1 | A bill to be entitled |
2 | An act relating to determination of the just value of |
3 | property; amending s. 193.011, F.S.; providing a |
4 | methodology for determining the just value of property for |
5 | ad valorem tax purposes; providing requirements of |
6 | property appraisers; specifying criteria, requirements, |
7 | and limitations for such determinations based on use; |
8 | specifying requirements for determining the just value of |
9 | affordable rental housing; requiring annual |
10 | determinations; authorizing the Department of Revenue to |
11 | adopt, amend, or repeal rules; amending ss. 193.114, |
12 | 193.461, 193.503, 193.625, and 195.027, F.S., to conform; |
13 | providing application; providing a contingent effective |
14 | date. |
15 |
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16 | Be It Enacted by the Legislature of the State of Florida: |
17 |
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18 | Section 1. Section 193.011, Florida Statutes, is amended |
19 | to read: |
20 | (Substantial rewording of section. See s. |
21 | 193.011, Florida Statutes, for current text.) |
22 | 193.011 Determination of just value for purposes of |
23 | assessment of ad valorem taxes.-- |
24 | (1) "Just value" means and includes, but is not limited |
25 | to, market value, cash value, actual cash value, proper value, |
26 | and value for the purposes of appraisal for ad valorem taxation. |
27 | (2) With respect to each and every parcel of property |
28 | subject to assessment, the property appraiser shall, in |
29 | ascertaining just value, consider whenever possible the income |
30 | capitalization approach to value, the cost approach to value, |
31 | and the market data approach to value, as such approaches are |
32 | determined by the Department of Revenue pursuant to s. 195.032. |
33 | For differing types of categories of property, differing |
34 | approaches may be appropriate. The choice of the particular |
35 | valuation approach or approaches to be used should be made by |
36 | the property appraiser upon a consideration of the category or |
37 | nature of the property, the approaches to value for which the |
38 | highest quality data is available, and the current use of the |
39 | property. |
40 | (3) Except as otherwise provided in subsection (4), in |
41 | determining the just value of land and improvements thereon, |
42 | factors to be taken into consideration are the proximity to |
43 | navigation; to a highway; to a railroad; to a municipality or |
44 | road; and any other circumstances that tend to affect its value, |
45 | not what the property might bring at a forced sale but what the |
46 | owner would be willing to accept and would reasonably expect to |
47 | receive for the property if he or she were disposed to sell the |
48 | property to another person able and willing to buy the property. |
49 | (4)(a) In arriving at the just value of all property and |
50 | improvements, the appraisal shall be made according to current |
51 | use, regardless of location. |
52 | (b) In arriving at the just value of any land used for |
53 | agricultural purposes, the appraisal shall be made according to |
54 | its use on January 1 of each year, regardless of its location. |
55 | In making the appraisal, the property appraiser shall use soil |
56 | types, productivity, and other criteria set forth in the |
57 | standard measures of value established by the Department of |
58 | Revenue pursuant to s. 195.032, which criteria shall include, |
59 | but not be limited to, an income capitalization approach with a |
60 | capitalization rate of not less than 10 percent and a moving |
61 | average of not more than 10 years. However, for the year 2007, |
62 | the moving average shall be not more than 5 years; for the year |
63 | 2008, not more than 6 years; for the year 2009, not more than 7 |
64 | years; for the year 2010, not more than 8 years; and for the |
65 | year 2011, not more than 9 years; and for the year 2007, the |
66 | variation up or down from the previous year shall not exceed 20 |
67 | percent and thereafter, the variation, up or down, from a |
68 | previous year shall not exceed 20 percent. The land shall be |
69 | deemed to be used for agricultural purposes when the land is |
70 | devoted to the commercial production of crops and other |
71 | commercial products of the soil, including, but not limited to, |
72 | the production of fruits and timber or the raising of livestock |
73 | and poultry; however, enrollment in the federal Conservation |
74 | Reserve Program or in any other United States Department of |
75 | Agriculture conservation program shall not preclude land being |
76 | deemed to be used for agricultural purposes solely on the ground |
77 | that the land is not being devoted to the production of |
78 | commercial products of the soil, and income derived from |
79 | participation in the federal program may be used in combination |
80 | with other relevant criteria to determine the just value of such |
81 | land. The just value of aquaculture shall be determined in the |
82 | same manner as that used to determine the just value of row |
83 | crops. |
84 | (c) In determining the just value based upon current use, |
85 | no consideration shall be taken of the prospective value such |
86 | property might have if the property were put to some other |
87 | possible use. |
88 | (d) In arriving at the just value of affordable rental |
89 | housing, the assessor shall use the appraisal procedure set |
90 | forth in the standard measures of value established by the |
91 | Department of Revenue pursuant to s. 195.032. Such procedure |
92 | shall prescribe that the appraisal shall be made according to |
93 | actual net operating income attributable to the property, |
94 | capitalized at a market value capitalization rate prescribed by |
95 | the Department of Revenue that reflects the prevailing cost of |
96 | capital for commercial real estate in the geographical market in |
97 | which the affordable rental housing is located adjusted for the |
98 | enhanced risk that any recorded land use regulation places on |
99 | the net operating income from the property. The owner of |
100 | affordable rental housing shall provide to the county tax |
101 | assessor on or before April 1 of each year an accurate statement |
102 | of the actual net operating income attributable to the property |
103 | for the immediately preceding year prepared in accordance with |
104 | generally acceptable accounting principles. As used in this |
105 | paragraph: |
106 | 1. "Affordable rental housing" means residential housing |
107 | consisting of one or more rental units, the construction or |
108 | rental of which is subject to s. 42 of the Internal Revenue |
109 | Code; the HOME Investment Partnership Program under the |
110 | Cranston-Gonzalez National Affordable Housing Act, 42 U.S.C. s. |
111 | 12741 et seq.; the Federal Home Loan Banks Affordable Housing |
112 | Program established pursuant to the Financial Institutions |
113 | Reform, Recovery and Enforcement Act of 1989, Public Law 101-73; |
114 | or any other federal, state, or similar program intended to |
115 | provide affordable housing to persons of low or moderate income |
116 | and the occupancy and maximum rental rates of such housing are |
117 | restricted based on the income of the persons occupying such |
118 | housing. |
119 | 2. "Land use regulation" means a restriction imposed by an |
120 | extended low-income housing agreement or other covenant recorded |
121 | in the applicable land records or by applicable law or |
122 | regulation restricting the maximum income or residents or the |
123 | maximum rental rate in the affordable rental housing. |
124 | (5) The just value of each class of property shall be |
125 | determined annually. |
126 | (6) The Department of Revenue may adopt, amend, or repeal |
127 | such rules or regulations in a manner consistent with the State |
128 | Constitution and the laws of this state to implement the duties |
129 | assigned to the department in this section. |
130 | Section 2. Paragraph (b) of subsection (2) and paragraph |
131 | (b) of subsection (3) of section 193.114, Florida Statutes, are |
132 | amended to read: |
133 | 193.114 Preparation of assessment rolls.-- |
134 | (2) The department shall promulgate regulations and forms |
135 | for the preparation of the real property assessment roll to |
136 | reflect: |
137 | (b) The just value (pursuant to using the factors set out |
138 | in s. 193.011) of all property. |
139 | (3) The department shall promulgate regulations and forms |
140 | for the preparation of the tangible personal property roll to |
141 | reflect: |
142 | (b) The just value (pursuant to using the factors set out |
143 | in s. 193.011) of all such property subject to taxation. |
144 | Section 3. Subsection (2) of section 193.461, Florida |
145 | Statutes, is amended to read: |
146 | 193.461 Agricultural lands; classification and assessment; |
147 | mandated eradication or quarantine program.-- |
148 | (2) Any landowner whose land is denied agricultural |
149 | classification by the property appraiser may appeal to the value |
150 | adjustment board. The property appraiser shall notify the |
151 | landowner in writing of the denial of agricultural |
152 | classification on or before July 1 of the year for which the |
153 | application was filed. The notification shall advise the |
154 | landowner of his or her right to appeal to the value adjustment |
155 | board and of the filing deadline. The board may also review all |
156 | lands classified by the property appraiser upon its own motion. |
157 | The property appraiser shall have available at his or her office |
158 | a list by ownership of all applications received showing the |
159 | acreage, the just full valuation under s. 193.011, the valuation |
160 | of the land under the provisions of this section, and whether or |
161 | not the classification requested was granted. |
162 | Section 4. Subsection (7) of section 193.503, Florida |
163 | Statutes, is amended to read: |
164 | 193.503 Classification and assessment of historic property |
165 | used for commercial or certain nonprofit purposes.-- |
166 | (7) Any property owner who is denied classification under |
167 | this section may appeal to the value adjustment board. The |
168 | property appraiser shall notify the property owner in writing of |
169 | the denial of such classification on or before July 1 of the |
170 | year for which the application was filed. The notification shall |
171 | advise the property owner of his or her right to appeal to the |
172 | value adjustment board and of the filing deadline. The board may |
173 | also review all property classified by the property appraiser |
174 | upon its own motion. The property appraiser shall have available |
175 | at his or her office a list by ownership of all applications |
176 | received showing the just full valuation under s. 193.011, the |
177 | valuation of the property under the provisions of this section, |
178 | and whether or not the classification requested was granted. |
179 | Section 5. Subsection (2) of section 193.625, Florida |
180 | Statutes, is amended to read: |
181 | 193.625 High-water recharge lands; classification and |
182 | assessment.-- |
183 | (2) Any landowner whose land is within a county that has a |
184 | high-water recharge protection tax assessment program and whose |
185 | land is denied high-water recharge classification by the |
186 | property appraiser may appeal to the value adjustment board. The |
187 | property appraiser shall notify the landowner in writing of the |
188 | denial of high-water recharge classification on or before July 1 |
189 | of the year for which the application was filed. The |
190 | notification must advise the landowner of a right to appeal to |
191 | the value adjustment board and of the filing deadline. The board |
192 | may also review all lands classified by the property appraiser |
193 | upon its own motion. The property appraiser shall have available |
194 | at her or his office a list by ownership of all applications |
195 | received showing the acreage, the just full valuation under s. |
196 | 193.011, the valuation of the land under the provisions of this |
197 | section, and whether or not the classification requested was |
198 | granted. |
199 | Section 6. Paragraph (b) of subsection (4) of section |
200 | 195.027, Florida Statutes, is amended to read: |
201 | 195.027 Rules and regulations.-- |
202 | (4) |
203 | (b) For purposes of this subsection, a class of property |
204 | shall include only those items which are substantially similar |
205 | in function and use. Nothing in this chapter shall authorize the |
206 | department to prescribe a return requiring information other |
207 | than that contained in this subsection; nor shall the department |
208 | issue or promulgate any rule or regulation directing the |
209 | assessment of property by the consideration of factors other |
210 | than as provided those enumerated in s. 193.011. |
211 | Section 7. This act shall take effect on the effective |
212 | date of the amendment to the State Constitution proposed in |
213 | House Joint Resolution 1545, which authorizes the classification |
214 | and assessment of any real property based on character or use, |
215 | if approved by the electors of this state at the 2006 general |
216 | election, and, if approved, shall apply to classifications and |
217 | assessments of property beginning in the year in which that |
218 | amendment to the State Constitution takes effect. |