Florida Senate - 2007                      COMMITTEE AMENDMENT
    Bill No. SB 1626
                        Barcode 955450
                            CHAMBER ACTION
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11  The Committee on Community Affairs (Hill) recommended the
12  following amendment:
13  
14         Senate Amendment (with title amendment) 
15         On page 12, between lines 4 and 5,
16  
17  insert:  
18         Section 1.  Sections 197.307, 197.3071, 197.3072,
19  197.3073, 197.3074, 197.3075, 197.3076, 197.3077, 197.3078,
20  and 197.3079, Florida Statutes, are created to read:
21         197.307  Deferrals for ad valorem taxes and non-ad
22  valorem assessments on affordable rental housing property.--
23         (1)  A board of county commissioners or the governing
24  authority of a municipality may adopt an ordinance to allow
25  for ad valorem tax deferrals on affordable rental housing if
26  the owners are engaging in the operation, rehabilitation, or
27  renovation of such properties in accordance with the
28  guidelines provided in part VI of chapter 420.
29         (2)  The board of county commissioners or the governing
30  authority of a municipality may also, by ordinance, authorize
31  the deferral of non-ad valorem assessments, as defined in s.
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Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 197.3632, on affordable rental housing. 2 (3) The ordinance must designate the percentage or 3 amount of the deferral and the type and location of affordable 4 rental housing property for which a deferral may be granted. 5 The ordinance may also require the property to be located 6 within a particular geographic area or areas of the county or 7 municipality. 8 (4) The ordinance must specify that the deferral 9 applies only to taxes and assessments levied by the unit of 10 government granting the deferral. However, a deferral may not 11 be granted for taxes or non-ad valorem assessments levied for 12 the payment of bonds or for taxes authorized by a vote of the 13 electors pursuant to s. 9(b) or s. 12, Art. VII of the State 14 Constitution. 15 (5) The ordinance must specify that any deferral 16 granted remains in effect for the period for which it is 17 granted regardless of any change in the authority of the 18 county or municipality to grant the deferral. In order to 19 retain the deferral, however, the use and ownership of the 20 property as affordable rental housing must be maintained over 21 the period for which the deferral is granted. 22 (6) If an application for tax deferral is granted on 23 property that is located in a community redevelopment area as 24 defined in s. 163.340: 25 (a) The amount of taxes eligible for deferral must be 26 reduced, as provided for in paragraph (b), if: 27 1. The community redevelopment agency has previously 28 issued instruments of indebtedness which are secured by 29 increment revenues on deposit in the community redevelopment 30 trust fund; and 31 2. The instruments of indebtedness are associated with 2 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 the real property applying for the deferral. 2 (b) The tax deferral does not apply to an amount of 3 taxes equal to the amount that must be deposited into the 4 community redevelopment trust fund by the entity granting the 5 deferral based upon the taxable value of the property upon 6 which the deferral is being granted. Once all instruments of 7 indebtedness that existed at the time the deferral was 8 originally granted are no longer outstanding or have otherwise 9 been defeased, this paragraph no longer applies. 10 (c) If a portion of the taxes on a property are not 11 eligible for deferral as provided under paragraph (b), the 12 community redevelopment agency shall notify the property owner 13 and the tax collector 1 year before the debt instruments that 14 prevented such taxes from being deferred are no longer 15 outstanding or otherwise defeased. 16 (d) The tax collector shall notify a community 17 redevelopment agency of any tax deferral that has been granted 18 on property located within the agency's community 19 redevelopment area. 20 (e) Issuance of debt obligation after the date a 21 deferral has been granted does not reduce the amount of taxes 22 eligible for deferral. 23 (7) The tax collector shall notify: 24 (a) The taxpayer of each parcel appearing on the real 25 property assessment roll of the law allowing the deferral of 26 taxes, non-ad valorem assessments, and interest under ss. 27 197.307-197.3079. Such notice shall be printed on the back of 28 envelopes used to mail the notice of taxes as provided under 29 s. 197.322(3). Such notice shall read: 30 31 NOTICE TO TAXPAYERS OWNING 3 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 AFFORDABLE RENTAL HOUSING PROPERTY 2 3 If your property meets certain conditions you 4 may qualify for a deferred tax payment plan on 5 your affordable rental housing property. An 6 application to determine your eligibility is 7 available in the county tax collector's office. 8 9 (b) On or before November 1 of each year, each 10 taxpayer for whom a tax deferral has been previously granted 11 of the accumulated sum of deferred taxes, non-ad valorem 12 assessments, and interest outstanding. 13 197.3071 Eligibility for tax deferral.--The tax 14 deferral authorized by this section is applicable only on a 15 prorata basis to the ad valorem taxes levied on residential 16 units within a property which meet the following conditions: 17 (1) Units for which the monthly rent along with taxes, 18 insurance, and utilities does not exceed 30 percent of the 19 median adjusted gross annual income as defined in s. 420.0004 20 for the households described in subsection (2). 21 (2) Units that are occupied by extremely-low-income 22 persons, very-low-income persons, low-income persons, or 23 moderate-income persons as these terms are defined in s. 24 420.0004. 25 197.3072 Deferral for affordable rental housing 26 properties.-- 27 (1) Any property owner in a jurisdiction that has 28 adopted an ad valorem tax-deferral ordinance or a deferral of 29 non-ad valorem assessments ordinance pursuant to s. 197.307 30 and who owns an eligible affordable rental housing property as 31 described in s. 197.3071 may apply for a deferral of payment 4 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 by filing an annual application for deferral with the county 2 tax collector on or before January 31 following the year in 3 which the taxes and non-ad valorem assessments are assessed. 4 The property owner has the burden to affirmatively demonstrate 5 compliance with the requirements of this section. 6 (2) Approval by the tax collector defers that portion 7 of the combined total of ad valorem taxes and any non-ad 8 valorem assessments plus interest that are authorized to be 9 deferred by an ordinance enacted pursuant to 197.307. 10 (3) Deferral may not be granted if: 11 (a) The total amount of deferred taxes, non-ad valorem 12 assessments, and interest plus the total amount of all other 13 unsatisfied liens on the property exceeds 85 percent of the 14 assessed value of the property; or 15 (b) The primary financing on the affordable rental 16 housing property is for an amount that exceeds 70 percent of 17 the assessed value of the property. 18 (4) The amount of taxes deferred, non-ad valorem 19 assessments, and interest shall accrue interest at a rate 20 equal to the annually compounded rate of 3 percent plus the 21 Consumer Price Index for All Urban Consumers; however, the 22 interest rate may not exceed 9.5 percent. 23 (5) The deferred taxes, non-ad valorem assessments, 24 and interest constitute a prior lien on the affordable rental 25 housing property and shall attach as of the date and in the 26 same manner and be collected as other liens for taxes as 27 provided for under this chapter, but such deferred taxes, 28 non-ad valorem assessments, and interest are due, payable, and 29 delinquent as provided in ss. 197.307-197.3079. 30 197.3073 Deferral application.-- 31 (1) The application for a deferral of ad valorem taxes 5 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 and non-ad valorem assessments must be made annually upon a 2 form prescribed by the department and furnished by the county 3 tax collector. The application form must be signed under oath 4 by the property owner applying for the deferral before an 5 officer authorized by the state to administer oaths. The 6 application form must provide notice to the property owner of 7 the manner in which interest is computed. The application form 8 must contain an explanation of the conditions to be met for 9 approval of the deferral and the conditions under which 10 deferred taxes, non-ad valorem assessments, and interest 11 become due, payable, and delinquent. Each application must 12 clearly state that all deferrals pursuant to this section 13 constitute a lien on the property for which the deferral is 14 granted. The tax collector may require the property owner to 15 submit any other evidence and documentation considered 16 necessary by the tax collector in reviewing the application. 17 (2) The tax collector shall consider and render his or 18 her findings, determinations, and decision on each annual 19 application for a deferral for affordable rental housing 20 within 45 days after the date the application is filed. The 21 tax collector shall exercise reasonable discretion based upon 22 applicable information available under this section. The 23 determinations and findings of the tax collector are not quasi 24 judicial and are subject exclusively to review by the value 25 adjustment board as provided by this section. A tax collector 26 who finds that a property owner is entitled to the deferral 27 shall approve the application and file the application in the 28 permanent records. 29 (a) A tax collector who finds that a property owner is 30 not entitled to the deferral shall send a notice of 31 disapproval within 45 days after the date the application is 6 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 filed, giving reasons for the disapproval. The notice must be 2 sent by personal delivery or registered mail to the mailing 3 address given by the property owner in the manner in which the 4 original notice was served upon the property owner and must be 5 filed among the permanent records of the tax collector's 6 office. The original notice of disapproval sent to the 7 property owner shall advise the property owner of the right to 8 appeal the decision of the tax collector to the value 9 adjustment board and provide the procedures for filing an 10 appeal. 11 (b) An appeal by the property owner of the decision of 12 the tax collector to deny the deferral must be submitted to 13 the value adjustment board on a form prescribed by the 14 department and furnished by the tax collector. The appeal must 15 be filed with the value adjustment board within 20 days after 16 the applicant's receipt of the notice of disapproval, and the 17 board must approve or disapprove the appeal within 30 days 18 after receipt of the appeal. The value adjustment board shall 19 review the application and the evidence presented to the tax 20 collector upon which the property owner based a claim for 21 deferral and, at the election of the property owner, shall 22 hear the property owner in person, or by agent on the property 23 owner's behalf, concerning his or her right to the deferral. 24 The value adjustment board shall reverse the decision of the 25 tax collector and grant a deferral to the property owner if, 26 in its judgment, the property owner is entitled to the 27 deferral or shall affirm the decision of the tax collector. 28 Action by the value adjustment board is final unless the 29 property owner or tax collector or other lienholder, within 15 30 days after the date of disapproval of the application by the 31 board, files for a de novo proceeding for a declaratory 7 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 judgment or other appropriate proceeding in the circuit court 2 of the county in which the property is located. 3 (3) Each application for deferral must contain a list 4 of, and the current value of, all outstanding liens on the 5 property for which a deferral is requested. 6 (4) For approved applications, the date the deferral 7 application is received by the tax collector shall be the date 8 used in calculating taxes due and payable at the expiration of 9 the tax deferral net of discounts for early payment. 10 (5) If proof has not been furnished with a prior 11 application, each property owner shall furnish proof of fire 12 and extended coverage insurance in an amount that is in excess 13 of the sum of all outstanding liens including a lien for the 14 deferred taxes, non-ad valorem assessments, and interest with 15 a loss payable clause to the county tax collector. 16 (6) The tax collector shall notify the property 17 appraiser in writing of those parcels for which taxes or 18 assessments have been deferred. 19 (7) The property appraiser shall promptly notify the 20 tax collector of changes in ownership or use of properties 21 that have been granted a deferral. 22 (8) The property owner shall promptly notify the tax 23 collector of changes in ownership or use of properties that 24 have been granted tax deferrals. 25 197.3074 Deferred payment tax certificates.-- 26 (1) The tax collector shall notify each local 27 governing body of the amount of taxes and non-ad valorem 28 assessments deferred which would otherwise have been collected 29 for the governing body. The tax collector shall, at the time 30 of the tax certificate sale held under s. 197.432 strike each 31 certificate off to the county. Certificates issued under this 8 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 section are exempt from the public sale of tax certificates 2 held pursuant to s. 197.432. 3 (2) The certificates held by the county shall bear 4 interest at a rate equal to the annually compounded rate of 3 5 percent plus the Consumer Price Index for All Urban Consumers; 6 however, the interest rate may not exceed 9.5 percent. 7 197.3075 Change in use or ownership of property.-- 8 (1) If there is a change in use or ownership of the 9 property that has been granted an ad valorem tax or non-ad 10 valorem assessment deferral such that the property owner is no 11 longer entitled to claim the property as an affordable rental 12 housing property, or if there is a change in the legal or 13 beneficial ownership of the property, or if the owner fails to 14 maintain the required fire and extended insurance coverage, 15 the total amount of deferred taxes, non-ad valorem 16 assessments, and interest for all previous years becomes due 17 and payable November 1 of the year in which the change in use 18 or ownership occurs or on the date failure to maintain 19 insurance occurs, and is delinquent on April 1 of the year 20 following the year in which the change in use or ownership or 21 failure to maintain insurance occurs. 22 (2) Whenever the property appraiser discovers that 23 there has been a change in the use or ownership of the 24 property that has been granted a deferral, the property 25 appraiser shall notify the tax collector in writing of the 26 date such change occurs, and the tax collector shall collect 27 any taxes, non-ad valorem assessments, and interest due or 28 delinquent. 29 (3) During any year in which the total amount of 30 deferred taxes, non-ad valorem assessments, interest, and all 31 other unsatisfied liens on the property exceeds 85 percent of 9 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 the assessed value of the property, the tax collector shall 2 immediately notify the property owner that the portion of 3 taxes, non-ad valorem assessments, and interest which exceeds 4 85 percent of the assessed value of the property is due and 5 payable within 30 days after receipt of the notice. Failure to 6 pay the amount due shall cause the total amount of deferred 7 taxes, non-ad valorem assessments, and interest to become 8 delinquent. 9 (4) If on or before June 1 following the date the 10 taxes deferred under this subsection become delinquent, the 11 tax collector shall sell a tax certificate for the delinquent 12 taxes and interest in the manner provided by s. 197.432. 13 197.3076 Prepayment of deferred taxes and non-ad 14 valorem assessments.-- 15 (1) All or part of the deferred taxes, non-ad valorem 16 assessments, and accrued interest may at any time be paid to 17 the tax collector by: 18 (a) The property owner; or 19 (b) The property owner's next of kin, heir, child, or 20 any person having or claiming a legal or equitable interest in 21 the property, if an objection is not made by the owner within 22 30 days after the tax collector notifies the property owner of 23 the fact that such payment has been tendered. 24 (2) Any partial payment made pursuant to this section 25 shall be applied first to accrued interest. 26 197.3077 Distribution of payments.--When any deferred 27 tax, non-ad valorem assessment, or interest is collected, the 28 tax collector shall maintain a record of the payment, setting 29 forth a description of the property and the amount of taxes or 30 interest collected for the property. The tax collector shall 31 distribute payments received in accordance with the procedures 10 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 for distributing ad valorem taxes, non-ad valorem assessments, 2 or redemption moneys as prescribed in this chapter. 3 197.3078 Construction.--This section does not prevent 4 the collection of personal property taxes that become a lien 5 against tax-deferred property, or defer payment of special 6 assessments to benefited property other than those 7 specifically allowed to be deferred, or affect any provision 8 of any mortgage or other instrument relating to property 9 requiring a person to pay ad valorem taxes or non-ad valorem 10 assessments. 11 197.3079 Penalties.-- 12 (1) The following penalties shall be imposed on any 13 person who willfully files information required under this 14 section which is incorrect: 15 (a) The person shall pay the total amount of deferred 16 taxes, non-ad valorem assessments, and interest which shall 17 immediately become due; 18 (b) The person shall be disqualified from filing a 19 tax-deferral application for the next 3 years; and 20 (c) The person shall pay a penalty of 25 percent of 21 the total amount of taxes, non-ad valorem assessments, and 22 interest deferred. 23 (2) Any person against whom penalties have been 24 imposed may appeal to the value adjustment board within 30 25 days after the date the penalties were imposed. 26 27 (Redesignate subsequent sections.) 28 29 30 ================ T I T L E A M E N D M E N T =============== 31 And the title is amended as follows: 11 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 On page 1, lines 2 and 3, delete those lines 2 3 and insert: 4 An act relating to affordable housing; creating 5 ss. 197.307, 197.3071, 197.3072, 197.3073, 6 197.3074, 197.3075, 197.3076, 197.3077, 7 197.3078, and 197.3079, F.S.; authorizing a 8 county commission or municipality to adopt an 9 ordinance providing for the deferral of ad 10 valorem taxes and non-ad valorem assessments 11 for affordable rental housing property under 12 certain conditions; requiring the tax collector 13 to provide certain notices to taxpayers about 14 deferrals; providing specifications for such 15 ordinances; providing eligibility requirements; 16 authorizing a property owner to defer payment 17 of ad valorem taxes and certain assessments; 18 providing circumstances in which taxes and 19 assessments may not be deferred; specifying the 20 rate for deferment; providing that the taxes, 21 assessments, and interest deferred constitute a 22 prior lien on the property; providing an 23 application process; providing notice 24 requirements for applications that are not 25 approved for deferment; providing an appeals 26 process; requiring applications for deferral to 27 contain a list of outstanding liens; providing 28 the date for calculating taxes due and payable; 29 requiring that a property owner furnish proof 30 of certain insurance coverage under certain 31 conditions; requiring the tax collector and the 12 12:55 PM 03/21/07 s1626.ca01.002
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1626 Barcode 955450 1 property owner to notify the property appraiser 2 of parcels for which taxes and assessments have 3 been deferred; requiring the property appraiser 4 to notify the tax collector of changes in 5 ownership or use of tax-deferred properties; 6 providing requirements for tax certificates for 7 deferred payment; providing the rate of 8 interest; providing circumstances in which 9 deferrals cease; requiring the property 10 appraiser to notify the tax collector of 11 deferrals that have ceased; requiring the tax 12 collector to collect taxes, assessments and 13 interest due; requiring the tax collector to 14 notify the property owner of due taxes on 15 tax-deferred property under certain conditions; 16 requiring the tax collector to sell a tax 17 certificate under certain circumstances; 18 specifying persons who may pay deferred taxes, 19 assessments and accrued interest; requiring the 20 tax collector to maintain a record of payment 21 and to distribute payments; providing for 22 construction of provisions authorizing the 23 deferments; providing penalties amending s. 24 420.5087, F.S.; 25 26 27 28 29 30 31 13 12:55 PM 03/21/07 s1626.ca01.002