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A bill to be entitled

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An act relating to property tax relief; creating part II

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of ch. 195, F.S., relating to the Florida Residents

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Property Tax Relief Program; providing a short title;

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providing definitions; providing a formula for providing a

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rebate of a portion of property taxes paid based on

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household income; providing that a claim for the tax

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refund is personal to the claimant and does not survive

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the claimant's death; providing a procedure for submitting

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refund claims to the Department of Revenue and payment

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from a fund managed by the Department of Financial

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Services; providing a date range for filing the claim and

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for an extension of time under certain circumstances;

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providing for the administration of the program by the

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Department of Revenue; authorizing the department to adopt

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rules; providing for the audit of claims and the repayment

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or credit for excess refunds; providing a procedure for

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the denial of claims; providing for the disallowance of

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certain claims; providing for the appeal of claim denials;

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providing that income from the refund may not result in a

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reduction of other social welfare benefits; providing that

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the claim application form be at a certain reading level;

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providing for an outreach plan for the program; providing

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for cooperation between the department and the Department

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of Health, the Department of Children and Family Services,

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and the Department of Elderly Affairs; providing an

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appropriation; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Part II of chapter 195, Florida Statutes,

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consisting of sections 195.301, 195.302, 195.303, 195.304,

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195.305, 195.306, 195.307, 195.308, 195.309, 195.310, 195.311,

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195.312, 195.313, 195.314, 195.315, and 195.316, is created to

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read:

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     195.301 Short title.--This part may be cited as the

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"Florida Residents Property Tax Relief Program" and may also be

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referred to as the "Circuit Breaker Program."

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     195.302 Definitions.--As used in this part, the term:

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     (1) "Claimant" means an individual who has filed a claim

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under this part and who was domiciled and occupied a homestead in

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this state during the entire calendar year preceding the year in

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which the claim for relief is filed. The term also includes an

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individual who was domiciled and owned or otherwise maintained a

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homestead in this state during the entire calendar year preceding

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the year in which the claim for relief is filed and who occupied

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that homestead for at least 6 months during that year. Regardless

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of how many individuals appear on the property deed, the person

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who meets the qualifications described in this subsection and

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proves sole responsibility for the payment of the property taxes

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on the subject property is the claimant with respect to that

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property. If two or more individuals meet the qualifications and

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share the payment of the rent or the responsibility for the

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payment of the property taxes, each individual may apply on the

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basis of the rent paid or the property taxes levied on the

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homestead that reflect the ownership percentage of the claimant

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and the claimant's household. If two or more individuals claim

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the same property, the matter shall be referred to the

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department, and the department's decision is final. Ownership of

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a homestead under this part may be by fee, by life tenancy, by

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bond for deed, as mortgagee, or any other possessory interest in

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which the owner is personally responsible for the tax for which a

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relief benefit is claimed.

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     (2) "Department" means the Department of Revenue.

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     (3) "Gross rent" means rent paid at arm's length solely for

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the right of occupancy of a homestead, exclusive of charges for

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any utilities, services, furniture, furnishings, or personal

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property appliances furnished by the landlord as part of the

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rental agreement, regardless of whether such charges are

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expressly set out in the rental agreement. If the landlord and

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tenant have not dealt with each other at arm's length, and the

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department determines that the gross rent charged is excessive,

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the department may adjust the gross rent to a reasonable amount

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for purposes of this part.

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     (4) "Homestead" means the dwelling owned or rented by the

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claimant or held in a revocable living trust for the benefit of

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the claimant and occupied by the claimant and the claimant's

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dependents as a home, and may consist of a part of a

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multidwelling or multipurpose building and a part of the land

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qualified for homestead treatment upon which it is built. The

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term "owned" includes a vendee in possession under a land

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contract and one or more joint tenants or tenants in common. The

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term "rented" means those dwellings that are rented and qualify

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for a state sales tax exemption under chapter 212.

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     (5) "Household" means a claimant and spouse and members of

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the household for whom the claimant under this part is entitled

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to claim an exemption as a dependent under the federal income tax

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code for the year for which relief is requested.

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     (6) "Household income" means all income received by all

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members of a household in a calendar year while members of the

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household.

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     (7) "Income" means the sum of federal adjusted gross income

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determined in accordance with the federal income tax code;

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contributions, including catch-up contributions, to any pension,

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annuity, or retirement plan to the extent not included in federal

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adjusted gross income, including contributions to an individual

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retirement account, a simplified employee pension plan, a salary

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reduction simplified employee pension plan, a savings incentive

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match plan for employees plan, a deferred compensation plan,

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cash, or deferred arrangements or "Keogh" accounts; nontaxable

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contributions to a flexible spending arrangement; amounts

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excluded from gross income under s. 129 of the Internal Revenue

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Code; distributions from Roth IRAs; the amount of capital gains

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excluded from adjusted gross income; the absolute value of the

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amount of trade or business loss, net operating loss carry-over,

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capital loss, rental loss, farm loss, or partnership or S

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corporation loss included in adjusted gross income; alimony;

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inheritance; life insurance proceeds paid on death of insured;

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nontaxable lawsuit rewards, such as slander, libel, and pain and

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suffering, excluding reimbursements such as medical and legal

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expenses associated with the case; support money; nontaxable

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strike benefits; the gross amount of any pension or annuity,

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including railroad retirement benefits; all payments received

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under the Social Security Act and state unemployment insurance

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laws; veterans' disability pensions; nontaxable interest received

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from the Federal Government or its instrumentalities; interest or

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dividends on obligations or securities of this state and its

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political subdivisions and authorities; workers' compensation and

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the gross amount of "loss of time" insurance; and cash public

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assistance and relief, but not including relief granted under

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this part. The term does not include the first $5,000 of proceeds

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from a life insurance policy, whether paid in a lump sum or in

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the form of an annuity; a rollover from an individual retirement

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account, pension, or annuity fund or plan to an individual

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retirement account, pension, or annuity fund or plan even if the

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amount of the rollover is includable in federal adjusted gross

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income; or gifts from nongovernmental sources or surplus foods or

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other relief in kind supplied by a governmental agency.

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     (8) "Property taxes accrued" means state property taxes

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exclusive of special assessment, delinquent interest, and charges

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for service levied on a claimant's homestead on or after January

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1, 2008. If a homestead is owned by two or more persons or

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entities as joint tenants or tenants in common and one or more

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persons or entities are not members of the claimant's household,

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the term applies to that part of the property taxes that reflect

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the ownership percentage of the claimant and the claimant's

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household. If a claimant and spouse own their homestead for part

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of the year and rent it or a different homestead for part of the

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same tax year, the term means taxes levied on the homestead on

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January 1, multiplied by the percentage of 12 months which the

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property was owned and occupied by the household as its homestead

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during the year for which relief is requested. If a household

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owns and occupies two or more different homesteads in this state

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in the same tax year, property taxes accrued relate only to that

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property occupied by the household as a homestead on January 1.

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If a homestead is an integral part of a larger unit such as a

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farm or a multipurpose or multidwelling building, property taxes

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accrued are that percentage of the total property taxes accrued

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which the value of the homestead is to the total value of the

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larger unit, except that property taxes accrued do not include

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any portion of taxes claimed as a business expense for federal

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income tax purposes. For purposes of this part, "unit" means the

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parcel of property separately assessed of which the homestead is

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a part.

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     (9) "Property taxes paid" means property taxes accrued or

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rent constituting property taxes accrued. In the case of a

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claimant paying both rent and property taxes for a homestead,

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property taxes paid mean both property taxes accrued and rent

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constituting property taxes accrued.

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     (10) "Rent constituting property taxes accrued" with

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respect to an elderly household means 15 percent of the gross

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rent actually paid in cash or its equivalent in any tax year by a

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claimant and the claimant's household solely for the right of

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occupancy of their state homestead in the tax year and which rent

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constitutes the basis, in the succeeding calendar year, of a

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claim for relief under this part by the claimant.

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     (11) "Year for which relief is requested" means the

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calendar year preceding that in which the claim is filed.

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     195.303 Income limitations.--

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     (1) A claimant representing a residential household shall

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qualify for the following relief benefits from property taxes

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paid subject to the following income limitations. The benefit

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shall be calculated as follows if the annual household income is:

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     (a) Zero to $60,000, the relief benefit equals the amount

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of property tax paid in excess of 4 percent of the household

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income up to a maximum of $1,500.

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     (b) Sixty thousand dollars and one cent to $100,000, the

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relief benefit equals the amount of property tax paid in excess

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of 5 percent of the household income up to a maximum of $1,500.

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     (c) One hundred thousand dollars and one cent to $150,000,

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the relief benefit equals the amount of property tax paid in

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excess of 6 percent of the household income up to a maximum of

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$1,500.

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     (d) Over $150,000, there shall be no relief benefit.

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     (2) A claim of less than $10 may not be granted.

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     195.304 Claim is personal.--

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     (1) The right to file a claim under this part is personal

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to the claimant and does not survive the claimant's death, but

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may be exercised on behalf of a claimant by the claimant's legal

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guardian or attorney in fact. If a claimant dies after having

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filed a timely claim, the claim amount shall be disbursed to

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another member of the household as determined by the department.

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     (2) If the claimant was the only member of a household, the

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claim may be paid to the claimant's personal representative, but

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if one is not appointed within 2 years after the filing of the

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claim, the amount of the claim escheats to the state.

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     195.305 Procedure for reimbursement.--On or before the last

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day of the month, the department shall determine the relief

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benefit for each claimant under this part and certify the amount

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to the Department of Financial Services to be transferred to the

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reserve established, maintained, and administered by Department

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of Financial Services from the General Revenue Fund. On or before

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November 15 of each year, the department shall pay the certified

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amounts to each approved applicant. Interest is allowed on any

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payment made to a claimant pursuant to this part.

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     195.306 Filing date; extension of time.--

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     (1) A claim may not be paid unless the claim is filed with

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the department on or after April 1 and on or before the following

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August 31.

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     (2) In case of sickness, absence, or other disability, or

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if, in the judgment of the department, good cause exists, the

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department may extend the time for filing a claim for up to 2

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months. A request for an extension may be submitted at any time

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before August 31 of the year in question.

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     195.307 One claim per household.--Only one claimant per

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household or homestead per year is entitled to relief under this

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part.

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     195.308 Administration.--

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     (1) The department shall make available suitable forms with

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instructions for claimants. The claim must be in the form

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prescribed by the department and must be signed under oath and is

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subject to the penalties of perjury by the claimant.

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     (2) The department shall also provide a paperless option

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for filing an application.

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     (3) The department may adopt rules pursuant to ss.

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120.536(1) and 120.54 to administer this program.

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     195.309 Audit of claim.--If, following the audit of any

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claim filed under this part, the department determines the amount

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to have been incorrectly determined, the department shall

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redetermine the claim and notify the claimant of the

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redetermination and the reasons for it. The redetermination is

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reviewable in accordance with s. 195.312. If the claim has been

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paid, the amount paid in excess of that legally due is subject to

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interest at the rate determined by the Department of Financial

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Services. The department may credit a benefit payable to a

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claimant against a liability of that claimant pursuant to this

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section.

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     195.310 Denial of claim.--

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     (1) If the department determines that a claim under this

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part is excessive and was filed with fraudulent intent, the claim

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shall be disallowed in full. If the claim has been paid, the

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amount paid may be recovered by assessment, collection, and

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enforcement in the manner provided in chapter 212. A person who,

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with fraudulent intent, files or prepares an excessive claim,

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assists in the preparation or filing of an excessive claim, or

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supplies information in support of an excessive claim commits a

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felony of the third degree, punishable as provided in s. 775.082,

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s. 775.083, or s. 775.084.

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     (2) If the department determines that a claim under this

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part is excessive and was negligently prepared, the amount

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claimed in excess of that legally due plus 10 percent of the

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corrected claim shall be disallowed. If the claim has been paid,

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the amount disallowed may be recovered by assessment, collection,

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and enforcement in the manner provided in chapter 212.

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     (3) A person who has an unpaid liability arising from this

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section and the spouse of that person may not receive benefits

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under this part.

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     195.311 Disallowance of claims.--A claim shall be

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disallowed if the department finds that the claimant received

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title to his homestead primarily for the purpose of receiving

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benefits under this part.

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     195.312 Appeal.--A denial in whole or in part of relief

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claimed under this part may be appealed in accordance with

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chapter 120.

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     195.313 Protection from loss of benefits.--

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     (1) It is the intent of the Legislature that any claim paid

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under this part shall supplement any benefits paid under aid to

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the aged, blind, and disabled or any successor program. The

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Department of Health, the Department of Children and Family

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Services, and the Department of Elderly Affairs may take any

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action necessary to ensure that recipients of aid to the aged,

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blind, and disabled continue to receive as high a percentage of

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their current assistance as possible. The department shall use

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all state funds expected to be saved by a reduction in benefits

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of recipients of aid to the aged, blind, and disabled resulting

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from this part to raise the standards of aid to the aged, blind,

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and disabled at a total cost in state funds equivalent to the

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savings in state funds which would be expected as a result of

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this part. Benefits received under this part may not be included

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as income for purposes of any state or municipally administered

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public benefit program.

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     (2) These benefits do not duplicate and may not reduce the

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amount of any individual's payment under the Temporary Assistance

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for Needy Families program.

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     195.314 Readability; application; instructions.--The

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application form and instructions used by applicants for

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assistance under the Florida Residents Property Tax Program must

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have a readability score, as determined by a recognized

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instrument for measuring adult literacy levels, equivalent to no

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higher than a 6th grade reading level.

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     195.315 Outreach plan required.--The department shall

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develop and implement a plan of outreach to ensure that all

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eligible households are made aware of assistance available under

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the Florida Residents Property Tax Relief Program.

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     195.316 Coordination required.--The department shall seek

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the advice and cooperation of the Department of Health, the

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Department of Children and Family Services, the Department of

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Elderly Affairs, advocates for elderly and low-income

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individuals, and other interested agencies and organizations in

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developing the application form and instruction booklet for the

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Florida Residents Property Tax Relief Program and the outreach

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plan required by this part.

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     Section 2. The sum of $750,000,000 is appropriated from the

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General Revenue Fund to the Department of Revenue for the purpose

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of providing property tax relief benefits pursuant to this act.

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An additional sum of $500,000 is appropriated to the department

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to administer this program.

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     Section 3.  This act shall take effect July 1, 2008.