Mark B. Kleinfeld P.A.

Splits and Cut Outs Upon Sale - Procedure to Adjust Property Taxes

When real property is sold as a split of an existing parcel or as a cut-out of a smaller parcel from a larger one, section 197.373, Florida Statutes, provides that the tax collector shall allow payment of a part of a tax notice "when the part to be paid can be ascertained by legal description." The statute does not state that the cut out or split parcel must have an minimum size or that it be identifiable by a separate street address. A request for a cut out or split may be made where "such part is under a contract for sale or has been transferred to a new owner and the request is made by the person purchasing the property or the new owner or someone acting on behalf of the purchaser or owner." The request for the cut out or split is made to the tax collector, which refers the request to the county property appraiser. Section 197.373 provides that the "property appraiser shall within 10 days after request from the tax collector apportion the property into the parts sought to be paid or redeemed." The statute states that the request must be made at least 15 days prior to the sale of the tax certificate for unpaid taxes.

The Florida Department of Revenue has promulgated Florida Administrative Code Rule 12D-13.007 regarding splits and cut outs. The rule states that once the property appraiser has assessed a parcel as of January 1 of the year in the name of the owner, "the appraiser may not cancel the assessment by reason of a sale of the whole or a part of the property. The assessment is against the property, not the owner." The request may be made at any time from November 1, or as soon thereafter as the tax roll comes into the hands of the tax collector, and up until 15 days before the tax certificate sale. The property appraiser figures the amount of the assessment on the cut out or split. Neither the statute nor the rule address the interplay which may arise between a Value Adjustment Board appeal and the cut out/split determination.

Rule 12D-13.007 also allows an application for a cut out or split within the 15 day period preceding the sale of a tax certificate. The tax collector may proceed with the sale of the certificate but the property owner may redeem the allocable portion of the tax certificate based on the split and by paying the interest and tax collector's fee incurred in connection with issuance of the tax certificate. A request for cut out or split made after a tax certificate has been sold on the entire parcel raises additional issues. Section 197.152, Florida Statutes, generally provides that no land shall be divided, subdivided or platted until all taxes due have been paid. Florida Administrative Code Rule 12D-13.053 refers to partial redemption of tax certificates, but the reference may be with regard to amount (partial payment). Rule 12D-13.007 (discussed above) refers to requests for a cut out or split made prior to the sale of a tax certificate. However, in Advisement Letter OPN 97-0010, the Florida Department of Revenue stated that the rule may be applicable to parcels on the list of "lands available" for unpaid taxes.