Florida Senate - 2022 SB 1126
By Senator Harrell
25-01074A-22 20221126__
1 A bill to be entitled
2 An act relating to exemption from taxation for
3 educational properties; amending s. 196.198, F.S.;
4 exempting from taxation property used by an
5 educational institution that holds a leasehold
6 interest in certain leases exceeding a specified
7 number of years; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Section 196.198, Florida Statutes, is amended to
12 read:
13 196.198 Educational property exemption.—Educational
14 institutions within this state and their property used by them
15 or by any other exempt entity or educational institution
16 exclusively for educational purposes are exempt from taxation.
17 Sheltered workshops providing rehabilitation and retraining of
18 individuals who have disabilities and exempted by a certificate
19 under s. (d) of the federal Fair Labor Standards Act of 1938, as
20 amended, are declared wholly educational in purpose and are
21 exempt from certification, accreditation, and membership
22 requirements set forth in s. 196.012. Those portions of property
23 of college fraternities and sororities certified by the
24 president of the college or university to the appropriate
25 property appraiser as being essential to the educational process
26 are exempt from ad valorem taxation. The use of property by
27 public fairs and expositions chartered by chapter 616 is
28 presumed to be an educational use of such property and is exempt
29 from ad valorem taxation to the extent of such use. Property
30 used exclusively for educational purposes shall be deemed owned
31 by an educational institution if the entity owning 100 percent
32 of the educational institution is owned by the identical persons
33 who own the property, or if the entity owning 100 percent of the
34 educational institution and the entity owning the property are
35 owned by the identical natural persons, or if the educational
36 institution is a lessee that owns the leasehold interest in a
37 bona fide lease for a nominal amount per year having an original
38 term of 98 years or more. Land, buildings, and other
39 improvements to real property used exclusively for educational
40 purposes shall be deemed owned by an educational institution if
41 the entity owning 100 percent of the land is a nonprofit entity
42 and the land is used, under a ground lease or other contractual
43 arrangement, by an educational institution that owns the
44 buildings and other improvements to the real property, is a
45 nonprofit entity under s. 501(c)(3) of the Internal Revenue
46 Code, and provides education limited to students in
47 prekindergarten through grade 8. Land, buildings, and other
48 improvements to real property used exclusively for educational
49 purposes are deemed owned by an educational institution if the
50 educational institution that currently uses the land, buildings,
51 and other improvements for educational purposes is an
52 educational institution described in s. 212.0602, and, under a
53 lease, the educational institution is responsible for any taxes
54 owed and for ongoing maintenance and operational expenses for
55 the land, buildings, and other improvements. For such leasehold
56 properties, the educational institution shall receive the full
57 benefit of the exemption. The owner of the property shall
58 disclose to the educational institution the full amount of the
59 benefit derived from the exemption and the method for ensuring
60 that the educational institution receives the benefit.
61 Notwithstanding ss. 196.195 and 196.196, property owned by a
62 house of public worship and used by an educational institution
63 for educational purposes limited to students in preschool
64 through grade 8 shall be exempt from ad valorem taxes. If legal
65 title to property is held by a governmental agency that leases
66 the property to a lessee, the property shall be deemed to be
67 owned by the governmental agency and used exclusively for
68 educational purposes if the governmental agency continues to use
69 such property exclusively for educational purposes pursuant to a
70 sublease or other contractual agreement with that lessee. If the
71 title to land is held by the trustee of an irrevocable inter
72 vivos trust and if the trust grantor owns 100 percent of the
73 entity that owns an educational institution that is using the
74 land exclusively for educational purposes, the land is deemed to
75 be property owned by the educational institution for purposes of
76 this exemption. Property owned by an educational institution
77 shall be deemed to be used for an educational purpose if the
78 institution has taken affirmative steps to prepare the property
79 for educational use. The term “affirmative steps” means
80 environmental or land use permitting activities, creation of
81 architectural plans or schematic drawings, land clearing or site
82 preparation, construction or renovation activities, or other
83 similar activities that demonstrate commitment of the property
84 to an educational use.
85 Section 2. This act shall take effect July 1, 2022.