HB 117

1
A bill to be entitled
2An act relating to homestead property assessments;
3amending s. 193.155, F.S.; providing additional
4limitations on annual changes in assessments of homestead
5real property; providing an effective date.
6
7Be It Enacted by the Legislature of the State of Florida:
8
9     Section 1.  Section 193.155, Florida Statutes, is amended
10to read:
11     193.155  Homestead assessments.-Homestead property shall be
12assessed at just value as of January 1, 1994. Property receiving
13the homestead exemption after January 1, 1994, shall be assessed
14at just value as of January 1 of the year in which the property
15receives the exemption unless the provisions of subsection (8)
16apply.
17     (1)  Beginning in 1995, or the year after following the
18year the property receives a homestead exemption, whichever is
19later, the property shall be reassessed annually on January 1 as
20follows:
21     (a)  If the just value of the homestead property decreases
22or remains the same from the prior year, the assessment shall
23not change.
24     (b)  If the just value of the homestead property increases
25from the prior year, the. Any change resulting from such
26reassessment shall not exceed the lower of the following:
27     1.(a)  Three percent of the assessed value of the property
28for the prior year; or
29     2.(b)  The percentage change in the Consumer Price Index
30for All Urban Consumers, U.S. City Average, all items 1967=100,
31or successor reports for the preceding calendar year as
32initially reported by the United States Department of Labor,
33Bureau of Labor Statistics.
34     (2)  If the assessed value of the property as calculated
35under subsection (1) exceeds the just value, the assessed value
36of the property shall be lowered to the just value of the
37property.
38     (3)(a)  Except as provided in this subsection or subsection
39(8), property assessed under this section shall be assessed at
40just value as of January 1 of the year following a change of
41ownership. Thereafter, the annual changes in the assessed value
42of the property are subject to the limitations in subsections
43(1) and (2). For the purpose of this section, a change of
44ownership means any sale, foreclosure, or transfer of legal
45title or beneficial title in equity to any person, except as
46provided in this subsection. There is no change of ownership if:
47     1.  Subsequent to the change or transfer, the same person
48is entitled to the homestead exemption as was previously
49entitled and:
50     a.  The transfer of title is to correct an error;
51     b.  The transfer is between legal and equitable title or
52equitable and equitable title and no additional person applies
53for a homestead exemption on the property; or
54     c.  The change or transfer is by means of an instrument in
55which the owner is listed as both grantor and grantee of the
56real property and one or more other individuals are additionally
57named as grantee. However, if any individual who is additionally
58named as a grantee applies for a homestead exemption on the
59property, the application shall be considered a change of
60ownership;
61     2.  Legal or equitable title is changed or transferred
62between husband and wife, including a change or transfer to a
63surviving spouse or a transfer due to a dissolution of marriage;
64     3.  The transfer occurs by operation of law to the
65surviving spouse or minor child or children under s. 732.401; or
66     4.  Upon the death of the owner, the transfer is between
67the owner and another who is a permanent resident and is legally
68or naturally dependent upon the owner.
69     (b)  For purposes of this subsection, a leasehold interest
70that qualifies for the homestead exemption under s. 196.031 or
71s. 196.041 shall be treated as an equitable interest in the
72property.
73     (4)(a)  Except as provided in paragraph (b), changes,
74additions, or improvements to homestead property shall be
75assessed at just value as of the first January 1 after the
76changes, additions, or improvements are substantially completed.
77     (b)  Changes, additions, or improvements that replace all
78or a portion of homestead property damaged or destroyed by
79misfortune or calamity shall not increase the homestead
80property's assessed value when the square footage of the
81homestead property as changed or improved does not exceed 110
82percent of the square footage of the homestead property before
83the damage or destruction. Additionally, the homestead
84property's assessed value shall not increase if the total square
85footage of the homestead property as changed or improved does
86not exceed 1,500 square feet. Changes, additions, or
87improvements that do not cause the total to exceed 110 percent
88of the total square footage of the homestead property before the
89damage or destruction or that do not cause the total to exceed
901,500 total square feet shall be reassessed as provided under
91subsection (1). The homestead property's assessed value shall be
92increased by the just value of that portion of the changed or
93improved homestead property which is in excess of 110 percent of
94the square footage of the homestead property before the damage
95or destruction or of that portion exceeding 1,500 square feet.
96Homestead property damaged or destroyed by misfortune or
97calamity which, after being changed or improved, has a square
98footage of less than 100 percent of the homestead property's
99total square footage before the damage or destruction shall be
100assessed pursuant to subsection (5). This paragraph applies to
101changes, additions, or improvements commenced within 3 years
102after the January 1 following the damage or destruction of the
103homestead.
104     (c)  Changes, additions, or improvements that replace all
105or a portion of real property that was damaged or destroyed by
106misfortune or calamity shall be assessed upon substantial
107completion as if such damage or destruction had not occurred and
108in accordance with paragraph (b) if the owner of such property:
109     1.  Was permanently residing on such property when the
110damage or destruction occurred;
111     2.  Was not entitled to receive homestead exemption on such
112property as of January 1 of that year; and
113     3.  Applies for and receives homestead exemption on such
114property the following year.
115     (d)  Changes, additions, or improvements include
116improvements made to common areas or other improvements made to
117property other than to the homestead property by the owner or by
118an owner association, which improvements directly benefit the
119homestead property. Such changes, additions, or improvements
120shall be assessed at just value, and the just value shall be
121apportioned among the parcels benefiting from the improvement.
122     (5)  When property is destroyed or removed and not
123replaced, the assessed value of the parcel shall be reduced by
124the assessed value attributable to the destroyed or removed
125property.
126     (6)  Only property that receives a homestead exemption is
127subject to this section. No portion of property that is assessed
128solely on the basis of character or use pursuant to s. 193.461
129or s. 193.501, or assessed pursuant to s. 193.505, is subject to
130this section. When property is assessed under s. 193.461, s.
131193.501, or s. 193.505 and contains a residence under the same
132ownership, the portion of the property consisting of the
133residence and curtilage must be assessed separately, pursuant to
134s. 193.011, for the assessment to be subject to the limitation
135in this section.
136     (7)  If a person received a homestead exemption limited to
137that person's proportionate interest in real property, the
138provisions of this section apply only to that interest.
139     (8)  Property assessed under this section shall be assessed
140at less than just value when the person who establishes a new
141homestead has received a homestead exemption as of January 1 of
142either of the 2 immediately preceding years. A person who
143establishes a new homestead as of January 1, 2008, is entitled
144to have the new homestead assessed at less than just value only
145if that person received a homestead exemption on January 1,
1462007, and only if this subsection applies retroactive to January
1471, 2008. For purposes of this subsection, a husband and wife who
148owned and both permanently resided on a previous homestead shall
149each be considered to have received the homestead exemption even
150though only the husband or the wife applied for the homestead
151exemption on the previous homestead. The assessed value of the
152newly established homestead shall be determined as provided in
153this subsection.
154     (a)  If the just value of the new homestead as of January 1
155is greater than or equal to the just value of the immediate
156prior homestead as of January 1 of the year in which the
157immediate prior homestead was abandoned, the assessed value of
158the new homestead shall be the just value of the new homestead
159minus an amount equal to the lesser of $500,000 or the
160difference between the just value and the assessed value of the
161immediate prior homestead as of January 1 of the year in which
162the prior homestead was abandoned. Thereafter, the homestead
163shall be assessed as provided in this section.
164     (b)  If the just value of the new homestead as of January 1
165is less than the just value of the immediate prior homestead as
166of January 1 of the year in which the immediate prior homestead
167was abandoned, the assessed value of the new homestead shall be
168equal to the just value of the new homestead divided by the just
169value of the immediate prior homestead and multiplied by the
170assessed value of the immediate prior homestead. However, if the
171difference between the just value of the new homestead and the
172assessed value of the new homestead calculated pursuant to this
173paragraph is greater than $500,000, the assessed value of the
174new homestead shall be increased so that the difference between
175the just value and the assessed value equals $500,000.
176Thereafter, the homestead shall be assessed as provided in this
177section.
178     (c)  If two or more persons who have each received a
179homestead exemption as of January 1 of either of the 2
180immediately preceding years and who would otherwise be eligible
181to have a new homestead property assessed under this subsection
182establish a single new homestead, the reduction from just value
183is limited to the higher of the difference between the just
184value and the assessed value of either of the prior eligible
185homesteads as of January 1 of the year in which either of the
186eligible prior homesteads was abandoned, but may not exceed
187$500,000.
188     (d)  If two or more persons abandon jointly owned and
189jointly titled property that received a homestead exemption as
190of January 1 of either of the 2 immediately preceding years, and
191one or more such persons who were entitled to and received a
192homestead exemption on the abandoned property establish a new
193homestead that would otherwise be eligible for assessment under
194this subsection, each such person establishing a new homestead
195is entitled to a reduction from just value for the new homestead
196equal to the just value of the prior homestead minus the
197assessed value of the prior homestead divided by the number of
198owners of the prior homestead who received a homestead
199exemption, unless the title of the property contains specific
200ownership shares, in which case the share of reduction from just
201value shall be proportionate to the ownership share. In
202calculating the assessment reduction to be transferred from a
203prior homestead that has an assessment reduction for living
204quarters of parents or grandparents pursuant to s. 193.703, the
205value calculated pursuant to s. 193.703(6) must first be added
206back to the assessed value of the prior homestead. The total
207reduction from just value for all new homesteads established
208under this paragraph may not exceed $500,000. There shall be no
209reduction from just value of any new homestead unless the prior
210homestead is reassessed at just value or is reassessed under
211this subsection as of January 1 after the abandonment occurs.
212     (e)  If one or more persons who previously owned a single
213homestead and each received the homestead exemption qualify for
214a new homestead where all persons who qualify for homestead
215exemption in the new homestead also qualified for homestead
216exemption in the previous homestead without an additional person
217qualifying for homestead exemption in the new homestead, the
218reduction in just value shall be calculated pursuant to
219paragraph (a) or paragraph (b), without application of paragraph
220(c) or paragraph (d).
221     (f)  For purposes of receiving an assessment reduction
222pursuant to this subsection, a person entitled to assessment
223under this section may abandon his or her homestead even though
224it remains his or her primary residence by notifying the
225property appraiser of the county where the homestead is located.
226This notification must be in writing and delivered at the same
227time as or before timely filing a new application for homestead
228exemption on the property.
229     (g)  In order to have his or her homestead property
230assessed under this subsection, a person must file a form
231provided by the department as an attachment to the application
232for homestead exemption. The form, which must include a sworn
233statement attesting to the applicant's entitlement to assessment
234under this subsection, shall be considered sufficient
235documentation for applying for assessment under this subsection.
236The department shall require by rule that the required form be
237submitted with the application for homestead exemption under the
238timeframes and processes set forth in chapter 196 to the extent
239practicable.
240     (h)1.  If the previous homestead was located in a different
241county than the new homestead, the property appraiser in the
242county where the new homestead is located must transmit a copy
243of the completed form together with a completed application for
244homestead exemption to the property appraiser in the county
245where the previous homestead was located. If the previous
246homesteads of applicants for transfer were in more than one
247county, each applicant from a different county must submit a
248separate form.
249     2.  The property appraiser in the county where the previous
250homestead was located must return information to the property
251appraiser in the county where the new homestead is located by
252April 1 or within 2 weeks after receipt of the completed
253application from that property appraiser, whichever is later. As
254part of the information returned, the property appraiser in the
255county where the previous homestead was located must provide
256sufficient information concerning the previous homestead to
257allow the property appraiser in the county where the new
258homestead is located to calculate the amount of the assessment
259limitation difference which may be transferred and must certify
260whether the previous homestead was abandoned and has been or
261will be reassessed at just value or reassessed according to the
262provisions of this subsection as of the January 1 following its
263abandonment.
264     3.  Based on the information provided on the form from the
265property appraiser in the county where the previous homestead
266was located, the property appraiser in the county where the new
267homestead is located shall calculate the amount of the
268assessment limitation difference which may be transferred and
269apply the difference to the January 1 assessment of the new
270homestead.
271     4.  All property appraisers having information-sharing
272agreements with the department are authorized to share
273confidential tax information with each other pursuant to s.
274195.084, including social security numbers and linked
275information on the forms provided pursuant to this section.
276     5.  The transfer of any limitation is not final until any
277values on the assessment roll on which the transfer is based are
278final. If such values are final after tax notice bills have been
279sent, the property appraiser shall make appropriate corrections
280and a corrected tax notice bill shall be sent. Any values that
281are under administrative or judicial review shall be noticed to
282the tribunal or court for accelerated hearing and resolution so
283that the intent of this subsection may be carried out.
284     6.  If the property appraiser in the county where the
285previous homestead was located has not provided information
286sufficient to identify the previous homestead and the assessment
287limitation difference is transferable, the taxpayer may file an
288action in circuit court in that county seeking to establish that
289the property appraiser must provide such information.
290     7.  If the information from the property appraiser in the
291county where the previous homestead was located is provided
292after the procedures in this section are exercised, the property
293appraiser in the county where the new homestead is located shall
294make appropriate corrections and a corrected tax notice and tax
295bill shall be sent.
296     8.  This subsection does not authorize the consideration or
297adjustment of the just, assessed, or taxable value of the
298previous homestead property.
299     9.  The property appraiser in the county where the new
300homestead is located shall promptly notify a taxpayer if the
301information received, or available, is insufficient to identify
302the previous homestead and the amount of the assessment
303limitation difference which is transferable. Such notification
304shall be sent on or before July 1 as specified in s. 196.151.
305     10.  The taxpayer may correspond with the property
306appraiser in the county where the previous homestead was located
307to further seek to identify the homestead and the amount of the
308assessment limitation difference which is transferable.
309     11.  If the property appraiser in the county where the
310previous homestead was located supplies sufficient information
311to the property appraiser in the county where the new homestead
312is located, such information shall be considered timely if
313provided in time for inclusion on the notice of proposed
314property taxes sent pursuant to ss. 194.011 and 200.065(1).
315     12.  If the property appraiser has not received information
316sufficient to identify the previous homestead and the amount of
317the assessment limitation difference which is transferable
318before mailing the notice of proposed property taxes, the
319taxpayer may file a petition with the value adjustment board in
320the county where the new homestead is located.
321     (i)  Any person who is qualified to have his or her
322property assessed under this subsection and who fails to file an
323application by March 1 may file an application for assessment
324under this subsection and may, pursuant to s. 194.011(3), file a
325petition with the value adjustment board requesting that an
326assessment under this subsection be granted. Such petition may
327be filed at any time during the taxable year on or before the
32825th day following the mailing of the notice by the property
329appraiser as provided in s. 194.011(1). Notwithstanding s.
330194.013, such person must pay a nonrefundable fee of $15 upon
331filing the petition. Upon reviewing the petition, if the person
332is qualified to receive the assessment under this subsection and
333demonstrates particular extenuating circumstances judged by the
334property appraiser or the value adjustment board to warrant
335granting the assessment, the property appraiser or the value
336adjustment board may grant an assessment under this subsection.
337For the 2008 assessments, all petitioners for assessment under
338this subsection shall be considered to have demonstrated
339particular extenuating circumstances.
340     (j)  Any person who is qualified to have his or her
341property assessed under this subsection and who fails to timely
342file an application for his or her new homestead in the first
343year following eligibility may file in a subsequent year. The
344assessment reduction shall be applied to assessed value in the
345year the transfer is first approved, and refunds of tax may not
346be made for previous years.
347     (k)  The property appraisers of the state shall, as soon as
348practicable after March 1 of each year and on or before July 1
349of that year, carefully consider all applications for assessment
350under this subsection which have been filed in their respective
351offices on or before March 1 of that year. If, upon
352investigation, the property appraiser finds that the applicant
353is entitled to assessment under this subsection, the property
354appraiser shall make such entries upon the tax rolls of the
355county as are necessary to allow the assessment. If, after due
356consideration, the property appraiser finds that the applicant
357is not entitled under the law to assessment under this
358subsection, the property appraiser shall immediately make out a
359notice of such disapproval, giving his or her reasons therefor,
360and a copy of the notice must be served upon the applicant by
361the property appraiser either by personal delivery or by
362registered mail to the post office address given by the
363applicant. The applicant may appeal the decision of the property
364appraiser refusing to allow the assessment under this subsection
365to the value adjustment board, and the board shall review the
366application and evidence presented to the property appraiser
367upon which the applicant based the claim and shall hear the
368applicant in person or by agent on behalf of his or her right to
369such assessment. Such appeal shall be heard by an attorney
370special magistrate if the value adjustment board uses special
371magistrates. The value adjustment board shall reverse the
372decision of the property appraiser in the cause and grant
373assessment under this subsection to the applicant if, in its
374judgment, the applicant is entitled to be granted the assessment
375or shall affirm the decision of the property appraiser. The
376action of the board is final in the cause unless the applicant,
377within 15 days following the date of refusal of the application
378by the board, files in the circuit court of the county in which
379the homestead is located a proceeding against the property
380appraiser for a declaratory judgment as is provided by chapter
38186 or other appropriate proceeding. The failure of the taxpayer
382to appear before the property appraiser or value adjustment
383board or to file any paper other than the application as
384provided in this subsection does not constitute any bar to or
385defense in the proceedings.
386     (9)  Erroneous assessments of homestead property assessed
387under this section may be corrected in the following manner:
388     (a)  If errors are made in arriving at any assessment under
389this section due to a material mistake of fact concerning an
390essential characteristic of the property, the just value and
391assessed value must be recalculated for every such year,
392including the year in which the mistake occurred.
393     (b)  If changes, additions, or improvements are not
394assessed at just value as of the first January 1 after they were
395substantially completed, the property appraiser shall determine
396the just value for such changes, additions, or improvements for
397the year they were substantially completed. Assessments for
398subsequent years shall be corrected, applying this section if
399applicable.
400     (c)  If back taxes are due pursuant to s. 193.092, the
401corrections made pursuant to this subsection shall be used to
402calculate such back taxes.
403     (10)  If the property appraiser determines that for any
404year or years within the prior 10 years a person who was not
405entitled to the homestead property assessment limitation granted
406under this section was granted the homestead property assessment
407limitation, the property appraiser making such determination
408shall record in the public records of the county a notice of tax
409lien against any property owned by that person in the county,
410and such property must be identified in the notice of tax lien.
411Such property that is situated in this state is subject to the
412unpaid taxes, plus a penalty of 50 percent of the unpaid taxes
413for each year and 15 percent interest per annum. However, when a
414person entitled to exemption pursuant to s. 196.031
415inadvertently receives the limitation pursuant to this section
416following a change of ownership, the assessment of such property
417must be corrected as provided in paragraph (9)(a), and the
418person need not pay the unpaid taxes, penalties, or interest.
419     Section 2.  This act shall take effect January 1, 2012.


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