Bill Text: FL S1706 | 2023 | Regular Session | Introduced


Bill Title: Ad Valorem Tax Exemptions

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2023-05-05 - Died in Community Affairs, companion bill(s) passed, see HB 7063 (Ch. 2023-157) [S1706 Detail]

Download: Florida-2023-S1706-Introduced.html
       Florida Senate - 2023                                    SB 1706
       
       
        
       By Senator DiCeglie
       
       
       
       
       
       18-01028B-23                                          20231706__
    1                        A bill to be entitled                      
    2         An act relating to ad valorem tax exemptions; amending
    3         s. 196.012, F.S.; revising conditions under which
    4         certain aircraft-related operations are deemed to
    5         serve a governmental, municipal, or public purpose or
    6         function for purposes of ch. 196, F.S.; revising the
    7         definition of the term “owned by the lessee”; amending
    8         s. 196.198, F.S.; adding circumstances under which
    9         property used exclusively for educational purposes is
   10         deemed owned by an educational institution; amending
   11         s. 196.199, F.S.; deleting a requirement for the
   12         property appraiser relating to applications for an
   13         exemption for leasehold interests in government
   14         property; revising and specifying conditions under
   15         which the exemption remains valid for the duration of
   16         the lease; providing an effective date.
   17          
   18  Be It Enacted by the Legislature of the State of Florida:
   19  
   20         Section 1. Subsection (6) of section 196.012, Florida
   21  Statutes, is amended to read:
   22         196.012 Definitions.—For the purpose of this chapter, the
   23  following terms are defined as follows, except where the context
   24  clearly indicates otherwise:
   25         (6) Governmental, municipal, or public purpose or function
   26  shall be deemed to be served or performed when the lessee under
   27  any leasehold interest created in property of the United States,
   28  the state or any of its political subdivisions, or any
   29  municipality, agency, special district, authority, or other
   30  public body corporate of the state is demonstrated to perform a
   31  function or serve a governmental purpose which could properly be
   32  performed or served by an appropriate governmental unit or which
   33  is demonstrated to perform a function or serve a purpose which
   34  would otherwise be a valid subject for the allocation of public
   35  funds. For purposes of the preceding sentence, an activity
   36  undertaken by a lessee which is permitted under the terms of its
   37  lease of real property designated as an aviation area on an
   38  airport layout plan which has been approved by the Federal
   39  Aviation Administration and which real property is used for the
   40  administration, operation, business offices, and activities
   41  related specifically thereto in connection with the conduct of
   42  an aircraft full service fixed base operation or common carrier
   43  that which provides goods and services to the general aviation
   44  public and in the promotion of air commerce shall be deemed an
   45  activity that which serves a governmental, municipal, or public
   46  purpose or function. Any activity undertaken by a lessee which
   47  is permitted under the terms of its lease of real property
   48  designated as a public airport as defined in s. 332.004(14) by
   49  municipalities, agencies, special districts, authorities, or
   50  other public bodies corporate and public bodies politic of the
   51  state, a spaceport as defined in s. 331.303, or which is located
   52  in a deepwater port identified in s. 403.021(9)(b) and owned by
   53  one of the foregoing governmental units, subject to a leasehold
   54  or other possessory interest of a nongovernmental lessee that is
   55  deemed to perform an aviation, airport, aerospace, maritime, or
   56  port purpose or operation shall be deemed an activity that
   57  serves a governmental, municipal, or public purpose. The use by
   58  a lessee, licensee, or management company of real property or a
   59  portion thereof as a convention center, visitor center, sports
   60  facility with permanent seating, concert hall, arena, stadium,
   61  park, or beach is deemed a use that serves a governmental,
   62  municipal, or public purpose or function when access to the
   63  property is open to the general public with or without a charge
   64  for admission. If property deeded to a municipality by the
   65  United States is subject to a requirement that the Federal
   66  Government, through a schedule established by the Secretary of
   67  the Interior, determine that the property is being maintained
   68  for public historic preservation, park, or recreational purposes
   69  and if those conditions are not met the property will revert
   70  back to the Federal Government, then such property shall be
   71  deemed to serve a municipal or public purpose. The term
   72  “governmental purpose” also includes a direct use of property on
   73  federal lands in connection with the Federal Government’s Space
   74  Exploration Program or spaceport activities as defined in s.
   75  212.02(22). Real property and tangible personal property owned
   76  by the Federal Government or Space Florida and used for defense
   77  and space exploration purposes or which is put to a use in
   78  support thereof shall be deemed to perform an essential national
   79  governmental purpose and shall be exempt. “Owned by the lessee”
   80  as used in this chapter does not include personal property,
   81  buildings, or other real property improvements used for the
   82  administration, operation, business offices, and activities
   83  related specifically thereto in connection with the conduct of
   84  an aircraft full service fixed based operation or common carrier
   85  that which provides goods and services to the general aviation
   86  public and in the promotion of air commerce, provided that the
   87  real property is designated as an aviation area on an airport
   88  layout plan approved by the Federal Aviation Administration. For
   89  purposes of determination of “ownership,” buildings and other
   90  real property improvements which will revert to the airport
   91  authority or other governmental unit upon expiration of the term
   92  of the lease shall be deemed “owned” by the governmental unit
   93  and not the lessee. Providing two-way telecommunications
   94  services to the public for hire by the use of a
   95  telecommunications facility, as defined in s. 364.02(14), and
   96  for which a certificate is required under chapter 364 does not
   97  constitute an exempt use for purposes of s. 196.199, unless the
   98  telecommunications services are provided by the operator of a
   99  public-use airport, as defined in s. 332.004, for the operator’s
  100  provision of telecommunications services for the airport or its
  101  tenants, concessionaires, or licensees, or unless the
  102  telecommunications services are provided by a public hospital.
  103         Section 2. Section 196.198, Florida Statutes, is amended to
  104  read:
  105         196.198 Educational property exemption.—Educational
  106  institutions within this state and their property used by them
  107  or by any other exempt entity or educational institution
  108  exclusively for educational purposes are exempt from taxation.
  109  Sheltered workshops providing rehabilitation and retraining of
  110  individuals who have disabilities and exempted by a certificate
  111  under s. (d) of the federal Fair Labor Standards Act of 1938, as
  112  amended, are declared wholly educational in purpose and are
  113  exempt from certification, accreditation, and membership
  114  requirements set forth in s. 196.012. Those portions of property
  115  of college fraternities and sororities certified by the
  116  president of the college or university to the appropriate
  117  property appraiser as being essential to the educational process
  118  are exempt from ad valorem taxation. The use of property by
  119  public fairs and expositions chartered by chapter 616 is
  120  presumed to be an educational use of such property and is exempt
  121  from ad valorem taxation to the extent of such use. Property
  122  used exclusively for educational purposes shall be deemed owned
  123  by an educational institution if the entity owning 100 percent
  124  of the educational institution is owned by the identical persons
  125  who own the property, or if the entity owning 100 percent of the
  126  educational institution and the entity owning the property are
  127  owned by the identical natural persons, or if the educational
  128  institution is a lessee that owns, for a nominal amount per
  129  year, the leasehold interest in a bona fide lease having an
  130  original term of 98 years or more. Land, buildings, and other
  131  improvements to real property used exclusively for educational
  132  purposes shall be deemed owned by an educational institution if
  133  the entity owning 100 percent of the land is a nonprofit entity
  134  and the land is used, under a ground lease or other contractual
  135  arrangement, by an educational institution that owns the
  136  buildings and other improvements to the real property, is a
  137  nonprofit entity under s. 501(c)(3) of the Internal Revenue
  138  Code, and provides education limited to students in
  139  prekindergarten through grade 8. Land, buildings, and other
  140  improvements to real property used exclusively for educational
  141  purposes are deemed owned by an educational institution if the
  142  educational institution that currently uses the land, buildings,
  143  and other improvements for educational purposes is an
  144  educational institution described in s. 212.0602, and, under a
  145  lease, the educational institution is responsible for any taxes
  146  owed and for ongoing maintenance and operational expenses for
  147  the land, buildings, and other improvements. For such leasehold
  148  properties, the educational institution shall receive the full
  149  benefit of the exemption. The owner of the property shall
  150  disclose to the educational institution the full amount of the
  151  benefit derived from the exemption and the method for ensuring
  152  that the educational institution receives the benefit.
  153  Notwithstanding ss. 196.195 and 196.196, property owned by a
  154  house of public worship and used by an educational institution
  155  for educational purposes limited to students in preschool
  156  through grade 8 shall be exempt from ad valorem taxes. If legal
  157  title to property is held by a governmental agency that leases
  158  the property to a lessee, the property shall be deemed to be
  159  owned by the governmental agency and used exclusively for
  160  educational purposes if the governmental agency continues to use
  161  such property exclusively for educational purposes pursuant to a
  162  sublease or other contractual agreement with that lessee. If the
  163  title to land is held by the trustee of an irrevocable inter
  164  vivos trust and if the trust grantor owns 100 percent of the
  165  entity that owns an educational institution that is using the
  166  land exclusively for educational purposes, the land is deemed to
  167  be property owned by the educational institution for purposes of
  168  this exemption. Property owned by an educational institution
  169  shall be deemed to be used for an educational purpose if the
  170  institution has taken affirmative steps to prepare the property
  171  for educational use. The term “affirmative steps” means
  172  environmental or land use permitting activities, creation of
  173  architectural plans or schematic drawings, land clearing or site
  174  preparation, construction or renovation activities, or other
  175  similar activities that demonstrate commitment of the property
  176  to an educational use.
  177         Section 3. Subsection (5) of section 196.199, Florida
  178  Statutes, is amended to read:
  179         196.199 Government property exemption.—
  180         (5) Leasehold interests in governmental property are shall
  181  not be exempt pursuant to this subsection unless an application
  182  for exemption has been filed on or before March 1 with the
  183  property appraiser. The property appraiser shall review the
  184  application and make findings of fact which shall be presented
  185  to the value adjustment board at its convening, whereupon the
  186  board shall take appropriate action regarding the application.
  187  If the property appraiser or the value adjustment board grants
  188  the exemption in whole or in part is granted, or the exemption
  189  is established by judicial proceeding, it shall remain valid for
  190  the duration of the lease, including extensions of the lease
  191  which were contemplated in the original lease, unless the lessee
  192  changes its use, in which case the lessee shall again submit an
  193  application for exemption. If the operations of the lessee do
  194  not change after the exemption is granted, the lessee shall not
  195  be required to submit any further applications for exemption for
  196  the duration of the lease, including extensions thereof which
  197  were contemplated in the original lease. The requirements set
  198  forth in s. 196.194 shall apply to all applications made under
  199  this subsection.
  200         Section 4. This act shall take effect July 1, 2023.

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