The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Community Affairs
BILL: SB 216
INTRODUCER: Senator Hooper
SUBJECT: Tax Collections
DATE: January 8, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Pre-meeting
2. FT
3. AP
I. Summary:
SB 216 makes various changes to local governments’ tax collection administration. The bill:
Removes a $10 processing fee associated with partial payment of current year taxes;
Requires that tax collectors include properties subject to federal bankruptcies, properties in
which the taxes are below the minimum tax bill, and properties assigned to the list of lands
available for taxes in their report on tax collections submitted annually to the board of county
commissioners; and
Clarifies the status of a tax certificate following cancellation of a tax deed application.
The bill takes effect July 1, 2024.
II. Present Situation:
Partial Payment of Current Year Taxes
At their own discretion, a tax collector may accept one or more partial payments of current year
taxes and assessments on real or tangible personal property prior to the date of delinquency.
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Each partial payment is credited to the associated tax account, less a $10 processing fee.
2
Partial
payments are not eligible for certain discounts, and do not affect the property owner’s
responsibility to pay taxes in full by their delinquency date.
3
1
Section 197.374(2), F.S.
2
Section 197.374(3), F.S.
3
Section 197.374, F.S.
REVISED: BILL: SB 216 Page 2
The Florida Tax Collectors Association has indicated that, following Hurricane Michael
(October 2018) tax collectors began waiving the $10 fee in an effort to help taxpayers affected
by natural disasters.
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Tax Certificate Sales
A tax certificate is a financial instrument representing the value of unpaid delinquent taxes and
assessments, with associated costs and charges, issued against a parcel and sold thereafter at
auction.
5
The tax certificate sale serves to reduce interest on unpaid taxes, from 18 percent to as
low as .25 percent, in exchange for the local government collecting its expected tax roll.
6
The tax
certificate is held as a lien on the property in the amount of unpaid dues, and is fulfilled when the
unpaid taxes, assessments, costs, charges, and interest are paid by the property owner.
7
Two
years after a tax certificate is sold, the certificate holder may apply for a tax deed.
8
A tax
certificate expires after 7 years, unless it is subject to a tax deed application or other
administrative or legal proceeding such as bankruptcy.
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Errors and Insolvencies Report
Within 60 days after the tax certificate sale is adjourned, tax collectors are required to submit an
errors and insolvencies report to the board of county commissioners.
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This report must show the
discounts, errors, double assessments, and insolvencies relating to tax collections in which credit
is to be given.
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This report serves to explain discrepancies between expected and actual tax
revenue.
Tax Deed Application
Two years after the April 1 of the year of the issuance of a tax certificate, the certificate holder
may apply for a tax deed.
12
This brings into motion a process through which the property will
ultimately be sold by the County in order to cover unpaid taxes.
13
Applying for a tax deed
requires the certificate holder to pay to the tax collector all amounts required for redemption or
purchase of all outstanding tax certificates, as a new certificate can be produced for each year’s
unpaid taxes, alongside associate costs, taxes, and interest, and any outstanding delinquent or
current year taxes.
14
This application therefore redeems or collects tax certificates other than the
one on which the tax deed application was based, and the property comes subject to a single tax
certificate lien.
4
Office of Economic & Demographic Research, Revenue Estimating Conference Impact Conference (November 17, 2023)
29-30, available at http://edr.state.fl.us/content/conferences/revenueimpact/archives/2024/_pdf/impact1117.pdf (last visited
Jan. 6, 2024).
5
Section 197.102(1)(f), F.S.
6
See generally sections 197.172 and 197.432, F.S.
7
Id.
8
Section 197.502 (1), F.S.
9
Section 197.482, F.S.
10
Section 197.492, F.S.
11
Id.
12
Section 197.502 (1), F.S.
13
See generally section 197.502, F.S.
14
Section 197.502(2), F.S. BILL: SB 216 Page 3
After application for tax deed, the county clerk notifies the applicant of the costs required to
bring the property to sale. These costs include property information searches, mailing and
advertising costs, and resale costs. If the certificate holder-applicant fails to pay these costs
within 30 days after notice from the clerk, the tax collector must cancel the tax deed application.
All taxes and costs associated with the canceled tax deed application earn interest at the bid rate
of the certificate on which the tax deed application was based, and the property is listed as land
“available for taxes,” and taxed normally thereafter.
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III. Effect of Proposed Changes:
Section 1 amends s. 197.374, F.S., to remove a $10 processing fee associated with partial
payment of current year taxes.
Section 2 amends s. 197.492, F.S., to require that tax collectors include properties subject to
federal bankruptcies, properties in which the taxes are below the minimum tax bill, and
properties assigned to the list of lands available for taxes in their report on tax collections
submitted annually to the board of county commissioners.
Section 3 amends s. 197.502, F.S., to clarify that, upon cancellation of a tax deed application due
to failure to pay costs to bring the property to sale, the tax certificate on which the canceled tax
deed application was based shall earn interest at the original bid rate of that certificate and
remain inclusive of other taxes and costs paid associated with bringing the application. This
change appears clarifying and not substantive in nature.
Section 4 provides that the bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
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Id., this paragraph. BILL: SB 216 Page 4
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Committee adopted a negative indeterminate impact based on
the permanent removal of fees for partial payment of current year taxes.
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B. Private Sector Impact:
Parties will permanently cease payment of the processing fee associated with partial
payment of current year taxes.
C. Government Sector Impact:
Local governments will permanently cease collection of the $10 processing fee
associated with partial payment of current year taxes.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 197.374, 197.492, and 197.502 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
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Supra, note 4.