Bill Text: FL S7026 | 2010 | Regular Session | Introduced
Bill Title: Working Waterfront Property
Spectrum: Unknown
Status: (N/A - Dead) 2010-01-21 - Submit as committee bill by Finance and Tax (SB 1408) [S7026 Detail]
Download: Florida-2010-S7026-Introduced.html
Florida Senate - 2010 (Proposed Committee Bill) SPB 7026 FOR CONSIDERATION By the Committee on Finance and Tax 593-01187A-10 20107026__ 1 A bill to be entitled 2 An act relating to working waterfront property; 3 creating s. 193.704, F.S.; defining terms; specifying 4 property that is eligible for classification as 5 working waterfront property; requiring the assessment 6 of working waterfront property based on current use; 7 requiring an application for classification of 8 property as working waterfront property; authorizing a 9 property appraiser to approve an application that is 10 not filed by a certain deadline due to extenuating 11 circumstances; providing for the waiver of annual 12 application requirements; providing for the loss of 13 classification upon a change of ownership or use; 14 requiring that property owners notify the property 15 appraiser of changes in use or ownership of property; 16 imposing a penalty on a property owner who fails to 17 notify the property appraiser of an event resulting in 18 the unlawful or improper classification of property as 19 working waterfront property; requiring the imposition 20 of tax liens to recover penalties and interest; 21 providing for the assessment of a portion of property 22 within a working waterfront property which is not used 23 as working waterfront property; requiring that a 24 property appraiser make a list relating to 25 applications to certify property as working waterfront 26 property; providing an appeal process for an 27 application that has been denied; amending s. 195.073, 28 F.S.; providing for the classification of land as 29 working waterfront property on an assessment roll; 30 providing for retroactive application; providing an 31 effective date. 32 33 Be It Enacted by the Legislature of the State of Florida: 34 35 Section 1. Section 193.704, Florida Statutes, is created to 36 read: 37 193.704 Working waterfront property; definitions; 38 classification and assessment; denial of classification and 39 appeal.— 40 (1) DEFINITIONS.—For purposes of granting a working 41 waterfront property classification under this section for 42 January 1, 2010, and thereafter, the term: 43 (a) “Accessible to the public” means routinely available to 44 the public from sunrise to sunset, with or without charge, with 45 appropriate accommodations, including, but not limited to, 46 public parking or public boat ramps that are available for use 47 by the general public. 48 (b) “Commercial fishing facility” means docks, piers, 49 processing houses, or other facilities that support a commercial 50 fishing operation or an aquaculture operation certified under 51 chapter 597. 52 (c) “Commercial fishing operation” has the same meaning as 53 provided in s. 379.2351. 54 (d) “Drystack” means a vessel storage facility or building 55 in which storage spaces for vessels are available for use by the 56 public on a first-come, first-served basis, with no automatic 57 renewal rights or conditions. The term excludes storage that is 58 purchased, received, or rented as a result of homeownership or 59 tenancy. 60 (e) “Land used predominantly for commercial fishing 61 purposes” means land used in good faith in a for-profit 62 commercial fishing operation for the taking or harvesting of 63 freshwater fish or saltwater products, as defined in s. 379.101, 64 for which a commercial license to take, harvest, or sell such 65 fish or products is required under chapter 379, or land used in 66 an aquaculture operation certified under chapter 597. 67 (f) “Marina” means a licensed commercial facility that 68 provides secured public moorings or drystacks for vessels on a 69 first-come, first-served basis, with no automatic renewal rights 70 or conditions. The term excludes mooring or storage that is 71 purchased, received, or rented as a result of homeownership or 72 tenancy. 73 (g) “Marine manufacturing facility” means a facility that 74 manufactures vessels for use in waters that are navigable. 75 (h) “Marine vessel construction and repair facility” means 76 a facility that constructs and repairs vessels that travel over 77 waters that are navigable, including, but not limited to, 78 shipyards and boatyards. As used in this section, the term 79 “repair” includes retrofitting and maintenance of vessels. 80 (i) “Open to the public” means for hire to the general 81 public and accessible during normal operating hours. 82 (j) “Support facility” means a facility that typically is 83 colocated with marine vessel construction and repair facilities, 84 including, but not limited to, shops, equipment, and salvage 85 facilities. 86 (k) “Water-dependent” means an activity that can be 87 conducted only on, in, over, or adjacent to waters that are 88 navigable and that requires direct access to water and involves 89 the use of water as an integral part of such activity. 90 (l) “Waterfront” means property that is on, over, or 91 abutting waters that are navigable. Property that is separated 92 from property abutting waters that are navigable by a public 93 right of way may be considered waterfront property, if the 94 property on both sides of the public right of way is under 95 common ownership and the property that is separated by the 96 public right of way has direct access to the water by crossing 97 the public right of way. 98 (m) “Waters that are navigable” means any body of water 99 that is subject to the ebb and flow of the tide, connects with 100 continuous interstate waterway, has navigable capacity, and is 101 actually navigable. 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 valuation is appropriate to 117 the property and if adequate local data on market rental rates, 118 expense rates, and vacancy rates are available, the assessed 119 value shall be calculated using the income approach to value, 120 using a capitalization rate based upon the debt coverage ratio 121 formula, adjusted for the effective tax rate and the percentage 122 of equity multiplied by the equity yield rate. The 123 capitalization rate shall be calculated and updated annually and 124 shall be based on local data. 125 2. If the conditions required for assessment under 126 subparagraph 1. are not satisfied, the property appraiser shall 127 value the property at its present cash value as if it were 128 required to remain in its current working waterfront use. 129 3. In no event shall the assessed value of the property 130 exceed just value. 131 (c)1. Property may not be classified as working waterfront 132 property unless an application for such classification is filed 133 with the property appraiser on or before March 1 of each year in 134 the county in which the property is located. Before approving 135 such classification, the property appraiser may require the 136 applicant to establish that the property is actually used as 137 required under this section. The property appraiser may require 138 the applicant to furnish the property appraiser such information 139 as may reasonably be required to establish that such property 140 was actually used for working waterfront purposes, and to 141 establish the classified use value of the property, including 142 income and expense data. The owner or lessee of the property 143 classified as working waterfront property in the prior year may 144 reapply on a short form provided by the Department of Revenue. 145 The lessee of property may make original application or reapply 146 on a short form if the lease, or an affidavit executed by the 147 owner, provides that the lessee is empowered to make application 148 for the working waterfront classification on behalf of the owner 149 and a copy of the lease or affidavit accompanies the 150 application. An applicant may withdraw an application on or 151 before the 25th day following the mailing of the notice of 152 proposed property taxes pursuant to s. 200.069 in the year the 153 application was filed. 154 2. Failure of a property owner or lessee to apply for a 155 classification as working waterfront property by March 1 156 constitutes a waiver for 1 year of the privilege granted in this 157 section. However, a person who is qualified to receive a working 158 waterfront classification but who fails to timely apply for 159 classification may file an application for classification with 160 the property appraiser on or before the 25th day following the 161 mailing of proposed property taxes pursuant to s. 200.069. Upon 162 review of the application, if the applicant is qualified to 163 receive the classification and demonstrates particular 164 extenuating circumstances that warrant the classification, the 165 property appraiser may grant the classification. 166 3. A county, at the request of the property appraiser and 167 by a majority vote of its governing body, may waive the 168 requirement that an annual application or short form be filed 169 with the property appraiser for renewal of the classification of 170 property within the county as working waterfront property. Such 171 waiver may be revoked by a majority of the county governing 172 body. 173 4. Notwithstanding subparagraph 2., a new application for 174 classification as working waterfront property must be filed with 175 the property appraiser whenever any property granted the 176 classification as working waterfront property is sold or 177 otherwise disposed of, whenever ownership or the lessee changes 178 in any manner, whenever the owner or the lessee ceases to use 179 the property as working waterfront property, or whenever the 180 status of the owner or the lessee changes so as to change the 181 classified status of the property. 182 5. The property appraiser shall remove from the 183 classification as working waterfront property any property for 184 which the classified use has been abandoned or discontinued, or 185 if the property has been diverted to an unclassified use. Such 186 removed property shall be assessed at just value as provided in 187 s. 193.011. 188 6.a. The owner of any property classified as working 189 waterfront property who is not required to file an annual 190 application under this section, and the lessee if the 191 application was made by the lessee, shall notify the property 192 appraiser promptly whenever the use of the property or the 193 status or condition of the owner or lessee changes so as to 194 change the classified status of the property. If any such 195 property owner or lessee fails to notify the property appraiser 196 and the property appraiser determines that for any year within 197 the prior 10 years the owner was not entitled to receive such 198 classification, the owner of the property is subject to taxes 199 otherwise due and owing as a result of such failure plus 15 200 percent interest per annum and a penalty of 50 percent of the 201 additional taxes owed. However, the penalty may be waived if the 202 owner or lessee can demonstrate that they took reasonable care 203 to notify the property appraiser of the change in use, status, 204 or condition of the property. 205 b. The property appraiser making such determination shall 206 record in the public records of the county in which the working 207 waterfront property is located a notice of tax lien against any 208 property owned by the working waterfront property owner, and 209 such property must be identified in the notice of tax lien. Such 210 property is subject to the payment of all taxes and penalties. 211 Such lien, when filed, attaches to any property identified in 212 the notice of tax lien owned by the person or entity that 213 illegally or improperly received the classification. If such 214 person or entity no longer owns property in that county but owns 215 property in another county or counties in the state, the 216 property appraiser shall record in such other county or counties 217 a notice of tax lien identifying the property owned by the 218 working waterfront property owner in such county or counties 219 which shall become a lien against the identified property. 220 7. When a parcel contains both uses eligible for assessment 221 under this section and uses that are not eligible for assessment 222 under this section, those portions of the property that are not 223 eligible for assessment under this section must be assessed 224 separately as otherwise provided by this chapter. 225 8. The property appraiser shall have available at his or 226 her office a list by ownership of all applications for 227 classification as working waterfront property received, showing 228 the acreage, the just valuation under s. 193.011, the value of 229 the land under the provisions of this subsection, and whether 230 the classification was granted. 231 (3) DENIAL OF CLASSIFICATION; APPEAL.— 232 (a) If an application for working waterfront classification 233 is made by March 1, the property appraiser shall notify the 234 applicant in writing of a denial of the application on or before 235 July 1 of the year for which the application was filed. The 236 notification shall advise the applicant of his or her right to 237 appeal to the value adjustment board and of the appeal filing 238 deadline. 239 (b) Any applicant whose application for classification as 240 working waterfront property is denied by the property appraiser 241 may appeal to the value adjustment board by filing a petition 242 requesting that the classification be granted. The petition may 243 be filed on or before the 25th day following the mailing of the 244 assessment notice by the property appraiser as required under s. 245 194.011(1). Notwithstanding s. 194.013, the petitioner shall pay 246 a nonrefundable fee of $15 upon filing the petition. Upon the 247 value adjustment board’s review of the petition, if the 248 petitioner is qualified to receive the classification and 249 demonstrates particular extenuating circumstances that warrant 250 granting the classification, the value adjustment board may 251 grant the petition and classification. 252 (c) A denial of a petition for classification by the value 253 adjustment board may be appealed to a court of competent 254 jurisdiction. 255 (d)1. Property that has received a working waterfront 256 classification from the value adjustment board or a court of 257 competent jurisdiction under this subsection is entitled to 258 receive such classification in any subsequent year until such 259 use is changed, abandoned, or discontinued, or the ownership 260 changes in any manner as provided in subparagraph (2)(c)4. The 261 property appraiser shall, no later than January 31 of each year, 262 provide notice to the property owner or lessee receiving a 263 classification under this subsection requiring the property 264 owner or a lessee qualified to make application to certify that 265 the ownership and the use of the property has not changed. The 266 department shall prescribe by rule the form of the notice to be 267 used by the property appraiser. 268 2. If a county has waived the requirement that an annual 269 application or short form be filed for classification of the 270 property under subsection (2), the county may, by majority vote 271 of its governing body, waive the notice and certification 272 requirements of this paragraph and shall provide the property 273 owner or lessee with the same notification as provided to 274 property owners granted a working waterfront classification by 275 the property appraiser. Such waiver may be revoked by a majority 276 vote of the county governing body. 277 Section 2. Subsection (1) of section 195.073, Florida 278 Statutes, is amended to read: 279 195.073 Classification of property.—All items required by 280 law to be on the assessment rolls must receive a classification 281 based upon the use of the property. The department shall 282 promulgate uniform definitions for all classifications. The 283 department may designate other subclassifications of property. 284 No assessment roll may be approved by the department which does 285 not show proper classifications. 286 (1) Real property must be classified according to the 287 assessment basis of the land into the following classes: 288 (a) Residential, subclassified into categories, one 289 category for homestead property and one for nonhomestead 290 property: 291 1. Single family. 292 2. Mobile homes. 293 3. Multifamily. 294 4. Condominiums. 295 5. Cooperatives. 296 6. Retirement homes. 297 (b) Commercial and industrial. 298 (c) Agricultural. 299 (d) Nonagricultural acreage. 300 (e) High-water recharge. 301 (f) Historic property used for commercial or certain 302 nonprofit purposes. 303 (g) Exempt, wholly or partially. 304 (h) Centrally assessed. 305 (i) Leasehold interests. 306 (j) Time-share property. 307 (k) Land assessed under s. 193.501. 308 (l) Working waterfront property. 309 (m)(l)Other. 310 Section 3. This act shall take effect upon becoming a law, 311 and applies retroactively to January 1, 2010.
