HB 1D

1
A bill to be entitled
2An act relating to just valuation of property; amending s.
3193.011, F.S.; providing for consideration of zoning
4changes and permits in determining the highest and best
5use; revising the just valuation factor relating to the
6condition of property; including cost of removal of
7tangible personal property as a consideration in the net
8sale proceeds factor; requiring property appraisers to use
9only market rent in arriving at just value of certain
10income-producing properties; providing a definition;
11providing applicability; amending s. 193.016, F.S.;
12providing for consideration of value adjustment board
13decisions for all properties; creating s. 193.018, F.S.;
14authorizing owners of certain properties to enter into
15deed-restriction agreements with counties for certain
16purposes; requiring property appraisers to consider deed-
17restriction agreements in determining just value;
18providing for payment of back taxes plus interest if the
19deed-restriction agreement is terminated early; amending
20s. 194.011, F.S.; revising provisions relating to
21provision of evidence by petitioners and property
22appraisers; amending s. 194.013, F.S.; requiring value
23adjustment boards to waive a petition filing fee for
24taxpayers eligible for certain constitutional exemptions;
25amending s. 194.015, F.S.; revising the membership of
26value adjustment boards, appointment criteria, and quorum
27requirements; amending s. 194.032, F.S.; providing for
28criteria for rescheduling certain hearings under certain
29circumstances; amending s. 194.034, F.S.; requiring value
30adjustment boards to order refund of certain filing fees
31if a determination of a property appraiser is overturned;
32amending s. 194.192, F.S.; providing for judgments against
33property appraisers under certain circumstances; providing
34for assessment and award of attorney fees to taxpayers
35under certain circumstances; amending s. 194.301, F.S.;
36revising criteria for a presumption of correctness of ad
37valorem taxation assessments and the burden of proof in
38actions challenging such assessments; amending s. 420.507,
39F.S.; correcting a cross-reference; providing an effective
40date.
41
42Be It Enacted by the Legislature of the State of Florida:
43
44     Section 1.  Effective upon this act becoming a law and
45applicable to assessments beginning January 1, 2009, section
46193.011, Florida Statutes, is amended to read:
47     193.011  Factors to consider in deriving just valuation.--
48     (1)  In arriving at just valuation as required under s. 4,
49Art. VII of the State Constitution, the property appraiser shall
50take into consideration the following factors:
51     (a)(1)  The present cash value of the property, which is
52the amount a willing purchaser would pay a willing seller,
53exclusive of reasonable fees and costs of purchase, in cash or
54the immediate equivalent thereof in a transaction at arm's
55length;
56     (b)(2)  The highest and best use to which the property can
57be expected to be put in the immediate future and the present
58use of the property, taking into consideration any applicable
59judicial limitation, local or state land use regulation, or
60historic preservation ordinance, and any zoning changes and
61permits necessary to achieve the highest and best use, and
62considering any moratorium imposed by executive order, law,
63ordinance, regulation, resolution, or proclamation adopted by
64any governmental body or agency or the Governor when the
65moratorium or judicial limitation prohibits or restricts the
66development or improvement of property as otherwise authorized
67by applicable law. The applicable governmental body or agency or
68the Governor shall notify the property appraiser in writing of
69any executive order, ordinance, regulation, resolution, or
70proclamation it adopts imposing any such limitation, regulation,
71or moratorium;
72     (c)(3)  The location of said property;
73     (d)(4)  The quantity or size of said property;
74     (e)(5)  The cost of said property and the present
75replacement value of any improvements thereon;
76     (f)(6)  The condition of said property. When determining
77the condition of the property, the property appraiser shall
78consider physical deterioration, functional obsolescence, and
79external obsolescence;
80     (g)(7)  The income from said property; and
81     (h)(8)  The net proceeds of the sale of the property, as
82received by the seller, after deduction of all of the usual and
83reasonable fees and costs of the sale, including the costs and
84expenses of financing, and allowance for unconventional or
85atypical terms of financing arrangements, and including the
86costs of removal of tangible personal property. When the net
87proceeds of the sale of any property are utilized, directly or
88indirectly, in the determination of just valuation of realty of
89the sold parcel or any other parcel under the provisions of this
90section, the property appraiser, for the purposes of such
91determination, shall exclude any portion of such net proceeds
92attributable to payments for household furnishings or other
93items of personal property.
94     (2)  Notwithstanding the requirement that property
95appraisers consider all of the factors enumerated in subsection
96(1) in arriving at just valuation, property appraisers shall
97consider only the market rent from income-producing property in
98the case of all residential rental property and all commercial
99property that is leased to more than one legal entity, each of
100which conducts a separate business activity on the property. For
101purposes of this subsection, the term "market rent" means the
102most likely rent that an income-producing property would command
103if offered for lease in the open market.
104     Section 2.  Section 193.016, Florida Statutes, is amended
105to read:
106     193.016  Property appraiser's assessment; effect of
107determinations by value adjustment board.--If the property
108appraiser's assessment of the same items of tangible personal
109property in the previous year was adjusted by the value
110adjustment board and the decision of the board to reduce the
111assessment was not successfully appealed by the property
112appraiser, the property appraiser shall consider the reduced
113value values determined by the value adjustment board in
114assessing the those items of tangible personal property. If the
115property appraiser adjusts upward the reduced value values
116previously determined by the value adjustment board, the
117property appraiser shall assert additional basic and underlying
118facts not properly considered by the value adjustment board as
119the basis for the increased valuation notwithstanding the prior
120adjustment by the board.
121     Section 3.  Section 193.018, Florida Statutes, is created
122to read:
123     193.018  Assessment of deed-restricted property.--
124     (1)  The owner of residential rental property, multiunit
125commercial rental property, property used as a marina,
126waterfront property used exclusively for commercial fishing
127purposes, or property rented for use by mobile homes may enter
128into a deed-restriction agreement with the county to maintain
129the property at its current use for a period of at least 5
130years.
131     (2)  The property appraiser shall consider the deed-
132restriction agreement in determining the just value of the
133property.
134     (3)  If, prior to the expiration of the deed-restriction
135agreement, the property is not used for the purposes set forth
136in the deed-restriction agreement, the deed-restriction
137agreement shall be terminated and the property owner shall pay
138to the county an amount equal to the additional taxes that would
139have been paid in prior years had the deed-restriction agreement
140not been in effect, plus 12 percent interest.
141     Section 4.  Subsection (4) of section 194.011, Florida
142Statutes, is amended to read:
143     194.011  Assessment notice; objections to assessments.--
144     (4)(a)  At least 15 days before the hearing, the petitioner
145shall provide to the property appraiser a list of evidence to be
146presented at the hearing, together with copies of all
147documentation to be considered by the value adjustment board and
148a summary of evidence to be presented by witnesses.
149     (b)  At least 15 No later than 7 days before the hearing,
150if the petitioner has provided the information required under
151paragraph (a), and if requested in writing by the petitioner,
152the property appraiser shall provide to the petitioner a list of
153evidence to be presented at the hearing, together with copies of
154all documentation to be considered by the value adjustment board
155and a summary of evidence to be presented by witnesses. The
156evidence list must contain the property record card if provided
157by the clerk. Failure of the property appraiser to timely comply
158with the requirements of this paragraph shall result in a
159rescheduling of the hearing.
160     Section 5.  Subsection (2) of section 194.013, Florida
161Statutes, is amended to read:
162     194.013  Filing fees for petitions; disposition; waiver.--
163     (2)  The value adjustment board shall waive the filing fee
164with respect to a petition filed by a taxpayer who is eligible
165to receive one or more of the exemptions under s. 6(c), (f), or
166(g), Art. VII of the State Constitution, regardless of whether
167the taxpayer's local government grants the additional local
168homestead exemptions. The filing fee also shall be waived for a
169taxpayer who demonstrates at the time of filing, by an
170appropriate certificate or other documentation issued by the
171Department of Children and Family Services and submitted with
172the petition, that the petitioner is then an eligible recipient
173of temporary assistance under chapter 414.
174     Section 6.  Section 194.015, Florida Statutes, is amended
175to read:
176     194.015  Value adjustment board.--
177     (1)  There is hereby created a value adjustment board for
178each county, which shall consist of five members.
179     (2)(a)1.  Three members shall be appointed by of the
180governing body of the county, as follows:
181     a.  One member must own a homestead property within the
182county.
183     b.  One member must own a business that occupies commercial
184space located within the county.
185     c.  An appointee may not be a member or an employee of any
186taxing authority.
187     2.  as elected from the membership of the board of said
188governing body, One of such appointees whom shall be elected
189chairperson.
190     (b)  , and Two members shall be appointed by of the school
191board, as follows:
192     1.  One member must own a business that occupies commercial
193space located within the school district.
194     2.  One member must be eligible to receive one or more of
195the exemptions under s. 6(c), (f), or (g), Art. VII of the State
196Constitution, regardless of whether the taxpayer's local
197government grants the additional local homestead exemptions.
198     3.  An appointee may not be a member or an employee of any
199taxing authority as elected from the membership of the school
200board. The members of the board may be temporarily replaced by
201other members of the respective boards on appointment by their
202respective chairpersons.
203     (3)  Any three members shall constitute a quorum of the
204board, except that each quorum must include at least one member
205of said governing board and at least one member of the school
206board, and no meeting of the board shall take place unless a
207quorum is present.
208     (4)  Members of the board may receive such per diem
209compensation as is allowed by law for state employees if both
210bodies elect to allow such compensation.
211     (5)  The clerk of the governing body of the county shall be
212the clerk of the value adjustment board.
213     (6)(a)  The office of the county attorney may be counsel to
214the board unless the county attorney represents the property
215appraiser, in which instance the board shall appoint private
216counsel who has practiced law for over 5 years and who shall
217receive such compensation as may be established by the board.
218     (b)  Meetings No meeting of the board may not shall take
219place unless counsel to the board is present. However, counsel
220for the property appraiser shall not be required when the county
221attorney represents only the board at the board hearings, even
222though the county attorney may represent the property appraiser
223in other matters or at a different time.
224     (7)  Two-fifths of the expenses of the board shall be borne
225by the district school board and three-fifths by the district
226county commission.
227     Section 7.  Subsection (2) of section 194.032, Florida
228Statutes, is amended to read:
229     194.032  Hearing purposes; timetable.--
230     (2)  The clerk of the governing body of the county shall
231prepare a schedule of appearances before the board based on
232petitions timely filed with him or her. The clerk shall notify
233each petitioner of the scheduled time of his or her appearance
234no less than 25 calendar days prior to the day of such scheduled
235appearance. Upon receipt of this notification, the petitioner
236shall have the right to reschedule the hearing for the failure
237of the property appraiser to comply with the requirements of s.
238194.011(4)(b). The hearing shall be rescheduled no sooner than
23915 days after the property appraiser complies with the
240requirements of s. 194.011(4)(b). The petitioner shall also have
241the right to reschedule the hearing a single time by submitting
242to the clerk of the governing body of the county a written
243request to reschedule, no less than 5 calendar days before the
244day of the originally scheduled hearing. Additional rescheduling
245of the hearing may be granted to the taxpayer upon receipt of an
246affidavit from a physician that states a medical reason as to
247why the petitioner needs to reschedule the hearing. A copy of
248the property record card containing relevant information used in
249computing the taxpayer's current assessment shall be included
250with such notice, if said card was requested by the taxpayer.
251Such request shall be made by checking an appropriate box on the
252petition form. No petitioner shall be required to wait for more
253than 2 4 hours from the scheduled time; and, if his or her
254petition is not heard in that time, the petitioner may, at his
255or her option, report to the chairperson of the meeting that he
256or she intends to leave; and, if he or she is not heard
257immediately, the petitioner's hearing shall be rescheduled for a
258time reserved exclusively for the petitioner administrative
259remedies will be deemed to be exhausted, and he or she may seek
260further relief as he or she deems appropriate. Failure on three
261occasions with respect to any single tax year to convene at the
262scheduled time of meetings of the board shall constitute grounds
263for removal from office by the Governor for neglect of duties.
264     Section 8.  Subsection (2) of section 194.034, Florida
265Statutes, is amended to read:
266     194.034  Hearing procedures; rules.--
267     (2)  In each case, except when a complaint is withdrawn by
268the petitioner or is acknowledged as correct by the property
269appraiser, the value adjustment board shall render a written
270decision. All such decisions shall be issued within 20 calendar
271days of the last day the board is in session under s. 194.032.
272The decision of the board shall contain findings of fact and
273conclusions of law and shall include reasons for upholding or
274overturning the determination of the property appraiser. If the
275determination of the property appraiser is overturned, the board
276shall order the refunding of the filing fee required by s.
277194.013. When a special magistrate has been appointed, the
278recommendations of the special magistrate shall be considered by
279the board. The clerk, upon issuance of the decisions, shall, on
280a form provided by the Department of Revenue, notify by first-
281class mail each taxpayer, the property appraiser, and the
282department of the decision of the board.
283     Section 9.  Subsection (3) is added to section 194.192,
284Florida Statutes, to read:
285     194.192  Costs; interest on unpaid taxes; penalty; attorney
286fees.--
287     (3)  If the court finds that the amount owed by the
288taxpayer is less than the amount of tax paid, the court shall
289enter judgment against the appraiser for the difference and for
290interest on the difference at the rate of 12 percent per year
291from the date of payment. If the final assessment established by
292the court is lower than the value assessed by the property
293appraiser by more than 10 percent, the court shall assess and
294award reasonable attorney fees to the taxpayer.
295     Section 10.  Section 194.301, Florida Statutes, is amended
296to read:
297     194.301  Presumption of correctness and burden of proof in
298ad valorem tax assessment challenges.--In any administrative or
299judicial proceeding action in which a taxpayer challenges an ad
300valorem tax assessment of value is challenged, the burden of
301proof shall be upon the party initiating the proceeding and such
302party shall have the burden of proving by a preponderance of the
303evidence that the assessment, as established by the property
304appraiser or the Value Adjustment Board, is incorrect. The
305property appraiser's assessment shall be presumed correct,
306except that if the Value Adjustment Board has established a
307different assessment, the assessment of the Value Adjustment
308Board shall be presumed correct. This presumption of correctness
309is lost if the taxpayer shows by a preponderance of the evidence
310that either the property appraiser has failed to comply with
311uniform standards of professional appraisal practice in his or
312her consideration of consider properly the criteria in s.
313193.011 or if the property appraiser's assessment is arbitrarily
314based on appraisal practices which are different from the
315appraisal practices generally applied by the property appraiser
316to comparable property within the same class and within the same
317county. If the presumption of correctness is lost, the taxpayer
318shall have the burden of proving by a preponderance of the
319evidence that the appraiser's assessment is in excess of just
320value. If the presumption of correctness is retained, the
321taxpayer shall have the burden of proving by clear and
322convincing evidence that the appraiser's assessment is in excess
323of just value. In no case shall the taxpayer have the burden of
324proving that the property appraiser's assessment is not
325supported by any reasonable hypothesis of a legal assessment. If
326the property appraiser's assessment is determined to be
327erroneous, the Value Adjustment Board or the court can establish
328the assessment if there exists competent, substantial evidence
329in the record, which cumulatively meets the requirements of s.
330193.011. If the record lacks competent, substantial evidence
331meeting the just value criteria of s. 193.011, the matter shall
332be remanded to the property appraiser with appropriate
333directions from the Value Adjustment Board or the court.
334     Section 11.  Subsection (46) of section 420.507, Florida
335Statutes, is amended to read:
336     420.507  Powers of the corporation.--The corporation shall
337have all the powers necessary or convenient to carry out and
338effectuate the purposes and provisions of this part, including
339the following powers which are in addition to all other powers
340granted by other provisions of this part:
341     (46)  To require, as a condition of financing a multifamily
342rental project, that an agreement be recorded in the official
343records of the county where the real property is located, which
344requires that the project be used for housing defined as
345affordable in s. 420.0004(3) by persons defined in s.
346420.0004(8), (10), (11), and (15). Such an agreement is a state
347land use regulation that limits the highest and best use of the
348property within the meaning of s. 193.011(1)(b)(2).
349     Section 12.  This act shall take effect upon becoming a
350law.


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