The purpose of proposed Rule 12D-7.0055, F.A.C. (Exemption for Deployed Servicemembers), is to implement the provisions of Chapter 2011-93, Laws of Florida, replacing Emergency Rule 12DER11-12. This proposed Rule implements an additional homestead ...

DEPARTMENT OF REVENUE
Property Tax Oversight Program

RULE NO.: RULE TITLE:
12D-7.0055: Exemption for Deployed Servicemembers.
12D-7.006: Exemption for Totally and Permanently Disabled Persons
12D-7.013: Homestead Exemptions - Abandonment
12D-7.0142: Additional Homestead Exemption Pursuant to Section 196.031(1)(b), Florida Statutes
12D-7.0143: Additional Homestead Exemption Up To $25,000 for Persons 65 and Older Whose Household Income Does Not Exceed $20,000 Per Year
12D-7.019: Tangible Personal Property Exemption
12D-7.020: Real Property Dedicated in Perpetuity for Conservation
PURPOSE AND EFFECT: The purpose of proposed Rule 12D-7.0055, F.A.C. (Exemption for Deployed Servicemembers), is to implement the provisions of Chapter 2011-93, Laws of Florida, replacing Emergency Rule 12DER11-12. This proposed Rule implements an additional homestead exemption for active duty servicemembers deployed outside the continental United States, Alaska, or Hawaii in support of a designated operation. The purpose of the amended Rule 12D-7.006, F.A.C. (Exemption for Totally and Permanently Disabled Persons), is to implement the provisions of Chapter 2007-121, L.O.F., which allows for a second form from an optometrist to be used for blind persons to show evidence of entitlement to the exemption. The purpose of amending Rule 12D-7.013, F.A.C. (Homestead Exemptions – Abandonment), is to implement the provisions of Chapter 2010-176, L.O.F., containing an additional condition that constitutes an abandonment of homestead property for homestead exemption purposes. The purpose of proposed Rule 12D-7.0142, F.A.C. (Additional Homestead Exemption), is to implement the provisions of Chapter 2008-173, L.O.F., replacing Emergency Rule 12DER11-08. This proposed rule will provide for the additional homestead exemption. The purpose of amending Rule 12D-7.0143, F.A.C. (Additional Homestead Exemption Up To $50,000 for Persons 65 and Older Whose Household Income Does Not Exceed $20,000 Per Year), is to implement the provisions of Chapter 2007-4, L.O.F., to reflect the exemption amount and form number for an earnings statement. The purpose of proposed Rule 12D-7.019, F.A.C. (Tangible Personal Property Exemption), is to implement the provisions of Chapter 2008-173, L.O.F., replacing Emergency Rule 12DER11-07. This proposed rule will implement the tangible personal property exemption and the procedure to apply for and receive the exemption. The purpose of proposed Rule 12D-7.020, F.A.C. (Exemption for Real Property Dedicated in Perpetuity for Conservation), is to implement the provisions of Chapter 2009-157, L.O.F. This proposed Rule implements an additional exemption for real property dedicated in perpetuity for conservation.
SUMMARY: The proposed creation of Rule 12D-7.0055, F.A.C., implements an additional homestead exemption for active duty servicemembers deployed outside the continental US, Alaska, or Hawaii in support of a designated operation. The proposed amendment to Rule 12D-7.006, F.A.C., implements legislation that allows an optometrist to be one of the practitioners to certify blindness to qualify a person for an exemption. The proposed amendment to Rule 12D-7.013, F.A.C., implements a statutory condition that constitutes an abandonment of homestead property for homestead exemption purposes. The proposed creation of Rule 12D-7.0142, F.A.C., provides an additional $25,000 exemption for qualified homesteads. The proposed amendment to Rule 12D-7.0143, F.A.C., updates the homestead exemption amount to $50,000 for persons 65 and older whose annual income does not exceed $20,000. The proposed Rule 12D-7.019, F.A.C., is created to explain the tangible personal property exemption and the procedure to apply for and receive the exemption. The proposed Rule 12D-7.020, F.A.C., is created to identify the exemption for real property dedicated in perpetuity for conservation and incorporate the form DR-418C, Real Property Dedicated in Perpetuity for Conservation-Exemption Application.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.
The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) no requirement for the Statement of Economic Regulatory Costs (SERC) was triggered under Section 120.541(1), F.S.; and 2) based on past experiences with activities for providing the public tax information and rules of this nature, the adverse impact or regulatory cost, if any, do not exceed nor would exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 195.027(1), 196.075(5), 213.06(1) FS.
LAW IMPLEMENTED: 192.047, 193.063, 193.072, 193.074, 193.114, 196.001, 196.011, 196.012, 196.031, 196.071, 196.075, 196.082, 196.101, 196.173, 196.183, 196.196, 196.24, 196.26, 213.05 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: May 1, 2012, 10:00 a.m.
PLACE: Conference Room 1220, Building 2, Capital Circle Office Complex, 2450 Shumard Oak Blvd., Tallahassee Florida. The public can also participate in this hearing through a simultaneous electronic broadcast of this event by the Department of Revenue using WebEx and conference calling technology from their home or office. The requirements to participate are access to the Internet and a telephone. Specific information about how to participate in this electronic meeting will be included in the Agenda for this hearing posted on the Department’s site at: http://dor.myflorida.com/dor/property/legislation.
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Janice Forrester, Tax Law Specialist, telephone [phone] or email [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Janice Forrester, Tax Law Specialist, telephone [phone] or email [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

12D-7.0055 Exemption for Deployed Servicemembers.

(1) This rule applies to the exemption provided in Section 196.173, F.S., for servicemembers who receive a homestead exemption and who were deployed during the previous tax year. For the purposes of this rule the following definitions must apply:

(a) “Servicemember” means a member or former member of:

1. Any branch of the United States military or military reserves,

2. The United States Coast Guard or its reserves, or

3. The Florida National Guard.

(b) “Deployed” means:

1. On active duty,

2. Outside of the continental United States, Alaska or Hawaii, and

3. In support of a designated operation.

(c) “Designated Operation” means an operation designated by the Florida Legislature. The Department must annually provide all property appraisers with a list of operations which have been designated.

(2)(a) Application for this exemption must be made by March 1 of the year following the qualifying deployment. If the servicemember fails to make a timely application for this exemption, the property appraiser may grant the exemption on a late application if they believe circumstances warrant that it be granted. The servicemember may also petition the value adjustment board to accept the late application no later than 25 days after the mailing of the notice provided under Section 194.011(1), F.S.

(b) Application for this exemption must be made on Form DR-501M, Deployed Military Exemption Application (incorporated by reference in Rule 12D-16.002, F.A.C.).

(c) In addition to the application, the servicemember must submit to the property appraiser deployment orders or other proof of the qualifying deployment which includes the dates of that deployment and other information necessary to verify eligibility for this exemption. If the servicemember fails to include this documentation with the application, the property appraiser may request the needed documentation from the servicemember before denying the exemption.

(d) Application for this exemption may be made by:

1. The servicemember,

2. The servicemember’s spouse, if the homestead is held by the entireties or jointly with right of survivorship,

3. A person holding a power of attorney or other authorization under Chapter 709, F.S., or

4. The personal representative of the servicemember’s estate.

(3) After receiving an application for this exemption, the property appraiser must consider the application within 30 days of its receipt or within 30 days of the notice of qualifying deployment, whichever is later. If the application is denied in whole or in part, the property appraiser must send a notice of disapproval to the taxpayer no later than July 1, citing the reason for the disapproval. The notice of disapproval must also advise the taxpayer of the right to appeal the decision to the value adjustment board.

(4) This exemption must apply only to the portion of the property which is the homestead of the deployed servicemember or servicemembers.

(5) The percentage exempt under this exemption must be calculated as the number of days the servicemember was deployed during the previous calendar year divided by the number of days in that year multiplied by 100.

(6) If the homestead property is owned by joint tenants with a right of survivorship or tenants by the entireties, the property may be granted multiple exemptions for deployed servicemembers. The following provisions must apply in the event that multiple servicemembers are applying for the exemption on the same homestead property:

(a) Each servicemember must make a separate application to the property appraiser listing the dates of their deployment.

(b) The property appraiser must separately calculate the exemption percentage for each servicemember.

(c) The property appraiser must then add the percentages exempt which were determined for each of the servicemembers who are joint tenants with rights of survivorship or tenants by the entirety before applying that percentage to the taxable value. In no event must the percentage exempt exceed 100%.

(7) When calculating exemptions and taxes due, the property appraiser must first apply the exemptions listed in Section 196.031(7), F.S., in the order specified, to produce school and county taxable values. The percentage exempt calculated under this exemption must then be applied to both taxable values producing final taxable values. The taxes due must then be calculated and the percentage discount for disabled veterans under Section 196.082, F.S., should then be applied.

(8) If the property is owned by either tenants in common or joint tenants without right of survivorship, the percentage discount allowed under this rule must only apply to the taxable value of the qualifying servicemembers’ interest in the property.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.031, 196.082, 196.173, 213.05 FS. History–New ________.

 

12D-7.006 Exemption for Totally and Permanently Disabled Persons.

(1) through (3) No change.

(4) Subject to the income limitations pursuant to Section 196.101, F.S. Florida Statutes, and Form DR-501S, (incorporated by reference in Rule 12D-16.002, F.A.C.) the homestead property of a paraplegic, hemiplegic, or any other totally and permanently disabled person who must use a wheelchair for mobility or who is legally blind is exempt from ad valorem taxation.

(5) To provide evidence of entitlement to the exemption, a paraplegic, hemiplegic, or other totally and permanently disabled person who must use a wheelchair, or a person who is legally blind must provide the following furnish to the property appraiser, the following:

(a)1. A certificate of disability, Form DR-416 (incorporated by reference in Rule 12D-16.002, F.A.C.), from two doctors of this state licensed under Chapter 458 or Chapter 459, F.S. Florida Statutes; or

2.(b) A certificate of disability from the United States Department of Veterans Affairs or its predecessor; or and

3. For blind persons, a certificate of disability, Form DR-416, from one doctor of this state licensed under Chapter 458 or 459, F.S., and a certificate of disability, Form DR-416B (incorporated by reference in Rule 12D-16.002, F.A.C.), from one optometrist licensed in this state under Chapter 463, F.S.; and

(b)(c) A Statement of Gross Income, Form DR-501A (incorporated by reference in Rule 12D-16.002, F.A.C.).

(6) through (8) No change.

Rulemaking Specific Authority 195.027(1), 213.06(1) FS. Law Implemented 196.011, 196.012, 196.101, 213.05 FS. History–New 10-12-76, Formerly 12D-7.06, Amended 12-27-94,________.

 

12D-7.013 Homestead Exemptions – Abandonment.

(1) through (5) No change.

(6) Homestead property that is uninhabitable due to damage or destruction by misfortune or calamity shall not be considered abandoned in accordance with the provisions of Section 196.031(6)(7), F.S., where:

(a) The property owner notifies the property appraiser of his or her intent to repair or rebuild the property,

(b) The property owner notifies the property appraisers of his or her intent to occupy the property after the property is repaired or rebuilt,

(c) The property owner does not claim homestead exemption elsewhere, and

(d) The property owner commences the repair or rebuilding of the property within three (3) years after January 1 following the damage or destruction to the property.

(7) After the three (3) year period, the expiration, lapse, nonrenewal, or revocation of a building permit issued to the property owner for such repairs or rebuilding also constitutes abandonment of the property as homestead.

Rulemaking Specific Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.031, 196.041, 196.061, 196.071, 213.05 FS. History–New 10-12-76, Formerly 12D-7.13, Amended 10-2-07, ________.

 

12D-7.0142 Additional Homestead Exemption.

(1) A taxpayer who receives the $25,000 homestead exemption may claim the additional homestead exemption of up to $25,000 on the assessed value greater than $50,000.

(2) To apply for the additional homestead exemption, no new application form is needed. Form DR-501, (incorporated by reference in Rule 12D-16.002, F.A.C.), will be considered the application for exemption.

(3) The additional homestead exemption applies only to non-school levies.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.114, 196.031, 196.075, 196.082, 196.196, 196.24 FS. History– New________.

 

12D-7.0143 Additional Homestead Exemption Up To $50,000 $25,000 for Persons 65 and Older Whose Household Income Does Not Exceed $20,000 Per Year.

(1) The following procedures shall apply in counties and municipalities that have granted an additional homestead exemption up to $50,000 $25,000 for persons 65 and older on January 1, whose household adjusted gross income for the prior year does not exceed $20,000, adjusted beginning January 1, 2001, by the percentage change in the average cost-of-living index.

(2) through (2)(b) No change.

(c) any wage earning statements for each member of the household, which shall include Forms W-2, RRD-1042S, SSA-1042S, 1099, 1099A 1999A, RRD 1099, and SSA-1099, if any.

(3) through (5) No change.

Rulemaking Specific Authority 195.027(1), 196.075(5), 213.06(1) FS. Law Implemented 193.074, 196.075, 213.05 FS. History–New 12-30-99, Amended 12-30-02,_________.

 

12D-7.019 Tangible Personal Property Exemption.

(1) The filing of a complete Form DR-405, or Form DR-470A (incorporated by reference in Rule 12D-16.002, F.A.C.) shall be considered the application for exemption.

(2) Taxpayers who fail to file complete returns by April 1 or within any applicable extension period, shall not receive the $25,000 exemption. However, at the option of the property appraiser, owners of property previously assessed without a return being filed may qualify for the exemption without filing an initial return. Nothing in this rule shall preclude a property appraiser from requiring that Form DR-405 be filed. Returns not timely filed shall be subject to the penalties enumerated in Section 193.072, F.S. Claims of more exemptions than allowed under subsection 196.183(1), F.S., are subject to the taxes exempted as a result of wrongfully claiming the additional exemptions plus penalties on these amounts as enumerated in Section 196.183(5), F.S.

(3) Section 196.183(1), F.S., states that a single return must be filed, and therefore a single exemption granted, for all freestanding equipment not located at the place where the owner of tangible personal property transacts business.

(4) “Site where the owner of tangible personal property transacts business”.

(a) Section 196.183(2), F.S. defines “site where the owner of tangible personal property transacts business”. A “site where the owner of tangible personal property transacts business” includes facilities where the business ships or receives goods, employees of the business are located, goods or equipment of the business are stored, or goods or services of the business are produced, manufactured, or developed, or similar facilities located in offices, stores, warehouses, plants, or other locations of the business. Sites where only the freestanding property of the owner is located shall not be considered sites where the owner of tangible personal property transacts business.

(b) Example: A business leasing copying machines or other freestanding equipment, the location where the leased equipment is located does not constitute a site where the owner transacts business. If it is not a site where one or more of the activities stated in paragraph (a) occur, for purposes of the tangible personal property exemption, it is not considered a site where the owner transacts business.

(5) Property Appraiser Actions – Maintaining Assessment Roll Entry. For all freestanding equipment not located at a site where the owner of tangible personal property transacts business, and for which a single return is required, and for property assessed under Section 193.085, F.S., the property appraiser is responsible for allocating the exemption to those taxing jurisdictions in which freestanding equipment or property assessed under Section 193.085, F.S. is located. Allocation should be based on the proportionate share of the just value of such property in each jurisdiction. However, the amount of the exemption allocated to each taxing authority may not change following the extension of the tax roll under Section 193.122, F.S.

(6) By February 1 of each year, the property appraiser shall notify by mail all taxpayers whose requirement for filing an annual tangible personal property tax return was waived in the previous year. The notification shall state that a return must be filed if the value of the taxpayer's tangible personal property exceeds the exemption and shall include notification of the penalties for failure to file such a return. Form DR-405W, (incorporated by reference in Rule 12D-16.002, F.A.C.), may be used by property appraisers at their option.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.047, 193.063, 193.072, 193.114, 193.122, 196.183, 213.05 FS. History–New_________.

 

12D-7.020 Exemption for Real Property Dedicated in Perpetuity for Conservation.

(1) To apply for the exemption in Section 196.26, F.S., a property owner must submit an original application to the property appraiser by March 1, as outlined in Section 196.011, F.S.

(2) The Department prescribes Form DR-418C, Real Property Dedicated in Perpetuity for Conservation, Exemption Application, incorporated by reference in Rule 12D-16.002, F.A.C. Property owners must use this form to apply for the exemption in Section 196.26, F.S.

(3) The Department prescribes Form DR-418CR, Real Property Dedicated in Perpetuity for Conservation, Exemption Renewal, incorporated by reference in Rule 12D-16.002, F.A.C. After the first year a property receives the exemption in Section 196.26, F.S., the property appraiser must mail a renewal application to the property owner by February 1. The property owner must complete and return the renewal application to the property appraiser by March 1.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.011, 196.26, 213.05 FS. History–New________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Janice Forrester, Tax Law Specialist, Property Tax Oversight Program, Department of Revenue, P. O. Box 3000, Tallahassee, Florida 32315-3000, telephone [phone]
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: The Governor and Cabinet of the State of Florida
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 20, 2012
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: July 1, 2011 (Vol. 37, No. 26, pp. 1785-1792) Florida Administrative Weekly.