Bill Text: FL S1254 | 2021 | Regular Session | Comm Sub
Bill Title: Ad Valorem Assessments
Spectrum: Bipartisan Bill
Status: (Failed) 2021-04-30 - Died in Appropriations, companion bill(s) passed, see HB 7061 (Ch. 2021-31) [S1254 Detail]
Download: Florida-2021-S1254-Comm_Sub.html
Florida Senate - 2021 CS for SB 1254 By the Committee on Finance and Tax; and Senator Bean 593-03638-21 20211254c1 1 A bill to be entitled 2 An act relating to ad valorem assessments; amending s. 3 193.155, F.S.; adding exceptions to the definition of 4 the term “change of ownership” for purposes of a 5 certain homestead assessment limitation; providing 6 that changes, additions, or improvements, including 7 ancillary improvements, to homestead property damaged 8 or destroyed by misfortune or calamity must be 9 assessed upon substantial completion; specifying that 10 the assessed value of the replaced homestead property 11 must be calculated using the assessed value of the 12 homestead property on a certain date before the date 13 on which the damage or destruction was sustained; 14 providing that certain changes, additions, or 15 improvements must be reassessed at just value in 16 subsequent years; amending s. 193.1554, F.S.; 17 providing that changes, additions, or improvements, 18 including ancillary improvements, to nonhomestead 19 residential property damaged or destroyed by 20 misfortune or calamity must be assessed upon 21 substantial completion; specifying that the assessed 22 value of the replaced nonhomestead residential 23 property must be calculated using the assessed value 24 of the nonhomestead residential property on a certain 25 date before the date on which the damage or 26 destruction was sustained; providing that certain 27 changes, additions, or improvements must be reassessed 28 at just value in subsequent years; amending s. 29 193.1555, F.S.; providing that changes, additions, or 30 improvements, including ancillary improvements, to 31 certain nonresidential real property damaged or 32 destroyed by misfortune or calamity must be assessed 33 upon substantial completion; specifying that the 34 assessed value of the replaced nonresidential real 35 property shall be calculated using the assessed value 36 of the residential and nonresidential real property on 37 a certain date before the date on which the damage or 38 destruction was sustained; providing that certain 39 changes, additions, or improvements must be reassessed 40 at just value in subsequent years; reenacting s. 41 193.1557, F.S., relating to assessment of property 42 damaged or destroyed by Hurricane Michael, to 43 incorporate amendments made by this act in references 44 thereto; providing construction; requiring the 45 property appraiser to determine assessments for 46 certain changes, additions, or improvements for the 47 year they were substantially completed and recalculate 48 the just and assessed value for subsequent years under 49 certain circumstances; providing applicability; 50 providing an effective date. 51 52 Be It Enacted by the Legislature of the State of Florida: 53 54 Section 1. Paragraph (a) of subsection (3) and paragraph 55 (b) of subsection (4) of section 193.155, Florida Statutes, are 56 amended to read: 57 193.155 Homestead assessments.—Homestead property shall be 58 assessed at just value as of January 1, 1994. Property receiving 59 the homestead exemption after January 1, 1994, shall be assessed 60 at just value as of January 1 of the year in which the property 61 receives the exemption unless the provisions of subsection (8) 62 apply. 63 (3)(a) Except as provided in this subsection or subsection 64 (8), property assessed under this section shall be assessed at 65 just value as of January 1 of the year following a change of 66 ownership. Thereafter, the annual changes in the assessed value 67 of the property are subject to the limitations in subsections 68 (1) and (2). For the purpose of this section, a change of 69 ownership means any sale, foreclosure, or transfer of legal 70 title or beneficial title in equity to any person, except if any 71 of the following apply: 72 1. Subsequent to the change or transfer, the same person is 73 entitled to the homestead exemption as was previously entitled 74 and: 75 a. The transfer of title is to correct an error; 76 b. The transfer is between legal and equitable title or 77 equitable and equitable title and no additional person applies 78 for a homestead exemption on the property; 79 c. The change or transfer is by means of an instrument in 80 which the owner is listed as both grantor and grantee of the 81 real property and one or more other individuals are additionally 82 named as grantee. However, if any individual who is additionally 83 named as a grantee applies for a homestead exemption on the 84 property, the application is considered a change of ownership; 85or86 d. The change or transfer is by means of an instrument in 87 which the owner entitled to the homestead exemption is listed as 88 both grantor and grantee of the real property and one or more 89 other individuals, all of whom held title as joint tenants with 90 rights of survivorship with the owner, are named only as 91 grantors and are removed from the title; or 92 e. The person is a lessee entitled to the homestead 93 exemption under s. 196.041(1). 94 2. Legal or equitable title is changed or transferred 95 between husband and wife, including a change or transfer to a 96 surviving spouse or a transfer due to a dissolution of marriage; 97 3. The transfer occurs by operation of law to the surviving 98 spouse or minor child or children under s. 732.401;or99 4. Upon the death of the owner, the transfer is between the 100 owner and another who is a permanent resident and who is legally 101 or naturally dependent upon the owner; or 102 5. The transfer occurs with respect to a property where all 103 of the following apply: 104 a. Multiple owners hold title as joint tenants with rights 105 of survivorship; 106 b. One or more owners were entitled to and received the 107 homestead exemption on the property; 108 c. The death of one or more owners occurs; and 109 d. Subsequent to the transfer, the surviving owner or 110 owners previously entitled to and receiving the homestead 111 exemption continue to be entitled to and receive the homestead 112 exemption. 113 (4) 114 (b)1. Changes, additions, or improvements that replace all 115 or a portion of homestead property, including ancillary 116 improvements, damaged or destroyed by misfortune or calamity 117 shall be assessed upon substantial completion as provided in 118 this paragraph. Such assessment must be calculated usingshall119not increasethe homestead property’s assessed value as of the 120 January 1 immediately before the date on which the damage or 121 destruction was sustained, subject to the assessment limitations 122 in subsections (1) and (2), when: 123 a. The square footage of the homestead property as changed 124 or improved does not exceed 110 percent of the square footage of 125 the homestead property before the damage or destruction; or.126 b.Additionally, the homestead property’s assessed value127shall not increase ifThe total square footage of the homestead 128 property as changed or improved does not exceed 1,500 square 129 feet.Changes, additions, or improvements that do not cause the130total to exceed 110 percent of the total square footage of the131homestead property before the damage or destruction or that do132not cause the total to exceed 1,500 total square feet shall be133reassessed as provided under subsection (1).134 2. The homestead property’s assessed value mustshallbe 135 increased by the just value of that portion of the changed or 136 improved homestead property which is in excess of 110 percent of 137 the square footage of the homestead property before the damage 138 or destruction or of that portion exceeding 1,500 square feet. 139 140 Changes, additions, or improvements assessed pursuant to this 141 paragraph must be reassessed pursuant to subsection (1) in 142 subsequent years. 143 3. Homestead property damaged or destroyed by misfortune or 144 calamity which, after being changed or improved, has a square 145 footage of less than 100 percent of the homestead property’s 146 total square footage before the damage or destruction shall be 147 assessed pursuant to subsection (5). 148 4. This paragraph applies to changes, additions, or 149 improvements commenced within 3 years after the January 1 150 following the damage or destruction of the homestead. 151 Section 2. Paragraph (b) of subsection (6) of section 152 193.1554, Florida Statutes, is amended to read: 153 193.1554 Assessment of nonhomestead residential property.— 154 (6) 155 (b)1. Changes, additions, or improvements that replace all 156 or a portion of nonhomestead residential property, including 157 ancillary improvements, damaged or destroyed by misfortune or 158 calamity must be assessed upon substantial completion as 159 provided in this paragraph. Such assessment must be calculated 160 usingshallnot increasethe nonhomestead property’s assessed 161 value as of the January 1 immediately before the date on which 162 the damage or destruction was sustained, subject to the 163 assessment limitations in subsections (3) and (4), when: 164 a. The square footage of the property as changed or 165 improved does not exceed 110 percent of the square footage of 166 the property before the damage or destruction; or.167 b.Additionally, the property’s assessed value shall not168increase ifThe total square footage of the property as changed 169 or improved does not exceed 1,500 square feet.Changes,170additions, or improvements that do not cause the total to exceed171110 percent of the total square footage of the property before172the damage or destruction or that do not cause the total to173exceed 1,500 total square feet shall be reassessed as provided174under subsection (3).175 2. The property’s assessed value mustshallbe increased by 176 the just value of that portion of the changed or improved 177 property which is in excess of 110 percent of the square footage 178 of the property before the damage or destruction or of that 179 portion exceeding 1,500 square feet. 180 181 Changes, additions, or improvements assessed pursuant to this 182 paragraph shall be reassessed pursuant to subsection (3) in 183 subsequent years. 184 3. Property damaged or destroyed by misfortune or calamity 185 which, after being changed or improved, has a square footage of 186 less than 100 percent of the property’s total square footage 187 before the damage or destruction shall be assessed pursuant to 188 subsection (8). 189 4. This paragraph applies to changes, additions, or 190 improvements commenced within 3 years after the January 1 191 following the damage or destruction of the property. 192 Section 3. Paragraph (b) of subsection (6) of section 193 193.1555, Florida Statutes, is amended to read: 194 193.1555 Assessment of certain residential and 195 nonresidential real property.— 196 (6) 197 (b)1. Changes, additions, or improvements that replace all 198 or a portion of nonresidential real property, including 199 ancillary improvements, damaged or destroyed by misfortune or 200 calamity must be assessed upon substantial completion as 201 provided in this paragraph. Such assessment must be calculated 202 usingshallnot increasethe nonresidential real property’s 203 assessed value as of the January 1 immediately before the date 204 on which the damage or destruction was sustained, subject to the 205 assessment limitations in subsections (3) and (4), when: 206 a. The square footage of the property as changed or 207 improved does not exceed 110 percent of the square footage of 208 the property before the damage or destruction; and 209 b. The changes, additions, or improvements do not change 210 the property’s character or use.Changes, additions, or211improvements that do not cause the total to exceed 110 percent212of the total square footage of the property before the damage or213destruction and do not change the property’s character or use214shall be reassessed as provided under subsection (3).215 2. The property’s assessed value mustshallbe increased by 216 the just value of that portion of the changed or improved 217 property which is in excess of 110 percent of the square footage 218 of the property before the damage or destruction. 219 220 Changes, additions, or improvements assessed pursuant to this 221 paragraph must be reassessed pursuant to subsection (3) in 222 subsequent years. 223 3. Property damaged or destroyed by misfortune or calamity 224 which, after being changed or improved, has a square footage of 225 less than 100 percent of the property’s total square footage 226 before the damage or destruction shall be assessed pursuant to 227 subsection (8). 228 4. This paragraph applies to changes, additions, or 229 improvements commenced within 3 years after the January 1 230 following the damage or destruction of the property. 231 Section 4. For the purpose of incorporating the amendments 232 made by this act to sections 193.155, 193.1554, and 193.1555, 233 Florida Statutes, in references thereto, section 193.1557, 234 Florida Statutes, is reenacted to read: 235 193.1557 Assessment of certain property damaged or 236 destroyed by Hurricane Michael.—For property damaged or 237 destroyed by Hurricane Michael in 2018, s. 193.155(4)(b), s. 238 193.1554(6)(b), or s. 193.1555(6)(b) applies to changes, 239 additions, or improvements commenced within 5 years after 240 January 1, 2019. This section applies to the 2019-2023 tax rolls 241 and shall stand repealed on December 31, 2023. 242 Section 5. The amendments made by this act to sections 243 193.155(4), 193.1554, and 193.1555, Florida Statutes, are 244 remedial and clarifying in nature, but the amendments may not 245 affect any assessment for tax rolls before 2021 unless the 246 assessment is under review by a value adjustment board or a 247 Florida court as of the effective date of this act. If changes, 248 additions, or improvements that replaced all or a portion of 249 property damaged or destroyed by misfortune or calamity were not 250 assessed in accordance with this act as of the January 1 251 immediately after they were substantially completed, the 252 property appraiser must determine the assessment for the year 253 they were substantially completed and recalculate the just and 254 assessed value for each subsequent year so that the 2021 tax 255 roll and subsequent tax rolls will be corrected. 256 Section 6. This act applies to assessments made on or after 257 January 1, 2021. 258 Section 7. This act shall take effect July 1, 2021.