Transfer of Homestead Assessment Difference; "Portability"; Sworn Statement Required; Denials and Late Filed Applications for Transfer of Assessment Limitation Differential (Portability)

 

DEPARTMENT OF REVENUE
Property Tax Oversight Program

RULE NO.:RULE TITLE:
12DER12-07Transfer of Homestead Assessment Difference; “Portability”; Sworn Statement Required; Denials and Late Filed Applications for Transfer of Assessment Limitation Differential (Portability)
SPECIFIC REASONS FOR FINDING AN IMMEDIATE DANGER TO THE PUBLIC HEALTH, SAFETY OR WELFARE: Chapter 2008-173, Laws of Florida, authorized the Department of Revenue to adopt emergency rules that could remain in effect for 18 months and that could be renewed. This act further provides that all conditions imposed by Chapter 120, Florida Statutes, were deemed to be met.
REASON FOR CONCLUDING THAT THE PROCEDURE IS FAIR UNDER THE CIRCUMSTANCES: The Legislature expressly authorized the Department of Revenue to adopt emergency rules that implement the provisions of Chapter 2008-173, Laws of Florida. The law provides that these emergency rules remain in effect for a period of 18 months and that they may be renewed during the pendency of procedures to adopt rules addressing the subject of the emergency rules. This emergency rule renews and replaces Emergency Rules 12DER11-03 and 12DER11-06, and this emergency rule combines and is basically identical to these two emergency rules. The Department of Revenue took several actions to inform interested parties about the forms, procedures, and emergency rules that were adopted on May 27, 2011, to implement this new law, and to give these parties an opportunity to review and comment. These interested parties included Property Appraisers and the professional associations that represent them, taxing authorities, including counties, municipalities, and independent districts, school districts, their associations, and practitioners who have told the Department that they want to receive all information associated with property tax rulemaking. The actions that the Department took when Emergency Rules 12DER11-03 and 12DER11-06 were being prepared for adoption include: making the proposed drafts available via the Internet for public review and comments; and, establishing a new Department email address to make it easier for interested parties to submit comments and questions to the agency.
SUMMARY: The purpose of this emergency rule is to provide procedures for applicant taxpayers and property appraisers regarding denials and late applications of portability. This rule also provides the limitations and special rules to be observed and the forms to be used by applicant taxpayers and property appraisers for the transfer of assessment limitation difference, when a homestead is abandoned.
THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS: Larry Green, Department of Revenue, Property Tax Technical Unit, P.O. Box 3000, Tallahassee, Florida 32315-3000; telephone [phone]; Fax [phone]; email address: [e-mail].

THE FULL TEXT OF THE EMERGENCY RULE IS:

 

12DER12-07 Transfer of Homestead Assessment Difference; “Portability”; Sworn Statement Required; Denials and Late Filed Applications for Transfer of Assessment Limitation Differential (Portability).

(1) This rule replaces Emergency Rules 12DER11-03 and 12DER11-06, which took effect May 27, 2011. This rule will remain in effect during the pendency of procedures to adopt rules addressing the subject matter of this emergency rule.

(2) Section 193.155(8), F.S., provides the procedures for the transfer of the assessment limitation difference, within stated limits, when a homestead is abandoned. This emergency rule describes those procedures, which are an alternative to assessment at just value. The transfer of the assessment limitation difference is to the just value of the interest owned by those persons that qualify and receive homestead exemption on a new homestead.

(a) These rules set forth limitations and special rules that must be met consistent with Section 193.155(8), F.S. A person may apply for the transfer of a homestead assessment difference from a previous homestead property to a new homestead property if:

1. That person received a homestead exemption on the previous property as of January 1 of either of the two (2) immediately preceding years; and,

2. The previous property was abandoned as a homestead after such January 1 and was, or will be, reassessed at just value or assessed under Section 193.155(8), F.S., as of January 1 of the year after the year in which the abandonment occurred; and,

3. The new homestead property was assessed at just value without the homestead exemption either because it did not receive a homestead exemption, or the homestead exemption was abandoned, as of January 1 of the year for which application is made.

(b) Under Section 193.155(8), F.S., the transfer of an assessment limitation difference is available to a person only from a prior homestead in which that person received a homestead exemption.

1. For a husband and wife who owned, shared and both resided on a previous homestead, each shall be considered to have received the homestead exemption for purposes of these rules.

2. For joint tenants with right of survivorship, those tenants that applied for, received the homestead exemption, and resided on a previous homestead shall be considered to have received the homestead exemption for purposes of these rules.

3. For tenants in common, those tenants that applied for and received the homestead exemption and resided on a previous homestead shall be considered to have received the homestead exemption for purposes of these rules.

(3) To apply for portability, the applicant taxpayer shall file Form DR-501T (Transfer of Homestead Assessment Difference - Attachment to Original Application for Homestead Tax Exemption R. 12/08), incorporated by reference in Rule 12D-16.002, F.A.C., by March 1, as an attachment to the homestead exemption application, Form DR-501, Original Application for Homestead and Related Tax Exemptions, (incorporated by reference in Rule 12D-16.002, F.A.C.). Completing Form DR-501T, including a sworn statement, and Form DR-501 shall be considered sufficient documentation for applying for the transfer. Note: Section 192.047(2), F.S., provides “When the deadline for filing an ad valorem tax application or return falls on a Saturday, Sunday, or legal holiday, the filing period shall extend through the next working day immediately following such Saturday, Sunday, or legal holiday.”

(4)(a) Upsizing - When the just value of the new homestead is equal to or greater than the just value of the previous homestead, the maximum assessment limitation difference that can be transferred is $500,000. Within that limit, the differential between assessed value and just value can be transferred to the new property, subject also to provisions for multiple owners described below.

(b) Downsizing - When the just value of the new homestead is less than the just value of the previous homestead, the maximum assessment difference that can be transferred is $500,000. However, within that limit, the transferred assessment difference must be the same proportion of the new homestead’s just value as the proportion of the assessment difference of the previous homestead was of the just value of the previous homestead, subject also to provisions for multiple owners described below.

(5)(a) Transferring without splitting or joining - When one or more people who previously owned a single homestead and each received the homestead exemption as described in these rules together qualify for a new homestead, where all persons who qualify for homestead exemption in the new homestead also qualified for homestead exemption in the previous homestead without an additional person qualifying for homestead exemption in the new homestead, the maximum assessment difference that can be transferred is $500,000. Within that limit, the assessment limitation difference from the previous homestead may be transferred, and it is not considered to be a splitting or joining as discussed in paragraphs (b) and (c) below. Further, the rules for “upsizing” and “downsizing” as set forth above apply.

(b) Splitting - When two or more people who previously shared a homestead abandon that homestead and establish separate homesteads, the maximum total limitation that can be transferred from the previous homestead is $500,000. However, within that limit, each person that received a homestead exemption and who is eligible to transfer an assessment limitation difference is also limited to a share of the previous homestead’s difference between assessed value and just value. For tenants in common, this share is equal to the difference between just value and assessed value for the tenant’s proportionate interest in the property, in other words, the just value of the person’s interest minus the assessed value of the person’s interest. For tenancy with right of survivorship, the share is equal to the assessed value of the homestead portion of the property divided by the number of owners that received the exemption, unless another interest share is stated on the title in which case the portion of the assessment limitation difference that may be transferred is equal to the difference between just value and assessed value for the stated share. Within this limit, the rules for “upsizing” and “downsizing” as set forth above would apply. For purposes of the transfer of the assessment limitation difference, the shares of the assessment limitation difference cannot be sold, transferred, or pledged to any person. For example, a husband and wife divorcing and both abandoning the homestead would each take their share of the assessment limitation difference and the property appraiser could not accept a stipulation otherwise. In no case shall the shares of the persons that received the homestead exemption add up to more than 100 percent.

(c) Joining - When two or more people, some of whom previously owned separate homesteads on which they received homestead exemption, join together in qualifying for a new homestead, the maximum assessment limitation difference that can be transferred is $500,000. However, within that limit, the assessment difference that can be transferred is further limited to the highest difference between assessed value and just value from any of the applicants’ former homesteads. Within that limit, the rules for “upsizing” and “downsizing” as set forth above apply.

(6) For the applicant taxpayer to be eligible for any transfer, the prior homestead must be “reassessed” at just value in the year after the year in which the abandonment occurred, or subject to such reassessment, either under the “change in ownership“ rules of Section 193.155(3), F.S., or because the property is no longer used as a homestead. After it is assessed at just value, the prior homestead could have some assessment limitation difference transferred to it and be assessed under Section 193.155(8), F.S. Generally, if all joint owners of the prior homestead “abandon” it, then the prior homestead is reassessed at just value. However, under the referenced “change in ownership“ rules of Section 193.155(3), F.S., some transfers do not subject property to re-assessment, such as transfers between husband and wife, equitable and legal title, and addition of persons to a title. Unless the property is reassessed at just value, or assessed under Section 193.155(8), F.S., if only one of the previous owners of the homestead property moved to another parcel and other previous owners of the homestead property stayed in the original homestead, the homestead would not be abandoned and the one who moved could not transfer any assessment limitation difference. For purposes of transferring an assessment limitation difference, a homestead owner may abandon his or her homestead, as of or before January 1 of the year for which application is made, even though it remains his or her primary residence. To do so, the person must notify the property appraiser in writing before or at the same time as filing the timely new application for homestead exemption on the property. Such an abandonment will result in reassessment at just value as provided in subparagraph (2)(a)2, of this rule above.

(7) Classified use assessment and living quarters for parents and grandparents - The assessment limitation difference that is eligible for transfer under these rules is the amount of difference between assessed value and just value of the portion of the property used as a homestead. This difference is equal to the reduction in value due to Section 193.155, F.S. For property with both a classified use assessment, such as agricultural, and assessed pursuant to Section 193.155, F.S., the difference eligible for transfer is equal to the difference between just and assessed value on the homestead portion of the property. No portion of property classified and used for agricultural or other non-homestead purpose may be included in the calculation of the eligible assessment limitation difference under Section 193.155(8), F.S. In calculating the assessment reduction to be transferred from a prior homestead that has an assessment reduction for living quarters of parents or grandparents pursuant to Section 193.703, F.S., the value calculated pursuant to Section 193.703(6), F.S., must first be added back to the assessed value of the prior homestead.

(8) Procedures for property appraiser:

(a) If the previous homestead was located in a different county than the new homestead, the property appraiser in the new county must transmit a copy of the completed Form DR-501T together with a completed Form DR-501 to the property appraiser in the previous county. If the previous homesteads of applicants for transfer were in more than one county, each applicant from a different county must fill out a separate Form DR-501T.

1. The property appraiser in the previous county must complete Form DR-501RVSH (Certificate for Transfer of Homestead Assessment Difference R. 12/08, incorporated by reference in Rule 12D-16.002, F.A.C.), within two weeks of receipt of Form DR-501T, and forward this form to the new property appraiser. As part of the information returned on Form DR-501RVSH, the previous property appraiser shall certify that the homestead assessment difference to be transferred is part of a previous homestead that has been or will be reassessed at just value as of January 1 of the year after the year in which the abandonment occurred.

2. Based on the information provided on Form DR-501RVSH from the previous property appraiser, the new property appraiser shall calculate the amount of the assessment limitation difference that may be transferred and apply such difference to the January 1 assessment of the new homestead for the year for which application is made.

(b) If the transfer is requested from the same county in which the new homestead is located, the property appraiser shall retain the Form DR-501T and Form DR-501RVSH is not required. Upon request of a taxpayer that had timely applied for the transfer of assessment limitation difference, the property appraiser shall update the ownership share information using the share methodology in this rule.

(c) The property appraiser in the county in which the new homestead is located shall record in the assessment roll submitted to the Department pursuant to Section 193.1142, F.S., the following information for the year in which the transfer is made to the homestead parcel:

1. Flag for current year assessment difference transfer;

2. Number of owners among whom previous assessment difference split. Enter 1 if previous difference was not split;

3. Assessment difference value transferred;

4. County number of previous homestead;

5. Parcel ID of previous homestead;

6. Year from which assessment difference value transferred;

(d) All information sharing agreements in effect in 2007 that were extended by previous emergency rule, and such agreements in effect in 2008, covering confidential tax information are hereby perpetuated and extended during the period these emergency rules are in effect, and property appraisers having information sharing agreements with the Department are authorized to share confidential tax information with each other pursuant to Section 195.084, F.S., including social security numbers and linked information on Forms DR-501, DR-501T, and DR-501RVSH.

(9) Documenting changes in the assessment roll due to this provision will necessitate changes to the record layout and the information provided on the Rule 12D-8.013, F.A.C., NAL file submitted to the Department. See Section 193.114, F.S.

(10) The transfer of any limitation is not final until any values on the assessment roll on which the transfer is based are final. If such values are final after the procedures in these rules are exercised, the property appraiser(s) shall make appropriate corrections and a corrected tax notice bill shall be sent. Any values that are in administrative or judicial review shall be noticed to the tribunal or court for accelerated hearing and resolution so that the intent of Section 193.155(8), F.S., may be carried out and fulfilled.

(11) Additional provisions.

(a) If the information from the property appraiser in the county where the previous homestead was located is provided after the procedures in this section are exercised, the property appraiser in the county where the new homestead is located shall make appropriate corrections and a corrected tax notice and tax bill shall be sent.

(b) The property appraiser in the county where the new homestead is located shall promptly notify a taxpayer if the information received or available is insufficient to identify the previous homestead and the amount of the assessment limitation difference which is transferable. Such notification shall be sent on or before July 1.

(c) If the property appraiser in the county where the previous homestead was located supplies sufficient information to the property appraiser in the county where the new homestead is located, such information shall be considered timely if provided in time for inclusion on the notice of proposed property taxes sent pursuant to Sections 194.011 and 200.065(1), F.S.

(d) If the property appraiser has not received information sufficient to identify the previous homestead and the amount of the assessment limitation difference which is transferable before mailing the notice of proposed property taxes, and such amount is not included on such notice, the taxpayer may file a petition with the value adjustment board in the county where the new homestead is located.

(12) Denials.

(a) If the taxpayer is not qualified for transfer of any assessment limitation differential, the property appraiser in the county in which the new homestead is located shall send Form DR-490PORT, (Notice of Denial of Transfer of Homestead Assessment Difference; R. 12/09; incorporated by reference in Rule 12D-16.002, F.A.C.), by July 1, including the reasons for the denial. Such notice shall be sent on or before July 1. Form DR-490PORT can be obtained from the Department’s website at: http://dor.myflorida.com/dor/property/forms/.

(b) Any property appraiser that has not received, from the previous property appraiser, information sufficient to identify the previous homestead and the amount of the assessment limitation difference which is transferable, and has sent a notice of denial on or before July 1 may, if information is received from the previous property appraiser and the applicant is qualified, grant the transfer of assessment increase differential and, if a petition was filed based on a timely application for transfer of homestead assessment difference, the value adjustment board shall refund the taxpayer the $15.

(13) Late applications.

Any person who is qualified to have his or her property assessed under Section 193.155(8), F.S., and who fails to file an application by March 1 may file an application for assessment under that subsection and may, pursuant to Section 194.011(3), F.S., file a petition with the value adjustment board requesting that an assessment under Section 193.155(8), F.S., be granted. Such petition may be filed at any time during the taxable year on or before the 25th day following the mailing of the notice by the property appraiser as provided in Section 194.011(1), F.S. Notwithstanding Section 194.013, F.S., such person must pay a nonrefundable fee of $15 upon filing the petition. Upon reviewing the petition, if the person is qualified to receive the assessment under Section 193.155(8), F.S., and demonstrates particular extenuating circumstances judged by the property appraiser or the value adjustment board to warrant granting the assessment, the property appraiser or the value adjustment board may grant an assessment under this subsection.

(14) Copies of the forms incorporated in Rule 12D-16.002 may be obtained at the Department’s Internet site: http://dor.myflorida.com/dor/property/forms/.

Rulemaking Authority Section 13 of Chapter 2008-173, L.O.F. (Senate Bill 1588) Law Implemented 192.047, 193.114, 193.155, 193.461, 193.703, 194.011 FS., Section 14 of Chapter 2008-173, L.O.F. (Senate Bill 1588) History-New 11-26-12.

 

THIS RULE TAKES EFFECT UPON BEING FILED WITH THE DEPARTMENT OF STATE UNLESS A LATER TIME AND DATE IS SPECIFIED IN THE RULE.
EFFECTIVE DATE: November 26, 2012