RSA 12D-8.0065 - Transfer of Homestead Assessment Difference; "Portability"; Sworn Statement Required; Denials; Late Applications
(1) For purposes of this rule, the following
definitions apply.
(a) The "previous property
appraiser" means the property appraiser in the county where the taxpayer's
previous homestead property was located.
(b) The "new property appraiser" means the
property appraiser in the county where the taxpayer's new homestead is
located.
(c) The "previous
homestead" means the homestead which the assessment difference is being
transferred from.
(d) The "new
homestead" means the homestead which the assessment difference is being
transferred to.
(e) "Assessment
difference" means the difference between assessed value and just value
attributable to Section 193.155, F.S.
(2) Section 193.155(8), F.S., provides the
procedures for the transfer of the homestead assessment difference to a new
homestead, within stated limits, when a previous homestead is abandoned. The
amount of the assessment difference is transferred as a reduction to the just
value of the interest owned by persons that qualify and receive homestead
exemption on a new homestead.
(a) This rule
sets limits and requirements consistent with Section
RSA
193.155(8) , F.S.
A person may apply for the transfer of an assessment difference from a previous
homestead property to a new homestead property if:
1. The person received a homestead exemption
on the previous property on January 1 of one of the last three years before
establishing the new homestead; and,
2. The previous property was abandoned as a
homestead after that January 1; and,
3. The previous property was, or will be,
reassessed at just value or assessed under Section
RSA
193.155(8) ,
F.S., as of January 1 of the year after the year in which the abandonment
occurred subject to Subsections
RSA
193.155(8) and
RSA
193.155(3) , F.S;
and,
4. The person establishes a
new homestead on the property by January 1 of the year they are applying for
the transfer.
(b) Under
Section
RSA
193.155(8) ,
F.S., the transfer is only available from a prior homestead for which a person
previously received a homestead exemption. For these rules:
1. If spouses owned and both permanently
resided on a previous homestead, each is considered to have received the
homestead exemption, even if only one of them applied for the homestead
exemption on the previous homestead.
2. For joint tenants with rights of
survivorship and for tenants in common, those who qualified for and received
the exemption on a previous homestead are considered to have received the
exemption.
(3)
(a) To apply for portability, the person must
file Form DR-501T, Transfer of Homestead Assessment Difference, (incorporated
by reference in Rule
RSA
12D-16.002, F.A.C.,
https://www.flrules.org/Gateway/reference.asp?No=Ref-05793),
including a sworn statement, by March 1. Form DR-501T is submitted as an
attachment to Form DR-501, Original Application for Ad Valorem Tax Exemption,
(incorporated by reference in Rule
RSA
12D-16.002, F.A.C.,
https://www.flrules.org/Gateway/reference.asp?No=Ref-05793).
(b) If the person meets the qualifications
and wants to designate the ownership share of the assessment difference to be
attributed to him or her as spouses for transfer to the new homestead, he or
she must also file a copy of Form DR-501TS, Designation of Ownership Shares of
Abandoned Homestead (incorporated by reference in Rule
RSA
12D-16.002, F.A.C.,
https://www.flrules.org/Gateway/reference.asp?No=Ref-05793)
that was already filed with the previous property appraiser as described in
subsection (5).
(4)
Within the limitations for multiple owners in subsection (5), the total which
may be transferred is limited as follows:
(a)
Upsizing - When the just value of the new homestead equals or is greater than
the just value of the previous homestead, the maximum amount that can be
transferred is $500,000.
(b)
Downsizing - When the just value of the new homestead is less than the just
value of the previous homestead, the maximum amount that can be transferred is
$500,000. Within that limit, the amount must be the same proportion of the new
homestead's just value as the proportion of the assessment difference was of
the previous homestead's just value.
(5)
(a)
Transferring without splitting or joining - When two or more persons jointly
abandon a single previous homestead and jointly establish a new homestead, the
provisions for splitting and joining below do not apply if no additional
persons are part of either homestead. The maximum amount that can be
transferred is $500,000.
(b)
Splitting - When two or more people who previously shared a homestead abandon
that homestead and establish separate homesteads, the maximum total amount that
can be transferred is $500,000. Within that limit, each person who received a
homestead exemption and is eligible to transfer an amount is limited to a share
of the previous homestead's difference between assessed value and just value.
The shares of the persons that received the homestead exemption cannot total
more than 100 percent.
1. For tenants in
common, this share is the difference between just value and assessed value for
the tenant's proportionate interest in the property. This is the just value of
the tenant's interest minus the assessed value of the tenant's
interest.
2. For joint tenancy with
right of survivorship and for spouses, the share of the homestead assessment
difference is the difference between the just value and the assessed value of
the owner's share of the homestead portion of the property. This is the
difference between the just value and the assessed value of the homestead
portion of the property, divided by the number of owners that received the
exemption, unless another interest share is on the title. In that case, the
portion of the amount that may be transferred is the difference between just
value and assessed value for the owner's stated share of the homestead portion
of the property.
3. Subparagraphs
(5)(b)1. and (5)(b)2., do not apply if spouses abandon jointly titled property
and designate their respective ownership shares by completing and filing Form
DR-501TS. When a complete and valid Form DR-501TS is filed as provided in this
subparagraph, the designated ownership shares are irrevocable.
If spouses abandon jointly titled property and want to designate their respective ownership shares they must:
a. Be married to each other on the date the
jointly titled property is abandoned.
b. Each execute the sworn statement
designating the person's ownership share on Form DR-501TS.
c. File a complete and valid Form DR-501TS
with the previous property appraiser before either person applies for
portability on Form DR-501T with the new property appraiser.
d. Include a copy of Form DR-501TS with the
homestead exemption application filed with the new property appraiser as
described in subsection (3).
4. Except when a complete and valid
designation Form DR-501TS is filed, the shares of the assessment difference
cannot be sold, transferred, or pledged to any taxpayer. For example, if
spouses divorce and both abandon the homestead, they each take their share of
the assessment difference with them. The property appraiser cannot accept a
stipulation otherwise.
(c) Joining - When two or more people, some
of whom previously owned separate homesteads and received a homestead
exemption, join together to qualify for a new homestead, the maximum amount
that can be transferred is $500,000. Within that limit, the amount that can be
transferred is limited to the highest difference between just value and
assessed value from any of the persons' previous homesteads.
(6) Abandonment.
(a) To transfer an assessment difference, a
homestead owner must abandon the homestead before January 1 of the year the new
application is made.
(b) In the
case of joint tenants with right of survivorship, if only one owner moved and
the other stayed in the original homestead, the homestead would not be
abandoned. The person who moved could not transfer any assessment
difference.
(c) To receive an
assessment reduction under Section
RSA
193.155(8) ,
F.S., a person may abandon his or her homestead even though it remains his or
her primary residence by providing written notification to the property
appraiser of the county where the homestead is located. This notification must
be delivered before or at the same time as the timely filing of a new
application for homestead exemption on the property. This abandonment will
result in reassessment at just value as provided in subparagraph (2)(a)3. of
this rule.
(7) Only the
difference between assessed value and just value attributable to Section
193.155, F.S., can be transferred.
(a) If a
property has both the homestead exemption and an agricultural classification, a
person cannot transfer the difference that results from an agricultural
classification.
(b) If a homeowner
has a homestead and is receiving a reduction in assessment for living quarters
for parents or grandparents under Section 193.703, F.S., the reduction is not
included in the transfer. When calculating the amount to be transferred, the
amount of that reduction must be added back into the assessed value before
calculating the difference.
(8) Procedures for property appraiser:
(a) If the previous homestead was in a
different county than the new homestead, the new property appraiser must
transmit a copy of the completed Form DR-501T with a completed Form DR-501 to
the previous property appraiser. If the previous homesteads of applicants
applying for transfer were in more than one county, each applicant from a
different county must fill out a separate Form DR-501T.
1. The previous property appraiser must
complete Form DR-501RVSH, Certificate for Transfer of Homestead Assessment
Difference (incorporated by reference in Rule
RSA
12D-16.002, F.A.C.,
https://www.flrules.org/Gateway/reference.asp?No=Ref-05793).
By April 1 or within two weeks after receiving Form DR-501T, whichever is
later, the previous property appraiser must send this form to the new property
appraiser. As part of the information returned on Form DR-501RVSH, the previous
property appraiser must certify that the amount transferred is part of a
previous homestead that has been or will be reassessed at just value as of
January 1 of the year after the year in which the abandonment occurred as
described in subparagraph (2)(a)3., of this rule.
2. Based on the information provided on Form
DR-501RVSH from the previous property appraiser, the new property appraiser
calculates the amount that may be transferred and applies this amount to the
January 1 assessment of the new homestead for the year for which application is
made.
(b) If the transfer
is from the same county as the new homestead, the property appraiser retains
Form DR-501T. Form DR-501RVSH is not required. For a person that applied on
time for the transfer of assessment difference, the property appraiser updates
the ownership share information using the share methodology in this
rule.
(c) The new property
appraiser must record the following in the assessment roll submitted to the
Department according to Section
RSA
193.1142, F.S., for the year the transfer is
made to the homestead parcel:
1. Flag for
current year assessment difference transfer,
2. Number of owners among whom the previous
assessment difference was split. Enter 1 if previous difference was not
split,
3. Assessment difference
value transferred,
4. County number
of previous homestead,
5. Parcel ID
of previous homestead,
6. Year from
which assessment difference value was transferred.
(d) Property appraisers that have information
sharing agreements with the Department are authorized to share confidential tax
information with each other under Section 195.084, F.S., including social
security numbers and linked information on Forms DR-501, DR-501T, and
DR-501RVSH.
(9)
(a) The transfer of an assessment difference
is not final until all values on the assessment roll on which the transfer is
based are final. If the values are final after the procedures in these rules
are exercised, the property appraiser(s) must make appropriate corrections and
send a corrected assessment notice. Any values that are in administrative or
judicial review must be noticed to the tribunal or court for accelerated
hearing and resolution so that the intent of Section
RSA
193.155(8) ,
F.S., may be fulfilled.
(b) This
rule does not authorize the consideration or adjustment of the just, assessed,
or taxable value of the previous homestead property.
(10) Additional provisions.
(a) If the information from the previous
property appraiser is provided after the procedures in this section are
exercised, the new property appraiser must make appropriate corrections and
send a corrected assessment notice.
(b) The new property appraiser must promptly
notify a taxpayer if the information received or available is insufficient to
identify the previous homestead and the transferable amount. For a timely filed
application, this notice must be sent by July 1.
(c) If the previous property appraiser
supplies enough information to the new property appraiser, the information is
considered timely if provided in time to include it on the notice of proposed
property taxes sent under Sections
RSA
194.011 and
RSA
200.065(1) ,
F.S.
(d) If the new property
appraiser has not received enough information to identify the previous
homestead and the transferable amount in time to include it on the notice of
proposed property taxes, the taxpayer may file a petition with the value
adjustment board in the county of the new homestead.
(11) Denials.
(a) If the applicant is not qualified for
transfer of any assessment difference, the new property appraiser must send
Form DR-490PORT, Notice of Denial of Transfer of Homestead Assessment
Difference, (incorporated by reference in Rule
RSA
12D-16.002, F.A.C.) to the applicant by July
1 and include the reasons for the denial.
(b) Any property appraiser who sent a notice
of denial by July 1 because he or she did not receive sufficient information to
identify the previous homestead and the amount which is transferable, must
grant the transfer after receiving information from the previous property
appraiser showing the taxpayer was qualified, if the new property appraiser
determines the taxpayer is otherwise qualified. If a petition was filed based
on a timely application for the transfer of an assessment difference, the value
adjustment board shall refund the taxpayer the petition filing fee.
(c) Petitions of denials may be filed with
the value adjustment board as provided in Rule
RSA
12D-9.028, F.A.C.
(12) Late applications.
(a) Any person qualified to have property
assessed under Section
RSA
193.155 (8), F.S., who fails to file for a
new homestead on time in the first year following eligibility may file in a
subsequent year. The assessment reduction must be applied to assessed value in
the year the transfer is first approved. A refund may not be given for previous
years.
(b) Any person who is
qualified to have his or her property assessed under Section
RSA
193.155(8) ,
F.S., who fails to file an application by March 1, may file an application for
assessment under that subsection and, under Section
RSA
194.011(3) ,
F.S., may file a petition with the value adjustment board requesting the
assessment be granted. The petition may be filed at any time during the taxable
year by the 25th day following the mailing of the notice by the property
appraiser as provided in Section
RSA
194.011(1) , F.S.
In spite of Section
RSA
194.013, F.S., the person must pay a
nonrefundable fee of $15 when filing the petition, as required by paragraph
(j), of Section
RSA
193.155(8) , F.S.
After reviewing the petition, the property appraiser or the value adjustment
board may grant the assessment under Section
RSA
193.155(8) ,
F.S., if the property appraiser or value adjustment board find the person is
qualified and demonstrates particular extenuating circumstances to warrant
granting the assessment.
Notes
Rulemaking Authority 195.027(1) FS. Law Implemented 192.047, 193.114, 193.1142, RSA 193.155, 193.461, RSA 193.703, 194.011, 194.013, RSA 195.084, 200.065 FS.
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