By Phillip B. Rarick, Esq., Miami Trust Attorney
Summary:
The following Alert discusses the Florida real estate form DR-430 required to be filed upon the cumulative transfer or control of more than 50% of the legal entity that owned the property, or transfer of more than 50% of ownership interest.
Notice of Change of Ownership of Control of Florida Non-Homestead Property
On January 28, 2009 voters approved an amendment to the Florida Constitution which would impose a 10% cap on the yearly increase in the amount that non-homestead Florida real estate may be assessed. The 10% cap became effective January 1, 2009 and the 2008 value assessments on a property are the base value for that property.
Form DR-430
In order to keep track of ownership and assess the appropriate tax to a property the Florida Department of Revenue in conjunction with the property appraiser’s offices for every county in the State of Florida created Florida Department of Revenue Form DR-430. This form tracks the change of ownership of any non-homestead property.
A change of ownership or control in non-homestead property according to Fla. Stat. § 193.1554 & 193.1555 equates to a cumulative change of more than 50%. This includes any sale, foreclosure, transfer of legal or beneficial title in equity to a person or the cumulative transfer of control of more than 50 % of the legal entity that owned the property when the most recent assessment was done. The one exclusion from the need to report a change in ownership of property owned by an entity is if the transfer of interest to an entity is to the spouse of the previous owner.
Penalty for Non-Compliance
If the property owner does not notify the property appraiser of the change the owner will be subject to pay the taxes avoided as well as a 15% interest per annum on all the unpaid taxes and a 50% penalty of the taxes avoided. These sums can be collected for any taxes avoided up to ten years preceding a determination of failure to pay appropriate taxes.
Where to File
The DR-430 should be filed with the property appraiser’s office for the county in which the real estate is located.
Special Note
The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami trust attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.