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A bill to be entitled

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An act relating to just valuation of property; amending s.

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193.011, F.S.; providing for consideration of zoning

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changes and permits in determining the highest and best

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use; revising the just valuation factor relating to the

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condition of property; including cost of removal of

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tangible personal property as a consideration in the net

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sale proceeds factor; requiring property appraisers to use

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only market rent in arriving at just value of certain

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income-producing properties; providing a definition;

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providing applicability; amending s. 193.016, F.S.;

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providing for consideration of value adjustment board

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decisions for all properties; creating s. 193.018, F.S.;

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authorizing owners of certain properties to enter into

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deed-restriction agreements with counties for certain

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purposes; requiring property appraisers to consider deed-

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restriction agreements in determining just value;

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providing for payment of back taxes plus interest if the

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deed-restriction agreement is terminated early; amending

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s. 194.011, F.S.; revising provisions relating to

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provision of evidence by petitioners and property

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appraisers; amending s. 194.013, F.S.; requiring value

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adjustment boards to waive a petition filing fee for

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taxpayers eligible for certain constitutional exemptions;

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amending s. 194.015, F.S.; revising the membership of

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value adjustment boards, appointment criteria, and quorum

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requirements; amending s. 194.032, F.S.; providing for

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criteria for rescheduling certain hearings under certain

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circumstances; amending s. 194.034, F.S.; requiring value

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adjustment boards to order refund of certain filing fees

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if a determination of a property appraiser is overturned;

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amending s. 194.192, F.S.; providing for judgments against

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property appraisers under certain circumstances; providing

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for assessment and award of attorney fees to taxpayers

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under certain circumstances; amending s. 194.301, F.S.;

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revising criteria for a presumption of correctness of ad

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valorem taxation assessments and the burden of proof in

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actions challenging such assessments; amending s. 420.507,

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F.S.; correcting a cross-reference; providing an effective

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date.

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

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     Section 1.  Effective upon this act becoming a law and

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applicable to assessments beginning January 1, 2009, section

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193.011, Florida Statutes, is amended to read:

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     193.011  Factors to consider in deriving just valuation.--

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     (1) In arriving at just valuation as required under s. 4,

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Art. VII of the State Constitution, the property appraiser shall

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take into consideration the following factors:

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     (a)(1) The present cash value of the property, which is the

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amount a willing purchaser would pay a willing seller, exclusive

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of reasonable fees and costs of purchase, in cash or the

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immediate equivalent thereof in a transaction at arm's length;

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     (b)(2) The highest and best use to which the property can

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be expected to be put in the immediate future and the present use

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of the property, taking into consideration any applicable

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judicial limitation, local or state land use regulation, or

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historic preservation ordinance, and any zoning changes and

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permits necessary to achieve the highest and best use, and

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considering any moratorium imposed by executive order, law,

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ordinance, regulation, resolution, or proclamation adopted by any

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governmental body or agency or the Governor when the moratorium

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or judicial limitation prohibits or restricts the development or

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improvement of property as otherwise authorized by applicable

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law. The applicable governmental body or agency or the Governor

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shall notify the property appraiser in writing of any executive

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order, ordinance, regulation, resolution, or proclamation it

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adopts imposing any such limitation, regulation, or moratorium;

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     (c)(3) The location of said property;

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     (d)(4) The quantity or size of said property;

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     (e)(5) The cost of said property and the present

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replacement value of any improvements thereon;

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     (f)(6) The condition of said property. When determining the

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condition of the property, the property appraiser shall consider

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physical deterioration, functional obsolescence, and external

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obsolescence;

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     (g)(7) The income from said property; and

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     (h)(8) The net proceeds of the sale of the property, as

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received by the seller, after deduction of all of the usual and

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reasonable fees and costs of the sale, including the costs and

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expenses of financing, and allowance for unconventional or

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atypical terms of financing arrangements, and including the costs

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of removal of tangible personal property. When the net proceeds

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of the sale of any property are utilized, directly or indirectly,

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in the determination of just valuation of realty of the sold

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parcel or any other parcel under the provisions of this section,

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the property appraiser, for the purposes of such determination,

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shall exclude any portion of such net proceeds attributable to

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payments for household furnishings or other items of personal

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property.

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     (2) Notwithstanding the requirement that property

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appraisers consider all of the factors enumerated in subsection

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(1) in arriving at just valuation, property appraisers shall

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consider only the market rent from income-producing property in

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the case of all residential rental property and all commercial

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property that is leased to more than one legal entity, each of

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which conducts a separate business activity on the property. For

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purposes of this subsection, the term "market rent" means the

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most likely rent that an income-producing property would command

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if offered for lease in the open market.

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     Section 2.  Section 193.016, Florida Statutes, is amended to

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read:

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     193.016  Property appraiser's assessment; effect of

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determinations by value adjustment board.--If the property

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appraiser's assessment of the same items of tangible personal

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property in the previous year was adjusted by the value

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adjustment board and the decision of the board to reduce the

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assessment was not successfully appealed by the property

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appraiser, the property appraiser shall consider the reduced

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value values determined by the value adjustment board in

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assessing the those items of tangible personal property. If the

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property appraiser adjusts upward the reduced value values

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previously determined by the value adjustment board, the property

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appraiser shall assert additional basic and underlying facts not

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properly considered by the value adjustment board as the basis

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for the increased valuation notwithstanding the prior adjustment

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by the board.

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     Section 3.  Section 193.018, Florida Statutes, is created to

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read:

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     193.018 Assessment of deed-restricted property.--

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     (1) The owner of residential rental property, multiunit

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commercial rental property, property used as a marina, waterfront

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property used exclusively for commercial fishing purposes, or

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property rented for use by mobile homes may enter into a deed-

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restriction agreement with the county to maintain the property at

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its current use for a period of at least 5 years.

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     (2) The property appraiser shall consider the deed-

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restriction agreement in determining the just value of the

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property.

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     (3) If, prior to the expiration of the deed-restriction

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agreement, the property is not used for the purposes set forth in

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the deed-restriction agreement, the deed-restriction agreement

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shall be terminated and the property owner shall pay to the

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county an amount equal to the additional taxes that would have

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been paid in prior years had the deed-restriction agreement not

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been in effect, plus 12 percent interest.

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     Section 4.  Subsection (4) of section 194.011, Florida

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Statutes, is amended to read:

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     194.011  Assessment notice; objections to assessments.--

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     (4)(a) At least 15 days before the hearing, the petitioner

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shall provide to the property appraiser a list of evidence to be

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presented at the hearing, together with copies of all

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documentation to be considered by the value adjustment board and

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a summary of evidence to be presented by witnesses.

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     (b) At least 15 No later than 7 days before the hearing, if

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the petitioner has provided the information required under

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paragraph (a), and if requested in writing by the petitioner, the

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property appraiser shall provide to the petitioner a list of

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evidence to be presented at the hearing, together with copies of

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all documentation to be considered by the value adjustment board

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and a summary of evidence to be presented by witnesses. The

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evidence list must contain the property record card if provided

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by the clerk. Failure of the property appraiser to timely comply

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with the requirements of this paragraph shall result in a

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rescheduling of the hearing.

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     Section 5.  Subsection (2) of section 194.013, Florida

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Statutes, is amended to read:

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     194.013  Filing fees for petitions; disposition; waiver.--

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     (2)  The value adjustment board shall waive the filing fee

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with respect to a petition filed by a taxpayer who is eligible to

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receive one or more of the exemptions under s. 6(c), (f), or (g),

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Art. VII of the State Constitution, regardless of whether the

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taxpayer's local government grants the additional local homestead

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exemptions. The filing fee also shall be waived for a taxpayer

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who demonstrates at the time of filing, by an appropriate

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certificate or other documentation issued by the Department of

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Children and Family Services and submitted with the petition,

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that the petitioner is then an eligible recipient of temporary

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assistance under chapter 414.

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     Section 6.  Section 194.015, Florida Statutes, is amended to

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read:

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     194.015  Value adjustment board.--

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     (1) There is hereby created a value adjustment board for

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each county, which shall consist of five members.

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     (2)(a)1. Three members shall be appointed by of the

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governing body of the county, as follows:

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     a. One member must own a homestead property within the

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county.

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     b. One member must own a business that occupies commercial

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space located within the county.

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     c. An appointee may not be a member or an employee of any

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taxing authority.

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     2. as elected from the membership of the board of said

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governing body, One of such appointees whom shall be elected

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chairperson.

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     (b) , and Two members shall be appointed by of the school

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board, as follows:

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     1. One member must own a business that occupies commercial

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space located within the school district.

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     2. One member must be eligible to receive one or more of

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the exemptions under s. 6(c), (f), or (g), Art. VII of the State

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Constitution, regardless of whether the taxpayer's local

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government grants the additional local homestead exemptions.

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     3. An appointee may not be a member or an employee of any

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taxing authority as elected from the membership of the school

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board. The members of the board may be temporarily replaced by

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other members of the respective boards on appointment by their

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respective chairpersons.

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     (3) Any three members shall constitute a quorum of the

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board, except that each quorum must include at least one member

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of said governing board and at least one member of the school

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board, and no meeting of the board shall take place unless a

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quorum is present.

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     (4) Members of the board may receive such per diem

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compensation as is allowed by law for state employees if both

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bodies elect to allow such compensation.

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     (5) The clerk of the governing body of the county shall be

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the clerk of the value adjustment board.

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     (6)(a) The office of the county attorney may be counsel to

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the board unless the county attorney represents the property

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appraiser, in which instance the board shall appoint private

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counsel who has practiced law for over 5 years and who shall

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receive such compensation as may be established by the board.

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     (b) Meetings No meeting of the board may not shall take

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place unless counsel to the board is present. However, counsel

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for the property appraiser shall not be required when the county

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attorney represents only the board at the board hearings, even

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though the county attorney may represent the property appraiser

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in other matters or at a different time.

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     (7) Two-fifths of the expenses of the board shall be borne

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by the district school board and three-fifths by the district

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county commission.

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     Section 7.  Subsection (2) of section 194.032, Florida

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Statutes, is amended to read:

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     194.032  Hearing purposes; timetable.--

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     (2)  The clerk of the governing body of the county shall

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prepare a schedule of appearances before the board based on

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petitions timely filed with him or her. The clerk shall notify

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each petitioner of the scheduled time of his or her appearance no

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less than 25 calendar days prior to the day of such scheduled

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appearance. Upon receipt of this notification, the petitioner

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shall have the right to reschedule the hearing for the failure of

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the property appraiser to comply with the requirements of s.

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194.011(4)(b). The hearing shall be rescheduled no sooner than 15

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days after the property appraiser complies with the requirements

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of s. 194.011(4)(b). The petitioner shall also have the right to

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reschedule the hearing a single time by submitting to the clerk

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of the governing body of the county a written request to

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reschedule, no less than 5 calendar days before the day of the

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originally scheduled hearing. Additional rescheduling of the

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hearing may be granted to the taxpayer upon receipt of an

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affidavit from a physician that states a medical reason as to why

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the petitioner needs to reschedule the hearing. A copy of the

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property record card containing relevant information used in

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computing the taxpayer's current assessment shall be included

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with such notice, if said card was requested by the taxpayer.

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Such request shall be made by checking an appropriate box on the

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petition form. No petitioner shall be required to wait for more

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than 2 4 hours from the scheduled time; and, if his or her

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petition is not heard in that time, the petitioner may, at his or

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her option, report to the chairperson of the meeting that he or

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she intends to leave; and, if he or she is not heard immediately,

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the petitioner's hearing shall be rescheduled for a time reserved

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exclusively for the petitioner administrative remedies will be

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deemed to be exhausted, and he or she may seek further relief as

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he or she deems appropriate. Failure on three occasions with

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respect to any single tax year to convene at the scheduled time

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of meetings of the board shall constitute grounds for removal

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from office by the Governor for neglect of duties.

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     Section 8.  Subsection (2) of section 194.034, Florida

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Statutes, is amended to read:

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     194.034  Hearing procedures; rules.--

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     (2)  In each case, except when a complaint is withdrawn by

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the petitioner or is acknowledged as correct by the property

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appraiser, the value adjustment board shall render a written

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decision. All such decisions shall be issued within 20 calendar

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days of the last day the board is in session under s. 194.032.

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The decision of the board shall contain findings of fact and

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conclusions of law and shall include reasons for upholding or

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overturning the determination of the property appraiser. If the

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determination of the property appraiser is overturned, the board

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shall order the refunding of the filing fee required by s.

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194.013. When a special magistrate has been appointed, the

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recommendations of the special magistrate shall be considered by

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the board. The clerk, upon issuance of the decisions, shall, on a

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form provided by the Department of Revenue, notify by first-class

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mail each taxpayer, the property appraiser, and the department of

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the decision of the board.

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     Section 9.  Subsection (3) is added to section 194.192,

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Florida Statutes, to read:

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     194.192 Costs; interest on unpaid taxes; penalty; attorney

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fees.--

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     (3) If the court finds that the amount owed by the taxpayer

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is less than the amount of tax paid, the court shall enter

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judgment against the appraiser for the difference and for

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interest on the difference at the rate of 12 percent per year

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from the date of payment. If the final assessment established by

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the court is lower than the value assessed by the property

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appraiser by more than 10 percent, the court shall assess and

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award reasonable attorney fees to the taxpayer.

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     Section 10.  Section 194.301, Florida Statutes, is amended

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to read:

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     194.301 Presumption of correctness and burden of proof in

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ad valorem tax assessment challenges.--In any administrative or

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judicial proceeding action in which a taxpayer challenges an ad

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valorem tax assessment of value is challenged, the burden of

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proof shall be upon the party initiating the proceeding and such

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party shall have the burden of proving by a preponderance of the

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evidence that the assessment, as established by the property

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appraiser or the Value Adjustment Board, is incorrect. The

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property appraiser's assessment shall be presumed correct, except

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that if the Value Adjustment Board has established a different

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assessment, the assessment of the Value Adjustment Board shall be

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presumed correct. This presumption of correctness is lost if the

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taxpayer shows by a preponderance of the evidence that either the

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property appraiser has failed to comply with uniform standards of

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professional appraisal practice in his or her consideration of

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consider properly the criteria in s. 193.011 or if the property

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appraiser's assessment is arbitrarily based on appraisal

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practices which are different from the appraisal practices

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generally applied by the property appraiser to comparable

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property within the same class and within the same county. If the

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presumption of correctness is lost, the taxpayer shall have the

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burden of proving by a preponderance of the evidence that the

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appraiser's assessment is in excess of just value. If the

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presumption of correctness is retained, the taxpayer shall have

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the burden of proving by clear and convincing evidence that the

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appraiser's assessment is in excess of just value. In no case

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shall the taxpayer have the burden of proving that the property

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appraiser's assessment is not supported by any reasonable

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hypothesis of a legal assessment. If the property appraiser's

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assessment is determined to be erroneous, the Value Adjustment

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Board or the court can establish the assessment if there exists

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competent, substantial evidence in the record, which cumulatively

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meets the requirements of s. 193.011. If the record lacks

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competent, substantial evidence meeting the just value criteria

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of s. 193.011, the matter shall be remanded to the property

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appraiser with appropriate directions from the Value Adjustment

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Board or the court.

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     Section 11.  Subsection (46) of section 420.507, Florida

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Statutes, is amended to read:

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     420.507  Powers of the corporation.--The corporation shall

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have all the powers necessary or convenient to carry out and

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effectuate the purposes and provisions of this part, including

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the following powers which are in addition to all other powers

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granted by other provisions of this part:

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     (46)  To require, as a condition of financing a multifamily

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rental project, that an agreement be recorded in the official

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records of the county where the real property is located, which

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requires that the project be used for housing defined as

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affordable in s. 420.0004(3) by persons defined in s.

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420.0004(8), (10), (11), and (15). Such an agreement is a state

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land use regulation that limits the highest and best use of the

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property within the meaning of s. 193.011(1)(b)(2).

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     Section 12.  This act shall take effect upon becoming a law.