Bill Text: FL S0346 | 2010 | Regular Session | Comm Sub
Bill Title: Working Waterfront Property [WPSC]
Spectrum: Bipartisan Bill
Status: (Failed) 2010-04-30 - Died in Messages [S0346 Detail]
Download: Florida-2010-S0346-Comm_Sub.html
Florida Senate - 2010 CS for CS for SB 346 By the Committees on Finance and Tax; and Community Affairs; and Senators Dean, Gaetz, Lynn, Smith, Aronberg, Rich, Storms, and Sobel 593-04856-10 2010346c2 1 A bill to be entitled 2 An act relating to working waterfront property; 3 creating s. 193.704, F.S.; providing definitions; 4 specifying properties that are eligible for 5 classification as working waterfront property; 6 requiring the assessment of working waterfront 7 property based on current use; specifying a 8 methodology for determining assessed value; requiring 9 property appraisers to consider specified factors in 10 assessing certain property; providing for assessment 11 of a portion of property within a working waterfront 12 property which is not used as working waterfront 13 property; requiring an application for classification 14 of property as working waterfront property; specifying 15 application requirements; authorizing a property 16 appraiser to approve an application not filed by a 17 certain deadline due to extenuating circumstances; 18 providing for waiver of annual application 19 requirements; providing for loss of classification 20 upon a change of ownership or use; requiring property 21 owners to notify the property appraiser of changes in 22 use or ownership of property; imposing a penalty for 23 failure to notify the property appraiser of an event 24 resulting in the unlawful or improper classification 25 of property as working waterfront property; requiring 26 imposition of tax liens to recover penalties and 27 interest; requiring property appraisers to make a list 28 relating to applications to certify property as 29 working waterfront property; providing an appeal 30 process for applications that have been denied; 31 amending s. 195.073, F.S.; providing for the 32 classification of land as working waterfront property 33 on an assessment roll; providing emergency rulemaking 34 authority; providing for retroactive application; 35 providing an alternate application date for 2010; 36 providing an effective date. 37 38 Be It Enacted by the Legislature of the State of Florida: 39 40 Section 1. Section 193.704, Florida Statutes, is created to 41 read: 42 193.704 Working waterfront property; definitions; 43 classification and assessment; denial of classification and 44 appeal.— 45 (1) DEFINITIONS.—For purposes of granting a working 46 waterfront property classification under this section for 47 January 1, 2011, and thereafter, the term: 48 (a) “Accessible to the public” means routinely available to 49 the public from sunrise to sunset, with or without charge, with 50 appropriate accommodations, including, but not limited to, 51 public parking or public boat ramps that are available for use 52 by the general public. 53 (b) “Commercial fishing facility” means docks, piers, 54 processing houses, or other facilities that support a commercial 55 fishing operation or an aquaculture operation certified under 56 chapter 597. 57 (c) “Commercial fishing operation” has the same meaning as 58 that provided in s. 379.2351. 59 (d) “Drystack” means a licensed commercial vessel storage 60 facility or building in which storage spaces for vessels are 61 available for use by the public on a first-come, first-served 62 basis. The term excludes storage that is purchased, received, or 63 rented as a result of homeownership or tenancy. 64 (e) “Land used predominantly for commercial fishing 65 purposes” means land used in good faith in a for-profit 66 commercial fishing operation for the taking or harvesting of 67 freshwater fish or saltwater products, as defined in s. 379.101, 68 for which a commercial license to take, harvest, or sell such 69 fish or products is required under chapter 379, or land used in 70 an aquaculture operation certified under chapter 597. 71 (f) “Marina” means a licensed commercial facility that 72 provides open-to-the-public dockage, moorings, or drystacks for 73 vessels on a first-come, first-served basis. The term excludes 74 dockage, mooring, or storage that is purchased, received, or 75 rented as a result of homeownership or tenancy. 76 (g) “Marine manufacturing facility” means a facility that 77 manufactures vessels for use in waters that are navigable. 78 (h) “Marine vessel construction and repair facility” means 79 a facility that constructs and repairs vessels that travel over 80 waters that are navigable, including, but not limited to, 81 shipyards and boatyards. 82 (i) “Open to the public” means for hire to the general 83 public and accessible during normal operating hours. 84 (j) “Repair” includes retrofitting and maintenance of 85 vessels. 86 (k) “Support facility” means a facility that typically is 87 collocated with marine vessel construction and repair 88 facilities, including, but not limited to, shops, equipment, and 89 salvage facilities. 90 (l) “Water-dependent” means that the activities performed 91 in the facility can be conducted only on, in, over, or adjacent 92 to waters that are navigable, require direct access to water, 93 and involve the use of water as an integral part of such 94 activity. 95 (m) “Waterfront” means property that is on, over, or 96 abutting waters that are navigable. 97 (n) “Waters that are navigable” means water bodies that are 98 capable of supporting boating and that are used or may be used 99 in their ordinary condition as highways for commerce for which 100 trade or travel are or may be conducted in the customary modes 101 of trade or travel on water. 102 (2) CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.— 103 (a) The following waterfront properties are eligible for 104 classification as working waterfront property: 105 1. Land used predominantly for commercial fishing purposes. 106 2. Land that is accessible to the public and used for 107 vessel launches into waters that are navigable. 108 3. Marinas and drystacks that are open to the public. 109 4. Water-dependent marine manufacturing facilities. 110 5. Water-dependent commercial fishing facilities. 111 6. Water-dependent marine vessel construction and repair 112 facilities and their support facilities. 113 (b) Property classified as working waterfront property 114 under this section shall be assessed on the basis of current 115 use. 116 1. If the income approach to value is appropriate to the 117 property and if adequate local data on comparable rental rates, 118 expense rates, and vacancy rates are available to the property 119 appraiser, the assessed value shall be established using the 120 income approach to value, using an overall capitalization rate 121 based upon the debt coverage ratio formula, adjusted for the 122 effective tax rate. The overall capitalization rate shall be 123 calculated annually and shall be based on local data. 124 2. If the conditions required for assessment under 125 subparagraph 1. are not satisfied, the property appraiser shall 126 value the property at its present cash value as if it were 127 required to remain in its current use into the foreseeable 128 future. 129 3. In no event may the assessed value of the property 130 exceed just value. 131 4. If a parcel contains both uses eligible for assessment 132 under this section and uses that are not eligible for assessment 133 under this section, those portions of the property that are not 134 eligible for assessment under this section must be assessed 135 separately as otherwise provided by this chapter. 136 (c)1. Property may not be classified as working waterfront 137 property unless an application for such classification is filed 138 with the property appraiser on or before March 1 of each year in 139 the county in which the property is located. Before approving 140 such classification, the property appraiser may require the 141 applicant to establish that the property is actually used as 142 required under this section. The property appraiser may require 143 the applicant to furnish the property appraiser such information 144 as may reasonably be required to establish that such property 145 was actually used for working waterfront purposes and to 146 establish the classified use value of the property, including 147 income and expense data. The owner or lessee of property 148 classified as working waterfront property in the prior year may 149 reapply on a short form provided by the department. The lessee 150 of property may make original application or reapply on a short 151 form if the lease, or an affidavit executed by the owner, 152 provides that the lessee is empowered to make application for 153 the working waterfront classification on behalf of the owner and 154 a copy of the lease or affidavit accompanies the application. An 155 applicant may withdraw an application on or before the 25th day 156 following the mailing of the notice of proposed property taxes 157 pursuant to s. 200.069 in the year the application was filed. 158 2. Any property owner or lessee who fails to file an 159 application for classification as working waterfront property by 160 March 1 may file an application for classification with the 161 property appraiser on or before the 25th day following the 162 mailing of the notice of proposed property taxes pursuant to s. 163 200.069. Upon review of the application, if the applicant is 164 qualified to receive the classification and demonstrates 165 particular extenuating circumstances that warrant the 166 classification, the property appraiser may grant the 167 classification. 168 3. A county, at the request of the property appraiser and 169 by a majority vote of its governing body, may waive the 170 requirement that an annual application or short form be filed 171 with the property appraiser for renewal of the classification of 172 property within the county as working waterfront property. Such 173 waiver may be revoked by a majority of the county governing 174 body. 175 4. Notwithstanding subparagraph 2., a new application for 176 classification as working waterfront property must be filed with 177 the property appraiser whenever any property granted the 178 classification as working waterfront property is sold or 179 otherwise disposed of, whenever ownership or the lessee changes 180 in any manner, whenever the owner or the lessee ceases to use 181 the property as working waterfront property, or whenever the 182 status of the owner or the lessee changes so as to change the 183 classified status of the property. 184 5. The property appraiser shall remove from the 185 classification as working waterfront property any property for 186 which the classified use has been abandoned or discontinued or 187 the property has been diverted to an unclassified use. Such 188 removed property shall be assessed at just value as provided in 189 s. 193.011. 190 6.a. The owner of any property classified as working 191 waterfront property who is not required to file an annual 192 application under this section, and the lessee if the 193 application was made by the lessee, shall notify the property 194 appraiser promptly whenever the use of the property or the 195 status or condition of the owner or lessee changes, so as to 196 change the classified status of the property. If any such 197 property owner or lessee fails to notify the property appraiser 198 and the property appraiser determines that for any year within 199 the prior 10 years the owner was not entitled to receive such 200 classification, the owner of the property is subject to taxes 201 otherwise due and owing as a result of such failure plus 15 202 percent interest per annum and a penalty of 50 percent of the 203 additional taxes owed. However, the penalty may be waived if the 204 owner or lessee can demonstrate that he or she took reasonable 205 care to notify the property appraiser of the change in use, 206 status, or condition of the property. 207 b. The property appraiser making such determination shall 208 record in the public records of the county in which the working 209 waterfront property is located a notice of tax lien against any 210 property owned by the working waterfront property owner, and 211 such property must be identified in the notice of tax lien. Such 212 property is subject to the payment of all taxes and penalties. 213 Such lien, when filed, attaches to any property identified in 214 the notice of tax lien owned by the person or entity that 215 illegally or improperly received the classification. If such 216 person or entity no longer owns property in that county but owns 217 property in another county or counties in the state, the 218 property appraiser shall record in such other county or counties 219 a notice of tax lien identifying the property owned by the 220 working waterfront property owner in such county or counties, 221 which shall become a lien against the identified property. 222 7. The property appraiser shall have available at his or 223 her office a list by ownership of all applications received for 224 classification of property as working waterfront property, 225 showing the acreage, the just value under s. 193.011, the value 226 of the land under the provisions of this subsection, and whether 227 the classification was granted. 228 (3) DENIAL OF CLASSIFICATION; APPEAL.— 229 (a) The property appraiser shall notify an applicant for a 230 working waterfront classification in writing of a denial of an 231 application for such classification on or before July 1 of the 232 year for which the application was filed. The notification shall 233 advise the applicant of his or her right to appeal to the value 234 adjustment board and of the appeal filing deadline. 235 (b) Any applicant whose application for classification as 236 working waterfront property is denied by the property appraiser 237 may appeal to the value adjustment board by filing a petition 238 requesting that the classification be granted. The petition may 239 be filed on or before the 25th day following the mailing of the 240 assessment notice by the property appraiser as required under s. 241 194.011(1). Notwithstanding the provisions of s. 194.013, the 242 petitioner shall pay a nonrefundable fee of $15 upon filing the 243 petition. Upon the value adjustment board’s review of the 244 petition, if the petitioner is qualified to receive the 245 classification and demonstrates particular extenuating 246 circumstances that warrant granting the classification, the 247 value adjustment board may grant the petition and 248 classification. 249 (c) A denial of a petition for classification by the value 250 adjustment board may be appealed to a court of competent 251 jurisdiction. 252 (d)1. Property that has received a working waterfront 253 classification from the value adjustment board or a court of 254 competent jurisdiction under this subsection is entitled to 255 receive such classification in any subsequent year until such 256 use is changed, abandoned, or discontinued or the ownership 257 changes in any manner as provided in subparagraph (2)(c)4. The 258 property appraiser shall, no later than January 31 of each year, 259 provide notice to the property owner or lessee receiving a 260 classification under this subsection requiring the property 261 owner or a lessee qualified to make application to certify that 262 the ownership and the use of the property has not changed. The 263 department shall prescribe by rule the form of the notice to be 264 used by the property appraiser. 265 2. If a county has waived the requirement that an annual 266 application or short form be filed for classification of the 267 property under subsection (2), the county may, by majority vote 268 of its governing body, waive the notice and certification 269 requirements of this paragraph and shall provide the property 270 owner or lessee with the same notification as provided to 271 property owners granted a working waterfront classification by 272 the property appraiser. Such waiver may be revoked by a majority 273 vote of the county governing body. 274 Section 2. Subsection (1) of section 195.073, Florida 275 Statutes, is amended to read: 276 195.073 Classification of property.—All items required by 277 law to be on the assessment rolls must receive a classification 278 based upon the use of the property. The department shall 279 promulgate uniform definitions for all classifications. The 280 department may designate other subclassifications of property. 281 No assessment roll may be approved by the department which does 282 not show proper classifications. 283 (1) Real property must be classified according to the 284 assessment basis of the land into the following classes: 285 (a) Residential, subclassified into categories, one 286 category for homestead property and one for nonhomestead 287 property: 288 1. Single family. 289 2. Mobile homes. 290 3. Multifamily. 291 4. Condominiums. 292 5. Cooperatives. 293 6. Retirement homes. 294 (b) Commercial and industrial. 295 (c) Agricultural. 296 (d) Nonagricultural acreage. 297 (e) High-water recharge. 298 (f) Historic property used for commercial or certain 299 nonprofit purposes. 300 (g) Exempt, wholly or partially. 301 (h) Centrally assessed. 302 (i) Leasehold interests. 303 (j) Time-share property. 304 (k) Land assessed under s. 193.501. 305 (l) Working waterfront property. 306 (m)(l)Other. 307 Section 3. The Department of Revenue may adopt emergency 308 rules to administer s. 193.704, Florida Statutes, as created by 309 this act. The emergency rules shall remain in effect for 6 310 months after adoption and may be renewed during the pendency of 311 procedures to adopt rules addressing the subject of the 312 emergency rules. 313 Section 4. This act shall take effect upon becoming a law, 314 and applies retroactively to January 1, 2010. For the 2010 315 calendar year, an application for classification of property as 316 working waterfront must be filed on or before July 1, rather 317 than on or before March 1.
