Post-Hurricane Financial Support for Florida Homeowners

Florida lawmakers passed legislation that will aid homeowners whose homes were left uninhabitable after Hurricane Ian or Hurricane Nicole. Homeowners who were unable to occupy or use their residence for at least 30 days due to damages from Hurricanes Ian and Nicole may be eligible.

Eligible homeowners will receive a partial refund of their 2022 property taxes upon timely payment. Those who have already paid their 2022 property taxes when their application is approved will immediately receive their refund. 

To apply for the refund, homeowners need to contact their county’s property appraiser to receive an Application for Hurricane Ian or Hurricane Nicole Tax Refund form (Department of Revenue Form DR-5001). The homeowner will have to provide documentation that shows how many days his or her home was uninhabitable, up to a maximum of 95 days for damages caused by Hurricane Ian and 52 days for damages caused by Hurricane Nicole. Examples of acceptable documentation include utility bills, insurance information, contractors’ statements, building permit applications, or building inspection certificates of occupancy. The application and documentation must be sent back to the property appraiser by April 3, 2023.

Ultimately, the property appraiser will determine a homeowner’s eligibility based on his or her application and documentation. All applicants will be notified by June 1, 2023, whether they were deemed eligible or ineligible. Applicants deemed ineligible will have 30 days following the notification of ineligibility to petition their application.

For eligible homeowners, the property appraiser is required to provide the tax collector with the value of the residential improvement, the number of days that the improvement was uninhabitable, the post-disaster value of the residential parcel and the percent change in value. Once the tax collector has this information, he will calculate the refund owed to the homeowner. Please see the example below to learn how the refund will be calculated:

• The January 1, 2022, pre-disaster values of the residential improvement (the house, attached garage and attached porches only) and the parcel are $800,000 and $1,000,000, respectively. 
• Post-disaster, the residential improvement is worthless because it is uninhabitable, so the parcel has lost $800,000 in value. The appraiser determines the percent change in value post-disaster is 80% ($800,000 in lost value divided by $1,000,000 parcel value pre-disaster). 
• The home was uninhabitable for 95 days due to damages from Hurricane Ian. The percent of uninhabitable days is 26% (95 days divided by 365 days). 
• The tax collector determines the damage differential is 20.8% (80% multiplied by 26%). 
• The homeowner paid $10,000 in property taxes in 2022, so his/her partial refund will be $2,080 (20.8% damage differential multiplied by $10,000 of 2022 property taxes paid).

For more information about the refund calculation, please refer to this bulletin issued by the Florida Department of Revenue.

Homeowners in Brevard, Broward, Charlotte, Collier, Duval, Flagler, Indian River, Lee, Manatee, Martin, Nassau, Palm Beach, Saints Johns, Saint Lucie, Sarasota and Volusia Counties may also be eligible to participate in the Hurricane Restoration Reimbursement Grant Program. The grant is a dollar-for-dollar cost-sharing program between the homeowner of a qualified property and the Florida Department of Environmental Protection (DEP). The DEP will reimburse up to $150,000 of expenses incurred from sand placement projects and temporary or permanent coastal armoring construction projects that were made in preparation for or due to damages from Hurricanes Ian and Nicole. All projects must have the proper permits and be completed by a licensed contractor, if applicable. The DEP will release more details about the application process no later than January 31, 2023, and applications may start being submitted on February 1, 2023.

Additionally, the hurricane relief package provided $750 million to support the communities impacted by Hurricanes Ian and Nicole. This funding will be used to support the FEMA Public Assistance fund, local beach renourishment projects, stormwater and wastewater infrastructure repairs, and more. 

If you have any questions regarding your eligibility for the property tax refund or need help with your application, please contact a member of the Schneider Downs tax team.

About Schneider Downs Tax Services

Schneider Downs’ tax advisors have experience and expertise in a wide range of industries, including Automotive, Construction, Real Estate, Manufacturing, Energy & Resources, Higher Education, Not-for-profits, Transportation and others. Our industry knowledge and focus ensure the delivery of technical tax strategies that can be implemented as practical business initiatives.  

To learn more, visit our dedicated Tax Services page.