FL Stat § 193.1554 (2021)
2021 Florida Statutes|Title XIV - Taxation and Finance|Chapter 193 - Assessments|Part I - General Provisions (Ss. 193.011-193.1557)|193.1554 - Assessment of nonhomestead residential property.

193.1554 Assessment of nonhomestead residential property.—(1) As used in this section, the term “nonhomestead residential property” means residential real property that contains nine or fewer dwelling units, including vacant property zoned and platted for residential use, and that does not receive the exemption under s. 196.031.(2) For all levies other than school district levies, nonhomestead residential property shall be assessed at just value as of January 1 of the year that the property becomes eligible for assessment pursuant to this section.(3) Beginning in the year following the year the nonhomestead residential property becomes eligible for assessment pursuant to this section, the property shall be reassessed annually on January 1. Any change resulting from such reassessment may not exceed 10 percent of the assessed value of the property for the prior year.(4) If the assessed value of the property as calculated under subsection (3) exceeds the just value, the assessed value of the property shall be lowered to the just value of the property.(5) Except as provided in this subsection, property assessed under this section shall be assessed at just value as of January 1 of the year following a change of ownership or control. Thereafter, the annual changes in the assessed value of the property are subject to the limitations in subsections (3) and (4). For purpose of this section, a change of ownership or control means any sale, foreclosure, transfer of legal title or beneficial title in equity to any person, or the cumulative transfer of control or of more than 50 percent of the ownership of the legal entity that owned the property when it was most recently assessed at just value, except as provided in this subsection. There is no change of ownership if:(a) The transfer of title is to correct an error.(b) The transfer is between legal and equitable title.(c) The transfer is between husband and wife, including a transfer to a surviving spouse or a transfer due to a dissolution of marriage.(d) For a publicly traded company, the cumulative transfer of more than 50 percent of the ownership of the entity that owns the property occurs through the buying and selling of shares of the company on a public exchange. This exception does not apply to a transfer made through a merger with or an acquisition by another company, including an acquisition by acquiring outstanding shares of the company.(6)(a) Except as provided in paragraph (b) and s. 193.624, changes, additions, or improvements to nonhomestead residential property shall be assessed at just value as of the first January 1 after the changes, additions, or improvements are substantially completed.1(b)1. Changes, additions, or improvements that replace all or a portion of nonhomestead residential property, including ancillary improvements, damaged or destroyed by misfortune or calamity must be assessed upon substantial completion as provided in this paragraph. Such assessment must be calculated using the nonhomestead property’s assessed value as of the January 1 immediately before the date on which the damage or destruction was sustained, subject to the assessment limitations in subsections (3) and (4), when:a. The square footage of the property as changed or improved does not exceed 110 percent of the square footage of the property before the damage or destruction; orb. The total square footage of the property as changed or improved does not exceed 1,500 square feet.2. The property’s assessed value must be increased by the just value of that portion of the changed or improved property which is in excess of 110 percent of the square footage of the property before the damage or destruction or of that portion exceeding 1,500 square feet.3. Property damaged or destroyed by misfortune or calamity which, after being changed or improved, has a square footage of less than 100 percent of the property’s total square footage before the damage or destruction shall be assessed pursuant to subsection (8).4. Changes, additions, or improvements assessed pursuant to this paragraph shall be reassessed pursuant to subsection (3) in subsequent years. This paragraph applies to changes, additions, or improvements commenced within 3 years after the January 1 following the damage or destruction of the property.(c) Changes, additions, or improvements include improvements made to common areas or other improvements made to property other than to the nonhomestead residential property by the owner or by an owner association, which improvements directly benefit the property. Such changes, additions, or improvements shall be assessed at just value, and the just value shall be apportioned among the parcels benefiting from the improvement.(7) Any increase in the value of property assessed under this section which is attributable to combining or dividing parcels shall be assessed at just value, and the just value shall be apportioned among the parcels created.(a) For divided parcels, the amount by which the sum of the just values of the divided parcels exceeds what the just value of the parcel would be if undivided shall be attributable to the division. This amount shall be apportioned to the parcels pro rata based on their relative just values.(b) For combined parcels, the amount by which the just value of the combined parcel exceeds what the sum of the just values of the component parcels would be if they had not been combined shall be attributable to the combination.(c) A parcel that is combined or divided after January 1 and included as a combined or divided parcel on the tax notice is not considered to be a combined or divided parcel until the January 1 on which it is first assessed as a combined or divided parcel.(8) When property is destroyed or removed and not replaced, the assessed value of the parcel shall be reduced by the assessed value attributable to the destroyed or removed property.(9) Erroneous assessments of nonhomestead residential property assessed under this section may be corrected in the following manner:(a) If errors are made in arriving at any assessment under this section due to a material mistake of fact concerning an essential characteristic of the property, the just value and assessed value must be recalculated for every such year, including the year in which the mistake occurred.(b) If changes, additions, or improvements are not assessed at just value as of the first January 1 after they were substantially completed, the property appraiser shall determine the just value for such changes, additions, or improvements for the year they were substantially completed. Assessments for subsequent years shall be corrected, applying this section if applicable.(c) If back taxes are due pursuant to s. 193.092, the corrections made pursuant to this subsection shall be used to calculate such back taxes.(10) If the property appraiser determines that for any year or years within the prior 10 years a person or entity who was not entitled to the property assessment limitation granted under this section was granted the property assessment limitation, the property appraiser making such determination shall serve upon the owner a notice of intent to record in the public records of the county a notice of tax lien against any property owned by that person or entity in the county, and such property must be identified in the notice of tax lien. Such property that is situated in this state is subject to the unpaid taxes, plus a penalty of 50 percent of the unpaid taxes for each year and 15 percent interest per annum. Before a lien may be filed, the person or entity so notified must be given 30 days to pay the taxes and any applicable penalties and interest. If the property appraiser improperly grants the property assessment limitation as a result of a clerical mistake or an omission, the person or entity improperly receiving the property assessment limitation may not be assessed a penalty or interest.History.—ss. 10, 11, ch. 2007-339; s. 4, ch. 2008-173; s. 12, ch. 2009-21; s. 2, ch. 2010-109; ss. 1, 2, ch. 2011-125; s. 6, ch. 2012-193; s. 3, ch. 2013-77; s. 6, ch. 2016-128; ss. 4, 5, ch. 2021-31.1Note.—A. Section 7, ch. 2021-31, provides that:“(1) The amendments made by this act to ss. 193.155(4), 193.1554, and 193.1555, Florida Statutes, which are effective July 1, 2021, are remedial and clarifying in nature, but the amendments may not affect any assessment for tax rolls before 2021 unless the assessment is under review by a value adjustment board or a Florida court as of July 1, 2021. If changes, additions, or improvements that replaced all or a portion of property damaged or destroyed by misfortune or calamity were not assessed in accordance with this act as of the January 1 immediately after they were substantially completed, the property appraiser must determine the assessment for the year they were substantially completed and recalculate the just and assessed value for each subsequent year so that the 2021 tax roll and subsequent tax rolls will be corrected.“(2) The amendments made by this act to ss. 193.155(4), 193.1554, and 193.1555, Florida Statutes, which are effective July 1, 2021, apply retroactively to assessments made on or after January 1, 2021.”B. Section 5, ch. 2021-31, amended paragraph (6)(b) “[e]ffective upon the effective date of the amendment to the State Constitution proposed by HJR 1377, 2021 Regular Session, or a similar joint resolution having substantially the same specific intent and purpose, if such amendment to the State Constitution is approved at the general election held in November 2022 or at an earlier special election specifically authorized by law for that purpose.” If such an amendment is approved, effective January 1, 2023, paragraph (6)(b) will read:(b)1. Changes, additions, or improvements that replace all or a portion of nonhomestead residential property, including ancillary improvements, which was damaged or destroyed by misfortune or calamity or which was voluntarily elevated must be assessed upon substantial completion as provided in this paragraph. Such assessment must be calculated using the nonhomestead property’s assessed value as of the January 1 immediately before the date on which the damage or destruction was sustained or the property was voluntarily elevated, subject to the assessment limitations in subsections (3) and (4), when:a. The square footage of the property as changed, improved, or elevated does not exceed 110 percent of the square footage of the property before the qualifying damage, destruction, or elevation; orb. The total square footage of the property as changed, improved, or elevated does not exceed 1,500 square feet.2. The property’s assessed value must be increased by the just value of that portion of the changed, improved, or elevated property which is in excess of 110 percent of the square footage of the property before the qualifying damage, destruction, or voluntary elevation or of that portion exceeding 1,500 square feet.3. Property damaged, destroyed, or voluntarily elevated which, after being changed or improved, has a square footage of less than 100 percent of the property’s total square footage before the qualifying damage, destruction, or voluntary elevation shall be assessed pursuant to subsection (8).4.a. Voluntarily elevated property qualifies under this paragraph if, at the time the voluntary elevation commenced:(I) The property was not deemed uninhabitable in part or in whole under state or local law;(II) All ad valorem taxes, special assessments, county or municipal utility charges, and other government-imposed liens against the property had been paid; and(III) The property did not comply with the Federal Emergency Management Agency’s National Flood Insurance Program requirements and Florida Building Code elevation requirements and was elevated in compliance with such requirements. The property owner must provide elevation certificates for both the original and elevated property. As used in this paragraph, the term “voluntary elevation” or “voluntarily elevated” means the elevation of an existing nonconforming nonhomestead residential property or the removal and rebuilding of nonconforming nonhomestead residential property.b. Conforming areas below an elevated structure designated only for parking, storage, or access may not be included in the 110 percent calculation unless the area exceeds 110 percent of the lowest level square footage before the voluntary elevation, in which case the area in excess of 110 percent of the lowest level square footage before the voluntary elevation shall be included in the 110 percent calculation.c. This paragraph does not apply to nonhomestead residential property that was voluntarily elevated if, after completion of the elevation, there is a change in the classification of the property pursuant to s. 195.073(1).5. Changes, additions, or improvements assessed pursuant to this paragraph shall be reassessed pursuant to subsection (3) in subsequent years. For changes, additions, or improvements made to replace property that was damaged or destroyed by misfortune or calamity, this paragraph applies to the changes, additions, or improvements commenced within 3 years after the January 1 following the qualifying damage or destruction of the property.