The purpose of the proposed amendments to Rule 12D-6.006, F.A.C., (Fee Timeshare Real Property) is to remove definitions in this rule that were intended by the Legislature to only be used for the regulatory purposes contained in Chapter 721, F.S. ...

 

DEPARTMENT OF REVENUE

Property Tax Oversight Program

RULE NO.:RULE TITLE:

12D-6.006 Fee Time-Share Real Property

PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12D-6.006, F.A.C., (Fee Timeshare Real Property) is to remove definitions in this rule that were intended by the Legislature to only be used for the regulatory purposes contained in Chapter 721, F.S. and, delete rule language which is redundant of statutory language in Section 192.037, F.S., as required by Section 120.74(1)(d), F.S., of the Administrative Procedure Act. The effect of these proposed rule revisions is to provide property appraisers with better procedures for assessing fee timeshare real property.

SUMMARY: The proposed amendments to Rule 12D-6.006, F.A.C., (Fee Timeshare Real Property) delete definitions for eight terms that were copied verbatim into this rule in 1994 from definitions in Section 721.05, F.S., one of the statutes that governs the regulation of the timeshare industry by the Florida Department of Business and Professional Regulation. These regulatory definitions do not directly apply to the ad valorem taxation of fee timeshare real property. Also, Section 721.03, F.S., states that the treatment of timeshare estates for ad valorem and special assessment purposes must be as prescribed in Chapters 192 through 200, F.S. These proposed amendments also delete provisions in the rule that are identical or substantially comparable to existing statutory provisions.

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:

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), 213.06(1), FS.

LAW IMPLEMENTED: 192.001, 192.037, 193.011 FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: October 17, 2013, 9:00 a.m.

PLACE: Conference Room 3503, Building 2, Capital Circle Office Complex, 2450 Shumard Oak Blvd., Tallahassee, Florida. The public can also participate in this workshop 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 workshop posted on the Department’s site at the web site address listed: 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: Larry Green, Tax Law Specialist, Property Tax Oversight Program, Department of Revenue, P. O. Box 3000, Tallahassee, Florida 32315-3000, telephone [phone], 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: Larry Green, Tax Law Specialist, Property Tax Oversight Program, Department of Revenue, P. O. Box 3000, Tallahassee, Florida 32315-3000, telephone [phone], email [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

12D-6.006 Fee Timeshare Time-Share Real Property.

(1) Applicability of rule: This rule applies shall apply to the valuation, assessment, and listing, billing and collection for ad valorem tax purposes of all fee timeshare time-share real property, as defined in Section 192.001, F.S.

(2) Definitions – As used in this rule, “fee timeshare real property” and “timeshare period titleholder” have the same definitions as provided in Section 192.001, F.S. :

(a) “Accommodations” means any apartment, condominium or cooperative unit, cabin, lodge or hotel or motel room or any other private or commercial structure which is situated on real property and designed for occupancy by one or more individuals. (Section 721.05(1), F.S.).

(b) “Fee time-share real property” means the land and buildings and other improvements to land that are subject to time-share interests which are sold as a fee interest in real property. (Section 192.001(14), F.S.)

(c) “Managing entity” means the person responsible for operating and maintaining the time-share plan (Section 721.05(20), Florida Statutes.)

(d) “Time-share development” means the combined individual time-share periods or time-share estates of a time-share property as contained in a single entry on the tax roll. (Section 192.037(2), F.S.)

(e) “Time-share estate” means a right to occupy a time-share unit, coupled with a freehold estate or an estate for years with a future interest in a time-share property or a specified portion thereof. (Section 721.05(28), Florida Statutes.)

(f) “Time-share instrument” means one or more documents, by whatever name denominated, creating or governing the operation of a time-share plan. (Section 721.05(29), Florida Statutes.)

(g) “Time-share period” means that period of time when a purchaser of a time-share plan is entitled to the possession and use the accommodations or facilities, or both, of a time-share plan. (Section 721.05(31), Florida Statutes.)

(h) “Time-share period titleholder” means the purchaser of a time-share period sold as a fee interest in real property, whether organized under Chapter 718 or Chapter 721, F.S. (Section 192.001(15), F.S.)

(i) “Time-share plan” means any arrangement, plan, scheme, or similar device, other than an exchange program, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, or right-to-use agreement or by any other means, whereby a purchaser, in exchange for a consideration, receives ownership rights in, or a right to use, accommodations or facilities, or both, for a period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than 3 years. (Section 721.05(32), Florida Statutes.)

(j) “Time-share property” means one or more time-share units subject to the same time-share instrument, together with any other property or rights to property appurtenant to those units. (Section 721.05(33), Florida Statutes.)

(k) “Time-share unit” means an accommodation of a time-share plan which is divided into time-share periods. (Section 721.05(34), Florida Statutes.)

(3) Method of Assessment and Valuation.

(a)1. Each fee timeshare time-share development, as described defined in Section 192.037(2), F.S. paragraph (2)(d) of this rule, must shall be listed on the assessment roll as a single entry.               (b) The assessed value of each time-share development shall be the value of the combined individual time-share periods or time-share estates contained therein.

2. In determining the highest and best use to which the timeshare time-share development can be expected to be put in the immediate future and the present use of the property, the property appraiser must shall properly consider the terms of the timeshare time-share instrument and the use of the development as divided into timeshare time-share estates or periods. (Section 192.037(2), F.S.)

(b)(c) Each of the eight factors set forth in Sections 193.011(1)-(8) inclusive, F.S., must shall be considered by the property appraiser in arriving at assessed values as in the manner prescribed in paragraph (3)(a) (2)(b) of this rule. In these such considerations, the property appraiser must shall properly evaluate the relative merit and significance of each factor.

(d) Consistent with the provisions of Section 193.011(8), F.S., and when possible, resales of comparable time-share developments with ownership characteristics similar to those of the subject being appraised for ad valorem assessment purposes, and resales of time-share periods from time-share period titleholders to subsequent time-share period titleholders, shall be used as the basis for determining the extent of any deductions and allowances that may be appropriate.

(4) Listing of fee time-share real property on assessment rolls.

(a) Fee time-share real property shall be listed on the assessment rolls as a single entry for each time-share development. (Section 192.037(2), F.S.)

(b) The assessed value listed for each time-share development shall be derived by the property appraiser in the manner prescribed in paragraph (3) of this rule.

(5) Billing and Collection.

(a) For the purposes of ad valorem taxation and special assessments, including billing and collections, the managing entity responsible for operating and maintaining fee time-share real property shall be considered the taxpayer as an agent of the time-share period titleholders.

(b) The property appraiser shall annually notify the managing entity of the proportions to be used by the managing entity in allocating the valuation, taxes, and special assessments on time-share property among the various time-share periods.

(c) The tax collector shall accept only full payment of the taxes and special assessments due on the time-share development and sell tax certificates as provided in paragraph 12D-13.051(2)(b), F.A.C., on the time-share development as a whole parcel, as listed on the tax roll.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 192.037, 193.011, 721.05 FS. History–New 5-29-85, Formerly 12D-6.06, Amended 12-27-94,_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Larry Green, Tax Law Specialist, Property Tax Oversight Program, Department of Revenue, P. O. Box 3000, Tallahassee, Florida 32315-3000, telephone [phone], email [e-mail]

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: The Governor and Cabinet of Florida

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 24, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: Different versions of proposed Rule 12D-6.006, F.A.C., were published three times in the Florida Administrative Register: July 27, 2012 (Vol. 38, No. 30, pp. 3073-3074), August 31, 2012 (Vol. 38, No. 35, pp. 3561-3562), and July 29, 2013 (Vol. 39, No. 146, pp. 3736-3737).