Senate Bill 2414e1
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1 A bill to be entitled
2 An act relating to ad valorem tax exemptions;
3 amending s. 196.012, F.S.; amending the
4 definition of the term "new business," as used
5 in ch. 196, F.S.; amending s. 196.1995, F.S.;
6 providing an ad valorem tax exemption for new
7 businesses comprising artistic and cultural
8 improvements to real estate which are used for
9 specified purposes; providing for certain
10 economic development ad valorem tax exemptions;
11 providing for extension of such exemptions;
12 amending s. 212.06, F.S.; revising the
13 application of provisions which exempt from use
14 tax a person who secures rock, fill dirt, or
15 similar materials from a location he or she
16 owns for use on his or her own property, to
17 include affiliated groups; amending s.
18 196.2001, F.S.; revising the conditions for
19 qualification for the ad valorem tax exemption
20 for property of a not-for-profit sewer and
21 water company; providing for retroactive
22 application; providing that certain exemptions
23 that conform to such revision that were
24 previously granted shall not be subject to any
25 assessment, penalty, or interest; providing an
26 effective date.
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28 Be It Enacted by the Legislature of the State of Florida:
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30 Section 1. Paragraphs (c) and (d) are added to
31 subsection (15) of section 196.012, Florida Statutes, to read:
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1 196.012 Definitions.--For the purpose of this chapter,
2 the following terms are defined as follows, except where the
3 context clearly indicates otherwise:
4 (15) "New business" means:
5 (c)1. An arts or cultural organization that is tax
6 exempt under s. 501(c)(3) of the Internal Revenue Code of
7 1986, as amended; or
8 2. Any person or entity that is building or renovating
9 improvements to real property which will include theater
10 space, an art gallery open to the public, or some other
11 improvement that is dedicated to the development and
12 exhibition of the performing or visual arts.
13 (d) A business that is situated on property annexed
14 into a municipality and that, at the time of the annexation,
15 is receiving an economic development ad valorem tax exemption
16 from the county under s. 196.1995.
17 Section 2. Present subsections (6), (7), (8), and (9)
18 of section 196.1995, Florida Statutes, are redesignated as
19 subsections (8), (9), (10), and (11), respectively, and new
20 subsections (6) and (7) are added to that section, to read:
21 196.1995 Economic development ad valorem tax
22 exemption.--
23 (6) With respect to a new business as defined in s.
24 196.012(15)(c), the taxing authority having jurisdiction to
25 levy ad valorem taxes may exempt from taxation under
26 subsection (5) only that portion of an improvement to real
27 property which constitutes theater space, an art gallery open
28 to the public, or some other improvement that is dedicated to
29 the development and exhibition of the performing or visual
30 arts. The amount of such a tax exemption must be calculated by
31 multiplying the total amount of the ad valorem taxes that
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1 would otherwise be imposed times the percentage obtained by
2 dividing the total square footage of the improvement into the
3 square footage that is dedicated to the purposes specified in
4 this subsection and s. 196.012(15)(c).
5 (7) With respect to a new business as defined in s.
6 196.012(15)(d), the municipality annexing the property on
7 which the business is situated may grant an economic
8 development ad valorem tax exemption under this section to
9 that business for a period that will expire upon the
10 expiration of the exemption granted by the county. If the
11 county renews the exemption under subsection (8), the
12 municipality may also extend its exemption. A municipal
13 economic development ad valorem tax exemption granted under
14 this subsection may not extend beyond the duration of the
15 county exemption.
16 Section 3. Subsection (1) of section 196.2001, Florida
17 Statutes, is amended to read:
18 196.2001 Not-for-profit sewer and water company
19 property exemption.--
20 (1) Property of any sewer and water company owned or
21 operated by a Florida corporation not for profit, the income
22 from which has been exempt, as of January 1 of the year for
23 which the exemption from ad valorem property taxes is
24 requested, from federal income taxation by having qualified
25 under s. 115(a) or s. 501(c)(12) of the Internal Revenue Code
26 of 1954 or of a corresponding section of a subsequently
27 enacted federal revenue act, shall be exempt from ad valorem
28 taxation, provided the following criteria for exemption are
29 met by the not-for-profit sewer and water company:
30 (a) Net income derived by the company does not inure
31 to any private shareholder or individual.
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1 (b) Gross receipts do not constitute gross income for
2 federal income tax purposes.
3 (c) Members of the company's governing board serve
4 without compensation.
5 (d) Rates for services rendered by the company are
6 established by the governing board of the county or counties
7 within which the company provides service; by the Public
8 Service Commission, in those counties in which rates are
9 regulated by the commission; or by the Farmers Home
10 Administration.
11 (e) Ownership of the company reverts to the county in
12 which the company conducts its business upon retirement of all
13 outstanding indebtedness of the company.
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15 Notwithstanding anything above, no exemption shall be granted
16 until the property appraiser has considered the proposed
17 exemption and has made a specific finding that the water and
18 sewer company in question performs a public purpose in the
19 absence of which the expenditure of public funds would be
20 required.
21 (2) This section shall take effect upon this act
22 becoming a law and shall apply retroactively to January 1,
23 1998.
24 Section 4. (1) Notwithstanding any provision of
25 chapter 196, Florida Statutes, to the contrary, any exemption
26 which would be authorized by the amendment to s. 196.2001(1),
27 Florida Statutes, by this act, and which was applied for and
28 granted in good faith to any not-for-profit sewer or water
29 company after December 31, 1997, shall not be subject to any
30 assessment, penalty, or interest otherwise allowed by law.
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1 (2) This section shall take effect upon this act
2 becoming a law.
3 Section 5. This act shall take effect upon becoming a
4 law.
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