Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
CHAMBER ACTION
Senate House
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04/28/2006 04:02 PM .
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11 Senator Haridopolos moved the following amendment:
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13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
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16 and insert:
17 Section 1. Subsection (4) of section 193.155, Florida
18 Statutes, is amended to read:
19 193.155 Homestead assessments.--Homestead property
20 shall be assessed at just value as of January 1, 1994.
21 Property receiving the homestead exemption after January 1,
22 1994, shall be assessed at just value as of January 1 of the
23 year in which the property receives the exemption.
24 (4)(a) Except as provided in paragraph (b), changes,
25 additions, or improvements to homestead property shall be
26 assessed at just value as of the first January 1 after the
27 changes, additions, or improvements are substantially
28 completed.
29 (b) Changes, additions, or improvements that replace
30 all or do not include replacement of a portion of homestead
31 real property damaged or destroyed by misfortune or calamity
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
1 shall not increase the homestead property's assessed value
2 when the square footage of the homestead property as changed
3 or improved does not exceed 110 percent of the square footage
4 of the homestead property before the damage or destruction
5 just value of the damaged or destroyed portion as replaced is
6 not more than 125 percent of the just value of the damaged or
7 destroyed portion. Additionally, the homestead property's
8 assessed value shall not increase if the total square footage
9 of the homestead property as changed or improved does not
10 exceed 1,500 square feet. Changes, additions, or improvements
11 that do not cause the total to exceed 110 percent of the total
12 square footage of the homestead property before the damage or
13 destruction or that do not cause the total to exceed 1,500
14 total square feet shall be reassessed as provided under
15 subsection (1). The homestead property's assessed value shall
16 be increased by the just value of that portion of the changed
17 or improved homestead property any replaced real property, or
18 portion thereof, which is in excess of 110 125 percent of the
19 square footage of the homestead property before the damage or
20 destruction or of that portion exceeding 1,500 square feet
21 just value of the damaged or destroyed property shall be
22 deemed to be a change, addition, or improvement. Homestead
23 Replaced real property damaged or destroyed by misfortune or
24 calamity which, after being changed or improved, has a square
25 footage with a just value of less than 100 percent of the
26 homestead original property's total square footage before the
27 damage or destruction just value shall be assessed pursuant to
28 subsection (5). This paragraph applies to changes, additions,
29 or improvements commenced within 3 years after the January 1
30 following the damage or destruction of the homestead.
31 (c) Changes, additions, or improvements that replace
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
1 all or a portion of real property that was damaged or
2 destroyed by misfortune or calamity shall be assessed upon
3 substantial completion as if such damage or destruction had
4 not occurred and in accordance with paragraph (b) if the owner
5 of such property:
6 1. Was permanently residing on such property when the
7 damage or destruction occurred;
8 2. Was not entitled to receive homestead exemption on
9 such property as of January 1 of that year; and
10 3. Applies for and receives homestead exemption on
11 such property the following year.
12 (d)(c) Changes, additions, or improvements include
13 improvements made to common areas or other improvements made
14 to property other than to the homestead property by the owner
15 or by an owner association, which improvements directly
16 benefit the homestead property. Such changes, additions, or
17 improvements shall be assessed at just value, and the just
18 value shall be apportioned among the parcels benefiting from
19 the improvement.
20 Section 2. Subsection (7) is added to section 196.031,
21 Florida Statutes, to read:
22 196.031 Exemption of homesteads.--
23 (7) When homestead property is damaged or destroyed by
24 misfortune or calamity and the property is uninhabitable on
25 January 1 after the damage or destruction occurs, the
26 homestead exemption may be granted if the property is
27 otherwise qualified and if the property owner notifies the
28 property appraiser that he or she intends to repair or rebuild
29 the property and live in it as his or her primary residence
30 after it is repaired or rebuilt and does not claim a homestead
31 exemption on any other property or otherwise violate this
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
1 section. Failure by the property owner to commence the repair
2 or rebuilding of the homestead property within 3 years after
3 January 1 following its damage or destruction constitutes
4 abandonment of the property as a homestead.
5 Section 3. (1) The Department of Revenue shall
6 conduct a study of the state's property tax structure to
7 analyze the impact of the current homestead exemptions and
8 homestead assessment limitations on different types of
9 property.
10 (a) The study shall include:
11 1. An analysis of the effects of Save Our Homes
12 provisions of s. 4(c), Art. VII of the State Constitution on
13 the distribution of property taxes among and between homestead
14 properties as well as between homesteads and other types of
15 property;
16 2. An analysis of the effect of the Save Our Homes
17 provisions of s. 4(c), Art. VII of the State Constitution on
18 affordable housing, as evidenced by the differential tax
19 burden on first-time homestead property owners and long-term
20 homestead property owners and the amendment's effect on
21 property taxes paid by nonhomestead residential property
22 owners;
23 3. The identification and analysis of the impact of
24 the differential under the Save Our Homes provisions of s.
25 4(c), Art. VII of the State Constitution on each county;
26 4. An analysis of the effects of the Save Our Homes
27 provisions of s. 4(c), Art. VII of the State Constitution on
28 the distribution of the school property taxes, including the
29 required local effort levy for the Florida Education Finance
30 Program, and other school levies;
31 5. An analysis of the fiscal impacts of allowing the
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
1 assessments under the Save Our Homes provisions of s. 4(c),
2 Art. VII of the State Constitution to be transferred to newly
3 acquired homes, the resulting changes in the relative taxes
4 levied on all other classes of property, including other
5 homestead properties, nonhomestead properties and properties
6 purchased by first-time homestead owners, and in the
7 distribution of the required local effort for school funding;
8 and
9 6. An analysis of the millage rates adopted by local
10 governments compared to the rolled back rate as advertised in
11 the Truth In Millage (TRIM) Notices required under s. 200.069,
12 Florida Statutes.
13 (b) The Department of Revenue shall prepare a draft of
14 the study by November 15, 2006, and conclude the study by
15 January 2, 2007.
16 (2) The Office of Economic and Demographic Research
17 shall prepare a report summarizing the study conducted by the
18 Department of Revenue. The report must also contain findings
19 and policy options that may be available to the state. In
20 preparing the report, the Office of Economic and Demographic
21 Research may consider other available information.
22 (a) In addition to findings and policy options, the
23 report must include:
24 1. An evaluation of the assessment differentials under
25 the Save Our Homes provisions of s. 4(c), Art. VII of the
26 State Constitution on homeowners' willingness to purchase a
27 new homestead.
28 2. An evaluation of the effects of the Save Our Homes
29 provisions of s. 4(c), Art. VII of the State Constitution on
30 local government budget decisions, including whether the Truth
31 In Millage (TRIM) notification process under s. 200.069,
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
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1 Florida Statutes, adequately informs taxpayers of local
2 governments' tax and budget decisions.
3 3. An evaluation of the effectiveness of the notice of
4 proposed property taxes and non-ad valorem assessments created
5 under s. 200.069, Florida Statutes. If the current notice is
6 deemed ineffective, the evaluation should propose alternative
7 methods of conveying the information contained in the notice.
8 (b) The findings and policy options must apply and
9 consider the following principles of taxation described in the
10 2002 Florida State Tax Reform Task Force Final Report:
11 1. Equity.--The Florida tax system should treat
12 individuals equitably. It should impose similar tax burdens on
13 people in similar circumstances and should minimize
14 regressivity.
15 2. Compliance.--The Florida tax system should
16 facilitate taxpayer compliance. The system should be simple
17 and easy to understand so as to minimize compliance costs and
18 increase the visibility and awareness of the taxes being paid.
19 Enforcement and collection of tax revenues should be
20 accomplished in a fair, consistent, professional, predictable,
21 and cost-effective manner.
22 3. Pro-competitiveness.--The Florida tax system should
23 be responsive to interstate and international competition in
24 order to encourage savings and investment in physical plants,
25 equipment, people, and technology in this state.
26 4. Neutrality.--The Florida tax system should affect
27 competitors uniformly and not become a tool for social
28 engineering. The system should minimize government involvement
29 in investment decisions, making any such involvement explicit,
30 and should minimize pyramiding.
31 5. Stability.--The Florida tax system should produce,
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
1 in a stable and reliable manner, revenues that are sufficient
2 to fund appropriate governmental functions and expenditures.
3 6. Integration.--The Florida tax system should balance
4 the need for integration of federal, state, and local
5 taxation.
6 (c) The Office of Economic and Demographic Research
7 shall submit a progress report to the President of the Senate
8 and the Speaker of the House of Representatives by February
9 15, 2007. The progress report may include preliminary findings
10 and any policy options that may be considered during the 2007
11 regular legislative session.
12 (d) The final report must be submitted to the
13 Governor, the President of the Senate, the Speaker of the
14 House of Representatives, and the chair of the Taxation and
15 Budget Reform Commission no later than September 1, 2007.
16 (e) The Office of Economic and Demographic Research
17 may contract with state universities or a nationally
18 recognized property appraisal education and certification
19 organization for the purpose of developing findings and policy
20 options to be included in the report.
21 Section 4. Section 12 of chapter 2005-187, Laws of
22 Florida, is repealed.
23 Section 5. The sum of $300,000 in nonrecurring general
24 revenue is hereby appropriated to the Department of Revenue
25 for the purpose of conducting the study required by this act.
26 Section 6. The sum of $500,000 in nonrecurring general
27 revenue is hereby appropriated to the Office of Economic and
28 Demographic Research for the purpose of preparing the report
29 required by this act.
30 Section 7. The unexpended balance of funds
31 appropriated in section 13 of chapter 2005-187, Laws of
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
1 Florida, shall revert immediately to the General Revenue Fund.
2 Section 8. Sections 1 and 2 of this act shall apply
3 retroactively to homestead property replaced on or after
4 January 1, 2006.
5 Section 9. Except as otherwise expressly provided in
6 this act, this act shall take effect upon becoming a law.
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9 ================ T I T L E A M E N D M E N T ===============
10 And the title is amended as follows:
11 Delete everything before the enacting clause
12
13 and insert:
14 A bill to be entitled
15 An act relating to taxation; amending s.
16 193.155, F.S.; revising exceptions applicable
17 to damaged or destroyed homestead property to a
18 requirement that changes, additions, or
19 improvements to homestead property be assessed
20 at just value under certain circumstances;
21 providing for application to certain changes,
22 additions, and improvements; providing for
23 assessment of homestead property after
24 substantial completion of changes, additions,
25 and improvements; providing criteria; amending
26 s. 196.031, F.S.; providing for the continued
27 granting of a homestead exemption for certain
28 damaged or destroyed homestead property under
29 certain circumstances; specifying circumstances
30 for abandonment of property as homestead;
31 requiring the Department of Revenue to study
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Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 854
Barcode 700168
1 the state's property tax structure; providing
2 the contents of the study; requiring the Office
3 of Economic and Demographic Research to prepare
4 a report; requiring that the report recommend
5 changes to achieve specified principles of
6 taxation; providing deadlines; requiring a
7 report to the Governor and the Legislature;
8 repealing s. 12, ch. 2005-187, Laws of Florida,
9 relating to dissolving the Communications
10 Services Tax Task Force; providing
11 appropriations; providing for reversion of
12 unused funds to the General Revenue Fund;
13 providing for retroactive application;
14 providing effective dates.
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