| 1 | A bill to be entitled |
| 2 | An act relating to real property; amending s. 193.155, |
| 3 | F.S.; revising the criteria under which a transfer of |
| 4 | homestead property is not considered a change of |
| 5 | ownership; providing for such provisions to apply to a |
| 6 | leasehold interest under certain circumstances; amending |
| 7 | s. 193.1554, F.S.; providing that a change in the |
| 8 | ownership of nonhomestead residential property is not |
| 9 | deemed to have occurred due to certain transactions |
| 10 | involving a publicly traded company; amending s. 193.1555, |
| 11 | F.S.; providing that a change in the ownership of |
| 12 | nonresidential property is not deemed to have occurred due |
| 13 | to certain transactions involving a publicly traded |
| 14 | company; amending s. 193.1556, F.S.; providing that a |
| 15 | recorded deed or other instrument shall serve as notice of |
| 16 | a change of ownership; requiring the Department of Revenue |
| 17 | to provide a form by which a property owner may notify any |
| 18 | property appraiser of a change of ownership or control; |
| 19 | providing an effective date. |
| 20 |
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| 21 | Be It Enacted by the Legislature of the State of Florida: |
| 22 |
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| 23 | Section 1. Subsection (3) of section 193.155, Florida |
| 24 | Statutes, is amended to read: |
| 25 | 193.155 Homestead assessments.-Homestead property shall be |
| 26 | assessed at just value as of January 1, 1994. Property receiving |
| 27 | the homestead exemption after January 1, 1994, shall be assessed |
| 28 | at just value as of January 1 of the year in which the property |
| 29 | receives the exemption unless the provisions of subsection (8) |
| 30 | apply. |
| 31 | (3)(a) Except as provided in this subsection or subsection |
| 32 | (8), property assessed under this section shall be assessed at |
| 33 | just value as of January 1 of the year following a change of |
| 34 | ownership. Thereafter, the annual changes in the assessed value |
| 35 | of the property are subject to the limitations in subsections |
| 36 | (1) and (2). For the purpose of this section, a change of |
| 37 | ownership means any sale, foreclosure, or transfer of legal |
| 38 | title or beneficial title in equity to any person, except as |
| 39 | provided in this subsection. There is no change of ownership if: |
| 40 | 1.(a) Subsequent to the change or transfer, the same |
| 41 | person is entitled to the homestead exemption as was previously |
| 42 | entitled and: |
| 43 | a.1. The transfer of title is to correct an error; |
| 44 | b.2. The transfer is between legal and equitable title or |
| 45 | equitable and equitable title and no additional person applies |
| 46 | for a homestead exemption on the property; or |
| 47 | c.3. The change or transfer is by means of an instrument |
| 48 | in which the owner is listed as both grantor and grantee of the |
| 49 | real property and one or more other individuals are additionally |
| 50 | named as grantee. However, if any individual who is additionally |
| 51 | named as a grantee applies for a homestead exemption on the |
| 52 | property, the application shall be considered a change of |
| 53 | ownership; |
| 54 | 2.(b) Legal or equitable title is changed or transferred |
| 55 | The transfer is between husband and wife, including a change or |
| 56 | transfer to a surviving spouse or a transfer due to a |
| 57 | dissolution of marriage; |
| 58 | 3.(c) The transfer occurs by operation of law to the |
| 59 | surviving spouse or minor child or children under s. 732.401 s. |
| 60 | 732.4015; or |
| 61 | 4.(d) Upon the death of the owner, the transfer is between |
| 62 | the owner and another who is a permanent resident and is legally |
| 63 | or naturally dependent upon the owner. |
| 64 | (b) For purposes of this subsection, a leasehold interest |
| 65 | that qualifies for the homestead exemption under s. 196.031 or |
| 66 | s. 196.041 shall be treated as an equitable interest in the |
| 67 | property. |
| 68 | Section 2. Subsection (5) of section 193.1554, Florida |
| 69 | Statutes, is amended to read: |
| 70 | 193.1554 Assessment of nonhomestead residential property.- |
| 71 | (5) Except as provided in this subsection, property |
| 72 | assessed under this section shall be assessed at just value as |
| 73 | of January 1 of the year following a change of ownership or |
| 74 | control. Thereafter, the annual changes in the assessed value of |
| 75 | the property are subject to the limitations in subsections (3) |
| 76 | and (4). For purpose of this section, a change of ownership or |
| 77 | control means any sale, foreclosure, transfer of legal title or |
| 78 | beneficial title in equity to any person, or the cumulative |
| 79 | transfer of control or of more than 50 percent of the ownership |
| 80 | of the legal entity that owned the property when it was most |
| 81 | recently assessed at just value, except as provided in this |
| 82 | subsection. There is no change of ownership if: |
| 83 | (a) The transfer of title is to correct an error.; |
| 84 | (b) The transfer is between legal and equitable title.; or |
| 85 | (c) The transfer is between husband and wife, including a |
| 86 | transfer to a surviving spouse or a transfer due to a |
| 87 | dissolution of marriage. |
| 88 | (d) For a publicly traded company, the cumulative transfer |
| 89 | of more than 50 percent of the ownership of the entity that owns |
| 90 | the property occurs through the buying and selling of shares of |
| 91 | the company on a public exchange. This exception does not apply |
| 92 | to a transfer made through a merger with or an acquisition by |
| 93 | another company, including an acquisition by acquiring |
| 94 | outstanding shares of the company. |
| 95 | Section 3. Subsection (5) of section 193.1555, Florida |
| 96 | Statutes, is amended to read: |
| 97 | 193.1555 Assessment of certain residential and |
| 98 | nonresidential real property.- |
| 99 | (5) Except as provided in this subsection, property |
| 100 | assessed under this section shall be assessed at just value as |
| 101 | of January 1 of the year following a qualifying improvement or |
| 102 | change of ownership or control. Thereafter, the annual changes |
| 103 | in the assessed value of the property are subject to the |
| 104 | limitations in subsections (3) and (4). For purpose of this |
| 105 | section: |
| 106 | (a) A qualifying improvement means any substantially |
| 107 | completed improvement that increases the just value of the |
| 108 | property by at least 25 percent. |
| 109 | (b) A change of ownership or control means any sale, |
| 110 | foreclosure, transfer of legal title or beneficial title in |
| 111 | equity to any person, or the cumulative transfer of control or |
| 112 | of more than 50 percent of the ownership of the legal entity |
| 113 | that owned the property when it was most recently assessed at |
| 114 | just value, except as provided in this subsection. There is no |
| 115 | change of ownership if: |
| 116 | 1. The transfer of title is to correct an error.; or |
| 117 | 2. The transfer is between legal and equitable title. |
| 118 | 3. For a publicly traded company, the cumulative transfer |
| 119 | of more than 50 percent of the ownership of the entity that owns |
| 120 | the property occurs through the buying and selling of shares of |
| 121 | the company on a public exchange. This exception does not apply |
| 122 | to a transfer made through a merger with or acquisition by |
| 123 | another company, including acquisition by acquiring outstanding |
| 124 | shares of the company. |
| 125 | Section 4. Section 193.1556, Florida Statutes, is amended |
| 126 | to read: |
| 127 | 193.1556 Notice of change of ownership or control |
| 128 | required.- |
| 129 | (1) Any person or entity that owns property assessed under |
| 130 | s. 193.1554 or s. 193.1555 must notify the property appraiser |
| 131 | promptly of any change of ownership or control as defined in ss. |
| 132 | 193.1554(5) and 193.1555(5). If the change of ownership is |
| 133 | recorded by a deed or other instrument in the public records of |
| 134 | the county where the property is located, the recorded deed or |
| 135 | other instrument shall serve as notice to the property |
| 136 | appraiser. If any property owner fails to so notify the property |
| 137 | appraiser and the property appraiser determines that for any |
| 138 | year within the prior 10 years the owner's property was not |
| 139 | entitled to assessment under s. 193.1554 or s. 193.1555, the |
| 140 | owner of the property is subject to the taxes avoided as a |
| 141 | result of such failure plus 15 percent interest per annum and a |
| 142 | penalty of 50 percent of the taxes avoided. It is the duty of |
| 143 | the property appraiser making such determination to record in |
| 144 | the public records of the county a notice of tax lien against |
| 145 | any property owned by that person or entity in the county, and |
| 146 | such property must be identified in the notice of tax lien. Such |
| 147 | property is subject to the payment of all taxes and penalties. |
| 148 | Such lien when filed shall attach to any property, identified in |
| 149 | the notice of tax lien, owned by the person or entity that |
| 150 | illegally or improperly was assessed under s. 193.1554 or s. |
| 151 | 193.1555. If such person or entity no longer owns property in |
| 152 | that county, but owns property in some other county or counties |
| 153 | in the state, it shall be the duty of the property appraiser to |
| 154 | record a notice of tax lien in such other county or counties, |
| 155 | identifying the property owned by such person or entity in such |
| 156 | county or counties, and it becomes a lien against such property |
| 157 | in such county or counties. |
| 158 | (2) The Department of Revenue shall provide a form by |
| 159 | which a property owner may provide notice to all property |
| 160 | appraisers of a change of ownership or control. The form must |
| 161 | allow the property owner to list all property that it owns or |
| 162 | controls in this state for which a change of ownership or |
| 163 | control as defined in s. 193.1554(5) or s. 193.1555(5) has |
| 164 | occurred, but has not been noticed previously to property |
| 165 | appraisers. Providing notice on this form constitutes compliance |
| 166 | with the notification requirements in this section. |
| 167 | Section 5. This act shall take effect July 1, 2010. |