Florida Senate - 2018 SB 1600 By Senator Passidomo 28-00768-18 20181600__ 1 A bill to be entitled 2 An act relating to ad valorem taxation; creating s. 3 196.2003, F.S.; providing definitions; providing for 4 certain property damaged or destroyed by a natural 5 disaster in 2017 to receive an abatement of certain 6 property taxes; specifying procedures for a property 7 owner to use in applying for an abatement of taxes; 8 requiring a property appraiser to investigate the 9 statements contained in applications that are 10 submitted; specifying procedures for a property 11 appraiser to use in notifying the tax collector when 12 an applicant is entitled to an abatement; providing 13 duties of the tax collector relating to determining 14 the amount of the disaster relief credit; requiring 15 the tax collector to reduce taxes in a specified 16 manner; requiring the tax collector to notify the 17 Department of Revenue and certain local governing 18 boards of the reduction in taxes; prohibiting 19 uninhabitable residential improvements from having any 20 value placed thereon; providing retroactive 21 applicability; providing for expiration; providing an 22 effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Section 196.2003, Florida Statutes, is created 27 to read: 28 196.2003 Abatement of taxes for residential improvements 29 damaged or destroyed by a natural disaster.— 30 (1) As used in this section, the term: 31 (a) “Damage differential” means the product arrived at by 32 multiplying the percent change in value by a ratio, the 33 numerator of which is the number of months the residential 34 improvement was rendered uninhabitable, and the denominator of 35 which is 12. 36 (b) “Disaster relief credit” means the product arrived at 37 by multiplying the damage differential by the amount of timely 38 paid taxes that were initially levied in the year the natural 39 disaster occurred. 40 (c) “Natural disaster” means: 41 1. An event for which the Governor has declared a state of 42 emergency under s. 252.36; or 43 2. A sinkhole as defined in s. 627.706. 44 (d) “Percent change in value” means the percentage 45 difference between a residential parcel’s just value as of 46 January 1, 2017, and its postdisaster just value. 47 (e) “Postdisaster just value” means the just value of a 48 residential parcel reflecting the destruction and damage caused 49 by a natural disaster. 50 (f) “Residential improvement” means a residential dwelling 51 or house, but does not include a structure that is not essential 52 to the use and occupancy of the residential dwelling or house, 53 including, but not limited to, a detached utility building, 54 detached carport, detached garage, bulkhead, fence, or swimming 55 pool. 56 (g) “Uninhabitable” means the loss of use or occupancy of a 57 residential improvement for the purpose for which it was 58 constructed, as evidenced by documentation, including, but not 59 limited to, utility bills, insurance information, contractors’ 60 statements, building permit applications, or building inspection 61 certificates of occupancy. 62 (2) If a residential improvement is rendered uninhabitable 63 due to damage or destruction to the property caused by a natural 64 disaster during the 2017 calendar year, taxes initially levied 65 in 2019 may be abated in the following manner: 66 (a) The property owner must file an application with the 67 property appraiser as soon as practicable after the damage or 68 destruction occurs, but no later than March 1, 2019. A property 69 owner who fails to file an application by March 1, 2019, waives 70 a claim for abatement of taxes from that natural disaster. 71 (b) The application must identify the residential parcel on 72 which the residential improvement was damaged or destroyed by 73 the natural disaster, the natural disaster that caused the 74 damage or destruction, the date the damage or destruction 75 occurred, and the number of months the property was 76 uninhabitable during the 2017 calendar year. 77 (c) The application must be verified under oath and is 78 subject to penalty of perjury. 79 (d) Upon receipt of the application, the property appraiser 80 shall investigate the statements contained in the application to 81 determine if the applicant is entitled to an abatement of taxes. 82 If the property appraiser determines that the applicant is 83 entitled to an abatement, the property appraiser must issue an 84 official written statement to the tax collector by April 1, 85 2019, which provides: 86 1. The number of months during the calendar year that the 87 residential improvement was uninhabitable. In calculating the 88 number of months, a period of at least 16 days is considered a 89 full month. 90 2. The just value of the residential parcel, as determined 91 by the property appraiser on January 1, 2017. 92 3. The postdisaster just value of the residential parcel, 93 as determined by the property appraiser. 94 4. The percent change in value applicable to the 95 residential parcel. 96 (3) Upon receipt of the written statement from the property 97 appraiser, the tax collector shall calculate the damage 98 differential and disaster relief credit pursuant to this 99 section. The tax collector shall reduce the taxes initially 100 levied on the residential parcel by an amount equal to the 101 disaster relief credit. If the value of the credit exceeds the 102 taxes levied in 2019, the remaining value of the credit shall be 103 applied to taxes due in subsequent years until the value of the 104 credit is exhausted. 105 (4) No later than May 1, 2019, the tax collector shall 106 notify: 107 (a) The Department of Revenue of the total reduction in 108 taxes for all properties that received an abatement pursuant to 109 this section. 110 (b) The governing board of each affected local government 111 of the reduction in that local government’s taxes which will 112 occur pursuant to this section. 113 (5) For purposes of this section, residential improvements 114 that are uninhabitable shall have no value placed thereon. 115 (6) This section applies retroactively to January 1, 2017, 116 and expires January 1, 2021. 117 Section 2. This act shall take effect upon becoming a law.