| 1 | A bill to be entitled |
| 2 | An act relating to ad valorem taxation of working |
| 3 | waterfront property; creating s. 193.704, F.S.; providing |
| 4 | definitions; providing for classification and assessment |
| 5 | of certain properties based upon current use; providing |
| 6 | requirements for an assessment methodology; providing |
| 7 | classification application requirements, limitations, and |
| 8 | procedures; providing for continuing classification of |
| 9 | such property under certain circumstances; providing |
| 10 | limitations; providing for loss of classification under |
| 11 | certain circumstances; providing penalties; providing |
| 12 | requirements for property appraisers; providing for denial |
| 13 | of classification applications; providing procedures and |
| 14 | requirements for appealing application denials; providing |
| 15 | an effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Section 193.704, Florida Statutes, is created |
| 20 | to read: |
| 21 | 193.704 Working waterfront property; definitions; |
| 22 | classification and assessment; denial of classification and |
| 23 | appeal.-- |
| 24 | (1) DEFINITIONS.--For purposes of granting a working |
| 25 | waterfront property classification under this section for |
| 26 | January 1, 2010, and thereafter, the term: |
| 27 | (a) "Accessible to the public" means routinely open to the |
| 28 | public from sunrise to sunset, with or without charge, with |
| 29 | appropriate accommodations, including, but not limited to, |
| 30 | public parking or public boat ramps that are available for use |
| 31 | by the general public. |
| 32 | (b) "Commercial fishing operation" has the same meaning as |
| 33 | that provided in s. 379.2351. |
| 34 | (c) "Drystack" means a vessel storage facility or building |
| 35 | in which storage spaces for vessels are available for use by the |
| 36 | public on a first-come, first-served basis with no automatic |
| 37 | renewal rights or conditions. The term excludes drystacks in |
| 38 | which vessel storage is limited to persons purchasing, |
| 39 | receiving, or renting a storage space as a condition of |
| 40 | homeownership or tenancy. |
| 41 | (d) "Land used predominantly for commercial fishing |
| 42 | purposes" means land used in good faith in a venture for-profit |
| 43 | commercial fishing operation for the taking or harvesting of |
| 44 | freshwater fish or saltwater products, as defined in s. 379.101, |
| 45 | for which a commercial license to take, harvest, or sell such |
| 46 | fish or products is required under chapter 379. |
| 47 | (e) "Marina" means a licensed commercial facility that |
| 48 | provides secured public moorings or drystacks for vessels on a |
| 49 | first-come, first-served basis and with no automatic renewal |
| 50 | rights or conditions. The term excludes marinas at which mooring |
| 51 | or storage of a vessel is limited to persons purchasing, |
| 52 | receiving, or renting a mooring slip or storage space as a |
| 53 | condition of homeownership or tenancy. |
| 54 | (f) "Marine manufacturing facility" means a facility that |
| 55 | manufactures vessels for use in waters that are navigable. |
| 56 | (g) "Marine vessel construction and repair facility" means |
| 57 | a facility that constructs and repairs vessels that travel over |
| 58 | waters that are navigable, including, but not limited to, |
| 59 | shipyards and dockyards. As used in this section, the term |
| 60 | "repair" includes retrofitting and maintenance of vessels. |
| 61 | (h) "Open to the public" means for hire to the general |
| 62 | public and accessible during normal operating hours. |
| 63 | (i) "Support facility" means a facility that typically is |
| 64 | colocated with marine vessel construction and repair facilities, |
| 65 | including, but not limited to, shops, equipment, and salvage |
| 66 | facilities. |
| 67 | (j) "Water-dependent" means that the operations of a |
| 68 | facility require direct access to water. |
| 69 | (k) "Waterfront" means property that is on, over, or |
| 70 | abutting waters that are navigable. |
| 71 | (l) "Waters that are navigable" means the waters of the |
| 72 | state that are capable of supporting boating and that are used |
| 73 | or may be used in their ordinary condition as highways for |
| 74 | commerce for which trade or travel are or may be conducted in |
| 75 | the customary modes of trade or travel on water. |
| 76 | (2) CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.-- |
| 77 | (a) The following waterfront property is eligible for |
| 78 | classification as working waterfront property: |
| 79 | 1. Land used predominantly for commercial fishing |
| 80 | purposes. |
| 81 | 2. Land that is accessible to the public and used for |
| 82 | vessel launches into waters that are navigable. |
| 83 | 3. Marinas and drystacks that are open to the public. |
| 84 | 4. Water-dependent marine manufacturing facilities. |
| 85 | 5. Water-dependent commercial fishing facilities. |
| 86 | 6. Water-dependent marine vessel construction and repair |
| 87 | facilities and their support facilities. |
| 88 | (b) Property classified as working waterfront property |
| 89 | under this section shall be assessed on the basis of current |
| 90 | use. Assessed value must be calculated using the income approach |
| 91 | to value as described in The Appraisal of Real Estate, |
| 92 | Thirteenth Edition, published by the Appraisal Institute, and |
| 93 | using a capitalization rate based upon a debt coverage ratio |
| 94 | formula, whereby the capitalization rate equals the debt |
| 95 | coverage ratio times the mortgage capitalization rate times the |
| 96 | loan to value ratio for comparable properties. The |
| 97 | capitalization rate must be calculated and updated annually. In |
| 98 | assessing working waterfront property on an income approach to |
| 99 | value basis, property appraisers shall use data from lenders |
| 100 | regarding industrywide loan interest rates, loan to value |
| 101 | ratios, amortization terms, payment periods, debt coverage ratio |
| 102 | requirements, market rental rates, market expense rates, and |
| 103 | market vacancy rates. Such data shall be county specific unless |
| 104 | insufficient data is available, in which case the property |
| 105 | appraisers shall use data from surrounding counties. |
| 106 | (c)1. Property may not be classified as working waterfront |
| 107 | property unless an application for such classification is filed |
| 108 | with the property appraiser on or before March 1 of each year in |
| 109 | the county in which the property is located. Before approving |
| 110 | such classification, the property appraiser may require the |
| 111 | property owner to establish that the property is actually used |
| 112 | as required under this section. The owner of property classified |
| 113 | as working waterfront property in the prior year may reapply on |
| 114 | a short form provided by the Department of Revenue. |
| 115 | 2. Failure by a property owner to apply for a |
| 116 | classification as working waterfront property by March 1 shall |
| 117 | constitute a waiver for 1 year of the privilege granted in this |
| 118 | section. However, a property owner who is qualified to receive a |
| 119 | working waterfront classification but who fails to timely apply |
| 120 | for classification may file an application for classification |
| 121 | with the property appraiser. Upon review of the application, if |
| 122 | the person is qualified to receive the classification and |
| 123 | demonstrates particular extenuating circumstances that warrant |
| 124 | the classification, the property appraiser may grant the |
| 125 | classification. |
| 126 | 3. A county, at the request of the property appraiser and |
| 127 | by a majority vote of its governing body, may waive the |
| 128 | requirement that an annual application or short form be filed |
| 129 | with the property appraiser for renewal of the classification of |
| 130 | property within the county as working waterfront property. Such |
| 131 | waiver may be revoked by a majority of the county governing |
| 132 | body. |
| 133 | 4. Notwithstanding subparagraph 2., a new application for |
| 134 | classification as working waterfront property must be filed with |
| 135 | the property appraiser whenever any property granted the |
| 136 | classification as working waterfront property is sold or |
| 137 | otherwise disposed of, whenever ownership changes in any manner, |
| 138 | whenever the owner ceases to use the property as working |
| 139 | waterfront property, or whenever the status of the owner changes |
| 140 | so as to change the classified status of the property. |
| 141 | 5. The property appraiser shall remove from the |
| 142 | classification as working waterfront property any property for |
| 143 | which the classified use has been abandoned or discontinued, or |
| 144 | the property has been diverted to an unclassified use. Such |
| 145 | removed property shall be assessed at just value as provided in |
| 146 | s. 193.011. |
| 147 | 6.a. The owner of any property classified as working |
| 148 | waterfront property who is not required to file an annual |
| 149 | application under this section shall notify the property |
| 150 | appraiser promptly whenever the use of the property or the |
| 151 | status or condition of the owner changes, so as to change the |
| 152 | classified status of the property. If any such property owner |
| 153 | fails to notify the property appraiser and the property |
| 154 | appraiser determines that for any year within the prior 10 years |
| 155 | the owner was not entitled to receive such classification, the |
| 156 | owner of the property is subject to taxes otherwise due and |
| 157 | owing as a result of such failure plus 15 percent interest per |
| 158 | annum and a penalty of 50 percent of the additional taxes owed. |
| 159 | b. The property appraiser making such determination shall |
| 160 | record in the public records of the county in which the working |
| 161 | waterfront property is located a notice of tax lien against any |
| 162 | property owned by the working waterfront property owner, and |
| 163 | such property must be identified in the notice of tax lien. Such |
| 164 | property is subject to the payment of all taxes and penalties. |
| 165 | Such lien, when filed, attaches to any property identified in |
| 166 | the notice of tax lien owned by the person or entity that |
| 167 | illegally or improperly received the classification. If such |
| 168 | person or entity no longer owns property in that county but owns |
| 169 | property in another county or counties in the state, the |
| 170 | property appraiser shall record in such other county or counties |
| 171 | a notice of tax lien identifying the property owned by the |
| 172 | working waterfront property owner in such county or counties |
| 173 | which shall become a lien against the identified property. |
| 174 | 7. When property receiving a working waterfront |
| 175 | classification contains under the same ownership a residence, or |
| 176 | a marina, drystack, or other facility not eligible to be |
| 177 | classified as a working waterfront property under this |
| 178 | subsection, the portion of the property consisting of the |
| 179 | residence, marina, drystack, or other facility and the |
| 180 | property's curtilage must be assessed separately as provided in |
| 181 | s. 193.011. |
| 182 | 8. The property appraiser shall have available at his or |
| 183 | her office a list by ownership of all applications for |
| 184 | classification as working waterfront property received, showing |
| 185 | the acreage, the full valuation under s. 193.011, the value of |
| 186 | the land under the provisions of this subsection, and whether or |
| 187 | not the classification was granted. |
| 188 | (3) DENIAL OF CLASSIFICATION; APPEAL.-- |
| 189 | (a) The property appraiser shall notify a property owner |
| 190 | applying for a working waterfront classification in writing of a |
| 191 | denial of an application for such classification on or before |
| 192 | July 1 of the year for which the application was filed. The |
| 193 | notification shall advise the property owner of his or her right |
| 194 | to appeal to the value adjustment board and of the appeal filing |
| 195 | deadline. |
| 196 | (b) Any property owner whose application for |
| 197 | classification as working waterfront property is denied by the |
| 198 | property appraiser may appeal to the value adjustment board by |
| 199 | filing a petition requesting that the classification be granted. |
| 200 | The petition may be filed on or before the 25th day following |
| 201 | the mailing of the assessment notice by the property appraiser |
| 202 | as required under s. 194.011(1). Notwithstanding the provisions |
| 203 | of s. 194.013, the petitioner shall pay a nonrefundable fee of |
| 204 | $15 upon filing the petition. Upon the value adjustment board's |
| 205 | review of the petition, if the petitioner is qualified to |
| 206 | receive the classification and demonstrates particular |
| 207 | extenuating circumstances which warrant granting the |
| 208 | classification, the value adjustment board may grant the |
| 209 | petition and classification. |
| 210 | (c) A denial of a petition for classification by the value |
| 211 | adjustment board may be appealed to a court of competent |
| 212 | jurisdiction. |
| 213 | (d)1. Property that has received a working waterfront |
| 214 | classification from the value adjustment board or a court of |
| 215 | competent jurisdiction under this subsection is entitled to |
| 216 | receive such classification in any subsequent year until such |
| 217 | use is abandoned or discontinued, or the ownership changes in |
| 218 | any manner as provided in subparagraph (2)(c)4. The property |
| 219 | appraiser shall, no later than January 31 of each year, provide |
| 220 | notice to the property owner receiving a classification under |
| 221 | this subsection requiring the property owner to certify that the |
| 222 | ownership and the use of the property has not changed. The |
| 223 | department shall prescribe by rule the form of the notice to be |
| 224 | used by the property appraiser. |
| 225 | 2. If a county has waived the requirement that an annual |
| 226 | application or short form be filed for classification of the |
| 227 | property under subsection (2), the county may, by majority vote |
| 228 | of its governing body, waive the notice and certification |
| 229 | requirements of this paragraph and shall provide the property |
| 230 | owner with the same notification as provided to property owners |
| 231 | granted a working waterfront classification by the property |
| 232 | appraiser. Such waiver may be revoked by a majority vote of the |
| 233 | county governing body. |
| 234 | Section 2. This act shall take effect October 1, 2009. |