1 | A bill to be entitled |
2 | An act relating to just valuation of property; amending s. |
3 | 193.011, F.S.; providing for consideration of zoning |
4 | changes and permits in determining the highest and best |
5 | use; revising the condition of property just valuation |
6 | factor; including cost of removal of tangible personal |
7 | property as a consideration in the net sale proceeds |
8 | factor; requiring property appraisers to use only market |
9 | rent in arriving at just value of certain income-producing |
10 | properties; providing a definition; providing |
11 | applicability; amending s. 193.016, F.S.; providing for |
12 | consideration of value adjustment board decisions for all |
13 | properties; creating s. 193.018, F.S.; authorizing owners |
14 | of certain properties to enter into deed-restriction |
15 | agreements with counties for certain purposes; requiring |
16 | property appraisers to consider deed-restriction |
17 | agreements in determining just value; providing for |
18 | payment of back taxes plus interest if the deed- |
19 | restriction agreement is terminated early; amending s. |
20 | 194.011, F.S.; revising provisions relating to provision |
21 | of evidence by petitioners and property appraisers; |
22 | amending s. 194.013, F.S.; requiring value adjustment |
23 | boards to waive a petition filing fee for taxpayers |
24 | eligible for certain constitutional exemptions; amending |
25 | s. 194.015, F.S.; revising the membership of value |
26 | adjustment boards, appointment criteria, and quorum |
27 | requirements; amending s. 194.032, F.S.; providing for |
28 | criteria for rescheduling certain hearings under certain |
29 | circumstances; amending s. 194.034, F.S.; requiring value |
30 | adjustment boards to order refund of certain filing fees |
31 | if a determination of a property appraiser is overturned; |
32 | amending s. 194.192, F.S.; providing for judgments against |
33 | property appraisers under certain circumstances; providing |
34 | for assessment and award of attorney fees to taxpayers |
35 | under certain circumstances; amending s. 194.301, F.S.; |
36 | revising criteria for a presumption of correctness of ad |
37 | valorem taxation assessments and the burden of proof in |
38 | actions challenging such assessments; providing an |
39 | effective date. |
40 |
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41 | Be It Enacted by the Legislature of the State of Florida: |
42 |
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43 | Section 1. Effective upon this act becoming a law and |
44 | applicable to assessments beginning January 1, 2008, section |
45 | 193.011, Florida Statutes, is amended to read: |
46 | 193.011 Factors to consider in deriving just valuation.-- |
47 | (1) In arriving at just valuation as required under s. 4, |
48 | Art. VII of the State Constitution, the property appraiser shall |
49 | take into consideration the following factors: |
50 | (a)(1) The present cash value of the property, which is |
51 | the amount a willing purchaser would pay a willing seller, |
52 | exclusive of reasonable fees and costs of purchase, in cash or |
53 | the immediate equivalent thereof in a transaction at arm's |
54 | length; |
55 | (b)(2) The highest and best use to which the property can |
56 | be expected to be put in the immediate future and the present |
57 | use of the property, taking into consideration any applicable |
58 | judicial limitation, local or state land use regulation, or |
59 | historic preservation ordinance, and any zoning changes and |
60 | permits necessary to achieve the highest and best use, and |
61 | considering any moratorium imposed by executive order, law, |
62 | ordinance, regulation, resolution, or proclamation adopted by |
63 | any governmental body or agency or the Governor when the |
64 | moratorium or judicial limitation prohibits or restricts the |
65 | development or improvement of property as otherwise authorized |
66 | by applicable law. The applicable governmental body or agency or |
67 | the Governor shall notify the property appraiser in writing of |
68 | any executive order, ordinance, regulation, resolution, or |
69 | proclamation it adopts imposing any such limitation, regulation, |
70 | or moratorium; |
71 | (c)(3) The location of said property; |
72 | (d)(4) The quantity or size of said property; |
73 | (e)(5) The cost of said property and the present |
74 | replacement value of any improvements thereon; |
75 | (f)(6) The condition of said property. When determining |
76 | the condition of the property, the property appraiser shall |
77 | consider physical deterioration, functional obsolescence, and |
78 | external obsolescence; |
79 | (g)(7) The income from said property; and |
80 | (h)(8) The net proceeds of the sale of the property, as |
81 | received by the seller, after deduction of all of the usual and |
82 | reasonable fees and costs of the sale, including the costs and |
83 | expenses of financing, and allowance for unconventional or |
84 | atypical terms of financing arrangements, and including the |
85 | costs of removal of tangible personal property. When the net |
86 | proceeds of the sale of any property are utilized, directly or |
87 | indirectly, in the determination of just valuation of realty of |
88 | the sold parcel or any other parcel under the provisions of this |
89 | section, the property appraiser, for the purposes of such |
90 | determination, shall exclude any portion of such net proceeds |
91 | attributable to payments for household furnishings or other |
92 | items of personal property. |
93 | (2) Notwithstanding the requirement that property |
94 | appraisers consider all of the factors enumerated in subsection |
95 | (1) in arriving at just valuation, property appraisers shall |
96 | consider only the market rent from income-producing property in |
97 | the case of all residential rental property and all commercial |
98 | property that is leased to more than one legal entity, each of |
99 | which conducts a separate business activity on the property. For |
100 | purposes of this subsection, the term "market rent" means the |
101 | most likely rent that an income-producing property would command |
102 | if offered for lease in the open market. |
103 | Section 2. Section 193.016, Florida Statutes, is amended |
104 | to read: |
105 | 193.016 Property appraiser's assessment; effect of |
106 | determinations by value adjustment board.--If the property |
107 | appraiser's assessment of the same items of tangible personal |
108 | property in the previous year was adjusted by the value |
109 | adjustment board and the decision of the board to reduce the |
110 | assessment was not successfully appealed by the property |
111 | appraiser, the property appraiser shall consider the reduced |
112 | value values determined by the value adjustment board in |
113 | assessing the those items of tangible personal property. If the |
114 | property appraiser adjusts upward the reduced value values |
115 | previously determined by the value adjustment board, the |
116 | property appraiser shall assert additional basic and underlying |
117 | facts not properly considered by the value adjustment board as |
118 | the basis for the increased valuation notwithstanding the prior |
119 | adjustment by the board. |
120 | Section 3. Section 193.018, Florida Statutes, is created |
121 | to read: |
122 | 193.018 Assessment of deed-restricted property.-- |
123 | (1) The owner of residential rental property, multiunit |
124 | commercial rental property, property used as a marina, |
125 | waterfront property used exclusively for commercial fishing |
126 | purposes, or property rented for use by mobile homes may enter |
127 | into a deed-restriction agreement with the county to maintain |
128 | the property at its current use for a period of at least 5 |
129 | years. |
130 | (2) The property appraiser shall consider the deed- |
131 | restriction agreement in determining the just value of the |
132 | property. |
133 | (3) If, prior to the expiration of the deed-restriction |
134 | agreement, the property is not used for the purposes set forth |
135 | in the deed-restriction agreement, the deed-restriction |
136 | agreement shall be terminated and the property owner shall pay |
137 | to the county an amount equal to the additional taxes that would |
138 | have been paid in prior years had the deed-restriction agreement |
139 | not been in effect, plus 12 percent interest. |
140 | Section 4. Subsection (4) of section 194.011, Florida |
141 | Statutes, is amended to read: |
142 | 194.011 Assessment notice; objections to assessments.-- |
143 | (4)(a) At least 15 days before the hearing, the petitioner |
144 | shall provide to the property appraiser a list of evidence to be |
145 | presented at the hearing, together with copies of all |
146 | documentation to be considered by the value adjustment board and |
147 | a summary of evidence to be presented by witnesses. |
148 | (b) At least 15 No later than 7 days before the hearing, |
149 | if the petitioner has provided the information required under |
150 | paragraph (a), and if requested in writing by the petitioner, |
151 | the property appraiser shall provide to the petitioner a list of |
152 | evidence to be presented at the hearing, together with copies of |
153 | all documentation to be considered by the value adjustment board |
154 | and a summary of evidence to be presented by witnesses. The |
155 | evidence list must contain the property record card if provided |
156 | by the clerk. Failure of the property appraiser to timely comply |
157 | with the requirements of this paragraph shall result in a |
158 | rescheduling of the hearing. |
159 | Section 5. Subsection (2) of section 194.013, Florida |
160 | Statutes, is amended to read: |
161 | 194.013 Filing fees for petitions; disposition; waiver.-- |
162 | (2) The value adjustment board shall waive the filing fee |
163 | with respect to a petition filed by a taxpayer who is eligible |
164 | to receive one or more of the exemptions under s. 6(c), (f), or |
165 | (g), Art. VII of the State Constitution, regardless of whether |
166 | the taxpayer's local government grants the additional local |
167 | homestead exemptions. The filing fee also shall be waived for a |
168 | taxpayer who demonstrates at the time of filing, by an |
169 | appropriate certificate or other documentation issued by the |
170 | Department of Children and Family Services and submitted with |
171 | the petition, that the petitioner is then an eligible recipient |
172 | of temporary assistance under chapter 414. |
173 | Section 6. Section 194.015, Florida Statutes, is amended |
174 | to read: |
175 | 194.015 Value adjustment board.-- |
176 | (1) There is hereby created a value adjustment board for |
177 | each county, which shall consist of five members. |
178 | (2)(a)1. Three members shall be appointed by of the |
179 | governing body of the county, as follows: |
180 | a. One member must own a homestead property within the |
181 | county. |
182 | b. One member must own a business that occupies commercial |
183 | space located within the county. |
184 | c. An appointee may not be a member or an employee of any |
185 | taxing authority. |
186 | 2. as elected from the membership of the board of said |
187 | governing body, One of such appointees whom shall be elected |
188 | chairperson. |
189 | (b) , and Two members shall be appointed by of the school |
190 | board, as follows: |
191 | 1. One member must own a business that occupies commercial |
192 | space located within the school district. |
193 | 2. One member must be eligible to receive one or more of |
194 | the exemptions under s. 6(c), (f), or (g), Art. VII of the State |
195 | Constitution, regardless of whether the taxpayer's local |
196 | government grants the additional local homestead exemptions. |
197 | 3. An appointee may not be a member or an employee of any |
198 | taxing authority as elected from the membership of the school |
199 | board. The members of the board may be temporarily replaced by |
200 | other members of the respective boards on appointment by their |
201 | respective chairpersons. |
202 | (3) Any three members shall constitute a quorum of the |
203 | board, except that each quorum must include at least one member |
204 | of said governing board and at least one member of the school |
205 | board, and no meeting of the board shall take place unless a |
206 | quorum is present. |
207 | (4) Members of the board may receive such per diem |
208 | compensation as is allowed by law for state employees if both |
209 | bodies elect to allow such compensation. |
210 | (5) The clerk of the governing body of the county shall be |
211 | the clerk of the value adjustment board. |
212 | (6)(a) The office of the county attorney may be counsel to |
213 | the board unless the county attorney represents the property |
214 | appraiser, in which instance the board shall appoint private |
215 | counsel who has practiced law for over 5 years and who shall |
216 | receive such compensation as may be established by the board. |
217 | (b) Meetings No meeting of the board may not shall take |
218 | place unless counsel to the board is present. However, counsel |
219 | for the property appraiser shall not be required when the county |
220 | attorney represents only the board at the board hearings, even |
221 | though the county attorney may represent the property appraiser |
222 | in other matters or at a different time. |
223 | (7) Two-fifths of the expenses of the board shall be borne |
224 | by the district school board and three-fifths by the district |
225 | county commission. |
226 | Section 7. Subsection (2) of section 194.032, Florida |
227 | Statutes, is amended to read: |
228 | 194.032 Hearing purposes; timetable.-- |
229 | (2) The clerk of the governing body of the county shall |
230 | prepare a schedule of appearances before the board based on |
231 | petitions timely filed with him or her. The clerk shall notify |
232 | each petitioner of the scheduled time of his or her appearance |
233 | no less than 25 calendar days prior to the day of such scheduled |
234 | appearance. Upon receipt of this notification, the petitioner |
235 | shall have the right to reschedule the hearing for the failure |
236 | of the property appraiser to comply with the requirements of s. |
237 | 194.011(4)(b). The hearing shall be rescheduled no sooner than |
238 | 15 days after the property appraiser complies with the |
239 | requirements of s. 194.011(4)(b). The petitioner shall also have |
240 | the right to reschedule the hearing a single time by submitting |
241 | to the clerk of the governing body of the county a written |
242 | request to reschedule, no less than 5 calendar days before the |
243 | day of the originally scheduled hearing. Additional rescheduling |
244 | of the hearing may be granted to the taxpayer upon receipt of an |
245 | affidavit from a physician that states a medical reason as to |
246 | why the petitioner needs to reschedule the hearing. A copy of |
247 | the property record card containing relevant information used in |
248 | computing the taxpayer's current assessment shall be included |
249 | with such notice, if said card was requested by the taxpayer. |
250 | Such request shall be made by checking an appropriate box on the |
251 | petition form. No petitioner shall be required to wait for more |
252 | than 2 4 hours from the scheduled time; and, if his or her |
253 | petition is not heard in that time, the petitioner may, at his |
254 | or her option, report to the chairperson of the meeting that he |
255 | or she intends to leave; and, if he or she is not heard |
256 | immediately, the petitioner's hearing shall be rescheduled for a |
257 | time reserved exclusively for the petitioner administrative |
258 | remedies will be deemed to be exhausted, and he or she may seek |
259 | further relief as he or she deems appropriate. Failure on three |
260 | occasions with respect to any single tax year to convene at the |
261 | scheduled time of meetings of the board shall constitute grounds |
262 | for removal from office by the Governor for neglect of duties. |
263 | Section 8. Subsection (2) of section 194.034, Florida |
264 | Statutes, is amended to read: |
265 | 194.034 Hearing procedures; rules.-- |
266 | (2) In each case, except when a complaint is withdrawn by |
267 | the petitioner or is acknowledged as correct by the property |
268 | appraiser, the value adjustment board shall render a written |
269 | decision. All such decisions shall be issued within 20 calendar |
270 | days of the last day the board is in session under s. 194.032. |
271 | The decision of the board shall contain findings of fact and |
272 | conclusions of law and shall include reasons for upholding or |
273 | overturning the determination of the property appraiser. If the |
274 | determination of the property appraiser is overturned, the board |
275 | shall order the refunding of the filing fee required by s. |
276 | 194.013. When a special magistrate has been appointed, the |
277 | recommendations of the special magistrate shall be considered by |
278 | the board. The clerk, upon issuance of the decisions, shall, on |
279 | a form provided by the Department of Revenue, notify by first- |
280 | class mail each taxpayer, the property appraiser, and the |
281 | department of the decision of the board. |
282 | Section 9. Subsection (3) is added to section 194.192, |
283 | Florida Statutes, to read: |
284 | 194.192 Costs; interest on unpaid taxes; penalty; attorney |
285 | fees.-- |
286 | (3) If the court finds that the amount owed by the |
287 | taxpayer is less than the amount of tax paid, the court shall |
288 | enter judgment against the appraiser for the difference and for |
289 | interest on the difference at the rate of 12 percent per year |
290 | from the date of payment. If the final assessment established by |
291 | the court is lower than the value assessed by the property |
292 | appraiser by more than 10 percent, the court shall assess and |
293 | award reasonable attorney fees to the taxpayer. |
294 | Section 10. Section 194.301, Florida Statutes, is amended |
295 | to read: |
296 | 194.301 Presumption of correctness and burden of proof in |
297 | ad valorem tax assessment challenges.--In any administrative or |
298 | judicial proceeding action in which a taxpayer challenges an ad |
299 | valorem tax assessment of value is challenged, the burden of |
300 | proof shall be upon the party initiating the proceeding and such |
301 | party shall have the burden of proving by a preponderance of the |
302 | evidence that the assessment, as established by the property |
303 | appraiser or the Value Adjustment Board, is incorrect. The |
304 | property appraiser's assessment shall be presumed correct, |
305 | except that if the Value Adjustment Board has established a |
306 | different assessment, the assessment of the Value Adjustment |
307 | Board shall be presumed correct. This presumption of correctness |
308 | is lost if the taxpayer shows by a preponderance of the evidence |
309 | that either the property appraiser has failed to comply with |
310 | uniform standards of professional appraisal practice in his or |
311 | her consideration of consider properly the criteria in s. |
312 | 193.011 or if the property appraiser's assessment is arbitrarily |
313 | based on appraisal practices which are different from the |
314 | appraisal practices generally applied by the property appraiser |
315 | to comparable property within the same class and within the same |
316 | county. If the presumption of correctness is lost, the taxpayer |
317 | shall have the burden of proving by a preponderance of the |
318 | evidence that the appraiser's assessment is in excess of just |
319 | value. If the presumption of correctness is retained, the |
320 | taxpayer shall have the burden of proving by clear and |
321 | convincing evidence that the appraiser's assessment is in excess |
322 | of just value. In no case shall the taxpayer have the burden of |
323 | proving that the property appraiser's assessment is not |
324 | supported by any reasonable hypothesis of a legal assessment. If |
325 | the property appraiser's assessment is determined to be |
326 | erroneous, the Value Adjustment Board or the court can establish |
327 | the assessment if there exists competent, substantial evidence |
328 | in the record, which cumulatively meets the requirements of s. |
329 | 193.011. If the record lacks competent, substantial evidence |
330 | meeting the just value criteria of s. 193.011, the matter shall |
331 | be remanded to the property appraiser with appropriate |
332 | directions from the Value Adjustment Board or the court. |
333 | Section 11. This act shall take effect upon becoming a |
334 | law. |