Bill Text: FL S1706 | 2023 | Regular Session | Introduced
Bill Title: Ad Valorem Tax Exemptions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2023-05-05 - Died in Community Affairs, companion bill(s) passed, see HB 7063 (Ch. 2023-157) [S1706 Detail]
Download: Florida-2023-S1706-Introduced.html
Florida Senate - 2023 SB 1706
By Senator DiCeglie
18-01028B-23 20231706__
1 A bill to be entitled
2 An act relating to ad valorem tax exemptions; amending
3 s. 196.012, F.S.; revising conditions under which
4 certain aircraft-related operations are deemed to
5 serve a governmental, municipal, or public purpose or
6 function for purposes of ch. 196, F.S.; revising the
7 definition of the term “owned by the lessee”; amending
8 s. 196.198, F.S.; adding circumstances under which
9 property used exclusively for educational purposes is
10 deemed owned by an educational institution; amending
11 s. 196.199, F.S.; deleting a requirement for the
12 property appraiser relating to applications for an
13 exemption for leasehold interests in government
14 property; revising and specifying conditions under
15 which the exemption remains valid for the duration of
16 the lease; providing an effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Subsection (6) of section 196.012, Florida
21 Statutes, is amended to read:
22 196.012 Definitions.—For the purpose of this chapter, the
23 following terms are defined as follows, except where the context
24 clearly indicates otherwise:
25 (6) Governmental, municipal, or public purpose or function
26 shall be deemed to be served or performed when the lessee under
27 any leasehold interest created in property of the United States,
28 the state or any of its political subdivisions, or any
29 municipality, agency, special district, authority, or other
30 public body corporate of the state is demonstrated to perform a
31 function or serve a governmental purpose which could properly be
32 performed or served by an appropriate governmental unit or which
33 is demonstrated to perform a function or serve a purpose which
34 would otherwise be a valid subject for the allocation of public
35 funds. For purposes of the preceding sentence, an activity
36 undertaken by a lessee which is permitted under the terms of its
37 lease of real property designated as an aviation area on an
38 airport layout plan which has been approved by the Federal
39 Aviation Administration and which real property is used for the
40 administration, operation, business offices, and activities
41 related specifically thereto in connection with the conduct of
42 an aircraft full service fixed base operation or common carrier
43 that which provides goods and services to the general aviation
44 public and in the promotion of air commerce shall be deemed an
45 activity that which serves a governmental, municipal, or public
46 purpose or function. Any activity undertaken by a lessee which
47 is permitted under the terms of its lease of real property
48 designated as a public airport as defined in s. 332.004(14) by
49 municipalities, agencies, special districts, authorities, or
50 other public bodies corporate and public bodies politic of the
51 state, a spaceport as defined in s. 331.303, or which is located
52 in a deepwater port identified in s. 403.021(9)(b) and owned by
53 one of the foregoing governmental units, subject to a leasehold
54 or other possessory interest of a nongovernmental lessee that is
55 deemed to perform an aviation, airport, aerospace, maritime, or
56 port purpose or operation shall be deemed an activity that
57 serves a governmental, municipal, or public purpose. The use by
58 a lessee, licensee, or management company of real property or a
59 portion thereof as a convention center, visitor center, sports
60 facility with permanent seating, concert hall, arena, stadium,
61 park, or beach is deemed a use that serves a governmental,
62 municipal, or public purpose or function when access to the
63 property is open to the general public with or without a charge
64 for admission. If property deeded to a municipality by the
65 United States is subject to a requirement that the Federal
66 Government, through a schedule established by the Secretary of
67 the Interior, determine that the property is being maintained
68 for public historic preservation, park, or recreational purposes
69 and if those conditions are not met the property will revert
70 back to the Federal Government, then such property shall be
71 deemed to serve a municipal or public purpose. The term
72 “governmental purpose” also includes a direct use of property on
73 federal lands in connection with the Federal Government’s Space
74 Exploration Program or spaceport activities as defined in s.
75 212.02(22). Real property and tangible personal property owned
76 by the Federal Government or Space Florida and used for defense
77 and space exploration purposes or which is put to a use in
78 support thereof shall be deemed to perform an essential national
79 governmental purpose and shall be exempt. “Owned by the lessee”
80 as used in this chapter does not include personal property,
81 buildings, or other real property improvements used for the
82 administration, operation, business offices, and activities
83 related specifically thereto in connection with the conduct of
84 an aircraft full service fixed based operation or common carrier
85 that which provides goods and services to the general aviation
86 public and in the promotion of air commerce, provided that the
87 real property is designated as an aviation area on an airport
88 layout plan approved by the Federal Aviation Administration. For
89 purposes of determination of “ownership,” buildings and other
90 real property improvements which will revert to the airport
91 authority or other governmental unit upon expiration of the term
92 of the lease shall be deemed “owned” by the governmental unit
93 and not the lessee. Providing two-way telecommunications
94 services to the public for hire by the use of a
95 telecommunications facility, as defined in s. 364.02(14), and
96 for which a certificate is required under chapter 364 does not
97 constitute an exempt use for purposes of s. 196.199, unless the
98 telecommunications services are provided by the operator of a
99 public-use airport, as defined in s. 332.004, for the operator’s
100 provision of telecommunications services for the airport or its
101 tenants, concessionaires, or licensees, or unless the
102 telecommunications services are provided by a public hospital.
103 Section 2. Section 196.198, Florida Statutes, is amended to
104 read:
105 196.198 Educational property exemption.—Educational
106 institutions within this state and their property used by them
107 or by any other exempt entity or educational institution
108 exclusively for educational purposes are exempt from taxation.
109 Sheltered workshops providing rehabilitation and retraining of
110 individuals who have disabilities and exempted by a certificate
111 under s. (d) of the federal Fair Labor Standards Act of 1938, as
112 amended, are declared wholly educational in purpose and are
113 exempt from certification, accreditation, and membership
114 requirements set forth in s. 196.012. Those portions of property
115 of college fraternities and sororities certified by the
116 president of the college or university to the appropriate
117 property appraiser as being essential to the educational process
118 are exempt from ad valorem taxation. The use of property by
119 public fairs and expositions chartered by chapter 616 is
120 presumed to be an educational use of such property and is exempt
121 from ad valorem taxation to the extent of such use. Property
122 used exclusively for educational purposes shall be deemed owned
123 by an educational institution if the entity owning 100 percent
124 of the educational institution is owned by the identical persons
125 who own the property, or if the entity owning 100 percent of the
126 educational institution and the entity owning the property are
127 owned by the identical natural persons, or if the educational
128 institution is a lessee that owns, for a nominal amount per
129 year, the leasehold interest in a bona fide lease having an
130 original term of 98 years or more. Land, buildings, and other
131 improvements to real property used exclusively for educational
132 purposes shall be deemed owned by an educational institution if
133 the entity owning 100 percent of the land is a nonprofit entity
134 and the land is used, under a ground lease or other contractual
135 arrangement, by an educational institution that owns the
136 buildings and other improvements to the real property, is a
137 nonprofit entity under s. 501(c)(3) of the Internal Revenue
138 Code, and provides education limited to students in
139 prekindergarten through grade 8. Land, buildings, and other
140 improvements to real property used exclusively for educational
141 purposes are deemed owned by an educational institution if the
142 educational institution that currently uses the land, buildings,
143 and other improvements for educational purposes is an
144 educational institution described in s. 212.0602, and, under a
145 lease, the educational institution is responsible for any taxes
146 owed and for ongoing maintenance and operational expenses for
147 the land, buildings, and other improvements. For such leasehold
148 properties, the educational institution shall receive the full
149 benefit of the exemption. The owner of the property shall
150 disclose to the educational institution the full amount of the
151 benefit derived from the exemption and the method for ensuring
152 that the educational institution receives the benefit.
153 Notwithstanding ss. 196.195 and 196.196, property owned by a
154 house of public worship and used by an educational institution
155 for educational purposes limited to students in preschool
156 through grade 8 shall be exempt from ad valorem taxes. If legal
157 title to property is held by a governmental agency that leases
158 the property to a lessee, the property shall be deemed to be
159 owned by the governmental agency and used exclusively for
160 educational purposes if the governmental agency continues to use
161 such property exclusively for educational purposes pursuant to a
162 sublease or other contractual agreement with that lessee. If the
163 title to land is held by the trustee of an irrevocable inter
164 vivos trust and if the trust grantor owns 100 percent of the
165 entity that owns an educational institution that is using the
166 land exclusively for educational purposes, the land is deemed to
167 be property owned by the educational institution for purposes of
168 this exemption. Property owned by an educational institution
169 shall be deemed to be used for an educational purpose if the
170 institution has taken affirmative steps to prepare the property
171 for educational use. The term “affirmative steps” means
172 environmental or land use permitting activities, creation of
173 architectural plans or schematic drawings, land clearing or site
174 preparation, construction or renovation activities, or other
175 similar activities that demonstrate commitment of the property
176 to an educational use.
177 Section 3. Subsection (5) of section 196.199, Florida
178 Statutes, is amended to read:
179 196.199 Government property exemption.—
180 (5) Leasehold interests in governmental property are shall
181 not be exempt pursuant to this subsection unless an application
182 for exemption has been filed on or before March 1 with the
183 property appraiser. The property appraiser shall review the
184 application and make findings of fact which shall be presented
185 to the value adjustment board at its convening, whereupon the
186 board shall take appropriate action regarding the application.
187 If the property appraiser or the value adjustment board grants
188 the exemption in whole or in part is granted, or the exemption
189 is established by judicial proceeding, it shall remain valid for
190 the duration of the lease, including extensions of the lease
191 which were contemplated in the original lease, unless the lessee
192 changes its use, in which case the lessee shall again submit an
193 application for exemption. If the operations of the lessee do
194 not change after the exemption is granted, the lessee shall not
195 be required to submit any further applications for exemption for
196 the duration of the lease, including extensions thereof which
197 were contemplated in the original lease. The requirements set
198 forth in s. 196.194 shall apply to all applications made under
199 this subsection.
200 Section 4. This act shall take effect July 1, 2023.
