Florida Senate - 2009                (Corrected Copy)    SB 1468
       
       
       
       By Senator Dean
       
       
       
       
       21-01148B-09                                          20091468__
    1                        A bill to be entitled                      
    2         An act relating to working waterfront property;
    3         creating s. 193.704, F.S.; providing definitions;
    4         creating s. 193.7041, F.S.; identifying property that
    5         is eligible for classification as working waterfront
    6         property; requiring the assessment of working
    7         waterfront property based on current use; requiring an
    8         application for classification of property as working
    9         waterfront property; authorizing a property appraiser
   10         to approve an application that is not filed by a
   11         certain deadline due to extenuating circumstances;
   12         providing for waiver of annual application
   13         requirements; providing for loss of classification
   14         upon a change of ownership or use; requiring property
   15         owners to notify the property appraiser of changes in
   16         use or ownership of property; imposing a penalty on a
   17         property owner that fails to notify the property
   18         appraiser of an event that results in the unlawful or
   19         improper classification of property as working
   20         waterfront property; requiring the imposition of tax
   21         liens to recover penalties and interest; providing for
   22         the assessment of a portion of property within a
   23         working waterfront property which is not used as
   24         working waterfront property; requiring a property
   25         appraiser to make a list relating to applications to
   26         certify property as working waterfront property;
   27         creating s. 193.7042, F.S.; requiring property
   28         appraisers to notify property owners of the denial of
   29         an application to classify property as working
   30         waterfront property; providing for the appeal of the
   31         denial to the value adjustment board; requiring a
   32         filing fee of a certain amount; providing for the
   33         appeal to the circuit court of a denial of a petition
   34         to the value adjustment board; requiring property
   35         appraisers to notify property owners whose property
   36         was classified as working waterfront property by a
   37         value adjustment board or court to recertify that the
   38         use and ownership of the property have not changed;
   39         authorizing the waiver of certain notice and
   40         certification requirements; providing an effective
   41         date.
   42         
   43  Be It Enacted by the Legislature of the State of Florida:
   44         
   45         Section 1. Section 193.704, Florida Statutes, is created to
   46  read:
   47         193.704Working waterfront property; definitions.—As used
   48  in ss. 193.704-193.7042, the term:
   49         (1)“Accessible to the public” means routinely open to the
   50  public, with or without charge, from sunrise to sunset and
   51  having appropriate public accommodations, such as public parking
   52  or public boat ramps.
   53         (2)“Commercial fishing operation” has the same meaning as
   54  in s. 379.2351.
   55         (3)“Drystack” means a vessel-storage facility or building
   56  in which the storage spaces for vessels are available for use by
   57  the public on a first-come, first-served lease basis without
   58  automatic renewal rights or conditions. The term does not
   59  include drystacks in which boat storage is limited to persons
   60  who purchase, receive, or rent a storage space as a condition of
   61  homeownership or tenancy.
   62         (4)“Marina” means a licensed commercial facility that
   63  provides secured public moorings or drystacks for boats on a
   64  first-come, first-served leased basis and without automatic
   65  renewal rights or conditions. The term does not include marinas
   66  that limit mooring or storage of vessels to persons who
   67  purchase, receive, or rent a mooring slip or storage space as a
   68  condition of homeownership or tenancy.
   69         (5)“Land used predominantly for commercial fishing
   70  purposes” means land used in good faith in a venture for-profit
   71  commercial fishing operation for the taking or harvesting of
   72  freshwater fish or saltwater products, as defined in s. 379.101,
   73  for which a commercial license to take, harvest, or sell such
   74  freshwater fish or saltwater products is required under chapter
   75  379.
   76         (6)“Marine manufacturing facility” means a facility that
   77  manufactures vessels for use in waters that are navigable.
   78         (7)“Marine vessel construction and repair facilities”
   79  means facilities such as shipyards or dockyards that construct
   80  and repair vessels that travel over waters that are navigable.
   81  As used in this section, the term “repair” includes retrofitting
   82  and maintenance.
   83         (8)“Open to the public” means for hire to the public and
   84  accessible during normal operating hours.
   85         (9)“Support activities” means those facilities that are
   86  typically colocated with marine vessel construction and repair
   87  facilities, such as shop, equipment, or salvage facilities.
   88         (10)“Water-dependent” means that the operations of a
   89  facility require direct access to the water.
   90         (11)“Waterfront” means property that is on, over, or
   91  abutting waters that are navigable.
   92         (12)“Waters that are navigable” means the waters of the
   93  state which are capable of supporting boating and are used or
   94  may be used in their ordinary condition as highways for commerce
   95  for which trade or travel are or may be conducted in the
   96  customary modes of trade or travel on water.
   97         Section 2. Section 193.7041, Florida Statutes, is created
   98  to read:
   99         193.7041Working waterfront property; classification and
  100  assessment; loss of classification; penalty.—
  101         (1)Pursuant to s. 4(j), Art. VII of the State
  102  Constitution, effective January 1, 2010, the following
  103  waterfront property is eligible for classification as working
  104  waterfront property:
  105         (a)Land used predominantly for commercial fishing
  106  purposes.
  107         (b)Land that is accessible to the public and used for
  108  vessel launches into waters that are navigable.
  109         (c)Marinas and drystacks that are open to the public.
  110         (d)Water-dependent marine manufacturing facilities.
  111         (e)Water-dependent commercial fishing facilities.
  112         (f)Water-dependent marine vessel construction and repair
  113  facilities and their support activities.
  114         (2)Property classified as working waterfront property
  115  pursuant to this section must be assessed on the basis of
  116  current use. Assessed value must be calculated using the income
  117  approach to value as described in The Appraisal of Real Estate,
  118  Thirteenth Edition, published by the Appraisal Institute. The
  119  capitalization rate used to determine assessed value must be
  120  based upon a debt coverage ratio formula, in which the
  121  capitalization rate equals the debt coverage ratio multiplied by
  122  the mortgage capitalization multiplied by the loan-to-value
  123  ratio for comparable properties. The capitalization rate must be
  124  calculated and updated annually. In assessing working waterfront
  125  property, a property appraiser shall use data from lenders for
  126  industrywide loan interest rates, loan-to-value ratios,
  127  amortization terms, payment periods, debt coverage ratio
  128  requirements, market rental rates, market expense rates, and
  129  market vacancy rates. The data must be county-specific unless
  130  insufficient data is available, in which case the property
  131  appraiser shall use data for surrounding counties.
  132         (3)(a)Property may not be classified as working waterfront
  133  property unless an application for the classification is filed
  134  with the property appraiser on or before March 1 of each year in
  135  the county in which the property is located. Before classifying
  136  the property as working waterfront property, the property
  137  appraiser may require the property owner to establish that the
  138  property is used as required under this section. The owner of
  139  property classified as working waterfront property in the prior
  140  year may reapply on a short form adopted by rule by the
  141  Department of Revenue.
  142         (b)Failure by a property owner to apply for the
  143  classification as working waterfront property by March 1
  144  constitutes a waiver of the classification for 1 year. However,
  145  the property appraiser may approve a late application and grant
  146  a working waterfront classification if the property owner
  147  establishes that extenuating circumstances prevented the
  148  property owner from filing an application by the deadline.
  149         (c)A county may, at the request of the property appraiser
  150  and by a majority vote of its governing body, waive the
  151  requirement that an annual application or short form be filed
  152  with the property appraiser for renewal of the classification of
  153  property as working waterfront property. The waiver may be
  154  revoked by a majority vote of the governing body of the county.
  155         (d)Notwithstanding paragraph (c), a new application for
  156  classification as working waterfront property must be filed with
  157  the property appraiser after the property receiving the
  158  classification is sold or otherwise disposed of, or the
  159  ownership changes in any manner, or the use of the property as
  160  working waterfront property is abandoned or discontinued.
  161         (e)The property appraiser shall remove from the
  162  classification as working waterfront property any property for
  163  which the classified use has been abandoned or discontinued. The
  164  removed property shall be assessed at just value pursuant to s.
  165  193.011.
  166         (f)1.The owner of classified working waterfront property
  167  who is not required to file an annual application under this
  168  section must notify the property appraiser promptly if the use
  169  of the property or the ownership changes in a manner that
  170  changes the classified status of the property. If a property
  171  owner fails to notify the property appraiser and the property
  172  appraiser determines that, for any year within the prior 10
  173  years, the property was not qualified to receive the
  174  classification, the owner of the property is subject to taxes
  175  otherwise due and owing as a result of the failure plus 15
  176  percent interest per annum and a penalty of 50 percent of the
  177  additional taxes owed.
  178         2.A property appraiser who determines that a property
  179  owner failed to provide the required notice of change in use or
  180  ownership must record a tax lien against real property owned by
  181  the person or entity. The property is subject to the payment of
  182  all taxes and penalties. If the person or entity no longer owns
  183  property in the county in which the unlawfully or improperly
  184  classified working waterfront property is located, the property
  185  appraiser shall record a tax lien against other properties owned
  186  by the person or entity in other counties of this state. Any tax
  187  lien recorded pursuant to this paragraph must identify the
  188  property that was unlawfully or improperly classified as working
  189  waterfront property and the property to which the lien applies.
  190         (g)The portion of a property classified as a working
  191  waterfront property which contains a residence, or a marina,
  192  drystack, or other facility that is not eligible for
  193  classification as a working waterfront property pursuant to s.
  194  193.7041, must be assessed pursuant to s. 193.011.
  195         (h)The property appraiser must make a list of all
  196  applications for classification as working waterfront property.
  197  The list must include the acreage, the just value of the
  198  property determined pursuant to s. 193.011, the value of the
  199  property if classification as working waterfront property is
  200  granted or the reason if classification is denied, the name of
  201  the property owner, the name of any business operating on the
  202  property, and the address of the property.
  203         Section 3. Section 193.7042, Florida Statutes, is created
  204  to read:
  205         193.7042Working waterfront property; denial of
  206  classification; appeal process.—
  207         (1)The property appraiser must provide a written notice to
  208  a property owner applying for a working waterfront
  209  classification of the denial of an application to classify
  210  property as working waterfront property on or before July 1 of
  211  the year for which the application was filed. The notice must
  212  advise the property owner of his or her right to appeal the
  213  denial to the value adjustment board and of the deadline for
  214  filing an appeal.
  215         (2)Any property owner whose application for classification
  216  as working waterfront property is denied may appeal the denial
  217  to the value adjustment board by filing a petition requesting
  218  that the application for classification be approved. The
  219  petition may be filed at any time during the taxable year on or
  220  before the 25th day following the mailing of the assessment
  221  notice by the property appraiser pursuant to s. 194.011(1).
  222  Notwithstanding s. 194.013, the petitioner must pay a
  223  nonrefundable fee of $15 upon filing the petition. The value
  224  adjustment board shall grant the petition if the petitioner
  225  establishes that the property is qualified to be classified as
  226  working waterfront property.
  227         (3)A denial of a petition for classification by the value
  228  adjustment board may be appealed to the circuit court.
  229         (4)(a)Property that receives a working waterfront
  230  classification from the value adjustment board or the circuit
  231  court under this section retains that classification in any
  232  subsequent year until the use of the property as working
  233  waterfront property is abandoned or discontinued, or the
  234  ownership changes in any manner. The property appraiser shall,
  235  no later than January 31 of each year, notify a property owner
  236  receiving a classification under this subsection to certify that
  237  the ownership and the use of the property has not changed. The
  238  department shall prescribe by rule adopted pursuant to ss.
  239  120.536(1) and 120.54 the form of the notice to be used by the
  240  property appraiser.
  241         (b)If a county has waived the requirement that an annual
  242  application or short form be filed for classification of the
  243  property under s. 193.7041, the county may, by majority vote of
  244  its governing body, waive the notice and certification
  245  requirements of this subsection and shall provide the property
  246  owner with the same notification as provided to property owners
  247  granted a working waterfront classification by the property
  248  appraiser. The waiver may be revoked by a majority vote of the
  249  county governing body.
  250         Section 4. This act shall take effect July 1, 2009.