2020 VAB Training All Modules2020 Value Adjustment Board Training - Module 1
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2020 Value Adjustment Board Training 1
2
Module 1: 3
Introduction and Overview 4
5
6
Training Module 1 addresses the following topics: 7
• Description of This Training Under Florida Law 8
• Scope and Intended Use of This Training 9
• Numbers and Titles of Modules in This Training 10
• Definitions and Abbreviations Used in This Training 11
• Intended Audience for This Training 12
• Persons Required to Take This Training But Not Complete the Exam 13
• Persons Required to Complete This Training and Complete the Exam 14
• The Florida Property Assessment Appeal System 15
• Taxpayer Rights 16
• The Four Sources of Florida Law 17
• (NEW) 2020 Changes to Statutory Law 18
• 2019 Changes to Statutory Law 19
• 2018 Changes to Statutory Law 20
• 2017 Changes to Statutory Law 21
• 2016 Changes to Statutory Law 22
• Statutory Law Effective Beginning With 2009 Assessments 23
• Administrative Rules and Forms 24
• Uniform Policies and Procedures Manual and Accompanying Documents 25
• The Value Adjustment Board and Government-in-the-Sunshine 26
• Complete Text of Specific Legal Provisions for Taxpayer Rights 27
• Taxpayer Rights in Section 192.0105, F.S. 28
• Taxpayer Rights in Rule 12D-9.001, F.A.C. 29
• Links to Resources on the Inter net 30
31
32
Learning Objectives 33
After completing this training module, the learner should be able to: 34
35
• Identify the requirements and components of this training 36
• Recognize the scope and intended use of this training 37
• Apply the requirements for completing the training and the exam 38
• Recognize the components of the Florida Property Assessment Appeal System 39
• Identify and apply the provisions for taxpayer rights 40
• Recognize the four sources of Florida law 41
• Identify the changes enacted in the new statutory law 42
• Recognize the components of the new rules and forms 43
2020 Value Adjustment Board Training - Module 1
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• Identify the components of the Uniform Policies and Procedures Manual and 1
Accompanying Documents 2
• Recognize the requirements for Government -in-the-Sunshine in proceedings of the 3
value adjustment board 4
• Identify internet resources for administrative reviews 5
6
7
Description of This Training Under Florida Law 8
Florida law requires the Florida Department of Revenue (Department) to provide this 9
annual training for value adjustment boards (Boards) and special magistrates. 10
11
The Department’s training is the official training for the Board and special magistrates 12
regarding administrative reviews. See Rule 12D-9.012(5), Florida Administrative Code. 13
14
The Department’s training for Boards and special magistrates is open to the public. See 15
Rule 12D-9.012(2), Florida Administrative Code. 16
17
To assure compliance with Florida law, this training content should only be used in 18
conjunction with: the Uniform Policies and Procedures Manual, a compilation of law 19
titled Other Legal Resources Including Statutory Criteria, and legal advice from the 20
Board attorney. 21
22
* These training materials are not rules and do not have the force or effect of law. 23
These training materials should not be used as a substitute for the actual sources of 24
applicable law. 25
26
* For more information on the content and use of this training, see the following 27
section titled “Scope and Intended Use of this Training.” 28
29
Rule 12D-9.012(1), Florida Administrative Code, provides that the Department’s training 30
for Boards and special magistrates shall address the following topics: 31
32
1. The law that applies to the administrative review of assessments; 33
34
2. Taxpayer rights in the administrative review process; 35
36
3. The composition and operation of the value adjustment board; 37
38
4. The roles of the Board, Board clerk, Board legal counsel, special magistrates, and 39
the property appraiser or tax collector and their staff; 40
41
5. Procedures for conducting hearings; 42
43
6. Administrative reviews of just valuations, classified use valuations, property 44
classifications, exemptions, and portability assessment differences; 45
46
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7. The review, admissibility, and consideration of evidence; 1
2
8. Requirements for written decisions; and 3
4
9. The Department’s standard measures of value, including the guidelines for real and 5
tangible personal property. 6
7
8
Scope and Intended Use of This Training 9
In 2008, legislation was enacted requiring the Department to provide training for value 10
adjustment boards and special magistrates (VAB training). See Chapter 2008-197, LOF 11
(HB 909), creating section 194.035(3), F.S. 12
13
In some cases, the Department of Revenue will supplement its training for value 14
adjustment boards and special magistrates by providing informational bulletins 15
regarding administrative reviews of assessments. 16
17
The training and bulletins are not rules and do not have the force or effect of law as do 18
provisions of the constitution, statutes, and duly adopted administrative rules. 19
20
* The training materials and bulletins are aid and assistance as described in section 21
195.002(1), F.S. 22
23
* Board attorneys should not consider the training materials or bulletins as controlling 24
when providing legal advice, but may consider them as persuasive. 25
26
* Boards and special magistrates should not consider the training materials or 27
bulletins as controlling for findings of fact, conclusions of law, or reasons for 28
upholding or overturning determinations of the property appraiser or tax collector, 29
but may consider the training materials and bulletins as persuasive. 30
31
* The training materials and bulletins are separate and distinct from the Uniform 32
Policies and Procedures Manual required by section 194.011(5)(b), F.S., the 33
contents of which manual do have the force and effect of law. 34
35
* To avoid confusion between the training materials required by section 194 .035(3), 36
F.S., and the Uniform Policies and Procedures Manual required by section 37
194.011(5)(b), F.S., these training materials should not be referred to as a “manual.” 38
39
The training contains information about the law of which Boards, Board attorneys, and 40
special magistrates should be aware. 41
42
* The training also contains the Department’s observations, explanations, examples, 43
and recommendations intended to assist Boards, Board attorneys, and special 44
magistrates in performing their duties consistent with law. 45
46
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* The Department’s explanations and recommendations may include legal opinions. 1
2
* It is understood that the Legislature expects Boards and special magistrates to 3
comply with law and the Department’s Board training to reasonably inform Boards 4
and special magistrates of the actions the Department believes are necessary for 5
compliance with law. 6
7
These training materials are not the “sole guide” for Boards and special magistrates in 8
conducting administrative reviews of assessments. 9
10
* The training materials provide information to Boards and special magistrates about 11
key provisions of law and provide limited illustrations or examples of how that 12
information could be applied in some circumstances. 13
14
* The many variations in circumstances that a Board or special magistrate would 15
encounter in the performance of their duties cannot be identified in advance and 16
then addressed in these training materials. 17
18
In conducting their administrative reviews, Boards and special magistrates would be 19
expected to use sources of information other than these training materials, depending 20
upon the facts and issues in each situation. These other sources include: 21
22
(a) Legal advice from the Board attorney; 23
24
(b) Information in the Department’s Uniform Policies and Procedures Manual and 25
Accompanying Documents; 26
27
(c) Information referenced in the training materials, including information available at 28
internet links placed in the training materials; and 29
30
(d) Information in professional texts that pertains to professionally accepted appraisal 31
practices not inconsistent with Florida law. 32
33
Boards, Board attorneys, and special magistrates are responsible, on a case-by-case 34
basis, for: determining relevant sources of information, determining relevant facts, 35
determining applicable law, and reaching findings of fact and conclusions of law. 36
37
In the context of the Department’s responsibility to provide training to assist Boards, 38
Board attorneys, and special magistrates in the performance of their duties, training 39
terms such as “should” and “should not” represent the Department’s recommendations 40
for things it believes should be done or should be avoided to comply with law. 41
42
* Similarly, terms such as “must” and “must not” represent the Department’s 43
recommendations for things it believes must be done or must be avoided to comply 44
with law. 45
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The law does not authorize the Department of Revenue to base enforcement or other 1
agency action on the training or bulletins. 2
3
* The law does not provide any penalty for a case where a value adjustment board or 4
special magistrate does not comply with the training or bulletins. 5
6
However, because the training is required by law and contains much info rmation about 7
the law, conscientious review of these training materials will benefit Boards, Board 8
attorneys, and special magistrates and will help to promote a high level of public trust in 9
the value adjustment board process. 10
11
If a Board or special magistrate believes that an area of the training information is 12
incorrect, the Board or special magistrate should seek a legal opinion from the Board 13
attorney before proceeding further. 14
15
If a Board attorney believes that an area of the training information is incorrect, the 16
Department requests that the Board attorney provide to the Department his or her legal 17
opinion that supports the belief, along with recommended revisions for those port ions of 18
the training materials that the Board attorney believes are incorrect. 19
20
Board attorneys have a duty to advise the Board on all aspects of the value adjustment 21
board process to ensure that all actions taken by the Board and its appointees meet the 22
requirements of law. See Rule 12D-9.009(1)(a), F.A.C. 23
24
* Board legal counsel shall advise the Board, Board clerk, and special magistrates in a 25
manner that will promote and maintain a high level of public trust and confidence in 26
the administrative review process. See Rule 12D-9.009(1)(b), F.A.C. 27
28
* Board legal counsel must advise the Board, Board clerk, and special magistrates in 29
a manner that ensures the protection of the property taxpayer rights provided in 30
section 192.0105, F.S., and Rule 12D-9.001, F.A.C. 31
32
If a special magistrate receives different legal advice on the same subject from Board 33
attorneys in different counties, the special magistrate should disclose this fact to the 34
Board attorney in each county. 35
36
* The Department requests that Board attor neys receiving such a disclosure advise 37
the Department in cases where the difference in advice is not resolved. 38
39
40
Numbers and Titles of Modules in This Training 41
The Department’s 2018 training for Boards and special magistrates is organized into 11 42
training modules, as listed and described below: 43
44
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Module 1, titled: Introduction and Overview; 1
2
Module 2, titled: The Roles of Participants in the Value Adjustment Board Process; 3
4
Module 3, titled: Procedures Before the Hearing; 5
6
Module 4, titled: Procedures During the Hearing; 7
8
Module 5, titled: Procedures After the Hearing; 9
10
Module 6, titled: Administrative Reviews of Real Property Just Valuations; 11
12
Module 7, titled: Administrative Reviews of Classified Use Valuations and Assessed 13
Valuations; 14
15
Module 8, titled: Administrative Reviews of Tangible Personal Property Just Valuations; 16
17
Module 9, titled: Administrative Reviews of Denials of Exemptions and Property 18
Classifications; 19
20
Module 10, titled: Administrative Reviews of Assessment Difference Transfers and Tax 21
Deferrals; and 22
23
Module 11, titled: Requirements for Written Decisions. 24
25
26
Definitions and Abbreviations Used in This Training 27
The following definitions are based on those in Rule 12D -9.003, F.A.C. 28
29
“Agent” means any person who is authorized by the taxpayer to file a petition with the 30
board and represent the taxpayer in board proceedings on the petition. The term “agent” 31
means the same as the term “representative.” 32
33
“Board” means the county value adjustment board (these terms may be used 34
interchangeably throughout this training). 35
36
“Board clerk” or “Clerk” means the clerk of the county value adjustment board. 37
38
“Department,” unless otherwise designated, means the Department of Revenue. 39
40
“Hearing” means any hearing relating to a petition before a value adjustment board or 41
special magistrate, regardless of whether the parties are physically present or 42
telephonic or other electronic media is used to conduct the hearing, but shall not include 43
a proceeding to act upon, consider or adopt special magistrates’ recommended 44
decisions at which no testimony or comment is taken or heard from a party. 45
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“Petition” means a written request for a hearing, filed with a board by a taxpayer or an 1
authorized person. A petition is subject to format and content requirements, as provided 2
in Rule 12D-9.015, F.A.C. The filing of a petition is subject to timing requirements , as 3
provided in Rule Chapter 12D-9, F.A.C. 4
5
“Petitioner” means the taxpayer or the person authorized by the taxpayer to file a 6
petition on the taxpayer’s behalf and represent the taxpayer in board proceedings on 7
the petition. 8
9
“Representative” means any person who is authorized by the taxpayer to file a petition 10
with the board and represent the taxpayer in board proceedings on the petition. The 11
term “representative” means the same as the term “agent.” 12
13
“Taxpayer” means the person or other legal entity in whose name property is assessed, 14
including an agent of a timeshare period titleholder, and i ncludes exempt owners of 15
property, for purposes of this chapter. 16
17
Other definitions include those listed following and those presented in later modules of 18
this training. 19
20
“Evidence” generally means something (including testimony, documents, or tangible 21
objects) that tends to prove or disprove the existence of a disputed fact. See Black’s Law 22
Dictionary, Eighth Edition, page 595. 23
24
“Taxpayer” and “petitioner” have the same meaning and may be used interchangeably 25
throughout this training. 26
27
“Parties” means the petitioner and either the property appraiser or the tax collector, as 28
applicable. 29
30
“Party” means the petitioner, the property appraiser, or the tax collector, depending on 31
the context. 32
33
“Florida Statutes” is abbreviated as “F.S.” and “Florida Administra tive Code” is 34
abbreviated as “F.A.C.” 35
36
37
Intended Audience for This Training 38
Under Subsections 194.035(1) and (3), F.S., the intended audience for this training is: 39
40
1. All special magistrates in counties that use special magistrates; and 41
42
2. In counties that do not use special magistrates, the members of the Board or the 43
Board attorney. 44
45
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Note: All special magistrates are required to take this training, but not all are required to 1
complete the training examination. 2
3
* Real property appraiser special magistrates must take Modules 1, 2, 3, 4, 5, 6, 7, 4
and 11. 5
6
* Tangible personal property appraiser special magistrates must take Modules 1, 2, 3, 7
4, 5, 7 (Part 1 only), 8, and 11. 8
9
* Attorney special magistrates must take Modules 1, 2, 3, 4, 5, 9, 10, and 11. 10
11
* The Department recommends that all Board attorneys annually complete all 12
modules of this training and complete the training examination. 13
14
15
Persons Required to Tak e This Training But Not Complete the Exam 16
Described below are the persons who are required to take this training each year before 17
any hearings are conducted, but who are not required to complete the training 18
examination. 19
20
1. In those counties with a population of 75,000 or less where the Board does not use 21
special magistrates, either all Board members or the Board attorney must take all 22
training modules before conducting any hearings, including any updated training 23
modules. 24
25
2. Each special magistrate with five years of experience, and who is otherwise 26
qualified, must take the required training modules before conducting any hearings 27
and must complete any applicable updated training modules. 28
29
All persons required to take the training but not complete the training exam must 30
provide a signed statement to the Board clerk acknowledging that they have taken the 31
required training modules. 32
33
The acknowledgment statement can be found on the Department’s training website. 34
35
36
Persons Requir ed to Complete This Training and Complete the Exam 37
Before being appointed, each special magistrate with at least three years but less than 38
five years of relevant experience and who is otherwise qualified and wants to substitute 39
the training for two years of the required experience must complete the required training 40
modules and the required examination and also must complete any applicable updated 41
training modules and examinations. 42
43
Before being appointed, the special magistrates required to complete the e xam must 44
receive from the Department a certificate of completion. 45
46
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The certificate of completion must be signed by the special magistrate acknowledging 1
that he or she has completed the required training modules and the required 2
examination. 3
4
Each of these special magistrates must provide to the Board clerk a copy of the 5
certificate of completion of the training and examinations, including any applicable 6
updated training modules. 7
8
9
The Florida Property Assessment Appeal System 10
Florida law provides taxpayers with four opportunities to appeal property assessment 11
determinations made by public officials. 12
13
* None of these four opportunities is a prerequisite for any of the others. 14
15
* Each of these opportunities is summarized below. 16
17
1. Feedback to Taxing Authorities 18
Taxpayers have the right to attend and give opinions at the public hearings where 19
local taxing authorities consider the amount of the proposed property tax and millage 20
(tax) rates. 21
22
* These taxing authorities include cities, counties, school districts, and special 23
districts. 24
25
* At these public hearings: “The general public shall be allowed to speak and to 26
ask questions prior to adoption of any measures by the governing body.” See 27
section 200.065(2)(c), (d), and (e), F.S. 28
29
The notices of proposed property taxes (commonly referred to as the Truth in 30
Millage or TRIM notices) are sent by first-class mail to property taxpayers of record 31
in mid-to-late August each year. 32
33
* This notice provides information on property value and proposed taxes, along 34
with information on the public hearings to be held by ta xing authorities that levy 35
property taxes. See section 200.069, F.S. 36
37
2. Informal Conference with the Property Appraiser 38
Taxpayers may contact or visit the property appraiser’s office for an informal 39
conference to express disagreement with the property ap praiser’s determinations. 40
See section 194.011(2), F.S., and see Rule 12D-9.002, F.A.C. 41
42
* At this conference, taxpayers may present facts that support their claim for a 43
change in the assessment, and property appraisers should present the facts that 44
support their assessment. 45
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* However, there is no requirement to have an informal conference before a 1
taxpayer files a petition with the Board or files a lawsuit in circuit court. 2
3
3. Petition to the Value Adjustment Board 4
Taxpayers may file petitions with the Board to appeal a property appraiser’s 5
determinations on value, tax exemptions, property classifications, and portability 6
assessment difference transfers. 7
8
Taxpayers may also file petitions with the Board to appeal a tax collector’s 9
determinations on tax deferrals and associated penalties. See section 194.011, F.S. 10
11
4. Lawsuit in Circuit Court 12
Taxpayers may file lawsuits in local circuit court to challenge assessments. See 13
section 194.171, F.S. 14
15
* A taxpayer is not required to file a petition with the Board before filing a lawsuit. 16
17
18
Taxpayer Rights 19
Florida law provides certain rights for property taxpayers in section 192.0105, F.S., and 20
in Rule 12D-9.001, F.A.C. The complete text of each of these taxpayer rights laws is 21
presented later in a separate section of this module. 22
23
Boards, Board clerks, Board attorneys, property appraisers, and special magistrates 24
must comply with these provisions of law to ensure that taxpayer rights are protected in 25
the value adjustment board process. 26
27
The Taxpayer Bill of Rights is in section 192.0105, F.S. This bill of rights is a 28
compilation of legal requirements from other chapters of the Florida Statutes. 29
30
The four primary categories of Taxpayer Rights in section 192.0105, F.S., are: 31
32
1. The Right to Know – includes the right to receive notices and be informed about 33
various aspects of the property tax. 34
35
2. The Right to Due Process – includes the right to an informal conference with the 36
property appraiser, file value adjustment board petitions, receive notices of re sults 37
from the value adjustment board, and file lawsuits. 38
39
3. The Right to Redress – includes the right to discounts, refunds for overpayment of 40
taxes, and redemption of tax certificates sold for delinquent taxes on real property. 41
42
4. The Right to Confidentiality – includes the right for certain taxpayer records to be 43
confidential consistent with the provisions of law. 44
45
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The Four Sources of Florida Law 1
Florida law governs the value adjustment board process and provides for taxpayer 2
rights. Provisions of Florida law are presented and cited throughout this training. 3
4
The four sources of Florida law are the Florida Constitution, Florida Statutes, Florida 5
Administrative Code, and case law (certain court decisions), each of which is listed and 6
briefly described below. 7
8
1. Florida Constitution: This comes from the people. Sections 3 and 4 of Article VII of 9
the Florida Constitution provide for property valuations, tax exemptions, and property 10
classifications. 11
12
Constitutional amendments are required to provide ad valorem tax exemptions and 13
to assess property at less than just value. 14
15
2. Florida Statutes, abbreviated as “F.S.”: Florida Statutes come from the Legislature 16
and are a collection of state laws listed by subject area. 17
18
Section 192.0105, F.S., contains property taxpayer rights. 19
20
Chapter 194, Parts 1 and 3, F.S., govern the value adjustment board process. 21
22
Florida’s Sunshine Law is in Chapter 286, F.S. 23
24
3. Florida Administrative Code, abbreviated as “F.A.C.”: This code is composed of 25
administrative rules produced by state agencies with public input from interested 26
parties. 27
28
Rule Chapter 12D-9, F.A.C., contains property taxpayer rights and also contains 29
procedural rules that must be followed by Boards, special magistrates, Board 30
attorneys, Board clerks, property appraisers, tax collect ors, and petitioners. Other 31
Board rules are in Rule Chapters 12D-10 and 12D-16, F.A.C. 32
33
4. Case Law: These court decisions come from the judicial opinions of the Florida 34
Supreme Court, the Florida District Courts of Appeal, and Federal Courts. 35
36
Note: Statutes enacted in 2009 preempt any prior case law that is inconsistent with 37
the statutes. See sections 194.301(1) and 194.3015, F.S. 38
39
Information from Florida court decisions is presented in this training. Most of these 40
court decisions predate the statutory law enacted in 2009. The 2009 law preempts 41
these decisions to the extent the decisions are inconsistent with it. 42
43
Thus, the information from these court decisions, as presented in this training, has 44
been modified where appropriate for consistency with the 2009 statutory changes. 45
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1
(NEW) 2020 Changes to Statutory Law 2
In 2020, changes to statutory law were enacted. These changes will affect 3
administrative reviews of assessments beginning in 2020, and in some cases 2019. 4
These new laws are summarized below and are addressed where necessary in various 5
modules of this training. Please refer to the chapter law and statutes to read the 6
legislative changes in context with the surrounding statutory language. The chapter laws 7
are available at: http://laws.flrules.org/ 8
9
Legislation enacted in 2020: 10
11
• Amended section 196.173(2), F.S., which provides an exemption for deployed 12
servicemembers. The law change extended the application deadline to June 1, 13
2020 and removed Operation Enduring Freedom, which began October 7, 2001, 14
and ended December 31, 2014. The amendment added Operation Juniper 15
Shield, which began in February 2007; Operation Pacific Eagle, which began in 16
September 2017, and Operation Martillo, which began in January 2012. See 17
Chapter 2020-10, Sections 7, 8 and 9, Laws of Florida, (HB 7097), effective upon 18
becoming a law on April 8, 2020, and first applicable to the 2020 ad valorem tax roll. 19
20
• Provided that a value adjustment board petition filing fee is not required for 21
petitions of the deployed servicemembers exemption, and provided additional 22
deadlines and procedures for approval of late filed applications for the 23
exemption. Provided that the property appraiser may grant the deployed 24
servicemember exemption if a qualifying applicant files an application for the 25
exemption on or before the 25th day after the property appraiser mails the notice 26
required under section 194.011(1), F.S. If the prope rty appraiser denies the 27
application so filed, the applicant may file a petition with the value adjustment 28
board on or before the 25th day after the property appraiser mails the notice 29
required under section 194.011(1), F.S. The petitioner is not required to pay a 30
filing fee for such petition, notwithstanding section 194.013, F.S. The value 31
adjustment board may grant the exemption if the applicant is qualified and 32
demonstrates extenuating circumstances, as determined by the board, which 33
warrant granting the exemption. See Chapter 2020-10, Section 9, Laws of Florida, 34
(HB 7097), effective upon becoming a law on April 8, 2020, and first applicable to the 35
2020 ad valorem tax roll. 36
37
• Amended section 194.035, F.S. to provide an appraisal performed by a special 38
magistrate is not permitted as evidence in a hearing before a value adjustment 39
board for which the special magistrate serves. An appraisal may not be submitted as 40
evidence to a value adjustment board in any year that the person who performed the 41
appraisal serves as a special magistrate to that value adjustment board. See Chapter 42
2020-10, Section 4, Laws of Florida, effective July 1, 2020. 43
44
• Created section 193.1557, F.S., relating to assessment of certain property damaged 45
or destroyed by Hurricane Michael in 2018, and providing that sections 46
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193.155(4)(b), 193.1554(6)(b), or 193.1555(6)(b), F.S., relating to assessment of 1
changes, additions or improvements, apply to such changes, additions, or 2
improvements begun within five years after January 1, 2019. The new section 3
193.1557, F.S., applies to 2019 through 2023 tax years and stands repealed on 4
December 31, 2023. See Chapter 2020-10, Section 3, Laws of Florida, effective July 1, 5
2020. 6
7
• Enacted two amendments to section 196.1978(1), F.S. in Chapter 2020 -10, section 8
10, Laws of Florida, effective upon becoming a law April 8, 2020 and operating 9
retroactive to January 1, 2020; and Chapter 2020 -10, Section 11, Laws of Florida, 10
effective January 1, 2021. 11
• Section 10 amended section 196.1978(1), F.S., to provide, for property used to 12
provide affordable housing, additional criteria under which vacant units are 13
treated as exempt portions of the affordable housing property. These criteria are: 14
if a recorded land use restriction agreement requires all residential units within 15
the property to be used in a manner that qualifies for the exemption under this 16
subsection and if the vacant units are being offered for rent. effective upon 17
becoming a law and will operate retroactively to January 1, 2020. See Chapter 18
2020-10, Section 10, Laws of Florida (CS/HB 7097). 19
• Section 11 amended section 196.1978(1), F.S., to provide legislative intent for 20
property used to provide affordable housing, that if the sole member of a limi ted 21
liability company that owns the property is also a limited liability company that is 22
disregarded as an entity for federal income tax purposes the property will be 23
treated as owned by the sole member of the limited liability company that owns 24
the limited liability company that owns the property. Also, units whose occupants’ 25
income no longer meet the income limits, but whose income met the income 26
limits at the time they became tenants, shall be treated as exempt portions of the 27
affordable housing property. This amendment is effective January 1, 2021. See 28
Chapter 2020-10, Section 11, Laws of Florida (CS/HB 7097). 29
30
• Created section 193.019, F.S., effective January 1, 2022, relating to the exemption 31
for hospitals, and providing for community benefit reporting. By January 15 of each 32
year, each applicant for exemption for hospital property shall submit to the 33
Department a copy of the applicant’s most recently filed IRS Form 990, Schedule H, 34
with a statement certifying the county net community benefit ex pense is true and 35
correct, and a schedule displaying information regarding the community benefit 36
expense. By January 15 of each year, each county property appraiser shall calculate 37
and submit to the Department the tax reduction resulting from the property 38
exemption for the prior year granted pursuant to ss. 196.196 and 196.197 for each 39
property owned by an applicant. The Department must determine if the county net 40
community benefit expense attributed to an applicant’s property in a county equals 41
or exceeds the tax reduction resulting from the applicant’s exemption for that county. 42
If an applicant’s county net community benefit expense does not equal or exceed the 43
tax reduction from the exemption, in two consecutive years, the Department shall 44
notify the property appraiser by March 15 to limit the exemption for the curre nt year 45
by multiplying it by the ratio of the net community benefit expense to the tax 46
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notify the property appraiser by March 15 to limit the exemption for the current year 1
by multiplying it by the ratio of the net community benefit expense to the tax 2
reduction resulting from the exemption. See Chapter 2020-10, Section 2, Laws of Florida 3
(CS/HB 7097) effective January 1, 2022. 4
5
• Created section 196.081(1)(b), F.S. to provide that a veteran or veteran’s surviving 6
spouse may receive a prorated refund of property taxes paid on property on which 7
legal or beneficial title is acquired between January 1 and November 1. The 8
additional requirements for the refund are that the veteran or veteran’s surviving 9
spouse: 10
• receives an exemption under section 196.081, F.S., on a property for the tax 11
year, and 12
• applies for and receives an exemption on the acquired property in the next tax 13
year under section 196.081, F.S. 14
The refund is prorated as of the date of transfer. If the property appraiser determines 15
the veteran or spouse is entitled to an exemption under section 196.081, F.S., on the 16
newly acquired property, the law provides for the property appraiser to make entri es 17
on the tax roll necessary to allow the prorated refund of taxes for the previous tax 18
year. See Chapter 2020-140, Laws of Florida (CS/CS/HB 1249), effective July 1, 2020. 19
20
21
2019 Changes to Statutory Law 22
In 2019, a change to statutory law was enacted. This change affected administrative 23
reviews of assessments beginning in 2019. This change is summarized below and is 24
addressed where necessary in various modules of this training. Please refer to the 25
chapter law and statutes to read the legislative changes in context with the surrounding 26
statutory language. The chapter laws are available at: http://laws.flrules.org/ 27
28
Legislation enacted in 2019: 29
30
• Created section 193.4517, Florida Statutes, to provide that for the 2019 tax roll, 31
tangible personal property owned and operated by a farm, farm operation, or 32
agriculture processing facility located in Okaloosa, Walton, Holmes, Washington, 33
Bay, Jackson, Calhoun, Gulf, Gadsden, Liberty, Franklin, Leon, or Wakulla County is 34
deemed to have a market value no greater than its value for salvage if the tangible 35
personal property was unable to be used for at least 60 days due to the effects of 36
Hurricane Michael. “Unable to be used” means the tangible personal property was 37
damaged, or the farm, farm operation, or agricultural processing facility was affected 38
to such a degree that the tangible personal property could not be used for its 39
intended purpose. “Farm” has the same meaning as provided in s. 823.14(3)(a). F.S. 40
and “farm operation” has the same meaning as provided in s. 823.14(3)(b), F.S. The 41
deadline for an applicant to file an application with the property appraiser for 42
assessment under this new law is August 1, 2019. If the property appraiser denies 43
an application, the applicant may file, under s. 194.011(3), a petition with the value 44
adjustment board requesting that the tangible personal property be assessed 45
according to this law. Such petition must be filed on or before the 25th day after the 46
2020 Value Adjustment Board Training - Module 1
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mailing by the property appraiser, during the 2019 calendar year, of the notice 1
required under s. 194.011(1). This legislation is effective July 1, 2019 and applies 2
retroactively to January 1, 2019. See Chapter 2019-42, Section 2, Laws of Florida (HB 3
7123). 4
5
6
2018 Changes to Statutory Law 7
In 2018, several changes to statutory law were enacted. Except where other dates are 8
noted, these changes will affect administrative reviews of assessments beginning in 9
2019. These new laws are summarized below and are addressed where necessary in 10
various modules of this training. Please refer to the chapter law and statutes to read the 11
legislative changes in context with the surrounding statutory language. The chapter laws 12
are available at: http://laws.flrules.org/ 13
14
Legislation enacted in 2018: 15
16
• Created section 197.318, F.S., to provide an abatement of taxes, by a refund, for 17
homestead residential improvements made uninhabitable from damage or 18
destruction by Hurricane Hermine, Matthew or Irma. The legislation provides that a 19
property owner waives a claim for abatement unless the property owner files a 20
sworn application with the property appraiser by March 1, 2019. This statute 21
provides detailed definitions and specific procedures for evaluating and processing 22
an abatement. These amendments are effective March 23, 2018. See Chapter 2018-23
118, Sections 17 and 63, Laws of Florida (CS/HB 7087). 24
25
• Amended section 194.032, F.S., to provide for value adjustment boards to hear 26
appeals pertaining to the denial by the property appraiser of tax abatements. This 27
amendment is effective July 1, 2018. See Chapter 2018-118, Sections 14 and 63, Laws 28
of Florida (CS/HB 7087). 29
30
• Created section 193.0237, F.S., to provide the method for assessment of multiple 31
parcel buildings. The value of land upon which a multiple parcel building is located, 32
regardless of ownership, may not be separately assessed and must be allocated 33
among and included in the just value of all the parcels in the multiple parcel building. 34
This amendment applies to assessments beginning with the 2018 tax roll. See 35
Chapter 2018-118, Section 8, Laws of Florida (CS/HB 7087). 36
37
• Created section 193.4516, F.S., to provide that tangible personal property owned 38
and operated by a citrus fruit packing or processing facility is deemed to have a 39
market value no greater than its value for salvage, if such property is no longer used 40
in the operation of the facility due to Hurricane Irma (2017) or due to citrus greening. 41
This amendment applies to the 2018 tax roll. See Chapter 2018-118, Sections 10 and 11, 42
Laws of Florida (CS/HB 7087). 43
44
• Amended section 193.461(6)(c), F.S., to provide that screened enclosed structures 45
used in horticultural production for protection from pests and diseases or to comply 46
2020 Value Adjustment Board Training - Module 1
16
with state or federal eradication or compliance agreements are a part of the average 1
yields per acre and have no separately assessable value. See Chapter 2018-84, 2
Section 1, Laws of Florida (CS/CS/SB 740). 3
4
• Amended section 196.24, F.S., relating to qualification for an exemption, to remove 5
the statutory requirement for an unremarried surviving spouse to have been married 6
to a disabled veteran for at least five years on the date of the veteran's death. See 7
Chapter 2018-118, Section 16, Laws of Florida (CS/HB 7087). 8
9
• Amended section 196.173, F.S., relating to the exemption for deployed service 10
members, to provide a December 31, 2014, ending date for Operation Enduring 11
Freedom, which began on October 7, 2001. The amendment also removed 12
Operation New Dawn, which began on September 1, 2010, and ended on December 13
15, 2011, and the amendment removed Operation Odyssey Dawn, which began on 14
March 19, 2011, and ended on October 31, 2011. See Chapter 2018-118, Section 15, 15
Laws of Florida (CS/HB 7087). 16
17
• Amended section 163.01, F.S., to clarify that the exemption applies whether the 18
property is within or outside the jurisdiction of the legal entity that owns it. The 19
amendment also clarifies that the exemption applies regardless of whether the legal 20
entity enters into agreements with private entities to manage, operate, or improve 21
the utilities the separate entity owns. See Chapter 2018-118, Section 7, Laws of Florida 22
(CS/HB 7087). 23
24
• Created section 193.461(7)(c), F.S., to provide that agricultural lands that are not 25
being used for agricultural production as a result of a natural disaster, for which the 26
Governor declared a state of emergency, must continue to be classified as 27
agricultural lands for five years following termination of the emergency declaration. 28
However, if the lands are diverted to nonagricultural use during or after the five-year 29
recovery period, the lands must be assessed at just value under s ection 193.011, 30
F.S. This provision applies retroactively to natural disasters that occurred on or after 31
July 1, 2017. See Chapter 2018-84, Section 1, Laws of Florida (CS/CS/SB 740). 32
33
• Created section 193.461(8), F.S., to provide that lands classified as agricultural, 34
which are not being used for agricultural production due to a hurricane that made 35
landfall in this state during 2017, must continue to be classified as agricultural 36
through December 31, 2022, unless the lands are converted to a nonagricultural 37
use. Lands converted to nonagricultural use are not covered by this subsection and 38
must be assessed as otherwise provided by law. This amendment applies to the 39
2018 tax roll. See Chapter 2018-118, Sections 12 and 13, Laws of Florida (CS/HB 7087). 40
41
• Created section 193.155(8)(m), F.S., to provide, for purposes of the portability 42
assessment reduction, that an owner of homestead property that was significantly 43
damaged or destroyed as a result of a named tropical storm or hurricane, may elect, 44
in the calendar year following the named tropical storm or hurricane, to have the 45
significantly damaged or destroyed homestead deemed to have been abandoned as 46
2020 Value Adjustment Board Training - Module 1
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of the date of the named tropical storm or hurricane even though the owner received 1
a homestead exemption on the property as of January 1 of the year immediat ely 2
following the named tropical storm or hurricane. This election is available only if the 3
owner establishes a new homestead as of January 1 of the second year immediately 4
following the storm or hurricane. This provision applies to homestead property 5
damaged or destroyed on or after January 1, 2017. See Chapter 2018-118, Section 9, 6
Laws of Florida (CS/HB 7087). 7
8
9
2017 Changes to Statutory Law 10
In 2017, several changes to statutory law were enacted. Except where other dates are 11
noted, these changes affected administrative reviews of assessments beginning in 12
2017. These changes are summarized below and are addressed where necessary in 13
various modules of this training. Please refer to the chapter law and statutes to read the 14
legislative changes in context with the surrounding statutory language. The chapter laws 15
are available at http://laws.flrules.org/ 16
17
Legislation enacted in 2017: 18
19
• Created section 196.102, F.S., to: provide an exemption for certain first responders 20
whose total and permanent disability occurred in the line of duty, and for surviving 21
spouses; extend the exemption application deadline for 2017 to August 1, 2017, or 22
later if extenuating circumstances are shown; and provide for petitions to the value 23
adjustment board for denials of such exemptions. This change is effective June 14, 24
2017 and applies to assessments and administrative reviews beginning in 2017. See 25
Chapter 2017-105, Sections 2 and 3, Laws of Florida (CS/HB 455). 26
27
• Amended section 196.1983, F.S., to clarify provisions requiring landlords to reduce 28
lease payments made by charter schools so that the schools receive the full benefit 29
derived by the landlord from the exemption, effective retroactively to January 1, 30
2017. See Chapter 2017-36, Section 7, Laws of Florida (HB 7109). 31
32
• Amended section 192.001(11)(c), F.S., to clarify that the term “inventory” includes 33
specified construction and agricultural equipment weighing 1,000 pounds or more 34
that is returned to a dealership under a rent-to-purchase option and held for sale to 35
customers in the ordinary course of business. This change is effective July 1, 2017, 36
and applies to assessments and administrative reviews beginning in 2018. See 37
Chapter 2017-36, Sections 2 and 59, Laws of Florida (HB 7109). 38
39
• Amended section 196.1978(2), F.S., to provide a 50 percent discount on property 40
taxes for specified portions of certain multifamily properties that offer affordable 41
housing to specified low-income persons and families, if application is made by 42
March 1. This amendment also specifies procedures for the application of the 43
discount and provides conditions for the termination of the discount. The amendment 44
is effective starting in 2018. See Chapter 2017-36, Section 6, Laws of Florida (HB 7109). 45
46
2020 Value Adjustment Board Training - Module 1
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• Amended section 196.012(9), F.S., to include, in the definitions of “nursing home” or 1
“home for special services”, institutions that possess a valid license under chapter 2
429, part I, F.S., and to make this amendment applicable to the 2017 property tax 3
roll. This change is effective May 25, 2017 and applies to assessments and 4
administrative reviews beginning in 2017. See Chapter 2017-36, Sections 3 and 4, Laws 5
of Florida (HB 7109). 6
7
• Amended section 196.1975(4)(c), F.S., to provide that a not-for-profit corporation 8
applying for an exemption for units or apartments under paragraph (4)(a) of the 9
statute must file, with the application, an affidavit from each person who occupies a 10
unit stating the person’s income; the corporation is not required to provide an 11
affidavit from a resident who is a totally and permanently disabled veteran who 12
meets the requirements of s. 196.081, F.S. The amendment also provides that, if 13
the property appraiser determines that additional documentation proving an affiant’s 14
income is necessary, the property appraiser may request it. This change is effective 15
July 1, 2017, and applies to assessments and administrative reviews beginning in 16
2018. See Chapter 2017-36, Sections 5 and 59, Laws of Florida (HB 7109). 17
18
• Amended section 193.624, F.S., to provide, for nonresidential real property, that 80 19
percent of the just value attributable to a renewable energy source device may not 20
be considered in determining the assessed value of the property; this provision 21
applies to devices installed on nonresidential property on or after January 1, 2018, 22
except in a fiscally constrained county for which application for comprehensive plan 23
amendment or planned unit development zoning is made by December 31, 2017. 24
This change is effective July 1, 2017, and applies to assessments and administrative 25
reviews beginning in 2018. See Chapter 2017-118, Sections 2 and 8, Laws of Florida 26
(CS/SB 90). 27
28
• Created section 196.182, F.S., to provide an exemption, from the tangible personal 29
property tax, of 80 percent of the assessed value of certain renewable energy 30
source devices, if the device, as defined in s. 193.624, is con sidered tangible 31
personal property and: 32
33
(a) Is installed on real property on or after January 1, 2018; 34
(b) Was installed before January 1, 2018, to supply a municipal electric utility located 35
within a consolidated government; or 36
(c) Was installed after August 30, 2016, on municipal land as part of a described 37
project supplying a municipal electric utility for certain purposes. 38
39
This legislation also specifies conditions under which the exemption would not apply, 40
and specifies conditions under which the exemption would apply to devices affixed 41
to property owned or leased by the U.S. Department of Defense. This change is 42
effective July 1, 2017, and applies to assessments and administrative reviews 43
beginning in 2018. See Chapter 2017-118, Sections 3 and 8, Laws of Florida (CS/SB 90). 44
45
46
2020 Value Adjustment Board Training - Module 1
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2016 Changes to Statutory Law 1
In 2016, several changes to statutory law were enacted. These changes affected 2
administrative reviews of assessments beginning in 2016. These changes are 3
summarized below and are addressed where necessary in various modules of this 4
training. Please refer to the chapter law and statutes to read the legislative changes in 5
context with the surrounding statutory language. The chapter laws are available at: 6
http://laws.flrules.org/ 7
8
Legislation enacted in 2016: 9
10
• Amended section 192.0105(2)(f), F.S., to provide that a taxpayer has the right, in 11
value adjustment board proceedings, to be represented by a person specified in 12
sections 194.034(1)(a), (b), or (c), F.S. See Chapter 2016-128, Section 1, Laws of Florida 13
(CS/CS/HB 499). 14
15
• Amended section 193.073(1)(a), F.S., to provide that the property appraiser shall 16
mail a notice informing the taxpayer that an erroneous or incomplete statement of 17
personal property has been filed. Such notice shall be mailed at any time before the 18
mailing of the notice required in s. 200.069. The taxpayer has 30 days after the date 19
the notice is mailed to provide the property appraiser with a complete return listing 20
all property for taxation. See Chapter 2016-128, Section 2, Laws of Florida (CS/CS/HB 21
499). 22
23
• Amended section 193.122, F.S., to provide that apart from an extension of the roll 24
under s. 197.323, F.S., the value adjustment board must complete all hearings that 25
s. 194.032, F.S., requires and certify the assessment roll to the property appraiser 26
by June 1 following the assessment year. The June 1 requirement can extend until 27
December 1 in each year in which the number of filed petitions increases by more 28
than 10 percent over the previous year. The provisions of this law first apply to the 29
2018 tax roll. See Chapter 2016-128, Sections 3 and 4, Laws of Florida (CS/CS/HB 499). 30
31
• Amended sections 193.155(10), 193.1554(10), and 193.1555(10), F.S., to provide 32
that before the property appraiser may file a tax lien on property not entitle d to 33
receive the property assessment limitations in these sections, the owner must have 34
30 days to pay the taxes and any applicable penalties and interest. If the property 35
appraiser improperly grants the property assessment limitation because of a clerical 36
mistake or the property appraiser’s omission, the person or entity improperly 37
receiving the property assessment limitation may not be assessed penalties or 38
interest. See Chapter 2016-128, Sections 5, 6, and 7, Laws of Florida (CS/CS/HB 499). 39
40
• Amended section 194.011, F.S., to provide that the taxpayer must s ign a petition to 41
the value adjustment board or the taxpayer's written authorization or power of 42
attorney must accompany the petition at the time of filing unless the person filing the 43
petition is listed in s. 194.034(1)(a), F.S. A person listed in s. 194.034(1)(a), F.S., 44
may file a petition with a value adjustment board without the taxpayer's signature or 45
written authorization by certifying under penalty of perjury that he or she has 46
2020 Value Adjustment Board Training - Module 1
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authorization to file the petition on the taxpayer’s behalf. If a taxpaye r notifies the 1
value adjustment board that someone has filed a petition for the taxpayer's property 2
without his or her consent, the value adjustment board may require the person filing 3
the petition to provide written authorization from the taxpayer authori zing the person 4
to proceed with the appeal before a hearing is held. If the value adjustment board 5
finds that a person listed in s. 194.034(1)(a), F.S., willfully and knowingly filed a 6
petition that the taxpayer did not authorize, the value adjustment board must require 7
the person to provide the taxpayer's written authorization for representation to the 8
value adjustment board clerk before any petition filed by that person is heard. The 9
taxpayer’s written authorization for representation is valid for one assessment year, 10
and a new power of attorney or written authorization by the taxpayer is required for 11
each subsequent assessment year. This section does not authorize the individual, 12
agent, or legal entity to receive or access the taxpayer’s confidential info rmation 13
without written authorization from the taxpayer. See Chapter 2016-128, Section 8, Laws 14
of Florida (CS/CS/HB 499). 15
16
• Amended section 194.014, F.S., to change the interest rate for disputed property tax 17
assessments from 12 percent per year to an ann ual percentage rate equal to the 18
bank prime-loan rate as the Board of Governors of the Federal Reserve System 19
determines on July 1 of the tax year or the next business day if July 1 is a Saturday, 20
Sunday, or legal holiday. Also, each taxing authority will proportionately fund interest 21
on an overpayment related to a petition. See Chapter 2016-128, Section 9, Laws of 22
Florida (CS/CS/HB 499). 23
24
• Amended section 194.032, F.S., to add that the value adjustment board will meet to 25
hear appeals from determinations that a change of ownership, ownership or control, 26
or a qualifying improvement has occurred. See Chapter 2016-128, Section 10, Laws of 27
Florida (CS/CS/HB 499). 28
29
• Amended section 194.032, F.S., to delete the requirement that the petitioner must 30
check the appropriate box on the petition form to request a copy of the property 31
record card containing relevant information that the property appraiser used in 32
computing the current assessment. See Chapter 2016-128, Section 10, Laws of Florida 33
(CS/CS/HB 499). 34
35
• Amended section 194.032, F.S., to provide that the property appraiser must provide 36
a copy of the property record card containing information relevant to the computation 37
of the current assessment, with confidential information redacted. If the property 38
record card is available from the property appraiser online, the property appraiser 39
must notify the petitioner of its availability. See Chapter 2016-128, Section 10, Laws of 40
Florida (CS/CS/HB 499). 41
42
• Amended section 194.032, F.S., to provide that the petitio ner or the property 43
appraiser may reschedule the hearing a single time for good cause. In this section, 44
“good cause” means circumstances beyond the control of the person seeking to 45
reschedule the hearing which reasonably prevent him or her from having adeq uate 46
2020 Value Adjustment Board Training - Module 1
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representation at the hearing. If the hearing is rescheduled, the clerk must notify the 1
petitioner of his or her rescheduled time at least 15 calendar days before the 2
rescheduled appearance, unless waived. See Chapter 2016-128, Section 10, Laws of 3
Florida (CS/CS/HB 499). 4
5
• Amended section 194.034, F.S., to provide that the taxpayer’s employee or an 6
employee of an affiliated entity, an attorney who is a member of The Florida Bar, a 7
real estate appraiser licensed under Ch. 475, F.S., a real estate broker licensed 8
under Ch. 475, F.S., or a certified public accountant licensed under Ch. 473, F.S., 9
whom the taxpayer retains may represent the petitioner. This person may present 10
testimony and other evidence. 11
12
Further amended section 194.034, F.S., to provide that a person with a power of 13
attorney to act on the taxpayer's behalf may also represent the petitioner. This 14
person may present testimony and other evidence. The power of attorney must 15
conform to the requirements of part II of Ch. 709, F.S., is valid onl y to represent a 16
single petitioner in a single assessment year, and must identify the parcels for which 17
the taxpayer has granted the person the authority to represent the taxpayer. The 18
Department of Revenue must adopt a form that meets the requirements of this 19
paragraph. However, a petitioner is not required to use the department's form to 20
grant the power of attorney. 21
22
Further amended section 194.034, F.S., to provide that a person who has written 23
authorization to act on the taxpayer's behalf and receives n o compensation may also 24
represent a petitioner. This person may present testimony and other evidence. The 25
written authorization is valid only to represent a single petitioner in a single 26
assessment year and must identify the parcels for which the taxpayer authorizes the 27
person to represent the taxpayer. The Department of Revenue must adopt a form 28
that meets the requirements of this paragraph. However, a petitioner is not required 29
to use the department's form to grant the authorization. 30
31
Further amended section 194.034, F.S., to provide that an assessment may not be 32
contested unless a return as required by section 193.052, F.S., was timely filed. This 33
law defines "timely filed" as filed by the deadline established in section 193.062, 34
F.S., or before the expiration of any extension under section 193.063, F.S. If the 35
property appraiser mails the notice under section 193.073(1)(a), F.S., the taxpayer 36
must submit a complete return under section 193.073(1)(a), F.S., to contest the 37
assessment. 38
39
Amended section 194.034(2), F.S., to provide that findings of fact must be based on 40
admitted evidence or a lack thereof. 41
42
See Chapter 2016-128, Section 11, Laws of Florida (CS/CS/HB 499). 43
44
• Amended section 194.035, F.S., to allow an attorney special magistrate to hear 45
issues of the determination that a change of ownership, change of ownership or 46
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control, or a qualifying improvement has occurred. Also, when appointing special 1
magistrates or scheduling special magistrates for specific hearings, the board, board 2
attorney, and board clerk may not consider the dollar amount or percentage of any 3
assessment reductions any special magistrate has recommended in the current year 4
or in any previous year. See Chapter 2016-128, Section 12, Laws of Florida (CS/CS/HB 5
499). 6
7
• Amended section 197.3632(4)(a), F.S., to provide that a local government shall 8
adopt a non-ad valorem assessment roll at a public hearing held between January 1 9
and September 15, or between January 1 and September 25 for any county as 10
defined in s. 125.011(1). See Chapter 2016-128, Section 13, Laws of Florida (CS/CS/HB 11
499). 12
13
• Amended section 197.3632(5)(a), F.S., to provide that, contingent upon conditions 14
set forth in the statute, by September 15 of each year, or by September 25 for any 15
county as defined in s. 125.011(1), the chair of the local governing board or his or 16
her designee shall certify a non-ad valorem assessment roll. See Chapter 2016-128, 17
Section 13, Laws of Florida (CS/CS/HB 499). 18
19
• Repeals sections (4) and (5) of Rule 12D-9.019, Florida Administrative Code, 20
relating to scheduling and notice of a hearing before the value adjustment board. 21
The Department of State must update the Florida Administrative Code to remove 22
those subsections of the rule. See Chapter 2016-128, Section 15, Laws of Florida 23
(CS/CS/HB 499). 24
25
• Amended section 193.461(7)(a), F.S., to provide that lands classified for assessment 26
purposes as agricultural lands that a state or federal eradication or quarantine 27
program takes out of production will remain agricultural lands for the remainder of 28
the program. Lands that these programs convert to nonincome-producing uses will 29
continue to be assessed at a minimum value of up to $50 per acre on a single -year 30
assessment methodology. 31
32
Identifies the Citrus Health Response Program as a state or federal eradication or 33
quarantine program. The bill allows land to retain its agricultural classification for five 34
years after the date of execution of a compliance agreement between the landowner 35
and the Department of Agriculture and Consumer Services (DACS) or a federal 36
agency, as applicable, for this program or successor programs. 37
38
Lands under these programs that are converted to fallow or otherwise nonincome-39
producing uses are still agricultural lands assessed at a minimal value of up to $50 40
per acre on a single-year assessment methodology while fallow or used for 41
nonincome-producing purposes. Lands under these programs that are replanted in 42
citrus according to the requirements of the compliance agreement are classified as 43
agricultural lands and are assessed at a minimal value of up to $50 per acre, on a 44
single-year assessment methodology, during the five-year term of agreement. 45
46
2020 Value Adjustment Board Training - Module 1
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See Chapter 2016-88, Sections 1 and 5, Laws of Florida (CS/CS/HB 749). 1
2
• Amended sections 196.012 and 196.1995, F.S, to provide: 3
4
Added language to describe the new businesses and expansions of existing 5
businesses that are eligible to receive the economic development property tax 6
exemption. It states that the new businesses and expansions of existing businesses 7
that are in areas that were designated as enterprise zone s under Ch. 290, F.S., as 8
of December 30, 2015, but not in a brownfield area, may qualify for the property tax 9
exemption only if the local governing body approves by motion or resolution, subject 10
to ordinance adoption, or by ordinance enacted before Decemb er 31, 2015. 11
12
All data center equipment for a data center will be exempt from property taxation for 13
the term of the approved exemption. 14
15
Any exemption granted under this section will remain in effect for up to 10 years with 16
respect to any particular facility, or up to 20 years for a data center, regardless of 17
any change in the authority of the county or municipality to grant these exemptions 18
or the expiration of the Enterprise Zone Act under Ch. 290, F.S. 19
20
This law’s amendments to ss. 196.012 and 196.1995, F.S., which relate to the 21
property tax exemption for certain enterprise zone businesses, are remedial in 22
nature and apply retroactively to December 31, 2015 . 23
24
See Chapter 2016-220, Sections 2, 3, and 4, Laws of Florida (HB 7099). 25
26
27
Statutory Law Effective Beginning With 2009 Assessments 28
An important change to Florida Statutes was passed in the 2009 legislative session 29
and then approved by the Governor on June 4, 2009. See section 194.301, F.S., as 30
amended by Chapter 2009-121, Laws of Florida (House Bill 521). 31
32
A complete copy of this legislation is available at the following web address: 33
http://laws.flrules.org/files/Ch_2009-121.pdf 34
35
This law applies to the administrative review of assessments beginning in 2009. 36
37
Board attorneys are responsible for ensuring that this important legislation is 38
implemented for all administrative reviews of assessments, starting in 2009. 39
40
This law provides important benefits to taxpayers. Boards and special magistrates must 41
comply with the law to ensure its implementation. 42
43
Below are some key points from this law, but users of this training are advised to obtain 44
a copy of the law and review it carefully to understand all of its provisions. 45
46
2020 Value Adjustment Board Training - Module 1
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1. The property appraiser’s assessment is presumed correct if the appraiser proves by 1
a preponderance of the evidence that the assessment was arrived at by complying 2
with Section 193.011, F.S., any other applicable statutory requirements relating to 3
classified use values or assessment caps, and professionally accepted appraisal 4
practices, including mass appraisal standards, if appropriate. 5
6
2. A taxpayer who challenges an assessment is entitled to a determination by the 7
Board of the appropriateness of the appraisa l methodology used in making the 8
assessment. 9
10
3. The just value of property must be determined by an appraisal methodology that 11
complies with the criteria of section 193.011, F.S., and professionally accepted 12
appraisal practices, including mass appraisal standards, if appropriate. 13
14
4. The provisions of this statute preempt any prior case law that is inconsistent with it. 15
16
5. Under this law, “preponderance of the evidence” is the only standard of proof that 17
applies in the administrative review of assessme nts. Board attorneys must ensure 18
that Boards or special magistrates do not use any other standard of proof. 19
20
* “Preponderance of the evidence” is a standard (level) of proof that means 21
“greater weight of the evidence.” 22
23
* This standard of proof applies to petitions on valuations, property classifications, 24
exemptions, assessment difference transfers, and tax deferr als and associated 25
penalties. 26
27
* This is a significant change from prior law that provided for a different standard of 28
proof. 29
30
For administrative reviews of valuations, this statute also provides criteria for a Board or 31
special magistrate to apply in: 32
33
1. Determining whether the property appraiser established a presumption of 34
correctness; 35
36
2. Determining whether the property appraiser’s determination is incorrect, when 37
applicable; 38
39
3. When appropriate, determining whether to revise the assessment or to re mand the 40
assessment to the property appraiser; and 41
42
4. Revising the assessment when required. 43
44
Before 2009 and the adoption of House Bill 521, section 194.301, F.S., provided that 45
the Board may establish the assessment when authorized. 46
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1
* However, this statute and related rules (see below) provide that the Board shall 2
establish a revised assessment when authorized. This is a significant change from 3
prior law. 4
5
This statute also requires the property appraiser to follow appropriate remand directions 6
from the Board. This requirement is a significant change from prior law. 7
8
Provisions of this law are addressed in other modules of this training where appropriate. 9
10
11
Administrative Rules and Forms 12
The Department’s rules and forms for value adjustment boards include: 13
14
1. Rule Chapter 12D-9 and accompanying forms; 15
2. Rule Chapter 12D-10; and 16
3. Rule Chapter 12D-16.002, F.A.C., which includes forms to be used by the Board. 17
18
These rules and forms are contained in the Department’s Uniform Polic ies and 19
Procedures Manual for value adjustment boards, and are available on the Department’s 20
website at the following link: http://floridarevenue.com/property/Pages/VAB.aspx 21
22
Boards, Board clerks, taxpayers, property appraisers, and tax collectors are required to 23
follow these rules, as stated in sections 195.027(1) and 194.011(5)(b), F.S. 24
25
These rules supersede any local rules or prior Department rules on the subject. 26
27
Rule Chapter 12D-9, F.A.C., is the primary component of the Department’s Uniform 28
Policies and Procedures Manual for value adjustment boards, and also is a primary 29
component of this training for value adjustment boards and special magistrates. 30
31
32
Uniform Policies and Procedures Manual and Accompanying 33
Documents 34
Section 194.011(5)(b), Florida Statutes, states: 35
36
“The department shall develop a uniform policies and procedures manual that shall be 37
used by value adjustment boards, special magistrates, and taxpayers in proceed ings 38
before value adjustment boards. The manual shall be made available, at a minimum, on 39
the department’s website and on the existing websites of the clerks of circuit courts.” 40
41
The Florida Department of Revenue has developed the Uniform Policies and 42
Procedures Manual and has made it available, along with accompanying documents, on 43
its website as stated below. 44
45
Along with the accompanying documents listed below, the Uniform Policies and 46
2020 Value Adjustment Board Training - Module 1
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Procedures Manual must be made available on the existing website of the Board clerk 1
in each of the 67 counties. 2
3
The Department requests that Board clerks retain and use the docum ent titles as 4
provided in this manual when placing these documents on their websites. 5
6
The Uniform Policies and Procedures Manual and Accompanying Documents: 7
The three sets of documents described below are available on the Department’s 8
website at http://floridarevenue.com/property/Pages/VAB.aspx 9
10
1. The “Uniform Policies and Procedures Manual” for value adjustment boards, which is 11
composed of the following items: 12
13
a) Taxpayer rights as provided in Florida Statutes and the recently adopted rules; 14
15
b) The recently adopted rules of procedure for value adjustment board proceedings; 16
17
c) Recently adopted forms for value adjustment boards; 18
19
d) Florida Statutes regarding value adjustment board pr ocedures; and 20
21
e) A notice regarding the use of case law. 22
23
Accompanying the Uniform Policies and Procedures Manual are two sets of documents 24
titled: 25
26
2. “Other Legal Resources Including Statutory Criteria ,” and 27
28
3. “Reference Materials Including Guidelines.” 29
30
Each of these three sets of documents contains an introduction that provides orientation 31
on the authority, content, and use of that respective set. 32
33
Board clerks must ensure that all members of the Board, special magistrates, and 34
Board attorneys are provided with a copy of these three sets of documents. 35
36
37
The Value Adjustment Board and Government-in-the-Sunshine 38
An opinion of the Florida Attorney General has concluded that the official acts of both 39
Boards and special magistrates are subject to Florida’s Government-in-the-Sunshine 40
law found in section 286.011, F.S. See Attorney General Opinion 2010-15. 41
42
In the opinion, the Attorney General recognized that a value adjustment board is a 43
quasi-judicial governmental body and that a special magistrate is a quasi -judicial officer 44
who “stands in the shoes” of the Board in carrying out decision -making duties delegated 45
by the Board. See Attorney General Opinion 2010-15. 46
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1
The Board attorney shall advise the Board, Board clerk, and special magistrates on 2
public meeting and open government laws. See Rule 12D-9.009(1)(e)4., F.A.C. 3
4
At one of its organizational meetings held prior to conducting hearings, the Board shall 5
make available to the public, special magistrates, and Board members the requirements 6
of Florida’s Government in the Sunshine / open government laws including information 7
on where to obtain the current Government -in-the-Sunshine manual. See Rule 12D-8
9.013(1)(g), F.A.C. 9
10
Florida’s Government-in-the-Sunshine Manual is available at the following internet link: 11
http://www.myfloridalegal.com/sun.nsf/sunmanual 12
13
Orientation meetings conducted by Board designees for special magistrates shall be 14
related to local operating or ministerial procedures only and shall be open to the public 15
for observation. See Rule 12D-9.012(5), F.A.C. 16
17
* These meetings or orientations must be reasonably noticed to the public in the same 18
manner as an organizational meeting of the Board, or posted as reasonable notice on 19
the Board clerk’s website. See Rule 12D-9.012(6), F.A.C. 20
21
All petition hearings shall be open to the public, including hearings conducted by 22
electronic media. See Rule 12D-9.024(2) and 12D-9.026(4), F.A.C. 23
24
The Department’s training for special magistrates shall be open to the public. See Rule 25
12D-9.012(2), F.A.C. 26
27
28
Complete Text of Specific Legal Provisions for Taxpayer Rights 29
Florida law provides specific rights for property taxpayers. 30
31
These rights are in section 192.0105, F.S., and in Rule 12D -9.001, F.A.C. 32
33
These provisions of law are presented in their entirety in following sections of Module 1. 34
35
Boards, Board legal counsel, Board clerks, special magistrates, and property appraisers 36
must understand these taxpayer rights and take the steps necessary to ensure that 37
these rights are afforded all property taxpayers. 38
39
40
Taxpayer Rights in Section 192.0105, F.S. 41
The entire text of this section of Florida Statutes is presented below in italics, with 42
legislative history and notes immediately following. 43
44
“There is created a Florida Taxpayer’s Bill of Rights for property taxes and assessments 45
to guarantee that the rights, privacy, and property of the taxpayers of this state are 46
2020 Value Adjustment Board Training - Module 1
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adequately safeguarded and protected during tax levy, assessment, collection, and 1
enforcement processes administered under the revenue law s of this state. The 2
Taxpayer’s Bill of Rights compiles, in one document, brief but comprehensive 3
statements that summarize the rights and obligations of the property appraisers, tax 4
collectors, clerks of the court, local governing boards, the Department of Revenue, and 5
taxpayers. Additional rights afforded to payors of taxes and assessments imposed 6
under the revenue laws of this state are provided in s. 213.015. The rights afforded 7
taxpayers to assure that their privacy and property are safeguarded and pro tected 8
during tax levy, assessment, and collection are available only insofar as they are 9
implemented in other parts of the Florida Statutes or rules of the Department of 10
Revenue. The rights so guaranteed to state taxpayers in the Florida Statutes and the 11
departmental rules include: 12
13
(1) THE RIGHT TO KNOW.— 14
15
(a) The right to be sent a notice of proposed property taxes and proposed or adopted 16
non-ad valorem assessments (see ss. 194.011(1), 200.065(2)(b) and (d) and (13)(a), 17
and 200.069). The notice must also inform the taxpayer that the final tax bill may 18
contain additional non-ad valorem assessments (see s. 200.069(9)). 19
20
(b) The right to notification of a public hearing on each taxing authority’s tentative 21
budget and proposed millage rate and advertisement of a public hearing to finalize the 22
budget and adopt a millage rate (see s. 200.065(2)(c) and (d)). 23
24
(c) The right to advertised notice of the amount by which the tentatively adopted 25
millage rate results in taxes that exceed the previous year ’s taxes (see s. 200.065(2)(d) 26
and (3)). The right to notification of a comparison of the amount of the taxes to be levied 27
from the proposed millage rate under the tentative budget change, compared to the 28
previous year’s taxes, and also compared to the tax es that would be levied if no budget 29
change is made (see ss. 200.065(2)(b) and 200.069(2), (3), (4), and (8)). 30
31
(d) The right that the adopted millage rate will not exceed the tentatively adopted 32
millage rate. If the tentative rate exceeds the proposed rate, each taxpayer shall be 33
mailed notice comparing his or her taxes under the tentatively adopted millage rate to 34
the taxes under the previously proposed rate, before a hearing to finalize the budget 35
and adopt millage (see s. 200.065(2)(d)). 36
37
(e) The right to be sent notice by first-class mail of a non-ad valorem assessment 38
hearing at least 20 days before the hearing with pertinent information, including the total 39
amount to be levied against each parcel. All affected property owners have the right to 40
appear at the hearing and to file written objections with the local governing Board (see 41
s. 197.3632(4)(b) and (c) and (10)(b)2.b.). 42
43
(f) The right of an exemption recipient to be sent a renewal application for that 44
exemption, the right to a receipt for homestead exemption claim when filed, and the 45
2020 Value Adjustment Board Training - Module 1
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right to notice of denial of the exemption (see ss. 196.011(6), 196.131(1), 196.151, and 1
196.193(1)(c) and (5)). 2
3
(g) The right, on property determined not to have been entitled to homestead 4
exemption in a prior year, to notice of intent from the property appraiser to record notice 5
of tax lien and the right to pay tax, penalty, and interest before a tax lien is recorded for 6
any prior year (see s. 196.161(1)(b)). 7
8
(h) The right to be informed during the tax collection process, including: notice of tax 9
due; notice of back taxes; notice of late taxes and assessments and consequences of 10
nonpayment; opportunity to pay estimated taxes and non-ad valorem assessments 11
when the tax roll will not be certified in time; notice when interest begins to accrue on 12
delinquent provisional taxes; notice of the right to prepay estimated taxes by installment; 13
a statement of the taxpayer’s estimated tax liability for use in making installment 14
payments; and notice of right to defer taxes and non -ad valorem assessments on 15
homestead property (see ss. 197.322(3), 197.3635, 197.343, 197.363(2)(c), 197.222(3) 16
and (5), 197.2301(3), 197.3632(8)(a), 193.1145(10)(a), and 197.254(1)). 17
18
(i) The right to an advertisement in a newspaper listing names of taxpayers who are 19
delinquent in paying tangible personal property taxes, with amounts due, and giving 20
notice that interest is accruing at 18 percent and that, unless taxes are paid, warrants 21
will be issued, prior to petition made with the circuit court for an order to seize and sell 22
property (see s. 197.402(2)). 23
24
(j) The right to be sent a notice when a petition has been filed with the cour t for an 25
order to seize and sell property and the right to be mailed notice, and to be served 26
notice by the sheriff, before the date of sale, that application for tax deed has been 27
made and property will be sold unless back taxes are paid (see ss. 197.413(5), 28
197.502(4)(a), and 197.522(1)(a) and (2)). 29
30
(k) The right to have certain taxes and special assessments levied by special districts 31
individually stated on the “Notice of Proposed Property Taxes and Proposed or Adopted 32
Non-Ad Valorem Assessments” (see s. 200.069). 33
34
Notwithstanding the right to information contained in this subsection, under s. 197.122 35
property owners are held to know that property taxes are due and payable annually and 36
are charged with a duty to ascertain the amount of current and delinquent taxes and 37
obtain the necessary information from the applicable governmental officials. 38
39
(2) THE RIGHT TO DUE PROCESS.— 40
41
(a) The right to an informal conference with the property appraiser to present facts the 42
taxpayer considers to support changing th e assessment and to have the property 43
appraiser present facts supportive of the assessment upon proper request of any 44
taxpayer who objects to the assessment placed on his or her property (see s. 45
194.011(2)). 46
2020 Value Adjustment Board Training - Module 1
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1
(b) The right to petition the value adjustment board over objections to assessments, 2
denial of exemption, denial of agricultural classification, denial of historic classification, 3
denial of high-water recharge classification, disapproval of tax deferral, and any 4
penalties on deferred taxes imposed for incorrect information willfully filed. Payment of 5
estimated taxes does not preclude the right of the taxpayer to challenge his or her 6
assessment (see ss. 194.011(3), 196.011(6) and (9)(a), 196.151, 196.193(1)(c) and (5), 7
193.461(2), 193.503(7), 193.625(2), 197.2425, 197.301(2), and 197.2301(11)). 8
9
(c) The right to file a petition for exemption or agricultural classification with the value 10
adjustment board when an application deadline is missed, upon demonstration of 11
particular extenuating circumstances for filing late (see ss. 193.461(3)(a) and 12
196.011(1), (7), (8), and (9)(e)). 13
14
(d) The right to prior notice of the value adjustment board’s hearing date, the right to 15
the hearing at the scheduled time, the right to the hearing at the schedul ed time, and 16
the right to have the hearing rescheduled if the hearing is not commenced within a 17
reasonable time, not to exceed 2 hours, after the scheduled time (see s. 194.032(2)). 18
19
(e) The right to notice of date of certification of tax rolls and receipt of property record 20
card if requested (see ss. 193.122(2) and (3) and 194.032(2)). 21
22
(f) The right, in value adjustment board proceedings, to have all evidence presented 23
and considered at a public hearing at the scheduled time, to be represented by a person 24
specified in s. 194.034(1)(a), (b), or (c), to have witnesses sworn and cross-examined, 25
and to examine property appraisers or evaluators employed by the board who present 26
testimony (see ss. 194.034(1)(d) and (4), and 194.035(2)). 27
28
(g) The right to be sent a timely written decision by the value adjustment board 29
containing findings of fact and conclusions of law and reasons for upholding or 30
overturning the determination of the property appraiser, and the right to advertised 31
notice of all board actions, including appropriate narrative and column descriptions, in 32
brief and nontechnical language (see ss. 194.034(2) and 194.037(3)). 33
34
(h) The right at a public hearing on non-ad valorem assessments or municipal special 35
assessments to provide written objections and to provide testimony to the local 36
governing board (see ss. 197.3632(4)(c) and 170.08). 37
38
(i) The right to bring action in circuit court to contest a tax assessment or appeal value 39
adjustment board decisions to disapprove exemption or deny tax deferral (see ss. 40
194.036(1)(c) and (2), 194.171, 196.151, and 197.2425. 41
42
(3) THE RIGHT TO REDRESS.— 43
44
(a) The right to discounts for early payment on all taxes and non -ad valorem 45
assessments collected by the tax collector, except for partial payments as defined in s. 46
2020 Value Adjustment Board Training - Module 1
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197.374, the right to pay installment payments with discounts, and the right to pay 1
delinquent personal property taxes under a payment program when implemented by the 2
county tax collector (see ss. 197.162, 197.3632(8) and (10)(b)3., 197.222(1), and 3
197.4155). 4
5
(b) The right, upon filing a challenge in circuit court and paying taxes admitted in good 6
faith to be owing, to be issued a receipt and have suspended all procedures for the 7
collection of taxes until the final disposition of the action (se e s. 194.171(3)). 8
9
(c) The right to have penalties reduced or waived upon a showing of good cause when 10
a return is not intentionally filed late, and the right to pay interest at a reduced rate if the 11
court finds that the amount of tax owed by the taxpayer is greater than the amount the 12
taxpayer has in good faith admitted and paid (see ss. 193.072(4) and 194.192(2)). 13
14
(d) The right to a refund when overpayment of taxes has been made under specified 15
circumstances (see ss. 193.1145(8)(e) and 197.182(1)). 16
17
(e) The right to an extension to file a tangible personal property tax return upon 18
making proper and timely request (see s. 193.063). 19
20
(f) The right to redeem real property and redeem tax certificates at any time before full 21
payment for a tax deed is made to the clerk of the court, including documentary stamps 22
and recording fees, and the right to have tax certificates canceled if sold where taxes 23
had been paid or if other error makes it void or correctable. Property owners have the 24
right to be free from contact by a certificateholder for 2 years after April 1 of the year the 25
tax certificate is issued (see ss. 197.432(13) and (14), 197.442(1), 197.443, and 26
197.472(1) and (6)). 27
28
(g) The right of the taxpayer, property appraiser, tax collector, or the department, as 29
the prevailing party in a judicial or administrative action brought or maintained without 30
the support of justiciable issues of fact or law, to recover all costs of the administrative 31
or judicial action, including reasonable attorney’s fees, and of the department and the 32
taxpayer to settle such claims through negotiations (see ss. 57.105 and 57.111). 33
34
(4) THE RIGHT TO CONFIDENTIALITY.— 35
36
(a) The right to have information kept confidential, including federal tax information, ad 37
valorem tax returns, social security numbers, all financial records produced by the 38
taxpayer, Form DR-219 returns for documentary stamp tax information, and sworn 39
statements of gross income, copies of federal income tax returns for the prior year, 40
wage and earnings statements (W-2 forms), and other documents (see ss. 192.105, 41
193.074, 193.114(5), 195.027(3) and (6), and 196.101(4)(c)). 42
43
(b) The right to limiting access to a taxpayer’s records by a property appraiser, the 44
Department of Revenue, and the Auditor General only t o those instances in which it is 45
2020 Value Adjustment Board Training - Module 1
32
determined that such records are necessary to determine either the classification or the 1
value of taxable nonhomestead property (see s. 195.027(3)).” 2
3
History.—ss. 11, 15, ch. 2000-312; s. 7, ch. 2001-137; s. 1, ch. 2002-18; s. 2, ch. 2003-34; s. 13, 4
ch. 2004-5; s. 3, ch. 2006-312; s. 34, ch. 2008-4; s. 6, ch. 2009-157; s. 2, ch. 2009-165; s. 21, ch. 5
2010-5; s. 53, ch. 2011-151; s. 2, ch. 2012-193; s. 1, ch. 2016-128. 6
7
8
Taxpayer Rights in Rule 12D-9.001, F.A.C. 9
This rule section is titled “Taxpayer Rights in Value Adjustment Board Proceedings .” 10
11
The entire text of this section of the Florida Administrative Code is presented below in 12
italics. 13
14
“(1) Taxpayers are granted specific rights by Florida law concerning value adjustment 15
board procedures. 16
17
(2) These rights include: 18
19
(a) The right to be notified of the assessment of each taxable item of property in 20
accordance with the notice provisions set out in Florida Statutes for notices of proposed 21
property taxes; 22
23
(b) The right to request an informal conference with the property appraiser regarding the 24
correctness of the assessment or to petition for administrative or judicial review of 25
property assessments. An informal conference with the property appraiser is not a 26
prerequisite to filing a petition for administrative review or an action for judicial review; 27
28
(c) The right to file a petition on a form provided by the county that is substantially the 29
same as the form prescribed by the department or to file a petition on the form provided 30
by the department for this purpose; 31
32
(d) The right to state on the petition the approximate time anticipated by the taxpayer to 33
present and argue his or her petition before the Board; 34
35
(e) The right to authorize another person to file a board petition on the taxpayer’s 36
property assessment; 37
38
(f) The right, regardless of whether the petitioner initiates the evidence exchange, to 39
receive from the property appraiser a copy of the current property record card 40
containing information relevant to the computation of the current assessment, with 41
confidential information redacted. This includes the right to receive such property record 42
card when the property appraiser receives the petition from the board clerk, at which 43
time the property appraiser will either send the property record card to the petitioner or 44
notify the petitioner how to obtain it online; 45
46
2020 Value Adjustment Board Training - Module 1
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(g) The right to be sent prior notice of the date for the hearing of the taxpayer’s petition 1
by the value adjustment board and the right to the h earing within a reasonable time of 2
the scheduled hearing; 3
4
(h) The right to reschedule a hearing a single time for good cause, as described in this 5
chapter; 6
7
(i) The right to be notified of the date of certification of the county’s tax rolls ; 8
9
(j) The right to represent himself or herself or to be represented by another person who 10
is authorized by the taxpayer to represent the taxpayer before the board; 11
12
(k) The right, in counties that use special magistrates, to a hearing conducted by a 13
qualified special magistrate appointed and scheduled for hearings in a manner in which 14
the board, board attorney, and board clerk do not consider any assessment reductions 15
recommended by any special magistrate in the current year or in any previous year. 16
17
(l) The right to have evidence presented and considered at a public hearing or at a time 18
when the petitioner has been given reasonable notice; 19
20
(m) The right to have witnesses sworn and to cross-examine the witnesses; 21
22
(n) The right to be issued a timely written decision within 20 calendar days of the last 23
day the board is in session pursuant to Section 194.034, F.S., by the value adjustment 24
board containing findings of fact and conclusions of law and reasons for upholding or 25
overturning the determination of the pro perty appraiser or tax collector; 26
27
(o) The right to advertised notice of all board actions, including appropriate narrative 28
and column descriptions, in brief and nontechnical language; 29
30
(p) The right to bring an action in circuit court to appeal a value ad justment board 31
valuation decision or decision to disapprove a classification, exemption, portability 32
assessment difference transfer, or to deny a tax deferral or to impose a tax penalty; 33
34
(q) The right to have federal tax information, ad valorem tax return s, social security 35
numbers, all financial records produced by the taxpayer and other confidential taxpayer 36
information, kept confidential; and 37
38
(r) The right to limiting the property appraiser’s access to a taxpayer’s records to only 39
those instances in which it is determined that such records are necessary to determine 40
either the classification or the value of taxable nonhomestead property.” 41
2019 Value Adjustment Board Training - Module 1
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Links to Resources on the Internet 1
2
Department of Revenue’s Rules for Value Adjustment Boards on the internet at: 3
4
* Rule Chapter 12D-9, F.A.C., at: 5
https://www.flrules.org/gateway/ChapterHome.asp?Chapter=12D-9 6
7
* Rule Chapter 12D-10, F.A.C., at: 8
https://www.flrules.org/gateway/ChapterHome.asp?Chapter=12D -10 9
10
* Rule Chapter 12D-16, F.A.C., at: 11
https://www.flrules.org/gateway/ChapterHome.asp?Chapter=12D-16 12
13
14
Department of Revenue’s Forms for Value Adjustment Boards on the internet at: 15
http://floridarevenue.com/property/Pages/VAB.aspx 16
17
18
Value Adjustment Board Bulletins from the 19
Department of Revenue on the internet at: 20
https://revenuelaw.floridarevenue.com/Pages/Browse.aspx#3-18 21
22
23
Department of Revenue’s 24
Value Adjustment Board Process Calendar on the internet at: 25
http://floridarevenue.com/property/Documents/pt902020.pdf 26
27
28
Government-in-the-Sunshine Manual on the internet at: 29
http://www.myfloridalegal.com/sun.nsf/sunmanual 30
31
32
Recent Attorney General Opinions Relating to the 33
Value Adjustment Board Process on the internet at: 34
https://revenuelaw.floridarevenue.com/Pages/Browse.asp x#3-18 35
36
37
Attorney General Opinions on the internet at: 38
http://myfloridalegal.com/ago.nsf/Opinions 39
40
41
Florida Statutes on the internet at: 42
http://www.flsenate.gov/Laws/Statutes 43
44
NOTE: Other links to relevant information are contained in the other training modules. 45
2020 Value Adjustment Board Training - Module 2
35
1
Module 2: 2
The Roles of Participants 3
in the Value Adjustment Board Process 4
5
6
Training Module 2 addresses the following topics: 7
• The Composition of the Value Adjustment Board 8
• The Role of the Value Adjustment Board 9
• The Role of the Clerk of the Value Adjustment Board 10
• Requirements for Appointment of Board Legal Counsel 11
• The Role of Legal Counsel to the Value Adjustment Board 12
• Requirements for Appointment of Special Magistrates 13
• The Role of Special Magistrates 14
• The Role of the Property Appraiser 15
• The Role of the Petitioner 16
17
18
Learning Objectives 19
After completing this training module, the learner should be able to: 20
21
• Recognize the required composition of the value adjustment board 22
• Identify the responsibilities of the value adjustment board 23
• Recognize the responsibilities of the Board clerk 24
• Distinguish between the roles of the Board clerk and Board legal counsel 25
• Identify the criteria for the appointment of Board legal counsel 26
• Identify the responsibilities of the Board legal counsel 27
• Recognize the requirements for legal advice from Board legal counsel 28
• Identify the criteria for the appointment of special magistrates 29
• Recognize the general responsibilities of special magistrates 30
• Identify the property appraiser’s responsibilities 31
• Distinguish between the roles of the Board clerk and the property appraiser 32
• Recognize the role of the petitioner 33
34
35
The Composition of the Value Adjustment Board 36
The entire text of Rule 12D-9.004, F.A.C., titled “Composition of the Value Adjustment 37
Board”, is presented below in italics. 38
39
“(1) Every county shall have a value adjustment board which consists of: 40
41
(a) Two members of the governing body of the county, elected by the go verning body 42
from among its members, one of whom shall be elected as the chair of the value 43
adjustment board; 44
45
2020 Value Adjustment Board Training - Module 2
36
(b) One member of the school board of the county, elected by the school board from 1
among its members; and 2
3
(c) Two citizen members: 4
5
1. One who owns homestead property in the county appointed by the county’s 6
governing body; 7
8
2. One who owns a business that occupies commercial space located within the school 9
district appointed by the school board of the county. This person must, during the enti re 10
course of service, own a commercial enterprise, occupation, profession, or trade 11
conducted from a commercial space located within the school district and need not be 12
the sole owner. 13
14
3. Citizen members must not be: 15
16
a. A member or employee of any taxing authority in this state; 17
18
b. A person who represents property owners, property appraisers, tax collectors, or 19
taxing authorities in any administrative or judicial review of property taxes. 20
21
4. Citizen members shall be appointed in a manner to avoid confl icts of interest or the 22
appearance of conflicts of interest. 23
24
(2)(a) Each elected member of the value adjustment board shall serve on the board until 25
he or she is replaced by a successor elected by his or her respective governing body or 26
school board or is no longer a member of the governing body or school board of the 27
county. 28
29
(b) When an elected member of the value adjustment board ceases being a member of 30
the governing body or school board whom he or she represents, that governing body or 31
school board must elect a replacement. 32
33
(c) When the citizen member of the value adjustment board appointed by the governing 34
body of the county is no longer an owner of homestead property within the county, the 35
governing body must appoint a replacement. 36
37
(d) When the citizen member appointed by the school board is no longer an owner of a 38
business occupying commercial space located within the school district, the school 39
board must appoint a replacement. 40
41
(3)(a) At the same time that it selects a primary mem ber of the value adjustment board, 42
the governing body or school board may select an alternate to serve in place of the 43
primary member as needed. The method for selecting alternates is the same as that for 44
selecting the primary members. 45
46
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(b) At any time during the value adjustment board process the chair of the county 1
governing body or the chair of the school board may appoint a temporary replacement 2
for its elected member of the value adjustment board or for a citizen member it has 3
appointed to serve on the value adjustment board. 4
5
(4)(a) To have a quorum of the value adjustment board, the members of the board who 6
are present must include at least: 7
8
1. One member of the governing body of the county; 9
10
2. One member of the school board; and 11
12
3. One of the two citizen members. 13
14
(b) The quorum requirements of Section 194.015, F.S., may not be waived by anyone, 15
including the petitioner. 16
17
(5) The value adjustment board cannot hold its organizational meeting until all members 18
of the board are appointed, even if the number and type of members appointed are 19
sufficient to constitute a quorum. If board legal counsel has not been previously 20
appointed for that year, such appointment must be the first order of business.” 21
22
23
The Role of the Value Adjustment Board 24
The general role of the value adjustment board is to hear appeals filed by petitioners 25
regarding certain determinations of the property appraiser or tax collector. 26
27
The Board may publish fee schedules adopted by the Board. See Rule 12D-9.005(2)(a), 28
F.A.C. 29
30
The Florida Attorney General has recognized that a value adjustment board is a quasi-31
judicial governmental body that is subject to Florida’s Government -in-the-Sunshine law 32
found in Section 286.011, F.S. See AGO 2010-15. 33
34
* The Board must ensure that all Board meetings are duly noticed under Section 35
286.011, F.S., and are held in accordance with the law. See Rule 12D-9.005(3), F.A.C. 36
37
The Board shall meet not earlier than 30 days and not later than 60 days after the 38
mailing of the notice of proposed property taxes. See Rule 12D-9.005(1)(a), F.A.C. 39
40
* However, no Board hearing shall be held before approval of all or any part of the 41
county’s assessment rolls by the Department of Revenue. See Rule 12D-9.005(1)(a), 42
F.A.C. 43
44
The Board shall meet for the following purposes (See Rule 12D-9.005(1)(a), F.A.C.): 45
46
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1. Hearing petitions relating to assessments filed pursuant to Section 194.011(3), F.S.; 1
2
2. Hearing complaints relating to homestead exemptions as provided for under Section 3
196.151, F.S.; 4
5
3. Hearing appeals from exemptions denied, or disputes arising from exemptions 6
granted, upon the filing of exemption applications under Section 196.011, F.S.; 7
8
4. Hearing appeals concerning ad valorem tax deferrals and classifications ; or 9
10
5. Hearing appeals from determinations that a change of ownership under Section 11
193.155(3), F.S., a change of ownership or control under Section 193.1555(5), F.S., 12
or a qualifying improvement under Section 193.1555(5), F.S., has occurred. 13
14
Note: Legislation enacted in 2018, effective July 1, 2018, added that the value 15
adjustment board will meet to hear appeals of the property appraiser ’s denials of 16
abatements, under section 197.318, F.S., of taxes for homestead residential 17
improvements damaged or destroyed by Hurricane Hermine, Matthew, or Irma. See 18
Chapter 2018-118, section 14, Law of Florida (CS/HB 7087). 19
20
The Board may not meet earlier than July 1 to hear appeals pertaining to the denial of 21
exemptions, agricultural and high-water recharge classifications, classifications as 22
historic property used for commercial or certain nonprofit purposes, and deferrals. See 23
Rule 12D-9.005(1)(b), F.A.C. 24
25
The Board shall remain in session until its duties are completed concerning all 26
assessment rolls or parts of assessment rolls. See Rule 12D-9.005(1)(c), F.A.C. 27
28
The Board may temporarily recess, but shall reconvene when necessary to hear 29
petitions, complaints, or appeals and disputes filed upon the roll or portion of the roll 30
when approved. See Rule 12D-9.005(1)(c), F.A.C. 31
32
Failure on three occasions in any single tax year for the Boar d to convene at the 33
scheduled time of meetings of the Board is grounds for removal from office by the 34
Governor for neglect of duties. See Rule 12D-9.005(5), F.A.C. 35
36
The Board shall make its decisions timely so that the Board clerk may observe the 37
requirement that the decisions be issued within 20 calendar days of the last day the 38
Board is in session pursuant to Section 194.034, F.S. See Rule 12D-9.005(1)(c), F.A.C. 39
40
Boards may have additional internal operating procedures, not rules, which do not 41
conflict with, change, expand, suspend, or negate the rules adopted in this rule chapter 42
or other provisions of law, and only to the extent indispensable for the efficient operation 43
of the Board process. See Rule 12D-9.005(2)(a), F.A.C. 44
45
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* These internal operating procedures may include methods for creating the verbatim 1
record, provisions for parking by participants, assignment of hearing rooms, 2
compliance with the Americans with Disabilities Act, and other ministerial type 3
procedures. See Rule 12D-9.005(2)(b), F.A.C. 4
5
The Board shall not provide notices or establish a local procedure instructing petitioners 6
to contact the property appraiser's or tax collector’s office or any other agency with 7
questions about Board hearings or procedures. See Rule 12D-9.005(2)(c), F.A.C. 8
9
* The Board, Board legal counsel, Board clerk, special magistrate or other Board 10
representative shall not otherwise enlist the property appraiser’s or tax c ollector’s 11
office to perform administrative duties for the Board. See Rule 12D-9.005(2)(c), F.A.C. 12
13
* Personnel performing any of the Board’s duties shall be independent of the property 14
appraiser’s and tax collector’s office. See Rule 12D-9.005(2)(c), F.A.C. 15
16
However, Rule 12D-9.005, F.A.C., does not prevent: 17
18
1. The Board clerk or personnel performing Board duties from referring petitioners to 19
the property appraiser or tax collector for issues within the responsibility of the 20
property appraiser or tax collector; or 21
22
2. The property appraiser from providing data to assist the Board clerk with the notice 23
of tax impact. See Rule 12D-9.005(2)(c), F.A.C. 24
25
Other duties of value adjustment boards are set forth in other areas of Florida law. 26
Value adjustment boards shall perform all duties required by law and shall abide by all 27
limitations on their authority as provided by law. See Rule 12D-9.005(4), F.A.C. 28
29
30
The Role of the Clerk of the Value Adjustment Board 31
The clerk of the governing body of the county shall be the clerk of the value adjustment 32
board. See Rule 12D-9.006(1), F.A.C. 33
34
The Board clerk may delegate to a member of his or her staff the day-to-day 35
responsibilities for the Board, but is ultimately responsible for the operation of the 36
Board. See Rule 12D-9.006(1), F.A.C. 37
38
It is the Board clerk’s responsibility to verify, through Board legal counsel, t hat the Board 39
has met all of the requirements for the organizational meeting before the Board or 40
special magistrates hold hearings. See Rule 12D-9.007(1), F.A.C. 41
42
* If the Board clerk determines that any of the requirements are not met, he or she 43
shall contact the Board legal counsel or the Board chair regarding the deficiencies 44
and shall cancel any scheduled hearings until the requirements are met. See Rule 45
12D-9.007(1), F.A.C. 46
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1
In counties with a population of more than 75,000, the Board clerk shall provi de 2
notification annually to qualified individuals or their professional associations of 3
opportunities to serve as special magistrates. See Rule 12D-9.007(7), F.A.C. 4
5
The Board clerk shall make petition forms available to the public upon request. See Rule 6
12D-9.007(2), F.A.C. 7
8
The Board clerk shall receive and acknowledge completed petitions and promptly 9
furnish a copy of all completed and timely filed petitions to the property appraiser or tax 10
collector. See Rule 12D-9.007(3), F.A.C. 11
12
* Alternatively, the property appraiser or the tax collector may obtain the relevant 13
information from the Board clerk electronically. See Rule 12D-9.007(3), F.A.C. 14
15
The Board clerk shall prepare a schedule of appearances before the Board based on 16
petitions timely filed with him or her. See Rule 12D-9.007(4), F.A.C. 17
18
* If the petitioner has indicated on the petition an estimate of the amount of time he or 19
she will need to present and argue the petition, the Board clerk must take this 20
estimate into consideration when scheduling the hearing. See Rule 12D-9.007(4), 21
F.A.C. 22
23
The Board clerk shall schedule hearings to allow sufficient time for evidence to be 24
presented and considered and to allow for hearings to begin at their scheduled time. 25
See Rule 12D-9.007(9), F.A.C. 26
27
* The Board clerk shall advise the Board chair if the Board’s tentative schedule for 28
holding hearings is insufficient to allow for proper scheduling. See Rule 12D-9.007(9), 29
F.A.C. 30
31
Under Rule 12D-9.007(5), F.A.C., no less than 25 calendar days before the day of the 32
petitioner’s scheduled appearance for the hearing, the Board clerk must: 33
34
1. Notify the petitioner of the date and time scheduled for the appearance; and 35
36
2. Simultaneously notify the property appraiser or tax collector. 37
38
Under Rule 12D-9.007(6), F.A.C., if an incomplete petition, which includes a petition not 39
accompanied by the required filing fee, is received within the time required, the Board 40
clerk shall: 41
42
1. Notify the petitioner of the incomplete petition; and 43
44
2. Allow the petitioner an opportunity to complete the petition within 10 calendar days 45
from the date the notice of incomplete petition is mailed. 46
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1
* The re-filed petition shall be considered timely if completed and filed, including 2
payment of the fee if previously unpaid, within the time frame provided in the 3
Board clerk’s notice of incomplete petition. See Rule 12D-9.007(6), F.A.C. 4
5
The Board clerk shall ensure public notice o f and access to all hearings. See Rule 12D-6
9.007(8), F.A.C. 7
8
* This public notice shall contain a general description of the locations, dates, and 9
times hearings are being scheduled. See Rule 12D-9.007(8), F.A.C. 10
11
* This public notice requirement may be satisfied by making the notice available on 12
the Board clerk’s website. See Rule 12D-9.007(8), F.A.C. 13
14
Hearings must be conducted in facilities that are clearly identified for such purpose and 15
are freely accessible to the public while hearings are being conducted. See Rule 12D-16
9.007(8), F.A.C. 17
18
* The Board clerk shall assure proper signage to identify the hearing facilities. See 19
Rule 12D-9.007(8), F.A.C. 20
21
The Board clerk shall timely notify the parties of the Board’s decision so that the 22
decision shall be issued within 20 calendar days of the last day the Board is in session 23
pursuant to section 194.034, F.S., and shall otherwise notify the property appraiser or 24
tax collector of the decision. Notification of the petitioner must be by first class mail or by 25
electronic means as set forth in section 194.034(2) or section 192.048, F.S. See Rule 26
12D-9.007(10), F.A.C. 27
28
In counties using special magistrates, the Board clerk shall also make available to both 29
parties as soon as practicable a copy of the recommended decision of the special 30
magistrate by mail or electronic means. See Rule 12D-9.007(10), F.A.C. 31
32
No party shall have access to decisions prior to any other party. See Rule 12D-9.007(10), 33
F.A.C. 34
35
After the Board has decided all petitions, complaints, appeals and disputes, the Board 36
clerk shall make public notice of the findings and results of the Board in the manner 37
prescribed in Section 194.037, F.S., and by the Department. See Rule 12D-9.007(11), 38
F.A.C. 39
40
Rule 12D-9.007(12), F.A.C., states the following. 41
42
“The board clerk is the official record keeper for the board and shall maintain a record of 43
the proceedings which shall consist of: 44
45
(a) All filed documents; 46
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1
(b) A verbatim record of any hearing; 2
3
(c) All tangible exhibits and documentary evidence presented; 4
5
(d) Any meeting minutes; and 6
7
(e) Any other documents or materials presented on the record by the parties or by the 8
board or special magistrate.” 9
10
Under Rule 12D-9.007(12), F.A.C., the Board clerk shall maintain the hearing record as 11
follows: 12
13
1. For four years after the final decision has been rendered by the Board, if no appeal 14
is filed in circuit court; or 15
16
2. For five years if an appeal is filed in circuit court; or 17
18
3. If requested by one of the parties, until the final disposition of any subsequent 19
judicial proceeding relating to the property. 20
21
The Board clerk shall make available to the public copies of all additional internal 22
operating procedures and forms of the Board or special magistrates described in Rule 23
12D-9.005, F.A.C., and shall post any such procedures and forms on the Board clerk’s 24
website, if the Board clerk has a website. See Rule 12D-9.007(13), F.A.C. 25
26
* These materials shall be consistent with Department rules and forms. See Rule 12D-27
9.007(13), F.A.C. 28
29
* Making materials available on a website is sufficient; however, the Board clerk shall 30
make appropriate provisions for persons that have hardship. See Rule 12D-9.007(13), 31
F.A.C. 32
33
The Board clerk shall notify the chief executive off icer of each municipality within which 34
petitioned property is located, as provided in Section 193.116, F.S. See Rule 12D-35
9.007(14), F.A.C. 36
37
The Board clerk shall also publish any notice required by Section 196.194, F.S. See Rule 38
12D-9.007(14), F.A.C. 39
40
41
Requirements for Appointment of Board Legal Counsel 42
Each value adjustment board must appoint private legal counsel to assist the Board. 43
See Rule 12D-9.008(1), F.A.C. 44
45
Under Rule 12D-9.008(2), F.A.C., to be appointed as Board legal counsel, an attorney: 46
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1
1. Must be an attorney in private practice; 2
3
2. Must not be employed by government; and 4
5
3. Must have practiced law for over five years and must meet the requirements of 6
section 194.015, F.S. 7
8
An attorney may represent more than one value adjustment board . See Rule 12D-9
9.008(3), F.A.C. 10
11
The private counsel may not represent the property appraiser, the tax collector, any 12
taxing authority, or any property owner in any administrative or judicial review of 13
property taxes. See Section 194.015, F.S. 14
15
* An attorney may represent a Board, even if another member of the attorney’s law 16
firm represents one of the parties listed in Section 194.015, F.S., so long as the 17
representation is not before the Board. See Rule 12D-9.008(4), F.A.C. 18
19
The Department has issued two bulletins containing additional information about the 20
qualifications for Board legal counsel. These bulletins are available on the 21
Department’s website at the following links: 22
23
Bulletin 2008-12 24
25
Bulletin 2008-18 26
27
The Florida Attorney General has issued an opinion regarding the qualifications for 28
Board legal counsel. See AGO 2008-55. 29
30
31
The Role of Legal Counsel to the Value Adjustment Board 32
Rule 12D-9.009(1), F.A.C., states the following: 33
34
“The board legal counsel shall have the responsibilities listed below consistent with the 35
provisions of law. 36
37
(a) The primary role of the board legal counsel shall be to advise the board on all 38
aspects of the value adjustment board review process to ensure that all actions 39
taken by the board and its appointees meet the requirements of law. 40
41
(b) Board legal counsel shall advise the board in a manner that will promote and 42
maintain a high level of public trust and confidence in the administrative review 43
process. 44
45
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(c) The board legal counsel is not an advocate for either party in a value adjustment 1
board proceeding, but instead ensures that the proceedings are fair and consistent 2
with the law. 3
4
(d) Board legal counsel shall advise the board of the actions necessary for compliance 5
with the law. 6
7
(e) Board legal counsel shall advise the board regarding: 8
9
1. Composition and quorum requirements; 10
11
2. Statutory training and qualification requirements for special magistrates and 12
members of the board; 13
14
3. Legal requirements for recommended decisions and final decisions; 15
16
4. Public meeting and open government laws; and 17
18
5. Any other duties, responsibilities, actions or requirements of the board consistent 19
with the laws of this state.” 20
21
Legal counsel must avoid conflicts of interest or the appearance of a conflict of interest 22
in their representation of the Board. See Rule 12D-9.008(5), F.A.C. 23
24
The Board attorney shall review and respond to written complaints alleging 25
noncompliance with the law by the Board, special magistrates, Board clerk, and the 26
parties. See Rule 12D-9.009(1)(f), F.A.C. 27
28
* This requirement does not apply to routine requests for reconsideration, requests for 29
rescheduling, and pleadings and argument in petitions. See Rule 12D-9.009(1)(f), 30
F.A.C. 31
32
* The Board attorney shall send a copy of the complaint along with the response to 33
the Department of Revenue. See Rule 12D-9.009(1)(f), F.A.C. 34
35
Upon being appointed, the Board attorney shall send his or her contact information to 36
the Department of Revenue by mail, fax, or e-mail. See Rule 12D-9.009(2), F.A.C. 37
38
* The contact information must include the legal counsel’s name, mailing address, 39
telephone number, fax number, and e-mail address. See Rule 12D-9.009(2), F.A.C. 40
41
The Role of Board Legal Counsel Regarding Applicable Statutory Criteria 42
It is critical that the Board attorney assure, by the beginning of the hearing, that the 43
Board or special magistrate is aware of and has copies of the statutory criteria that 44
apply to the petition under review. 45
46
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* In counties that do not use special magistrates, it is especially important for the 1
Board attorney to provide to each Board member, by the beginning of the hearing, 2
copies of the statutory criteria that apply to the petition under review and to clearly 3
answer any questions Board members may have regarding such criteria. 4
5
6
Requirements for Appointment of Special Magistrates 7
In counties with populations of more than 75,000, the Board shall appoint special 8
magistrates to take testimony and make recommendations on petitions filed with the 9
Board. See Rule 12D-9.010(1), F.A.C. 10
11
Special magistrates shall be selected from a list maintained by the Board clerk of 12
qualified individuals who are willing to serve. See Rule 12D-9.010(1), F.A.C. 13
14
Regarding requirements for appointing special magistrates, Rule 12D-9.010(1), F.A.C., 15
further states the following: 16
17
“When appointing special magistrates, the board, board attorney, and board clerk shall 18
not consider any assessment reductions recommended by any special magistrate in the 19
current year or in any previous year .” 20
21
Rule 12D-9.010(5)(b), F.A.C., requires that the selection of a special magistrate must: 22
23
1. Be based solely on the experience and qualifications of the magistrate; and 24
25
2. Not be influenced by any party, or prospective party, to a Board proceeding or by 26
any such party with an interest in the outcome of the proceeding. 27
28
When appointing special magistrates or scheduling special magistrates for specific 29
hearings, the board, board attorney, and board clerk may not consider the dollar amount 30
or percentage of any assessment reductions any special magistrate has recommended 31
in the current year or in any previous year. See Chapter 2016-128, Section 12, Laws of 32
Florida (CS/CS/HB 499). 33
34
In counties with populations of 75,000 or less, the Board shall have the option of using 35
special magistrates. See Rule 12D-9.010(2), F.A.C. 36
37
* The Department shall make available to these counties a list of qualified special 38
magistrates. See Rule 12D-9.010(2), F.A.C. 39
40
A person does not have to be a resident of the county in which he or she serves as a 41
special magistrate. See Rule 12D-9.010(3), F.A.C. 42
43
Rule 12D-9.010(4), F.A.C., states the following: 44
45
“The special magistrate must meet the following qu alifications: 46
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1
(a) A special magistrate must not be an elected or appointed official or employee of the 2
county. 3
4
(b) A special magistrate must not be an elected or appointed official or employee of a 5
taxing jurisdiction or of the State. 6
7
(c) During a tax year in which a special magistrate serves, he or she must not 8
represent any party before the board in any administrative review of property taxes. 9
10
(d) All special magistrates must meet the qualifications specified in Section 194.035, 11
F.S.” 12
13
Rule 12D-9.010(4)(d)1., F.A.C., provides that a special magistrate appointed to hear 14
issues of exemptions, classifications, portability assessment difference transfers , 15
changes of ownership under section 193.155(3), F.S., changes of ownership or control 16
under section 193.1554(5) or 193.1555(5), F.S., or a qualifying improvement 17
determination under section 193.1555(5), F.S., must have met one of the following 18
requirements: 19
20
1. Be a member of The Florida Bar with no less than five years of experience in the 21
area of ad valorem taxation and have received the Department’s training; or 22
23
2. Be a member of The Florida Bar with no less than three years of experience in the 24
area of ad valorem taxation and have completed the Department’s training including 25
the exam. 26
27
Rule 12D-9.010(4)(d)2., F.A.C., provides that a special magistrate appointed to hear 28
petitions regarding the valuation of real estate shall be a state certified real estate 29
appraiser and must have met one of the following requirements: 30
31
1. Have not less than five years of real property valuation experience and have 32
received the Department’s training; or 33
34
2. Have not less than three years of real property valuation experience and have 35
completed the Department’s training including the exam. 36
37
A real property valuation special magistrate must be certified under Chapter 475, Part II, 38
F.S. See Rule 12D-9.010(4)(d)2., F.A.C. 39
40
1. A Florida certified residential appraiser appointed b y the Board shall only hear 41
petitions on the valuation of residential real property of one to four residential units 42
and shall not hear petitions on other types of real property. See Rule 12D-43
9.010(4)(d)2.a., F.A.C. 44
45
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2. A Florida certified general appraiser appointed by the Board may hear petitions on 1
the valuation of any type of real property. See Rule 12D-9.010(4)(d)2.b., F.A.C. 2
3
Rule 12D-9.010(4)(d)3., F.A.C., provides that a special magistrate appointed to hear 4
petitions regarding the valuation of ta ngible personal property shall be a designated 5
member of a nationally recognized appraiser’s organization and must have met one of 6
the following requirements: 7
8
1. Have not less than five years of experience in tangible personal property valuation 9
and have received the Department’s training; or 10
11
2. Have not less than three years of experience in tangible personal property valuation 12
and have completed the Department’s training including the exam. 13
14
All special magistrates shall receive or complete an annual training program provided by 15
the Department of Revenue, as described above. See Rule 12D-9.010(4)(d)4., F.A.C. 16
17
* Special magistrates with less than five years of experience must show that they 18
have completed the training by taking a written examination provided by the 19
Department. See Rule 12D-9.010(4)(d)4., F.A.C. 20
21
* A special magistrate must receive or complete any required training prior to holding 22
hearings. See Rule 12D-9.010(4)(d)4., F.A.C. 23
24
The Board or Board legal counsel must verify a special magistrate’s qualifications 25
before appointing the special magistrate. See Rule 12D-9.010(5)(a), F.A.C. 26
27
28
The Role of Special Magistrates 29
The Florida Attorney General has recognized that: 30
31
1. A special magistrate is a quasi-judicial officer who “stands in the shoes” of the Board 32
in carrying out decision-making duties delegated by the Board; and 33
34
2. The official acts of the special magistrate are subject to Florida’s Government-in-the-35
Sunshine law in section 286.011, F.S. See Attorney General Opinion 2010-15. 36
37
Rule 12D-9.011(1), F.A.C., states the following: 38
39
“The role of the special magistrate is to conduct hearings, take testimony and make 40
recommendations to the board regarding petitions filed before the board. In carrying out 41
these duties the special magistrate shall: 42
43
(a) Accurately and completely preserve all testimony, documents received, and 44
evidence admitted for consideration; 45
46
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(b) At the request of either party, administer the oath upon the property appraiser or 1
tax collector, each petitioner and all witnesses testifying at a hearing; 2
3
(c) Conduct all hearings in accordance with the rules prescribed b y the Department 4
and the laws of the state; and 5
6
(d) Make recommendations to the board which shall include proposed findings of fact, 7
proposed conclusions of law, and the reasons for upholding or overturning the 8
determination of the property appraiser or tax collector. Also, see Rule 12D-9.030, 9
F.A.C.” 10
11
Special magistrates must adhere to Rule 12D-9.022, F.A.C., relating to disqualification 12
or recusal. See Rule 12D-9.010(5)(b), F.A.C. 13
14
The special magistrate shall perform other duties as set out in the rules of the 15
Department and other areas of Florida law, and shall abide by all limitations on the 16
special magistrate’s authority as provided by law. See Rule 12D-9.011(2), F.A.C. 17
18
19
The Role of the Property Appraiser 20
The property appraiser shall assess all property located within the county each year. 21
See Section 192.011, F.S. 22
23
Each year, the property appraiser shall prepare the real property assessment roll and 24
the tangible personal property assessment roll. See Section 193.114, F.S. 25
26
Each year, the property appraiser shall prepare and deliver by first class mail to each 27
taxpayer listed on the current year’s assessment roll a notice of proposed property 28
taxes. See Section 200.069, F.S. 29
30
“The property appraiser or a member of his or her staff shall confer with the taxpayer 31
regarding the correctness of the assessment.” See Rule 12D-9.002(2), F.A.C. 32
33
The property appraiser shall make available to petitioners the blank petition form 34
adopted or approved by the Department. See section 194.011(3)(a), F.S., and Rule 12D-35
9.015(5), F.A.C. 36
37
When the property appraiser receives the petition from the board clerk, regardless of 38
whether the petitioner initiates the evidence exchange, the property app raiser shall 39
provide to the petitioner a copy of the property record card containing information 40
relevant to the computation of the current assessment, with confidential information 41
redacted. The property appraiser shall provide such property record card t o the 42
petitioner either by sending it to the petitioner or by notifying the petitioner how to obtain 43
it online. See Rule 12D-9.015(16), F.A.C. 44
45
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When requested by a petitioner for purposes of filing a petition, the property appraiser 1
shall provide to the petitioner a determination of whether certain multiple, contiguous, 2
undeveloped parcels are substantially similar in nature. See Rule 12D-9.015(5), F.A.C. 3
4
Legislation enacted in 2015 added section 194.011(3)(g), F.S., to provide that an owner 5
of multiple tangible personal property accounts may file with the value adjustment board 6
a single joint petition if the property appraiser determines that the tangible personal 7
property accounts are substantially similar in nature. See Chapter 2015-115, Section 1, 8
Laws of Florida (CS for HB 489). 9
10
When requested by a petitioner for purposes of filing a petition on behalf of association 11
members, the property appraiser shall provide to the petitioner a determination of 12
whether certain multiple real property parcels are substantially similar regarding 13
location, proximity to amenities, number of rooms, living area, and condition. See Rule 14
12D-9.015(5), F.A.C. 15
16
The property appraiser shall not provide information to taxpayers regarding Board 17
hearings or procedures, and shall not perform administrative duties for the Board. See 18
Rule 12D-9.005(2)(c), F.A.C. 19
20
The property appraiser shall not attempt to control or i nfluence any part of the value 21
adjustment board process. See Rule 12D-9.023(1), F.A.C. 22
23
The property appraiser must not attempt to influence the selection of any special 24
magistrate. See Subsection 194.035(1), F.S., and Rule 12D-9.010(5)(b), F.A.C. 25
26
If the property appraiser communicates a reasonable belief that a Board member or 27
special magistrate has a bias, prejudice, or conflict of interest, the basis for that belief 28
shall be stated in the record of the proceeding or submitted prior to the hearing in w riting 29
to the Board legal counsel. See Rule 12D-9.022(4)(a), F.A.C. 30
31
The property appraiser must avoid ex parte communication. See Rules 12D-9.017(1)(a) 32
and 12D-9.029(8)(b), F.A.C. 33
34
No later than seven (7) days before the hearing, if the property appraiser receives the 35
petitioner’s documentation and if requested in writing by the petitioner, the property 36
appraiser shall: 37
38
1. Provide the petitioner with a list and summary of evidence to be presented at the 39
hearing accompanied by copies of documentation to be presented by the property 40
appraiser at the hearing; 41
42
2. Include in the evidence list the property record card ; and 43
44
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3. In calculating the seven (7) days, use calendar days and not include the day of the 1
hearing in the calculation, and count backwards from the day of the hearing. See 2
Rule 12D-9.020(2)(b), F.A.C. 3
4
After the opening of a hearing, the property appraiser shall indicate for the record his or 5
her determination of value, tax exemption, property classification, or “portability” 6
assessment difference. See Rule 12D-9.024(7), F.A.C. 7
8
Under Subsection 194.301(1), F.S., in a hearing on just, classified use, or assessed 9
value, the property appraiser shall present evidence first. See Rule 12D-9.024(7), F.A.C. 10
11
In the Board or special magistrate hearing, the property appraiser is responsible for 12
presenting relevant and credible evidence in support of his or her determination. See 13
Rule 12D-9.025(3)(a), F.A.C. 14
15
A property appraiser shall not present undisclosed evidence that was not supplied to the 16
petitioner as required under the evidence exchange rule, Rule 12D -9.020, F.A.C. See 17
Rules 12D-9.020(7) and 12D-9.025(4)(f)2., F.A.C. 18
19
After receiving a Board or special magistrate’s remand decision from the Board clerk, 20
the property appraiser shall follow the appropriate directions from the Board or special 21
magistrate and shall produce a written remand review. See Rule 12D-9.029(8)(a), F.A.C. 22
23
The property appraiser may provide data to as sist the Board clerk with the notice of tax 24
impact. See Rules 12D-9.005(2)(c) and 12D-9.038(1), F.A.C. 25
26
When delivered by the Board, the property appraiser shall attach a copy of the Board’s 27
certification of the assessment roll to each copy of each assess ment roll prepared by 28
the property appraiser. See Rule 12D-9.037(1)(b), F.A.C. 29
30
Other responsibilities of Florida property appraisers are set forth in Florida law. 31
32
33
The Role of the Petitioner 34
The petitioner is responsible for completing the applicable petition form in accordance 35
with 2016 legislative amendments referenced in the following note. The updated petition 36
forms in the Form DR-486 series are available at: 37
http://floridarevenue.com/property/Pages/Forms.aspx 38
39
The Department has adopted rules implementing the 2016 legislation regarding who 40
may file a petition and under what conditions, and regarding who may represent a 41
taxpayer in a petition and under what conditions. The content of these rules is 42
presented where applicable in Module 3 of this training. 43
44
The petitioner is responsible for paying the appropriate filing fee if required. See Rule 45
12D-9.015(12)(b), F.A.C. 46
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1
The petitioner is responsible for timely filing the petition form in accordance with the 2
requirements of Rule 12D-9.015(13), F.A.C.; or 3
4
* When a petitioner wishes to file a late-filed petition, the petitioner is responsible for 5
demonstrating in writing “good cause” that justifies the late-filed petition, in 6
accordance with Rule 12D-9.015(14), F.A.C. 7
8
The petitioner must avoid ex parte communication as described in Rule 12D-9
9.017(1)(a), F.A.C. 10
11
The petitioner must not influence the selection of an y special magistrate. See Rule 12D-12
9.010(5)(b), F.A.C. 13
14
For petitions other than those challenging a portability assessment difference, if the 15
petitioner does not wish to appear at the hearing but would like for the Board or special 16
magistrate to consider his or her evidence, the petitioner is responsible for indicating 17
this desire to the Board clerk and for submitting his or her evidence to the Board clerk 18
and the property appraiser before the hearing. See Rule 12D-9.024(9), F.A.C. 19
20
Other aspects of the petitioner’s role in the value adjustment board process are 21
specified in Rule Chapter 12D-9, F.A.C. 22
23
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1
Module 3: 2
Procedures Before the Hearing 3
4
5
Training Module 3 addresses the following topics: 6
• Avoiding Conflicts of Interest 7
• Organizational Meeting of the Value Adjustment Board 8
• Prehearing Checklist for the Value Adjustment Board 9
• Requirements for Petition Form and Filing Fee 10
• Persons Authorized to Sign and File Petitions 11
• Procedures for Duplicate and Unauthorized Petitions 12
• Procedures for Late Filed Petitions 13
• Acknowledgment of Timely Filed Petitions 14
• Requirements for Filing and Service of Documents 15
• Prohibition of Ex Parte Communication 16
• Representation of the Taxpayer 17
• Procedures for Scheduling Hearings 18
• Procedures for Notifying the Parties of the Scheduled Hearing 19
• Procedures for Rescheduling Hearings 20
• Procedures for the Exchange of Evidence 21
• Petitions Withdrawn, Settled, or Acknowledged as Correct 22
• Non-Appearance and Summary Disposition of Petitions 23
• Legislation Affecting Certain Board Petitions 24
25
26
Learning Objectives 27
After completing this training module, the learner should be able to: 28
29
• Identify and avoid conflicts of interest 30
• Recognize the requirements for the Board organizational meeting under Rule 12D -31
9.013(1), F.A.C. 32
• Identify the components of the Board’s prehearing checklist 33
• Select the correct components for a completed petition form 34
• Recognize the requirements and procedures for a late filed petition 35
• Identify the requirements for the filing and se rvice of documents 36
• Recognize ex parte communication and its remedies 37
• Identify the procedures and requirements for scheduling hearings 38
• Select the correct elements for a notice of hearing 39
• Recognize the conditions for rescheduling hearings 40
• Recognize the procedures for the exchange of evidence 41
• Identify the correct procedure for handling withdrawn or settled petitions 42
• Recognize the conditions for a summary disposition of a petition 43
• Identify the conditions under which a written decision must be produced 44
45
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1
Avoiding Conflicts of Interest 2
Citizen members of the Board shall be appointed in a manner to avoid conflicts of 3
interest or the appearance of conflicts of interest. See Rule 12D-9.004(1)(c)4., F.A.C. 4
5
Legal counsel must avoid conflicts of interest or the appearance of a conflict of interest 6
in their representation of the Board. See Rule 12D-9.008(5), F.A.C. 7
8
During a tax year in which a special magistrate serves, he or she mu st not represent 9
any party before the Board in any administrative review of property taxes. See Rule 12D-10
9.010(4)(c), F.A.C. 11
12
Board members and special magistrates must conduct themselves in a manner that 13
promotes and maintains a high level of public trus t in the fairness of the Board process. 14
15
Board members and special magistrates must avoid conflicts of interest or the 16
appearance of a conflict of interest in their respective roles as a quasi -judicial hearing 17
body and quasi-judicial hearing officers. 18
19
The Board clerk shall perform his or her duties in a manner to avoid the appearance of 20
a conflict of interest. See Rule 12D-9.023(1), F.A.C. 21
22
* Hearing rooms, office space, computer systems, personnel, and other resources 23
used for any of the Board’s functions shall be controlled by the Board through the 24
Board clerk. See Rule 12D-9.023(1), F.A.C. 25
26
* The Board clerk shall not use the resources of the property appraiser’s or tax 27
collector’s office and shall not allow the property appraiser or tax collector to control 28
or influence any part of the value adjustment board process. See Rule 12D-9.023(1), 29
F.A.C. 30
31
Code of Judicial Conduct and Related Information 32
The information below is intended to assist Boards, Board attorneys, and special 33
magistrates with avoiding ex parte communication and avoiding an actual or apparent 34
conflict of interest in their quasi-judicial roles in administrative reviews of assessments. 35
36
Given their quasi-judicial roles, Boards, Board attorneys, and special magistrates should 37
review and, where applicable, use relevant parts of the Code of Judicial Conduct as a 38
guide for their own conduct. 39
40
* While there is no legal requirement that Boards, Board attorneys, or special 41
magistrates adhere to the Code of Judicial Conduct, relevant parts of this code can 42
be used to help promote a high level of public trust in the value adjustment board 43
process. 44
45
* The Code of Judicial Conduct is published on the Florida Supreme Court’s website. 46
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1
The Judicial Ethics Benchguide contains information on the Code of Judicial Conduct, 2
advisory opinions of the Judicial Ethics Advisory Committee, and Florida Supreme Court 3
opinions involving judicial discipline. 4
5
* Boards, Board attorneys, and special magistrates should review and con sider the 6
relevant information in the Judicial Ethics Benchguide. 7
8
* NOTE: As used in the Judicial Ethics Benchguide (for example, see pages xix and 9
178), the term "special magistrate" refers to those appointed by an Article V (Florida 10
Constitution) court in a judicial proceeding and does not refer to the special 11
magistrates appointed under section 194.035, F.S. 12
13
Boards, Board attorneys, and special magistrates should review and consider an 14
opinion of the Judicial Ethics Advisory Committee (JEAC) cautioning that a judge should 15
not accept as Facebook “friends” attorneys who may appear before the judge. 16
17
* This JEAC Opinion Number 2010-06 was issued March 26, 2010. 18
19
Boards, Board attorneys, and special magistrates should also review and consider 20
JEAC Opinion Number 2001-02 (issued February 19, 2001), which disapproved a 21
judge’s participation in an email forum where issues that could be brought before the 22
judge are discussed by those who could appear bef ore the judge. 23
24
Boards, Board attorneys, and special magistrates should also review and consider 25
Florida Attorney General Opinion AGO 2008-65. 26
27
* In this opinion, the Attorney General recognized that discussions via electronic 28
bulletin boards are meetings subject to notices and public access under the 29
Sunshine Laws of this state. 30
31
The information above is not intended to impede professional networking activities that 32
do not result in ex parte communication or an actual or apparent conflict of interest by 33
Boards, Board attorneys, or special magistrates in their quasi -judicial roles. 34
35
More information on avoiding conflicts of interest is presented in Module 4 under the 36
section titled “Disqualification or Recusal of Special Magistrates or Board Members .” 37
38
39
Organizational Meeting of the Value Adjustment Board 40
The Board shall annually hold one or more organizational meetings, at least one of 41
which shall meet the requirements of Rule 12D-9.013, F.A.C. 42
43
* The Board shall hold this organizational meeting prior to the holding of Board 44
hearings. See Rule 12D-9.013(1), F.A.C. 45
46
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* The Board shall announce its tentative schedule, taking into consideration the 1
number of petitions filed, the possible need to reschedule, and the requirement that 2
the Board stay in session until all petitions have been heard. See Rule 12D-9.013(2), 3
F.A.C. 4
5
The Board shall provide reasonable notice of each organizational meeting and such 6
notice shall include the date, time, location, purpose of the meeting, and information 7
required by Section 286.0105, F.S. See Rule 12D-9.013(1), F.A.C. 8
9
Rule 12D-9.013(1), F.A.C., requires the Board to do the following 12 items a t one of its 10
organizational meetings. 11
12
1. Introduce the members of the Board and provide contact information; 13
14
2. Introduce the Board clerk or any designee of the Board clerk and provi de the Board 15
clerk’s contact information; 16
17
3. Appoint or ratify the private Board legal counsel. At the meeting at which Board legal 18
counsel is appointed, this item shall be the first order of business; 19
20
4. Appoint or ratify special magistrates, if the Boa rd will be using them for that year; 21
22
5. Make available to the public, special magistrates, and Board members, Rule 23
Chapter 12D-9, F.A.C., containing the uniform rules of procedure for hearings before 24
value adjustment boards and special magistrates (if app licable), and the associated 25
forms that have been adopted by the Department; 26
27
6. Make available to the public, special magistrates, and Board members, Rule 28
Chapter 12D-10, F.A.C., containing the rules applicable to the requirements for 29
hearings and decisions; 30
31
7. Make available to the public, special magistrates and Board members the 32
requirements of Florida’s Government-in-the Sunshine/open government laws 33
including information on where to obtain the current Government-in-the-Sunshine 34
manual; 35
36
8. Discuss, take testimony on and adopt or ratify with any required revision or 37
amendment any local administrative procedures and forms of the Board. 38
39
a) Such procedures must be ministerial in nature and not be inconsistent with 40
governing statutes, case law, attorney general opinions, or rules of the 41
Department. 42
43
b) All local administrative procedures and forms of the Board or special magistrates 44
shall be made available to the public and shall be accessible on the Board clerk’s 45
website, if any; 46
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1
9. Discuss general information on Florida’s property tax system, respect ive roles within 2
this system, taxpayer opportunities to participate in the system, and property 3
taxpayer rights; 4
5
10. Make available to the public, special magistrates and Board members, Rules 12D-6
51.001, 51.002, 51.003, F.A.C., and Chapters 192 through 19 5, F.S., as reference 7
information containing the guidelines and statutes applicable to assessments and 8
assessment administration; 9
10
11. Adopt or ratify by resolution any filing fee for petitions for that year, in an amount 11
not to exceed $15; and 12
13
12. For purposes of this rule, making available to the public means, in addition to 14
having copies at the meeting, the Board may refer to a website containing copies of 15
such documents. 16
17
The Board may hold additional meetings for the purpose of addressing administrati ve 18
matters. See Rule 12D-9.013(3), F.A.C. 19
20
21
Prehearing Checklist for the Value Adjustment Board 22
The entire text of Rule 12D-9.014, F.A.C., titled “Prehearing Checklist,” is presented 23
below in italics. 24
25
“(1) The board clerk shall not allow the holding of scheduled hearings until the board 26
legal counsel has verified that all requirements in Chapter 194, F.S., and department 27
rules, were met as follows: 28
29
(a) The composition of the board is as provided by law; 30
31
(b) Board legal counsel has been appointed as provided by law; 32
33
(c) Board legal counsel meets the requirements of Section 194.015, F.S.; 34
35
(d) No board members represent other government entities or taxpayers in any 36
administrative or judicial review of property taxes, and citizen members are not 37
members or employees of a taxing authority, during their membership on the board; 38
39
(e) In a county that does not use special magistrates, either all board members have 40
received the department’s training or board legal counsel has received the department’s 41
training; 42
43
(f) The organizational meeting, as well as any other board meetings, will be or were 44
noticed in accordance with Section 286.011, F.S., and will be or were held in 45
accordance with law; 46
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1
(g) The department’s uniform value adjustment board procedures, consisting of this rule 2
chapter, were made available at the organizational meeting and copies were pro vided to 3
special magistrates and board members; 4
5
(h) The department’s uniform policies and procedures manual is available on the 6
existing website of the board clerk, if the board clerk has a website; 7
8
(i) The qualifications of special magistrates were verified, including that special 9
magistrates received the department’s training, and that special magistrates with less 10
than five years of required experience successfully completed the department’s training 11
including any updated modules and an examination, and were certified; 12
13
(j) The selection of special magistrates was based solely on proper experience and 14
qualifications and neither the property appraiser nor any petitioners influenced the 15
selection of special magistrates. This provision does not prohibit th e board from 16
considering any written complaint filed with respect to a special magistrate by any party 17
or citizen; 18
19
(k) The appointment and scheduling of special magistrates for hearings was done in a 20
manner in which the board, board attorney, and board cl erk did not consider any 21
assessment reductions recommended by any special magistrate in the current year or 22
in any previous year. 23
24
(l) All procedures and forms of the board or special magistrate are in compliance with 25
Chapter 194, F.S., and this rule chapter; 26
27
(m) The board is otherwise in compliance with Chapter 194, F.S., and this rule chapter; 28
and 29
30
(n) Notice has been given to the chief executive officer of each muni cipality as provided 31
in Section 193.116, F.S. 32
33
(2) The board clerk shall notify the board legal counsel and the board chair of any action 34
needed to comply with subsection (1).” 35
36
37
Requirements for Petition Form and Filing Fee 38
For the purpose of requesting a hearing before the Board, the Department prescribes 39
the Form DR-486 series. See Rule 12D-9.015(1)(a), F.A.C. 40
41
* These forms are available on the Department’s website at the following link: 42
http://floridarevenue.com/property/Pages/Forms.aspx 43
44
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* The Department, the Board clerk, and the property appraiser or tax collector shall 1
make available to petitioners the blank petition for ms adopted or approved by the 2
Department. See Rule 12D-9.015(5), F.A.C. 3
4
* Current and up-to-date petition forms must be used. 5
6
A “completed” petition is one that provides information for all the required elements that 7
are displayed on the Department’s form and that is accompanied by the appropriate 8
filing fee if required. See Rules 12D-9.015(12)(b) and 12D-9.015(2), F.A.C. 9
10
Under Rule 12D-9.015(2), F.A.C., petition forms must contain the following elements so 11
that when filed with the Board clerk the form will be considered a “completed” petition as 12
indicated below: 13
14
1. Describe the property by parcel number; 15
16
2. Be sworn by the petitioner; 17
18
3. State the approximate time anticipated by the petitioner for presenting his or her 19
case, which the Board clerk must consider in scheduling the hearing, and contain a 20
space for the petitioner to indicate dates of non -availability for scheduling purposes if 21
applicable; 22
23
4. Contain a space for the petitioner to indicate on the petition form that he or she does 24
not wish to attend the hearing but would like for the Board or special magistrate to 25
consider the petitioner’s evidence without the petitioner attending the hearing; 26
27
5. Contain a statement that the petitioner has the right, regardless of whether the 28
petitioner initiates the evidence exchange, to receive from the property appraiser a 29
copy of the property record card containing information relevant to the computation 30
of the current assessment, with confidential information redacted, along with a 31
statement that when the property appraiser receives the petition, the property 32
appraiser will either send the property record card to the petitioner or notify the 33
petitioner how to obtain the property record card online. 34
35
6. Contain a signature field for the taxpayer to sign the petition and a checkbox for the 36
taxpayer to indicate that she or he has authorized a representative to receive or 37
access confidential taxpayer information related to the taxpayer; 38
39
* Contain a checkbox for the taxpayer to indicate that he or she has authorized a 40
compensated or uncompensated representative to act on the taxpayer’s behalf; 41
42
* Contain a signature field for an authorized employee or representative to sign the 43
petition, when applicable, along with the authorized employee’s or 44
representative’s signed certification under penalty of perjury that he or she has 45
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the taxpayer’s authorization to file the petition on the taxpayer’s behalf together 1
with checkboxes for professional information and spaces for license numbers ; 2
3
* Contain a signature field for a compensated or uncompensated representative, 4
who is not an employee of the taxpayer or of an affiliated entit y, and not an 5
attorney who is a member of the Florida Bar, a real estate appraiser licensed or 6
certified under Chapter 475, Part II, F.S., a real estate broker licensed under 7
Chapter 475, Part I, F.S., or a certified public accountant licensed under Chapter 8
473, F.S., for such representative to sign the petition, and contain checkboxes, 9
for a compensated representative to indicate he or she is attaching a power of 10
attorney from the taxpayer, and for an uncompensated representative to indicate 11
he or she is attaching a written authorization from the taxpayer ; 12
13
7. Contain a space for the petitioner to indicate whether the property is four or less 14
residential units or another property type, provided the Board clerk shall accept the 15
petition even if this space is not filled in; and 16
17
8. Contain a statement that a tangible personal property assessment may not be 18
contested until a return required by section 193.052, F.S., is timely filed. 19
20
If the petition indicates that the taxpayer has authorized a compensated rep resentative, 21
who is not acting as a licensed or certified professional listed in Rule 12D -9.018(3)(a), 22
F.A.C., to act on the taxpayer’s behalf, at the time of filing the petition must either be 23
signed by the taxpayer or be accompanied by a power of attorney. See Rule 12D-24
9.015(2)(g), F.A.C. 25
26
If the petition indicates that the taxpayer has authorized an uncompensated 27
representative to act on the taxpayer’s behalf, at the time of filing the petition must 28
either be signed by the taxpayer or be accompan ied by the taxpayer’s written 29
authorization. See Rule 12D-9.015(2)(h), F.A.C. 30
31
The petition form shall provide notice to the petitioner that the person signing the 32
petition becomes the agent of the taxpayer for the purpose of serving process to obtain 33
personal jurisdiction over the taxpayer for the entire Board proceeding, including any 34
appeals to circuit court of a Board decision by the property appraiser or tax collector. 35
See Rule 12D-9.015(3), F.A.C. 36
37
The petition form shall provide notice to the petit ioner of his or her right to an informal 38
conference with the property appraiser and that this conference is not a prerequisite to 39
filing a petition nor does it alter the time frame for filing a timely petition. See Rule 12D-40
9.015(4), F.A.C. 41
42
If the taxpayer or representative’s name, address, telephone, or similar contact 43
information on the petition changes after filing the petition, the taxpayer or 44
representative shall notify the Board clerk in writing. See Rule 12D-9.015(6), F.A.C. 45
46
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The Board clerk shall accept for filing any completed petition that is timely submitted on 1
a form approved by the Department, with payment if required. See Rule 12D-9.015(12)(a), 2
F.A.C. 3
4
Under Rule 12D-9.015(12)(b), F.A.C., a completed petition is one that: 5
6
1. Provides information for all the required elements that are displayed on the 7
Department’s form; 8
2. Is accompanied by a power of attorney if required; 9
3. Is accompanied by written taxpayer authorization if required; and, 10
4. Is accompanied by the appropriate filing fee if required. 11
12
In accepting a petition, the Board clerk shall rely on: the licensure information provided 13
by a licensed professional representative; the power of attorney provided by an 14
authorized, compensated person; or the written taxpayer authorization provided by an 15
authorized, uncompensated person. See Rule 12D-9.015(12)(c), F.A.C. 16
17
If an incomplete petition is received, the Board clerk shall notify the petitioner and give 18
the petitioner an opportunity to complete and re -file the petition within 10 calendar days 19
from the date the notice of incomplete petition is mailed. See Rules 12D-9.007(6) and 12D-20
9.015(12)(a), F.A.C. 21
22
* A completed petition shall be considered timely if completed and re -filed within the 23
time frame provided in the Board clerk’s notice of incomplete petition. See Rule 12D-24
9.015(12)(a), F.A.C. 25
26
Petitions related to valuation issues may be filed at any time during the taxable year but 27
must be filed on or before the 25th day following the mailing of the notice of proposed 28
property taxes. See Rule 12D-9.015(13), F.A.C. 29
30
* Filing timeframes for other types of petitions are specified in Rule 12D-9.015(13), 31
F.A.C. 32
33
Note: The filing timeframe for petitions of the deployed servicemembers exemption 34
is extended for 2020 to the 25th day after the property appraiser mails the notice of 35
proposed property taxes. The petitioner is not required to pay a filing fee for such 36
petition, notwithstanding section 194.013, F.S. See Chapter 2020-10, Section 9, Laws of 37
Florida, (HB 7097), effective upon becoming a law on April 8, 2020, and first applicable to 38
the 2020 ad valorem tax roll. 39
40
To petition either a denial of a portability assessment limitation transfer or the amount of 41
the transfer, a petitioner may file, on Form DR-486PORT, a petition with the Board in 42
the county where the new homestead is located. See Rule 12D-9.028(2), F.A.C. 43
44
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* This portability petition may be filed at any time during the taxable year but must be 1
filed on or before the 25th day following the mailing of the notice of proposed 2
property taxes as provided in section 194.011, F.S. See Rule 12D-9.028(2), F.A.C. 3
4
5
Persons Authorized to Sign and File Petitions 6
The following persons may sign and file petitions with the value adjustment board. See 7
Rule 12D-9.015(9), F.A.C. 8
9
• The taxpayer may sign and file a petition. 10
11
• An employee of the taxpayer or of an affiliated entity or a licensed or certified 12
professional listed in paragraph 12D-9.018(3)(a), F.A.C., who the taxpayer has 13
authorized to file a petition and represent the taxpayer and who certifies under 14
penalty of perjury that he or she has the taxpayer’s authorization to file a petition on 15
the taxpayer’s behalf and represent the taxpayer, may sign and file such a petition 16
that is not signed by the taxpayer and that is not accompanied by the taxpayer’s 17
written authorization. 18
19
• A compensated person, who is not an employee of the taxpayer or of an affiliated 20
entity and who is not acting as a licensed or certified professional listed in paragraph 21
12D-9.018(3)(a), F.A.C., may sign and file a petition on the taxpayer’s behalf if the 22
taxpayer has authorized such person by power of attorney. If the petition is not 23
signed by the taxpayer, such person must provide a copy of the power of attorney to 24
the board clerk at the time the petition is filed. This power of attorney is valid only for 25
representing a single taxpayer in a single assessment year, and must identify the 26
parcels or accounts for which the person is authorized to represent the taxpayer and 27
must conform to the requirements of Chapter 709, Part II, F.S. A taxpayer may use a 28
Department of Revenue form to grant the power of attorney or may use a different 29
form provided it meets the requirements of Chapter 709, Part II, and Section 30
194.034(1), F.S. The Department has adopted Form DR -486POA, Power of Attorney 31
for Representation Before the Value Adjustment Board, which is incorporated by 32
reference in Rule 12D-16.002, F.A.C., as a form available to taxpayers for granting 33
the power of attorney. 34
35
• An uncompensated person, who has a taxpayer’s signed written authorization to 36
represent the taxpayer, is authorized to sig n and file a petition on the taxpayer’s 37
behalf if, at the time the petition is filed, such person provides a copy of the 38
taxpayer’s written authorization to the Board clerk with the petition or the taxpayer’s 39
signed written authorization is contained on the petition form. This written 40
authorization is valid only for representing a single taxpayer in a single assessment 41
year and must identify the parcels or accounts for which the person is authorized to 42
represent the taxpayer. A taxpayer may use a Department of Revenue form to grant 43
the authorization in writing or may use a different form provided it meets the 44
requirements of Section 194.034(1), F.S. The Department has adopted Form DR -45
486A, Written Authorization for Representation Before the Value Adjustment Board, 46
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which is incorporated by reference in Rule 12D-16.002, F.A.C., as a form available to 1
taxpayers for granting the written authorization. 2
3
4
Procedures for Duplicate and Unauthorized Petitions 5
If duplicate petitions are filed on the same property, the Board clerk shall contact the 6
taxpayer and all petitioners to identify whether a person has the taxpayer’s authorization 7
to file a petition and represent the taxpayer, and resolve the issue in acco rdance with 8
Rule Chapter 12D-9, F.A.C. See Rule 12D-9.015(11), F.A.C. 9
10
If a taxpayer notifies the Board that an unauthorized petition has been filed for the 11
taxpayer’s property, the Board may require the person who filed the petition to provide 12
to the Board, before a hearing is held on such petition, the taxpayer’s written 13
authorization for the person to file the petition and represent the taxpayer. See Rule 12D-14
9.015(10)(a), F.A.C. 15
16
If the Board finds that an employee or a professional listed in paragrap h 12D-17
9.018(3)(a), F.A.C., knowingly and willfully filed a petition not authorized by the 18
taxpayer, the Board shall require such employee or professional to provide to the Board 19
clerk, before any petition filed by that employee or professional is heard, th e taxpayer’s 20
written authorization for the employee or professional to represent the taxpayer. This 21
Board requirement shall extend for one year after the Board’s imposition of the 22
requirement. See Rule 12D-9.015(10)(b), F.A.C. 23
24
25
Procedures for Late Filed Petitions 26
The Board may not extend the time for filing a petition. See Rule 12D-9.015(14)(a), F.A.C. 27
28
The Board is not authorized to set and publish a deadline for late filed petitions. See 29
Rule 12D-9.015(14)(a), F.A.C. 30
31
However, the failure to meet the statutory deadline for filing a petition to the Board does 32
not prevent consideration of such a petition by the Board or special magistrate when the 33
Board or Board designee determines that: 34
35
1. The petitioner has demonstrated “good cause” justifying consideration of the petition; 36
and 37
38
2. The delay will not, in fact, be harmful to the performance of Board functions in the 39
taxing process. See Rule 12D-9.015(14)(a), F.A.C. 40
41
Under Rule 12D-9.015(14)(a), F.A.C., “Good cause” means the verifiable showing of 42
extraordinary circumstances, as follows: 43
44
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1. Personal, family, or business crisis or emergency at a critical time or for an extended 1
period of time that would cause a reasonable person’s attention to be diverted from 2
filing; or 3
4
2. Physical or mental illness, infirmity, or disability that would reasonably affect the 5
petitioner’s ability to timely file; or 6
7
3. Miscommunication with, or misinformation received from, the Board clerk, property 8
appraiser, or their staff regarding the necessity or the proper procedure for filing that 9
would cause a reasonable person’s attention to be diverted from timely filing; or 10
11
4. Any other cause beyond the control of the petitioner that would prevent a reasonably 12
prudent petitioner from timely filing. 13
14
The Board clerk shall accept but not schedule for hearing a petition submitted to the 15
Board after the statutory deadline has expired. See Rule 12D-9.015(14)(b), F.A.C. 16
17
* The Board clerk shall submit the petition to the Bo ard or Board designee for good 18
cause consideration if the petition is accompanied by a written explanation for the 19
delay in filing. See Rule 12D-9.015(14)(b), F.A.C. 20
21
* Unless scheduled together or by the same notice, the decision regarding good 22
cause for late filing of the petition must be made before a hearing is scheduled, and 23
the parties shall be notified of this decision. See Rule 12D-9.015(14)(b), F.A.C. 24
25
The Board clerk shall forward a copy of completed but untimely filed petitions to the 26
property appraiser or tax collector at the time they are received or upon the 27
determination of good cause. See Rule 12D-9.015(14)(c), F.A.C. 28
29
The Board is authorized to, but need not, require good cause hearings before good 30
cause determinations are made. See Rule 12D-9.015(14)(d), F.A.C. 31
32
* The Board or a Board designee, which includes the Board legal counsel or a special 33
magistrate, shall determine whether the petitione r has demonstrated, in writing, good 34
cause justifying consideration of the petition. See Rule 12D-9.015(14)(d), F.A.C. 35
36
* If the Board or a Board designee determines that the petitioner has demonstrated 37
good cause, the Board clerk shall accept the petitio n for filing and so notify the 38
petitioner and the property appraiser or the tax collector. See Rule 12D-9.015(14)(d), 39
F.A.C. 40
41
* If the Board or a Board designee determines that the petitioner has not 42
demonstrated good cause, or if the petition is not accompanied by a written 43
explanation for the delay in filing, the Board clerk shall notify the petitioner and the 44
property appraiser or tax collector. See Rule 12D-9.015(14)(e), F.A.C. 45
46
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A person who files a petition may timely file an action in circuit court to preserve the 1
right to proceed in circuit court (See sections 193.155(8)(l), 194.036, 194.171(2), and 2
196.151, F.S.). See Rule 12D-9.015(14)(f), F.A.C. 3
4
5
Acknowledgment of Timely Filed Petitions 6
The Board clerk shall accept all completed petitions, as defined by statute and Rule 7
12D-9.015(2), F.A.C. See Rule 12D-9.015(15), F.A.C. 8
9
Upon receipt of a completed and filed petition, the Board clerk shall provide to the 10
petitioner an acknowledgment of receipt of this petition and shall provide to the property 11
appraiser or tax collector a copy of the petition. See Rule 12D-9.015(15), F.A.C. 12
13
When the property appraiser receives the pet ition from the Board clerk, regardless of 14
whether the petitioner initiates the evidence exchange, the property appraiser shall 15
provide to the petitioner a copy of the property record card containing information 16
relevant to the computation of the current assessment, with confidential information 17
redacted. The property appraiser shall provide such property record card to the 18
petitioner either by sending it to the petitioner or by notifying the petitioner how to obtain 19
it online. See Rule 12D-9.015(16), F.A.C. 20
21
The Board clerk shall send the notice of hearing so that it will be received by the 22
petitioner no less than twenty-five (25) calendar days prior to the day of the scheduled 23
hearing. See Rule 12D-9.015(17), F.A.C. 24
25
* The Board clerk will have prima facie complied with the requirements of this section 26
if the notice was deposited in the U.S. mail thirty (30) days prior to the day of such 27
scheduled appearance. See Rule 12D-9.015(17), F.A.C. 28
29
30
Requirements for Filing and Service of Documents 31
In construing these rules or any order of the Board, special magistrate, or a Board 32
designee, filing shall mean received by the Board clerk during open hours or by the 33
Board, special magistrate, or a Board designee during a meeting or hearing. See Rule 34
12D-9.016(1), F.A.C. 35
36
Any hand-delivered or mailed document received by the office of the Board clerk, after 37
close of business as determined by the Board clerk, shall be considered as filed the 38
next regular business day. See Rule 12D-9.016(2)(a), F.A.C. 39
40
If the Board clerk accepts documents filed by fax or other electronic transmission, 41
documents received on or after 11:59:59 P.M. of the day they are due shall be 42
considered as filed the next regular business day. See Rule 12D-9.016(2)(b), F.A.C. 43
44
If the Board and the Board clerk have the necessary electronic resources and no party 45
is prejudiced, any document that is required to be filed, served, provided, or made 46
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available may be filed, served, provided, or made available electronically. See Rule 12D-1
9.016(2)(c), F.A.C. 2
3
Rule 12D-9.007(10), F.A.C., requires the Board clerk to notify petitioners of the Board’s 4
decisions either by first class mail or by electronic means as set forth in section 5
194.034(2) or 192.048, F.S. Section 192.048, F.S., authorizes the electronic 6
transmission of Board final decisions under certain conditions when the recipient has 7
consented in writing to receive the document electronically, and section 194.034(2), 8
F.S., provides for electronic transmission of Board decisions if the taxpayer has 9
selected the electronic option on the originally filed petition. 10
11
Any party who elects to file any document by fax or other electronic transmission shall 12
be responsible for any delay, disruption, or interruption of the electronic signals and 13
accepts the full risk that the document may not be properly filed with the Board clerk as 14
a result. See Rule 12D-9.016(4), F.A.C. 15
16
Local procedure may supersede provisions regarding the number of copies that must be 17
provided. See Rule 12D-9.016(2)(d), F.A.C. 18
19
When a party files a document with the Board, other than the petition, that party shall 20
serve copies of the document to all parties in the proceeding. See Rule 12D-9.016(3), 21
F.A.C. 22
23
Under Rule 12D-9.016(3), F.A.C., when a document is filed that does not clearly 24
indicate it has been provided to the other party, then the Board clerk, Board legal 25
counsel, Board members, and special magistrates shall: 26
27
1. Inform the filing party of the requirement to provide a copy of the document to the 28
other party; or 29
30
2. Shall exercise care to ensure that a copy is provided to the other party and that no 31
ex parte communication occurs. 32
33
34
Prohibition of Ex Parte Communication 35
A participant shall not communicate with a Board member or the special magistrate 36
regarding the issues in the petition without: 37
38
1. The other party being present; or 39
40
2. Providing a copy of any written communication to the other party. See Rule 12D-41
9.017(1)(a), F.A.C. 42
43
* In this context, “participant” includes the petitioner, the property appraiser, the Board 44
clerk, the special magistrate, a Board member, any other person directly or indirectly 45
interested in the proceeding, and anyone authorized to act on behalf of any party. 46
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1
* This rule shall not prohibit internal communications among the Board clerk, Board, 2
special magistrates, and Board legal counsel, regarding internal operations of the 3
Board and other administrative matters. See Rule 12D-9.017(1)(b), F.A.C. 4
5
* The special magistrate is specifically authorized to communicate with the Board’s 6
legal counsel or Board clerk on legal matters or other issues regarding a petition. 7
See Rule 12D-9.017(1)(b), F.A.C. 8
9
A Board member or special magistrate shall immediately place on the record any 10
attempt by the property appraiser, tax collector, taxpayer, or taxpayer’s agent to provide 11
information or discuss issues, without the presence of the opposing party, with the 12
Board member or special magistrate regarding a petition before or after the hearing. 13
See Rule 12D-9.017(2), F.A.C. 14
15
Under Rule 12D-9.017(3), F.A.C., the Board or the special magistrate shall not consider 16
the ex parte communication unless each of the following three elements is true: 17
18
1. All parties have been notified about the ex parte communication; 19
20
2. No party objects to consideration of the communication; and 21
22
3. All parties have an opportunity during the hearing to cross-examine, object, or 23
otherwise address the communication. 24
25
26
Representation of the Taxpayer 27
A taxpayer has the right, at the taxpayer’s own expense and subject to the petition filing 28
requirements set forth in Rule Chapter 12D-9, F.A.C., to be represented before the 29
board by a person described in Rule 12D-9.018(3), F.A.C. See Rule 12D-9.018(1), F.A.C. 30
31
The taxpayer’s representative may present testimony and other evidence in support of 32
the petition. See Rule 12D-9.018(1), F.A.C. 33
34
The authorized individual, agent, or legal entity that signs the petition becomes the 35
agent of the taxpayer for the pur pose of serving process to obtain jurisdiction over the 36
taxpayer for the entire value adjustment board proceedings, including any appeals of a 37
board decision by the property appraiser or tax collector. However, this does not 38
authorize the individual, agent, or legal entity to receive or access the taxpayer’s 39
confidential information without written authorization from the taxpayer. See Rule 12D-40
9.018(2), F.A.C. 41
42
Rule 12D-9.018(3), F.A.C., provides that, subject to petition filing requirements, a 43
taxpayer may be represented before the Board by one of the following persons: 44
45
1. An employee of the taxpayer or of an affiliated entity may represent the taxpayer. 46
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1
2. One of the following professionals may represent the taxpayer: 2
a. An attorney who is a member of the Florida Bar, 3
b. A real estate appraiser licensed or certified under Chapter 475, Part II, F.S., 4
c. A real estate broker licensed under Chapter 475, Part I, F .S., or 5
d. A certified public accountant licensed under Chapter 473, F.S. 6
7
Note: If the taxpayer has authorized an employee or professional , listed above, to file 8
a petition and represent the taxpayer and the employee or professional certifies 9
under penalty of perjury that he or she has the taxpayer’s authorization to file the 10
petition on the taxpayer’s behalf and represent the taxpayer, the employee or 11
professional may file a petition that is not signed by the taxpayer and that is not 12
accompanied by the taxpayer’s written authorization. See Rule 12D-9.018(3)(a)3., 13
F.A.C. 14
15
3. A person who provides to the board clerk at the time the petition is filed a power of 16
attorney authorizing such person to act on the taxpayer’s behalf, may represent the 17
taxpayer. The power of attorney: is valid only for representing a single taxpayer in a 18
single assessment year, must identify the parcels or accounts for which the person is 19
authorized to represent the taxpayer , and must conform to the requirements of 20
Chapter 709, Part II, F.S. A taxpayer may use a Department of Revenue form to 21
grant the power of attorney or may use a different form, provided it meets the 22
requirements of Chapter 709, Part II, and Section 194.034(1), F.S. The Department 23
has adopted Form DR-486POA, titled Power of Attorney for Representation Before 24
the Value Adjustment Board, which is incorporated by reference in Rule 12D -16.002, 25
F.A.C., as a form available to taxpayers for granting the power of attorney. See Rule 26
12D-9.018(3)(b), F.A.C. 27
28
4. An uncompensated person who provides to the board clerk at the time the petition is 29
filed, the taxpayer’s written authorization for such person to act on the taxpayer’s 30
behalf, may represent the taxpayer. This written authorization is valid only for 31
representing a single taxpayer in a single assessment year and must identify the 32
parcels or accounts for which the person is authorized to represent the taxpayer. A 33
taxpayer may use a Department of Revenue form to grant the authorization in writing 34
or may use a different form provided it meets the requirements of Section 194.034(1), 35
F.S. The Department has adopted Form DR-486A, titled Written Authorization for 36
Representation Before the Value Adjustment Board, which is incorporated by 37
reference in Rule 12D-16.002, F.A.C., as a form available to taxpayers for granting 38
the written authorization. See Rule 12D-9.018(3)(c), F.A.C. 39
40
The board clerk may require the use of an agent or representative number to facilitate 41
scheduling of hearings as long as such use is not inconsistent with this rule chapter. 42
See Rule 12D-9.018(4), F.A.C. 43
44
45
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Procedures for Scheduling Hearings 1
The Board clerk shall prepare a schedule of appearances before the Board or special 2
magistrates based on timely filed petitions. See Rule 12D-9.019(1)(a), F.A.C. 3
4
Under Rule 12D-9.019(1)(b), F.A.C., when scheduling hearings, the Board clerk shall 5
consider the following: 6
7
1. The petitioner’s anticipated amount of time if indicated on the petition; 8
9
2. The experience of the petitioner; 10
11
3. The complexity of the issues or the evidence to be presented; 12
13
4. The number of petitions/parcels to be heard at a sing le hearing; 14
15
5. The efficiency or difficulty for the petitioner of grouping multiple hearings for a single 16
petitioner on the same day; and 17
18
6. The likelihood of withdrawals, cancellations of hearings or failure to appear. 19
20
Upon request of a party, the Boar d clerk shall consult with the petitioner and the 21
property appraiser or tax collector to ensure that, within the Board clerk’s judgment, an 22
adequate amount of time is provided for presenting and considering evidence. See Rule 23
12D-9.019(1)(c), F.A.C. 24
25
Rule 12D-9.019(1)(d), F.A.C., provides that, in scheduling hearings before specific 26
special magistrates, the Board, Board attorney, and Board clerk shall not consider any 27
assessment reductions recommended by any special magistrate in the current year or 28
in any previous year. 29
30
Rule 12D-9.019(1)(e), F.A.C., provides that, in those counties that use special 31
magistrates, after an attorney special magistrate has produced a recommended 32
decision on a determination that a change of ownership under Section 193.155(3), F.S., 33
a change of ownership or control under Section 193.1554(5) or 193.1555(5), F.S., or a 34
qualifying improvement under Section 193.1555(5), F.S., has occurred, the petition shall 35
be scheduled for a hearing before a real property valuation special magis trate for an 36
administrative review of the value(s), unless the petitioner waives administrative review 37
of the value. The clerk must notify the petitioner and property appraiser of the scheduled 38
time in the manner described in Rule 12D-9.019, F.A.C. This hearing is subject to the 39
single time reschedule for good cause as provided in this rule section. In counties that 40
do not use special magistrates, the Board may proceed directly to a valuation hearing 41
where properly noticed as provided in this rule section. 42
43
For petitions related to valuation issues, no hearing shall be scheduled prior to 44
completion by the governing body of each taxing authority of the public hearing on the 45
tentative budget and proposed millage rate. See Rule 12D-9.019(2), F.A.C. 46
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1
Note: Legislation enacted in 2018, effective July 1, 2018, provides for administrative 2
reviews of denials of tax abatements for property damaged or destroyed by specific 3
hurricanes in either 2016 or 2017. Since such abatements involve calculations based on 4
specific information from these prior years, these administrative reviews are 5
retrospective and are not connected to the process referenced above in Rule 12D -6
9.019(2), F.A.C. Accordingly, the scheduling of hearings for administrative reviews on 7
denials of such tax abatements are not governed by dates of public hearings on 8
tentative budgets or proposed millage rates. See section 197.318(1)(e), F.S., created by 9
Chapter 2018-118, Sections 14 and 17, Laws of Florida (CS/HB 7087). 10
11
12
Procedures for Notifying the Parti es of the Scheduled Hearing 13
The Board clerk shall notify each petitioner of the scheduled time of appearance at the 14
hearing, and shall simultaneously notify the property appraiser or tax collector. See Rule 15
12D-9.019(1)(a), F.A.C. 16
17
* The Board clerk may electronically send this notification to the petitioner, if the 18
petitioner indicates on his or her petition this means of communication for receiving 19
notices, materials, and communications. See Rule 12D-9.019(1)(a), F.A.C. 20
21
The notice of hearing shall be in writing, and shall be delivered by regular or certified 22
U.S. mail or personal delivery, or in the manner requested by the petitioner on Form 23
DR-486. See Rule 12D-9.019(3)(a), F.A.C. 24
25
* The hearing notice shall be received by the p etitioner no less than twenty-five (25) 26
calendar days prior to the day of the scheduled appearance at the hearing. See Rule 27
12D-9.019(3)(a), F.A.C. 28
29
The form for the notice of hearing shall meet the requirements of the Department’s rules 30
and is subject to approval by the Department. See Rule 12D-9.019(3)(a), F.A.C. 31
32
* The Department provides Form DR-481 (Value Adjustment Board – Notice of 33
Hearing) as a format for the hearing notice. 34
35
* This form is available on the Department’s website at the following l ink: 36
http://floridarevenue.com/property/Pages/Forms.aspx 37
38
* A current and up-to-date form must be used. 39
40
Under Rule 12D-9.019(3)(b), F.A.C., the hearing notice shall include the following 41
elements: 42
43
1. The parcel number, account number or legal address of all properties being heard at 44
the scheduled hearing; 45
46
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2. The type of hearing scheduled; 1
2
3. The date and time of the scheduled hearing; however, if the petition has been 3
scheduled to be heard within a block of time, the beginning and ending of that block 4
of time shall be indicated on the notice; 5
6
4. The time reserved, or instructions on how to obtain this information; 7
8
5. The location of the hearing, including the hearing room number if known, together 9
with Board clerk contact information including office address and telephone number, 10
for petitioners to request assistance in finding hearing rooms; 11
12
6. Instructions on how to obtain a list of the potential special magistrates for the type of 13
petition in question; 14
15
7. A statement of the petitioner’s right to participate in the exchange of evidence with 16
the property appraiser; 17
18
8. A statement that the petitioner has the right to reschedule the hearing a single time 19
for good cause as defined in Section 194.032(2)(a), F.S.; 20
21
9. A statement that Section 194.032(2)(a), F.S., defines “good cause” as 22
circumstances beyond the control of the person seeking to reschedule the hearing 23
which reasonably prevent the party from having adequate representation at the 24
hearing; 25
26
10. Instructions on bringing copies of evidence; 27
28
11. Any information necessary to comply with federal or state disability or accessibility 29
acts; and 30
31
12. Information regarding where the petitioner may obtain a copy of the uniform rules 32
of procedure. 33
34
35
Procedures for Rescheduling Hearings 36
Rule 12D-9.019(4), F.A.C., provides that each party may reschedule the hearing a 37
single time for good cause by submitting a written request to the Board clerk before the 38
scheduled appearance or as soon as practicable. As used in this rule subsection, the 39
term “good cause” is defined in Section 194.032(2)(a), F.S. 40
41
Rule 12D-9.019(4) further provides the following: 42
43
• The Board clerk shall ascertain if the opposing party has been f urnished a copy of the 44
request, and if not, shall furnish the request to the opposing party. The Board clerk 45
shall promptly forward the reschedule request to the Board or a Board designee to 46
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make a determination as to good cause; for this determination, th e Board designee 1
includes the Board clerk, Board legal counsel, or a special magistrate. 2
3
• The Board or Board designee shall grant the hearing reschedule for any request that 4
qualifies under Section 194.032(2)(a), F.S. The Board or Board designee may act 5
upon the request based on its face and whether it meets the provisions for good 6
cause on its face. 7
8
• If the Board or a Board designee determines that the request does not show good 9
cause, the request will be denied and the Board may proceed with the hearing as 10
scheduled. 11
12
• If the Board or a Board designee determines that the request demonstrates good 13
cause, the request will be granted. 14
15
• Requests to reschedule shall be processed without delay and the processing shall be 16
accelerated where necessary to ensure, if possible, that the parties are provided 17
notice of the determination before the original hearing time. 18
19
• The Board clerk shall give prompt notice to the parties of the determination as to 20
good cause. Form DR-485WCN, Value Adjustment Board – Clerk’s Notice, is 21
designated and may be used for this purpose. Form DR -485WCN is adopted and 22
incorporated by reference in Rule 12D-16.002, F.A.C. 23
24
• If good cause is found, the clerk shall give immediate notice of cancellation of the 25
hearing and shall proceed as provided in paragraph (h). 26
27
• The clerk must receive any notice of conflict dates submitted by a party before notice 28
of a rescheduled hearing is sent to both parties or before expiration of any period 29
allowed by the clerk or Board to both parties for such submittal. 30
31
• The clerk must reschedule considering conflict dates received and should 32
accommodate a notice of conflict dates when any associated delay will not be 33
prejudicial to the Board’s performance of its functions in the taxing process. 34
35
• The Board clerk is responsible for notifying the parties of any rescheduling and will 36
issue a notice of hearing with the new hearing date which shall, if possible, be the 37
earliest date that is convenient for all parties. 38
39
• When rescheduling hearings under this rule, if the parties are unable to agree on an 40
earlier date, the Board clerk is authorized to schedule the hearing and send a notice 41
of such hearing by regular or certified U.S. mail or personal delivery, or in the manner 42
requested by the petitioner on the petition Form DR -486, so that the notice shall be 43
received by the petitioner no less than fifteen (15) calendar days prior to the day of 44
such scheduled appearance, unless this notice is waived by both parties. 45
46
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• The Board clerk is authorized to inquire if a party wants their evidence considered in 1
the event of their absence from the hearing. 2
3
• The clerk is authorized to ask the parties if they will waive the 15 days’ notice for 4
rescheduled hearings; however, the parties are not required to do so. 5
6
• A party must not assume the request to reschedule has been granted until notified by 7
the clerk. 8
9
Rule 12D-9.019(5), F.A.C., provides that if a hearing is rescheduled by a party, the 10
Board clerk must notify the petitioner of the rescheduled time in the manner referenced 11
in Rule 12D-9.019(3), F.A.C., so that the notice shall be received no less than fifteen 12
(15) calendar days prior to the day of such rescheduled appearance, unless this notice 13
is waived by both parties. 14
15
16
* Form DR-485WCN is designated by the Department and may be used for giving this 17
notice. 18
19
* This form is available on the Department’s website at the following link: 20
http://floridarevenue.com/property/Pages/Forms.aspx 21
22
* A current and up-to-date form must be used. 23
24
If a hearing is rescheduled, the deadlines for the exchange of evidence shall be 25
computed from the new hearing date, if time permits. See Rule 12D-9.019(6), F.A.C. 26
27
If a petitioner’s hearing does not commence as scheduled, the Board clerk is authorized 28
to reschedule a petition. See Rule 12D-9.019(7)(a), F.A.C. 29
30
* In no event shall a petitioner be required to wait more than a reasonable time after 31
the scheduled time to be heard or, if the petition has been scheduled to be heard 32
within a block of time, after the beginning of the block of time . A reasonable time 33
must not exceed two hours. See Rule 12D-9.019(7)(b), F.A.C. 34
35
* The Board clerk is authorized to find that a reasonable time , not to exceed two 36
hours, has elapsed based on other commitments, appointments, or hearings of the 37
petitioner, lateness in the day, and other hearings waiting to be heard earlier than 38
the petitioner’s hearing with the Board or special magistrate. See Rule 12D-39
9.019(7)(b), F.A.C. 40
41
* If his or her petition has not been heard within a reasonable time (not to exceed two 42
hours), the petitioner may request to be heard immediately. See Rule 12D-9.019(7)(b), 43
F.A.C. 44
45
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* If the Board clerk finds that a reasonable time has elapsed and petitioner is not 1
heard, the Board clerk shall reschedule the petitioner’s hearing. See Rule 12D-2
9.019(7)(b), F.A.C. 3
4
* A rescheduling of a hearing under Rule 12D-9.019(7), F.A.C., is not a request by a 5
party to reschedule a hearing for good cause under Rule 12D -9.019(4), F.A.C. See 6
Rule 12D-9.019(7)(c), F.A.C. 7
8
* A petitioner is not required to wait any length of time as a prerequisite to filing an 9
action in circuit court. See Rule 12D-9.019(7)(d), F.A.C. 10
11
More information on rescheduling hearings is contained in the following section titled 12
“Procedures for the Exchange of Evidence.” 13
14
15
Procedures for the Exchange of Evidence 16
Section 194.011(4)(a), F.S., and Rule 12D-9.020(1)(a)1., F.A.C., provide that, at least 17
fifteen (15) days before a petition hearing, the petitioner shall provide to the property 18
appraiser a list of evidence to be presented at the hearing , a summary of evidence to be 19
presented by witnesses, and copies of all documentation to be presented at the hearing. 20
21
* To calculate the fifteen (15) days, the petitioner shall use calendar days and shall 22
not include the day of the hearing in the calculation, and shall count backwards from 23
the day of the hearing. The last day of the period shall be included unless it is a 24
Saturday, Sunday, or legal holiday, in which event the period shall run until the end 25
of the next previous day that is neither a Saturday, Sunday, or legal holiday. See 26
Rule 12D-9.020(1)(a)2., F.A.C. 27
28
* The summary of evidence to be presented by witnesses for the petitioner shall be 29
sufficiently detailed as to reasonably inform a party of the general subject matter of 30
the witness’ testimony, and the name and address of the witness. See Rule 12D-31
9.020(5), F.A.C. 32
33
* However, Florida Statutes do not provide for exclusion of petitioner’s evidence or 34
other penalty for a case where a petitioner does not give evidence as provided in 35
section 194.011(4)(a), F.S. 36
37
* Article I, Section 18, of the Florida Constitution, prohibits the imposition of any 38
penalty except as provided by law. 39
40
* A petitioner’s noncompliance with section 194.011(4)(a), F.S., does not affect the 41
petitioner’s right to receive a copy of the current property record card from the 42
property appraiser as described in section 194.032(2)(a), F.S. See Rule 12D-43
9.020(1)(b), F.A.C. 44
45
* A petitioner’s noncompliance with Rule 12D-9.020(1)(a), F.A.C., does not authorize 46
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a Board or special magistrate to exclude the petitioner’s evidence. See Rule 12D-1
9.020(1)(c), F.A.C. 2
3
Thus, if a petitioner does not comply with section 194.011(4)(a), F.S., the petitioner may 4
still present evidence and the Board or the special magistrate may accept such 5
evidence for consideration, unless the provisions of 194.034(1)(h), F.S., apply. 6
7
Under section 194.034(1)(h), F.S., if the property appraiser asks in writing for specific 8
evidence before the hearing in connection with a filed petition and the petitioner has this 9
evidence and knowingly refuses to provide it to the property appraiser a reasonable 10
time before the hearing, the evidence ca nnot be presented by the petitioner or accepted 11
for consideration by the Board or special magistrate. See Rule 12D-9.025(1)(c), F.A.C. 12
13
* Reasonableness shall be determined by whether the material can be reviewed, 14
investigated, and responded to or rebutted in the time frame remaining before the 15
hearing. See Rule 12D-9.020(1)(c), F.A.C. 16
17
* These requirements are more specifically described in Rules 12D -9.020(8) and 12D-18
9.025(4)(a) and (f), F.A.C. 19
20
If the property appraiser receives the petitioner’s documen tation as described in Rule 21
12D-9.020 (1)(a), F.A.C., and if requested in writing by the petitioner, the property 22
appraiser shall, no later than seven (7) days before the hearing, provide to the petitioner 23
a list of evidence to be presented at the hearing, a summary of evidence to be 24
presented by witnesses, and copies of all documentation to be presented by the 25
property appraiser at the hearing. See Rule 12D-9.020(2)(a), F.A.C. 26
27
* There is no specific form or format required for the petitioner’s written re quest. See 28
Rule 12D-9.020(2)(a), F.A.C. 29
30
* The property appraiser’s evidence list must contain the current property record card. 31
See Rule 12D-9.020(2)(a), F.A.C. 32
33
* To calculate the seven (7) days, the property appraiser shall use calendar days and 34
shall not include the day of the hearing in the calculation, and shall count backwards 35
from the day of the hearing. The last day of the period so computed shall be 36
included unless it is a Saturday, Sunday, or legal holiday, in which event the period 37
shall run until the end of the next previous day which is neither a Saturday, Sunday, 38
or legal holiday. See Rule 12D-9.020(2)(b), F.A.C. 39
40
* The summary of evidence to be presented by witnesses for the property appraiser 41
shall be sufficiently detailed as to reasonably inform a party of the general subject 42
matter of the witness’ testimony, and the name and address of the witness. See Rule 43
12D-9.020(5), F.A.C. 44
45
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If the petitioner does not provide the information to the property appraiser at least fifteen 1
(15) days prior to the hearing as described in Rule 12D-9.020(1)(a), F.A.C., the property 2
appraiser need not provide the information to the petitioner as described in Rule 12D-3
9.020(2), F.A.C. See Rule 12D-9.020(3)(a), F.A.C. 4
5
If the property appraiser does not provide the information to the petitioner within the 6
time required by Rule 12D-9.020(2), F.A.C., the hearing shall be rescheduled to allow 7
the petitioner additional time to review the property appraiser’s evidence. See Rule 12D-8
9.020(3)(b), F.A.C. 9
10
By agreement of the parties, the evidence exchanged under Rule 12D -9.020, F.A.C., 11
shall be delivered by regular or certified U.S. mail, personal delivery, overni ght mail, fax 12
or email. See Rule 12D-9.020(4), F.A.C. 13
14
* The petitioner and property appraiser may agree to a different timing and method of 15
exchange. See Rule 12D-9.020(4), F.A.C. 16
17
* "Provided" means received by the party not later than the time frame p rovided in this 18
rule section. See Rule 12D-9.020(4), F.A.C. 19
20
* If either party does not designate a desired manner for receiving information in the 21
evidence exchange, the information shall be provided by U.S. mail. See Rule 12D-22
9.020(4), F.A.C. 23
24
* The property appraiser shall provide the information at the address listed on the 25
petition form for the petitioner. See Rule 12D-9.020(4), F.A.C. 26
27
A property appraiser shall not use at a hearing evidence that was not supplied to the 28
petitioner as required. See Rule 12D-9.020(7), F.A.C. 29
30
* The remedy for such noncompliance shall be a rescheduling of the hearing to allow 31
the petitioner an opportunity to review the information of the property appraiser. See 32
Rule 12D-9.020(7), F.A.C. 33
34
No petitioner may present for consideration, nor may a Board or special magistrate 35
accept for consideration, testimony or other evidentiary materials that were specifically 36
requested of the petitioner in writing by the property appraiser in connection with a filed 37
petition, of which the petitioner had knowledge and denied to the property appraiser. 38
See Rule 12D-9.020(8), F.A.C. 39
40
* Such evidentiary materials shall be considered timely if provided to the property 41
appraiser no later than fifteen (15) days bef ore the hearing in accordance with the 42
exchange of evidence rules in this section. See Rule 12D-9.020(8), F.A.C. 43
44
* If provided to the property appraiser less than fifteen (15) days before the hearing, 45
such materials shall be considered timely if the Board or special magistrate 46
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determines the materials were provided a reasonable time before the hearing, as 1
described in paragraph 12D-9.025(4)(f), F.A.C. See Rule 12D-9.020(8), F.A.C. 2
3
* A petitioner’s ability to introduce the evidence, requested of the petitioner in writing 4
by the property appraiser, is lost if not provided to the property appraiser as 5
described in Rule 12D-9.020(8), F.A.C. 6
7
* This provision does not preclude rebuttal evidence that was not specifically 8
requested of the petitioner by the property appraiser. See Rule 12D-9.020(8), F.A.C. 9
10
As the trier of fact, the Board or special magistrate may independent ly rule on the 11
admissibility and use of evidence. See Rule 12D-9.020(9), F.A.C. 12
13
* If the Board or special magistrate has any questions relating to the admissibility and 14
use of evidence, the Board or special magistrate should consult with the Board legal 15
counsel. See Rule 12D-9.020(9), F.A.C. 16
17
* The basis for any ruling on admissibility of evidence must be reflected in the record. 18
See Rule 12D-9.020(9), F.A.C. 19
20
21
Petitions Withdrawn, Settled, or Acknowledged as Correct 22
A petitioner may withdraw a petition prior to the scheduled hearing. See Rule 12D-23
9.021(1), F.A.C. 24
25
Form DR-485WI is prescribed by the Department for such purpose; however, other 26
written or electronic means may be used. See Rule 12D-9.021(1), F.A.C. 27
28
* This form is available on the Department’s website at the following link: 29
http://floridarevenue.com/property/Pages/Forms.aspx 30
31
* If the Department’s form is used, a current and up -to-date version of the form must 32
be used. 33
34
Under Rule 12D-9.021(1), F.A.C., Form DR-485WI shall indicate the reason for the 35
withdrawal as one of the following: 36
37
1. Petitioner agrees with the determination of the property appraiser or tax collector; 38
39
2. Petitioner and property appraiser or tax collector have reached a settlement of the 40
issues; 41
42
3. Petitioner does not agree with the decision or assessment of the property appraiser 43
or tax collector but no longer wishes to pursue a remedy through the value 44
adjustment board process; or 45
46
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4. Other specified reason. 1
2
The Board clerk shall cancel the hearing upon receiving a notice of withdrawal from the 3
petitioner and there shall be no further proceeding on the matter. See Rule 12D-9.021(2), 4
F.A.C. 5
6
If a property appraiser or tax collector agrees with a petition challenging a decision to 7
deny an exemption, classification, portability assessment difference transfer, or deferral, 8
the property appraiser or tax collector shall: 9
10
1. Issue the petitioner a notice granting said exemption, classification, portabi lity 11
assessment difference transfer, or deferral; and 12
13
2. File with the Board clerk a notice that the petition was acknowledged as correct. 14
15
* The Board clerk shall cancel the hearing upon receiving the notice of 16
acknowledgment and there shall be no furth er proceeding on the matter 17
acknowledged as correct. See Rule 12D-9.021(3), F.A.C. 18
19
If parties do not file a notice of withdrawal or notice of acknowledgment but indicate the 20
same at the hearing, the Board or special magistrate shall so state on the heari ng 21
record and shall not proceed with the hearing and shall not issue a decision. See Rule 22
12D-9.021(4), F.A.C. 23
24
* If a petition is withdrawn or acknowledged as correct under Rule 12D-9.021(1), (2), 25
or (3), F.A.C., or settlement is reached and filed by the parties, at any time before a 26
recommended decision or final Board decision is issued, the Board or special 27
magistrate need not issue such decision. See Rule 12D-9.021(4), F.A.C. 28
29
* The Board clerk shall list and report all withdrawals, settlements, ackno wledgments 30
of correctness as withdrawn or settled petitions. See Rule 12D-9.021(4), F.A.C. 31
32
* Settled petitions shall include those acknowledged as correct by the property 33
appraiser or tax collector. See Rule 12D-9.021(4), F.A.C. 34
35
For all withdrawn or settled petitions, a special magistrate shall not produce a 36
recommended decision and the Board shall not produce a final decision. See Rule 12D-37
9.021(5), F.A.C. 38
39
40
Non-Appearance and Summary Disposition of Petitions 41
NOTE: The procedures in this training section do not apply to hearings on portability 42
that are held in the county where the previous homestead was located when that county 43
is different from the county where the new homestead is located. See Rule 12D-44
9.028(6)(d), F.A.C. 45
46
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* In such cases, the petitioner is not required to appear at the hearing in the county 1
where the previous homestead was located. See Rule 12D-9.028(6)(d), F.A.C. 2
3
* See Module 10 for information on petitions on assessment difference transfers 4
(portability). 5
6
Except for portability hearings as described above, when a petitioner does not appear 7
by the commencement of a scheduled hearing and the petitioner has not indicated a 8
desire to have their petition heard without their attendance and a good cause request i s 9
not pending, the Board or the special magistrate shall: 10
11
1. Not commence or proceed with the hearing; and 12
13
2. Produce a decision or recommended decision as described below and in Rule 12D -14
9.021(8), F.A.C. See Rule 12D-9.021(6), F.A.C. 15
16
If the petitioner makes a good cause request before the decision or recommended 17
decision is issued, the Board or Board designee shall rule on the good cause request 18
before determining that: 19
20
1. The decision or recommended decision should be set aside and the hearing shoul d 21
be rescheduled; or 22
23
2. The Board or special magistrate should issue the decision or recommended 24
decision. See Rule 12D-9.021(6), F.A.C. 25
26
When a petitioner does not appear by the commencement of a scheduled hearing but a 27
good cause request is pending, the Board or Board designee shall rule on the good 28
cause request before determining that: 29
30
1. The hearing should be rescheduled; or 31
32
2. The Board or special magistrate should issue a decision or recommended decision. 33
See Rule 12D-9.021(7), F.A.C. 34
35
* If the Board or Board designee finds good cause for the petitioner’s failure to appear, 36
the Board clerk shall reschedule the hearing. See Rule 12D-9.021(7)(a), F.A.C. 37
38
* If the Board or Board designee does not find good cause for the petitioner’s failure to 39
appear, the Board or special magistrate shall issue a decision or recommended 40
decision. See Rule 12D-9.021(7)(b), F.A.C. 41
42
Decisions issued under Rule Subsections 12D-9.021(6) or (7), F.A.C., shall not be 43
treated as withdrawn or settled petitions and sh all contain: 44
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1. A finding of fact that the petitioner did not appear at the hearing and did not state 1
good cause; and 2
3
2. A conclusion of law that the relief is denied and the decision is being issued in order 4
that any right the petitioner may have to bring an action in circuit court is not 5
impaired. See Rule 12D-9.021(8), F.A.C. 6
7
8
Legislation Affecting Certain Board Petitio ns 9
Chapter 2011-181, Laws of Florida, effective June 21, 2011, requires a petitioner to: 10
11
* Pay non-ad valorem assessments and a specified amount of the taxes before the 12
later of April 1 or the delinquency date of the year after the taxes were assessed; 13
and 14
15
* Pay a penalty if the good faith payment is grossly disproportionate to the amount of 16
tax found to be due and the taxpayer's admission was not made in good faith. 17
18
See sections 194.014, 197.162, and 197.333, F.S. 19
20
Also, this legislation requires the value adjustment board to deny the petition in writing 21
by a certain date if the required amount of taxes is not timely paid. 22
23
Chapter 2016-128, Section 9, Laws of Florida, effective July 1, 2016, changes the 24
interest rate for disputed property tax assessme nts from 12 percent per year to an 25
annual percentage rate equal to the bank prime loan rate as the Board of Governors of 26
the Federal Reserve System determines on July 1 of the tax year or the next business 27
day if July 1 is a Saturday, Sunday, or legal holiday. Also, each taxing authority will 28
proportionately fund interest on an overpayment related to a petition. See Section 29
194.014(2), F.S. 30
31
32
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1
Module 4: 2
Procedures During the Hearing 3
4
Training Module 4 addresses the following topics: 5
• Disqualification or Recusal of Special Magistrates or Board Members 6
• Procedures for When One of the Parties Does Not Appear 7
• Procedures for Managing Time Needed for Hearings 8
• Procedures for Commencement of a Hearing 9
• General Procedures for Conducting a Hearing 10
• Procedures for Presentation of Evidence by the Parties 11
• Admissibility of Evidence 12
• The Higgs v. Good Case and Admissibility of Taxpayer Evidence 13
• Standard of Proof 14
• Procedures for Asking Questions During the Hearing 15
• Procedures for Collecting and Presenting Additional Evidence 16
• Procedures for Conducting a Hearing by Electronic Media 17
18
19
Learning Objectives 20
After completing this training module, the learner should be able to: 21
22
• Recognize the requirements and procedures for disqualification or recusal 23
• Identify and apply the procedures for when one of the parties does not appear 24
• Recognize and apply the procedures for managing time needed for hearings 25
• Identify and apply the procedures for commencement of a hearing 26
• Recognize and apply the general procedures for conducting a hearing 27
• Identify and apply the procedures for presentation of evidence by the parties 28
• Recognize the requirements and procedures for admissibility of evidence 29
• Identify the applicable standard of proof and how it applies 30
• Recognize and apply the procedures fo r asking questions during a hearing 31
• Identify and apply the procedures for collecting and presenting additional evidence 32
• Recognize the procedures for conducting a hearing by electronic media 33
34
35
Disqualification or Recusal of Special Magistrates or Board Members 36
Under Rule 12D-9.022, F.A.C., if either the petitioner or the property appraiser 37
communicates a reasonable belief that a special magistrate does not possess the 38
required statutory qualifications to conduct a particular proceeding, the basis f or that 39
belief shall be: 40
41
1. Included in the record of the proceeding; or 42
43
2. Submitted prior to the hearing in writing to the Board legal counsel. 44
45
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Upon review, if the Board or its legal counsel determines that the original special 1
magistrate does not meet the statutory requirements and qualifications, the Board or 2
legal counsel shall enter into the record an instruction to the Board clerk to reschedule 3
the petition before a different special magistrate to hear or rehear the petition without 4
considering actions that may have occurred during any previous hearing. See Rule 12D-5
9.022(2)(a), F.A.C. 6
7
Upon review, if the Board or its legal counsel determines that the special magistrate 8
does meet the statutory requirements and qualifications: 9
10
1. Such determination shall be issued in writing and placed in the record, and the 11
special magistrate will conduct the hearing; or 12
13
2. If a hearing was already held, the recommended decision will be forwarded to the 14
Board in accordance with the Department’s rules. See Rule 12D-9.022(2)(b), F.A.C. 15
16
Board members and special magistrates shall recuse themselves from hearing a 17
petition when they have a conflict of interest or an appearance of a conflict of interest. 18
See Rule 12D-9.022(3), F.A.C. 19
20
If either the petitioner or the property appraiser communicates a reasonable belief that a 21
Board member or special magistr ate has a bias, prejudice, or conflict of interest, the 22
basis for that belief shall be: 23
24
1. Stated in the record of the proceeding; or 25
26
2. Submitted prior to the hearing in writing to the Board legal counsel. See Rule 12D-27
9.022(4)(a), F.A.C. 28
29
If the Board member or special magistrate agrees with the basis stated in the record, 30
the Board member or special magistrate shall recuse himself or herself on the record. 31
See Rule 12D-9.022(4)(b), F.A.C. 32
33
* A special magistrate who recuses himself or herself shall close the hearing on the 34
record and notify the Board clerk of the recusal. See Rule 12D-9.022(4)(b), F.A.C. 35
36
* Upon a Board member’s recusal, the hearing shall go forward if there is a quorum. 37
See Rule 12D-9.022(4)(b), F.A.C. 38
39
* Upon a special magistrate’s recusal, or a Board member’s recusal that results in a 40
quorum not being present, the Board clerk shall reschedule the hearing. See Rule 41
12D-9.022(4)(b), F.A.C. 42
43
If the Board member or special ma gistrate questions the need for recusal, the Board 44
member or special magistrate shall request an immediate determination on the matter 45
from the Board’s legal counsel. See Rule 12D-9.022(4)(c), F.A.C. 46
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1
Upon review, if the Board legal counsel: 2
3
1. Determines that a recusal is necessary, the Board member or special magistrate 4
shall recuse himself or herself and the Board clerk shall reschedule the hearing; or 5
6
2. Is uncertain whether recusal is necessary, the Board member or special magistrate 7
shall recuse himself or herself and the Board clerk shall reschedule the hearing; or 8
9
3. Determines the recusal is unnecessary, the Board legal counsel shall set forth the 10
basis upon which the request was not based on sufficient facts or reasons. See Rule 11
12D-9.022(4)(d), F.A.C. 12
13
In a rescheduled hearing, the Board or special magistrate shall not consider any actions 14
that may have occurred during any previous hearing on the s ame petition. See Rule 15
12D-9.022(4)(e), F.A.C. 16
17
A rescheduling for disqualification or recusal shall not be treated as the one time 18
rescheduling to which a petitioner has a right upon timely request under Section 19
194.032(2), F.S. See Rule 12D-9.022(5), F.A.C. 20
21
22
Procedures for When One of the Parties Does Not Appear 23
If the petitioner does not appear by the commencement of a scheduled hearing, the 24
Board or special magistrate shall not commence the hearing and shall proceed under 25
the requirements set forth in Rule 12D-9.021(6), F.A.C. (see Module 3), unless: 26
27
1. The petition is on a “portability” assessment difference transfer in which the previous 28
homestead is the subject of the petition and is located in a county other than the 29
county where the new homestead is located (Rule 12D-9.028(6), F.A.C., provides 30
requirements specific to hearings on these petitions – see Module 10); or 31
32
2. The petitioner has indicated that he or she does not wish to appear at the hearing, 33
but would like for the Board or special magistrate to consider evidence submitted by 34
the petitioner. See Rule 12D-9.024(9)(a), F.A.C. 35
36
A petitioner who has indicated that he or she does not wish to appear at the hearing, but 37
would like for the Board or special magistrate to consider his or her evid ence, shall 38
submit his or her evidence to the Board clerk and property appraiser before the hearing. 39
See Rule 12D-9.024(9)(b), F.A.C. 40
41
* Then, the Board clerk shall: 42
43
1. Keep the petitioner’s evidence as part of the petition file; 44
45
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2. Notify the Board or special magistrate before or at the hearing that the petitioner 1
has indicated he or she will not appear at the hearing, but would like for the 2
Board or special magistrate to consider his or her evidence at the hearing; and 3
4
3. Give the evidence to the Board or special magistrate at the beginning of the 5
hearing. See Rule 12D-9.024(9)(b), F.A.C. 6
7
If the property appraiser or tax collector does not appear by the commencement of a 8
scheduled hearing, except a good cause hearing, the Board or special magistrate shall 9
state on the record that the property appraiser or tax collector did not appear at the 10
hearing. See Rule 12D-9.024(10), F.A.C. 11
12
* Then, the Board or special magistrate shall request the petitioner to state for the 13
record whether he or she wants to have the hearing rescheduled or wants to 14
proceed with the hearing without the property apprai ser or tax collector. See Rule 15
12D-9.024(10), F.A.C. 16
17
* If the petitioner elects to have the hearing rescheduled, the Board clerk shall 18
reschedule the hearing. See Rule 12D-9.024(10), F.A.C. 19
20
* If the petitioner elects to proceed with the hearing without the property appraiser or 21
tax collector, the Board or special magistrate shall proceed with the hearing and 22
shall produce a decision or recommended decision. See Rule 12D-9.024(10), F.A.C. 23
24
In any hearing conducted without one of the parties present, the Board or special 25
magistrate must take into consideration the inability of the opposing party to cross-26
examine the non-appearing party in determining the sufficiency of the evidence of the 27
non-appearing party. See Rule 12D-9.024(11), F.A.C. 28
29
30
Procedures for Managing Time Needed for Hearings 31
Boards and special magistrates shall adhere as closely as possible to the schedule of 32
hearings established by the Board clerk but must ensure that adequate time is allowed 33
for parties to present evidence and for the Board or special magistrate to consider the 34
admitted evidence. See Rule 12D-9.023(2), F.A.C. 35
36
* If the Board or special magistrate determines from the petition form that the hearing 37
has been scheduled for less time than the petitioner requested o n the petition, the 38
Board or special magistrate must consider whether the hearing should be extended 39
or continued to provide additional time. See Rule 12D-9.023(2), F.A.C. 40
41
Unless a Board or special magistrate determines that additional time is necessary, the 42
Board or special magistrate shall conclude all hearings at the end of the time scheduled 43
for the hearing. See Rule 12D-9.025(8), F.A.C. 44
45
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* If a hearing is not concluded by the end of the time scheduled, the Board or special 1
magistrate shall determine the amount of additional time needed to conclude the 2
hearing. See Rule 12D-9.025(8), F.A.C. 3
4
* If the Board or special magistrate determines that the amount of additional time 5
needed to conclude the hearing would not unreasonably disrupt other hearings, the 6
Board or special magistrate is authorized to proceed with conclusion of the hearing. 7
See Rule 12D-9.025(8)(a), F.A.C. 8
9
* If the Board or special magistrate determines that the amount of additional time 10
needed to conclude the hearing would unreasonably disrupt other hearings, the 11
Board or special magistrate shall so state on the record and shall notify the Board 12
clerk to reschedule the conclusion of the hearing as provided in Rule 12D -13
9.025(8)(b), F.A.C. 14
15
16
Procedures for Commencement of a Hearing 17
If all parties are present and the petition is not withdrawn or settled, a hearing on the 18
petition shall commence. See Rule 12D-9.024(1), F.A.C. 19
20
The hearing shall be open to the public. See Rule 12D-9.024(2), F.A.C. 21
22
Upon the request of either party, a special magistrate shall swear in all witnesses in that 23
proceeding on the record. 24
25
* Upon such request and if the witness has been sworn in during an earlier hearing, it 26
shall be sufficient for the special magistrate to remind the witness that he or she is 27
still under oath. See Rule 12D-9.024(3), F.A.C. 28
29
Before or at the start of the hearing, the Board, the Board’s designee , or the special 30
magistrate shall give a short overview verbally or in writing of the rules of pro cedure and 31
any administrative issues necessary to conduct the hearing. See Rule 12D-9.024(4), 32
F.A.C. 33
34
Rule 12D-9.024(5), F.A.C., requires that before or at the start of the hearing, unless 35
waived by the parties, the Board or special magistrate shall make an opening statement 36
or provide a brochure or taxpayer information sheet that: 37
38
1. States the Board or special magistrate is an independent, impartial, and unbiased 39
hearing body or officer, as applicable; 40
41
2. States the Board or special magistrate does not work for the property appraiser or 42
tax collector, is independent of the property appraiser or tax collector, and is not 43
influenced by the property appraiser or tax collector; 44
45
3. States the hearing will be conducted in an orderly, fair, and unbiased manner; 46
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1
4. States that the law does not allow the Board or special magistrate to review any 2
evidence unless it is presented on the record at the hearing or presented upon 3
agreement of the parties while the record is open; and 4
5
5. States that the law requires the Board or special magistrate to evaluate the 6
relevance and credibility of the evidence in deciding the results of the petition. 7
8
The Board or special magistrate shall ask the parties if they have any questions 9
regarding the verbal or written overview of the procedures for the hearing. See Rule 10
12D-9.024(6), F.A.C. 11
12
* The Board or special magistrate then addresses any questions from the parties. 13
14
15
General Procedures for Conducting a Hearing 16
After the opening statement, and clarification of any questions w ith the parties, the 17
Board or special magistrate shall proceed with the hearing. See Rule 12D-9.024(7), 18
F.A.C. 19
20
No evidence shall be considered by the Board or special magistrate except when 21
presented and admitted during the time scheduled for the petitioner’s hearing, or at a 22
time when the petitioner has been given reasonable notice. See Rule 12D-9.025(4)(a), 23
F.A.C. 24
25
Rule 12D-9.025(1), F.A.C., requires the Board or special magistrate to do the following 26
as part of administrative reviews: 27
28
1. Review the evidence presented by the parties; 29
30
2. Determine whether the evidence presented is admissible; 31
32
3. Admit the evidence that is admissible; 33
34
4. Identify the evidence presented to indicate that it is admitted or not admitted; and 35
36
5. Consider the admitted evidence. 37
38
Generally, the term “evidence” means something (including testimony, documents, and 39
tangible objects) that tends to prove or disprove the existence of a disputed fact. See 40
Black’s Law Dictionary, Eighth Edition, page 595. 41
42
The Board or special magistrate shall receive, identify for the record, and retain all 43
exhibits presented during the hearing and send them to the Board clerk along with the 44
recommended decision or final decision. See Rule 12D-9.025(7)(a), F.A.C. 45
46
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* Upon agreement of the parties, the Board clerk is authorized to make an electronic 1
representation of evidence that is difficult to store or maintain. See Rule 12D-2
9.025(7)(a), F.A.C. 3
4
The Board or special magistrate shall not be required to make, at any time during a 5
hearing, any oral or written finding, conclusion, decision, or reason for decision. See 6
Rule 12D-9.025(9), F.A.C. 7
8
* The Board or special magistrate has the discretion to determine whether to make 9
such determinations during a hearing or to consider the petition and evidence further 10
after the hearing and then make such determinations. See Rule 12D-9.025(9), F.A.C. 11
12
If at any point in a hearing or proceeding the petitioner withdraws the petition or the 13
parties agree to settlement, the petition becomes a withdrawn or settled petition and the 14
hearing or proceeding shall end. See Rule 12D-9.024(8), F.A.C. 15
16
* The Board or special magistrate shall state or note for the record that the petition is 17
withdrawn or settled, shall not proceed with the hearing, shall not consider the 18
petition, and shall not produce a decision or recommended decision. See Rule 12D-19
9.024(8), F.A.C. 20
21
Representatives of interested municipalities may be heard in hearings as provided in 22
Section 193.116, F.S. See Rule 12D-9.025(7)(c), F.A.C. 23
24
25
Procedures for Presentation of Evidence by the Parties 26
The property appraiser shall indicate for the record his or her determination of just 27
value, assessed value, classified use value, tax exemption, property classification, or 28
“portability” assessment difference; or, if applicable, the tax collector shall indicate for 29
the record his or her determination of the deferral or penalty. See Rule 12D-9.024(7), 30
F.A.C. 31
32
Under section 194.301(1), F.S., in a hearing on just, classified use, or assessed value, 33
the first issue to be considered is whether the property appraiser establishes a 34
presumption of correctness for the assessment. See Rule 12D-9.024(7), F.A.C. 35
36
* The property appraiser shall present evidence on this issue first. See Rule 12D-37
9.024(7), F.A.C. 38
39
Under Rule 12D-9.025(3)(a), F.A.C., in a Board or special magistrate hearing: 40
41
* The property appraiser or tax collector is responsible for presenting relevant and 42
credible evidence in support of his or her determination; and 43
44
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* The petitioner is responsible for presenting relevant and credible evidence in support 1
of his or her belief that the property appraiser’s or tax collector’s determination is 2
incorrect. 3
4
Florida Statutes do not provide for exclusion of petitioner’s evidence or other penalty for 5
a case where a petitioner does not give evidence as provided in section 194.011(4)(a), 6
F.S. 7
8
* If a petitioner does not comply with section 194.011(4)(a), F.S., the petitioner may 9
still present the evidence for consideration by the Board or special magistrate. 10
11
However, if the property appraiser asks in writing for specific evidence before the 12
hearing in connection with a filed petition, and the petitioner has this evidence and 13
refuses to provide it to the property appraiser, the evidence cannot be presented by the 14
petitioner or accepted for consideration by the Board or special magistrate. See Rule 15
12D-9.025(4)(a), F.A.C. 16
17
* These requirements are more specifically described in Rule 12D -9.025(4)(f), F.A.C., 18
as presented below. 19
20
If a party submits evidence to the Board clerk prior to the hearing, the Board or special 21
magistrate shall not review or consider such evidence prior to the hearing. See Rule 22
12D-9.025(4)(b), F.A.C. 23
24
* In order to be reviewed by the Board or special magis trate, any evidence filed with 25
the Board clerk shall be brought to the hearing by the party. See Rule 12D-26
9.025(4)(c), F.A.C. 27
28
* However, under Rule 12D-9.025(4)(c), F.A.C., the requirement for a petitioner to 29
bring this evidence to the hearing shall not apply where: 30
31
1. A petitioner does not appear at a hearing on a “portability” assessment difference 32
transfer petition in which the previous homestead is the subject of the petition 33
and is located in a county other than the county where the new homestead is 34
located (Rule 12D-9.028(6), F.A.C., provides requirements specific to hearings 35
on these petitions – see Module 10); or 36
37
2. A petitioner has indicated that he or she does not wish to appear at the hearing 38
but would like for the Board or special magistrate to consider evidence submitted 39
by the petitioner. 40
41
A petitioner who has indicated that he or she does not wish to appear at the hearing, but 42
would like for the Board or special magistrate to consider his or her evidence, shall 43
submit his or her evidence to the Board clerk before the hearing. See Rule 12D-44
9.025(4)(d), F.A.C. 45
46
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* Under Rule 12D-9.025(4)(d), F.A.C., when this occurs, the Board clerk shall do each 1
of the following: 2
3
1. Keep the petitioner’s evidence as part of the petition file; 4
5
2. Notify the Board or special magistrate before or at the hearing that the petitioner 6
has indicated he or she will not appear at the hearing, but would like for the 7
Board or special magistrate to consider his or her evidence at the hearing; and 8
9
3. Give the evidence to the Board or special magistrate at the beginning of the 10
hearing. 11
12
The Board clerk may provide an electronic system for the filing and retrieval of evidence 13
for the convenience of the parties, but such evidence shall not be considered part of the 14
record and shall not be reviewed by the Board or special magistrate until presented at a 15
hearing. See Rule 12D-9.025(4)(e), F.A.C. 16
17
* Any exchange of evidence should occur between the parties and such evidence is 18
not part of the record until presented by the offe ring party and deemed admissible at 19
the hearing. See Rule 12D-9.025(4)(e), F.A.C. 20
21
A property appraiser shall not present undisclosed evidence that was not supplied to the 22
petitioner as required under the evidence exchange rule (Rule 12D -9.020, F.A.C.). See 23
Rule 12D-9.025(4)(f)2., F.A.C. 24
25
* The remedy for such noncompliance shall be a rescheduling of the hearing to allow 26
the petitioner an opportunity to review the information of the property appraiser. See 27
Rule 12D-9.025(4)(f)2., F.A.C. 28
29
No petitioner shall present for consideration, nor shall the Board or special magistrate 30
accept for consideration, testimony or other evidentiary materials that were specifically 31
requested of the petitioner in writing by the property appraiser in connectio n with a filed 32
petition, of which the petitioner had knowledge and denied to the property appraiser. 33
See Rule 12D-9.025(4)(f)1., F.A.C. 34
35
* Under Rule 12D-9.025(4)(f)1., F.A.C., these evidentiary materials shall be 36
considered timely under either of the following two conditions: 37
38
1. If the evidentiary materials were provided to the property appraiser no later than 39
fifteen (15) days before the hearing in accordance with the exchange of evidence 40
rules in Rule 12D-9.020, F.A.C.; or 41
42
2. If provided to the property appraiser less than fifteen (15) days before the 43
hearing, but the Board or special magistrate determines that the evidentiary 44
materials were provided a reasonable time before the hearing. 45
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* For purposes of Rules 12D-9.020 and 12D-9.025, F.A.C., reasonableness shall be 1
assumed if the property appraiser does not object. See Rule 12D-9.025(4)(f)1., F.A.C. 2
3
* Otherwise, reasonableness shall be determined by whether the material can be 4
reviewed, investigated, and responded to or rebutted in the time frame remaining 5
before the hearing. See Rule 12D-9.025(4)(f)1., F.A.C. 6
7
* If a petitioner has acted in good faith and not denied evidence to the property 8
appraiser prior to the hearing, as provided by Section 194.034(1)(h), F.S., but 9
wishes to submit evidence at the hearing which is of a nature that would require 10
investigation or verification by the property appraiser, then the special magistrate 11
may allow the hearing to be recessed and, if necessary, rescheduled so that th e 12
property appraiser may review such evidence. See Rule 12D-9.025(4)(f)1., F.A.C. 13
14
* A petitioner’s ability to introduce the evidence, requested of the petitioner in writing 15
by the property appraiser, is lost if the requested evidence is not provided to t he 16
property appraiser as described in Rule 12D-9.025(4)(f), F.A.C. 17
18
* This provision does not preclude the presentation and consideration of rebuttal 19
evidence that the property appraiser did not specifically request from the petitioner. 20
See Rule 12D-9.025(4)(f)1., F.A.C. 21
22
Examples of Taxpayer’s Rebuttal Evidence 23
Below are three examples of a taxpayer’s rebuttal evidence. These examples are 24
intended to assist Boards and special magistrates in determining, when necessary, 25
whether presented evidence qualifies as rebuttal evidence in particular cases. 26
27
Rebuttal Evidence: Example 1 28
The taxpayer initiates an evidence exchange with the property appraiser. 29
30
The taxpayer first provides his or her evidence to the property appraiser and the 31
property appraiser then provides his or her evidence to the taxpayer. 32
33
After reviewing the property appraiser’s evidence and learning of which comparable 34
sales the property appraiser plans to present as evidence, the taxpayer sees that the 35
property appraiser did not include photographs of the comparable sale properties. 36
37
After the exchange of evidence but before the hearing, the taxpayer physically views 38
and takes photographs of each of the property appraiser’s comparable sale properties 39
and, at the hearing, presents these photographs solely as rebuttal evidence. 40
41
These photographs can only be rebuttal evidence since the taxpayer had no knowledge 42
prior to the evidence exchange of which comparable sales the property appraiser 43
intended to present as evidence. 44
45
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These photographs are relevant because they show evidence of property condition 1
under subsection 193.011(6), F.S. 2
3
Rebuttal Evidence: Example 2 4
The taxpayer initiates an evidence exchange with the property appraiser. 5
6
The taxpayer provides his or her evidence to the property appraiser and the property 7
appraiser provides his or her evidence to the taxpayer. 8
9
After reviewing the property appraiser’s evidence and learning of which comparable 10
rental properties the property appraiser plans to present as evidence, the taxpayer sees 11
that the property appraiser did not include a map showing the location of the 12
comparable rental properties relative to the location of the subject property. 13
14
After the exchange of evidence but before the hearing, the taxpayer produces a location 15
map showing the comparables and the subject property and, at the hearing, presents 16
this location map solely as rebuttal evidence. 17
18
This map can only be rebuttal evidence since the taxpayer had no knowledge prior to 19
the evidence exchange of which comparable rentals the property appraiser intended to 20
present as evidence. 21
22
The taxpayer’s map is relevant because it relates to property location and income, two 23
of the eight factors under section 193.011, F.S. 24
25
Rebuttal Evidence: Example 3 26
The taxpayer initiates an evidence exchange with the property appraiser. 27
28
The taxpayer provides his or her evidence to the property appraiser and the property 29
appraiser provides his or her evidence to the taxpayer. 30
31
After reviewing the property appraiser’s evidence, the taxpayer sees that the property 32
appraiser’s evidence shows incorrect zoning for the subject property. 33
34
After the exchange of evidence but before the hearing, the taxpayer obtains 35
documentation from the local zoning authority showing the correct zoning and, at the 36
hearing, presents this documentation solely as re buttal evidence. 37
38
This documentation can only be rebuttal evidence since the taxpayer had no knowledge 39
prior to the evidence exchange that the property appraiser’s evidence contained 40
incorrect zoning information. 41
42
The taxpayer’s zoning documentation is relevant because it relates to subsection 43
193.011(2), F.S. 44
45
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Admissibility of Evidence 1
In administrative reviews of assessments, the term “admitted evidence” means 2
evidence that has been admitted into the record for consideration by the Bo ard or 3
special magistrate. See Rule 12D-9.025(2)(a), F.A.C. 4
5
Generally, “relevant evidence” is evidence that is reasonably related, directly or 6
indirectly, to the statutory criteria that apply to the issue under review. See Rule 12D-7
9.025(2)(b), F.A.C. 8
9
* This description means the evidence meets or exceeds a minimum level of 10
relevance necessary to be admitted for consideration, but does not necessarily 11
mean that the evidence has sufficient relevance to legally justify a particular 12
conclusion. See Rule 12D-9.025(2)(b), F.A.C. 13
14
Rebuttal evidence is relevant evidence used solely to disprove or contradict the original 15
evidence presented by an opposing party. See Rule 12D-9.025(2)(c), F.A.C. 16
17
NOTE: More information on the relevance of evidence is presented i n Modules 6, 8, 9, 18
and 11. 19
20
As the trier of fact, the Board or special magistrate may independently rule on the 21
admissibility and use of evidence. See Rule 12D-9.025(2)(d), F.A.C. 22
23
* If the Board or special magistrate has any questions relating to the adm issibility and 24
use of evidence, the Board or special magistrate should consult with the Board legal 25
counsel. See Rule 12D-9.025(2)(d), F.A.C. 26
27
* The basis for any ruling on admissibility of evidence must be reflected in the record. 28
See Rule 12D-9.025(2)(d), F.A.C. 29
30
* The special magistrate may delay ruling on the question during the hearing and 31
consult with Board legal counsel after the hearing. See Rule 12D-9.025(2)(d), F.A.C. 32
33
The Board is a quasi-judicial body and special magistrates are quasi-judicial officers. 34
See Redford v. Department of Revenue, 478 So.2d 808 (Fla. 1985) and Subsection 195.027(3), 35
Florida Statutes. Also, see Rodriguez v. Tax Adjustment Experts of Florida, Inc., 551 So.2d 537 36
(Fla. 3d DCA 1989). 37
38
* “Quasi-judicial proceedings are not controlled by strict rules of evidence and 39
procedure.” See Jennings v. Dade County, 589 So.2d 1337 (Fla. 3d DCA 1991). Also, see 40
Ehrhardt’s Florida Evidence, 2008 Edition (Eagan, MN: Thomson West, 2008), page 5. 41
42
Board and special magistrate proceedings are not controlled by strict rules of evidence 43
and procedure. See Rule 12D-9.025(2)(a), F.A.C. 44
45
* Formal rules of evidence shall not apply, but fundamental due process shall be 46
observed and shall govern the proceedings. See Rule 12D-9.025(2)(a), F.A.C. 47
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1
Boards and special magistrates must not apply strict standards of relevance or 2
materiality in deciding whether to admit evidence into the record. Any decisions to 3
exclude evidence must not be arbitrary or unreasonable. 4
5
A bulletin from the Department regarding Board hearings and confidentiality is PTO 6
Bulletin 10-07, which is available on the Department’s website at: 7
8
Bulletin: PTO 10-07 9
10
The Higgs v. Good Case and Admissibility of Taxpayer Eviden ce 11
In the past, there have been questions on whether the Florida appellate court decision 12
of Higgs v. Good, 813 So.2d 178 (Fla. 3d DCA 2002), applies in Board proceedings 13
under Chapter 194, Part I, F.S. 14
15
* The Higgs court disallowed the consideration of a taxpayer’s property income data in 16
a circuit court lawsuit because the taxpayer did not provide the data when requested 17
by the property appraiser in the appraisal development process under section 18
195.027(3), F.S., and Rule 12D-1.005, F.A.C. 19
20
* For reasons described below, the appellate court’s holding in Higgs case applied to 21
a judicial review in circuit court under Chapter 194, Part II, F.S., and not to a quasi -22
judicial, administrative review under Chapter 194, Part I, F.S. 23
24
The Higgs case involved a property appraiser’s request, under section 195.027(3), F.S., 25
for financial records from the taxpayer in April of the tax year for the purpose of 26
assessment roll development. 27
28
* This request for information from the taxpayer was not made in connection with a 29
Board petition under section 194.034(1)(h), F.S. 30
31
The issue of whether necessary financial records are admissible in a Board proceeding 32
is not governed by section 195.027(3), F.S., or by Rule 12D-1.005, F.A.C., but rather is 33
governed by section 194.034(1)(h), F.S. 34
35
No statute authorizes the imposition of a penalty (exclusion of taxpayer evidence) in a 36
value adjustment board proceeding in a case where a property taxpayer does not 37
provide the financial records of non-homestead property that is referenced in section 38
195.027(3), F.S. 39
40
A state agency cannot create a penalty not authorized by statute. Section 18, Article I 41
(titled “Declaration of Rights”) of the Florida Constitution states: 42
43
“Administrative penalties.— No administrative agency, except the 44
Department of Military Affairs in an appropriately convened court-martial action 45
as provided by law, shall impose a sentence of imprisonment, nor shall it 46
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impose any other penalty except as provided by law.” [underlined emphasis 1
added] 2
3
* Therefore, the Department’s rules for Board proceedings cannot create a penalty 4
(exclusion of taxpayer evidence) that is not specifically authorized by statute. 5
6
* Likewise, a Board or special magistrate cannot impose a penalty that is not 7
specifically authorized by statute. 8
9
* There is no statute or rule authorizing a Board or special magistrate to order the 10
exclusion, based on the Higgs decision, of relevant and otherwise admissible 11
evidence. 12
13
The Department’s rules in Chapter 12D-9, F.A.C., are part of the implementation of 14
2008 legislation from Chapter 2008 -197, Laws of Florida, which directs the Department 15
to develop a uniform policies and procedures manual for use by Boards. 16
17
* Since there is no legislative authority to implement the Higgs case in rules on 18
administrative review, Chapter 12D-9, F.A.C., does not incorporate the Higgs case. 19
20
If a taxpayer complies with section 194.034(1)(h), F.S., otherwise admissible property 21
income data not provided by the taxpayer when requested during the appraisal 22
development process may still be accepted for consideration in a Board petition. 23
24
There are two statutory provisions by which a property appraiser can request relevant 25
assessment information from a property taxpayer, as described following. 26
27
1. The first of these provisions is found in section 195.027(3), F.S., which provides that 28
the property appraiser can request financial records reasonably necessary to the 29
classification or valuation of non-homestead property. 30
31
* The rule implementing this statute is 12D-1.005, F.A.C. 32
33
* This first provision applies to the process of developing property appraisals and 34
does not refer or apply to the administrative review of those appraisals. 35
36
* Section 195.027(3), F.S., contains no penalty for a case where a property 37
taxpayer does not provide such financial records when requested by the property 38
appraiser in the appraisal development process. 39
40
* The Higgs case specifically involved a request for taxpayer records under section 41
195.027(3), F.S. 42
43
2. The second of these statutory provisions is found in section 194.034(1)(h), F.S., 44
which provides that no petitioner may present, nor may a board or special magistrate 45
accept for consideration, testimony or other evidentiary materials that were 46
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specifically requested of the petitioner in writing by the property appraiser in 1
connection with a filed petition, of which the petitioner had knowledge and denied to 2
the property appraiser. 3
4
* This second provision applies to the administrative review of assessments. 5
6
* Section 194.034(1)(h), F.S., does provide a penalty (exclusion of evidence) for a 7
case where a property taxpayer does not provide the appropriate evidence when 8
requested in writing by the property appr aiser in connection with a filed Board 9
petition. 10
11
* The Higgs case did not involve the process provided in section 194.034(1)(h), 12
F.S. 13
14
Since there is a separate statutory process for requesting and exchanging evidence in 15
connection with a filed Board petition, until an appellate court or the Legislature 16
expressly applies the Higgs decision in the context of the Board’s statutory process, the 17
Higgs decision does not apply in Board proceedings. 18
19
In the Higgs decision, since the court was not reviewing an administrative proceeding, 20
the court’s references to administrative review are not part of the holding in the case. 21
22
* The references apparently originated from the form used by the property appraiser 23
to request necessary financial records from property owners. 24
25
* The Higgs decision’s gratuitous reference to “administrative” is obiter dictum. See 26
Doherty v. Brown, 14 So. 3d 1266, 1267 (Fla. 1st DCA 2009), stating: “[A] purely gratuitous 27
observation or remark made in pronouncing an opinion and which concerns some rule, 28
principle, or application of law not necessarily involved in the case or essential to its 29
determination is obiter dictum, pure and simple.” 30
31
* The case of Higgs v. Good does not apply to Board proceedings (administrative 32
reviews). 33
34
35
Standard of Proof 36
In administrative reviews, Boards or special magistrates must consider admitted 37
evidence and then compare the weight of the evide nce to a “standard of proof” to make 38
a determination on an issue under review. 39
“Standard of proof” means the level of proof needed by the Board or special magistrate 40
to reach a particular conclusion. See Rule 12D-9.027(5), F.A.C. 41
42
Under section 194.301, F.S., “preponderance of the evidence” is the standard of proof 43
that applies in assessment challenges. See Rule 12D-9.025(3)(b), F.A.C. 44
45
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* The “clear and convincing evidence” standard of proof no longer applies, starting 1
with 2009 assessments. See Rule 12D-9.025(3)(b), F.A.C. 2
3
* A taxpayer shall never have the burden of proving that the property appraiser’s 4
assessment is not supported by any reasonable hypothesis of a legal assessment. 5
See Rule 12D-9.025(3)(b), F.A.C. 6
7
NOTE: More information on standard of proof and how to apply it in administrative 8
reviews is presented in Modules 6, 8, and 9. 9
10
11
Procedures for Asking Questions During the Hearing 12
When testimony is presented at a hearing, each party shall have the right to ask 13
questions of any witness. See Rule 12D-9.025(5), F.A.C. 14
15
The Board or special magistrate shall have the authority, at a hearing, to ask questions 16
at any time of either party, the witnesses, or Board staff. See Rule 12D-9.025(7)(b), F.A.C. 17
18
* When asking questions, the Board or special magistrate shall not show bias for or 19
against any party or witness. See Rule 12D-9.025(7)(b), F.A.C. 20
21
* The Board or special magistrate shall limit the content of any question asked of a 22
party or witness to matters reasonably related, directly or indirectly, to matters 23
already in the record. See Rule 12D-9.025(7)(b), F.A.C. 24
25
In particular, the Board or special magistrate should ask any question s that are 26
necessary to help the Board or special magistrate meet their duty of determining 27
whether applicable statutory criteria have been satisfied. 28
29
30
Procedures for Collecting and Presenting Additional Evidence 31
By agreement of the parties entered in the record, the Board or special magistrate may 32
leave the record open and postpone completion of the hearing to a date certain to allow 33
a party to collect and provide additional relevant and credible evidence. See Rule 12D-34
9.025(6)(a), F.A.C. 35
36
* Such postponements shall be limited to instances where, after completing original 37
presentations of evidence, the parties agree to the collection and submittal of 38
additional, specific factual evidence for consideration by the Board or special 39
magistrate. See Rule 12D-9.025(6)(a), F.A.C. 40
41
* In lieu of completing the hearing, upon agreement of the parties the Board or special 42
magistrate is authorized to consider such evidence without further hearing. See Rule 43
12D-9.025(6)(a), F.A.C. 44
45
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If additional hearing time is necessary, the hearing must be completed at the date, 1
place, and time agreed upon for presenting the additional evidence to the Board or 2
special magistrate for consideration. See Rule 12D-9.025(6)(b), F.A.C. 3
4
Rule 12D-9.025(6)(c), F.A.C., provides that the following limitations shall apply if the 5
property appraiser seeks to present additional evidence that was unexpectedly 6
discovered and that would increase the assessment. 7
8
1. The Board or special magistrate shall ensure that such additional evidence is limited 9
to a correction of a factual error discovered in the physical attributes of the petitioned 10
property; a change in the property appraiser’s judgment is not such a correction and 11
shall not justify an increase in the assessment. 12
13
2. A notice of revised proposed assessment shall be made and provided to the 14
petitioner in accordance with the notice provisions set out in Florida Statutes for 15
notices of proposed property taxes. 16
17
3. Along with the notice of revised proposed assessment, the property appraiser shall 18
provide to the petitioner a copy of the revised property record card containing 19
information relevant to the computation of the revised proposed assessment, with 20
confidential information redacted. The property appraiser shall provid e such revised 21
property record card to the petitioner either by sending it to the petitioner or by 22
notifying the petitioner how to obtain it online. 23
24
4. A new hearing shall be scheduled and notice of the hearing shall be sent to the 25
petitioner. 26
27
5. The evidence exchange procedures in Rule 12D-9.020, F.A.C., shall be available. 28
29
6. The back assessment procedure in section 193.092, F.S., shall be used for any 30
assessment already certified. 31
32
33
Procedures for Conducting a Hearing by Electronic Media 34
Hearings conducted by electronic media shall occur only under the conditions set forth 35
in Rule 12D-9.026, F.A.C. 36
37
* Hearings conducted by electronic media are subject to Board approval and the 38
availability of the necessary equipment and procedures. See Rule 12D-9.026(1)(a), 39
F.A.C. 40
41
* The special magistrate, if one is used, must agree in each case to the electronic 42
hearing. See Rule 12D-9.026(1)(b), F.A.C. 43
44
* The Board must reasonably accommodate parties that have hardship or lack 45
necessary equipment or ability to access equipment. See Rule 12D-9.026(1)(c), F.A.C. 46
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1
* The Board must provide a physical location at which a party may appear, if 2
requested. See Rule 12D-9.026(1)(c), F.A.C. 3
4
For any hearing conducted by electronic media, the Board shall ensure that all 5
equipment is adequate and functional for allowing clear communication among the 6
participants and for creating the hearing records required by law. 7
8
* The Board procedures shall specify the time period within which a party must 9
request to appear at a hearing b y electronic media. See Rule 12D-9.026(2), F.A.C. 10
11
Consistent with Board equipment and procedures: 12
13
* Any party may request to appear at a hearing before a Board or special magistrate, 14
using telephonic or other electronic media. See Rule 12D-9.026(3)(a), F.A.C. 15
16
* However, unless required by other provisions of state or federal law, the Board 17
clerk need not comply with such a request if such telephonic or electronic media 18
are not reasonably available. See Rule 12D-9.026(3)(a), F.A.C. 19
20
* If the Board or special magistrate allows a party to appear by telephone, all 21
members of the Board in the hearing or the special magistrate must be physically 22
present in the hearing room. See Rule 12D-9.026(3)(a), F.A.C. 23
24
* The parties must also all agree on the methods for swearing witnesses, presenting 25
evidence, and placing testimony on the record. Such methods must comp ly with the 26
provisions of this rule chapter. See Rule 12D-9.026(3)(b), F.A.C. 27
28
* The agreement of the parties must include which parties must appear by telephonic 29
or other electronic media and which parties will be present in the hearing room. See 30
Rule 12D-9.026(3)(b), F.A.C. 31
32
Hearings conducted by electronic media must be open to the public either by providing 33
the ability for interested members of the public to join the hearing electronically or to 34
monitor the hearing at the location of the Board or spec ial magistrate. See Rule 12D-35
9.026(4), F.A.C. 36
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1
Module 5: 2
Procedures After the Hearing 3
4
5
Training Module 5 addresses the following topics: 6
• Procedures for Remanding Value Assessments to the Property Appraiser 7
• Procedures for Recommended Decisions by Special Magistrates 8
• Procedures for Consideration and Adoption of Recommended Decisions by Boards 9
• Procedures for Final Decisions by Boards 10
• Further Judicial Proceedings 11
• Requirements for the Record of the Hearing 12
• Requirements for Certification of Assessment Rolls 13
• Requirements for Public Notice of Findings and Results of the Board 14
15
16
Learning Objectives 17
After completing this training module, the learner should be able to: 18
19
• Identify and apply the procedures for remanding value assessments 20
• Recognize the procedures and requirements for recommended decisions 21
• Identify and apply the procedures for consideration and adoption of recommended 22
decisions 23
• Recognize the procedures and requirements for final decisions 24
• Identify and apply the requirements for the record of the hearing 25
• Recognize the requirements and procedures for certification of assessment rolls 26
• Identify the requirements for public notice of findings and results of the Board 27
28
29
Procedures for Remanding Value Assessments to the Property 30
Appraiser 31
In this training, the term “remand” means to send the assessment back to the property 32
appraiser with appropriate directions for establishing the value of the petitioned 33
property. 34
35
Rules 12D-9.029(1) and 12D-9.027(2) and (3), F.A.C., require the Board or appraiser 36
special magistrate to remand a value assessment to the property appraiser when the 37
Board or special magistrate has concluded that: 38
39
1. The property appraiser did not establish a presumption of correctness, or has 40
concluded that the property appraiser established a presumption of correctness that 41
is overcome, as provided in Rule 12D-9.027, F.A.C.; and 42
43
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2. The record does not contain the competent substantial evidence necessary for the 1
Board or special magistrate to establish a revised just value, classified use value, or 2
assessed value, as applicable. 3
4
An attorney special magistrate shall remand an assessment to the property appraiser 5
for a classified use valuation when the special magistrate has concluded that a property 6
classification will be granted. See Rule 12D-9.029(2), F.A.C. 7
8
In a petition heard by the Board, Rule 12D-9.029(3), F.A.C., requires the Board to 9
remand an assessment to the property appraiser for a classified use valuation when the 10
Board: 11
12
1. Has concluded that a property classification will be granted; and 13
14
2. Has concluded that the record does not contain the competent substantial evidence 15
necessary for the Board to establish classified use value. 16
17
For remanding an assessment to the property appraiser, the Board or special 18
magistrate shall produce a written remand decision that shall include appropriate 19
directions to the property appraiser. See Rule 12D-9.029(6), F.A.C. 20
21
Rule 12D-9.029(4), F.A.C., provides that the Board or special magistrate shall produce 22
written findings of fact and conclusions of law necessary to determine that a remand is 23
required, but shall not render a recommended or final decision until after a continuation 24
hearing is held or waived as provided in Rule 12D-9.029(9), F.A.C. 25
26
* For producing these findings and conclusions and remanding an assessment, the 27
Board or special magistrate is required to use Form DR-485R. See Rule 12D-28
9.029(4), F.A.C. 29
30
* The Form DR-485R is available on the Department’s website at the following link: 31
http://floridarevenue.com/property/Pages/Forms.aspx 32
33
* Boards and special magistrates are required to use current and up-to-date forms. 34
35
When an attorney special magistrate remands an assessment to the property appraiser 36
for classified use valuation, an appraiser special magistrate retains authority to produce 37
a recommended decision in accordance with law. See Rule 12D-9.029(5), F.A.C. 38
39
When an appraiser special magistrate remands an assessment to the property 40
appraiser, the special magistrate retains authority to produce a recommended decision 41
in accordance with law. See Rule 12D-9.029(5), F.A.C. 42
43
When the Board remands an assessment to the property appraiser, the Board retains 44
authority to make a final decision on the petition in accordance with law. See Rule 12D-45
9.029(5), F.A.C. 46
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1
The Board clerk shall concurrently provide, to the petitioner and the property appraiser, 2
a copy of the written remand decision from the Board or special magistrate. See Rule 3
12D-9.029(7), F.A.C. 4
5
* The petitioner’s copy of the written remand decision shall be sent by regular or 6
certified U.S. mail, or by personal delivery, or in the manner r equested by the 7
taxpayer on the petition. See Rule 12D-9.029(7), F.A.C. 8
9
After receiving a Board or special magistrate’s remand decision from the Board clerk, 10
the property appraiser shall follow the appropriate directions from the Board or special 11
magistrate and shall produce a written remand review. See Rule 12D-9.029(8)(a), F.A.C. 12
13
* The property appraiser or his or her staff shall not have, directly or indirectly, any ex 14
parte communication with the Board or special magistrate regarding the remanded 15
assessment. See Rule 12D-9.029(8)(b), F.A.C. 16
17
Immediately after receipt of the written remand review from the property appraiser, the 18
Board clerk shall send a copy of the written remand review to the petitioner by regular or 19
certified U.S. mail or by personal delivery, or in the manner requested by the petitioner 20
on the petition, and shall send a copy to the Board or special magistrate. See Rule 12D-21
9.029(9)(a), F.A.C. 22
23
* The Board clerk shall retain, as part of the petition file, the property appraiser’s 24
written remand review. See Rule 12D-9.029(9)(a), F.A.C. 25
26
* Together with the petitioner’s copy of the written remand review, the Board clerk 27
shall send to the petitioner a copy of Rule 12D-9.029(9), F.A.C. See Rule 12D-28
9.029(9)(a), F.A.C. 29
30
The Board clerk shall schedule a continuation hearing if the petitioner notifies the Board 31
clerk, within 25 days of the date the Board clerk sends the written remand review, that 32
the results of the property appraiser’s written remand review are unacceptable to the 33
petitioner and that the petitioner requests a further hearing on the petition. See Rule 34
12D-9.029(9)(b), F.A.C. 35
36
* The Board clerk shall send the notice of hearing so that it will be received by the 37
petitioner no less than twenty-five (25) calendar days prior to the day of the 38
scheduled continuation hearing, as described in Rule 12D-9.019(3), F.A.C. See Rule 39
12D-9.029(9)(b), F.A.C. 40
41
When a petitioner does not notify the Board clerk that the results of the property 42
appraiser’s written remand review are unacceptable to the petitioner and does not 43
request a continuation hearing, or if the petitioner waives a continuation hearing, the 44
Board or special magistrate shall issue a decision or recommended decision. See Rule 45
12D-9.029(9)(b), F.A.C. 46
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* This decision or recommended decision shall contain: 2
3
1. A finding of fact that the petitioner did not r equest a continuation hearing or 4
waived such hearing; and 5
6
2. A conclusion of law that the decision is being issued in order that any right the 7
petitioner may have to bring an action in circuit court is not impaired. See Rule 8
12D-9.029(9)(b), F.A.C. 9
10
* The petition shall be treated and listed as Board action for purposes of the notice 11
required by Rule 12D-9.038, F.A.C. See Rule 12D-9.029(9)(b), F.A.C. 12
13
At a continuation hearing, the Board or special magistrate shall receive and consider the 14
property appraiser’s written remand review and additional relevant and credible 15
evidence, if any, from the parties. See Rule 12D-9.029(9)(c), F.A.C. 16
17
* Also, the Board or special magistrate may consider evidence admitted at the original 18
hearing. See Rule 12D-9.029(9)(c), F.A.C. 19
20
In those counties that use special magistrates, if an attorney special magistrate has 21
granted a property classification before the remand decision and the property appraiser 22
has produced a remand classified use value, a real property valuation special 23
magistrate shall conduct the continuation hearing. See Rule 12D-9.029(10), F.A.C. 24
25
In no case shall a Board or special magistrate remand to the property appraiser an 26
exemption, “portability” assessment difference transfer, or property classification 27
determination. See Rule 12D-9.029(11), F.A.C. 28
29
Copies of all evidence shall remain with the Board clerk and be available during the 30
remand process. See Rule 12D-9.029(12), F.A.C. 31
32
In lieu of remand, the Board or special magistrate may postpone conclusion of the 33
hearing upon agreement of the parties if the requirements of Rule 12D -9.025(6), F.A.C., 34
are met. See Rule 12D-9.029(13), F.A.C. 35
36
37
Procedures for Recommended Decisions by Special Magistrates 38
For each petition not withdrawn or settled, special magistrates sh all produce a written 39
recommended decision that contains findings of fact, conclusions of law, and reasons 40
for upholding or overturning the property appraiser’s determination. See Rule 12D-41
9.030(1), F.A.C. 42
43
The special magistrate and Board clerk shall observe the petitioner’s right to be sent a 44
timely written recommended decision containing proposed findings of fact and proposed 45
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conclusions of law and reasons for upholding or overturning the determination of the 1
property appraiser. See Rule 12D-9.030(1), F.A.C. 2
3
After producing a recommended decision, the special magistrate shall provide it to the 4
Board clerk. See Rule 12D-9.030(1), F.A.C. 5
6
The Board clerk shall provide copies of the special magistrate’s recommended decision 7
to the petitioner and the property appraiser as soon as practicable after receiving the 8
recommended decision. See Rule 12D-9.030(2), F.A.C. 9
10
1. If the Board clerk knows the date, time, and place at which the recommended 11
decision will be considered by the Board, the Board clerk shall i nclude such 12
information when he or she sends the recommended decision to the petitioner and 13
the property appraiser. See Rule 12D-9.030(2)(a), F.A.C. 14
15
2. If the Board clerk does not yet know the date, time, and place at which the 16
recommended decision will be considered by the Board, the Board clerk shall 17
include information on how to find the date, time, and place of the meeting at which 18
the recommended decision will be considered by the Board. See Rule 12D-19
9.030(2)(b), F.A.C. 20
21
Any Board or special magistrate workpapers, worksheets, notes, or other materials that 22
are made available to a party shall immediately be sent to the other party. See Rule 12D-23
9.030(3), F.A.C. 24
25
* Any workpapers, worksheets, notes, or other materials creat ed by the Board or 26
special magistrates during the course of hearings or during consideration of petitions 27
and evidence, that contain any material prepared in connection with official 28
business, shall be transferred to the Board clerk and retained as public records. See 29
Rule 12D-9.030(3), F.A.C. 30
31
* Boards or special magistrates using standardized workpapers, worksheets, or notes, 32
whether in electronic format or otherwise, must receive prior Department approval to 33
ensure that such standardized documents comply with the law. See Rule 12D-34
9.030(3), F.A.C. 35
36
For the purpose of producing the recommended decisions of special magistrates, the 37
Department prescribes the Form DR-485 series, and any electronic equivalent forms 38
approved by the Department under Section 195.022, F.S. See Rule 12D-9.030(4), F.A.C. 39
40
* The Form DR-485 series is available on the Department’s website at the following 41
link: http://floridarevenue.com/property/Pages/Forms.aspx 42
43
* Boards and special magistrates are required to u se current and up-to-date forms. 44
45
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* Under Rule 12D-9.030(4), F.A.C., all recommended decisions of special 1
magistrates, and all forms used for the recommended decisions, must contain the 2
following required elements: 3
4
1. Findings of fact; 5
6
2. Conclusions of law; and 7
8
3. Reasons for upholding or overturning the determination of the property appraiser. 9
10
As used in this training, the terms “findings of fact” and “conclusions of law” include 11
proposed findings of fact and proposed conclusions of law produced by special 12
magistrates in their recommended decisions. See Rule 12D-9.030(5), F.A.C. 13
14
Legal advice from the Board legal counsel relating to the facts of a petition or to the 15
specific outcome of a decision, if in writing, shall be included in the record and 16
referenced within the findings of fact and conclusions of law. See Rule 12D-9.030(6), 17
F.A.C. 18
19
* If not in writing, this legal advice shall be documented within the findings of fact and 20
conclusions of law. See Rule 12D-9.030(6), F.A.C. 21
22
23
Procedures for Consideration and Adoption of Recommended 24
Decisions by Boards 25
All recommended decisions shall comply with Sections 194.301, 194.034(2), and 26
194.035(1), F.S. See Rule 12D-9.031(1), F.A.C. 27
28
* A special magistrate shall not submit to the Board, and the Board shall not adopt, 29
any recommended decision that is not in compliance with Sections 194.301, 30
194.034(2), and 194.035(1), F.S. See Rule 12D-9.031(1), F.A.C. 31
32
As provided in Sections 194.034(2) and 194.035(1), F.S., the Board shall consider the 33
recommended decisions of special magistrates and may act upon the recommended 34
decisions without further hearing. See Rule 12D-9.031(2), F.A.C. 35
36
* If the Board holds further hearing for such consideration , the Board clerk shall send 37
notice of the hearing to the parties. See Rule 12D-9.031(2), F.A.C. 38
39
* Any notice of hearing shall be in the same form as specified in Rule 12D-9.019(3)(b), 40
F.A.C., but need not include items specified in subparagraphs 6. thro ugh 9. of that 41
subsection. See Rule 12D-9.031(2), F.A.C. 42
43
* The Board shall consider whether the recommended decisions meet the 44
requirements of Rule 12D-9.031(1), F.A.C., and may rely on Board legal counsel for 45
such determination. See Rule 12D-9.031(2), F.A.C. 46
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1
* Adoption of recommended decisions need not include a review of the underlying 2
record. See Rule 12D-9.031(2), F.A.C. 3
4
If the Board determines that a recommended decision meets the requirements of law, 5
the Board shall adopt the recommended decisio n. See Rule 12D-9.031(3), F.A.C. 6
7
* When a recommended decision is adopted and rendered by the Board, it becomes 8
final. See Rule 12D-9.031(3), F.A.C. 9
10
Under Rule 12D-9.031(4), F.A.C., if the Board determines that a recommended decision 11
does not comply with the requirements of law, the Board shall proceed as follows. 12
13
1. The Board shall request the advice of Board legal counsel to evaluate further action 14
and shall take the steps necessary for producing a final decision in compliance with 15
law. 16
17
2. The Board may direct a special magistrate to produce a recommended decision that 18
complies with the law based on, if necessary, a review of the entire record. 19
20
3. The Board shall retain any recommended decisions and all other records of actions 21
taken under Rule 12D-9.031, F.A.C. 22
23
24
Procedures for Final Decisions by Boards 25
For each petition not withdrawn or settled, the Board shall produce a written final 26
decision that contains findings of fact, conclusions of law, and reasons for upholding or 27
overturning the property appraiser’s determination. See Rule 12D-9.032(1)(a), F.A.C. 28
29
* The Board may fulfill the requirement to produce a written final decision by adopting 30
a recommended decision of the special magistrate containing the required elements 31
and providing notice that it has done so. See Rule 12D-9.032(1)(a), F.A.C. 32
33
* The Board may adopt the special magistrate’s recommended decision as the 34
decision of the Board by incorporating the recommended decision, using a postcard 35
or similar notice. See Rule 12D-9.032(1)(a), F.A.C. 36
37
* The Board shall ensure regular and timely app roval of recommended decisions. See 38
Rule 12D-9.032(1)(a), F.A.C. 39
40
Legal advice from the Board legal counsel relating to the facts of a petition or to the 41
specific outcome of a decision, if in writing, shall be included in the record and 42
referenced within the findings of fact and conclusions of law. See Rule 12D-9.032(1)(b), 43
F.A.C. 44
45
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* If not in writing, such advice shall be documented within the findings of fact and 1
conclusions of law. See Rule 12D-9.032(1)(b), F.A.C. 2
3
A final decision of the Board shall state the just, assessed, taxable, and exempt value, 4
for the county both before and after Board action. See Rule 12D-9.032(2), F.A.C. 5
6
* Board action shall not include changes made as a result of action by the property 7
appraiser. See Rule 12D-9.032(2), F.A.C. 8
9
* If the property appraiser has reduced his or her value or granted an exemption, 10
property classification, or “portability” assessment difference transfer, whether before 11
or during the hearing but before Board action, the values in the “before” column shall 12
reflect the adjusted figure before Board action. See Rule 12D-9.032(2), F.A.C. 13
14
The Board’s final decision shall advise the taxpayer and property appraiser that further 15
proceedings in circuit court shall be as provided in Section 194.036, F.S. See Rule 12D-16
9.032(3), F.A.C. 17
18
Upon issuance of a final decision by the Board, the Board shall provide it to the Board 19
clerk and the Board clerk shall promptly provide notice of the final decision to the 20
parties. See Rule 12D-9.032(4), F.A.C. 21
22
* Notice of the final decision may be made by providing a copy of the decision. See 23
Rule 12D-9.032(4), F.A.C. 24
25
* The Board shall issue all final decisions within 20 calendar days of the last day the 26
Board is in session pursuant to Section 194.034, F.S. See Rule 12D-9.032(4), F.A.C. 27
28
* Notification of the petitioner must be by first class mail or by electronic means as set 29
forth in section 194.034(2) or section 192.048, F.S. See Rule 12D-9.007(10), F.A.C. 30
31
For the purpose of producing the final decisions of the Board, the Department 32
prescribes the Form DR-485 series, and any electronic equivalent forms approved by 33
the Department under Section 195.022, F.S. See Rule 12D-9.032(5), F.A.C. 34
35
* The Form DR-485 series is available on the Department’s website at the following 36
link: http://floridarevenue.com/property/Pages/Forms.aspx 37
38
* Boards and special magistrates are required to use current and u p-to-date forms. 39
40
* The Form DR-485 series, or approved electronic equivalent forms, are the only 41
forms that shall be used for producing a final decision of the Board. See Rule 12D-42
9.032(5), F.A.C. 43
44
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* Before using any form to notify petitioners of the fin al decision, the Board shall 1
submit the proposed form to the Department for approval. See Rule 12D-9.032(5), 2
F.A.C. 3
4
* The Board shall not use a form to notify the petitioner unless the Department has 5
approved the form. See Rule 12D-9.032(5), F.A.C. 6
7
* Under Rule 12D-9.032(5), F.A.C., all decisions of the Board, and all forms used to 8
produce final decisions on petitions heard by the Board, must contain the following 9
required elements: 10
11
1. Findings of fact; 12
13
2. Conclusions of law; and 14
15
3. Reasons for upholding or overturning the determination of the property appraiser. 16
17
If, prior to a final decision, any communication is received from a party concerning a 18
Board process on a petition or concerning a recommended decision, a copy of the 19
communication shall promptly be furnished to all parties, the Board clerk, and the Board 20
legal counsel. See Rule 12D-9.032(6)(a), F.A.C. 21
22
* No such communication shall be furnished to the Board or a special magistrate 23
unless a copy is immediately furnished to all parties. See Rule 12D-9.032(6)(a), F.A.C. 24
25
* A party may waive notification or furnishing of copies under Rule 12D -9.032(6)(a), 26
F.A.C. 27
28
* The Board legal counsel shall respond to such communication and may advise the 29
Board concerning any action the Board should take concerning the communication. 30
See Rule 12D-9.032(6)(b), F.A.C. 31
32
* No reconsideration of a recommended decision shall take plac e until all parties have 33
been furnished all communications and have been afforded adequate opportunity to 34
respond. See Rule 12D-9.032(6)(c), F.A.C. 35
36
* Under Rule 12D-9.032(6)(d), F.A.C., the Board clerk shall provide to the parties: 37
38
1. Notification before the presentation of the matter to the Board; and 39
40
2. Notification of any action taken by the Board. 41
42
43
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Further Judicial Proceedings 1
Rule 12D-9.033, F.A.C., provides that after the Board issues its final decision, further 2
proceedings and the timing thereo f are as provided in Sections 194.036 and 194.171, 3
F.S. 4
5
6
Requirements for the Record of the Hearing 7
Rule 12D-9.034(1), F.A.C., states the following: 8
9
“The board clerk shall maintain a record of the proceeding. The record shall consist of: 10
11
1. The petition; 12
13
2. All filed documents, including all tangible exhibits and documentary evidence 14
presented, whether or not admitted into evidence; and 15
16
3. Meeting minutes and a verbatim record of the hearing.” 17
18
The verbatim record of the hearing may be kept by any electronic means that is easily 19
retrieved and copied. See Rule 12D-9.034(2), F.A.C. 20
21
In counties that use special magistrates, the special magistrate shall accurately and 22
completely preserve the verbatim record during the hearing, and may be assisted by the 23
Board clerk. See Rule 12D-9.034(2), F.A.C. 24
25
In counties that do not use special magistrates, the Board clerk shall accurately and 26
completely preserve the verbatim record during the hearing. See Rule 12D-9.034(2), 27
F.A.C. 28
29
At the conclusion of each hearing, the Board clerk shall retain the verbatim record as 30
part of the petition file. See Rule 12D-9.034(2), F.A.C. 31
32
Under Rule 12D-9.034(3) and (4), F.A.C., the Board clerk shall maintain the petition 33
record as follows: 34
35
1. For four years after the Board rendered the final decision, if no appeal is filed in 36
circuit court; or 37
38
2. For five years if an appeal is filed in circuit court; or 39
40
3. If requested by one of the parties, these records shall be retai ned until the final 41
disposition of any subsequent judicial proceeding related to the same property. 42
43
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Requirements for Certification of Assessment Rolls 1
When the tax rolls have been extended pursuant to Section 197.323, F.S., the initial 2
certification of the Board shall be made on Form DR-488P. See Rule 12D-9.037(1)(a), 3
F.A.C. 4
5
* Form DR-488P is available on the Department’s website at the following link: 6
http://floridarevenue.com/property/Pages/Forms.aspx 7
8
* Boards are required to use current and up -to-date forms. 9
10
After all hearings have been held, the Board shall certify an assessment roll or part of 11
an assessment roll that has been finally approved pursuant to Section 193.1142, F.S. 12
See Rule 12D-9.037(1)(b), F.A.C. 13
14
* The certification shall be on Form DR-488 prescribed by the Department for this 15
purpose. See Rule 12D-9.037(1)(b), F.A.C. 16
17
* A sufficient number of copies of the Board’s certification shall be delivered to the 18
property appraiser who shall attach the same to each copy of each assessment roll 19
prepared by the property appraiser. See Rule 12D-9.037(1)(b), F.A.C. 20
21
Rule 12D-9.037(2), F.A.C., requires a certification signed by the Board chair, on behalf 22
of the entire Board, on Form DR-488, designated for this purpose, that all requirements 23
in Chapter 194, F.S., and Department rules, were met as listed below. 24
25
1. The prehearing checklist pursuant to Rule 12D-9.014, F.A.C., was followed and all 26
necessary actions reported by the Board clerk were taken to comply wit h Rule 12D-27
9.014, F.A.C.; 28
29
2. The qualifications of special magistrates were verified, including whether special 30
magistrates completed the Department’s training; 31
32
3. The selection of special magistrates was based solely on proper qualifications and 33
the property appraiser and parties did not influence the selection of special 34
magistrates; 35
36
4. All petitions considered were either timely filed, or good cause was found for late 37
filing after proper review by the Board or its designee; 38
39
5. All Board meetings were duly noticed pursuant to Section 286.011, F.S., and were 40
held in accordance with law; 41
42
6. No ex parte communications were considered unless all parties were notified and 43
allowed to rebut; 44
45
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7. All petitions were reviewed and considered as required by law unless withdrawn or 1
settled as defined in Rule Chapter 12D-9, F.A.C.; 2
3
8. All decisions contain required findings of fact and conclusions of law in compliance 4
with Chapter 194, F.S., and Rule Chapter 12D-9, F.A.C.; 5
6
9. The Board allowed opportunity for public comment at the meeting at which special 7
magistrate recommended decisions were considered and adopted; 8
9
10. All Board members and the Board’s legal counsel have read this certification and a 10
copy of the statement in Rule 12D-9.037(1), F.A.C., is attached; and 11
12
11. All complaints of noncompliance with Part I, Chapter 194, F.S., or Rule Chapter 13
12D-9, F.A.C., that were called to the Board’s attention have been appropriately 14
addressed to conform with the provisions of Part I, Chapter 194, F.S., and Rule 15
Chapter 12D-9, F.A.C. 16
17
The Board shall provide a signed original of the certification required under Rule 12D -18
9.037, F.A.C., to the Department before publication of the notice of the findings and 19
results of the Board required by Section 194.037, F.S. See Rule 12D-9.037(3), F.A.C. 20
21
* See Form DR-529, Notice Tax Impact of Value Adjustment Board. 22
23
* This form is available on the Department’s website at the following link: 24
http://floridarevenue.com/property/Pages/Forms.aspx 25
26
* Boards are required to use current and up -to-date forms. 27
28
29
Requirements for Public Notice of Findings and Results of the Board 30
After all hearings have been completed, the Board clerk shall publish a public notice 31
advising all taxpayers of the findings and results of the Board decisions, which shall 32
include changes made by the Board to the property appraiser’s initial roll. See Rule 12D-33
9.038(1), F.A.C. 34
35
* The format of the tax impact notice shall be substantially as prescribed in Form DR-36
529, Notice Tax Impact of Value Adjustment Board. See Rule 12D-9.038(1), F.A.C. 37
38
* The public notice shall be in the form of a newspaper advertisement and shall be 39
referred to as the "tax impact notice." See Rule 12D-9.038(1), F.A.C. 40
41
* Such notice shall be published to permit filing within the timeframe in Rules 12D-42
17.004(1) and (2), F.A.C., where provided. See Rule 12D-9.038(1), F.A.C. 43
44
* For petitioned parcels, the property appraiser’s initial roll shall be the property 45
appraiser’s determinations as presented at the commencement of the hearing or as 46
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reduced by the property appraiser during the hearing but before a decision by the 1
Board or a recommended decision by a special magistrate. See Rule 12D-9.038(1), 2
F.A.C. 3
4
* Rule 12D-9.038, F.A.C., shall not prevent the property appraiser from providing data 5
to assist the Board clerk with the notice of tax impact. 6
7
The notice of the findings and results of the Board shall be published in a newspaper of 8
paid general circulation within the county. See Rule 12D-9.038(3), F.A.C. 9
10
* It shall be the specific intent of the publication of notice to reach the largest segment 11
of the total county population. See Rule 12D-9.038(3), F.A.C. 12
13
* Any newspaper of less than general circulation in the county shall not be considered 14
for publication except to supplement notices published in a paper of general 15
circulation. See Rule 12D-9.038(3), F.A.C. 16
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1
Module 6: 2
Administrative Reviews of 3
Real Property Just Valuations 4
5
6
Training Module 6 addresses the following topics: 7
• Statutory Law Beginning in 2009 (See HB 521) 8
• Overview of Appraisal Development 9
• Legal Provisions on the Real Property Appraisal Guidelines 10
• Florida Information on Appraisal Development 11
• Scope of Authority for Administrative Reviews 12
• The Eight Factors of Just Valuation 13
• Proper Consideration of the Just Valuation F actors 14
• Standard of Proof for Administrative Reviews 15
• Petitioner Not Required to Present Opinion or Estimate of Value 16
• Presentation of Evidence by the Parties 17
• Evaluation of Evidence by the Board or Special Magistrate 18
• Sufficiency of Evidence 19
• Requirements for Establishing a Presumption of Correctness 20
• Requirements for Overcoming a Presumption of Correctness 21
• Establishing a Revised Just Value or Remanding the Assessment 22
• Competent Substantial Evidence for Establishing a Revised Just Value 23
• Establishment of Revised Just Values in Administrative Reviews 24
• Legal Limitations on Administrative Reviews 25
• Sequence of General Procedural Steps 26
• Chronological Overview of Subsection 193.011(8), F.S. 27
• Operation of the Eighth Criterion Under Florida Law 28
• The Eighth Criterion in Real Property Administrative Reviews 29
• Homestead Residential Improvement Uninhabitable Due to Hurricane Damage 30
• Assessment of Multiple Parcel Buildings 31
• (NEW) Appraisal by Special Magistrate May Not Be Submitted as Evidence 32
33
34
Learning Objectives 35
After completing this training module, the learner should be able to: 36
37
• Identify the 2009 changes enacted in statutory law (HB 521) 38
• Distinguish between who does appraisal development and who does NOT 39
• Identify legal provisions on the Florida Real Property Appraisal Guidelines 40
• Identify legal provisions that represent limitations on the discretion of property 41
appraisers 42
• Recognize the four components of the definition of personal property 43
• Distinguish between appraisal development and administrative reviews 44
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• Identify the effective date of administrative review and the real property interest to be 1
reviewed 2
• Recognize and apply the scope of authority for administrative reviews 3
• Identify the items that a Board or special magistrate may consider in addition to 4
admitted evidence 5
• Identify the eight factors of just valuation in Section 193.011, F.S. 6
• Recognize the legal standards for consideration of the just valuation factors 7
• Identify the applicable standard of proof, its definition, and how it is applied 8
• Identify standards of proof that do NOT apply in administrative reviews 9
• Recognize that a petitioner is NOT required to present an opinion of value 10
• Understand the order of presentation of evidence 11
• Identify and apply the steps for evaluating evidence in administrative reviews 12
• Recognize and apply the provisions for ruling on the admissibility of evidence 13
• Identify and apply the definitions of relevant evidence and credible evidence 14
• Recognize and apply the standards for determining the sufficiency of evidence 15
• Identify types of information that are NOT sufficient evidence for estab lishing a 16
presumption of correctness 17
• Recognize the requirements for establishing a presumption of correctness 18
• Recognize the requirements for overcoming a presumption of correctness 19
• Identify the alternative actions required when a presumption of correctness was not 20
established, or was established but later was overcome 21
• Identify and apply the elements of the definition of competent substantial evidence 22
for establishing a revised assessment 23
• Recognize the conditions under which a Board or special magistrate is required to 24
establish a revised just value 25
• Identify legal limitations on administrative reviews 26
• Apply the sequence of general procedural steps for administrative reviews of just 27
valuations 28
• Identify when the Board or special magistrate is required or is NOT required to make 29
determinations such as findings, conclusions, or decisions 30
• Recognize the chronology and operation of the eighth criterion for real property 31
under Florida law 32
• Recognize that the eighth cr iterion must be properly considered in administrative 33
reviews of just valuations of real property, regardless of the appraisal approach or 34
technique used and whether an actual sale of the property has occurred 35
• Apply procedures for properly considering the eighth criterion in administrative 36
reviews of real property 37
38
39
Statutory Law Beginning in 2009 (See HB 521) 40
An important change to Florida Statutes was passed in the 2009 legislative session and 41
then approved by the Governor on June 4, 2009. See Section 194.301, Florida 42
Statutes, as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 43
44
The complete text of this legislation is presented following: 45
46
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Be It Enacted by the Legislature of the State of Florida: 1
2
Section 1. 3
Section 194.301, Florida Statutes, is amended to read: 4
194.301 Challenge to ad valorem tax assessment.— 5
6
(1) In any administrative or judicial action in which a taxpayer challenges an ad valorem 7
tax assessment of value, the property appraiser’s assessment is presumed correct if the 8
appraiser proves by a preponderance of the evidence that the assessment was arrived 9
at by complying with s. 193.011, any other applicable statutory requirements relating to 10
classified use values or assessment caps, and professionally accepte d appraisal 11
practices, including mass appraisal standards, if appropriate. However, a taxpayer who 12
challenges an assessment is entitled to a determination by the value adjustment board 13
or court of the appropriateness of the appraisal methodology used in ma king the 14
assessment. The value of property must be determined by an appraisal methodology that 15
complies with the criteria of s. 193.011 and professionally accepted appraisal practices. 16
The provisions of this subsection preempt any prior case law that is in consistent with this 17
subsection. 18
19
(2) In an administrative or judicial action in which an ad valorem tax assessment is 20
challenged, the burden of proof is on the party initiating the challenge. 21
22
(a) If the challenge is to the assessed value of the property, the party initiating the 23
challenge has the burden of proving by a preponderance of the evidence that the 24
assessed value: 25
26
1. Does not represent the just value of the property after taking into account any 27
applicable limits on annual increases in the value of the property; 28
29
2. Does not represent the classified use value or fractional value of the property if the 30
property is required to be assessed based on its character or use; or 31
32
3. Is arbitrarily based on appraisal practices that are different from the a ppraisal practices 33
generally applied by the property appraiser to comparable property within the same 34
county. 35
36
(b) If the party challenging the assessment satisfies the requirements of paragraph (a), 37
the presumption provided in subsection (1) is overcome a nd the value adjustment board 38
or the court shall establish the assessment if there is competent, substantial evidence of 39
value in the record which cumulatively meets the criteria of s. 193.011 and professionally 40
accepted appraisal practices. If the record lacks such evidence, the matter must be 41
remanded to the property appraiser with appropriate directions from the value adjustment 42
board or the court, and the property appraiser must comply with those directions. 43
44
(c) If the revised assessment following remand is challenged, the procedures described 45
in this section apply. 46
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1
(d) If the challenge is to the classification or exemption status of the property, there is no 2
presumption of correctness and the party initiating the challenge has the burden of 3
proving by a preponderance of the evidence that the classification or exempt status 4
assigned to the property is incorrect. 5
6
Section 2. 7
(1) It is the express intent of the Legislature that a taxpayer shall never have the burden 8
of proving that the property appraiser’s assessment is not supported by any reasonable 9
hypothesis of a legal assessment. All cases establishing the every -reasonable-10
hypothesis standard were expressly rejected by the Legislature on the adoption of chapter 11
97-85, Laws of Florida. It is the further intent of the Legislature that any cases published 12
since 1997 citing the every-reasonable-hypothesis standard are expressly rejected to the 13
extent that they are interpretative of legislative intent. 14
15
(2) This section is intended to clarify existing law and apply retroactively. 16
17
Section 3. 18
This act shall take effect upon becoming a law and shall first apply to assessments in 19
2009. 20
Approved by the Governor June 4, 2009. 21
Filed in Office Secretary of State June 4, 2009. 22
Ch. 2009-121 LAWS OF FLORIDA Ch. 2009-121 23
24
This law applies to the administrative review of assessments beginning with 2009 25
assessments. 26
27
* Procedural steps for implementing this legislation for administrative reviews of just 28
valuations are presented later in this training modu le. 29
30
Board attorneys are responsible for ensuring that this important legislation is 31
implemented for all administrative reviews of assessments, starting in 2009. 32
33
This law changed the standard of review for assessments, and Boards and special 34
magistrates must be familiar with the law to ensure its implementation. 35
36
Where appropriate, key points from this statute are presented in this and other modules 37
of this training. However, users of this training are advised to obtain a copy of this 38
statute and review it carefully to understand all of its provisions. 39
40
The law provides a lower standard of proof, called “preponderance of the evidence,” for 41
determining whether the assessment is incorrect. 42
43
* “Preponderance of the evidence” is a standard (level) of proof that means “greater 44
weight of the evidence” or “more likely than not.” 45
46
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In determining whether the assessment is incorrect, Boards and special magistrates 1
must not use any standard of proof other than the preponderance of the evidence 2
standard, as provided in Section 194.301, F.S., as amended by Chapter 2009-121, 3
Laws of Florida (House Bill 521). 4
5
Higher standards of proof no longer apply. The higher standard of proof called “clear 6
and convincing evidence” no longer applies in the administrative review of assessments 7
and must not be used by Boards or special magist rates. See Section 194.301, F.S., as 8
amended by Chapter 2009-121, Laws of Florida (House Bill 521). 9
10
“It is the express intent of the Legislature that a taxpayer shall never have the burden of 11
proving that the property appraiser's assessment is not supported by any reasonable 12
hypothesis of a legal assessment.” See Subsection 194.3015(1), F.S., as created by Chapter 13
2009-121, Laws of Florida (House Bill 521). 14
15
The current statute provides the following: “The provisions of this subsection preempt 16
any prior case law that is inconsistent with this subsection.” See Subsection 194.301(1), 17
F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 18
19
References to Florida court decisions are presented in this training. Generally, these 20
court decisions predate this current statutory law. This current statutory law supersedes 21
these decisions to the extent these decisions conflict with it. 22
23
Thus, the information from these court decisions, as presented in this training, has been 24
modified where appropriate for consistency with the 2009 changes in the statute. 25
26
For example, court decisions recognize that property appraisers have discretion, which 27
is limited by other provisions of law, in weighing just valuation factors and in selecting 28
an appraisal methodology. 29
30
* The current statute contains an additional requirement that the appraisal 31
methodology used in making the assessment must comply with “professionally 32
accepted appraisal practices.” 33
34
* This requirement represents an additional statutory l imitation on the property 35
appraiser’s discretion. 36
37
Therefore, where appropriate in this training, the requirement on “professionally 38
accepted appraisal practices” has been added to modify the information from prior court 39
decisions for consistency with the current statutory law. 40
41
* This training module includes references to this current statutory law where 42
appropriate. 43
44
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This training is intended to contain information that is consistent with the current 1
statutory provisions in Sections 194.301 and 194.3015, F.S., as amended by Chapter 2
2009-121, Laws of Florida (House Bill 521). 3
4
An overall summary of the provisions of this current law is presented in Module 1 of this 5
training. Provisions of this current statute are addressed where appropriate in other 6
slides in this module and in other modules of this training. 7
8
9
Overview of Appraisal Development 10
Appraisal development, or valuation development, is the process of producing an 11
original appraisal (determination of value) using the overall appraisal process. 12
13
In administrative reviews, Boards and special magistrates are not authorized to perform 14
appraisal development and must not perform appraisal development. 15
16
Property appraisers do appraisal development as part of their annual production of 17
assessment rolls. Private sector appraisers also do appraisal development. 18
19
Generally, property appraisers use a professio nally accepted methodology called mass 20
appraisal to develop real property just values each year. 21
22
The Florida Real Property Appraisal Guidelines generally describe the mass appraisal 23
development process under Florida law. 24
25
It is implicit in mass appraisal that, even when properly specified and calibrated mass 26
appraisal models are used, some individual value conclusions will not meet standards of 27
reasonableness, consistency, and accuracy. 28
29
30
Legal Provisions on the Real Property Appraisal Guidelines 31
Below are provisions from Section 195.032, Florida Statutes, describing the Florida 32
Real Property Appraisal Guidelines. 33
34
1. “The standard measures of value shall provide guidelines for the valuation of 35
property and methods for property appraisers to employ in arri ving at the just 36
valuation of particular types of property consistent with section 193.011...” 37
38
2. “The standard measures of value shall assist the property appraiser in the valuation 39
of property and be deemed prima facie correct, but shall not be deemed to establish 40
the just value of any property.” 41
42
See Rule 12D-51.003, Florida Administrative Code, for more information on the Florida 43
Real Property Appraisal Guidelines. 44
45
46
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Florida Information on Appraisal Development 1
The Florida Real Property Appraisal Guidelines contain descriptions of appraisal 2
methods that may be used by property appraisers to develop just valuations of real 3
property consistent with Florida law. 4
5
Boards and special magistrates are expected to understand these guidelines for 6
purposes of reviewing challenged assessments. 7
8
A copy of these guidelines is available at the following web address: 9
http://floridarevenue.com/property/Documents/FLrpg.pdf 10
11
The real property guidelines describe the three real property valuation approaches, 12
which are the following: (1) The Cost Less Depreciation Approach; (2) The Sales 13
Comparison Approach; and (3) The Income Capitalization Approach. 14
15
Section 4, Article VII, of the Florida Constitution, requires a just valuation of all property 16
for ad valorem taxation, with certain conditions. 17
18
Florida’s constitution has “delegated to the Legislature the responsibility for deciding the 19
specifics of how that ‘just valuation’ would be secured .” Sunset Harbour Condominium 20
Ass’n v. Robbins, 914 So.2d 925, 931 (Fla. 2005), citing Collier County v. State, 733 So.2d 21
1012, 1019 (Fla. 1999). 22
23
In section 193.011, F.S., the Florida Legislature has effectuated the constitutional 24
requirement for just valuation by specifying the eight factors that must be properly 25
considered in arriving at just valuations of all property. 26
27
In 1963, the Legislature enacted the first seven just valuation factors, effective January 28
1, 1964. See Chapter 63-250, Laws of Florida, creating Section 193.021, F.S., which was re-29
numbered in 1969 as Section 193.011, F.S., by Chapter 69-55, Laws of Florida. 30
31
In 1965, the Florida Supreme Court held that just value was synonymous with fair 32
market value and defined fair market value as: “the amount a purchaser willing but not 33
obliged to buy, would pay to one willing but not obliged to sell.” See Walter v. Schuler, 176 34
So.2d 81 (Fla. 1965). 35
36
* Neither the term “fair market value” nor the term “market value” appears in the 37
Florida Constitution. The term “just valuation” appears in the constitution once and 38
the term “just value” appears in the constitution a total of 22 times, all of which terms 39
appear in Article VII pertaining to the valuation of property for ad valorem taxation. 40
41
* NOTE: The eighth just valuation criterion did not exist at the time of Walter v. 42
Schuler. The Legislature can override decisional law. See Dept. of Environmental 43
Protection v. Contractpoint Florida Parks, 986 So.2d 1260, 1269 (Fla. 2008). 44
45
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Then, in 1967, the Legislature added the eighth just valuation criterion (net proceeds of 1
sale) as a new Subsection 193.021(8), F.S. See Chapter 67-167, Laws of Florida, creating 2
Subsection 193.021(8), F.S., which was re-numbered in 1969 as Subsection 193.011(8), F.S., by 3
Chapter 69-55, Laws of Florida. 4
5
Subsection 193.011(8), F.S., generally known as the “eighth criterion,” was last 6
amended in 1979 and is presented below in its entirety. 7
8
“The net proceeds of the sale of the property, as received by the seller, after deduction 9
of all of the usual and reasonable fees and costs of the sale, including the costs and 10
expenses of financing, and allowance for unconventional or atypical terms of financing 11
arrangements. When the net proceeds of the sale of any property are utilized, directly or 12
indirectly, in the determination of just valuation of realty of the sold parcel or any other 13
parcel under the provisions of this section, the property appraiser, for the purposes of 14
such determination, shall exclude any portion of such net proceeds attributable to 15
payments for household furnishings or other items of personal property.” 16
17
When the eighth criterion was added in 1967 to the statute containing just valuation 18
factors, the Legislature apparently provided discretion to property appraisers that would 19
allow for, but not require, just value to be a number different than before enactment of 20
the “net proceeds of sale” factor. 21
22
The rule of statutory interpretation is to assume that the Legislature intended its 23
amendment to serve a useful purpose. “Likewise, when a statute is amended, it is 24
presumed that the Legislature intended it to have a meaning different f rom that 25
accorded to it before the amendment.” Carlisle v. Game and Freshwater Fish Commission, 26
354 So.2d 362 (Fla. 1977); see also Okeechobee Health Care v. Collins, 726 So.2d 775 (Fla. 1st 27
DCA 1998). 28
29
For many years, Florida property appraisers have int erpreted subsection 193.011(8), 30
F.S., by applying across-the-board, eighth criterion adjustments in arriving at just 31
valuations of real property. 32
33
Since its enactment and amendments, this eighth just valuation criterion has been 34
applied by property appraisers in actual practice to produce a just value for real property 35
that is generally less than fair market value. 36
37
In 1984, when reviewing a 1980 assessment, a federal appellate court found that just 38
value as determined under Subsection 193.011(8), F.S., d oes not represent full market 39
value. See Louisville and Nashville Railroad Co. v. Department of Revenue, State of Fla., 736 40
F.2d 1495 (11th Cir.(Fla.) July 24, 1984). 41
42
A Florida appellate court stated the following in an example regarding the eighth 43
criterion: “Subtracting the $15,000 (cost of sale) from the $100,000 selling price leaves 44
a net value of $85,000. We find no impropriety in using this approach to valuation.” See 45
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Southern Bell Telephone and Telegraph Co. v. Broward County, 665 So.2d 272 (Fla. 4th DCA 1
1995) review denied 673 So.2d 30 (Fla. 1996). 2
3
The eighth criterion is addressed in more detail in the last three sections of this module. 4
5
In 2007, the United States Supreme Court held that appraisal is an “applied science.” 6
See CSX Transportation, Inc. v. Georgia State Board of Equalization, 552 U.S. 9 (2007). 7
8
The following excerpt states that mass appraisal is a combination of science and art, 9
and requires sound judgment. See Fundamentals of Mass Appraisal (Kansas City, MO: 10
International Association of Assessing Officers, 2011), pages 135-136. 11
12
• “Thus, modeling is a combination of the proper application of statistical tools 13
(science) and market experience and sound judgment (art).” 14
15
The following two excerpts describe the context and application of sound appraisal 16
judgment in the appraisal process. See Uniform Appraisal Standards for Federal Land 17
Acquisition 2016 (Appraisal Foundation), pages 204 and 203, respectively. 18
19
• “Appraisers must exercise sound judgment based on kno wn pertinent facts and 20
circumstances, and it is their responsibility to obtain knowledge of all pertinent facts 21
and circumstances that can be acquired with diligent inquiry and search. They must 22
then weigh and consider the relevant facts, exercise sound ju dgment, and develop 23
an opinion that is completely unbiased by any consideration favoring either the 24
landowner or the government.” 25
26
• “Serving this important function requires expertise, diligence, sound judgment, and 27
objectivity...” 28
29
Judgment is not a substitute for appraisal expertise, diligence, or objectivity. Sound 30
appraisal judgment must be exercised in accordance with applicable legal criteria 31
including professionally accepted appraisal practices. See Section 194.301(1), F.S., and 32
Darden Restaurants, Inc. v. Singh, 266 So.3d 228 (Fla. 5th DCA 2019), referring to “professional 33
judgment” in just valuations under 2009 legislation that amended Section 194.301, F.S. 34
35
Note: As indicated following, the property appraiser’s discretion is not unbridled and is 36
limited by provisions of law including Sections 194.301 and 194.3015, F.S., as amended 37
by Chapter 2009-121, Laws of Florida (House Bill 521). 38
39
Several Florida court decisions have described the limitations on the property 40
appraiser’s discretion, including the five indicated below: 41
42
1. The statute on just valuation factors (now Section 193.011, F.S.) was not intended to 43
give property appraisers unbridled discretion; rather, the statute’s purpose is to 44
require property appraisers to adhere to the constitutional mandate of just valuation. 45
See Walter v. Schuler, 176 So.2d 81 (Fla. 1965); Section 193.011, F.S.; and Chapter 67-167, 46
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Laws of Florida, creating Subsection 193.021(8), F.S., which was re-numbered in 1969 as 1
Subsection 193.011(8), F.S., by Chapter 69-55, Laws of Florida. 2
3
2. The property appraiser’s discretion is limited by the standard of jus t valuation and by 4
the statutory criteria for just valuation (now Section 193.011, F.S.). See Keith 5
Investments, Inc. v. James, 220 So.2d 695 (Fla. 4th DCA 1969). 6
7
3. The statutory valuation criteria are intended to limit the property appraiser’s 8
discretion and to tie the property appraiser more closely to the uniform constitutional 9
standard of just valuation. See Cassady v. McKinney, 296 So.2d 94 (Fla. 2nd DCA 1974). 10
11
4. The property appraiser’s discretion is limited by the constitutional requirement for a 12
just valuation and by statute (Section 193.011, F.S.). See In re Steffen, 342 B.R. 861 13
(Bkrtcy. M.D. Fla. 2006). 14
15
5. The property appraiser’s discretion is limited by professionally accepted appraisal 16
practices. See Darden Restaurants, Inc. v. Singh, 266 So.3d 228 (Fla. 5th DCA 2019), citing 17
Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521), 18
which requires that the assessment methodology comply with professionally accepted 19
appraisal practices. 20
21
The property appraiser is required to consider, but is not required to use, all three 22
approaches to value. See Mastroianni v. Barnett Banks, Inc., 664 So.2d 284 (Fla. 1st DCA 23
1995) review denied 673 So.2d 29 (Fla. 1996). 24
25
* Note: However, a presumption of correctness for the assessment will not be 26
established if the property appraiser does not prove by a preponderance of the 27
evidence that the just value was developed in compliance with Section 193.011, 28
F.S., and professionally accepted appraisal practices, including mass appraisal 29
standards, if appropriate. 30
31
The property appraiser’s valuation methodology must comply with the criteria in Section 32
193.011, F.S., and professionally accepted appraisal practices. See Section 194.301, F.S., 33
as amended by Chapter 2009-121, Laws of Florida (House Bill 521), and Section 193.011, F.S. 34
35
Florida law defines real property as land, buildings, fixtures, and all other improvements 36
to land. See Subsection 192.001(12), F.S. 37
38
Florida law defines personal property as being divided into the following four categories: 39
1) household goods, 2) intangible personal property, 3) inventory, and 4) tangible 40
personal property. See Subsection 192.001(11), F.S. 41
42
Subsection 193.011(8), F.S., states the following in p ertinent part: “When the net 43
proceeds of the sale of any property are utilized, directly or indirectly, in the 44
determination of just valuation of realty of the sold parcel or any other parcel under the 45
provisions of this section, the property appraiser, fo r the purposes of such 46
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determination, shall exclude any portion of such net proceeds attributable to payments 1
for household furnishings or other items of personal property.” 2
3
The just value of any personal property must be excluded from just valuations of real 4
property. 5
6
7
Scope of Authority for Administrative Reviews 8
The administrative review of just valuations is performed by Boards or special 9
magistrates under Chapter 194, Parts 1 and 3, F.S.; Rule Chapters 12D -9, 12D-10, and 10
12D-16, F.A.C.; and other provisions of Florida law. 11
12
The administrative review process performed by Boards and special magistrates is 13
separate and different from the mass appraisal development process performed by 14
property appraisers. 15
16
In administrative reviews, Boards and special magistrates are not authorized to perform 17
appraisal development and must not perform appraisal development. 18
19
In administrative reviews, Boards and special magistrates are not authorized to perform 20
any independent factual research into attributes of the subject property or any other 21
property. 22
23
Boards and special magistrates must follow the provisions of law on the administrative 24
review of assessments. See Chapter 194, Parts 1 and 3, F.S.; Rule Chapters 12D-9, 12D-10, 25
and 12D-16, F.A.C.; and other provisions of Florida law. 26
27
In establishing revised just values when required by law, Boards and special 28
magistrates are bound by the same standards and practices as property appraisers. 29
See Rule 12D-10.003(1), F.A.C., treated favorably in Bystrom v. Equitable Life Assurance 30
Society, 416 So.2d 1133 (Fla. 3d DCA 1982), and see Section 194.301, F.S., as amended by 31
Chapter 2009-121, Laws of Florida (House Bill 521). 32
33
* However, when observing this requirement, Boards and special magistrates must 34
act within their scope of authority. 35
36
The effective date of administrative review is January 1 each year, and the real property 37
interest to be reviewed is the unencumbered fee simple estate. 38
39
The Board or special magistrate has no authority to develop original just valuations of 40
property and may not take the place of the property appraiser, but shall revise the 41
assessment when required under Florida law. See Rule 12D-10.003(1), F.A.C., and Section 42
194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 43
44
* See Simpson v. Merrill, 234 So.2d 350 (Fla. 1970), stating that a court may not take the place 45
of the property appraiser but may reduce the assessment. 46
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1
* Also, see Blake v. Farrand Corporation, Inc., 321 So.2d 118 (Fla. 3d DCA 1975), holding 2
that the determination of the weight to be accorded evidence rests upon the trial judge, as 3
trier of facts, and if competent substantial evidence is introduced demonstrating the 4
assessment to be erroneous, the judge may reduce that assessment. 5
6
The Board or special magistrate is required to revise the assessment under the 7
conditions specified in Section 194.301, F.S., as amended by Chapter 2009-121, Laws 8
of Florida (House Bill 521). These conditions are described in detail later in this module. 9
10
“In establishing a revised just value, the board or special magistrate is not restricted to 11
any specific value offered by one of the parties.” See Rule 12D-9.027(2)(b)3.a., F.A.C. 12
13
* Also, see Blake v. Farrand Corporation, Inc., 321 So.2d 118 (Fla. 3d DCA 1975), holding 14
that the reviewing judge could arrive at a value that was different from either of the values 15
presented by the parties when the judge’s value was based on competent substantial evidence 16
in the record. 17
18
The Board or special magistrate is authorized to make calculations and to make an 19
adjustment to the property appraiser’s value based on competent substantial evidence 20
of just value in the record. See Section 194.301, F.S., as amended by Chapter 2009-121, Laws 21
of Florida (House Bill 521), and see Cassady v. McKinney, 343 So.2d 955 (Fla. 2nd DCA 1977), 22
stating that when the record contains competent substantial evidence of value the court may 23
make necessary value calculations or adjustments based on such evidence. 24
25
If the hearing record does not co ntain competent substantial evidence of just value, the 26
Board or special magistrate cannot substitute its own independent judgment. See Section 27
194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521), and see 28
Cassady v. McKinney, 343 So.2d 955 (Fla. 2nd DCA 1977), stating that in the absence of 29
competent substantial evidence of value the court cannot substitute its own independent 30
judgment. 31
32
The Board or special magistrate has no authority to adjust assessments across-the-33
board. Their authority to review just valuations is limited to the review of individual 34
petitions filed. See Spooner v. Askew, 345 So.2d 1055 (Fla. 1976). 35
36
The Board has the limited function of reviewing and correcting individual assessments 37
developed by the property appraiser. See Bath Club, Inc. v. Dade County, 394 So.2d 110 38
(Fla. 1981). 39
40
The Board has no authority to review, on its own volition, a decision of the property 41
appraiser to deny an exemption. See Redford v. Department of Revenue, 478 So.2d 808 42
(Fla. 1985). 43
44
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“For the purposes of review of a petition, the board may consider assessments among 1
comparable properties within homogeneous areas or neighborhoods.” See Subsection 2
194.034(5), F.S. 3
4
In administrative reviews, Boards and special magistrates are not authorized to consider 5
any evidence except evidence properly presented by the parties and properly admitted 6
into the record for consideration. See Rule 12D-9.025(4)(a), F.A.C. 7
8
In addition to admitted evidence, Boards and special magistrates are authorized to 9
consider only the following items in administrative reviews: 10
11
1. Legal advice from the Board legal counsel; 12
13
2. Information contained or referenced in the Department’s Uniform Policies and 14
Procedures Manual and Accompanying Documents; 15
16
3. Information contained or referenced in the Department’s training for value 17
adjustment boards and special magistrates; and 18
19
4. Professional texts that pertain only to professionally accepted appraisal practices 20
that are not inconsistent with Florida law. 21
22
23
The Eight Factors of Just Valuation 24
Section 193.011, Florida Statutes, provides the following on just valuation. 25
“Factors to consider in deriving just valuation. – In arriving at just valuation as 26
required under s. 4, Art. VII of the State Constitution, the property appraiser shall take 27
into consideration the following factors: 28
29
(1) The present cash value of the property, which is the amount a willing purchaser 30
would pay a willing seller, exclusive of reasonable fees and costs of purchase, in cash 31
or the immediate equivalent thereof in a transaction at arm's length; 32
33
(2) The highest and best use to which the property can be expec ted to be put in the 34
immediate future and the present use of the property, taking into consideration the 35
legally permissible use of the property, including any applicable judicial limitation, local 36
or state land use regulation, or historic preservation ord inance, and any zoning 37
changes, concurrency requirements, and permits necessary to achieve the highest and 38
best use, and considering any moratorium imposed by executive order, law, ordinance, 39
regulation, resolution, or proclamation adopted by any governmen tal body or agency or 40
the Governor when the moratorium or judicial limitation prohibits or restricts the 41
development or improvement of property as otherwise authorized by applicable law. 42
The applicable governmental body or agency or the Governor shall noti fy the property 43
appraiser in writing of any executive order, ordinance, regulation, resolution, or 44
proclamation it adopts imposing any such limitation, regulation, or moratorium; 45
46
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(3) The location of said property; 1
2
(4) The quantity or size of said property; 3
4
(5) The cost of said property and the present replacement value of any improvements 5
thereon; 6
7
(6) The condition of said property; 8
9
(7) The income from said property; and 10
11
(8) The net proceeds of the sale of the property, as received by the seller, after 12
deduction of all of the usual and reasonable fees and costs of the sale, including the 13
costs and expenses of financing, and allowance for unconventional or a typical terms of 14
financing arrangements. When the net proceeds of the sale of an y property are utilized, 15
directly or indirectly, in the determination of just valuation of realty of the sold parcel or 16
any other parcel under the provisions of this section, the property appraiser, for the 17
purposes of such determination, shall exclude any portion of such net proceeds 18
attributable to payments for household furnishings or other items of personal property.” 19
20
Proper Consideration of the Just Valuation Factors 21
Section 193.011, Florida Statutes, states that property appraisers must consider the 22
factors of just valuation. 23
24
Florida court decisions have used the terms lawfully, properly, duly, and carefully to 25
describe the standard of care required of property appr aisers in considering each of the 26
eight factors. 27
28
* For example, one court decision used the terms lawfully and properly to describe the 29
property appraiser’s standard of care. See Mazourek v. Wal-Mart Stores, 831 So.2d 85 30
(Fla. 2002). 31
32
* Another court decision used the term duly to describe the property appraiser’s 33
standard of care. See Atlantic International Investment Corp. v. Turner, 383 So.2d 919 34
(Fla. 5th DCA 1980). 35
36
* Other court decisions and the Florida Attorney General have used the terms 37
carefully and careful to describe the property appraiser’s standard of care for 38
considering each of the eight factors. 39
40
* The property appraiser is required to carefully consider each factor and give each 41
factor the weight justified by the facts, but is not requ ired to give each factor equal 42
weight. See Lanier v. Walt Disney World Co., 316 So.2d 59 (Fla. 4th DCA 1975), and 43
Daniel v. Canterbury Towers, Inc., 462 So.2d 497 (Fla. 2nd DCA 1985). Also, see Florida 44
Attorney General’s Opinion AGO 77-106, September 29, 1977. 45
46
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* ”Just value is to be determined by giving careful consideration to each of the factors 1
contained in s. 193.011 and by giving such weight to a factor a s a particular factual 2
situation may justify.” See Florida Attorney General’s Opinion AGO 77-106, September 3
29, 1977. 4
5
After lawfully considering the factors, the property appraiser may discard entirely any 6
factor that is not probative (indicative) of just value under the circumstances, as long as 7
the appraisal methodology used complies with professionally accepted apprais al 8
practices. See Mazourek v. Wal-Mart Stores, 831 So.2d 85 (Fla. 2002), and Section 194.301, 9
F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). Also, see In re 10
Steffen, 342 B.R. 861 (Bkrtcy. M.D. Fla. 2006). 11
12
However, the property appraiser cannot simply “out of hand” reject, without careful 13
consideration, a just valuation factor as being inappropriate in a particular case. See 14
Daniel v. Canterbury Towers, Inc., 462 So.2d 497 (Fla. 2nd DCA 1985). 15
16
In administrative reviews, the property appraiser is responsible for proving by a 17
preponderance of the evidence that he or she complied with Section 193.011, F.S., by 18
properly considering each of the eight factors in developing original just valuations. See 19
Subsection 194.301(1), F.S. 20
21
If the property appraiser does not prove by a preponderance of the evidence that he or 22
she properly considered each of the eight factors in developing the just value 23
assessment, the Board or special magistrate must conclude that the property appraiser 24
did not establish a presumption of correctness for the assessment. See Subsection 25
194.301(1), F.S. 26
27
28
Standard of Proof for Administrative Reviews 29
In administrative reviews, Boards or special magistrates must consider admitted 30
evidence and then compare the weight of the evidence to a “standard of proof” to make 31
a determination on an issue under review. 32
33
Generally, the term “evidence” means something (including testimony, documents, and 34
tangible objects) that tends to prove or disprove the existence of a disput ed fact. See 35
Black’s Law Dictionary, Eighth Edition, page 595. 36
37
“Standard of proof” means the level of proof needed by the Board or special magistrate 38
to reach a particular conclusion. See Rule 12D-9.027(5), F.A.C. 39
40
The standard of proof that applies in administrative reviews is called “preponderance of 41
the evidence,” which means “greater weight of the evidence.” See Rule 12D-9.027(5), 42
F.A.C. 43
44
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Also, the Florida Supreme Court has defined “preponderance of the evidence” as 1
“greater weight of the evidence” or evidence that “more likely than not” tends to prove a 2
certain proposition. See Gross v. Lyons, 763 So.2d 276 (Fla. 2000). 3
4
“Greater weight of the evidence” means the more persuasive and convincing force and 5
effect of the entire evidence in the case. See Florida Standard Civil Jury Instructions, 6
approved for publication by the Florida Supreme Court. 7
8
The Board or special magistrate must determine whether the admitted evidence is 9
sufficiently relevant and credible to reach the “preponderance of the evi dence” standard 10
of proof. 11
12
This standard of proof is the scale by which the Board or special magistrate measures 13
the weight (relevance and credibility) of the admitted evidence in making a 14
determination. 15
16
A higher standard of proof called “clear and convin cing evidence” no longer applies in 17
the administrative review of assessments and must not be used by Boards or special 18
magistrates. See Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida 19
(House Bill 521). 20
21
In no case shall the taxpayer be required to prove that the property appraiser’s 22
assessment is not supported by any reasonable hypothesis of a legal assessment. See 23
Subsection 194.3015(1), F.S., as created by Chapter 2009-121, Laws of Florida (House Bill 521). 24
25
26
Petitioner Not Required to Present Opinion or Estimate of Value 27
The petitioner is not required to provide an opinion or estimate of just value. 28
29
No provision of law requires the petitioner to present an opinion or estimate of value. 30
31
The Board or special magistrate is not authorized to require a petitioner to provide an 32
opinion or estimate of just value. 33
34
The petitioner has the option of choosing whether to present an opinion or estimate of 35
just value. 36
37
38
Presentation of Evidence by the Parties 39
In a Board or special magistrate hearing, the property appraiser is responsible for 40
presenting relevant and credible evidence in support of his or her determination. See 41
Rule 12D-9.025(3)(a), F.A.C. 42
43
Under Subsection 194.301(1), F.S., in a hearing on just value, the first issue to be 44
considered is whether the property appraiser establishes a presumption of correctness . 45
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* The property appraiser shall present evidence on this issue first. See Rule 12D-1
9.024(7), F.A.C. 2
3
* While the property appraiser is required to present evidence on this issue first, the 4
Board or special magistrate must allow the petitioner a chance to present evidence 5
on this issue before deciding whether the presumption of correctness is established. 6
7
In a Board or special magistrate hearing, the petitioner is responsible for presenting 8
relevant and credible evidence in support of his or her belief that the property 9
appraiser’s determination is incorrect. See Rule 12D-9.025(3)(a), F.A.C. 10
11
If the property appraiser establishes a presu mption of correctness by proving by a 12
preponderance of the evidence that the just value assessment was arrived at by 13
complying with Section 193.011, F.S., and professionally accepted appraisal practices, 14
including mass appraisal standards, if appropriate, the petitioner must prove by a 15
preponderance of the evidence that: 16
17
1. The property appraiser’s just valuation does not represent just value; or 18
19
2. The property appraiser’s just valuation is arbitrarily based on appraisal practices that 20
are different from the appraisal practices generally applied by the property appraiser 21
to comparable property within the same county. See Subsection 194.301(2)(a), F.S., as 22
amended by Chapter 2009-121, Laws of Florida (House Bill 521). 23
24
However, if the property appraiser does not establish a presumption of correctness 25
because he or she did not prove by a preponderance of the evidence that the just 26
valuation was arrived at by complying with Section 193.011, F.S., and professionally 27
accepted appraisal practices, including mass appraisal standards, if appropriate, the 28
Board or special magistrate must take one of the two following actions: 29
30
1. If the record contains competent substantial evidence of just value that cumulatively 31
meets the requirements of Section 193.011, F.S., and professionally accepted 32
appraisal practices, the Board or special magistrate must establish a revised just 33
value; or 34
35
2. If the record lacks such competent substantial evidence, the Board or special 36
magistrate must remand the assessment to the property appraiser with appropriate 37
directions with which the property appraiser must comply. 38
39
40
Evaluation of Evidence by the Board or Special Magistrate 41
Under Rule 12D-9.025(1), F.A.C., as part of administrative reviews, the Board or special 42
magistrate must: 43
44
1. Review the evidence presented by the parties; 45
46
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2. Determine whether the evidence presented is admissible; 1
2
3. Admit the evidence that is admissible; 3
4
4. Identify the evidence presented to indicate that it is admitted or not admitted; and 5
6
5. Consider the admitted evidence. 7
8
The term “admitted evidence” means evidence that has been admitted into the record 9
for consideration by the Board or special magistrate. See Rule 12D-9.025(2)(a), F.A.C. 10
11
“No evidence shall be considered by the board or special magistrate except when 12
presented and admitted during the time scheduled for the petitioner’s hearing, or at a 13
time when the petitioner has been given reasonable notice.” See Rule 12D-9.025(4)(a), 14
F.A.C. 15
16
“If a party submits evidence to the board clerk prior to the hearing, the board or special 17
magistrate shall not review or consider such evidence prior to the hearing.” See Rule 18
12D-9.025(4)(b), F.A.C. 19
20
Rule 12D-9.025(2)(d), F.A.C., contains the following four provisions: 21
22
1. “As the trier of fact, the board or special magistrate may independently rule on the 23
admissibility and use of evidence.” 24
25
2. “If the board or special magistrate has any questions relating to the admissibility and 26
use of evidence, the board or special magistrate should consult with the board legal 27
counsel.” 28
29
3. “The basis for any ruling on admissibility of evidence must be reflected in the 30
record.” 31
32
4. “The special magistrate may delay ruling on the question during the hearing and 33
consult with board legal counsel after the hearing.” 34
35
The Board or special magistrate shall consider the admitted evidence. See Rule 12D-36
9.025(1)(d), F.A.C. 37
38
A property owner generally is qualified, on account of ownership, to testify regarding the 39
just value of his or her property. See In re Steffen, 342 B.R. 861 (Bkrtcy. M.D. Fla. 2006). 40
41
NOTE: More information on the admissibility of evidence is presented in Module 4 of 42
this training. 43
44
45
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Sufficiency of Evidence 1
When applied to evidence, the term “sufficient” is a test of adequacy. See Rule 12D-2
9.027(6), F.A.C. 3
4
Sufficient evidence is admitted evidence that has enough overall weight, in terms of 5
relevance and credibility, to legally justify a particular conclusio n. See Rule 12D-9.027(6), 6
F.A.C. 7
8
The Florida Supreme Court stated the following regarding sufficient evidence: 9
“Sufficiency is a test of adequacy. Sufficient evidence is such evidence, in character, 10
weight, or amount, as will legally justify the judicia l or official action demanded.” See 11
Tibbs v. State, 397 So.2d 1120 (Fla. 1981). Also, see Moore v. State, 800 So.2d 747 (Fla. 5th 12
DCA 2001). 13
14
A particular conclusion is justified when the overall weight of the admitted evidence 15
meets the standard of proof that applies to the issue under consideration. See Rule 12D-16
9.027(6), F.A.C. 17
18
The Board or special magistrate must consider the admitted evidence and determine 19
whether it is sufficiently relevant and credible to reach the “preponderance of the 20
evidence” standard of proof explained previously. See Rules 12D-9.025(1)(d), 12D-21
9.027(5), and 12D-9.027(6), F.A.C. 22
23
Rule 12D-9.027(6), F.A.C., states the following in pertinent part: “In determining 24
whether the admitted evidence is sufficient for a particular issue under consideration, 25
the board or special magistrate shall: 26
27
(a) Consider the relevance and credibility of the admitted evidence as a whole, 28
regardless of which party presented the evidence; 29
30
(b) Determine the relevance and credibility, or overall weight, of the evidence; 31
32
(c) Compare the overall weight of the evidence to the standard of proof; 33
34
(d) Determine whether the overall weight of the evidence is sufficient to reach the 35
standard of proof; and 36
37
(e) Produce a conclusion of law based on the determination of whether the overall 38
weight of the evidence has reached the standard of proof.” 39
40
For administrative reviews of just valuations, “relevant evidence” is evidence that is 41
reasonably related, directly or indirectly, to the statutory criteria that apply to the just 42
valuation of the petitioned property. See Rule 12D-9.025(2)(b), F.A.C. 43
44
* This description means the evidence meets or exceeds a minimum level of 45
relevance necessary to be admitted for consideration, but does not necessarily 46
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mean that the evidence has sufficient relevance to legally justify a particular 1
conclusion. See Rule 12D-9.025(2)(b), F.A.C. 2
3
In evaluating the relevance of evidence, the Board or special magistrate must consider, 4
as of the January 1 assessment date, how well the evidence relates to the petitioned 5
property and to the statutory criteria found in Section 193.011, F.S., and in Section 6
194.301, F.S. 7
8
For administrative reviews of just valuations, “credible evidence” means evidence that is 9
worthy of belief (believable). See Black’s Law Dictionary, Eighth Edition, page 596. 10
11
NOTE: More information on evaluating the relevance and credibility of evidence is 12
presented in Module 11 of this training. 13
14
By itself, the property record card is not sufficient evidence for establishing a 15
presumption of correctness for the assessment under Subsection 194.301(1), F.S. 16
17
Materials describing the general appraisal practices of the property appraiser alone, 18
without discussing how those practices were applied to the assessment at issue, are not 19
sufficient to establish a presumption of correctness for the assessment. See Property Tax 20
Informational Bulletin PTO 09-29. 21
22
The approval of an assessment roll by the Department of Revenue is not evidence that 23
a particular assessment was made in compliance with statutory requirements and is not 24
sufficient to establish a presumption of correctness for the assessment. See Property Tax 25
Informational Bulletin PTO 09-29. 26
27
28
Requirements for Establishing a Presumption of Correctness 29
A presumption of correctness for the assessment is not established unless the property 30
appraiser proves by a preponderance of the evidence that the property appraiser’s just 31
valuation methodology complies with Section 193.011, F.S., and professionally 32
accepted appraisal practices, including mass appraisal standards, if appropriate. See 33
Rule 12D-9.027(2)(a), F.A.C. 34
35
A presumption of correctness for the assessment is established only when the property 36
appraiser proves by a preponde rance of the evidence that the property appraiser’s just 37
valuation methodology complies with Section 193.011, F.S., and professionally 38
accepted appraisal practices, including mass appraisal standards, if appropriate. 39
40
41
Requirements for Overcoming a Presumption of Correctness 42
If the property appraiser establishes a presumption of correctness, the petitioner can 43
overcome the presumption of correctness by proving by a preponderance of the 44
evidence one of the following: 45
46
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1. The property appraiser’s just valuation does not represent just value; or 1
2
2. The property appraiser’s just valuation is arbitrarily based on appraisal practices that 3
are different from the appraisal practices generally applied by the property appraiser 4
to comparable property within the same county. See Subsection 194.301(2)(a), F.S., as 5
amended by Chapter 2009-121, Laws of Florida (House Bill 521). 6
7
If the property appraiser establishes a presumption of correctness and the petitioner 8
does not overcome the presumption of correctness as described above, the 9
assessment stands. 10
11
12
Establishing a Revised Just Value or Remanding the Assessment 13
If the property appraiser does not establish a presumption of correctness for the 14
assessment, or if the petitioner overcomes the presumption of correc tness, the Board or 15
special magistrate must take one of the two following actions: 16
17
1. If the record contains competent substantial evidence of just value that cumulatively 18
meets the requirements of Section 193.011, F.S., and professionally accepted 19
appraisal practices, the Board or special magistrate must establish a revised just 20
value; or 21
22
2. If the record lacks such competent substantial evidence, the Board or special 23
magistrate must remand the assessment to the property appraiser with appropriate 24
directions with which the property appraiser must comply. 25
26
NOTE: Information on the procedural requirements for remanded assessments is 27
presented in Module 5 of this training. 28
29
30
Competent Substantial Evidence for Establishing a Revised Just 31
Value 32
Competent substantial evidence for establishing a revised just value, as part of an 33
administrative review under Chapter 194, Parts 1 and 3, F.S., means evidence that: 34
35
1. Cumulatively meets the criteria of Section 193.011, F.S., and professionally 36
accepted appraisal practices; 37
38
2. Tends to prove (is probative of) just value as of January 1 of the assessment year 39
under review; 40
41
3. Is sufficiently relevant and credible to be accepted as adequate to support (legally 42
justify) the conclusion reached; and 43
44
4. Otherwise meets all requirements of law. 45
46
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1
Establishment of Revised Just Values in Administrative Reviews 2
The Board or special magistrate is required to establish a revised just value under either 3
of the two following conditions: 4
5
1. The property appraiser does not establish a presumption of correctness for the 6
assessment and the hearing record contains competent substantial evidence for 7
establishing a revised just value as described above; or 8
9
2. The petitioner overcomes a presumption of correctness estab lished by the property 10
appraiser and the hearing record contains competent substantial evidence for 11
establishing a revised just value as described above. 12
13
Within their scope of authority, the Board or special magistrate shall establish a revised 14
just value based upon the competent substantial evidence for establishing a revised just 15
value. See Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House 16
Bill 521). 17
18
Prior to 2009 and the adoption of House Bill 521, Section 194.301, F.S., provided that 19
the Board may establish the assessment when authorized. 20
21
However, the current statute, effective for administrative reviews beginning in 2009, 22
specifically requires that the Board shall establish the just value when authorized by 23
law. See Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 24
521). 25
26
“In establishing a revised just value, the board or special magistrate is not restricted to 27
any specific value offered by one of the parties.” See Rule 12D-9.027(2)(b)3.a., F.A.C. 28
29
In establishing a revised just value when required by law, Boards and special 30
magistrates are not required, and are not authorized, to complete an independent 31
valuation approach. 32
33
The establishment of a revised just value does not require the evidence necessary to 34
complete an independent valuation approach. 35
36
The establishment of a revised just value only requires enough evidence to legally 37
justify making an adjustment to the property appraiser’s original just valuation . 38
39
In establishing a revised just value when required by law, Boards and special 40
magistrates are authorized to make the necessary calculations. 41
42
43
Legal Limitations on Administrative Reviews 44
No evidence shall be considered by the Board or special magistrate except when 45
presented during the time scheduled for the petitioner’s hearing or at a time when the 46
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petitioner has been given reasonable notice. See Subsection 194.034(1)(c), F.S. Also, see 1
Rule 12D-9.025(4)(a), F.A.C. 2
3
Other provisions of law address the responsibilities of petitioners and property 4
appraisers that may affect the review and consideration of evidence at a hearing. 5
6
* The Board or special magistrate must consult with the Board legal counsel on any 7
questions about the review and consideration of evidence. 8
9
In administrative reviews, the Board or special magistrate shall not consider the tax 10
consequences of the valuation of a specific property. See Rule 12D-10.003(1), F.A.C. 11
12
The Board or special magistrate has no power to grant relief by adjusting the value of a 13
property on the basis of hardship of a particular taxpayer. See Rule 12D-10.003(1), F.A.C. 14
15
A just valuation challenge must stand or fall on its own validity, unconnected with the 16
just value of any prior or subsequent year . See Keith Investments, Inc. v. James, 220 So.2d 17
695 (Fla. 4th DCA 1969); Also, see Dade County v. Tropical Park, Inc., 251 So.2d 551 (Fla. 3rd 18
DCA 1971). 19
20
The prior year’s just value is not competent evidence of just value in the current year, 21
even when there is no evidence showing a change in circumstances between the two 22
dates of assessment. See Simpson v. Merrill, 234 So.2d 350 (Fla. 1970). 23
24
25
Sequence of General Procedural Steps 26
This section sets forth below a sequence of general procedural steps for Boards and 27
special magistrates to follow in administrative reviews of just valuations in order to fulfill 28
the procedural requirements of Section 1 94.301, F.S., and Rule 12D-9.027(2), F.A.C. 29
30
This sequence of steps applies to: the consideration of evidence, the development of 31
conclusions, and the production of written decisions. See Rule 12D-9.027(1), F.A.C. 32
33
“The board or special magistrate shall n ot be required to make, at any time during a 34
hearing, any oral or written finding, conclusion, decision, or reason for decision.” See 35
Rule 12D-9.025(9), F.A.C. 36
37
“The board or special magistrate has the discretion to determine whether to make such 38
determinations during a hearing or to consider the petition and evidence further after the 39
hearing and then make such determinations.” See Rule 12D-9.025(9), F.A.C. 40
41
In following this sequence of steps, Boards or special magistrates must also meet the 42
requirements of Rule 12D-9.025(1), F.A.C., which are the following: 43
44
* Review the evidence presented by the parties; 45
46
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* Determine whether the evidence presented is admissible; 1
2
* Admit the evidence that is admissible; and 3
4
* Identify the evidence presented to indicate that it is admitted or not admitted. 5
6
The sequence of general procedural steps presented below is based on Rule 12D -7
9.027(2), F.A.C. The sequence of general procedural steps is as follows. 8
9
1. Consider the admitted evidence presented by the parties. 10
11
2. Identify and consider the essential characteristics of the petitioned property based on 12
the admitted evidence and the factors in Section 193.011, F.S. 13
14
3. Identify the appraisal methodology used by the property appraiser in developing his 15
or her just valuation of the petitioned property, and consider this appraisal 16
methodology in light of the essential characteristics of the petitioned property. 17
18
4. Determine whether the admitted evidence proves by a preponderance of the 19
evidence that the property appraiser’s methodology complies with Section 193.011, 20
F.S., and professionally accepted appraisal practices, including mass appraisal 21
standards, if appropriate. 22
23
5. Determine whether the property appraiser’s appraisal methodology is appropriate 24
and whether the property appraiser established a presumption of correctness for the 25
assessment. 26
27
a) The property appraiser’s just valuation methodology is not appropriate and a 28
presumption of correctness is not established unless the admitted evidence 29
proves by a preponderance of the evidence that the property appraiser’s just 30
valuation methodology complies with Section 193.011, F.S., and professionally 31
accepted appraisal practices, including mass appraisal standards, if appropriate. 32
33
b) The property appraiser’s just valuation methodology is appropriate and the 34
presumption of correctness is established on ly when the admitted evidence 35
proves by a preponderance of the evidence that the property appraiser’s just 36
valuation methodology complies with Section 193.011, F.S., and professionally 37
accepted appraisal practices, including mass appraisal standards, if appropriate. 38
39
6. If the Board or special magistrate determines that a presumption of correctness is 40
established, the Board or special magistrate must then determine whether the 41
admitted evidence proves by a preponderance of the evidence that: 42
43
a) The property appraiser’s just valuation does not represent just value; or 44
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b) The property appraiser’s just valuation is arbitrarily based on appraisal practices 1
that are different from the appraisal practices generally applied by the property 2
appraiser to comparable property within the same county. In making this 3
determination, the Board or special magistrate may consider any admitted 4
evidence regarding assessments among comparable properties within 5
homogeneous areas or neighborhoods. 6
7
7. If the Board or special magistrate determines that one or both of the conditions 8
specified under Step 6 exist, the presumption of correctness is overcome. 9
10
8. If the property appraiser does not establish a presumption of correctness, or if the 11
presumption of correctness is overcome, the Board or special magistrate must 12
determine whether the hearing record contains competent, substantial evidence of 13
just value which cumulatively meets the criteria of Section 193.011, F.S., and 14
professionally accepted appraisal practices. 15
16
a) If the hearing record contains competent, substantial evidence for establishing a 17
revised just value, the Board or an appraiser special magistrate must establish a 18
revised just value based only upon such evidence. In establishing a revised just 19
value, the Board or special magistrate is not restricted to any specific value 20
offered by one of the parties. 21
22
b) If the hearing record lacks competent, substantial evidence for establishing a 23
revised just value, the Board or special magistrate must remand the assessme nt 24
to the property appraiser with appropriate directions for establishing just value. 25
The property appraiser is required to follow these directions. 26
27
9. If the property appraiser establishes a presumption of correctness as described in 28
Step 5 above and that presumption of correctness is not overcome as described in 29
Step 6 above, the assessment stands. 30
31
32
Chronological Overview of Subsection 193.011(8), F.S. 33
In 1963, the first seven just valuation factors were enacted, effective January 1, 1964. 34
See Chapter 63-250, Laws of Florida, creating Section 193.021, F.S., which was re-numbered in 35
1969 as Section 193.011, F.S., by Chapter 69-55, Laws of Florida. 36
37
In 1965, the Florida Supreme Court held that just value was synonymous with fair 38
market value and defined fair market value as: “the amount a purchaser willing but not 39
obliged to buy, would pay to one willing but not obliged to sell.” See Walter v. Schuler, 176 40
So.2d 81 (Fla. 1965). 41
42
NOTE: The eighth just valuation criterion did not exist at the time of Walter v. Schuler. 43
The Legislature can override decisional law. See Dept. of Environmental Protection v. 44
Contractpoint Florida Parks, 986 So.2d 1260, 1269 (Fla. 2008). 45
46
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Then, in 1967, the Legislature enacted the first part of the eighth criterion as subse ction 1
193.021(8), F.S., in the form presented below. See Chapter 67-167, Laws of Florida, 2
creating Subsection 193.021(8), F.S., which was re-numbered in 1969 as Subsection 193.011(8), 3
F.S., by Chapter 69-55, Laws of Florida. 4
5
(8) The net proceeds of the sale of the property, as received by the seller, after 6
deduction of all of the usual and reasonable fees and costs of the sale, including the 7
costs and expenses of financing. 8
9
In 1977, the language underlined below was added to subsection 193.011(8), F.S. See 10
Chapter 67-167, Laws of Florida, creating Subsection 193.021(8), F.S., which was re-numbered 11
in 1969 as Subsection 193.011(8), F.S., by Chapter 69-55, Laws of Florida. 12
13
(8) The net proceeds of the sale of the property, as received by the seller, after 14
deduction of all of the usual and reasonable fees and costs of the sale, including the 15
costs and expenses of financing, and allowance for unconventional or atypical terms 16
of financing arrangements. 17
18
In 1979, the language underlined below was added to subsection 193.011(8), F.S. See 19
Chapter 79-334, Laws of Florida. 20
21
(8) The net proceeds of the sale of the property, as received by the seller, after 22
deduction of all of the usual and reasonable fees and costs of the sale, including the 23
costs and expenses of financing, and allowance for unconventional or atypical terms 24
of financing arrangements. When the net proceeds of the sale of any property are 25
utilized, directly or indirectly, in the determination of just valuation of realty of the 26
sold parcel or any other parcel under the provisions of this section, the property 27
appraiser, for the purposes of such determination, shall exclude any portion of such 28
net proceeds attributable to payments for household furnishings or other items of 29
personal property. 30
31
Through 2018, no further amendments have been made to subsection 193.011(8), F.S. 32
33
In 1984, when reviewing a 1980 assessment, a federal appellate court found that just 34
value as determined under subsection 193.011(8), F.S., does not represent full market 35
value. See Louisville and Nashville Railroad Co. v. Department of Revenue, State of Fla., 736 36
F.2d 1495 (11th Cir.(Fla.) July 24, 1984). 37
38
In 1982, the Legislature enacted subsection 192.001(18), F.S. See Chapter 82-388, Laws 39
of Florida. 40
41
* This statute provides minimum reporting standards for a property appraiser’s 42
complete submission of an assessment roll to the Department of Revenue. These 43
standards include the following for adjustments made by the property appraiser 44
under subsection 193.011(8), F.S: 45
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“(18) ‘Complete submission of the roll’ includes, but is not necessarily limited 1
to,…an accurate tabular summary by property class of any adjustments made to 2
recorded selling prices or fair market value in arriving at assessed value, as 3
prescribed by department rule;…” (underlined emphasis added). 4
5
Rule 12D-8.002(4), F.A.C., which implements subsection 192.001(18), F.S., was 6
adopted effective September 30, 1982. 7
8
* Rule 12D-8.002(4), F.A.C., provides the following requirement for submittals of 9
preliminary assessment rolls to the Department: 10
11
“(4) Accompanying the assessment roll submitted to the Executive Director shall be, 12
on a form provided by the Department, an accurate tabular summary by property 13
class of any adjustments made to recorded selling prices or fair market value in 14
arriving at assessed value. Complete, clear, and accurate documentation for each 15
adjustment under section 193.011(8), F.S., exceeding fifteen percent shall 16
accompany this summary detailing how that percentage adjustment was calculated. 17
This documentation shall include individual data for all sales used and a narrative on 18
the procedures used in the study.” (underlined emphasis added) 19
20
It is important to note that this rule does not, in any way, indicate that property 21
appraisers are required to apply any particular eighth criterion adjustment. Though not 22
required by law, in their actual practice, property appraisers do make across-the-board, 23
eighth criterion adjustments in arriving at their annual just values of real property. 24
25
* The statement in the rule regarding 15 percent is merely a reporting threshold that, if 26
exceeded, would require a documented research study to justify the repo rted 27
adjustment. 28
29
To facilitate annual reporting of eighth criterion adjustments in accordance with 30
subsection 192.001(18), F.S., and Rule 12D-8.002(4), F.A.C., the Department of 31
Revenue developed Form DR-493 for each property appraiser to use. 32
33
* Each year, using Form DR-493, property appraisers are required to report to the 34
Department the adjustments made by the property appraiser to recorded selling 35
prices or fair market value for each parcel within each of the 18 real property use 36
code groups listed on the form. 37
38
* The Forms DR-493 that are completed and certified annually by each Property 39
Appraiser are available by clicking on “Assessment Roll Evaluation and Approval” at 40
the following link: 41
http://floridarevenue.com/property/Pages/DataPortal.aspx 42
43
Operation of the Eighth Criterion Under Florida Law 44
Subsection 193.011(8), F.S., requires proper consideration of the “net proceeds of 45
sale,” regardless of whether an actual sale o f the property has occurred. See Turner v. 46
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Tokai Financial Services, Inc., 767 So.2d 494 (Fla. 2nd DCA 2000) review denied 780 So.2d 1
916 (Fla. 2001). 2
3
* However, the statute does not require the property appraiser to select the value 4
generated by the application of Subsection 193.011(8), F.S., and apply it in a blanket 5
fashion to all assessments. See Turner v. Tokai Financial Services, Inc., 767 So.2d 494 6
(Fla. 2nd DCA 2000) review denied 780 So.2d 916 (Fla. 2001). 7
8
There is no legal requirement that the net proceeds of sale constitute the deciding factor 9
in just valuation. See In re Steffen, 342 B.R. 861 (Bkrtcy. M.D. Fla. 2006). 10
11
The use of net sales price alone, without considering and weighing the other factors, is 12
legally insufficient to constitute compliance with the mandate of Section 193.011, F.S. 13
See Florida Attorney General’s Opinion AGO 77-106, September 29, 1977. 14
15
At least two court decisions have approved an adjustment for the eighth criterion in just 16
valuations. See Roden v. GAC Liquidating Trust, 462 So.2d 92 (Fla. 2nd DCA 1985). Also, 17
see Southern Bell Telephone and Telegraph Co. v. Broward County, 665 So.2d 272 (Fla. 4th 18
DCA 1995) review denied 673 So.2d 30 (Fla. 1996) , stating the following in an example: 19
“Subtracting the $15,000 (cost of sale) from the $100,000 selling price leaves a net value of 20
$85,000. We find no impropriety in using this approach to valuation.” 21
22
Under Florida law, property appraisers are authorized, but are not required, to make 23
eighth criterion adjustments in real property just valuations. 24
25
* Though not required by law, in arriving at their annual just values property 26
appraisers make across-the-board adjustments to recorded selling prices or fair 27
market value of real property to reflect their consideration of subsection 193.011(8), 28
F.S. See Department of Revenue Form DR-493 reported each year. 29
30
At least two court decisions have noted the practice of making across-the-board 31
adjustments to real property for the eighth criterion. See Louisville and Nashville Railroad 32
Co. v. Department of Revenue, State of Fla., 736 F.2d 1495 (11th Cir.(Fla.) July 24, 1984), and 33
Southern Bell Telephone and Telegraph Co. v. Broward County, 665 So.2d 272 (Fla. 4th DCA 34
1995) review denied 673 So.2d 30 (Fla. 1996). 35
36
Each year, property appraisers are required to lawfully report to the Department of 37
Revenue the lawful adjustments the property appraiser made to recorded selling prices 38
or fair market value of real property in consideration of subsection 193.011(8), F.S. See 39
Subsection 192.001(18), F.S.; Rule 12D-8.002(4), F.A.C.; and Form DR-493 reported each year. 40
41
Property appraisers report these adjustment s using Form DR-493, and are required to 42
report the adjustments made to recorded selling prices or fair market values within each 43
of the real property use code groups listed on the form. 44
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* The property appraiser lawfully making and reporting these adjust ments is a 1
professionally accepted appraisal practice under section 194.301, F.S. 2
3
* See Forms DR-493 that are certified and reported by property appraisers each year, 4
available by clicking on “Assessment Roll Evaluation and Approval” at the following 5
link: 6
http://floridarevenue.com/property/Pages/DataPortal.aspx 7
8
The property appraiser is responsible for lawfully d etermining whether adjustments for 9
the eighth factor are necessary for just valuation and is responsible for lawfully 10
determining and reporting the amount of the adjustments made. 11
12
The Department of Revenue does not determine whether the property appraise r should 13
make adjustments in consideration of subsection 193.011(8), F.S., and does not 14
determine the amount of any lawful adjustments made by the property appraiser. 15
16
The Department administers a reporting threshold that requires justifying research, 17
data, analysis, and documentation from the property appraiser under certain conditions. 18
See Rule 12D-8.002(4), F.A.C. 19
20
Other Examples of Reporting Across -the-Board Eighth Criterion Adjustments 21
An example of an actual reported practice of making across -the-board, eighth criterion 22
adjustments is contained in a county property appraiser’s 2010 Mass Appraisal Report 23
(authored by Tim Wilmath, MAI, Director of Valuation). 24
25
* This 2010 Mass Appraisal Report was presented as evidence at Board hearings. 26
27
* Below are excerpts from this report explaining how across-the-board, eighth criterion 28
adjustments are made to all property without regard to whether a property was sold 29
and without regard to which valuation approach or technique was used. 30
31
“The property appraiser considers the 8th criterion by adjusting all sale prices 32
downward by 15% to reflect costs of sale. This downward adjustment is made before 33
the sales are used to value the population of properties.” 34
35
“Each year, the property appraiser's office submits Form DR -493 to the Department 36
of Revenue, indicating the costs of sale adjustments that were made to sale prices. 37
As indicated below, the…County Property Appraiser's office adjusts recorded sale 38
prices by 15% in arriving at assessed values.” 39
40
“In the cost/market hybrid approach, the costs of sale adjustment is applied by 41
deducting 15% from sale prices before calculating the appropriate base rate. For 42
example, after deducting land value and extra feature value, the contributory value 43
of an average quality single family home based on 4th quarter sales, is $54.50 per 44
square foot. Deducting 15% results in a base rate for single family homes of $46.00 45
per square foot (rounded). This same exercise is conducted for every property type. 46
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Once all base rate adjustments have been made, a review of sales ratios is 1
conducted to ensure the assessments are at or below 85% of sale prices.” 2
3
“A more common approach to deducting the 15% costs of sale, is to apply rates and 4
factors that achieve an assessment ratio of 85% or less. By ensuring that 5
assessments are at or below 85% of sales prices, the 15% costs of sale adjustment 6
is effectively factored into assessments. When there are no sales of a given property 7
type for a given tax year, the rates extracted from Marshall Valuation Service are 8
adjusted to reflect the 15% costs of sale. For all property types, whether sales exist 9
or not, rates are adjusted to reflect the 15% costs of sale.” 10
11
“For land valuation, the goal is a land assessment to vacant sale ratio of 85% or 12
less. When few or even no vacant land sales exist, ratios are reviewed to ensure the 13
estimated land value for any given neighborhood results in an improved 14
assessment-to-sale ratio of 85% or less.” 15
16
“In the sales comparison approach, sale prices are adjusted by 15% before 17
adjustments for various factors are applied. This adjustment is evident in the screen 18
shot below.” 19
20
“The income models created by our office are designed to arrive a t values that are 21
approximately 85% or less of gross sale prices of similar properties.” 22
23
“For all property types, the property appraiser strives to achieve assessed values 24
that are at or below 15% of the prior year's selling prices. This is evident in the graph 25
below that illustrates the difference between assessments and selling prices over the 26
past 6 years.” 27
28
In another example of an actual reported practice, a document produced in 2011 by 29
another Florida property appraiser contains the following description of how his office 30
applies across-the-board, eighth criterion adjustments in all three approaches to just 31
valuation of all real property, without regard to whether the property was sold. 32
33
“In the Office of the…County Property Appraiser, all recorded sales of real property 34
are reduced by 15% to reflect the seller’s typical “costs of sale.” Thus, only 85% of 35
the recorded sales price is recognized by the Property Appraiser. This adjusted 36
sales prices (reflecting the seller’s “net proceeds”) are then entered into the Property 37
Appraiser’s Computer Assisted Mass Appraisal (CAMA) program, along with other 38
data pertaining to the remaining seven statutory criteria enumerated in section 39
193.011, Florida Statutes. From this mass compilati on of data involving thousands of 40
entries, the Property Appraiser’s computer system generates a market value 41
assessment for the particular kind of property. This is how value indications of real 42
property are developed. The CAMA system, therefore, determine s a real property 43
assessment which is based upon the consideration and use, where appropriate, of 44
all eight factors and complies with the requirements of §193.011 .” 45
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“The CAMA-generated assessment is neither a sales comparison approach to 1
determining value nor an income capitalization approach to value nor a cost less 2
depreciation approach to value. Rather, it is a hybrid of all three appraisal methods 3
in which the eighth criteria is properly considered and used when deriving just 4
value.” 5
6
7
The Eighth Criterion in Real Property Administrative Reviews 8
The eighth criterion is one of the statutory criteria in section 193.011, F.S., which 9
Boards and special magistrates must properly consider in administrative reviews of real 10
property just valuations under section 194.301, F.S., and Rule 12D-9.027(2), F.A.C. 11
12
Boards and special magistrates should determine whether the property appraiser has 13
reported to the Department an eighth criterion adjustment for the petitioned real 14
property type and whether the Department has accepted the reported adjustment. 15
16
* This determination can be made by reviewing the Form DR-493 submitted annually 17
by each property appraiser and accepted by the Department. 18
19
* These documents are available by clicking on “Assessment Roll Evaluation and 20
Approval” at the following link: 21
http://floridarevenue.com/property/Pages/DataPortal.aspx 22
23
* The property appraiser lawfully making and reporting these adjustments is a 24
professionally accepted appraisal practice under section 194.301, F.S. 25
26
In determining whether the property appraiser’s just valuation complies with section 27
193.011, F.S., and professionally accepted appraisal practices, the Board or special 28
magistrate is authorized to ask related questions to enable the parties to provide the 29
evidence necessary for making this determination. See Rule 12D-9.025(7)(b), F.A.C. 30
31
* To help determine how the property appraiser properly considered the eighth 32
criterion in developing the just value presented by the property appraiser, the Board 33
or special magistrate should ask questions regarding the eighth criterion 34
adjustments reported on the Form DR-493. 35
36
* The Board or special magistrate should also ask questions regarding whether the 37
property appraiser applied, in arriving at his or her just value for the petitioned 38
property, the same eighth criterion adjustment reported for the subject property 39
use code group on the Form DR-493. 40
41
* If, in arriving at his or her just value for the petitioned property, the property 42
appraiser applied an eighth criterion adjustment that is different from the 43
adjustment that he or she applied to parcels in the subject use code group as 44
reported on the Form DR-493, the Board or special magistrate should consider 45
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whether the appraisal practice applied to the subject property is arbitrary under 1
subparagraph 194.301(2)(a)3., F.S. 2
3
* If the reported and accepted Form DR-493 is not voluntarily presented as evidence, 4
the Board or special magistrate should request a copy of such Form DR-493 from 5
the property appraiser. 6
7
NOTE: Under subsection 194.301(1), F.S., a Board petitioner is entitled to a 8
determination by the Board or special magistrate of the appropriateness of the appraisal 9
methodology used in making the assessment. 10
11
* The just value of property must be determined by an appraisal methodology that 12
complies with the criteria of section 193.011, F.S., and professionally acc epted 13
appraisal practices. 14
15
Professionally accepted appraisal practices are recognized by the Florida Legislature as 16
a statutory just valuation criterion that must be properly considered by Boards and 17
special magistrates in administrative reviews of assessments. See section 194.301, F.S. 18
19
* Florida law now requires Boards and special magistrates to employ both section 20
193.011, F.S., and professionally accepted appraisal practices, in reviewing just 21
valuations including revising just valuations when require d by section 194.301, F.S. 22
23
Boards and special magistrates must avoid using arbitrary appraisal practices as 24
described in subparagraph 194.301(2)(a)3., F.S. 25
26
Below are examples of how the Board or special magistrate should properly consider 27
the eighth criterion in administrative reviews. 28
29
30
Example of When a Board or Special Magistrate Should Make an Eighth Criterion 31
Adjustment to a Just Value Presented by the Property Appraiser 32
1. The Board or special magistrate determines from the accepted Form DR -493 that 33
the property appraiser has reported and the Department has accepted a certain 34
percentage adjustment for the eighth criterion for all real property within t he 35
petitioned property use code group. 36
37
2. The Board or special magistrate determines from the admitted evidence that the 38
property appraiser has not made an eighth criterion adjustment in arriving at the just 39
value presented by the property appraiser for the petitioned property. 40
41
* An example of such evidence would be testimonial or documentary evidence 42
from the property appraiser sufficient to prove that he or she did not make an 43
eighth criterion adjustment in developing the just value presented by the pr operty 44
appraiser for the petitioned property. 45
46
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3. In such case, the Board or special magistrate should make, to the just value 1
presented by the property appraiser for the petitioned property, the same eighth 2
criterion adjustment reported by the property ap praiser for the subject use code 3
group on Form DR-493. 4
5
NOTE: The Board or special magistrate must avoid double-counting this adjustment. 6
In cases where the property appraiser has already made, in arriving at his or her 7
presented just value for the petitioned property, the same eighth criterion adjustment 8
reported on Form DR-493, the Board or special magistrate must not make an 9
additional eighth criterion adjustment to the property appraiser’s presented just value 10
for the petitioned property. 11
12
13
Example of When a Board or Special Magistrate Should NOT Make an Eighth 14
Criterion Adjustment to a Just Value Presented by the Property Appraiser 15
1. The Board or special magistrate determines from the accepted Form DR-493 that 16
the property appraiser has reported and t he Department has accepted a certain 17
percentage adjustment for the eighth criterion for all real property within the 18
petitioned property use code group. 19
20
2. The Board or special magistrate determines from the admitted evidence that the 21
property appraiser has already made, in arriving at the just value presented by the 22
property appraiser for the petitioned property, an eighth criterion adjustment that is 23
equal to the adjustment reported for the subject use code group on Form DR -493. 24
25
* An example of such evidence would be testimonial or documentary evidence 26
from the property appraiser sufficient to prove that he or she did make, in 27
developing the just value presented by the property appraiser for the petitioned 28
property, an eighth criterion adjustment equal to the adjustment reported for the 29
subject use code group on Form DR-493. 30
31
3. The Board or special magistrate must avoid repeating the eighth criterion adjustment 32
that has already been made by the property appraiser in arriving at the just value 33
presented by the property appraiser for the petitioned property. 34
35
36
Considering the Eighth Criterion and Evidence of a Real Property Sale 37
When considering admitted evidence of an arm’s length sale of real property, the Board 38
or special magistrate must determine whether an eighth criterion adjustment should be 39
made to the presented sale price under sections 194.301 and 193.011, F.S. 40
41
* The Board or special magistrate must avoid double -counting this adjustment and not 42
repeat any adjustment amount that has a lready been made to the presented sale 43
price, whether such adjustment amount was made as a dollar amount or a 44
percentage amount. 45
46
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* The Board or special magistrate is not precluded from making an eighth criterion 1
adjustment to the presented, arm’s length s ale price when such adjustment would 2
not result in double-counting and when such adjustment is justified by sufficiently 3
relevant and credible evidence. 4
5
* In considering whether an eighth criterion adjustment to the presented sale price is 6
justified, the Board or special magistrate must first determine the basis or origin of 7
the presented sale price and determine whether the presented sale price has 8
already been adjusted for the eighth criterion. 9
10
* The Board or special magistrate should make, to the presented arm’s length sale 11
price, the eighth criterion adjustment that is justified by sufficiently relevant and 12
credible evidence when such adjustment would n ot result in double-counting. 13
14
* In considering whether an eighth criterion adjustment to the presented sale price is 15
justified, the Board or special magistrate should consider the adjustment lawfully 16
made and lawfully reported by the property appraiser on Form DR-493 for the 17
property use code group of the sold property. 18
19
* If the Board or special magistrate determines that the arm’s length sale price 20
presented by one of the parties is equal to the recorded selling price, the Board or 21
special magistrate should make, to such sale price, a percentage adjustment for the 22
eighth criterion that is equal to the percentage adjustment lawfully made and 23
reported by the property appraiser on Form DR-493 for the property use code group 24
of the sold property. 25
26
* If the presented sale price is determined to be different from the recorded selling 27
price and if an eighth criterion adjustment would not result in double -counting, the 28
Board or special magistrate should make, to such presented sale price, an eighth 29
criterion adjustment that results in consistency with the adjustment lawfully made 30
and reported by the property appraiser on Form DR -493 for the property use code 31
group of the sold property. 32
33
NOTE: If a party believes an overall eighth criterion adjustment greater than that 34
reported on Form DR-493 is justified for a particular sale, the party is responsible for 35
presenting relevant and credible evidence in support of that belief. 36
37
* Then, the Board or special magistrate is responsible for determining, in accordance 38
with law, whether the hearing record contains sufficient evidence to justify a higher 39
overall eighth criterion adjustment to that particular sale price. 40
41
After making an appropriate eighth criterion adjustment, if any, to the presented sale 42
price, the Board or special magistrate should then compare the sold property to the 43
petitioned property in light of the other seven just valuation factors and in accordance 44
with Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House 45
Bill 521). 46
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1
* The information above does not suggest or indicate that a Board or special 2
magistrate should “chase sales,” which in this context would mean to automatically 3
adjust the just value of a petitioned property (that was recently sold) to a number that 4
is equal to its adjusted recorded selling price (after an eighth criterion adjustment) 5
while ignoring the other seven just valuation factors. 6
7
* There is no legal requirement that the net proce eds of sale constitute the deciding 8
factor in just valuation. See In re Steffen, 342 B.R. 861 (Bkrtcy. M.D. Fla. 2006). 9
10
* The use of net sales price alone, without considering and weighing the other factors, 11
is legally insufficient to constitute compliance with the mandate of Section 193.011, 12
F.S. See Florida Attorney General’s Opinion AGO 77-106, September 29, 1977. 13
14
As stated previously in this training module, the just value of any personal property must 15
be excluded from just valuations of real property. 16
17
Applicability of the Eighth Criterion in Other Valuation Approaches 18
Provisions of section 194.301, F.S., require that the just valuation standards of sect ion 19
193.011, F.S., which include the eighth criterion, must be followed regardless of: 20
1) whether the property was sold, 2) the valuation approach used, or 3) whether single 21
property appraisal techniques or mass appraisal techniques were used. 22
23
* None of these three items are supported in current law as just valuation criteria. 24
25
The eighth criterion requires proper consideration of the “net proceeds of sale” of the 26
property, regardless of whether an actual sale of the property has occurred. See Turner 27
v. Tokai Financial Services, Inc., 767 So.2d 494 (Fla. 2nd DCA 2000) review denied 780 So.2d 28
916 (Fla. 2001). 29
30
* When an actual sale of the property has not occurred, the appraiser must, in arriving 31
at just valuation, place himself or herself in the position of the parties to a 32
hypothetical sale. See Southern Bell Telephone and Telegraph Co. v. Dade County, 275 33
So.2d 4 (Fla. 1973) and Turner v. Tokai Financial Services, Inc., 767 So.2d 494 (Fla. 2nd 34
DCA 2000) review denied 780 So.2d 916 (Fla. 2001). 35
36
In long-established and accepted practice, Florida property appraisers routinely apply 37
across-the-board, eighth criterion adjustments in just valuations of real property, without 38
regard to the valuation approach or technique used or whether the property wa s sold. 39
40
* These adjustments are certified and reported annually by property appraisers on 41
Forms DR-493, which are available on the Department’s website at: 42
ftp://sdrftp03.dor.state.fl.us/DR-493_8th_Criterion/ 43
44
* At least two court decisions have noted the practice of making across -the-board 45
adjustments to real property for the eighth criterion. See Louisville and Nashville 46
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Railroad Co. v. Department of Revenue, State of Fla., 736 F.2d 1495 (11th Cir.(Fla.) July 24, 1
1984), and Southern Bell Telephone and Telegraph Co. v. Broward County, 665 So.2d 272 2
(Fla. 4th DCA 1995) review denied 673 So.2d 30 (Fla. 1996). 3
4
To not apply, when otherwise warranted, the eighth criterion in an administr ative review 5
because the property has not been sold, or based on the valuation approach or 6
technique used, would result in an arbitrary appraisal practice under subparagraph 7
194.301(2)(a)3., F.S. 8
9
The case of Bystrom v. Equitable Life Assurance Society, 416 So.2d 1133 (Fla. 3rd DCA 10
1982) has been cited in support of the proposition that the eighth criterion does not 11
apply to valuation approaches other than the sales comparison approach or unless the 12
subject property was sold. 13
14
* Such proposition is not supported by current law and is contrary to the long -15
established, professionally accepted appraisal practice employed by property 16
appraisers of making across-the-board, eighth criterion adjustments without regard 17
to whether the property was sold or to which valuation approach is used. 18
19
* The Bystrom case reviewed a 1978 assessment based on 1977 statutes. Later, in 20
1979, the eighth criterion was amended to add a personal property component. See 21
Chapter 79-334, Laws of Florida. 22
23
* The eighth criterion now requires proper consideration of an adjustment for both 24
costs of sale and any personal property. See subsection 193.011(8), F.S. 25
26
* Bystrom reflects no record evidence of the professionally accepted appraisal 27
practice established long ago by property appraisers of making across-the-board, 28
eighth criterion adjustments to all sales and to all parcels regardless of whether a 29
parcel was sold and regardless of which valuation approach or technique is used. 30
31
* Perhaps Bystrom does not reflect such record evidence because it predates the 32
statutory amendment that now requires the property appraiser to report the 33
across-the-board, eighth criterion adjustments made by the property appraiser 34
regardless of whether the property was sold and regardless of the valuation 35
approach used. See Chapter 82-388, Laws of Florida, creating subsection 192.001(18), 36
F.S., and see Rule 12D-8.002(4), F.A.C. 37
38
* The Bystrom case is clearly distinguishable from current practice and, thus, 39
generally would not apply in administrative reviews of assessments under 40
Chapter 194, Part 3, F.S. 41
42
* The Bystrom holding has been superseded by section 194.301, F.S., which 43
precludes arbitrary just valuation practices and provides that all just valuations must 44
comply with section 193.011, F.S., and professionally accepted appraisal practices. 45
46
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* The law on which the long-established operation of the eighth criterion is based has 1
changed substantially since the assessment date in Bystrom. 2
3
* The facts in Bystrom reveal that the decision was based on “unconventional or 4
atypical financing.” 5
6
* Thus, the holding in Bystrom is limited to only factual situations where an 7
adjustment for “unconventional or atypical financing” is the issue. Accordingly, 8
Bystrom would not preclude a typical eighth criterion adjustment, in any valuation 9
approach, for “usual and reasonable fees and costs of the sale…” 10
11
12
Eighth Criterion Applies in Both Mass Appraisal and Single Property Appraisal 13
Some have argued that the eighth criterion applies only to the mass appraisal of groups 14
of properties and is inapplicable to a single property anal ysis such as a Board petition. 15
16
* Such argument is not supported in fact or law, and is contrary to the long -17
established, professionally accepted appraisal practice employed by property 18
appraisers of making across-the-board, eighth criterion adjustments without regard 19
to whether mass appraisal or single property appraisal is used. 20
21
* Florida law does not provide for any variation in the applicability of the factors in 22
section 193.011, F.S., based on whether mass appraisal or single property appraisal 23
is used. 24
25
* To not apply, when otherwise warranted, the eighth criterion in an administrative 26
review because the assessment is being reviewed using single property analysis 27
would result in an arbitrary appraisal practice under subparagraph 194.301(2)(a)3., 28
F.S. 29
30
* In fact, a Florida appellate court has approved an eighth criterion adjustment made 31
in the just valuation of a single parcel under judicial review. See Roden v. GAC 32
Liquidating Trust, 462 So.2d 92 (Fla. 2nd DCA 1985). 33
34
35
Properly Considering the Eighth Criterion in Other Valuation Approaches 36
A previous section in this module addressed the proper consideration of the eighth 37
criterion when comparable sales are used (the sales comparison approach). 38
39
* This section addresses the proper consideration of the eighth criterion in the other 40
two valuation approaches, the income capitalization approach and the cost less 41
depreciation approach. 42
43
When considering a value indicator developed by either of these two valuation 44
approaches, the Board or special magistrate must determine whether an eighth crite rion 45
adjustment should be made to such value indicator. 46
47
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* The Board or special magistrate must avoid double -counting this adjustment and 1
must not repeat any adjustment amount that has already been made, whether such 2
adjustment amount was made as a dollar amount or a percentage amount. 3
4
* The Board or special magistrate is not precluded from making an eighth criterion 5
adjustment to a value indicator developed by the income capitalization approach or 6
the cost less depreciation approach when such adjustment w ould not result in 7
double-counting and when such adjustment is justified by sufficient evidence. 8
9
* In determining whether to make an eighth criterion adjustment to a value indicator 10
developed by either of these two approaches, the Board or special magistrate must 11
first determine how such value indicator was developed and determine whether the 12
indicator has already been adjusted for the eighth criterion. 13
14
* The Board or special magistrate should make, to a value indicator developed by the 15
income capitalization approach or cost less depreciation approach, the eighth 16
criterion adjustment that is justified by sufficient evidence when this adjustment 17
would not result in double-counting. 18
19
* In determining whether to make an eighth criterion adjustment to such a value 20
indicator, the Board or special magistrate should consider the adjustment lawfully 21
made and lawfully reported by the property appraiser on Form DR -493 for the use 22
code group that contains the use code of the subject property. 23
24
* When double-counting would not result, the Board or special magistrate should 25
make, to a value indicator developed by either of these two approaches, an eighth 26
criterion adjustment that results in consistency with the adjustment lawfully made 27
and lawfully reported by the property appraiser on Form DR-493 for the use code 28
group of the subject property. 29
30
NOTE: If a party believes an overall eighth criterion adjustment greater than that 31
reported on Form DR-493 is justified for a particular value indicator, the party is 32
responsible for presenting relevant and credible evidence in support of that belief. 33
34
* Then, the Board or special magistrate is responsible for determining, in accordance 35
with law, whether the hearing record contains sufficient evidence to justify a higher 36
overall eighth criterion adjustment to that particular value indicator. 37
38
As stated previously in this training module, the just value of any personal property must 39
be excluded from just valuations of real property. 40
41
42
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Homestead Residential Improvement Uninhabitable Due to Hurricane 1
Damage 2
3
Information on this new law is included in Module 6 because the administrative review 4
of this tax abatement should be heard by a real estate appraiser special magistrate. 5
6
The 2018 Legislature created section 197.318, F.S., to provide an abatement of taxes, 7
by a refund, for homestead residential improvements made uninhabitable from damage 8
or destruction by Hurricane Hermine, Matthew or Irma. The legislation provides that a 9
claim for abatement is waived unless a property owner files a sworn application with the 10
property appraiser by March 1, 2019. These amendments are effective March 23, 2018, 11
are retroactive to January 1, 2016, and expire January 1, 2021. See Chapter 2018-118, 12
Sections 17, 14, and 63, Laws of Florida (CS/HB 7087). Section 17, containing the 13
substantive details of this new law, starts on page 20 of the document available at: 14
http://laws.flrules.org/2018/118 15
16
The legislation amended section 194.032, F.S., to provide for value adjustment boards 17
to hear appeals pertaining to the denial by the property appraiser of tax abatements. 18
This amendment is effective July 1, 2018. See Chapter 2018-118, Sections 14 and 63, Laws 19
of Florida (CS/HB 7087). Section 14, containing the substantive details of this new law, starts 20
on page 18 of the document available at: http://laws.flrules.org/2018/118 21
22
The legislation sets forth detailed definitions and specific steps that must be applied in 23
evaluating and processing an abatement. 24
25
The abatement requires that a property owner file a sworn application with the property 26
appraiser by March 1, 2019. If this application is not made, the claim for abatement is 27
waived. See section 197.318(2)(a) through (c), F.S. 28
29
If the property appraiser determines that the applicant is not entitled to the claimed 30
abatement, the applicant may file a petition with the value adjustment board, pursuant to 31
section 194.011(3), F.S., requesting that the abatement be granted. See section 32
197.318(2)(d), F.S. 33
34
If the property appraiser determines that the applicant is entitled to an abatement, the 35
property appraiser shall issue an official statement to th e tax collector. See section 36
197.318(2)(d), F.S. The statement must contain: 37
38
• The number of days the residential improvement was rendered uninhabitable in the 39
year the hurricane occurred (must be at least 30 days) 40
• The January 1 just value of the residential parcel 41
• The post disaster just value of the residential parcel 42
• The percent change in value 43
44
When the tax collector receives this statement from the property appraiser, the tax 45
collector will calculate the abatement and process the refund. See section 197.318(3), F.S. 46
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1
The Department has adopted forms for the abatement process. See Emergency Rule 2
12DER18-05, “Forms for Abatement of Taxes for Homestead Residential Improvements 3
Damaged or Destroyed by Hurricanes Hermine, Matthew, or Irma,” adopting : 4
5
• Form DR-463, Application for Abatement of Taxes for Homestead Residential 6
Improvements 7
• Form DR-486H, Petition to the Value Adjustment Board for Abatement of Taxes 8
• Form DR-485H, Decision of the Value Adjustment Board for Abatement of Taxes 9
Petition 10
11
12
Assessment of Multiple Parcel Buildings 13
Legislation enacted in 2018 created section 193.0237, F.S., to provide definitions and a 14
methodology for the assessment of multiple parcel buildings. The statute provides that 15
the just value of land upon which a multiple parcel building is located, regardless of 16
ownership, may not be separately assessed and must be allocated among, and 17
included in, the just value of all the parcels in the multiple parcel building. This 18
amendment applies to assessments beginning with the 2018 tax roll. See Chapter 2018-19
118, Section 8, Laws of Florida (CS/HB 7087). Section 8, containing this new statutory text, 20
starts on page 16 of the document available at: http://laws.flrules.org/2018/118 21
22
(NEW) Appraisal by Special Magistrate May Not Be Submitted as 23
Evidence 24
Legislation enacted in 2020 amended section 194.035, F.S. to provide an appraisal 25
performed by a special magistrate is not permitted as evidence in a hearing before a 26
value adjustment board for which the special magistrate serves. An appraisal may not 27
be submitted as evidence to a value adjustment board in any year that the person who 28
performed the appraisal serves as a special magistrate to that value adjustment board. 29
See Chapter 2020-10, Section 4, Laws of Florida, effective July 1, 2020. 30
31
32
33
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1
Module 7: 2
Administrative Reviews of 3
Classified Use Valuations and Assessed Valuations 4
5
6
Training Module 7 addresses the following topics : 7
8
PART 1 9
Administrative Reviews of Classified Use Valuations 10
• Overview of Classified Use Valuation 11
• Statutory Criteria for Valuing Different Types of Classified Property 12
• Statutory Criteria for Valuing Agricultural Property 13
• Agricultural Property: The Income Approach 14
• Agricultural Property: Quarantine and Eradication Programs 15
• Agricultural Property: Special Types 16
• Pollution Control Devices 17
• Noncommercial Recreation and Conservation Lands 18
• Historic Property: Sections 193.503 and 193.505, F.S. 19
• High-water Recharge Property 20
• Working Waterfront Property (Classification Effective in 2010) 21
• Renewable Energy Source Devices 22
• Competent Substantial Evidence for Establishing a Revised Classified Use Value 23
• The Administrative Review Process for Classified Use Valuations 24
25
PART 2 26
Administrative Reviews of Assessed Valuations 27
• Statutory Criteria for Assessed Valuation of Limited Increase Property 28
• Assessment Increase Limitation for Homestead Real Property 29
• Assessment Increase Limitation for Non-Homestead Real Property 30
• Differences in Administration Between Sections 193.1554 and 193.1555, F.S. 31
• Authority for Administrative Reviews of Assessed Valuations 32
• Competent Substantial Evidence for Establishing a Revised Assessed Value 33
• The Administrative Review Process for Assessed Valuations 34
• (NEW) Assessment of Certain Property Damaged or Destroyed by Hurricane 35
Michael in 2018 36
37
38
Learning Objectives 39
After completing this training module, the learner should be able to: 40
41
• Identify and apply the definition of classified use value 42
• Recognize and apply the statutory criteria for classified use valuation 43
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• Identify when the Board or special magistrate is required or is NOT required to make 1
determinations such as findings, conclusions, or decisions 2
• Identify and apply the sequence of general procedural steps for administrative 3
reviews of classified use valuations 4
• Recognize how to apply the preponderance of the evidence standard of proof in 5
administrative reviews of classified use valuations 6
• Identify the alternative actions required when a presumption of correctness was not 7
established, or was established but later was overcome 8
• Identify and apply the elements of the definition of competent substantial evide nce 9
for establishing a revised classified use value 10
• Recognize the conditions under which a Board or special magistrate is required to 11
establish a revised classified use value 12
• Identify and apply the definition of assessed value 13
• Recognize and apply the statutory criteria for the assessed valuation of homestead 14
property 15
• Recognize and apply the statutory criteria for the assessed valuation of non-16
homestead property 17
• Recognize differences in administration of limitations on non -homestead residential 18
property with nine or fewer units and other non -homestead property 19
• Identify and apply the sequence of general procedural steps for administrative 20
reviews of assessed valuations of limited increase properties 21
• Recognize how to apply the preponderance of the evidence standard of proof in 22
administrative reviews of assessed valuations of limited increase properties 23
• Identify and apply the elements of the definition of competent substantial evidence 24
for establishing a revised assessed value 25
• Recognize the conditions under which a Board or special magistrate is required to 26
establish a revised assessed value 27
28
29
PART 1 30
31
Overview of Classified Use Valuation 32
“Classified use value” means an annual determination of the value of property that is 33
assessed solely based on character or use, without regard to the property’s highest and 34
best use. 35
36
Classified use valuations are provided in Section 4(a), (b), and (e), Article VII, of the 37
Florida Constitution (agricultural land, noncommercial recreational land, high -water 38
recharge, conservation land, historic property) and in Section 4(j), Article VII of the State 39
Constitution (working waterfront properties). 40
41
NOTE: Legislation has not been enacted to implement assessment exclusions for 42
residential improvements for resistance to wind damage under Section 4(i), Article VII, 43
of the Florida Constitution. 44
45
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Except for working waterfront property, the statutory criteria for valuation of classified 1
use property are provided in Chapter 193, Part 2, F.S. 2
3
The statutory criteria for working waterfront property are set forth in Section 4(j), Article 4
VII, of the Florida Constitution. 5
6
7
Statutory Criteria for Valuing Different Types of Classified Property 8
Statutory criteria for the following types of property classifications are presented below. 9
10
Types of Property Classifications 11
• Agricultural Property 12
• Pollution Control Devices 13
• Noncommercial Recreational and Conservation Lands 14
• Historic Property 15
• High-water Recharge Property 16
• Working Waterfront Property 17
• Renewable Energy Source Devices 18
19
20
Statutory Criteria for Valuing Agricultural Property 21
Under Subsection 193.461(6)(a), F.S., the classified use valuation of agricultural land 22
shall consider the following use factors only: 23
24
* The quantity and size of the property; 25
26
* The condition of the property; 27
28
* The present market value of the property as agricultural land; 29
30
* The income produced by the property; 31
32
* The productivity of the land in its current use; 33
34
* The economic merchantability of the agricultural product; and 35
36
* Such other agricultural factors as may from time to time become applicable and 37
which are reflective of the standard present practices of agricultural use and 38
production. 39
40
41
Agricultural Property: The Income Approach 42
Under Subsection 193.461(6), F.S., when using the income approach to value 43
agricultural land, the appraiser shall consider the average of the income from the 44
property for the past five years, rather than the income from the last year alone. 45
46
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* Irrigation systems, including pumps and motors physically attached to the land, shall 1
be considered part of the acreage under the income approach and not have a 2
separately assessable value. 3
4
* Likewise, litter and waste containment structures on poultry and dairy farms shall be 5
considered part of the acreage under the income approach and not have a 6
separately assessable value. 7
8
Note: Legislation was enacted in 2018 to create section 193.4516, F.S., to provide that 9
tangible personal property owned and operated by a citrus fruit packing or processing 10
facility is deemed to have a market value no greater than its va lue for salvage, if such 11
property is no longer used in the operation of the facility due to Hurricane Irma (2017) or 12
due to citrus greening. This amendment applies to the 2018 tax roll. See Chapter 2018-13
118, Sections 10 and 11, Laws of Florida (CS/HB 7087). 14
15
Agricultural Property: Quarantine and Eradication Programs 16
Under Subsection 193.461(7), F.S., agricultural land taken out of production due to a 17
state or federal quarantine or eradication program shall continue to be classified as 18
agricultural property. 19
20
* If the land in the program lies fallow or is used for non-income producing purposes, 21
the land shall have a de minimus value of no more than $50 per acre. 22
23
* If the land in the program is used for another permissible agricultural u se, the land 24
shall be assessed based on that usage. 25
26
* If the land is converted to a non-agricultural use, it will be assessed as non-27
agricultural property under section 193.011, F.S. 28
29
Note: Legislation was enacted in 2018 to amend section 193.461(6)(c), F.S. to provide 30
that screened enclosed structures used in horticultural production for protection from 31
pests and diseases or to comply with state or federal eradication or compliance 32
agreements are a part of the average yields per acre and have no separatel y 33
assessable value. See Chapter 2018-84, Section 1, Laws of Florida (CS/CS/SB 740). 34
35
Note: Legislation was enacted in 2016 to amend section 193.461(7)(a), F.S., to provide 36
that lands classified for assessment purposes as agricultural lands that a state or 37
federal eradication or quarantine program takes out of production will remain agricultural 38
lands for the remainder of the program. Lands that these programs convert to 39
nonincome-producing uses will continue to be assessed at a minimum value of up to 40
$50 per acre on a single-year assessment methodology. 41
42
This legislation identifies the Citrus Health Response Program as a state or federal 43
eradication or quarantine program. The bill allows land to retain its agricultural 44
classification for five years after the date of execution of a compliance agreement 45
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between the landowner and the Department of Ag riculture and Consumer Services 1
(DACS) or a federal agency, as applicable, for this program or successor programs. 2
3
Lands under these programs that are converted to fallow or otherwise nonincome -4
producing uses are still agricultural lands assessed at a min imal value of up to $50 per 5
acre on a single-year assessment methodology while fallow or used for nonincome-6
producing purposes. Lands under these programs that are replanted in citrus according 7
to the requirements of the compliance agreement are classified as agricultural lands 8
and are assessed at a minimal value of up to $50 per acre, on a single -year 9
assessment methodology, during the five-year term of agreement. 10
11
See Chapter 2016-88, Sections 1 and 5, Laws of Florida (CS/CS/HB 749). 12
13
14
Agricultural Property: Special Types 15
In addition to the classified use assessments of agricultural land discussed previously, 16
there are additional provisions in Sections 193.451 and 193.4615, F.S., which address 17
specific kinds of agricultural property. 18
19
These provisions usually deal with the assessment of tangible personal property and 20
instruct that such property should either have no value placed upon it or that it should 21
be valued at salvage value. 22
23
Items with no value: 24
* Growing annual crops 25
* Nonbearing fruit trees 26
* Raw agricultural products (until offered for sale) 27
28
Items valued as salvage: 29
* Citrus grading and classification equipment leased from the Department of 30
Agriculture 31
* Obsolete agricultural equipment 32
33
34
Pollution Control Devices 35
This property classification and its valuation are governed by Section 193.621, F.S., 36
which provides the following: 37
38
* Pollution control devices installed in manufacturing or industrial plants or installations 39
shall be valued as salvage; 40
41
* Demolition and reconstruction of part of such a facility for the purpose of reducing 42
pollution, and which does not substantially increase the productivity of the facility, 43
shall not increase the facility’s assessed value; 44
45
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* The property appraiser is authorized to seek a recommendation from the 1
Department of Environmental Protection as to what constitutes pollution control; and 2
3
* The Department of Environmental Protection is authorized to promulgate rules 4
concerning this classification. 5
6
“Salvage value” is defined in rules of the Department of Environmental Protection as 7
follows: 8
9
“the estimated fair market value, if any, which may be realized upon the sale or other 10
disposition of a pollution control facility when it can no longer be used for the purpose 11
for which it was designed.” See Rule 62-8.020, F.A.C. 12
13
14
Noncommercial Recreation and Conservation Lands 15
This property classification and its valuation are governed by Section 193.501, F.S. 16
17
To receive this classification, property must be subject to a conservation easement, 18
qualified as environmentally endangered land, designated as conservation land, or used 19
for outdoor recreational or park purposes. 20
21
If the covenant or conveyance extends for more than ten years, the property shall be 22
valued considering no factors other than those relative to its value for the present use 23
as restricted by the covenant or conveyance. 24
25
If the covenant has less than ten years left, the property will be valued at just value 26
considering the restrictions imposed by the covena nt. 27
28
29
Historic Property: Sections 193.503 and 193.505, F.S. 30
Under Subsection 193.503(5), F.S., historic property is to be assessed using the 31
following factors only: 32
33
* Quantity and size of property; 34
* Condition of property; 35
* Present market value as historic property used for commercial or certain nonprofit 36
purposes; and 37
* Income produced by the property. 38
39
The historic property addressed under Subsection 193.505(3), F.S., must be valued 40
recognizing the nature and length of the restriction placed on th e use of the property 41
under the provisions of the conveyance or covenant. 42
43
44
High-Water Recharge Property 45
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To allow this classification, the county must choose to adopt an ordinance providing for 1
this classification and its valuation. See Subsections 193.625(1) and (5), F.S. 2
3
The county’s ordinance must provide the formula for assessing property that qualifies 4
for this classification. See Subsection 193.625(5)(b), F.S. 5
6
In counties that choose to adopt such ordinance, municipalities may also adopt an 7
ordinance providing for classification and valuation of this property type. See Subsection 8
193.625(5)(d), F.S. 9
10
11
Working Waterfront Property (Classification Effective 2010) 12
The Florida Constitution sets forth criteria for classifying and valuing working waterfr ont 13
property. 14
15
The provisions of Amendment 6, regarding working waterfronts, have been placed in 16
the Florida Constitution at Article VII, Section (4)(j), effective for the 2010 assessment 17
year. These provisions state as follows: 18
19
“(j)(1) The assessment of the following working waterfront properties shall 20
be based upon the current use of the property: 21
a. Land used predominantly for commercial fishing purposes. 22
b. Land that is accessible to the public and used for vessel launches 23
into waters that are navigable. 24
c. Marinas and drystacks that are open to the public. 25
d. Water-dependent marine manufacturing facilities, commercial 26
fishing facilities, and marine vessel construction and repair 27
facilities and their support activities. 28
(2) The assessment benefit provided by this subsection is subject to 29
conditions and limitations and reasonable definitions as specified by 30
the legislature by general law.” 31
32
The constitutional amendment on working waterfront property is self -executing with 33
authorization for the Legislature to elaborate by general law. 34
35
In the 2009 and 2010 sessions, the Legislature considered bills that did not pass but 36
that would have contained guidance for classifying and valuing working waterfront 37
property. These bills would have applied to the 2010 tax year if they had become law. 38
39
Amendment 6, creating classification of property used for working waterfronts, is 40
effective for the 2010 year in the absence of legislation. 41
42
Renewable Energy Source Devices 43
* Legislation enacted in 2013 created section 193.624, F.S., to provide for 44
assessment of a "renewable energy source device" installed on or after January 1, 45
2013, to new and existing residential real property. 46
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1
* When determining the assessed value of real property used for residential purposes, 2
an increase in the just value of the property attributable to the installation of a 3
renewable energy source device may not be considered. 4
5
* This requirement is an exception to certain provisions relating to assessment of 6
changes, additions, or improvements in sections 193.155 and 193.1554, F.S. 7
8
* This legislation is effective July 1, 2013 and applies to assessments and 9
administrative reviews beginning in 2014. See Chapter 2013-77, Sections 1, 2, and 3, 10
Laws of Florida (HB 277). 11
12
Note: Legislation enacted in 2017 amended section 193.624, F.S., to provide that, for 13
nonresidential real property, 80 percent of the just value attributable to a renewable 14
energy source device may not be considered in determining the assessed value of the 15
property; this provision applies to devices installed on nonresidential property on or after 16
January 1, 2018, except in a fiscally constrained county for which application for 17
comprehensive plan amendment or planned unit development zoning is made by 18
December 31, 2017. This change was effective July 1, 2017 and applies to 19
assessments and administrative reviews beginning in 2018. See Chapter 2017-118, 20
Sections 2 and 8, Laws of Florida (CS/SB 90). 21
22
23
Competent Substantial Evidence for Establishing a Revised Classified 24
Use Value 25
Competent substantial evidence for establishing a revised classified use value, as part 26
of an administrative review under Chapter 194, Parts 1 and 3, F.S., means evidence 27
that: 28
29
1. Cumulatively meets the statutory criteria that apply to the classified use valuation of 30
the petitioned property; 31
32
2. Tends to prove (is probative of) classified use value as of January 1 of the 33
assessment year under review; 34
35
3. Is sufficiently relevant and credible to be accepted as adequate to support (legally 36
justify) the conclusion reached; and 37
38
4. Otherwise meets all requirements of law. 39
40
41
The Administrative Review Process for Classified Use Valuations 42
Below is a sequence of general procedural steps for Boards and special magistrates to 43
follow in administrative reviews of classified use valuations to fulfill the procedural 44
requirements of Section 194.301, F.S., and Rule 12D -9.027(3), F.A.C. 45
46
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This sequence of steps applies to: the consideration of evidence, the development of 1
conclusions, and the production of written decisions. See Rule 12D-9.027(1), F.A.C. 2
3
“The board or special magistrate shall not be required to make, at any time during a 4
hearing, any oral or written finding, conclusion, decision, or reason for decision.” See 5
Rule 12D-9.025(9), F.A.C. 6
7
“The board or special magistrate has the discretion to determine whether to make such 8
determinations during a hearing or to consider the petition and evidence further after the 9
hearing and then make such determinations.” See Rule 12D-9.025(9), F.A.C. 10
11
In following this sequence of steps, Boards or special magistrates must also meet the 12
requirements of Rule 12D-9.025(1), F.A.C., which are the following: 13
14
* Review the evidence presented by the parties; 15
16
* Determine whether the evidence presented is admissible; 17
18
* Admit the evidence that is admissible; and 19
20
* Identify the evidence presented to indicate that it is admitted or not admitted. 21
22
The sequence of general procedural steps presented below is based o n Rule 12D-23
9.027(3), F.A.C. 24
25
1. Consider the admitted evidence presented by the parties. 26
27
2. Identify and consider the statutory criteria that apply to the classified use valuation of 28
the petitioned property. 29
30
3. Identify and consider the essential characteristics of the petitioned property based on 31
the admitted evidence and the statutory criteria that apply to the classified use 32
valuation of the property. 33
34
4. Identify the valuation methodology used by the property appraiser in developing the 35
classified use valuation of the petitioned property, and consider this valuation 36
methodology in light of the essential characteristics of the property. 37
38
5. Determine whether the admitted evidence proves by a preponderance of the 39
evidence that the property appraiser’s methodology complies with the statutory 40
criteria that apply to the classified use valuation of the property. 41
42
6. Determine whether the property appraiser’s classified use valuation methodology is 43
appropriate and whether the property appraiser established a presumption of 44
correctness for the assessment. 45
46
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a) The property appraiser’s classified use valuation methodology is not appropriate 1
and a presumption of correctness is not established unless the admitted 2
evidence proves by a preponderance of the evidence that the property 3
appraiser’s classified use valuation methodology complies with the statutory 4
criteria that apply to the classified use valuation of the property. 5
6
b) The property appraiser’s classified use valuation methodology is appropriate and 7
the presumption of correctness is established only when the admitted evidence 8
proves by a preponderance of the evidence that the property appraiser’s 9
classified use valuation methodology complies with the statutory criteria that 10
apply to the classified use valuation of the property. 11
12
7. If the Board or special magistrate determines that a presumption of correctness is 13
established, the Board or special magistrate must then determine whether the 14
admitted evidence proves by a preponderance of t he evidence that: 15
16
a) The property appraiser’s classified use valuation does not represent classified 17
use value; or 18
19
b) The property appraiser’s classified use valuation is arbitrarily based on valuation 20
practices that are different from the valuation practices generally applied by the 21
property appraiser to comparable property within the same county. 22
23
8. If the Board or special magistrate determines that one or both of the conditions 24
specified under Step 7 exist, the presumption of correctness is overcome. 25
26
9. If the property appraiser does not establish a presumption of correctness, or if the 27
presumption of correctness is overcome, the Board or special magistrate shall 28
determine whether the hearing record contains competent, substantial evidence of 29
classified use value that cumulatively meets the statutory criteria that apply to the 30
classified use valuation of the property. 31
32
a) If the hearing record contains competent, substantial evidence for establishing a 33
revised classified use value, the Board or an appraiser special magistrate shall 34
establish a revised classified use value based only upon such evidence. In 35
establishing a revised classified use value, the Board or special magistrate is not 36
restricted to any specific value offered by one of the parties. 37
38
b) If the hearing record lacks competent, substantial evidence for establishing a 39
revised classified use value, the Board or special magistrate shall remand the 40
assessment to the property appraiser with appropriate directions for establishing 41
classified use value. The property appraiser is required to follow these directions. 42
43
10. If the property appraiser establishes a p resumption of correctness as described in 44
Step 6 above and that presumption of correctness is not overcome as described in 45
Step 7 above, the assessment stands. 46
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1
2
3
PART 2 4
5
Statutory Criteria for Assessed Valuation of Limited Increase Property 6
The assessed value of certain types of properties can be less than their just value 7
because of limitations and classifications under the Florida Constitution. 8
9
“Assessed value” means an annual determination of the value of: 10
11
* Homestead property as limited pursuant to Section 4(d), Article VII of the State 12
Constitution (lesser of 3 percent or percentage change in consumer price index); or 13
14
* Non-homestead property as limited pursuant to Sections 4(g) and (h), Article VII of 15
the State Constitution (10 percent). 16
17
18
Assessment Increase Limitation for Homestead Real Property 19
Beginning in 1995, for homestead property there is a limitation on the annual increase in 20
assessed value that is equal to the lesser of 3 percent or the percent change in the 21
consumer price index. See Rules 12D-8.0061 through 12D-8.0064, F.A.C. 22
23
Homestead real property shall be assessed at just value on the January 1 following a 24
change of ownership. See Section 193.155, F.S. 25
26
Under Section 193.155(3)(a), F.S., a change of ownership means any sale, foreclosure, 27
or transfer of legal title or beneficial title in equity to any person, except: 28
29
1. If after transfer, the same person is entitled to the homestead exemption as was 30
previously entitled and the transfer: 31
32
a. Is to correct an error; 33
34
b. Is between legal and equitable title; or 35
36
c. Is by an instrument in which the owner is both grantor and grantee of the real 37
property and one or more other individuals are additionally named as grantee. 38
However, a change of ownership occurs if such individual applies for a 39
homestead exemption on the property; 40
41
2. If the transfer is between husband and wife; 42
43
3. If the transfer occurs by operation of law under Section 732.401, F.S.; or 44
45
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4. If on the death of the owner, the transfer is between the owner and another who is 1
a permanent resident and is legally or na turally dependent upon the owner. 2
3
Note: Legislation enacted in 2013 amended section 193.155, F.S., to provide that a 4
property transfer is not a change of ownership if the transfer is to a person who is 5
entitled to the homestead exemption both before and after the transfer and the person is 6
a lessee entitled to the homestead exemption under section 196.041(1), F.S. 7
8
* These changes are effective July 1, 2013, and apply to assessments and 9
administrative reviews beginning in 2014. See Chapter 2013-72, Section 4, Laws of 10
Florida (SB 1830). 11
12
13
Assessment Increase Limitation for Non -Homestead Real Property 14
Beginning in 2009, for non-homestead property there is a 10 percent limitation on the 15
annual increase in assessed value. 16
17
The types of property eligible for the 10 percent cap are provided under Section 18
193.1554, F.S., and Section 193.1555, F.S. 19
20
Section 193.1554, F.S., relates to the assessment of non-homesteaded residential 21
property that contains nine or fewer dwelling units that does not receive a homestead 22
exemption under Section 196.031, F.S., including vacant property zoned and platted for 23
residential use. 24
25
Section 193.1555, F.S., relates to residential property with 10 or more units and to non -26
residential real property. 27
28
“Non-residential real property” means real property that is not subject to the assessment 29
limitations set forth in subsection 4(a), (b), (c), (d), or (g), Article VII of the Florida 30
Constitution. This involves property classified agricultural, high-water recharge, non-31
commercial recreational, conservation, and homestead limited increase property. 32
33
When ownership or control of the property changes, the property is subject to 34
reassessment at just value. 35
36
A person or entity that owns non-homestead property subject to receiving the 10 37
percent assessment increase limitation under Sections 193.1554 or 193.1555, F.S., 38
must notify the property appraiser of the county where the property is located of any 39
change of ownership or control as defined in Sections 193.1554(5) and 193.1555(5), 40
F.S. See section 193.1556, F.S. 41
42
Rule 12D-8.00659, F.A.C., (Notice of Change of Ownership or Control of Non -43
Homestead Property) contains detailed provisions explaining the change in ownership 44
and control. Forms are included for the owner to notify the property appraiser as 45
provided in sections 193.1554 and 193.1555, F.S. 46
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1
NOTE: In Orange County Property Appraiser v. Sommers, 84 So.3d 1277 (Fla. 5th DCA 2
2012), the court held that when residential property changes from homestead to non -3
homestead, but ownership does not change, the ten percent cap for non -homestead 4
property cannot be applied to the assessed value from the previous homestead cap. 5
Rather, in the year following the change from homestead to non -homestead status, the 6
new assessed value for the property (as non-homestead) must be equal to just value. 7
Then, the new assessed value must be the base to which the t en percent cap for non-8
homestead property can be applied in future years. This is also addressed in 2012 9
legislation. See Chapter 2012-193, Sections 6 and 7, Laws of Florida. 10
11
12
Differences in Administration Between Sections 193.1554 and 13
193.1555, F.S. 14
The administration of Sections 193.1554 and 193.1555, F.S., is similar but has four 15
main differences. These differences are: 16
17
1. For residential with nine or fewer dwelling units Section 193.1554, F.S., there is no 18
change in ownership if the transfer is b etween husband and wife, including a transfer 19
to a surviving spouse or a transfer due to a dissolution of marriage. 20
21
* This provision is not in Section 193.1555, F.S. 22
23
2. For residential with 10 units or more and nonresidential, Section 193.1555, F.S., 24
property must be reassessed at just value if there is a “qualifying” improvement, 25
meaning any substantially completed improvement that increases the just value of 26
the property by at least 25 percent. 27
28
* “Improvement” is an addition or change to land or buildings that increases their 29
value and is more than a repair or a replacement. 30
31
* This provision is not in Section 193.1554, F.S. 32
33
3. Under Section 193.1554, F.S., changes, additions, or improvements include 34
improvements to common areas or other property t hat directly benefit the property. 35
36
* Such changes are assessed at just value and apportioned among the benefitting 37
parcels. 38
39
* This provision is not in Section 193.1555, F.S. 40
41
4. Under Section 193.1554, F.S., provisions relating to the replacement of property 42
damaged or destroyed by misfortune or calamity state that the assessed value is not 43
to increase if the total square footage of the property as changed or improved does 44
not exceed 1,500 square feet. 45
46
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* This provision is not in Section 193.1555, F.S. 1
2
* The latter section, however, states that the improvements cannot have changed 3
the property’s character or use, a provision not in Section 193.1554, F.S. 4
5
6
Authority for Administrative Reviews of Assessed Valuations 7
It is clear under Section 194.301, F.S., amended by HB 521, that the Board or special 8
magistrate may consider petitions on the current year assessed value. Section 9
194.301(1), F.S. states: 10
11
“… if the appraiser proves by a preponderance of the evidence that the 12
assessment was arrived at by complying with s. 193.011, any other applicable 13
statutory requirements relating to classified use values or assessment caps, ...” 14
15
Section 194.301(2)(a), F.S., states the Board or special magistrate may determine: 16
17
“… that the assessed value: 18
1. Does not represent the just value of the property after taking into account any 19
applicable limits on annual increases in the value of the p roperty;…” 20
21
These provisions refer to the calculation of limited increase property and refer to the 22
statutory criteria applicable to assessment of such properties. Also, see Rule 12D -23
9.027(3)(a), (b), and (d), F.A.C. 24
25
Thus, it is clear that a petitioner may appeal an assessed valuation for the current year 26
under the statutory criteria pertaining to calculation of assessed value. 27
28
29
Competent Substantial Evidence for Establishing a Revised Assessed 30
Value 31
Competent substantial evidence for establishing a revised assessed value, as part of an 32
administrative review under Chapter 194, Parts 1 and 3, F.S., means evidence that: 33
34
1. Cumulatively meets the statutory criteria that apply to the assessed valuation of the 35
petitioned property; 36
37
2. Tends to prove (is probative of) assessed value as of January 1 of the assessment 38
year under review; 39
40
3. Is sufficiently relevant and credible to be accepted as adequate to support (legally 41
justify) the conclusion reached; and 42
43
4. Otherwise meets all requirements of law. 44
45
46
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The Administrative Review Process for Assessed Valuations 1
Below is a sequence of general procedural steps for Boards and special magistrates to 2
follow in administrative reviews of assessed valuations of limited increase property to 3
fulfill the procedural requirements of Section 194.301, F.S., and Rule 12D-9.027(3), 4
F.A.C. 5
6
This sequence of steps applies to: the consideration of evidence, the development of 7
conclusions, and the production of written decisions. See Rule 12D-9.027(1), F.A.C. 8
9
“The board or special magistrate shall not be required to make, at any time during a 10
hearing, any oral or written finding, conclusion, decision, or reason for decision.” See 11
Rule 12D-9.025(9), F.A.C. 12
13
“The board or special magistrate has the discretion to determine whether to make such 14
determinations during a hearing or to consider the petition and evidence further after the 15
hearing and then make such determinations.” See Rule 12D-9.025(9), F.A.C. 16
17
In following this sequence of steps, Boards or special magistrates must also meet the 18
requirements of Rule 12D-9.025(1), F.A.C., listed following: 19
20
a) Review the evidence presented by the parties; 21
22
b) Determine whether the evidence presented is admissible; 23
24
c) Admit the evidence that is admissible; and 25
26
d) Identify the evidence presented to indicate that it is admitted or not admitted. 27
28
The sequence of general procedural steps presented below is based on Rule 12D -29
9.027(3), F.A.C. 30
31
1. Consider the admitted evidence presented by the parties. 32
33
2. Identify and consider the statutory criteria that apply to the assessed valuation of the 34
petitioned property. 35
36
3. Identify and consider the essential characteristics of the petitioned property based on 37
the admitted evidence and the statutory criteria that apply to the assessed valuation 38
of the property. 39
40
4. Identify the valuation methodology used by the property appraiser in developing the 41
assessed valuation of the petitioned property, and consider this valuati on 42
methodology in light of the essential characteristics of the property. 43
44
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5. Determine whether the admitted evidence proves by a preponderance of the 1
evidence that the property appraiser’s methodology complies with the statutory 2
criteria that apply to the assessed valuation of the property. 3
4
6. Determine whether the property appraiser’s assessed valuation methodology is 5
appropriate and whether the property appraiser established a presumption of 6
correctness for the assessment. 7
8
a) The property appraiser’s assessed valuation methodology is not ap propriate and 9
a presumption of correctness is not established unless the admitted evidence 10
proves by a preponderance of the evidence that the property appraiser’s 11
assessed valuation methodology complies the statutory criteria that apply to the 12
assessed valuation of the property. 13
14
b) The property appraiser’s assessed valuation methodology is appropriate and the 15
presumption of correctness is established only when the admitted evidence 16
proves by a preponderance of the evidence that the property appraiser’s 17
assessed valuation methodology complies with the statutory criteria that apply to 18
the assessed valuation of the property. 19
20
7. If the Board or special magistrate determines that a presumption of correctness is 21
established, the Board or special magistrate must then determine whether the 22
admitted evidence proves by a preponderance of the evidence that: 23
24
a) The property appraiser’s assessed valuation does not represent assessed value; 25
or 26
27
b) The property appraiser’s assessed valuation is arbitrarily based on valuation 28
practices that are different from the valuation practices generally applied by the 29
property appraiser to comparable property within the same county. 30
31
8. If the Board or special magistrate determines that one or both of the conditions 32
specified under Step 7 exist, the presumption of correctness is overcome. 33
34
9. If the property appraiser does not establish a presumption of correctness, or if the 35
presumption of correctness is overcome, the Board or special magistrate shall 36
determine whether the hearing record contains competent, substantial evidence of 37
assessed value that cumulatively meets the statutory criteria that apply to the 38
assessed valuation of the property. 39
40
a) If the hearing record contains competent, substantial evidence for establishing a 41
revised assessed value, the Board or an appraiser special magistrate shall 42
establish a revised assessed value based only upon such evidence. In 43
establishing a revised assessed value, the Board or special magistrate is not 44
restricted to any specific value offered by one of the parties. 45
46
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b) If the hearing record lacks competent, substantial evidence for establishing a 1
revised assessed value, the Board or special magistrate shall remand the 2
assessment to the property appraiser with appropriate directions for es tablishing 3
assessed value. The property appraiser is required to follow these directions. 4
5
10. If the property appraiser establishes a presumption of correctness as described in 6
Step 6 above and that presumption of correctness is not overcome as described in 7
Step 7 above, the assessment stands. 8
9
(NEW) Assessment of Certain Property Damaged or Destroyed by 10
Hurricane Michael in 2018 11
Legislation enacted on 2020 created section 193.1557, F.S., relating to assessment of 12
certain property damaged or destroyed by Hurricane Michael in 2018, and providing that 13
sections 193.155(4)(b), 193.1554(6)(b), or 193.1555(6)(b), F.S., relating to assessment 14
of changes, additions or improvements, apply to such changes, additions, or 15
improvements begun within five years after January 1, 2019. The new section 16
193.1557, F.S., applies to 2019 through 2023 tax years and stands repealed on 17
December 31, 2023. See Chapter 2020-10 Section 3, Laws of Florida, effective July 1, 2020. 18
19
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1
Module 8: 2
Administrative Reviews of 3
Tangible Personal Property Just Valuations 4
5
6
Training Module 8 addresses the following topics: 7
• Statutory Law Beginning in 2009 (See HB 521) 8
• Overview of Appraisal Development 9
• Legal Provisions on the Tangible Personal Property Appraisal Guidelines 10
• Florida Information on Appraisal Development 11
• Scope of Authority for Administrative Reviews 12
• Definition of Tangible Personal Property (TPP) 13
• Exemptions for Tangible Personal Property 14
• Requirement for Taxpayers to File TPP Returns 15
• The Eight Factors of Just Valuation 16
• Proper Consideration of the Just Valuation Factors 17
• Consideration of Previous Year's Board-Adjusted Assessment 18
• Standard of Proof for Administrative Reviews 19
• Petitioner Not Required to Present Opinion or Estimate of Value 20
• Presentation of Evidence by the Parties 21
• Evaluation of Evidence by the Board or Special Magistrate 22
• Sufficiency of Evidence 23
• Requirements for Establishing a Presumption of Correctness 24
• Requirements for Overcoming a Presumption of Correctness 25
• Establishing a Revised Just Value or Remanding the Assessment 26
• Competent Substantial Evidence for Establishing a Revised Just Value 27
• Establishment of Revised Just Values in Administrative Reviews 28
• Legal Limitations on Administrative Reviews 29
• Sequence of General Procedural Steps 30
• Operation of the Eighth Criterion Under Florida Law 31
• The Eighth Criterion in Reviews of Tangible Personal Property 32
• (NEW) Appraisal by Special Magistrate May Not Be Submitted as Evidence 33
34
35
Learning Objectives 36
After completing this training module, the learner should be able to: 37
38
• Identify the changes enacted in the 2009 statutory law (HB 521) 39
• Distinguish between who does appraisal development and who does NOT 40
• Identify legal provisions on the Tangible Personal Property Appraisal Guidelines 41
• Identify legal provisions that represent limitations on the discretion o f property 42
appraisers 43
• Recognize that the factor in Section 193.011(8), F.S., must be properly considered in 44
the just valuation of tangible personal property (TPP) 45
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• Recognize the four components of the definition of personal property 1
• Identify how the Florida Supreme Court has addressed intangible personal property 2
in the just valuation of tangible personal property 3
• Recognize the requirement that personal property types other than TPP must be 4
excluded from just valuations of TPP 5
• Distinguish between appraisal development and administrative reviews 6
• Recognize and apply the scope of authority for administrative reviews 7
• Identify the items that a Board or special magistrate may consider in addition to 8
admitted evidence 9
• Recognize and apply the definition of tangible personal property (TPP) 10
• Identify the requirements for filing a TPP return (Form DR -405) 11
• Recognize the types of information required on a filed return (Form DR -405) 12
• Identify how the property appraiser may use a filed TPP return 13
• Recognize the link between the requirement to file a TPP return with the property 14
appraiser and the right to file a petition with the Board 15
• Identify the eight factors of just valuation in Section 193.011, F.S. 16
• Recognize the legal standards for consideration of the just valuation factors 17
• Identify the provisions of Section 193.016, F.S., regarding the property appraiser’s 18
consideration of the previous year’s Board-adjusted assessment 19
• Recognize how the Florida Supreme Court has addressed Section 193.016, F.S. 20
• Identify the applicable standard of proof, its definition, and how it is applied 21
• Identify standards of proof that do NOT apply in administrative reviews 22
• Recognize that a petitioner is NOT required to present an opinion of value 23
• Understand the order of presentation of evidence 24
• Identify and apply the steps for evaluating evidence in administrative reviews 25
• Recognize and apply the provisions for ruling on the ad missibility of evidence 26
• Identify and apply the definitions of relevant evidence and credible evidence 27
• Recognize and apply the standards for determining the sufficiency of evidence 28
• Identify types of information that are NOT sufficient evidence for establishing a 29
presumption of correctness 30
• Recognize the requirements for establishing a presumption of correctness 31
• Recognize the requirements for overcoming a presumption of correctness 32
• Identify the alternative actions required when a presumption of correctness was not 33
established, or was established but later was overcome 34
• Identify and apply the elements of the definition of competent substantial evidence 35
for establishing a revised assessment 36
• Recognize the conditions under which a Board or special magistrate is required to 37
establish a revised just value 38
• Identify legal limitations on administrative reviews 39
• Apply the sequence of general procedural steps for administrative reviews of just 40
valuations 41
• Identify when the Board or special magistrate is required or is NOT required to make 42
determinations such as findings, conclusions, or decisions 43
• Recognize that the factor in Section 193.011(8), F.S., must be properly considered in 44
administrative reviews of just valuations of tangible personal property, regardless of 45
whether an actual sale of the property has occurred 46
47
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1
Statutory Law Beginning in 2009 (See HB 521) 2
An important change to Florida Statutes was passed in the 2009 legislative session and 3
then approved by the Governor on June 4, 2009. See Section 194.301, Florida 4
Statutes, as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 5
6
The complete text of this current legislation is presented following: 7
8
Be It Enacted by the Legislature of the State of Florida: 9
10
Section 1. 11
Section 194.301, Florida Statutes, is amended to read: 12
194.301 Challenge to ad valorem tax assessment.— 13
14
(1) In any administrative or judicial action in which a taxpayer challenges an ad valorem 15
tax assessment of value, the property appraiser’s assessment is presumed correct if the 16
appraiser proves by a preponderance of the evidence that the assessment was arrived 17
at by complying with s. 193.011, any other applicable statutory requirements relating to 18
classified use values or assessment caps, and professionally accepted appraisal 19
practices, including mass appraisal standards, if appropriate. However, a taxpayer who 20
challenges an assessment is entitled to a determination by the value adjustment board 21
or court of the appropriateness of the appraisal methodology used in making the 22
assessment. The value of property must be determined by an appraisal methodology that 23
complies with the criteria of s. 193.011 and professionally accepted appraisal practices. 24
The provisions of this subsection preempt any prior case law that is inconsistent with this 25
subsection. 26
27
(2) In an administrative or judicial action in which an ad valorem tax assessment is 28
challenged, the burden of proof is on the party initiating the challenge. 29
30
(a) If the challenge is to the assessed value of the property, the party initiating the 31
challenge has the burden of proving by a preponderance of the evidence that the 32
assessed value: 33
34
1. Does not represent the just value of the property after taking into account any 35
applicable limits on annual increases in the value of the property; 36
37
2. Does not represent the classified use value or fractional value of the property if the 38
property is required to be assessed based on its character or use; or 39
40
3. Is arbitrarily based on appraisal practices that are different from the appraisal practices 41
generally applied by the property appraiser to comparable property within the same 42
county. 43
44
(b) If the party challenging the assessment satisfies the requirements of p aragraph (a), 45
the presumption provided in subsection (1) is overcome and the value adjustment board 46
or the court shall establish the assessment if there is competent, substantial evidence of 47
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value in the record which cumulatively meets the criteria of s. 193.011 and professionally 1
accepted appraisal practices. If the record lacks such evidence, the matter must be 2
remanded to the property appraiser with appropriate directions from the value adjustment 3
board or the court, and the property appraiser must compl y with those directions. 4
5
(c) If the revised assessment following remand is challenged, the procedures described 6
in this section apply. 7
8
(d) If the challenge is to the classification or exemption status of the property, there is no 9
presumption of correctness and the party initiating the challenge has the burden of 10
proving by a preponderance of the evidence that the classification or exempt status 11
assigned to the property is incorrect. 12
13
Section 2. 14
(1) It is the express intent of the Legislature that a taxpa yer shall never have the burden 15
of proving that the property appraiser’s assessment is not supported by any reasonable 16
hypothesis of a legal assessment. All cases establishing the every -reasonable-17
hypothesis standard were expressly rejected by the Legislat ure on the adoption of chapter 18
97-85, Laws of Florida. It is the further intent of the Legislature that any cases published 19
since 1997 citing the every-reasonable-hypothesis standard are expressly rejected to the 20
extent that they are interpretative of legislative intent. 21
22
(2) This section is intended to clarify existing law and apply retroactively. 23
24
Section 3. 25
This act shall take effect upon becoming a law and shall first apply to assessments in 26
2009. 27
Approved by the Governor June 4, 2009. 28
Filed in Office Secretary of State June 4, 2009. 29
Ch. 2009-121 LAWS OF FLORIDA Ch. 2009-121 30
31
This law is now in effect and applies to the administrative review of assessments 32
beginning with 2009 assessments. 33
34
* Procedural steps for implementing this 2009 legislation for administrative reviews of 35
just valuations are presented later in this training module. 36
37
Board attorneys are responsible for ensuring that this important legislation is 38
implemented for all administrative reviews of assessments, starting in 2009. 39
40
This law significantly changed the standard of review for assessments, and Boards and 41
special magistrates must become familiar with this law to ensure its implementation. 42
43
Where appropriate, key points from this current law are presented in this and other 44
modules of this training. However, users of this training are advised to obtain a copy of 45
the current law and review it carefully to understand all of its provisions. 46
47
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The 2009 law change provides a lower standard of proof, called “preponderance of the 1
evidence,” for determining whether the assessment is incorrect. 2
3
* “Preponderance of the evidence” is a standard (level) of proof that means “greater 4
weight of the evidence” or “more likely than not.” 5
6
In determining whether the assessment is incorrect, Boards and special magistrates 7
must not use any standard of proof other than the preponderance of the evidence 8
standard, as provided in Section 194.301, F.S., as amended by Chapter 2009-121, 9
Laws of Florida (House Bill 521). 10
11
Higher standards of proof no longer apply. The higher standard of proof called “clear 12
and convincing evidence” no longer applies in the administrative review of assessments 13
and must not be used by Boards or special mag istrates. See Section 194.301, F.S., as 14
amended by Chapter 2009-121, Laws of Florida (House Bill 521). 15
16
“It is the express intent of the Legislature that a taxpayer shall never have the burden of 17
proving that the property appraiser's assessment is not supp orted by any reasonable 18
hypothesis of a legal assessment.” See Subsection 194.3015(1), F.S., as created by Chapter 2009-19
121, Laws of Florida (House Bill 521). 20
21
The current statute provides the following: “The provisions of this subsection preempt 22
any prior case law that is inconsistent with this subsection.” See Subsection 194.301(1), F.S., 23
as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 24
25
References to Florida court decisions are presented in this training. Generally, these 26
court decisions predate the 2009 changes to statutory law. The current statutory law 27
supersedes these decisions to the extent these decisions conflict with it. 28
29
Thus, the information from these court decisions, as presented in this training, has been 30
modified where appropriate for consistency with the 2009 changes in the statute. 31
32
For example, court decisions recognize that property appraisers have discretion, which 33
is limited by other provisions of law, in weighing just valuation factors and in selecting 34
an appraisal methodology. 35
36
* The current statute contains an additional requirement that the appraisal 37
methodology used in making the assessment must comply with “professionally 38
accepted appraisal practices.” 39
40
* This current requirement represents an additional statutory limitation on the property 41
appraiser’s discretion. 42
43
Therefore, where appropriate in this training, the current requirement on “professionally 44
accepted appraisal practices” has been added to modify the information from prior court 45
decisions for consistency with the current statutory law. 46
47
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* This training module includes references to this current statutory law where 1
appropriate. 2
3
This training is intended to contain information that is consistent with the current 4
statutory provisions in Sections 194.301 and 194.3015, F.S., as amended by Chapter 5
2009-121, Laws of Florida (House Bill 521). 6
7
An overall summary of the provisions of this current law is presented in Module 1 of this 8
training. Provisions of this current statute are addressed where appropriate in other 9
slides in this module and in other modules of this training. 10
11
12
Overview of Appraisal Development 13
Appraisal development, or valuation development, is the process of producing an 14
original appraisal (determination of value) using the overall appraisal process. 15
16
In administrative reviews, Boards and special magistrates are not authorized to perform 17
appraisal development and must not perform appraisal development. 18
19
Property appraisers do appraisal development as part of their annual production of 20
assessment rolls. Private sector appraisers also do appraisal development. 21
22
Generally, property appraisers use a profess ionally accepted methodology called mass 23
appraisal to develop tangible personal property (TPP) just values each year. 24
25
The Tangible Personal Property (TPP) Appraisal Guidelines generally describe the 26
mass appraisal development process for TPP under Florida law. 27
28
It is implicit in mass appraisal that, even when properly specified and calibrated mass 29
appraisal models are used, some individual value conclusions will not meet standards of 30
reasonableness, consistency, and accuracy. 31
32
33
Legal Provisions on the Tangible Personal Property Appraisal 34
Guidelines 35
Below are provisions from Section 195.032, Florida Statutes, describing the Tangible 36
Personal Property Appraisal Guidelines. 37
38
1. “The standard measures of value shall provide guidelines for the valuation of 39
property and methods for property appraisers to employ in arriving at the just 40
valuation of particular types of property consistent with section 193.011...” 41
42
2. “The standard measures of value shall assist the property appraiser in the valuation 43
of property and be deemed prima facie correct, but shall not be deemed to establish 44
the just value of any property.” 45
46
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See Rule 12D-51.002, Florida Administrative Code, for more information on the 1
Tangible Personal Property (TPP) Appraisal Guidelines. 2
3
4
Florida Information on Appraisal Development 5
The Tangible Personal Property Appraisal Guidelines contain descriptions of appraisal 6
methods that may be used by property appraisers to develop just valuations of tangible 7
personal property consistent with Florida law. 8
9
Boards and special magistrates are expected to understand these guidelines for 10
purposes of reviewing challenged assessments. 11
12
A copy of these guidelines is available at the following web address: 13
http://floridarevenue.com/dor/property/tpp/ 14
15
Section 4, Article VII, of the Florida Constitution, requires a just valuation of all property 16
for ad valorem taxation, with certain conditions. 17
18
Florida’s constitution has “delegated to the Legislature the responsibility for deciding the 19
specifics of how that ‘just valuation’ would be secured.” Sunset Harbour Condominium 20
Ass’n v. Robbins, 914 So.2d 925, 931 (Fla. 2005), citing Collier County v. State, 733 So.2d 21
1012, 1019 (Fla. 1999). 22
23
In section 193.011, F.S., the Florida Legislature has effectuated the constitutional 24
requirement for just valuation by specifying the eight factors that must be considered in 25
arriving at just valuations of all property. 26
27
In 1963, the Legislature enacted the first seven just valuation factors, effective January 28
1, 1964. See Chapter 63-250, Laws of Florida, creating Section 193.021, F.S., which was re-29
numbered in 1969 as Section 193.011, F.S., by Chapter 69-55, Laws of Florida. 30
31
In 1965, the Florida Supreme Court held that just value was synonymous with fair 32
market value and defined fair market value as: “the amount a purchaser willing but not 33
obliged to buy, would pay to one willing but not obliged to sell.” See Walter v. Schuler, 176 34
So.2d 81 (Fla. 1965). 35
36
* Neither the term “fair market value” nor the term “market value” appears in the 37
Florida Constitution. The term “just valuation” appears in the constitution once and 38
the term “just value” appears in the constitution a total of 22 times, all of which te rms 39
appear in Article VII pertaining to the valuation of property for ad valorem taxation. 40
41
* NOTE: The eighth just valuation criterion did not exist at the time of Walter v. 42
Schuler. The Legislature can override decisional law. See Dept. of Environmental 43
Protection v. Contractpoint Florida Parks, 986 So.2d 1260, 1269 (Fla. 2008). 44
45
Then, in 1967, the legislature added the eighth just valuation criterion (net proceeds of 46
sale) as a new Subsection 193.021(8), Florida Statutes. See Chapter 67-167, Laws of 47
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Florida, creating Subsection 193.021(8), F.S., which was re-numbered in 1969 as Subsection 1
193.011(8), F.S., by Chapter 69-55, Laws of Florida. 2
3
Subsection 193.011(8), F.S., generally known as the “eighth criterion,” was last 4
amended in 1979 and is presented below in its entirety. 5
6
“The net proceeds of the sale of the property, as received by the seller, after deduction 7
of all of the usual and reasonable fees and costs of the sale, including the costs and 8
expenses of financing, and allowance for unconventiona l or atypical terms of financing 9
arrangements. When the net proceeds of the sale of any property are utilized, directly or 10
indirectly, in the determination of just valuation of realty of the sold parcel or any other 11
parcel under the provisions of this section, the property appraiser, for the purposes of 12
such determination, shall exclude any portion of such net proceeds attributable to 13
payments for household furnishings or other items of personal property.” 14
15
* The eighth criterion must be properly considered in the just valuation of tangible 16
personal property. See Turner v. Tokai Financial Services, Inc., 767 So.2d 494 (Fla. 2nd 17
DCA 2000) review denied 780 So.2d 916 (Fla. 2001). 18
19
NOTE: More information on the eighth criterion is presented later in this section and in 20
the last two sections of this module. 21
22
In 2007, the United States Supreme Court held that appraisal is an “applied science.” 23
See CSX Transportation, Inc. v. Georgia State Board of Equalization, 552 U.S. 9 (2007). 24
25
The following excerpt states that mass appraisal is a combination of science and art, 26
and requires sound judgment. See Fundamentals of Mass Appraisal (Kansas City, MO: 27
International Association of Assessing Officers, 2011), pages 135-136. 28
29
• “Thus, modeling is a combination of the proper application of statistical tools 30
(science) and market experience and sound judgment (art).” 31
32
The following two excerpts describe the context and application of sound appraisal 33
judgment in the appraisal process. See Uniform Appraisal Standards for Federal Land 34
Acquisition 2016 (Appraisal Foundation), pages 204 and 203, respectively. 35
36
• “Appraisers must exercise sound judgment based on known pertinent facts and 37
circumstances, and it is their responsibility to obtain knowledge of all pertinent facts 38
and circumstances that can be acquired with diligent inquiry and search. They must 39
then weigh and consider the relevant facts, exercise sound judgment, and develop 40
an opinion that is completely unbiased by any consideration favoring either the 41
landowner or the government.” 42
43
• “Serving this important function requires expertise, diligence, sound judgment, and 44
objectivity...” 45
46
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Judgment is not a substitute for appraisal expertise, diligence, or objectivity. Sound 1
appraisal judgment must be exercised in accordance with applicable legal criteria 2
including professionally accepted appraisal practices. See Section 194.301(1), F.S., and 3
Darden Restaurants, Inc. v. Singh, 266 So.3d 228 (Fla. 5th DCA 2019), referring to “professional 4
judgment” in just valuations under 2009 legislation that amended Section 194.301, F.S. 5
6
7
Note: As indicated following, the property appraiser’s discretion is not unbridled and is 8
limited by several other provisions of law including Sections 194.301 and 194.3015, 9
F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 10
11
Several Florida court decisions have described the limitations on the property 12
appraiser’s discretion, including the five indicated below: 13
14
1. The statute on just valuation factors (now Section 193.011, F.S.) was not intended to 15
give property appraisers unbridled discretion; rather, the statute’s purpose is to 16
require property appraisers to adhere to the constitutional mandate of just valuation. 17
See Walter v. Schuler, 176 So.2d 81 (Fla. 1965); Section 193.011, F.S.; and Chapter 67-167, 18
Laws of Florida, creating Subsection 193.021(8), F.S., which was re-numbered in 1969 as 19
Subsection 193.011(8), F.S., by Chapter 69-55, Laws of Florida. 20
21
2. The property appraiser’s discretion is limited by the standard of just valuation and by 22
the statutory criteria for just valuation (now Section 193.011, F.S.). See Keith 23
Investments, Inc. v. James, 220 So.2d 695 (Fla. 4th DCA 1969). 24
25
3. The statutory valuation criteria are intended to limit the property appraiser’s 26
discretion and to tie the property appraiser more closely to the uniform constitutional 27
standard of just valuation. See Cassady v. McKinney, 296 So.2d 94 (Fla. 2nd DCA 1974). 28
29
4. The property appraiser’s discretion is limited by the constitutional requirement for a 30
just valuation and by statute (Section 193.011, F.S.). See In re Steffen, 342 B.R. 861 31
(Bkrtcy. M.D. Fla. 2006). 32
33
5. The property appraiser’s discretion is limited by professionally accepted appraisal 34
practices. See Darden Restaurants, Inc. v. Singh, 266 So.3d 228 (Fla. 5th DCA 2019), citing 35
Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521) , 36
which requires that the assessment methodology comply with professionally accepted 37
appraisal practices. 38
39
The property appraiser is required to consider, but is not required to use, all three 40
approaches to value. See Mastroianni v. Barnett Banks, Inc., 664 So.2d 284 (Fla. 1st DCA 41
1995) review denied 673 So.2d 29 (Fla. 1996). 42
43
* Note: However, a presumption of correctness for the assessment will not be 44
established if the property appraiser does not prove by a preponderance of the 45
evidence that the just value was developed in compliance with Section 193.011, 46
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F.S., and professionally accepted appraisal practices, including mass appraisal 1
standards, if appropriate. 2
3
The property appraiser’s valuation methodology must comply with the criteria in Secti on 4
193.011, F.S., and professionally accepted appraisal practices. See Section 194.301, F.S., 5
as amended by Chapter 2009-121, Laws of Florida (House Bill 521), and Section 193.011, F.S. 6
7
Florida law defines real property as land, buildings, fixtures, and a ll other improvements 8
to land. See Subsection 192.001(12), F.S. 9
10
Florida law defines personal property as being divided into the following four categories: 11
1) household goods, 2) intangible personal property, 3) inventory, and 4) tangible 12
personal property. See Subsection 192.001(11), F.S. 13
14
Subsection 193.011(8), F.S., states the following in pertinent part: “When the net 15
proceeds of the sale of any property are utilized, directly or indirectly, in the 16
determination of just valuation of realty of the sold p arcel or any other parcel under the 17
provisions of this section, the property appraiser, for the purposes of such 18
determination, shall exclude any portion of such net proceeds attributable to payments 19
for household furnishings or other items of personal property.” 20
21
The eighth criterion provides for the deduction of personal property in arriving at net 22
proceeds of sale of real property, but does not specifically address the deduction of 23
personal property to arrive at net proceeds of sale of tangible personal property. 24
25
* However, the Florida Supreme Court found that it is un constitutional for a property 26
appraiser to include intangible personal property value in the just valuation of 27
tangible personal property. See Havill v. Scripps Howard Cable Co., 742 So.2d 210 (Fla. 28
1998). 29
30
* Given this decision and the statutory definition of personal property that includes 31
intangible personal property, the personal property component of the eighth criterion 32
must be properly considered in the just valuation of tangible personal property. 33
34
The just value of personal property types other than tangible personal property must be 35
excluded from just valuations of tangible personal property. 36
37
38
Scope of Authority for Administrative Reviews 39
The administrative review of just valuations is performed by Boards or special 40
magistrates under Chapter 194, Parts 1 and 3, F.S.; Rule Chapters 12D-9, 12D-10, and 41
12D-16, F.A.C.; and other provisions of Florida law. 42
43
The administrative review process performed by Boards and special magistrates is 44
separate and different from the mass appraisal development process performed by 45
property appraisers. 46
47
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In administrative reviews, Boards and special magistrates are not authorized to perform 1
appraisal development and must not perform appraisal development. 2
3
In administrative reviews, Boards and special magistrates are not authorized to perform 4
any independent factual research into attributes of the subject property or any other 5
property. 6
7
Boards and special magistrates must follow the provisions of law on the administrative 8
review of assessments. See Chapter 194, Parts 1 and 3, F.S.; Rule Chapters 12D-9, 12D-10, 9
and 12D-16, F.A.C.; and other provisions of Florida law. 10
11
In establishing revised just values when required by law, Boards and special 12
magistrates are bound by the same standards and practices as property appraisers. See 13
Rule 12D-10.003(1), F.A.C., treated favorably in Bystrom v. Equitable Life Assurance Society, 14
416 So.2d 1133 (Fla. 3d DCA 1982), and see Section 194.301, F.S., as amended by Chapter 15
2009-121, Laws of Florida (House Bill 521). 16
17
* However, when observing this requirement, Boards and sp ecial magistrates must 18
act within their scope of authority. 19
20
The effective date of administrative review is January 1 each year, and the property 21
interest to be reviewed is the unencumbered fee simple estate. 22
23
The Board or special magistrate has no authority to develop original just valuations of 24
property and may not take the place of the property appraiser, but shall revise the 25
assessment when required under Florida law. See Rule 12D-10.003(1), F.A.C., and Section 26
194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 27
28
* See Simpson v. Merrill, 234 So.2d 350 (Fla. 1970), stating that a court may not take the place 29
of the property appraiser but may reduce the assessment. 30
31
* Also, see Blake v. Farrand Corporation, Inc., 321 So.2d 118 (Fla. 3d DCA 1975), holding 32
that the determination of the weight to be accorded evidence rests upon the trial judge, as 33
trier of facts, and if competent substantial evidence is introduced demonstrating the 34
assessment to be erroneous, the judge may reduce that assessment. 35
36
The Board or special magistrate is required to revise the assessment under the 37
conditions specified in Section 194.301, F.S., as amended by Chapter 2009-121, Laws 38
of Florida (House Bill 521). These conditions are described in detail later in this module. 39
40
“In establishing a revised just value, the board or special magistrate is not restricted to 41
any specific value offered by one of the parties.” See Rule 12D-9.027(2)(b)3.a., F.A.C. 42
43
* Also, see Blake v. Farrand Corporation, Inc., 321 So.2d 118 (Fla. 3d DCA 1975), holding 44
that the reviewing judge could arrive at a value that was different from either of the values 45
presented by the parties when the judge’s value was based on competent substantial evidence 46
in the record. 47
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1
The Board or special magistrate is authorized to make calculations, and to make an 2
adjustment to the property appraiser’s value based on competent substantial evidence 3
of just value in the record. See Section 194.301, F.S., as amended by Chapter 2009-121, Laws 4
of Florida (House Bill 521), and see Cassady v. McKinney, 343 So.2d 955 (Fla. 2nd DCA 1977), 5
stating that when the record contains competent substantial evidence of value the court may 6
make necessary value calculations or adjustments based on such evidence. 7
8
If the hearing record does not contain competent substantial evidence of just value, the 9
Board or special magistrate cannot substitute its own independent judgment. See Section 10
194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521), and see 11
Cassady v. McKinney, 343 So.2d 955 (Fla. 2nd DCA 1977), stating that in the absence of 12
competent substantial evidence of value the court cannot substitute its own independent 13
judgment. 14
15
The Board or special magistrate has no authority to adjust assessments across-the-16
board. Their authority to review just valuations is limited to the review of individual 17
petitions filed. See Spooner v. Askew, 345 So.2d 1055 (Fla. 1976). 18
19
The Board has the limited function of reviewing and correcting individual assessments 20
developed by the property appraiser. See Bath Club, Inc. v. Dade County, 394 So.2d 110 21
(Fla. 1981). 22
23
The Board has no authority to review, on its own volition, a decision of the property 24
appraiser to deny an exemption. See Redford v. Department of Revenue, 478 So.2d 808 25
(Fla. 1985). 26
27
“The powers, authority, duties and functions of the board, insofar as they are 28
appropriate, apply equally to real property and tangible personal property (including 29
taxable household goods).” See Rule 12D-10.003(2), F.A.C. 30
31
In administrative reviews, Boards and special magistrates are not authorized to consider 32
any evidence except evidence properly presented by the parties and properly admitted 33
into the record for consideration. See Rule 12D-9.025(4)(a), F.A.C. 34
35
In addition to admitted evidence, Boards and special magistrates are authorized to 36
consider only the following items in administrative reviews. 37
38
1. Legal advice from the Board legal counsel; 39
40
2. Information contained or referenced in the Department’s Uniform Policies and 41
Procedures Manual and Accompanying Documents; 42
43
3. Information contained or referenced in the Department’s training for value 44
adjustment boards and special magistrates; and 45
46
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4. Professional texts that pertain only to professionally accepted appraisal practices 1
that are not inconsistent with Florida law. 2
3
4
Definition of Tangible Personal Property (TPP) 5
“Tangible personal property’ means all goods, chattels, and other articles of value (but 6
does not include the vehicular items enumerated in s. 1(b), Art. VII of the State 7
Constitution and elsewhere defined) capable of manual possession and whose chief 8
value is intrinsic to the article itself. ‘Construction work in progress’ consists of those 9
items of tangible personal property commonly known as fixtures, machinery, and 10
equipment when in the process of being installed in new or expanded improvements to 11
real property and whose value is materially enhanced upon connection or use with a 12
preexisting, taxable, operational system or facility. Construction work in progress shall 13
be deemed substantially completed when connected with the preexisting, tax able, 14
operational system or facility. Inventory and household goods are expressly excluded 15
from this definition.” See Subsection 192.001(11)(d), F.S. 16
17
18
Exemptions for Tangible Personal Property 19
Chapter 196, Florida Statutes, exempts certain property from the TPP tax. 20
21
Exempt property may be subject to TPP return filing requirements. 22
23
TPP may be exempt only if it meets the requirements for an exemption set forth in 24
Chapter 196, Florida Statutes. 25
26
NOTE: For those interested, more information on exemptions for tangible personal 27
property is presented in Module 9 of this training. However, appraiser special 28
magistrates are not required to complete Module 9 of this training. 29
30
31
Requirement for Taxpayers to File TPP Returns 32
A TPP return (Form DR-405) is a Florida Department of Revenue form that owners of 33
certain TPP are required by law to complete and file with the property appraiser each 34
year by April 1st, unless a lawful extension has been granted. 35
36
Form DR-405 can be viewed on the Department’s website at the following link: 37
http://floridarevenue.com/dor/property/tpp/ 38
39
Owners of TPP valued at $25,000 or less may receive a filing waiver from the property 40
appraiser upon filing an initial return. 41
42
Florida law provides for financial penalties when TPP returns are not lawfully filed. See 43
Sections 193.072 and 196.183, F.S. 44
45
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The TPP return contains information that the property appraiser may consider in arriving 1
at just value. 2
3
The TPP return is the property appraiser’s primary data collection method for TPP 4
characteristics. 5
6
Other data collection methods, such as physical inspections, may be used when 7
necessary. 8
9
A TPP assessment may not be contested with the Board unless the required TPP return 10
was timely filed with the property appraiser. The term “timely filed” means filed by the 11
deadline established in section 193.062, F.S., or before the expiration of any extension 12
granted under section 193.063, F.S. If notice is mailed pursuant to section 13
193.073(1)(a), F.S., a complete return must be submitted under section 193.073(1)(a), 14
F.S., for the assessment to be contested. See Subsection 194.034(1)(j), F.S. 15
16
17
The Eight Factors of Just Valuation 18
Section 193.011, Florida Statutes, provides the following on just valuation. 19
“Factors to consider in deriving just valuation . – In arriving at just valuation as 20
required under s. 4, Art. VII of the State Constitution, the property appraiser shall take 21
into consideration the following factors: 22
23
(1) The present cash value of the property, which is the amount a willing purchaser 24
would pay a willing seller, exclusive of reasonable fees and costs of purchase, in cash 25
or the immediate equivalent thereof in a transaction at arm's length; 26
27
(2) The highest and best use to which the property can be expected to be put in the 28
immediate future and the present use of the property, taking into consideration the 29
legally permissible use of the property, including any applicable judicial limitation, local 30
or state land use regulation, or historic preservation ordinance, and any zoning 31
changes, concurrency requirements, and permits necessary to achieve the highest and 32
best use, and considering any moratorium imposed by executive order, law, ordinance, 33
regulation, resolution, or proclamation adopted by any governmental body or agency or 34
the Governor when the moratorium or judicial limitation prohibits or restricts the 35
development or improvement of property as otherwise authorized by applicable law. 36
The applicable governmental body or agency or the Governor shall notify the property 37
appraiser in writing of any executive order, ordinance, regulation, resolution, or 38
proclamation it adopts imposing any such limitation, regulation, or moratorium; 39
40
(3) The location of said property; 41
42
(4) The quantity or size of said property; 43
44
(5) The cost of said property and the present replacement value of any improvements 45
thereon; 46
47
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(6) The condition of said property; 1
2
(7) The income from said property; and 3
4
(8) The net proceeds of the sale of the property, as received by the seller, after 5
deduction of all of the usual and reasonable fees and costs of the sale, including the 6
costs and expenses of financing, and allowance for unconventional or atypical terms of 7
financing arrangements. When the net proceeds of the sale of any property are utilized, 8
directly or indirectly, in the determination of just valuation of realty of the sold parcel or 9
any other parcel under the provisions of this section, the property appraiser, for the 10
purposes of such determination, shall exclude any portion of such net proceeds 11
attributable to payments for household furnishings or other items of personal property.” 12
13
14
Proper Consideration of the Just Valuation Factors 15
Section 193.011, Florida Statutes, states that property appraisers must consider the 16
factors of just valuation. 17
18
Florida court decisions have used the terms lawfully, properly, duly, and carefully to 19
describe the standard of care required of property appraisers in considering each of the 20
eight factors. 21
22
* For example, one court decision used the terms lawfully and properly to describe the 23
property appraiser’s standard of care. See Mazourek v. Wal-Mart Stores, 831 So.2d 85 24
(Fla. 2002). 25
26
* Another court decision used the term duly to describe the property appraiser’s 27
standard of care. See Atlantic International Investment Corp. v. Turner, 383 So.2d 919 28
(Fla. 5th DCA 1980). 29
30
* Other court decisions and the Florida Attorney General have used the terms 31
carefully and careful to describe the property appraiser’s standard of care for 32
considering each of the eight factors. 33
34
* The property appraiser is required to carefully consider each factor and give each 35
factor the weight justified by the facts, but is not required to give e ach factor equal 36
weight. See Lanier v. Walt Disney World Co., 316 So.2d 59 (Fla. 4th DCA 1975), and 37
Daniel v. Canterbury Towers, Inc., 462 So.2d 497 (Fla. 2nd DCA 1985). Also, see Florida 38
Attorney General’s Opinion AGO 77-106, September 29, 1977. 39
40
* ”Just value is to be determined by giving careful consideration to each of the factors 41
contained in s. 193.011 and by giving such weight to a factor as a particular factual 42
situation may justify.” See Florida Attorney General’s Opinion AGO 77-106, September 43
29, 1977. 44
45
After lawfully considering the factors, the property appraiser may discard entirely any 46
factor that is not probative (indicative) of just value under the circumstances, as long as 47
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the appraisal methodology used complies with professionally accepted appraisal 1
practices. See Mazourek v. Wal-Mart Stores, 831 So.2d 85 (Fla. 2002), and Section 194.301, 2
F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). Also, see In re 3
Steffen, 342 B.R. 861 (Bkrtcy. M.D. Fla. 2006). 4
5
However, the property appraiser cannot simply “out of hand” reject, without careful 6
consideration, a just valuation factor as being inappropriate in a particular case. See 7
Daniel v. Canterbury Towers, Inc., 462 So.2d 497 (Fla. 2nd DCA 1985). 8
9
In administrative reviews, the property appraiser is responsible for proving by a 10
preponderance of the evidence that he or she complied with Section 193.011, F.S., by 11
properly considering each of the eight factors in developing original just valuations. See 12
Subsection 194.301(1), F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 13
521). 14
15
If the property appraiser does not prove by a preponderance of the evidence that he or 16
she properly considered each of the eight factors in developing the just value 17
assessment, the Board or special magistrate must conclude that the property appra iser 18
did not establish a presumption of correctness for the assessment. See Subsection 19
194.301(1), F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 20
21
22
Consideration of Previous Year’s Board-Adjusted Assessment 23
Section 193.016, Florida Statutes, provides the following. 24
25
“Property appraiser's assessment; effect of determinations by value adjustment 26
board. – If the property appraiser's assessment of the same items of tangible personal 27
property in the previous year was adjusted by the value adjustment board and the 28
decision of the board to reduce the assessment was not successfully appealed by the 29
property appraiser, the property appraiser shall consider the reduced values determined 30
by the value adjustment board in assessing those items of tangible personal property. If 31
the property appraiser adjusts upward the reduced values previously determined by the 32
value adjustment board, the property appraiser shall assert additional basic and 33
underlying facts not properly considered by the value adjustment board as the basis for 34
the increased valuation notwithstanding the prior adjustment by the board.” 35
36
* This statute was upheld by the Florida Supreme Court. See Department of Revenue v. 37
Howard, 916 So.2d 640 (Fla. 2005). 38
39
40
Standard of Proof for Administrative Reviews 41
In administrative reviews, Boards or special magistrates must consider admitted 42
evidence and then compare the weight of the evidence to a “standard of proof” to make 43
a determination on an issue under review. 44
45
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Generally, the term “evidence” means something (including testimony, documents, and 1
tangible objects) that tends to prove or disprove the existence of a disputed fact. See 2
Black’s Law Dictionary, Eighth Edition, page 595. 3
4
“Standard of proof” means the level of proof needed by the Board or special magistrate 5
to reach a particular conclusion. See Rule 12D-9.027(5), F.A.C. 6
7
The standard of proof that applies in administrative reviews is called “preponderance of 8
the evidence,” which means “greater weight of the evidence.” See Rule 12D-9.027(5), 9
F.A.C. 10
11
Also, the Florida Supreme Court has defined “preponderance of the evidence” as 12
“greater weight of the evidence” or evidence that “more likely than not” tends to prove a 13
certain proposition. See Gross v. Lyons, 763 So.2d 276 (Fla. 2000). 14
15
“Greater weight of the evidence” means the more persuasive and convincing force and 16
effect of the entire evidence in the case. See Florida Standard Civil Jury Instructions, 17
approved for publication by the Florida Supreme Court. 18
19
The Board or special magistrate must determine whether the admitted evidence is 20
sufficiently relevant and credible to reach the “preponderance of the evidence” standard 21
of proof. 22
23
This standard of proof is the scale by which the Board or special magistrate measures 24
the weight (relevance and credibility) of the admitted evidence in making a 25
determination. 26
27
A higher standard of proof called “clear and convincing evidence” no longer applies in 28
the administrative review of assessments and must not be used by Boards or special 29
magistrates. See Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida 30
(House Bill 521). 31
32
In no case shall the taxpayer be required to prove that the property appraiser’s 33
assessment is not supported by any reasonable hypothesis of a legal assessment. See 34
Subsection 194.3015(1), F.S., as created by Chapter 2009-121, Laws of Florida (House Bill 521). 35
36
37
Petitioner Not Required to Present Opinion or Estimate of Value 38
The petitioner is not required to provide an opinion or estimate of just value. 39
40
No provision of law requires the petitioner to present an opinion or estimate of value. 41
42
The Board or special magistrate is not authorized to require a petitioner to provide an 43
opinion or estimate of just value. 44
45
The petitioner has the option of choosing whether to present an opinion or estimate of 46
just value. 47
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1
2
Presentation of Evidence by the Parties 3
In a Board or special magistrate hearing, t he property appraiser is responsible for 4
presenting relevant and credible evidence in support of his or her determination. See 5
Rule 12D-9.025(3)(a), F.A.C. 6
7
Under Subsection 194.301(1), F.S., in a hearing on just value, the first issue to be 8
considered is whether the property appraiser establishes a presumption of correctness . 9
10
* The property appraiser shall present evidence on this issue first. See Rule 12D-11
9.024(7), F.A.C. 12
13
* While the property appraiser is required to present evidence on this issue first, the 14
Board or special magistrate must allow the petitioner a chance to present evidence 15
on this issue before deciding whether the presumption of correctn ess is established. 16
17
“In a Board or special magistrate hearing, t he petitioner is responsible for presenting 18
relevant and credible evidence in support of his or her belief that the property 19
appraiser’s determination is incorrect.” See Rule 12D-9.025(3)(a), F.A.C. 20
21
If the property appraiser establishes a presumption of correctness by proving by a 22
preponderance of the evidence that the just value assessment was arrived at by 23
complying with Section 193.011, F.S., and professionally accepted app raisal practices, 24
including mass appraisal standards, if appropriate, the petitioner must prove by a 25
preponderance of the evidence that: 26
27
1. The property appraiser’s just valuation does not represent just value; or 28
29
2. The property appraiser’s just valuation is arbitrarily based on appraisal practices that 30
are different from the appraisal practices generally applied by the property appraiser 31
to comparable property within the same county. See Subsection 194.301(2)(a), F.S., as 32
amended by Chapter 2009-121, Laws of Florida (House Bill 521). 33
34
However, if the property appraiser does not establish a presumption of correctness 35
because he or she did not prove by a preponderance of the evidence that the just 36
valuation was arrived at by complying with Section 193.011 , F.S., and professionally 37
accepted appraisal practices, including mass appraisal standards, if appropriate, the 38
Board or special magistrate must take one of the two following actions: 39
40
1. If the record contains competent substantial evidence of just valu e that cumulatively 41
meets the requirements of Section 193.011, F.S., and professionally accepted 42
appraisal practices, the Board or special magistrate must establish a revised just 43
value; or 44
45
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2. If the record lacks such competent substantial evidence, the Board or special 1
magistrate must remand the assessment to the property appraiser with appropriate 2
directions with which the property appraiser must comply. 3
4
5
Evaluation of Evidence by the Board or Special Magistrate 6
Under Rule 12D-9.025(1), F.A.C., as part of administrative reviews, the Board or special 7
magistrate must: 8
9
1. Review the evidence presented by the parties; 10
11
2. Determine whether the evidence presented is admissible; 12
13
3. Admit the evidence that is admissible; 14
15
4. Identify the evidence presented to indicate that it is admitted or not admitted; and 16
17
5. Consider the admitted evidence. 18
19
The term “admitted evidence” means evidence that has been admitted into the record 20
for consideration by the Board or special magistrate. See Rule 12D-9.025(2)(a), F.A.C. 21
22
“No evidence shall be considered by the board or special magistrate except when 23
presented and admitted during the time scheduled for the petitioner’s hearing, or at a 24
time when the petitioner has been given reasonable notice.” See Rule 12D-9.025(4)(a), 25
F.A.C. 26
27
“If a party submits evidence to the board clerk prior to the hearing, the board or special 28
magistrate shall not review or consider such evidence prior to the hearing.” See Rule 29
12D-9.025(4)(b), F.A.C. 30
31
Rule 12D-9.025(2)(d), F.A.C., contains the following four provisions: 32
33
1. “As the trier of fact, the board or special magistrate may independently rule on the 34
admissibility and use of evidence.” 35
36
2. “If the board or special magistrate has any questions relating to the admissibility and 37
use of evidence, the board or special magistrate should consult with the board legal 38
counsel.” 39
40
3. “The basis for any ruling on admissibility of evidence must be reflected in the 41
record.” 42
43
4. “The special magistrate may delay ruling on the question during the hearing and 44
consult with board legal counsel after the hearing.” 45
46
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The Board or special magistrate shall consider the admitted evidence. See Rule 12D-1
9.025(1)(d), F.A.C. 2
3
A property owner generally is qualified, on account of ownership, to testify regarding the 4
just value of his or her property. See In re Steffen, 342 B.R. 861 (Bkrtcy. M.D. Fla. 2006). 5
6
NOTE: More information on the admissibility of evidence is presented in Module 4 of 7
this training. 8
9
10
Sufficiency of Evidence 11
When applied to evidence, the term “sufficient” is a test of adequacy. See Rule 12D-12
9.027(6), F.A.C. 13
14
Sufficient evidence is admitted evidence that has enough overall weight, in terms of 15
relevance and credibility, to legally justify a particular conclusion. See Rule 12D-9.027(6), 16
F.A.C. 17
18
The Florida Supreme Court stated the following regarding sufficient evidence: 19
“Sufficiency is a test of adequacy. Sufficient evidence is such evidence, in character, 20
weight, or amount, as will legally justify the judicial or official action demanded.” See 21
Tibbs v. State, 397 So.2d 1120 (Fla. 1981). Also, see Moore v. State, 800 So.2d 747 (Fla. 5th 22
DCA 2001). 23
24
A particular conclusion is justified when the overall weight of the admitted evidence 25
meets the standard of proof that applies to the issue under consideration. See Rule 12D-26
9.027(6), F.A.C. 27
28
The Board or special magistrate must consider the admitted evidence and determine 29
whether it is sufficiently relevant and credible to reach the “preponderance of the 30
evidence” standard of proof explained previously. See Rules 12D-9.025(1)(d), 12D-31
9.027(5), and 12D-9.027(6), F.A.C. 32
33
Rule 12D-9.027(6), F.A.C., states the following in pertinent part: “In determining 34
whether the admitted evidence is sufficient for a particular issue under consideration, 35
the board or special magistrate shall: 36
37
(a) Consider the relevance and credibility of the admitted evidence as a whole, 38
regardless of which party presented the evidence; 39
40
(b) Determine the relevance and credibility, or overall weight, of the evidence; 41
42
(c) Compare the overall weight of the evidence to the standard of proof; 43
44
(d) Determine whether the overall weight of the evidence is sufficient to reach the 45
standard of proof; and 46
47
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(e) Produce a conclusion of law based on the determination of whether the overall 1
weight of the evidence has reached the standard of proof.” 2
3
For administrative reviews of just valuations, “relevant evidence” is evidence that is 4
reasonably related, directly or indirectly, to the statutory criteria that apply to the just 5
valuation of the petitioned property. See Rule 12D-9.025(2)(b), F.A.C. 6
7
* This description means the evidence meets or exceeds a minimum level of 8
relevance necessary to be admitted for consideration, but does not necessarily 9
mean that the evidence has sufficient relevance to legally justify a particular 10
conclusion. See Rule 12D-9.025(2)(b), F.A.C. 11
12
In evaluating the relevance of evidence, the Board or special magistrate must consider, 13
as of the January 1 assessment date, how well the evidence relates to the petitioned 14
property and to the statutory criteria found in Section 193.011, F.S., and in Section 15
194.301, F.S. 16
17
For administrative reviews of just valuations, “credible evidence” means evidence that is 18
worthy of belief (believable). See Black’s Law Dictionary, Eighth Edition, page 596. 19
20
NOTE: More information on evaluating the relevance and credibility of evidence is 21
presented in Module 11 of this training. 22
23
By itself, the property record card is not sufficient evidence for establishing a 24
presumption of correctness for the assessment under Subsection 194.301(1), F.S. 25
26
Materials describing the general appraisal practices of the property appraiser a lone, 27
without discussing how those practices were applied to the assessment at issue, are not 28
sufficient to establish a presumption of correctness for the assessment. See Property Tax 29
Informational Bulletin PTO 09-29. 30
31
The approval of an assessment roll by the Department of Revenue is not evidence that 32
a particular assessment was made in compliance with statutory requirements and is not 33
sufficient to establish a presumption of correctness for the assessment. See Property Tax 34
Informational Bulletin PTO 09-29. 35
36
37
Requirements for Establishing a Presumption of Correctness 38
A presumption of correctness for the assessment is not established unless the property 39
appraiser proves by a preponderance of the evidence that the property appraiser’s just 40
valuation methodology complies with Section 193.011, F.S., and professionally 41
accepted appraisal practices, including mass appraisal standards, if appropriate. See 42
Rule 12D-9.027(2)(a), F.A.C. 43
44
A presumption of correctness for the assessment is established only when the property 45
appraiser proves by a preponderance of the evidence that the property appraiser’s just 46
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valuation methodology complies with Section 193.011, F.S., and professionally 1
accepted appraisal practices, including mass appraisal standards, if appropria te. 2
3
4
Requirements for Overcoming a Presumption of Correctness 5
If the property appraiser establishes a presumption of correctness, the petitioner can 6
overcome the presumption of correctness by proving by a preponderance of the 7
evidence one of the following: 8
9
1. The property appraiser’s just valuation does not represent just value; or 10
11
2. The property appraiser’s just valuation is arbitrarily based on appraisal practices that 12
are different from the appraisal practices generally applied by the property apprai ser 13
to comparable property within the same county. See Subsection 194.301(2)(a), F.S., as 14
amended by Chapter 2009-121, Laws of Florida (House Bill 521). 15
16
If the property appraiser establishes a presumption of correctness and the petitioner 17
does not overcome the presumption of correctness as described above, the 18
assessment stands. 19
20
21
Establishing a Revised Just Value or Remanding the Assessment 22
If the property appraiser does not establish a presumption of correctness for the 23
assessment, or if the petitioner overcomes the presumption of correctness, the Board or 24
special magistrate must take one of the two following actions: 25
26
1. If the record contains competent substantial evidence of just value that cumulatively 27
meets the requirements of Section 193.011, F.S., and professionally accepted 28
appraisal practices, the Board or special magistrate must establish a revised just 29
value; or 30
31
2. If the record lacks such competent substantial evidence, the Board or special 32
magistrate must remand the assessment to the property appraiser with appropriate 33
directions with which the property appraiser must comply. 34
35
NOTE: Information on the procedural requirements for remanded assessments is 36
presented in Module 5 of this training. 37
38
39
Competent Substantial Evidence for Establishing a Revised Just 40
Value 41
Competent substantial evidence for establishing a revised just value, as part of an 42
administrative review under Chapter 194, Parts 1 and 3, F.S., means evidence that: 43
44
1. Cumulatively meets the criteria of Section 193.0 11, F.S., and professionally 45
accepted appraisal practices; 46
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1
2. Tends to prove (is probative of) just value as of January 1 of the assessment year 2
under review; 3
4
3. Is sufficiently relevant and credible to be accepted as adequate to support (legally 5
justify) the conclusion reached; and 6
7
4. Otherwise meets all requirements of law. 8
9
10
Establishment of Revised Just Values in Administrative Reviews 11
The Board or special magistrate is required to establish a revised just value under either 12
of the two following conditions: 13
14
1. The property appraiser does not establish a presumption of correctness for the 15
assessment and the hearing record contains competent substantial evidence for 16
establishing a revised just value as described above; or 17
18
2. The petitioner overcomes a presumption of correctness established by the property 19
appraiser and the hearing record contains competent substantial evidence for 20
establishing a revised just value as described above. 21
22
Within their scope of authority, the Board or special magistrate shall establish a revised 23
just value based upon the competent substantial evidence for establishing a revised just 24
value. See Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House 25
Bill 521). 26
27
Prior to 2009 and the adoption of Hou se Bill 521, Section 194.301, F.S., provided that 28
the Board may establish the assessment when authorized. 29
30
However, the current statute, effective for administrative reviews in 2009, specifically 31
requires that the Board shall establish the just value when authorized by law. See Section 32
194.301, F.S., as amended by Chapter 2009-121, Laws of Florida (House Bill 521). 33
34
“In establishing a revised just value, the board or special magistrate is not restricted to 35
any specific value offered by one of the parties.” See Rule 12D-9.027(2)(b)3.a., F.A.C. 36
37
In establishing a revised just value when required by law, Boards and special 38
magistrates are not required, and are not authorized, to complete an independent 39
valuation approach. 40
41
The establishment of a revised just value does not require the evidence necessary to 42
complete an independent valuation approach. 43
44
The establishment of a revised just value only requires enough evidence to legally 45
justify making an adjustment to the property appraiser’s original just valuation . 46
47
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In establishing a revised just value when required by law, Boards and special 1
magistrates are authorized to make the necessary calculations. 2
3
4
Legal Limitations on Administrative Reviews 5
No evidence shall be considered by the Board or special magistrate except when 6
presented during the time scheduled for the petitioner’s hearing, or at a time when the 7
petitioner has been given reasonable notice. See Subsection 194.034(1)(c), F.S. Also, see 8
Rule 12D-9.025(4)(a), F.A.C. 9
10
Other provisions of law address the responsibilities of petitioners and property 11
appraisers that may affect the review and consideration of evidence at a hearing. 12
13
* The Board or special magistrate must consult with the Board legal counsel on any 14
questions about the review and consideration of evidence. 15
16
In administrative reviews, the Board or special magistrate shall not consider the tax 17
consequences of the valuation of a specific property. See Rule 12D-10.003(1), F.A.C. 18
19
The Board or special magistrate has no power to grant relief by adjusting the value of a 20
property on the basis of hardship of a particular taxpayer. See Rule 12D-10.003(1), F.A.C. 21
22
Unless the provisions of Section 193.016, F.S., apply, a just valuation challenge must 23
stand or fall on its own validity, unconnected with the just value of any prior or 24
subsequent year. See Keith Investments, Inc. v. James, 220 So.2d 695 (Fla. 4th DCA 1969); 25
Also, see Dade County v. Tropical Park, Inc., 251 So.2d 551 (Fla. 3rd DCA 1971). 26
27
Unless the provisions of Section 193.016, F.S., apply, t he prior year’s just value is not 28
competent evidence of just value in the current year, even when there is no evidence 29
showing a change in circumstances between the two dates of assessment. See Simpson 30
v. Merrill, 234 So.2d 350 (Fla. 1970). 31
32
33
Sequence of General Procedural Steps 34
This section sets forth below a sequence of general procedural steps for Boards and 35
special magistrates to follow in administrative reviews of just valuations in order to fulfill 36
the procedural requirements of Section 194.301, F.S., and Rule 12D-9.027(2), F.A.C. 37
38
This sequence of steps applies to: the consideration of evidence, the development of 39
conclusions, and the production of written decisions. See Rule 12D-9.027(1), F.A.C. 40
41
“The board or special magistrate shall not be required to make, at any time during a 42
hearing, any oral or written finding, conclusion, decision, or reason for decision.” See 43
Rule 12D-9.025(9), F.A.C. 44
45
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“The board or special magistrate has the discretion to determine whether to make such 1
determinations during a hearing or to consider the petition and evidence further after the 2
hearing and then make such determinations.” See Rule 12D-9.025(9), F.A.C. 3
4
In following this sequence of steps, Boards or special magistrates must also meet the 5
requirements of Rule 12D-9.025(1), F.A.C., which are the following: 6
7
* Review the evidence presented by the parties; 8
9
* Determine whether the evidence presented is admissible; 10
11
* Admit the evidence that is admissible; and 12
13
* Identify the evidence presented to indicate that it is admitted or not admitted. 14
15
The sequence of general procedural steps presented below is based on Rule 12D -16
9.027(2), F.A.C. The sequence of general procedural steps is as follows. 17
18
1. Consider the admitted evidence presented by the parties. 19
20
2. Identify and consider the essential characteristics of the petitioned property based on 21
the admitted evidence and the factors in Section 193.011, F.S. 22
23
3. Identify the appraisal methodology used by the property appraiser in developing his 24
or her just valuation of the petitioned property, and consider this appraisal 25
methodology in light of the essential characteristics of the petitioned property. 26
27
4. Determine whether the admitted evidence proves by a preponderance of the 28
evidence that the property appraiser’s methodology complies with Section 193.011, 29
F.S., and professionally accepted appraisal practices, including mass appraisal 30
standards, if appropriate. 31
32
5. Determine whether the property appraiser’s appraisal methodology is appropriate 33
and whether the property appraiser established a presumption of correctness for the 34
assessment. 35
36
a) The property appraiser’s just valuation methodology is not appropriate and a 37
presumption of correctness is not established unless the admitted evidence 38
proves by a preponderance of the evidence that the property appraiser’s just 39
valuation methodology complies with Section 193.011, F.S., and professionally 40
accepted appraisal practices, including mass appraisal standards, if appropriate. 41
42
b) The property appraiser’s just valuation methodology is appropriate and the 43
presumption of correctness is established only when the admitted evidence 44
proves by a preponderance of the evidence that the property appraiser’s just 45
valuation methodology complies with Section 193.0 11, F.S., and professionally 46
accepted appraisal practices, including mass appraisal standards, if appropriate. 47
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1
6. If the Board or special magistrate determines that a presumption of correctness is 2
established, the Board or special magistrate must then det ermine whether the 3
admitted evidence proves by a preponderance of the evidence that: 4
5
a) The property appraiser’s just valuation does not represent just value; or 6
7
b) The property appraiser’s just valuation is arbitrarily based on appraisal practices 8
that are different from the appraisal practices generally applied by the property 9
appraiser to comparable property within the same county. 10
11
7. If the Board or special magistrate determines that one or both of the conditions 12
specified under Step 6 exist, the presumption of correctness is overcome. 13
14
8. If the property appraiser does not establish a presumption of correctness, or if the 15
presumption of correctness is overcome, the Board or special magistrate must 16
determine whether the hearing record contains competent, substantial evidence of 17
just value which cumulatively meets the criteria of Section 193.011, F.S., and 18
professionally accepted appraisal practices. 19
20
a) If the hearing record contains competent, substantial evidence for establishing a 21
revised just value, the Board or an appraiser special magistrate must establish a 22
revised just value based only upon such evidence. In establishing a revised just 23
value, the Board or special magistrate is not restricted to any specific value 24
offered by one of the parties. 25
26
b) If the hearing record lacks competent, substantial evidence for establishing a 27
revised just value, the Board or special magistrate must remand the assessment 28
to the property appraiser with appropriate directions f or establishing just value. 29
The property appraiser is required to follow these directions. 30
31
9. If the property appraiser establishes a presumption of correctness as described in 32
Step 5 above and that presumption of correctness is not overcome as described in 33
Step 6 above, the assessment stands. 34
35
36
Operation of the Eighth Criterion Under Florida Law 37
Subsection 193.011(8), F.S., known as the “eighth criterion,” requires proper 38
consideration of the “net proceeds of sale.” The “eighth criterion” was last amended in 39
1979 and is presented below in its entirety. 40
41
“The net proceeds of the sale of the property, as received by the seller, after deduction 42
of all of the usual and reasonable fees and costs of the sale, including the costs and 43
expenses of financing, and allowance for unconventional or atypical terms of financing 44
arrangements. When the net proceeds of the sale of any property are utilized, directly or 45
indirectly, in the determination of just valuation of realty of the sold parcel or any other 46
parcel under the provisions of this section, the property appraiser, for the purposes of 47
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such determination, shall exclude any portion of such net proceeds attributable to 1
payments for household furnishings or other items of personal property.” 2
3
Subsection 193.011(8), F.S., requires proper consideration of the “net proceeds of sale” 4
of tangible personal property, regardless of whether an actual sale of the property has 5
occurred. See Turner v. Tokai Financial Services, Inc., 767 So.2d 494 (Fla. 2nd DCA 2000) 6
review denied 780 So.2d 916 (Fla. 2001). 7
8
However, the statute does not require the property appraiser to select the value 9
generated by the application of Subsection 193.011(8), F.S., and apply it in a blanket 10
fashion to all assessments. See Turner v. Tokai Financial Services, Inc., 767 So.2d 494 (Fla. 11
2nd DCA 2000) review denied 780 So.2d 916 (Fla. 2001). 12
13
There is no legal requirement that the net proceeds of sale constitute the deciding factor 14
in just valuation. See In re Steffen, 342 B.R. 861 (Bkrtcy. M.D. Fla. 2006). 15
16
The use of net sales price alone, without considering and weighing other factors, is 17
legally insufficient to constitute compliance with the mandate of Section 193.011, F.S. 18
See Florida Attorney General’s Opinion AGO 77-106, September 29, 1977. 19
20
The eighth criterion must be properly considered in the just valuation of tangible 21
personal property. See Turner v. Tokai Financial Services, Inc., 767 So.2d 494 (Fla. 2nd DCA 22
2000) review denied 780 So.2d 916 (Fla. 2001). 23
24
* In administrative reviews of tangible personal property just valuations, Boards and 25
special magistrates must also properly consider the eighth criterion. 26
27
However, Florida law does not provide for the same information r egarding the eighth 28
criterion on tangible personal property assessment rolls as for real property rolls. 29
30
* There are no recorded selling prices for tangible personal property as there are for 31
real property. 32
33
* Property appraisers are not required to re port selling prices for tangible personal 34
property to the Department as they are required to do for real property. 35
36
NOTE: More information on the eighth criterion and the just valuation of tangible 37
personal property is presented earlier in this module in the section titled “Florida 38
Information on Appraisal Development.” 39
40
41
The Eighth Criterion in Reviews of Tangible Personal Property 42
In the development of tangible personal property assessment rolls, property appraisers 43
are responsible for properly considering the eighth criterion in the just valuation of 44
tangible personal property. 45
46
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In administrative reviews of just valuations of tangible personal property, the parties are 1
responsible for presenting relevant and credible evidence, in accordance with law, 2
regarding how the eighth criterion applies to the just valuation of tangible personal 3
property. 4
5
Boards and special magistrates are responsible for determining, based on admitted 6
evidence and in accordance with law, how the eighth criterion applies in administrative 7
reviews of just valuations of tangible personal property. 8
9
(NEW) Appraisal by Special Magistrate May Not Be Submitted as 10
Evidence 11
Legislation enacted in 2020 amended section 194.035, F.S. to provide an appraisal 12
performed by a special magistrate is not permitted as evidence in a hearing before a 13
value adjustment board for which the special magistrate serves. An appraisal may not 14
be submitted as evidence to a value adjustment board in any year that the person who 15
performed the appraisal serves as a special magistrate to that value adjustment board. 16
See Chapter 2020-10, Section 4, Laws of Florida, effective July 1, 2020. 17
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1
Module 9: 2
Administrative Reviews of Denials of 3
Exemptions and Property Classifications 4
5
This training module addresses the following topics: 6
7
PART 1: Introduction 8
• Overview of Exemptions and Property Classifications 9
• Applications for Exemptions and Property Classifications 10
• Denials of Exemptions and Property Classifications 11
• Scope of Authority for Administrative Reviews 12
• Overview of Statutory Criteria 13
• Standard of Proof for Administrative Reviews 14
• Evaluation of Evidence by the Board or Special Magistrate 15
• Sufficiency of Evidence 16
17
PART 2: Administrative Reviews of Denials of Exemptions 18
• The Administrative Review Process for Denials of Exemptions 19
• Statutory Criteria for Exemptions 20
Statutory Criteria for Different Types of Personal Exemptions 21
• Homestead Exemption: Qualifications and Benefits 22
• Homestead Exemption: Permanent Residence 23
• Homestead Exemption: Rental 24
• Homestead Exemption: Additional Exemption for Low Income Seniors 25
• Homestead Exemption: Save Our Homes 26
• Homestead Exemption: Damaged or Destroyed Property 27
• Homestead Exemption: Living Quarters for Parents or Grandparents 28
• Homestead Exemption: Totally and Permanently Disabled Persons 29
• Exemptions for Veterans 30
• Exemption for Veterans: Discount for Disabled Veterans 31
• Exemption for Deployed Service Members Beginning in 2011 32
• Exemptions for First Responders Who Were Totally and Permanently Disabled in the 33
Line of Duty, and For Surviving Spouses 34
Statutory Criteria for Different Types of Institutional Exemptions 35
• Government Property 36
• Exempt Entities 37
• Lands Used for Conservation Purposes 38
• Specific Educational Exemptions 39
• Exemptions for Tangible Personal Property 40
• Other Exemptions 41
42
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PART 3: Administrative Reviews of Denials of Property Classifications 1
• The Administrative Review Process for Denials of Classifications 2
• Statutory Criteria for Property Classifications 3
4
Statutory Criteria for Different Types of Property Classifications 5
• Agricultural Property 6
• Agricultural Property: Dispersed Water Storage Programs 7
• Agricultural Property: Quarantine and Eradication Programs 8
• Agricultural Property: Special Types 9
• Pollution Control Devices 10
• Noncommercial Recreation and Conservation Lands 11
• Historic Property 12
• Historic Property: Section 193.503, F.S. 13
• Historic Property: Section 193.505, F.S. 14
• High-water Recharge Property 15
• Working Waterfront Property 16
• Renewable Energy Source Device 17
• Agricultural Equipment Unusable for at Least 60 Days Due to Hurricane Michael 18
19
20
Learning Objectives 21
After completing this training module, the learner should be able to: 22
23
• Identify what is subtracted from assessed value to arrive at taxable value. 24
• Recognize the statutory order in which exemptions must be deducted to arrive at 25
taxable value (see Section 196.031, F.S.) 26
• Recognize that the disabled veterans disco unt is deducted after exemptions are 27
deducted to arrive at taxable value 28
• Distinguish between a property classification and classified use value 29
• Identify the requirements for applications for exemptions and property classifications 30
• Recognize the requirements for denials of exemptions and property classifications 31
• Identify the statutory criteria for a valid denial of an exemption by the property 32
appraiser 33
• Apply the correct procedures for determining whether a denial of an exe mption by 34
the property appraiser is valid 35
• Apply the correct procedures when a denial of an exemption by the property 36
appraiser has been determined to be invalid 37
• Apply the correct procedures when a denial of an exemption by the property 38
appraiser has been determined to be valid 39
• Recognize and apply the scope of authority for administrative reviews of denials of 40
exemptions and property classifications 41
• Identify the items that a Board or special magistrate may consider in addition to 42
admitted evidence 43
• Recognize that there is no presumption of correctness for a property appraiser’s 44
determination on an exemption or classification 45
• Identify the applicable standard of proof, its definition, and how it is applied 46
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• Identify and apply the steps for evaluating evidence in administrative reviews 1
• Recognize and apply the provisions for ruling on the admissibility of evidence 2
• Identify and apply the definitions of relevant evidence and credible evidence 3
• Recognize and apply the standards for determining the sufficiency of evidence 4
• Identify when the Board or special magistrate is required or is NOT required to make 5
determinations such as findings, conclusions, or decisions 6
• Apply the sequence of general procedural steps f or administrative reviews of denials 7
of exemptions 8
• Apply the sequence of general procedural steps for administrative reviews of denials 9
of property classifications 10
• Distinguish between the sequence of general procedural steps for administrative 11
reviews of denials of exemptions and the sequence of general procedural steps for 12
administrative reviews of denials of property classifications 13
• Recognize the conditions under which a Board or special magistrate must grant an 14
exemption or classification 15
• Recognize the conditions under which a Board or special magistrate must NOT grant 16
an exemption or classification 17
• Identify and apply the statutory criteria for administrative reviews of denials of 18
exemptions and property classifications 19
20
21
PART 1: Introduction 22
23
Overview of Exemptions and Property Classifications 24
Sections 3, 4, and 6, Article VII, of the Florida Constitution, provide for exemptions and 25
property classifications. 26
27
Generally, after the property appraiser has considered the just value of a property and 28
produced an assessed value, the assessed value is then reduced by any exemptions to 29
produce the taxable value. 30
31
After the assessed value is correctly determined, the exempt amounts are deducted in 32
the order provided by law (see Section 196.031, F.S.). After that, any discounts, such as 33
the disabled veteran’s discount, are applied. 34
35
“Exemption” means exemptions under Chapter 196, Florida Statutes, and other Florida 36
Statutes. 37
38
* For purposes of this training, exemptions include the following: veteran’s discount, 39
immunity where a claim of tax immunity for government property is being made, and 40
portability assessment differences. 41
42
“Property Classification” or “Classification” means a classification of property for 43
assessment purposes according to applicable statutory criteria, including those in 44
Chapter 193, Part II, F.S., and an assessment of the property at its classified use value. 45
46
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“Classified use value” means the value of a property that is based solely on the 1
property’s character or use and based on the applicable statutory criteria, without regard 2
to the property’s highest and best use. See Subsection 192.001(2), F.S. 3
4
5
Applications for Exemptions and Property Classi fications 6
A property owner must apply for an exemption by the applicable deadline in order to 7
receive the exemption. See Subsection 196.011(1)(a), F.S. 8
9
If a property owner failed to timely file for an exemption, he or she must late file for the 10
exemption with the property appraiser by the 25th day after the mailing of the notice of 11
proposed property taxes (TRIM notice). 12
13
If the property appraiser determines, based on sufficient evidence, that the late filed 14
exemption was late because the applicant was unable to file timely or there were other 15
extenuating circumstances, the property appraiser may grant the exemption to an 16
otherwise qualified applicant for the current year. 17
18
If the property appraiser does not grant the late filed exemption, the property owner may 19
appeal to the Board, by the 25th day after the mailing of the notice of propose d property 20
taxes (TRIM notice). 21
22
The Board may grant the exemption to an otherwise qualified applicant if it finds the 23
failure to apply was due to extenuating circumstances. Subsection 196.011(8), F.S. 24
25
If a postal error resulted in an otherwise eligible applicant not filing on time his or her 26
application for an exemption, the Board or special magistrate must grant the exemption. 27
Subsection 196.011(7), F.S. 28
29
The county may waive the requirement that exemptions be applied for annually and 30
provide for automatic renewal of some exemptions. Subsection 196.011(9), F.S. 31
32
* At the option of the property appraiser, initial or original applications for homestead 33
exemption for the succeeding year may be accepted and granted after March 1. 34
35
Note: Legislation enacted in 2014 amended section 193.461, F .S., to provide that an 36
applicant for the agricultural classification who does not file an application by the March 37
1 filing deadline, can file an application with the property appraiser on or before 25 days 38
after the property appraiser mails the notice of proposed property taxes (TRIM notice). 39
40
* The application must include sufficient evidence that demonstrates the applicant was 41
unable to apply in a timely manner or otherwise demonstrates extenuating 42
circumstances warranting the classification. 43
44
* The property appraiser may grant the application if he or she determines the 45
circumstances warrant. 46
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1
* If the applicant files an application for the classification and fails to provide sufficient 2
evidence to the property appraiser as required, the applicant ma y file a petition with 3
the value adjustment board on or before 25 days after the property appraiser mails 4
the notice of proposed property taxes (TRIM notice). 5
6
* This legislation was effective July 1, 2014 and applies to administrative reviews 7
beginning in 2014. See Chapter 2014-150, Section 2, Laws of Florida (HB 7091). 8
9
10
Denials of Exemptions and Property Classifications 11
Florida Statutes require that the property appraiser issue in writing a denial of an 12
exemption or classification. 13
14
The denial will typically reference missing documentation that, if supplied, could qualify 15
the taxpayer for the exemption or classification. 16
17
The petitioner must show that the statutory criteria are satisfied to qualify for an 18
exemption or classification. 19
20
If an exemption or classification is denied by the property appraiser, the petitioner must 21
file his or her petition to the Board within 30 days of that notice of denial. 22
23
Subsection 196.193(5)(a), F.S., states the following regarding the denial of an 24
exemption: 25
26
“If the property appraiser determines that any property claimed as wholly or partially 27
exempt under this section is not entitled to any exemption or is entitled to an exemption 28
to an extent other than that requested in the application, he or she shall notify the 29
person or organization filing the application on such property of that determination in 30
writing on or before July 1 of the year for which the application was filed.” 31
32
Subsection 196.193(5)(b), F.S., provides the following criteria for a valid denial of an 33
exemption by the property appraiser: 34
35
1. “The notification must state in clear and unambiguous language the specific 36
requirements of the state statutes which the property appraiser relied upon to deny 37
the applicant the exemption with respect to the subject property.” 38
39
2. “The notification must be drafted in such a way that a reasonable person can 40
understand specific attributes of the applicant or the applicant’s use of the subject 41
property which formed the basis for the denial.” 42
43
3. “The notice must also include the specific facts the property appraiser used to 44
determine that the applicant failed to meet the statutory requirements.” 45
46
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Under Subsection 196.193(5)(b), F.S., if a property appraiser fails to provide a notice of 1
denial of an exemption that complies with the criteria stated above, the denial or the 2
attempted denial of the exemption is invalid. 3
4
* Rule 12D-9.027(4)(a), F.A.C., provides the following regarding the administrative 5
review of a denial of an exemption: 6
7
“(a) In the case of an exemption, the board or special magistrate shall consider 8
whether the denial was valid or invalid and shall: 9
10
1. Review the exemption denial, and compare it to the applicable statutory criteria in 11
Section 196.193(5), F.S.; 12
13
2. Determine whether the denial was valid under Section 196.193, F.S.; and 14
15
3. If the denial is found to be invalid, not give weight to the exemption denial or to 16
any evidence supporting the basis for such denial, but shall instead proceed to 17
dispose of the matter without further consideration in compliance with Section 18
194.301, F.S.” 19
20
21
Scope of Authority for Administrative Reviews 22
The administrative review process (done by Boards) is separate and different from the 23
assessment roll production process (done by property appr aisers). 24
25
The Board’s authority is limited to the review of individual petitions filed. See Spooner v. 26
Askew, 345 So.2d 1055 (Fla. 1976). 27
28
The Board has the limited function of reviewing and correcting individual determinations 29
of the property appraiser. See Bath Club, Inc. v. Dade County, 394 So.2d 110 (Fla. 1981). 30
31
Upon proper filing of a petition, a Board is authorized to conduct an administrative 32
review of a decision by the property appraiser to deny a tax exemption or a property 33
classification. 34
35
* The Board has no authority to review, on its own volition, a decision of the property 36
appraiser to deny an exemption. See Redford v. Department of Revenue, 478 So.2d 808 37
(Fla. 1985). 38
39
The Board or special magistrate has no power to grant an exemption or p roperty 40
classification not authorized by law. See Rule 12D-10.003(1), F.A.C. 41
42
The Board or special magistrate has no power to grant an exemption or property 43
classification on the basis of hardship of a particular taxpayer. See Rule 12D-10.003(1), 44
F.A.C. 45
46
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In considering a petition for exemption or property classification, the Board or special 1
magistrate must not consider the ultimate amount of tax required. See Rule 12D-2
10.003(1), F.A.C. 3
4
In administrative reviews regarding exemptions or classifications, Boa rds and special 5
magistrates are not authorized to perform any independent factual research into 6
attributes of the subject property or attributes of the property owner. 7
8
Boards and special magistrates must follow the provisions of law on the administrative 9
review of assessments. See Chapter 194, Parts 1 and 3, F.S., and Rule Chapters 12D-9, 12D-10
10, and 12D-16, F.A.C. 11
12
In administrative reviews of denials of exemptions and classifications, Boards and 13
special magistrates are bound by the same standards as property appraisers . See Rule 14
12D-10.003(1), Florida Administrative Code. However, when observing this requirement, 15
Boards and special magistrates must act within their scope of authority. 16
17
In administrative reviews, Boards and special magistrates are not authorized to consider 18
any evidence except evidence properly presented by the parties and properly admitted 19
into the record for consideration. See Rule 12D-9.025(4)(a), F.A.C. 20
21
In addition to admitted evidence, Boards and special magistrates are authorized to 22
consider only the following items in administrative reviews. 23
24
1. Legal advice from the Board legal counsel; 25
26
2. Information contained or referenced in the Department’s Uniform Policies and 27
Procedures Manual and Accompanying Documents; and 28
29
3. Information contained or referenced in the Department’s training for value 30
adjustment boards and special magistrates. 31
32
33
Overview of Statutory Criteria 34
Boards and special magistrates, with the assistance of the Board attorney, must identify 35
and follow the provisions of law that pertain to the administrative review of exemptions 36
and property classifications. 37
38
These provisions of law include statutory criteria that apply to the particular exemption 39
or classification under administrative review. Statutory criteria do not include any factor 40
that is not a conclusive statutory criterion. 41
42
For purposes of this training module, “statutory criteria” means a set of statutory 43
requirements that must be satisfied individually, by sufficient admitted evidence, to 44
legally justify the granting of the exemption or classification by a Board or special 45
magistrate. 46
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1
Where necessary and where the context will permit, the term “statutory criteria” includes 2
any constitutional criteria that do not require implementation by legislation. See Rule 3
12D-9.027(4)(g), F.A.C. 4
5
* Additional information on the statutory criteria for exemptions is contained in Rule 6
Chapter 12D-7, F.A.C. 7
8
The effective date of administrative review is January 1 of the assessment year under 9
review. This is an essential statutory criterion. See Section 192.042, F.S. 10
11
12
Standard of Proof for Administrative Reviews 13
In administrative reviews, Boards or special magistrates must consider admitted 14
evidence and then compare the weight of the evidence to a “standard of proof” to make 15
a determination on an issue under review. 16
17
Generally, the term “evidence” means something (including testimony, documents, and 18
tangible objects) that tends to prove or disprove the existence of a disputed fact. See 19
Black’s Law Dictionary, Eighth Edition, page 595. 20
21
“Standard of proof” means the level of proof needed for the Board or special magist rate 22
to conclude that the classification or exemption status assigned to the property is 23
incorrect. See Rule 12D-9.027(5), F.A.C. 24
25
The standard of proof that applies in administrative reviews of the classification or 26
exemption status is called “preponderance of the evidence,” which means “greater 27
weight of the evidence.” See Subsection 194.301(2)(d), F.S., and Rule 12D-9.027(5), F.A.C. 28
29
For administrative reviews, preponderance of the evidence means greater weight of the 30
evidence or evidence that more likely than not proves the property appraiser’s 31
determination should be overturned and the petition granted. See Gross v. Lyons, 763 32
So.2d 276 (Fla. 2000). 33
34
This standard of proof is the scale by which the Board or special magistrate measures 35
the weight (relevance and credibility) of the admitted evidence. 36
37
The taxpayer shall never be required to prove that the property appraiser’s 38
determination is not supported by any reasonable hypothesis of a legal assessment. 39
40
There is no presumption of correctness in administrative reviews of the exemption or 41
property classification status of the property. See Subsection 194.301(2)(d), F.S. 42
43
The party initiating the challenge has the burden of proving by a preponderance of the 44
evidence that the classification or exemption status assigned to the property is incorrect. 45
See Subsection 194.301(2)(d), F.S. 46
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1
2
Evaluation of Evidence by the Board or Special Magistrate 3
Under Rule 12D-9.025(1), F.A.C., as part of administrative reviews, the Board or special 4
magistrate must: 5
6
1. Review the evidence presented by the parties; 7
8
2. Determine whether the evidence presented is admissible; 9
10
3. Admit the evidence that is admissible; 11
12
4. Identify the evidence presented to indicate that it is admitted or not admitted; and 13
14
5. Consider the admitted evidence. 15
16
The term “admitted evidence” means evidence that has been admitted into the record 17
for consideration by the Board or special magistrate. See Rule 12D-9.025(2)(a), F.A.C. 18
19
“No evidence shall be considered by the board or special magistrate except when 20
presented and admitted during the time scheduled for the petitioner’s hearing, or at a 21
time when the petitioner has been given reasonable notice.” See Rule 12D-9.025(4)(a), 22
F.A.C. 23
24
“If a party submits evidence to the board clerk prior to the hearing, the board or special 25
magistrate shall not review or consider such evidence prior to the hearing.” See Rule 26
12D-9.025(4)(b), F.A.C. 27
28
Rule 12D-9.025(2)(d), F.A.C., contains the following four provisions: 29
30
1. “As the trier of fact, the board or special magistrate may independently rule on the 31
admissibility and use of evidence.” 32
33
2. “If the board or special magistrate has any questions relating to the admissibility and 34
use of evidence, the board or special magistrate should consult with the board legal 35
counsel.” 36
37
3. “The basis for any ruling on admissibility of evidence must be reflected in the 38
record.” 39
40
4. “The special magistrate may delay ruling on the question during the hearing and 41
consult with board legal counsel after the hearing.” 42
43
NOTE: More information on the admissibility of evidence is presented in Module 4. 44
45
46
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Sufficiency of Evidence 1
When applied to evidence, the term “sufficient” is a test of adequacy. See Rule 12D-2
9.027(6), F.A.C. 3
4
Sufficient evidence is admitted evidence that has enough overall weight, in terms of 5
relevance and credibility, to legally justify a particular conclusio n. See Rule 12D-9.027(6), 6
F.A.C. 7
8
The Florida Supreme Court stated the following regarding sufficient evidence: 9
“Sufficiency is a test of adequacy. Sufficient evidence is such evidence, in character, 10
weight, or amount, as will legally justify the judicia l or official action demanded.” See 11
Tibbs v. State, 397 So.2d 1120 (Fla. 1981). Also, see Moore v. State, 800 So.2d 747 (Fla. 5th 12
DCA 2001). 13
14
A particular conclusion is justified when the overall weight of the admitted evidence 15
meets the standard of proof that applies to the issue under consideration. See Rule 12D-16
9.027(6), F.A.C. 17
18
The Board or special magistrate must consider the admitted evidence and determine 19
whether it is sufficiently relevant and credible to reach the “preponderance of the 20
evidence” standard of proof explained previously. See Rules 12D-9.025(1)(d), 12D-21
9.027(5), and 12D-9.027(6), F.A.C. 22
23
Rule 12D-9.027(6), F.A.C., states the following in pertinent part: “In determining 24
whether the admitted evidence is sufficient for a particular issue under consideration, 25
the board or special magistrate shall: 26
27
(a) Consider the relevance and credibility of the admitted evidence as a whole, 28
regardless of which party presented the evidence; 29
30
(b) Determine the relevance and credibility, or overall weight, of the evidence; 31
32
(c) Compare the overall weight of the evidence to the standard of proof; 33
34
(d) Determine whether the overall weight of the evidence is sufficient to reach the 35
standard of proof; and 36
37
(e) Produce a conclusion of law based on the determination of whether the overall 38
weight of the evidence has reached the standard of proof.” 39
40
For administrative reviews of denials of exemptions and classifications, “relevant 41
evidence” is evidence that is reasonably related, directly or indirectly, to the statutory 42
criteria that apply to the petitioned property or the property owner, as applicable. See 43
Rule 12D-9.025(2)(b), F.A.C. 44
45
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* This description means the evidence meets or exceeds a minimum level of 1
relevance necessary to be admitted for consideration, but does not necessarily 2
mean that the evidence has sufficient relevance to legally justify a particular 3
conclusion. See Rule 12D-9.025(2)(b), F.A.C. 4
5
In evaluating the relevance of evidence, the Board or special magistrate must consider, 6
as of the January 1 assessment date, how well the evidence relates to the petitioned 7
property or the property owner, as applicable, and to the statutory c riteria that apply. 8
9
For administrative reviews, “credible evidence” means evidence that is worthy of belief 10
(believable). See Black’s Law Dictionary, Eighth Edition, page 596. 11
12
NOTE: More information on evaluating the relevance and credibility of evidence is 13
presented in Module 11 of this training. 14
15
16
PART 2: Administrative Reviews of Denials of Exemptions 17
18
The sections below contain information on the administrative review of denials of 19
exemptions, including information on the statutory criteria for exemptions. 20
21
22
The Administrative Review Process for Denials of Exemptions 23
Set forth below is a sequence of general procedural steps for Boards and special 24
magistrates to follow in administrative reviews of denials of exemptions in order to fulfill 25
the procedural requirements of Section 194.301, F.S., and Rule 12D -9.027(4), F.A.C. 26
27
This sequence of steps applies to: the consideration of evidence, the development of 28
conclusions, and the production of written decisions. See Rule 12D-9.027(1), F.A.C. 29
30
“The board or special magistrate shall not be required to make, at any time during a 31
hearing, any oral or written finding, conclusion, decision, or reason for decision.” See 32
Rule 12D-9.025(9), F.A.C. 33
34
“The board or special magistrate has the discreti on to determine whether to make such 35
determinations during a hearing or to consider the petition and evidence further after the 36
hearing and then make such determinations.” See Rule 12D-9.025(9), F.A.C. 37
38
Under Rule 12D-9.027(4), F.A.C., in administrative reviews of denials of exemptions, 39
the Board or special magistrate shall follow this sequence of general procedural steps: 40
41
1. In the case of an exemption, the Board or special magistrate shall consider whether 42
the denial was valid or invalid and shall: 43
44
* Review the exemption denial, and compare it to the applicable statutory criteria in 45
Section 196.193(5), F.S.; 46
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* Determine whether the denial was valid under Section 196.193, F.S.; and 2
3
* If the exemption denial is found to be invalid, not give weight to the exemption 4
denial or to any evidence supporting the basis for such denial, but shall instead 5
proceed to dispose of the matter without further consideration in compliance with 6
Section 194.301, F.S. 7
8
2. If the exemption denial is found to be valid, the Board or special magistrate shall 9
proceed with the following steps: 10
11
* Consider the admitted evidence presented by the parties; 12
13
* Identify the particular exemption issue that is the subjec t of the petition; 14
15
* Identify the statutory criteria that apply to the particular exemption that was 16
identified as the issue under administrative review; 17
18
* Identify and consider the essential characteristics of the petitioned property or the 19
property owner, as applicable, based on the statutory criteria that apply to the 20
issue under administrative review; 21
22
* Identify and consider the basis used by the property appraiser in issuing the 23
exemption denial for the petitioned property; and 24
25
* Determine whether the admitted evidence proves by a preponderance of the 26
evidence that the property appraiser’s denial is incorrect and the exemption 27
should be granted because all of the applicable statutory criteria are satisfied. 28
29
The Board or special magistrate must decide whether the admitted evidence, regardless 30
of which party presented the evidence, ha s sufficient weight (in relevance and 31
credibility) to legally justify overturning the property appraiser’s original determination 32
and granting the exemption. 33
34
If the admitted evidence proves the petitioner’s case by the greater weight of the 35
evidence, the original determination must be overturned and the petition granted. 36
37
If the admitted evidence does not legally justify overturning the property appraiser’s 38
original determination, the determination must be upheld. 39
40
41
Statutory Criteria for Exemptions 42
This section contains information regarding the statutory criteria that must be met to 43
qualify for the various exemptions available in Florida. 44
45
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* In the case of the more common exemptions, this training presents more detail on 1
the applicable statutory criteria. 2
3
* Less common exemptions will simply be mentioned so that users of this training are 4
aware of their existence, and a citation will be provided so users can read the 5
statutory criteria when one of the less common exemptions arises. 6
7
8
Statutory Criteria for Different Types of Personal Exemptions 9
The statutory criteria that apply to several types of personal exemptions are presented 10
below under their respective headings. 11
12
13
Homestead Exemption: Qualifications and Benefits 14
Homestead is established on January 1 of each tax year. In order to qualify for the 15
homestead exemption an individual must: 16
17
* Have legal or beneficial title to the property which is demonstrated by a deed or 18
instrument on file in the public records; and 19
20
* Make the property their permanent residence, or the permanent residence of a 21
person legally or naturally dependent upon the individual. 22
23
Homestead property receives: 24
25
* An exemption of $25,000 from all levies. 26
27
* An additional exemption of up to $25,000 on the assessed valuation greater than 28
$50,000 for all levies other than school district levies. 29
30
* A limitation on assessments under the Save Our Homes provisions. 31
32
* Eligibility for additional exemptions that are available only on homestead properties. 33
See section 196.031, F.S. 34
35
See also Rule 12D-7.0142, F.A.C. 36
37
38
Homestead Exemption: Permanent Residence 39
Permanent residence means that place where a person has his or her true, fixed, and 40
permanent home and principal establishment to which, whenever absent, he or she has 41
the intention of returning. 42
43
A person may have only one permanent residence at a time , and once a permanent 44
residence is established in a foreign state or country, it is presumed to continue until the 45
person shows that a change has occurred. See section 196.012(18), F.S. 46
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1
Intention to establish a permanent residence in Florida is a factual determination to be 2
made, in the first instance, by the property appraiser. 3
4
Section 196.015, F.S., provides factors the property appraisers may consider in making 5
this determination. 6
7
Although any one factor is not conclusive of the establishment or non-establishment of 8
permanent residence, the following are relevant factors that may be con sidered by the 9
property appraiser in making his or her determination about the intent of a person 10
claiming a homestead exemption to establish a permanent residence in Florida: 11
12
* Formal declaration of domicile by the applicant recorded in the public records of the 13
county where the exemption is sought; 14
15
* Where the applicant’s dependent children are registered for school; 16
17
* The place of employment of the applicant; 18
19
* The previous permanent residency by the applicant in a state other than Florida or i n 20
another country and the date non-Florida residency was terminated; 21
22
* Proof of voter registration at the place for which the exemption is being sought; 23
24
* A valid Florida driver's license or identification card and evidence of relinquishment 25
of driver’s license from another state; 26
27
* The issuance of a license tag on any motor vehicle owned by the applicant; 28
29
* The address as listed on federal income tax returns filed by the applicant; 30
31
* The location where the applicant’s bank statements and checking acco unts are 32
registered; and 33
34
* Proof of payment of utilities at the location where residence is being claimed. 35
See section 196.015, F.S. 36
37
38
Homestead Exemption: Rental 39
See section 196.061, F.S. 40
Rental of an entire dwelling previously claimed to be a homestead for tax purposes 41
constitutes abandonment of the dwelling as a homestead, when the property is rented 42
for more than 30 days per calendar year for two consecutive years . 43
44
Abandonment continues until the dwelling is physically occupied by the owner. 45
46
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Note: Legislation enacted in 2013 provides that rental of the homestead after Januar y 1
1 of any year does not affect the homestead exemption for tax purposes for that 2
particular year unless the property is rented for more than 30 days per calendar year for 3
two consecutive years. These changes were effective July 1, 2013, and apply to 4
assessments and administrative reviews beginning in 2014. See Chapter 2013-64, Laws 5
of Florida (SB 342). 6
7
This provision does not apply to a member of the Armed Forces of the United States 8
whose service in such forces is the result of a mandatory obligation i mposed by the 9
federal Selective Service Act or who volunteers for service as a member of the Armed 10
Forces of the United States. 11
12
13
Homestead Exemption: Additional Exemption for Low Income Seniors 14
The Board of County Commissioners of a county or the governin g authority of a 15
municipality may adopt an ordinance to allow an additional homestead exemption of up 16
to $50,000 for any person who has the legal or equitable title to real estate and 17
maintains thereon the permanent residence of the owner, and who: 18
19
* Has the legal or equitable title to real estate; 20
* Uses that real estate as their permanent residence; 21
* Is age 65, or older; and 22
* Whose household income does not exceed $20,000, adjusted annually, beginning 23
January 1, 2001, by the percentage change in the a verage cost-of-living index. 24
25
For the 2017 assessment year, the 2016 adjusted gross household income to qualify for 26
this exemption is $28,841 or less. 27
28
For the 2018 assessment year, the 2017 adjusted gross household income to qualify for 29
this exemption is $29,454 or less. 30
31
For the 2019 assessment year, the 2018 adjusted gross household income to qualify for 32
this exemption is $30,174 or less. 33
34
For the 2020 assessment year, the 2019 adjusted gross household income to qualify for 35
this exemption is $30,721 or less. See section 196.075, F.S., and Rule 12D-7.0143, F.A.C. 36
37
Note: An amendment approved by the voters in the November 2012 general election 38
added a local option of up to an additional $50,000 exemption for low income seniors 39
that have maintained a permanent residence on the property for at least 25 years. See 40
section 196.075, F.S. 41
42
43
Homestead Exemption: Save Our Homes 44
Relating to exemptions, the primary limitation on assessment increases is the Save Our 45
Homes Amendment limitation which caps assessment increases on homestead 46
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property at the lesser of 3 percent or the percentage change in the consumer price 1
index. 2
3
When applied to the just value assessment in the initial year when homestead is 4
established, any subsequent increases in that assessment are capped. 5
6
Property is reassessed on the transfer of the homestead property. 7
8
9
Homestead Exemption: Damaged or Destroyed Property 10
See section 193.155(4), F.S. 11
A homestead exemption may be granted to damaged or destroyed property that is 12
otherwise qualified if the property owner notifies the property appraiser that he or she 13
intends to repair or rebuild the property and live in the property as his or her primary 14
residence after the property is repaired or rebuilt and does not claim a homestead 15
exemption on any other property. 16
17
Failure by the property owner to begin the repair or rebuilding of the homestead 18
property within three years after January 1 following the year the property was damaged 19
or destroyed constitutes abandonment of the property as a homestead . 20
21
Changes, additions, or improvements that replace all or a portion of homestead property 22
damaged or destroyed by misfortune or calamity shall not increase the homestead 23
property's assessed value when: 24
25
* The square footage of the homestead property as ch anged or improved does not 26
exceed 110 percent of the square footage of the homestead property before the 27
damage or destruction; or 28
29
* The total square footage of the homestead property as changed or improved does 30
not exceed 1,500 square feet. 31
32
33
Homestead Exemption: Living Quarters for Parents or Grandparents 34
This exemption is found in Section 193.703, F.S. It applies to construction or 35
reconstruction of a homestead intended to provide living quarters for the owner’s parent 36
or grandparent. 37
38
The qualifications for this exemption are: 39
40
* The parent or grandparent must be 62 or older; 41
* The parent or grandparent must be the natural or adopti ve parent or grandparent of 42
an owner of the homestead or of an owner’s spouse; 43
* Application must be made by March 1; 44
* Reconstruction or construction must have been made to an existing homestead 45
property; and 46
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* The parent or grandparent must make their pr imary place of residence on the 1
property and cannot qualify for a separate homestead exemption. 2
3
If a taxpayer qualifies under the statute, the exemption from taxation is limited to an 4
amount not to exceed: 5
6
* Twenty percent of the total assessed value of the property as improved; or 7
* The increase in value resulting from the construction or reconstruction. 8
9
10
Homestead Exemption: Totally and Permanently Disabled Persons 11
See section 196.101, F.S. 12
In order to qualify for a total exemption on their homestead a person must have a 13
qualifying household income (the 2016 household income cannot exceed $28,115 for 14
the 2017 assessment year, the 2017 household income cannot exceed $28,713 for the 15
2018 assessment year, the 2018 household income cannot exceed $29,415 for the 16
2019 assessment year, and the 2019 household income cannot exceed $29,948 for the 17
2020 assessment year) and the applicant must be: 18
19
* Paraplegic; 20
* Hemiplegic; 21
* Legally blind; or 22
* Totally and permanently disabled and dependent on a wheelchair for mobility. 23
24
Persons who are quadriplegic qualify for a total exemption on their homestead without 25
meeting the income limitation. 26
27
Totally and permanently disabled persons who do not qualify for a total exemption can 28
receive a $500 exemption under Section 196.202, F.S. This $500 exemption is also 29
granted to widows, widowers, and blind persons. 30
31
32
Exemptions for Veterans 33
See sections 196.081, 196.082, 196.091, and 196.24, F.S. 34
Any ex-service member (or qualified surviving spouse) who meets the three criteria 35
below shall receive a $5,000 exemption on their property: 36
37
* Is a bona fide resident of the state; 38
* Was discharged under honorable conditions; and 39
* Has been disabled to a degree of 10 percent or higher. 40
41
Any ex-service member (or qualified surviving spouse) requiring specially adapted 42
housing and required to use a wheelchair for his or her transportation shall be exempt 43
from taxation on his or her homestead when he or she meets the following criteria: 44
45
* Was honorably discharged with a service-connected total disability certificate; and 46
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* Is receiving or has received “special pecuniary assistance”. 1
2
Any totally and permanently disabled veteran or qualified surviving spouse shall be 3
exempt from taxation on his or her homestead when he or she meets the following 4
criteria: 5
6
* Was honorably discharged with a service-connected total and permanent disability; 7
8
* Was issued a letter from the United States Government or United States Department 9
of Veterans Affairs or its predecessor certifying that the veteran is totally and 10
permanently disabled; and 11
12
* Was a permanent resident of the State of Florida on January 1 of the year in which 13
the exemption is being claimed (or was a permanent resident on January 1 of the 14
year of their death). 15
16
This exemption is also granted to the qualified surviving spouse of a veteran who dies 17
during active duty from service-connected causes provided that the veteran was a 18
permanent resident of the State of Florida on January 1 of the year he or she died. 19
20
Note: Legislation enacted in 2018 amended section 196.24, F.S., relating to 21
qualification for an exemption, to remove the statutory requirement for an unremarried 22
surviving spouse to have been married to a disabled veteran for at least five years on 23
the date of the veteran's death. See Chapter 2018-118, Section 16, Laws of Florida (CS/HB 24
7087). 25
26
Note: Legislation enacted in 2020 created section 196.081(1)(b), F.S. to provide that a 27
veteran or veteran’s surviving spouse may receive a prorated refund of property taxes 28
paid on property on which legal or beneficial title is acquired between January 1 and 29
November 1. The additional requirements for the refund are that the veteran or 30
veteran’s surviving spouse: 31
• receives an exemption under section 196.081, F.S., on a property for the tax 32
year, and 33
• applies for and receives an exemption on the acq uired property in the next tax 34
year under section 196.081, F.S. 35
The refund is prorated as of the date of transfer. If the property appraiser determines 36
the veteran or spouse is entitled to an exemption under section 196.081, F.S., on the 37
newly acquired property, the law provides for the property appraiser to make entries on 38
the tax roll necessary to allow the prorated refund of taxes for the previous tax year. See 39
Chapter 2020-140, Laws of Florida (CS/CS/HB 1249), effective July 1, 2020. 40
41
42
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Exemption for Veterans: Discount for Disabled Veterans 1
See section 196.082, F.S. 2
In addition to the exemptions listed previously, there is a discount on taxes due on 3
homestead property available to disabled veterans. In order to qualify, the veteran must 4
meet the following criteria: 5
6
* Be 65 or older; 7
* Have a combat-related disability; and 8
* Have been honorably discharged. 9
10
When a veteran is qualified, the property appraiser shall apply all exemptions to which 11
the veteran is entitled to the property value, calculate the taxes due on the property, and 12
then reduce the taxes due by the veteran’s percentage of disability. 13
14
15
Exemption for Deployed Servicemembers Beginning in 2011 16
The 2011 Legislature enacted an exemption for certain servicemembers who receive a 17
homestead exemption and who are deployed in certain military operations to receive an 18
additional ad valorem tax exemption. 19
20
* The percentage exempt under the exemption is calculated as the number of days 21
the servicemember was deployed during the previous calendar year, divided by the 22
number of days in that year, multiplied by 100. 23
24
* It applies to both the school and county taxable values, and applies beginning in the 25
2011 tax year. 26
27
* See Chapter 2011-93, Laws of Florida (effective May 31, 2011), creating Section 28
196.173, F.S. 29
30
* See also Rule 12D-7.0055, F.A.C. 31
32
Note: The 2020 Legislature amended section 196.173, F.S., relating to the exemption 33
for deployed servicemembers, to remove Operation Enduring Freedom, which began 34
October 7, 2001, and ended December 31, 2014. The amendment added Operation 35
Juniper Shield, which began in February 2007; Operation Pacific Eagle, which began in 36
September 2017, and Operation Martillo, which began in January 2012. After the 37
amendment, this legislation retained the following military operations on the list: 38
39
• Operation Joint Task Force Bravo, which began in 1995. 40
• Operation Joint Guardian, which began on June 12, 1999. 41
• Operation Noble Eagle, which began on September 15, 2001. 42
• Operations in the Balkans, which began in 2004. 43
• Operation Nomad Shadow, which began in 2007. 44
• Operation U.S. Airstrikes Al Qaeda in Somalia, which began in January 2007. 45
• Operation Juniper Shield, which began in February 2007. 46
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• Operation Copper Dune, which began in 2009. 1
• Operation Georgia Deployment Program, which began in August 2009. 2
• Operation Spartan Shield, which began in June 2011. 3
• Operation Observant Compass, which began in October 2011. 4
• Operation Martillo, which began in January 2012. 5
• Operation Inherent Resolve, which began on August 8, 2014. 6
• Operation Atlantic Resolve, which began in April 2014. 7
• Operation Freedom’s Sentinel, which began on January 1, 2015. 8
• Operation Resolute Support, which began in January 2015. 9
• Operation Pacific Eagle, which began in September 2017. 10
11
See Chapter 2020-10, Sections 7 and 8, Laws of Florida, (HB 7097), effective upon becoming a 12
law on April 8, 2020, and first applicable to the 2020 ad valorem tax roll, and Chapter 2018-118, 13
Section 15, Laws of Florida (CS/HB 7087). 14
15
• This exemption is also available to servicemembers who were deployed during 16
the preceding calendar year on active duty outside the continental United States, 17
Alaska, or Hawaii in support of a subordinate operation to a main operation 18
designated in section 196.173(2), F.S. 19
20
21
Exemptions for First Responders Who Were Totally and Permanently 22
Disabled in the Line of Duty, and For Surviving Spouses 23
Section 196.081, F.S., provides an exemption for surviving spouses of first responders 24
who die in the line of duty. See Chapter 2012-54, Laws of Florida (CS/HB 95). 25
26
Note: Legislation enacted in 2017 created section 196.102, F.S., to: provide an 27
exemption for certain first responders whose total and permanent disability occurred in 28
the line of duty, and for surviving spouses; extend the exemption application deadline 29
for 2017 to August 1, 2017, or later if extenuating circumstances are shown; and 30
provide for petitions to the value adjustment board for denials of such exemptions. This 31
change was effective June 14, 2017, and applies to assessments and administrative 32
reviews beginning in 2017. See Chapter 2017-105, Sections 2 and 3, Laws of Florida (CS/HB 33
455). 34
35
36
Statutory Criteria for Different Types of Institutional Exemptions 37
These exemptions apply to property other than homestead property. The exemption can 38
be based either on the ownership of the property, such as governmental property, or the 39
use of the property, such as educational exemptions. 40
41
Because of the number of these exemptions, most of the exemptions will not be 42
discussed in detail. Instead a statutory reference will be provided so the requirements of 43
that exemption can be found easily. 44
45
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The statutory criteria that apply to several types of personal exemptions are presented 1
below under their respective headings. 2
3
4
Government Property 5
See section 196.199, F.S. 6
Governmental property can be immune to taxatio n, exempt from taxation, or taxable. 7
8
Property that is immune from taxation is property that the taxing authority has no ability 9
to tax. 10
11
Property that is exempt is property that the state, through its constitution, statutes, and 12
local ordinances, has chosen not to tax. 13
14
Property belonging to the federal government is immune from taxation. 15
16
State and county property is also immune from taxation and cannot be taxed unless 17
immunity has been waived. 18
19
Municipal property and property belong ing to most special districts is exempt from 20
taxation as long as it is being used for municipal or other exempt purposes. 21
22
Note: Legislation enacted in 2014 moved the exemption for special districts to newly 23
created section 189.055, F.S., from section 189 .403, F.S. See Chapter 2014-22, Section 24
53, Laws of Florida (SB 1632). 25
26
Governmental property leased to non-governmental entities may become taxable under 27
section 196.199, F.S. 28
29
Note: Legislation enacted in 2018 amended section 163.01, F.S. to clarify that the 30
property tax exemption in this statute applies whether the property is within or outside 31
the jurisdiction of the legal entity that owns it. The amendment also clarifies that the 32
exemption applies regardless of whether the legal entity enters into agreements with 33
private entities to manage, operate or improve the utilities the separate entity owns. See 34
Chapter 2018-118, Section 7, Laws of Florida (CS/HB 7087). 35
36
Note: Legislation enacted in 2015 added section 1 96.199(1)(a)2., F.S., to provide an 37
ad valorem tax exemption for a leasehold interest in and improvements affixed to land 38
owned by the United States, any branch of the United States Armed Forces, or any 39
agency or quasi-governmental agency of the United States if the leasehold and 40
improvements are acquired or constructed and used pursuant to the federal Military 41
Housing Privatization Initiative of 1996. Any such leasehold interest and improvements 42
are exempt from ad valorem taxation regardless of whether tit le is held by the United 43
States and without necessity of filing an application for the exemption or receiving 44
approval from the property appraiser. This act defines “improvements” to include actual 45
housing units and any facilities that are directly related to such housing units, including 46
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any housing maintenance facilities, housing rental and management offices, parks and 1
community centers, and recreational facilities. This law applies retroactively to January 2
1, 2007. See Chapter 2015-80, Section 1, Laws of Florida (CS for CS for HB 361). 3
4
5
Exempt Entities 6
See Sections 196.192, 196.193, 196,194, 196.195, and 196.196, F.S. 7
Exempt entities are nonprofit ventures which serve a charitable, religious, scientific, or 8
literary purpose. 9
10
All property owned by an exempt entity and used exclusively for an exempt purpose is 11
totally exempt. 12
13
Property owned by an exempt entity and used primarily for an exempt purpose is 14
exempt to the extent that the ratio of such predominate use bears to the non -exempt 15
use. 16
17
Tangible personal property loaned to an exempt entity for public display or exhibition on 18
a recurring schedule for no, or nominal, consideration, is exempt. 19
20
21
Lands Used for Conservation Purposes 22
Section 196.26, F.S., provides a new exemption for the 2010 tax year for “real property 23
dedicated in perpetuity for conservation purposes”. 24
25
In order to qualify for this exemption, the parcel of land must: 26
27
* Be subject to an easement which dedicates the land in perpetuity for conservation 28
purposes; and 29
30
* Be at least 40 acres in size or “fulfill a clearly delineated state conservation policy 31
and yield a significant public benefit”. 32
33
If the land is used exclusively for conservation purposes it is exempt from ad valorem 34
taxation. 35
36
If the land is used for allowed commercial purposes, the land receives an exemption 37
equal to 50 percent of the land’s assessed value. 38
39
Note: Legislation was enacted in 2016 to amend section 196.011(6)(b), F.S., to provide 40
that once the property appraiser has granted an original application for this exemption, 41
the property owner is not required to file a renewal application until the property’s use 42
no longer complies with the restrictions and requirements of the conservation easement. 43
See Chapter 2016-110, Laws of Florida (CS/SB 190). 44
45
46
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Specific Educational Exemptions 1
Charter school property receives an exemption in Section 196.1983, F.S. 2
3
Note: Legislation enacted in 2017 amended section 196.1983, F.S., to clarify 4
provisions requiring landlords to reduce lease payments made by charter schools so 5
that the schools receive the full benefit derived by the landlord from the exemption, 6
effective retroactively to January 1, 2017. See Chapter 2017-36, section 7, Laws of Florida 7
(HB 7109). 8
9
Gold Seal Quality Child Care Centers are exempt as educational institutions. Section 10
402.26, F.S. 11
12
College sororities and fraternities can be exempt under section 196.198, F.S. 13
14
Section 196.198, F.S., also specifically exempts sheltered wo rkshops providing 15
rehabilitation and retraining to disabled individuals. 16
17
Note: Legislation enacted in 2013 amended Section 196.198, F.S, to include an 18
additional form of ownership that qualifies for the educational property exemption. 19
20
* Property used exclusively for educational purposes is deemed owned by an 21
educational institution and qualifies for the educational property exemption if the 22
entity that owns 100 percent of the educational institution and the entity that owns 23
the property are owned by the identical natural persons. 24
25
26
Exemptions for Tangible Personal Property 27
Beginning in 2008, the first $25,000 of tangible personal property listed on each return 28
is exempt. See section 196.183, F.S. 29
30
* See also Rule 12D-7.019, F.A.C. 31
32
Household goods and personal effects are exempt. See section 196.181, F.S. 33
34
Inventory is exempt. See section 196.185, F.S. 35
36
Note: Legislation enacted in 2017 amended section 192.001(11)(c), F.S., to clarify that 37
the term “inventory” includes specified construction and agricultural equipment weighing 38
1,000 pounds or more that is returned to a dealership under a rent-to-purchase option 39
and held for sale to customers in the ordinary course of business. This change was 40
effective July 1, 2017, and applies to assessments and administrative reviews beginning 41
in 2018. See Chapter 2017-36, Sections 2 and 59, Laws of Florida (HB 7109). 42
43
44
Other Exemptions 45
Labor organization property. See section 196.1985, F.S. 46
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1
Affordable housing. See section 196.1978, F.S. 2
3
Note: The 2020 Legislature enacted two amendments to section 196.1978(1), F.S. in 4
Chapter 2020-10, section 10, Laws of Florida, effective upon becoming a law April 8, 5
2020 and operating retroactive to January 1, 2020; and Chapter 2020 -10, section 11, 6
Laws of Florida, effective January 1, 2021. 7
• Section 10 amended section 196.1978(1), F.S., to provide, for property used to 8
provide affordable housing, additional criteria under which vacant units are 9
treated as exempt portions of the affordable housing propert y. These criteria are: 10
if a recorded land use restriction agreement requires all residential units within 11
the property to be used in a manner that qualifies for the exemption under this 12
subsection and if the vacant units are being offered for rent. effect ive upon 13
becoming a law and will operate retroactively to January 1, 2020. See chapter 14
2020-10, Section 10, Laws of Florida (CS/HB 7097). 15
• Section 11 amended section 196.1978(1), F.S., to provide legislative intent for 16
property used to provide affordable housing, that if the sole member of a limited 17
liability company that owns the property is also a limited liability company that is 18
disregarded as an entity for federal income tax purposes, the property will be 19
treated as owned by the sole member of the limited liability company that owns 20
the limited liability company that owns the property. Also, units whose occupants’ 21
income no longer meet the income limits, but whose income met the income 22
limits at the time they became tenants, shall be treated as exempt portions of the 23
affordable housing property. This amendment is effective January 1, 2021. See 24
Chapter 2020-10, Section 11, Laws of Florida (CS/HB 7097). 25
26
Note: Legislation enacted in 2017 amended section 196.1978(2), F.S., to provide a 50 27
percent discount on property taxes for specified portions of certain multifamily properties 28
that offer affordable housing to specified low-income persons and families, if application 29
is made by March 1. This amendment also specifies procedures for the application o f 30
the discount and provides conditions for the termination of the discount. The 31
amendment is effective starting in 2018. See Chapter 2017-36, Section 6, Laws of Florida 32
(HB 7109). 33
34
Community centers. See section 196.1986, F.S. 35
36
Historic properties. See section 196.1997, F.S. 37
38
Historic properties open to the public. See section 196.1998, F.S. 39
40
Not for profit sewer and water companies. See section 196.2001, F.S. 41
42
Section 501(c)(12), I.R.C., not-for-profit water and wastewater systems. See section 43
196.2002, F.S. 44
45
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Historic property used for certain commercial or nonprofit purposes. See section 196.1961, 1
F.S. 2
3
New and expanding businesses. See section 196.1995, F.S. 4
5
Renewable energy source devices. See section 196.182, F.S. 6
7
Note: Legislation enacted in 2017 created section 196.182, F.S., to provide an 8
exemption, from the tangible personal property tax, of 80 percent of the assessed value 9
of certain renewable energy source devices, if the device, as defined in s. 193.624, is 10
considered tangible personal property and: 11
(a) Is installed on real property on or after January 1, 2018; 12
(b) Was installed before January 1, 2018, to supply a municipal electric utility located 13
within a consolidated government; or 14
(c) Was installed after August 30, 2016, on municipal land as part of a described 15
project supplying a municipal electric utility for certain purposes. 16
17
This legislation also specifies conditions under wh ich the exemption would not apply, 18
and specifies conditions under which the exemption would apply to devices affixed to 19
property owned or leased by the U.S. Department of Defense. This change is effective 20
July 1, 2017, and applies to assessments and administrative reviews beginning in 2018. 21
See Chapter 2017-118, Sections 3 and 8, Laws of Florida (CS/SB 90). 22
23
Note: Legislation enacted in 2014 amended section 196.1995, F.S., to provide that, in 24
order to qualify for the economic development exemption, the im provements to real 25
property must be made or the tangible personal property must be added or increased 26
after approval by motion or resolution of the local governing body, subject to ordinance 27
adoption, or on or after the day the ordinance is adopted. 28
29
* This legislation was effective May 12, 2014, and applies to assessments and 30
administrative reviews beginning in 2015. See Chapter 2014-40, Section 1, Laws of 31
Florida (HB 7081). 32
33
Note: Legislation enacted in 2016 amended sections 196.012 and 196.1995, F.S, to 34
provide: 35
36
• Language to describe the new businesses and expansions of existing businesses 37
that are eligible to receive the economic development property tax exemption. It 38
states that the new businesses and expansions of existing businesses that are in 39
areas that were designated as enterprise zones under Ch. 290, F.S., as of 40
December 30, 2015, but not in a brownfield area, may qualify for the property tax 41
exemption only if the local governing body approves by motion or resolution, subject 42
to ordinance adoption, or by ordinance enacted before December 31, 2015. 43
44
• All data center equipment for a data center will be exempt from property taxation for 45
the term of the approved exemption. 46
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1
• Any exemption granted under this section will remain in effect for up to 10 years with 2
respect to any particular facility, or up to 20 years for a data center, regardless of 3
any change in the authority of the county or municipality to grant these exemptions 4
or the expiration of the Enterprise Zone Act under Ch. 290, F.S. 5
6
• This law’s amendments to ss. 196.012 and 196.1995, F.S., which relate to the 7
property tax exemption for certain enterprise zone businesses, are remedial in 8
nature and apply retroactively to December 31, 2015 . 9
10
See Chapter 2016-220, Sections 2, 3, and 4, Laws of Florida (HB 7099). 11
12
Space laboratories and carriers. See section 196.1999, F.S. 13
14
Biblical history display. See section 196.1987, F.S. 15
16
Note: Hospitals. Legislation enacted in 2020 created section 193.019, F.S., effective 17
January 1, 2022, relating to the exemption for hospitals, and providing for community 18
benefit reporting. The legislation provides a limitation for each exemption by multiplying 19
it by the ratio of the net community benefit expense to the tax reduction resulting from 20
the exemption, if the net community benefit expense attributed to an applicant’s 21
property in a county equals or exceeds the tax reduction resulting from the exemption 22
for that county. This note is provided for information only as the law will be effective for 23
2022. See Chapter 2020-10, Section 2, Laws of Florida (CS/HB 7097) effective January 1, 24
2022. 25
26
Hospitals, nursing homes, and homes for special services. See section 196.197, F.S. 27
28
Note: Legislation enacted in 2017 amended section 196.012(9), F.S., to include in the 29
terms “nursing home” or “home for special services ,” institutions that possess a valid 30
license under Chapter 429, Part I, F.S., and to make this amendment applicable to the 31
2017 property tax roll. This change was effective May 25, 2017 and applies to 32
assessments and administrative reviews beginning in 2017. See Chapter 2017-36, Sections 33
3 and 4, Laws of Florida (HB 7109). 34
35
Nonprofit homes for the aged. See section 196.1975, F.S. 36
37
Note: Legislation enacted in 2017 amended section 196.1975(4)(c), F.S., to provide 38
that a not-for-profit corporation applying for an exemption for units or apartments under 39
paragraph (4)(a) of the statute must file , with the application, an affidavit from each 40
person who occupies a unit stating the person’s income; the corporation is not required 41
to provide an affidavit from a resident who is a totally and permanently disabled veteran 42
who meets the requirements of s. 196.081, F.S. The amendment also provides that, if 43
the property appraiser determ ines that additional documentation proving an affiant’s 44
income is necessary, the property appraiser may request it. This change was effective 45
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July 1, 2017, and applies to assessments and administrative reviews beginning in 2018. 1
See Chapter 2017-36, Sections 5 and 59, Laws of Florida (HB 7109). 2
3
Proprietary continuing care facilities. See section 196.1977, F.S. 4
5
Licensed child care facilities located in an enterprise zone. See section 196.095, F.S. 6
7
8
PART 3: Administrative Reviews of Denials of Property Classifications 9
10
The Florida Constitution provides for certain “classifications” of property for assessment 11
purposes. 12
13
“Property Classification” or “Classification” means a classification of property for 14
assessment purposes according to applicable statutory criteria, including those in 15
Chapter 193, Part II, F.S., and an assessment of the property at its classified use value. 16
17
“Classified use value” means the value of a property that is based solely on the 18
property’s character or use and based on th e applicable statutory criteria, without regard 19
to the property’s highest and best use. See section 192.001(2), F.S. 20
21
The sections below contain information on the administrative review of denials of 22
classifications, including information on the statutory criteria for classifications. 23
24
25
The Administrative Review Process for Denials of Classifications 26
Set forth below is a sequence of general procedural steps for Boards and special 27
magistrates to follow in administrative reviews of denials of classifications in order to 28
fulfill the procedural requirements of section 194.301, F.S., and Rule 12D-9.027(4), 29
F.A.C. 30
31
This sequence of steps applies to: the consideration of evidence, the development of 32
conclusions, and the production of written decisions. See Rule 12D-9.027(1), F.A.C. 33
34
“The board or special magistrate shall not be required to make, at any time during a 35
hearing, any oral or written finding, conclusion, decision, or reason for decision.” See 36
Rule 12D-9.025(9), F.A.C. 37
38
“The board or special magistrate has the discretion to determine whether to make such 39
determinations during a hearing or to consider the pet ition and evidence further after the 40
hearing and then make such determinations.” See Rule 12D-9.025(9), F.A.C. 41
42
Under Rule 12D-9.027(4), F.A.C., in administrative reviews of denials of classifications, 43
the Board or special magistrate shall follow this seq uence of general procedural steps: 44
45
1. Consider the admitted evidence presented by the parties; 46
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1
2. Identify the particular property classification issue that is the subject of the petition; 2
3
3. Identify the statutory criteria that apply to the property classification that was 4
identified as the issue under administrative review; 5
6
4. Identify and consider the essential characteristics of the petitioned property or the 7
property owner, as applicable, based on the statutory criteria that apply to the issue 8
under administrative review; 9
10
5. Identify and consider the basis used by the property appraiser in issuing the denial 11
of property classification for the petitioned property; and 12
13
6. Determine whether the admitted evidence proves by a preponderance o f the 14
evidence that the property appraiser’s denial is incorrect and the property 15
classification should be granted because all of the applicable statutory criteria are 16
satisfied. 17
18
The Board or special magistrate must decide whether the admitted evidence, regardless 19
of which party presented the evidence, ha s sufficient weight (in relevance and 20
credibility) to legally justify overturning the property appraiser’s original determination 21
and granting the property classification. 22
23
If the admitted evidence proves the petitioner’s case by the greater weight of the 24
evidence, the original determination must be overturned and the petition granted. 25
26
If the admitted evidence does not legally justify overturning the property appraiser’s 27
original determination, the determination must be upheld. 28
29
30
Statutory Criteria for Property Classifications 31
The following sections of this module contain information on the statutory criteria that 32
must be met to qualify for the property classifications available in Florida. 33
34
* In the case of the more common classifications, this training presents more detail on 35
the applicable statutory criteria. 36
37
* Information on less common classifications not specifically addressed in this training 38
can be found in Chapter 193, Part 2, F.S. 39
40
41
Statutory Criteria for Different Types of Property Classifications 42
Statutory criteria for the following types of property classifications are presented below. 43
44
Types of Property Classifications 45
• Agricultural Property 46
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• Pollution Control Devices 1
• Noncommercial Recreational and Conservation Lands 2
• Historic Property 3
• High-water Recharge Property 4
• Working Waterfront Property 5
• Renewable Energy Source Device 6
7
8
Agricultural Property 9
Authorized in Article VII, Section 4(a), of the Florida Constitution. 10
11
The agricultural classification is governed by sections 193.451, 193.461, 193.4615, and 12
193.462, F.S. 13
14
The property owner must apply for classification as agricultural property by March 1. 15
However, section 193.462, Florida Statutes, allows the Board to grant the classification 16
even when an application was not made by the statutory deadline. 17
18
Qualifying property must be used for “bona fide agricultural purposes,” meaning good 19
faith commercial usage. In determining bona fide agricultural use, the property appraiser 20
may consider the following factors: See section 193.461(3)(b)1., F.S. 21
22
a. The length of time the land has been utilized for bona fide agricultural purposes; 23
24
b. Whether the use has been continuous; 25
26
c. The purchase price paid; 27
28
d. Size, as it relates to specific agricultural use, but a minimum acreage may not be 29
required for agricultural assessment; 30
31
e. Whether an indicated effort has been made to care sufficiently and adequately for 32
the land in accordance with accepted commercial agricultural practices, including, 33
without limitation, fertilizing, liming, tilling, mowing, reforesting, and other accepted 34
agricultural practices; 35
36
f. Whether the land is under lease and, if so, the ef fective length, terms, and conditions 37
of the lease; and 38
39
g. Such other factors as may become applicable. 40
41
“Agricultural Purposes” include but are not limited to: See section 193.461(5), F.S. 42
43
* Horticulture 44
* Floriculture 45
* Viticulture 46
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* Forestry 1
* Dairy 2
* Livestock 3
* Poultry 4
* Bees 5
* Pisciculture (when the land is used primarily for the production of tropical fish) 6
* Aquaculture 7
* Sod Farming 8
* All forms of farm products as defined in section 823.14(3), F.S., and farm 9
production 10
11
Under section 193.461(3)(e), F.S., land that has received an agricultural classification 12
from the value adjustment board or a court of competent jurisdiction is entitled to 13
receive such classification in any subsequent year until: such agricultural use of the land 14
is abandoned or discontinued; the land is diverted to a nonagricultural use; or the land is 15
reclassified as nonagricultural pursuant to section 193.461(4), F.S. 16
17
* In Tilton v. Gardner, 52 So.3d 771 (Fla. 5th DCA 2010), the court, in reviewing a 18
denial of an agricultural classification that had been granted by the value adjustment 19
board in a prior assessment year under subsection 193.461(3)(e), F.S., applied the 20
physical activity test in determining whether record evidence was sufficient to justify 21
continuing the agricultural classification. 22
23
* The Florida Supreme Court has held that the key to determining whether an 24
agricultural classification should be granted is the actual physical activity on the 25
land. See Schultz v. Love PGI Partners, LP, 731 So.2d 1270, 1271 (Fla. 1999). 26
Also, see Straughn v. Tuck, 354 So.2d 368, 370 (Fla. 1977). 27
28
29
Agricultural Property: Dispersed Water Storage Programs 30
* Legislation enacted in 2014 amended Section 193.461, F.S., to provide that 31
agricultural lands that participate in a dispersed water storage program under a 32
contract with the Department of Environmental Protection or a water management 33
district, which requires flooding of land, will retain the agricultural classification as 34
long as the lands are included in the program or successor programs. 35
36
* The property appraiser will assess these lands as nonproductive agricultural lands. 37
38
* Lands that participate and are diverted f rom an agricultural use to a nonagricultural 39
use shall be assessed under Section 193.011, F.S. 40
41
42
Agricultural Property: Quarantine and Eradication Programs 43
Agricultural land taken out of production due to a state or federal quarantine or 44
eradication program shall continue to be classified as agricultural property for the 45
duration of such program or successor program. See Section 193.461(7), F.S. 46
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1
* If the land in the program lies fallow or is used for non-income producing purposes, 2
the land shall have a de minimus value of no more than $50 per acre. 3
4
* If the land in the program is used for another permissible agricultural use, the land 5
shall be assessed based on that usage. 6
7
* If the land is converted to a nonagricultural use, it will be assessed as 8
nonagricultural property under section 193.011, F.S. 9
10
Note: Legislation enacted in 2016 amended section 193.461(7)(a), F.S., to provide that 11
lands classified for assessment purposes as agricultural lands that a state or federal 12
eradication or quarantine program takes out of production will remain agricultural lands 13
for the remainder of the program. Lands that these programs convert to nonincome-14
producing uses will continue to be assessed at a minimum value of up to $50 per acre 15
on a single-year assessment methodology. 16
17
This legislation identified the Citrus Health Response Program as a state or federal 18
eradication or quarantine program , and allows land to retain its agricultural classification 19
for five years after the date of execution of a compliance agreement between the 20
landowner and the Department of Agriculture and Consumer Services (DACS) or a 21
federal agency, as applicable, for this program or successor programs. 22
23
Lands under these programs that are converted to fallow or otherwise nonincome -24
producing uses are still agricultural lands assessed at a minimal value of up to $50 per 25
acre on a single-year assessment methodology while fallow or used for nonincome-26
producing purposes. Lands under these programs that are replanted in citrus according 27
to the requirements of the compliance agreement are classified as agricultural lands 28
and are assessed at a minimal value of up to $50 per acre, on a single-year 29
assessment methodology, during the five-year term of agreement. 30
31
See Chapter 2016-88, Sections 1 and 5, Laws of Florida (CS/CS/HB 749). 32
33
Note: Legislation enacted in 2018 created section 193.461(7)(c), F.S., to require 34
agricultural lands that incur damage from a natural disaster, for which the Governor 35
declares a state of emergency and results in halting agricultural production, to be 36
classified as agricultural lands for five years following termination of the emergency 37
declaration. However, if the lands are diverted from agricultural use to nonagricultural 38
use during or after the five-year recovery period, the property appraiser must assess the 39
lands at just value under s. 193.011, F.S. This provision applies retroactively to natural 40
disasters that occurred on or after July 1, 2017. See Chapter 2018-84, Section 1, Laws of 41
Florida (CS/CS/SB 740). 42
43
Note: Legislation enacted in 2018 created section 193.461(8), F.S., to provide that 44
lands classified as agricultural, which are not being used for agricultural production due 45
to a hurricane that made landfall in this state during 2017, must continue to be classified 46
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as agricultural through December 31, 2022, unless the lands are converted to a 1
nonagricultural use. Lands converted to nonagricultural use are not covered by this 2
subsection and must be assessed as otherwise provided by law. This amendment 3
applies to the 2018 tax roll. See Chapter 2018-118, Sections 12 and 13, Laws of Florida 4
(CS/HB 7087). 5
6
7
Agricultural Property: Special Types 8
See Sections 193.451 and 193.4615, F.S. 9
In addition to the classified use assessments of agricultural land discussed previously, 10
there are additional provisions which address specific kinds of agricultural property. 11
12
These provisions usually deal with the assessment of tangible personal property and 13
instruct that said property should either have no value placed upon it or that it should be 14
valued as salvage. 15
16
Items with no value: 17
* Growing annual crops 18
* Nonbearing fruit trees 19
* Raw agricultural products (until offered for sale) 20
21
Items valued as salvage: 22
* Citrus grading and classification equipment leased from the Department of 23
Agriculture 24
* Obsolete agricultural equipment 25
26
27
Pollution Control Devices 28
This classification is governed by Section 193.621, F.S., which: 29
30
* States that pollution control devices installed in manufacturing or industrial plants or 31
installations shall be valued as salvage. 32
33
* Provides that demolition and reconstruction of part of such a facility for the purpose 34
of reducing pollution, and which does not substantially increase the productivity of 35
the facility, shall not increase the facility’s assessed value . 36
37
* Allows the property appraiser to seek a recommendation from the Department of 38
Environmental Protection as to what constitutes pollution control. 39
40
* Allows the Department of Environmental Protection to promulgate rules concerning 41
this exemption. 42
43
44
Noncommercial Recreation and Conservation Lands 45
This classification is governed by Section 193.501, F.S. 46
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1
To receive this classification, property must be subject to a conservation easement, 2
qualified as environmentally endangered land, designated as conservation land, or used 3
for outdoor recreational or park purposes. 4
5
In addition, the owner must convey all rights to develop the property to a public entity or 6
enter into a covenant with a public entity, for a period no less than ten years, providing 7
that the property shall be subject to one or more of the conservation restrictions 8
provided in Section 704.06(1), F.S. and shall not be used by the owner except for 9
outdoor recreational purposes. 10
11
If the covenant or conveyance extends for more than ten years , the property shall be 12
valued considering no factors other than those relative to its value for the present use 13
as restricted by the covenant or conveyance. 14
15
If the covenant has less than ten years left, the property will be valued at just value 16
considering the restrictions imposed by the covenant. 17
18
If the owner seeks to end the covenant before its expiration, he or she will be liable for 19
all deferred tax liability plus interest. 20
21
22
Historic Property 23
There are two separate sections of the Florida Statutes w hich enact two separate 24
programs for historic properties. 25
26
* Section 193.503, F.S., applies to historic properties used for commercial or certain 27
nonprofit purposes. 28
29
* Section 193.505, F.S., deals with other historically significant property. 30
31
32
Historic Property: Section 193.503, F.S. 33
The criteria for qualifying for this classification are as follows: 34
35
* Classification under this section must be authorized by the city or county, in which 36
case it applies to that entity’s tax levy; 37
38
* An application for classification must be filed by March 1; 39
40
* The property must be used for commercial purposes or by a not -for-profit 41
organization under Section 501(c)(3) or (6) of the Internal Revenue Code; 42
43
* The property must be: listed in the National Register of Historic Places, part of a 44
National Register Historic District, or designated as historic or part of a historic 45
district under a local preservation ordinance; 46
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1
* The property must be maintained in good condition to prese rve historic value; and 2
3
* The property must be open to the public 40 hours per week for 45 weeks per year or 4
for 1800 hours annually. 5
6
The classification is lost if the owner fails to continue to meet these criteria. 7
8
9
Historic Property: Section 193.505, F.S. 10
The criteria for qualifying for this classification are as follows: 11
12
* The property must be: on the National Register of Historic places, in a certified 13
locally designated historic district, or found to be historic by the Division of Historical 14
Resources or a local historic preservation board; 15
16
* The owner must convey all rights to develop the property to the county governing 17
board or enter into a covenant for a period of no less than ten years providing that 18
the property shall not be used for any purpose inconsistent with historic preservation 19
or the historic qualities of the property; 20
21
* The county must agree to accept the development right or covenant and must 22
designate the property as historic by formal resolution; 23
24
* The county may not transfer development rights or use them in a manner 25
inconsistent with historic preservation or the historic qualities of the property; 26
27
* If the owner seeks to end the covenant before its expiration, he or she will be liable 28
for all deferred tax liability plus interest; and 29
30
* When the covenant ends, the owner is responsible for all deferred tax liability plus 31
interest. 32
33
34
High-water Recharge Property 35
The county or city must adopt an ordinance allowing for this classification. See Section 36
193.625, F.S. 37
38
* The ordinance shall provide the formula for assessing property which qualifies for 39
this classification. 40
41
* Land must be used for “bona fide high -water recharge purposes.” 42
43
* Application for this classification must be made by March 1. 44
45
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* The land owner must contract to use the land for high-water recharge purposes for 1
five years or more. 2
3
To qualify as being used for “bona fide high-water recharge purposes”: See Subsection 4
193.625(3)(b), F.S. 5
6
* The land use must have been continuous. 7
8
* The land use must be vacant residential, vacant commercial, vacant industrial, 9
vacant institutional, nonagricultural, or single-family residential. 10
11
* The maintenance of one single-family residential dwelling on part of the land does 12
not in itself preclude a high-water recharge classification. 13
14
* The land must be located within a prime groundwater recharge area or in an area 15
considered by the appropriate water manageme nt district to supply significant 16
groundwater recharge. 17
18
* Significant groundwater recharge shall be assessed by the appropriate water 19
management district on the basis of hydrologic characteristics of the soils and 20
underlying geologic formations. 21
22
* The land must not be receiving any other special classification. 23
24
* There must not be in the vicinity of the land any activity that has the potential to 25
contaminate the ground water, including, but not limited to, the presence of: 26
27
* Toxic or hazardous substances; 28
* Free-flowing saline artesian wells; 29
* Drainage wells; 30
* Underground storage tanks; or 31
* Any potential pollution source existing on a property that drains to the 32
property seeking the high-water recharge classification. 33
34
* The parcel of land must be at least ten acres. 35
36
37
Working Waterfront Property 38
The Florida Constitution sets forth criteria for classifying and valuing working waterfront 39
property. 40
41
The provisions of Amendment 6, working waterfronts, have been placed in the Florida 42
Constitution at Article VII, Section (4)(j), effective for the 2010 assessment year. 43
44
These provisions state as follows: 45
46
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“(j)(1) The assessment of the following working waterfront properties shall 1
be based upon the current use of the property: 2
3
a. Land used predominantly for commercial fishing purposes. 4
5
b. Land that is accessible to the public and used for vessel launches 6
into waters that are navigable. 7
8
c. Marinas and drystacks that are open to the public. 9
10
d. Water-dependent marine manufacturing facilities, commercial 11
fishing facilities, and marine vessel construction and repair 12
facilities and their support activities. 13
14
(2) The assessment benefit provided by this subsection is subject to 15
conditions and limitations and reasonable definitions as specified by 16
the legislature by general law.” 17
18
The constitutional amendment on working waterfronts is self -executing with 19
authorization for the Legislature to elaborate by general law. 20
21
In the 2009 and 2010 sessions, the Legislature considered bills that did not pass but 22
that would have contained guidance for classifying and valuing working waterfront 23
property. These bills would have applied to the 2010 tax year if they had be come law. 24
25
Amendment 6, creating classification of property used for working waterfronts, is 26
effective for the 2010 year in the absence of legislation. 27
28
29
Renewable Energy Source Device Classification 30
* Legislation enacted in 2013 created section 193.624, F .S., to provide for 31
assessment of a "renewable energy source device" installed on or after January 1, 32
2013, to new and existing residential real property. 33
34
* When determining the assessed value of real property used for residential purposes, 35
an increase in the just value of the property attributable to the installation of a 36
renewable energy source device may not be considered. 37
38
* This requirement is an exception to certain provisions relating to assessment of 39
changes, additions, or improvements in sections 193.155 and 193.1554, F.S. 40
41
* This legislation became effective July 1, 2013 and applies to assessments and 42
administrative reviews beginning in 2014. See Chapter 2013-77, Sections 1, 2, and 3, 43
Laws of Florida (HB 277). 44
45
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Note: Legislation enacted in 2017 amended section 193.624, F.S., to provide, for 1
nonresidential real property, that 80 percent of the just value attributable to a renewable 2
energy source device may not be considered in determining the assessed value of the 3
property; this provision applies to devices installed on nonresidential property on or after 4
January 1, 2018, except in a fiscally constrained county for which application for 5
comprehensive plan amendment or planned unit development zoning is made by 6
December 31, 2017. This change became effective July 1, 2017, and applies to 7
assessments and administrative reviews beginning in 2018. See Chapter 2017-118, 8
Sections 2 and 8, Laws of Florida (CS/SB 90). 9
10
11
Agricultural Equipment Unusable for at Least 60 Days Due to 12
Hurricane Michael 13
Legislation enacted in 2019 created section 193.4517, Florida Statutes, to provide that, 14
for the 2019 tax roll, tangible personal property owned and operated by a farm, farm 15
operation, or agriculture processing facility located in Okaloosa, Walton, Holmes, 16
Washington, Bay, Jackson, Calhoun, Gulf, Gadsden, Liberty, Franklin, Leon, or Wakulla 17
County is deemed to have a market value no greater than its value for salvage if the 18
tangible personal property was unable to be used for at lea st 60 days due to the effects 19
of Hurricane Michael. “Unable to be used” means the tangible personal property was 20
damaged, or the farm, farm operation, or agricultural processing facility was affected to 21
such a degree that the tangible personal property cou ld not be used for its intended 22
purpose. “Farm” has the same meaning as provided in s. 823.14(3)(a). F.S. and “farm 23
operation” has the same meaning as provided in s. 823.14(3)(b), F.S. The deadline for 24
an applicant to file an application with the property appraiser for assessment under this 25
new law is August 1, 2019. If the property appraiser denies an application, the applicant 26
may file, under s. 194.011(3), a petition with the value adjustment board requesting that 27
the tangible personal property be assessed according to this law. Such petition must be 28
filed on or before the 25th day after the mailing by the property appraiser, during the 29
2019 calendar year, of the notice required under s. 194.011(1). This legislation is 30
effective July 1, 2019 and applies retroactively to January 1, 2019. See Chapter 2019-42, 31
Section 2, Laws of Florida (HB 7123). 32
33
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Module 10: 1
Administrative Reviews of 2
Assessment Difference Transfers and Tax Deferral s 3
4
Training Module 10 addresses the following topics: 5
6
PART 1 7
Administrative Reviews of Assessment Difference Transfers 8
• Overview of Assessment Difference Transfers (Portability) 9
• Petitions on Determinations Made in the New Homestead County 10
• Petitions on Determinations Made in the Previous Homestead County 11
• Procedures for a Hearing in the Previous Homestead County 12
• Procedures for a Cross-county Hearing in the New Homestead County 13
• Statutory Criteria for Assessment Difference Transfers 14
• The Administrative Review Process for Assessment Differen ce Transfers 15
16
PART 2 17
Administrative Reviews of Tax Deferrals and Penalties 18
• Overview of Tax Deferrals 19
• Overview of Penalties on Tax Deferrals 20
• Unique Aspects of Petitions on Tax Deferrals and Penalties 21
• The Administrative Review Process for Tax Deferrals and Penalties 22
23
24
Learning Objectives 25
After completing this training module, the learner should be able to: 26
27
• Recognize and apply the definition of “assessment difference” 28
• Recognize and apply the definition of “portability” and “assessment difference 29
transfer” 30
• Identify the two general locations where portability may apply 31
• Recognize where a portability petition must be filed 32
• Identify and apply the requirements for petitions on determinations made in the new 33
homestead county 34
• Identify and apply the requirements for petitions on determinations made in the 35
previous homestead county 36
• Recognize and apply the procedures for a hearing in the previous homestead county 37
• Identify and apply the procedures for a cross-county hearing in the new homestead 38
county 39
• Identify and apply the statutory criteria for assessment difference transfers 40
• Apply the administrative review process for assessment difference transfers 41
• Recognize how tax deferrals differ from exemptions 42
• Identify the property types for which tax deferrals could apply 43
• Identify when penalties on tax deferrals apply 44
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• Recognize the unique aspects of petitions on tax deferrals and penalties 1
• Apply the administrative review process for tax deferrals and penalties 2
3
4
PART 1 5
6
Overview of Assessment Difference Transfers (Portability) 7
Under a constitutional amendment passed in January 2008, along with 2008 legislation, 8
a taxpayer may qualify to transfer the difference between the just value and assessed 9
value of his or her previous homestead property to a new homestead property. 10
11
“Assessment difference” means the difference between just value and assessed value 12
that can be transferred from a previous homestead property to a new homestead 13
property. 14
15
“Portability” and “assessment difference transfer” mean the assessment, at less than 16
just value, of a new homestead property based on the transfer of an assessment 17
difference from a previous homestead property after the previo us homestead has been 18
abandoned. 19
20
Subsection 193.155(8), F.S., sets time limits for qualifying for an assessment difference 21
transfer and sets limitations on the amount of the assessment difference that can be 22
transferred. 23
24
To qualify for transfer of an assessment difference, a homestead property owner must 25
timely file a portability application with the property appraiser on a separate form. 26
27
* This portability application should be filed along with the homestead exemption 28
application for the new residence. 29
30
Portability may apply to a new homestead property located in the same county as the 31
previous homestead property or may apply to a new homestead property located in a 32
county other than the previous homestead county. 33
34
When a property owner applies for portability in a county other than the previous 35
homestead county, the property appraiser in the previous homestead county is required 36
to provide the amount of the assessment difference for the previous homestead to the 37
property appraiser in the new homestead county. 38
39
* Therefore, in cases where two counties are involved, the property appraiser in each 40
county must take actions that determine whether portability is granted and determine 41
the amount of the transfer. 42
43
Some of the criteria for qualifying for porta bility and calculating allowable amounts for 44
transfer are complex, especially when applied to multiple owners who separate, join 45
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together, or transfer from one county to another. 1
2
The shares of the assessment difference cannot be sold, transferred, or ple dged to any 3
taxpayer, except by sworn irrevocable designation of ownership shares between 4
husband and wife as described in Chapter 2012 -193, Section 5, Laws of Florida. 5
6
* In the case of a husband and wife abandoning jointly titled property, the husband 7
and wife may designate the ownership share to be attributed to each spouse by 8
following the procedure in paragraph (f) of subsection 193.155(8), F.S. To qualify to 9
make such a designation, the husband and wife must be married on or before the 10
date they abandon the jointly owned property. See Chapter 2012-193, Section 5, Laws 11
of Florida, amending subsection 193.155(8)(d), F.S. 12
13
* A husband and wife abandoning jointly titled property and who wish to designate the 14
ownership share of the previous homestead to be attributed to each person for 15
purposes of subsection 193.155(8)(d), F.S., must file a form with the property 16
appraiser in the previous homestead county. The filed form must include a sworn 17
statement by each person designating the ownership share of the abandoned 18
homestead to be attributed to each person for purposes of portability. Such a 19
designation of ownership shares, once filed with the previous property appraiser, is 20
irrevocable and cannot be changed. See Chapter 2012-193, Section 5, Laws of Florida, 21
creating subsection 193.155(8)(f), F.S. 22
23
More information on the applicable criteria is presented later in this module in a section 24
titled “Statutory Criteria for Assessment Difference Transfers .” 25
26
Rule 12D-9.028, F.A.C., applies to the review of denials of assessment limitation 27
difference transfers and to the amount of an assessment limitation difference transfer. 28
29
No adjustment to the just, assessed, or taxable value of the previous homestead parcel 30
may be made pursuant to a petition under Rule 12D-9.028, F.A.C. 31
32
33
Petitions on Determinations Made in the New Homestead County 34
A portability petition must always be filed in the county where the new homestead 35
property is located. 36
37
However, in cases where two counties are involved, the law allows the petitioner to 38
appeal the actions of the property appraiser in the new homestead county and the 39
actions of the property appraiser in the previous homestead county. 40
41
If only a part of a transfer of assessment difference is granted by a property appraiser, 42
the notice of proposed property taxes (TRIM notice) functions as notice of the 43
taxpayer’s right to appeal to the Board. See Rule 12D-9.028(2), F.A.C. 44
45
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The Department has provided Form DR-490PORT for property appraisers to use in 1
notifying taxpayers of denials of portability. 2
3
To appeal either a denial of a transfer or the amount of a transfer, a taxpayer may file a 4
petition with the Board in the new homestead county using Form DR -486PORT. See 5
Rule 12D-9.028(2) and (3), F.A.C. 6
7
Form DR-486PORT is available on the Department’s website at the following link: 8
http://floridarevenue.com/property/Pages/VAB.aspx 9
10
This petition may be filed at any time during the taxable year by the 25th day following 11
the mailing of the notice of proposed property taxes as provided in Section 194.011, 12
F.S. See Rule 12D-9.028(2), F.A.C. 13
14
In hearings held in the new homestead county, the Board or special magistrate shall 15
review the application and accompanying evidence presented to the property appraiser 16
by the petitioner and shall hear the petition for portability. See Rule 12D-9.028(3), F.A.C. 17
18
Portability petitions shall be heard by an attorney special magistrate if the Board uses 19
special magistrates. See Rule 12D-9.028(3), F.A.C. 20
21
NOTE: When the petitioner indicates on the completed petition that he or she is 22
appealing the actions of the property appraiser in the previous homestead county, it is 23
necessary for two hearings to be held. 24
25
* The first of these two hearings must be held in the county where the previous 26
homestead property is located, and the second hearing must be held in the county 27
where the new homestead property is located. 28
29
30
Petitions on Determinations Made in the Previous Homestead County 31
Under Rule 12D-9.028(5), F.A.C., the petitioner may file a petition in the new 32
homestead county when the petitioner does not agree with either: 33
34
1. The denial by the property appraiser in the previous homestead county of an 35
assessment limitation difference; or 36
37
2. The amount of the assessment limitation difference as determined by the property 38
appraiser in the previous homestead county. 39
40
A taxpayer who wants to appeal the action of the property appraiser in the previous 41
homestead county must so indicate by checking the appropriate box on the portability 42
petition (Form DR-486PORT) filed with the Board clerk in the new homestead county. 43
See Rule 12D-9.028(4), F.A.C. 44
45
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Upon receiving the completed petition from the taxpayer, the Board clerk in the new 1
homestead county shall complete Form DR-486XCO and send it, along with the 2
taxpayer’s petition, to the Board clerk in the previous homestead county. 3
4
When the Board clerk in the previous homestead county receives the completed Form 5
DR-486XCO and taxpayer’s petition, that Board clerk must file these two documents as 6
a petition to the Board in the previous homestead coun ty. See Rule 12D-9.028(6)(c), 7
F.A.C. 8
9
Form DR-486XCO is available on the Department’s website at the following link: 10
http://floridarevenue.com/property/Pages/VAB.aspx 11
12
* No filing fee is required in the previous homestead county. See Rule 12D-9.028(6)(c), 13
F.A.C. 14
15
If a Form DR-486XCO is properly filed, it operates as a timely petition and creates an 16
appeal to the Board in the previous homestead county on all issues surrounding the 17
previous assessment difference for the taxpayer involved. See Rule 12D-9.028(5) and 18
(6)(a), F.A.C. 19
20
Then, under Rule 12D-9.028(6)(b), F.A.C., the Board clerk in the previous homestead 21
county shall set the petition for hearing and send a notice of hearing to: 22
23
1. The petitioner(s); 24
25
2. The property appraiser in the previous homestead county; and 26
27
3. The property appraiser in the new homestead county. 28
29
Then, the Board or special magistrate in the previous homestead county shall hear the 30
petition. 31
32
* If the Board in the previous homestead county has already adjourned, it shall 33
reconvene to ensure that the petition is heard and a final decision is issued. 34
35
A taxpayer may not petition to have the just, assessed, or taxable value of the previous 36
homestead changed. See Rule 12D-9.028(6)(a), F.A.C. 37
38
NOTE: Unless the petitioner indicates on the completed petition that he or she is 39
appealing the actions of the property appraiser in the previous homestead county, it is 40
not necessary to send the petition to the Board clerk in the previous homestead county 41
or to hold a hearing in the previous homestead county. 42
43
44
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Procedures for a Hearing in the Previous Homestead C ounty 1
If the Board in the previous homestead county uses special magistrates, the petition 2
shall be heard by an attorney special magistrate. See Rule 12D-9.028(6)(d), F.A.C. 3
4
The petitioner may attend such hearing and present evidence, but need not do so. See 5
Rule 12D-9.028(6)(d), F.A.C. 6
7
If the petitioner does not appear at the hearing, the hearing shall go forward. See Rule 8
12D-9.028(6)(d), F.A.C. 9
10
The Board or special magistrate shall obtain the petition file from the Board clerk. See 11
Rule 12D-9.028(6)(d), F.A.C. 12
13
The Board or special magistrate shall consider deeds, property appraiser records that 14
do not violate confidentiality requirements, and other documents that are admissible 15
evidence. See Rule 12D-9.028(6)(d), F.A.C. 16
17
The petitioner may submit a written statement for review and consideration by the Board 18
or special magistrate explaining why the assessment difference transfer should be 19
granted based on applications and other documents and records submitted by the 20
petitioner. See Rule 12D-9.028(6)(d), F.A.C. 21
22
The Board in the previous homestead county shall issue a decision , and the Board clerk 23
shall send a copy of the decision to the Board clerk in the new homestead county. See 24
Rule 12D-9.028(6)(e), F.A.C. 25
26
27
Procedures for a Cross-county Hearing in the New Homestead County 28
When the Board clerk in the new homestead county receives the decision of the Board 29
in the previous homestead county, the Board clerk must schedule and send notice to 30
the parties of a hearing before the Board or special magistrate in the new homestead 31
county. 32
33
The Board in the new homestead county may not hold its hearing until it has received 34
the decision from the Board in the previous homestead county. See Rule 12D-9.028(6)(f), 35
F.A.C. 36
37
In hearing the petition, the Board or special magistrate in the new homestead county 38
shall consider the decision of the Board in the previous homestead county on the issues 39
pertaining to the previous homestead and on the amount of any assessment difference 40
for which the petitioner qualifies. See Rule 12D-9.028(6)(f), F.A.C. 41
42
The consideration or adjustment of the just, assessed, or taxable value of the previous 43
homestead property is not authorized. See Rule 12D-9.028(7), F.A.C. 44
45
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1
Statutory Criteria for As sessment Difference Transfers 2
Statutory criteria for assessment difference transfers are contained in Subsection 3
193.155(8), F.S. 4
5
See also Rule 12D-8.0065, F.A.C., Transfer of Homestead Assessment Difference; 6
“Portability;” Sworn Statement Required; Denials; Late Applications. 7
8
The amount of the assessment difference is transferred as a reduction to the just value 9
of the interest owned by persons that qualify for and receive homestead exemption on a 10
new homestead property. 11
12
The portability applicant must establish a new homestead on the new residence by 13
January 1 of the year for which the applicant applies for portability. 14
15
Note: Legislation was enacted in 2018 creating section 193.155(8)(m), F.S., to provide, 16
for purposes of the portability assessment reduction, that an owner of homestead 17
property that was significantly damaged or destroyed as a result of a named tropical 18
storm or hurricane, may elect, in the calendar year following the named tropical storm or 19
hurricane, to have the significantly damaged or destroyed homestead deemed to have 20
been abandoned as of the date of the named tropical storm or hurricane , even though 21
the owner received a homestead exemption on the property as of January 1 of the year 22
immediately following the named tropical storm or hurricane. This election is available 23
only if the owner establishes a new homestead as of January 1 of the second year 24
immediately following the storm or hurricane. This provision applies to homestead 25
property damaged or destroyed on or after January 1, 2017. See Chapter 2018-118, 26
Section 9, Laws of Florida (CS/HB 7087). 27
28
If the applicant qualifies for portability, the assessment difference can be transferred, 29
with certain limits, from a previous homestead that was abandoned after January 1 in 30
either of the two preceding years. 31
32
Where multiple owners abandon a previous homestead and establish one or more new 33
homesteads, Subsection 193.155(8), F.S., provides criteria for determining the relative 34
shares of the transfer for each of the owners. 35
36
When two or more people establish a ne w homestead, the amount that can be 37
transferred is limited to the highest difference between just value and assessed value 38
from any of the new owners’ previous homesteads. 39
40
Additional provisions address how portability works when there are multiple owners. 41
See section 193.155(8), F.S., amended by Chapter 2012-193, Section 5, Laws of Florida. Also, 42
see Rule 12D-8.0065, F.A.C. 43
44
Two limitations of an assessment difference transfer are as follows: 45
46
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1. The maximum amount that can be transferred is $500,000. 1
2
2. If the new homestead is lower in value than the old homestead, there is a 3
percentage limitation on the amount that can be transferred as described in 4
section 193.155(8)(b), F.S., and Rule 12D-8.0065, F.A.C. 5
6
7
The Administrative Review Process for Assessment Difference 8
Transfers 9
The Board or special magistrate is not authorized to adjust the just, assessed, or 10
taxable value of the previous homestead property. See Rule 12D-9.028(1), F.A.C. 11
12
Under Rule 12D-9.027(4), F.A.C., in administrative reviews of assessment difference 13
transfers, the Board or special magistrate shall follow this sequence of general 14
procedural steps: 15
16
1. Consider the admitted evidence presented by the parties. 17
18
2. Identify the particular assessment difference transfer issue that is the subject of the 19
petition. 20
21
3. Identify the statutory criteria that apply to the portability assessment difference 22
transfer that was identified as the issue under administrative review . 23
24
4. Identify and consider the essential characteristics of the petitioned property or the 25
property owner, as applicable, based on the statutory criteria that apply to the issue 26
under administrative review. 27
28
5. Identify and consider the basis used by the property appraiser in issuing the denial 29
or determining the amount of the assessment difference transfer for the petitioned 30
property. 31
32
6. Determine whether the admitted evidence proves by a preponderance of the 33
evidence that the property appraiser’s denial or partial denial is incorrect and the 34
portability assessment difference transfer should be granted because all of the 35
applicable statutory criteria are satisfied. 36
37
The Board or special magistrate must decide whether the admitted evidence, regardless 38
of which party presented the evidence, ha s sufficient weight (in relevance and 39
credibility) to legally justify overturning the property appraiser’s original determination 40
and granting the portability assessment difference transfer. 41
42
If the admitted evidence proves the petitioner’s case by the greater weight of the 43
evidence, the original determination must be overturned and the petition granted. 44
45
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If the admitted evidence does not legally justify overturning the prope rty appraiser’s 1
original determination, the determination must be upheld. 2
3
4
PART 2 5
6
Overview of Tax Deferrals 7
Hearings on the denial of a tax deferral require the petitioner to show, by a 8
preponderance of the evidence, that he or she has met the statutory criteria for being 9
granted a deferral. 10
11
Tax deferrals differ from exemptions and classifications in that they do not reduce the 12
amount of taxes due on the property, but rather tax deferrals allow the taxpayer to defer 13
paying those taxes until a later time. 14
15
Essentially, a qualifying taxpayer may defer payment of all or part of the property taxes 16
until such time as the ownership or use of the land changes, at which time all of the 17
unpaid deferred taxes become due and payable. 18
19
Currently, there are three types of property tax deferrals, as listed below with references 20
to applicable sections of Florida Statutes. 21
22
The 2011 Legislature rewrote the laws pertaining to tax deferrals. 23
24
* The three types of homestead deferrals are now handled together in som e statutory 25
sections and separately in others. 26
27
* See Chapter 2011-151 Laws of Florida (SB 478) effective July 1, 2011. 28
29
* The legislation created or amended sections 197.2421, 197.2423, 197.2425 30
(formerly 197.253), 194.243 (relating to homestead), 197.252 (relating to 31
homestead), 197.2524 (relating to working waterfront and affordable housing), 32
197.2526 (relating to affordable housing), 197.254, 197.262, 197.263, 197.272, 33
197.282, 197.292, and 197.301 (relating to penalties). 34
35
* The legislation repealed sections 197.242, 197.304, 197.3041, 197.3042, 197.3043, 36
197.3044, 197.3045, 197.3046, 197.3047, 197.307, 197.3072, 197.3073, 197.3074, 37
197.3075, 197.3076, 197.3077, 197.3078, and 197.3079, Florida Statutes. See 38
Chapter 2011-151, Section 59, Laws of Florida. 39
40
41
Overview of Penalties on Tax Deferrals 42
If a taxpayer who applies for a tax deferral willfully files incorrect information, either in 43
the application or in another required return, all deferred taxes and interest become due 44
and a penalty is also imposed. 45
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1
This penalty may be appealed to the Board. 2
3
The burden of proof in these cases is on the petitioner and the standard of proof 4
remains preponderance of the evidence. 5
6
7
Unique Aspects of Petitions on Tax Deferrals and Penalties 8
Tax deferrals and associated penalties are administered by the tax collector and not by 9
the property appraiser. 10
11
* Therefore, the tax collector is a party to these types of petitions and the property 12
appraiser is not. 13
14
Petitions to the Board on these matters are made on Form DR-486DP and not on Form 15
DR-486. 16
17
A petition regarding a tax deferral shall be considered timely if it is filed within 30 days 18
after the denial is mailed. See section 197.2425, F.S., created by Chapter 2011-151, Section 19
13, Laws of Florida. 20
21
A petition appealing penalties imposed for providing incorrect information regarding a 22
tax deferral is considered timely if filed within 30 days after the penalties are imposed by 23
the tax collector. 24
25
26
The Administrative Review Process for Tax Deferrals and Penalties 27
The Department does not have detailed rules for administrative reviews of deferrals and 28
penalties involving tax collectors. 29
30
Rather, Rule 12D-9.036, F.A.C., provides procedures for petitions on denials of tax 31
deferrals, stating the following: 32
33
“(1) The references in these rules to the tax collector are for the handling of petitions of 34
denials of tax deferrals under Section 197.2425, F.S., and petitions of penalties 35
imposed under Section 197.301, F.S.” 36
37
“(2) To the extent possible where the context will permit, such petitions shall be handled 38
procedurally under this rule chapter in the same manner as denials of exemptions.” 39
40
The procedures for administrative reviews of denials of deferrals and penalties include 41
those provided for exemptions in Rule 12D-9.027(4)(b) through (g), F.A.C. 42
43
* However, the procedures provided in Rule 12D-9.027(4)(a), F.A.C., specifically do 44
NOT apply to administrative reviews regarding deferrals and penalties. 45
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1
Module 11: 2
Requirements for Written Decisions 3
4
Training Module 11 addresses the following topics: 5
• Written Decisions and Taxpayer Rights 6
• General Requirements for Written Decisions 7
• Required Forms for Written Decisions 8
• Statements on Board Decisions by the Auditor General 9
• Statements on Board Decisions by Florida Courts 10
• Sufficiency of Evidence 11
• Evaluation of the Relevance of Evidence 12
• Evaluation of the Credibility of Evidence 13
• Requirements for Findings of Fact 14
• Requirements for Conclusions of Law 15
• Specific Requirements for Findings of Fact and Conclusions of Law 16
• Reasons for Recommended Decisions and Final Decisions 17
18
19
Learning Objectives 20
After completing this training module, the learner should be able to: 21
22
• Apply taxpayer rights to written decisions 23
• Identify the conditions under which a written decision is required 24
• Recognize and properly complete the required forms for written decisions 25
• Recognize statements from the Auditor General and Florida courts on findings of fact 26
and conclusions of law 27
• Evaluate the relevance of evidence 28
• Evaluate the credibility of evidence 29
• Identify and apply the requirements for findings of fact 30
• Identify and apply the requirements for conclusions of law 31
• Identify and apply the specific requirements for findings of fact and conclusions of 32
law 33
• Recognize the requirements for reasons for upholding or overturning the 34
assessment 35
36
37
Written Decisions and Taxpayer Rights 38
Florida Statutes provide the following taxpayer right: “The right to be sent a timely 39
written decision by the value adjustment board containing findings of fact and 40
conclusions of law and reasons for upholding or overturning the determination of the 41
property appraiser.” See Subsections 192.0105(2)(g) and 194.034(2), F.S. 42
43
The special magistrate and Board clerk shall observe the petitioner’s right to be sent a 44
timely written recommended decision containing proposed findings of fact and proposed 45
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conclusions of law and reasons for upholding or overturning the determination of the 1
property appraiser. See Rule 12D-9.030(1), F.A.C. 2
3
The taxpayer has the right to be issued a timely written decision by the Board within 20 4
calendar days of the last day the Board is in session pursuant to Section 194.032, F.S. 5
See Rule 12D-9.001(2)(k), F.A.C. 6
7
The Florida Supreme Court has stated that the lawful issuance of findings of fact and 8
conclusions of law by the Board is a requirement of due process. See Miller v. Nolte, 453 9
So.2d 397 (Fla. 1984). 10
11
12
General Requirements for Written Decisions 13
In the value adjustment board process, written decisions include the following: 14
15
1. Remand decisions produced by the Board or special magistrate, as applicable; 16
17
2. Recommended decisions produced by special magistrates; and 18
19
3. Final decisions produced by the value adjustment board. 20
21
As used in this training, the terms “findings of fact” and “conclusions of law” include 22
proposed findings of fact and proposed conclusions of law produced by special 23
magistrates in their recommended decisions. See Rule 12D-9.030(5), F.A.C. 24
25
When required under Rule 12D-9.029, F.A.C., the Board or special magistrate shall 26
produce a written remand decision that contains findings of fact, conclusions of law, and 27
appropriate directions to the property appraiser. See Rules 12D-9.029(4) and (6), F.A.C. 28
29
For each petition not withdrawn or settled, special magistrates shall produce a written 30
recommended decision that contains findings of fact, conclusions of law, and reasons 31
for upholding or overturning the property appraiser’s determination. See Rule 12D-32
9.030(1), F.A.C. 33
34
For each petition not withdrawn or settled, the Board shall produce a written final 35
decision that contains findings of fact, conclusions of law, and reasons for upholding or 36
overturning the property appraiser’s determination. See Rule 12D-9.032(1)(a), F.A.C. 37
38
* For all withdrawn or settled petitions, a special magistrate shall not produce a 39
recommended decision and the Board shall not produce a final decision. See Rule 40
12D-9.021(5), F.A.C. 41
42
In each recommended decision and in each final decision, the conclusions of law must 43
be based on findings of fact. For each of the statutory criteria for the issue under 44
administrative review, the findings of fact must identify the corresponding admitted 45
evidence or lack thereof. See Rules 12D-9.030(1) and 12D-9.032(1)(a), F.A.C. 46
47
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Each recommended decision and each final decision shall contain sufficient factual and 1
legal information and reasoning to enable the parties to understand the basis for the 2
decision, and shall otherwise meet the requirements of law. See Rules 12D-9.030(1) and 3
12D-9.032(1)(a), F.A.C. 4
5
The Board shall issue all final decisions within 20 calendar days of the last day the 6
Board is in session pursuant to Section 194.032, F.S. See Rule 12D-9.032(4), F.A.C. 7
8
9
Required Forms for Written Decisions 10
For producing recommended decisions and final decisions, the Department prescribes 11
the Form DR-485 series, and any electronic equivalent forms approved by the 12
Department under Section 195.022, F.S. See Rule 12D-9.030(4), F.A.C. 13
14
* The Form DR-485 series is available on the Department’s website at the following 15
link: http://floridarevenue.com/property/Pages/VAB.aspx 16
17
* Boards and special magistrates are required to use forms that are current and up -to-18
date. 19
20
* The Form DR-485 series, or approved electronic equivalent forms, are the only 21
forms that shall be used for producing remand decisions, recommended decisions, 22
and final decisions. See Rules 12D-9.029(4), 12D-9.030(4), and 12D-9.032(5), F.A.C. 23
24
* The Form DR-485 series has separate sections for findings of fact and conclusions 25
of law. Additional sheets may be attached to the form if more space is needed to 26
properly complete the required sections listed on the form. 27
28
For producing written remand decisions, the Board or special magistrate must correctly 29
complete Form DR-485R, which also has a separate section for appropriate directions 30
to the property appraiser. 31
32
For producing recommended decisions on value petitions, an appraiser special 33
magistrate must correctly complete Form DR-485V. 34
35
For producing recommended decisions on exemption, classification, or portability 36
petitions, an attorney special magistrate must correctly complete Form DR -485XC. 37
38
For producing final decisions, the Board must use Form DR -485V for value petitions 39
and must use Form DR-485XC for exemption, classification, or portability petitions. 40
41
42
Statements on Board Decisions by the Auditor General 43
The Florida Auditor General reports to and works for the Florida Legislature. Generally, 44
the Auditor General is authorized to conduct performance audits of state and local 45
governments. 46
47
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Auditor General’s Report No. 2006-007, issued in July 2005, contained the results of the 1
Auditor General’s performance audit of value adjustment boards. 2
3
This report contains criticisms of past written decisions of value adjustment boards. 4
5
This Auditor General’s report contained the following two statements: 6
7
* “Our review of the written decisions of the special masters and the Boards revealed 8
that 37 percent of the written decisions (52 of 139) from Boards in 11 counties…did 9
not contain sufficient details in the finding of facts section of the written decisions to 10
satisfy the applicable requirements of the above-cited statute and rule.” 11
12
* “We recommend that the Boards review the content of written findings and 13
conclusions, whether heard by the Boards or special masters, and ensure that those 14
findings and conclusions are documented in accordance with Section 194.034(2), 15
Florida Statutes, and Department of Revenue Rule 12D-10.003(5)(a), Florida 16
Administrative Code.” 17
18
Note: Rule 12D-10.003(5)(a), cited by the Auditor General in 2005 as shown above, 19
was later re-numbered to Rule 12D-10.003(3) as part of a rule amendment effective 20
March 30, 2010. Users of these training materials are directed to current Rule 12D -21
10.003(3), F.A.C. 22
23
24
Statements on Board Decisions by Florida Courts 25
Florida court decisions have also commented on the inadequacy of some past written 26
records. 27
28
The following four statements appear, along with other statements, in a Florida 29
appellate court decision that was critical of a Board’s written decision. See Palm Beach 30
Gardens Community Hospital, Inc. v. Nikolits, 754 So.2d 729 (Fla. 4th DCA 1999). 31
32
* “The requirement that the value adjustment board shall contain in its decision findings 33
of fact and conclusions of law and shall contain reasons for upholding or overturning 34
the determination of property appraiser is not discretionary but mandatory.” Also, see 35
Subsection 194.034(2), F.S. 36
37
* “A review of the Record of Decision and Notice of the Value Adjustment Board reveals 38
the total absence of findings of facts and the total absence of reasons for upholding 39
the property appraiser.” 40
41
* “Under the heading ‘conclusions of law,’ the value adjustment board merely states: 42
‘Petitioner did not overcome burden of proof.’” 43
44
* “Simply saying, as the board did in this case, that the taxpayer failed to carry his 45
burden of proof is little more than saying, ‘sorry, but you lose.’” 46
47
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Another Florida appellate court determined that a Board’s written decisions were 1
inadequate and did not meet the requirements of law. See Higgs v. Property Appraisal 2
Adjustment Board of Monroe County, 411 So.2d 307 (Fla. 3d DCA 1982). 3
4
This court stated the following regarding the Board’s decisions. 5
6
* “Eight of the decisions contain no reasons, findings or conclusions at all; twelve give 7
as a reason ‘condition of building’ or ‘condition of house’; three expand upon this by 8
stating ‘condition of building (or house) not computed properly’; two say ‘land use 9
restricted’; and the remainder variously state ‘income factors,’ ‘set back restrictions,’ 10
‘restricted use of land-Old Island District,’ ‘lot location and restricted use,’ and ‘due to 11
condition.’” 12
13
* This court then referred to the “woeful inadequacy of these statements.” 14
15
* This court also stated the following regarding the decisions of this Board. 16
17
* “The Board does not seriously contend, and indeed cannot, that the written decisions 18
comport with the law's requirements.” 19
20
Thus, Florida courts have expressed the importance of timely, written Board decisions 21
that include appropriate findings of fact, conclusions of law, and reasons for upholding 22
or overturning the determination of the property appraiser. 23
24
25
Sufficiency of Evidence 26
When applied to evidence, the term “sufficient” is a test of adequacy. See Rule 12D-27
9.027(6), F.A.C. 28
29
Sufficient evidence is admitted evidence that has enough overall weight, in terms of 30
relevance and credibility, to legally justify a particular conclusio n. See Rule 12D-9.027(6), 31
F.A.C. 32
33
A particular conclusion is justified when the overall weight of the admitted evidence 34
meets the standard of proof that applies to the issue under consideration. See Rule 12D-35
9.027(6), F.A.C. 36
37
The Board or special magistrate must consider the admitted evidence and determine 38
whether it is sufficiently relevant and credible to reach the “preponderance of the 39
evidence” standard of proof. See Rules 12D-9.025(1)(d), 12D-9.027(5), and 12D-9.027(6), 40
F.A.C. 41
42
43
Evaluation of the Relevance of Evidence 44
For administrative reviews, “relevant evidence” is evidence that is reasonably related, 45
directly or indirectly, to the statutory criteria that apply to the issue under review. See 46
Rule 12D-9.025(2)(b), F.A.C. 47
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1
* This description means the evidence meets or exceeds a minimum level of 2
relevance necessary to be admitted for consideration, but does not necessarily 3
mean that the evidence has sufficient relevance to legally justify a particular 4
conclusion. See Rule 12D-9.025(2)(b), F.A.C. 5
6
In evaluating the relevance of evidence, the Board or special magistrate must consider, 7
as of the January 1 assessment date, how well the evidence relates to the petitioned 8
property or property owner, as applicable, and to the statutory criteria that appl y. 9
10
Presented below is some information on relevant evidence from recognized sources. 11
12
“Relevant evidence is evidence tending to prove or disprove a material fact.” See Section 13
90.401, F.S. 14
15
“In order for evidence to be relevant, it must have a logica l tendency to prove or 16
disprove a fact which is of consequence to the outcome of the action. The definition of 17
relevant evidence in section 90.401 combines the traditional principles of ‘relevancy’ 18
and ‘materiality.’ The concept of ‘relevancy’ has historically referred to whether the 19
evidence has any logical tendency to prove or disprove a fact.” See Ehrhardt’s Florida 20
Evidence, 2008 Edition, pages 126-127. 21
22
“Included within the section 90.401 definition of relevancy is the concept of materiality; 23
the evidence must ‘tend to prove or disprove a material fact.’ When evidence is offered 24
to prove a fact which is not a matter in issue, it is said to be immaterial.” See Ehrhardt’s 25
Florida Evidence, 2008 Edition, page 129. 26
27
“In order to determine whether evidence has probative value, the fact for which it is 28
offered to prove must be identified. Evidence may be probative of one fact and not of 29
another.” See Ehrhardt’s Florida Evidence, 2008 Edition, pages 128-129. 30
31
“Whether the evidence has probative value is an issue for the discretion of the court.” 32
See Ehrhardt’s Florida Evidence, 2008 Edition, page 129. 33
34
35
Evaluation of the Credibility of Evidence 36
For administrative reviews, “credible evidence” is evidence that is worthy of belief 37
(believable). See Black’s Law Dictionary, Eighth Edition, page 596. 38
39
The definition above means the evidence meets or exceeds a minimum level of 40
credibility, but does not necessarily mean that the credible evidence has sufficient 41
weight to legally justify a particular decision. 42
43
Generally, the two types of evidence presented in a Board hearing are testimonial 44
evidence and documentary evidence. 45
46
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* Testimonial evidence (testimony) means statements lawfully made by persons at the 1
hearing. 2
3
* Documentary evidence means documentation lawfully presented by persons at the 4
hearing. 5
6
To evaluate the credibility of evidence, the Board or special magistrate may consider 7
factors such as the demeanor of the witnesses and the content, meaning, plausibility, 8
consistency, reasonableness, and validity of the evidence. 9
10
The following excerpt on determining the credibility of expert witnesses appears in the 11
Florida Standard Civil Jury Instructions, approved for publication by the Florida 12
Supreme Court. 13
14
* “You may accept such opinion testimony, reject it, or give it the weight you think it 15
deserves, considering the knowledge, skill, experience, training, or education of th e 16
witness, the reasons given by the witness for the opinion expressed, and all the 17
other evidence in the case.” 18
19
It is important that Boards and special magistrates consider the credibility of a unit of 20
evidence in light of all of the evidence. 21
22
A text on Florida evidence states the following on weighing testimonial evidence in a 23
civil case. 24
25
* “What counts is not the volume of the evidence but the quality —not how many 26
witnesses testify but the persuasiveness of the testimony.” See Ehrhardt’s Florida 27
Evidence, 2008 Edition, pages 98-99. 28
29
How can the Board or special magistrate evaluate the credibility of documentary 30
evidence (documents, photographs, etc.)? 31
32
Determining whether documentary evidence is authentic (genuine) is part of evaluating 33
the credibility of the evidence. Genuine means the evidence is what it is claimed to be. 34
35
Documentary evidence may be authenticated by evaluating its appearance, contents, 36
substance, internal patterns, or other distinctive characteristics, taken in conjunctio n 37
with the circumstances. See ITT Real Estate Equities, Inc. v. Chandler Insurance Agency, 38
Inc., 617 So.2d 750 (Fla. 4th DCA 1993). 39
40
Other considerations for evaluating documentary evidence may include: the relative 41
roles of the item’s creator and intended user; the effective date and intended use of the 42
item; and whether the item is signed. 43
44
45
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Requirements for Findings of Fact 1
Florida law requires that remand decisions, recommended decisions, and final decisions 2
include findings of fact. 3
4
“Every decision of the board must contain specific and detailed findings of fact…” See 5
Rule 12D-10.003(3), F.A.C. 6
7
Findings of fact must be produced and kept in writing. 8
9
As used in this training, the term “findings of fact” includes proposed findings of fact 10
produced by special magistrates in their recommended decisions. 11
12
Findings of fact are written statements on factual conclusions based only upon the 13
evidence or lack thereof. 14
15
For each of the statutory criteria for the issue under administrative review, the findings 16
of fact must identify the corresponding admitted evidence or lack thereof. See Rules 17
12D-9.030(1) and 12D-9.032(1)(a), F.A.C. 18
19
The Board legal counsel is responsible for providing the advice and assistance 20
necessary to assure that findings of fact are produced in accordance with law. 21
22
Findings of fact must be sufficiently detailed for third parties to understand the findings, 23
and to understand the evidence, or lack thereof, and reasoning on which the findings of 24
fact must be based. 25
26
Each finding of fact must be properly annotated to its supporting evidence or lack 27
thereof. See Rule 12D-10.003(3), F.A.C., referring to “basic and underlying finding.” Also, see 28
Rules 12D-9.030(1) and 12D-9.032(1)(a), F.A.C. 29
30
Findings of fact are those findings on which the conclusions of law rest and which are 31
supported by evidence or lack thereof. Findings of fact are more detailed than the 32
conclusions of law but less detailed than a summary of the evidence. See Rule 12D-33
10.003(3)(b), F.A.C., referring to “basic and underlying findings” and “ultimate findings.” 34
35
In arriving at the findings of fact, the Board or special magistrate must d etermine and 36
consider the relevance and credibility of the evidence or lack thereof. 37
38
Tips for Producing Written Findings of Fact 39
The written findings of fact should: 40
41
1. Be based upon the relevance and credibility of the evidence or lack thereof; 42
43
2. Be reasonably related to statutory attributes of the subject property or, when 44
applicable, to statutory attributes of the subject property owner; 45
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3. Be expressed in terms of the statutory criteria that apply to the issue under 1
administrative review; 2
3
4. Specifically identify the record evidence, or lack of record evidence, that relates to 4
each of the statutory criteria that apply to the issue under administrative review, and 5
specifically state how and why such evidence, or lack of evidence, relates to each of 6
these criteria; 7
8
5. Be stated clearly, and answer the questions of “who, what, when, where, how, and 9
why” regarding the evidence; 10
11
6. Provide clear support for the conclusions of law that are required in each of the steps 12
set forth in Rule 12D-9.027, F.A.C., which apply to the issue under administrative 13
review; 14
15
7. Provide reasons for upholding or overturning the property appraiser’s determination; 16
and 17
18
8. Otherwise meet all requirements of law. 19
20
21
Requirements for Conclusio ns of Law 22
Florida law requires that remand decisions, recommended decisions, and final decisions 23
include conclusions of law. 24
25
Conclusions of law must be produced and kept in writing. 26
27
As used in this training, the term “conclusions of law” includes proposed conclusions of 28
law produced by special magistrates in their recommended decisions. 29
30
A conclusion of law is a written statement specifying which part(s) of law apply to a 31
finding of fact and stating how the law applies to the finding of fa ct. 32
33
Conclusions of law must be based on findings of fact. See Rules 12D-9.030(1) and 12D-34
9.032(1)(a), F.A.C. 35
36
The Board attorney is responsible for providing the advice and assistance necessary to 37
assure that conclusions of law are developed in accordance with law. 38
39
Conclusions of law must be sufficiently detailed for third parties to understand the 40
conclusions of law, and to understand the evidence and facts on which the conclusions 41
must be based. 42
43
A conclusion of law is usually expressed in the language of a statutory standard and 44
must be supported by and flow rationally from the findings of fact. See Rule 12D-45
10.003(3)(a), F.A.C., referring to “ultimate finding” and “basic and underlying findings.” 46
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Tips for Producing Written Conclusions of La w 1
The written conclusions of law should: 2
3
1. Be based only upon the evidence, the findings of fact, and the provisions of law that 4
apply to the issue under administrative review; 5
6
2. Be stated in terms of the provisions of law that apply to the substanti ve content of the 7
administrative review (see Rule 12D-9.027, F.A.C.) and specifically state how and 8
why the record evidence satisfies or fails to satisfy the applicable statutory criteria; 9
10
3. When stating a standard of proof, state only the standard of “preponderance of the 11
evidence;” [See Section 194.301, F.S., as amended by Chapter 2009-121, Laws of Florida 12
(House Bill 521)]; 13
14
4. Specifically and separately address each of the steps set forth in Rule 12D -9.027, 15
F.A.C., which apply to the issue under administrative review; 16
17
5. Provide reasons for upholding or overturning the property appraiser’s determination; 18
and 19
20
6. Otherwise meet all requirements of law. 21
22
23
Specific Requirements for Findings of Fact and Conclusions of Law 24
Florida law contains specific requirements for findings of fact and conclusions of law 25
under certain conditions. 26
27
In each recommended decision and in each final decision, the conclusions of law must 28
be based on findings of fact. For each of the statutory criteria for the issue under 29
administrative review, the findings of fact must identify the corresponding admitted 30
evidence or lack thereof. See Rules 12D-9.030(1) and 12D-9.032(1)(a), F.A.C. 31
32
Rule 12D-9.021(8), F.A.C., provides that decisions issued under Rules 1 2D-9.021(6) or 33
(7), F.A.C., shall not be treated as withdrawn or settled petitions and shall contain: 34
35
1. A finding of fact that the petitioner did not appear at the hearing and did not state 36
good cause; and 37
38
2. A conclusion of law that the relief is denied and the decision is being issued in order 39
that any right the petitioner may have to bring an action in circuit court is not 40
impaired. 41
42
When producing a written remand decision under Rule 12D -9.029(6), F.A.C., the Board 43
or special magistrate shall produce written findings of fact and conclusions of law 44
necessary to determine that a remand is required. See Rule 12D-9.029(4), F.A.C. 45
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Rule 12D-9.029(9)(b), F.A.C., provides that when a petitioner does not notify the Board 1
clerk that the results of the property appraiser’s written remand review are unacceptable 2
to the petitioner and does not request a continuation hearing, or if the petitioner waives 3
a continuation hearing, the Board or special magistrate shall issue a decision or 4
recommended decision that shall contain: 5
6
1. A finding of fact that the petitioner did not request a continuation hearing or waived 7
such hearing; and 8
9
2. A conclusion of law that the decision is being issued in order that any right the 10
petitioner may have to bring an action in circuit court is not impaired. 11
12
Legal advice from the Board attorney relating to the facts of a petition or to the specific 13
outcome of a decision, if in writing, shall be included in the record and referenced within 14
the findings of fact and conclusions of law. See Rule 12D-9.030(6), F.A.C. 15
16
* If not in writing, legal advice from the Board attorney shall be documented within the 17
findings of fact and conclusions of law. See Rule 12D-9.030(6), F.A.C. 18
19
20
Reasons for Recommended Decisions and Final Decisions 21
All recommended decisions and all final decisions must contain written reasons for 22
upholding or overturning the property appraiser’s determination. See Rules 12D-9.030(1) 23
and 12D-9.032(1)(a), F.A.C. 24
25
Reasons are those clearly stated grounds upon which the Board acted. See Rule 12D-26
10.003(3)(c), F.A.C. 27
28
Reasons for upholding or overturning a particular determination of the property 29
appraiser must be based only upon the evidence, the findings of fact, and the 30
conclusions of law for that petition. 31
32
Reasons should be sufficiently detailed for the parties to understand the reasons, and to 33
understand the evidence, facts, and law on which the reasons must be based. 34
35
Reasons should be expressed in findings of fact and conclusions of law. 36