Florida Senate - 2011                              CS for SB 434
       
       
       
       By the Committee on Community Affairs; and Senators Latvala and
       Fasano
       
       
       
       578-01852-11                                           2011434c1
    1                        A bill to be entitled                      
    2         An act relating to the assessment of residential real
    3         property; creating s. 193.624, F.S.; providing
    4         definitions; prohibiting adding the value of certain
    5         improvements to the assessed value of certain real
    6         property; providing a limitation on the assessed value
    7         of certain real property; providing application;
    8         providing procedural requirements and limitations;
    9         requiring a nonrefundable filing fee; amending ss.
   10         193.155 and 193.1554, F.S.; specifying additional
   11         exceptions to assessments of homestead and
   12         nonhomestead property at just value; amending s.
   13         196.012, F.S.; deleting a definition; conforming a
   14         cross-reference; amending ss. 196.121 and 196.1995,
   15         F.S.; conforming cross-references; repealing s.
   16         196.175, F.S., relating to the renewable energy source
   17         property tax exemption; providing for application;
   18         providing an effective date.
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Section 193.624, Florida Statutes, is created to
   23  read:
   24         193.624 Assessment of residential property.—
   25         (1) For the purposes of this section:
   26         (a) “Changes or improvements made for the purpose of
   27  improving a property’s resistance to wind damage” means:
   28         1. Improving the strength of the roof-deck attachment;
   29         2. Creating a secondary water barrier to prevent water
   30  intrusion;
   31         3. Installing wind-resistant shingles;
   32         4. Installing gable-end bracing;
   33         5. Reinforcing roof-to-wall connections;
   34         6. Installing storm shutters; or
   35         7. Installing opening protections.
   36         (b) “Renewable energy source device” means any of the
   37  following equipment that collects, transmits, stores, or uses
   38  solar energy, wind energy, or energy derived from geothermal
   39  deposits:
   40         1. Solar energy collectors, photovoltaic modules, and
   41  inverters.
   42         2. Storage tanks and other storage systems, excluding
   43  swimming pools used as storage tanks.
   44         3. Rockbeds.
   45         4. Thermostats and other control devices.
   46         5. Heat exchange devices.
   47         6. Pumps and fans.
   48         7. Roof ponds.
   49         8. Freestanding thermal containers.
   50         9. Pipes, ducts, refrigerant handling systems, and other
   51  equipment used to interconnect such systems; however, such
   52  equipment does not include conventional backup systems of any
   53  type.
   54         10. Windmills and wind turbines.
   55         11. Wind-driven generators.
   56         12. Power conditioning and storage devices that use wind
   57  energy to generate electricity or mechanical forms of energy.
   58         13. Pipes and other equipment used to transmit hot
   59  geothermal water to a dwelling or structure from a geothermal
   60  deposit.
   61         (2) In determining the assessed value of real property used
   62  for residential purposes, the just value of changes or
   63  improvements made for the purpose of improving a property’s
   64  resistance to wind damage and the just value of renewable energy
   65  source devices shall not be added to the assessed value as
   66  limited by s. 193.155 or s. 193.1554.
   67         (3) The assessed value of real property used for
   68  residential purposes shall not exceed the total just value of
   69  the property minus the combined just values of changes or
   70  improvements made for the purpose of improving a property’s
   71  resistance to wind damage and renewal energy source devices.
   72         (4) This section applies to new and existing construction
   73  used for residential purposes.
   74         (5) A parcel of residential property may not be assessed
   75  pursuant to this section unless an application is filed on or
   76  before March 1 of the first year the property owner claims the
   77  assessment reduction for renewable energy source devices or
   78  changes or improvements made for the purpose of improving the
   79  property’s resistance to wind damage. The property appraiser may
   80  require the taxpayer or the taxpayer’s representative to furnish
   81  the property appraiser such information as may reasonably be
   82  required to establish the just value of the renewable energy
   83  source devices or changes or improvements made for the purpose
   84  of improving the property’s resistance to wind damage. Failure
   85  to make timely application by March 1 shall constitute a waiver
   86  of the property owner to have his or her assessment calculated
   87  under this section. However, an applicant who fails to file an
   88  application by March 1 may file a late application and may file,
   89  pursuant to s. 194.011(3), a petition with the value adjustment
   90  board requesting assessment under this section. The petition
   91  must be filed on or before the 25th day after the mailing of the
   92  notice by the property appraiser as provided in s. 194.011(1).
   93  Notwithstanding s. 194.013, the applicant must pay a
   94  nonrefundable fee of $15 upon filing the petition. Upon
   95  reviewing the petition, if the property is qualified to be
   96  assessed under this section and the property owner demonstrates
   97  particular extenuating circumstances judged by the property
   98  appraiser or the value adjustment board to warrant granting
   99  assessment under this section, the property appraiser shall
  100  calculate the assessment in accordance with this section.
  101         Section 2. Paragraph (a) of subsection (4) of section
  102  193.155, Florida Statutes, is amended to read:
  103         193.155 Homestead assessments.—Homestead property shall be
  104  assessed at just value as of January 1, 1994. Property receiving
  105  the homestead exemption after January 1, 1994, shall be assessed
  106  at just value as of January 1 of the year in which the property
  107  receives the exemption unless the provisions of subsection (8)
  108  apply.
  109         (4)(a) Except as provided in paragraph (b) and s. 193.624,
  110  changes, additions, or improvements to homestead property shall
  111  be assessed at just value as of the first January 1 after the
  112  changes, additions, or improvements are substantially completed.
  113         Section 3. Paragraph (a) of subsection (6) of section
  114  193.1554, Florida Statutes, is amended to read:
  115         193.1554 Assessment of nonhomestead residential property.—
  116         (6)(a) Except as provided in paragraph (b) and s. 193.624,
  117  changes, additions, or improvements to nonhomestead residential
  118  property shall be assessed at just value as of the first January
  119  1 after the changes, additions, or improvements are
  120  substantially completed.
  121         Section 4. Subsections (14) through (20) of section
  122  196.012, Florida Statutes, are amended to read:
  123         196.012 Definitions.—For the purpose of this chapter, the
  124  following terms are defined as follows, except where the context
  125  clearly indicates otherwise:
  126         (14) “Renewable energy source device” or “device” means any
  127  of the following equipment which, when installed in connection
  128  with a dwelling unit or other structure, collects, transmits,
  129  stores, or uses solar energy, wind energy, or energy derived
  130  from geothermal deposits:
  131         (a) Solar energy collectors.
  132         (b) Storage tanks and other storage systems, excluding
  133  swimming pools used as storage tanks.
  134         (c) Rockbeds.
  135         (d) Thermostats and other control devices.
  136         (e) Heat exchange devices.
  137         (f) Pumps and fans.
  138         (g) Roof ponds.
  139         (h) Freestanding thermal containers.
  140         (i) Pipes, ducts, refrigerant handling systems, and other
  141  equipment used to interconnect such systems; however,
  142  conventional backup systems of any type are not included in this
  143  definition.
  144         (j) Windmills.
  145         (k) Wind-driven generators.
  146         (l) Power conditioning and storage devices that use wind
  147  energy to generate electricity or mechanical forms of energy.
  148         (m) Pipes and other equipment used to transmit hot
  149  geothermal water to a dwelling or structure from a geothermal
  150  deposit.
  151         (14)(15) “New business” means:
  152         (a)1. A business establishing 10 or more jobs to employ 10
  153  or more full-time employees in this state, which manufactures,
  154  processes, compounds, fabricates, or produces for sale items of
  155  tangible personal property at a fixed location and which
  156  comprises an industrial or manufacturing plant;
  157         2. A business establishing 25 or more jobs to employ 25 or
  158  more full-time employees in this state, the sales factor of
  159  which, as defined by s. 220.15(5), for the facility with respect
  160  to which it requests an economic development ad valorem tax
  161  exemption is less than 0.50 for each year the exemption is
  162  claimed; or
  163         3. An office space in this state owned and used by a
  164  corporation newly domiciled in this state; provided such office
  165  space houses 50 or more full-time employees of such corporation;
  166  provided that such business or office first begins operation on
  167  a site clearly separate from any other commercial or industrial
  168  operation owned by the same business.
  169         (b) Any business located in an enterprise zone or
  170  brownfield area that first begins operation on a site clearly
  171  separate from any other commercial or industrial operation owned
  172  by the same business.
  173         (c) A business that is situated on property annexed into a
  174  municipality and that, at the time of the annexation, is
  175  receiving an economic development ad valorem tax exemption from
  176  the county under s. 196.1995.
  177         (15)(16) “Expansion of an existing business” means:
  178         (a)1. A business establishing 10 or more jobs to employ 10
  179  or more full-time employees in this state, which manufactures,
  180  processes, compounds, fabricates, or produces for sale items of
  181  tangible personal property at a fixed location and which
  182  comprises an industrial or manufacturing plant; or
  183         2. A business establishing 25 or more jobs to employ 25 or
  184  more full-time employees in this state, the sales factor of
  185  which, as defined by s. 220.15(5), for the facility with respect
  186  to which it requests an economic development ad valorem tax
  187  exemption is less than 0.50 for each year the exemption is
  188  claimed; provided that such business increases operations on a
  189  site colocated with a commercial or industrial operation owned
  190  by the same business, resulting in a net increase in employment
  191  of not less than 10 percent or an increase in productive output
  192  of not less than 10 percent.
  193         (b) Any business located in an enterprise zone or
  194  brownfield area that increases operations on a site colocated
  195  with a commercial or industrial operation owned by the same
  196  business.
  197         (16)(17) “Permanent resident” means a person who has
  198  established a permanent residence as defined in subsection (17)
  199  (18).
  200         (17)(18) “Permanent residence” means that place where a
  201  person has his or her true, fixed, and permanent home and
  202  principal establishment to which, whenever absent, he or she has
  203  the intention of returning. A person may have only one permanent
  204  residence at a time; and, once a permanent residence is
  205  established in a foreign state or country, it is presumed to
  206  continue until the person shows that a change has occurred.
  207         (18)(19) “Enterprise zone” means an area designated as an
  208  enterprise zone pursuant to s. 290.0065. This subsection expires
  209  on the date specified in s. 290.016 for the expiration of the
  210  Florida Enterprise Zone Act.
  211         (19)(20) “Ex-servicemember” means any person who has served
  212  as a member of the United States Armed Forces on active duty or
  213  state active duty, a member of the Florida National Guard, or a
  214  member of the United States Reserve Forces.
  215         Section 5. Subsection (2) of section 196.121, Florida
  216  Statutes, is amended to read:
  217         196.121 Homestead exemptions; forms.—
  218         (2) The forms shall require the taxpayer to furnish certain
  219  information to the property appraiser for the purpose of
  220  determining that the taxpayer is a permanent resident as defined
  221  in s. 196.012(16)(17). Such information may include, but need
  222  not be limited to, the factors enumerated in s. 196.015.
  223         Section 6. Subsection (6), paragraph (d) of subsection (8),
  224  paragraph (d) of subsection (9), and paragraph (d) of subsection
  225  (10) of section 196.1995, Florida Statutes, are amended to read:
  226         196.1995 Economic development ad valorem tax exemption.—
  227         (6) With respect to a new business as defined by s.
  228  196.012(14)(15)(c), the municipality annexing the property on
  229  which the business is situated may grant an economic development
  230  ad valorem tax exemption under this section to that business for
  231  a period that will expire upon the expiration of the exemption
  232  granted by the county. If the county renews the exemption under
  233  subsection (7), the municipality may also extend its exemption.
  234  A municipal economic development ad valorem tax exemption
  235  granted under this subsection may not extend beyond the duration
  236  of the county exemption.
  237         (8) Any person, firm, or corporation which desires an
  238  economic development ad valorem tax exemption shall, in the year
  239  the exemption is desired to take effect, file a written
  240  application on a form prescribed by the department with the
  241  board of county commissioners or the governing authority of the
  242  municipality, or both. The application shall request the
  243  adoption of an ordinance granting the applicant an exemption
  244  pursuant to this section and shall include the following
  245  information:
  246         (d) Proof, to the satisfaction of the board of county
  247  commissioners or the governing authority of the municipality,
  248  that the applicant is a new business or an expansion of an
  249  existing business, as defined in s. 196.012(15) or (16); and
  250         (9) Before it takes action on the application, the board of
  251  county commissioners or the governing authority of the
  252  municipality shall deliver a copy of the application to the
  253  property appraiser of the county. After careful consideration,
  254  the property appraiser shall report the following information to
  255  the board of county commissioners or the governing authority of
  256  the municipality:
  257         (d) A determination as to whether the property for which an
  258  exemption is requested is to be incorporated into a new business
  259  or the expansion of an existing business, as defined in s.
  260  196.012(15) or (16), or into neither, which determination the
  261  property appraiser shall also affix to the face of the
  262  application. Upon the request of the property appraiser, the
  263  department shall provide to him or her such information as it
  264  may have available to assist in making such determination.
  265         (10) An ordinance granting an exemption under this section
  266  shall be adopted in the same manner as any other ordinance of
  267  the county or municipality and shall include the following:
  268         (d) A finding that the business named in the ordinance
  269  meets the requirements of s. 196.012(14)(15) or (15) (16).
  270         Section 7. Section 196.175, Florida Statutes, is repealed.
  271         Section 8. This act shall take effect July 1, 2011, and
  272  applies to assessments beginning January 1, 2012.