1 | A bill to be entitled |
2 | An act relating to real property used for conservation |
3 | purposes; creating s. 196.26, F.S.; providing definitions; |
4 | providing for a full exemption for land dedicated in |
5 | perpetuity and used exclusively for conservation purposes; |
6 | providing a partial ad valorem tax exemption for |
7 | conservation land that is used for commercial purposes; |
8 | permitting land smaller than a certain size to qualify for |
9 | the exemption upon approval by the Acquisition and |
10 | Restoration Council; requiring the Acquisition and |
11 | Restoration Council to consider whether the property will |
12 | yield a significant public benefit; specifying criteria; |
13 | requiring approved lands to have a management plan; |
14 | specifying baseline documentation required for certain |
15 | conservation easements; providing for the assessment of |
16 | buildings and structures on exempted lands; exempting |
17 | certain structures and improvements from certain |
18 | assessments; requiring best management practices to be |
19 | used for certain agricultural lands; providing for third- |
20 | party conservation easement enforcement rights to water |
21 | management districts under certain circumstances; |
22 | requiring the Acquisition and Restoration Council to |
23 | maintain a list of certain enforcement entities; amending |
24 | s. 193.501, F.S.; revising a cross-reference; requiring |
25 | the owner of the land to annually apply to the property |
26 | appraiser by a certain date for the assessment based on |
27 | character or use; authorizing the property appraiser or |
28 | value adjustment board to grant late applications for such |
29 | assessments if extenuating circumstances are shown; |
30 | providing application requirements; providing for a |
31 | nonrefundable fee; providing for waiver of the annual |
32 | filing requirement under certain circumstances; requiring |
33 | a landowner to notify the property appraiser if the land |
34 | becomes ineligible for the assessment benefit; imposing |
35 | penalties for nonpayment of ad valorem taxes after a loss |
36 | of eligibility for the assessment benefit; directing the |
37 | property appraiser to record a notice of tax lien; |
38 | amending s. 704.06, F.S.; requiring owners of property |
39 | encumbered by a conservation easement to comply with |
40 | marketable record title requirements to preserve the |
41 | easement in perpetuity; amending s. 195.073, F.S.; |
42 | specifying an additional real property assessment |
43 | classification; amending s. 196.011, F.S.; providing |
44 | requirements and procedures for renewal applications for |
45 | exemptions for real property dedicated in perpetuity for |
46 | conservation purposes; requiring owners of such property |
47 | to notify the property appraiser when use of the property |
48 | no longer qualifies for the exemption; providing penalties |
49 | for failure to notify; providing for application of |
50 | certain lien provisions; amending s. 192.0105, F.S.; |
51 | conforming a cross-reference; creating s. 218.125, F.S.; |
52 | requiring the Legislature to appropriate moneys to offset |
53 | the reductions in ad valorem tax revenue experienced by |
54 | fiscally constrained counties; requiring each fiscally |
55 | constrained county to apply to the Department of Revenue |
56 | to participate in the distribution of the appropriation; |
57 | specifying the documentation that must be provided to the |
58 | department; providing a formula for calculating the |
59 | reduction in ad valorem tax revenue; authorizing the |
60 | department to adopt emergency rules effective for a |
61 | specified period; providing for renewal of such rules; |
62 | providing applicability; providing an effective date. |
63 |
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64 | Be It Enacted by the Legislature of the State of Florida: |
65 |
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66 | Section 1. Section 196.26, Florida Statutes, is created to |
67 | read: |
68 | 196.26 Exemption for real property dedicated in perpetuity |
69 | for conservation purposes.-- |
70 | (1) As used in this section: |
71 | (a) "Allowed commercial uses" means commercial uses that |
72 | are allowed by the conservation easement encumbering the land |
73 | exempt from taxation under this section. |
74 | (b) "Conservation easement" means the property right |
75 | described in s. 704.06. |
76 | (c) "Conservation purposes" means: |
77 | 1. Serving a conservation purpose, as defined in 26 U.S.C. |
78 | s. 170(h)(4)(A)(i)-(iii), for land which serves as the basis of |
79 | a qualified conservation contribution under 26 U.S.C. s. 170(h); |
80 | or |
81 | 2.a. Retention of the substantial natural value of land, |
82 | including woodlands, wetlands, water courses, ponds, streams, |
83 | and natural open spaces; |
84 | b. Retention of such lands as suitable habitat for fish, |
85 | plants, or wildlife; or |
86 | c. Retention of such lands' natural value for water |
87 | quality enhancement or water recharge. |
88 | (d) "Dedicated in perpetuity" means that the land is |
89 | encumbered by an irrevocable, perpetual conservation easement. |
90 | (2) Land that is dedicated in perpetuity for conservation |
91 | purposes and that is used exclusively for conservation purposes |
92 | is exempt from ad valorem taxation. Such exclusive use does not |
93 | preclude the receipt of income from activities that are |
94 | consistent with a management plan when the income is used to |
95 | implement, maintain, and manage the management plan. |
96 | (3) Land that is dedicated in perpetuity for conservation |
97 | purposes and that is used for allowed commercial uses is exempt |
98 | from ad valorem taxation to the extent of 50 percent of the |
99 | assessed value of the land. |
100 | (4) Land that comprises less than 40 contiguous acres does |
101 | not qualify for the exemption provided in this section unless, |
102 | in addition to meeting the other requirements of this section, |
103 | the use of the land for conservation purposes is determined by |
104 | the Acquisition and Restoration Council created in s. 259.035 to |
105 | fulfill a clearly delineated state conservation policy and yield |
106 | a significant public benefit. In making its determination of |
107 | public benefit, the Acquisition and Restoration Council must |
108 | give particular consideration to land that: |
109 | (a) Contains a natural sinkhole or natural spring that |
110 | serves a water recharge or production function; |
111 | (b) Contains a unique geological feature; |
112 | (c) Provides habitat for endangered or threatened species; |
113 | (d) Provides nursery habitat for marine and estuarine |
114 | species; |
115 | (e) Provides protection or restoration of vulnerable |
116 | coastal areas; |
117 | (f) Preserves natural shoreline habitat; or |
118 | (g) Provides retention of natural open space in otherwise |
119 | densely built-up areas. |
120 |
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121 | Any land approved by the Acquisition and Restoration Council |
122 | under this subsection must have a management plan and a |
123 | designated manager who will be responsible for implementing the |
124 | management plan. |
125 | (5) The conservation easement that serves as the basis for |
126 | the exemption granted by this section must include baseline |
127 | documentation as to the natural values to be protected on the |
128 | land and may include a management plan that details the |
129 | management of the land so as to effectuate the conservation of |
130 | natural resources on the land. |
131 | (6) Buildings, structures, and other improvements situated |
132 | on land receiving the exemption provided in this section and the |
133 | land area immediately surrounding the buildings, structures, and |
134 | improvements must be assessed separately pursuant to chapter |
135 | 193. However, structures and other improvements that are |
136 | auxiliary to the use of the land for conservation purposes are |
137 | exempt to the same extent as the underlying land. |
138 | (7) Land that qualifies for the exemption provided in this |
139 | section the allowed commercial uses of which include agriculture |
140 | must comply with the most recent best management practices if |
141 | adopted by rule of the Department of Agriculture and Consumer |
142 | Services. |
143 | (8) As provided in s. 704.06(8) and (9), water management |
144 | districts with jurisdiction over lands receiving the exemption |
145 | provided in this section have a third-party right of enforcement |
146 | to enforce the terms of the applicable conservation easement for |
147 | any easement that is not enforceable by a federal or state |
148 | agency, county, municipality, or water management district when |
149 | the holder of the easement is unable or unwilling to enforce the |
150 | terms of the easement. |
151 | (9) The Acquisition and Restoration Council, created in s. |
152 | 259.035, shall maintain a list of nonprofit entities that are |
153 | qualified to enforce the provisions of a conservation easement. |
154 | Section 2. Subsection (1) of section 193.501, Florida |
155 | Statutes, is amended, and subsections (8) and (9) are added to |
156 | that section, to read: |
157 | 193.501 Assessment of lands subject to a conservation |
158 | easement, environmentally endangered lands, or lands used for |
159 | outdoor recreational or park purposes when land development |
160 | rights have been conveyed or conservation restrictions have been |
161 | covenanted.-- |
162 | (1) The owner or owners in fee of any land subject to a |
163 | conservation easement as described in s. 704.06(1); land |
164 | qualified as environmentally endangered pursuant to paragraph |
165 | (6)(i) and so designated by formal resolution of the governing |
166 | board of the municipality or county within which such land is |
167 | located; land designated as conservation land in a comprehensive |
168 | plan adopted by the appropriate municipal or county governing |
169 | body; or any land which is utilized for outdoor recreational or |
170 | park purposes may, by appropriate instrument, for a term of not |
171 | less than 10 years: |
172 | (a) Convey the development right of such land to the |
173 | governing board of any public agency in this state within which |
174 | the land is located, or to the Board of Trustees of the Internal |
175 | Improvement Trust Fund, or to a charitable corporation or trust |
176 | as described in s. 704.06(3); or |
177 | (b) Covenant with the governing board of any public agency |
178 | in this state within which the land is located, or with the |
179 | Board of Trustees of the Internal Improvement Trust Fund, or |
180 | with a charitable corporation or trust as described in s. |
181 | 704.06(3), that such land be subject to one or more of the |
182 | conservation restrictions provided in s. 704.06(1) or not be |
183 | used by the owner for any purpose other than outdoor |
184 | recreational or park purposes. If land is covenanted and used |
185 | for an outdoor recreational purpose, the normal use and |
186 | maintenance of the land for that purpose, consistent with the |
187 | covenant, shall not be restricted. |
188 | (8) A person or organization that, on January 1, has the |
189 | legal title to land that is entitled by law to assessment under |
190 | this section shall, on or before March 1 of each year, file an |
191 | application for assessment under this section with the county |
192 | property appraiser. The application must identify the property |
193 | for which assessment under this section is claimed. The initial |
194 | application for assessment for any property must include a copy |
195 | of the instrument by which the development right is conveyed or |
196 | which establishes a covenant that establishes the conservation |
197 | purposes for which the land is used. The Department of Revenue |
198 | shall prescribe the forms upon which the application is made. |
199 | The failure to file an application on or before March 1 of any |
200 | year constitutes a waiver of assessment under this section for |
201 | that year. However, an applicant who is qualified to receive an |
202 | assessment under this section but fails to file an application |
203 | by March 1 may file an application for the assessment and may |
204 | file, pursuant to s. 194.011(3), a petition with the value |
205 | adjustment board requesting that the assessment be granted. The |
206 | petition must be filed at any time during the taxable year on or |
207 | before the 25th day following the mailing of the notice by the |
208 | property appraiser pursuant to s. 194.011(1). Notwithstanding s. |
209 | 194.013, the applicant must pay a nonrefundable fee of $15 upon |
210 | filing the petition. Upon reviewing the petition, if the person |
211 | is qualified to receive the assessment and demonstrates |
212 | particular extenuating circumstances judged by the property |
213 | appraiser or the value adjustment board to warrant granting the |
214 | assessment, the property appraiser or the value adjustment board |
215 | may grant the assessment. The owner of land that was assessed |
216 | under this section in the previous year and whose ownership or |
217 | use has not changed may reapply on a short form as provided by |
218 | the department. A county may, at the request of the property |
219 | appraiser and by a majority vote of its governing body, waive |
220 | the requirement that an annual application or statement be made |
221 | for assessment of property within the county. Such waiver may be |
222 | revoked by a majority vote of the governing body of the county. |
223 | (9) A person or entity that owns land assessed pursuant to |
224 | this section must notify the property appraiser promptly if the |
225 | land becomes ineligible for assessment under this section. If |
226 | any property owner fails to notify the property appraiser and |
227 | the property appraiser determines that for any year within the |
228 | preceding 10 years the land was not eligible for assessment |
229 | under this section, the owner of the land is subject to taxes |
230 | avoided as a result of such failure plus 15 percent interest per |
231 | annum and a penalty of 50 percent of the taxes avoided. The |
232 | property appraiser making such determination shall record in the |
233 | public records of the county a notice of tax lien against any |
234 | property owned by that person or entity in the county, and such |
235 | property must be identified in the notice of tax lien. The |
236 | property is subject to a lien in the amount of the unpaid taxes |
237 | and penalties. The lien when filed shall attach to any property |
238 | identified in the notice of tax lien which is owned by the |
239 | person or entity and which was improperly assessed. If such |
240 | person or entity no longer owns property in that county but owns |
241 | property in some other county or counties of this state, the |
242 | property appraiser shall record a notice of tax lien in such |
243 | other county or counties, identifying the property owned by such |
244 | person or entity. |
245 | Section 3. Subsection (12) is added to section 704.06, |
246 | Florida Statutes, to read: |
247 | 704.06 Conservation easements; creation; acquisition; |
248 | enforcement.-- |
249 | (12) An owner of property encumbered by a conservation |
250 | easement must abide by the requirements of chapter 712 or any |
251 | other similar law or rule to preserve the conservation easement |
252 | in perpetuity. |
253 | Section 4. Subsection (1) of section 195.073, Florida |
254 | Statutes, is amended to read: |
255 | 195.073 Classification of property.--All items required by |
256 | law to be on the assessment rolls must receive a classification |
257 | based upon the use of the property. The department shall |
258 | promulgate uniform definitions for all classifications. The |
259 | department may designate other subclassifications of property. |
260 | No assessment roll may be approved by the department which does |
261 | not show proper classifications. |
262 | (1) Real property must be classified according to the |
263 | assessment basis of the land into the following classes: |
264 | (a) Residential, subclassified into categories, one |
265 | category for homestead property and one for nonhomestead |
266 | property: |
267 | 1. Single family. |
268 | 2. Mobile homes. |
269 | 3. Multifamily. |
270 | 4. Condominiums. |
271 | 5. Cooperatives. |
272 | 6. Retirement homes. |
273 | (b) Commercial and industrial. |
274 | (c) Agricultural. |
275 | (d) Nonagricultural acreage. |
276 | (e) High-water recharge. |
277 | (f) Historic property used for commercial or certain |
278 | nonprofit purposes. |
279 | (g) Exempt, wholly or partially. |
280 | (h) Centrally assessed. |
281 | (i) Leasehold interests. |
282 | (j) Time-share property. |
283 | (k) Land assessed under s. 193.501. |
284 | (l)(k) Other. |
285 | Section 5. Subsections (6) and (9) of section 196.011, |
286 | Florida Statutes, are amended to read: |
287 | 196.011 Annual application required for exemption.-- |
288 | (6)(a) Once an original application for tax exemption has |
289 | been granted, in each succeeding year on or before February 1, |
290 | the property appraiser shall mail a renewal application to the |
291 | applicant, and the property appraiser shall accept from each |
292 | such applicant a renewal application on a form to be prescribed |
293 | by the Department of Revenue. Such renewal application shall be |
294 | accepted as evidence of exemption by the property appraiser |
295 | unless he or she denies the application. Upon denial, the |
296 | property appraiser shall serve, on or before July 1 of each |
297 | year, a notice setting forth the grounds for denial on the |
298 | applicant by first-class mail. Any applicant objecting to such |
299 | denial may file a petition as provided for in s. 194.011(3). |
300 | (b) Once an original application for tax exemption has |
301 | been granted under s. 196.26, in each succeeding year on or |
302 | before February 1, the property appraiser shall mail a renewal |
303 | application to the applicant on a form prescribed by the |
304 | Department of Revenue. The applicant must certify on the form |
305 | that the use of the property complies with the restrictions and |
306 | requirements of the conservation easement. The form shall |
307 | include a statement that the exemption granted under s. 196.26 |
308 | will not be renewed unless the application is returned to the |
309 | property appraiser. |
310 | (9)(a) A county may, at the request of the property |
311 | appraiser and by a majority vote of its governing body, waive |
312 | the requirement that an annual application or statement be made |
313 | for exemption of property within the county after an initial |
314 | application is made and the exemption granted. The waiver under |
315 | this subsection of the annual application or statement |
316 | requirement applies to all exemptions under this chapter except |
317 | the exemption under s. 196.1995. Notwithstanding such waiver, |
318 | refiling of an application or statement shall be required when |
319 | any property granted an exemption is sold or otherwise disposed |
320 | of, when the ownership changes in any manner, when the applicant |
321 | for homestead exemption ceases to use the property as his or her |
322 | homestead, or when the status of the owner changes so as to |
323 | change the exempt status of the property. In its deliberations |
324 | on whether to waive the annual application or statement |
325 | requirement, the governing body shall consider the possibility |
326 | of fraudulent exemption claims which may occur due to the waiver |
327 | of the annual application requirement. It is the duty of The |
328 | owner of any property granted an exemption who is not required |
329 | to file an annual application or statement shall to notify the |
330 | property appraiser promptly whenever the use of the property or |
331 | the status or condition of the owner changes so as to change the |
332 | exempt status of the property. If any property owner fails to so |
333 | notify the property appraiser and the property appraiser |
334 | determines that for any year within the prior 10 years the owner |
335 | was not entitled to receive such exemption, the owner of the |
336 | property is subject to the taxes exempted as a result of such |
337 | failure plus 15 percent interest per annum and a penalty of 50 |
338 | percent of the taxes exempted. Except for homestead exemptions |
339 | controlled by s. 196.161, it is the duty of the property |
340 | appraiser making such determination shall to record in the |
341 | public records of the county a notice of tax lien against any |
342 | property owned by that person or entity in the county, and such |
343 | property must be identified in the notice of tax lien. Such |
344 | property is subject to the payment of all taxes and penalties. |
345 | Such lien when filed shall attach to any property, identified in |
346 | the notice of tax lien, owned by the person who illegally or |
347 | improperly received the exemption. If Should such person no |
348 | longer owns own property in that county, but owns own property |
349 | in some other county or counties in the state, it shall be the |
350 | duty of the property appraiser shall to record a notice of tax |
351 | lien in such other county or counties, identifying the property |
352 | owned by such person or entity in such county or counties, and |
353 | it shall become a lien against such property in such county or |
354 | counties. |
355 | (b) The owner of any property granted an exemption under |
356 | s. 196.26 shall notify the property appraiser promptly whenever |
357 | the use of the property no longer complies with the restrictions |
358 | and requirements of the conservation easement. If the property |
359 | owner fails to so notify the property appraiser and the property |
360 | appraiser determines that for any year within the preceding 10 |
361 | years the owner was not entitled to receive the exemption, the |
362 | owner of the property is subject to taxes exempted as a result |
363 | of the failure plus 18 percent interest per annum and a penalty |
364 | of 100 percent of the taxes exempted. The provisions for tax |
365 | liens in paragraph (a) apply to property granted an exemption |
366 | under s. 196.26. |
367 | (c)(b) A county may, at the request of the property |
368 | appraiser and by a majority vote of its governing body, waive |
369 | the requirement that an annual application be made for the |
370 | veteran's disability discount granted pursuant to s. 6(g), Art. |
371 | VII of the State Constitution after an initial application is |
372 | made and the discount granted. It is the duty of The disabled |
373 | veteran receiving a discount for which annual application has |
374 | been waived shall to notify the property appraiser promptly |
375 | whenever the use of the property or the percentage of disability |
376 | to which the veteran is entitled changes. If a disabled veteran |
377 | fails to notify the property appraiser and the property |
378 | appraiser determines that for any year within the prior 10 years |
379 | the veteran was not entitled to receive all or a portion of such |
380 | discount, the penalties and processes in paragraph (a) relating |
381 | to the failure to notify the property appraiser of ineligibility |
382 | for an exemption shall apply. |
383 | (d)(c) For any exemption under s. 196.101(2), the |
384 | statement concerning gross income must be filed with the |
385 | property appraiser not later than March 1 of every year. |
386 | (e)(d) If an exemption for which the annual application is |
387 | waived pursuant to this subsection will be denied by the |
388 | property appraiser in the absence of the refiling of the |
389 | application, notification of an intent to deny the exemption |
390 | shall be mailed to the owner of the property prior to February |
391 | 1. If the property appraiser fails to timely mail such notice, |
392 | the application deadline for such property owner pursuant to |
393 | subsection (1) shall be extended to 28 days after the date on |
394 | which the property appraiser mails such notice. |
395 | Section 6. Paragraph (c) of subsection (2) of section |
396 | 192.0105, Florida Statutes, is amended to read: |
397 | 192.0105 Taxpayer rights.--There is created a Florida |
398 | Taxpayer's Bill of Rights for property taxes and assessments to |
399 | guarantee that the rights, privacy, and property of the |
400 | taxpayers of this state are adequately safeguarded and protected |
401 | during tax levy, assessment, collection, and enforcement |
402 | processes administered under the revenue laws of this state. The |
403 | Taxpayer's Bill of Rights compiles, in one document, brief but |
404 | comprehensive statements that summarize the rights and |
405 | obligations of the property appraisers, tax collectors, clerks |
406 | of the court, local governing boards, the Department of Revenue, |
407 | and taxpayers. Additional rights afforded to payors of taxes and |
408 | assessments imposed under the revenue laws of this state are |
409 | provided in s. 213.015. The rights afforded taxpayers to assure |
410 | that their privacy and property are safeguarded and protected |
411 | during tax levy, assessment, and collection are available only |
412 | insofar as they are implemented in other parts of the Florida |
413 | Statutes or rules of the Department of Revenue. The rights so |
414 | guaranteed to state taxpayers in the Florida Statutes and the |
415 | departmental rules include: |
416 | (2) THE RIGHT TO DUE PROCESS.-- |
417 | (c) The right to file a petition for exemption or |
418 | agricultural classification with the value adjustment board when |
419 | an application deadline is missed, upon demonstration of |
420 | particular extenuating circumstances for filing late (see ss. |
421 | 193.461(3)(a) and 196.011(1), (7), (8), and (9)(e)(d)). |
422 | Section 7. Section 218.125, Florida Statutes, is created |
423 | to read: |
424 | 218.125 Offset for tax loss associated with certain |
425 | constitutional amendments affecting fiscally constrained |
426 | counties.-- |
427 | (1) Beginning in the 2010-2011 fiscal year, the |
428 | Legislature shall appropriate moneys to offset the reductions in |
429 | ad valorem tax revenue experienced by fiscally constrained |
430 | counties, as defined in s. 218.67(1), which occur as a direct |
431 | result of the implementation of revisions of ss. 3(f) and 4(b) |
432 | of Art. VII of the State Constitution which were approved in the |
433 | general election held in November 2008. The moneys appropriated |
434 | for this purpose shall be distributed in January of each fiscal |
435 | year among the fiscally constrained counties based on each |
436 | county's proportion of the total reduction in ad valorem tax |
437 | revenue resulting from the implementation of the revisions. |
438 | (2) On or before November 15 of each year, beginning in |
439 | 2010, each fiscally constrained county shall apply to the |
440 | Department of Revenue to participate in the distribution of the |
441 | appropriation and provide documentation supporting the county's |
442 | estimated reduction in ad valorem tax revenue in the form and |
443 | manner prescribed by the Department of Revenue. The |
444 | documentation must include an estimate of the reduction in |
445 | taxable value directly attributable to revisions of Art. VII of |
446 | the State Constitution for all county taxing jurisdictions |
447 | within the county and shall be prepared by the property |
448 | appraiser in each fiscally constrained county. The documentation |
449 | must also include the county millage rates applicable in all |
450 | such jurisdictions for the current year and the prior year, |
451 | rolled-back rates determined as provided in s. 200.065 for each |
452 | county taxing jurisdiction, and maximum millage rates that could |
453 | have been levied by majority vote pursuant to s. 200.185. For |
454 | purposes of this section, each fiscally constrained county's |
455 | reduction in ad valorem tax revenue shall be calculated as 95 |
456 | percent of the estimated reduction in taxable value multiplied |
457 | by the lesser of the 2010 applicable millage rate or the |
458 | applicable millage rate for each county taxing jurisdiction in |
459 | the prior year. |
460 | Section 8. The Department of Revenue may adopt emergency |
461 | rules to administer s. 196.26, Florida Statutes, as created by |
462 | this act. The emergency rules shall remain in effect for 6 |
463 | months after adoption and may be renewed during the pendency of |
464 | procedures to adopt rules addressing the subject of the |
465 | emergency rules. |
466 | Section 9. This act shall take effect upon becoming a law |
467 | and shall apply to property tax assessments made on or after |
468 | January 1, 2010. |