| 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 for |
| 12 | waiver of penalties under certain circumstances; providing |
| 13 | requirements for property appraisers; providing for denial |
| 14 | of classification applications; providing procedures and |
| 15 | requirements for appealing application denials; providing |
| 16 | an effective date. |
| 17 |
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| 18 | Be It Enacted by the Legislature of the State of Florida: |
| 19 |
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| 20 | Section 1. Section 193.704, Florida Statutes, is created |
| 21 | to read: |
| 22 | 193.704 Working waterfront property; definitions; |
| 23 | classification and assessment; denial of classification and |
| 24 | appeal.-- |
| 25 | (1) DEFINITIONS.--For purposes of granting a working |
| 26 | waterfront property classification under this section for |
| 27 | January 1, 2010, and thereafter, the term: |
| 28 | (a) "Accessible to the public" means routinely available |
| 29 | to the public from sunrise to sunset, with or without charge, |
| 30 | with appropriate accommodations, including, but not limited to, |
| 31 | public parking or public boat ramps that are available for use |
| 32 | by the general public. |
| 33 | (b) "Commercial fishing operation" has the same meaning as |
| 34 | that provided in s. 379.2351. |
| 35 | (c) "Drystack" means a vessel storage facility or building |
| 36 | in which storage spaces for vessels are available for use by the |
| 37 | public on a first-come, first-served basis with no automatic |
| 38 | renewal rights or conditions. The term excludes storage that is |
| 39 | purchased, received, or rented as a result of homeownership or |
| 40 | 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 or in an |
| 47 | operation authorized in ss. 253.67-253.75. |
| 48 | (e) "Marina" means a licensed commercial facility that |
| 49 | provides secured public moorings or drystacks for vessels on a |
| 50 | first-come, first-served basis and with no automatic renewal |
| 51 | rights or conditions. The term excludes mooring or storage that |
| 52 | is purchased, received, or rented as a condition of |
| 53 | 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 boatyards. 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" includes any body of water |
| 72 | in the state that is capable, in its natural state, of being |
| 73 | navigated by floating vessels of any description for the purpose |
| 74 | of transportation, recreation, or commerce. The term also |
| 75 | includes a canal and any other body of water created or altered |
| 76 | for public use, as well as any waterway for which a public right |
| 77 | of navigation exists by dedication of the waterway for public |
| 78 | purposes or by the public having acquired the right to navigate |
| 79 | through long use. |
| 80 | (2) CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.-- |
| 81 | (a) The following waterfront properties are eligible for |
| 82 | classification as working waterfront property: |
| 83 | 1. Land used predominantly for commercial fishing |
| 84 | purposes. |
| 85 | 2. Land that is accessible to the public and used for |
| 86 | vessel launches into waters that are navigable. |
| 87 | 3. Marinas and drystacks that are open to the public. |
| 88 | 4. Water-dependent marine manufacturing facilities. |
| 89 | 5. Water-dependent commercial fishing facilities. |
| 90 | 6. Water-dependent marine vessel construction and repair |
| 91 | facilities and their support facilities. |
| 92 | (b)1. Property classified as working waterfront property |
| 93 | under this section shall be assessed solely on the basis of the |
| 94 | property's current use. The property appraiser shall consider |
| 95 | only the following use factors: |
| 96 | a. The condition of the property. |
| 97 | b. The present market value of the property in its current |
| 98 | use for the foreseeable future. |
| 99 | c. The income produced by the property. |
| 100 | 2. In no event shall the assessed value of the property |
| 101 | exceed just value. |
| 102 | (c)1. Property may not be classified as working waterfront |
| 103 | property unless an application for such classification is filed |
| 104 | with the property appraiser on or before March 1 of each year in |
| 105 | the county in which the property is located. Before approving |
| 106 | such classification, the property appraiser may require the |
| 107 | applicant to establish that the property is actually used as |
| 108 | required under this section. The property appraiser may require |
| 109 | the applicant to furnish the property appraiser such information |
| 110 | as may reasonably be required to establish that such property |
| 111 | was actually used for working waterfront purposes and to |
| 112 | establish the classified use value of the property, including |
| 113 | income and expense data. The owner or lessee of property |
| 114 | classified as working waterfront property in the prior year may |
| 115 | reapply on a short form provided by the Department of Revenue. |
| 116 | The lessee of property may make original application or reapply |
| 117 | on a short form if the lease, or an affidavit executed by the |
| 118 | owner, provides that the lessee is empowered to make application |
| 119 | for the working waterfront classification on behalf of the owner |
| 120 | and a copy of the lease of affidavit accompanies the |
| 121 | application. An applicant may withdraw an application on or |
| 122 | before the 25th day following the mailing of the notice of |
| 123 | proposed property taxes pursuant to s. 200.069 in the year the |
| 124 | application was filed. |
| 125 | 2. Failure by a property owner or lessee to apply for a |
| 126 | classification as working waterfront property by March 1 shall |
| 127 | constitute a waiver for 1 year of the privilege granted in this |
| 128 | section. However, a person who is qualified to receive a working |
| 129 | waterfront classification but who fails to timely apply for |
| 130 | classification may file an application for classification with |
| 131 | the property appraiser. Upon review of the application, if the |
| 132 | applicant is qualified to receive the classification and |
| 133 | demonstrates particular extenuating circumstances that warrant |
| 134 | the classification, the property appraiser may grant the |
| 135 | classification. |
| 136 | 3. A county, at the request of the property appraiser and |
| 137 | by a majority vote of its governing body, may waive the |
| 138 | requirement that an annual application or short form be filed |
| 139 | with the property appraiser for renewal of the classification of |
| 140 | property within the county as working waterfront property. Such |
| 141 | waiver may be revoked by a majority of the county governing |
| 142 | body. |
| 143 | 4. Notwithstanding subparagraph 2., a new application for |
| 144 | classification as working waterfront property must be filed with |
| 145 | the property appraiser whenever any property granted the |
| 146 | classification as working waterfront property is sold or |
| 147 | otherwise disposed of, whenever ownership or the lessee changes |
| 148 | in any manner, whenever the owner or lessee ceases to use the |
| 149 | property as working waterfront property, or whenever the status |
| 150 | of the owner or lessee changes so as to change the classified |
| 151 | status of the property. |
| 152 | 5. The property appraiser shall remove from the |
| 153 | classification as working waterfront property any property for |
| 154 | which the classified use has been abandoned or discontinued, or |
| 155 | the property has been diverted to an unclassified use. Such |
| 156 | removed property shall be assessed at just value as provided in |
| 157 | s. 193.011. |
| 158 | 6.a. The owner of any property classified as working |
| 159 | waterfront property who is not required to file an annual |
| 160 | application under this section, or the lessee if the application |
| 161 | was made by the lessee, shall notify the property appraiser |
| 162 | promptly whenever the use of the property or the status or |
| 163 | condition of the owner or lessee changes, so as to change the |
| 164 | classified status of the property. If any such property owner or |
| 165 | lessee fails to notify the property appraiser and the property |
| 166 | appraiser determines that for any year within the prior 10 years |
| 167 | the owner was not entitled to receive such classification, the |
| 168 | owner of the property is subject to taxes otherwise due and |
| 169 | owing as a result of such failure plus 15 percent interest per |
| 170 | annum and a penalty of 50 percent of the additional taxes owed. |
| 171 | However, the penalty may be waived if the owner or lessee can |
| 172 | demonstrate that he or she took reasonable care to properly |
| 173 | classify the property. |
| 174 | b. The property appraiser making such determination shall |
| 175 | record in the public records of the county in which the working |
| 176 | waterfront property is located a notice of tax lien against any |
| 177 | property owned by the working waterfront property owner, and |
| 178 | such property must be identified in the notice of tax lien. Such |
| 179 | property is subject to the payment of all taxes and penalties. |
| 180 | Such lien, when filed, attaches to any property identified in |
| 181 | the notice of tax lien owned by the person or entity that |
| 182 | illegally or improperly received the classification. If such |
| 183 | person or entity no longer owns property in that county but owns |
| 184 | property in another county or counties in the state, the |
| 185 | property appraiser shall record in such other county or counties |
| 186 | a notice of tax lien identifying the property owned by the |
| 187 | working waterfront property owner in such county or counties |
| 188 | which shall become a lien against the identified property. |
| 189 | 7. When a parcel receiving a working waterfront |
| 190 | classification contains facilities or vacant land not eligible |
| 191 | to be classified as a working waterfront property under this |
| 192 | subsection, such facilities and the facilities' curtilage, as |
| 193 | well as the vacant land, must be assessed separately as provided |
| 194 | in s. 193.011. |
| 195 | 8. The property appraiser shall have available at his or |
| 196 | her office a list by ownership of all applications for |
| 197 | classification as working waterfront property received, showing |
| 198 | the acreage, the full valuation under s. 193.011, the value of |
| 199 | the land under the provisions of this subsection, and whether or |
| 200 | not the classification was granted. |
| 201 | (3) DENIAL OF CLASSIFICATION; APPEAL.-- |
| 202 | (a) The property appraiser shall notify an applicant |
| 203 | applying for a working waterfront classification in writing of a |
| 204 | denial of an application for such classification on or before |
| 205 | July 1 of the year for which the application was filed. The |
| 206 | notification shall advise the applicant of his or her right to |
| 207 | appeal to the value adjustment board and of the appeal filing |
| 208 | deadline. |
| 209 | (b) Any applicant whose application for classification as |
| 210 | working waterfront property is denied by the property appraiser |
| 211 | may appeal to the value adjustment board by filing a petition |
| 212 | requesting that the classification be granted. The petition may |
| 213 | be filed on or before the 25th day following the mailing of the |
| 214 | assessment notice by the property appraiser as required under s. |
| 215 | 194.011(1). Notwithstanding the provisions of s. 194.013, the |
| 216 | petitioner shall pay a nonrefundable fee of $15 upon filing the |
| 217 | petition. Upon the value adjustment board's review of the |
| 218 | petition, if the petitioner is qualified to receive the |
| 219 | classification and demonstrates particular extenuating |
| 220 | circumstances which warrant granting the classification, the |
| 221 | value adjustment board may grant the petition and |
| 222 | classification. |
| 223 | (c) A denial of a petition for classification by the value |
| 224 | adjustment board may be appealed to a court of competent |
| 225 | jurisdiction. |
| 226 | (d)1. Property that has received a working waterfront |
| 227 | classification from the value adjustment board or a court of |
| 228 | competent jurisdiction under this subsection is entitled to |
| 229 | receive such classification in any subsequent year until such |
| 230 | use is changed, abandoned, or discontinued, or the ownership |
| 231 | changes in any manner as provided in subparagraph (2)(c)4. The |
| 232 | property appraiser shall, no later than January 31 of each year, |
| 233 | provide notice to the property owner or lessee receiving a |
| 234 | classification under this subsection requiring the property |
| 235 | owner or lessee qualified to make application to certify that |
| 236 | the ownership and the use of the property has not changed. The |
| 237 | department shall prescribe by rule the form of the notice to be |
| 238 | used by the property appraiser. |
| 239 | 2. If a county has waived the requirement that an annual |
| 240 | application or short form be filed for classification of the |
| 241 | property under subsection (2), the county may, by majority vote |
| 242 | of its governing body, waive the notice and certification |
| 243 | requirements of this paragraph and shall provide the property |
| 244 | owner or lessee with the same notification as provided to |
| 245 | property owners granted a working waterfront classification by |
| 246 | the property appraiser. Such waiver may be revoked by a majority |
| 247 | vote of the county governing body. |
| 248 | Section 2. This act shall take effect October 1, 2009, and |
| 249 | shall apply to assessments beginning January 1, 2010. |