Bill Text: FL H0275 | 2011 | Regular Session | Introduced

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Bill Title: Ad Valorem Tax Exemptions

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0275 Detail]

Download: Florida-2011-H0275-Introduced.html

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HB 275

1	A bill to be entitled
2	An act relating to ad valorem tax exemptions for real
3	property used for charitable purposes; amending s.
4	196.192, F.S.; providing partial ad valorem tax exemptions
5	for nonexempt owners of real property leased or
6	gratuitously provided to exempt entities for exclusive use
7	for charitable purposes; amending s. 196.195, F.S.;
8	authorizing nonexempt owners of real property to apply for
9	ad valorem tax exemptions relating to real property leased
10	or gratuitously provided for charitable purposes;
11	providing eligibility criteria for partial ad valorem tax
12	exemptions relating to real property leased or
13	gratuitously provided for charitable purposes; amending s.
14	196.196, F.S.; providing an exception to the profitmaking
15	prohibition applicable to claiming an ad valorem tax
16	exemption relating to property used for charitable
17	purposes; providing an effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Section 196.192, Florida Statutes, is amended
22	to read:
23	196.192  Exemptions from ad valorem taxation.-Subject to
24	the provisions of this chapter:
25	(1)  All property owned by an exempt entity, including
26	educational institutions, and used exclusively for exempt
27	purposes shall be totally exempt from ad valorem taxation.
28	(2)  All property owned by an exempt entity, including
29	educational institutions, and used predominantly for exempt
30	purposes shall be exempted from ad valorem taxation to the
31	extent of the ratio that such predominant use bears to the
32	nonexempt use.
33	(3)  All real property owned by a nonexempt entity and
34	leased or provided gratuitously to an exempt charitable entity
35	for exclusive use of the property for exempt charitable purposes
36	shall be exempted from ad valorem taxation in an amount
37	equivalent to 50 percent of the amount exempted under subsection
38	(1).
39	(4)  All real property owned by a nonexempt entity a
40	portion of which is leased or provided gratuitously to an exempt
41	charitable entity for exclusive use of that portion of the
42	property for exempt charitable purposes shall be exempted from
43	ad valorem taxation to the extent of 50 percent of the ratio
44	that such use bears to the nonexempt use of other portions of
45	the property.
46	(5)(3)  All tangible personal property loaned or leased by
47	a natural person, by a trust holding property for a natural
48	person, or by an exempt entity to an exempt entity for public
49	display or exhibition on a recurrent schedule is exempt from ad
50	valorem taxation if the property is loaned or leased for no
51	consideration or for nominal consideration.
52
53	For purposes of this section, each use to which the property is
54	being put must be considered in granting an exemption from ad
55	valorem taxation, including any economic use in addition to any
56	physical use. For purposes of this section, property owned by a
57	limited liability company, the sole member of which is an exempt
58	entity, shall be treated as if the property were owned directly
59	by the exempt entity. This section does not apply in determining
60	the exemption for property owned by governmental units pursuant
61	to s. 196.199.
62	Section 2.  Section 196.195, Florida Statutes, is amended
63	to read:
64	196.195  Determining profit or nonprofit status of
65	applicant.-
66	(1)  Exempt and nonexempt entities applying for a total or
67	partial Applicants requesting exemption shall supply such fiscal
68	and other records showing in reasonable detail the financial
69	condition, record of operation, and exempt and nonexempt uses of
70	the property, where appropriate, for the immediately preceding
71	fiscal year as are requested by the property appraiser or the
72	value adjustment board.
73	(2)  In determining whether an exempt entity applying
74	applicant for a religious, literary, scientific, or charitable
75	exemption under this chapter is a nonprofit or profitmaking
76	venture or whether the property is used for a profitmaking
77	purpose, the following criteria shall be applied:
78	(a)  The reasonableness of any advances or payment directly
79	or indirectly by way of salary, fee, loan, gift, bonus,
80	gratuity, drawing account, commission, or otherwise (except for
81	reimbursements of advances for reasonable out-of-pocket expenses
82	incurred on behalf of the applicant) to any person, company, or
83	other entity directly or indirectly controlled by the applicant
84	or any officer, director, trustee, member, or stockholder of the
85	applicant;
86	(b)  The reasonableness of any guaranty of a loan to, or an
87	obligation of, any officer, director, trustee, member, or
88	stockholder of the applicant or any entity directly or
89	indirectly controlled by such person, or which pays any
90	compensation to its officers, directors, trustees, members, or
91	stockholders for services rendered to or on behalf of the
92	applicant;
93	(c)  The reasonableness of any contractual arrangement by
94	the applicant or any officer, director, trustee, member, or
95	stockholder of the applicant regarding rendition of services,
96	the provision of goods or supplies, the management of the
97	applicant, the construction or renovation of the property of the
98	applicant, the procurement of the real, personal, or intangible
99	property of the applicant, or other similar financial interest
100	in the affairs of the applicant;
101	(d)  The reasonableness of payments made for salaries for
102	the operation of the applicant or for services, supplies and
103	materials used by the applicant, reserves for repair,
104	replacement, and depreciation of the property of the applicant,
105	payment of mortgages, liens, and encumbrances upon the property
106	of the applicant, or other purposes; and
107	(e)  The reasonableness of charges made by the applicant
108	for any services rendered by it in relation to the value of
109	those services, and, if such charges exceed the value of the
110	services rendered, whether the excess is used to pay maintenance
111	and operational expenses in furthering its exempt purpose or to
112	provide services to persons unable to pay for the services.
113	(3)  Each exempt entity applying for an exemption applicant
114	must affirmatively show that no part of the subject property, or
115	the proceeds of the sale, lease, or other disposition thereof,
116	will inure to the benefit of its members, directors, or officers
117	or any person or firm operating for profit or for a nonexempt
118	purpose.
119	(4)  An No application submitted by an exempt entity for
120	exemption may not be granted for religious, literary,
121	scientific, or charitable use of property until the applicant
122	has been found by the property appraiser or, upon appeal, by the
123	value adjustment board to be nonprofit as defined in this
124	section.
125	(5)  In determining whether a nonexempt entity applying for
126	a charitable exemption under this chapter is eligible for the
127	partial exemptions provided in s. 196.192(3) and (4), the
128	criteria in subsection (2) for determining whether an exempt
129	entity is a nonprofit or profitmaking venture or whether the
130	property is used for a profitmaking purpose shall be applied to
131	the exempt charitable lessee or donee.
132	(a)  A nonexempt entity applying for a charitable exemption
133	must affirmatively show that no part of the subject property or
134	proceeds generated by the exclusive use of the property for
135	exempt charitable purposes or a portion of the property for
136	exempt charitable purposes will inure to the benefit of the
137	exempt entity's members, directors, or officers or any person or
138	firm operating for profit or for a nonexempt purpose, with the
139	exception of a reasonable rental payment to the nonexempt
140	entity.
141	(b)  An application submitted by an exempt entity for a
142	partial exemption provided in s. 196.192(3) or (4) may not be
143	granted for charitable use of property until the exempt
144	charitable lessee or donee has been found by the property
145	appraiser or, upon appeal, by the value adjustment board to be
146	nonprofit as defined in this section.
147	Section 3.  Subsection (4) of section 196.196, Florida
148	Statutes, is amended to read:
149	196.196  Determining whether property is entitled to
150	charitable, religious, scientific, or literary exemption.-
151	(4)  Except as otherwise provided in this section and in
152	ss. 196.192 and 196.195 herein, property claimed as exempt for
153	literary, scientific, religious, or charitable purposes which is
154	used for profitmaking purposes shall be subject to ad valorem
155	taxation. Use of property for functions not requiring a business
156	or occupational license conducted by the organization at its
157	primary residence, the revenue of which is used wholly for
158	exempt purposes, shall not be considered profit making. In this
159	connection the playing of bingo on such property shall not be
160	considered as using such property in such a manner as would
161	impair its exempt status.
162	Section 4.  This act shall take effect July 1, 2011.

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