Florida Senate - 2013                             CS for SB 1064
       
       
       
       By the Committee on Appropriations; and Senator Latvala
       
       
       
       
       576-04971-13                                          20131064c1
    1                        A bill to be entitled                      
    2         An act relating to the assessment of residential and
    3         nonhomestead real property; creating s. 193.624, F.S.;
    4         defining the term “renewable energy source device”;
    5         excluding the value of renewable energy source devices
    6         from the assessed value of residential real property;
    7         providing for applicability; amending s. 193.155,
    8         F.S.; specifying additional exceptions to the
    9         assessment of homestead property at just value;
   10         amending s. 193.1554, F.S.; specifying additional
   11         exceptions to assessment of nonhomestead residential
   12         property at just value; amending s. 196.012, F.S.;
   13         deleting the definition of the terms “renewable energy
   14         source device” and “device”; conforming a cross
   15         reference; amending ss. 196.121 and 196.1995, F.S.;
   16         conforming cross-references; repealing s. 196.175,
   17         F.S., relating to the property tax exemption for
   18         renewable energy source devices; providing for
   19         applicability; providing an effective date.
   20  
   21  Be It Enacted by the Legislature of the State of Florida:
   22  
   23         Section 1. Section 193.624, Florida Statutes, is created to
   24  read:
   25         193.624 Assessment of residential property.—
   26         (1) As used in this section, the term “renewable energy
   27  source device” means any of the following equipment that
   28  collects, transmits, stores, or uses solar energy, wind energy,
   29  or energy derived from geothermal deposits:
   30         (a) Solar energy collectors, photovoltaic modules, and
   31  inverters.
   32         (b) Storage tanks and other storage systems, excluding
   33  swimming pools used as storage tanks.
   34         (c) Rockbeds.
   35         (d) Thermostats and other control devices.
   36         (e) Heat exchange devices.
   37         (f) Pumps and fans.
   38         (g) Roof ponds.
   39         (h) Freestanding thermal containers.
   40         (i) Pipes, ducts, refrigerant handling systems, and other
   41  equipment used to interconnect such systems; however, such
   42  equipment does not include conventional backup systems of any
   43  type.
   44         (j) Windmills and wind turbines.
   45         (k) Wind-driven generators.
   46         (l) Power conditioning and storage devices that use wind
   47  energy to generate electricity or mechanical forms of energy.
   48         (m) Pipes and other equipment used to transmit hot
   49  geothermal water to a dwelling or structure from a geothermal
   50  deposit.
   51         (2) In determining the assessed value of real property used
   52  for residential purposes, an increase in the just value of the
   53  property attributable to the installation of a renewable energy
   54  source device may not be considered.
   55         (3) This section applies to the installation of a renewable
   56  energy source device installed on or after January 1, 2013, to
   57  new and existing residential real property.
   58         Section 2. Paragraph (a) of subsection (4) of section
   59  193.155, Florida Statutes, is amended to read:
   60         193.155 Homestead assessments.—Homestead property shall be
   61  assessed at just value as of January 1, 1994. Property receiving
   62  the homestead exemption after January 1, 1994, shall be assessed
   63  at just value as of January 1 of the year in which the property
   64  receives the exemption unless the provisions of subsection (8)
   65  apply.
   66         (4)(a) Except as provided in paragraph (b) and s. 193.624,
   67  changes, additions, or improvements to homestead property shall
   68  be assessed at just value as of the first January 1 after the
   69  changes, additions, or improvements are substantially completed.
   70         Section 3. Paragraph (a) of subsection (6) of section
   71  193.1554, Florida Statutes, is amended to read:
   72         193.1554 Assessment of nonhomestead residential property.—
   73         (6)(a) Except as provided in paragraph (b) and s. 193.624,
   74  changes, additions, or improvements to nonhomestead residential
   75  property shall be assessed at just value as of the first January
   76  1 after the changes, additions, or improvements are
   77  substantially completed.
   78         Section 4. Subsections (14) through (20) of section
   79  196.012, Florida Statutes, are amended to read:
   80         196.012 Definitions.—For the purpose of this chapter, the
   81  following terms are defined as follows, except where the context
   82  clearly indicates otherwise:
   83         (14) “Renewable energy source device” or “device” means any
   84  of the following equipment which, when installed in connection
   85  with a dwelling unit or other structure, collects, transmits,
   86  stores, or uses solar energy, wind energy, or energy derived
   87  from geothermal deposits:
   88         (a) Solar energy collectors.
   89         (b) Storage tanks and other storage systems, excluding
   90  swimming pools used as storage tanks.
   91         (c) Rockbeds.
   92         (d) Thermostats and other control devices.
   93         (e) Heat exchange devices.
   94         (f) Pumps and fans.
   95         (g) Roof ponds.
   96         (h) Freestanding thermal containers.
   97         (i) Pipes, ducts, refrigerant handling systems, and other
   98  equipment used to interconnect such systems; however,
   99  conventional backup systems of any type are not included in this
  100  definition.
  101         (j) Windmills.
  102         (k) Wind-driven generators.
  103         (l) Power conditioning and storage devices that use wind
  104  energy to generate electricity or mechanical forms of energy.
  105         (m) Pipes and other equipment used to transmit hot
  106  geothermal water to a dwelling or structure from a geothermal
  107  deposit.
  108         (14)(15) “New business” means:
  109         (a)1. A business or organization establishing 10 or more
  110  new jobs to employ 10 or more full-time employees in this state,
  111  paying an average wage for such new jobs that is above the
  112  average wage in the area, which principally engages in any one
  113  or more of the following operations:
  114         a. Manufactures, processes, compounds, fabricates, or
  115  produces for sale items of tangible personal property at a fixed
  116  location and which comprises an industrial or manufacturing
  117  plant; or
  118         b. Is a target industry business as defined in s.
  119  288.106(2)(q);
  120         2. A business or organization establishing 25 or more new
  121  jobs to employ 25 or more full-time employees in this state, the
  122  sales factor of which, as defined by s. 220.15(5), for the
  123  facility with respect to which it requests an economic
  124  development ad valorem tax exemption is less than 0.50 for each
  125  year the exemption is claimed; or
  126         3. An office space in this state owned and used by a
  127  business or organization newly domiciled in this state; provided
  128  such office space houses 50 or more full-time employees of such
  129  business or organization; provided that such business or
  130  organization office first begins operation on a site clearly
  131  separate from any other commercial or industrial operation owned
  132  by the same business or organization.
  133         (b) Any business or organization located in an enterprise
  134  zone or brownfield area that first begins operation on a site
  135  clearly separate from any other commercial or industrial
  136  operation owned by the same business or organization.
  137         (c) A business or organization that is situated on property
  138  annexed into a municipality and that, at the time of the
  139  annexation, is receiving an economic development ad valorem tax
  140  exemption from the county under s. 196.1995.
  141         (15)(16) “Expansion of an existing business” means:
  142         (a)1. A business or organization establishing 10 or more
  143  new jobs to employ 10 or more full-time employees in this state,
  144  paying an average wage for such new jobs that is above the
  145  average wage in the area, which principally engages in any of
  146  the operations referred to in subparagraph (15)(a)1.; or
  147         2. A business or organization establishing 25 or more new
  148  jobs to employ 25 or more full-time employees in this state, the
  149  sales factor of which, as defined by s. 220.15(5), for the
  150  facility with respect to which it requests an economic
  151  development ad valorem tax exemption is less than 0.50 for each
  152  year the exemption is claimed; provided that such business
  153  increases operations on a site located within the same county,
  154  municipality, or both colocated with a commercial or industrial
  155  operation owned by the same business or organization under
  156  common control with the same business or organization, resulting
  157  in a net increase in employment of not less than 10 percent or
  158  an increase in productive output or sales of not less than 10
  159  percent.
  160         (b) Any business or organization located in an enterprise
  161  zone or brownfield area that increases operations on a site
  162  located within the same zone or area colocated with a commercial
  163  or industrial operation owned by the same business or
  164  organization under common control with the same business or
  165  organization.
  166         (16)(17) “Permanent resident” means a person who has
  167  established a permanent residence as defined in subsection (17)
  168  (18).
  169         (17)(18) “Permanent residence” means that place where a
  170  person has his or her true, fixed, and permanent home and
  171  principal establishment to which, whenever absent, he or she has
  172  the intention of returning. A person may have only one permanent
  173  residence at a time; and, once a permanent residence is
  174  established in a foreign state or country, it is presumed to
  175  continue until the person shows that a change has occurred.
  176         (18)(19) “Enterprise zone” means an area designated as an
  177  enterprise zone pursuant to s. 290.0065. This subsection expires
  178  on the date specified in s. 290.016 for the expiration of the
  179  Florida Enterprise Zone Act.
  180         (19)(20) “Ex-servicemember” means any person who has served
  181  as a member of the United States Armed Forces on active duty or
  182  state active duty, a member of the Florida National Guard, or a
  183  member of the United States Reserve Forces.
  184         Section 5. Subsection (2) of section 196.121, Florida
  185  Statutes, is amended to read:
  186         196.121 Homestead exemptions; forms.—
  187         (2) The forms shall require the taxpayer to furnish certain
  188  information to the property appraiser for the purpose of
  189  determining that the taxpayer is a permanent resident as defined
  190  in s. 196.012(16) 196.012(17). Such information may include, but
  191  need not be limited to, the factors enumerated in s. 196.015.
  192         Section 6. Subsections (6), (8), (9), and (11) of section
  193  196.1995, Florida Statutes, are amended to read:
  194         196.1995 Economic development ad valorem tax exemption.—
  195         (6) With respect to a new business as defined by s.
  196  196.012(14)(c) 196.012(15)(c), the municipality annexing the
  197  property on which the business is situated may grant an economic
  198  development ad valorem tax exemption under this section to that
  199  business for a period that will expire upon the expiration of
  200  the exemption granted by the county. If the county renews the
  201  exemption under subsection (7), the municipality may also extend
  202  its exemption. A municipal economic development ad valorem tax
  203  exemption granted under this subsection may not extend beyond
  204  the duration of the county exemption.
  205         (8) Any person, firm, or corporation which desires an
  206  economic development ad valorem tax exemption shall, in the year
  207  the exemption is desired to take effect, file a written
  208  application on a form prescribed by the department with the
  209  board of county commissioners or the governing authority of the
  210  municipality, or both. The application shall request the
  211  adoption of an ordinance granting the applicant an exemption
  212  pursuant to this section and shall include the following
  213  information:
  214         (a) The name and location of the new business or the
  215  expansion of an existing business;
  216         (b) A description of the improvements to real property for
  217  which an exemption is requested and the date of commencement of
  218  construction of such improvements;
  219         (c) A description of the tangible personal property for
  220  which an exemption is requested and the dates when such property
  221  was or is to be purchased;
  222         (d) Proof, to the satisfaction of the board of county
  223  commissioners or the governing authority of the municipality,
  224  that the applicant is a new business or an expansion of an
  225  existing business, as defined in s. 196.012(15) or (16);
  226         (e) The number of jobs the applicant expects to create
  227  along with the average wage of the jobs and whether the jobs are
  228  full-time or part-time;
  229         (f) The expected time schedule for job creation; and
  230         (g) Other information deemed necessary or appropriate by
  231  the department, county, or municipality.
  232         (9) Before it takes action on the application, the board of
  233  county commissioners or the governing authority of the
  234  municipality shall deliver a copy of the application to the
  235  property appraiser of the county. After careful consideration,
  236  the property appraiser shall report the following information to
  237  the board of county commissioners or the governing authority of
  238  the municipality:
  239         (a) The total revenue available to the county or
  240  municipality for the current fiscal year from ad valorem tax
  241  sources, or an estimate of such revenue if the actual total
  242  revenue available cannot be determined;
  243         (b) Any revenue lost to the county or municipality for the
  244  current fiscal year by virtue of exemptions previously granted
  245  under this section, or an estimate of such revenue if the actual
  246  revenue lost cannot be determined;
  247         (c) An estimate of the revenue which would be lost to the
  248  county or municipality during the current fiscal year if the
  249  exemption applied for were granted had the property for which
  250  the exemption is requested otherwise been subject to taxation;
  251  and
  252         (d) A determination as to whether the property for which an
  253  exemption is requested is to be incorporated into a new business
  254  or the expansion of an existing business, as defined in s.
  255  196.012(15) or (16), or into neither, which determination the
  256  property appraiser shall also affix to the face of the
  257  application. Upon the request of the property appraiser, the
  258  department shall provide to him or her such information as it
  259  may have available to assist in making such determination.
  260         (11) An ordinance granting an exemption under this section
  261  shall be adopted in the same manner as any other ordinance of
  262  the county or municipality and shall include the following:
  263         (a) The name and address of the new business or expansion
  264  of an existing business to which the exemption is granted;
  265         (b) The total amount of revenue available to the county or
  266  municipality from ad valorem tax sources for the current fiscal
  267  year, the total amount of revenue lost to the county or
  268  municipality for the current fiscal year by virtue of economic
  269  development ad valorem tax exemptions currently in effect, and
  270  the estimated revenue loss to the county or municipality for the
  271  current fiscal year attributable to the exemption of the
  272  business named in the ordinance;
  273         (c) The period of time for which the exemption will remain
  274  in effect and the expiration date of the exemption, which may be
  275  any period of time up to 10 years; and
  276         (d) A finding that the business named in the ordinance
  277  meets the requirements of s. 196.012(14) or (15) 196.012 (15) or
  278  (16).
  279         Section 7. Section 196.175, Florida Statutes, is repealed.
  280         Section 8. This act shall take effect July 1, 2013, and
  281  applies to assessments beginning January 1, 2014.