Bill Text: FL S7020 | 2010 | Regular Session | Introduced
Bill Title: Assessment of Residential Property
Spectrum: Unknown
Status: (N/A - Dead) 2010-01-21 - Submit as committee bill by Finance and Tax (SB 1410) [S7020 Detail]
Download: Florida-2010-S7020-Introduced.html
Florida Senate - 2010 (Proposed Committee Bill) SPB 7020 FOR CONSIDERATION By the Committee on Finance and Tax 593-01066B-10 20107020__ 1 A bill to be entitled 2 An act relating to the assessment of residential 3 property; creating s. 193.624, F.S.; defining the term 4 “renewable energy source device”; prohibiting a 5 property appraiser from considering the installation 6 and operation of a renewable energy source device in 7 determining the assessed value of residential 8 property; amending s. 196.012, F.S.; deleting the 9 definition of the terms “renewable energy source 10 device” and “device” for purposes of ch. 196, F.S., 11 relating to property tax exemptions; amending ss. 12 196.121 and 196.1995, F.S.; conforming cross 13 references to changes made by the act; repealing s. 14 196.175, F.S., relating to the property tax exemption 15 for a renewable energy source device; providing an 16 effective date. 17 18 Be It Enacted by the Legislature of the State of Florida: 19 20 Section 1. Section 193.624, Florida Statutes, is created to 21 read: 22 193.624 Definitions; assessment of residential property.— 23 (1) As used in this section, the term “renewable energy 24 source device” means any of the following equipment that 25 collects, transmits, stores, or uses solar energy, wind energy, 26 or energy derived from geothermal deposits: 27 (a) Solar energy collectors, photovoltaic modules, and 28 inverters. 29 (b) Storage tanks and other storage systems, excluding 30 swimming pools used as storage tanks. 31 (c) Rockbeds. 32 (d) Thermostats and other control devices. 33 (e) Heat exchange devices. 34 (f) Pumps and fans. 35 (g) Roof ponds. 36 (h) Freestanding thermal containers. 37 (i) Pipes, ducts, refrigerant handling systems, and other 38 equipment used to interconnect such systems; however, such 39 equipment does not include conventional backup systems of any 40 type. 41 (j) Windmills and wind turbines. 42 (k) Wind-driven generators. 43 (l) Power conditioning and storage devices that use wind 44 energy to generate electricity or mechanical forms of energy. 45 (m) Pipes and other equipment used to transmit hot 46 geothermal water to a dwelling or structure from a geothermal 47 deposit. 48 (2) In determining the assessed value of real property used 49 for residential purposes, the property appraiser may not 50 consider the installation and operation of a renewable energy 51 source device. 52 (3) This section applies to new and existing construction 53 used for residential purposes. 54 Section 2. Section 196.012, Florida Statutes, is amended to 55 read: 56 196.012 Definitions.—For the purpose of this chapter, the 57 following terms are defined as follows, except where the context 58 clearly indicates otherwise: 59 (1) “Exempt use of property” or “use of property for exempt 60 purposes” means predominant or exclusive use of property owned 61 by an exempt entity for educational, literary, scientific, 62 religious, charitable, or governmental purposes, as defined in 63 this chapter. 64 (2) “Exclusive use of property” means use of property 65 solely for exempt purposes. Such purposes may include more than 66 one class of exempt use. 67 (3) “Predominant use of property” means use of property for 68 exempt purposes in excess of 50 percent but less than exclusive. 69 (4) “Use” means the exercise of any right or power over 70 real or personal property incident to the ownership of the 71 property. 72 (5) “Educational institution” means a federal, state, 73 parochial, church, or private school, college, or university 74 conducting regular classes and courses of study required for 75 eligibility to certification by, accreditation to, or membership 76 in the State Department of Education of Florida, Southern 77 Association of Colleges and Schools, or the Florida Council of 78 Independent Schools; a nonprofit private school the principal 79 activity of which is conducting regular classes and courses of 80 study accepted for continuing postgraduate dental education 81 credit by a board of the Division of Medical Quality Assurance; 82 educational direct-support organizations created pursuant to ss. 83 1001.24, 1004.28, and 1004.70; facilities located on the 84 property of eligible entities which will become owned by those 85 entities on a date certain; and institutions of higher 86 education, as defined under and participating in the Higher 87 Educational Facilities Financing Act. 88 (6) Governmental, municipal, or public purpose or function 89 shall be deemed to be served or performed when the lessee under 90 any leasehold interest created in property of the United States, 91 the state or any of its political subdivisions, or any 92 municipality, agency, special district, authority, or other 93 public body corporate of the state is demonstrated to perform a 94 function or serve a governmental purpose which could properly be 95 performed or served by an appropriate governmental unit or which 96 is demonstrated to perform a function or serve a purpose which 97 would otherwise be a valid subject for the allocation of public 98 funds. For purposes of the preceding sentence, an activity 99 undertaken by a lessee which is permitted under the terms of its 100 lease of real property designated as an aviation area on an 101 airport layout plan which has been approved by the Federal 102 Aviation Administration and which real property is used for the 103 administration, operation, business offices and activities 104 related specifically thereto in connection with the conduct of 105 an aircraft full service fixed base operation which provides 106 goods and services to the general aviation public in the 107 promotion of air commerce shall be deemed an activity which 108 serves a governmental, municipal, or public purpose or function. 109 Any activity undertaken by a lessee which is permitted under the 110 terms of its lease of real property designated as a public 111 airport as defined in s. 332.004(14) by municipalities, 112 agencies, special districts, authorities, or other public bodies 113 corporate and public bodies politic of the state, a spaceport as 114 defined in s. 331.303, or which is located in a deepwater port 115 identified in s. 403.021(9)(b) and owned by one of the foregoing 116 governmental units, subject to a leasehold or other possessory 117 interest of a nongovernmental lessee that is deemed to perform 118 an aviation, airport, aerospace, maritime, or port purpose or 119 operation shall be deemed an activity that serves a 120 governmental, municipal, or public purpose. The use by a lessee, 121 licensee, or management company of real property or a portion 122 thereof as a convention center, visitor center, sports facility 123 with permanent seating, concert hall, arena, stadium, park, or 124 beach is deemed a use that serves a governmental, municipal, or 125 public purpose or function when access to the property is open 126 to the general public with or without a charge for admission. If 127 property deeded to a municipality by the United States is 128 subject to a requirement that the Federal Government, through a 129 schedule established by the Secretary of the Interior, determine 130 that the property is being maintained for public historic 131 preservation, park, or recreational purposes and if those 132 conditions are not met the property will revert back to the 133 Federal Government, then such property shall be deemed to serve 134 a municipal or public purpose. The term “governmental purpose” 135 also includes a direct use of property on federal lands in 136 connection with the Federal Government’s Space Exploration 137 Program or spaceport activities as defined in s. 212.02(22). 138 Real property and tangible personal property owned by the 139 Federal Government or Space Florida and used for defense and 140 space exploration purposes or which is put to a use in support 141 thereof shall be deemed to perform an essential national 142 governmental purpose and shall be exempt. “Owned by the lessee” 143 as used in this chapter does not include personal property, 144 buildings, or other real property improvements used for the 145 administration, operation, business offices and activities 146 related specifically thereto in connection with the conduct of 147 an aircraft full service fixed based operation which provides 148 goods and services to the general aviation public in the 149 promotion of air commerce provided that the real property is 150 designated as an aviation area on an airport layout plan 151 approved by the Federal Aviation Administration. For purposes of 152 determination of “ownership,” buildings and other real property 153 improvements which will revert to the airport authority or other 154 governmental unit upon expiration of the term of the lease shall 155 be deemed “owned” by the governmental unit and not the lessee. 156 Providing two-way telecommunications services to the public for 157 hire by the use of a telecommunications facility, as defined in 158 s. 364.02(15), and for which a certificate is required under 159 chapter 364 does not constitute an exempt use for purposes of s. 160 196.199, unless the telecommunications services are provided by 161 the operator of a public-use airport, as defined in s. 332.004, 162 for the operator’s provision of telecommunications services for 163 the airport or its tenants, concessionaires, or licensees, or 164 unless the telecommunications services are provided by a public 165 hospital. 166 (7) “Charitable purpose” means a function or service which 167 is of such a community service that its discontinuance could 168 legally result in the allocation of public funds for the 169 continuance of the function or service. It is not necessary that 170 public funds be allocated for such function or service but only 171 that any such allocation would be legal. 172 (8) “Hospital” means an institution which possesses a valid 173 license granted under chapter 395 on January 1 of the year for 174 which exemption from ad valorem taxation is requested. 175 (9) “Nursing home” or “home for special services” means an 176 institution which possesses a valid license under chapter 400 on 177 January 1 of the year for which exemption from ad valorem 178 taxation is requested. 179 (10) “Gross income” means all income from whatever source 180 derived, including, but not limited to, the following items, 181 whether actually owned by or received by, or not received by but 182 available to, any person or couple: earned income, income from 183 investments, gains derived from dealings in property, interest, 184 rents, royalties, dividends, annuities, income from retirement 185 plans, pensions, trusts, estates and inheritances, and direct 186 and indirect gifts. Gross income specifically does not include 187 payments made for the medical care of the individual, return of 188 principal on the sale of a home, social security benefits, or 189 public assistance payments payable to the person or assigned to 190 an organization designated specifically for the support or 191 benefit of that person. 192 (11) “Totally and permanently disabled person” means a 193 person who is currently certified by two licensed physicians of 194 this state who are professionally unrelated, by the United 195 States Department of Veterans Affairs or its predecessor, or by 196 the Social Security Administration, to be totally and 197 permanently disabled. 198 (12) “Couple” means a husband and wife legally married 199 under the laws of any state or territorial possession of the 200 United States or of any foreign country. 201 (13) “Real estate used and owned as a homestead” means real 202 property to the extent provided in s. 6(a), Art. VII of the 203 State Constitution, but less any portion thereof used for 204 commercial purposes, with the title of such property being 205 recorded in the official records of the county in which the 206 property is located. Property rented for more than 6 months is 207 presumed to be used for commercial purposes. 208(14)“Renewable energy source device” or “device” means any209of the following equipment which, when installed in connection210with a dwelling unit or other structure, collects, transmits,211stores, or uses solar energy, wind energy, or energy derived212from geothermal deposits:213(a)Solar energy collectors.214(b)Storage tanks and other storage systems, excluding215swimming pools used as storage tanks.216(c)Rockbeds.217(d)Thermostats and other control devices.218(e)Heat exchange devices.219(f)Pumps and fans.220(g)Roof ponds.221(h)Freestanding thermal containers.222(i)Pipes, ducts, refrigerant handling systems, and other223equipment used to interconnect such systems; however,224conventional backup systems of any type are not included in this225definition.226(j)Windmills.227(k)Wind-driven generators.228(l)Power conditioning and storage devices that use wind229energy to generate electricity or mechanical forms of energy.230(m)Pipes and other equipment used to transmit hot231geothermal water to a dwelling or structure from a geothermal232deposit.233 (14)(15)“New business” means: 234 (a)1. A business establishing 10 or more jobs to employ 10 235 or more full-time employees in this state, which manufactures, 236 processes, compounds, fabricates, or produces for sale items of 237 tangible personal property at a fixed location and which 238 comprises an industrial or manufacturing plant; 239 2. A business establishing 25 or more jobs to employ 25 or 240 more full-time employees in this state, the sales factor of 241 which, as defined by s. 220.15(5), for the facility with respect 242 to which it requests an economic development ad valorem tax 243 exemption is less than 0.50 for each year the exemption is 244 claimed; or 245 3. An office space in this state owned and used by a 246 corporation newly domiciled in this state; provided such office 247 space houses 50 or more full-time employees of such corporation; 248 provided that such business or office first begins operation on 249 a site clearly separate from any other commercial or industrial 250 operation owned by the same business. 251 (b) Any business located in an enterprise zone or 252 brownfield area that first begins operation on a site clearly 253 separate from any other commercial or industrial operation owned 254 by the same business. 255 (c) A business that is situated on property annexed into a 256 municipality and that, at the time of the annexation, is 257 receiving an economic development ad valorem tax exemption from 258 the county under s. 196.1995. 259 (15)(16)“Expansion of an existing business” means: 260 (a)1. A business establishing 10 or more jobs to employ 10 261 or more full-time employees in this state, which manufactures, 262 processes, compounds, fabricates, or produces for sale items of 263 tangible personal property at a fixed location and which 264 comprises an industrial or manufacturing plant; or 265 2. A business establishing 25 or more jobs to employ 25 or 266 more full-time employees in this state, the sales factor of 267 which, as defined by s. 220.15(5), for the facility with respect 268 to which it requests an economic development ad valorem tax 269 exemption is less than 0.50 for each year the exemption is 270 claimed; provided that such business increases operations on a 271 site colocated with a commercial or industrial operation owned 272 by the same business, resulting in a net increase in employment 273 of not less than 10 percent or an increase in productive output 274 of not less than 10 percent. 275 (b) Any business located in an enterprise zone or 276 brownfield area that increases operations on a site colocated 277 with a commercial or industrial operation owned by the same 278 business. 279 (16)(17)“Permanent resident” means a person who has 280 established a permanent residence as defined in subsection (17) 281(18). 282 (17)(18)“Permanent residence” means that place where a 283 person has his or her true, fixed, and permanent home and 284 principal establishment to which, whenever absent, he or she has 285 the intention of returning. A person may have only one permanent 286 residence at a time; and, once a permanent residence is 287 established in a foreign state or country, it is presumed to 288 continue until the person shows that a change has occurred. 289 (18)(19)“Enterprise zone” means an area designated as an 290 enterprise zone pursuant to s. 290.0065. This subsection expires 291 on the date specified in s. 290.016 for the expiration of the 292 Florida Enterprise Zone Act. 293 (19)(20)“Ex-servicemember” means any person who has served 294 as a member of the United States Armed Forces on active duty or 295 state active duty, a member of the Florida National Guard, or a 296 member of the United States Reserve Forces. 297 Section 3. Subsection (2) of section 196.121, Florida 298 Statutes, is amended to read: 299 196.121 Homestead exemptions; forms.— 300 (2) The forms shall require the taxpayer to furnish certain 301 information to the property appraiser for the purpose of 302 determining that the taxpayer is a permanent resident as defined 303 in s. 196.012(16)s.196.012(17). Such information may include, 304 but need not be limited to, the factors enumerated in s. 305 196.015. 306 Section 4. Subsections (6), (8), (9), and (10) of section 307 196.1995, Florida Statutes, are amended to read: 308 196.1995 Economic development ad valorem tax exemption.— 309 (6) With respect to a new business as defined by s. 310 196.012(14)(c)s.196.012(15)(c), the municipality annexing the 311 property on which the business is situated may grant an economic 312 development ad valorem tax exemption under this section to that 313 business for a period that will expire upon the expiration of 314 the exemption granted by the county. If the county renews the 315 exemption under subsection (7), the municipality may also extend 316 its exemption. A municipal economic development ad valorem tax 317 exemption granted under this subsection may not extend beyond 318 the duration of the county exemption. 319 (8) Any person, firm, or corporation which desires an 320 economic development ad valorem tax exemption shall, in the year 321 the exemption is desired to take effect, file a written 322 application on a form prescribed by the department with the 323 board of county commissioners or the governing authority of the 324 municipality, or both. The application shall request the 325 adoption of an ordinance granting the applicant an exemption 326 pursuant to this section and shall include the following 327 information: 328 (a) The name and location of the new business or the 329 expansion of an existing business; 330 (b) A description of the improvements to real property for 331 which an exemption is requested and the date of commencement of 332 construction of such improvements; 333 (c) A description of the tangible personal property for 334 which an exemption is requested and the dates when such property 335 was or is to be purchased; 336 (d) Proof, to the satisfaction of the board of county 337 commissioners or the governing authority of the municipality, 338 that the applicant is a new business or an expansion of an 339 existing business, as defined in s. 196.012(14) or (15)s.340196.012(15) or (16); and 341 (e) Other information deemed necessary by the department. 342 (9) Before it takes action on the application, the board of 343 county commissioners or the governing authority of the 344 municipality shall deliver a copy of the application to the 345 property appraiser of the county. After careful consideration, 346 the property appraiser shall report the following information to 347 the board of county commissioners or the governing authority of 348 the municipality: 349 (a) The total revenue available to the county or 350 municipality for the current fiscal year from ad valorem tax 351 sources, or an estimate of such revenue if the actual total 352 revenue available cannot be determined; 353 (b) Any revenue lost to the county or municipality for the 354 current fiscal year by virtue of exemptions previously granted 355 under this section, or an estimate of such revenue if the actual 356 revenue lost cannot be determined; 357 (c) An estimate of the revenue which would be lost to the 358 county or municipality during the current fiscal year if the 359 exemption applied for were granted had the property for which 360 the exemption is requested otherwise been subject to taxation; 361 and 362 (d) A determination as to whether the property for which an 363 exemption is requested is to be incorporated into a new business 364 or the expansion of an existing business, as defined in s. 365 196.012(14) or (15)s.196.012(15) or (16), or into neither, 366 which determination the property appraiser shall also affix to 367 the face of the application. Upon the request of the property 368 appraiser, the department shall provide to him or her such 369 information as it may have available to assist in making such 370 determination. 371 (10) An ordinance granting an exemption under this section 372 shall be adopted in the same manner as any other ordinance of 373 the county or municipality and shall include the following: 374 (a) The name and address of the new business or expansion 375 of an existing business to which the exemption is granted; 376 (b) The total amount of revenue available to the county or 377 municipality from ad valorem tax sources for the current fiscal 378 year, the total amount of revenue lost to the county or 379 municipality for the current fiscal year by virtue of economic 380 development ad valorem tax exemptions currently in effect, and 381 the estimated revenue loss to the county or municipality for the 382 current fiscal year attributable to the exemption of the 383 business named in the ordinance; 384 (c) The period of time for which the exemption will remain 385 in effect and the expiration date of the exemption; and 386 (d) A finding that the business named in the ordinance 387 meets the requirements of s. 196.012(14) or (15)s.196.012(15)388or (16). 389 Section 5. Section 196.175, Florida Statutes, is repealed. 390 Section 6. This act shall take effect July 1, 2010, and 391 applies to assessments beginning January 1, 2011.
