Bill Text: FL S0652 | 2024 | Regular Session | Introduced


Bill Title: Homestead Assessments

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2024-03-08 - Died in Community Affairs [S0652 Detail]

Download: Florida-2024-S0652-Introduced.html
       Florida Senate - 2024                                     SB 652
       
       
        
       By Senator Garcia
       
       
       
       
       
       36-00985-24                                            2024652__
    1                        A bill to be entitled                      
    2         An act relating to homestead assessments; amending s.
    3         193.155, F.S.; revising the manner for assessing
    4         property that receives a homestead exemption;
    5         providing a contingent effective date.
    6          
    7  Be It Enacted by the Legislature of the State of Florida:
    8  
    9         Section 1. Section 193.155, Florida Statutes, is amended to
   10  read:
   11         193.155 Homestead assessments.—Homestead property shall be
   12  assessed at just value as of January 1, 1994. Property receiving
   13  the homestead exemption after January 1, 1994, shall be assessed
   14  under the provisions of s. 193.1554 or s. 193.1555 at just value
   15  as of January 1 of the year in which the property receives the
   16  exemption unless the provisions of subsection (8) apply.
   17         (1) Beginning in 1995, or the year following the year the
   18  property receives homestead exemption, whichever is later, the
   19  property shall be reassessed annually on January 1. Any change
   20  resulting from such reassessment shall not exceed the lower of
   21  the following:
   22         (a) Three percent of the assessed value of the property for
   23  the prior year; or
   24         (b) The percentage change in the Consumer Price Index for
   25  All Urban Consumers, U.S. City Average, all items 1967=100, or
   26  successor reports for the preceding calendar year as initially
   27  reported by the United States Department of Labor, Bureau of
   28  Labor Statistics.
   29         (2) If the assessed value of the property as calculated
   30  under subsection (1) exceeds the just value, the assessed value
   31  of the property shall be lowered to the just value of the
   32  property.
   33         (3)(a) Except as provided in this subsection or subsection
   34  (8), property assessed under this section shall be assessed at
   35  just value as of January 1 of the year following a change of
   36  ownership. Thereafter, the annual changes in the assessed value
   37  of the property are subject to the limitations in subsections
   38  (1) and (2). For the purpose of this section, a change of
   39  ownership means any sale, foreclosure, or transfer of legal
   40  title or beneficial title in equity to any person, except if any
   41  of the following apply:
   42         1. Subsequent to the change or transfer, the same person is
   43  entitled to the homestead exemption as was previously entitled
   44  and:
   45         a. The transfer of title is to correct an error;
   46         b. The transfer is between legal and equitable title or
   47  equitable and equitable title and no additional person applies
   48  for a homestead exemption on the property;
   49         c. The change or transfer is by means of an instrument in
   50  which the owner is listed as both grantor and grantee of the
   51  real property and one or more other individuals are additionally
   52  named as grantee. However, if any individual who is additionally
   53  named as a grantee applies for a homestead exemption on the
   54  property, the application is considered a change of ownership;
   55         d. The change or transfer is by means of an instrument in
   56  which the owner entitled to the homestead exemption is listed as
   57  both grantor and grantee of the real property and one or more
   58  other individuals, all of whom held title as joint tenants with
   59  rights of survivorship with the owner, are named only as
   60  grantors and are removed from the title; or
   61         e. The person is a lessee entitled to the homestead
   62  exemption under s. 196.041(1);
   63         2. Legal or equitable title is changed or transferred
   64  between husband and wife, including a change or transfer to a
   65  surviving spouse or a transfer due to a dissolution of marriage;
   66         3. The transfer occurs by operation of law to the surviving
   67  spouse or minor child or children under s. 732.401;
   68         4. Upon the death of the owner, the transfer is between the
   69  owner and another who is a permanent resident and who is legally
   70  or naturally dependent upon the owner; or
   71         5. The transfer occurs with respect to a property where all
   72  of the following apply:
   73         a. Multiple owners hold title as joint tenants with rights
   74  of survivorship;
   75         b. One or more owners were entitled to and received the
   76  homestead exemption on the property;
   77         c. The death of one or more owners occurs; and
   78         d. Subsequent to the transfer, the surviving owner or
   79  owners previously entitled to and receiving the homestead
   80  exemption continue to be entitled to and receive the homestead
   81  exemption.
   82         (b) For purposes of this subsection, a leasehold interest
   83  that qualifies for the homestead exemption under s. 196.031 or
   84  s. 196.041 shall be treated as an equitable interest in the
   85  property.
   86         (4)(a) Except as provided in paragraph (b) and s. 193.624,
   87  changes, additions, or improvements to homestead property shall
   88  be assessed at just value as of the first January 1 after the
   89  changes, additions, or improvements are substantially completed.
   90         (b)1. Changes, additions, or improvements that replace all
   91  or a portion of homestead property, including ancillary
   92  improvements, damaged or destroyed by misfortune or calamity
   93  shall be assessed upon substantial completion as provided in
   94  this paragraph. Such assessment must be calculated using the
   95  homestead property’s assessed value as of the January 1
   96  immediately before the date on which the damage or destruction
   97  was sustained, subject to the assessment limitations in
   98  subsections (1) and (2), when:
   99         a. The square footage of the homestead property as changed
  100  or improved does not exceed 110 percent of the square footage of
  101  the homestead property before the damage or destruction; or
  102         b. The total square footage of the homestead property as
  103  changed or improved does not exceed 1,500 square feet.
  104         2. The homestead property’s assessed value must be
  105  increased by the just value of that portion of the changed or
  106  improved homestead property which is in excess of 110 percent of
  107  the square footage of the homestead property before the damage
  108  or destruction or of that portion exceeding 1,500 square feet.
  109         3. Homestead property damaged or destroyed by misfortune or
  110  calamity which, after being changed or improved, has a square
  111  footage of less than 100 percent of the homestead property’s
  112  total square footage before the damage or destruction shall be
  113  assessed pursuant to subsection (5).
  114         4. Changes, additions, or improvements assessed pursuant to
  115  this paragraph must be reassessed pursuant to subsection (1) in
  116  subsequent years. This paragraph applies to changes, additions,
  117  or improvements commenced within 3 years after the January 1
  118  following the damage or destruction of the homestead.
  119         (c) Changes, additions, or improvements that replace all or
  120  a portion of real property that was damaged or destroyed by
  121  misfortune or calamity shall be assessed upon substantial
  122  completion as if such damage or destruction had not occurred and
  123  in accordance with paragraph (b) if the owner of such property:
  124         1. Was permanently residing on such property when the
  125  damage or destruction occurred;
  126         2. Was not entitled to receive homestead exemption on such
  127  property as of January 1 of that year; and
  128         3. Applies for and receives homestead exemption on such
  129  property the following year.
  130         (d) Changes, additions, or improvements include
  131  improvements made to common areas or other improvements made to
  132  property other than to the homestead property by the owner or by
  133  an owner association, which improvements directly benefit the
  134  homestead property. Such changes, additions, or improvements
  135  shall be assessed at just value, and the just value shall be
  136  apportioned among the parcels benefiting from the improvement.
  137         (5) When property is destroyed or removed and not replaced,
  138  the assessed value of the parcel shall be reduced by the
  139  assessed value attributable to the destroyed or removed
  140  property.
  141         (6) Only property that receives a homestead exemption is
  142  subject to this section. No portion of property that is assessed
  143  solely on the basis of character or use pursuant to s. 193.461
  144  or s. 193.501, or assessed pursuant to s. 193.505, is subject to
  145  this section. When property is assessed under s. 193.461, s.
  146  193.501, or s. 193.505 and contains a residence under the same
  147  ownership, the portion of the property consisting of the
  148  residence and curtilage must be assessed separately, pursuant to
  149  s. 193.011, for the assessment to be subject to the limitation
  150  in this section.
  151         (7) If a person received a homestead exemption limited to
  152  that person’s proportionate interest in real property, the
  153  provisions of this section apply only to that interest.
  154         (8) Property assessed under this section shall be assessed
  155  at less than just value when the person who establishes a new
  156  homestead has received a homestead exemption as of January 1 of
  157  any of the 3 immediately preceding years. For purposes of this
  158  subsection, a husband and wife who owned and both permanently
  159  resided on a previous homestead shall each be considered to have
  160  received the homestead exemption even though only the husband or
  161  the wife applied for the homestead exemption on the previous
  162  homestead. The assessed value of the newly established homestead
  163  shall be determined as provided in this subsection.
  164         (a) If the just value of the new homestead as of January 1
  165  is greater than or equal to the just value of the immediate
  166  prior homestead as of January 1 of the year in which the
  167  immediate prior homestead was abandoned, the assessed value of
  168  the new homestead shall be the just value of the new homestead
  169  minus an amount equal to the lesser of $500,000 or the
  170  difference between the just value and the assessed value of the
  171  immediate prior homestead as of January 1 of the year in which
  172  the prior homestead was abandoned. Thereafter, the homestead
  173  shall be assessed as provided in this section.
  174         (b) If the just value of the new homestead as of January 1
  175  is less than the just value of the immediate prior homestead as
  176  of January 1 of the year in which the immediate prior homestead
  177  was abandoned, the assessed value of the new homestead shall be
  178  equal to the just value of the new homestead divided by the just
  179  value of the immediate prior homestead and multiplied by the
  180  assessed value of the immediate prior homestead. However, if the
  181  difference between the just value of the new homestead and the
  182  assessed value of the new homestead calculated pursuant to this
  183  paragraph is greater than $500,000, the assessed value of the
  184  new homestead shall be increased so that the difference between
  185  the just value and the assessed value equals $500,000.
  186  Thereafter, the homestead shall be assessed as provided in this
  187  section.
  188         (c) If two or more persons who have each received a
  189  homestead exemption as of January 1 of any of the 3 immediately
  190  preceding years and who would otherwise be eligible to have a
  191  new homestead property assessed under this subsection establish
  192  a single new homestead, the reduction from just value is limited
  193  to the higher of the difference between the just value and the
  194  assessed value of either of the prior eligible homesteads as of
  195  January 1 of the year in which either of the eligible prior
  196  homesteads was abandoned, but may not exceed $500,000.
  197         (d) If two or more persons abandon jointly owned and
  198  jointly titled property that received a homestead exemption as
  199  of January 1 of any of the 3 immediately preceding years, and
  200  one or more such persons who were entitled to and received a
  201  homestead exemption on the abandoned property establish a new
  202  homestead that would otherwise be eligible for assessment under
  203  this subsection, each such person establishing a new homestead
  204  is entitled to a reduction from just value for the new homestead
  205  equal to the just value of the prior homestead minus the
  206  assessed value of the prior homestead divided by the number of
  207  owners of the prior homestead who received a homestead
  208  exemption, unless the title of the property contains specific
  209  ownership shares, in which case the share of reduction from just
  210  value shall be proportionate to the ownership share. In the case
  211  of a husband and wife abandoning jointly titled property, the
  212  husband and wife may designate the ownership share to be
  213  attributed to each spouse by following the procedure in
  214  paragraph (f). To qualify to make such a designation, the
  215  husband and wife must be married on the date that the jointly
  216  owned property is abandoned. In calculating the assessment
  217  reduction to be transferred from a prior homestead that has an
  218  assessment reduction for living quarters of parents or
  219  grandparents pursuant to s. 193.703, the value calculated
  220  pursuant to s. 193.703(6) must first be added back to the
  221  assessed value of the prior homestead. The total reduction from
  222  just value for all new homesteads established under this
  223  paragraph may not exceed $500,000. There shall be no reduction
  224  from just value of any new homestead unless the prior homestead
  225  is reassessed at just value or is reassessed under this
  226  subsection as of January 1 after the abandonment occurs.
  227         (e) If one or more persons who previously owned a single
  228  homestead and each received the homestead exemption qualify for
  229  a new homestead where all persons who qualify for homestead
  230  exemption in the new homestead also qualified for homestead
  231  exemption in the previous homestead without an additional person
  232  qualifying for homestead exemption in the new homestead, the
  233  reduction in just value shall be calculated pursuant to
  234  paragraph (a) or paragraph (b), without application of paragraph
  235  (c) or paragraph (d).
  236         (f) A husband and wife abandoning jointly titled property
  237  who wish to designate the ownership share to be attributed to
  238  each person for purposes of paragraph (d) must file a form
  239  provided by the department with the property appraiser in the
  240  county where such property is located. The form must include a
  241  sworn statement by each person designating the ownership share
  242  to be attributed to each person for purposes of paragraph (d)
  243  and must be filed prior to either person filing the form
  244  required under paragraph (h) to have a parcel of property
  245  assessed under this subsection. Such a designation, once filed
  246  with the property appraiser, is irrevocable.
  247         (g) For purposes of receiving an assessment reduction
  248  pursuant to this subsection, a person entitled to assessment
  249  under this section may abandon his or her homestead even though
  250  it remains his or her primary residence by notifying the
  251  property appraiser of the county where the homestead is located.
  252  This notification must be in writing and delivered at the same
  253  time as or before timely filing a new application for homestead
  254  exemption on the property.
  255         (h) In order to have his or her homestead property assessed
  256  under this subsection, a person must file a form provided by the
  257  department as an attachment to the application for homestead
  258  exemption, including a copy of the form required to be filed
  259  under paragraph (f), if applicable. The form, which must include
  260  a sworn statement attesting to the applicant’s entitlement to
  261  assessment under this subsection, shall be considered sufficient
  262  documentation for applying for assessment under this subsection.
  263  The department shall require by rule that the required form be
  264  submitted with the application for homestead exemption under the
  265  timeframes and processes set forth in chapter 196 to the extent
  266  practicable.
  267         (i)1. If the previous homestead was located in a different
  268  county than the new homestead, the property appraiser in the
  269  county where the new homestead is located must transmit a copy
  270  of the completed form together with a completed application for
  271  homestead exemption to the property appraiser in the county
  272  where the previous homestead was located. If the previous
  273  homesteads of applicants for transfer were in more than one
  274  county, each applicant from a different county must submit a
  275  separate form.
  276         2. The property appraiser in the county where the previous
  277  homestead was located must return information to the property
  278  appraiser in the county where the new homestead is located by
  279  April 1 or within 2 weeks after receipt of the completed
  280  application from that property appraiser, whichever is later. As
  281  part of the information returned, the property appraiser in the
  282  county where the previous homestead was located must provide
  283  sufficient information concerning the previous homestead to
  284  allow the property appraiser in the county where the new
  285  homestead is located to calculate the amount of the assessment
  286  limitation difference which may be transferred and must certify
  287  whether the previous homestead was abandoned and has been or
  288  will be reassessed at just value or reassessed according to the
  289  provisions of this subsection as of the January 1 following its
  290  abandonment.
  291         3. Based on the information provided on the form from the
  292  property appraiser in the county where the previous homestead
  293  was located, the property appraiser in the county where the new
  294  homestead is located shall calculate the amount of the
  295  assessment limitation difference which may be transferred and
  296  apply the difference to the January 1 assessment of the new
  297  homestead.
  298         4. All property appraisers having information-sharing
  299  agreements with the department are authorized to share
  300  confidential tax information with each other pursuant to s.
  301  195.084, including social security numbers and linked
  302  information on the forms provided pursuant to this section.
  303         5. The transfer of any limitation is not final until any
  304  values on the assessment roll on which the transfer is based are
  305  final. If such values are final after tax notice bills have been
  306  sent, the property appraiser shall make appropriate corrections
  307  and a corrected tax notice bill shall be sent. Any values that
  308  are under administrative or judicial review shall be noticed to
  309  the tribunal or court for accelerated hearing and resolution so
  310  that the intent of this subsection may be carried out.
  311         6. If the property appraiser in the county where the
  312  previous homestead was located has not provided information
  313  sufficient to identify the previous homestead and the assessment
  314  limitation difference is transferable, the taxpayer may file an
  315  action in circuit court in that county seeking to establish that
  316  the property appraiser must provide such information.
  317         7. If the information from the property appraiser in the
  318  county where the previous homestead was located is provided
  319  after the procedures in this section are exercised, the property
  320  appraiser in the county where the new homestead is located shall
  321  make appropriate corrections and a corrected tax notice and tax
  322  bill shall be sent.
  323         8. This subsection does not authorize the consideration or
  324  adjustment of the just, assessed, or taxable value of the
  325  previous homestead property.
  326         9. The property appraiser in the county where the new
  327  homestead is located shall promptly notify a taxpayer if the
  328  information received, or available, is insufficient to identify
  329  the previous homestead and the amount of the assessment
  330  limitation difference which is transferable. Such notification
  331  shall be sent on or before July 1 as specified in s. 196.151.
  332         10. The taxpayer may correspond with the property appraiser
  333  in the county where the previous homestead was located to
  334  further seek to identify the homestead and the amount of the
  335  assessment limitation difference which is transferable.
  336         11. If the property appraiser in the county where the
  337  previous homestead was located supplies sufficient information
  338  to the property appraiser in the county where the new homestead
  339  is located, such information shall be considered timely if
  340  provided in time for inclusion on the notice of proposed
  341  property taxes sent pursuant to ss. 194.011 and 200.065(1).
  342         12. If the property appraiser has not received information
  343  sufficient to identify the previous homestead and the amount of
  344  the assessment limitation difference which is transferable
  345  before mailing the notice of proposed property taxes, the
  346  taxpayer may file a petition with the value adjustment board in
  347  the county where the new homestead is located.
  348         (j) Any person who is qualified to have his or her property
  349  assessed under this subsection and who fails to file an
  350  application by March 1 may file an application for assessment
  351  under this subsection and may, pursuant to s. 194.011(3), file a
  352  petition with the value adjustment board requesting that an
  353  assessment under this subsection be granted. Such petition may
  354  be filed at any time during the taxable year on or before the
  355  25th day following the mailing of the notice by the property
  356  appraiser as provided in s. 194.011(1). Notwithstanding s.
  357  194.013, such person must pay a nonrefundable fee of $15 upon
  358  filing the petition. Upon reviewing the petition, if the person
  359  is qualified to receive the assessment under this subsection and
  360  demonstrates particular extenuating circumstances judged by the
  361  property appraiser or the value adjustment board to warrant
  362  granting the assessment, the property appraiser or the value
  363  adjustment board may grant an assessment under this subsection.
  364         (k) Any person who is qualified to have his or her property
  365  assessed under this subsection and who fails to timely file an
  366  application for his or her new homestead in the first year
  367  following eligibility may file in a subsequent year. The
  368  assessment reduction shall be applied to assessed value in the
  369  year the transfer is first approved, and refunds of tax may not
  370  be made for previous years.
  371         (l) The property appraisers of the state shall, as soon as
  372  practicable after March 1 of each year and on or before July 1
  373  of that year, carefully consider all applications for assessment
  374  under this subsection which have been filed in their respective
  375  offices on or before March 1 of that year. If, upon
  376  investigation, the property appraiser finds that the applicant
  377  is entitled to assessment under this subsection, the property
  378  appraiser shall make such entries upon the tax rolls of the
  379  county as are necessary to allow the assessment. If, after due
  380  consideration, the property appraiser finds that the applicant
  381  is not entitled to the assessment under this subsection, the
  382  property appraiser shall immediately prepare a notice of such
  383  disapproval, giving his or her reasons therefor, and a copy of
  384  the notice must be served upon the applicant by the property
  385  appraiser by personal delivery or by registered mail to the post
  386  office address given by the applicant. The applicant may appeal
  387  the decision of the property appraiser refusing to allow the
  388  assessment under this subsection to the value adjustment board,
  389  and the board shall review the application and evidence
  390  presented to the property appraiser upon which the applicant
  391  based the claim and hear the applicant in person or by agent on
  392  behalf of his or her right to such assessment. Such appeal shall
  393  be heard by an attorney special magistrate if the value
  394  adjustment board uses special magistrates. The value adjustment
  395  board shall reverse the decision of the property appraiser in
  396  the cause and grant assessment under this subsection to the
  397  applicant if, in its judgment, the applicant is entitled to the
  398  assessment or shall affirm the decision of the property
  399  appraiser. The action of the board is final in the cause unless
  400  the applicant, within 60 days following the date of refusal of
  401  the application by the board, files in the circuit court of the
  402  county in which the homestead is located a proceeding against
  403  the property appraiser for a declaratory judgment as is provided
  404  under chapter 86 or other appropriate proceeding. The failure of
  405  the taxpayer to appear before the property appraiser or value
  406  adjustment board or to file any paper other than the application
  407  as provided in this subsection does not constitute a bar to or
  408  defense in the proceedings.
  409         (m) For purposes of receiving an assessment reduction
  410  pursuant to this subsection, an owner of a homestead property
  411  that was significantly damaged or destroyed as a result of a
  412  named tropical storm or hurricane may elect, in the calendar
  413  year following the named tropical storm or hurricane, to have
  414  the significantly damaged or destroyed homestead deemed to have
  415  been abandoned as of the date of the named tropical storm or
  416  hurricane even though the owner received a homestead exemption
  417  on the property as of January 1 of the year immediately
  418  following the named tropical storm or hurricane. The election
  419  provided for in this paragraph is available only if the owner
  420  establishes a new homestead as of January 1 of the third year
  421  immediately following the storm or hurricane. This paragraph
  422  shall apply to homestead property damaged or destroyed on or
  423  after January 1, 2017.
  424         (9) Erroneous assessments of homestead property assessed
  425  under this section may be corrected in the following manner:
  426         (a) If errors are made in arriving at any assessment under
  427  this section due to a material mistake of fact concerning an
  428  essential characteristic of the property, the just value and
  429  assessed value must be recalculated for every such year,
  430  including the year in which the mistake occurred.
  431         (b) If changes, additions, or improvements are not assessed
  432  at just value as of the first January 1 after they were
  433  substantially completed, the property appraiser shall determine
  434  the just value for such changes, additions, or improvements for
  435  the year they were substantially completed. Assessments for
  436  subsequent years shall be corrected, applying this section if
  437  applicable.
  438         (c) If back taxes are due pursuant to s. 193.092, the
  439  corrections made pursuant to this subsection shall be used to
  440  calculate such back taxes.
  441         (10) If the property appraiser determines that for any year
  442  or years within the prior 10 years a person who was not entitled
  443  to the homestead property assessment limitation granted under
  444  this section was granted the homestead property assessment
  445  limitation, the property appraiser making such determination
  446  shall serve upon the owner a notice of intent to record in the
  447  public records of the county a notice of tax lien against any
  448  property owned by that person in the county, and such property
  449  must be identified in the notice of tax lien. Such property that
  450  is situated in this state is subject to the unpaid taxes, plus a
  451  penalty of 50 percent of the unpaid taxes for each year and 15
  452  percent interest per annum. However, when a person entitled to
  453  exemption pursuant to s. 196.031 inadvertently receives the
  454  limitation pursuant to this section following a change of
  455  ownership, the assessment of such property must be corrected as
  456  provided in paragraph (9)(a), and the person need not pay the
  457  unpaid taxes, penalties, or interest. Before a lien may be
  458  filed, the person or entity so notified must be given 30 days to
  459  pay the taxes and any applicable penalties and interest. If the
  460  property appraiser improperly grants the property assessment
  461  limitation as a result of a clerical mistake or an omission, the
  462  person or entity improperly receiving the property assessment
  463  limitation may not be assessed a penalty or interest.
  464         Section 2. This act shall take effect on the effective date
  465  of the amendment to the State Constitution proposed by SJR _____
  466  or a similar joint resolution having substantially the same
  467  specific intent and purpose, if such amendment to the State
  468  Constitution is approved at the next general election or at an
  469  earlier special election specifically authorized by law for that
  470  purpose.

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