12D-8.0061: Assessments; Homestead Property Assessments at Just Value
12D-8.0063: Assessment of Changes, Additions, or Improvements to a Homestead
12D-8.011: Uniform Standards for Computer Operations: Minimum Data Requirements
PURPOSE AND EFFECT: The purpose of the amendment to Rule 12D-8.0061, F.A.C., is to implement the provisions of Chapter 2006-38, Laws of Florida, providing that a change of ownership to homestead property does not occur where the transfer instrument meets certain criteria.
The purpose of the amendment to Rule 12D-8.0063, F.A.C., is to implement the provisions of Chapter 2006-311, Laws of Florida, providing a method for assessment of changes to homestead property damaged or destroyed by misfortune or calamity.
The purpose of the amendments to Rule 12D-8.011, F.A.C., is to update coding and exemption values for data files maintained by property appraisers.
SUBJECT AREA TO BE ADDRESSED: Change in ownership of homestead property. Assessment of homestead property damaged or destroyed. Data file exemption codes and associated values.
SPECIFIC AUTHORITY: 195.027(1), 213.06(1) FS.
LAW IMPLEMENTED: 193.011, 193.023, 193.155, 213.05, 192.042, 193.1551, 195.027, 196.031, 196.075, 196.081, 196.091, 196.101, 196.175, 196.195, 196.196, 196.197, 196.1975, 196.198, 196.1985, 196.1986, 196.1987, 196.199, 196.1995, 196.1997, 196.1998, 196.2001, 196.202, 196.24, 213.05 FS.
A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: December 7, 2006, 9:30 a.m.
PLACE: Larson Building, Room 142, 200 E. Gaines St., Tallahassee, Florida
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Sharon Gallops, Property Tax Technical Unit, Department of Revenue, P.O. Box 3000, Tallahassee, Florida 32315-3000, telephone (850)414-6108, e-mail address gallopss@dor.state.fl.us
NOTICE UNDER THE AMERICANS WITH DISABILITIES ACT: Any person requiring special accommodations to participate in this workshop is asked to advise the Department at least 48 hours before the workshop by contacting Larry Green, (850)922-4830. If you are hearing or speech impaired, please contact the Department by using the Florida Relay Service, which can be reached at 1(800)955-8770 (Voice) and (800)955-8771 (TDD).
THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:
12D-8.0061 Assessments;
(1) No change.
(2) Real property shall be assessed at just value as of January 1 of the year following any change of ownership. If the change of ownership occurs on January 1, subsection (1) shall apply. For purposes of this section, a change of ownership includes any transfer of homestead property receiving the exemption, but does not include any of the following:
(a) Any transfer in which the person who receives homestead exemption is the same person who was entitled to receive homestead exemption on that property before the transfer, and
1. The transfer is to correct an error; or
2. The transfer is between legal and equitable title; or
3. The change or transfer is by means of an instrument in which the owner is listed as both grantor and grantee of the real property and one or more other individuals are additionally named as grantee. However, a change of ownership occurs if any additional individual named as grantee applies for a homestead exemption on the property.
(b) The transfer is between husband and wife, including a transfer to a surviving spouse or a transfer due to a dissolution of marriage, provided that the transferee applies for the exemption and is otherwise entitled to the exemption;
(c) The transfer, upon the death of the owner, is between owner and a legal or natural dependent who permanently resides on the property; or
(d) The transfer occurs by operation of law under Section 732.4015, Florida Statutes.
Specific Authority 195.027(1), 213.06(1) FS. Law Implemented 193.011, 193.023, 193.155, 213.05 FS. History–New 12-27-94, Amended________.
12D-8.0063 Assessment of Changes, Additions, or Improvements to a
(1) through (2) No change.
(3)(a) Changes, additions, or improvements do not include replacement of a portion of homestead real property damaged or destroyed by misfortune or calamity when:
1.a. The square footage of the property as repaired or replaced does not cause the total square footage to exceed 1500 square feet, or
b. The square footage of the property as repaired or replaced does not exceed 110 percent of the square footage of the property before the damage or destruction; and
2. The changes, additions, or improvements are commenced within 3 years after the January 1 following the damage or destruction. the just value of the damaged or destroyed portion as replaced is not more than 125 percent of the just value of the damaged or destroyed portion. The replacement just value in excess of 125 percent shall be treated as a change, addition, or improvement and added to the assessed value (including the assessment limitation change) of the homestead as of January 1 of the year following the substantial completion of the replacement of the damaged or destroyed portion.
(b) When the repair or replacement of such properties results in square footage greater than 1500 square feet or otherwise greater than 110 percent of the square footage before the damage, such repair or replacement shall be treated as a change, addition, or improvement. The homestead property’s just value shall be increased by the just value of that portion of the changed or improved property in excess of 1500 square feet or in excess of 110 percent of the square footage of the property before the damage, and that just value shall be added to the assessed value (including the assessment limitation change) of the homestead as of January 1 of the year following the substantial completion of the replacement of the damaged or destroyed portion. In lieu of the formula in paragraph (a) and subsection (4),changes
(c) Changes additions or improvements to homestead property rendered uninhabitable in one or more of the named 2004 storms is limited to the square footage exceeding 110 percent of the homestead property’s total square footage. However, such Such homestead properties with 1350 or less square feet which are rebuilt up to 1500 total square feet are not considered changes, additions or improvements subject to assessment at just value. This paragraph shall apply to such homestead properties for which repairs are completed by January 1, 2008 and applies retroactively to January 1, 2005. See chapter 2005-268, Laws of Florida.
(d) These provisions apply to changes, additions or improvements commenced within 3 years after January 1 following the damage or destruction of the homestead and apply retroactively to January 1, 2006.
(4) The replacement just value in excess of 125 percent, for purposes of this section, shall be measured directly by considering mass data collected, market evidence, and cost, or computed as follows:
(a) Determine the just value of the total homestead property prior to damage or destruction.
Example: Just value = $100,000 and assessed value = $80,000;
(b) Attribute a just value to the damaged or destroyed portion of the homestead property.
Example: $10,000 (the just value of the remaining property including land is $90,000);
(c) Compute the replacement just value that will be treated as not a change, addition, or improvement, by multiplying the amount determined under paragraph (b) by 125 percent.
Example: $10,000 x 125 percent = $12,500;
(d) Determine the just value of the total property after the damaged or destroyed portion has been replaced.
Example: $120,000;
(e) Determine the just value of the replaced portion of the property.
Example: $120,000 - $90,000 = $30,000; then
(f) Subtract the amount computed under paragraph (c) from the amount determined under paragraph (e).
Example: $30,000 - $12,500 = $17,500.
This excess value shall be treated as a change, addition, or improvement, and added to the assessed value, including the assessment limitation change for the year, as provided in subsection (3).
Example: $80,000 + $2,248 ($80,000 x 2.81 percent consumer price index (CPI), assessment limitation change) + $17,500 = $99,748.
(5) If the damaged portion is not replaced or substantially replaced in the year the damage occurred, but is replaced in a subsequent year, the replacement will be treated as a change, addition, or improvement as provided in subsections (3)(a) and (4), adjusted for changes in market and homestead property assessment limitation values. The just value of the damaged portion of property after the replacement or repair shall be compared to 125 percent of the value of the damaged portion as provided in subsections (3)(a) and (4).
(4)(6) When any portion of homestead property damaged by misfortune or calamity is and not replaced, or the replacement is not substantially completed in the year the damage occurred, or the square footage of the property after repair or replacement is less than 100 percent of the square footage prior to the damage or destruction portion as replaced is less than 100 percent of its previous just value, the assessed value of the property shall be reduced to the just value of the property after the destruction or damage of the property. If the just value after the damage or destruction is less than the total assessed value before the damage or destruction, the assessed value will be lowered to the just value.
(5) The provisions of subsection (3) of this rule section also apply to property where the owner permanently resides on the property at any time during the year when the damage or destruction occurred; the owner is not entitled to homestead exemption on January 1 of the year in which the damage or destruction occurred; and the owner applies for and receives homestead exemption on the property the following year.
Specific Authority 195.027(1), 213.06(1) FS. Law Implemented Ch. 2005-268, L.O.F., 192.042, 193.011, 193.023, 193.155, 193.1551, 213.05 FS. History–New 12-27-94, Amended 12-25-96, 1-16-06, ________.
12D-8.011 Uniform Standards for Computer Operations: Minimum Data Requirements.
(1) Each property appraiser shall maintain the following data in one or more of his or her data processing files regarding each parcel of real estate in his or her county.
(a) through (n) No change.
(o)1. Exemption type. A code indicating the type of exemption granted to the parcel and the value(s) thereof. The property appraiser may continue to use any existing codes provided they are translated to the codes prescribed when submitted to the Department. The code is as follows:
A – Senior
B – Blind (Section 196.202,
C – Charitable, Religious, Scientific or Literary (Sections 196.196, 196.1987,
D – Disabled (Sections 196.081, 196.091, 196.101,
E – Economic Development (Section 196.1995,
G – Federal Government Property (Section 196.199(1)(a),
H – Historic Property (Section 196.1997,
I – Historic Property Open to the Public (Section 196.1998,
L –Labor Organization (Section 196.1985,
M – Homes for the Aged (Section 196.1975,
N – Nursing Homes, Hospitals, Homes for Special Services (Section 196.197,
O – Widowers (Section 196.202,
P – Totally and Permanently Disabled (Section 196.202,
Q – Combination (
R – Renewable Energy Source (Section 196.175,
S – Sewer and Water Not-for-Profit (Section 196.2001,
T – Community Centers (Section 196.1986,
U – Educational Property (Section 196.198,
V – Disabled Veteran/Spouse (Section 196.24,
W – Widows (Section 196.202,
X –
Y – Combination (
Z – Combination (Renewable Energy Source, Economic Development – Sections 196.175, 196.1995,
1 – Licensed Child Care Facility Operating in Enterprise Zone (Section 196.095,
2 – Historic Property Used for Certain Commercial or Nonprofit Purposes (Section 196.1961,
3 – Proprietary Continuing Care Facilities (Section 196.1977,
4 – Affordable Housing Property (Section 196.1978,
5 –
6 – Public Property Used under License or Lease Agreement Entered into Prior to January 1, 1969 (Section 196.1993,
7 – Space Laboratories and Carriers (Section 196.1994,
8 –Water and Wastewater Systems Not-for-Profit (Section 196.2002,
9 – Contiguous multiple parcels with a single homestead exemption or single parcels with multiple homestead exemptions
2. Personal exemption codes shall be “0” (zero) indicating the exemption does not apply or the applicable code provided in this rule subsection indicating an exemption does apply. Five of six personal exemptions may apply for each parcel, in the following order.
Exemption Type Maximum Value Code
Widowed $500 W/O
Blind $500 B
Disabled $500 P
Veteran Disabled/Spouse $10,000 5000 V
Disabled (100 percent Exempt) D
An individual who qualified for the $25,000 exemption may also be entitled to the $500 exemption of section 3(b), Art. VII, State Const. (for widows, widowers, or blind or totally and permanently disabled persons) and Section 196.202, Florida Statutes, and/or the $5000 exemption under section 196.24, Florida Statutes (disabled veterans/spouse). In no event shall the aggregate exemption exceed $26,500 (see subsection 12D-7.003(2), F.A.C.), for individuals exempt under section 196.202, Florida Statutes, or $36,000 (see subsection 12D-7.003(2), F.A.C.) $31,000 for individuals exempt under section 196.24, Florida Statutes, except for total exemptions under Sections 196.081, 196.091, or 196.101, Florida Statutes.
(p) through (4) No change.
Specific Authority 195.027(1), 213.06(1) FS. Law Implemented 195.027, 196.031, 196.075, 196.081, 196.091, 196.101, 196.175, 196.195, 196.196, 196.197, 196.1975, 196.198, 196.1985, 196.1986, 196.1987, 196.199, 196.1995, 196.1997, 196.1998, 196.2001, 196.202, 196.24, 213.05 FS. History–New 12-7-76, Amended 9-30-82, Formerly 12D-8.11, Amended 12-31-98, 12-30-02, ________.