HB 89

1	A bill to be entitled
2	An act relating to ad valorem tax exemptions; amending
3	s. 196.192, F.S.; providing partial ad valorem tax
4	exemptions for nonexempt owners of real property
5	leased or gratuitously provided to exempt entities for
6	exclusive use for educational, scientific, religious,
7	or charitable purposes; amending s. 196.195, F.S.;
8	authorizing nonexempt owners of real property to apply
9	for ad valorem tax exemptions relating to real
10	property leased or gratuitously provided for
11	educational, scientific, religious, or charitable
12	purposes; providing eligibility criteria for partial
13	ad valorem tax exemptions relating to real property
14	leased or gratuitously provided for educational,
15	scientific, religious, or charitable purposes;
16	amending s. 196.196, F.S.; providing an exception to
17	the profitmaking prohibition applicable to claiming an
18	ad valorem tax exemption relating to property used for
19	specified exempt purposes; providing an effective
20	date.
21
22	Be It Enacted by the Legislature of the State of Florida:
23
24	Section 1.  Section 196.192, Florida Statutes, is amended
25	to read:
26	196.192  Exemptions from ad valorem taxation.-Subject to
27	the provisions of this chapter:
28	(1)  All property owned by an exempt entity, including
29	educational institutions, and used exclusively for exempt
30	purposes shall be totally exempt from ad valorem taxation.
31	(2)  All property owned by an exempt entity, including
32	educational institutions, and used predominantly for exempt
33	purposes shall be exempted from ad valorem taxation to the
34	extent of the ratio that such predominant use bears to the
35	nonexempt use.
36	(3)  All real property owned by a nonexempt entity and
37	leased or provided gratuitously to an exempt entity, including
38	an educational institution, for exclusive use of the property
39	for exempt educational, scientific, religious, or charitable
40	purposes shall be exempted from ad valorem taxation in an amount
41	equivalent to 50 percent of the amount that, if owned by the
42	exempt entity, would be exempted under subsection (1).
43	(4)  All real property owned by a nonexempt entity a
44	portion of which is leased or provided gratuitously to an exempt
45	entity, including an educational institution, for exclusive use
46	of that portion of the property for exempt educational,
47	scientific, religious, or charitable purposes shall be exempted
48	from ad valorem taxation to the extent of 50 percent of the
49	ratio that such use bears to the nonexempt use of other portions
50	of the property.
51	(5)(3)  All tangible personal property loaned or leased by
52	a natural person, by a trust holding property for a natural
53	person, or by an exempt entity to an exempt entity for public
54	display or exhibition on a recurrent schedule is exempt from ad
55	valorem taxation if the property is loaned or leased for no
56	consideration or for nominal consideration.
57
58	For purposes of this section, each use to which the property is
59	being put must be considered in granting an exemption from ad
60	valorem taxation, including any economic use in addition to any
61	physical use. For purposes of this section, property owned by a
62	limited liability company, the sole member of which is an exempt
63	entity, shall be treated as if the property were owned directly
64	by the exempt entity. This section does not apply in determining
65	the exemption for property owned by governmental units pursuant
66	to s. 196.199.
67	Section 2.  Section 196.195, Florida Statutes, is amended
68	to read:
69	196.195  Determining profit or nonprofit status of
70	applicant.-
71	(1)  Exempt and nonexempt entities applying for a total or
72	partial Applicants requesting exemption shall supply such fiscal
73	and other records showing in reasonable detail the financial
74	condition, record of operation, and exempt and nonexempt uses of
75	the property, where appropriate, for the immediately preceding
76	fiscal year as are requested by the property appraiser or the
77	value adjustment board.
78	(2)  In determining whether an exempt entity applying
79	applicant for a religious, literary, scientific, or charitable
80	exemption under this chapter is a nonprofit or profitmaking
81	venture or whether the property is used for a profitmaking
82	purpose, the following criteria shall be applied:
83	(a)  The reasonableness of any advances or payment directly
84	or indirectly by way of salary, fee, loan, gift, bonus,
85	gratuity, drawing account, commission, or otherwise (except for
86	reimbursements of advances for reasonable out-of-pocket expenses
87	incurred on behalf of the applicant) to any person, company, or
88	other entity directly or indirectly controlled by the applicant
89	or any officer, director, trustee, member, or stockholder of the
90	applicant;
91	(b)  The reasonableness of any guaranty of a loan to, or an
92	obligation of, any officer, director, trustee, member, or
93	stockholder of the applicant or any entity directly or
94	indirectly controlled by such person, or which pays any
95	compensation to its officers, directors, trustees, members, or
96	stockholders for services rendered to or on behalf of the
97	applicant;
98	(c)  The reasonableness of any contractual arrangement by
99	the applicant or any officer, director, trustee, member, or
100	stockholder of the applicant regarding rendition of services,
101	the provision of goods or supplies, the management of the
102	applicant, the construction or renovation of the property of the
103	applicant, the procurement of the real, personal, or intangible
104	property of the applicant, or other similar financial interest
105	in the affairs of the applicant;
106	(d)  The reasonableness of payments made for salaries for
107	the operation of the applicant or for services, supplies and
108	materials used by the applicant, reserves for repair,
109	replacement, and depreciation of the property of the applicant,
110	payment of mortgages, liens, and encumbrances upon the property
111	of the applicant, or other purposes; and
112	(e)  The reasonableness of charges made by the applicant
113	for any services rendered by it in relation to the value of
114	those services, and, if such charges exceed the value of the
115	services rendered, whether the excess is used to pay maintenance
116	and operational expenses in furthering its exempt purpose or to
117	provide services to persons unable to pay for the services.
118	(3)  Each exempt entity applying for an exemption applicant
119	must affirmatively show that no part of the subject property, or
120	the proceeds of the sale, lease, or other disposition thereof,
121	will inure to the benefit of its members, directors, or officers
122	or any person or firm operating for profit or for a nonexempt
123	purpose.
124	(4)  An No application submitted by an exempt entity for
125	exemption may not be granted for religious, literary,
126	scientific, or charitable use of property until the applicant
127	has been found by the property appraiser or, upon appeal, by the
128	value adjustment board to be nonprofit as defined in this
129	section.
130	(5)  In determining whether a nonexempt entity applying for
131	an educational, scientific, religious or charitable exemption
132	under this chapter is eligible for the partial exemptions
133	provided in s. 196.192(3) and (4), the criteria in subsection
134	(2) for determining whether an exempt entity is a nonprofit or
135	profitmaking venture or whether the property is used for a
136	profitmaking purpose shall be applied to the exempt lessee or
137	donee, including an educational institution.
138	(a)  A nonexempt entity applying for an educational,
139	scientific, religious, or charitable exemption must
140	affirmatively show that no part of the subject property or
141	proceeds generated by the exclusive use of the property for
142	exempt educational, scientific, religious, or charitable
143	purposes or a portion of the property for exempt educational,
144	scientific, religious, or charitable purposes will inure to the
145	benefit of the exempt entity's or educational institution's
146	members, directors, or officers or any person or firm operating
147	for profit or for a nonexempt purpose, with the exception of a
148	reasonable rental payment to the nonexempt entity.
149	(b)  An application submitted by a nonexempt entity for a
150	partial exemption provided in s. 196.192(3) or (4) may not be
151	granted for educational, scientific, religious, or charitable
152	use of property until the exempt lessee or donee, including an
153	educational institution, has been found by the property
154	appraiser or, upon appeal, by the value adjustment board to be
155	nonprofit as defined in this section.
156	Section 3.  Subsection (4) of section 196.196, Florida
157	Statutes, is amended to read:
158	196.196  Determining whether property is entitled to
159	charitable, religious, scientific, or literary exemption.-
160	(4)  Except as otherwise provided in this section and in
161	ss. 196.192 and 196.195 herein, property claimed as exempt for
162	literary, scientific, religious, or charitable purposes which is
163	used for profitmaking purposes shall be subject to ad valorem
164	taxation. Use of property for functions not requiring a business
165	or occupational license conducted by the organization at its
166	primary residence, the revenue of which is used wholly for
167	exempt purposes, shall not be considered profit making. In this
168	connection the playing of bingo on such property shall not be
169	considered as using such property in such a manner as would
170	impair its exempt status.
171	Section 4.  This act shall take effect July 1, 2012.

CODING: Words stricken are deletions; words underlined are additions.