Bill Summary – FastDemocracy

       Florida Senate - 2024                                     SB 378
       
       
        
       By Senator Garcia
       
       
       
       
       
       36-00435-24                                            2024378__
                      A bill to be entitled                      
       An act relating to property tax assessment; amending
       s. 193.122, F.S.; modifying the timeframe for a
       property appraiser to file an appeal of a value
       adjustment board decision; amending s. 193.155, F.S.;
       revising the procedure for correcting erroneous
       homestead property tax assessments; providing
       applicability; establishing a new limitation on
       homestead tax assessments for property transferred
       from nonhomestead residential property to homestead
       property; requiring that the values of such homesteads
       be reassessed at a specified time; providing a
       limitation on such reassessment; amending s. 193.1554,
       F.S.; revising the procedure for correcting erroneous
       nonhomestead residential property tax assessments;
       providing applicability; establishing a new limitation
       on tax assessments for property transferred from
       homestead property to nonhomestead residential
       property; providing the procedure for calculating the
       assessed value of such property; providing
       applicability; amending s. 193.1555, F.S.; revising
       the procedure for correcting erroneous nonhomestead
       real property tax assessments; providing
       applicability; amending s. 194.032, F.S.; revising the
       purposes for which a value adjustment board may meet;
       amending s. 194.034, F.S.; authorizing a petitioner to
       request a hearing to contest whether a tangible
       personal property return was timely filed; amending s.
       196.011, F.S.; specifying a property owner’s
       responsibility to pay unpaid taxes, penalties, or
       interests if certain exemptions are granted as the
       result of a property appraiser’s error; amending s.
       196.041, F.S.; providing that certain households are
       entitled to the homestead tax exemption when the
       property or a portion of the property is rented if
       certain conditions are met; defining the term
       “rented”; amending s. 196.061, F.S.; conforming
       provisions to changes made by the act; providing an
       effective date.
        
Be It Enacted by the Legislature of the State of Florida:

       Section 1. Subsection (4) of section 193.122, Florida
Statutes, is amended to read:
       193.122 Certificates of value adjustment board and property
appraiser; extensions on the assessment rolls.—
       (4) An appeal of a value adjustment board decision pursuant
to s. 194.036(1)(a) or (b) by the property appraiser must shall
be filed before prior to extension of the tax roll under
subsection (2) or, if the roll was extended pursuant to s.
197.323, within 30 days after the decision by the value
adjustment board is rendered of recertification under subsection
(3). The roll may be certified by the property appraiser before
prior to an appeal is being filed pursuant to s. 194.036(1)(c),
but such appeal must shall be filed within 20 days after receipt
of the decision of the department relative to further judicial
proceedings.
       Section 2. Section 193.155, Florida Statutes, is amended to
read:
       193.155 Homestead assessments.—Homestead property shall be
assessed at just value as of January 1, 1994. Property receiving
the homestead exemption after January 1, 1994, shall be assessed
at just value as of January 1 of the year in which the property
receives the exemption unless the provisions of subsection (8)
or subsection (11) apply.
       (1) Beginning in 1995, or the year following the year the
property receives homestead exemption, whichever is later, the
property shall be reassessed annually on January 1. Any change
resulting from such reassessment may shall not exceed the lower
of the following:
       (a) Three percent of the assessed value of the property for
the prior year; or
       (b) The percentage change in the Consumer Price Index for
All Urban Consumers, U.S. City Average, all items 1967=100, or
successor reports for the preceding calendar year as initially
reported by the United States Department of Labor, Bureau of
Labor Statistics.
       (2) If the assessed value of the property as calculated
under subsection (1) exceeds the just value, the assessed value
of the property must shall be lowered to the just value of the
property.
       (3)(a) Except as provided in this subsection or subsection
(8), property assessed under this section shall be assessed at
just value as of January 1 of the year following a change of
ownership. Thereafter, the annual changes in the assessed value
of the property are subject to the limitations in subsections
(1) and (2). For the purpose of this section, a change of
ownership means any sale, foreclosure, or transfer of legal
title or beneficial title in equity to any person, except if any
of the following apply:
       1. Subsequent to the change or transfer, the same person is
entitled to the homestead exemption as was previously entitled
and:
       a. The transfer of title is to correct an error;
       b. The transfer is between legal and equitable title or
equitable and equitable title and no additional person applies
for a homestead exemption on the property;
       c. The change or transfer is by means of an instrument in
which the owner is listed as both grantor and grantee of the
real property and one or more other individuals are additionally
named as grantee. However, if any individual who is additionally
named as a grantee applies for a homestead exemption on the
property, the application is considered a change of ownership;
       d. The change or transfer is by means of an instrument in
which the owner entitled to the homestead exemption is listed as
both grantor and grantee of the real property and one or more
other individuals, all of whom held title as joint tenants with
rights of survivorship with the owner, are named only as
grantors and are removed from the title; or
       e. The person is a lessee entitled to the homestead
exemption under s. 196.041(1);
       2. Legal or equitable title is changed or transferred
between husband and wife, including a change or transfer to a
surviving spouse or a transfer due to a dissolution of marriage;
       3. The transfer occurs by operation of law to the surviving
spouse or minor child or children under s. 732.401;
       4. Upon the death of the owner, the transfer is between the
owner and another who is a permanent resident and who is legally
or naturally dependent upon the owner; or
       5. The transfer occurs with respect to a property where all
of the following apply:
       a. Multiple owners hold title as joint tenants with rights
of survivorship;
       b. One or more owners were entitled to and received the
homestead exemption on the property;
       c. The death of one or more owners occurs; and
       d. Subsequent to the transfer, the surviving owner or
owners previously entitled to and receiving the homestead
exemption continue to be entitled to and receive the homestead
exemption.
       (b) For purposes of this subsection, a leasehold interest
that qualifies for the homestead exemption under s. 196.031 or
s. 196.041 shall be treated as an equitable interest in the
property.
       (4)(a) Except as provided in paragraph (b) and s. 193.624,
changes, additions, or improvements to homestead property shall
be assessed at just value as of the first January 1 after the
changes, additions, or improvements are substantially completed.
       (b)1. Changes, additions, or improvements that replace all
or a portion of homestead property, including ancillary
improvements, damaged or destroyed by misfortune or calamity
shall be assessed upon substantial completion as provided in
this paragraph. Such assessment must be calculated using the
homestead property’s assessed value as of the January 1
immediately before the date on which the damage or destruction
was sustained, subject to the assessment limitations in
subsections (1) and (2), when:
       a. The square footage of the homestead property as changed
or improved does not exceed 110 percent of the square footage of
the homestead property before the damage or destruction; or
       b. The total square footage of the homestead property as
changed or improved does not exceed 1,500 square feet.
       2. The homestead property’s assessed value must be
increased by the just value of that portion of the changed or
improved homestead property which is in excess of 110 percent of
the square footage of the homestead property before the damage
or destruction or of that portion exceeding 1,500 square feet.
       3. Homestead property damaged or destroyed by misfortune or
calamity which, after being changed or improved, has a square
footage of less than 100 percent of the homestead property’s
total square footage before the damage or destruction shall be
assessed pursuant to subsection (5).
       4. Changes, additions, or improvements assessed pursuant to
this paragraph must be reassessed pursuant to subsection (1) in
subsequent years. This paragraph applies to changes, additions,
or improvements commenced within 3 years after the January 1
following the damage or destruction of the homestead.
       (c) Changes, additions, or improvements that replace all or
a portion of real property that was damaged or destroyed by
misfortune or calamity shall be assessed upon substantial
completion as if such damage or destruction had not occurred and
in accordance with paragraph (b) if the owner of such property:
       1. Was permanently residing on such property when the
damage or destruction occurred;
       2. Was not entitled to receive homestead exemption on such
property as of January 1 of that year; and
       3. Applies for and receives homestead exemption on such
property the following year.
       (d) Changes, additions, or improvements include
improvements made to common areas or other improvements made to
property other than to the homestead property by the owner or by
an owner association, which improvements directly benefit the
homestead property. Such changes, additions, or improvements
shall be assessed at just value, and the just value shall be
apportioned among the parcels benefiting from the improvement.
       (5) When property is destroyed or removed and not replaced,
the assessed value of the parcel shall be reduced by the
assessed value attributable to the destroyed or removed
property.
       (6) Only property that receives a homestead exemption is
subject to this section. No portion of property that is assessed
solely on the basis of character or use pursuant to s. 193.461
or s. 193.501, or assessed pursuant to s. 193.505, is subject to
this section. When property is assessed under s. 193.461, s.
193.501, or s. 193.505 and contains a residence under the same
ownership, the portion of the property consisting of the
residence and curtilage must be assessed separately, pursuant to
s. 193.011, for the assessment to be subject to the limitation
in this section.
       (7) If a person received a homestead exemption limited to
that person’s proportionate interest in real property, the
provisions of this section apply only to that interest.
       (8) Property assessed under this section shall be assessed
at less than just value when the person who establishes a new
homestead has received a homestead exemption as of January 1 of
any of the 3 immediately preceding years. For purposes of this
subsection, a husband and wife who owned and both permanently
resided on a previous homestead are shall each be considered to
have received the homestead exemption even though only the
husband or the wife applied for the homestead exemption on the
previous homestead. The assessed value of the newly established
homestead shall be determined as provided in this subsection.
       (a) If the just value of the new homestead as of January 1
is greater than or equal to the just value of the immediate
prior homestead as of January 1 of the year in which the
immediate prior homestead was abandoned, the assessed value of
the new homestead is shall be the just value of the new
homestead minus an amount equal to the lesser of $500,000 or the
difference between the just value and the assessed value of the
immediate prior homestead as of January 1 of the year in which
the prior homestead was abandoned. Thereafter, the homestead
shall be assessed as provided in this section.
       (b) If the just value of the new homestead as of January 1
is less than the just value of the immediate prior homestead as
of January 1 of the year in which the immediate prior homestead
was abandoned, the assessed value of the new homestead is shall
be equal to the just value of the new homestead divided by the
just value of the immediate prior homestead and multiplied by
the assessed value of the immediate prior homestead. However, if
the difference between the just value of the new homestead and
the assessed value of the new homestead calculated pursuant to
this paragraph is greater than $500,000, the assessed value of
the new homestead must shall be increased so that the difference
between the just value and the assessed value equals $500,000.
Thereafter, the homestead shall be assessed as provided in this
section.
       (c) If two or more persons who have each received a
homestead exemption as of January 1 of any of the 3 immediately
preceding years and who would otherwise be eligible to have a
new homestead property assessed under this subsection establish
a single new homestead, the reduction from just value is limited
to the higher of the difference between the just value and the
assessed value of either of the prior eligible homesteads as of
January 1 of the year in which either of the eligible prior
homesteads was abandoned, but may not exceed $500,000.
       (d) If two or more persons abandon jointly owned and
jointly titled property that received a homestead exemption as
of January 1 of any of the 3 immediately preceding years, and
one or more such persons who were entitled to and received a
homestead exemption on the abandoned property establish a new
homestead that would otherwise be eligible for assessment under
this subsection, each such person establishing a new homestead
is entitled to a reduction from just value for the new homestead
equal to the just value of the prior homestead minus the
assessed value of the prior homestead divided by the number of
owners of the prior homestead who received a homestead
exemption, unless the title of the property contains specific
ownership shares, in which case the share of reduction from just
value shall be proportionate to the ownership share. In the case
of a husband and wife abandoning jointly titled property, the
husband and wife may designate the ownership share to be
attributed to each spouse by following the procedure in
paragraph (f). To qualify to make such a designation, the
husband and wife must be married on the date that the jointly
owned property is abandoned. In calculating the assessment
reduction to be transferred from a prior homestead that has an
assessment reduction for living quarters of parents or
grandparents pursuant to s. 193.703, the value calculated
pursuant to s. 193.703(6) must first be added back to the
assessed value of the prior homestead. The total reduction from
just value for all new homesteads established under this
paragraph may not exceed $500,000. There shall be no reduction
from just value of any new homestead unless the prior homestead
is reassessed at just value or is reassessed under this
subsection as of January 1 after the abandonment occurs.
       (e) If one or more persons who previously owned a single
homestead and each received the homestead exemption qualify for
a new homestead where all persons who qualify for homestead
exemption in the new homestead also qualified for homestead
exemption in the previous homestead without an additional person
qualifying for homestead