CODING: Words stricken are deletions; words underlined are additions.House Bill 0967
Florida House of Representatives - 1997 HB 967
By the Committee on Tourism and Representatives Barreiro,
Bullard, Sindler, Melvin, Livingston and Culp
1 A bill to be entitled
2 An act relating to ad valorem taxation;
3 amending s. 193.011, F.S.; including historic
4 preservation ordinances within certain factors
5 to consider in determining highest and best use
6 of property for purposes of deriving just
7 valuation; creating s. 193.503, F.S.; providing
8 for classification and assessment of eligible
9 property as historic property used for
10 commercial or certain nonprofit purposes, for
11 purposes of taxes levied by a county or
12 municipality which adopts an ordinance
13 authorizing such assessment; providing
14 procedures and requirements; specifying the
15 factors applicable to such classification;
16 providing for appeals to the value adjustment
17 board; providing that the owner is liable for
18 deferred tax liability for prior years in which
19 such classification and assessment was granted
20 if the property fails to meet qualifying
21 criteria; amending ss. 194.011, 194.032,
22 194.037, 195.073, and 195.096, F.S., relating
23 to procedures of the value adjustment boards
24 and classification of real property, to
25 conform; creating s. 196.1961, F.S.; providing
26 procedures and requirements for counties and
27 municipalities to adopt an ordinance granting
28 partial exemption for certain historic property
29 used for commercial or nonprofit purposes;
30 specifying qualifications for such exemption;
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1 providing an effective date and a contingent
2 effective date.
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4 Be It Enacted by the Legislature of the State of Florida:
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6 Section 1. Effective upon this act becoming a law,
7 subsection (2) of section 193.011, Florida Statutes, is
8 amended to read:
9 193.011 Factors to consider in deriving just
10 valuation.--In arriving at just valuation as required under s.
11 4, Art. VII of the State Constitution, the property appraiser
12 shall take into consideration the following factors:
13 (2) The highest and best use to which the property can
14 be expected to be put in the immediate future and the present
15 use of the property, taking into consideration any applicable
16 judicial limitation, or local or state land use regulation, or
17 historic preservation ordinance, and considering any
18 moratorium imposed by executive order, law, ordinance,
19 regulation, resolution, or proclamation adopted by any
20 governmental body or agency or the Governor when the
21 moratorium or judicial limitation prohibits or restricts the
22 development or improvement of property as otherwise authorized
23 by applicable law. The applicable governmental body or agency
24 or the Governor shall notify the property appraiser in writing
25 of any executive order, ordinance, regulation, resolution, or
26 proclamation it adopts imposing any such limitation,
27 regulation, or moratorium;
28 Section 2. Section 193.503, Florida Statutes, is
29 created to read:
30 193.503 Classification and assessment of historic
31 property used for commercial or certain nonprofit purposes.--
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1 (1) Pursuant to s. 4(d), Art. VII of the State
2 Constitution, the board of county commissioners of a county or
3 the governing authority of a municipality may adopt an
4 ordinance providing for assessment of historic property used
5 for commercial or certain nonprofit purposes as described in
6 this section solely on the basis of character or use as
7 provided in this section. Such character or use assessment
8 shall apply only to the jurisdiction adopting the ordinance.
9 The board of county commissioners or municipal governing
10 authority shall notify the property appraiser of the adoption
11 of such ordinance no later than December 1 of the year prior
12 to the year such assessment will take effect. If such
13 assessment is granted only for a specified period or the
14 ordinance is repealed, the board of county commissioners or
15 municipal governing authority shall notify the property
16 appraiser no later than December 1 of the year prior to the
17 year the assessment expires.
18 (2) If an ordinance is adopted as described in
19 subsection (1), the property appraiser shall, for assessment
20 purposes, annually classify any eligible property as historic
21 property used for commercial or certain nonprofit purposes,
22 for purposes of the taxes levied by the governing body or
23 authority adopting the ordinance. For all other purposes, the
24 property shall be assessed pursuant to s. 193.011.
25 (3) No property shall be classified as historic
26 property used for commercial or certain nonprofit purposes
27 unless a return is filed on or before March 1 of each year.
28 The property appraiser, before so classifying such property,
29 may require the taxpayer or the taxpayer's representative to
30 furnish the property appraiser such information as may
31 reasonably be required to establish that such property was
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1 actually used as required by this section. Failure to make
2 timely application by March 1 shall constitute a waiver for 1
3 year of the privilege herein granted for such assessment.
4 (4) Any property classified and assessed as historic
5 property used for commercial or certain nonprofit purposes
6 pursuant to this section must meet all of the following
7 criteria:
8 (a) The property must be used for commercial purposes
9 or used by a not-for-profit organization under s. 501(c)(3) or
10 s. 501(c)(6) of the Internal Revenue Code of 1986.
11 (b) The property must be listed in the National
12 Register of Historic Places, as defined in s. 267.021; or must
13 be a contributing property to a National Register Historic
14 District; or must be designated as a historic property or as a
15 contributing property to a historic district, under the terms
16 of a local preservation ordinance.
17 (c) The property must be regularly open to the public;
18 that is, it must be open for a minimum of 40 hours per week
19 for 45 weeks per year or an equivalent of 1,800 hours per
20 year.
21 (d) The property must be maintained in good repair and
22 condition to the extent necessary to preserve the historic
23 value and significance of the property.
24 (5) In years in which proper application for
25 assessment has been made and granted pursuant to this section,
26 the assessment of such historic property shall be based solely
27 on its use for commercial or certain nonprofit purposes. The
28 property appraiser shall consider the following use factors
29 only:
30 (a) The quantity and size of the property.
31 (b) The condition of the property.
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1 (c) The present market value of the property as
2 historic property used for commercial or certain nonprofit
3 purposes.
4 (d) The income produced by the property.
5 (6) In years in which proper application for
6 assessment has not been made under this section, the property
7 shall be assessed under the provisions of s. 193.011 for all
8 purposes.
9 (7) Any property owner who is denied classification
10 under this section may appeal to the value adjustment board.
11 The property appraiser shall notify the property owner in
12 writing of the denial of such classification on or before July
13 1 of the year for which the application was filed. The
14 notification shall advise the property owner of his or her
15 right to appeal to the value adjustment board and of the
16 filing deadline. The board may also review all property
17 classified by the property appraiser upon its own motion. The
18 property appraiser shall have available at his or her office a
19 list by ownership of all applications received showing the
20 full valuation under s. 193.011, the valuation of the property
21 under the provisions of this section, and whether or not the
22 classification requested was granted.
23 (8) For the purposes of assessment roll preparation
24 and recordkeeping, the property appraiser shall report the
25 assessed value of property qualified for the assessment
26 pursuant to this section as its "classified use value" and
27 shall annually determine and report as "just value" the fair
28 market value of such property, irrespective of any negative
29 impact that restrictions imposed or conveyances made pursuant
30 to this section may have had on such value.
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1 (9)(a) After qualifying for and being granted the
2 classification and assessment pursuant to this section, the
3 owner of the property shall not use the property in any manner
4 not consistent with the qualifying criteria. If the historic
5 designation status or the use of the property changes or if
6 the property fails to meet the other qualifying criteria for
7 the classification and assessment, the property owner shall be
8 liable for the amount of taxes equal to the "deferred tax
9 liability" for up to the past 10 years in which the property
10 received the use classification and assessment pursuant to
11 this section. The governmental taxing unit shall determine
12 the time period for which the deferred tax liability is due.
13 A written instrument from the governmental taxing unit shall
14 be promptly recorded in the same manner as any other
15 instrument affecting the title to real property. A release of
16 the written instrument shall be made to the owner upon payment
17 of the deferred tax liability.
18 (b) For purposes of this subsection, "deferred tax
19 liability" means an amount equal to the difference between the
20 total amount of taxes that would have been due in March if the
21 property had been assessed under the provisions of s. 193.011
22 and the total amount of taxes actually paid in those years
23 when the property was assessed under the provisions of this
24 section, plus interest on that difference computed as provided
25 in s. 212.12(3).
26 (c) Any payment of the deferred tax liability shall be
27 payable to the county tax collector within 90 days after the
28 date of the change in classification. The collector shall
29 distribute the payment to each governmental unit where the
30 classification and assessment was allowed in the proportion
31 that its millage bears to the total millage levied on the
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1 parcel for the years in which such classification and
2 assessment was in effect.
3 (d) The tax collector shall annually report to the
4 department the amount of deferred tax liability collected
5 pursuant to this section.
6 Section 3. Paragraph (d) of subsection (3) of section
7 194.011, Florida Statutes, 1996 Supplement, is amended to
8 read:
9 194.011 Assessment notice; objections to
10 assessments.--
11 (3) A petition to the value adjustment board shall
12 describe the property by parcel number and shall be filed as
13 follows:
14 (d) The petition may be filed, as to valuation issues,
15 at any time during the taxable year on or before the 25th day
16 following the mailing of notice by the property appraiser as
17 provided in subsection (1). With respect to an issue
18 involving the denial of an exemption, an agricultural or
19 high-water recharge classification application, an application
20 for classification as historic property used for commercial or
21 certain nonprofit purposes, or a deferral, the petition must
22 be filed at any time during the taxable year on or before the
23 30th day following the mailing of the notice by the property
24 appraiser under s. 193.461, s. 193.503, s. 193.625, or s.
25 196.193 or notice by the tax collector under s. 197.253.
26 Section 4. Paragraph (b) of subsection (1) of section
27 194.032, Florida Statutes, 1996 Supplement, is amended to
28 read:
29 194.032 Hearing purposes; timetable.--
30 (1)
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1 (b) Notwithstanding the provisions of paragraph (a),
2 the value adjustment board may meet prior to the approval of
3 the assessment rolls by the Department of Revenue, but not
4 earlier than July 1, to hear appeals pertaining to the denial
5 by the property appraiser of exemptions, agricultural and
6 high-water recharge classifications, classifications as
7 historic property used for commercial or certain nonprofit
8 purposes, and deferrals under subparagraphs (a)2., 3., and 4.
9 In such event, however, the board may not certify any
10 assessments under s. 193.122 until the Department of Revenue
11 has approved the assessments in accordance with s. 193.1142
12 and all hearings have been held with respect to the particular
13 parcel under appeal.
14 Section 5. Subsection (2) of section 194.037, Florida
15 Statutes, 1996 Supplement, is amended to read:
16 194.037 Disclosure of tax impact.--
17 (2) There must be a line entry in each of the columns
18 described in subsection (1), for each of the following
19 property classes:
20 (a) Improved residential property, which must be
21 identified as "Residential."
22 (b) Improved commercial property, which must be
23 identified as "Commercial."
24 (c) Improved industrial property, utility property,
25 leasehold interests, subsurface rights, and other property not
26 properly attributable to other classes listed in this section,
27 which must be identified as "Industrial and Misc."
28 (d) Agricultural property, which must be identified as
29 "Agricultural."
30 (e) High-water recharge property, which must be
31 identified as "High-Water Recharge."
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1 (f) Historic property used for commercial or certain
2 nonprofit purposes, which shall be identified as "Historic
3 Commercial or Nonprofit."
4 (g)(f) Tangible personal property, which must be
5 identified as "Business Machinery and Equipment."
6 (h)(g) Vacant land and nonagricultural acreage, which
7 must be identified as "Vacant Lots and Acreage."
8 Section 6. Subsection (1) of section 195.073, Florida
9 Statutes, 1996 Supplement, is amended to read:
10 195.073 Classification of property.--All items
11 required by law to be on the assessment rolls must receive a
12 classification based upon the use of the property. The
13 department shall promulgate uniform definitions for all
14 classifications. The department may designate other
15 subclassifications of property. No assessment roll may be
16 approved by the department which does not show proper
17 classifications.
18 (1) Real property must be classified according to the
19 assessment basis of the land into the following classes:
20 (a) Residential, subclassified into categories, one
21 category for homestead property and one for nonhomestead
22 property:
23 1. Single family.
24 2. Mobile homes.
25 3. Multifamily.
26 4. Condominiums.
27 5. Cooperatives.
28 6. Retirement homes.
29 (b) Commercial and industrial.
30 (c) Agricultural.
31 (d) Nonagricultural acreage.
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1 (e) High-water recharge.
2 (f) Historic property used for commercial or certain
3 nonprofit purposes.
4 (g)(f) Exempt, wholly or partially.
5 (h)(g) Centrally assessed.
6 (i)(h) Leasehold interests.
7 (j)(i) Time-share property.
8 (k)(j) Other.
9 Section 7. Paragraph (a) of subsection (3) and
10 subsection (6) of section 195.096, Florida Statutes, 1996
11 Supplement, as amended by section 19, chapter 95-272, section
12 8, chapter 96-204, section 7, chapter 96-397, and section 54,
13 chapter 96-406, Laws of Florida, are amended to read:
14 195.096 Review of assessment rolls.--
15 (3)(a) Upon completion of review pursuant to paragraph
16 (2)(f), the Division of Ad Valorem Tax shall publish the
17 results of reviews conducted under this section. The results
18 must include all statistical and analytical measures computed
19 under this section for the real property assessment roll as a
20 whole, the personal property assessment roll as a whole, and
21 independently for the following real property classes whenever
22 the classes constituted 5 percent or more of the total
23 assessed value of real property in a county on the previous
24 tax roll:
25 1. Residential property that consists of one primary
26 living unit, including, but not limited to, single-family
27 residences, condominiums, cooperatives, and mobile homes.
28 2. Residential property that consists of two or more
29 primary living units.
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1 3. Agricultural, high-water recharge, historic
2 property used for commercial or certain nonprofit purposes,
3 and other use-valued property.
4 4. Vacant lots.
5 5. Nonagricultural acreage and other undeveloped
6 parcels.
7 6. Improved commercial and industrial property.
8 7. Taxable institutional or governmental, utility,
9 locally assessed railroad, oil, gas and mineral land,
10 subsurface rights, and other real property.
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12 When one of the above classes constituted less than 5 percent
13 of the total assessed value of all real property in a county
14 on the previous assessment roll, the division may combine it
15 with one or more other classes of real property for purposes
16 of assessment ratio studies or use the weighted average of the
17 other classes for purposes of calculating the level of
18 assessment for all real property in a county. The division
19 shall also publish such results for any subclassifications of
20 the classes or assessment rolls it may have chosen to study.
21 (6) Reviews conducted under this section must include
22 an evaluation of whether nonhomestead exempt values determined
23 by the appraiser under applicable provisions of chapter 196
24 are correct and whether agricultural and high-water recharge
25 classifications and classifications of historic property used
26 for commercial and certain nonprofit purposes were granted in
27 accordance with law.
28 Section 8. Section 196.1961, Florida Statutes, is
29 created to read:
30 196.1961 Exemption for historic property used for
31 certain commercial or nonprofit purposes.--
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1 (1) Pursuant to s. 3, Art. VII of the State
2 Constitution, the board of county commissioners of any county
3 or the governing authority of any municipality may adopt an
4 ordinance to allow an ad valorem tax exemption of up to 50
5 percent of the assessed value of property which meets all of
6 the following criteria:
7 (a) The property must be used for commercial purposes
8 or used by a not-for-profit organization under s. 501(c)(3) or
9 s. 501(c)(6) of the Internal Revenue Code of 1986.
10 (b) The property must be listed in the National
11 Register of Historic Places, as defined in s. 267.021; or must
12 be a contributing property to a National Register Historic
13 District; or must be designated as a historic property or as a
14 contributing property to a historic district, under the terms
15 of a local preservation ordinance.
16 (c) The property must be regularly open to the public.
17 (2) As used in this section, "regularly open to the
18 public" means that there are regular hours when the public may
19 visit to observe the historically significant aspects of the
20 building. This means a minimum of 40 hours per week, for 45
21 weeks per year, or an equivalent of 1,800 hours per year. A
22 fee may be charged to the public; however, it must be
23 comparable with other entrance fees in the immediate
24 geographic locale.
25 (3) The board of county commissioners or municipal
26 governing authority shall notify the property appraiser of the
27 adoption of such ordinance no later than December 1 of the
28 year prior to the year the exemption will take effect. If the
29 exemption is granted only for a specified period or the
30 ordinance is repealed, the board of county commissioners or
31 municipal governing authority shall notify the property
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1 appraiser no later than December 1 of the year prior to the
2 year the exemption expires. The ordinance must specify that
3 the exemption shall apply only to taxes levied by the unit of
4 government granting the exemption. The exemption does not
5 apply, however, to taxes levied for the payment of bonds or to
6 taxes authorized by a vote of the electors pursuant to s. 9(b)
7 or s. 12, Art. VII of the State Constitution.
8 (4) Only those portions of the property used
9 predominantly for the purposes specified in paragraph (1)(a)
10 shall be exempt. In no event shall an incidental use of
11 property qualify such property for an exemption or impair the
12 exemption of an otherwise exempt property.
13 (5) In order to retain the exemption, the historic
14 character of the property must be maintained in good repair
15 and condition to the extent necessary to preserve the historic
16 value and significance of the property.
17 Section 9. Except as otherwise provided herein, this
18 act shall take effect on the effective date of an amendment to
19 the State Constitution approved by the electors at the general
20 election to be held in November 1998 which authorizes, or
21 removes impediment to, enactment by the Legislature of the
22 provisions of this act.
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2 HOUSE SUMMARY
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Includes historic preservation ordinances within certain
4 factors to consider in determining highest and best use
of property for purposes of deriving just valuation.
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6 Provides implementing legislation for a proposed
constitutional amendment that removes a requirement that
7 an owner be engaged in renovating historic property to
qualify for ad valorem tax exemption, and that allows
8 counties or municipalities to assess historic property
solely on the basis of character or use. Provides for
9 classification and assessment of eligible property as
historic property used for commercial or certain
10 nonprofit purposes, for purposes of taxes levied by a
county or municipality which adopts an ordinance
11 authorizing such assessment. Provides procedures and
requirements. Specifies the factors applicable to such
12 classification. Provides for appeals to the value
adjustment board. Provides that the owner is liable for
13 deferred tax liability for prior years in which such
classification and assessment was granted if the property
14 fails to meet qualifying criteria. Also provides
procedures and requirements for counties and
15 municipalities to adopt an ordinance granting partial ad
valorem tax exemption for certain historic property used
16 for commercial or nonprofit purposes.
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