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PTO Bulletin 16-03 Property Tax Oversight Bulletin: PTO 16-03 To: Property Appraisers, Tax Collectors, Clerks of the Court, Boards of County Commissioners, Taxing Authorities, and Interested Parties From: Property Tax Oversight Program Date: June 23, 2016 Bulletin: PTO 16-03 FLORIDA DEPARTMENT OF REVENUE PROPERTY TAX INFORMATIONAL BULLETIN Ad Valorem Taxation The 2016 legislature enacted Chapter 2016-128, Laws of Florida, (CS/CS/HB 499, 1st Eng.) effective on becoming law. The law was approved by the Governor on March 25, 2016. The law:  specifies that a taxpayer has the right to representation in a value adjustment board (VAB) proceeding by a person specified in s. 194.034(1)(a), (b), or (c), F.S. It also changes a statutory reference from s. 194.034(1)(a) and (c) to 194.034(1)(d), F.S. (See section 1);  states that when the property appraiser discovers that a taxpayer has filed an erroneous or incomplete statement of personal property or that a taxpayer has not returned all of his or her property for taxation, the property appraiser must mail a notice informing the taxpayer that he or she has filed an erroneous or incomplete statement of personal property. The property appraiser must mail the notice any time before the notice required in s. 200.069, F.S., is mailed. The taxpayer has 30 days after the date the property appraiser mails the notice to provide the property appraiser with a complete return listing all property for taxation (See section 2);  states that apart from an extension of the roll under s. 197.323, F.S., the VAB must complete all hearings that s. 194.032, F.S., requires and certify the assessment roll to the property appraiser by June 1 following the assessment year. The June 1 requirement can extend until December 1 in each year in which the number of filed petitions increases by more than 10 percent over the previous year. The provisions of this law first apply to the 2018 tax roll (See sections 3 and 4);  provides that before the property appraiser may file a tax lien against any property owned by a person who received the property assessment limitations in sections 193.155(10), 193.1554(10), and 193.1555(10), F.S., but the property appraiser determines was not entitled to the limitations for any year within the prior ten years, the owner must have 30 days to pay the taxes and any applicable penalties and interest. If the property appraiser improperly grants the property assessment limitation because of a clerical mistake or the property appraiser’s omission, the person or entity improperly receiving the property assessment limitation may not be assessed penalties or interest (See sections 5, 6, and 7);  states that the taxpayer must sign a petition to the VAB or the taxpayer's written authorization or power of attorney must accompany the petition at the time of filing Bulletin PTO 16-03 June 23, 2016 Page 2 of 4 unless the person filing the petition is listed in s. 194.034(1)(a), F.S. A person listed in s. 194.034(1)(a), F.S., may file a petition with the VAB without the taxpayer's signature or written authorization by certifying under penalty of perjury that he or she has authorization to file the petition on the taxpayer’s behalf. If a taxpayer notifies the VAB that someone has filed a petition for the taxpayer's property without his or her consent, the VAB may require the person filing the petition to provide written authorization from the taxpayer authorizing the person to proceed with the appeal before a hearing is held. If the VAB finds that a person listed in s. 194.034(1)(a), F.S., willfully and knowingly filed a petition that the taxpayer did not authorize, the VAB must require the person to provide the taxpayer's written authorization for representation to the VAB clerk before any petition filed by that person is heard. The taxpayer’s written authorization for representation is valid for one assessment year, and a new power of attorney or written authorization by the taxpayer is required for each subsequent assessment year. This section does not authorize the individual, agent, or legal entity to receive or access the taxpayer’s confidential information without written authorization from the taxpayer (See section 8);  changes the interest rate from 12 percent per year required by section 194.014(2), F.S., to an annual percentage rate equal to the bank prime loan rate as the Board of Governors of the Federal Reserve System determines on July 1 of the tax year or the next business day if July 1 is a Saturday, Sunday, or legal holiday. Each taxing authority will proportionately fund interest on an overpayment related to a petition (See section 9);  adds that the VAB will meet to hear appeals from determinations that a change of ownership, ownership or control, or a qualifying improvement has occurred (See section 10);  deletes the requirement that the petitioner must check the appropriate box on the VAB petition form to request a copy of the property record card containing relevant information that the property appraiser used in computing the current assessment (See section 10);  states that when the property appraiser receives the petition from the clerk, the property appraiser must provide the petitioner with a copy of the property record card containing information relevant to the current assessment, with confidential information redacted, regardless of whether the petitioner initiates evidence exchange. If the property record card is available online from the property appraiser, the property appraiser must notify the petitioner that the property record card is available online (See section 10);  provides that the petitioner or the property appraiser may reschedule the hearing a single time for good cause. In this section, “good cause” means circumstances beyond the control of the person seeking to reschedule the hearing which reasonably prevent him or her from having adequate representation at the hearing. If the hearing is rescheduled, the clerk must notify the petitioner of his or her rescheduled time at least 15 calendar days before the rescheduled appearance (See section 10); Bulletin PTO 16-03 June 23, 2016 Page 3 of 4  requires that the taxpayer’s employee or an affiliated entity, an attorney who is a member of The Florida Bar, a real estate appraiser licensed under Ch. 475, F.S., a real estate broker licensed under Ch. 475, F.S., or a certified public accountant licensed under Ch. 473, F.S., whom the taxpayer retains may represent the petitioner in a VAB proceeding. This person may present testimony and other evidence (See section 11);  allows a person with a power of attorney to act on the taxpayer's behalf may also represent the petitioner in a VAB proceeding. The Department of Revenue must adopt a form that meets the requirements for this power of attorney. However, a petitioner is not required to use the department's form to grant the power of attorney (See section 11);  allows a person who has written authorization to act on the taxpayer's behalf and receives no compensation may also represent a petitioner. The Department of Revenue must adopt a form that meets the requirements of this written authorization. However, a petitioner is not required to use the department's form to grant the authorization (See section 11);  defines "timely filed" as filed by the deadline established in s. 193.062, F.S., or before the expiration of any extension under s. 193.063, F.S. If the property appraiser mails the notice under s. 193.073(1)(a), F.S., the taxpayer must submit a complete return under s. 193.073(1)(a), F.S., to contest the assessment (See section 11);  allows a special magistrate attorney to hear issues of the determination that a change of ownership, change of ownership or control, or a qualifying improvement has occurred (See section 12);  states that when appointing special magistrates or scheduling special magistrates for specific hearings, the board, board attorney, and board clerk may not consider the dollar amount or percentage of any assessment reductions any special magistrate has recommended in the current year or in any previous year (See section 12);  amends s. 197.3632, F.S., to provide that counties as defined in s. 125.011(1), F.S., will adopt a non-ad valorem assessment roll between January 1 and September 25 if: o the county levies a non-ad valorem assessment for the first time o the non-ad valorem assessment increases beyond the maximum rate authorized by law or judicial decree at the time of initial imposition o the local government’s boundaries have changed, unless all newly affected property owners have provided written consent for the assessment to the local governing board, or o the purpose for the assessment or the use of the revenue generated by the assessment changes. (See section 13);  provides that after certifying the final taxable value under ss. 193.122(2) or (3), F.S., for a tax roll that levied a 75 percent Prior Period Funding Adjustment Millage, a school district will adjust the next Prior Period Funding Adjustment Millage to include any shortfall or surplus in the prior period’s unrealized required local effort funds that it Bulletin PTO 16-03 June 23, 2016 Page 4 of 4 would have levied had the district certified its final taxable value under ss. 193.122(2) or (3), F.S. (See section 14);  repeals ss. (4) and (5) of Rule 12D-9.019, Florida Administrative Code, relating to scheduling and notice of a hearing of the Department of Revenue. The Department of State must update the Florida Administrative Code to remove those subsections of the rule. (See section 15) The full text of the changes is available at http://laws.flrules.org/2016/128 The Department of Revenue has provided this bulletin for your general information. Please distribute to your staff that may be affected by the changes in the law. If you have questions about its contents, please send them to DORPTO@dor.state.fl.us.