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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to a property tax exemption and 2
assessment limitation on long -term leased property; 3
creating s. 193.1553, F.S.; providing that property 4
that receives a certain tax exemption shall be 5
assessed in a specified manner; providing that 6
changes, additions, and improvements to such property 7
shall be assessed in a specified manner; providing 8
exceptions and alternative assessments; providing 9
construction; requiring property that no longer meets 10
eligibility requirements to be assessed in an 11
alternative manner; amending s. 196.011, F.S.; 12
requiring the submission of an application containing 13
specified information before receiving a specified tax 14
exemption; amending s. 196.034, F.S.; providing 15
specified tax exemptions for property that meets 16
certain eligibility requirements; providing that 17
certain damaged or destroyed property is eligible for 18
the exemption if specified conditions are met; 19
providing that if suc h conditions are not met, such 20
property shall be considered abandoned for a specified 21
purpose; amending ss. 193.1554 and 194.032, F.S.; 22
conforming provisions to changes made by the act; 23
providing a contingent effective date. 24
25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Be It Enacted by the Legis lature of the State of Florida: 26
27
Section 1. Section 193.1553, Florida Statutes, is created 28
to read: 29
193.1553 Assessment of certain residential property 30
subject to a long-term lease.— 31
(1) Property that receives the exemption under s. 196.034 32
shall be assessed under this section. 33
(2) Except as provided in subsection (4), property that 34
meets the conditions of subsection (1) shall be assessed 35
pursuant to this section as of January 1 of any year for which 36
the property is eligible for assessment under t his section, 37
using the prior year's assessed value as the basis for any 38
change in assessment. Any change resulting from such assessment 39
shall not exceed the lower of the following: 40
(a) Three percent of the assessed value of the property 41
for the prior year; or 42
(b) The percentage change in the Consumer Price Index for 43
All Urban Consumers, U.S. City Average, all items 1967=100, or 44
successor reports for the preceding calendar year as initially 45
reported by the United States Department of Labor, Bureau of 46
Labor Statistics. 47
(3) If the assessed value of the property as calculated 48
under subsection (2) exceeds the just value, the assessed value 49
of the property shall be lowered to the just value of the 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
property. 51
(4) Property assessed under this section shall be assessed 52
at just value as of January 1 of the year following a change of 53
ownership, or as of January 1 of the year following abandonment 54
of homestead on a property that becomes eligible for assessment 55
under this section, but no sooner than the January 1 f ollowing 56
the certification to the property appraiser required by s. 57
193.155(8)(i)2. Thereafter, the annual changes in the assessed 58
value of the property are subject to the limitations in 59
subsections (2) and (3). For purposes of this subsection, the 60
term "change of ownership" means any sale, foreclosure, or 61
transfer of legal title or beneficial title in equity to any 62
person, except if any of the provisions of s. 193.155(3)(a) 63
apply. 64
(5)(a) Except as provided in paragraph (b) and s. 193.624, 65
changes, additions, or improvements to property subject to this 66
section shall be assessed at just value as of the first January 67
1 after the changes, additions, or improvements are 68
substantially completed. 69
(b)1. Changes, additions, or improvements that replace all 70
or a portion of property assessed under this section, including 71
ancillary improvements, that are damaged or destroyed by 72
misfortune or calamity shall be assessed upon substantial 73
completion as provided in this paragraph. Such assessment must 74
be calculated using the property's assessed value as of the 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
January 1 immediately before the date on which the damage or 76
destruction was sustained, subject to the assessment limitations 77
in subsections (2) and (3), when: 78
a. The square footage of the property as changed or 79
improved does not exceed 110 percent of the square footage of 80
the property before the damage or destruction; or 81
b. The total square footage of the property as changed or 82
improved does not exceed 1,500 square feet. 83
2. The property's assessed value must be increased by the 84
just value of that portion of the changed or improved property 85
which is in excess of 110 percent of the square footage of the 86
property before the damage or destruction or of that portion 87
exceeding 1,500 square feet. 88
3. Property damaged or destroyed by misfortune or calamity 89
which, after being changed or improved, has a square footage of 90
less than 100 percent of the property's total square footage 91
before the damage or destruction shall be assessed pursuant to 92
subsection (6). 93
4. Changes, additions, or improvements assessed pursuant 94
to this paragraph must be reassessed pursuant to subsection (2) 95
in subsequent years. This paragraph applies to changes, 96
additions, or improvements commenced within 5 years after the 97
January 1 following the da mage or destruction of the property. 98
(c) Changes, additions, or improvements include 99
improvements made to common areas or other improvements made to 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
property other than to the property by the owner or by an owner 101
association, which improvements directly benefit the property. 102
Such changes, additions, or improvements shall be assessed at 103
just value, and the just value shall be apportioned among the 104
parcels benefiting from the improvement. 105
(6) When property is destroyed or removed and not 106
replaced, the assessed value of the parcel shall be reduced by 107
the assessed value attributable to the destroyed or removed 108
property. 109
(7) Only property that meets the conditions of subsection 110
(1) is subject to this section. Any portion of property that is 111
assessed solely on the basis of character or use pursuant to s. 112
193.461 or s. 193.501, or assessed pursuant to s. 193.505, is 113
not subject to this section. 114
(8)(a) If, after meeting the conditions of subsection (1) 115
and receiving the benefit of the assessment limitation in 116
subsections (2) and (3), the property does not meet the 117
conditions of subsection (1) on January 1 of any subsequent 118
year, the property shall instead be assessed pursuant to s. 119
193.155(1) and (2), or s. 193.1554(3) and (4), as applicable, 120
beginning with such year. 121
1. Any change in assessment in the first year the property 122
is assessed pursuant to s. 193.1554 shall use the most recent 123
year's assessed value under this section as the basis for 124
adjustment, and may not revert to just value, unless such 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
property experiences a change of ownership or control as 126
provided in s. 193.1554. 127
2. Any change in assessment in the first year the property 128
is assessed pursuant to s. 193.155 shall use the just value of 129
the property, as adjusted pursuant to s. 193.155(8), if 130
applicable. 131
(b)1. If the property meets the conditions of subsection 132
(1) on January 1 of a subsequent year, this section shall apply 133
beginning with such year, and the application of the limitation 134
in subsection (2) shall use the most recent year's assessed 135
value as the basis for adjustment if the property was assessed 136
in the most recent year pursuant to s. 193.1554. 137
2. If the property meets the conditions of subsection (1) 138
on January 1 of a subsequent year and the property was assessed 139
as the homestead of the owner in the prior year pursuant to s. 140
193.155, then the application of the limitation in subsection 141
(2) shall use the just value of the property, rather than the 142
prior year's assessment, for the first year's assessment 143
limitation in subsection (2). A property that was abandoned as a 144
homestead is only eligible under this section if the property 145
appraiser in the county in which the abandoned homestead 146
property is located provides the certification to the property 147
appraiser in the county in which the new homestead is located as 148
required by s. 193.155(8)(i)2., stating that the property has 149
been or will be reassessed at just value. 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 2. Paragraph (b) of subsection (1) of section 151
196.011, Florida Statutes, is amended, and subsection (14) is 152
added to that section, to read: 153
196.011 Annual application required for exemption. — 154
(1) 155
(b) The form to apply for an exemption under s. 196.031, 156
s. 196.034, s. 196.081, s. 196.091, s. 196.101, s. 196.102, s. 157
196.173, or s. 196.202 must include a space for th e applicant to 158
list the social security number of the applicant and of the 159
applicant's spouse, if any. If an applicant files a timely and 160
otherwise complete application, and omits the required social 161
security numbers, the application is incomplete. In that event, 162
the property appraiser shall contact the applicant, who may 163
refile a complete application by April 1. Failure to file a 164
complete application by that date constitutes a waiver of the 165
exemption privilege for that year, except as provided in 166
subsection (7) or subsection (9). 167
(14) Notwithstanding paragraph (7)(a), an applicant who is 168
eligible to receive an exemption under s. 196.034 must file an 169
application each year by March 1. Such application must include 170
the address of the property at which the ow ner currently 171
receives a homestead exemption, and an executed copy of the 172
lease for the property to be exempted under s. 196.034. 173
Section 3. Section 196.034, Florida Statutes, is created 174
to read: 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
196.034 Exemption of certain residential property subj ect 176
to a long-term lease.— 177
(1)(a) Property that meets the following conditions is 178
entitled to an exemption from all taxation up to the assessed 179
valuation of $25,000: 180
1. The owner of the property holds the legal or equitable 181
title to a separate parcel t hat receives the exemption under s. 182
196.031 and such parcel is his or her permanent residence. 183
2. As of January 1 of the taxable year, the property is 184
rented by the owner to one or more persons for residential use 185
under a bona fide written lease that has a duration of 6 months 186
or more. 187
3. The property would otherwise qualify for a homestead 188
exemption under to s. 196.031 if the property were the owner's 189
primary residence. 190
(b) Every property that qualifies to receive the exemption 191
provided in paragraph (a) is entitled to an additional exemption 192
of up to $25,000 on the assessed valuation greater than $50,000 193
for all levies other than school district levies. 194
(c) Any property that does not meet the conditions of 195
paragraph (a) for a given year may not rece ive the benefits 196
provided in paragraphs (a) and (b) for such year unless 197
subsection (2) applies, but the property may receive the 198
benefits in paragraphs (a) and (b) in any future year for which 199
all conditions in paragraph (a) are met. 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(2) For purposes of this section, when property exempted 201
under this section is damaged or destroyed by misfortune or 202
calamity and the property is uninhabitable on the January 1 203
after the damage or destruction occurs, the property shall be 204
considered to be subject to a long -term lease on January 1 and 205
an existing exemption under this section shall continue if the 206
property is otherwise qualified and if the property owner 207
notifies the property appraiser that he or she intends to repair 208
or rebuild the property and the existing or another lessee will 209
resume residency after the property is repaired or rebuilt. 210
Failure by the property owner to commence the repair or 211
rebuilding of the property within 5 years after the January 1 212
following the property's damage or destruction constitute s 213
abandonment of the property as exempt under this section. After 214
the 5-year period, the expiration, lapse, nonrenewal, or 215
revocation of a building permit issued to the property owner for 216
such repairs or rebuilding also constitutes abandonment of the 217
property under this section. 218
Section 4. Subsection (1) of section 193.1554, Florida 219
Statutes, is amended to read: 220
193.1554 Assessment of nonhomestead residential property. — 221
(1) As used in this section, the term "nonhomestead 222
residential property" means residential real property that 223
contains nine or fewer dwelling units, including vacant property 224
zoned and platted for residential use, and that does not receive 225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
the exemption under s. 196.031 or s. 196.034. 226
Section 5. Paragraph (a) of subsection (1) of section 227
194.032, Florida Statutes, is amended to read: 228
194.032 Hearing purposes; timetable. — 229
(1)(a) The value adjustment board shall meet not earlier 230
than 30 days and not later than 60 days after the mailing of the 231
notice provided in s. 194.011(1); however, no board hearing 232
shall be held before approval of all or any part of the 233
assessment rolls by the Department of Revenue. The board shall 234
meet for the following purposes: 235
1. Hearing petitions relating to assessments filed 236
pursuant to s. 194.011(3) . 237
2. Hearing complaints relating to homestead exemptions as 238
provided for under s. 196.151. 239
3. Hearing appeals from exemptions denied, or disputes 240
arising from exemptions granted, upon the filing of exemption 241
applications under s. 196.011. 242
4. Hearing appeals concerning ad valorem tax deferrals and 243
classifications. 244
5. Hearing appeals from determinations that a change of 245
ownership under s. 193.155(3), a change of ownership or control 246
under s. 193.1553(4), s. 193.1554(5), or s. 193.1555(5), or a 247
qualifying improvement under s. 193.1555(5) has occurred. 248
Section 6. This act shall take effect on the effective 249
date of the amendment to the State Constitution proposed by HJR 250
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1257 or a similar joint resolution having substantially the same 251
specific intent and purpose, if such amendment is approved at 252
the next general election. 253