Senate Bill sb1824e1

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    CS for SB 1824                                 First Engrossed



  1                      A bill to be entitled

  2         An act relating to subdivision property;

  3         amending s. 197.502, F.S.; increasing the fee

  4         for tax deed applications; providing

  5         notification to legal titleholders of

  6         contiguous property which is included in a tax

  7         certificate for unpaid taxes; requiring a

  8         county to notify the legal titleholder of

  9         property contiguous to land available for taxes

10         prior to sale under certain circumstances;

11         amending s. 197.582, F.S.; excluding certain

12         persons as beneficiaries of certain

13         undistributed remainder funds; amending s.

14         197.522, F.S.; requiring notification to

15         certain persons when an application for a tax

16         deed is made; providing for a statement to

17         accompany such notice; prohibiting the

18         assessment of ad valorem taxes and non-ad

19         valorem assessments by certain entities against

20         property constituting the common elements of a

21         subdivision; requiring that the property

22         appraiser prorate the value of ad valorem taxes

23         and non-ad valorem assessments against

24         easements and other common elements of a

25         subdivision and include such prorated value

26         among the lots within the subdivision conveyed

27         or intended to be conveyed into private

28         ownership; defining the term "common element";

29         providing notification to legal titleholders of

30         contiguous property which is included in a tax

31         certificate for unpaid taxes; amending s.


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    CS for SB 1824                                 First Engrossed



 1         197.502, F.S.; providing for notification to

 2         the legal titleholder of lands contiguous to

 3         land available for taxes prior to the sale of

 4         said lands; amending s. 197.582, F.S., to

 5         exclude from the requirement for the clerk of

 6         court to retain certain fund balances above

 7         those required to satisfy tax liens those

 8         titleholders receiving notice pursuant to s.

 9         197.502, F.S.; creating a prohibition of the

10         assessment of an ad valorem tax or non-ad

11         valorem assessment by certain entities against

12         property constituting the common elements of a

13         subdivision; requiring that the property

14         appraiser prorate the value of taxes and

15         special assessments against recreational

16         facilities, easements, and other common

17         elements of a subdivision and include such

18         prorated value among the lots within the

19         subdivision conveyed or intended to be conveyed

20         into private ownership; defining the term

21         "common element" for purposes of this act;

22         amending s. 197.522, F.S.; requiring the clerk

23         to give notice to certain individuals, by

24         certified mail with return receipt requested or

25         by registered mail, that the application for

26         tax deed has been made; providing that such

27         notice be mailed 20 days prior to the date of

28         sale; providing for no notice in certain

29         circumstances; creating a requirement for the

30         clerk of court to give certain prior notice to

31         persons listed in the tax collector's statement


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    CS for SB 1824                                 First Engrossed



 1         regarding proposed sale of tax delinquent

 2         properties; providing an effective date.

 3  

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

 5  

 6         Section 1.  Subsection (1) of section 197.502, Florida

 7  Statutes, is amended, paragraph (h) is added to subsection (4)

 8  of that section, and subsection (7) of that section is

 9  amended, to read:

10         197.502  Application for obtaining tax deed by holder

11  of tax sale certificate; fees.--

12         (1)  The holder of any tax certificate, other than the

13  county, at any time after 2 years have elapsed since April 1

14  of the year of issuance of the tax certificate and before the

15  expiration of 7 years from the date of issuance, may file the

16  certificate and an application for a tax deed with the tax

17  collector of the county where the lands described in the

18  certificate are located. The application may be made on the

19  entire parcel of property or any part thereof which is capable

20  of being readily separated from the whole. The tax collector

21  shall be allowed a tax deed application fee of $75 $15.

22         (4)  The tax collector shall deliver to the clerk of

23  the circuit court a statement that payment has been made for

24  all outstanding certificates or, if the certificate is held by

25  the county, that all appropriate fees have been deposited, and

26  stating that the following persons are to be notified prior to

27  the sale of the property:

28         (h)  Any legal titleholder of record of property that

29  is contiguous to the property described in the tax

30  certificate, when the property described is either submerged

31  land or common elements of a subdivision, if the address of


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    CS for SB 1824                                 First Engrossed



 1  the titleholder of contiguous property appears on the record

 2  of conveyance of the land to that legal titleholder. However,

 3  if the legal titleholder of property contiguous to the

 4  property described in the tax certificate is the same as the

 5  person to whom the property described in the tax certificate

 6  was assessed on the tax roll for the year in which the

 7  property was last assessed, the notice may be mailed only to

 8  the address of the legal titleholder as it appears on the

 9  latest assessment roll.

10         (7)  On county-held certificates for which there are no

11  bidders at the public sale, the clerk shall enter the land on

12  a list entitled "lands available for taxes" and shall

13  immediately notify the county commission and all other persons

14  holding certificates against the land that the land is

15  available. During the first 90 days after the land is placed

16  on the list of lands available for taxes, the county may

17  purchase the land for the opening bid. Thereafter, any person,

18  the county, or any other governmental unit may purchase the

19  land from the clerk, without further notice or advertising,

20  for the opening bid, except that when the county or other

21  governmental unit is the purchaser for its own use, the board

22  of county commissioners may cancel omitted years' taxes, as

23  provided under s. 197.447. If the county does not elect to

24  purchase the land, the county must notify each legal

25  titleholder of property contiguous to the land available for

26  taxes, as provided in paragraph (4)(h), before expiration of

27  the 90-day period. Interest on the opening bid continues to

28  accrue through the month of sale as prescribed by s. 197.542.

29         Section 2.  Subsection (2) of section 197.582, Florida

30  Statutes, is amended to read:

31         197.582  Disbursement of proceeds of sale.--


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    CS for SB 1824                                 First Engrossed



 1         (2)  If the property is purchased for an amount in

 2  excess of the statutory bid of the certificateholder, the

 3  excess shall be paid over and disbursed by the clerk. If the

 4  property purchased is homestead property and the statutory bid

 5  includes an amount equal to at least one-half of the assessed

 6  value of the homestead, that amount shall be treated as excess

 7  and distributed in the same manner. The clerk shall distribute

 8  the excess to the governmental units for the payment of any

 9  lien of record held by a governmental unit against the

10  property. In the event the excess is not sufficient to pay all

11  of such liens in full, the excess shall then be paid to each

12  governmental unit pro rata. If, after all liens of record of

13  the governmental units upon the property are paid in full,

14  there remains a balance of undistributed funds, the balance of

15  the purchase price shall be retained by the clerk for the

16  benefit of the persons described in s. 197.522(1)(a), except

17  those persons described in s. 197.502(4)(h), as their

18  interests may appear. The clerk shall mail notices to such

19  persons notifying them of the funds held for their benefit.

20  Any service charges, at the same rate as prescribed in s.

21  28.24(13), and costs of mailing notices shall be paid out of

22  the excess balance held by the clerk. Excess proceeds shall be

23  held and disbursed in the same manner as unclaimed redemption

24  moneys in s. 197.473. In the event excess proceeds are not

25  sufficient to cover the service charges and mailing costs, the

26  clerk shall receive the total amount of excess proceeds as a

27  service charge.

28         Section 3.  Subsection (2) of section 197.522, Florida

29  Statutes, is amended to read:

30         197.522  Notice to owner when application for tax deed

31  is made.--


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    CS for SB 1824                                 First Engrossed



 1         (2)(a)  In addition to the notice provided in

 2  subsection (1), the sheriff of the county in which the legal

 3  titleholder resides shall, at least 20 days prior to the date

 4  of sale, notify the legal titleholder of record of the

 5  property on which the tax certificate is outstanding. The

 6  original notice and sufficient copies shall be prepared by the

 7  clerk and provided to the sheriff. Such notice shall be served

 8  as specified in chapter 48; if the sheriff is unable to make

 9  service, he or she shall post a copy of the notice in a

10  conspicuous place at the legal titleholder's last known

11  address. The inability of the sheriff to serve notice on the

12  legal titleholder shall not affect the validity of the tax

13  deed issued pursuant to the notice. A legal titleholder of

14  record who resides outside the state may be notified by the

15  clerk as provided in subsection (1). The notice shall be in

16  substantially the following form:

17  

18         WARNING

19  

20         There are unpaid taxes on the property which you own.

21  The property will be sold at public auction on

22  ...  (date)  ... unless the back taxes are paid. To make

23  arrangements for payment, or to receive further information,

24  contact the clerk of court at ...  (address)  ...,

25  ...  (telephone number)  ....

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27         In addition, if the legal titleholder does not reside

28  in the county in which the property to be sold is located, a

29  copy of such notice shall be posted in a conspicuous place on

30  the property by the sheriff of the county in which the

31  property is located. However, no posting of notice shall be


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    CS for SB 1824                                 First Engrossed



 1  required if the property to be sold is classified for

 2  assessment purposes, according to use classifications

 3  established by the department, as nonagricultural acreage or

 4  vacant land.

 5         (b)  In addition to the notice provided in subsection

 6  (1), the clerk shall notify by certified mail with return

 7  receipt requested, or by registered mail if the notice is to

 8  be sent outside the continental United States, the persons

 9  listed in the tax collector's statement pursuant to s.

10  197.502(4)(h) that application for a tax deed has been made.

11  Such notice shall be mailed at least 20 days prior to the date

12  of sale. If no address is listed in the tax collector's

13  statement, then no notice shall be required. Enclosed with the

14  copy of the notice shall be a statement in substantially the

15  following form:

16         WARNING

17         There are unpaid taxes on property contiguous to your

18  property. The property with the unpaid taxes will be sold at

19  auction on ... (date) ... unless the back taxes are paid. To

20  make payment, or to receive further information about the

21  purchase of the property, contact the clerk of court

22  immediately at ... (address) ..., ... (telephone number) ....

23         Neither the failure of the tax collector to include the

24  list of contiguous property owners pursuant to s.

25  197.502(4)(h) in his or her statement to the clerk nor the

26  failure of the clerk to mail this notice to any or all of the

27  persons listed in the tax collector's statement pursuant to s.

28  197.502(4)(h) shall be a basis to challenge the validity of

29  the tax deed issued pursuant to any notice under s. 197.522.

30         Section 4.  Ad valorem taxes and non-ad valorem

31  assessments against subdivision property.--


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    CS for SB 1824                                 First Engrossed



 1         (1)  Ad valorem taxes and non-ad valorem assessments

 2  shall be assessed against the lots within a platted

 3  residential subdivision and not upon the subdivision property

 4  as a whole. An ad valorem tax or non-ad valorem assessment,

 5  including a tax or assessment imposed by a county,

 6  municipality, special district, or water management district,

 7  may not be assessed separately against common elements

 8  utilized exclusively for the benefit of lot owners within the

 9  subdivision, regardless of ownership. The value of each parcel

10  of land that is or has been part of a platted subdivision and

11  that is designated on the plat or the approved site plan as a

12  common element for the exclusive benefit of lot owners shall,

13  regardless of ownership, be prorated by the property appraiser

14  and included in the assessment of all the lots within the

15  subdivision which constitute inventory for the developer and

16  are intended to be conveyed or have been conveyed into private

17  ownership for the exclusive benefit of lot owners within the

18  subdivision.

19         (2)  As used in this section, the term "common element"

20  includes:

21         (a)  Subdivision property not included within lots

22  constituting inventory for the developer which are intended to

23  be conveyed or have been conveyed into private ownership.

24         (b)  An easement through the subdivision property, not

25  including the property described in paragraph (a), which has

26  been dedicated to the public or retained for the benefit of

27  the subdivision.

28         (c)  Any other part of the subdivision which has been

29  designated on the plat or is required to be designated on the

30  site plan as a drainage pond, or detention or retention pond,

31  for the exclusive benefit of the subdivision.


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    CS for SB 1824                                 First Engrossed



 1         Section 5.  This act shall take effect July 1, 2004.

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