Florida Senate - 2010 (Proposed Committee Bill) SPB 7026
FOR CONSIDERATION By the Committee on Finance and Tax
1 A bill to be entitled
2 An act relating to working waterfront property;
3 creating s. 193.704, F.S.; defining terms; specifying
4 property that is eligible for classification as
5 working waterfront property; requiring the assessment
6 of working waterfront property based on current use;
7 requiring an application for classification of
8 property as working waterfront property; authorizing a
9 property appraiser to approve an application that is
10 not filed by a certain deadline due to extenuating
11 circumstances; providing for the waiver of annual
12 application requirements; providing for the loss of
13 classification upon a change of ownership or use;
14 requiring that property owners notify the property
15 appraiser of changes in use or ownership of property;
16 imposing a penalty on a property owner who fails to
17 notify the property appraiser of an event resulting in
18 the unlawful or improper classification of property as
19 working waterfront property; requiring the imposition
20 of tax liens to recover penalties and interest;
21 providing for the assessment of a portion of property
22 within a working waterfront property which is not used
23 as working waterfront property; requiring that a
24 property appraiser make a list relating to
25 applications to certify property as working waterfront
26 property; providing an appeal process for an
27 application that has been denied; amending s. 195.073,
28 F.S.; providing for the classification of land as
29 working waterfront property on an assessment roll;
30 providing for retroactive application; providing an
31 effective date.
33 Be It Enacted by the Legislature of the State of Florida:
35 Section 1. Section 193.704, Florida Statutes, is created to
37 193.704 Working waterfront property; definitions;
38 classification and assessment; denial of classification and
40 (1) DEFINITIONS.—For purposes of granting a working
41 waterfront property classification under this section for
42 January 1, 2010, and thereafter, the term:
43 (a) “Accessible to the public” means routinely available to
44 the public from sunrise to sunset, with or without charge, with
45 appropriate accommodations, including, but not limited to,
46 public parking or public boat ramps that are available for use
47 by the general public.
48 (b) “Commercial fishing facility” means docks, piers,
49 processing houses, or other facilities that support a commercial
50 fishing operation or an aquaculture operation certified under
51 chapter 597.
52 (c) “Commercial fishing operation” has the same meaning as
53 provided in s. 379.2351.
54 (d) “Drystack” means a vessel storage facility or building
55 in which storage spaces for vessels are available for use by the
56 public on a first-come, first-served basis, with no automatic
57 renewal rights or conditions. The term excludes storage that is
58 purchased, received, or rented as a result of homeownership or
60 (e) “Land used predominantly for commercial fishing
61 purposes” means land used in good faith in a for-profit
62 commercial fishing operation for the taking or harvesting of
63 freshwater fish or saltwater products, as defined in s. 379.101,
64 for which a commercial license to take, harvest, or sell such
65 fish or products is required under chapter 379, or land used in
66 an aquaculture operation certified under chapter 597.
67 (f) “Marina” means a licensed commercial facility that
68 provides secured public moorings or drystacks for vessels on a
69 first-come, first-served basis, with no automatic renewal rights
70 or conditions. The term excludes mooring or storage that is
71 purchased, received, or rented as a result of homeownership or
73 (g) “Marine manufacturing facility” means a facility that
74 manufactures vessels for use in waters that are navigable.
75 (h) “Marine vessel construction and repair facility” means
76 a facility that constructs and repairs vessels that travel over
77 waters that are navigable, including, but not limited to,
78 shipyards and boatyards. As used in this section, the term
79 “repair” includes retrofitting and maintenance of vessels.
80 (i) “Open to the public” means for hire to the general
81 public and accessible during normal operating hours.
82 (j) “Support facility” means a facility that typically is
83 colocated with marine vessel construction and repair facilities,
84 including, but not limited to, shops, equipment, and salvage
86 (k) “Water-dependent” means an activity that can be
87 conducted only on, in, over, or adjacent to waters that are
88 navigable and that requires direct access to water and involves
89 the use of water as an integral part of such activity.
90 (l) “Waterfront” means property that is on, over, or
91 abutting waters that are navigable. Property that is separated
92 from property abutting waters that are navigable by a public
93 right of way may be considered waterfront property, if the
94 property on both sides of the public right of way is under
95 common ownership and the property that is separated by the
96 public right of way has direct access to the water by crossing
97 the public right of way.
98 (m) “Waters that are navigable” means any body of water
99 that is subject to the ebb and flow of the tide, connects with
100 continuous interstate waterway, has navigable capacity, and is
101 actually navigable.
102 (2) CLASSIFICATION AND ASSESSMENT; LOSS; PENALTY.—
103 (a) The following waterfront properties are eligible for
104 classification as working waterfront property:
105 1. Land used predominantly for commercial fishing purposes.
106 2. Land that is accessible to the public and used for
107 vessel launches into waters that are navigable.
108 3. Marinas and drystacks that are open to the public.
109 4. Water-dependent marine manufacturing facilities.
110 5. Water-dependent commercial fishing facilities.
111 6. Water-dependent marine vessel construction and repair
112 facilities and their support facilities.
113 (b) Property classified as working waterfront property
114 under this section shall be assessed on the basis of current
116 1. If the income approach to valuation is appropriate to
117 the property and if adequate local data on market rental rates,
118 expense rates, and vacancy rates are available, the assessed
119 value shall be calculated using the income approach to value,
120 using a capitalization rate based upon the debt coverage ratio
121 formula, adjusted for the effective tax rate and the percentage
122 of equity multiplied by the equity yield rate. The
123 capitalization rate shall be calculated and updated annually and
124 shall be based on local data.
125 2. If the conditions required for assessment under
126 subparagraph 1. are not satisfied, the property appraiser shall
127 value the property at its present cash value as if it were
128 required to remain in its current working waterfront use.
129 3. In no event shall the assessed value of the property
130 exceed just value.
131 (c)1. Property may not be classified as working waterfront
132 property unless an application for such classification is filed
133 with the property appraiser on or before March 1 of each year in
134 the county in which the property is located. Before approving
135 such classification, the property appraiser may require the
136 applicant to establish that the property is actually used as
137 required under this section. The property appraiser may require
138 the applicant to furnish the property appraiser such information
139 as may reasonably be required to establish that such property
140 was actually used for working waterfront purposes, and to
141 establish the classified use value of the property, including
142 income and expense data. The owner or lessee of the property
143 classified as working waterfront property in the prior year may
144 reapply on a short form provided by the Department of Revenue.
145 The lessee of property may make original application or reapply
146 on a short form if the lease, or an affidavit executed by the
147 owner, provides that the lessee is empowered to make application
148 for the working waterfront classification on behalf of the owner
149 and a copy of the lease or affidavit accompanies the
150 application. An applicant may withdraw an application on or
151 before the 25th day following the mailing of the notice of
152 proposed property taxes pursuant to s. 200.069 in the year the
153 application was filed.
154 2. Failure of a property owner or lessee to apply for a
155 classification as working waterfront property by March 1
156 constitutes a waiver for 1 year of the privilege granted in this
157 section. However, a person who is qualified to receive a working
158 waterfront classification but who fails to timely apply for
159 classification may file an application for classification with
160 the property appraiser on or before the 25th day following the
161 mailing of proposed property taxes pursuant to s. 200.069. Upon
162 review of the application, if the applicant is qualified to
163 receive the classification and demonstrates particular
164 extenuating circumstances that warrant the classification, the
165 property appraiser may grant the classification.
166 3. A county, at the request of the property appraiser and
167 by a majority vote of its governing body, may waive the
168 requirement that an annual application or short form be filed
169 with the property appraiser for renewal of the classification of
170 property within the county as working waterfront property. Such
171 waiver may be revoked by a majority of the county governing
173 4. Notwithstanding subparagraph 2., a new application for
174 classification as working waterfront property must be filed with
175 the property appraiser whenever any property granted the
176 classification as working waterfront property is sold or
177 otherwise disposed of, whenever ownership or the lessee changes
178 in any manner, whenever the owner or the lessee ceases to use
179 the property as working waterfront property, or whenever the
180 status of the owner or the lessee changes so as to change the
181 classified status of the property.
182 5. The property appraiser shall remove from the
183 classification as working waterfront property any property for
184 which the classified use has been abandoned or discontinued, or
185 if the property has been diverted to an unclassified use. Such
186 removed property shall be assessed at just value as provided in
187 s. 193.011.
188 6.a. The owner of any property classified as working
189 waterfront property who is not required to file an annual
190 application under this section, and the lessee if the
191 application was made by the lessee, shall notify the property
192 appraiser promptly whenever the use of the property or the
193 status or condition of the owner or lessee changes so as to
194 change the classified status of the property. If any such
195 property owner or lessee fails to notify the property appraiser
196 and the property appraiser determines that for any year within
197 the prior 10 years the owner was not entitled to receive such
198 classification, the owner of the property is subject to taxes
199 otherwise due and owing as a result of such failure plus 15
200 percent interest per annum and a penalty of 50 percent of the
201 additional taxes owed. However, the penalty may be waived if the
202 owner or lessee can demonstrate that they took reasonable care
203 to notify the property appraiser of the change in use, status,
204 or condition of the property.
205 b. The property appraiser making such determination shall
206 record in the public records of the county in which the working
207 waterfront property is located a notice of tax lien against any
208 property owned by the working waterfront property owner, and
209 such property must be identified in the notice of tax lien. Such
210 property is subject to the payment of all taxes and penalties.
211 Such lien, when filed, attaches to any property identified in
212 the notice of tax lien owned by the person or entity that
213 illegally or improperly received the classification. If such
214 person or entity no longer owns property in that county but owns
215 property in another county or counties in the state, the
216 property appraiser shall record in such other county or counties
217 a notice of tax lien identifying the property owned by the
218 working waterfront property owner in such county or counties
219 which shall become a lien against the identified property.
220 7. When a parcel contains both uses eligible for assessment
221 under this section and uses that are not eligible for assessment
222 under this section, those portions of the property that are not
223 eligible for assessment under this section must be assessed
224 separately as otherwise provided by this chapter.
225 8. The property appraiser shall have available at his or
226 her office a list by ownership of all applications for
227 classification as working waterfront property received, showing
228 the acreage, the just valuation under s. 193.011, the value of
229 the land under the provisions of this subsection, and whether
230 the classification was granted.
231 (3) DENIAL OF CLASSIFICATION; APPEAL.—
232 (a) If an application for working waterfront classification
233 is made by March 1, the property appraiser shall notify the
234 applicant in writing of a denial of the application on or before
235 July 1 of the year for which the application was filed. The
236 notification shall advise the applicant of his or her right to
237 appeal to the value adjustment board and of the appeal filing
239 (b) Any applicant whose application for classification as
240 working waterfront property is denied by the property appraiser
241 may appeal to the value adjustment board by filing a petition
242 requesting that the classification be granted. The petition may
243 be filed on or before the 25th day following the mailing of the
244 assessment notice by the property appraiser as required under s.
245 194.011(1). Notwithstanding s. 194.013, the petitioner shall pay
246 a nonrefundable fee of $15 upon filing the petition. Upon the
247 value adjustment board’s review of the petition, if the
248 petitioner is qualified to receive the classification and
249 demonstrates particular extenuating circumstances that warrant
250 granting the classification, the value adjustment board may
251 grant the petition and classification.
252 (c) A denial of a petition for classification by the value
253 adjustment board may be appealed to a court of competent
255 (d)1. Property that has received a working waterfront
256 classification from the value adjustment board or a court of
257 competent jurisdiction under this subsection is entitled to
258 receive such classification in any subsequent year until such
259 use is changed, abandoned, or discontinued, or the ownership
260 changes in any manner as provided in subparagraph (2)(c)4. The
261 property appraiser shall, no later than January 31 of each year,
262 provide notice to the property owner or lessee receiving a
263 classification under this subsection requiring the property
264 owner or a lessee qualified to make application to certify that
265 the ownership and the use of the property has not changed. The
266 department shall prescribe by rule the form of the notice to be
267 used by the property appraiser.
268 2. If a county has waived the requirement that an annual
269 application or short form be filed for classification of the
270 property under subsection (2), the county may, by majority vote
271 of its governing body, waive the notice and certification
272 requirements of this paragraph and shall provide the property
273 owner or lessee with the same notification as provided to
274 property owners granted a working waterfront classification by
275 the property appraiser. Such waiver may be revoked by a majority
276 vote of the county governing body.
277 Section 2. Subsection (1) of section 195.073, Florida
278 Statutes, is amended to read:
279 195.073 Classification of property.—All items required by
280 law to be on the assessment rolls must receive a classification
281 based upon the use of the property. The department shall
282 promulgate uniform definitions for all classifications. The
283 department may designate other subclassifications of property.
284 No assessment roll may be approved by the department which does
285 not show proper classifications.
286 (1) Real property must be classified according to the
287 assessment basis of the land into the following classes:
288 (a) Residential, subclassified into categories, one
289 category for homestead property and one for nonhomestead
291 1. Single family.
292 2. Mobile homes.
293 3. Multifamily.
294 4. Condominiums.
295 5. Cooperatives.
296 6. Retirement homes.
297 (b) Commercial and industrial.
298 (c) Agricultural.
299 (d) Nonagricultural acreage.
300 (e) High-water recharge.
301 (f) Historic property used for commercial or certain
302 nonprofit purposes.
303 (g) Exempt, wholly or partially.
304 (h) Centrally assessed.
305 (i) Leasehold interests.
306 (j) Time-share property.
307 (k) Land assessed under s. 193.501.
308 (l) Working waterfront property.
310 Section 3. This act shall take effect upon becoming a law,
311 and applies retroactively to January 1, 2010.