Bill Text: FL S0842 | 2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Property Prepared for a Tax-exempt Use

Spectrum: Bipartisan Bill

Status: (Failed) 2016-03-11 - Died in Appropriations [S0842 Detail]

Download: Florida-2016-S0842-Introduced.html

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       Florida Senate - 2016                                     SB 842
       
       
        
       By Senator Hays
       
       
       
       
       
       11-00236-16                                            2016842__
    1                        A bill to be entitled                      
    2         An act relating to property prepared for a tax-exempt
    3         use; creating s. 196.1955, F.S.; consolidating and
    4         revising provisions relating to obtaining an ad
    5         valorem exemption for property owned by an exempt
    6         organization, including the requirement that the owner
    7         of an exempt organization take affirmative steps to
    8         demonstrate an exempt use; authorizing the property
    9         appraiser to serve a notice of tax lien on exempt
   10         property that is not in exempt use after a certain
   11         time; providing that the lien attaches to any property
   12         owned by the organization identified in the notice of
   13         lien; providing that the provisions authorizing the
   14         tax lien do not apply to a house of public worship;
   15         defining the term “public worship”; amending s.
   16         196.196, F.S.; deleting provisions relating to the
   17         exemption as it applies to public worship and
   18         affordable housing and provisions incorporated into s.
   19         196.1955, F.S.; amending s. 196.198, F.S.; deleting
   20         provisions relating to property owned by an
   21         educational institution and used for an educational
   22         purpose which are incorporated in s. 196.1955, F.S.;
   23         amending ss. 196.197, 196.1978, 202.125, and 402.26,
   24         F.S.; conforming cross-references; providing an
   25         effective date.
   26          
   27  Be It Enacted by the Legislature of the State of Florida:
   28  
   29         Section 1. Section 196.1955, Florida Statutes, is created
   30  to read:
   31         196.1955 Property prepared for educational, literary,
   32  scientific, religious, or charitable use.—
   33         (1) Property owned by an exempt organization is considered
   34  to be used for an exempt purpose if the owner has taken
   35  affirmative steps to prepare the property for an exempt
   36  educational, literary, scientific, religious, or charitable use
   37  and no part of the property is being used for a nonexempt
   38  purpose. The term “affirmative steps” means environmental or
   39  land use permitting activities, creation of architectural plans
   40  or schematic drawings, land clearing or site preparation,
   41  construction or renovation activities, or other similar
   42  activities that demonstrate a commitment to prepare the property
   43  for an exempt use.
   44         (2)(a) If property owned by an organization granted an
   45  exemption under this section is transferred for a purpose other
   46  than an exempt use or is not in actual exempt use within 5 years
   47  after the date the organization is granted an exemption, the
   48  property appraiser making such determination shall serve upon
   49  such organization a notice of intent to record a tax lien in the
   50  public records of the county against any property in the county
   51  which is owned by the organization. The organization is subject
   52  to the taxes otherwise due and owing as a result of the failure
   53  to use the property in an exempt manner, plus 15 percent
   54  interest per annum.
   55         1. The notice of tax lien must identify all property in the
   56  county owned by the organization and, when the lien is filed, it
   57  attaches to that property. If the organization no longer owns
   58  property in the county but owns property in another county in
   59  the state, the property appraiser shall record in each such
   60  county a notice of tax lien identifying the property owned by
   61  the organization in each respective county, which attaches to
   62  the identified property.
   63         2. Before a lien may be filed, the organization must be
   64  given 30 days to pay the taxes and interest owed.
   65         3. If an exemption is improperly granted as a result of a
   66  clerical mistake or an omission by the property appraiser, the
   67  organization improperly receiving the exemption may not be
   68  assessed interest.
   69         4. The 5-year limitation specified in this subsection may
   70  be extended by the property appraiser if the holder of the
   71  exemption continues to take affirmative steps to prepare the
   72  property for the purposes specified in this section.
   73         (b) This subsection does not apply to property being
   74  prepared for use as a house of public worship. The term “public
   75  worship” means religious worship services and those activities
   76  that are incidental to religious worship services, such as
   77  educational activities, parking, recreation, partaking of meals,
   78  and fellowship.
   79         Section 2. Subsections (3), (4), and (5) of section
   80  196.196, Florida Statutes, are amended to read:
   81         196.196 Determining whether property is entitled to
   82  charitable, religious, scientific, or literary exemption.—
   83         (3) Property owned by an exempt organization is used for a
   84  religious purpose if the institution has taken affirmative steps
   85  to prepare the property for use as a house of public worship.
   86  The term “affirmative steps” means environmental or land use
   87  permitting activities, creation of architectural plans or
   88  schematic drawings, land clearing or site preparation,
   89  construction or renovation activities, or other similar
   90  activities that demonstrate a commitment of the property to a
   91  religious use as a house of public worship. For purposes of this
   92  subsection, the term “public worship” means religious worship
   93  services and those other activities that are incidental to
   94  religious worship services, such as educational activities,
   95  parking, recreation, partaking of meals, and fellowship.
   96         (3)(4) Except as otherwise provided in this section herein,
   97  property claimed as exempt for literary, scientific, religious,
   98  or charitable purposes which is used for profitmaking purposes
   99  is shall be subject to ad valorem taxation. Use of property for
  100  functions not requiring a business or occupational license
  101  conducted by the organization at its primary residence, the
  102  revenue of which is used wholly for exempt purposes, is shall
  103  not be considered profitmaking profit making. In this connection
  104  the playing of bingo on such property is shall not be considered
  105  a use of as using such property that in such a manner as would
  106  impair its exempt status.
  107         (5)(a) Property owned by an exempt organization qualified
  108  as charitable under s. 501(c)(3) of the Internal Revenue Code is
  109  used for a charitable purpose if the organization has taken
  110  affirmative steps to prepare the property to provide affordable
  111  housing to persons or families that meet the extremely-low
  112  income, very-low-income, low-income, or moderate-income limits,
  113  as specified in s. 420.0004. The term “affirmative steps” means
  114  environmental or land use permitting activities, creation of
  115  architectural plans or schematic drawings, land clearing or site
  116  preparation, construction or renovation activities, or other
  117  similar activities that demonstrate a commitment of the property
  118  to providing affordable housing.
  119         (b)1. If property owned by an organization granted an
  120  exemption under this subsection is transferred for a purpose
  121  other than directly providing affordable homeownership or rental
  122  housing to persons or families who meet the extremely-low
  123  income, very-low-income, low-income, or moderate-income limits,
  124  as specified in s. 420.0004, or is not in actual use to provide
  125  such affordable housing within 5 years after the date the
  126  organization is granted the exemption, the property appraiser
  127  making such determination shall serve upon the organization that
  128  illegally or improperly received the exemption a notice of
  129  intent to record in the public records of the county a notice of
  130  tax lien against any property owned by that organization in the
  131  county, and such property shall be identified in the notice of
  132  tax lien. The organization owning such property is subject to
  133  the taxes otherwise due and owing as a result of the failure to
  134  use the property to provide affordable housing plus 15 percent
  135  interest per annum and a penalty of 50 percent of the taxes
  136  owed.
  137         2. Such lien, when filed, attaches to any property
  138  identified in the notice of tax lien owned by the organization
  139  that illegally or improperly received the exemption. If such
  140  organization no longer owns property in the county but owns
  141  property in any other county in the state, the property
  142  appraiser shall record in each such other county a notice of tax
  143  lien identifying the property owned by such organization in such
  144  county which shall become a lien against the identified
  145  property. Before any such lien may be filed, the organization so
  146  notified must be given 30 days to pay the taxes, penalties, and
  147  interest.
  148         3. If an exemption is improperly granted as a result of a
  149  clerical mistake or an omission by the property appraiser, the
  150  organization improperly receiving the exemption shall not be
  151  assessed a penalty or interest.
  152         4. The 5-year limitation specified in this subsection may
  153  be extended if the holder of the exemption continues to take
  154  affirmative steps to develop the property for the purposes
  155  specified in this subsection.
  156         Section 3. Section 196.198, Florida Statutes, is amended to
  157  read:
  158         196.198 Educational property exemption.—
  159         (1) Educational institutions within this state and their
  160  property used by them or by any other exempt entity or
  161  educational institution exclusively for educational purposes are
  162  exempt from taxation.
  163         (a) Sheltered workshops providing rehabilitation and
  164  retraining of individuals who have disabilities and exempted by
  165  a certificate under s. (d) of the federal Fair Labor Standards
  166  Act of 1938, as amended, are declared wholly educational in
  167  purpose and are exempt from certification, accreditation, and
  168  membership requirements set forth in s. 196.012.
  169         (b) Those portions of property of college fraternities and
  170  sororities certified by the president of the college or
  171  university to the appropriate property appraiser as being
  172  essential to the educational process are exempt from ad valorem
  173  taxation.
  174         (c) The use of property by public fairs and expositions
  175  chartered by chapter 616 is presumed to be an educational use of
  176  such property and is exempt from ad valorem taxation to the
  177  extent of such use.
  178         (2) Property used exclusively for educational purposes
  179  shall be deemed owned by an educational institution if the
  180  entity owning 100 percent of the educational institution is
  181  owned by the identical persons who own the property, or if the
  182  entity owning 100 percent of the educational institution and the
  183  entity owning the property are owned by the identical natural
  184  persons.
  185         (a) Land, buildings, and other improvements to real
  186  property used exclusively for educational purposes shall be
  187  deemed owned by an educational institution if the entity owning
  188  100 percent of the land is a nonprofit entity and the land is
  189  used, under a ground lease or other contractual arrangement, by
  190  an educational institution that owns the buildings and other
  191  improvements to the real property, is a nonprofit entity under
  192  s. 501(c)(3) of the Internal Revenue Code, and provides
  193  education limited to students in prekindergarten through grade
  194  8.
  195         (b) If legal title to property is held by a governmental
  196  agency that leases the property to a lessee, the property shall
  197  be deemed to be owned by the governmental agency and used
  198  exclusively for educational purposes if the governmental agency
  199  continues to use such property exclusively for educational
  200  purposes pursuant to a sublease or other contractual agreement
  201  with that lessee.
  202         (c) If the title to land is held by the trustee of an
  203  irrevocable inter vivos trust and if the trust grantor owns 100
  204  percent of the entity that owns an educational institution that
  205  is using the land exclusively for educational purposes, the land
  206  is deemed to be property owned by the educational institution
  207  for purposes of this exemption. Property owned by an educational
  208  institution shall be deemed to be used for an educational
  209  purpose if the institution has taken affirmative steps to
  210  prepare the property for educational use. The term “affirmative
  211  steps” means environmental or land use permitting activities,
  212  creation of architectural plans or schematic drawings, land
  213  clearing or site preparation, construction or renovation
  214  activities, or other similar activities that demonstrate
  215  commitment of the property to an educational use.
  216         Section 4. Subsection (2) of section 196.197, Florida
  217  Statutes, is amended to read:
  218         196.197 Additional provisions for exempting property used
  219  by hospitals, nursing homes, and homes for special services.—In
  220  addition to criteria for granting exemptions for charitable use
  221  of property set forth in other sections of this chapter,
  222  hospitals, nursing homes, and homes for special services shall
  223  be exempt to the extent that they meet the following criteria:
  224         (2) In determining the extent of exemption to be granted to
  225  institutions licensed as hospitals, nursing homes, and homes for
  226  special services, portions of the property leased as parking
  227  lots or garages operated by private enterprise shall not be
  228  deemed to be serving an exempt purpose and shall not be exempt
  229  from taxation. Property or facilities which are leased to a
  230  nonprofit corporation which provides direct medical services to
  231  patients in a nonprofit or public hospital and qualifies under
  232  ss. 196.1955 and s. 196.196 of this chapter are excluded and
  233  shall be exempt from taxation.
  234         Section 5. Section 196.1978, Florida Statutes, is amended
  235  to read:
  236         196.1978 Affordable housing property exemption.—Property
  237  used to provide affordable housing to eligible persons as
  238  defined by s. 159.603 and natural persons or families meeting
  239  the extremely-low-income, very-low-income, low-income, or
  240  moderate-income limits specified in s. 420.0004, which is owned
  241  entirely by a nonprofit entity that is a corporation not for
  242  profit, qualified as charitable under s. 501(c)(3) of the
  243  Internal Revenue Code and in compliance with Rev. Proc. 96-32,
  244  1996-1 C.B. 717, is considered property owned by an exempt
  245  entity and used for a charitable purpose, and those portions of
  246  the affordable housing property that provide housing to natural
  247  persons or families classified as extremely low income, very low
  248  income, low income, or moderate income under s. 420.0004 are
  249  exempt from ad valorem taxation to the extent authorized under
  250  ss. 196.1955 and s. 196.196. All property identified in this
  251  section must comply with the criteria provided under s. 196.195
  252  for determining exempt status and applied by property appraisers
  253  on an annual basis. The Legislature intends that any property
  254  owned by a limited liability company which is disregarded as an
  255  entity for federal income tax purposes pursuant to Treasury
  256  Regulation 301.7701-3(b)(1)(ii) be treated as owned by its sole
  257  member.
  258         Section 6. Paragraph (c) of subsection (4) of section
  259  202.125, Florida Statutes, is amended to read:
  260         202.125 Sales of communications services; specified
  261  exemptions.—
  262         (4) The sale of communications services to a home for the
  263  aged, religious institution or educational institution that is
  264  exempt from federal income tax under s. 501(c)(3) of the
  265  Internal Revenue Code, or by a religious institution that is
  266  exempt from federal income tax under s. 501(c)(3) of the
  267  Internal Revenue Code having an established physical place for
  268  worship at which nonprofit religious services and activities are
  269  regularly conducted and carried on, is exempt from the taxes
  270  imposed or administered pursuant to ss. 202.12 and 202.19. As
  271  used in this subsection, the term:
  272         (c) “Home for the aged” includes any nonprofit corporation:
  273         1. In which at least 75 percent of the occupants are 62
  274  years of age or older or totally and permanently disabled; which
  275  qualifies for an ad valorem property tax exemption under ss.
  276  196.1955 and s. 196.196 or, s. 196.197, or s. 196.1975; and
  277  which is exempt from the sales tax imposed under chapter 212.
  278         2. Licensed as a nursing home under chapter 400 or an
  279  assisted living facility under chapter 429 and which is exempt
  280  from the sales tax imposed under chapter 212.
  281         Section 7. Subsection (6) of section 402.26, Florida
  282  Statutes, is amended to read:
  283         402.26 Child care; legislative intent.—
  284         (6) It is the intent of the Legislature that a child care
  285  facility licensed pursuant to s. 402.305 or a child care
  286  facility exempt from licensing pursuant to s. 402.316, that
  287  achieves Gold Seal Quality status pursuant to s. 402.281, be
  288  considered an educational institution for the purpose of
  289  qualifying for exemption from ad valorem tax pursuant to ss.
  290  196.1955 and s. 196.198.
  291         Section 8. This act shall take effect July 1, 2016.
  292