PROPERTY TAX OVERSIGHT DEPARTMENT OF REVENUE SEPTEMBER 19, 2012 PRESENTED BY CLAUDIA KEMP AND MISHA BROOKS CHAPTER 12D-13’s JOURNEY The Rulemaking Process CHAPTER 12D-13’s JOURNEY The Rulemaking Process

STATUTORY RULEMAKING PROCESS Prescribed by Chapter 120, F.S. Administrative Procedures Act (APA) Statutory requirements are: Substantive Procedural To ensure: Due Process

STATUTORY RULEMAKING PROCESS Substantive requirements Purpose Implement Law Develop procedures Limitations Statutory Authority (Rulemaking Authority) 4 corners of statute Content Language Fulfill purpose of rulemaking Stay within Limitations

STATUTORY RULEMAKING PROCESS Think of it as the: Who What When Where How Includes: Notice Requirements Timeframes Approval from Governor and Cabinet Filing deadlines with Department of State

STATUTORY RULEMAKING PROCESS Due Process Requirements 5 th and 14 th Amendments Due Process The right of every person to be free from being deprived of life, liberty or property without due process of law. Due Process Reflected in substantive and procedural requirements. Due Process Citizens must be informed, provided notice and have the opportunity to participate.

STATUTORY RULEMAKING PROCESS Joint Administrative Procedures Committee (JAPC) Branch of the legislature Reviews all rules and monitors adherence to Chapter 120, F.S. Advises if rulemaking exceeds statutory authority. Ensures notice and timing requirements are met.

STATUTORY RULEMAKING PROCESS Department of Revenue Cabinet agency (FDLE, HMSV, DOR, DVA) Must go to Governor and Cabinet for approval to take each step in rulemaking. Dependent on when the Governor and Cabinet meet.

STATUTORY RULEMAKING PROCESS Other agencies such as DBPR or DCF do not have to get approval. Their rulemaking process is significantly shorter. What may take us a year to do, these agencies can take care of in less than 3 months as long as they have followed the requirements of Chapter 120.

PROPERTY TAX OVERSIGHT RULEMAKING PROCESS The process starts when: New legislation passes Finding in court case requires change Issue is identified that requires an amendment, new rule, or form.

PROPERTY TAX OVERSIGHT RULEMAKING PROCESS Prompts development of an implementation plan. Identify rules and forms involved. Is new rule needed? Meet with subject matter experts. Drafters conduct legal and technical research.

PROPERTY TAX OVERSIGHT RULEMAKING PROCESS Create draft May be just a couple of amendments to a rule or form; Might be amendments to several rules; or Need to create new rules (forms).

PROPERTY TAX OVERSIGHT RULEMAKING PROCESS Internal review Make necessary revisions. Send to Office of General Counsel for legal review. Final decision: does rule meet legal requirements? Review by technical staff and subject matter experts. Make changes and conduct additional review.

PROPERTY TAX OVERSIGHT RULEMAKING PROCESS Public comment Consider comments and make appropriate revisions. Communication sent to affected officials and interested parties. Approved draft is posted for comment on website.

PROPERTY TAX OVERSIGHT RULEMAKING PROCESS Next step: Schedule rulemaking workshop or repeat review process to improve draft to go to workshop. ENTER CHAPTER 120 RULEMAKING PROCESS Flowchart (handout)

Florida Department of Revenue Property Tax Oversight Program Technical Assistance Unit Presented by: Presented by: Misha Brooks Misha Brooks Senior Attorney Senior Attorney Rewriting12D-13

An Overview of the Process REVIEW REPLACE RESTRUCTURE REVISE RESEARCH

REVIEWING Conducted an extensive review of , Chapter 197 (in its entirety), and 12D-13 rules to understand the current statutes and rules and the changes which would occur as result of the bill. Identified the time sensitive items which needed our immediate attention and implementation (e.g. Tax Deferral Forms). Reviewed Attorney General’s Opinions, Agency Bulletins, Advisement Letters and Case Law to get a more comprehensive look at the changes needed.

REPLACING Reviewed each change to Ch. 197 of the Florida Statutes (as a result of , L.O.F), and made the resulting change to 12D-13. Line by Line changes Changes to date, costs, procedures Examples of Line by Line changes: “Mailed” replaced with “sending” ;“Shall” replaced with “must; Removing “under the provisions of” Examples of Changes to dates, costs, and procedures: Tax deferral deadline, Amount of a Refund for Department Review

RESEARCHING Checked the rulemaking authority for each rule and whether all statutes in the “Law Implemented” section were correct. Consulted subject matter experts within the program for specific and more detailed information on various changes resulting from , L.O.F. Attended Tax Collector’s E-Billing Meeting to get a better understanding how to promulgate “electronic means” rules.

RESTRUCTURING Reorganized rules to coincide with the reorganization of statutes in Reorganized rules to separate major categories. Reorganized rules to enhance the ability to locate procedures and to more closely follow the sequence of events that occur.

REVISING Removed rule sections with procedures which are no longer accurate or relevant. Relocated sections where content would be covered more comprehensively in another rule section. Conducted a plain language review to remove legalese; confusing statements, phrases, and terms; and to edit rule sections that were difficult to understand.

EXAMPLES EXAMPLE OF ONE TYPE OF RESEARCH Rulemaking Specific Authority (1), (1) FS. Law Implemented , , , , , , , , , , , , FS. History–New , Formerly 12D-13.14, Amended , ,.

EXAMPLES EXAMPLES OF REVISIONS Reconstructing paragraphs Eliminating excess verbiage Using common terms Using active language Clearly stating who does what and how and when they do it. Updating terminology

EXAMPLES (a)Four percent in the month of November; (b) Three percent in the month of December; (c) Two percent in the month of January; (d) One percent in the month of February; and (e) Zero percent Taxes are payable without discount in March.

EXAMPLES (3) Any time after the tax collector delivers the original tax roll to the clerk, the clerk may destroy copies of the tax rolls that were previously delivered to his or her office. The clerk of the circuit court is authorized, at any time after the original of the tax roll has been delivered to him by the tax collector, to destroy the copies of the tax rolls previously delivered to his or her office. (See Rule 12D-8.017, F.A.C.) The original tax roll may not be destroyed by the clerk of the court or any other officer or person until such time as written permission has been obtained from the Florida Department of State Division of Archives, History and Records Management.

EXAMPLES The property owner by waiver may consent to the increase in assessed valuation and subsequently the taxes by stating that he or she does not want desire to present a petition to the value adjustment board and that he or she wants desires to pay the taxes on the current tax roll. If the property owner consents to the increases makes such a waiver the tax collector must shall proceed under Rule 12D , F.A.C.

EXAMPLES When the taxpayer decides not waives his or her right to petition the value adjustment board, the tax collector must shall prepare a corrected notice immediately and shall forward it the same to the property owner.

EXAMPLES When the new owner or the original owner requests wishes to pay taxes on his or her proportionate share of the whole property, it is the duty of the property appraiser to calculate figure the amount of the assessment on that portion of the whole. However, the request for a split or cutout must begin shall initiate with the tax collector. The owner may request an assessment on property to be split or cutout of a larger parcel at any time from November 1, or as soon thereafter as the tax collector receives the tax roll comes into the hands of the tax collector, and up until 15 days before the tax certificate sale, an assessment on property to be split or cutout of a larger parcel.

EXAMPLES It shall not be necessary for the property appraiser to furnish hard copies of the tax roll to any officer or taxing authority if copies of the tax roll are available on either microfilm or microfiche unless the officer or taxing authority does not have the necessary equipment or machinery to review microfilm or microfiche copies of the tax roll and to purchase such items would cause an unnecessary hardship on the officer or taxing authority. In such case, the property appraiser shall print a hard copy of the tax roll at the request of the officer or taxing authority. If the property appraiser intends to print the tax roll on microfilm or microfiche and no hard copies will be printed, then he or she shall notify the officer or taxing authority. For purposes of this rule, microfilm and microfiche includes storage in digital electronic format. The clerk must of the court shall accept the whatever copy of the tax roll that is certified by the property appraiser certifies to the tax collector.

EXAMPLES (c) If there is no other millage figure available, the The millage used in the calculation for the previous past immediate tax year must shall be used to compute the prorated taxes if there is no other millage figure available.

EXAMPLES All property owners are responsible for knowing held to know that taxes are due and payable annually. It is the property owner’s responsibility to know the They are charged with the duty of ascertaining amount of current and delinquent taxes due.

CHAPTER 12D-13’s JOURNEY Where Are We Now? Technical Staff and Subject Matter Experts are working as a group to complete review. What are we doing? Making changes as we go through the draft. What’s Next? The draft will go through a proofing and editing review and then forwarded to Office of General Counsel for legal review.

CHAPTER 12D-13’s JOURNEY Going Forward! Make appropriate revisions based on legal review.Make appropriate revisions based on legal review. Ask for approval to go forward in rulemaking.Ask for approval to go forward in rulemaking. Post Draft for Public Comment.Post Draft for Public Comment. Schedule Rule Workshop.Schedule Rule Workshop. And, the Journey Continues…