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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 benefits for 2
residential properties; creating s. 193.1553, F.S.; 3
providing that property that receives a certain tax 4
exemption shall be assessed in a specified manner; 5
providing that changes, additions, and improvements to 6
such property shall be assessed in a specified manner; 7
providing exceptions and alternative assessments; 8
providing construction; requiring property that no 9
longer meets eligibility requirements to be assessed 10
in an alternative manner; providing that erron eous 11
assessments of property may be corrected in a 12
specified manner; requiring the property appraiser to 13
remove certain assessment limitations and exemptions 14
in specified circumstances; requiring the property 15
appraiser to assess certain property and recalc ulate 16
taxes; requiring payment of certain back taxes, 17
penalties, and interest; requiring the property 18
appraiser to serve notice upon an owner and file a 19
lien in certain circumstances; requiring a specified 20
time period before a lien may be filed; amending s . 21
196.011, F.S.; requiring the submission of an 22
application containing specified information before 23
receiving specified tax exemptions; creating s. 24
196.034, F.S.; providing specified tax exemptions for 25
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property that meets certain eligibility requirements; 26
providing that certain damaged or destroyed property 27
is eligible for the exemption if specified conditions 28
are met; providing that if such conditions are not 29
met, such property shall be considered abandoned for a 30
specified purpose; creating s. 196.078, F.S .; defining 31
the term "first-time Florida homesteader"; providing 32
construction; providing that every first -time Florida 33
homesteader is entitled to an additional homestead 34
exemption; providing the method for calculating such 35
exemption; providing the duration of such exemption; 36
requiring the exemption to decrease by a specified 37
percentage each year; prohibiting more than one 38
exemption; providing applicability; providing that the 39
property appraiser shall require a person claiming an 40
exemption to complete a cert ain form by a specified 41
date; requiring a person added to the title to submit 42
certain information to retain such exemption; 43
providing applicability; authorizing the Department of 44
Revenue to adopt emergency rules; providing that such 45
rules are effective for a specified period of time and 46
may be renewed in certain circumstances; providing for 47
future expiration; amending ss. 193.1554 and 194.032, 48
F.S.; conforming provisions to changes made by the 49
act; providing a contingent effective date. 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
51
Be It Enacted by the Legislature of the State of Florida: 52
53
Section 1. Section 193.1553, Florida Statutes, is created 54
to read: 55
193.1553 Assessment of certain residential property 56
subject to a long-term lease.— 57
(1) Property that receives the exemption under s. 196. 034 58
shall be assessed under this section. 59
(2) Except as provided in subsection (4), property that 60
meets the conditions of subsection (1) shall be assessed 61
pursuant to this section as of January 1 of any year for which 62
the property is eligible for assessm ent under this section, 63
using the prior year's assessed value as the basis for any 64
change in assessment. Any change resulting from such assessment 65
shall not exceed the lower of the following: 66
(a) Three percent of the assessed value of the property 67
for the prior year; or 68
(b) The percentage change in the Consumer Price Index for 69
All Urban Consumers, U.S. City Average, all items 1967=100, or 70
successor reports for the preceding calendar year as initially 71
reported by the United States Department of Labor, Bu reau of 72
Labor Statistics. 73
(3) If the assessed value of the property as calculated 74
under subsection (2) exceeds the just value, the assessed value 75
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of the property shall be lowered to the just value of the 76
property. 77
(4) Property assessed under this secti on shall be assessed 78
at just value as of January 1 of the year following a change of 79
ownership, or as of January 1 of the year following abandonment 80
of homestead on a property that becomes eligible for assessment 81
under this section, but no sooner than the January 1 following 82
the certification to the property appraiser required by s. 83
193.155(8)(i)2. Thereafter, the annual changes in the assessed 84
value of the property are subject to the limitations in 85
subsections (2) and (3). For purposes of this subsection, the 86
term "change of ownership" means any sale, foreclosure, or 87
transfer of legal title or beneficial title in equity to any 88
person, except if any of the provisions of s. 193.155(3)(a) 89
apply. 90
(5)(a) Except as provided in paragraph (b) and s. 193.624, 91
changes, additions, or improvements to property subject to this 92
section shall be assessed at just value as of the first January 93
1 after the changes, additions, or improvements are 94
substantially completed. 95
(b)1. Changes, additions, or improvements that replac e all 96
or a portion of property assessed under this section, including 97
ancillary improvements, that are damaged or destroyed by 98
misfortune or calamity shall be assessed upon substantial 99
completion as provided in this paragraph. Such assessment must 100
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be calculated using the property's assessed value as of the 101
January 1 immediately before the date on which the damage or 102
destruction was sustained, subject to the assessment limitations 103
in subsections (2) and (3), when: 104
a. The square footage of the property as c hanged or 105
improved does not exceed 110 percent of the square footage of 106
the property before the damage or destruction; or 107
b. The total square footage of the property as changed or 108
improved does not exceed 1,500 square feet. 109
2. The property's assessed value must be increased by the 110
just value of that portion of the changed or improved property 111
which is in excess of 110 percent of the square footage of the 112
property before the damage or destruction or of that portion 113
exceeding 1,500 square feet. 114
3. Property damaged or destroyed by misfortune or calamity 115
which, after being changed or improved, has a square footage of 116
less than 100 percent of the property's total square footage 117
before the damage or destruction shall be assessed pursuant to 118
subsection (6). 119
4. Changes, additions, or improvements assessed pursuant 120
to this paragraph must be reassessed pursuant to subsection (2) 121
in subsequent years. This paragraph applies to changes, 122
additions, or improvements commenced within 5 years after the 123
January 1 following the damage or destruction of the property. 124
(c) Changes, additions, or improvements include 125
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improvements made to common areas or other improvements made to 126
property other than to the property by the owner or by an owner 127
association, which improvement s directly benefit the property. 128
Such changes, additions, or improvements shall be assessed at 129
just value, and the just value shall be apportioned among the 130
parcels benefiting from the improvement. 131
(6) When property is destroyed or removed and not 132
replaced, the assessed value of the parcel shall be reduced by 133
the assessed value attributable to the destroyed or removed 134
property. 135
(7) Only property that meets the conditions of subsection 136
(1) is subject to this section. Any portion of property that is 137
assessed solely on the basis of character or use pursuant to s. 138
193.461 or s. 193.501, or assessed pursuant to s. 193.505, is 139
not subject to this section. 140
(8)(a) If, after meeting the conditions of subsection (1) 141
and receiving the benefit of the assessment li mitation in 142
subsections (2) and (3), the property does not meet the 143
conditions of subsection (1) on January 1 of any subsequent 144
year, the property shall instead be assessed pursuant to s. 145
193.155(1) and (2), or s. 193.1554(3) and (4), as applicable, 146
beginning with such year. 147
1. Any change in assessment in the first year the property 148
is assessed pursuant to s. 193.1554 shall use the most recent 149
year's assessed value under this section as the basis for 150
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adjustment, and may not revert to just value, unless th e 151
property experiences a change of ownership or control as 152
provided in s. 193.1554. 153
2. Any change in assessment in the first year the property 154
is assessed pursuant to s. 193.155 shall use the just value of 155
the property, as adjusted pursuant to s. 193.155 (8), if 156
applicable. 157
(b)1. If the property meets the conditions of subsection 158
(1) on January 1 of a subsequent year, this section shall apply 159
beginning with such year, and the application of the limitation 160
in subsection (2) shall use the most recent year' s assessed 161
value as the basis for adjustment if the property was assessed 162
in the most recent year pursuant to s. 193.1554. 163
2. If the property meets the conditions of subsection (1) 164
on January 1 of a subsequent year and the property was assessed 165
as the homestead of the owner in the prior year pursuant to s. 166
193.155, then the application of the limitation in subsection 167
(2) shall use the just value of the property, rather than the 168
prior year's assessment, for the first year's assessment 169
limitation in subsect ion (2). A property that was abandoned as a 170
homestead is only eligible under this section if the property 171
appraiser in the county in which the abandoned homestead 172
property is located provides the certification to the property 173
appraiser in the county in whi ch the new homestead is located as 174
required by s. 193.155(8)(i)2., stating that the property has 175
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been or will be reassessed at just value. 176
(9) Erroneous assessments of property assessed under this 177
section may be corrected in the following manner: 178
(a) If errors are made in arriving at any assessment under 179
this section due to a material mistake of fact concerning an 180
essential characteristic of the property, the just value and 181
assessed value must be recalculated for every such year, 182
including the year in w hich the mistake occurred. 183
(b) If changes, additions, or improvements are not 184
assessed at just value as of the first January 1 after they were 185
substantially completed, the property appraiser shall determine 186
the just value for such changes, additions, or improvements for 187
the year they were substantially completed. Assessments for 188
subsequent years shall be corrected, applying this section if 189
applicable. 190
(c) When a person entitled to exemption pursuant to s. 191
196.034 inadvertently receives the limitation pu rsuant to this 192
section following a change of ownership, the assessment of such 193
property must be corrected as provided in paragraph (a), and the 194
person need not pay the unpaid taxes, penalties, or interest. 195
(d) If the property appraiser improperly grants the 196
property assessment limitation as a result of a clerical mistake 197
or an omission, the person or entity improperly receiving the 198
property assessment limitation may not be assessed a penalty or 199
interest. Back taxes shall apply only as follows: 200
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1. If the person who received the limitation as a result 201
of a clerical mistake or omission voluntarily discloses to the 202
property appraiser that he or she was not entitled to the 203
limitation before the property appraiser notifies the owner of 204
the mistake or omission , no back taxes shall be due. 205
2. If the person who received the limitation as a result 206
of a clerical mistake or omission does not voluntarily disclose 207
to the property appraiser that he or she was not entitled to the 208
limitation before the property apprais er notifies the owner of 209
the mistake or omission, back taxes shall be due for any year or 210
years that the owner was not entitled to the limitation within 211
the 5 years before the property appraiser notified the owner of 212
the mistake or omission. 213
(e) If back taxes are due pursuant to s. 193.092, the 214
corrections made pursuant to this subsection shall be used to 215
calculate such back taxes. 216
(10)(a) If the property appraiser determines that for any 217
year or years within the prior 10 years a person was granted a 218
limitation under this section due to an application that was 219
fraudulent at the time the application was submitted to the 220
property appraiser's office, the property appraiser shall remove 221
all assessment limitations and exemptions under s. 196.034 on 222
the property for the year such fraud occurred and assess the 223
property for that year at just value, then recalculate the value 224
for all subsequent years using applicable limitations and 225
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exemptions. The owner shall be liable for back taxes for the 226
year the fraud occurr ed and all subsequent years through the 227
current year, a penalty of 100 percent of the unpaid taxes for 228
each year, and 15 percent interest per annum. 229
(b) The property appraiser shall serve upon an owner who 230
owes back taxes under this subsection a notice o f intent to 231
record in the public records of the county a notice of tax lien 232
against any property owned by that person in the county, and 233
such property must be identified in the notice of tax lien. The 234
property appraiser must include with such notice inform ation 235
explaining why the owner is not entitled to the limitation, the 236
years for which unpaid taxes are due, and the manner in which 237
unpaid taxes have been calculated. Before a lien may be filed, 238
the person or entity so notified must be given 30 days to pay 239
the taxes. 240
Section 2. Paragraph (b) of subsection (1) of section 241
196.011, Florida Statutes, is amended, and subsection (14) is 242
added to that section, to read: 243
196.011 Annual application required for exemption. — 244
(1) 245
(b) The form to apply for an ex emption under s. 196.031, 246
s. 196.034, s. 196.078, s. 196.081, s. 196.091, s. 196.101, s. 247
196.102, s. 196.173, or s. 196.202 must include a space for the 248
applicant to list the social security number of the applicant 249
and of the applicant's spouse, if any. If an applicant files a 250
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timely and otherwise complete application, and omits the 251
required social security numbers, the application is incomplete. 252
In that event, the property appraiser shall contact the 253
applicant, who may refile a complete application by Apri l 1. 254
Failure to file a complete application by that date constitutes 255
a waiver of the exemption privilege for that year, except as 256
provided in subsection (7) or subsection (9). 257
(14) Notwithstanding paragraphs (7)(a) and (10)(a), an 258
applicant who is eligib le to receive an exemption under s. 259
196.034 must file an application each year by March 1. Such 260
application must include the address of the property at which 261
the owner currently receives a homestead exemption, and an 262
executed copy of the lease for the prop erty to be exempted under 263
s. 196.034. 264
Section 3. Section 196.034, Florida Statutes, is created 265
to read: 266
196.034 Exemption of certain residential property subject 267
to a long-term lease.— 268
(1)(a) Property that meets the following conditions is 269
entitled to an exemption from all taxation up to the assessed 270
valuation of $25,000: 271
1. The owner of the property holds the legal or equitable 272
title to a separate parcel that receives the exemption under s. 273
196.031 and such parcel is his or her permanent residence. 274
2. The property is owned through sole ownership or joint 275
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ownership with a spouse, or indirectly through a limited 276
liability company that holds legal or equitable title to such 277
real estate if such limited liability company is owned solely or 278
jointly with a spouse. 279
3. As of January 1 of the taxable year, the property is 280
rented by the owner to one or more natural persons for 281
residential use under a bona fide written lease that has a 282
continuous duration of 6 months or more and, by the terms of th e 283
lease, may not be subleased during the rental period. 284
4. The entire parcel of property would otherwise qualify 285
for a homestead exemption under s. 196.031 if the property were 286
the owner's permanent residence. 287
5. The property is classified under s. 195 .073(1)(a)1., 288
2., or 4. 289
6. The lessee of the property is not married to the owner 290
of the property. 291
(b) Every property that qualifies to receive the exemption 292
provided in paragraph (a) is entitled to an additional exemption 293
of up to $25,000 on the asses sed valuation greater than $50,000 294
for all levies other than school district levies. 295
(c) Any property that does not meet the conditions of 296
paragraph (a) for a given year may not receive the benefits 297
provided in paragraphs (a) and (b) for such year unless 298
subsection (2) applies, but the property may receive the 299
benefits in paragraphs (a) and (b) in any future year for which 300
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all conditions in paragraph (a) are met. 301
(2) For purposes of this section, when property exempted 302
under this section is damaged or d estroyed by misfortune or 303
calamity and the property is uninhabitable on the January 1 304
after the damage or destruction occurs, the property shall be 305
considered to be subject to a long -term lease on January 1 and 306
an existing exemption under this section shal l continue if the 307
property is otherwise qualified and if the property owner 308
notifies the property appraiser that he or she intends to repair 309
or rebuild the property and the existing or another lessee will 310
resume residency after the property is repaired or rebuilt. 311
Failure by the property owner to commence the repair or 312
rebuilding of the property within 5 years after the January 1 313
following the property's damage or destruction constitutes 314
abandonment of the property as exempt under this section. After 315
the 5-year period, the expiration, lapse, nonrenewal, or 316
revocation of a building permit issued to the property owner for 317
such repairs or rebuilding also constitutes abandonment of the 318
property under this section. 319
Section 4. Section 196.078, Florida Statutes , is created 320
to read: 321
196.078 Additional homestead exemption for a first -time 322
Florida homesteader. — 323
(1) As used in this section, the term "first -time Florida 324
homesteader" means a person who establishes the right to receive 325
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the homestead exemption provi ded in s. 196.031 within 1 year 326
after purchasing the homestead property and who has not owned 327
property to which the homestead exemption provided in s. 328
196.031(1)(a) applied in the 4 calendar years before such 329
purchase. 330
(2) For purposes of this section, t he date on which the 331
deed or other transfer instrument was signed and notarized or 332
otherwise executed shall be considered the date a property was 333
purchased. 334
(3) Every first-time Florida homesteader is entitled to an 335
additional homestead exemption in an a mount equal to 50 percent 336
of the homestead property's just value on January 1 of the year 337
the homestead is established, for all levies other than school 338
district levies. The additional exemption may not exceed the 339
median just value for homestead property d uring the calendar 340
year immediately preceding January 1 of the year the homestead 341
is established in the county where such property is located. The 342
additional exemption applies for a period of 5 years or until 343
the year the property is sold, whichever occurs first. The 344
amount of the additional exemption shall be reduced in each 345
subsequent year by an amount equal to 20 percent of the amount 346
of the additional exemption received in the year the homestead 347
was established. Only one exemption provided under this 348
subsection is allowed per homestead property. The additional 349
exemption applies to property purchased on or after January 1, 350
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2027, but the additional exemption is not available in the sixth 351
and subsequent years after it is first received. 352
(4) The property appraiser shall require a first -time 353
Florida homesteader claiming an exemption under this section to 354
submit, not later than March 1 on a form prescribed by the 355
Department of Revenue, a sworn statement attesting that the 356
taxpayer, and each other person who h olds legal or equitable 357
title to the property, has not owned property to which the 358
homestead exemption provided in s. 196.031(1)(a) applied in the 359
4 calendar years before such purchase. In order for the 360
exemption to be retained upon the addition of another person to 361
the title to the property, the person added must also submit, 362
not later than the subsequent March 1 on a form prescribed by 363
the department, a sworn statement attesting that he or she has 364
not owned property to which the homestead exemption provid ed in 365
s. 196.031(1)(a) applied in the 4 calendar years before being 366
added to the title. 367
(5) Sections 196.131, 196.151, and 196.161 apply to the 368
exemption provided in this section. 369
Section 5. (1) The Department of Revenue may, and all 370
conditions are deemed met to, adopt emergency rules pursuant to 371
s. 120.54(4), Florida Statutes, for the purpose of implementing 372
ss. 193.1553, 196.034, and 196.078, Florida Statutes, as created 373
by this act. Notwithstanding any other law, emergency rules 374
adopted pursuant to this section are effective for 6 months 375
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after adoption and may be renewed during the pendency of 376
procedures to adopt permanent rules addressing the subject of 377
the emergency rules. 378
(2) This section shall take effect the day after the 379
Department of State certifies, pursuant to s. 102.112, Florida 380
Statutes, the approval of the amendment to the State 381
Constitution proposed by HJR 1257 or a similar joint resolution 382
having substantially the same specific intent and purpose, if 383
such amendment is approved at the next general election, and 384
shall expire July 1, 2029. 385
Section 6. Subsection (1) of section 193.1554, Florida 386
Statutes, is amended to read: 387
193.1554 Assessment of nonhomestead residential property. — 388
(1) As used in this section, the term "nonhomeste ad 389
residential property" means residential real property that 390
contains nine or fewer dwelling units, including vacant property 391
zoned and platted for residential use, and that does not receive 392
the exemption under s. 196.031 or s. 196.034. 393
Section 7. Paragraph (a) of subsection (1) of section 394
194.032, Florida Statutes, is amended to read: 395
194.032 Hearing purposes; timetable. — 396
(1)(a) The value adjustment board shall meet not earlier 397
than 30 days and not later than 60 days after the mailing of the 398
notice provided in s. 194.011(1); however, no board hearing 399
shall be held before approval of all or any part of the 400
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assessment rolls by the Department of Revenue. The board shall 401
meet for the following purposes: 402
1. Hearing petitions relating to assessments fi led 403
pursuant to s. 194.011(3). 404
2. Hearing complaints relating to homestead exemptions as 405
provided for under s. 196.151. 406
3. Hearing appeals from exemptions denied, or disputes 407
arising from exemptions granted, upon the filing of exemption 408
applications under s. 196.011. 409
4. Hearing appeals concerning ad valorem tax deferrals and 410
classifications. 411
5. Hearing appeals from determinations that a change of 412
ownership under s. 193.155(3), a change of ownership or control 413
under s. 193.1553(4), s. 193.1554(5), or s. 193.1555(5), or a 414
qualifying improvement under s. 193.1555(5) has occurred. 415
Section 8. This act shall take effect on the effective 416
date of the amendment to the State Constitution proposed by HJR 417
1257 or a similar joint resolution having substantially the same 418
specific intent and purpose , if such amendment is approved at 419
the next general election. 420