Florida Regulations 12D-17.006: Notification of Noncompliance; Withholding and Escrow of State Revenue Sharing Funds
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(1) If a taxing authority files a certification of compliance which violates Florida Statutes § 200.065, but which is permitted to be cured by the process specified in Section 200.065(13)(c), F.S., then the Department shall notify the taxing authority, as provided in subsection (2) of this rule section, using its last known address, that it is in violation of Florida Statutes § 200.065, and is subject to Section 200.065(13)(c), F.S.
(2)(a) The Department’s notice shall specify the steps necessary to bring the taxing authority into compliance. These steps may include, but not be limited to, readvertisement, reholding hearing(s), adoption of new millage and adoption of new budget.
(b) The Department shall notify the taxing authority to repeat the hearing and notice process required by Section 200.065(2)(d), F.S., and that the advertisement must appear within 15 days of the date the notice was issued from the Department, and shall contain the statement in boldface required by Section 200.065(13)(c)2., F.S.
(c) The Department must notify the taxing authority that it must be required to file a new certification after completion of the readvertisement and the reholding of the hearing(s), containing the following items:
1. Copy of advertisements (entire page from the print edition of a newspaper or the entire webpage of an Internet-only publication).
2. Proof of publication of these advertisements.
3. Copy of the resolution or ordinance adopting millage.
4. Copy of the resolution or ordinance adopting the budget.
5. Copy of the resolution or ordinance to hold any excess moneys collected in reserve until the subsequent fiscal year, if the newly adopted millage rate is less than the amount previously adopted at the final millage and budget hearing and forwarded to the property appraiser pursuant to Florida Statutes § 200.065(4)
6. Certification of Compliance, Form DR-487.
(d) The Department shall direct the tax collector to hold in escrow all ad valorem revenues for the taxing authority collected in violation of Florida Statutes § 200.065, which shall normally be those revenues in excess of the rolled-back rate, except those revenues from voted levies or levies imposed pursuant to Florida Statutes § 1011.60(6) The funds shall be held in escrow until the completion, and approval by the Department, of the process required by Section 200.065(13)(c), F.S., and this rule section.
(e) The Department of Revenue, Property Tax Oversight Program shall immediately notify in writing the Department of Revenue, General Tax Administration, Refunds and Distribution Process, of the noncompliance. That program shall proceed consistently with Sections 218.23(1) and 218.63(2), F.S., and Fl. Admin. Code Chapter 12-10, to withhold revenue sharing funds, and to hold the funds in escrow until the noncompliance is cured, or if not cured, to transfer the funds to the General Revenue Fund for the 12 months following the determination of noncompliance by the Department.
(f) The Department’s notification shall be issued within 30 days of the taxing authority’s deadline for filing the certification of compliance, Form DR-487, or within 60 days of the taxing authority’s resolution or ordinance adopting the levy. The Department’s notice shall be sent by overnight delivery, facsimile transmission (FAX), regular or certified mail, or hand delivery to the last known address and person identified by the taxing authority as provided in this rule chapter.
(g) The Department’s determination of non-compliance shall be deemed made on the date of the initial notification of the violation(s) to the taxing authority.
(3) The taxing authority shall hold a new hearing and adopt a new millage and a new budget. If the newly approved millage is less than the amount previously forwarded by the taxing authority to the property appraiser pursuant to Florida Statutes § 200.065(4), then the taxing authority shall hold any excess moneys collected in reserve until the subsequent fiscal year, and shall enact a resolution or ordinance to do so. Any millage newly adopted at a hearing required under this rule section shall not be forwarded to the property appraiser or tax collector and shall not exceed the rate previously adopted.
(4) If the taxing authority cures the violation under Section 200.065(13)(c), F.S., and this rule section, then the Department of Revenue shall:
(a) Notify the taxing authority that it is in compliance;
(b) Notify the tax collector, who shall disburse to the taxing authority, as provided by law, any funds held in escrow pursuant to this rule section; and,
(c) Notify the Department of Revenue, General Tax Administration, Refunds and Distribution Process, which shall disburse all funds held in escrow beginning with the next scheduled disbursement.
(5) If any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county is in violation of Florida Statutes § 200.065(5), because total county or municipal ad valorem taxes exceeded the maximum total county or municipal ad valorem taxes, respectively, that county or municipality, and any municipal service taxing unit and/or dependent district, shall be subject to notification.
(6)(a) One or more taxing authorities whose taxes are included in the maximum total taxes levied must reduce their millage sufficiently so that the maximum total taxes levied is not exceeded if any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county is in violation of Florida Statutes § 200.065(5), because total county or municipal ad valorem taxes exceeded the maximum total county or municipal ad valorem taxes. This is an alternative to the county or municipality forfeiting the half-cent sales tax revenues, as provided in Florida Statutes § 200.065(5)
(b) The county or municipality shall forfeit the distribution of local government half-cent sales tax revenues during the 12 months following a determination of noncompliance, as described in Sections 218.63(2) and (3), 200.065(13), F.S., if a taxing authority does not reduce its millage so that the maximum total taxes levied is not exceeded, or if any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county has not remedied the noncompliance or recertified compliance with Florida Statutes Chapter 200, as provided in Section 200.065(13)(e), F.S.
Rulemaking Authority Florida Statutes § 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.001, 200.065, 200.068, 218.21, 218.23, 218.63 FS. History-New 6-20-91, Amended 12-25-96, 11-1-12, 6-13-22.
Terms Used In Florida Regulations 12D-17.006
- Dependent: A person dependent for support upon another.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Oversight: Committee review of the activities of a Federal agency or program.
(b) The Department shall notify the taxing authority to repeat the hearing and notice process required by Section 200.065(2)(d), F.S., and that the advertisement must appear within 15 days of the date the notice was issued from the Department, and shall contain the statement in boldface required by Section 200.065(13)(c)2., F.S.
(c) The Department must notify the taxing authority that it must be required to file a new certification after completion of the readvertisement and the reholding of the hearing(s), containing the following items:
1. Copy of advertisements (entire page from the print edition of a newspaper or the entire webpage of an Internet-only publication).
2. Proof of publication of these advertisements.
3. Copy of the resolution or ordinance adopting millage.
4. Copy of the resolution or ordinance adopting the budget.
5. Copy of the resolution or ordinance to hold any excess moneys collected in reserve until the subsequent fiscal year, if the newly adopted millage rate is less than the amount previously adopted at the final millage and budget hearing and forwarded to the property appraiser pursuant to Florida Statutes § 200.065(4)
6. Certification of Compliance, Form DR-487.
(d) The Department shall direct the tax collector to hold in escrow all ad valorem revenues for the taxing authority collected in violation of Florida Statutes § 200.065, which shall normally be those revenues in excess of the rolled-back rate, except those revenues from voted levies or levies imposed pursuant to Florida Statutes § 1011.60(6) The funds shall be held in escrow until the completion, and approval by the Department, of the process required by Section 200.065(13)(c), F.S., and this rule section.
(e) The Department of Revenue, Property Tax Oversight Program shall immediately notify in writing the Department of Revenue, General Tax Administration, Refunds and Distribution Process, of the noncompliance. That program shall proceed consistently with Sections 218.23(1) and 218.63(2), F.S., and Fl. Admin. Code Chapter 12-10, to withhold revenue sharing funds, and to hold the funds in escrow until the noncompliance is cured, or if not cured, to transfer the funds to the General Revenue Fund for the 12 months following the determination of noncompliance by the Department.
(f) The Department’s notification shall be issued within 30 days of the taxing authority’s deadline for filing the certification of compliance, Form DR-487, or within 60 days of the taxing authority’s resolution or ordinance adopting the levy. The Department’s notice shall be sent by overnight delivery, facsimile transmission (FAX), regular or certified mail, or hand delivery to the last known address and person identified by the taxing authority as provided in this rule chapter.
(g) The Department’s determination of non-compliance shall be deemed made on the date of the initial notification of the violation(s) to the taxing authority.
(3) The taxing authority shall hold a new hearing and adopt a new millage and a new budget. If the newly approved millage is less than the amount previously forwarded by the taxing authority to the property appraiser pursuant to Florida Statutes § 200.065(4), then the taxing authority shall hold any excess moneys collected in reserve until the subsequent fiscal year, and shall enact a resolution or ordinance to do so. Any millage newly adopted at a hearing required under this rule section shall not be forwarded to the property appraiser or tax collector and shall not exceed the rate previously adopted.
(4) If the taxing authority cures the violation under Section 200.065(13)(c), F.S., and this rule section, then the Department of Revenue shall:
(a) Notify the taxing authority that it is in compliance;
(b) Notify the tax collector, who shall disburse to the taxing authority, as provided by law, any funds held in escrow pursuant to this rule section; and,
(c) Notify the Department of Revenue, General Tax Administration, Refunds and Distribution Process, which shall disburse all funds held in escrow beginning with the next scheduled disbursement.
(5) If any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county is in violation of Florida Statutes § 200.065(5), because total county or municipal ad valorem taxes exceeded the maximum total county or municipal ad valorem taxes, respectively, that county or municipality, and any municipal service taxing unit and/or dependent district, shall be subject to notification.
(6)(a) One or more taxing authorities whose taxes are included in the maximum total taxes levied must reduce their millage sufficiently so that the maximum total taxes levied is not exceeded if any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county is in violation of Florida Statutes § 200.065(5), because total county or municipal ad valorem taxes exceeded the maximum total county or municipal ad valorem taxes. This is an alternative to the county or municipality forfeiting the half-cent sales tax revenues, as provided in Florida Statutes § 200.065(5)
(b) The county or municipality shall forfeit the distribution of local government half-cent sales tax revenues during the 12 months following a determination of noncompliance, as described in Sections 218.63(2) and (3), 200.065(13), F.S., if a taxing authority does not reduce its millage so that the maximum total taxes levied is not exceeded, or if any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county has not remedied the noncompliance or recertified compliance with Florida Statutes Chapter 200, as provided in Section 200.065(13)(e), F.S.
Rulemaking Authority Florida Statutes § 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.001, 200.065, 200.068, 218.21, 218.23, 218.63 FS. History-New 6-20-91, Amended 12-25-96, 11-1-12, 6-13-22.