| 1 | The Fiscal Council recommends the following: |
| 2 |
|
| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to homestead property assessments; |
| 7 | amending s. 193.155, F.S.; revising exceptions applicable |
| 8 | to damaged or destroyed homestead property to a |
| 9 | requirement that changes, additions, or improvements to |
| 10 | homestead property be assessed at just value under certain |
| 11 | circumstances; providing for application to certain |
| 12 | changes, additions, and improvements; providing for |
| 13 | assessment of homestead property after substantial |
| 14 | completion of changes, additions, and improvements; |
| 15 | providing criteria; amending s. 196.031,F.S.; providing |
| 16 | for the continued granting of a homestead exemption for |
| 17 | certain damaged or destroyed homestead property under |
| 18 | certain circumstances; specifying circumstances for |
| 19 | abandonment of property as homestead; providing for |
| 20 | retroactive application to certain property; providing an |
| 21 | effective date. |
| 22 |
|
| 23 | Be It Enacted by the Legislature of the State of Florida: |
| 24 |
|
| 25 | Section 1. Subsection (4) of section 193.155, Florida |
| 26 | Statutes, is amended to read: |
| 27 | 193.155 Homestead assessments.--Homestead property shall |
| 28 | be assessed at just value as of January 1, 1994. Property |
| 29 | receiving the homestead exemption after January 1, 1994, shall |
| 30 | be assessed at just value as of January 1 of the year in which |
| 31 | the property receives the exemption. |
| 32 | (4)(a) Except as provided in paragraph (b), changes, |
| 33 | additions, or improvements to homestead property shall be |
| 34 | assessed at just value as of the first January 1 after the |
| 35 | changes, additions, or improvements are substantially completed. |
| 36 | (b) Changes, additions, or improvements that replace all |
| 37 | or do not include replacement of a portion of homestead real |
| 38 | property damaged or destroyed by misfortune or calamity shall |
| 39 | not increase the homestead property's assessed value when the |
| 40 | square footage of the homestead property as changed or improved |
| 41 | does not exceed 110 percent of the square footage of the |
| 42 | homestead property before the damage or destruction just value |
| 43 | of the damaged or destroyed portion as replaced is not more than |
| 44 | 125 percent of the just value of the damaged or destroyed |
| 45 | portion. Additionally, the homestead property's assessed value |
| 46 | shall not increase if the total square footage of the homestead |
| 47 | property as changed or improved does not exceed 1,500 square |
| 48 | feet. Changes, additions, or improvements that do not cause the |
| 49 | total to exceed 110 percent of the total square footage of the |
| 50 | homestead property before the damage or destruction or that do |
| 51 | not cause the total to exceed 1,500 total square feet shall be |
| 52 | reassessed as provided under subsection (1). The homestead |
| 53 | property's assessed value shall be increased by the just value |
| 54 | of that portion of the changed or improved homestead property |
| 55 | any replaced real property, or portion thereof, which is in |
| 56 | excess of 110 125 percent of the square footage of the homestead |
| 57 | property before the damage or destruction or of that portion |
| 58 | exceeding 1,500 square feet just value of the damaged or |
| 59 | destroyed property shall be deemed to be a change, addition, or |
| 60 | improvement. Homestead Replaced real property damaged or |
| 61 | destroyed by misfortune or calamity which, after being changed |
| 62 | or improved, has a square footage with a just value of less than |
| 63 | 100 percent of the homestead original property's total square |
| 64 | footage before the damage or destruction just value shall be |
| 65 | assessed pursuant to subsection (5). This paragraph applies to |
| 66 | changes, additions, or improvements commenced within 3 years |
| 67 | after the January 1 following the damage or destruction of the |
| 68 | homestead. |
| 69 | (c) Changes, additions, or improvements that replace all |
| 70 | or a portion of real property that was damaged or destroyed by |
| 71 | misfortune or calamity shall be assessed upon substantial |
| 72 | completion as if such damage or destruction had not occurred and |
| 73 | in accordance with paragraph (b) if the owner of such property: |
| 74 | 1. Was permanently residing on such property when the |
| 75 | damage or destruction occurred; |
| 76 | 2. Was not entitled to receive homestead exemption on such |
| 77 | property as of January 1 of that year; and |
| 78 | 3. Applies for and receives homestead exemption on such |
| 79 | property the following year. |
| 80 | (d)(c) Changes, additions, or improvements include |
| 81 | improvements made to common areas or other improvements made to |
| 82 | property other than to the homestead property by the owner or by |
| 83 | an owner association, which improvements directly benefit the |
| 84 | homestead property. Such changes, additions, or improvements |
| 85 | shall be assessed at just value, and the just value shall be |
| 86 | apportioned among the parcels benefiting from the improvement. |
| 87 | Section 2. Subsection (7) is added to section 196.031, |
| 88 | Florida Statutes, to read: |
| 89 | 196.031 Exemption of homesteads.-- |
| 90 | (7) When homestead property is damaged or destroyed by |
| 91 | misfortune or calamity and the property is uninhabitable on |
| 92 | January 1 after the damage or destruction occurs, the homestead |
| 93 | exemption may be granted if the property is otherwise qualified |
| 94 | and if the property owner notifies the property appraiser that |
| 95 | he or she intends to repair or rebuild the property and live in |
| 96 | the property as his or her primary residence after the property |
| 97 | is repaired or rebuilt and does not claim a homestead exemption |
| 98 | on any other property or otherwise violate this section. Failure |
| 99 | by the property owner to commence the repair or rebuilding of |
| 100 | the homestead property within 3 years after January 1 following |
| 101 | the property's damage or destruction constitutes abandonment of |
| 102 | the property as a homestead. |
| 103 | Section 3. This act shall take effect upon becoming a law |
| 104 | and shall apply retroactively to homestead property replaced on |
| 105 | or after January 1, 2006. |