Bill Text: FL S0766 | 2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Ad Valorem Taxation

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Introduced - Dead) 2016-03-08 - Laid on Table, companion bill(s) passed, see CS/CS/HB 499 (Ch. 2016-128), HB 5003 (Ch. 2016-62) [S0766 Detail]

Download: Florida-2016-S0766-Introduced.html

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       Florida Senate - 2016                                     SB 766
       
       
        
       By Senator Flores
       
       
       
       
       
       37-00246D-16                                           2016766__
    1                        A bill to be entitled                      
    2         An act relating to ad valorem taxation; amending s.
    3         192.0105, F.S.; conforming a provision to changes made
    4         by the act; creating s. 193.1148, F.S.; requiring a
    5         property appraiser to notify the Department of Revenue
    6         if the recertified just value of an assessment roll is
    7         less than the initial just value of an assessment roll
    8         by a specified amount; requiring the department, if
    9         such excess occurs for a specified period, to review
   10         and make certain written findings regarding certain
   11         processes used by the property appraiser and value
   12         adjustment board; requiring the property appraiser and
   13         value adjustment board to cooperate with the
   14         department during its conduct of a review; amending s.
   15         193.122, F.S.; establishing deadlines for value
   16         adjustment boards to hear petitions and issue the
   17         second tax roll certification; providing
   18         applicability; amending s. 194.011, F.S.; specifying
   19         procedures for filing petitions to the value
   20         adjustment board; amending s. 194.014, F.S.; revising
   21         the entities authorized to determine under certain
   22         circumstances that a petitioner owes ad valorem taxes
   23         or is owed a refund of overpaid taxes; revising the
   24         rate at which interest accrues on unpaid and overpaid
   25         ad valorem taxes; defining the term “bank prime loan
   26         rate”; amending s. 194.015, F.S.; authorizing the
   27         school board and county commission to audit certain
   28         expenses of the value adjustment board; amending s.
   29         194.032, F.S.; requiring a property appraiser to
   30         notify a petitioner when a property record card is
   31         available online; authorizing a property appraiser to
   32         reschedule a hearing relating to an assessment;
   33         requiring a petitioner or a property appraiser to show
   34         good cause to reschedule such hearing; defining the
   35         term “good cause”; requiring the clerk to provide
   36         notice to a petitioner of a rescheduled hearing within
   37         a certain time; amending s. 194.034, F.S.; revising
   38         the entities that may represent a taxpayer before the
   39         value adjustment board; amending s. 1011.62, F.S.;
   40         revising the time period for requirements and
   41         calculations applicable to the levy and adjustment of
   42         the Prior Period Funding Adjustment Millage before and
   43         after certification of the district’s final taxable
   44         value; providing effective dates.
   45          
   46  Be It Enacted by the Legislature of the State of Florida:
   47  
   48         Section 1. Paragraph (f) of subsection (2) of section
   49  192.0105, Florida Statutes, is amended to read:
   50         192.0105 Taxpayer rights.—There is created a Florida
   51  Taxpayer’s Bill of Rights for property taxes and assessments to
   52  guarantee that the rights, privacy, and property of the
   53  taxpayers of this state are adequately safeguarded and protected
   54  during tax levy, assessment, collection, and enforcement
   55  processes administered under the revenue laws of this state. The
   56  Taxpayer’s Bill of Rights compiles, in one document, brief but
   57  comprehensive statements that summarize the rights and
   58  obligations of the property appraisers, tax collectors, clerks
   59  of the court, local governing boards, the Department of Revenue,
   60  and taxpayers. Additional rights afforded to payors of taxes and
   61  assessments imposed under the revenue laws of this state are
   62  provided in s. 213.015. The rights afforded taxpayers to assure
   63  that their privacy and property are safeguarded and protected
   64  during tax levy, assessment, and collection are available only
   65  insofar as they are implemented in other parts of the Florida
   66  Statutes or rules of the Department of Revenue. The rights so
   67  guaranteed to state taxpayers in the Florida Statutes and the
   68  departmental rules include:
   69         (2) THE RIGHT TO DUE PROCESS.—
   70         (f) The right, in value adjustment board proceedings, to
   71  have all evidence presented and considered at a public hearing
   72  at the scheduled time, to be represented by a person specified
   73  in s. 194.034(1)(a) an attorney or agent, to have witnesses
   74  sworn and cross-examined, and to examine property appraisers or
   75  evaluators employed by the board who present testimony (see ss.
   76  194.034(1)(a) and (c) and (4), and 194.035(2)).
   77         Section 2. Section 193.1148, Florida Statutes, is created
   78  to read:
   79         193.1148 Initial just value of the assessment roll.—
   80         (1) Within 10 days after the recertification of the
   81  assessment roll by the property appraiser under s. 193.122(3),
   82  the property appraiser shall provide written notification to the
   83  department if the recertified just value of the assessment roll
   84  is less than the initial just value submitted to the department
   85  pursuant to s. 193.1142 by more than 2 percent. If the 2 percent
   86  threshold is exceeded for 3 consecutive years, the department
   87  shall:
   88         (a) Review the process used by the property appraiser in
   89  deriving the initial just values of the assessment rolls, and
   90  make written findings regarding whether the property appraiser
   91  complied with s. 193.011 and professionally accepted appraisal
   92  practices; and
   93         (b) Review the process used by the value adjustment board
   94  in changing and determining the final tax roll for the 3-year
   95  period specified in the notification or period specified in the
   96  request, and make written findings regarding whether the value
   97  adjustment board complied with chapter 194 and accepted
   98  standards in determining property values.
   99         (2) The property appraiser and value adjustment board shall
  100  cooperate with the department during its conduct of a review and
  101  make all matters and records bearing on the review available to
  102  the department upon request.
  103         Section 3. Effective July 1, 2017, subsection (3) of
  104  section 193.122, Florida Statutes, is amended to read:
  105         193.122 Certificates of value adjustment board and property
  106  appraiser; extensions on the assessment rolls.—
  107         (3) When the tax rolls have been extended pursuant to s.
  108  197.323, the second certification of the value adjustment board
  109  shall reflect all changes made by the board together with any
  110  adjustments or changes made by the property appraiser. The value
  111  adjustment board must hear all petitions and issue its second
  112  certification by June 1 following the year in which the taxes
  113  were assessed. If the number of petitions filed increases by
  114  more than 10 percent over the prior year, the June 1 deadline is
  115  extended to December 1. Upon the value adjustment board’s second
  116  such certification, the property appraiser shall recertify the
  117  tax rolls with all changes to the tax collector and shall
  118  provide public notice of the date and fact of recertification
  119  pursuant to subsection (2).
  120         Section 4. The amendment to section 193.122, Florida
  121  Statutes, made by this act first applies to the 2017 tax roll.
  122         Section 5. Subsection (3) of section 194.011, Florida
  123  Statutes, is amended to read:
  124         194.011 Assessment notice; objections to assessments.—
  125         (3) A petition to the value adjustment board must be in
  126  substantially the form prescribed by the department.
  127  Notwithstanding s. 195.022, a county officer may not refuse to
  128  accept a form provided by the department for this purpose if the
  129  taxpayer chooses to use it. A petition to the value adjustment
  130  board must be signed by the taxpayer or accompanied by the
  131  taxpayer’s written authorization for representation by a person
  132  specified in s. 194.034(1)(a). A written authorization is valid
  133  for 1 tax year, and a new written authorization by the taxpayer
  134  is required for each subsequent tax year. A petition must also
  135  shall describe the property by parcel number and shall be filed
  136  as follows:
  137         (a) The clerk of the value adjustment board and the
  138  property appraiser shall have available and shall distribute
  139  forms prescribed by the Department of Revenue on which the
  140  petition shall be made. Such petition shall be sworn to by the
  141  petitioner.
  142         (b) The completed petition shall be filed with the clerk of
  143  the value adjustment board of the county, who shall acknowledge
  144  receipt thereof and promptly furnish a copy thereof to the
  145  property appraiser.
  146         (c) The petition shall state the approximate time
  147  anticipated by the taxpayer to present and argue his or her
  148  petition before the board.
  149         (d) The petition may be filed, as to valuation issues, at
  150  any time during the taxable year on or before the 25th day
  151  following the mailing of notice by the property appraiser as
  152  provided in subsection (1). With respect to an issue involving
  153  the denial of an exemption, an agricultural or high-water
  154  recharge classification application, an application for
  155  classification as historic property used for commercial or
  156  certain nonprofit purposes, or a deferral, the petition must be
  157  filed at any time during the taxable year on or before the 30th
  158  day following the mailing of the notice by the property
  159  appraiser under s. 193.461, s. 193.503, s. 193.625, s. 196.173,
  160  or s. 196.193 or notice by the tax collector under s. 197.2425.
  161         (e) A condominium association, cooperative association, or
  162  any homeowners’ association as defined in s. 723.075, with
  163  approval of its board of administration or directors, may file
  164  with the value adjustment board a single joint petition on
  165  behalf of any association members who own parcels of property
  166  which the property appraiser determines are substantially
  167  similar with respect to location, proximity to amenities, number
  168  of rooms, living area, and condition. The condominium
  169  association, cooperative association, or homeowners’ association
  170  as defined in s. 723.075 shall provide the unit owners with
  171  notice of its intent to petition the value adjustment board and
  172  shall provide at least 20 days for a unit owner to elect, in
  173  writing, that his or her unit not be included in the petition.
  174         (f) An owner of contiguous, undeveloped parcels may file
  175  with the value adjustment board a single joint petition if the
  176  property appraiser determines such parcels are substantially
  177  similar in nature.
  178         (g) An owner of multiple tangible personal property
  179  accounts may file with the value adjustment board a single joint
  180  petition if the property appraiser determines that the tangible
  181  personal property accounts are substantially similar in nature.
  182         (h) The individual, agent, or legal entity that signs the
  183  petition becomes an agent of the taxpayer for the purpose of
  184  serving process to obtain personal jurisdiction over the
  185  taxpayer for the entire value adjustment board proceedings,
  186  including any appeals of a board decision by the property
  187  appraiser pursuant to s. 194.036.
  188         Section 6. Subsection (2) of section 194.014, Florida
  189  Statutes, is amended to read:
  190         194.014 Partial payment of ad valorem taxes; proceedings
  191  before value adjustment board.—
  192         (2) If the value adjustment board or the property appraiser
  193  determines that the petitioner owes ad valorem taxes in excess
  194  of the amount paid, the unpaid amount accrues interest at an
  195  annual percentage rate equal to the bank prime loan rate on July
  196  1, or the first business day thereafter if July 1 is a Saturday,
  197  Sunday, or legal holiday, of the tax the rate of 12 percent per
  198  year, beginning on from the date the taxes became delinquent
  199  pursuant to s. 197.333 until the unpaid amount is paid. If the
  200  value adjustment board or the property appraiser determines that
  201  a refund is due, the overpaid amount accrues interest at an
  202  annual percentage rate equal to the bank prime loan rate on July
  203  1, or the first business day thereafter if July 1 is a Saturday,
  204  Sunday, or legal holiday, of the tax the rate of 12 percent per
  205  year, beginning on from the date the taxes became delinquent
  206  pursuant to s. 197.333 until a refund is paid. Interest on
  207  overpayments shall be funded proportionately by each taxing
  208  authority in the county. Interest does not accrue on amounts
  209  paid in excess of 100 percent of the current taxes due as
  210  provided on the tax notice issued pursuant to s. 197.322. As
  211  used in this subsection, the term “bank prime loan rate” means
  212  the average predominant prime rate quoted by commercial banks to
  213  large businesses as published by the Board of Governors of the
  214  Federal Reserve System.
  215         Section 7. Section 194.015, Florida Statutes, is amended to
  216  read:
  217         194.015 Value adjustment board.—There is hereby created A
  218  value adjustment board is created for each county, which shall
  219  consist of two members of the governing body of the county as
  220  elected from the membership of the board of the said governing
  221  body, one of whom shall be elected chairperson, and one member
  222  of the school board as elected from the membership of the school
  223  board, and two citizen members, one of whom shall be appointed
  224  by the governing body of the county and must own homestead
  225  property within the county and one of whom must be appointed by
  226  the school board and must own a business occupying commercial
  227  space located within the school district. A citizen member may
  228  not be a member or an employee of any taxing authority, and may
  229  not be a person who represents property owners in any
  230  administrative or judicial review of property taxes. The members
  231  of the board may be temporarily replaced by other members of the
  232  respective boards on appointment by their respective
  233  chairpersons. Any three members shall constitute a quorum of the
  234  board, except that each quorum must include at least one member
  235  of said governing board, at least one member of the school
  236  board, and at least one citizen member and no meeting of the
  237  board shall take place unless a quorum is present. Members of
  238  the board may receive such per diem compensation as is allowed
  239  by law for state employees if both bodies elect to allow such
  240  compensation. The clerk of the governing body of the county
  241  shall be the clerk of the value adjustment board. The board
  242  shall appoint private counsel who has practiced law for over 5
  243  years and who shall receive such compensation as may be
  244  established by the board. The private counsel may not represent
  245  the property appraiser, the tax collector, any taxing authority,
  246  or any property owner in any administrative or judicial review
  247  of property taxes. A No meeting of the board may not shall take
  248  place unless counsel to the board is present. Two-fifths of the
  249  expenses of the board shall be borne by the district school
  250  board and three-fifths by the district county commission. The
  251  school board and the county commission may audit the expenses
  252  related to the value adjustment board process.
  253         Section 8. Paragraph (a) of subsection (2) of section
  254  194.032, Florida Statutes, is amended to read:
  255         194.032 Hearing purposes; timetable.—
  256         (2)(a) The clerk of the governing body of the county shall
  257  prepare a schedule of appearances before the board based on
  258  petitions timely filed with him or her. The clerk shall notify
  259  each petitioner of the scheduled time of his or her appearance
  260  at least 25 calendar days before the day of the scheduled
  261  appearance. The notice must indicate whether the petition has
  262  been scheduled to be heard at a particular time or during a
  263  block of time. If the petition has been scheduled to be heard
  264  within a block of time, the beginning and ending of that block
  265  of time must be indicated on the notice; however, as provided in
  266  paragraph (b), a petitioner may not be required to wait for more
  267  than a reasonable time, not to exceed 2 hours, after the
  268  beginning of the block of time. If the petitioner checked the
  269  appropriate box on the petition form to request a copy of the
  270  property record card containing relevant information used in
  271  computing the current assessment, the property appraiser must
  272  provide the copy to the petitioner upon receipt of the petition
  273  from the clerk regardless of whether the petitioner initiates
  274  evidence exchange, unless the property record card is available
  275  online from the property appraiser, in which case the property
  276  appraiser must notify the petitioner that the property record
  277  card is available online. Upon receipt of the notice, The
  278  petitioner or the property appraiser may reschedule the hearing
  279  a single time for good cause by submitting to the clerk a
  280  written request to reschedule, at least 5 calendar days before
  281  the day of the originally scheduled hearing. As used in this
  282  paragraph, the term “good cause” means circumstances beyond the
  283  control of the person seeking to reschedule the hearing which
  284  reasonably prevent him or her from having adequate
  285  representation at the hearing. If the hearing is rescheduled by
  286  the petitioner, the clerk shall notify the petitioner of the
  287  rescheduled date and time for his or her appearance at least 15
  288  calendar days before the date of the rescheduled appearance.
  289         Section 9. Paragraph (a) of subsection (1) of section
  290  194.034, Florida Statutes, is amended to read:
  291         194.034 Hearing procedures; rules.—
  292         (1)(a) Petitioners before the board may be represented by a
  293  corporate representative of the taxpayer, an attorney who is a
  294  member of The Florida Bar, a real estate appraiser or a real
  295  estate broker licensed under chapter 475, or a certified public
  296  accountant licensed under chapter 473, retained by the taxpayer,
  297  or an individual with power of attorney to act on behalf of the
  298  taxpayer who receives no compensation, agent and such person may
  299  present testimony and other evidence. The property appraiser or
  300  his or her authorized representatives may be represented by an
  301  attorney in defending the property appraiser’s assessment or
  302  opposing an exemption and may present testimony and other
  303  evidence. The property appraiser, each petitioner, and all
  304  witnesses shall be required, upon the request of either party,
  305  to testify under oath as administered by the chairperson of the
  306  board. Hearings shall be conducted in the manner prescribed by
  307  rules of the department, which rules shall include the right of
  308  cross-examination of any witness.
  309         Section 10. Paragraph (e) of subsection (4) of section
  310  1011.62, Florida Statutes, is amended to read:
  311         1011.62 Funds for operation of schools.—If the annual
  312  allocation from the Florida Education Finance Program to each
  313  district for operation of schools is not determined in the
  314  annual appropriations act or the substantive bill implementing
  315  the annual appropriations act, it shall be determined as
  316  follows:
  317         (4) COMPUTATION OF DISTRICT REQUIRED LOCAL EFFORT.—The
  318  Legislature shall prescribe the aggregate required local effort
  319  for all school districts collectively as an item in the General
  320  Appropriations Act for each fiscal year. The amount that each
  321  district shall provide annually toward the cost of the Florida
  322  Education Finance Program for kindergarten through grade 12
  323  programs shall be calculated as follows:
  324         (e) Prior period funding adjustment millage.—
  325         1. There shall be An additional millage to be known as the
  326  Prior Period Funding Adjustment Millage shall be levied by a
  327  school district if the prior period unrealized required local
  328  effort funds are greater than zero. The Commissioner of
  329  Education shall calculate the amount of the prior period
  330  unrealized required local effort funds as specified in
  331  subparagraph 2. and the millage required to generate that amount
  332  as specified in this subparagraph. The Prior Period Funding
  333  Adjustment Millage shall be the quotient of the prior period
  334  unrealized required local effort funds divided by the current
  335  year taxable value certified to the Commissioner of Education
  336  pursuant to sub-subparagraph (a)1.a. This levy shall be in
  337  addition to the required local effort millage certified pursuant
  338  to this subsection. Such millage shall not affect the
  339  calculation of the current year’s required local effort, and the
  340  funds generated by such levy shall not be included in the
  341  district’s Florida Education Finance Program allocation for that
  342  fiscal year. For purposes of the millage to be included on the
  343  Notice of Proposed Taxes, the Commissioner of Education shall
  344  adjust the required local effort millage computed pursuant to
  345  paragraph (a) as adjusted by paragraph (b) for the current year
  346  for any district that levies a Prior Period Funding Adjustment
  347  Millage to include all Prior Period Funding Adjustment Millage.
  348  For the purpose of this paragraph, there shall be a Prior Period
  349  Funding Adjustment Millage shall be levied for each year
  350  certified by the Department of Revenue pursuant to sub
  351  subparagraph (a)2.a. since the previous year certification and
  352  for which the calculation in sub-subparagraph 2.b. is greater
  353  than zero.
  354         2.a. As used in this subparagraph, the term:
  355         (I) “Prior year” means a year certified under sub
  356  subparagraph (a)2.a.
  357         (II) “Preliminary taxable value” means:
  358         (A) If the prior year is the 2009-2010 fiscal year or
  359  later, the taxable value certified to the Commissioner of
  360  Education pursuant to sub-subparagraph (a)1.a.
  361         (B) If the prior year is the 2008-2009 fiscal year or
  362  earlier, the taxable value certified pursuant to the final
  363  calculation as specified in former paragraph (b) as that
  364  paragraph existed in the prior year.
  365         (III) “Final taxable value” means the district’s taxable
  366  value as certified by the property appraiser pursuant to s.
  367  193.122(2) or (3), if applicable. This is the certification that
  368  reflects all final administrative actions of the value
  369  adjustment board.
  370         b. For purposes of this subsection and with respect to each
  371  year certified pursuant to sub-subparagraph (a)2.a., if the
  372  district’s prior year preliminary taxable value is greater than
  373  the district’s prior year final taxable value, the prior period
  374  unrealized required local effort funds are the difference
  375  between the district’s prior year preliminary taxable value and
  376  the district’s prior year final taxable value, multiplied by the
  377  prior year district required local effort millage. If the
  378  district’s prior year preliminary taxable value is less than the
  379  district’s prior year final taxable value, the prior period
  380  unrealized required local effort funds are zero.
  381         c. For the 2016-2017 2015-2016 fiscal year only, if a
  382  district’s prior period unrealized required local effort funds
  383  and prior period district required local effort millage cannot
  384  be determined because such district’s final taxable value has
  385  not yet been certified pursuant to s. 193.122(2) or (3), for the
  386  2016 2015 tax levy, the Prior Period Funding Adjustment Millage
  387  for such fiscal year shall be levied, if not previously levied,
  388  in 2016 2015 in an amount equal to 75 percent of such district’s
  389  most recent unrealized required local effort for which a Prior
  390  Period Funding Adjustment Millage was determined as provided in
  391  this section. Upon certification of the final taxable value for
  392  the 2012, 2013, or 2014 and 2015 tax rolls in accordance with s.
  393  193.122(2) or (3), the Prior Period Funding Adjustment Millage
  394  levied in 2015 and 2016 and 2017 shall be adjusted to include
  395  any shortfall or surplus in the prior period unrealized required
  396  local effort funds that would have been levied in 2014 or 2015
  397  or 2016, had the district’s final taxable value been certified
  398  pursuant to s. 193.122(2) or (3) for the 2014 or 2015 or 2016
  399  tax levy. If this adjustment is made for a surplus, the
  400  reduction in prior period millage may not exceed the prior
  401  period funding adjustment millage calculated pursuant to
  402  subparagraph 1. and sub-subparagraphs a. and b. and any
  403  additional reduction shall be carried forward to the subsequent
  404  fiscal year.
  405         Section 11. Except as otherwise expressly provided in this
  406  act, this act shall take effect July 1, 2016.