F.S.;

  3         providing criteria that must be met before a

  4         separate notice may be mailed for partial-year

  5         ad valorem taxes; amending s. 200.065, F.S.,

  6         relating to computing the "rolled-back rate,"

  7         to conform; creating s. 200.0701, F.S.;

  8         providing for notice of partial-year assessment

  9         to be delivered to taxpayers; allowing the

10         notice, at the discretion of the property

11         appraiser, to be separate or combined with the

12         notice required in s. 200.069, F.S.; providing

13         for the date of initial application of this

14         act; amending s. 212.08, F.S.; conforming a

15         crossreference; amending ss. 163.387, 197.102,

16         197.122, F.S.; amending provisions relating to

17         redevelopment trust funds, definitions used in

18         ch. 197, F.S., and provisions relating to tax

19         liens, to provide for the date on which a tax

20         lien attaches if the lien relates to property

21         on which partial-year assessment is imposed;

22         providing a contingent effective date.

23

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

25

26         Section 1.  The Legislature determines that this act

27  fulfills an important state interest by establishing greater

28  tax equity among property owners.  The act modifies the ad

29  valorem assessment process to ensure that all real-property

30  owners pay ad valorem taxes on property that is or can be used

31  for the purpose for which it was constructed or acquired.

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  1         Section 2.  Subsections (20) and (21) are added to

  2  section 192.001, Florida Statutes, to read:

  3         192.001  Definitions.--All definitions set out in

  4  chapters 1 and 200 that are applicable to this part are

  5  included herein. In addition, the following definitions shall

  6  apply in the imposition of ad valorem taxes:

  7         (20)  "Substantially completed," as applied to real

  8  property, means that an improvement to the real property or a

  9  self-sufficient unit within the real property can be used for

10  the purpose for which it was constructed.  As used in this

11  subsection, the term "improvement to real property" includes

12  both new construction and additions.

13         (21)  "Substantially destroyed," as applied to real

14  property, means that the real property cannot be used for the

15  purpose for which it was constructed, due to the occurrence of

16  a natural disaster or catastrophic event, including, but not

17  limited to, a fire, flood, severe windstorm, or riotous act.

18         Section 3.  Section 192.039, Florida Statutes, is

19  created to read:

20         192.039  Partial-year real property assessments.--

21         (1)  A substantially complete improvement to or a

22  substantial destruction of real property which did not occur

23  before January 1 of the preceding year but which did occur

24  before January 1 of the current year must be assessed and

25  listed on the partial-year real property assessment roll in

26  addition to being assessed and listed on the current real

27  property assessment roll.  An improvement to residential real

28  property must be placed on the partial-year assessment roll

29  when the improvement or a self-sufficient unit within it is

30  occupied or otherwise used for the purpose for which it was

31

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  1  constructed or 60 days after the improvement is substantially

  2  completed, whichever occurs first.

  3         (2)(a)  A substantially complete improvement to real

  4  property which improvement is assessed under subsection (1)

  5  must be assessed as if the improvement had been substantially

  6  completed on January 1 of the preceding year.

  7         (b)  Substantially destroyed real property must be

  8  assessed as if it had been substantially destroyed on January

  9  1 of the preceding year.

10         (3)  When preparing the partial-year real property

11  assessment roll, the property appraiser must use the millage

12  applicable in the preceding year and must apply it based on

13  the jurisdictional boundaries of the various taxing

14  authorities on January 1 of the preceding year.

15         (4)(a)  After applying all applicable exemptions, the

16  tax levied on an improvement to real property assessed under

17  subsection (1) must be computed by:

18         1.  Multiplying the taxable value of the improvements

19  to the property by the applicable millage rate; and

20         2.  Multiplying the product computed under subparagraph

21  1. by a fraction the numerator of which is the number of

22  months, including any portion of a month as a month, remaining

23  in the calendar year in which the improvement was

24  substantially completed and the denominator of which is 12.

25         (b)  After applying all applicable exemptions, the

26  total tax to be levied for the year in which property is

27  substantially destroyed is the sum of:

28         1.  The product of the taxable value of the property

29  during the period of time that it was substantially destroyed

30  multiplied by the applicable millage rate multiplied by a

31  fraction the numerator of which is the number of months in the

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  1  calendar year during which months the property could not be

  2  used for its constructed purpose and the denominator of which

  3  is 12; and

  4         2.  The product of the taxable value of the property

  5  during the period of time that it was not substantially

  6  destroyed, including the time after it was rebuilt or

  7  replaced, if applicable, multiplied by the applicable millage

  8  rate multiplied by a fraction the numerator of which is the

  9  number of months in the calendar year during which months the

10  property was not substantially destroyed and the denominator

11  of which is 12.

12

13  If the sum of subparagraphs 1. and 2. is less than the taxes

14  paid for the year in which the property was substantially

15  destroyed, the amount of the tax reduction must be applied as

16  a credit on the taxes due for that property for the year

17  following the year in which the property was substantially

18  destroyed.

19         (5)  All exemptions that are authorized under chapter

20  196 and are based on the ownership and use of property apply

21  to property listed on the partial-year real property

22  assessment roll.  If an applicant who seeks an exemption for

23  property on the partial-year real property assessment roll has

24  previously applied for and received an exemption for other

25  property that no longer qualifies for an exemption based on

26  the applicant's ownership or use, the amount of the exemption

27  used to determine the taxable value on the property must be

28  reduced by the amount of the exemption granted on the property

29  no longer in use.  For purposes of preparing the partial-year

30  real property assessment and applying the exemptions, it is

31  the responsibility of the property owner to apply for all

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  1  applicable ad valorem tax exemptions by March 1 of the year

  2  after substantial completion.

  3         (6)  The real property assessed and the tax determined

  4  under this section must be included in the computation of the

  5  rolled-back millage under s. 200.065.

  6         Section 4.  Section 192.042, Florida Statutes, is

  7  amended to read:

  8         192.042  Date of assessment.--All property must shall

  9  be assessed according to its just value as follows:

10         (1)  Real property, on January 1 of each year. Value

11  must not be placed on improvements or portions that are not

12  substantially completed before on January 1 shall have no

13  value placed thereon. "Substantially completed" shall mean

14  that the improvement or some self-sufficient unit within it

15  can be used for the purpose for which it was constructed.

16         (2)  An improvement to real property which was not

17  substantially completed before January 1 of the preceding year

18  but which was substantially completed before January 1 of the

19  current year, on January 1 of the calendar year following the

20  year in which the improvement is substantially completed.  The

21  improvement must be assessed as if it had been substantially

22  completed on January 1 of the year of substantial completion.

23         (3)(2)  Tangible personal property, on January 1,

24  except that value must not be placed on construction work in

25  progress shall have no value placed thereon until it is

26  substantially completed as defined in s. 192.001(11)(d).

27         (4)(3)  Intangible personal property, according to the

28  rules laid down in chapter 199.

29         Section 5.  The direct administrative costs that are

30  incurred by a property appraiser and tax collector during the

31  first year in which partial-year assessments are implemented

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  1  are to be shared by all ad valorem taxing authorities in a

  2  county in amounts proportionate to the amount of ad valorem

  3  tax revenue received by each authority.

  4         Section 6.  Section 193.078, Florida Statutes, is

  5  created to read:

  6         193.078  Notice of substantially destroyed real

  7  property.--

  8         (1)  For purposes of listing on the partial-year

  9  assessment roll real property that is substantially destroyed,

10  the property appraiser shall accept notices on or before April

11  1 of the year following the year in which the real property is

12  substantially destroyed.  The notice must be filed on a form

13  prescribed by the department by any taxpayer seeking to

14  receive a reduction in taxes under s. 192.039.

15         (2)  Upon determining that the real property described

16  in the notice is in fact substantially destroyed and verifying

17  the date of destruction, the property appraiser shall so state

18  on the notice and shall provide a copy to the taxpayer.

19         Section 7.  Subsection (1) of section 193.114, Florida

20  Statutes, is amended, present subsections (5) and (6) of that

21  section are redesignated as subsections (6) and (7),

22  respectively, and a new subsection (5) is added to that

23  section to read:

24         193.114  Preparation of assessment rolls.--

25         (1)  Each property appraiser shall prepare the

26  following assessment rolls:

27         (a)  Real property assessment roll.

28         (b)  Tangible-personal-property Tangible personal

29  property assessment roll.  This roll must shall include

30  taxable household goods and all other taxable tangible

31  personal property.

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  1         (c)  Partial-year real property assessment roll.

  2         (5)  The department shall adopt rules and prescribe

  3  forms for the preparation of the partial-year real property

  4  assessment roll to show:

  5         (a)  A brief description of the property for purposes

  6  of location.

  7         (b)  An indication of whether the property is improved

  8  or destroyed.

  9         (c)  The just value, determined by using the factors

10  set forth in s. 193.011, of all property.

11         (d)  The exemption categories that are applied to the

12  property.

13         (e)  The taxable value as determined under s. 192.039.

14         (f)  For property that is classified so that it is

15  assessed other than under s. 193.011, its value according to

16  its classified use and its value as it would be if assessed

17  under s. 193.011.

18         (g)  The name and address of the owner or fiduciary

19  responsible for the payment of taxes on the property and an

20  indication of that person's fiduciary capacity.

21         (h)  The millage levied on the property.

22         (i)  The month in which the property was substantially

23  completed.

24         (j)  The tax determined in accordance with s.

25  192.039(4).

26         Section 8.  Section 195.027, Florida Statutes, is

27  amended to read:

28         195.027  Rules and regulations.--

29         (1)  The Department of Revenue shall prescribe

30  reasonable rules and regulations for the assessing and

31  collecting of taxes, and these such rules must and regulations

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  1  shall be followed by the property appraisers, tax collectors,

  2  clerks of the circuit court, and value adjustment boards.  It

  3  is hereby declared to be the legislative intent that The

  4  department shall formulate these such rules so as to ensure

  5  and regulations that property will be assessed, taxes will be

  6  collected, and the administration conducted in a manner that

  7  is will be uniform, just, and otherwise in compliance with the

  8  requirements of the general law and the constitution.

  9         (2)  It is the legislative intent that all counties

10  operate on computer programs that are substantially similar

11  and produce data that which are directly comparable.  The

12  rules must and regulations shall prescribe uniform standards

13  and procedures for computer programs and operations for all

14  programs installed in any property appraiser's office.  It is

15  the legislative intent that the department shall require a

16  high degree of uniformity so that data will be comparable

17  among counties and so that a single audit procedure will be

18  practical for all property appraisers' offices.

19         (3)  The rules must and regulations shall provide

20  procedures whereby the property appraiser, the Department of

21  Revenue, and the Auditor General are shall be able to obtain

22  access, if where necessary, to financial records relating to

23  nonhomestead property which records are required to make a

24  determination of the proper assessment as to the particular

25  property in question.  Access to a taxpayer's records is to

26  shall be provided only in those instances in which it is

27  determined that such records are necessary to determine either

28  the classification or the value of the taxable nonhomestead

29  property.  Access is to shall be provided only to those

30  records that which pertain to the property physically located

31  in the taxing county as of January 1 of each year and to the

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  1  income from such property generated in the taxing county for

  2  the year in which a proper assessment is made.  All records

  3  produced by the taxpayer under this subsection are shall be

  4  deemed to be confidential in the hands of the property

  5  appraiser, the department, the tax collector, and the Auditor

  6  General and must shall not be divulged to any person, firm, or

  7  corporation, except upon court order or order of an

  8  administrative body having quasi-judicial powers in ad valorem

  9  tax matters, and such records are exempt from the provisions

10  of s. 119.07(1) and from s. 24(a) of Art. I of the State

11  Constitution.

12         (4)(a)  The rules and regulations prescribed by the

13  department must shall require a return of tangible personal

14  property which includes shall include:

15         1.  A general identification and description of the

16  property or, when more than one item constitutes a class of

17  similar items, a description of the class.

18         2.  The location of the such property.

19         3.  The original cost of the such property and, in the

20  case of a class of similar items, the average cost.

21         4.  The age of the such property and, in the case of a

22  class of similar items, the average age.

23         5.  The condition, including functional and economic

24  depreciation or obsolescence.

25         6.  The taxpayer's estimate of fair market value.

26         (b)  For purposes of this subsection, a class of

27  property includes shall include only those items that which

28  are substantially similar in function and use. Nothing in This

29  chapter does not shall authorize the department to prescribe a

30  return requiring information other than that contained in this

31  subsection; nor may shall the department issue or adopt

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  1  promulgate any rule that directs or regulation directing the

  2  assessment of property by the consideration of factors other

  3  than those enumerated in s. 193.011.

  4         (5)  The rules must and regulations shall require that

  5  the property appraiser deliver copies of all pleadings in

  6  court proceedings in which his or her office is involved to

  7  the Department of Revenue.

  8         (6)  The fees and costs of the sale or purchase and

  9  terms of financing are shall be presumed to be usual unless

10  the buyer or seller or agent thereof files a form that which

11  discloses the unusual fees, costs, and terms of financing.

12  Such a form must shall be filed with the clerk of the circuit

13  court at the time of recording.  The rules must and

14  regulations shall prescribe an information form to be used for

15  this purpose.  Either the buyer or the seller or the agent of

16  either shall complete the information form and certify that

17  the form is accurate to the best of his or her knowledge and

18  belief.  The information form is to shall be confidential in

19  the hands of all persons after delivery to the clerk, except

20  that the Department of Revenue and the Auditor General shall

21  have access to it in the execution of their official duties,

22  and such a form is exempt from the provisions of s. 119.07(1)

23  and of s. 24(a) of Art. I of the State Constitution.  The

24  information form may be used in any judicial proceeding, upon

25  a motion to produce duly made by any party to such

26  proceedings.  Failure of the clerk to obtain an information

27  form with the recording does shall not impair the validity of

28  the recording or the conveyance. The form must shall provide

29  for a notation by the clerk indicating the book and page

30  number of the conveyance in the official record books of the

31  county.  The clerk shall promptly deliver all information

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  1  forms received to the property appraiser for his or her

  2  custody and use.

  3         Section 9.  Paragraph (a) of subsection (1) of section

  4  196.011, Florida Statutes, is amended to read:

  5         196.011  Annual application required for exemption.--

  6         (1)(a)  Every person or organization who, on January 1,

  7  has the legal title to real or personal property, except

  8  inventory, which is entitled by law to exemption from taxation

  9  as a result of its ownership and use shall, on or before March

10  1 of each year, file an application for exemption with the

11  county property appraiser, listing and describing the property

12  for which exemption is claimed and certifying its ownership

13  and use. If an application for exemption is made for property

14  listed on a partial-year real property assessment roll, the

15  date on which the property became entitled by law to the

16  exemption must be stated. The Department of Revenue shall

17  prescribe the forms upon which the application is made.

18  Failure to make application, when required, on or before March

19  1 of any year constitutes shall constitute a waiver of the

20  exemption privilege for that year, except as provided in

21  subsection (7) or subsection (8).

22         Section 10.  Section 197.3635, Florida Statutes, is

23  amended to read:

24         197.3635  Combined notice of ad valorem taxes and

25  non-ad valorem assessments; requirements.--A form for the

26  combined notice of ad valorem taxes and non-ad valorem

27  assessments must shall be produced and paid for by the tax

28  collector.  The form must shall meet the requirements of this

29  section and department rules and is shall be subject to

30  approval by the department.  By rule, the department shall

31

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  1  provide a format for the form of the such combined notice.

  2  The form must shall meet the following requirements:

  3         (1)  It must shall contain the title "Notice of Ad

  4  Valorem Taxes and Non-ad Valorem Assessments." It must shall

  5  also contain a receipt part that can be returned along with

  6  the payment to the tax collector.

  7         (2)  It must shall provide a clear partition between ad

  8  valorem taxes and non-ad valorem assessments. The Such

  9  partition must shall be a bold horizontal line approximately

10  1/8 inch thick.

11         (3)  Within the ad valorem part, it must shall contain

12  the heading "Ad Valorem Taxes." Within the non-ad valorem

13  assessment part, it must shall contain the heading "Non-ad

14  Valorem Assessments."

15         (4)  It must shall contain the county name, the

16  assessment year, the mailing address of the tax collector, the

17  mailing address of one property owner, the legal description

18  of the property to at least 25 characters, and the unique

19  parcel or tax identification number of the property.

20         (5)  It must shall provide for the labeled disclosure

21  of the total amount of combined levies and the total

22  discounted amount due each month when paid in advance.

23         (6)  It must shall provide a field or portion on the

24  front of the notice for official use for data to reflect codes

25  useful to the tax collector.

26         (7)  The combined notice must shall be set in type that

27  which is 8 points or larger.

28         (8)  The ad valorem part must shall contain the

29  following:

30         (a)  A schedule of the assessed value, exempted value,

31  and taxable value of the property.

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  1         (b)  Subheadings for columns listing taxing

  2  authorities, corresponding millage rates expressed in dollars

  3  and cents per $1,000 of taxable value, and the associated tax.

  4         (c)  Taxing authorities listed in the same sequence and

  5  manner as listed on the notice required by s. 200.069(4)(a),

  6  with the exception that independent special districts,

  7  municipal service taxing districts, and voted debt service

  8  millages for each taxing authority must shall be listed

  9  separately. If a county has too many municipal service taxing

10  units to list separately, it must shall combine them to

11  disclose the total number of such units and the amount of

12  taxes levied.

13         (d)  For any partial-year taxes, the notice must

14  include:

15         1.  A schedule for the partial-year assessed value,

16  exempt value, taxable value, and the date on which the

17  property was acquired, substantially completed, or

18  substantially destroyed.

19         2.  Subheadings for columns listing the taxing

20  authorities, corresponding millage rates for the preceding

21  year expressed in dollars and cents per $1,000 of taxable

22  value, the fraction as designated in s. 192.039(4), and the

23  associated tax.

24         3.  Taxing authorities listed in the same sequence and

25  manner as listed on the notice required by s. 200.069(4)(a),

26  with the exception that independent special districts,

27  municipal service taxing districts, and voted debt-service

28  millage for each taxing authority must be listed separately.

29  If a county has too many municipal service taxing units to

30  list them separately, it must combine them to disclose the

31  total number of such units and the amount of taxes levied.

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  1         (9)  Within the non-ad valorem assessment part, it must

  2  shall contain the following:

  3         (a)  Subheadings for columns listing the levying

  4  authorities, corresponding assessment rates expressed in

  5  dollars and cents per unit of assessment, and the associated

  6  assessment amount.

  7         (b)  The purpose of the assessment, if the purpose is

  8  not clearly indicated by the name of the levying authority.

  9         (c)  A listing of the levying authorities in the same

10  order as in the ad valorem part to the extent practicable. If

11  a county has too many municipal service benefit units to list

12  separately, it must shall combine them by function.

13         (10)  It must shall provide instructions and useful

14  information to the taxpayer. The Such information and

15  instructions must shall be nontechnical to minimize confusion.

16  The information and instructions required by this section must

17  shall be provided by department rule and must shall include:

18         (a)  Procedures to be followed when the property has

19  been sold or conveyed.

20         (b)  Instruction as to mailing the remittance and

21  receipt along with a brief disclosure of the availability of

22  discounts.

23         (c)  Notification about delinquency and interest for

24  delinquent payment.

25         (d)  Notification that failure to pay the amounts due

26  will result in a tax certificate being issued against the

27  property.

28         (e)  A brief statement outlining the responsibility of

29  the tax collector, the property appraiser, and the taxing

30  authorities. This statement must shall be accompanied by

31

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  1  directions as to which office to contact for particular

  2  questions or problems.

  3         Section 11.  Section 197.3645, Florida Statutes, is

  4  created to read:

  5         197.3645  Separate partial-year ad valorem tax

  6  notice.--Partial-year ad valorem tax assessments that are

  7  listed on the partial-year assessment roll prepared by the

  8  property appraiser must be included in the combined notice for

  9  ad valorem taxes and non-ad valorem taxes which is provided

10  for in s. 197.3635.  A separate mailing is authorized only as

11  a solution to the most exigent factual circumstances.

12  However, if a tax collector cannot merge a partial-year

13  assessment roll to produce such a notice, the tax collector

14  must mail a separate notice of partial-year ad valorem

15  assessments. In deciding whether a separate mailing is

16  necessary, the tax collector shall consider all costs to

17  taxpayers of such a separate mailing and the adverse effects

18  to taxpayers of delayed and multiple notices.

19         Section 12.  Subsection (1) of section 200.065, Florida

20  Statutes, is amended to read:

21         200.065  Method of fixing millage.--

22         (1)  Upon completion of the assessment of all property

23  pursuant to s. 193.023, the property appraiser shall certify

24  to each taxing authority the taxable value, including both

25  regular and partial-year assessment rolls, within the

26  jurisdiction of the taxing authority. This certification must

27  shall include a copy of the statement required to be submitted

28  under s. 195.073(3), as applicable to that taxing authority.

29  The form on which the certification is made must shall include

30  instructions to each taxing authority describing the proper

31  method of computing a millage rate which, exclusive of new

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  1  construction, additions to structures, deletions, increases in

  2  the value of improvements that have undergone a substantial

  3  rehabilitation that which increased the assessed value of such

  4  improvements by at least 100 percent, and property added due

  5  to geographic boundary changes, will provide the same ad

  6  valorem tax revenue for each taxing authority as was levied

  7  during the prior year. That millage rate shall be known as the

  8  "rolled-back rate." The information provided pursuant to this

  9  subsection must shall also be sent to the tax collector by the

10  property appraiser at the time it is sent to each taxing

11  authority.

12         Section 13.  Section 200.0701, Florida Statutes, is

13  created to read:

14         200.0701  Notice of partial-year assessment.--The

15  property appraiser, in the name of the taxing authorities

16  within the property appraiser's jurisdiction and at the

17  expense of the taxing authorities, shall prepare and deliver

18  by first-class mail to each taxpayer to be listed on the

19  partial-year real property assessment roll a notice of

20  partial-year assessment.  At the discretion of the property

21  appraiser, the notice of partial-year assessment may be

22  separate from or part of the notice of proposed taxes required

23  in s. 200.069.  The notice of partial-year assessment must

24  include the legal description of the property, the date on

25  which the property was either acquired or substantially

26  completed, the property's assessed value, the applicable

27  millage, and the taxes to be levied. If separate from s.

28  200.069, the notice must be mailed at the same time as the

29  notice required under s. 200.069.

30         Section 14.  This act applies beginning with property

31  that is substantially completed after January 1, 1999.

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  1         Section 15.  Paragraph (g) of subsection (5) of section

  2  212.08, Florida Statutes, is amended to read:

  3         212.08  Sales, rental, use, consumption, distribution,

  4  and storage tax; specified exemptions.--The sale at retail,

  5  the rental, the use, the consumption, the distribution, and

  6  the storage to be used or consumed in this state of the

  7  following are hereby specifically exempt from the tax imposed

  8  by this chapter.

  9         (5)  EXEMPTIONS; ACCOUNT OF USE.--

10         (g)  Building materials used in the rehabilitation of

11  real property located in an enterprise zone.--

12         1.  Beginning July 1, 1995, building materials used in

13  the rehabilitation of real property located in an enterprise

14  zone are shall be exempt from the tax imposed by this chapter

15  upon an affirmative showing to the satisfaction of the

16  department that the items have been used for the

17  rehabilitation of real property located in an enterprise zone.

18  Except as provided in subparagraph 2., this exemption inures

19  to the owner, lessee, or lessor of the rehabilitated real

20  property located in an enterprise zone only through a refund

21  of previously paid taxes. To receive a refund under pursuant

22  to this paragraph, the owner, lessee, or lessor of the

23  rehabilitated real property located in an enterprise zone must

24  file an application under oath with the governing body or

25  enterprise zone development agency having jurisdiction over

26  the enterprise zone where the business is located, as

27  applicable, which includes:

28         a.  The name and address of the person claiming the

29  refund.

30

31

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  1         b.  An address and assessment roll parcel number of the

  2  rehabilitated real property in an enterprise zone for which a

  3  refund of previously paid taxes is being sought.

  4         c.  A description of the improvements made to

  5  accomplish the rehabilitation of the real property.

  6         d.  A copy of the building permit issued for the

  7  rehabilitation of the real property.

  8         e.  A sworn statement, under the penalty of perjury,

  9  from the general contractor licensed in this state with whom

10  the applicant contracted to make the improvements necessary to

11  accomplish the rehabilitation of the real property, which

12  statement lists the building materials used in the

13  rehabilitation of the real property, the actual cost of the

14  building materials, and the amount of sales tax paid in this

15  state on the building materials. If In the event that a

16  general contractor has not been used, the applicant shall

17  provide this information in a sworn statement, under the

18  penalty of perjury. Copies of the invoices that which evidence

19  the purchase of the building materials used in such

20  rehabilitation and the payment of sales tax on the building

21  materials must shall be attached to the sworn statement

22  provided by the general contractor or by the applicant. Unless

23  the actual cost of building materials used in the

24  rehabilitation of real property and the payment of sales taxes

25  due thereon is documented by a general contractor or by the

26  applicant in this manner, the cost of the such building

27  materials must shall be an amount equal to 40 percent of the

28  increase in assessed value for ad valorem tax purposes.

29         f.  The identifying number assigned under pursuant to

30  s. 290.0065 to the enterprise zone in which the rehabilitated

31  real property is located.

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  1         g.  A certification by the local building inspector

  2  that the improvements necessary to accomplish the

  3  rehabilitation of the real property are substantially

  4  completed.

  5         h.  Whether the business is a small business as defined

  6  by s. 288.703(1).

  7         i.  If applicable, the name and address of each

  8  permanent employee of the business, including, for each

  9  employee who is a resident of an enterprise zone, the

10  identifying number assigned under pursuant to s. 290.0065 to

11  the enterprise zone in which the employee resides.

12         2.  This exemption inures to a city, county, or other

13  governmental agency through a refund of previously paid taxes

14  if the building materials used in the rehabilitation of real

15  property located in an enterprise zone are paid for from the

16  funds of a community development block grant or similar grant

17  or loan program. To receive a refund under pursuant to this

18  paragraph, a municipality city, county, or other governmental

19  agency must file an application that which includes the same

20  information required to be provided in subparagraph 1. by an

21  owner, lessee, or lessor of rehabilitated real property. In

22  addition, the application must include a sworn statement

23  signed by the chief executive officer of the municipality

24  city, county, or other governmental agency seeking a refund

25  which states that the building materials for which a refund is

26  sought were paid for from the funds of a community development

27  block grant or similar grant or loan program.

28         3.  Within 10 working days after receipt of an

29  application, the governing body or enterprise zone development

30  agency shall review the application to determine if it

31  contains all the information required under pursuant to

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  1  subparagraph 1. or subparagraph 2. and meets the criteria set

  2  out in this paragraph. The governing body or agency shall

  3  certify all applications that contain the information required

  4  pursuant to subparagraph 1. or subparagraph 2. and meet the

  5  criteria set out in this paragraph as eligible to receive a

  6  refund. If applicable, the governing body or agency shall also

  7  certify if 20 percent of the employees of the business are

  8  residents of an enterprise zone, excluding temporary and

  9  part-time employees. The certification must shall be in

10  writing, and a copy of the certification must shall be

11  transmitted to the executive director of the Department of

12  Revenue. The applicant is shall be responsible for forwarding

13  a certified application to the department within the time

14  specified in subparagraph 4.

15         4.  An application for a refund under pursuant to this

16  paragraph must be submitted to the department within 6 months

17  after the rehabilitation of the property is deemed by the

18  local building inspector to be substantially completed by the

19  local building inspector.

20         5.  Section The provisions of s. 212.095 does do not

21  apply to any refund application made under pursuant to this

22  paragraph. No more than one exemption through a refund of

23  previously paid taxes for the rehabilitation of real property

24  is shall be permitted for any one parcel of real property. A

25  No refund must not shall be granted under pursuant to this

26  paragraph unless the amount to be refunded exceeds $500. A No

27  refund granted under pursuant to this paragraph must not shall

28  exceed the lesser of 97 percent of the Florida sales or use

29  tax paid on the cost of the building materials used in the

30  rehabilitation of the real property as determined under

31  pursuant to sub-subparagraph 1.e. or $5,000, or, if no less

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  1  than 20 percent of the employees of the business are residents

  2  of an enterprise zone, excluding temporary and part-time

  3  employees, the amount of a refund granted under pursuant to

  4  this paragraph must shall not exceed the lesser of 97 percent

  5  of the sales tax paid on the cost of such building materials

  6  or $10,000. A refund approved under pursuant to this paragraph

  7  must shall be made within 30 days after of formal approval by

  8  the department of the application for the refund.

  9         6.  The department shall adopt rules governing the

10  manner and form of refund applications and may establish

11  guidelines as to the requisites for an affirmative showing of

12  qualification for exemption under this paragraph.

13         7.  The department shall deduct an amount equal to 10

14  percent of each refund granted under the provisions of this

15  paragraph from the amount transferred into the Local

16  Government Half-cent Sales Tax Clearing Trust Fund under

17  pursuant to s. 212.20 for the county area in which the

18  rehabilitated real property is located and shall transfer that

19  amount to the General Revenue Fund.

20         8.  For the purposes of the exemption provided in this

21  paragraph:

22         a.  "Building materials" means tangible personal

23  property that which becomes a component part of improvements

24  to real property.

25         b.  "Real property" has the same meaning as provided in

26  s. 192.001 s. 192.001(12).

27         c.  "Rehabilitation of real property" means the

28  reconstruction, renovation, restoration, rehabilitation,

29  construction, or expansion of improvements to real property.

30         d.  "Substantially completed" has the same meaning as

31  provided in s. 192.001 s. 192.042(1).

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  1         9.  The provisions of This paragraph expires shall

  2  expire and be void on December 31, 2005.

  3         Section 16.  Subsection (1) of section 163.387, Florida

  4  Statutes, is amended to read:

  5         163.387  Redevelopment trust fund.--

  6         (1)  There shall be established for each community

  7  redevelopment agency created under s. 163.356 a redevelopment

  8  trust fund. Funds allocated to and deposited into this fund

  9  must shall be used by the agency to finance or refinance any

10  community redevelopment it undertakes pursuant to the approved

11  community redevelopment plan. A No community redevelopment

12  agency may not receive or spend any increment revenues under

13  pursuant to this section unless and until the governing body

14  has, by ordinance, provided for the funding of the

15  redevelopment trust fund for the duration of a community

16  redevelopment plan. Such an ordinance may be adopted only

17  after the governing body has approved a community

18  redevelopment plan. The annual funding of the redevelopment

19  trust fund must shall be in an amount not less than that

20  increment in the income, proceeds, revenues, and funds of each

21  taxing authority derived from or held in connection with the

22  undertaking and carrying out of community redevelopment under

23  this part. The amount of the Such increment must shall be

24  determined annually and must shall be that amount equal to 95

25  percent of the difference between:

26         (a)  The amount of ad valorem taxes levied each year by

27  each taxing authority, exclusive of partial-year taxes and of

28  any amount from any debt service millage, on taxable real

29  property contained within the geographic boundaries of a

30  community redevelopment area; and

31

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  1         (b)  The amount of ad valorem taxes which would have

  2  been produced by the rate upon which the tax is levied each

  3  year by or for each taxing authority, exclusive of

  4  partial-year taxes and of any debt service millage, upon the

  5  total of the assessed value of the taxable real property in

  6  the community redevelopment area as shown upon the most recent

  7  assessment roll used in connection with the taxation of such

  8  property by each taxing authority before prior to the

  9  effective date of the ordinance providing for the funding of

10  the trust fund.

11

12  However, the governing body of any county as defined in s.

13  125.011(1) may, in the ordinance providing for the funding of

14  a trust fund established with respect to any community

15  redevelopment area created on or after July 1, 1994, determine

16  that the amount to be funded by each taxing authority annually

17  must shall be less than 95 percent of the difference between

18  paragraphs (a) and (b), but the in no event shall such amount

19  must not be less than 50 percent of the such difference.

20         Section 17.  Subsection (4) of section 197.102, Florida

21  Statutes, is amended to read:

22         197.102  Definitions.--As used in this chapter, the

23  following definitions apply, unless the context clearly

24  requires otherwise:

25         (4)  "Tax notice" means the tax bill sent to taxpayers

26  for payment of any taxes or special assessments collected

27  pursuant to this chapter, or the bill sent to taxpayers for

28  payment of the total of ad valorem taxes and non-ad valorem

29  assessments collected under pursuant to s. 197.3632, or the

30  bill sent to taxpayers for payment of taxes on partial-year

31  assessment rolls under s. 197.3645.

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  1         Section 18.  Subsection (1) of section 197.122, Florida

  2  Statutes, is amended to read:

  3         197.122  Lien of taxes; dates; application.--

  4         (1)  All taxes imposed under pursuant to the State

  5  Constitution and laws of this state constitute shall be a

  6  first lien, superior to all other liens, on any property

  7  against which the taxes have been assessed and shall continue

  8  in full force from January 1 of the year the taxes were levied

  9  until discharged by payment or until barred under chapter 95.

10  For property listed on partial-year assessment rolls, the year

11  the tax was levied is considered to be the year the property

12  was substantially completed, and the lien date is January 1 of

13  that year. All personal property tax liens, to the extent that

14  the property to which the lien applies cannot be located in

15  the county or to the extent that the sale of the property is

16  insufficient to pay all delinquent taxes, interest, fees, and

17  costs due, constitute shall be liens against all other

18  personal property of the taxpayer in the county. However, such

19  liens against other personal property do shall not apply

20  against such property that which has been sold, and such liens

21  against other personal property are shall be subordinate to

22  any valid prior or subsequent liens against such other

23  property.  An No act of omission or commission on the part of

24  any property appraiser, tax collector, board of county

25  commissioners, clerk of the circuit court, or county

26  comptroller, or their deputies or assistants, or newspaper in

27  which any advertisement of sale may be published does not

28  shall operate to defeat the payment of taxes; but any acts of

29  omission or commission may be corrected at any time by the

30  officer or party responsible for them in like manner as

31  provided by law for performing acts in the first place, and,

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  1  when so corrected, they are to shall be construed as valid ab

  2  initio, and they do not shall in no way affect any process by

  3  law for the enforcement of the collection of any tax.  All

  4  owners of property are shall be held to know that taxes are

  5  due and payable annually and are charged with the duty of

  6  ascertaining the amount of current and delinquent taxes and

  7  paying them before April 1 of the year following the year in

  8  which taxes are assessed. A No sale or conveyance of real or

  9  personal property for nonpayment of taxes may not shall be

10  held invalid except upon proof that:

11         (a)  The property was not subject to taxation;

12         (b)  The taxes had been paid before the sale of

13  personal property; or

14         (c)  The real property had been redeemed before the

15  execution and delivery of a deed based upon a certificate

16  issued for nonpayment of taxes.

17         Section 19.  This act shall take effect January 1,

18  1999, if SJR     , amending the State Constitution to allow

19  for partial-year assessments, has been passed and adopted and

20  has taken effect by that date.

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  1            *****************************************

  2                          SENATE SUMMARY

  3    Provides for partial-year assessments of real property
      for purposes of ad valorem taxation. Provides legislative
  4    intent. Defines the terms "substantially completed" and
      "substantially destroyed." Provides for partial-year real
  5    property assessments. Provides formulas for calculating
      ad valorem taxes to be levied on real property that is
  6    assessed for  partial year. Requires such properties and
      the tax thereupon to be included in computing rolled-back
  7    millage. Amends the standards for calculating just value
      to conform to the provisions for partial-year assessment.
  8    Provides for sharing the costs of implementing
      partial-year assessments.
  9

10    Amends provisions relating to the preparation of
      assessment rolls, to conform to this act. Provides for
11    notice of substantially destroyed property. Provides for
      the Department of Revenue to adopt rules concerning
12    returns for property that is subject to partial-year
      assessment. Amends provisions relating to the annual
13    application for the homestead tax exemption, to conform
      to this act. Amends provisions relating to requirements
14    for a combined notice of ad valorem taxes and non-ad
      valorem assessments, to conform. Provides criteria that
15    must be met before a separate notice may be mailed for
      partial-year ad valorem taxes. Amends provisions relating
16    to computing the rolled-back rate, to conform. Provides
      for notice of partial-year assessment to be delivered to
17    taxpayers. Allows the notice, at the discretion of the
      property appraiser, to be separate or combined with
18    notice under s. 200.069, F.S. Provides that this act
      initially applies to property that is substantially
19    completed after January 1, 1999. Amends provisions
      relating to redevelopment trust funds; definitions used
20    in ch. 197, F.S.; and provisions relating to tax liens,
      to provide for the date on which a tax lien attaches if
21    the lien relates to property on which partial-year
      assessment is imposed.
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