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Florida real estate tax laws may seem even more
perplexing than usual. That’s because the rules of the game keep
changing.
Tax Cap Application Eliminated
As reported in previous issues of
the Poer Report, the Florida Legislature approved a 10% tax cap
for non-residential property scheduled to go into effect in
2009. (See
Florida Statutes 193.1555)
Under the 2007 law, companies were
required to apply to the property appraiser annually starting in
March 2009 in order to receive the tax cap. However, in 2008,
the legislature voted to do away with the applications. So
business property owners will not have to file for their 10% tax
cap after all.
New Reporting Requirements
The 2008 legislation that removed
the tax cap application process also instituted new reporting
requirements for business properties that change hands.
Senate Bill 1588 states that any person or entity that owns
non-residential property must notify the property appraiser
promptly of any change of ownership or control. Failure to
report can result in back taxes for up to 10 years plus 15%
interest per annum and a penalty of 50% of the unpaid taxes. In
addition, a tax lien can be placed on the property. If the owner
no longer owns property in that county, the lien can be
transferred to property in any other county in the state.
The wording of the statute mirrors
legislation that prevents residential owners from illegally
receiving homestead exemptions. “However, the reporting
requirements for business properties have no known legislature
purpose,” according to Benjamin K. Phipps, Lobbyist for the
Florida Association of Property Tax Professionals.
A Contradiction?
Critics claim that in the Florida
Legislature, the right hand may not know what the left hand is
doing.
This new reporting requirement in SB 1588 seems to contradict
other 2008 legislation that made sales prices confidential.
HB 7019 did away with the Department of Revenue’s Form
DR-219, which required the sales price be disclosed when a
property deed was transferred.
It will be up to the Florida
Department of Revenue to figure out how to implement SB 1588
including whether the new owner or the old owner is responsible
for reporting a change of ownership, what forms will be required
and all the other specifics. Officials admit it will take months
and possibly even years before all the details are ironed out.
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