CS/HB 261

1
A bill to be entitled
2An act relating to just valuation of property; amending s.
3193.011, F.S.; specifying prohibited conditions precedent
4to use of present cash value of property as a just
5valuation factor; revising the condition of property just
6valuation factor; requiring property appraisers to use
7only the income factor in arriving at just value of
8certain income-producing properties; creating s. 193.018,
9F.S.; authorizing owners of certain properties to enter
10into deed-restriction agreements with counties for certain
11purposes; requiring property appraisers to consider deed-
12restriction agreements in determining just value;
13providing for payment of back taxes plus interest if the
14deed-restriction agreement is terminated early; amending
15s. 194.011, F.S.; requiring property appraisers to
16establish receipt of disputed receipt of assessment
17notices; revising provisions relating to provision of
18evidence by petitioners and property appraisers; amending
19s. 194.013, F.S.; requiring value adjustment boards to
20waive a petition filing fee for taxpayers eligible for
21certain constitutional exemptions; amending s. 194.015,
22F.S.; revising the membership of value adjustment boards,
23appointment criteria, and quorum requirements; amending s.
24194.032, F.S.; providing for criteria for rescheduling
25certain hearings under certain circumstances; amending s.
26194.034, F.S.; requiring value adjustment boards to order
27refund of certain filing fees if a determination of a
28property appraiser is overturned; amending s. 194.192,
29F.S.; providing for judgments against property appraisers
30under certain circumstances; providing for assessment and
31award of attorney fees to taxpayers under certain
32circumstances; amending s. 194.301, F.S.; requiring
33property appraisers to provide evidence of correctness of
34assessments in certain actions; deleting provisions
35providing a presumption of correctness of property
36appraiser's assessments and imposing requirements on
37taxpayers to prove assessments excessive; providing an
38effective date.
39
40Be It Enacted by the Legislature of the State of Florida:
41
42     Section 1.  Effective upon this act becoming a law and
43applicable to assessments beginning January 1, 2008, section
44193.011, Florida Statutes, is amended to read:
45     193.011  Factors to consider in deriving just valuation.--
46     (1)  In arriving at just valuation as required under s. 4,
47Art. VII of the State Constitution, the property appraiser shall
48take into consideration the following factors:
49     (a)(1)  The present cash value of the property, which is
50the amount a willing purchaser would pay a willing seller,
51exclusive of reasonable fees and costs of purchase including
52costs of removal of tangible personal property, in cash or the
53immediate equivalent thereof in a transaction at arm's length,
54which does not require as a condition precedent to the proposed
55use of the property:
56     1.  The granting of a variance from existing zoning;
57     2.  A change in zoning;
58     3.  Relief from any existing local ordinance or regulation;
59     4.  Relief from any judicial limitation; or
60     5.  The permitting of the intended use of the property by
61the state or any state agency, local or regional agency, local
62or regional government, or taxing authority;
63     (b)(2)  The highest and best use to which the property can
64be expected to be put in the immediate future, which does not
65require satisfaction of any of the conditions precedent
66enumerated in paragraph (a), and the present use of the
67property, taking into consideration any applicable judicial
68limitation, local or state land use regulation, or historic
69preservation ordinance, and considering any moratorium imposed
70by executive order, law, ordinance, regulation, resolution, or
71proclamation adopted by any governmental body or agency or the
72Governor when the moratorium or judicial limitation prohibits or
73restricts the development or improvement of property as
74otherwise authorized by applicable law. The applicable
75governmental body or agency or the Governor shall notify the
76property appraiser in writing of any executive order, ordinance,
77regulation, resolution, or proclamation it adopts imposing any
78such limitation, regulation, or moratorium;
79     (c)(3)  The location of said property;
80     (d)(4)  The quantity or size of said property;
81     (e)(5)  The cost of said property and the present
82replacement value of any improvements thereon;
83     (f)(6)  The condition of said property. Each property's
84individual characteristics shall be considered when determining
85physical deterioration, functional obsolescence, and external
86obsolescence;
87     (g)(7)  The income from said property; and
88     (h)(8)  The net proceeds of the sale of the property, as
89received by the seller, after deduction of all of the usual and
90reasonable fees and costs of the sale, including the costs and
91expenses of financing, and allowance for unconventional or
92atypical terms of financing arrangements. When the net proceeds
93of the sale of any property are utilized, directly or
94indirectly, in the determination of just valuation of realty of
95the sold parcel or any other parcel under the provisions of this
96section, the property appraiser, for the purposes of such
97determination, shall exclude any portion of such net proceeds
98attributable to payments for household furnishings or other
99items of personal property.
100     (2)  Notwithstanding the requirement that property
101appraisers consider all of the factors enumerated in subsection
102(1) in arriving at just valuation, property appraisers shall
103consider only the income from income-producing property in the
104case of all residential rental property and all commercial
105property that is leased to more than one legal entity, each of
106which conducts a separate business activity on the property, in
107determining the just valuation of such property.
108     Section 2.  Section 193.018, Florida Statutes, is created
109to read:
110     193.018  Assessment of deed-restricted property.--
111     (1)  The owner of residential rental property providing
112affordable housing, multiunit commercial rental property,
113property used as a marina, or property rented for use by mobile
114homes may enter into a deed-restriction agreement with the
115county to maintain the property at its current use for a period
116of at least 5 years.
117     (2)  The property appraiser shall consider the deed-
118restriction agreement in determining the just value of the
119property.
120     (3)  If, prior to the expiration of the deed-restriction
121agreement, the property is not used for the purposes set forth
122in the deed-restriction agreement, the deed-restriction
123agreement shall be terminated and the property owner shall pay
124to the county an amount equal to the additional taxes that would
125have been paid in prior years had the deed-restriction agreement
126not been in effect, plus 12 percent interest.
127     Section 3.  Paragraph (d) of subsection (3) and subsection
128(4) of section 194.011, Florida Statutes, are amended to read:
129     194.011  Assessment notice; objections to assessments.--
130     (3)  A petition to the value adjustment board must be in
131substantially the form prescribed by the department.
132Notwithstanding s. 195.022, a county officer may not refuse to
133accept a form provided by the department for this purpose if the
134taxpayer chooses to use it. A petition to the value adjustment
135board shall describe the property by parcel number and shall be
136filed as follows:
137     (d)  The petition may be filed, as to valuation issues, at
138any time during the taxable year on or before the 25th day
139following the mailing of notice by the property appraiser as
140provided in subsection (1). If the actual receipt of the notice
141is disputed, the burden of proof shall be on the property
142appraiser to establish receipt by clear and convincing evidence.
143With respect to an issue involving the denial of an exemption,
144an agricultural or high-water recharge classification
145application, an application for classification as historic
146property used for commercial or certain nonprofit purposes, or a
147deferral, the petition must be filed at any time during the
148taxable year on or before the 30th day following the mailing of
149the notice by the property appraiser under s. 193.461, s.
150193.503, s. 193.625, or s. 196.193 or notice by the tax
151collector under s. 197.253.
152     (4)(a)  At least 15 days before the hearing, the petitioner
153shall provide to the property appraiser a list of evidence to be
154presented at the hearing, together with copies of all
155documentation to be considered by the value adjustment board and
156a summary of evidence to be presented by witnesses. Failure of
157the petitioner to timely comply with the requirements of this
158paragraph shall result in the rescheduling of the hearing.
159     (b)  At least 15 No later than 7 days before the hearing,
160if the petitioner has provided the information required under
161paragraph (a), and if requested in writing by the petitioner,
162the property appraiser shall provide to the petitioner a list of
163evidence to be presented at the hearing, together with copies of
164all documentation to be considered by the value adjustment board
165and a summary of evidence to be presented by witnesses. The
166evidence list must contain the property record card if provided
167by the clerk. Failure of the property appraiser to timely comply
168with the requirements of this paragraph shall result in a
169rescheduling of the hearing.
170     Section 4.  Subsection (2) of section 194.013, Florida
171Statutes, is amended to read:
172     194.013  Filing fees for petitions; disposition; waiver.--
173     (2)  The value adjustment board shall waive the filing fee
174with respect to a petition filed by a taxpayer who is eligible
175to receive one or more of the exemptions under s. 6(c), (f), or
176(g), Art. VII of the State Constitution, regardless of whether
177the taxpayer's local government grants the additional local
178homestead exemptions. The filing fee also shall be waived for a
179taxpayer who demonstrates at the time of filing, by an
180appropriate certificate or other documentation issued by the
181Department of Children and Family Services and submitted with
182the petition, that the petitioner is then an eligible recipient
183of temporary assistance under chapter 414.
184     Section 5.  Section 194.015, Florida Statutes, is amended
185to read:
186     194.015  Value adjustment board.--
187     (1)  There is hereby created a value adjustment board for
188each county, which shall consist of five members.
189     (2)(a)1.  Three members shall be appointed by of the
190governing body of the county, as follows:
191     a.  One member must own a homestead property within the
192county.
193     b.  One member must own a business that occupies commercial
194space located within the county.
195     c.  An appointee may not be a member or an employee of any
196taxing authority.
197     2.  as elected from the membership of the board of said
198governing body, One of such appointees whom shall be elected
199chairperson.
200     (b)  , and Two members shall be appointed by of the school
201board, as follows:
202     1.  One member must own a business that occupies commercial
203space located within the school district.
204     2.  One member must be eligible to receive one or more of
205the exemptions under s. 6(c), (f), or (g), Art. VII of the State
206Constitution, regardless of whether the taxpayer's local
207government grants the additional local homestead exemptions.
208     3.  An appointee may not be a member or an employee of any
209taxing authority as elected from the membership of the school
210board. The members of the board may be temporarily replaced by
211other members of the respective boards on appointment by their
212respective chairpersons.
213     (3)  Any three members shall constitute a quorum of the
214board, except that each quorum must include at least one member
215appointed by the of said governing body of the county board and
216at least one member appointed by of the school board, and no
217meeting of the board shall take place unless a quorum is
218present.
219     (4)  Members of the board may receive such per diem
220compensation as is allowed by law for state employees if both
221bodies elect to allow such compensation.
222     (5)  The clerk of the governing body of the county shall be
223the clerk of the value adjustment board.
224     (6)(a)  The office of the county attorney may be counsel to
225the board unless the county attorney represents the property
226appraiser, in which instance the board shall appoint private
227counsel who has practiced law for over 5 years and who shall
228receive such compensation as may be established by the board.
229     (b)  Meetings No meeting of the board may not shall take
230place unless counsel to the board is present. However, counsel
231for the property appraiser shall not be required when the county
232attorney represents only the board at the board hearings, even
233though the county attorney may represent the property appraiser
234in other matters or at a different time.
235     (7)  Two-fifths of the expenses of the board shall be borne
236by the district school board and three-fifths by the district
237county commission.
238     Section 6.  Subsection (2) of section 194.032, Florida
239Statutes, is amended to read:
240     194.032  Hearing purposes; timetable.--
241     (2)  The clerk of the governing body of the county shall
242prepare a schedule of appearances before the board based on
243petitions timely filed with him or her. The clerk shall notify
244each petitioner of the scheduled time of his or her appearance
245no less than 25 calendar days prior to the day of such scheduled
246appearance. Upon receipt of this notification, the petitioner
247shall have the right to reschedule the hearing an unlimited
248number of times for the failure of the property appraiser to
249comply with the requirements of s. 194.011(4)(b). The petitioner
250shall also have the right to reschedule the hearing a single
251time by submitting to the clerk of the governing body of the
252county a written request to reschedule, no less than 5 calendar
253days before the day of the originally scheduled hearing.
254Additional rescheduling of the hearing may be granted to the
255taxpayer upon receipt of an affidavit from a physician which
256states a medical reason as to why the petitioner needs to
257reschedule the hearing. A copy of the property record card
258containing relevant information used in computing the taxpayer's
259current assessment shall be included with such notice, if said
260card was requested by the taxpayer. Such request shall be made
261by checking an appropriate box on the petition form. No
262petitioner shall be required to wait for more than 4 hours from
263the scheduled time; and, if his or her petition is not heard in
264that time, the petitioner may, at his or her option, report to
265the chairperson of the meeting that he or she intends to leave;
266and, if he or she is not heard immediately, the petitioner's
267hearing shall be rescheduled for a time reserved exclusively for
268the petitioner administrative remedies will be deemed to be
269exhausted, and he or she may seek further relief as he or she
270deems appropriate. Failure on three occasions with respect to
271any single tax year to convene at the scheduled time of meetings
272of the board shall constitute grounds for removal from office by
273the Governor for neglect of duties.
274     Section 7.  Subsection (2) of section 194.034, Florida
275Statutes, is amended to read:
276     194.034  Hearing procedures; rules.--
277     (2)  In each case, except when a complaint is withdrawn by
278the petitioner or is acknowledged as correct by the property
279appraiser, the value adjustment board shall render a written
280decision. All such decisions shall be issued within 20 calendar
281days of the last day the board is in session under s. 194.032.
282The decision of the board shall contain findings of fact and
283conclusions of law and shall include reasons for upholding or
284overturning the determination of the property appraiser. If the
285determination of the property appraiser is overturned, the board
286shall order the refunding of the filing fee required by s.
287194.013. When a special magistrate has been appointed, the
288recommendations of the special magistrate shall be considered by
289the board. The clerk, upon issuance of the decisions, shall, on
290a form provided by the Department of Revenue, notify by first-
291class mail each taxpayer, the property appraiser, and the
292department of the decision of the board.
293     Section 8.  Subsection (3) is added to section 194.192,
294Florida Statutes, to read:
295     194.192  Costs; interest on unpaid taxes; penalty; attorney
296fees.--
297     (3)  If the court finds that the amount owed by the
298taxpayer is less than the amount of tax paid, the court shall
299enter judgment against the appraiser at the rate of 12 percent
300per year from the date of payment. If the final assessment
301established by the court is lower than the value assessed by the
302property appraiser by more than 10 percent, the court shall
303assess and award reasonable attorney fees to the taxpayer.
304     Section 9.  Section 194.301, Florida Statutes, is amended
305to read:
306     194.301  Presumption of correctness.--In any administrative
307or judicial action in which a taxpayer challenges an ad valorem
308tax assessment of value, the property appraiser shall have the
309burden of providing by clear and convincing evidence that the
310assessment is correct. In any judicial action, the burden of
311proof shall be upon the party initiating the action appraiser's
312assessment shall be presumed correct. This presumption of
313correctness is lost if the taxpayer shows by a preponderance of
314the evidence that either the property appraiser has failed to
315consider properly the criteria in s. 193.011 or if the property
316appraiser's assessment is arbitrarily based on appraisal
317practices which are different from the appraisal practices
318generally applied by the property appraiser to comparable
319property within the same class and within the same county. If
320the presumption of correctness is lost, the taxpayer shall have
321the burden of proving by a preponderance of the evidence that
322the appraiser's assessment is in excess of just value. If the
323presumption of correctness is retained, the taxpayer shall have
324the burden of proving by clear and convincing evidence that the
325appraiser's assessment is in excess of just value. In no case
326shall the taxpayer have the burden of proving that the property
327appraiser's assessment is not supported by any reasonable
328hypothesis of a legal assessment. If the property appraiser's
329assessment is determined to be erroneous, the Value Adjustment
330Board or the court can establish the assessment if there exists
331competent, substantial evidence in the record, which
332cumulatively meets the requirements of s. 193.011. If the record
333lacks competent, substantial evidence meeting the just value
334criteria of s. 193.011, the matter shall be remanded to the
335property appraiser with appropriate directions from the Value
336Adjustment Board or the court.
337     Section 10.  This act shall take effect upon becoming a
338law.


CODING: Words stricken are deletions; words underlined are additions.