Florida Senate - 2025                                    SB 1512
       
       
        
       By Senator Avila
       
       
       
       
       
       39-01052-25                                           20251512__
    1                        A bill to be entitled                      
    2         An act relating to a property tax exemption and
    3         assessment limitation on long-term leased property;
    4         creating s. 193.1553, F.S.; providing that property
    5         that receives a certain tax exemption shall be
    6         assessed in a specified manner; providing that
    7         changes, additions, and improvements to such
    8         properties shall be assessed in a specified manner;
    9         providing exceptions and alternative assessments;
   10         providing construction; requiring property that no
   11         longer meets eligibility requirements to be assessed
   12         in an alternative manner; amending s. 196.011, F.S.;
   13         requiring the submission of an application containing
   14         specified information before receiving a specified tax
   15         exemption; amending s. 196.034, F.S.; providing
   16         specified tax exemptions for property that meets
   17         certain eligibility requirements; providing that
   18         certain damaged or destroyed property is eligible for
   19         the exemption if specified conditions are met;
   20         providing that if such conditions are not met, such
   21         property shall be considered abandoned for a specified
   22         purpose; amending ss. 193.1554 and 194.032, F.S.;
   23         conforming provisions to changes made by the act;
   24         providing a contingent effective date.
   25          
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Section 193.1553, Florida Statutes, is created
   29  to read:
   30         193.1553Assessment of certain residential property subject
   31  to a long-term lease.—
   32         (1)Property that receives the exemption under s. 196.034
   33  shall be assessed under this section.
   34         (2)Except as provided in subsection (4), property that
   35  meets the conditions of subsection (1) shall be assessed
   36  pursuant to this section as of January 1 of any year for which
   37  the property is eligible for assessment under this section,
   38  using the prior year’s assessed value as the basis for any
   39  change in assessment. Any change resulting from such assessment
   40  shall not exceed the lower of the following:
   41         (a)Three percent of the assessed value of the property for
   42  the prior year; or
   43         (b)The percentage change in the Consumer Price Index for
   44  All Urban Consumers, U.S. City Average, all items 1967=100, or
   45  successor reports for the preceding calendar year as initially
   46  reported by the United States Department of Labor, Bureau of
   47  Labor Statistics.
   48         (3)If the assessed value of the property as calculated
   49  under subsection (2) exceeds the just value, the assessed value
   50  of the property shall be lowered to the just value of the
   51  property.
   52         (4)Property assessed under this section shall be assessed
   53  at just value as of January 1 of the year following a change of
   54  ownership. Thereafter, the annual changes in the assessed value
   55  of the property are subject to the limitations in subsections
   56  (2) and (3). For purposes of this subsection, the term “change
   57  of ownership” means any sale, foreclosure, or transfer of legal
   58  title or beneficial title in equity to any person, except if any
   59  of the provisions of s. 193.155(3)(a) apply.
   60         (5)(a)Except as provided in paragraph (b) and s. 193.624,
   61  changes, additions, or improvements to property subject to this
   62  section shall be assessed at just value as of the first January
   63  1 after the changes, additions, or improvements are
   64  substantially completed.
   65         (b)1.Changes, additions, or improvements that replace all
   66  or a portion of property assessed under this section, including
   67  ancillary improvements, that are damaged or destroyed by
   68  misfortune or calamity shall be assessed upon substantial
   69  completion as provided in this paragraph. Such assessment must
   70  be calculated using the property’s assessed value as of the
   71  January 1 immediately before the date on which the damage or
   72  destruction was sustained, subject to the assessment limitations
   73  in subsections (2) and (3), when:
   74         a.The square footage of the property as changed or
   75  improved does not exceed 110 percent of the square footage of
   76  the property before the damage or destruction; or
   77         b.The total square footage of the property as changed or
   78  improved does not exceed 1,500 square feet.
   79         2.The property’s assessed value must be increased by the
   80  just value of that portion of the changed or improved property
   81  which is in excess of 110 percent of the square footage of the
   82  property before the damage or destruction or of that portion
   83  exceeding 1,500 square feet.
   84         3.Property damaged or destroyed by misfortune or calamity
   85  which, after being changed or improved, has a square footage of
   86  less than 100 percent of the property’s total square footage
   87  before the damage or destruction shall be assessed pursuant to
   88  subsection (6).
   89         4.Changes, additions, or improvements assessed pursuant to
   90  this paragraph must be reassessed pursuant to subsection (2) in
   91  subsequent years. This paragraph applies to changes, additions,
   92  or improvements commenced within 5 years after the January 1
   93  following the damage or destruction of the property.
   94         (c)Changes, additions, or improvements include
   95  improvements made to common areas or other improvements made to
   96  property other than to the property by the owner or by an owner
   97  association, which improvements directly benefit the property.
   98  Such changes, additions, or improvements shall be assessed at
   99  just value, and the just value shall be apportioned among the
  100  parcels benefiting from the improvement.
  101         (6)When property is destroyed or removed and not replaced,
  102  the assessed value of the parcel shall be reduced by the
  103  assessed value attributable to the destroyed or removed
  104  property.
  105         (7)Only property that meets the conditions of subsection
  106  (1) is subject to this section. Any portion of property that is
  107  assessed solely on the basis of character or use pursuant to s.
  108  193.461 or s. 193.501, or assessed pursuant to s. 193.505, is
  109  not subject to this section. When property is assessed under s.
  110  193.461, s. 193.501, or s. 193.505 and contains a residence
  111  under the same ownership, the portion of the property consisting
  112  of the residence and curtilage must be assessed separately,
  113  pursuant to s. 193.011, for the assessment to be subject to the
  114  limitation in this section.
  115         (8)(a)If, after meeting the conditions of subsection (1)
  116  and receiving the benefit of the assessment limitation in
  117  subsections (2) and (3), the property does not meet the
  118  conditions of subsection (1) on January 1 of any year, the
  119  property shall instead be assessed pursuant to s. 193.1554(3)
  120  and (4) or s. 193.1555(3) and (4), as applicable, beginning with
  121  such year. Any change in assessment in the first year the
  122  property is assessed pursuant to s. 193.1554 or s. 193.1555
  123  shall use the most recent year’s assessed value under this
  124  section as the basis for adjustment, and may not revert to just
  125  value unless such property experiences a change of ownership or
  126  control as provided in s. 193.1554 or s. 193.1555.
  127         (b)If the property meets the conditions of subsection (1)
  128  in a subsequent year, this section shall apply beginning with
  129  such year, and the application of the limitation in subsection
  130  (2) shall use the most recent year’s assessed value as the basis
  131  for adjustment, even if the property was assessed in that year
  132  pursuant to s. 193.1554 or s. 193.1555.
  133         Section 2. Paragraph (b) of subsection (1) of section
  134  196.011, Florida Statutes, is amended, and subsection (14) is
  135  added to that section, to read:
  136         196.011 Annual application required for exemption.—
  137         (1)
  138         (b) The form to apply for an exemption under s. 196.031, s.
  139  196.034, s. 196.081, s. 196.091, s. 196.101, s. 196.102, s.
  140  196.173, or s. 196.202 must include a space for the applicant to
  141  list the social security number of the applicant and of the
  142  applicant’s spouse, if any. If an applicant files a timely and
  143  otherwise complete application, and omits the required social
  144  security numbers, the application is incomplete. In that event,
  145  the property appraiser shall contact the applicant, who may
  146  refile a complete application by April 1. Failure to file a
  147  complete application by that date constitutes a waiver of the
  148  exemption privilege for that year, except as provided in
  149  subsection (7) or subsection (9).
  150         (14)Notwithstanding paragraph (7)(a), an applicant who is
  151  eligible to receive an exemption under s. 196.034 must file an
  152  application each year by March 1. Such application must include
  153  the address of the property at which the owner currently
  154  receives a homestead exemption, and an executed copy of the
  155  lease for the property to be exempted under s. 196.034.
  156         Section 3. Section 196.034, Florida Statutes, is created to
  157  read:
  158         196.034Exemption of certain residential property subject
  159  to a long-term lease.—
  160         (1)(a)Property that meets the following conditions is
  161  entitled to an exemption from all taxation up to the assessed
  162  valuation of $25,000:
  163         1.The owner of the property holds the legal or equitable
  164  title to a separate parcel that receives the exemption under s.
  165  196.031 and such parcel is his or her permanent residence.
  166         2.As of January 1 of the taxable year, the property is
  167  rented by the owner to one or more persons for residential use
  168  under a written lease that has a duration of 6 months or more.
  169         (b)Every property that qualifies to receive the exemption
  170  provided in paragraph (a) is entitled to an additional exemption
  171  of up to $25,000 on the assessed valuation greater than $50,000
  172  for all levies other than school district levies.
  173         (c)Any property that does not meet the conditions of
  174  paragraph (a) for a given year may not receive the benefits
  175  provided in paragraphs (a) and (b) for such year unless
  176  subsection (2) applies, but the property may receive the
  177  benefits in paragraphs (a) and (b) in any future year for which
  178  all conditions in paragraph (a) are met.
  179         (2)For purposes of this section, when property exempted
  180  under this section is damaged or destroyed by misfortune or
  181  calamity and the property is uninhabitable on the January 1
  182  after the damage or destruction occurs, the property shall be
  183  considered to be subject to a long-term lease on January 1 and
  184  an existing exemption under this section shall continue if the
  185  property is otherwise qualified and if the property owner
  186  notifies the property appraiser that he or she intends to repair
  187  or rebuild the property and the existing or another lessee will
  188  resume residency after the property is repaired or rebuilt.
  189  Failure by the property owner to commence the repair or
  190  rebuilding of the property within 5 years after the January 1
  191  following the property’s damage or destruction constitutes
  192  abandonment of the property as exempt under this section. After
  193  the 5-year period, the expiration, lapse, nonrenewal, or
  194  revocation of a building permit issued to the property owner for
  195  such repairs or rebuilding also constitutes abandonment of the
  196  property under this section.
  197         Section 4. Subsection (1) of section 193.1554, Florida
  198  Statutes, is amended to read:
  199         193.1554 Assessment of nonhomestead residential property.—
  200         (1) As used in this section, the term “nonhomestead
  201  residential property” means residential real property that
  202  contains nine or fewer dwelling units, including vacant property
  203  zoned and platted for residential use, and that does not receive
  204  the exemption under s. 196.031 or s. 196.034.
  205         Section 5. Paragraph (a) of subsection (1) of section
  206  194.032, Florida Statutes, is amended to read:
  207         194.032 Hearing purposes; timetable.—
  208         (1)(a) The value adjustment board shall meet not earlier
  209  than 30 days and not later than 60 days after the mailing of the
  210  notice provided in s. 194.011(1); however, no board hearing
  211  shall be held before approval of all or any part of the
  212  assessment rolls by the Department of Revenue. The board shall
  213  meet for the following purposes:
  214         1. Hearing petitions relating to assessments filed pursuant
  215  to s. 194.011(3).
  216         2. Hearing complaints relating to homestead exemptions as
  217  provided for under s. 196.151.
  218         3. Hearing appeals from exemptions denied, or disputes
  219  arising from exemptions granted, upon the filing of exemption
  220  applications under s. 196.011.
  221         4. Hearing appeals concerning ad valorem tax deferrals and
  222  classifications.
  223         5. Hearing appeals from determinations that a change of
  224  ownership under s. 193.155(3), a change of ownership or control
  225  under s. 193.1553(4), s. 193.1554(5), or s. 193.1555(5), or a
  226  qualifying improvement under s. 193.1555(5) has occurred.
  227         Section 6. This act shall take effect on the effective date
  228  of the amendment to the State Constitution proposed by SJR 1510
  229  or a similar joint resolution having substantially the same
  230  specific intent and purpose, if such amendment is approved at
  231  the next general election.