THE BILL ITSELF
HB 1413
Assessment of Property with Decreasing Just Valuation
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A bill to be entitled
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An act relating to assessment of property with
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decreasing just valuation; amending ss. 193.155,
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193.1554, and 193.1555, F.S.; prohibiting increases in
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certain assessed valuations if the just value of the
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property has decreased since the previous assessment;
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providing a contingent effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Subsection (1) of section 193.155, Florida
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Statutes, is amended, and subsection (4) of that section is
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republished, to read:
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193.155 Homestead assessments.—Homestead property shall be
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assessed at just value as of January 1, 1994. Property receiving
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the homestead exemption after January 1, 1994, shall be assessed
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at just value as of January 1 of the year in which the property
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receives the exemption unless the provisions of subsection (8)
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apply.
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(1)(a) Except as provided in paragraph (b), beginning in
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1995, or the year following the year the property receives
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homestead exemption, whichever is later, the property shall be
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reassessed annually on January 1. Any change resulting from such
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reassessment shall not exceed the lower of the following:
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1.(a) Three percent of the assessed value of the property
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for the prior year; or
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2.(b) The percentage change in the Consumer Price Index
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for All Urban Consumers, U.S. City Average, all items 1967=100,
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or successor reports for the preceding calendar year as
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initially reported by the United States Department of Labor,
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Bureau of Labor Statistics.
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(b) Except as provided in subsection (4), the assessed
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value of homestead property may not increase if the just value
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of the property is less than the just value of the property on
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the preceding January 1.
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(4)(a) Except as provided in paragraph (b) and s. 193.624,
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changes, additions, or improvements to homestead property shall
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be assessed at just value as of the first January 1 after the
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changes, additions, or improvements are substantially completed.
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(b)1. Changes, additions, or improvements that replace all
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or a portion of homestead property, including ancillary
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improvements, damaged or destroyed by misfortune or calamity
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shall be assessed upon substantial completion as provided in
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this paragraph. Such assessment must be calculated using the
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homestead property's assessed value as of the January 1
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immediately before the date on which the damage or destruction
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was sustained, subject to the assessment limitations in
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subsections (1) and (2), when:
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a. The square footage of the homestead property as changed
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or improved does not exceed 130 percent of the square footage of
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the homestead property before the damage or destruction; or
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b. The total square footage of the homestead property as
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changed or improved does not exceed 2,000 square feet.
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2. The homestead property's assessed value must be
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increased by the just value of that portion of the changed or
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improved homestead property which is in excess of 130 percent of
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the square footage of the homestead property before the damage
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or destruction or of that portion exceeding 2,000 square feet.
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3. Homestead property damaged or destroyed by misfortune
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or calamity which, after being changed or improved, has a square
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footage of less than 100 percent of the homestead property's
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total square footage before the damage or destruction shall be
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assessed pursuant to subsection (5).
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4. Changes, additions, or improvements assessed pursuant
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to this paragraph must be reassessed pursuant to subsection (1)
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in subsequent years. This paragraph applies to changes,
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additions, or improvements commenced within 5 years after the
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January 1 following the damage or destruction of the homestead.
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(c) Changes, additions, or improvements that replace all
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or a portion of real property that was damaged or destroyed by
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misfortune or calamity shall be assessed upon substantial
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completion as if such damage or destruction had not occurred and
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in accordance with paragraph (b) if the owner of such property:
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1. Was permanently residing on such property when the
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damage or destruction occurred;
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2. Was not entitled to receive homestead exemption on such
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property as of January 1 of that year; and
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3. Applies for and receives homestead exemption on such
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property the following year.
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(d) Changes, additions, or improvements include
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improvements made to common areas or other improvements made to
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property other than to the homestead property by the owner or by
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an owner association, which improvements directly benefit the
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homestead property. Such changes, additions, or improvements
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shall be assessed at just value, and the just value shall be
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apportioned among the parcels benefiting from the improvement.
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Section 2. Subsection (3) of section 193.1554, Florida
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Statutes, is amended, and subsection (6) of that section is
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republished, to read:
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193.1554 Assessment of nonhomestead residential property.—
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(3)(a) Except as provided in paragraph (b), beginning in
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the year following the year the nonhomestead residential
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property becomes eligible for assessment pursuant to this
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section, the property shall be reassessed annually on January 1.
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Any change resulting from such reassessment may not exceed 10
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percent of the assessed value of the property for the prior
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year.
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(b) Except for assessments described in subsection (6),
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for all levies other than school district levies, the assessed
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value of nonhomestead residential property may not increase if
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the just value of the property is less than the just value of
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the property on the preceding January 1.
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(6)(a) Except as provided in paragraph (b) and s. 193.624,
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changes, additions, or improvements to nonhomestead residential
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property shall be assessed at just value as of the first January
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1 after the changes, additions, or improvements are
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substantially completed.
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(b)1. Changes, additions, or improvements that replace all
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or a portion of nonhomestead residential property, including
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ancillary improvements, damaged or destroyed by misfortune or
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calamity must be assessed upon substantial completion as
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provided in this paragraph. Such assessment must be calculated
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using the nonhomestead property's assessed value as of the
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January 1 immediately before the date on which the damage or
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destruction was sustained, subject to the assessment limitations
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in subsections (3) and (4), when:
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a. The square footage of the property as changed or
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improved does not exceed 110 percent of the square footage of
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the property before the damage or destruction; or
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b. The total square footage of the property as changed or
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improved does not exceed 1,500 square feet.
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2. The property's assessed value must be increased by the
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just value of that portion of the changed or improved property
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which is in excess of 110 percent of the square footage of the
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property before the damage or destruction or of that portion
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exceeding 1,500 square feet.
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3. Property damaged or destroyed by misfortune or calamity
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which, after being changed or improved, has a square footage of
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less than 100 percent of the property's total square footage
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before the damage or destruction shall be assessed pursuant to
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subsection (8).
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4. Changes, additions, or improvements assessed pursuant
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to this paragraph shall be reassessed pursuant to subsection (3)
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in subsequent years. This paragraph applies to changes,
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additions, or improvements commenced within 3 years after the
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January 1 following the damage or destruction of the property.
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(c) Changes, additions, or improvements include
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improvements made to common areas or other improvements made to
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property other than to the nonhomestead residential property by
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the owner or by an owner association, which improvements
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directly benefit the property. Such changes, additions, or
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improvements shall be assessed at just value, and the just value
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shall be apportioned among the parcels benefiting from the
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improvement.
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Section 3. Subsection (3) of section 193.1555, Florida
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Statutes, is amended, and subsection (6) of that section is
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republished, to read:
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193.1555 Assessment of certain residential and
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nonresidential real property.—
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(3)(a) Except as provided in paragraph (b), beginning in
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the year following the year the property becomes eligible for
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assessment pursuant to this section, the property shall be
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reassessed annually on January 1. Any change resulting from such
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reassessment may not exceed 10 percent of the assessed value of
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the property for the prior year.
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(b) Except for assessments described in subsection (6),
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for all levies other than school district levies, the assessed
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value of nonresidential real property may not increase if the
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just value of the property is less than the just value of the
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property on the preceding January 1.
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(6)(a) Except as provided in paragraph (b), changes,
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additions, or improvements to nonresidential real property shall
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be assessed at just value as of the first January 1 after the
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changes, additions, or improvements are substantially completed.
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(b)1. Changes, additions, or improvements that replace all
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or a portion of nonresidential real property, including
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ancillary improvements, damaged or destroyed by misfortune or
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calamity must be assessed upon substantial completion as
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provided in this paragraph. Such assessment must be calculated
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using the nonresidential real property's assessed value as of
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the January 1 immediately before the date on which the damage or
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destruction was sustained, subject to the assessment limitations
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in subsections (3) and (4), when:
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a. The square footage of the property as changed or
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improved does not exceed 110 percent of the square footage of
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the property before the damage or destruction; and
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b. The changes, additions, or improvements do not change
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the property's character or use.
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2. The property's assessed value must be increased by the
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just value of that portion of the changed or improved property
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which is in excess of 110 percent of the square footage of the
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property before the damage or destruction.
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3. Property damaged or destroyed by misfortune or calamity
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which, after being changed or improved, has a square footage of
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less than 100 percent of the property's total square footage
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before the damage or destruction shall be assessed pursuant to
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subsection (8).
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4. Changes, additions, or improvements assessed pursuant
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to this paragraph must be reassessed pursuant to subsection (3)
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in subsequent years. This paragraph applies to changes,
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additions, or improvements commenced within 3 years after the
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January 1 following the damage or destruction of the property.
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Section 4. This act shall take effect on the effective
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date of the amendment to the State Constitution proposed by HJR
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1411 or a similar joint resolution having substantially the same
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specified intent and purpose, if such amendment to the State
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Constitution is approved at the next general election or at an
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earlier special election specifically authorized by law for that
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purpose.