CS/HB 7127

1
A bill to be entitled
2An act relating to working waterfront property; creating
3s. 193.704, F.S.; providing definitions; specifying
4property that is eligible for classification as working
5waterfront property; requiring the assessment of working
6waterfront property based on current use; requiring an
7application for classification of property as working
8waterfront property; authorizing a property appraiser to
9approve an application that is not filed by a certain
10deadline due to extenuating circumstances; providing for
11the waiver of annual application requirements; providing
12for the loss of classification upon a change of ownership
13or use; requiring that property owners notify the property
14appraiser of changes in use or ownership of property;
15imposing a penalty on a property owner who fails to notify
16the property appraiser of an event resulting in the
17unlawful or improper classification of property as working
18waterfront property; requiring the imposition of tax liens
19to recover penalties and interest; providing for the
20assessment of a portion of property within a working
21waterfront property which is not used as working
22waterfront property; requiring that a property appraiser
23make a list relating to applications to certify property
24as working waterfront property; providing an appeal
25process for an application that has been denied; amending
26s. 195.073, F.S.; providing for the classification of land
27as working waterfront property on an assessment roll;
28providing an alternate application deadline date for
29calendar year 2010; amending s. 380.5105, F.S.; providing
30program objectives for the Stan Mayfield Working
31Waterfronts Program and the Florida Forever program for
32purposes of selecting certain projects; deleting project
33selection criteria; providing for nonretroactive operation
34of certain provisions; providing for continuation of
35funded status for certain projects; providing emergency
36rulemaking authority for the Department of Revenue;
37providing for severability; providing for retroactive
38operation; providing effective dates.
39
40Be It Enacted by the Legislature of the State of Florida:
41
42     Section 1.  Section 193.704, Florida Statutes, is created
43to read:
44     193.704  Working waterfront property; definitions;
45classification and assessment; denial of classification and
46appeal.-
47     (1)  DEFINITIONS.-For purposes of granting a working
48waterfront property classification under this section for
49January 1, 2010, and thereafter, the term:
50     (a)  "Accessible to the public" means routinely available
51to the public from sunrise to sunset, with or without charge,
52with appropriate accommodations, including, but not limited to,
53public parking or public boat ramps that are available for use
54by the general public.
55     (b)  "Commercial fishing facility" means docks, piers,
56processing houses, or other facilities that support a commercial
57fishing operation or an aquaculture operation certified under
58chapter 597.
59     (c)  "Commercial fishing operation" has the same meaning as
60provided in s. 379.2351.
61     (d)  "Drystack" means a vessel storage facility or building
62in which storage spaces for vessels are available for use by the
63public on a first-come, first-served basis. The term excludes
64storage that is purchased, received, or rented as a result of
65homeownership or tenancy.
66     (e)  "Land used predominantly for commercial fishing
67purposes" means land used in good faith in a for-profit
68commercial fishing operation for the taking or harvesting of
69freshwater fish or saltwater products, as defined in s. 379.101,
70for which a commercial license to take, harvest, or sell such
71fish or products is required under chapter 379, or land used in
72an aquaculture operation certified under chapter 597.
73     (f)  "Marina" means a licensed commercial facility
74available for use by the public that provides secured public
75moorings or drystacks for vessels on a first-come, first-served
76basis. The term excludes mooring or storage that is purchased,
77received, or rented as a result of homeownership or tenancy.
78     (g)  "Marine manufacturing facility" means a facility that
79manufactures vessels for use in waters that are navigable.
80     (h)  "Marine vessel construction and repair facility" means
81a facility that constructs and repairs vessels that travel over
82waters that are navigable, including, but not limited to,
83shipyards and boatyards.
84     (i)  "Open to the public" means for hire to the general
85public and accessible during normal operating hours.
86     (j)  "Repair" includes retrofitting and maintenance of
87vessels.
88     (k)  "Right-of-way" has the same meaning as provided in s.
89334.03.
90     (l)  "Support facility" means a facility that typically is
91colocated with marine vessel construction and repair facilities,
92including, but not limited to, shops, equipment, and salvage
93facilities.
94     (m)  "Water-dependent" means that the activity performed in
95the facility can be conducted only on, in, over, or adjacent to
96waters that are navigable and requires direct access to water
97and involves the use of water as an integral part of such
98activity.
99     (n)  "Waterfront" means property that is on, over, or
100abutting waters that are navigable. Property that is separated
101from property abutting waters that are navigable by a right-of-
102way may be considered waterfront property, if:
103     1.  The properties on both sides of the right-of-way are
104under common ownership.
105     2.  The properties on both sides of the right-of-way are
106part of the same business enterprise.
107     3.  The property that is separated from the water by the
108right-of-way has direct access to the water by crossing the
109right-of-way.
110     (o)  "Waters that are navigable" means waters that support
111navigation by floating vessels of any description for the
112purpose of transportation, recreation, or commerce.
113     (2)  CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.-
114     (a)  The following waterfront properties are eligible for
115classification as working waterfront property:
116     1.  Land used predominantly for commercial fishing
117purposes.
118     2.  Land that is accessible to the public and used for
119vessel 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
124facilities and their support facilities.
125     7.  Water-dependent facilities located in a county defined
126in s. 125.011(1):
127     a.  Used for the commercial transportation of goods and
128people to and from foreign ports; or
129     b.  Used to provide towing, storage, and salvage in support
130of the facilities described in sub-subparagraph a.
131     (b)  Property classified as working waterfront property
132under this section shall be assessed on the basis of current
133use.
134     1.  If the income approach to value is appropriate to the
135property and if adequate local data on comparable rental rates,
136expense rates, and vacancy rates are available to the property
137appraiser, the assessed value shall be established using the
138income approach to value, using an overall capitalization rate
139based upon the debt coverage ratio formula, adjusted for the
140effective tax rate. The overall capitalization rate shall be
141calculated annually and shall be based on local data.
142     2.  If the conditions required for assessment under
143subparagraph 1. are not satisfied, the property appraiser shall
144value the property at its present cash value as if it were
145required to remain in its current use into the foreseeable
146future.
147     3.  In no event shall the assessed value of the property
148exceed just value.
149     4.  When a parcel contains uses eligible for assessment
150under this section and uses that are not eligible for assessment
151under this section, those portions of the property that are not
152eligible for assessment under this section must be assessed
153separately as otherwise provided by this chapter.
154     (c)1.  Property may not be classified as working waterfront
155property unless an application for such classification is filed
156with the property appraiser on or before March 1 of each year in
157the county in which the property is located. Before approving
158such classification, the property appraiser may require the
159applicant to establish that the property is actually used as
160required under this section. The property appraiser may require
161the applicant to furnish the property appraiser such information
162as may reasonably be required to establish that such property
163was actually used for working waterfront purposes, and to
164establish the classified use value of the property, including
165income and expense data. The owner or lessee of the property
166classified as working waterfront property in the prior year may
167reapply on a short form provided by the Department of Revenue.
168The lessee of property may make original application or reapply
169on a short form if the lease, or an affidavit executed by the
170owner, provides that the lessee is empowered to make application
171for the working waterfront classification on behalf of the owner
172and a copy of the lease or affidavit accompanies the
173application. An applicant may withdraw an application on or
174before the 25th day following the mailing of the notice of
175proposed property taxes pursuant to s. 200.069 in the year the
176application was filed.
177     2.  Failure of a property owner or lessee to apply for a
178classification as working waterfront property by March 1
179constitutes a waiver for 1 year of the privilege granted in this
180section. However, a person who is qualified to receive a working
181waterfront classification but who fails to timely apply for
182classification may file an application for classification with
183the property appraiser on or before the 25th day following the
184mailing of proposed property taxes pursuant to s. 200.069. Upon
185review of the application, if the applicant is qualified to
186receive the classification and demonstrates particular
187extenuating circumstances that warrant the classification, the
188property appraiser may grant the classification.
189     3.  A county, at the request of the property appraiser and
190by a majority vote of its governing body, may waive the
191requirement that an annual application or short form be filed
192with the property appraiser for renewal of the classification of
193property within the county as working waterfront property. Such
194waiver may be revoked by a majority vote of the county governing
195body.
196     4.  Notwithstanding subparagraph 3., a new application for
197classification as working waterfront property must be filed with
198the property appraiser whenever any property granted the
199classification as working waterfront property is sold or
200otherwise disposed of, whenever ownership or the lessee changes
201in any manner, whenever the owner or the lessee ceases to use
202the property as working waterfront property, or whenever the
203status of the owner or the lessee changes so as to change the
204classified status of the property.
205     5.  The property appraiser shall remove from the
206classification as working waterfront property any property for
207which the classified use has been abandoned or discontinued, or
208if the property has been diverted to an unclassified use. Such
209removed property shall be assessed at just value as provided in
210s. 193.011.
211     6.a.  The owner of any property classified as working
212waterfront property who is not required to file an annual
213application under this section, and the lessee if the
214application was made by the lessee, shall notify the property
215appraiser promptly whenever the use of the property or the
216status or condition of the owner or lessee changes so as to
217change the classified status of the property. If any such
218property owner or lessee fails to notify the property appraiser
219and the property appraiser determines that for any year within
220the prior 10 years the owner was not entitled to receive such
221classification, the owner of the property is subject to taxes
222otherwise due and owing as a result of such failure plus 15
223percent interest per annum and a penalty of 50 percent of the
224additional taxes owed. However, the penalty may be waived if the
225owner or lessee can demonstrate that he or she took reasonable
226care to notify the property appraiser of the change in use,
227status, or condition of the property.
228     b.  The property appraiser making such determination shall
229record in the public records of the county in which the working
230waterfront property is located a notice of tax lien against any
231property owned by the working waterfront property owner, and
232such property must be identified in the notice of tax lien. Such
233property is subject to the payment of all taxes and penalties.
234Such lien, when filed, attaches to any property identified in
235the notice of tax lien owned by the person or entity that
236illegally or improperly received the classification. If such
237person or entity no longer owns property in that county but owns
238property in another county or counties in the state, the
239property appraiser shall record in such other county or counties
240a notice of tax lien identifying the property owned by the
241working waterfront property owner in such county or counties
242which shall become a lien against the identified property.
243     7.  The property appraiser shall have available at his or
244her office a list by ownership of all applications for
245classification as working waterfront property received, showing
246the acreage, the just valuation under s. 193.011, the value of
247the land under the provisions of this subsection, and whether
248the classification was granted.
249     (3)  DENIAL OF CLASSIFICATION; APPEAL.-
250     (a)  If an application for working waterfront
251classification is made by March 1, the property appraiser shall
252notify the applicant in writing of a denial of the application
253on or before July 1 of the year for which the application was
254filed. The notification shall advise the applicant of his or her
255right to appeal to the value adjustment board and of the appeal
256filing deadline.
257     (b)  Any applicant whose application for classification as
258working waterfront property is denied by the property appraiser
259may appeal to the value adjustment board by filing a petition
260requesting that the classification be granted. The petition may
261be filed on or before the 25th day following the mailing of the
262assessment notice by the property appraiser as required under s.
263194.011(1). The petitioner shall pay a nonrefundable fee of $15
264upon filing the petition. Upon the value adjustment board's
265review of the petition, if the petitioner is qualified to
266receive the classification, the value adjustment board may grant
267the petition and classification.
268     (c)  A denial of a petition for classification by the value
269adjustment board may be appealed to a court of competent
270jurisdiction.
271     (d)  Property that has received a working waterfront
272classification from the value adjustment board or a court of
273competent jurisdiction under this subsection is entitled to
274receive such classification in any subsequent year until such
275use is changed, abandoned, or discontinued, or the ownership
276changes in any manner as provided in subparagraph (2)(c)4. The
277property appraiser shall, no later than January 31 of each year,
278provide notice to the property owner or lessee receiving a
279classification under this subsection requiring the property
280owner or a lessee qualified to make application to certify that
281the ownership and the use of the property has not changed. The
282department shall prescribe by rule the form of the notice to be
283used by the property appraiser.
284     Section 2.  Subsection (1) of section 195.073, Florida
285Statutes, is amended to read:
286     195.073  Classification of property.-All items required by
287law to be on the assessment rolls must receive a classification
288based upon the use of the property. The department shall
289promulgate uniform definitions for all classifications. The
290department may designate other subclassifications of property.
291No assessment roll may be approved by the department which does
292not show proper classifications.
293     (1)  Real property must be classified according to the
294assessment basis of the land into the following classes:
295     (a)  Residential, subclassified into categories, one
296category for homestead property and one for nonhomestead
297property:
298     1.  Single family.
299     2.  Mobile homes.
300     3.  Multifamily.
301     4.  Condominiums.
302     5.  Cooperatives.
303     6.  Retirement homes.
304     (b)  Commercial and industrial.
305     (c)  Agricultural.
306     (d)  Nonagricultural acreage.
307     (e)  High-water recharge.
308     (f)  Historic property used for commercial or certain
309nonprofit purposes.
310     (g)  Exempt, wholly or partially.
311     (h)  Centrally assessed.
312     (i)  Leasehold interests.
313     (j)  Time-share property.
314     (k)  Land assessed under s. 193.501.
315     (l)  Working waterfront property.
316     (m)(l)  Other.
317     Section 3.  Effective July 1, 2010, subsection (2) of
318section 380.5105, Florida Statutes, is amended to read:
319     380.5105  The Stan Mayfield Working Waterfronts; Florida
320Forever program.-
321     (2)  The trust and the Department of Agriculture and
322Consumer Services shall jointly develop rules specifically
323establishing an application process and a process for the
324evaluation, scoring and ranking of working waterfront
325acquisition projects. The proposed rules jointly developed
326pursuant to this subsection shall be adopted promulgated by the
327trust. Such rules shall ensure that the following general
328program objectives are considered in selecting establish a
329system of weighted criteria to give increased priority to
330projects:
331     (a)  That projects demonstrate a strong contribution to the
332preservation of Florida's commercial fishing, marine, or
333aquaculture industries. Within a municipality with a population
334less than 30,000;
335     (b)  That projects are located in areas being converted or
336threatened with conversion to uses that are incompatible with
337working waterfront uses or are not marine or fishing uses.
338Within a municipality or area under intense growth and
339development pressures, as evidenced by a number of factors,
340including a determination that the municipality's growth rate
341exceeds the average growth rate for the state;
342     (c)  That projects provide a demonstrable benefit to the
343local or state economy leading to employment opportunities in
344commercial fishing, marine, aquaculture, and related industries.
345Within the boundary of a community redevelopment agency
346established pursuant to s. 163.356;
347     (d)  That projects have been used for commercial fishing,
348marine, or aquaculture purposes or would create an opportunity
349to be used for commercial fishing, marine, or aquaculture
350purposes Adjacent to state-owned submerged lands designated as
351an aquatic preserve identified in s. 258.39; or
352     (e)  That provide a demonstrable benefit to the local
353economy.
354     Section 4.  Notwithstanding any other provision of this
355act, the amendment to s. 380.5105, Florida Statutes, made by
356this act shall not operate retroactively to January 1, 2010, and
357any project funded under s. 380.5105, Florida Statutes, prior to
358June 30, 2010, shall retain its status as a funded project.
359     Section 5.  For the 2010 calendar year, an application for
360classification as working waterfront under s. 193.704, Florida
361Statutes, must be filed on or before July 1 instead of on or
362before March 1.
363     Section 6.  The Department of Revenue may adopt emergency
364rules to administer s. 193.704, Florida Statutes, as created by
365this act. The emergency rules shall remain in effect for 6
366months after adoption and may be renewed during the pendency of
367procedures to adopt rules addressing the subject of the
368emergency rules.
369     Section 7.  If any provision of this act or the application
370thereof to any person or circumstance is held invalid, the
371invalidity does not affect other provisions or applications of
372the act which can be given effect without the invalid provision
373or application, and to this end the provisions of this act are
374severable.
375     Section 8.  Except as otherwise expressly provided in this
376act, this act shall take effect upon becoming a law and shall
377operate retroactively to January 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.