Senate Bill 2550c1

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    Florida Senate - 1999                           CS for SB 2550

    By the Committee on Transportation and Senator King





    306-2212-99

  1                      A bill to be entitled

  2         An act relating to port or aviation

  3         authorities; creating part VII of ch. 163,

  4         F.S.; providing a definition; providing a

  5         purpose; providing for creation of a Port or

  6         Aviation Authority Ad Valorem Tax Improvement

  7         Fund in each county in which a port or aviation

  8         authority is located; providing for deposit of

  9         ad valorem taxes paid by such authority in the

10         fund; authorizing the tax collector to retain

11         an amount for administrative costs; providing

12         for use of such funds by the authority;

13         providing for future review and repeal;

14         creating s. 193.6257, F.S.; providing immunity;

15         creating s. 194.311, F.S.; providing that

16         immune property is not subject to ad valorem

17         taxation; providing severability; providing an

18         effective date.

19

20         WHEREAS, utilization of marine ports and aviation

21  facilities for the movement of products, materials, and people

22  is essential for the well-being of the citizens of the State

23  of Florida, and

24         WHEREAS, establishment of both marine ports and

25  airports throughout the state has necessitated expenditure of

26  substantial public funds and created significant land use

27  impacts, which makes it imperative that such facilities

28  continue to be utilized to their fullest potential, and

29         WHEREAS, the expenditure of substantial funds, both

30  public and private, necessary to establish, maintain, and

31  improve such facilities necessitates long-term planning of 30

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    Florida Senate - 1999                           CS for SB 2550
    306-2212-99




  1  years or more to fully recover and justify said expenditure,

  2  and

  3         WHEREAS, legal distinctions exist between the ad

  4  valorem real and personal property tax liability of publicly

  5  owned ports and airports owned by a county, which are immune

  6  from taxation, and those which are not owned by a county,

  7  which are exempt from taxation, which result in lessees of a

  8  county-owned port or airport not being subject to such taxes

  9  and lessees of non-county-owned ports or airports being

10  required to pay said taxes, and

11         WHEREAS, this tax liability puts facilities that are

12  obligated to collect and pay such taxes at a distinct

13  competitive disadvantage, both to other facilities within the

14  state and to facilities located in other states, and

15         WHEREAS, the closing of ports and airports or the loss

16  of businesses which may result and has resulted from this

17  legal distinction is adverse to the communities involved and

18  to the state's interests of having viable, competitive, and

19  productive facilities maintained and expanded to meet the

20  needs of the state, and

21         WHEREAS, return of the taxes paid by non-county-owned

22  ports and airports as contemplated by this act would be to

23  public bodies and would be utilized by public bodies for the

24  benefit of publicly owned facilities utilized by the public,

25  NOW, THEREFORE,

26

27  Be It Enacted by the Legislature of the State of Florida:

28

29         Section 1.  Part VII of chapter 163, Florida Statutes,

30  consisting of sections 163.71, 163.72, 163.73, 163.74, and

31  163.75, is created to read:

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    Florida Senate - 1999                           CS for SB 2550
    306-2212-99




  1         163.71  Definition.--As used in this part, "port or

  2  aviation authority" means a legal entity other than a county

  3  existing as a body politic and corporate, created by act of

  4  the Legislature, which owns real property or tangible personal

  5  property in this state and which operates either a marine

  6  facility, or an aviation facility, or both, for the

  7  transportation of goods and people.

  8         163.72  Purpose.--The purpose of this part is to

  9  effectuate a level playing field between port and aviation

10  operations within the state which are owned and operated by

11  counties, and are therefore immune from the payment of ad

12  valorem taxes, and those which are owned and operated by a

13  port or aviation authority, and to further equalize the

14  financial obligations relative to such operations in the state

15  with those operations in other states which do not require the

16  payment of ad valorem taxes, and to assist the port and

17  aviation authorities of this state in attracting and retaining

18  customers that might otherwise relocate.

19         163.73  Port or Aviation Authority Ad Valorem Tax

20  Improvement Fund.--Each county in which a port or aviation

21  authority is located shall establish a Port or Aviation

22  Authority Ad Valorem Tax Improvement Fund. The tax collector

23  of the county shall deposit 95 percent of all ad valorem taxes

24  on real property and tangible personal property paid by the

25  port or aviation authority to all taxing authorities within

26  the county in the fund. The remaining 5 percent of such tax

27  revenues may be retained by the tax collector to cover the

28  costs of administration of the fund. However, any portion of

29  the amount retained by the tax collector for administration

30  which exceeds the actual cost of administering the fund shall

31

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    Florida Senate - 1999                           CS for SB 2550
    306-2212-99




  1  be distributed to the various taxing authorities on a pro rata

  2  basis.

  3         163.74  Use of revenues in the fund.--The tax revenues

  4  deposited in the Port or Aviation Authority Ad Valorem Tax

  5  Improvement Fund shall be distributed to the port or aviation

  6  authority annually on or before April 1 for taxes payable for

  7  the previous calendar year. To maintain revenue neutrality,

  8  the estimate of taxable value for all port or aviation ad

  9  valorem tax on real property and tangible personal property

10  may not be used as part of the computation of a district's

11  local effort. The authority shall use these funds for such

12  public purposes as it deems necessary for the enhancement of

13  the authority's facilities.

14         163.75  Future repeal.--This part is repealed on

15  January 1, 2030, unless reviewed and saved from repeal through

16  reenactment by the Legislature.

17         Section 2.  Section 193.6257, Florida Statutes, is

18  created to read:

19         193.6257  Property owned by the United States, the

20  state, counties, and political subdivisions of the state.--All

21  property owned by the United States, the state, counties, and

22  political subdivisions of the state is immune from ad valorem

23  taxation.

24         Section 3.  Section 194.311, Florida Statutes, is

25  created to read:

26         194.311  Property of a governmental entity.--Immune

27  property, as defined in s. 193.6257, is not subject to ad

28  valorem taxation.  Property owned by other governmental units

29  shall be presumed to be used for governmental, municipal, or

30  public purposes and shall not be subject to ad valorem

31  taxation.  Such presumption may be overcome and any leasehold

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    Florida Senate - 1999                           CS for SB 2550
    306-2212-99




  1  interest in the property may be subject to taxation as

  2  provided for in s. 196.199, if the property appraiser can

  3  establish by clear and convincing evidence that the property

  4  is leased to a nongovernmental entity and that its use by the

  5  nongovernmental entity does not constitute a governmental,

  6  municipal, or public purpose.

  7         Section 4.  If any provision of this act is held

  8  unconstitutional, it is the legislative intent that the

  9  unconstitutional provision shall not affect other provisions

10  or applications of this act which can be given effect without

11  the unconstitutional provision, and to this end the provisions

12  of this act are declared severable.

13         Section 5.  This act shall take effect upon becoming a

14  law and shall first apply to the 1999 ad valorem tax rolls.

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16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                             SB 2550

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19  1.  If any provision of the CS is held unconstitutional, it is
    the legislative intent the unconstitutional provision will not
20  affect other provisions or applications of the act which can
    be given effect without the unconstitutional provision.
21
    2.  To maintain revenue neutrality, the estimate of taxable
22  value for all port or aviation ad valorem tax on real property
    and tangible personal property can not be used as part of the
23  computation of a district's "local effort."

24  3.  All property owned by the United States, the state,
    counties, and political subdivisions of the state is immune
25  from ad valorem taxation and presumed to be used for
    governmental purposes unless the property appraiser can
26  establish the property is leased to a nongovernmental entity
    and is used for nongovernmental purposes.
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