HB 1209

1
A bill to be entitled
2An act relating to property tax relief; creating part II
3of ch. 195, F.S., relating to the Florida Residents
4Property Tax Relief Program; providing a short title;
5providing definitions; providing for property tax relief
6benefits; providing a formula for providing a refund of a
7portion of property taxes paid based on household income;
8providing income limitations; providing that a claim for
9the tax refund is personal to the claimant and does not
10survive the claimant's death; providing a procedure for
11submitting refund claims to the Department of Revenue and
12payment from a fund managed by the Department of Financial
13Services; providing a date range for filing the claim and
14for an extension of time under certain circumstances;
15providing for the administration of the program by the
16Department of Revenue; authorizing the department to adopt
17rules; providing for the audit of claims and the repayment
18or credit for excess refunds; providing a procedure for
19the denial of claims; providing penalties; providing for
20the disallowance of certain claims; providing for the
21appeal of claim denials; providing that income from the
22refund may not result in a reduction of other social
23welfare benefits; providing that the claim application
24form be at a certain reading level; providing for an
25outreach plan for the program; providing for cooperation
26between the department and the Department of Health, the
27Department of Children and Family Services, and the
28Department of Elderly Affairs and other advocates and
29interested agencies and organizations; providing an
30appropriation; providing an effective date.
31
32Be It Enacted by the Legislature of the State of Florida:
33
34     Section 1.  Part II of chapter 195, Florida Statutes,
35consisting of sections 195.301, 195.302, 195.303, 195.304,
36195.305, 195.306, 195.307, 195.308, 195.309, 195.3105, 195.311,
37195.312, 195.313, 195.314, 195.315, and 195.316, is created to
38read:
39     195.301  Short title.--This part may be cited as the
40"Florida Residents Property Tax Relief Program" and may also be
41referred to as the "Circuit Breaker Program."
42     195.302  Definitions.--As used in this part, the term:
43     (1)  "Claimant" means an individual who has filed a claim
44under this part and who was domiciled and occupied a homestead
45in this state during the entire calendar year preceding the year
46in which the claim for relief is filed. The term also includes
47an individual who was domiciled and owned or otherwise
48maintained a homestead in this state during the entire calendar
49year preceding the year in which the claim for relief is filed
50and who occupied that homestead for at least 6 months during
51that year. Regardless of how many individuals appear on the
52property deed, the person who meets the qualifications described
53in this subsection and proves sole responsibility for the
54payment of the property taxes on the subject property is the
55claimant with respect to that property. If two or more
56individuals meet the qualifications and share the payment of the
57rent or the responsibility for the payment of the property
58taxes, each individual may apply on the basis of the rent paid
59or the property taxes levied on the homestead that reflect the
60ownership percentage of the claimant and the claimant's
61household. If two or more individuals claim the same property,
62the matter shall be referred to the department, and the
63department's decision is final. Ownership of a homestead under
64this part may be by fee, by life tenancy, by bond for deed, as
65mortgagee, or any other possessory interest in which the owner
66is personally responsible for the tax for which a relief benefit
67is claimed.
68     (2)  "Department" means the Department of Revenue.
69     (3)  "Gross rent" means rent paid at arm's length solely
70for the right of occupancy of a homestead, exclusive of charges
71for any utilities, services, furniture, furnishings, or personal
72property or appliances furnished by the landlord as part of the
73rental agreement, regardless of whether such charges are
74expressly set out in the rental agreement. If the landlord and
75tenant have not dealt with each other at arm's length, and the
76department determines that the gross rent charged is excessive,
77the department may adjust the gross rent to a reasonable amount
78for purposes of this part.
79     (4)  "Homestead" means the dwelling owned or rented by the
80claimant or held in a revocable living trust for the benefit of
81the claimant and occupied by the claimant and the claimant's
82dependents as a home, and may consist of a part of a
83multidwelling or multipurpose building and a part of the land
84qualified for homestead treatment upon which it is built. The
85term "owned" includes a vendee in possession under a land
86contract and one or more joint tenants or tenants in common. The
87term "rented" means those dwellings that are rented and qualify
88for a state sales tax exemption under chapter 212.
89     (5)  "Household" means a claimant and spouse and members of
90the household for whom the claimant under this part is entitled
91to claim an exemption as a dependent under the federal income
92tax code for the year for which relief is requested.
93     (6)  "Household income" means all income received by all
94members of a household in a calendar year while members of the
95household.
96     (7)  "Income" means the sum of federal adjusted gross
97income determined in accordance with the federal income tax
98code; contributions, including catch-up contributions, to any
99pension, annuity, or retirement plan to the extent not included
100in federal adjusted gross income, including contributions to an
101individual retirement account, a simplified employee pension
102plan, a salary reduction simplified employee pension plan, a
103savings incentive match plan for employees plan, a deferred
104compensation plan, cash, or deferred arrangements or "Keogh"
105accounts; nontaxable contributions to a flexible spending
106arrangement; amounts excluded from gross income under s. 129 of
107the Internal Revenue Code; distributions from ROTH IRAs; the
108amount of capital gains excluded from adjusted gross income; the
109absolute value of the amount of trade or business loss, net
110operating loss carryover, capital loss, rental loss, farm loss,
111or partnership or S corporation loss included in adjusted gross
112income; alimony; inheritance; life insurance proceeds paid on
113death of insured; nontaxable lawsuit rewards, such as slander,
114libel, and pain and suffering, excluding reimbursements such as
115medical and legal expenses associated with the case; support
116money; nontaxable strike benefits; the gross amount of any
117pension or annuity, including railroad retirement benefits; all
118payments received under the Social Security Act and state
119unemployment insurance laws; veterans' disability pensions;
120nontaxable interest received from the Federal Government or its
121instrumentalities; interest or dividends on obligations or
122securities of this state and its political subdivisions and
123authorities; workers' compensation and the gross amount of "loss
124of time" insurance; and cash public assistance and relief, not
125including relief granted under this part. The term does not
126include the first $5,000 of proceeds from a life insurance
127policy, whether paid in a lump sum or in the form of an annuity;
128a rollover from an individual retirement account, pension, or
129annuity fund or plan to an individual retirement account,
130pension, or annuity fund or plan even if the amount of the
131rollover is includable in federal adjusted gross income; or
132gifts from nongovernmental sources or surplus foods or other
133relief in kind supplied by a governmental agency.
134     (8)  "Property taxes accrued" means state property taxes
135exclusive of special assessment, delinquent interest, and
136charges for service levied on a claimant's homestead on or after
137January 1, 2008. If a homestead is owned by two or more persons
138or entities as joint tenants or tenants in common and one or
139more persons or entities are not members of the claimant's
140household, the term applies to that part of the property taxes
141that reflect the ownership percentage of the claimant and the
142claimant's household. If a claimant and spouse own their
143homestead for part of the year and rent it or a different
144homestead for part of the same tax year, the term means taxes
145levied on the homestead on January 1, multiplied by the
146percentage of 12 months that the property was owned and occupied
147by the household as its homestead during the year for which
148relief is requested. If a household owns and occupies two or
149more different homesteads in this state in the same tax year,
150property taxes accrued relate only to that property occupied by
151the household as a homestead on January 1. If a homestead is an
152integral part of a larger unit such as a farm or a multipurpose
153or multidwelling building, property taxes accrued are that
154percentage of the total property taxes accrued which the value
155of the homestead is to the total value of the larger unit,
156except that property taxes accrued do not include any portion of
157taxes claimed as a business expense for federal income tax
158purposes. For purposes of this part, "unit" means the parcel of
159property separately assessed of which the homestead is a part.
160     (9)  "Property taxes paid" means property taxes accrued or
161rent constituting property taxes accrued. In the case of a
162claimant paying both rent and property taxes for a homestead,
163property taxes paid mean both property taxes accrued and rent
164constituting property taxes accrued.
165     (10)  "Rent constituting property taxes accrued" with
166respect to for an elderly household means 15 percent of the
167gross rent actually paid in cash or its equivalent in any tax
168year by a claimant and the claimant's household solely for the
169right of occupancy of their state homestead in the tax year and
170which rent constitutes the basis, in the succeeding calendar
171year, of a claim for relief under this part by the claimant.
172     (11)  "Year for which relief is requested" means the
173calendar year preceding that in which the claim is filed.
174     195.303  Property tax relief benefits; claims; income
175limitations.--
176     (1)  A claimant representing a residential household shall
177qualify for the following relief benefits from property taxes
178paid subject to the following income limitations. The benefit
179shall be calculated as follows if the annual household income
180is:
181     (a)  Zero to $60,000, the relief benefit equals the amount
182of property tax paid in excess of 4 percent of the household
183income up to a maximum of $1,500.
184     (b)  Sixty thousand dollars and one cent to $100,000, the
185relief benefit equals the amount of property tax paid in excess
186of 5 percent of the household income up to a maximum of $1,500.
187     (c)  One hundred thousand dollars and one cent to $150,000,
188the relief benefit equals the amount of property tax paid in
189excess of 6 percent of the household income up to a maximum of
190$1,500.
191     (d)  Over $150,000, there shall be no relief benefit.
192     (2)  A claim of less than $10 may not be granted.
193     195.304  Claim is personal.--
194     (1)  The right to file a claim under this part is personal
195to the claimant and does not survive the claimant's death, but
196may be exercised on behalf of a claimant by the claimant's legal
197guardian or attorney in fact. If a claimant dies after having
198filed a timely claim, the claim amount shall be disbursed to
199another member of the household as determined by the department.
200     (2)  If the claimant was the only member of a household,
201the claim may be paid to the claimant's personal representative,
202but if one is not appointed within 2 years after the filing of
203the claim, the amount of the claim escheats to the state.
204     195.305  Procedure for reimbursement.--On or before the
205last day of the month, the department shall determine the relief
206benefit for each claimant under this part and certify the amount
207to the Department of Financial Services to be transferred to the
208reserve established, maintained, and administered by Department
209of Financial Services from the General Revenue Fund. On or
210before November 15 of each year, the department shall pay the
211certified amounts to each approved applicant. Interest is
212allowed on any payment made to a claimant pursuant to this part.
213     195.306  Filing date; extension of time.--
214     (1)  A claim may not be paid unless the claim is filed with
215the department on or after April 1 and on or before the
216following August 31.
217     (2)  In case of sickness, absence, or other disability, or
218if, in the judgment of the department, good cause exists, the
219department may extend the time for filing a claim for up to 2
220months. A request for an extension may be submitted at any time
221before August 31 of the year in question.
222     195.307  One claim per household.--Only one claimant per
223household or homestead per year is entitled to relief under this
224part.
225     195.308  Administration.--
226     (1)  The department shall make available suitable forms
227with instructions for claimants. The claim must be in the form
228prescribed by the department and signed under oath and is
229subject to the penalties of perjury by the claimant.
230     (2)  The department shall also provide a paperless option
231for filing an application.
232     (3)  The department may adopt rules pursuant to ss.
233120.536(1) and 120.54 to administer this program.
234     195.309  Audit of claim.--If, following the audit of any
235claim filed under this part, the department determines the
236amount to have been incorrectly determined, the department shall
237redetermine the claim and notify the claimant of the
238redetermination and the reasons for it. The redetermination is
239reviewable in accordance with s. 195.312. If the claim has been
240paid, the amount paid in excess of that legally due is subject
241to interest at the rate determined by the Department of
242Financial Services. The department may credit a benefit payable
243to a claimant against a liability of that claimant pursuant to
244this section.
245     195.3105  Denial of claim.--
246     (1)  If the department determines that a claim under this
247part is excessive and was filed with fraudulent intent, the
248claim shall be disallowed in full. If the claim has been paid,
249the amount paid may be recovered by assessment, collection, and
250enforcement in the manner provided in chapter 212. A person who,
251with fraudulent intent, files or prepares an excessive claim,
252assists in the preparation or filing of an excessive claim, or
253supplies information in support of an excessive claim commits a
254felony of the third degree, punishable as provided in s.
255775.082, s. 775.083, or s. 775.084.
256     (2)  If the department determines that a claim under this
257part is excessive and was negligently prepared, the amount
258claimed in excess of that legally due plus 10 percent of the
259corrected claim shall be disallowed. If the claim has been paid,
260the amount disallowed may be recovered by assessment,
261collection, and enforcement in the manner provided in chapter
262212.
263     (3)  A person who has an unpaid liability arising from this
264section and the spouse of that person may not receive benefits
265under this part.
266     195.311  Disallowance of claims.--A claim shall be
267disallowed if the department finds that the claimant received
268title to his or her homestead primarily for the purpose of
269receiving benefits under this part.
270     195.312  Appeal.--A denial in whole or in part of relief
271claimed under this part may be appealed in accordance with
272chapter 120.
273     195.313  Protection from loss of benefits.--
274     (1)  It is the intent of the Legislature that any claim
275paid under this part shall supplement any benefits paid under
276aid to the aged, blind, and disabled or any successor benefits
277program. The Department of Health, the Department of Children
278and Family Services, and the Department of Elderly Affairs may
279take any action necessary to ensure that recipients of aid to
280the aged, blind, and disabled continue to receive as high a
281percentage of their current assistance as possible. The
282department shall use all state funds expected to be saved by a
283reduction in benefits of recipients of aid to the aged, blind,
284and disabled resulting from this part to raise the standards of
285aid to the aged, blind, and disabled at a total cost in state
286funds equivalent to the savings in state funds which would be
287expected as a result of this part. Benefits received under this
288part may not be included as income for purposes of any state or
289municipally administered public benefit program.
290     (2)  These benefits do not duplicate and may not reduce the
291amount of any individual's payment under the Temporary
292Assistance for Needy Families program.
293     195.314  Readability; application; instructions.--The
294application form and instructions used by applicants for
295assistance under the Florida Residents Property Tax Relief
296Program must have a readability score, as determined by a
297recognized instrument for measuring adult literacy levels,
298equivalent to no higher than a 6th grade reading level.
299     195.315  Outreach plan required.--The department shall
300develop and implement a plan of outreach to ensure that all
301eligible households are made aware of assistance available under
302the Florida Residents Property Tax Relief Program.
303     195.316  Coordination required.--The department shall seek
304the advice and cooperation of the Department of Health, the
305Department of Children and Family Services, the Department of
306Elderly Affairs, advocates for elderly and low-income
307individuals, and other interested agencies and organizations in
308developing the application form and instruction booklet for the
309Florida Residents Property Tax Relief Program and the outreach
310plan required by this part.
311     Section 2.  The sum of $750,000,000 is appropriated from
312the General Revenue Fund to the Department of Revenue for the
313purpose of providing property tax relief benefits pursuant to
314this act. An additional sum of $500,000 is appropriated to the
315department to administer this program.
316     Section 3.  This act shall take effect July 1, 2008.


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