Florida Senate - 2010 CS for SB 1408
By the Committees on Finance and Tax; and Finance and Tax
1 A bill to be entitled
2 An act relating to working waterfront property;
3 creating s. 193.704, F.S.; providing definitions;
4 specifying properties that are eligible for
5 classification as working waterfront property;
6 requiring the assessment of working waterfront
7 property based on current use; specifying a
8 methodology for determining assessed value; requiring
9 property appraisers to consider specified factors in
10 assessing certain property; providing for assessment
11 of a portion of property within a working waterfront
12 property which is not used as working waterfront
13 property; requiring an application for classification
14 of property as working waterfront property; specifying
15 application requirements; authorizing a property
16 appraiser to approve an application not filed by a
17 certain deadline due to extenuating circumstances;
18 providing for waiver of annual application
19 requirements; providing for loss of classification
20 upon a change of ownership or use; requiring property
21 owners to notify the property appraiser of changes in
22 use or ownership of property; imposing a penalty for
23 failure to notify the property appraiser of an event
24 resulting in the unlawful or improper classification
25 of property as working waterfront property; requiring
26 imposition of tax liens to recover penalties and
27 interest; requiring property appraisers to make a list
28 relating to applications to certify property as
29 working waterfront property; providing an appeal
30 process for applications that have been denied;
31 amending s. 195.073, F.S.; providing for the
32 classification of land as working waterfront property
33 on an assessment roll; amending s. 380.5105, F.S.;
34 providing new program objectives for the Stan Mayfield
35 Working Waterfronts Program and the Florida Forever
36 Program which are to be considered in selecting
37 projects; providing emergency rulemaking authority;
38 providing for severability; providing for retroactive
39 application; specifying the date to apply for a
40 working waterfront classification for 2010; providing
41 effective dates.
43 Be It Enacted by the Legislature of the State of Florida:
45 Section 1. Section 193.704, Florida Statutes, is created to
47 193.704 Working waterfront property; definitions;
48 classification and assessment; denial of classification and
50 (1) INTENT.—The Legislature recognizes that Florida’s
51 traditional working waterfronts are important to the state’s
52 heritage and economic vitality and that the conversion of
53 working waterfronts to exclusively private uses limits public
54 access to the state’s waterways for recreational boating,
55 fishing, and other commercial water-dependent activities. The
56 Legislature also recognizes that the conversion of traditional
57 working waterfronts to exclusively private uses often causes an
58 increase in property taxes on nearby working waterfronts when
59 these waterfronts are assessed at their highest and best use. It
60 is the intent of the Legislature that working waterfront
61 property, including water-dependent commercial transportation
62 facilities and their water-dependent support facilities, be
63 assessed at the property’s current use, as provided by s. 4(j),
64 Art. VII of the State Constitution.
65 (1) DEFINITIONS.—As used in this section, the term:
66 (a) “Accessible to the public” means routinely available to
67 the public from sunrise to sunset, with or without charge, and
68 having appropriate accommodations, including, but not limited
69 to, public parking or public boat ramps that are available for
70 use by the general public.
71 (b) “Commercial fishing facility” means docks, piers,
72 processing houses, or other facilities that support a commercial
73 fishing operation or an aquaculture operation certified under
74 chapter 597.
75 (c) “Commercial fishing operation” has the same meaning as
76 that provided in s. 379.2351.
77 (d) “Drystack” means a licensed commercial vessel storage
78 facility or building in which storage spaces for vessels are
79 available for use by the public on a first-come, first-served
80 basis. The term excludes storage that is purchased, received, or
81 rented as a result of homeownership or tenancy.
82 (e) “Land used predominantly for commercial fishing
83 purposes” means land used in good faith in a for-profit
84 commercial fishing operation for the taking or harvesting of
85 freshwater fish or saltwater products, as defined in s. 379.101,
86 for which a commercial license to take, harvest, or sell such
87 fish or products is required under chapter 379, or land used in
88 an aquaculture operation certified under chapter 597.
89 (f) “Marina” means a licensed commercial facility that
90 provides secured public docks or moorings or drystacks for
91 vessels on a first-come, first-served basis. The term excludes
92 dockage, mooring, or storage that is purchased, received, or
93 rented as a result of homeownership or tenancy.
94 (g) “Marine manufacturing facility” means a facility that
95 manufactures vessels for use in waters that are navigable.
96 (h) “Marine vessel construction and repair facility” means
97 a facility that constructs and repairs vessels that travel over
98 waters that are navigable, including, but not limited to,
99 shipyards and boatyards.
100 (i) “Open to the public” means for hire to the general
101 public and accessible during normal operating hours.
102 (j) “Repair” includes retrofitting and maintenance of
104 (k) “Right of way” has the same meaning as provided in s.
106 (l) “Support facility” means a facility that typically is
107 collocated with marine vessel construction and repair
108 facilities, including, but not limited to, shops, equipment, and
109 salvage facilities.
110 (m) “Water-dependent” means that the activities performed
111 in the facility can be conducted only on, in, over, or adjacent
112 to waters that are navigable, require direct access to water,
113 and involve the use of water as an integral part of such
115 (n) “Waterfront” means property that is on, over, or
116 abutting waters that are navigable. Property that is separated
117 from property abutting waters that are navigable by a right-of
118 way may be considered waterfront property, if:
119 1. The properties on both sides of the right-of-way are
120 under common ownership;
121 2. The properties on both sides of the right-of-way are
122 part of the same business enterprise;
123 3. The property that is separated from the water by the
124 right-of-way has direct access to the water by crossing the
126 (o) “Waters that are navigable” means water bodies that are
127 capable of supporting boating and that are used or may be used
128 in their ordinary condition as highways for commerce for which
129 trade or travel are or may be conducted in the customary modes
130 of trade or travel on water.
131 (2) CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.—
132 (a) The following waterfront properties are eligible for
133 classification as working waterfront property:
134 1. Land used predominantly for commercial fishing purposes.
135 2. Land that is accessible to the public and used for
136 vessel launches into waters that are navigable.
137 3. Marinas and drystacks that are open to the public.
138 4. Water-dependent marine manufacturing facilities.
139 5. Water-dependent commercial fishing facilities.
140 6. Water-dependent marine vessel construction and repair
141 facilities and their support facilities.
142 7. Water-dependent facilities used for the commercial
143 transportation of goods and people.
144 8. Water-dependent facilities used for activities that
145 support the commercial transportation of goods and people. These
146 activities include, but are not limited to, towing, storage, and
148 (b) Property classified as working waterfront property
149 under this section shall be assessed on the basis of current
151 1. If the income approach to value is appropriate to the
152 property and if adequate local data on comparable rental rates,
153 expense rates, and vacancy rates are available to the property
154 appraiser, the assessed value shall be established using the
155 income approach to value, using an overall capitalization rate
156 based upon the debt coverage ratio formula, adjusted for the
157 effective tax rate. The overall capitalization rate shall be
158 calculated annually and shall be based on local data.
159 2. If the conditions required for assessment under
160 subparagraph 1. are not satisfied, the property appraiser shall
161 value the property at its present cash value as if it were
162 required to remain in its current use into the foreseeable
164 3. In no event may the assessed value of the property
165 exceed just value.
166 4. If a parcel contains both uses eligible for assessment
167 under this section and uses that are not eligible for assessment
168 under this section, those portions of the property that are not
169 eligible for assessment under this section must be assessed
170 separately as otherwise provided by this chapter.
171 (c)1. Property may not be classified as working waterfront
172 property unless an application for such classification is filed
173 with the property appraiser on or before March 1 of each year in
174 the county in which the property is located. Before approving
175 such classification, the property appraiser may require the
176 applicant to establish that the property is actually used as
177 required under this section. The property appraiser may require
178 the applicant to furnish the property appraiser such information
179 as may reasonably be required to establish that such property
180 was actually used for working waterfront purposes and to
181 establish the classified use value of the property, including
182 income and expense data. The owner or lessee of property
183 classified as working waterfront property in the prior year may
184 reapply on a short form provided by the department. The lessee
185 of property may make original application or reapply on a short
186 form if the lease, or an affidavit executed by the owner,
187 provides that the lessee is empowered to make application for
188 the working waterfront classification on behalf of the owner and
189 a copy of the lease or affidavit accompanies the application. An
190 applicant may withdraw an application on or before the 25th day
191 following the mailing of the notice of proposed property taxes
192 pursuant to s. 200.069 in the year the application was filed.
193 2. Any property owner or lessee who fails to file an
194 application for classification as working waterfront property by
195 March 1 may file an application for classification with the
196 property appraiser on or before the 25th day following the
197 mailing of the notice of proposed property taxes pursuant to s.
198 200.069. Upon review of the application, if the applicant is
199 qualified to receive the classification and demonstrates
200 particular extenuating circumstances that warrant the
201 classification, the property appraiser may grant the
203 3. A county, at the request of the property appraiser and
204 by a majority vote of its governing body, may waive the
205 requirement that an annual application or short form be filed
206 with the property appraiser for renewal of the classification of
207 property within the county as working waterfront property. Such
208 waiver may be revoked by a majority of the county governing
210 4. Notwithstanding subparagraph 2., a new application for
211 classification as working waterfront property must be filed with
212 the property appraiser whenever any property granted the
213 classification as working waterfront property is sold or
214 otherwise disposed of, ownership or the lessee changes in any
215 manner, the owner or the lessee ceases to use the property as
216 working waterfront property, or whenever the status of the owner
217 or the lessee changes so as to change the classified status of
218 the property.
219 5. The property appraiser shall remove from the
220 classification as working waterfront property any property for
221 which the classified use has been abandoned or discontinued or
222 the property has been diverted to an unclassified use. Such
223 removed property shall be assessed at just value as provided in
224 s. 193.011.
225 6.a. The owner of any property classified as working
226 waterfront property who is not required to file an annual
227 application under this section, and the lessee if the
228 application was made by the lessee, shall notify the property
229 appraiser promptly whenever the use of the property or the
230 status or condition of the owner or lessee changes, so as to
231 change the classified status of the property. If any such
232 property owner or lessee fails to notify the property appraiser
233 and the property appraiser determines that for any year within
234 the prior 10 years the owner was not entitled to receive such
235 classification, the owner of the property is subject to taxes
236 otherwise due and owing as a result of such failure plus 15
237 percent interest per annum and a penalty of 50 percent of the
238 additional taxes owed. However, the penalty may be waived if the
239 owner or lessee can demonstrate that he or she took reasonable
240 care to notify the property appraiser of the change in use,
241 status, or condition of the property.
242 b. The property appraiser making such determination shall
243 record in the public records of the county in which the working
244 waterfront property is located a notice of tax lien against any
245 property owned by the working waterfront property owner. Such
246 property must be identified in the notice of tax lien. Such
247 property is subject to the payment of all taxes and penalties.
248 Such lien, when filed, attaches to any property identified in
249 the notice of tax lien owned by the person or entity that
250 illegally or improperly received the classification. If such
251 person or entity no longer owns property in that county but owns
252 property in another county or counties in the state, the
253 property appraiser shall record in such other county or counties
254 a notice of tax lien identifying the property owned by the
255 working waterfront property owner in such county or counties,
256 which shall become a lien against the identified property.
257 7. The property appraiser shall have available at his or
258 her office a list by ownership of all applications received for
259 classification of property as working waterfront property,
260 showing the acreage, the full valuation under s. 193.011, the
261 value of the land under the provisions of this subsection, and
262 whether the classification was granted.
263 (3) DENIAL OF CLASSIFICATION; APPEAL.—
264 (a) If an application for working waterfront classification
265 is made by March 1, the property appraiser shall notify the
266 applicant in writing of a denial of the application on or before
267 July 1 of the year for which the application was filed. The
268 notification shall advise the applicant of his or her right to
269 appeal to the value adjustment board and of the appeal filing
271 (b) Any applicant whose application for classification as
272 working waterfront property is denied by the property appraiser
273 may appeal to the value adjustment board by filing a petition
274 requesting that the classification be granted. The petition may
275 be filed on or before the 25th day following the mailing of the
276 assessment notice by the property appraiser as required under s.
277 194.011(1). Notwithstanding the provisions of s. 194.013, the
278 petitioner shall pay a nonrefundable fee of $15 upon filing the
279 petition. Upon the value adjustment board’s review of the
280 petition, if the petitioner is qualified to receive the
281 classification and demonstrates particular extenuating
282 circumstances that warrant granting the classification, the
283 value adjustment board may grant the petition and
285 (c) A denial of a petition for classification by the value
286 adjustment board may be appealed to a court of competent
288 (d)1. Property that has received a working waterfront
289 classification from the value adjustment board or a court of
290 competent jurisdiction under this subsection is entitled to
291 receive such classification in any subsequent year until such
292 use is changed, abandoned, or discontinued or the ownership
293 changes in any manner as provided in subparagraph (2)(c)4. The
294 property appraiser shall, no later than January 31 of each year,
295 provide notice to the property owner or lessee receiving a
296 classification under this subsection requiring the property
297 owner or a lessee qualified to make application to certify that
298 the ownership and the use of the property has not changed. The
299 department shall prescribe by rule the form of the notice to be
300 used by the property appraiser.
301 2. If a county has waived the requirement that an annual
302 application or short form be filed for classification of the
303 property under subsection (2), the county may, by majority vote
304 of its governing body, waive the notice and certification
305 requirements of this paragraph and shall provide the property
306 owner or lessee with the same notification as provided to
307 property owners granted a working waterfront classification by
308 the property appraiser. Such waiver may be revoked by a majority
309 vote of the county governing body.
310 Section 2. Subsection (1) of section 195.073, Florida
311 Statutes, is amended to read:
312 195.073 Classification of property.—All items required by
313 law to be on the assessment rolls must receive a classification
314 based upon the use of the property. The department shall
315 promulgate uniform definitions for all classifications. The
316 department may designate other subclassifications of property.
317 No assessment roll may be approved by the department which does
318 not show proper classifications.
319 (1) Real property must be classified according to the
320 assessment basis of the land into the following classes:
321 (a) Residential, subclassified into categories, one
322 category for homestead property and one for nonhomestead
324 1. Single family.
325 2. Mobile homes.
326 3. Multifamily.
327 4. Condominiums.
328 5. Cooperatives.
329 6. Retirement homes.
330 (b) Commercial and industrial.
331 (c) Agricultural.
332 (d) Nonagricultural acreage.
333 (e) High-water recharge.
334 (f) Historic property used for commercial or certain
335 nonprofit purposes.
336 (g) Exempt, wholly or partially.
337 (h) Centrally assessed.
338 (i) Leasehold interests.
339 (j) Time-share property.
340 (k) Land assessed under s. 193.501.
341 (l) Working waterfront property.
343 Section 3. Effective July 1, 2010, subsection (2) of
344 section 380.5105, Florida Statutes, is amended to read:
345 380.5105 The Stan Mayfield Working Waterfronts; Florida
346 Forever program.—
347 (2) The trust and the Department of Agriculture and
348 Consumer Services shall jointly develop rules specifically
349 establishing an application process and a process for the
350 evaluation, scoring and ranking of working waterfront
351 acquisition projects. The proposed rules jointly developed
352 pursuant to this subsection shall be adopted promulgated by the
353 trust. Such rules shall ensure that the following general
354 program objectives are considered in selecting establish a
355 system of weighted criteria to give increased priority to
357 (a) That projects demonstrate a strong contribution to the
358 preservation of this state’s commercial fishing, marine, or
359 aquaculture industries. Within a municipality with a population
360 less than 30,000;
361 (b) That projects are located in areas being converted or
362 threatened with conversion to uses that are incompatible with
363 working waterfront uses or are not marine or fishing uses.
364 Within a municipality or area under intense growth and
365 development pressures, as evidenced by a number of factors,
366 including a determination that the municipality’s growth rate
367 exceeds the average growth rate for the state;
368 (c) That projects provide a demonstrable benefit to the
369 local or state economy leading to employment opportunities in
370 commercial fishing, marine, aquaculture, and related industries.
371 Within the boundary of a community redevelopment agency
372 established pursuant to s. 163.356 ;
373 (d) That projects have been used for commercial fishing,
374 marine, or aquaculture purposes or would create an opportunity
375 to be used for commercial fishing, marine, or aquaculture
376 purposes. Adjacent to state-owned submerged lands designated as
377 an aquatic preserve identified in s. 258.39 ; or
378 (e) That provide a demonstrable benefit to the local
380 Section 4. The Department of Revenue may adopt emergency
381 rules to administer s. 193.704, Florida Statutes, as created by
382 this act. The emergency rules shall remain in effect for 6
383 months after adoption and may be renewed during the pendency of
384 procedures to adopt rules addressing the subject of the
385 emergency rules.
386 Section 5. If any provision of this act or the application
387 thereof to any person or circumstance is held invalid, the
388 invalidity does not affect other provisions or applications of
389 the act which can be given effect without the invalid provision
390 or application, and to this end the provisions of this act are
392 Section 6. Except as otherwise expressly provided in this
393 act, this act shall take effect upon becoming a law, and applies
394 retroactively to January 1, 2010. For the 2010 calendar year, an
395 application for classification of property as working waterfront
396 must be filed on or before July 1, rather than on or before
397 March 1.