New Filing Requirements for Mergers and Certain Ownership Changes

Pursuant to new Florida Statutes Section 193.1556, the State now requires the filing of a Department of Revenue Form DR-430 where there is a change of ownership or control of non-homestead property where no deed is recorded. The DR-430 form must be filed with the property appraiser for the county where the real estate is located promptly following the change of ownership. The new filing requirement means that LLC transfers of membership interests and corporate mergers that formerly escaped review by the county Property Appraiser must now be disclosed. The responsibility of filing the form is placed on the new owner or controlling person.

The Department of Revenue deems the following to be a "change of transfer or control" of an entity:

• A change of ownership pursuant to a sale where no deed is recorded.
• A merger.
• A foreclosure where no deed is recorded.
• A transfer of more than 50% of the legal or beneficial title to any person or entity.
• A transfer of more than 50% of the membership or stock interests of an entity that owned the property.
• A change in control of the directors of a corporation, general partner, managing member of an LLC, or other controlling person to a successor, where there is an accompanying change in majority control.
• Under a lease, contract or other arrangement when control is transferred to another person or entity.

Failure to notify the Property Appraiser promptly following the change of control may subject the new owner to any taxes that were avoided plus 15% interest annum and a penalty of 50% of the taxes avoided.

Beginning January 1, 2009, the property appraiser is required to record a tax lien on any property owned by a person or entity that was granted but not entitled to the property assessment limitation under F.S.193.1554 or F.S.193.1555,
Mail or return all completed forms to the Property Appraiser's Main Office location.