CS for SB 1408                             First Engrossed (ntc)
       
       
       
       
       
       
       
       
       20101408e1
       
    1                        A bill to be entitled                      
    2         An act relating to working waterfront property;
    3         creating s. 193.704, F.S.; providing definitions;
    4         specifying properties that are eligible for
    5         classification as working waterfront property;
    6         requiring the assessment of working waterfront
    7         property based on current use; specifying a
    8         methodology for determining assessed value; requiring
    9         property appraisers to consider specified factors in
   10         assessing certain property; providing for assessment
   11         of a portion of property within a working waterfront
   12         property which is not used as working waterfront
   13         property; requiring an application for classification
   14         of property as working waterfront property; specifying
   15         application requirements; authorizing a property
   16         appraiser to approve an application not filed by a
   17         certain deadline due to extenuating circumstances;
   18         providing for waiver of annual application
   19         requirements; providing for loss of classification
   20         upon a change of ownership or use; requiring property
   21         owners to notify the property appraiser of changes in
   22         use or ownership of property; imposing a penalty for
   23         failure to notify the property appraiser of an event
   24         resulting in the unlawful or improper classification
   25         of property as working waterfront property; requiring
   26         imposition of tax liens to recover penalties and
   27         interest; requiring property appraisers to make a list
   28         relating to applications to certify property as
   29         working waterfront property; providing an appeal
   30         process for applications that have been denied;
   31         amending s. 195.073, F.S.; providing for the
   32         classification of land as working waterfront property
   33         on an assessment roll; amending s. 380.5105, F.S.;
   34         providing new program objectives for the Stan Mayfield
   35         Working Waterfronts Program and the Florida Forever
   36         Program which are to be considered in selecting
   37         projects; providing emergency rulemaking authority;
   38         providing for severability; providing for retroactive
   39         application; specifying the date to apply for a
   40         working waterfront classification for 2010; providing
   41         effective dates.
   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         193.704 Working waterfront property; definitions;
   48  classification and assessment; denial of classification and
   49  appeal.—
   50         (1) DEFINITIONS.—As used in this section, the term:
   51         (a) “Accessible to the public” means routinely available to
   52  the public from sunrise to sunset, with or without charge, and
   53  having appropriate accommodations, including, but not limited
   54  to, public parking or public boat ramps that are available for
   55  use by the general public.
   56         (b) “Commercial fishing facility” means docks, piers,
   57  processing houses, or other facilities that support a commercial
   58  fishing operation or an aquaculture operation certified under
   59  chapter 597.
   60         (c) “Commercial fishing operation” has the same meaning as
   61  that provided in s. 379.2351.
   62         (d) “Drystack” means a licensed commercial vessel storage
   63  facility or building in which storage spaces for vessels are
   64  available for use by the public on a first-come, first-served
   65  basis. The term excludes storage that is purchased, received, or
   66  rented as a result of homeownership or tenancy.
   67         (e) “Land used predominantly for commercial fishing
   68  purposes” means land used in good faith in a for-profit
   69  commercial fishing operation for the taking or harvesting of
   70  freshwater fish or saltwater products, as defined in s. 379.101,
   71  for which a commercial license to take, harvest, or sell such
   72  fish or products is required under chapter 379, or land used in
   73  an aquaculture operation certified under chapter 597.
   74         (f) “Marina” means a licensed commercial facility that
   75  provides secured public docks or moorings or drystacks for
   76  vessels on a first-come, first-served basis. The term excludes
   77  dockage, mooring, or storage that is purchased, received, or
   78  rented as a result of homeownership or tenancy.
   79         (g) “Marine manufacturing facility” means a facility that
   80  manufactures vessels for use in waters that are navigable.
   81         (h) “Marine vessel construction and repair facility” means
   82  a facility that constructs and repairs vessels that travel over
   83  waters that are navigable, including, but not limited to,
   84  shipyards and boatyards.
   85         (i) “Open to the public” means for hire to the general
   86  public and accessible during normal operating hours.
   87         (j) “Repair” includes retrofitting and maintenance of
   88  vessels.
   89         (k) “Right of way” has the same meaning as provided in s.
   90  334.03.
   91         (l) “Support facility” means a facility that typically is
   92  collocated with marine vessel construction and repair
   93  facilities, including, but not limited to, shops, equipment, and
   94  salvage facilities.
   95         (m) “Water-dependent” means that the activities performed
   96  in the facility can be conducted only on, in, over, or adjacent
   97  to waters that are navigable, require direct access to water,
   98  and involve the use of water as an integral part of such
   99  activity.
  100         (n) “Waterfront” means property that is on, over, or
  101  abutting waters that are navigable. Property that is separated
  102  from property abutting waters that are navigable by a right-of
  103  way may be considered waterfront property, if:
  104         1.The properties on both sides of the right-of-way are
  105  under common ownership;
  106         2. The properties on both sides of the right-of-way are
  107  part of the same business enterprise;
  108         3. The property that is separated from the water by the
  109  right-of-way has direct access to the water by crossing the
  110  right-of-way.
  111         (o)“Waters that are navigable” means waters that support
  112  navigation by floating vessels of any description for the
  113  purpose of transportation, recreation, or commerce.
  114         (2) CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.—
  115         (a) The following waterfront properties are eligible for
  116  classification as working waterfront property:
  117         1. Land used predominantly for commercial fishing purposes.
  118         2. Land that is accessible to the public and used for
  119  vessel launches into waters that are navigable.
  120         3. Marinas and drystacks that are open to the public.
  121         4. Water-dependent marine manufacturing facilities.
  122         5. Water-dependent commercial fishing facilities.
  123         6. Water-dependent marine vessel construction and repair
  124  facilities and their support facilities.
  125         7. Water-dependent facilities located in a county defined
  126  in s. 125.011(1):
  127         a. Used for the commercial transportation of goods and
  128  people to and from foreign ports; or
  129         b. Used to provide towing, storage, and salvage in support
  130  of the facilities described in sub-subparagraph a.
  131         (b) Property classified as working waterfront property
  132  under this section shall be assessed on the basis of current
  133  use.
  134         1.If the income approach to value is appropriate to the
  135  property and if adequate local data on comparable rental rates,
  136  expense rates, and vacancy rates are available to the property
  137  appraiser, the assessed value shall be established using the
  138  income approach to value, using an overall capitalization rate
  139  based upon the debt coverage ratio formula, adjusted for the
  140  effective tax rate. The overall capitalization rate shall be
  141  calculated annually and shall be based on local data.
  142         2. If the conditions required for assessment under
  143  subparagraph 1. are not satisfied, the property appraiser shall
  144  value the property at its present cash value as if it were
  145  required to remain in its current use into the foreseeable
  146  future.
  147         3. In no event may the assessed value of the property
  148  exceed just value.
  149         4.If a parcel contains both uses eligible for assessment
  150  under this section and uses that are not eligible for assessment
  151  under this section, those portions of the property that are not
  152  eligible for assessment under this section must be assessed
  153  separately as otherwise provided by this chapter.
  154         (c)1. Property may not be classified as working waterfront
  155  property unless an application for such classification is filed
  156  with the property appraiser on or before March 1 of each year in
  157  the county in which the property is located. Before approving
  158  such classification, the property appraiser may require the
  159  applicant to establish that the property is actually used as
  160  required under this section. The property appraiser may require
  161  the applicant to furnish the property appraiser such information
  162  as may reasonably be required to establish that such property
  163  was actually used for working waterfront purposes and to
  164  establish the classified use value of the property, including
  165  income and expense data. The owner or lessee of property
  166  classified as working waterfront property in the prior year may
  167  reapply on a short form provided by the department. The lessee
  168  of property may make original application or reapply on a short
  169  form if the lease, or an affidavit executed by the owner,
  170  provides that the lessee is empowered to make application for
  171  the working waterfront classification on behalf of the owner and
  172  a copy of the lease or affidavit accompanies the application. An
  173  applicant may withdraw an application on or before the 25th day
  174  following the mailing of the notice of proposed property taxes
  175  pursuant to s. 200.069 in the year the application was filed.
  176         2. Any property owner or lessee who fails to file an
  177  application for classification as working waterfront property by
  178  March 1 may file an application for classification with the
  179  property appraiser on or before the 25th day following the
  180  mailing of the notice of proposed property taxes pursuant to s.
  181  200.069. Upon review of the application, if the applicant is
  182  qualified to receive the classification and demonstrates
  183  particular extenuating circumstances that warrant the
  184  classification, the property appraiser may grant the
  185  classification.
  186         3. A county, at the request of the property appraiser and
  187  by a majority vote of its governing body, may waive the
  188  requirement that an annual application or short form be filed
  189  with the property appraiser for renewal of the classification of
  190  property within the county as working waterfront property. Such
  191  waiver may be revoked by a majority of the county governing
  192  body.
  193         4. Notwithstanding subparagraph 2., a new application for
  194  classification as working waterfront property must be filed with
  195  the property appraiser whenever any property granted the
  196  classification as working waterfront property is sold or
  197  otherwise disposed of, ownership or the lessee changes in any
  198  manner, the owner or the lessee ceases to use the property as
  199  working waterfront property, or whenever the status of the owner
  200  or the lessee changes so as to change the classified status of
  201  the property.
  202         5. The property appraiser shall remove from the
  203  classification as working waterfront property any property for
  204  which the classified use has been abandoned or discontinued or
  205  the property has been diverted to an unclassified use. Such
  206  removed property shall be assessed at just value as provided in
  207  s. 193.011.
  208         6.a. The owner of any property classified as working
  209  waterfront property who is not required to file an annual
  210  application under this section, and the lessee if the
  211  application was made by the lessee, shall notify the property
  212  appraiser promptly whenever the use of the property or the
  213  status or condition of the owner or lessee changes, so as to
  214  change the classified status of the property. If any such
  215  property owner or lessee fails to notify the property appraiser
  216  and the property appraiser determines that for any year within
  217  the prior 10 years the owner was not entitled to receive such
  218  classification, the owner of the property is subject to taxes
  219  otherwise due and owing as a result of such failure plus 15
  220  percent interest per annum and a penalty of 50 percent of the
  221  additional taxes owed. However, the penalty may be waived if the
  222  owner or lessee can demonstrate that he or she took reasonable
  223  care to notify the property appraiser of the change in use,
  224  status, or condition of the property.
  225         b. The property appraiser making such determination shall
  226  record in the public records of the county in which the working
  227  waterfront property is located a notice of tax lien against any
  228  property owned by the working waterfront property owner. Such
  229  property must be identified in the notice of tax lien. Such
  230  property is subject to the payment of all taxes and penalties.
  231  Such lien, when filed, attaches to any property identified in
  232  the notice of tax lien owned by the person or entity that
  233  illegally or improperly received the classification. If such
  234  person or entity no longer owns property in that county but owns
  235  property in another county or counties in the state, the
  236  property appraiser shall record in such other county or counties
  237  a notice of tax lien identifying the property owned by the
  238  working waterfront property owner in such county or counties,
  239  which shall become a lien against the identified property.
  240         7. The property appraiser shall have available at his or
  241  her office a list by ownership of all applications received for
  242  classification of property as working waterfront property,
  243  showing the acreage, the full valuation under s. 193.011, the
  244  value of the land under the provisions of this subsection, and
  245  whether the classification was granted.
  246         (3) DENIAL OF CLASSIFICATION; APPEAL.—
  247         (a) If an application for working waterfront classification
  248  is made by March 1, the property appraiser shall notify the
  249  applicant in writing of a denial of the application on or before
  250  July 1 of the year for which the application was filed. The
  251  notification shall advise the applicant of his or her right to
  252  appeal to the value adjustment board and of the appeal filing
  253  deadline.
  254         (b) Any applicant whose application for classification as
  255  working waterfront property is denied by the property appraiser
  256  may appeal to the value adjustment board by filing a petition
  257  requesting that the classification be granted. The petition may
  258  be filed on or before the 25th day following the mailing of the
  259  assessment notice by the property appraiser as required under s.
  260  194.011(1). Notwithstanding the provisions of s. 194.013, the
  261  petitioner shall pay a nonrefundable fee of $15 upon filing the
  262  petition. Upon the value adjustment board’s review of the
  263  petition, if the petitioner is qualified to receive the
  264  classification and demonstrates particular extenuating
  265  circumstances that warrant granting the classification, the
  266  value adjustment board may grant the petition and
  267  classification.
  268         (c) A denial of a petition for classification by the value
  269  adjustment board may be appealed to a court of competent
  270  jurisdiction.
  271         (d)1. Property that has received a working waterfront
  272  classification from the value adjustment board or a court of
  273  competent jurisdiction under this subsection is entitled to
  274  receive such classification in any subsequent year until such
  275  use is changed, abandoned, or discontinued or the ownership
  276  changes in any manner as provided in subparagraph (2)(c)4. The
  277  property appraiser shall, no later than January 31 of each year,
  278  provide notice to the property owner or lessee receiving a
  279  classification under this subsection requiring the property
  280  owner or a lessee qualified to make application to certify that
  281  the ownership and the use of the property has not changed. The
  282  department shall prescribe by rule the form of the notice to be
  283  used by the property appraiser.
  284         2. If a county has waived the requirement that an annual
  285  application or short form be filed for classification of the
  286  property under subsection (2), the county may, by majority vote
  287  of its governing body, waive the notice and certification
  288  requirements of this paragraph and shall provide the property
  289  owner or lessee with the same notification as provided to
  290  property owners granted a working waterfront classification by
  291  the property appraiser. Such waiver may be revoked by a majority
  292  vote of the county governing body.
  293         Section 2. Subsection (1) of section 195.073, Florida
  294  Statutes, is amended to read:
  295         195.073 Classification of property.—All items required by
  296  law to be on the assessment rolls must receive a classification
  297  based upon the use of the property. The department shall
  298  promulgate uniform definitions for all classifications. The
  299  department may designate other subclassifications of property.
  300  No assessment roll may be approved by the department which does
  301  not show proper classifications.
  302         (1) Real property must be classified according to the
  303  assessment basis of the land into the following classes:
  304         (a) Residential, subclassified into categories, one
  305  category for homestead property and one for nonhomestead
  306  property:
  307         1. Single family.
  308         2. Mobile homes.
  309         3. Multifamily.
  310         4. Condominiums.
  311         5. Cooperatives.
  312         6. Retirement homes.
  313         (b) Commercial and industrial.
  314         (c) Agricultural.
  315         (d) Nonagricultural acreage.
  316         (e) High-water recharge.
  317         (f) Historic property used for commercial or certain
  318  nonprofit purposes.
  319         (g) Exempt, wholly or partially.
  320         (h) Centrally assessed.
  321         (i) Leasehold interests.
  322         (j) Time-share property.
  323         (k) Land assessed under s. 193.501.
  324         (l) Working waterfront property.
  325         (m)(l) Other.
  326         Section 3. Effective July 1, 2010, subsection (2) of
  327  section 380.5105, Florida Statutes, is amended to read:
  328         380.5105 The Stan Mayfield Working Waterfronts; Florida
  329  Forever program.—
  330         (2) The trust and the Department of Agriculture and
  331  Consumer Services shall jointly develop rules specifically
  332  establishing an application process and a process for the
  333  evaluation, scoring and ranking of working waterfront
  334  acquisition projects. The proposed rules jointly developed
  335  pursuant to this subsection shall be adopted promulgated by the
  336  trust. Such rules shall ensure that the following general
  337  program objectives are considered in selecting establish a
  338  system of weighted criteria to give increased priority to
  339  projects:
  340         (a) That projects demonstrate a strong contribution to the
  341  preservation of this state’s commercial fishing, marine, or
  342  aquaculture industries. Within a municipality with a population
  343  less than 30,000;
  344         (b) That projects are located in areas being converted or
  345  threatened with conversion to uses that are incompatible with
  346  working waterfront uses or are not marine or fishing uses.
  347  Within a municipality or area under intense growth and
  348  development pressures, as evidenced by a number of factors,
  349  including a determination that the municipality’s growth rate
  350  exceeds the average growth rate for the state;
  351         (c) That projects provide a demonstrable benefit to the
  352  local or state economy leading to employment opportunities in
  353  commercial fishing, marine, aquaculture, and related industries.
  354  Within the boundary of a community redevelopment agency
  355  established pursuant to s. 163.356;
  356         (d) That projects have been used for commercial fishing,
  357  marine, or aquaculture purposes or would create an opportunity
  358  to be used for commercial fishing, marine, or aquaculture
  359  purposes. Adjacent to state-owned submerged lands designated as
  360  an aquatic preserve identified in s. 258.39; or
  361         (e)That provide a demonstrable benefit to the local
  362  economy.
  363         Section 4. The Department of Revenue may adopt emergency
  364  rules to administer s. 193.704, Florida Statutes, as created by
  365  this act. The emergency rules shall remain in effect for 6
  366  months after adoption and may be renewed during the pendency of
  367  procedures to adopt rules addressing the subject of the
  368  emergency rules.
  369         Section 5. If any provision of this act or the application
  370  thereof to any person or circumstance is held invalid, the
  371  invalidity does not affect other provisions or applications of
  372  the act which can be given effect without the invalid provision
  373  or application, and to this end the provisions of this act are
  374  severable.
  375         Section 6. Except as otherwise expressly provided in this
  376  act, this act shall take effect upon becoming a law, and applies
  377  retroactively to January 1, 2010. For the 2010 calendar year, an
  378  application for classification of property as working waterfront
  379  must be filed on or before July 1, rather than on or before
  380  March 1.