| 1 | A bill to be entitled |
| 2 | An act relating to real property used for conservation |
| 3 | purposes; creating s. 196.26, F.S.; providing definitions; |
| 4 | providing for a full or partial exemption for land |
| 5 | dedicated in perpetuity for conservation purposes; |
| 6 | exempting certain real property encumbered by a |
| 7 | conservation easement purchased by the federal or state |
| 8 | government or by a local government; providing |
| 9 | circumstances under which land consisting of less than 40 |
| 10 | acres qualifies for such exemption; providing for the |
| 11 | assessment of buildings and structures on exempted lands; |
| 12 | requiring best management practices to be used for certain |
| 13 | agricultural lands; providing for third-party conservation |
| 14 | easement enforcement rights to affected governments; |
| 15 | creating the Board of Conservation for certain purposes; |
| 16 | providing for appointment of members; amending s. 193.501, |
| 17 | F.S.; revising a cross-reference; amending s. 704.06, |
| 18 | F.S.; requiring owners of property encumbered by a |
| 19 | conservation easement to comply with marketable record |
| 20 | title requirements to preserve the easement in perpetuity; |
| 21 | amending s. 195.073, F.S.; specifying an additional real |
| 22 | property assessment classification; amending s. 196.011, |
| 23 | F.S.; providing requirements and procedures for renewal |
| 24 | applications for exemptions for real property dedicated in |
| 25 | perpetuity for conservation purposes; requiring owners of |
| 26 | such property to notify the property appraiser when use of |
| 27 | the property no longer qualifies for the exemption; |
| 28 | providing penalties for failure to notify; providing for |
| 29 | application of certain lien provisions; amending s. |
| 30 | 192.0105, F.S.; conforming a cross-reference; creating s. |
| 31 | 218.125, F.S.; requiring the Legislature to appropriate |
| 32 | moneys to replace the reductions in ad valorem tax revenue |
| 33 | experienced by fiscally constrained counties with a |
| 34 | population not exceeding 25,000; requiring each fiscally |
| 35 | constrained county to apply to the Department of Revenue |
| 36 | to participate in the distribution of the appropriation; |
| 37 | specifying the documentation that must be provided to the |
| 38 | department; providing a formula for calculating the |
| 39 | reduction in ad valorem tax revenue; authorizing the |
| 40 | department to adopt emergency rules effective for a |
| 41 | specified period; providing for renewal of such rules; |
| 42 | providing applicability; providing an effective date. |
| 43 |
|
| 44 | Be It Enacted by the Legislature of the State of Florida: |
| 45 |
|
| 46 | Section 1. Section 196.26, Florida Statutes, is created to |
| 47 | read: |
| 48 | 196.26 Exemption for real property dedicated in perpetuity |
| 49 | for conservation purposes.-- |
| 50 | (1) As used in this section: |
| 51 | (a) "Allowed commercial uses" means commercial uses that |
| 52 | are allowed by the conservation easement encumbering the land |
| 53 | exempt from taxation under this section. |
| 54 | (b) "Conservation easement" means the property right |
| 55 | described in s. 704.06. |
| 56 | (c) "Conservation purposes" means: |
| 57 | 1. Retention of the substantial natural value of land, |
| 58 | including woodlands, wetlands, water courses, ponds, streams, |
| 59 | and natural open spaces; |
| 60 | 2. Retention of such lands as suitable habitat for fish, |
| 61 | plants, or wildlife; or |
| 62 | 3. Retention of such lands' natural value for water |
| 63 | quality enhancement or water recharge. |
| 64 | (d) "Dedicated in perpetuity" means that the land is |
| 65 | encumbered by an irrevocable, perpetual conservation easement. |
| 66 | (2) Land that is dedicated in perpetuity for conservation |
| 67 | purposes and that is used exclusively for conservation purposes |
| 68 | is exempt from ad valorem taxation. |
| 69 | (3)(a) Land that is dedicated in perpetuity for |
| 70 | conservation purposes and that is used for allowed commercial |
| 71 | uses is exempt from ad valorem taxation to the extent of 50 |
| 72 | percent of the assessed value of the land. |
| 73 | (b) Real property that is encumbered by a conservation |
| 74 | easement purchased by the federal or state government or by a |
| 75 | local government before May 1, 2009, is exempt from ad valorem |
| 76 | taxation. |
| 77 | (4) Land that comprises less than 40 contiguous acres does |
| 78 | not qualify for the exemption provided in this section unless, |
| 79 | in addition to meeting the other requirements of this section, |
| 80 | the use of the land for conservation purposes is determined by |
| 81 | the Board of Conservation to fulfill a clearly delineated state |
| 82 | conservation policy and yield a significant public benefit. The |
| 83 | determination of whether a significant public benefit exists |
| 84 | must include consideration of the fiscal impact the exemption |
| 85 | provided in this section will have on affected governments and |
| 86 | other taxpayers. |
| 87 | (5) Buildings, structures, and other improvements situated |
| 88 | on land receiving the exemption provided in this section and the |
| 89 | land area immediately surrounding the buildings, structures, and |
| 90 | improvements must be assessed separately pursuant to chapter |
| 91 | 193. |
| 92 | (6) Land that qualifies for the exemption provided in this |
| 93 | section the allowed commercial uses of which include agriculture |
| 94 | must comply with the most recent best management practices if |
| 95 | adopted by rule of the Department of Agriculture and Consumer |
| 96 | Services. |
| 97 | (7) As provided in s. 704.06(8) and (9), county or |
| 98 | municipal governments with jurisdiction over lands receiving the |
| 99 | exemption provided in this section have a third-party right of |
| 100 | enforcement to enforce the terms of the applicable conservation |
| 101 | easement. |
| 102 | (8) The Board of Conservation is created to make the |
| 103 | determinations required by subsection (4). The board shall |
| 104 | consist of nine members appointed as follows: |
| 105 | (a) The Governor shall appoint one member representing a |
| 106 | rural-county government, one member representing a medium-county |
| 107 | government, one member representing a large-county government, |
| 108 | and two members each representing a nationally recognized |
| 109 | organization the purposes of which include the preservation of |
| 110 | conservation lands to serve on the board. |
| 111 | (b) The agency heads of the Department of Agriculture, the |
| 112 | Department of Environmental Protection, the Department of |
| 113 | Community Affairs, and the Fish and Wildlife Conservation |
| 114 | Commission shall each appoint one employee to serve on the |
| 115 | board. |
| 116 | Section 2. Subsection (1) of section 193.501, Florida |
| 117 | Statutes, is amended to read: |
| 118 | 193.501 Assessment of lands subject to a conservation |
| 119 | easement, environmentally endangered lands, or lands used for |
| 120 | outdoor recreational or park purposes when land development |
| 121 | rights have been conveyed or conservation restrictions have been |
| 122 | covenanted.-- |
| 123 | (1) The owner or owners in fee of any land subject to a |
| 124 | conservation easement as described in s. 704.06(1); land |
| 125 | qualified as environmentally endangered pursuant to paragraph |
| 126 | (6)(i) and so designated by formal resolution of the governing |
| 127 | board of the municipality or county within which such land is |
| 128 | located; land designated as conservation land in a comprehensive |
| 129 | plan adopted by the appropriate municipal or county governing |
| 130 | body; or any land which is utilized for outdoor recreational or |
| 131 | park purposes may, by appropriate instrument, for a term of not |
| 132 | less than 10 years: |
| 133 | (a) Convey the development right of such land to the |
| 134 | governing board of any public agency in this state within which |
| 135 | the land is located, or to the Board of Trustees of the Internal |
| 136 | Improvement Trust Fund, or to a charitable corporation or trust |
| 137 | as described in s. 704.06(3); or |
| 138 | (b) Covenant with the governing board of any public agency |
| 139 | in this state within which the land is located, or with the |
| 140 | Board of Trustees of the Internal Improvement Trust Fund, or |
| 141 | with a charitable corporation or trust as described in s. |
| 142 | 704.06(3), that such land be subject to one or more of the |
| 143 | conservation restrictions provided in s. 704.06(1) or not be |
| 144 | used by the owner for any purpose other than outdoor |
| 145 | recreational or park purposes. If land is covenanted and used |
| 146 | for an outdoor recreational purpose, the normal use and |
| 147 | maintenance of the land for that purpose, consistent with the |
| 148 | covenant, shall not be restricted. |
| 149 | Section 3. Subsection (12) is added to section 704.06, |
| 150 | Florida Statutes, to read: |
| 151 | 704.06 Conservation easements; creation; acquisition; |
| 152 | enforcement.-- |
| 153 | (12) An owner of property encumbered by a conservation |
| 154 | easement must abide by the requirements of chapter 712 or any |
| 155 | other similar law or rule to preserve the conservation easement |
| 156 | in perpetuity. |
| 157 | Section 4. Subsection (1) of section 195.073, Florida |
| 158 | Statutes, is amended to read: |
| 159 | 195.073 Classification of property.--All items required by |
| 160 | law to be on the assessment rolls must receive a classification |
| 161 | based upon the use of the property. The department shall |
| 162 | promulgate uniform definitions for all classifications. The |
| 163 | department may designate other subclassifications of property. |
| 164 | No assessment roll may be approved by the department which does |
| 165 | not show proper classifications. |
| 166 | (1) Real property must be classified according to the |
| 167 | assessment basis of the land into the following classes: |
| 168 | (a) Residential, subclassified into categories, one |
| 169 | category for homestead property and one for nonhomestead |
| 170 | property: |
| 171 | 1. Single family. |
| 172 | 2. Mobile homes. |
| 173 | 3. Multifamily. |
| 174 | 4. Condominiums. |
| 175 | 5. Cooperatives. |
| 176 | 6. Retirement homes. |
| 177 | (b) Commercial and industrial. |
| 178 | (c) Agricultural. |
| 179 | (d) Nonagricultural acreage. |
| 180 | (e) High-water recharge. |
| 181 | (f) Historic property used for commercial or certain |
| 182 | nonprofit purposes. |
| 183 | (g) Exempt, wholly or partially. |
| 184 | (h) Centrally assessed. |
| 185 | (i) Leasehold interests. |
| 186 | (j) Time-share property. |
| 187 | (k) Land assessed under s. 193.501. |
| 188 | (l)(k) Other. |
| 189 | Section 5. Subsections (6) and (9) of section 196.011, |
| 190 | Florida Statutes, are amended to read: |
| 191 | 196.011 Annual application required for exemption.-- |
| 192 | (6)(a) Once an original application for tax exemption has |
| 193 | been granted, in each succeeding year on or before February 1, |
| 194 | the property appraiser shall mail a renewal application to the |
| 195 | applicant, and the property appraiser shall accept from each |
| 196 | such applicant a renewal application on a form to be prescribed |
| 197 | by the Department of Revenue. Such renewal application shall be |
| 198 | accepted as evidence of exemption by the property appraiser |
| 199 | unless he or she denies the application. Upon denial, the |
| 200 | property appraiser shall serve, on or before July 1 of each |
| 201 | year, a notice setting forth the grounds for denial on the |
| 202 | applicant by first-class mail. Any applicant objecting to such |
| 203 | denial may file a petition as provided for in s. 194.011(3). |
| 204 | (b) Once an original application for tax exemption has |
| 205 | been granted under s. 196.26, in each succeeding year on or |
| 206 | before February 1, the property appraiser shall mail a renewal |
| 207 | application to the applicant on a form prescribed by the |
| 208 | Department of Revenue. The applicant must certify on the form |
| 209 | that the use of the property complies with the restrictions and |
| 210 | requirements of the conservation easement. The form shall |
| 211 | include a statement that the exemption granted under s. 196.26 |
| 212 | will not be renewed unless the application is returned to the |
| 213 | property appraiser. |
| 214 | (9)(a) A county may, at the request of the property |
| 215 | appraiser and by a majority vote of its governing body, waive |
| 216 | the requirement that an annual application or statement be made |
| 217 | for exemption of property within the county after an initial |
| 218 | application is made and the exemption granted. The waiver under |
| 219 | this subsection of the annual application or statement |
| 220 | requirement applies to all exemptions under this chapter except |
| 221 | the exemption under s. 196.1995. Notwithstanding such waiver, |
| 222 | refiling of an application or statement shall be required when |
| 223 | any property granted an exemption is sold or otherwise disposed |
| 224 | of, when the ownership changes in any manner, when the applicant |
| 225 | for homestead exemption ceases to use the property as his or her |
| 226 | homestead, or when the status of the owner changes so as to |
| 227 | change the exempt status of the property. In its deliberations |
| 228 | on whether to waive the annual application or statement |
| 229 | requirement, the governing body shall consider the possibility |
| 230 | of fraudulent exemption claims which may occur due to the waiver |
| 231 | of the annual application requirement. It is the duty of The |
| 232 | owner of any property granted an exemption who is not required |
| 233 | to file an annual application or statement shall to notify the |
| 234 | property appraiser promptly whenever the use of the property or |
| 235 | the status or condition of the owner changes so as to change the |
| 236 | exempt status of the property. If any property owner fails to so |
| 237 | notify the property appraiser and the property appraiser |
| 238 | determines that for any year within the prior 10 years the owner |
| 239 | was not entitled to receive such exemption, the owner of the |
| 240 | property is subject to the taxes exempted as a result of such |
| 241 | failure plus 15 percent interest per annum and a penalty of 50 |
| 242 | percent of the taxes exempted. Except for homestead exemptions |
| 243 | controlled by s. 196.161, it is the duty of the property |
| 244 | appraiser making such determination shall to record in the |
| 245 | public records of the county a notice of tax lien against any |
| 246 | property owned by that person or entity in the county, and such |
| 247 | property must be identified in the notice of tax lien. Such |
| 248 | property is subject to the payment of all taxes and penalties. |
| 249 | Such lien when filed shall attach to any property, identified in |
| 250 | the notice of tax lien, owned by the person who illegally or |
| 251 | improperly received the exemption. If Should such person no |
| 252 | longer owns own property in that county, but owns own property |
| 253 | in some other county or counties in the state, it shall be the |
| 254 | duty of the property appraiser shall to record a notice of tax |
| 255 | lien in such other county or counties, identifying the property |
| 256 | owned by such person or entity in such county or counties, and |
| 257 | it shall become a lien against such property in such county or |
| 258 | counties. |
| 259 | (b) The owner of any property granted an exemption under |
| 260 | s. 196.26 shall notify the property appraiser promptly whenever |
| 261 | the use of the property no longer complies with the restrictions |
| 262 | and requirements of the conservation easement. If the property |
| 263 | owner fails to so notify the property appraiser and the property |
| 264 | appraiser determines that for any year within the preceding 10 |
| 265 | years the owner was not entitled to receive the exemption, the |
| 266 | owner of the property is subject to taxes exempted as a result |
| 267 | of the failure plus 18 percent interest per annum and a penalty |
| 268 | of 100 percent of the taxes exempted. The provisions for tax |
| 269 | liens in paragraph (a) apply to property granted an exemption |
| 270 | under s. 196.26. |
| 271 | (c)(b) A county may, at the request of the property |
| 272 | appraiser and by a majority vote of its governing body, waive |
| 273 | the requirement that an annual application be made for the |
| 274 | veteran's disability discount granted pursuant to s. 6(g), Art. |
| 275 | VII of the State Constitution after an initial application is |
| 276 | made and the discount granted. It is the duty of The disabled |
| 277 | veteran receiving a discount for which annual application has |
| 278 | been waived shall to notify the property appraiser promptly |
| 279 | whenever the use of the property or the percentage of disability |
| 280 | to which the veteran is entitled changes. If a disabled veteran |
| 281 | fails to notify the property appraiser and the property |
| 282 | appraiser determines that for any year within the prior 10 years |
| 283 | the veteran was not entitled to receive all or a portion of such |
| 284 | discount, the penalties and processes in paragraph (a) relating |
| 285 | to the failure to notify the property appraiser of ineligibility |
| 286 | for an exemption shall apply. |
| 287 | (d)(c) For any exemption under s. 196.101(2), the |
| 288 | statement concerning gross income must be filed with the |
| 289 | property appraiser not later than March 1 of every year. |
| 290 | (e)(d) If an exemption for which the annual application is |
| 291 | waived pursuant to this subsection will be denied by the |
| 292 | property appraiser in the absence of the refiling of the |
| 293 | application, notification of an intent to deny the exemption |
| 294 | shall be mailed to the owner of the property prior to February |
| 295 | 1. If the property appraiser fails to timely mail such notice, |
| 296 | the application deadline for such property owner pursuant to |
| 297 | subsection (1) shall be extended to 28 days after the date on |
| 298 | which the property appraiser mails such notice. |
| 299 | Section 6. Paragraph (c) of subsection (2) of section |
| 300 | 192.0105, Florida Statutes, is amended to read: |
| 301 | 192.0105 Taxpayer rights.--There is created a Florida |
| 302 | Taxpayer's Bill of Rights for property taxes and assessments to |
| 303 | guarantee that the rights, privacy, and property of the |
| 304 | taxpayers of this state are adequately safeguarded and protected |
| 305 | during tax levy, assessment, collection, and enforcement |
| 306 | processes administered under the revenue laws of this state. The |
| 307 | Taxpayer's Bill of Rights compiles, in one document, brief but |
| 308 | comprehensive statements that summarize the rights and |
| 309 | obligations of the property appraisers, tax collectors, clerks |
| 310 | of the court, local governing boards, the Department of Revenue, |
| 311 | and taxpayers. Additional rights afforded to payors of taxes and |
| 312 | assessments imposed under the revenue laws of this state are |
| 313 | provided in s. 213.015. The rights afforded taxpayers to assure |
| 314 | that their privacy and property are safeguarded and protected |
| 315 | during tax levy, assessment, and collection are available only |
| 316 | insofar as they are implemented in other parts of the Florida |
| 317 | Statutes or rules of the Department of Revenue. The rights so |
| 318 | guaranteed to state taxpayers in the Florida Statutes and the |
| 319 | departmental rules include: |
| 320 | (2) THE RIGHT TO DUE PROCESS.-- |
| 321 | (c) The right to file a petition for exemption or |
| 322 | agricultural classification with the value adjustment board when |
| 323 | an application deadline is missed, upon demonstration of |
| 324 | particular extenuating circumstances for filing late (see ss. |
| 325 | 193.461(3)(a) and 196.011(1), (7), (8), and (9)(e)(d)). |
| 326 | Section 7. Section 218.125, Florida Statutes, is created |
| 327 | to read: |
| 328 | 218.125 Replacement for tax loss associated with certain |
| 329 | constitutional amendments affecting fiscally constrained |
| 330 | counties.-- |
| 331 | (1) Beginning in the 2010-2011 fiscal year, the |
| 332 | Legislature shall appropriate moneys to replace the reductions |
| 333 | in ad valorem tax revenue experienced by fiscally constrained |
| 334 | counties, as defined in s. 218.67(1), with a population not |
| 335 | greater than 25,000, which occur as a direct result of the |
| 336 | implementation of revisions of ss. 3(f) and 4(b), Art. VII of |
| 337 | the State Constitution which were approved in the general |
| 338 | election held in November 2008. The moneys appropriated for this |
| 339 | purpose shall be distributed in January of each fiscal year |
| 340 | among the fiscally constrained counties based on each county's |
| 341 | proportion of the total reduction in ad valorem tax revenue |
| 342 | resulting from the implementation of the revisions. |
| 343 | (2) On or before November 15 of each year, beginning in |
| 344 | 2010, each fiscally constrained county shall apply to the |
| 345 | Department of Revenue to participate in the distribution of the |
| 346 | appropriation and provide documentation supporting the county's |
| 347 | estimated reduction in ad valorem tax revenue in the form and |
| 348 | manner prescribed by the Department of Revenue. The |
| 349 | documentation must include an estimate of the reduction in |
| 350 | taxable value directly attributable to revisions of Art. VII of |
| 351 | the State Constitution for all county taxing jurisdictions |
| 352 | within the county and shall be prepared by the property |
| 353 | appraiser in each fiscally constrained county. The documentation |
| 354 | must also include the county millage rates applicable in all |
| 355 | such jurisdictions for the current year and the prior year, |
| 356 | rolled-back rates determined as provided in s. 200.065 for each |
| 357 | county taxing jurisdiction, and maximum millage rates that could |
| 358 | have been levied by majority vote pursuant to s. 200.185. For |
| 359 | purposes of this section, each fiscally constrained county's |
| 360 | reduction in ad valorem tax revenue shall be calculated as 95 |
| 361 | percent of the estimated reduction in taxable value times the |
| 362 | lesser of the 2010 applicable millage rate or the applicable |
| 363 | millage rate for each county taxing jurisdiction in the prior |
| 364 | year. |
| 365 | Section 8. The Department of Revenue may adopt emergency |
| 366 | rules to administer s. 196.26, Florida Statutes, as created by |
| 367 | this act. The emergency rules shall remain in effect for 6 |
| 368 | months after adoption and may be renewed during the pendency of |
| 369 | procedures to adopt rules addressing the subject of the |
| 370 | emergency rules. |
| 371 | Section 9. This act shall take effect upon becoming a law |
| 372 | and shall apply to property tax assessments made on or after |
| 373 | January 1, 2010. |