Senate Bill sb2444

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    Florida Senate - 2004                                  SB 2444

    By Senator Margolis





    35-1370B-04

  1                      A bill to be entitled

  2         An act relating to property tax; amending s.

  3         193.155, F.S.; providing an additional type of

  4         transfer that does not create a change in

  5         ownership for purposes of homestead

  6         assessments; amending s. 194.011, F.S.;

  7         revising requirements for petitioners and

  8         property appraisers with respect to providing

  9         evidence lists and documentation for

10         proceedings of the value adjustment board;

11         amending s. 194.032, F.S.; requiring that a

12         petitioner be notified earlier of a scheduled

13         appearance before the value adjustment board;

14         amending s. 195.062, F.S.; authorizing the

15         Department of Revenue to provide additional

16         information in its update of the manual of

17         instructions for property appraisers and other

18         officials; repealing s. 373.516, F.S., relating

19         to the assessment of rights-of-way of railroads

20         and other public service corporations; creating

21         s. 689.261, F.S.; requiring a seller to give

22         notice to the prospective purchaser of

23         homestead property concerning ad valorem taxes

24         on the property; specifying the form of notice;

25         providing for the right of the purchaser to

26         void the contract for sale under certain

27         circumstances; creating s. 193.017, F.S.;

28         providing for assessment of property used for

29         affordable housing and subject to a low-income

30         housing tax credit; providing an effective

31         date.

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    Florida Senate - 2004                                  SB 2444
    35-1370B-04




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

 2  

 3         Section 1.  Subsection (3) of section 193.155, Florida

 4  Statutes, is amended to read:

 5         193.155  Homestead assessments.--Homestead property

 6  shall be assessed at just value as of January 1, 1994.

 7  Property receiving the homestead exemption after January 1,

 8  1994, shall be assessed at just value as of January 1 of the

 9  year in which the property receives the exemption.

10         (3)  Except as provided in this subsection, property

11  assessed under this section shall be assessed at just value as

12  of January 1 of the year following a change of ownership.

13  Thereafter, the annual changes in the assessed value of the

14  property are subject to the limitations in subsections (1) and

15  (2). For the purpose of this section, a change in ownership

16  means any sale, foreclosure, or transfer of legal title or

17  beneficial title in equity to any person, except as provided

18  in this subsection. There is no change of ownership if:

19         (a)  Subsequent to the change or transfer, the same

20  person is entitled to the homestead exemption as was

21  previously entitled and:

22         1.  The transfer of title is to correct an error; or

23         2.  The transfer is between legal and equitable title;

24  or

25         3.  The transfer adds additional owners other than a

26  spouse to the existing ownership and the additional owners do

27  not apply for or claim the homestead exemption;

28         (b)  The transfer is between husband and wife,

29  including a transfer to a surviving spouse or a transfer due

30  to a dissolution of marriage;

31  

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    Florida Senate - 2004                                  SB 2444
    35-1370B-04




 1         (c)  The transfer occurs by operation of law under s.

 2  732.4015; or

 3         (d)  Upon the death of the owner, the transfer is

 4  between the owner and another who is a permanent resident and

 5  is legally or naturally dependent upon the owner.

 6         Section 2.  Subsection (4) of section 194.011, Florida

 7  Statutes, is amended to read:

 8         194.011  Assessment notice; objections to

 9  assessments.--

10         (4)(a)  At least 15 10 days before the hearing, the

11  petitioner shall provide to the property appraiser a list of

12  evidence to be presented at the hearing, together with copies

13  of all documentation to be considered by the value adjustment

14  board and a summary of evidence to be presented by witnesses.

15         (b)  No later than 5 days before the hearing, if after

16  the petitioner has provided provides the information required

17  under paragraph (a), and if requested in writing by the

18  petitioner, the property appraiser shall provide to the

19  petitioner a list of evidence to be presented at the hearing,

20  together with copies of all documentation to be considered by

21  the value adjustment board and a summary of evidence to be

22  presented by witnesses. The evidence list must contain the

23  property record card if provided by the clerk.

24         Section 3.  Subsection (2) of section 194.032, Florida

25  Statutes, is amended to read:

26         194.032  Hearing purposes; timetable.--

27         (2)  The clerk of the governing body of the county

28  shall prepare a schedule of appearances before the board based

29  on petitions timely filed with him or her.  The clerk shall

30  notify each petitioner of the scheduled time of his or her

31  appearance no less than 25 20 calendar days prior to the day

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    Florida Senate - 2004                                  SB 2444
    35-1370B-04




 1  of such scheduled appearance. Upon receipt of this

 2  notification, the petitioner shall have the right to

 3  reschedule the hearing a single time by submitting to the

 4  clerk of the governing body of the county a written request to

 5  reschedule, no less than 5 calendar days before the day of the

 6  originally scheduled hearing. A copy of the property record

 7  card containing relevant information used in computing the

 8  taxpayer's current assessment shall be included with such

 9  notice, if said card was requested by the taxpayer.  Such

10  request shall be made by checking an appropriate box on the

11  petition form.  No petitioner shall be required to wait for

12  more than 4 hours from the scheduled time; and, if his or her

13  petition is not heard in that time, the petitioner may, at his

14  or her option, report to the chairperson of the meeting that

15  he or she intends to leave; and, if he or she is not heard

16  immediately, the petitioner's administrative remedies will be

17  deemed to be exhausted, and he or she may seek further relief

18  as he or she deems appropriate. Failure on three occasions

19  with respect to any single tax year to convene at the

20  scheduled time of meetings of the board shall constitute

21  grounds for removal from office by the Governor for neglect of

22  duties.

23         Section 4.  Subsection (1) of section 195.062, Florida

24  Statutes, is amended to read:

25         195.062  Manual of instructions.--

26         (1)  The department shall prepare and maintain a

27  current manual of instructions for property appraisers and

28  other officials connected with the administration of property

29  taxes. This manual shall contain all:

30         (a)  Rules and regulations.

31         (b)  Standard measures of value.

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    Florida Senate - 2004                                  SB 2444
    35-1370B-04




 1         (c)  Forms and instructions relating to the use of

 2  forms and maps.

 3  

 4  Consistent with s. 195.032, the standard measures of value

 5  shall be adopted in general conformity with the procedures set

 6  forth in s. 120.54, but shall not have the force or effect of

 7  such rules and shall be used only to assist tax officers in

 8  the assessment of property as provided by s. 195.002.

 9  Guidelines may be updated annually to incorporate new market

10  data, which may be in tabular form, technical changes, changes

11  indicated by established decisions of the Supreme Court, and,

12  if a summary of justification is set forth in the notice

13  required under s. 120.54, other changes relevant to

14  appropriate assessment practices or standard measurement of

15  value. Such new data may be incorporated into the guidelines

16  on the approval of the executive director if after notice in

17  substantial conformity with s. 120.54 there is no objection

18  filed with the department within 45 days, and the procedures

19  set forth in s. 120.54 do not apply.

20         Section 5.  Section 373.516, Florida Statutes, is

21  repealed.

22         Section 6.  Section 689.261, Florida Statutes, is

23  created to read:

24         689.261  Sale of homestead property; disclosure of ad

25  valorem taxes to prospective purchaser.--

26         (1)  A prospective purchaser of homestead property must

27  be presented a disclosure summary before executing the

28  contract for sale. Unless a substantially similar disclosure

29  summary is included in the contract for sale, a separate

30  disclosure summary must be attached to the contract for sale.

31  

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    Florida Senate - 2004                                  SB 2444
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 1  The disclosure summary must be in a form substantially similar

 2  to the following:

 3  

 4                          AD VALOREM TAX

 5                        DISCLOSURE SUMMARY

 6  

 7         1. THE AD VALOREM TAXES ON THE PROPERTY FOR THE YEAR

 8  SUBSEQUENT TO THE PURCHASE MAY BE IN EXCESS OF THE AD VALOREM

 9  TAXES ASSESSED AT THE TIME OF SALE.

10         2. THE AD VALOREM TAXES ARE REQUIRED TO BE ASSESSED AT

11  JUST VALUE ON THE PROPERTY IN THE YEAR FOLLOWING A SALE IF A

12  CHANGE OF OWNERSHIP AS DEFINED IN SECTION 193.155(3), FLORIDA

13  STATUTES, HAS OCCURRED.

14         3. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION AND

15  AD VALOREM TAXES, PLEASE CONTACT YOUR COUNTY PROPERTY

16  APPRAISER OR TAX COLLECTOR.

17  

18         (2)  Unless included in the contract, the disclosure

19  summary must be provided by the seller. If the disclosure

20  summary is not included in the contract for sale, the contract

21  for sale must refer to and incorporate the disclosure summary

22  and all contracts for sale must include, in prominent

23  language, a statement that the potential purchaser should not

24  execute the contract until he or she has read the disclosure

25  summary required by this section. If the disclosure summary

26  required by this section has not been provided to the

27  prospective purchaser before executing the contract for sale,

28  the contract is voidable by the purchaser by delivering to the

29  seller, or the seller's agent, written notice of the

30  purchaser's intention to cancel either within 3 days after

31  receipt of the disclosure summary or 3 days prior to closing,

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    Florida Senate - 2004                                  SB 2444
    35-1370B-04




 1  whichever occurs first. The right of the purchaser to void the

 2  contract for sale terminates at closing.

 3         Section 7.  Section 193.017, Florida Statutes, is

 4  created to read:

 5         193.017  Low-income housing tax credit.--Property used

 6  for affordable housing which has received a low-income housing

 7  tax credit from the Florida Housing Finance Corporation, as

 8  authorized by s. 420.5099, shall be assessed under s. 193.011

 9  and, consistent with s. 420.5099(5) and (6), pursuant to this

10  section.

11         (1)  The tax credits granted and the financing

12  generated by the tax credits may not be considered as income

13  to the property.

14         (2)  The actual rental income from rent-restricted

15  units in such a property shall be recognized by the property

16  appraiser.

17         (3)  Any costs paid for by tax credits and costs paid

18  for by additional financing proceeds received under chapter

19  420 may not be included in the valuation of the property.

20         (4)  If an extended low-income housing agreement is

21  filed in the official public records of the county in which

22  the property is located, the agreement, and any recorded

23  amendment or supplement thereto, shall be considered a

24  land-use regulation and a limitation on the highest and best

25  use of the property during the term of the agreement,

26  amendment, or supplement.

27         (5)  Any other evidence of the value of the property

28  shall be considered only in connection with the actual use of

29  the property for affordable housing or as property subject to

30  a low-income housing tax credit.

31         Section 8.  This act shall take effect January 1, 2005.

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    Florida Senate - 2004                                  SB 2444
    35-1370B-04




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

 2                          SENATE SUMMARY

 3    Revises the requirements for providing evidence lists and
      documentation for proceedings of the value adjustment
 4    board. Authorizes the Department of Revenue to provide
      additional information in updating the manual of
 5    instructions for property appraisers. Repeals provisions
      governing the assessment of rights-of-way of railroads
 6    and other public service corporations. Requires a seller
      of homestead property to give notice to the prospective
 7    purchaser concerning ad valorem taxes on the property.
      Prescribes the form of the notice. Provides requirements
 8    for assessing property that is subject to a low-income
      housing tax credit.
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