Florida Senate - 2010 CS for CS for SB 346
By the Committees on Finance and Tax; and Community Affairs; and
Senators Dean, Gaetz, Lynn, Smith, Aronberg, Rich, Storms, and
Sobel
593-04856-10 2010346c2
1 A bill to be entitled
2 An act relating to working waterfront property;
3 creating s. 193.704, F.S.; providing definitions;
4 specifying properties that are eligible for
5 classification as working waterfront property;
6 requiring the assessment of working waterfront
7 property based on current use; specifying a
8 methodology for determining assessed value; requiring
9 property appraisers to consider specified factors in
10 assessing certain property; providing for assessment
11 of a portion of property within a working waterfront
12 property which is not used as working waterfront
13 property; requiring an application for classification
14 of property as working waterfront property; specifying
15 application requirements; authorizing a property
16 appraiser to approve an application not filed by a
17 certain deadline due to extenuating circumstances;
18 providing for waiver of annual application
19 requirements; providing for loss of classification
20 upon a change of ownership or use; requiring property
21 owners to notify the property appraiser of changes in
22 use or ownership of property; imposing a penalty for
23 failure to notify the property appraiser of an event
24 resulting in the unlawful or improper classification
25 of property as working waterfront property; requiring
26 imposition of tax liens to recover penalties and
27 interest; requiring property appraisers to make a list
28 relating to applications to certify property as
29 working waterfront property; providing an appeal
30 process for applications that have been denied;
31 amending s. 195.073, F.S.; providing for the
32 classification of land as working waterfront property
33 on an assessment roll; providing emergency rulemaking
34 authority; providing for retroactive application;
35 providing an alternate application date for 2010;
36 providing an effective date.
37
38 Be It Enacted by the Legislature of the State of Florida:
39
40 Section 1. Section 193.704, Florida Statutes, is created to
41 read:
42 193.704 Working waterfront property; definitions;
43 classification and assessment; denial of classification and
44 appeal.—
45 (1) DEFINITIONS.—For purposes of granting a working
46 waterfront property classification under this section for
47 January 1, 2011, and thereafter, the term:
48 (a) “Accessible to the public” means routinely available to
49 the public from sunrise to sunset, with or without charge, with
50 appropriate accommodations, including, but not limited to,
51 public parking or public boat ramps that are available for use
52 by the general public.
53 (b) “Commercial fishing facility” means docks, piers,
54 processing houses, or other facilities that support a commercial
55 fishing operation or an aquaculture operation certified under
56 chapter 597.
57 (c) “Commercial fishing operation” has the same meaning as
58 that provided in s. 379.2351.
59 (d) “Drystack” means a licensed commercial vessel storage
60 facility or building in which storage spaces for vessels are
61 available for use by the public on a first-come, first-served
62 basis. The term excludes storage that is purchased, received, or
63 rented as a result of homeownership or tenancy.
64 (e) “Land used predominantly for commercial fishing
65 purposes” means land used in good faith in a for-profit
66 commercial fishing operation for the taking or harvesting of
67 freshwater fish or saltwater products, as defined in s. 379.101,
68 for which a commercial license to take, harvest, or sell such
69 fish or products is required under chapter 379, or land used in
70 an aquaculture operation certified under chapter 597.
71 (f) “Marina” means a licensed commercial facility that
72 provides open-to-the-public dockage, moorings, or drystacks for
73 vessels on a first-come, first-served basis. The term excludes
74 dockage, mooring, or storage that is purchased, received, or
75 rented as a result of homeownership or tenancy.
76 (g) “Marine manufacturing facility” means a facility that
77 manufactures vessels for use in waters that are navigable.
78 (h) “Marine vessel construction and repair facility” means
79 a facility that constructs and repairs vessels that travel over
80 waters that are navigable, including, but not limited to,
81 shipyards and boatyards.
82 (i) “Open to the public” means for hire to the general
83 public and accessible during normal operating hours.
84 (j) “Repair” includes retrofitting and maintenance of
85 vessels.
86 (k) “Support facility” means a facility that typically is
87 collocated with marine vessel construction and repair
88 facilities, including, but not limited to, shops, equipment, and
89 salvage facilities.
90 (l) “Water-dependent” means that the activities performed
91 in the facility can be conducted only on, in, over, or adjacent
92 to waters that are navigable, require direct access to water,
93 and involve the use of water as an integral part of such
94 activity.
95 (m) “Waterfront” means property that is on, over, or
96 abutting waters that are navigable.
97 (n) “Waters that are navigable” means water bodies that are
98 capable of supporting boating and that are used or may be used
99 in their ordinary condition as highways for commerce for which
100 trade or travel are or may be conducted in the customary modes
101 of trade or travel on water.
102 (2) CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.—
103 (a) The following waterfront properties are eligible for
104 classification as working waterfront property:
105 1. Land used predominantly for commercial fishing purposes.
106 2. Land that is accessible to the public and used for
107 vessel launches into waters that are navigable.
108 3. Marinas and drystacks that are open to the public.
109 4. Water-dependent marine manufacturing facilities.
110 5. Water-dependent commercial fishing facilities.
111 6. Water-dependent marine vessel construction and repair
112 facilities and their support facilities.
113 (b) Property classified as working waterfront property
114 under this section shall be assessed on the basis of current
115 use.
116 1. If the income approach to value is appropriate to the
117 property and if adequate local data on comparable rental rates,
118 expense rates, and vacancy rates are available to the property
119 appraiser, the assessed value shall be established using the
120 income approach to value, using an overall capitalization rate
121 based upon the debt coverage ratio formula, adjusted for the
122 effective tax rate. The overall capitalization rate shall be
123 calculated annually and shall be based on local data.
124 2. If the conditions required for assessment under
125 subparagraph 1. are not satisfied, the property appraiser shall
126 value the property at its present cash value as if it were
127 required to remain in its current use into the foreseeable
128 future.
129 3. In no event may the assessed value of the property
130 exceed just value.
131 4. If a parcel contains both uses eligible for assessment
132 under this section and uses that are not eligible for assessment
133 under this section, those portions of the property that are not
134 eligible for assessment under this section must be assessed
135 separately as otherwise provided by this chapter.
136 (c)1. Property may not be classified as working waterfront
137 property unless an application for such classification is filed
138 with the property appraiser on or before March 1 of each year in
139 the county in which the property is located. Before approving
140 such classification, the property appraiser may require the
141 applicant to establish that the property is actually used as
142 required under this section. The property appraiser may require
143 the applicant to furnish the property appraiser such information
144 as may reasonably be required to establish that such property
145 was actually used for working waterfront purposes and to
146 establish the classified use value of the property, including
147 income and expense data. The owner or lessee of property
148 classified as working waterfront property in the prior year may
149 reapply on a short form provided by the department. The lessee
150 of property may make original application or reapply on a short
151 form if the lease, or an affidavit executed by the owner,
152 provides that the lessee is empowered to make application for
153 the working waterfront classification on behalf of the owner and
154 a copy of the lease or affidavit accompanies the application. An
155 applicant may withdraw an application on or before the 25th day
156 following the mailing of the notice of proposed property taxes
157 pursuant to s. 200.069 in the year the application was filed.
158 2. Any property owner or lessee who fails to file an
159 application for classification as working waterfront property by
160 March 1 may file an application for classification with the
161 property appraiser on or before the 25th day following the
162 mailing of the notice of proposed property taxes pursuant to s.
163 200.069. Upon review of the application, if the applicant is
164 qualified to receive the classification and demonstrates
165 particular extenuating circumstances that warrant the
166 classification, the property appraiser may grant the
167 classification.
168 3. A county, at the request of the property appraiser and
169 by a majority vote of its governing body, may waive the
170 requirement that an annual application or short form be filed
171 with the property appraiser for renewal of the classification of
172 property within the county as working waterfront property. Such
173 waiver may be revoked by a majority of the county governing
174 body.
175 4. Notwithstanding subparagraph 2., a new application for
176 classification as working waterfront property must be filed with
177 the property appraiser whenever any property granted the
178 classification as working waterfront property is sold or
179 otherwise disposed of, whenever ownership or the lessee changes
180 in any manner, whenever the owner or the lessee ceases to use
181 the property as working waterfront property, or whenever the
182 status of the owner or the lessee changes so as to change the
183 classified status of the property.
184 5. The property appraiser shall remove from the
185 classification as working waterfront property any property for
186 which the classified use has been abandoned or discontinued or
187 the property has been diverted to an unclassified use. Such
188 removed property shall be assessed at just value as provided in
189 s. 193.011.
190 6.a. The owner of any property classified as working
191 waterfront property who is not required to file an annual
192 application under this section, and the lessee if the
193 application was made by the lessee, shall notify the property
194 appraiser promptly whenever the use of the property or the
195 status or condition of the owner or lessee changes, so as to
196 change the classified status of the property. If any such
197 property owner or lessee fails to notify the property appraiser
198 and the property appraiser determines that for any year within
199 the prior 10 years the owner was not entitled to receive such
200 classification, the owner of the property is subject to taxes
201 otherwise due and owing as a result of such failure plus 15
202 percent interest per annum and a penalty of 50 percent of the
203 additional taxes owed. However, the penalty may be waived if the
204 owner or lessee can demonstrate that he or she took reasonable
205 care to notify the property appraiser of the change in use,
206 status, or condition of the property.
207 b. The property appraiser making such determination shall
208 record in the public records of the county in which the working
209 waterfront property is located a notice of tax lien against any
210 property owned by the working waterfront property owner, and
211 such property must be identified in the notice of tax lien. Such
212 property is subject to the payment of all taxes and penalties.
213 Such lien, when filed, attaches to any property identified in
214 the notice of tax lien owned by the person or entity that
215 illegally or improperly received the classification. If such
216 person or entity no longer owns property in that county but owns
217 property in another county or counties in the state, the
218 property appraiser shall record in such other county or counties
219 a notice of tax lien identifying the property owned by the
220 working waterfront property owner in such county or counties,
221 which shall become a lien against the identified property.
222 7. The property appraiser shall have available at his or
223 her office a list by ownership of all applications received for
224 classification of property as working waterfront property,
225 showing the acreage, the just value under s. 193.011, the value
226 of the land under the provisions of this subsection, and whether
227 the classification was granted.
228 (3) DENIAL OF CLASSIFICATION; APPEAL.—
229 (a) The property appraiser shall notify an applicant for a
230 working waterfront classification in writing of a denial of an
231 application for such classification on or before July 1 of the
232 year for which the application was filed. The notification shall
233 advise the applicant of his or her right to appeal to the value
234 adjustment board and of the appeal filing deadline.
235 (b) Any applicant whose application for classification as
236 working waterfront property is denied by the property appraiser
237 may appeal to the value adjustment board by filing a petition
238 requesting that the classification be granted. The petition may
239 be filed on or before the 25th day following the mailing of the
240 assessment notice by the property appraiser as required under s.
241 194.011(1). Notwithstanding the provisions of s. 194.013, the
242 petitioner shall pay a nonrefundable fee of $15 upon filing the
243 petition. Upon the value adjustment board’s review of the
244 petition, if the petitioner is qualified to receive the
245 classification and demonstrates particular extenuating
246 circumstances that warrant granting the classification, the
247 value adjustment board may grant the petition and
248 classification.
249 (c) A denial of a petition for classification by the value
250 adjustment board may be appealed to a court of competent
251 jurisdiction.
252 (d)1. Property that has received a working waterfront
253 classification from the value adjustment board or a court of
254 competent jurisdiction under this subsection is entitled to
255 receive such classification in any subsequent year until such
256 use is changed, abandoned, or discontinued or the ownership
257 changes in any manner as provided in subparagraph (2)(c)4. The
258 property appraiser shall, no later than January 31 of each year,
259 provide notice to the property owner or lessee receiving a
260 classification under this subsection requiring the property
261 owner or a lessee qualified to make application to certify that
262 the ownership and the use of the property has not changed. The
263 department shall prescribe by rule the form of the notice to be
264 used by the property appraiser.
265 2. If a county has waived the requirement that an annual
266 application or short form be filed for classification of the
267 property under subsection (2), the county may, by majority vote
268 of its governing body, waive the notice and certification
269 requirements of this paragraph and shall provide the property
270 owner or lessee with the same notification as provided to
271 property owners granted a working waterfront classification by
272 the property appraiser. Such waiver may be revoked by a majority
273 vote of the county governing body.
274 Section 2. Subsection (1) of section 195.073, Florida
275 Statutes, is amended to read:
276 195.073 Classification of property.—All items required by
277 law to be on the assessment rolls must receive a classification
278 based upon the use of the property. The department shall
279 promulgate uniform definitions for all classifications. The
280 department may designate other subclassifications of property.
281 No assessment roll may be approved by the department which does
282 not show proper classifications.
283 (1) Real property must be classified according to the
284 assessment basis of the land into the following classes:
285 (a) Residential, subclassified into categories, one
286 category for homestead property and one for nonhomestead
287 property:
288 1. Single family.
289 2. Mobile homes.
290 3. Multifamily.
291 4. Condominiums.
292 5. Cooperatives.
293 6. Retirement homes.
294 (b) Commercial and industrial.
295 (c) Agricultural.
296 (d) Nonagricultural acreage.
297 (e) High-water recharge.
298 (f) Historic property used for commercial or certain
299 nonprofit purposes.
300 (g) Exempt, wholly or partially.
301 (h) Centrally assessed.
302 (i) Leasehold interests.
303 (j) Time-share property.
304 (k) Land assessed under s. 193.501.
305 (l) Working waterfront property.
306 (m)(l) Other.
307 Section 3. The Department of Revenue may adopt emergency
308 rules to administer s. 193.704, Florida Statutes, as created by
309 this act. The emergency rules shall remain in effect for 6
310 months after adoption and may be renewed during the pendency of
311 procedures to adopt rules addressing the subject of the
312 emergency rules.
313 Section 4. This act shall take effect upon becoming a law,
314 and applies retroactively to January 1, 2010. For the 2010
315 calendar year, an application for classification of property as
316 working waterfront must be filed on or before July 1, rather
317 than on or before March 1.