| 1 | A bill to be entitled |
| 2 | An act relating to ad valorem taxation; creating s. |
| 3 | 689.28, F.S.; providing legislative findings; requiring a |
| 4 | seller of residential property to provide to the purchaser |
| 5 | a disclosure form that discloses certain ad valorem tax |
| 6 | ramifications that can result from the purchase; providing |
| 7 | form contents; providing an effective date. |
| 8 |
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| 9 | Be It Enacted by the Legislature of the State of Florida: |
| 10 |
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| 11 | Section 1. Section 689.28, Florida Statutes, is created to |
| 12 | read: |
| 13 | 689.28 Residential property tax disclosure statement.-- |
| 14 | (1) The Legislature finds that it is necessary to ensure |
| 15 | that the purchaser of improved residential real property is |
| 16 | fully apprised that the taxable value of the real property, as |
| 17 | determined by the property appraiser for the county in which the |
| 18 | real property lies, is subject to reassessment to just value on |
| 19 | January 1 of the year following a change in ownership, as |
| 20 | required by s. 193.155(3). |
| 21 | (2) A seller in any transaction involving improved |
| 22 | residential real property shall provide to the purchaser a |
| 23 | disclosure in a form substantially similar to the following: |
| 24 | DISCLOSURE OF AD VALOREM TAX RAMIFICATIONS |
| 25 | You are purchasing land on which a residence is located. As with |
| 26 | all nonexempt land and buildings, the property is subject each |
| 27 | year to property taxes levied by various taxing authorities, |
| 28 | such as counties, municipalities, and school boards. However, as |
| 29 | explained below, your property taxes in subsequent years may be |
| 30 | substantially more than the taxes paid in recent years by the |
| 31 | seller. |
| 32 |
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| 33 | Florida's State Constitution and laws limit the amount by which |
| 34 | the value of homestead property can increase each year for tax |
| 35 | purposes. This limitation is known as the "Save Our Homes" cap. |
| 36 |
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| 37 | As time goes on, the "just" value or "market" value of a home |
| 38 | can increase at a higher rate than the "taxable" value because |
| 39 | the Save Our Homes cap limits the rate at which the taxable |
| 40 | value can increase. However, when the property is sold to a new |
| 41 | owner, by law the taxable value is reassessed and, in many |
| 42 | cases, raised to "just" or "market" value. The result is that |
| 43 | property taxes on the same home can be substantially higher for |
| 44 | a buyer than they were for the seller. |
| 45 | Section 2. This act shall take effect July 1, 2004. |