Bill Text: FL S0474 | 2023 | Regular Session | Comm Sub


Bill Title: Property Tax Administration

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Failed) 2023-05-05 - Died in Appropriations [S0474 Detail]

Download: Florida-2023-S0474-Comm_Sub.html
       Florida Senate - 2023                              CS for SB 474
       
       
        
       By the Committee on Community Affairs; and Senators Garcia and
       Gruters
       
       
       
       
       578-02923-23                                           2023474c1
    1                        A bill to be entitled                      
    2         An act relating to property tax administration;
    3         amending s. 193.122, F.S.; revising the timeframe
    4         under which certain appeals of value adjustment board
    5         decisions must be filed by a property appraiser under
    6         certain circumstances; amending s. 193.155, F.S.;
    7         specifying when erroneous assessments of homestead
    8         property must be corrected; deleting a calculation of
    9         back taxes; specifying that certain erroneous property
   10         assessments may, rather than must, be corrected in a
   11         specified manner; amending ss. 193.1554 and 193.1555,
   12         F.S.; adding circumstances under which there is no
   13         change of ownership for purposes of an assessment
   14         limitation on nonhomestead residential property or
   15         certain nonresidential real property, respectively;
   16         specifying when erroneous property assessments must be
   17         corrected; deleting a calculation of back taxes;
   18         providing that a taxpayer receiving an erroneously
   19         granted property assessment limitation need not pay
   20         the unpaid taxes, penalties, or interest; providing
   21         construction and retroactive applicability; amending
   22         s. 194.032, F.S.; adding appeals for which a value
   23         adjustment board must meet to hear; amending s.
   24         194.036, F.S.; revising, for counties above a
   25         specified population threshold, a condition under
   26         which a property appraiser may appeal a decision of
   27         the value adjustment board; amending s. 196.011, F.S.;
   28         providing that a taxpayer need not pay unpaid taxes,
   29         penalties, or interest for erroneously granted
   30         exemptions for which annual application or statement
   31         requirements are waived; providing an effective date.
   32          
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Subsection (4) of section 193.122, Florida
   36  Statutes, is amended to read:
   37         193.122 Certificates of value adjustment board and property
   38  appraiser; extensions on the assessment rolls.—
   39         (4) An appeal of a value adjustment board decision pursuant
   40  to s. 194.036(1)(a) or (b) by the property appraiser shall be
   41  filed prior to extension of the tax roll under subsection (2)
   42  or, if the roll was extended pursuant to s. 197.323, within 30
   43  days after the date a decision is rendered concerning such
   44  assessment by the value adjustment board of recertification
   45  under subsection (3). The roll may be certified by the property
   46  appraiser prior to an appeal being filed pursuant to s.
   47  194.036(1)(c), but such appeal shall be filed within 20 days
   48  after receipt of the decision of the department relative to
   49  further judicial proceedings.
   50         Section 2. Subsections (9) and (10) of section 193.155,
   51  Florida Statutes, are amended to read:
   52         193.155 Homestead assessments.—Homestead property shall be
   53  assessed at just value as of January 1, 1994. Property receiving
   54  the homestead exemption after January 1, 1994, shall be assessed
   55  at just value as of January 1 of the year in which the property
   56  receives the exemption unless the provisions of subsection (8)
   57  apply.
   58         (9) Erroneous assessments of homestead property assessed
   59  under this section may be corrected in the following manner:
   60         (a) If errors are made in arriving at any assessment under
   61  this section due to a material mistake of fact concerning an
   62  essential characteristic of the property, the just value and
   63  assessed value must be recalculated beginning in the year such
   64  mistake is discovered for every such year, including the year in
   65  which the mistake occurred.
   66         (b) If changes, additions, or improvements are not assessed
   67  at just value as of the first January 1 after they were
   68  substantially completed, the property appraiser shall determine
   69  the just value for such changes, additions, or improvements for
   70  the year they were substantially completed. Assessments for
   71  subsequent years, beginning in the year such mistake is
   72  discovered, shall be corrected, applying this section if
   73  applicable.
   74         (c) If back taxes are due pursuant to s. 193.092, the
   75  corrections made pursuant to this subsection shall be used to
   76  calculate such back taxes.
   77         (10) If the property appraiser determines that for any year
   78  or years within the prior 10 years a person who was not entitled
   79  to the homestead property assessment limitation granted under
   80  this section was granted the homestead property assessment
   81  limitation, the property appraiser making such determination
   82  shall serve upon the owner a notice of intent to record in the
   83  public records of the county a notice of tax lien against any
   84  property owned by that person in the county, and such property
   85  must be identified in the notice of tax lien. Such property that
   86  is situated in this state is subject to the unpaid taxes, plus a
   87  penalty of 50 percent of the unpaid taxes for each year and 15
   88  percent interest per annum. However, when a person entitled to
   89  exemption pursuant to s. 196.031 inadvertently receives the
   90  limitation pursuant to this section following a change of
   91  ownership, or if the property appraiser improperly grants the
   92  property assessment limitation as a result of an error,
   93  including, but not limited to, a clerical mistake or an
   94  omission, the assessment of such property may must be corrected
   95  as provided in paragraph (9)(a), and the person need not pay the
   96  unpaid taxes, penalties, or interest. Before a lien may be
   97  filed, the person or entity so notified must be given 30 days to
   98  pay the taxes and any applicable penalties and interest. If the
   99  property appraiser improperly grants the property assessment
  100  limitation as a result of a clerical mistake or an omission, the
  101  person or entity improperly receiving the property assessment
  102  limitation may not be assessed a penalty or interest.
  103         Section 3. Present paragraph (d) of subsection (5) of
  104  section 193.1554, Florida Statutes, is redesignated as paragraph
  105  (e), a new paragraph (d) is added to that subsection, and
  106  subsections (9) and (10) of that section are amended, to read:
  107         193.1554 Assessment of nonhomestead residential property.—
  108         (5) Except as provided in this subsection, property
  109  assessed under this section shall be assessed at just value as
  110  of January 1 of the year following a change of ownership or
  111  control. Thereafter, the annual changes in the assessed value of
  112  the property are subject to the limitations in subsections (3)
  113  and (4). For purpose of this section, a change of ownership or
  114  control means any sale, foreclosure, transfer of legal title or
  115  beneficial title in equity to any person, or the cumulative
  116  transfer of control or of more than 50 percent of the ownership
  117  of the legal entity that owned the property when it was most
  118  recently assessed at just value, except as provided in this
  119  subsection. There is no change of ownership if:
  120         (d) The transfer is between an individual or individuals
  121  and an entity, or between legal entities, which results solely
  122  in a change in the method of holding title to the real property
  123  and there is no cumulative transfer of control of more than 50
  124  percent of the ownership.
  125         (9) Erroneous assessments of nonhomestead residential
  126  property assessed under this section may be corrected in the
  127  following manner:
  128         (a) If errors are made in arriving at any assessment under
  129  this section due to a material mistake of fact concerning an
  130  essential characteristic of the property, the just value and
  131  assessed value must be recalculated beginning in the year such
  132  mistake is discovered for every such year, including the year in
  133  which the mistake occurred.
  134         (b) If changes, additions, or improvements are not assessed
  135  at just value as of the first January 1 after they were
  136  substantially completed, the property appraiser shall determine
  137  the just value for such changes, additions, or improvements for
  138  the year they were substantially completed. Assessments for
  139  subsequent years, beginning in the year such mistake is
  140  discovered, shall be corrected, applying this section if
  141  applicable.
  142         (c) If back taxes are due pursuant to s. 193.092, the
  143  corrections made pursuant to this subsection shall be used to
  144  calculate such back taxes.
  145         (10) If the property appraiser determines that for any year
  146  or years within the prior 10 years a person or entity who was
  147  not entitled to the property assessment limitation granted under
  148  this section was granted the property assessment limitation, the
  149  property appraiser making such determination shall serve upon
  150  the owner a notice of intent to record in the public records of
  151  the county a notice of tax lien against any property owned by
  152  that person or entity in the county, and such property must be
  153  identified in the notice of tax lien. Such property that is
  154  situated in this state is subject to the unpaid taxes, plus a
  155  penalty of 50 percent of the unpaid taxes for each year and 15
  156  percent interest per annum. However, if the assessment
  157  limitation is granted as a result of an error by the property
  158  appraiser, including, but not limited to, a clerical mistake or
  159  an omission, the taxpayer need not pay the unpaid taxes,
  160  penalties, or interest. Before a lien may be filed, the person
  161  or entity so notified must be given 30 days to pay the taxes and
  162  any applicable penalties and interest. If the property appraiser
  163  improperly grants the property assessment limitation as a result
  164  of a clerical mistake or an omission, the person or entity
  165  improperly receiving the property assessment limitation may not
  166  be assessed a penalty or interest.
  167         Section 4. Paragraph (b) of subsection (5) and subsections
  168  (9) and (10) of section 193.1555, Florida Statutes, are amended
  169  to read:
  170         193.1555 Assessment of certain residential and
  171  nonresidential real property.—
  172         (5) Except as provided in this subsection, property
  173  assessed under this section shall be assessed at just value as
  174  of January 1 of the year following a qualifying improvement or
  175  change of ownership or control. Thereafter, the annual changes
  176  in the assessed value of the property are subject to the
  177  limitations in subsections (3) and (4). For purpose of this
  178  section:
  179         (b) A change of ownership or control means any sale,
  180  foreclosure, transfer of legal title or beneficial title in
  181  equity to any person, or the cumulative transfer of control or
  182  of more than 50 percent of the ownership of the legal entity
  183  that owned the property when it was most recently assessed at
  184  just value, except as provided in this subsection. There is no
  185  change of ownership if:
  186         1. The transfer of title is to correct an error.
  187         2. The transfer is between legal and equitable title.
  188         3. The transfer is between an individual or individuals and
  189  an entity, or between legal entities, which results solely in a
  190  change in the method of holding title to the real property and
  191  there is no cumulative transfer of control of more than 50
  192  percent of the ownership.
  193         4. For a publicly traded company, the cumulative transfer
  194  of more than 50 percent of the ownership of the entity that owns
  195  the property occurs through the buying and selling of shares of
  196  the company on a public exchange. This exception does not apply
  197  to a transfer made through a merger with or acquisition by
  198  another company, including acquisition by acquiring outstanding
  199  shares of the company.
  200         (9) Erroneous assessments of nonresidential real property
  201  assessed under this section may be corrected in the following
  202  manner:
  203         (a) If errors are made in arriving at any assessment under
  204  this section due to a material mistake of fact concerning an
  205  essential characteristic of the property, the just value and
  206  assessed value must be recalculated beginning in the year such
  207  mistake is discovered for every such year, including the year in
  208  which the mistake occurred.
  209         (b) If changes, additions, or improvements are not assessed
  210  at just value as of the first January 1 after they were
  211  substantially completed, the property appraiser shall determine
  212  the just value for such changes, additions, or improvements for
  213  the year they were substantially completed. Assessments for
  214  subsequent years, beginning in the year such mistake is
  215  discovered, shall be corrected, applying this section if
  216  applicable.
  217         (c) If back taxes are due pursuant to s. 193.092, the
  218  corrections made pursuant to this subsection shall be used to
  219  calculate such back taxes.
  220         (10) If the property appraiser determines that for any year
  221  or years within the prior 10 years a person or entity who was
  222  not entitled to the property assessment limitation granted under
  223  this section was granted the property assessment limitation, the
  224  property appraiser making such determination shall serve upon
  225  the owner a notice of intent to record in the public records of
  226  the county a notice of tax lien against any property owned by
  227  that person or entity in the county, and such property must be
  228  identified in the notice of tax lien. Such property that is
  229  situated in this state is subject to the unpaid taxes, plus a
  230  penalty of 50 percent of the unpaid taxes for each year and 15
  231  percent interest per annum. However, if the assessment
  232  limitation is granted as a result of an error by the property
  233  appraiser, including, but not limited to, a clerical mistake or
  234  an omission, the taxpayer need not pay the unpaid taxes,
  235  penalties, or interest. Before a lien may be filed, the person
  236  or entity so notified must be given 30 days to pay the taxes and
  237  any applicable penalties and interest. If the property appraiser
  238  improperly grants the property assessment limitation as a result
  239  of a clerical mistake or an omission, the person or entity
  240  improperly receiving the property assessment limitation may not
  241  be assessed a penalty or interest.
  242         Section 5. The amendments made by this act to ss.
  243  193.1554(5) and 193.1555(5)(b), Florida Statutes, are intended
  244  to be remedial and clarifying in nature and apply retroactively,
  245  but do not provide a basis for an assessment of any tax or
  246  create a right to a refund of any tax paid before the effective
  247  date of this act.
  248         Section 6. Paragraph (a) of subsection (1) of section
  249  194.032, Florida Statutes, is amended to read:
  250         194.032 Hearing purposes; timetable.—
  251         (1)(a) The value adjustment board shall meet not earlier
  252  than 30 days and not later than 60 days after the mailing of the
  253  notice provided in s. 194.011(1); however, no board hearing
  254  shall be held before approval of all or any part of the
  255  assessment rolls by the Department of Revenue. The board shall
  256  meet for the following purposes:
  257         1. Hearing petitions relating to assessments filed pursuant
  258  to s. 194.011(3).
  259         2. Hearing complaints relating to homestead exemptions as
  260  provided for under s. 196.151.
  261         3. Hearing appeals from exemptions denied, or disputes
  262  arising from exemptions granted, upon the filing of exemption
  263  applications under s. 196.011.
  264         4. Hearing appeals concerning ad valorem tax deferrals and
  265  classifications.
  266         5. Hearing appeals from determinations that a change of
  267  ownership under s. 193.155(3), a change of ownership or control
  268  under s. 193.1554(5) or s. 193.1555(5), or a qualifying
  269  improvement under s. 193.1555(5) has occurred.
  270         6.Hearing appeals concerning the validity or amount, or
  271  both, of assessments created under s. 193.092.
  272         7.Hearing appeals on the issue of whether a tangible
  273  personal property return as required under s. 193.052 was timely
  274  filed so as to allow such assessment to be contested at the
  275  value adjustment board, and to waive penalties imposed under s.
  276  193.072.
  277         Section 7. Subsection (1) of section 194.036, Florida
  278  Statutes, is amended to read:
  279         194.036 Appeals.—Appeals of the decisions of the board
  280  shall be as follows:
  281         (1) If the property appraiser disagrees with the decision
  282  of the board, he or she may appeal the decision to the circuit
  283  court if one or more of the following criteria are met:
  284         (a) The property appraiser determines and affirmatively
  285  asserts in any legal proceeding that there is a specific
  286  constitutional or statutory violation, or a specific violation
  287  of administrative rules, in the decision of the board, except
  288  that nothing herein shall authorize the property appraiser to
  289  institute any suit to challenge the validity of any portion of
  290  the constitution or of any duly enacted legislative act of this
  291  state.;
  292         (b)1.In counties with a population of 75,000 or less,
  293  there is a variance from the property appraiser’s assessed value
  294  in excess of the following: 15 percent variance from any
  295  assessment of $50,000 or less; 10 percent variance from any
  296  assessment in excess of $50,000 but not in excess of $500,000;
  297  7.5 percent variance from any assessment in excess of $500,000
  298  but not in excess of $1 million; or 5 percent variance from any
  299  assessment in excess of $1 million.
  300         2.In counties with a population of more than 75,000, there
  301  is a variance from the property appraiser’s assessed value in
  302  excess of the following: 30 percent variance from any assessment
  303  of $50,000 or less; 20 percent variance from any assessment in
  304  excess of $50,000 but not in excess of $500,000; 17.5 percent
  305  variance from any assessment in excess of $500,000 but not in
  306  excess of $1 million; or 15 percent variance from any assessment
  307  in excess of $1 million.; or
  308         (c) There is an assertion by the property appraiser to the
  309  Department of Revenue that there exists a consistent and
  310  continuous violation of the intent of the law or administrative
  311  rules by the value adjustment board in its decisions. The
  312  property appraiser shall notify the department of those portions
  313  of the tax roll for which the assertion is made. The department
  314  shall thereupon notify the clerk of the board who shall, within
  315  15 days of the notification by the department, send the written
  316  decisions of the board to the department. Within 30 days of the
  317  receipt of the decisions by the department, the department shall
  318  notify the property appraiser of its decision relative to
  319  further judicial proceedings. If the department finds upon
  320  investigation that a consistent and continuous violation of the
  321  intent of the law or administrative rules by the board has
  322  occurred, it shall so inform the property appraiser, who may
  323  thereupon bring suit in circuit court against the value
  324  adjustment board for injunctive relief to prohibit continuation
  325  of the violation of the law or administrative rules and for a
  326  mandatory injunction to restore the tax roll to its just value
  327  in such amount as determined by judicial proceeding. However,
  328  when a final judicial decision is rendered as a result of an
  329  appeal filed pursuant to this paragraph which alters or changes
  330  an assessment of a parcel of property of any taxpayer not a
  331  party to such procedure, such taxpayer shall have 60 days from
  332  the date of the final judicial decision to file an action to
  333  contest such altered or changed assessment pursuant to s.
  334  194.171(1), and the provisions of s. 194.171(2) shall not bar
  335  such action.
  336         Section 8. Paragraph (a) of subsection (9) of section
  337  196.011, Florida Statutes, is amended to read:
  338         196.011 Annual application required for exemption.—
  339         (9)(a) A county may, at the request of the property
  340  appraiser and by a majority vote of its governing body, waive
  341  the requirement that an annual application or statement be made
  342  for exemption of property within the county after an initial
  343  application is made and the exemption granted. The waiver under
  344  this subsection of the annual application or statement
  345  requirement applies to all exemptions under this chapter except
  346  the exemption under s. 196.1995. Notwithstanding such waiver,
  347  refiling of an application or statement shall be required when
  348  any property granted an exemption is sold or otherwise disposed
  349  of, when the ownership changes in any manner, when the applicant
  350  for homestead exemption ceases to use the property as his or her
  351  homestead, or when the status of the owner changes so as to
  352  change the exempt status of the property. In its deliberations
  353  on whether to waive the annual application or statement
  354  requirement, the governing body shall consider the possibility
  355  of fraudulent exemption claims which may occur due to the waiver
  356  of the annual application requirement. The owner of any property
  357  granted an exemption who is not required to file an annual
  358  application or statement shall notify the property appraiser
  359  promptly whenever the use of the property or the status or
  360  condition of the owner changes so as to change the exempt status
  361  of the property. If any property owner fails to so notify the
  362  property appraiser and the property appraiser determines that
  363  for any year within the prior 10 years the owner was not
  364  entitled to receive such exemption, the owner of the property is
  365  subject to the taxes exempted as a result of such failure plus
  366  15 percent interest per annum and a penalty of 50 percent of the
  367  taxes exempted. However, if such exemption is granted as a
  368  result of an error by the property appraiser, including, but not
  369  limited to, a clerical mistake or an omission, the taxpayer need
  370  not pay the unpaid taxes, penalties, or interest. Except for
  371  homestead exemptions controlled by s. 196.161, the property
  372  appraiser making such determination shall record in the public
  373  records of the county a notice of tax lien against any property
  374  owned by that person or entity in the county, and such property
  375  must be identified in the notice of tax lien. Such property is
  376  subject to the payment of all taxes and penalties. Such lien
  377  when filed shall attach to any property, identified in the
  378  notice of tax lien, owned by the person who illegally or
  379  improperly received the exemption. If such person no longer owns
  380  property in that county but owns property in some other county
  381  or counties in the state, the property appraiser shall record a
  382  notice of tax lien in such other county or counties, identifying
  383  the property owned by such person or entity in such county or
  384  counties, and it shall become a lien against such property in
  385  such county or counties.
  386         Section 9. This act shall take effect January 1, 2024.

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