Bill Text: FL S0156 | 2012 | Regular Session | Comm Sub
Bill Title: Assessment of Residential and Nonhomestead Real Property
Spectrum: Bipartisan Bill
Status: (Failed) 2012-03-09 - Died in Budget Subcommittee on Finance and Tax, companion bill(s) passed, see CS/HB 7097 (Ch. [S0156 Detail]
Download: Florida-2012-S0156-Comm_Sub.html
Florida Senate - 2012 CS for SB 156 By the Committee on Community Affairs; and Senator Latvala 578-00690-12 2012156c1 1 A bill to be entitled 2 An act relating to the assessment of residential and 3 nonhomestead real property; creating s. 193.624, F.S.; 4 providing definitions; excluding the value of certain 5 improvements from the assessed value of residential 6 real property; specifying a limitation on the assessed 7 value of residential real property; providing for 8 application of the assessment limitations; providing 9 procedural requirements and limitations; requiring a 10 nonrefundable filing fee for a petition to the value 11 adjustment board; amending s. 193.155, F.S.; 12 specifying additional exceptions to the assessment of 13 homestead property at just value; amending ss. 14 193.1554 and 193.1555, F.S.; specifying additional 15 exceptions to assessment of nonhomestead property at 16 just value; defining the term “placed on the tax 17 roll”; providing for the continuity and apportionment 18 of assessment limitations on combined and divided 19 parcels; specifying when divided or combined parcels 20 shall appear as combined or divided on a tax roll; 21 amending s. 196.012, F.S.; deleting the definition of 22 the terms “renewable energy source device” and 23 “device”; conforming cross-references; amending ss. 24 196.121 and 196.1995, F.S.; conforming cross 25 references; repealing s. 196.175, F.S., relating to 26 the property tax exemption for renewable energy source 27 devices; providing for application of the act; 28 providing an effective date. 29 30 Be It Enacted by the Legislature of the State of Florida: 31 32 Section 1. Section 193.624, Florida Statutes, is created to 33 read: 34 193.624 Assessment of residential property.— 35 (1) For the purposes of this section: 36 (a) “Changes or improvements made for the purpose of 37 improving a property’s resistance to wind damage” means: 38 1. Improving the strength of the roof-deck attachment; 39 2. Creating a secondary water barrier to prevent water 40 intrusion; 41 3. Installing wind-resistant shingles; 42 4. Installing gable-end bracing; 43 5. Reinforcing roof-to-wall connections; 44 6. Installing storm shutters; or 45 7. Installing opening protections. 46 (b) “Renewable energy source device” means any of the 47 following equipment that collects, transmits, stores, or uses 48 solar energy, wind energy, or energy derived from geothermal 49 deposits: 50 1. Solar energy collectors, photovoltaic modules, and 51 inverters. 52 2. Storage tanks and other storage systems, excluding 53 swimming pools used as storage tanks. 54 3. Rockbeds. 55 4. Thermostats and other control devices. 56 5. Heat exchange devices. 57 6. Pumps and fans. 58 7. Roof ponds. 59 8. Freestanding thermal containers. 60 9. Pipes, ducts, refrigerant handling systems, and other 61 equipment used to interconnect such systems; however, such 62 equipment does not include conventional backup systems of any 63 type. 64 10. Windmills and wind turbines. 65 11. Wind-driven generators. 66 12. Power conditioning and storage devices that use wind 67 energy to generate electricity or mechanical forms of energy. 68 13. Pipes and other equipment used to transmit hot 69 geothermal water to a dwelling or structure from a geothermal 70 deposit. 71 (2) In determining the assessed value of real property used 72 for residential purposes, the just value of changes or 73 improvements made for the purpose of improving a property’s 74 resistance to wind damage and the just value of renewable energy 75 source devices may not be added to the assessed value as limited 76 by s. 193.155 or s. 193.1554. 77 (3) The assessed value of real property used for 78 residential purposes may not exceed the total just value of the 79 property minus the combined just values of changes or 80 improvements made for the purpose of improving a property’s 81 resistance to wind damage and renewable energy source devices. 82 (4) This section applies to new and existing construction 83 used for residential purposes. 84 (5) A parcel of residential property may not be assessed 85 pursuant to this section unless an application is filed on or 86 before March 1 of the first year the property owner claims the 87 assessment reduction for renewable energy source devices or 88 changes or improvements made for the purpose of improving the 89 property’s resistance to wind damage. The property appraiser may 90 require the taxpayer or the taxpayer’s representative to furnish 91 the property appraiser such information as may reasonably be 92 required to establish the just value of the renewable energy 93 source devices or changes or improvements made for the purpose 94 of improving the property’s resistance to wind damage. Failure 95 to make timely application by March 1 constitutes a waiver of 96 the property owner to have his or her assessment calculated 97 under this section. However, an applicant who fails to file an 98 application by March 1 may file a late application and may file, 99 pursuant to s. 194.011(3), a petition with the value adjustment 100 board requesting assessment under this section. The petition 101 must be filed on or before the 25th day after the mailing of the 102 notice by the property appraiser as provided in s. 194.011(1). 103 Notwithstanding s. 194.013, the applicant must pay a 104 nonrefundable fee of $15 upon filing the petition. Upon 105 reviewing the petition, if the property is qualified to be 106 assessed under this section and the property owner demonstrates 107 particular extenuating circumstances judged by the property 108 appraiser or the value adjustment board to warrant granting 109 assessment under this section, the property appraiser shall 110 calculate the assessment pursuant to this section. 111 Section 2. Paragraph (a) of subsection (4) of section 112 193.155, Florida Statutes, is amended to read: 113 193.155 Homestead assessments.—Homestead property shall be 114 assessed at just value as of January 1, 1994. Property receiving 115 the homestead exemption after January 1, 1994, shall be assessed 116 at just value as of January 1 of the year in which the property 117 receives the exemption unless the provisions of subsection (8) 118 apply. 119 (4)(a) Except as provided in paragraph (b) and s. 193.624, 120 changes, additions, or improvements to homestead property shall 121 be assessed at just value as of the first January 1 after the 122 changes, additions, or improvements are substantially completed. 123 Section 3. Subsection (1), paragraph (a) of subsection (6), 124 and subsection (7) of section 193.1554, Florida Statutes, are 125 amended to read: 126 193.1554 Assessment of nonhomestead residential property.— 127 (1) As used in this section, the term: 128 (a) “Nonhomestead residential property” means residential 129 real property that contains nine or fewer dwelling units, 130 including vacant property zoned and platted for residential use, 131 and that does not receive the exemption under s. 196.031. 132 (b) “Placed on the tax roll” means the year any property, 133 as of January 1, becomes eligible for assessment under this 134 section and becomes a nonhomestead property or a property that 135 has been combined or divided. 136 (6)(a) Except as provided in paragraph (b) and s. 193.624, 137 changes, additions, or improvements to nonhomestead residential 138 property shall be assessed at just value as of the first January 139 1 after the changes, additions, or improvements are 140 substantially completed. 141 (7) Any property that is combined or divided after January 142 1 and included as a combined or divided parcel on the tax notice 143 shall receive any current assessment limitation on the newly 144 combined parcel or parcels or have any current assessment 145 limitation apportioned among the newly created parcel or 146 parcels, and the property may not be considered combined or 147 divided for purposes of this section until the following January 148 1, when the parcel or parcels shall be considered placed on the 149 tax roll as a combined or divided parcel or parcels.Any150increase in the value of property assessed under this section151which is attributable to combining or dividing parcels shall be152assessed at just value, and the just value shall be apportioned153among the parcels created.154 Section 4. Subsections (1) and (7) of section 193.1555, 155 Florida Statutes, are amended to read: 156 193.1555 Assessment of certain residential and 157 nonresidential real property.— 158 (1) As used in this section, the term: 159 (a) “Nonresidential real property” means real property that 160 is not subject to the assessment limitations set forth in s. 161 4(a), (c), (d), or (g), Art. VII of the State Constitution. 162 (b) “Improvement” means an addition or change to land or 163 buildings which increases their value and is more than a repair 164 or a replacement. 165 (c) “Placed on the tax roll” means the year any property, 166 as of January 1, becomes eligible for assessment under this 167 section and becomes a nonhomestead property or a property that 168 has been combined or divided. 169 (7) Any property that is combined or divided after January 170 1 and included as a combined or divided parcel on the tax notice 171 shall receive any current assessment limitation on the newly 172 combined parcel or parcels or have any current assessment 173 limitation apportioned among the newly created parcel or 174 parcels, and the property may not be considered combined or 175 divided for purposes of this section until the following January 176 1, when the parcel or parcels shall be considered placed on the 177 tax roll as a combined or divided parcel or parcels.Any178increase in the value of property assessed under this section179which is attributable to combining or dividing parcels shall be180assessed at just value, and the just value shall be apportioned181among the parcels created.182 Section 5. Subsections (14) through (20) of section 183 196.012, Florida Statutes, are amended to read: 184 196.012 Definitions.—For the purpose of this chapter, the 185 following terms are defined as follows, except where the context 186 clearly indicates otherwise: 187(14) “Renewable energy source device” or “device” means any188of the following equipment which, when installed in connection189with a dwelling unit or other structure, collects, transmits,190stores, or uses solar energy, wind energy, or energy derived191from geothermal deposits:192(a) Solar energy collectors.193(b) Storage tanks and other storage systems, excluding194swimming pools used as storage tanks.195(c) Rockbeds.196(d) Thermostats and other control devices.197(e) Heat exchange devices.198(f) Pumps and fans.199(g) Roof ponds.200(h) Freestanding thermal containers.201(i) Pipes, ducts, refrigerant handling systems, and other202equipment used to interconnect such systems; however,203conventional backup systems of any type are not included in this204definition.205(j) Windmills.206(k) Wind-driven generators.207(l) Power conditioning and storage devices that use wind208energy to generate electricity or mechanical forms of energy.209(m) Pipes and other equipment used to transmit hot210geothermal water to a dwelling or structure from a geothermal211deposit.212 (14)(15)“New business” means: 213 (a)1. A business or organization establishing 10 or more 214 new jobs to employ 10 or more full-time employees in this state, 215 paying an average wage for such new jobs that is above the 216 average wage in the area, which principally engages in any one 217 or more of the following operations: 218 a. Manufactures, processes, compounds, fabricates, or 219 produces for sale items of tangible personal property at a fixed 220 location and which comprises an industrial or manufacturing 221 plant; or 222 b. Is a target industry business as defined in s. 223 288.106(2)(t); 224 2. A business or organization establishing 25 or more new 225 jobs to employ 25 or more full-time employees in this state, the 226 sales factor of which, as defined by s. 220.15(5), for the 227 facility with respect to which it requests an economic 228 development ad valorem tax exemption is less than 0.50 for each 229 year the exemption is claimed; or 230 3. An office space in this state owned and used by a 231 business or organization newly domiciled in this state; provided 232 such office space houses 50 or more full-time employees of such 233 business or organization; provided that such business or 234 organization office first begins operation on a site clearly 235 separate from any other commercial or industrial operation owned 236 by the same business or organization. 237 (b) Any business or organization located in an enterprise 238 zone or brownfield area that first begins operation on a site 239 clearly separate from any other commercial or industrial 240 operation owned by the same business or organization. 241 (c) A business or organization that is situated on property 242 annexed into a municipality and that, at the time of the 243 annexation, is receiving an economic development ad valorem tax 244 exemption from the county under s. 196.1995. 245 (15)(16)“Expansion of an existing business” means: 246 (a)1. A business or organization establishing 10 or more 247 new jobs to employ 10 or more full-time employees in this state, 248 paying an average wage for such new jobs that is above the 249 average wage in the area, which principally engages in any of 250 the operations referred to in subparagraph (14)(a)1.(15)(a)1.; 251 or 252 2. A business or organization establishing 25 or more new 253 jobs to employ 25 or more full-time employees in this state, the 254 sales factor of which, as defined by s. 220.15(5), for the 255 facility with respect to which it requests an economic 256 development ad valorem tax exemption is less than 0.50 for each 257 year the exemption is claimed; provided that such business 258 increases operations on a site located within the same county, 259 municipality, or both colocated with a commercial or industrial 260 operation owned by the same business or organization under 261 common control with the same business or organization, resulting 262 in a net increase in employment of not less than 10 percent or 263 an increase in productive output or sales of not less than 10 264 percent. 265 (b) Any business or organization located in an enterprise 266 zone or brownfield area that increases operations on a site 267 located within the same zone or area colocated with a commercial 268 or industrial operation owned by the same business or 269 organization under common control with the same business or 270 organization. 271 (16)(17)“Permanent resident” means a person who has 272 established a permanent residence as defined in subsection (17) 273(18). 274 (17)(18)“Permanent residence” means that place where a 275 person has his or her true, fixed, and permanent home and 276 principal establishment to which, whenever absent, he or she has 277 the intention of returning. A person may have only one permanent 278 residence at a time; and, once a permanent residence is 279 established in a foreign state or country, it is presumed to 280 continue until the person shows that a change has occurred. 281 (18)(19)“Enterprise zone” means an area designated as an 282 enterprise zone pursuant to s. 290.0065. This subsection expires 283 on the date specified in s. 290.016 for the expiration of the 284 Florida Enterprise Zone Act. 285 (19)(20)“Ex-servicemember” means any person who has served 286 as a member of the United States Armed Forces on active duty or 287 state active duty, a member of the Florida National Guard, or a 288 member of the United States Reserve Forces. 289 Section 6. Subsection (2) of section 196.121, Florida 290 Statutes, is amended to read: 291 196.121 Homestead exemptions; forms.— 292 (2) The forms shall require the taxpayer to furnish certain 293 information to the property appraiser for the purpose of 294 determining that the taxpayer is a permanent resident as defined 295 in s. 196.012(16)(17). Such information may include, but need 296 not be limited to, the factors enumerated in s. 196.015. 297 Section 7. Subsections (6) and (8), paragraph (d) of 298 subsection (9), and subsection (11) of section 196.1995, Florida 299 Statutes, are amended to read: 300 196.1995 Economic development ad valorem tax exemption.— 301 (6) With respect to a new business as defined by s. 302 196.012(14)(15)(c), the municipality annexing the property on 303 which the business is situated may grant an economic development 304 ad valorem tax exemption under this section to that business for 305 a period that will expire upon the expiration of the exemption 306 granted by the county. If the county renews the exemption under 307 subsection (7), the municipality may also extend its exemption. 308 A municipal economic development ad valorem tax exemption 309 granted under this subsection may not extend beyond the duration 310 of the county exemption. 311 (8) Any person, firm, or corporation which desires an 312 economic development ad valorem tax exemption shall, in the year 313 the exemption is desired to take effect, file a written 314 application on a form prescribed by the department with the 315 board of county commissioners or the governing authority of the 316 municipality, or both. The application shall request the 317 adoption of an ordinance granting the applicant an exemption 318 pursuant to this section and shall include the following 319 information: 320 (a) The name and location of the new business or the 321 expansion of an existing business; 322 (b) A description of the improvements to real property for 323 which an exemption is requested and the date of commencement of 324 construction of such improvements; 325 (c) A description of the tangible personal property for 326 which an exemption is requested and the dates when such property 327 was or is to be purchased; 328 (d) Proof, to the satisfaction of the board of county 329 commissioners or the governing authority of the municipality, 330 that the applicant is a new business or an expansion of an 331 existing business, as defined in s. 196.012(15) or (16); 332 (e) The number of jobs the applicant expects to create 333 along with the average wage of the jobs and whether the jobs are 334 full-time or part-time; 335 (f) The expected time schedule for job creation; and 336 (g) Other information deemed necessary or appropriate by 337 the department, county, or municipality. 338 (9) Before it takes action on the application, the board of 339 county commissioners or the governing authority of the 340 municipality shall deliver a copy of the application to the 341 property appraiser of the county. After careful consideration, 342 the property appraiser shall report the following information to 343 the board of county commissioners or the governing authority of 344 the municipality: 345 (d) A determination as to whether the property for which an 346 exemption is requested is to be incorporated into a new business 347 or the expansion of an existing business, as defined in s. 348 196.012(15) or (16), or into neither, which determination the 349 property appraiser shall also affix to the face of the 350 application. Upon the request of the property appraiser, the 351 department shall provide to him or her such information as it 352 may have available to assist in making such determination. 353 (11) An ordinance granting an exemption under this section 354 shall be adopted in the same manner as any other ordinance of 355 the county or municipality and shall include the following: 356 (a) The name and address of the new business or expansion 357 of an existing business to which the exemption is granted; 358 (b) The total amount of revenue available to the county or 359 municipality from ad valorem tax sources for the current fiscal 360 year, the total amount of revenue lost to the county or 361 municipality for the current fiscal year by virtue of economic 362 development ad valorem tax exemptions currently in effect, and 363 the estimated revenue loss to the county or municipality for the 364 current fiscal year attributable to the exemption of the 365 business named in the ordinance; 366 (c) The period of time for which the exemption will remain 367 in effect and the expiration date of the exemption, which may be 368 any period of time up to 10 years; and 369 (d) A finding that the business named in the ordinance 370 meets the requirements of s. 196.012(14)(15)or (15)(16). 371 Section 8. Section 196.175, Florida Statutes, is repealed. 372 Section 9. This act shall take effect July 1, 2012, and 373 applies to assessments beginning January 1, 2013.