Bill Text: FL S1376 | 2024 | Regular Session | Introduced
Bill Title: Establishment of a New Homestead
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-03-08 - Died in Community Affairs [S1376 Detail]
Download: Florida-2024-S1376-Introduced.html
Florida Senate - 2024 SB 1376 By Senator Wright 8-01039-24 20241376__ 1 A bill to be entitled 2 An act relating to establishment of a new homestead; 3 amending s. 193.155, F.S.; requiring that homestead 4 property be assessed below just value in certain 5 circumstances; limiting the amount of such assessment; 6 providing a contingent effective date. 7 8 Be It Enacted by the Legislature of the State of Florida: 9 10 Section 1. Section 193.155, Florida Statutes, is amended to 11 read: 12 193.155 Homestead assessments.—Homestead property shall be 13 assessed at just value as of January 1, 1994. Property receiving 14 the homestead exemption after January 1, 1994, shall be assessed 15 at just value as of January 1 of the year in which the property 16 receives the exemption unless the provisions of subsection (8) 17 or subsection (11) apply. 18 (1) Beginning in 1995, or the year following the year the 19 property receives homestead exemption, whichever is later, the 20 property shall be reassessed annually on January 1. Any change 21 resulting from such reassessment shall not exceed the lower of 22 the following: 23 (a) Three percent of the assessed value of the property for 24 the prior year; or 25 (b) The percentage change in the Consumer Price Index for 26 All Urban Consumers, U.S. City Average, all items 1967=100, or 27 successor reports for the preceding calendar year as initially 28 reported by the United States Department of Labor, Bureau of 29 Labor Statistics. 30 (2) If the assessed value of the property as calculated 31 under subsection (1) exceeds the just value, the assessed value 32 of the property shall be lowered to the just value of the 33 property. 34 (3)(a) Except as provided in this subsection or subsection 35 (8), property assessed under this section shall be assessed at 36 just value as of January 1 of the year following a change of 37 ownership. Thereafter, the annual changes in the assessed value 38 of the property are subject to the limitations in subsections 39 (1) and (2). For the purpose of this section, a change of 40 ownership means any sale, foreclosure, or transfer of legal 41 title or beneficial title in equity to any person, except if any 42 of the following apply: 43 1. Subsequent to the change or transfer, the same person is 44 entitled to the homestead exemption as was previously entitled 45 and: 46 a. The transfer of title is to correct an error; 47 b. The transfer is between legal and equitable title or 48 equitable and equitable title and no additional person applies 49 for a homestead exemption on the property; 50 c. The change or transfer is by means of an instrument in 51 which the owner is listed as both grantor and grantee of the 52 real property and one or more other individuals are additionally 53 named as grantee. However, if any individual who is additionally 54 named as a grantee applies for a homestead exemption on the 55 property, the application is considered a change of ownership; 56 d. The change or transfer is by means of an instrument in 57 which the owner entitled to the homestead exemption is listed as 58 both grantor and grantee of the real property and one or more 59 other individuals, all of whom held title as joint tenants with 60 rights of survivorship with the owner, are named only as 61 grantors and are removed from the title; or 62 e. The person is a lessee entitled to the homestead 63 exemption under s. 196.041(1); 64 2. Legal or equitable title is changed or transferred 65 between husband and wife, including a change or transfer to a 66 surviving spouse or a transfer due to a dissolution of marriage; 67 3. The transfer occurs by operation of law to the surviving 68 spouse or minor child or children under s. 732.401; 69 4. Upon the death of the owner, the transfer is between the 70 owner and another who is a permanent resident and who is legally 71 or naturally dependent upon the owner; or 72 5. The transfer occurs with respect to a property where all 73 of the following apply: 74 a. Multiple owners hold title as joint tenants with rights 75 of survivorship; 76 b. One or more owners were entitled to and received the 77 homestead exemption on the property; 78 c. The death of one or more owners occurs; and 79 d. Subsequent to the transfer, the surviving owner or 80 owners previously entitled to and receiving the homestead 81 exemption continue to be entitled to and receive the homestead 82 exemption. 83 (b) For purposes of this subsection, a leasehold interest 84 that qualifies for the homestead exemption under s. 196.031 or 85 s. 196.041 shall be treated as an equitable interest in the 86 property. 87 (4)(a) Except as provided in paragraph (b) and s. 193.624, 88 changes, additions, or improvements to homestead property shall 89 be assessed at just value as of the first January 1 after the 90 changes, additions, or improvements are substantially completed. 91 (b)1. Changes, additions, or improvements that replace all 92 or a portion of homestead property, including ancillary 93 improvements, damaged or destroyed by misfortune or calamity 94 shall be assessed upon substantial completion as provided in 95 this paragraph. Such assessment must be calculated using the 96 homestead property’s assessed value as of the January 1 97 immediately before the date on which the damage or destruction 98 was sustained, subject to the assessment limitations in 99 subsections (1) and (2), when: 100 a. The square footage of the homestead property as changed 101 or improved does not exceed 110 percent of the square footage of 102 the homestead property before the damage or destruction; or 103 b. The total square footage of the homestead property as 104 changed or improved does not exceed 1,500 square feet. 105 2. The homestead property’s assessed value must be 106 increased by the just value of that portion of the changed or 107 improved homestead property which is in excess of 110 percent of 108 the square footage of the homestead property before the damage 109 or destruction or of that portion exceeding 1,500 square feet. 110 3. Homestead property damaged or destroyed by misfortune or 111 calamity which, after being changed or improved, has a square 112 footage of less than 100 percent of the homestead property’s 113 total square footage before the damage or destruction shall be 114 assessed pursuant to subsection (5). 115 4. Changes, additions, or improvements assessed pursuant to 116 this paragraph must be reassessed pursuant to subsection (1) in 117 subsequent years. This paragraph applies to changes, additions, 118 or improvements commenced within 3 years after the January 1 119 following the damage or destruction of the homestead. 120 (c) Changes, additions, or improvements that replace all or 121 a portion of real property that was damaged or destroyed by 122 misfortune or calamity shall be assessed upon substantial 123 completion as if such damage or destruction had not occurred and 124 in accordance with paragraph (b) if the owner of such property: 125 1. Was permanently residing on such property when the 126 damage or destruction occurred; 127 2. Was not entitled to receive homestead exemption on such 128 property as of January 1 of that year; and 129 3. Applies for and receives homestead exemption on such 130 property the following year. 131 (d) Changes, additions, or improvements include 132 improvements made to common areas or other improvements made to 133 property other than to the homestead property by the owner or by 134 an owner association, which improvements directly benefit the 135 homestead property. Such changes, additions, or improvements 136 shall be assessed at just value, and the just value shall be 137 apportioned among the parcels benefiting from the improvement. 138 (5) When property is destroyed or removed and not replaced, 139 the assessed value of the parcel shall be reduced by the 140 assessed value attributable to the destroyed or removed 141 property. 142 (6) Only property that receives a homestead exemption is 143 subject to this section. No portion of property that is assessed 144 solely on the basis of character or use pursuant to s. 193.461 145 or s. 193.501, or assessed pursuant to s. 193.505, is subject to 146 this section. When property is assessed under s. 193.461, s. 147 193.501, or s. 193.505 and contains a residence under the same 148 ownership, the portion of the property consisting of the 149 residence and curtilage must be assessed separately, pursuant to 150 s. 193.011, for the assessment to be subject to the limitation 151 in this section. 152 (7) If a person received a homestead exemption limited to 153 that person’s proportionate interest in real property, the 154 provisions of this section apply only to that interest. 155 (8) Property assessed under this section shall be assessed 156 at less than just value when the person who establishes a new 157 homestead has received a homestead exemption as of January 1 of 158 any of the 3 immediately preceding years. For purposes of this 159 subsection, a husband and wife who owned and both permanently 160 resided on a previous homestead shall each be considered to have 161 received the homestead exemption even though only the husband or 162 the wife applied for the homestead exemption on the previous 163 homestead. The assessed value of the newly established homestead 164 shall be determined as provided in this subsection. 165 (a) If the just value of the new homestead as of January 1 166 is greater than or equal to the just value of the immediate 167 prior homestead as of January 1 of the year in which the 168 immediate prior homestead was abandoned, the assessed value of 169 the new homestead shall be the just value of the new homestead 170 minus an amount equal to the lesser of $500,000 or the 171 difference between the just value and the assessed value of the 172 immediate prior homestead as of January 1 of the year in which 173 the prior homestead was abandoned. Thereafter, the homestead 174 shall be assessed as provided in this section. 175 (b) If the just value of the new homestead as of January 1 176 is less than the just value of the immediate prior homestead as 177 of January 1 of the year in which the immediate prior homestead 178 was abandoned, the assessed value of the new homestead shall be 179 equal to the just value of the new homestead divided by the just 180 value of the immediate prior homestead and multiplied by the 181 assessed value of the immediate prior homestead. However, if the 182 difference between the just value of the new homestead and the 183 assessed value of the new homestead calculated pursuant to this 184 paragraph is greater than $500,000, the assessed value of the 185 new homestead shall be increased so that the difference between 186 the just value and the assessed value equals $500,000. 187 Thereafter, the homestead shall be assessed as provided in this 188 section. 189 (c) If two or more persons who have each received a 190 homestead exemption as of January 1 of any of the 3 immediately 191 preceding years and who would otherwise be eligible to have a 192 new homestead property assessed under this subsection establish 193 a single new homestead, the reduction from just value is limited 194 to the higher of the difference between the just value and the 195 assessed value of either of the prior eligible homesteads as of 196 January 1 of the year in which either of the eligible prior 197 homesteads was abandoned, but may not exceed $500,000. 198 (d) If two or more persons abandon jointly owned and 199 jointly titled property that received a homestead exemption as 200 of January 1 of any of the 3 immediately preceding years, and 201 one or more such persons who were entitled to and received a 202 homestead exemption on the abandoned property establish a new 203 homestead that would otherwise be eligible for assessment under 204 this subsection, each such person establishing a new homestead 205 is entitled to a reduction from just value for the new homestead 206 equal to the just value of the prior homestead minus the 207 assessed value of the prior homestead divided by the number of 208 owners of the prior homestead who received a homestead 209 exemption, unless the title of the property contains specific 210 ownership shares, in which case the share of reduction from just 211 value shall be proportionate to the ownership share. In the case 212 of a husband and wife abandoning jointly titled property, the 213 husband and wife may designate the ownership share to be 214 attributed to each spouse by following the procedure in 215 paragraph (f). To qualify to make such a designation, the 216 husband and wife must be married on the date that the jointly 217 owned property is abandoned. In calculating the assessment 218 reduction to be transferred from a prior homestead that has an 219 assessment reduction for living quarters of parents or 220 grandparents pursuant to s. 193.703, the value calculated 221 pursuant to s. 193.703(6) must first be added back to the 222 assessed value of the prior homestead. The total reduction from 223 just value for all new homesteads established under this 224 paragraph may not exceed $500,000. There shall be no reduction 225 from just value of any new homestead unless the prior homestead 226 is reassessed at just value or is reassessed under this 227 subsection as of January 1 after the abandonment occurs. 228 (e) If one or more persons who previously owned a single 229 homestead and each received the homestead exemption qualify for 230 a new homestead where all persons who qualify for homestead 231 exemption in the new homestead also qualified for homestead 232 exemption in the previous homestead without an additional person 233 qualifying for homestead exemption in the new homestead, the 234 reduction in just value shall be calculated pursuant to 235 paragraph (a) or paragraph (b), without application of paragraph 236 (c) or paragraph (d). 237 (f) A husband and wife abandoning jointly titled property 238 who wish to designate the ownership share to be attributed to 239 each person for purposes of paragraph (d) must file a form 240 provided by the department with the property appraiser in the 241 county where such property is located. The form must include a 242 sworn statement by each person designating the ownership share 243 to be attributed to each person for purposes of paragraph (d) 244 and must be filed prior to either person filing the form 245 required under paragraph (h) to have a parcel of property 246 assessed under this subsection. Such a designation, once filed 247 with the property appraiser, is irrevocable. 248 (g) For purposes of receiving an assessment reduction 249 pursuant to this subsection, a person entitled to assessment 250 under this section may abandon his or her homestead even though 251 it remains his or her primary residence by notifying the 252 property appraiser of the county where the homestead is located. 253 This notification must be in writing and delivered at the same 254 time as or before timely filing a new application for homestead 255 exemption on the property. 256 (h) In order to have his or her homestead property assessed 257 under this subsection, a person must file a form provided by the 258 department as an attachment to the application for homestead 259 exemption, including a copy of the form required to be filed 260 under paragraph (f), if applicable. The form, which must include 261 a sworn statement attesting to the applicant’s entitlement to 262 assessment under this subsection, shall be considered sufficient 263 documentation for applying for assessment under this subsection. 264 The department shall require by rule that the required form be 265 submitted with the application for homestead exemption under the 266 timeframes and processes set forth in chapter 196 to the extent 267 practicable. 268 (i)1. If the previous homestead was located in a different 269 county than the new homestead, the property appraiser in the 270 county where the new homestead is located must transmit a copy 271 of the completed form together with a completed application for 272 homestead exemption to the property appraiser in the county 273 where the previous homestead was located. If the previous 274 homesteads of applicants for transfer were in more than one 275 county, each applicant from a different county must submit a 276 separate form. 277 2. The property appraiser in the county where the previous 278 homestead was located must return information to the property 279 appraiser in the county where the new homestead is located by 280 April 1 or within 2 weeks after receipt of the completed 281 application from that property appraiser, whichever is later. As 282 part of the information returned, the property appraiser in the 283 county where the previous homestead was located must provide 284 sufficient information concerning the previous homestead to 285 allow the property appraiser in the county where the new 286 homestead is located to calculate the amount of the assessment 287 limitation difference which may be transferred and must certify 288 whether the previous homestead was abandoned and has been or 289 will be reassessed at just value or reassessed according to the 290 provisions of this subsection as of the January 1 following its 291 abandonment. 292 3. Based on the information provided on the form from the 293 property appraiser in the county where the previous homestead 294 was located, the property appraiser in the county where the new 295 homestead is located shall calculate the amount of the 296 assessment limitation difference which may be transferred and 297 apply the difference to the January 1 assessment of the new 298 homestead. 299 4. All property appraisers having information-sharing 300 agreements with the department are authorized to share 301 confidential tax information with each other pursuant to s. 302 195.084, including social security numbers and linked 303 information on the forms provided pursuant to this section. 304 5. The transfer of any limitation is not final until any 305 values on the assessment roll on which the transfer is based are 306 final. If such values are final after tax notice bills have been 307 sent, the property appraiser shall make appropriate corrections 308 and a corrected tax notice bill shall be sent. Any values that 309 are under administrative or judicial review shall be noticed to 310 the tribunal or court for accelerated hearing and resolution so 311 that the intent of this subsection may be carried out. 312 6. If the property appraiser in the county where the 313 previous homestead was located has not provided information 314 sufficient to identify the previous homestead and the assessment 315 limitation difference is transferable, the taxpayer may file an 316 action in circuit court in that county seeking to establish that 317 the property appraiser must provide such information. 318 7. If the information from the property appraiser in the 319 county where the previous homestead was located is provided 320 after the procedures in this section are exercised, the property 321 appraiser in the county where the new homestead is located shall 322 make appropriate corrections and a corrected tax notice and tax 323 bill shall be sent. 324 8. This subsection does not authorize the consideration or 325 adjustment of the just, assessed, or taxable value of the 326 previous homestead property. 327 9. The property appraiser in the county where the new 328 homestead is located shall promptly notify a taxpayer if the 329 information received, or available, is insufficient to identify 330 the previous homestead and the amount of the assessment 331 limitation difference which is transferable. Such notification 332 shall be sent on or before July 1 as specified in s. 196.151. 333 10. The taxpayer may correspond with the property appraiser 334 in the county where the previous homestead was located to 335 further seek to identify the homestead and the amount of the 336 assessment limitation difference which is transferable. 337 11. If the property appraiser in the county where the 338 previous homestead was located supplies sufficient information 339 to the property appraiser in the county where the new homestead 340 is located, such information shall be considered timely if 341 provided in time for inclusion on the notice of proposed 342 property taxes sent pursuant to ss. 194.011 and 200.065(1). 343 12. If the property appraiser has not received information 344 sufficient to identify the previous homestead and the amount of 345 the assessment limitation difference which is transferable 346 before mailing the notice of proposed property taxes, the 347 taxpayer may file a petition with the value adjustment board in 348 the county where the new homestead is located. 349 (j) Any person who is qualified to have his or her property 350 assessed under this subsection and who fails to file an 351 application by March 1 may file an application for assessment 352 under this subsection and may, pursuant to s. 194.011(3), file a 353 petition with the value adjustment board requesting that an 354 assessment under this subsection be granted. Such petition may 355 be filed at any time during the taxable year on or before the 356 25th day following the mailing of the notice by the property 357 appraiser as provided in s. 194.011(1). Notwithstanding s. 358 194.013, such person must pay a nonrefundable fee of $15 upon 359 filing the petition. Upon reviewing the petition, if the person 360 is qualified to receive the assessment under this subsection and 361 demonstrates particular extenuating circumstances judged by the 362 property appraiser or the value adjustment board to warrant 363 granting the assessment, the property appraiser or the value 364 adjustment board may grant an assessment under this subsection. 365 (k) Any person who is qualified to have his or her property 366 assessed under this subsection and who fails to timely file an 367 application for his or her new homestead in the first year 368 following eligibility may file in a subsequent year. The 369 assessment reduction shall be applied to assessed value in the 370 year the transfer is first approved, and refunds of tax may not 371 be made for previous years. 372 (l) The property appraisers of the state shall, as soon as 373 practicable after March 1 of each year and on or before July 1 374 of that year, carefully consider all applications for assessment 375 under this subsection which have been filed in their respective 376 offices on or before March 1 of that year. If, upon 377 investigation, the property appraiser finds that the applicant 378 is entitled to assessment under this subsection, the property 379 appraiser shall make such entries upon the tax rolls of the 380 county as are necessary to allow the assessment. If, after due 381 consideration, the property appraiser finds that the applicant 382 is not entitled to the assessment under this subsection, the 383 property appraiser shall immediately prepare a notice of such 384 disapproval, giving his or her reasons therefor, and a copy of 385 the notice must be served upon the applicant by the property 386 appraiser by personal delivery or by registered mail to the post 387 office address given by the applicant. The applicant may appeal 388 the decision of the property appraiser refusing to allow the 389 assessment under this subsection to the value adjustment board, 390 and the board shall review the application and evidence 391 presented to the property appraiser upon which the applicant 392 based the claim and hear the applicant in person or by agent on 393 behalf of his or her right to such assessment. Such appeal shall 394 be heard by an attorney special magistrate if the value 395 adjustment board uses special magistrates. The value adjustment 396 board shall reverse the decision of the property appraiser in 397 the cause and grant assessment under this subsection to the 398 applicant if, in its judgment, the applicant is entitled to the 399 assessment or shall affirm the decision of the property 400 appraiser. The action of the board is final in the cause unless 401 the applicant, within 60 days following the date of refusal of 402 the application by the board, files in the circuit court of the 403 county in which the homestead is located a proceeding against 404 the property appraiser for a declaratory judgment as is provided 405 under chapter 86 or other appropriate proceeding. The failure of 406 the taxpayer to appear before the property appraiser or value 407 adjustment board or to file any paper other than the application 408 as provided in this subsection does not constitute a bar to or 409 defense in the proceedings. 410 (m) For purposes of receiving an assessment reduction 411 pursuant to this subsection, an owner of a homestead property 412 that was significantly damaged or destroyed as a result of a 413 named tropical storm or hurricane may elect, in the calendar 414 year following the named tropical storm or hurricane, to have 415 the significantly damaged or destroyed homestead deemed to have 416 been abandoned as of the date of the named tropical storm or 417 hurricane even though the owner received a homestead exemption 418 on the property as of January 1 of the year immediately 419 following the named tropical storm or hurricane. The election 420 provided for in this paragraph is available only if the owner 421 establishes a new homestead as of January 1 of the third year 422 immediately following the storm or hurricane. This paragraph 423 shall apply to homestead property damaged or destroyed on or 424 after January 1, 2017. 425 (9) Erroneous assessments of homestead property assessed 426 under this section may be corrected in the following manner: 427 (a) If errors are made in arriving at any assessment under 428 this section due to a material mistake of fact concerning an 429 essential characteristic of the property, the just value and 430 assessed value must be recalculated for every such year, 431 including the year in which the mistake occurred. 432 (b) If changes, additions, or improvements are not assessed 433 at just value as of the first January 1 after they were 434 substantially completed, the property appraiser shall determine 435 the just value for such changes, additions, or improvements for 436 the year they were substantially completed. Assessments for 437 subsequent years shall be corrected, applying this section if 438 applicable. 439 (c) If back taxes are due pursuant to s. 193.092, the 440 corrections made pursuant to this subsection shall be used to 441 calculate such back taxes. 442 (10) If the property appraiser determines that for any year 443 or years within the prior 10 years a person who was not entitled 444 to the homestead property assessment limitation granted under 445 this section was granted the homestead property assessment 446 limitation, the property appraiser making such determination 447 shall serve upon the owner a notice of intent to record in the 448 public records of the county a notice of tax lien against any 449 property owned by that person in the county, and such property 450 must be identified in the notice of tax lien. Such property that 451 is situated in this state is subject to the unpaid taxes, plus a 452 penalty of 50 percent of the unpaid taxes for each year and 15 453 percent interest per annum. However, when a person entitled to 454 exemption pursuant to s. 196.031 inadvertently receives the 455 limitation pursuant to this section following a change of 456 ownership, the assessment of such property must be corrected as 457 provided in paragraph (9)(a), and the person need not pay the 458 unpaid taxes, penalties, or interest. Before a lien may be 459 filed, the person or entity so notified must be given 30 days to 460 pay the taxes and any applicable penalties and interest. If the 461 property appraiser improperly grants the property assessment 462 limitation as a result of a clerical mistake or an omission, the 463 person or entity improperly receiving the property assessment 464 limitation may not be assessed a penalty or interest. 465 (11)(a) Property assessed under this section shall be 466 assessed at less than just value when all of the following 467 conditions are met: 468 1. The property being established as a new homestead was 469 assessed under s. 193.1554 or s. 193.1555 the previous January 470 1. 471 2. The person who establishes a new homestead owned the 472 property when it was assessed the previous January 1. 473 3. The newly established homestead did not change ownership 474 between the prior assessment on January 1 and the establishment 475 of the new homestead. 476 (b) The increase in assessed value for a new homestead 477 established under this paragraph shall not exceed 10 percent of 478 the assessment for the previous year. 479 Section 2. This act shall take effect on the effective date 480 of the amendment to the State Constitution proposed by SJR 1374 481 or a similar joint resolution having substantially the same 482 specific intent and purpose, if such amendment is approved at 483 the next general election or at an earlier special election 484 specifically authorized by law for that purpose.