Florida Senate - 2020 SB 1236
By Senator Gruters
23-01408-20 20201236__
1 A bill to be entitled
2 An act relating to the educational property tax
3 exemption; amending s. 196.198, F.S.; exempting land
4 and real property improvements used exclusively for
5 educational purposes from ad valorem taxes if an
6 educational institution, under a ground lease or other
7 contractual arrangement, meets certain criteria;
8 providing that the educational institution shall
9 receive the full benefit from the exemption; requiring
10 the property owner to make certain disclosures to the
11 educational institution; providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Section 196.198, Florida Statutes, is amended to
16 read:
17 196.198 Educational property exemption.—Educational
18 institutions within this state and their property used by them
19 or by any other exempt entity or educational institution
20 exclusively for educational purposes are exempt from taxation.
21 Sheltered workshops providing rehabilitation and retraining of
22 individuals who have disabilities and exempted by a certificate
23 under s. (d) of the federal Fair Labor Standards Act of 1938, as
24 amended, are declared wholly educational in purpose and are
25 exempt from certification, accreditation, and membership
26 requirements set forth in s. 196.012. Those portions of property
27 of college fraternities and sororities certified by the
28 president of the college or university to the appropriate
29 property appraiser as being essential to the educational process
30 are exempt from ad valorem taxation. The use of property by
31 public fairs and expositions chartered by chapter 616 is
32 presumed to be an educational use of such property and is exempt
33 from ad valorem taxation to the extent of such use. Property
34 used exclusively for educational purposes shall be deemed owned
35 by an educational institution if the entity owning 100 percent
36 of the educational institution is owned by the identical persons
37 who own the property, or if the entity owning 100 percent of the
38 educational institution and the entity owning the property are
39 owned by the identical natural persons. Land, buildings, and
40 other improvements to real property used exclusively for
41 educational purposes shall be deemed owned by an educational
42 institution if the entity owning 100 percent of the land is a
43 nonprofit entity and the land is used, under a ground lease or
44 other contractual arrangement, by an educational institution
45 that owns the buildings and other improvements to the real
46 property, is a nonprofit entity under s. 501(c)(3) of the
47 Internal Revenue Code, and provides education limited to
48 students in prekindergarten through grade 8. Land, buildings,
49 and other improvements to real property used exclusively for
50 educational purposes are also exempt from ad valorem taxes if an
51 educational institution, under a ground lease or other
52 contractual arrangement, owns the buildings and other
53 improvements to the real property and is responsible for any
54 taxes owed under the ground lease or contractual arrangement.
55 For such leasehold properties, the educational institution shall
56 receive the full benefit from the exemption. The owner of the
57 property shall disclose to the educational institution the full
58 amount of the benefit derived from the exemption and the method
59 for ensuring the educational institution receives the benefit.
60 If legal title to property is held by a governmental agency that
61 leases the property to a lessee, the property shall be deemed to
62 be owned by the governmental agency and used exclusively for
63 educational purposes if the governmental agency continues to use
64 such property exclusively for educational purposes pursuant to a
65 sublease or other contractual agreement with that lessee. If the
66 title to land is held by the trustee of an irrevocable inter
67 vivos trust and if the trust grantor owns 100 percent of the
68 entity that owns an educational institution that is using the
69 land exclusively for educational purposes, the land is deemed to
70 be property owned by the educational institution for purposes of
71 this exemption. Property owned by an educational institution
72 shall be deemed to be used for an educational purpose if the
73 institution has taken affirmative steps to prepare the property
74 for educational use. The term “affirmative steps” means
75 environmental or land use permitting activities, creation of
76 architectural plans or schematic drawings, land clearing or site
77 preparation, construction or renovation activities, or other
78 similar activities that demonstrate commitment of the property
79 to an educational use.
80 Section 2. This act shall take effect July 1, 2020.