HB 7127

1
A bill to be entitled
2An act relating to working waterfront property; creating
3s. 193.704, F.S.; providing definitions; specifying
4property that is eligible for classification as working
5waterfront property; requiring the assessment of working
6waterfront property based on current use; requiring an
7application for classification of property as working
8waterfront property; authorizing a property appraiser to
9approve an application that is not filed by a certain
10deadline due to extenuating circumstances; providing for
11the waiver of annual application requirements; providing
12for the loss of classification upon a change of ownership
13or use; requiring that property owners notify the property
14appraiser of changes in use or ownership of property;
15imposing a penalty on a property owner who fails to notify
16the property appraiser of an event resulting in the
17unlawful or improper classification of property as working
18waterfront property; requiring the imposition of tax liens
19to recover penalties and interest; providing for the
20assessment of a portion of property within a working
21waterfront property which is not used as working
22waterfront property; requiring that a property appraiser
23make a list relating to applications to certify property
24as working waterfront property; providing an appeal
25process for an application that has been denied; amending
26s. 195.073, F.S.; providing for the classification of land
27as working waterfront property on an assessment roll;
28providing an alternate application deadline date for
29calendar year 2010; providing for severability; providing
30emergency rulemaking authority for the Department of
31Revenue; providing for retroactive operation; providing an
32effective date.
33
34Be It Enacted by the Legislature of the State of Florida:
35
36     Section 1.  Section 193.704, Florida Statutes, is created
37to read:
38     193.704  Working waterfront property; definitions;
39classification and assessment; denial of classification and
40appeal.-
41     (1)  DEFINITIONS.-For purposes of granting a working
42waterfront property classification under this section for
43January 1, 2010, and thereafter, the term:
44     (a)  "Accessible to the public" means routinely available
45to the public from sunrise to sunset, with or without charge,
46with appropriate accommodations, including, but not limited to,
47public parking or public boat ramps that are available for use
48by the general public.
49     (b)  "Commercial fishing facility" means docks, piers,
50processing houses, or other facilities that support a commercial
51fishing operation or an aquaculture operation certified under
52chapter 597.
53     (c)  "Commercial fishing operation" has the same meaning as
54provided in s. 379.2351.
55     (d)  "Drystack" means a vessel storage facility or building
56in which storage spaces for vessels are available for use by the
57public on a first-come, first-served basis. The term excludes
58storage that is purchased, received, or rented as a result of
59homeownership or tenancy.
60     (e)  "Land used predominantly for commercial fishing
61purposes" means land used in good faith in a for-profit
62commercial fishing operation for the taking or harvesting of
63freshwater fish or saltwater products, as defined in s. 379.101,
64for which a commercial license to take, harvest, or sell such
65fish or products is required under chapter 379, or land used in
66an aquaculture operation certified under chapter 597.
67     (f)  "Marina" means a licensed commercial facility
68available for use by the public that provides secured public
69moorings or drystacks for vessels on a first-come, first-served
70basis. The term excludes mooring or storage that is purchased,
71received, or rented as a result of homeownership or tenancy.
72     (g)  "Marine manufacturing facility" means a facility that
73manufactures vessels for use in waters that are navigable.
74     (h)  "Marine vessel construction and repair facility" means
75a facility that constructs and repairs vessels that travel over
76waters that are navigable, including, but not limited to,
77shipyards and boatyards.
78     (i)  "Open to the public" means for hire to the general
79public and accessible during normal operating hours.
80     (j)  "Repair" includes retrofitting and maintenance of
81vessels.
82     (k)  "Right-of-way" has the same meaning as provided in s.
83334.03.
84     (l)  "Support facility" means a facility that typically is
85colocated with marine vessel construction and repair facilities,
86including, but not limited to, shops, equipment, and salvage
87facilities.
88     (m)  "Water-dependent" means that the activity performed in
89the facility can be conducted only on, in, over, or adjacent to
90waters that are navigable and requires direct access to water
91and involves the use of water as an integral part of such
92activity.
93     (n)  "Waterfront" means property that is on, over, or
94abutting waters that are navigable. Property that is separated
95from property abutting waters that are navigable by a right-of-
96way may be considered waterfront property, if:
97     1.  The properties on both sides of the right-of-way are
98under common ownership.
99     2.  The properties on both sides of the right-of-way are
100part of the same business enterprise.
101     3.  The property that is separated from the water by the
102right-of-way has direct access to the water by crossing the
103right-of-way.
104     (o)  "Waters that are navigable" means waters that support
105navigation by floating vessels of any description for the
106purpose of transportation, recreation, or commerce.
107     (2)  CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.-
108     (a)  The following waterfront properties are eligible for
109classification as working waterfront property:
110     1.  Land used predominantly for commercial fishing
111purposes.
112     2.  Land that is accessible to the public and used for
113vessel launches into waters that are navigable.
114     3.  Marinas and drystacks that are open to the public.
115     4.  Water-dependent marine manufacturing facilities.
116     5.  Water-dependent commercial fishing facilities.
117     6.  Water-dependent marine vessel construction and repair
118facilities and their support facilities.
119     7.  Water-dependent facilities located in a county defined
120in s. 125.011(1):
121     a.  Used for the commercial transportation of goods and
122people to and from foreign ports; or
123     b.  Used to provide towing, storage, and salvage in support
124of the facilities described in sub-subparagraph a.
125     (b)  Property classified as working waterfront property
126under this section shall be assessed on the basis of current
127use.
128     1.  If the income approach to valuation is appropriate to
129the property and if adequate local data on market rental rates,
130expense rates, and vacancy rates are available to the property
131appraiser, the assessed value shall be calculated using the
132income approach to value, using a capitalization rate based upon
133the debt coverage ratio formula, adjusted for the effective tax
134rate and the percentage of equity multiplied by the equity yield
135rate. The capitalization rate shall be calculated and updated
136annually and shall be based on local data.
137     2.  If the conditions required for assessment under
138subparagraph 1. are not satisfied, the property appraiser shall
139value the property at its present cash value as if it were
140required to remain in its current use into the foreseeable
141future.
142     3.  In no event shall the assessed value of the property
143exceed just value.
144     4.  When a parcel contains uses eligible for assessment
145under this section and uses that are not eligible for assessment
146under this section, those portions of the property that are not
147eligible for assessment under this section must be assessed
148separately as otherwise provided by this chapter.
149     (c)1.  Property may not be classified as working waterfront
150property unless an application for such classification is filed
151with the property appraiser on or before March 1 of each year in
152the county in which the property is located. Before approving
153such classification, the property appraiser may require the
154applicant to establish that the property is actually used as
155required under this section. The property appraiser may require
156the applicant to furnish the property appraiser such information
157as may reasonably be required to establish that such property
158was actually used for working waterfront purposes, and to
159establish the classified use value of the property, including
160income and expense data. The owner or lessee of the property
161classified as working waterfront property in the prior year may
162reapply on a short form provided by the Department of Revenue.
163The lessee of property may make original application or reapply
164on a short form if the lease, or an affidavit executed by the
165owner, provides that the lessee is empowered to make application
166for the working waterfront classification on behalf of the owner
167and a copy of the lease or affidavit accompanies the
168application. An applicant may withdraw an application on or
169before the 25th day following the mailing of the notice of
170proposed property taxes pursuant to s. 200.069 in the year the
171application was filed.
172     2.  Failure of a property owner or lessee to apply for a
173classification as working waterfront property by March 1
174constitutes a waiver for 1 year of the privilege granted in this
175section. However, a person who is qualified to receive a working
176waterfront classification but who fails to timely apply for
177classification may file an application for classification with
178the property appraiser on or before the 25th day following the
179mailing of proposed property taxes pursuant to s. 200.069. Upon
180review of the application, if the applicant is qualified to
181receive the classification and demonstrates particular
182extenuating circumstances that warrant the classification, the
183property appraiser may grant the classification.
184     3.  A county, at the request of the property appraiser and
185by a majority vote of its governing body, may waive the
186requirement that an annual application or short form be filed
187with the property appraiser for renewal of the classification of
188property within the county as working waterfront property. Such
189waiver may be revoked by a majority vote of the county governing
190body.
191     4.  Notwithstanding subparagraph 3., a new application for
192classification as working waterfront property must be filed with
193the property appraiser whenever any property granted the
194classification as working waterfront property is sold or
195otherwise disposed of, whenever ownership or the lessee changes
196in any manner, whenever the owner or the lessee ceases to use
197the property as working waterfront property, or whenever the
198status of the owner or the lessee changes so as to change the
199classified status of the property.
200     5.  The property appraiser shall remove from the
201classification as working waterfront property any property for
202which the classified use has been abandoned or discontinued, or
203if the property has been diverted to an unclassified use. Such
204removed property shall be assessed at just value as provided in
205s. 193.011.
206     6.a.  The owner of any property classified as working
207waterfront property who is not required to file an annual
208application under this section, and the lessee if the
209application was made by the lessee, shall notify the property
210appraiser promptly whenever the use of the property or the
211status or condition of the owner or lessee changes so as to
212change the classified status of the property. If any such
213property owner or lessee fails to notify the property appraiser
214and the property appraiser determines that for any year within
215the prior 10 years the owner was not entitled to receive such
216classification, the owner of the property is subject to taxes
217otherwise due and owing as a result of such failure plus 15
218percent interest per annum and a penalty of 50 percent of the
219additional taxes owed. However, the penalty may be waived if the
220owner or lessee can demonstrate that he or she took reasonable
221care to notify the property appraiser of the change in use,
222status, or condition of the property.
223     b.  The property appraiser making such determination shall
224record in the public records of the county in which the working
225waterfront property is located a notice of tax lien against any
226property owned by the working waterfront property owner, and
227such property must be identified in the notice of tax lien. Such
228property is subject to the payment of all taxes and penalties.
229Such lien, when filed, attaches to any property identified in
230the notice of tax lien owned by the person or entity that
231illegally or improperly received the classification. If such
232person or entity no longer owns property in that county but owns
233property in another county or counties in the state, the
234property appraiser shall record in such other county or counties
235a notice of tax lien identifying the property owned by the
236working waterfront property owner in such county or counties
237which shall become a lien against the identified property.
238     7.  The property appraiser shall have available at his or
239her office a list by ownership of all applications for
240classification as working waterfront property received, showing
241the acreage, the just valuation under s. 193.011, the value of
242the land under the provisions of this subsection, and whether
243the classification was granted.
244     (3)  DENIAL OF CLASSIFICATION; APPEAL.-
245     (a)  If an application for working waterfront
246classification is made by March 1, the property appraiser shall
247notify the applicant in writing of a denial of the application
248on or before July 1 of the year for which the application was
249filed. The notification shall advise the applicant of his or her
250right to appeal to the value adjustment board and of the appeal
251filing deadline.
252     (b)  Any applicant whose application for classification as
253working waterfront property is denied by the property appraiser
254may appeal to the value adjustment board by filing a petition
255requesting that the classification be granted. The petition may
256be filed on or before the 25th day following the mailing of the
257assessment notice by the property appraiser as required under s.
258194.011(1). The petitioner shall pay a nonrefundable fee of $15
259upon filing the petition. Upon the value adjustment board's
260review of the petition, if the petitioner is qualified to
261receive the classification, the value adjustment board may grant
262the petition and classification.
263     (c)  A denial of a petition for classification by the value
264adjustment board may be appealed to a court of competent
265jurisdiction.
266     (d)  Property that has received a working waterfront
267classification from the value adjustment board or a court of
268competent jurisdiction under this subsection is entitled to
269receive such classification in any subsequent year until such
270use is changed, abandoned, or discontinued, or the ownership
271changes in any manner as provided in subparagraph (2)(c)4. The
272property appraiser shall, no later than January 31 of each year,
273provide notice to the property owner or lessee receiving a
274classification under this subsection requiring the property
275owner or a lessee qualified to make application to certify that
276the ownership and the use of the property has not changed. The
277department shall prescribe by rule the form of the notice to be
278used by the property appraiser.
279     Section 2.  Subsection (1) of section 195.073, Florida
280Statutes, is amended to read:
281     195.073  Classification of property.-All items required by
282law to be on the assessment rolls must receive a classification
283based upon the use of the property. The department shall
284promulgate uniform definitions for all classifications. The
285department may designate other subclassifications of property.
286No assessment roll may be approved by the department which does
287not show proper classifications.
288     (1)  Real property must be classified according to the
289assessment basis of the land into the following classes:
290     (a)  Residential, subclassified into categories, one
291category for homestead property and one for nonhomestead
292property:
293     1.  Single family.
294     2.  Mobile homes.
295     3.  Multifamily.
296     4.  Condominiums.
297     5.  Cooperatives.
298     6.  Retirement homes.
299     (b)  Commercial and industrial.
300     (c)  Agricultural.
301     (d)  Nonagricultural acreage.
302     (e)  High-water recharge.
303     (f)  Historic property used for commercial or certain
304nonprofit purposes.
305     (g)  Exempt, wholly or partially.
306     (h)  Centrally assessed.
307     (i)  Leasehold interests.
308     (j)  Time-share property.
309     (k)  Land assessed under s. 193.501.
310     (l)  Working waterfront property.
311     (m)(l)  Other.
312     Section 3.  For the 2010 calendar year, an application for
313classification as working waterfront under s. 193.704, Florida
314Statutes, must be filed on or before July 1 instead of on or
315before March 1.
316     Section 4.  If any provision of this act or the application
317thereof to any person or circumstance is held invalid, the
318invalidity does not affect other provisions or applications of
319the act which can be given effect without the invalid provision
320or application, and to this end the provisions of this act are
321severable.
322     Section 5.  The Department of Revenue may adopt emergency
323rules to administer s. 193.704, Florida Statutes, as created by
324this act. The emergency rules shall remain in effect for 6
325months after adoption and may be renewed during the pendency of
326procedures to adopt rules addressing the subject of the
327emergency rules.
328     Section 6.  This act shall take effect upon becoming a law
329and shall operate retroactively to January 1, 2010.


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