Item S17
CM
ounty of onroe
BOARD OF COUNTY COMMISSIONERS
Mayor Heather Carruthers, District 3
Mayor Pro Tem George Neugent, District 2
TheFloridaKeys
Danny L. Kolhage, District 1
David Rice, District 4
Sylvia J. Murphy, District 5
County Commission Meeting
July 20, 2016
Agenda Item Number: S.1
Agenda Item Summary #1501
BULK ITEM: DEPARTMENT:
No County Attorney's Office
TIME APPROXIMATE:STAFF CONTACT:
Cynthia Hall (305) 292-3470
3:00 P.M. PUBLIC HEARING
AGENDA ITEM WORDING:
A public hearing to consider an ordinance creating Sections 23-43
through 23-47 of the Monroe County Code, to provide a reduction in assessed value for construction
or reconstruction of homesteaded property completed after January 7, 2003 for the purpose of
providing living quarters for parents or grandparents of property owners, pursuant to F.S 193.703
ITEM BACKGROUND:
In 2002, Florida voters overwhelmingly approved an amendment to the
Florida Constitution providing for a reduction in assessed value for ad valorem taxation for the
portion of assessed value of homestead property attributable to construction or reconstruction of the
portion of the property being used as living quarters by parents or grandparents of the property
legislature passed F.S. 193.703. The statute allows the local governing body to adopt an ordinance
providing for a reduction in the assessed value of homestead property equal to any increase in
assessed value of the property resulting from the construction or reconstruction of the property for
the purpose of providing living quarters for one or more parents or grandparents for whom the living
quarters are providing for who are at least 62 years of age, who reside on the property and do not
claim a homestead exemption in any other county or state.
The estimated fiscal impact is unknown. Twenty-nine counties have reported reductions based on a
sults in those counties, the likely impact will be in
the range of $35K to $150K per year in reduced property value revenue although it is possible that
the reduction in revenue could approach $500K
PREVIOUS RELEVANT BOCC ACTION:
2/10/16 (Item O-2) BOCC approved advertising and scheduling a public hearing at 3:00 p.m. on the
April 20, 2016 BOCC meeting to consider adoption of this ordinance. Public notice has published
pursuant to F.S. 125.66(2)(a) - copy attached.
4/20/16 (Item P-4) BOCC continued the Public Hearing to 3:00 p.m. on June 15, 2016 in Key Largo,
FL. Public notice was provided by public announcement of the continuance at the BOCC 4/20/16
meeting.
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6/15/16 (PH Item R-1) BOCC continued the Public Hearing to 3:00 p.m. on July 20, 2016 in
Marathon, FL. Public notice was provided by public announcement of the continuance at the BOCC
6/15/16 meeting.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION:
Approval
DOCUMENTATION:
Granny flats ordinance 6.16.2016
Memo. Granny Flats Ordinance-signed
Additional Backup Re Granny Flats Ordinance
O-2 BOCC 2/10/16 Agenda Item Summary
Notice of Intention to Consider Adoption of County Ordinance - Granny Flats BOCC 4 20 15
F S 193 703 Granny Flats assessment reduction
FINANCIAL IMPACT:
Effective Date: Upon adoption.
Expiration Date: No expiration date.
Total Dollar Value of Contract:
Total Cost to County: Reduced property value revenue estimated between $35K to $150K
per year.
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match
:
Insurance Required:
Additional Details:
Estimated fiscal impact is unknown. Based on results in 29 other counties reporting, the likely
impact will be in the range of $35K to $150K per year in reduced property value revenue
although it is possible that the reduction in revenue could approach $500K.
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REVIEWED BY:
Bob Shillinger Completed 03/28/2016 6:24 PM
Cynthia Hall Completed 03/28/2016 6:34 PM
Kathy Peters Completed 03/28/2016 6:37 PM
Board of County Commissioners Completed 04/20/2016 9:00 AM
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ORDINANCE NO. ____–2016
AN ORDINANCE RELATING TO AD VALOREM TAXATION,
CREATING SECTIONS23-43THROUGH 23-47OF THE MONROE
COUNTY CODE,PROVIDING FOR AREDUCTION IN ASSESSED
VALUE OF HOMESTEAD PROPERTY RESULTING FROM
CONSTRUCTION OR RECONSTRUCTION OF LIVING QUARTERS
FOR PARENTS OR GRANDPARENTS OF THE PROPERTY OWNER
OR OWNER’S SPOUSE IF AT LEAST ONE OF THE PARENTS OR
GRANDPARENTS FOR WHOM THE LIVING QUARTERS ARE
PROVIDED IS AT LEAST 62 YEARS OF AGE;REQUIRING DELIVERY
OF THE ORDINANCETO PROPERTY APPRAISERAND TAX
COLLECTOR;PROVIDING FOR SEVERABILITY; PROVIDING FOR
THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING
FOR INCORPORATION INTO THE MONROE COUNTY CODE OF
ORDINANCES;AND PROVIDING AN EFFECTIVE DATE.
WHEREAS,on November 5, 2002, voters statewide overwhelmingly approved an
amendment to the Florida Constitution providing for a reduction in assessed value for ad valorem
taxation for qualifying portions of homestead property used as living quarters by parents or
grandparents; and
WHEREAS
, this amendment, subsequently incorporated in Art. VII, §4(e) of the
Florida Constitution,was approved to encourage Florida families to care for their elderly at
home rather than relying on institutions where care is often subsidized by state and federal tax
dollars; and
WHEREAS
, the 2002 Legislature adopted HB313 creating Section 193.703 of the
Florida Statutes providing applicable requirements and procedures for implementation of this
Constitutional Amendment as a county option; and
WHEREAS,
the Board of County Commissioners may adopt an ordinance to provide
for a reduction in the assessed value of homesteadedproperty equal to any increase in assessed
value of the property which results from the construction of reconstructionof the property for the
purpose of providing living quarters for one or more parents or grandparents for whom the living
quarters are providing for and they must be at least 62 years of age; and
WHEREAS,
the Board of County Commissioners finds that enactment of an ordinance
providing a tax reduction will encourage Monroe County property owners to care for their
parents and grandparents at home.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA, AS FOLLOWS
:
SECTION 1.
Article II, Division 3 of the Monroe County Code(sections 23-43 through 23-
48), entitled “Reduction in Assessed Value of Homestead Property for Providing Living Quarters
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for Parents or Grandparents”of the Monroe County Code, is hereby created to read as follows:
Sec.23-43. Definitions
The following words, terms and phrases, when used in this division, shall have the
meanings ascribe to them in this section, except where the context clearly indicates a different
meaning:
'SRWXVYGXMSR means all types of construction governed by the County's building code.
4VMQEV]TPEGISJVIWMHIRGI shall have the samemeaning as “permanent residence”as
defined in F.S. §196.011 and “permanent residency” as used F.S. § 196.031. The property
appraiser may rely on the factors listed in F.S. § 196.015 in determining whether the property is
the primary place of residence.
4VSTIVX]ETTVEMWIV means the County Property Appraiser.
6IGSRWXVYGXMSR means all types of reconstruction governed by the County's building code.
Section 23-44.Reduction in Assessed Value of Homestead Property.
There is hereby granted to the owner of homesteadedproperty a reduction in assessed
value of that property equal to any increases in assessed value of the property resulting from the
construction or reconstruction of the property for the purpose of providing living quarters for one
or more natural or adoptive parents or grandparents of the owner of the property,or of the
owner’s spouse,if at least one of the parents or grandparents for whom the living quarters are
provided resides therein and is at least 62 years of age.The reduction shall be administered as
provided in F.S. §193.703and F.A.C. Chapter 12D-8.0068, as amended from time to time.
Section 23-45. Application.
Every property owner claiming the additional reduction in assessed value must annually
file an application with the MonroeCounty Property Appraiser. The applicant is required to
complete forms required by the Monroe County Property Appraiser, including an affidavit
regarding the age of the qualifying parent or grandparent and whether the living quarter are being
used as the qualifying parent or grandparent’s primary place of residence for the year in which
the reduction is sought. The application must be filed on or before March 1 of each year for
which the reduction in assessment is claimed.
Section 23-46. Application for Assessment Reduction; Requirements.
The assessment reduction provided herein shall only apply if all of the following
requirements have been met:
(a)The property owner(s) must have an existing homestead exemption on the property
where the parent/grandparent quarters are constructed;
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(b)A completed application has been timely filed with the property appraiser;and
(c)All required supporting information has been filed with the property appraiser;and
(d)The construction or reconstruction was substantially complete after January 7, 2003
and prior to January 1 in the year in which the reduction is requested; and
(e)At least one qualifying parent or grandparent maintains his or her primary place of
residence in the constructed or reconstructed living quarters on or before January 1 ofthe
year in which the reduction is claimedand did not claim a homestead exemption elsewhere
in Florida nor a residency-based tax exemption or tax benefit in another state;and
(f)The construction or reconstruction must be properly permitted and must comply with
local land development regulations and the Florida Building Code, as complemented and
supplemented by the Monroe County Code. Copies of permits and certificate of occupancy
must be submitted to the Property Appraiser’s Office; and
(g)The assessment reduction shall be applied to the assessed value of the homestead
property as calculated pursuant to §193.703, F.S.
Section 23-47. Amount of Reduction.
The amount of assessment reduction for the property shall not exceed the lesser of the
following:
(a)The increase in assessed value resulting from construction or reconstruction of the
propertyto construct or reconstruct the living quarters; or
(b)Twenty per cent (20%) of the total assessed value of the property as improved.
Section 23-48. Enforcement and penalties.
Enforcement and penalties for violation of this ordinance shall be as set forth in Section
193.703, Florida Statutes, as amended from time to time.
SECTION 2.DELIVERY TO THE PROPERTY APPRAISERAND TAX COLLECTOR.
TheBoard of County Commissioners, by and through the Clerk, must deliver a copy of this
ordinance to the Property Appraiser and Tax Collector no later than December 1 of theyear prior
to the year in which the reduction in assessment will take effect.
SECTION 3. SEVERABILITY.
Should any provision of this Ordinance be declared by a
court of competent jurisdiction to be invalid, the same shall not affect the validity of this
Ordinance as whole, or any part thereof, other than the part declared to be invalid. If this
ordinance or any provision thereof shall be held to be inapplicable to any person, property or
circumstances, such holding shall not affect its applicability to any other person, property or
circumstances.
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SECTION 4. CONFLICT WITH OTHER ORDINANCES.
All ordinances or parts of
ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict.
SECTION 5. INCLUSION IN THE CODE OF ORDINANCES.
The provisions of this
Ordinance shall be included and incorporated in the Code of Ordinances of the County of
Monroe, Florida, as an addition or amendment thereto, and shall be appropriately renumbered as
needed to conform to the uniform numbering system of the code.
SECTION 6. EFFECTIVE DATE.
This Ordinance shall take effect upon filing with the
Department of State as provided in Section 125.66(2), Florida Statutes.
PASSED AND ADOPTED
by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting of said Board held on the ___ day of ______, 2016.
Mayor Heather Carruthers_____
Mayor Pro Tem George Neugent_____
CommissionerDanny L. Kolhage_____
CommissionerDavid Rice_____
CommissionerSylvia Murphy_____
SEAL)BOARD OF COUNTY COMMISSIONERS
(
Attest: AMY HEAVILIN, ClerkOF MONROE COUNTY, FLORIDA
By__________________________By______________________________
ClerkMayor/Chairperson
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MEMORANDUM
Office of the Monroe County Attorney
TO:Mayor and County Commissioners
County Administrator Roman Gastesi
THROUGH:Bob Shillinger, County Attorney
CC:Hon. Scott Russell, Monroe County Property Appraiser
Ms. Lynn Garcia, Monroe County Property Appraiser’s Office
',
FROM: Cynthia L. Hall, Assistant County Attorney
DATE: June 15, 2016
SUBJECT: Granny Flats Ordinance
A.Background
In 2002, Florida voters overwhelmingly approved an amendment to the Florida
Constitution providing for a reduction in assessed value for ad valorem taxation for the portion
of assessed value of homestead property attributable to construction or reconstruction of the
portion of the property being used as living quarters by parents or grandparents of the property
owner or owner’s spouse (a/k/a the “Granny Flats” Amendment). As a result, in 2003, the
Florida legislature passed F.S. 193.703. The statute allows the local governing body to adopt an
ordinance providing for a reduction in the assessed value of homestead property equal to any
increase in assessed value of the property resulting from the construction or reconstruction of the
property for the purpose of providing living quarters for one or more parents or grandparents for
whom the living quarters are providing for who are at least 62 years of age, who reside on the
property and do not claim a homestead exemption in any other county or state.
The County Attorney’s office received a request from the Property Appraiser’s office,
asking that the County Attorney’soffice draft a local ordinance.
B.Key Features of the Ordinance
Taxpayers of homesteaded property who build additions onto an existing home or
perform extensive renovations to provide living quarters for a parent or
grandparent may be entitled to a reduction in the assessed value of the
homesteaded property, equal to the increase in assessed value as a result of the
constructionor twenty percent (20%) of the value of the property, whichever is
less.
To be eligible, the property owner must have an existing homestead exemption on
the property where the parent or grandparent quarters are constructed.
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The property owner must fill out and submit to the Property Owner each yearin
st
which the reduction is claimed (prior to March 31), an affidavit under penaltyof
perjuryon a form to be developed by the Property Appraiser, stating the
following:
The construction or reconstruction was properly permitted and complies
o
with all local land development regulationsand the Florida Building Code.
(Copies of all permitsand certificate of occupancymust be submitted to
the Property Appraisers Office with the application for the exemption.)
The construction was substantially complete after January 1, 2003 and
o
prior to January 1st of the year in which the reduction is requested.
The occupants of the quarters include a parent or grandparent, who claims
o
the residence (for all purposes) as his or her primary place of residence.
The occupants will permanently reside on the property on or before
January 1st of the year in which application is made.
The occupants are at least 62 years of age by January 1st of the year in
o
which the reduction is requested.
The property owner “shall”(mandatory) notify the property appraiserwhen the
property owner no longer qualifies for the reduction,and the previously excluded
just value “shall be” added back to the assessed value of the property.
Penalties:
Section 197.703(7), Fla. Stat.:If the Property Appraiser determines that
o
any time withinthe past ten (10) years a property owner received a
reduction but was not entitled to the reduction, the Property Owner shall
serve on the property owner a notice of intent to record in the public
records of a county a tax lien against any property owned by that person in
that county.
Any property owned by that person and situated in the State of Florida is
o
subject to the taxes exempted by the improper reduction, plus a penalty of
fifty percent (50%) of the unpaid taxes for each year and interest at fifteen
percent (15%) per annum.
Before the lien can be filed, the owner must be given 30 days within
o
which to pay the taxes, penalties and interest.
C.Estimated Fiscal Impact
The estimated fiscal impact is unknown. Twenty-nine counties have reported reductions
based on a local “Granny Flats” ordinance. Based on the results in those counties, the likely
impact will be in the range of $35K to $150K per year inreduced property value revenue
although it is possible that the reduction in revenue could approach $500K. It is likely that the
majority of impact will be felt in Key West.
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NOTICE OF INTENTION TO CONSIDER
ADOPTION OF COUNTY ORDINANCE
NOTICE IS HEREBY GIVEN TO WHOM IT MAY CONCERNApril 20, 2016at 3:00
that on
P.M., or as soon thereafter as may be heard, in the Commission Chambers located in the
Marathon GovernmentCenter, 2798 Overseas Highway, Mile Marker 50, Marathon,Monroe
County, Florida
, the Board of County Commissioners of Monroe County, Florida, intends to consider
the adoption of the following County ordinance:
AN ORDINANCE RELATING TO AD VALOREM TAXATION,
CREATING SECTIONS 23-43 THROUGH 23-47 OF THE MONROE
COUNTY CODE, PROVIDING FOR AN ADDITIONAL REDUCTION IN
ASSESSED VALUE OF HOMESTEAD PROPERTY RESULTING FROM
CONSTRUCTION OR RECONSTRUCTION OF LIVING QUARTERS
FORPARENTS OR GRANDPARENTS OF THE PROPERTY OWNER
OR OWNER’S SPOUSE IF AT LEAST ONE OF THE PARENTS OR
GRANDPARENTS FOR WHOM THE LIVING QUARTERS ARE
PROVIDED IS AT LEAST 62 YEARS OF AGE; REQUIRING DELIVERY
OF THE ORDINANCE TO PROPERTY APPRAISER AND TAX
COLLECTOR; PROVIDING FOR SEVERABILITY; PROVIDING FOR
THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING
FOR INCORPORATION INTO THE MONROE COUNTY CODE OF
ORDINANCES; AND PROVIDING AN EFFECTIVE DATE.
Pursuant to Section 286.0105, Florida Statutes, notice is giventhat if a person decidesto appeal any
decision made by the Board with respect to any matter considered at such hearings or meetings, he will
need a record of the proceedings, and that, for such purpose, he may need to ensure that a verbatim
record of theproceedings is made, which record includes the testimony and evidence upon which the
appeal is to be based.
ADA ASSISTANCE: If you are a person with a disability who needs special accommodations in order to
participate in this proceeding, please contact the County Administrator's Office, by phoning (305) 292-4441,
between the hours of 8:30 a.m. -5:00 p.m., no later than five (5) calendar days prior to the scheduled
meeting; if you are hearing or voice impaired, call “711”.
th
Dated at Key West, Florida, this 10day of February,2016.
AMY HEAVILIN, Clerk of the Circuit Court
(SEAL)and ex officio Clerk of the Board of County
Commissioners of Monroe County, Florida
Publication dates:
KW Citizen(Su)3/13/16
Keynoter(Sa)3/12/16
Reporter(Fr) 3/11/16
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193.703Reduction in assessment for living quarters of parents or
grandparents.—
(1)In accordance with s. 4(f), Art. VII of the State Constitution, a county may provide for
a reduction in the assessed value of homestead property which results from the construction
or reconstruction of the property for the purpose of providing living quartersfor one or more
natural or adoptive parents or grandparents of the owner of the property or of the owner’s
spouse if at least one of the parents or grandparents for whom the living quarters are
provided is at least 62 years of age.
(2)A reduction may be granted under subsection (1) only to the owner of homestead
property where the construction or reconstruction is consistent with local land development
regulations.
(3)A reduction in assessment which is granted under this section applies only to
construction or reconstruction that occurred after the effective date of this section to an
existing homestead and applies only during taxable years during which at least one such
parent or grandparent maintains his or her primary place of residence in such living
quarters within the homestead property of the owner.
(4)Such a reduction in assessment may be granted only upon an application filed annually
with the county property appraiser. The application must be made before March 1 of the
year for which the reduction is to be granted. If the property appraiser is satisfied that the
property is entitled to a reduction in assessment under this section, the property appraiser
shall approve the application, and the value of such residential improvements shall be
excluded from the value of the property for purposes of ad valorem taxation. The value
excluded may not exceed the lesser of the following:
(a)The increase in assessed value resulting from construction or reconstruction of
the property; or
(b)Twenty percent of the total assessed value of the property as improved.
(5)At the request of the property appraiser and by a majority vote of the county
governing body, a county may waive the annual application requirement after the initial
application is filed and the reduction is granted. Notwithstanding such waiver, an application
is required if property granted a reduction is sold or otherwise disposed of, the ownership
changes in any manner, the applicant for the reduction ceases to use the property as his or
her homestead, or the status of the owner changes so as to change the use of the property
qualifying for the reduction pursuant to this section.
(6)The property owner shall notify the property appraiser when the property owner no
longer qualifies for the reductionin assessed value for living quarters of parents or
grandparents, and the previously excluded just value of such improvements as of the first
January 1 after the improvements were substantially completed shall be added back to the
assessed value of the property.
(7)If the property appraiser determines that for any year within the previous 10 years a
property owner who was not entitled to a reduction in assessed value under this section was
granted such reduction, the property appraiser shall serve on the owner a notice of intent to
record in the public records of the county a notice of tax lien against any property owned by
that person in the county, and that property must be identified in the notice of tax lien. Any
property that is owned by that person and is situated in this state is subject to the taxes
exempted by the improper reduction, plus a penalty of 50 percent of the unpaid taxes for
each year and interest at a rate of 15 percent per annum. However, if a reduction is
improperly granted due to a clerical mistake or omission by the property appraiser, the
person who improperly received the reduction may not be assessed a penalty or interest.
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Before such lien may be filed, the owner must be given 30 days within which to pay the
(3).
taxes, penalties, and interest. Such lien is subject to s. 196.161
History.—s. 1, ch. 2002-226; s. 24, ch. 2010-5; s. 7, ch. 2013-72.
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