Property Appraiser Requires Notification re Change of Ownership
Wednesday, August 13, 2008
Real Property, Probate & Trust Law Section Practice Update
Section 193.1556 of the Florida Statutes, became law in 2007 and was amended in the most recent legislative session by the passage of CS/SB1588. This statute provides that a property owner must notify the property appraiser of any change of ownership or control of real property that is assessed for ad valorem property taxes. What is particularly noteworthy about the new law is that even when legal title to real property is not transferred, the property appraiser must be notified of a transfer of beneficial ownership or when there is a transfer of ownership of the legal entity in title.
Notification to the property appraiser of a transfer in ownership is important because pursuant to Section 193.1554 and 193.1555, Florida Statutes, the property appraiser may reassess the value of the property on January 1 of each year and a transfer of ownership may affect the value at which the property is assessed. Failure to notify the property appraiser may result in penalties and interest assessed against the owner or a lien on the property of any property owner that fails to pay the proper tax assessment as a result of such failure.
As currently written, Section 193.1556 provides in part as follows:
Any person or entity that owns property assessed under s.193.1554 or s. 193.1555 must notify the property appraiser promptly of any change of ownership or control as defined in ss.193.1554(5) and 193.1555(5). If any property owner fails to so notify the property appraiser and the property appraiser determines that for any year within the prior 10 years the owner's property was not entitled to assessment under s.193.1554 or s. 193.1555, the owner of the property is subject to the taxes avoided as a result of such failure plus 15 percent interest per annum and a penalty of 50 percent of the taxes avoided.
The statutes referred to, Section 193.1554(5) and 193.1555(5), Florida Statutes, define the change of ownership or control as "any sale, foreclosure, transfer of legal or beneficial title in equity to any person, or the cumulative transfer of control or of more than 50 percent of the legal entity that owned the property when it was most recently assessed at just value".
The statute does not state who is responsible for reporting the transfer to the property appraiser but the ultimate responsibility would seem to be with the entity retaining title because it is their property that would be subject to the lien. As of June 1, 2008, the DR-219 form which had been used when recording deeds is no longer required pursuant to 2008-24, Laws of Florida, which repealed Sec. 201.022, Florida Statutes. Attached are drafts of the Change of Ownership forms which have been posted on the Department of Revenue website The Department of Revenue is seeking comment on these draft forms. Send your comments to SB4D@dor.state.fl.us.
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