Senate Bill sb1430c1

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    Florida Senate - 2006                           CS for SB 1430

    By the Committee on Government Efficiency Appropriations





    593-1839-06

  1                      A bill to be entitled

  2         An act relating to property taxation; amending

  3         s. 193.155, F.S.; providing conditions under

  4         which changes, additions, or improvements that

  5         replace all or a portion of homestead property

  6         damaged or destroyed by misfortune or calamity

  7         shall not be assessed at just value; amending

  8         s. 196.031, F.S.; providing conditions under

  9         which homestead property that is damaged or

10         destroyed by misfortune or calamity and is

11         uninhabitable on January 1 after the damage or

12         destruction occurs may be granted the homestead

13         exemption; providing for retroactive

14         application; providing an effective date.

15  

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

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18         Section 1.  Subsection (4) of section 193.155, Florida

19  Statutes, is amended to read:

20         193.155  Homestead assessments.--Homestead property

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

22  Property receiving the homestead exemption after January 1,

23  1994, shall be assessed at just value as of January 1 of the

24  year in which the property receives the exemption.

25         (4)(a)  Except as provided in paragraph (b), changes,

26  additions, or improvements to homestead property shall be

27  assessed at just value as of the first January 1 after the

28  changes, additions, or improvements are substantially

29  completed.

30         (b)  Changes, additions, or improvements that replace

31  all or do not include replacement of a portion of real

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    Florida Senate - 2006                           CS for SB 1430
    593-1839-06




 1  property damaged or destroyed by misfortune or calamity shall

 2  not increase the assessed value when the square footage of the

 3  homestead property as changed or improved does not exceed 110

 4  percent of the square footage of the property before the

 5  damage or destruction just value of the damaged or destroyed

 6  portion as replaced is not more than 125 percent of the just

 7  value of the damaged or destroyed portion. Additionally, the

 8  assessed value shall not increase if the total square footage

 9  of the property as changed or improved does not exceed 1,500

10  square feet. Changes, additions, or improvements that do not

11  cause the total to exceed 110 percent of the total square

12  footage of the property before the damage or destruction, or

13  that do not cause the total to exceed 1,500 total square feet,

14  shall be reassessed as provided under subsection (1). Assessed

15  value shall be increased by the just value of that portion of

16  the changed or improved homestead property any replaced real

17  property, or portion thereof, which is in excess of 110 125

18  percent of the square footage of the homestead before the

19  damage or destruction or that portion exceeding 1,500 square

20  feet just value of the damaged or destroyed property shall be

21  deemed to be a change, addition, or improvement. Homestead

22  Replaced real property damaged or destroyed by misfortunes or

23  calamity which, after being changed or improved, has a square

24  footage with a just value of less than 100 percent of the

25  original property's total square footage before the damage or

26  destruction just value shall be assessed pursuant to

27  subsection (5). This paragraph applies to changes, additions,

28  or improvements commenced within 3 years after the January 1

29  following the damage or destruction of the homestead.

30         (c)  Changes, additions, or improvements that replace

31  all or a portion of real property that was damaged or

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    Florida Senate - 2006                           CS for SB 1430
    593-1839-06




 1  destroyed by misfortune or calamity shall be assessed upon

 2  substantial completion as if such damage or destruction had

 3  not occurred and in accordance with paragraph (b) if the owner

 4  of such property:

 5         1.  Was permanently residing on such property when the

 6  damage or destruction occurred;

 7         2.  Was not entitled to receive homestead exemption on

 8  such property as of January 1 of that year; and

 9         3.  Applies for and receives homestead exemption on

10  such property the following year.

11         (d)(c)  Changes, additions, or improvements include

12  improvements made to common areas or other improvements made

13  to property other than to the homestead property by the owner

14  or by an owner association, which improvements directly

15  benefit the homestead property. Such changes, additions, or

16  improvements shall be assessed at just value, and the just

17  value shall be apportioned among the parcels benefiting from

18  the improvement.

19         Section 2.  Subsection (7) is added to section 196.031,

20  Florida Statutes, to read:

21         196.031  Exemption of homesteads.--

22         (7)  When homestead property is damaged or destroyed by

23  misfortune or calamity and the property is uninhabitable on

24  January 1 after the damage or destruction occurs, the

25  homestead exemption may be granted if the property is

26  otherwise qualified and if the property owner notifies the

27  property appraiser that he or she intends to repair or rebuild

28  the property and live in it as his or her primary residence

29  after it is repaired or rebuilt and does not claim a homestead

30  exemption on any other property or otherwise violate this

31  section. Failure by the property owner to commence the repair

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    Florida Senate - 2006                           CS for SB 1430
    593-1839-06




 1  or rebuilding of the homestead property within 3 years after

 2  January 1 following its damage or destruction constitutes

 3  abandonment of the property as a homestead.

 4         Section 3.  This act shall take effect upon becoming a

 5  law and shall apply retroactively to homestead property

 6  replaced on or after January 1, 2006.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                             SB 1430

10                                 

11  This committee substitute requires property owners to commence
    repairs within 3 years of the January 1 following the damage
12  or destruction and removes some language regarding assessment
    of additions or improvements that the property appraisers had
13  found potentially confusing. It extends the provisions of the
    bill to permanent residents who had moved into their homes
14  after January 1 (and therefore did not have homestead status),
    as long as they apply for homestead the following January 1.
15  It provides that failure to commence repairs or rebuilding
    within 3 years of the January 1 following damage or
16  destruction constitutes abandonment of the property as a
    homestead, and it clarifies that the bill applies to homestead
17  property replaced on or after the effective date of the bill,
    even if it was damaged or destroyed before that date.
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