Florida Senate - 2012                              CS for SB 156
       
       
       
       By the Committee on Community Affairs; and Senator Latvala
       
       
       
       
       578-00690-12                                           2012156c1
    1                        A bill to be entitled                      
    2         An act relating to the assessment of residential and
    3         nonhomestead real property; creating s. 193.624, F.S.;
    4         providing definitions; excluding the value of certain
    5         improvements from the assessed value of residential
    6         real property; specifying a limitation on the assessed
    7         value of residential real property; providing for
    8         application of the assessment limitations; providing
    9         procedural requirements and limitations; requiring a
   10         nonrefundable filing fee for a petition to the value
   11         adjustment board; amending s. 193.155, F.S.;
   12         specifying additional exceptions to the assessment of
   13         homestead property at just value; amending ss.
   14         193.1554 and 193.1555, F.S.; specifying additional
   15         exceptions to assessment of nonhomestead property at
   16         just value; defining the term “placed on the tax
   17         roll”; providing for the continuity and apportionment
   18         of assessment limitations on combined and divided
   19         parcels; specifying when divided or combined parcels
   20         shall appear as combined or divided on a tax roll;
   21         amending s. 196.012, F.S.; deleting the definition of
   22         the terms “renewable energy source device” and
   23         “device”; conforming cross-references; amending ss.
   24         196.121 and 196.1995, F.S.; conforming cross
   25         references; repealing s. 196.175, F.S., relating to
   26         the property tax exemption for renewable energy source
   27         devices; providing for application of the act;
   28         providing an effective date.
   29  
   30  Be It Enacted by the Legislature of the State of Florida:
   31  
   32         Section 1. Section 193.624, Florida Statutes, is created to
   33  read:
   34         193.624 Assessment of residential property.—
   35         (1) For the purposes of this section:
   36         (a) “Changes or improvements made for the purpose of
   37  improving a property’s resistance to wind damage” means:
   38         1. Improving the strength of the roof-deck attachment;
   39         2. Creating a secondary water barrier to prevent water
   40  intrusion;
   41         3. Installing wind-resistant shingles;
   42         4. Installing gable-end bracing;
   43         5. Reinforcing roof-to-wall connections;
   44         6. Installing storm shutters; or
   45         7. Installing opening protections.
   46         (b) “Renewable energy source device” means any of the
   47  following equipment that collects, transmits, stores, or uses
   48  solar energy, wind energy, or energy derived from geothermal
   49  deposits:
   50         1. Solar energy collectors, photovoltaic modules, and
   51  inverters.
   52         2. Storage tanks and other storage systems, excluding
   53  swimming pools used as storage tanks.
   54         3. Rockbeds.
   55         4. Thermostats and other control devices.
   56         5. Heat exchange devices.
   57         6. Pumps and fans.
   58         7. Roof ponds.
   59         8. Freestanding thermal containers.
   60         9. Pipes, ducts, refrigerant handling systems, and other
   61  equipment used to interconnect such systems; however, such
   62  equipment does not include conventional backup systems of any
   63  type.
   64         10. Windmills and wind turbines.
   65         11. Wind-driven generators.
   66         12. Power conditioning and storage devices that use wind
   67  energy to generate electricity or mechanical forms of energy.
   68         13. Pipes and other equipment used to transmit hot
   69  geothermal water to a dwelling or structure from a geothermal
   70  deposit.
   71         (2) In determining the assessed value of real property used
   72  for residential purposes, the just value of changes or
   73  improvements made for the purpose of improving a property’s
   74  resistance to wind damage and the just value of renewable energy
   75  source devices may not be added to the assessed value as limited
   76  by s. 193.155 or s. 193.1554.
   77         (3) The assessed value of real property used for
   78  residential purposes may not exceed the total just value of the
   79  property minus the combined just values of changes or
   80  improvements made for the purpose of improving a property’s
   81  resistance to wind damage and renewable energy source devices.
   82         (4) This section applies to new and existing construction
   83  used for residential purposes.
   84         (5) A parcel of residential property may not be assessed
   85  pursuant to this section unless an application is filed on or
   86  before March 1 of the first year the property owner claims the
   87  assessment reduction for renewable energy source devices or
   88  changes or improvements made for the purpose of improving the
   89  property’s resistance to wind damage. The property appraiser may
   90  require the taxpayer or the taxpayer’s representative to furnish
   91  the property appraiser such information as may reasonably be
   92  required to establish the just value of the renewable energy
   93  source devices or changes or improvements made for the purpose
   94  of improving the property’s resistance to wind damage. Failure
   95  to make timely application by March 1 constitutes a waiver of
   96  the property owner to have his or her assessment calculated
   97  under this section. However, an applicant who fails to file an
   98  application by March 1 may file a late application and may file,
   99  pursuant to s. 194.011(3), a petition with the value adjustment
  100  board requesting assessment under this section. The petition
  101  must be filed on or before the 25th day after the mailing of the
  102  notice by the property appraiser as provided in s. 194.011(1).
  103  Notwithstanding s. 194.013, the applicant must pay a
  104  nonrefundable fee of $15 upon filing the petition. Upon
  105  reviewing the petition, if the property is qualified to be
  106  assessed under this section and the property owner demonstrates
  107  particular extenuating circumstances judged by the property
  108  appraiser or the value adjustment board to warrant granting
  109  assessment under this section, the property appraiser shall
  110  calculate the assessment pursuant to this section.
  111         Section 2. Paragraph (a) of subsection (4) of section
  112  193.155, Florida Statutes, is amended to read:
  113         193.155 Homestead assessments.—Homestead property shall be
  114  assessed at just value as of January 1, 1994. Property receiving
  115  the homestead exemption after January 1, 1994, shall be assessed
  116  at just value as of January 1 of the year in which the property
  117  receives the exemption unless the provisions of subsection (8)
  118  apply.
  119         (4)(a) Except as provided in paragraph (b) and s. 193.624,
  120  changes, additions, or improvements to homestead property shall
  121  be assessed at just value as of the first January 1 after the
  122  changes, additions, or improvements are substantially completed.
  123         Section 3. Subsection (1), paragraph (a) of subsection (6),
  124  and subsection (7) of section 193.1554, Florida Statutes, are
  125  amended to read:
  126         193.1554 Assessment of nonhomestead residential property.—
  127         (1) As used in this section, the term:
  128         (a) “Nonhomestead residential property” means residential
  129  real property that contains nine or fewer dwelling units,
  130  including vacant property zoned and platted for residential use,
  131  and that does not receive the exemption under s. 196.031.
  132         (b) “Placed on the tax roll” means the year any property,
  133  as of January 1, becomes eligible for assessment under this
  134  section and becomes a nonhomestead property or a property that
  135  has been combined or divided.
  136         (6)(a) Except as provided in paragraph (b) and s. 193.624,
  137  changes, additions, or improvements to nonhomestead residential
  138  property shall be assessed at just value as of the first January
  139  1 after the changes, additions, or improvements are
  140  substantially completed.
  141         (7) Any property that is combined or divided after January
  142  1 and included as a combined or divided parcel on the tax notice
  143  shall receive any current assessment limitation on the newly
  144  combined parcel or parcels or have any current assessment
  145  limitation apportioned among the newly created parcel or
  146  parcels, and the property may not be considered combined or
  147  divided for purposes of this section until the following January
  148  1, when the parcel or parcels shall be considered placed on the
  149  tax roll as a combined or divided parcel or parcels. Any
  150  increase in the value of property assessed under this section
  151  which is attributable to combining or dividing parcels shall be
  152  assessed at just value, and the just value shall be apportioned
  153  among the parcels created.
  154         Section 4. Subsections (1) and (7) of section 193.1555,
  155  Florida Statutes, are amended to read:
  156         193.1555 Assessment of certain residential and
  157  nonresidential real property.—
  158         (1) As used in this section, the term:
  159         (a) “Nonresidential real property” means real property that
  160  is not subject to the assessment limitations set forth in s.
  161  4(a), (c), (d), or (g), Art. VII of the State Constitution.
  162         (b) “Improvement” means an addition or change to land or
  163  buildings which increases their value and is more than a repair
  164  or a replacement.
  165         (c) “Placed on the tax roll” means the year any property,
  166  as of January 1, becomes eligible for assessment under this
  167  section and becomes a nonhomestead property or a property that
  168  has been combined or divided.
  169         (7) Any property that is combined or divided after January
  170  1 and included as a combined or divided parcel on the tax notice
  171  shall receive any current assessment limitation on the newly
  172  combined parcel or parcels or have any current assessment
  173  limitation apportioned among the newly created parcel or
  174  parcels, and the property may not be considered combined or
  175  divided for purposes of this section until the following January
  176  1, when the parcel or parcels shall be considered placed on the
  177  tax roll as a combined or divided parcel or parcels. Any
  178  increase in the value of property assessed under this section
  179  which is attributable to combining or dividing parcels shall be
  180  assessed at just value, and the just value shall be apportioned
  181  among the parcels created.
  182         Section 5. Subsections (14) through (20) of section
  183  196.012, Florida Statutes, are amended to read:
  184         196.012 Definitions.—For the purpose of this chapter, the
  185  following terms are defined as follows, except where the context
  186  clearly indicates otherwise:
  187         (14) “Renewable energy source device” or “device” means any
  188  of the following equipment which, when installed in connection
  189  with a dwelling unit or other structure, collects, transmits,
  190  stores, or uses solar energy, wind energy, or energy derived
  191  from geothermal deposits:
  192         (a) Solar energy collectors.
  193         (b) Storage tanks and other storage systems, excluding
  194  swimming pools used as storage tanks.
  195         (c) Rockbeds.
  196         (d) Thermostats and other control devices.
  197         (e) Heat exchange devices.
  198         (f) Pumps and fans.
  199         (g) Roof ponds.
  200         (h) Freestanding thermal containers.
  201         (i) Pipes, ducts, refrigerant handling systems, and other
  202  equipment used to interconnect such systems; however,
  203  conventional backup systems of any type are not included in this
  204  definition.
  205         (j) Windmills.
  206         (k) Wind-driven generators.
  207         (l) Power conditioning and storage devices that use wind
  208  energy to generate electricity or mechanical forms of energy.
  209         (m) Pipes and other equipment used to transmit hot
  210  geothermal water to a dwelling or structure from a geothermal
  211  deposit.
  212         (14)(15) “New business” means:
  213         (a)1. A business or organization establishing 10 or more
  214  new jobs to employ 10 or more full-time employees in this state,
  215  paying an average wage for such new jobs that is above the
  216  average wage in the area, which principally engages in any one
  217  or more of the following operations:
  218         a. Manufactures, processes, compounds, fabricates, or
  219  produces for sale items of tangible personal property at a fixed
  220  location and which comprises an industrial or manufacturing
  221  plant; or
  222         b. Is a target industry business as defined in s.
  223  288.106(2)(t);
  224         2. A business or organization establishing 25 or more new
  225  jobs to employ 25 or more full-time employees in this state, the
  226  sales factor of which, as defined by s. 220.15(5), for the
  227  facility with respect to which it requests an economic
  228  development ad valorem tax exemption is less than 0.50 for each
  229  year the exemption is claimed; or
  230         3. An office space in this state owned and used by a
  231  business or organization newly domiciled in this state; provided
  232  such office space houses 50 or more full-time employees of such
  233  business or organization; provided that such business or
  234  organization office first begins operation on a site clearly
  235  separate from any other commercial or industrial operation owned
  236  by the same business or organization.
  237         (b) Any business or organization located in an enterprise
  238  zone or brownfield area that first begins operation on a site
  239  clearly separate from any other commercial or industrial
  240  operation owned by the same business or organization.
  241         (c) A business or organization that is situated on property
  242  annexed into a municipality and that, at the time of the
  243  annexation, is receiving an economic development ad valorem tax
  244  exemption from the county under s. 196.1995.
  245         (15)(16) “Expansion of an existing business” means:
  246         (a)1. A business or organization establishing 10 or more
  247  new jobs to employ 10 or more full-time employees in this state,
  248  paying an average wage for such new jobs that is above the
  249  average wage in the area, which principally engages in any of
  250  the operations referred to in subparagraph (14)(a)1. (15)(a)1.;
  251  or
  252         2. A business or organization establishing 25 or more new
  253  jobs to employ 25 or more full-time employees in this state, the
  254  sales factor of which, as defined by s. 220.15(5), for the
  255  facility with respect to which it requests an economic
  256  development ad valorem tax exemption is less than 0.50 for each
  257  year the exemption is claimed; provided that such business
  258  increases operations on a site located within the same county,
  259  municipality, or both colocated with a commercial or industrial
  260  operation owned by the same business or organization under
  261  common control with the same business or organization, resulting
  262  in a net increase in employment of not less than 10 percent or
  263  an increase in productive output or sales of not less than 10
  264  percent.
  265         (b) Any business or organization located in an enterprise
  266  zone or brownfield area that increases operations on a site
  267  located within the same zone or area colocated with a commercial
  268  or industrial operation owned by the same business or
  269  organization under common control with the same business or
  270  organization.
  271         (16)(17) “Permanent resident” means a person who has
  272  established a permanent residence as defined in subsection (17)
  273  (18).
  274         (17)(18) “Permanent residence” means that place where a
  275  person has his or her true, fixed, and permanent home and
  276  principal establishment to which, whenever absent, he or she has
  277  the intention of returning. A person may have only one permanent
  278  residence at a time; and, once a permanent residence is
  279  established in a foreign state or country, it is presumed to
  280  continue until the person shows that a change has occurred.
  281         (18)(19) “Enterprise zone” means an area designated as an
  282  enterprise zone pursuant to s. 290.0065. This subsection expires
  283  on the date specified in s. 290.016 for the expiration of the
  284  Florida Enterprise Zone Act.
  285         (19)(20) “Ex-servicemember” means any person who has served
  286  as a member of the United States Armed Forces on active duty or
  287  state active duty, a member of the Florida National Guard, or a
  288  member of the United States Reserve Forces.
  289         Section 6. Subsection (2) of section 196.121, Florida
  290  Statutes, is amended to read:
  291         196.121 Homestead exemptions; forms.—
  292         (2) The forms shall require the taxpayer to furnish certain
  293  information to the property appraiser for the purpose of
  294  determining that the taxpayer is a permanent resident as defined
  295  in s. 196.012(16)(17). Such information may include, but need
  296  not be limited to, the factors enumerated in s. 196.015.
  297         Section 7. Subsections (6) and (8), paragraph (d) of
  298  subsection (9), and subsection (11) of section 196.1995, Florida
  299  Statutes, are amended to read:
  300         196.1995 Economic development ad valorem tax exemption.—
  301         (6) With respect to a new business as defined by s.
  302  196.012(14)(15)(c), the municipality annexing the property on
  303  which the business is situated may grant an economic development
  304  ad valorem tax exemption under this section to that business for
  305  a period that will expire upon the expiration of the exemption
  306  granted by the county. If the county renews the exemption under
  307  subsection (7), the municipality may also extend its exemption.
  308  A municipal economic development ad valorem tax exemption
  309  granted under this subsection may not extend beyond the duration
  310  of the county exemption.
  311         (8) Any person, firm, or corporation which desires an
  312  economic development ad valorem tax exemption shall, in the year
  313  the exemption is desired to take effect, file a written
  314  application on a form prescribed by the department with the
  315  board of county commissioners or the governing authority of the
  316  municipality, or both. The application shall request the
  317  adoption of an ordinance granting the applicant an exemption
  318  pursuant to this section and shall include the following
  319  information:
  320         (a) The name and location of the new business or the
  321  expansion of an existing business;
  322         (b) A description of the improvements to real property for
  323  which an exemption is requested and the date of commencement of
  324  construction of such improvements;
  325         (c) A description of the tangible personal property for
  326  which an exemption is requested and the dates when such property
  327  was or is to be purchased;
  328         (d) Proof, to the satisfaction of the board of county
  329  commissioners or the governing authority of the municipality,
  330  that the applicant is a new business or an expansion of an
  331  existing business, as defined in s. 196.012(15) or (16);
  332         (e) The number of jobs the applicant expects to create
  333  along with the average wage of the jobs and whether the jobs are
  334  full-time or part-time;
  335         (f) The expected time schedule for job creation; and
  336         (g) Other information deemed necessary or appropriate by
  337  the department, county, or municipality.
  338         (9) Before it takes action on the application, the board of
  339  county commissioners or the governing authority of the
  340  municipality shall deliver a copy of the application to the
  341  property appraiser of the county. After careful consideration,
  342  the property appraiser shall report the following information to
  343  the board of county commissioners or the governing authority of
  344  the municipality:
  345         (d) A determination as to whether the property for which an
  346  exemption is requested is to be incorporated into a new business
  347  or the expansion of an existing business, as defined in s.
  348  196.012(15) or (16), or into neither, which determination the
  349  property appraiser shall also affix to the face of the
  350  application. Upon the request of the property appraiser, the
  351  department shall provide to him or her such information as it
  352  may have available to assist in making such determination.
  353         (11) An ordinance granting an exemption under this section
  354  shall be adopted in the same manner as any other ordinance of
  355  the county or municipality and shall include the following:
  356         (a) The name and address of the new business or expansion
  357  of an existing business to which the exemption is granted;
  358         (b) The total amount of revenue available to the county or
  359  municipality from ad valorem tax sources for the current fiscal
  360  year, the total amount of revenue lost to the county or
  361  municipality for the current fiscal year by virtue of economic
  362  development ad valorem tax exemptions currently in effect, and
  363  the estimated revenue loss to the county or municipality for the
  364  current fiscal year attributable to the exemption of the
  365  business named in the ordinance;
  366         (c) The period of time for which the exemption will remain
  367  in effect and the expiration date of the exemption, which may be
  368  any period of time up to 10 years; and
  369         (d) A finding that the business named in the ordinance
  370  meets the requirements of s. 196.012(14)(15) or (15)(16).
  371         Section 8. Section 196.175, Florida Statutes, is repealed.
  372         Section 9. This act shall take effect July 1, 2012, and
  373  applies to assessments beginning January 1, 2013.