Senate Bill sb1576
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Florida Senate - 2001 SB 1576
By Senator Carlton
24-581A-01
1 A bill to be entitled
2 An act relating to ad valorem tax
3 administration; amending s. 195.096, F.S.;
4 requiring the Department of Revenue to document
5 and retain records used in the review of
6 assessment rolls; amending s. 195.096, F.S.,
7 effective for the 2003 tax rolls and subsequent
8 tax rolls; requiring the Department of Revenue
9 to study assessment groups or market areas to
10 assure the representativeness of ratio-study
11 samples; amending s. 195.097, F.S.; requiring
12 the Department of Revenue to report levels of
13 assessment as an index; amending s. 197.502,
14 F.S.; authorizing the tax collector to contract
15 with a title abstract company to provide
16 information concerning property described in a
17 tax certificate; authorizing the tax collector
18 to pay a reasonable fee for this information;
19 providing that the amount of any fee paid for
20 this information must be added to the opening
21 bid for a tax deed for the property; amending
22 s. 236.081, F.S.; requiring the Department of
23 Revenue to report levels of assessment based on
24 a 4-year average; providing an effective date.
25
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Paragraph (c) of subsection (2) of section
29 195.096, Florida Statutes, is amended to read:
30 195.096 Review of assessment rolls.--
31
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Florida Senate - 2001 SB 1576
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1 (2) The department shall conduct, no less frequently
2 than once every 2 years, an in-depth review of the assessment
3 rolls of each county. The department need not individually
4 study every use-class of property set forth in s. 195.073, but
5 shall at a minimum study the level of assessment in relation
6 to just value of each classification specified in subsection
7 (3). Such in-depth review may include proceedings of the value
8 adjustment board and the audit or review of procedures used by
9 the counties to appraise property.
10 (c) In conducting assessment ratio studies, the
11 department must use a representative or statistically reliable
12 sample of properties in tests of each classification, stratum,
13 or roll made the subject of a ratio study published by it. The
14 department shall document and retain records of the measures
15 of representativeness of the properties studied in compliance
16 with this section. Such documentation must include a record of
17 findings used as the basis for the approval or disapproval of
18 the tax roll in each county pursuant to s. 193.1142. For
19 purposes of this section, the department shall rely primarily
20 on an assessment-to-sales-ratio study in conducting assessment
21 ratio studies in those classifications of property specified
22 in subsection (3) for which there are adequate market sales.
23 The department shall compute the median and the value-weighted
24 mean for each classification or subclassification studied and
25 for the roll as a whole.
26 Section 2. Effective January 1, 2003, paragraph (c) of
27 subsection (2) of section 195.096, Florida Statutes, as
28 amended by section 1 of this act, is amended to read:
29 195.096 Review of assessment rolls.--
30 (2) The department shall conduct, no less frequently
31 than once every 2 years, an in-depth review of the assessment
2
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Florida Senate - 2001 SB 1576
24-581A-01
1 rolls of each county. The department need not individually
2 study every use-class of property set forth in s. 195.073, but
3 shall at a minimum study the level of assessment in relation
4 to just value of each classification specified in subsection
5 (3). Such in-depth review may include proceedings of the value
6 adjustment board and the audit or review of procedures used by
7 the counties to appraise property.
8 (c) In conducting assessment ratio studies, the
9 department must use a representative or statistically reliable
10 sample of properties in tests of each classification, stratum,
11 or roll made the subject of a ratio study published by it. The
12 department shall document and retain records of the measures
13 of representativeness of the properties studied in compliance
14 with this section. Such documentation must include a record of
15 findings used as the basis for the approval or disapproval of
16 the tax roll in each county pursuant to s. 193.1142. In
17 addition, to the greatest extent practicable, the department
18 shall study assessment roll strata by value groups or market
19 areas for each classification, subclassification, or stratum
20 to be studied, to assure the representativeness of ratio study
21 samples. For purposes of this section, the department shall
22 rely primarily on an assessment-to-sales-ratio study in
23 conducting assessment ratio studies in those classifications
24 of property specified in subsection (3) for which there are
25 adequate market sales. The department shall compute the
26 median and the value-weighted mean for each classification or
27 subclassification studied and for the roll as a whole.
28 Section 3. Paragraph (b) of subsection (1) of section
29 195.097, Florida Statutes, is amended to read:
30 195.097 Postaudit notification of defects; supervision
31 by the department.--
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Florida Senate - 2001 SB 1576
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1 (1)
2 (b) Notwithstanding other provisions of this section,
3 the executive director is not required to notice as a defect a
4 class or stratum of property which, based upon the evaluation
5 of any review, study, or finding of the department, indicates
6 an assessment level of more than 100 percent of just value in
7 any class or stratum of property on the prior year's tax roll.
8 In reporting levels of assessment to the Commissioner of
9 Education pursuant to s. 236.081(4), the levels of assessment
10 for all counties and for the state as a whole must be reported
11 as an index calculated in such manner that the highest value
12 in the index is equal to 100.
13 Section 4. Subsection (5) of section 197.502, Florida
14 Statutes, is amended to read:
15 197.502 Application for obtaining tax deed by holder
16 of tax sale certificate; fees.--
17 (5)(a) The tax collector may contract with a title
18 company or an abstract company at a reasonable fee to provide
19 the minimum information required in subsection (4), consistent
20 with rules adopted by the department. If additional
21 information is required, the tax collector must make a written
22 request to the title or abstract company stating the
23 additional requirements. The tax collector may select any
24 title or abstract company, regardless of its location, as long
25 as the fee is reasonable, the minimum information is
26 submitted, and the title or abstract company is authorized to
27 do business in this state. The tax collector may advertise and
28 accept bids for the title or abstract company if he or she
29 considers it appropriate to do so.
30 1. The ownership and encumbrance report must be
31 printed or typed on stationery or other paper showing a
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1 letterhead of the person, firm, or company that makes the
2 search, and the signature of the person who makes the search
3 or of an officer of the firm must be attached. The tax
4 collector is not liable for payment to the firm unless these
5 requirements are met.
6 2. The tax collector may not accept or pay for any
7 title search or abstract if no financial responsibility is
8 assumed for the search. However, reasonable restrictions as to
9 the liability or responsibility of the title or abstract
10 company are acceptable.
11 3. In order to establish uniform prices for ownership
12 and encumbrance reports within the county, the tax collector
13 shall ensure that the contract for ownership and encumbrance
14 reports include all requests for title searches or abstracts
15 for a given period of time.
16 (b) Any fee paid for any title search or abstract must
17 be collected at the time of application under section (1), and
18 the amount of the fee must be added to the opening bid.
19 (c) The clerk shall advertise and administer the sale
20 and receive such fees for the issuance of the deed and sale of
21 the property as are provided in s. 28.24.
22 Section 5. Paragraph (c) of subsection (4) of section
23 236.081, Florida Statutes, is amended to read:
24 236.081 Funds for operation of schools.--If the annual
25 allocation from the Florida Education Finance Program to each
26 district for operation of schools is not determined in the
27 annual appropriations act or the substantive bill implementing
28 the annual appropriations act, it shall be determined as
29 follows:
30 (4) COMPUTATION OF DISTRICT REQUIRED LOCAL
31 EFFORT.--The Legislature shall prescribe the aggregate
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1 required local effort for all school districts collectively as
2 an item in the General Appropriations Act for each fiscal
3 year. The amount that each district shall provide annually
4 toward the cost of the Florida Education Finance Program for
5 kindergarten through grade 12 programs shall be calculated as
6 follows:
7 (c) Equalization of required local effort.--
8 1. The Department of Revenue shall include with its
9 certifications provided pursuant to paragraph (a) a level of
10 assessment calculated for each county by averaging its most
11 recent determination of the assessment level of the prior
12 year's assessment roll and each of the three preceding
13 assessment rolls for each county. Based on these calculated
14 4-year average levels of assessment and the estimates of
15 taxable value certified pursuant to paragraph (a) for each
16 county, the Department of Revenue shall also certify an
17 assessment level and for the state as a whole.
18 2. The commissioner shall adjust the required local
19 effort millage of each district for the current year, computed
20 pursuant to paragraph (a), as follows:
21 a. The equalization factor for the prior year's
22 assessment roll of each district shall be multiplied by 95
23 percent of the taxable value for school purposes shown on that
24 roll and by the prior year's required local-effort millage,
25 exclusive of any equalization adjustment made pursuant to this
26 paragraph. The dollar amount so computed shall be the
27 additional required local effort for equalization for the
28 current year.
29 b. Such equalization factor shall be computed as the
30 quotient of the prior year's assessment level of the state as
31 a whole as calculated under subparagraph 1. divided by the
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Florida Senate - 2001 SB 1576
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1 4-year average level of assessment of the county calculated
2 under subparagraph 1. prior year's assessment level of the
3 county, from which quotient shall be subtracted 1.
4 c. The dollar amount of additional required local
5 effort for equalization for each district shall be converted
6 to a millage rate, based on 95 percent of the current year's
7 taxable value for that district, and added to the required
8 local effort millage determined pursuant to paragraph (a).
9 3. Notwithstanding the limitations imposed pursuant to
10 s. 236.25(1), the total required local-effort millage,
11 including additional required local effort for equalization,
12 shall be an amount not to exceed 10 minus the maximum millage
13 allowed as nonvoted discretionary millage, exclusive of
14 millage authorized pursuant to s. 236.25(2). Nothing herein
15 shall be construed to allow a millage in excess of that
16 authorized in s. 9, Art. VII of the State Constitution.
17 4. For the purposes of this chapter, the term
18 "assessment level" means the value-weighted mean assessment
19 ratio for the county or state as a whole, as determined
20 pursuant to s. 195.096, or as subsequently adjusted. In the
21 event a court has adjudicated that the department failed to
22 establish an accurate estimate of an assessment level of a
23 county and recomputation resulting in an accurate estimate
24 based upon the evidence before the court was not possible,
25 that county shall be presumed to have an assessment level
26 equal to that of the state as a whole.
27 5. If, in the prior year, taxes were levied against an
28 interim assessment roll pursuant to s. 193.1145, the
29 assessment level and prior year's nonexempt assessed valuation
30 used for the purposes of this paragraph shall be those of the
31 interim assessment roll.
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Florida Senate - 2001 SB 1576
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1 Section 6. Except as otherwise expressly provided in
2 this act, this act shall take effect July 1, 2001.
3
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5 SENATE SUMMARY
6 Requires the Department of Revenue to document and retain
records used in the review of assessment. Effective for
7 the 2003 tax rolls and subsequent tax rolls, requires the
department to study assessment groups or market areas to
8 assure the representativeness of ratio-study samples.
Requires the department to report levels of assessment as
9 an index. Authorizes the tax collector to contract with a
title abstract company to provide information concerning
10 property described in a tax certificate. Authorizes the
tax collector to pay a reasonable fee for this
11 information. Provides that the amount of any fee paid for
this information must be added to the opening bid for a
12 tax deed for the property. Requires the department to
report levels of assessment based on a 4-year average.
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