In Florida, Property Appraisers who are planning to deny a taxpayer’s application for homestead exemption must notify the taxpayer of their decision on or before July 1st. Thus, many people will soon be receiving an unpleasant surprise in the mail. This post will address common reasons for being denied a homestead exemption and the procedures for appealing the denial of a homestead exemption.
Why was my homestead exemption application denied?
The single most common reason for a homestead exemption application to be denied is that it was not filed by the statutory deadline. Pursuant to Fla. Stat. 196.011, an application for a homestead exemption must be filed by March 1st of the tax year for which the exemption is sought. Failure to file an application by March 1st constitutes a waiver of the exemption privilege for that year. If an application is filed after March 1st and the petitioner demonstrates extenuating circumstances for the tardy application, the Property Appraiser may go ahead and grant the exemption. However, if the Property Appraiser denies the exemption, the taxpayer would need to file an appeal to the Value Adjustment Board, as further discussed in my blog post on How to File a Late Homestead Exemption Application.
If the application was timely filed, then the exemption was most likely denied because the Property Appraiser determined that the taxpayer did not meet the requirements for a homestead exemption. For example, the taxpayer may not have had the requisite interest in the property, or the Property Appraiser’s investigation may have indicated that the property was not the applicant’s permanent residence as of January 1st. For more information on the substantive legal requirements for a homestead exemption, see my blog post on Qualifying for a Florida Homestead Exemption.
Notice of Denial
If a Property Appraiser intends to deny a taxpayer’s application for homestead exemption, the notice must be sent out no later than July 1st, and it must be either hand-delivered or sent by registered mail to the post office address given by the applicant. See Fla. Stat. 196.151. Beginning in 2009, a new statute, Fla. Stat. 196.193(5)(b), requires notices of denial of exemptions to specifically state the legal and factual basis for the Property Appraiser’s decision, and to be drafted so that a reasonable person could understand the specific facts about the applicant or their use of the property which caused the denial. A notice that fails to meet those requirements is void. However, some counties contend that this statute does not apply to homestead exemptions, and that issue has not yet been resolved by the courts.
Appealing to the Value Adjustment Board
The most common way to appeal the denial of a homestead exemption is by filing a petition to the county Value Adjustment Board. The petitions, which can be found by clicking here, must be filed with the Clerk of the Value Adjustment Board (in the Clerk of Court’s office) no later than 30 days after the Property Appraiser mailed the notice of denial. See Fla. Stat. 194.011(3)(d). In small counties, the petition will be heard before the full Value Adjustment Board, which consists of two members of the county commission, one school board member and two citizen members. In larger counties, the petition will be heard before an attorney Special Magistrate, whose recommendation will be either approved or rejected by the full VAB. Taxpayers who do not prevail before the VAB may take a further appeal to the circuit court, but that appeal must be filed within 15 days of the VAB decision.
Appealing Directly to the Circuit Court
Taxpayers also have the option of taking their dispute directly to circuit court, without going before the VAB. A circuit court action to challenge the denial of a homestead exemption must be filed within 60 days of the certification of the tax roll by the Property Appraiser. Also, in order to file a circuit court action, the taxpayer must pay the taxes in full, or at least pay the amount they admit, in good faith, to be owing. Failure to pay the property taxes for the year in dispute and any subsequent years will likely result in the case being dismissed for lack of jurisdiction pursuant to Fla. Stat. 194.171.
Liens for Back Taxes
Taking this issue a step further, if a property owner had already been receiving a homestead exemption, but the Property Appraiser determines that they should not have been receiving the exemption, the taxpayer will be required by Fla. Stat. 196.161 to pay back taxes, plus a 50% penalty and 15% interest. If the taxpayer fails to pay the back taxes within 30 days of receiving such a notice from the Property Appraiser, the Property Appraiser can record a tax lien on all of the taxpayer’s property in the state. Thus, retroactive removal of a homestead exemption can be very costly. Also, as the courts have not yet resolved the question of whether taxpayers can bring back tax and tax lien issues before the VAB or whether they must file an action in circuit court, any taxpayer in this situation should consult an attorney as to how to proceed and whether it would be beneficial to file an action in circuit court.