FLORIDA COMMERCIAL PROPERTY TAX "EXEMPTIONS" -- SPECIALLY CLASSIFIED PROPERTIES
Overview
Certain classes of property in Florida are entitled to special treatment under property tax laws. Reduced assessments may be so valuable as to be the equivalent of tax exemptions. Thus, “exemption” and “special classification” are used interchangeably in this article.
Classified properties are assessed under special provisions. Special classes of property include agricultural land; oil, mineral, and other subsurface rights; land subject to development and conservation restrictions for historical or environmental purposes; pollution control devices; and handicap accessibility improvements and renovations. Applicants have burden of proving entitlement to exemptions, and of complying with statutory procedures for obtaining exemptions.
Discussion
General principles
Special classes of property are assessed according to special factors, and not necessarily according to their fair market value. Applicants have the burden of proving entitlement to exemptions, and of complying with statutory procedures for obtaining exemptions.
Certain special assessment provisions are permitted by the Florida Constitution. Some statutory classes do not have a constitutional basis. Any assessment of less than just value must be reported as a classified use assessment.
Exemptions, including special classification assessments, are strictly construed against the taxpayer. Applicants have the burden of proving their entitlement to any such special benefit.
Agricultural classification
The county property appraiser must classify all land as either agricultural or nonagricultural property. Agricultural land is assessed on the basis of its character or use. To qualify for this classification, lands must be used primarily for bona fide commercial agricultural purposes at the time of the application.
The board of county commissioners may reclassify land as nonagricultural if the land is contiguous to an urban area and if the use of the land as agricultural land is a deterrent to community expansion. The county property appraiser must reclassify land as nonagricultural property if it is diverted to nonagricultural use, no longer used for agricultural purposes, or zoned for nonagricultural use at the owner’s request. The owner may regain an agricultural classification by showing that the land is used primarily for bona fide agricultural purposes.
The valuation of agricultural property must take into account many factors, including the size, condition, market value as agricultural land, income produced, productivity, and merchantability of agricultural products. The Department of Revenue standards concerning these factors are prima facie correct but do not determine the property’s value. Agricultural land may be assessed using an income approach that capitalizes net earnings from the land. The Department’s standards set forth specific valuation methods for different types of agricultural lands. Different counties in Florida use different approaches to valuing such lands. Consult a Florida property tax professional to find out about local practices where you own property.
Subsurface oil and mineral rights
Subsurface rights in oil and minerals are assessed separately from the remainder of real property rights. Subsurface rights are assessed at their just value. Separate assessment of subsurface rights is made either when subsurface rights are sold or transferred, or when owners of real property who also own subsurface rights apply for separate assessment.
Noncommercial recreational and environmentally endangered lands
Land that is used exclusively for noncommercial recreation purposes and that is environmentally endangered is assessed on the basis of its character or use. Historically significant property must be assessed to reflect any restrictions on its use. Environmentally endangered land and historically significant property must be designated as such by a county or municipal resolution. Preferential assessment is achieved either by conveying development rights to land to a government agency for at least 10 years or by imposing restrictive covenants on the land for at least 10 years.
Pollution control devices
Pollution control devices, other than domestic sewage systems, may be assessed at their salvage value.
Handicap access improvements and renovations
Improvements and renovations that make property accessible to physically disabled persons may be assessed at their salvage value. To qualify for special assessment, renovations must include either ground-level or ramp entrances, or toilet facilities for disabled persons. These special assessment provisions apply only to buildings or facilities, or parts of buildings or facilities that are used by the general public.
Certain classes of property in Florida are entitled to special treatment under property tax laws. Reduced assessments may be so valuable as to be the equivalent of tax exemptions. Thus, “exemption” and “special classification” are used interchangeably in this article.
Classified properties are assessed under special provisions. Special classes of property include agricultural land; oil, mineral, and other subsurface rights; land subject to development and conservation restrictions for historical or environmental purposes; pollution control devices; and handicap accessibility improvements and renovations. Applicants have burden of proving entitlement to exemptions, and of complying with statutory procedures for obtaining exemptions.
Discussion
General principles
Special classes of property are assessed according to special factors, and not necessarily according to their fair market value. Applicants have the burden of proving entitlement to exemptions, and of complying with statutory procedures for obtaining exemptions.
Certain special assessment provisions are permitted by the Florida Constitution. Some statutory classes do not have a constitutional basis. Any assessment of less than just value must be reported as a classified use assessment.
Exemptions, including special classification assessments, are strictly construed against the taxpayer. Applicants have the burden of proving their entitlement to any such special benefit.
Agricultural classification
The county property appraiser must classify all land as either agricultural or nonagricultural property. Agricultural land is assessed on the basis of its character or use. To qualify for this classification, lands must be used primarily for bona fide commercial agricultural purposes at the time of the application.
The board of county commissioners may reclassify land as nonagricultural if the land is contiguous to an urban area and if the use of the land as agricultural land is a deterrent to community expansion. The county property appraiser must reclassify land as nonagricultural property if it is diverted to nonagricultural use, no longer used for agricultural purposes, or zoned for nonagricultural use at the owner’s request. The owner may regain an agricultural classification by showing that the land is used primarily for bona fide agricultural purposes.
The valuation of agricultural property must take into account many factors, including the size, condition, market value as agricultural land, income produced, productivity, and merchantability of agricultural products. The Department of Revenue standards concerning these factors are prima facie correct but do not determine the property’s value. Agricultural land may be assessed using an income approach that capitalizes net earnings from the land. The Department’s standards set forth specific valuation methods for different types of agricultural lands. Different counties in Florida use different approaches to valuing such lands. Consult a Florida property tax professional to find out about local practices where you own property.
Subsurface oil and mineral rights
Subsurface rights in oil and minerals are assessed separately from the remainder of real property rights. Subsurface rights are assessed at their just value. Separate assessment of subsurface rights is made either when subsurface rights are sold or transferred, or when owners of real property who also own subsurface rights apply for separate assessment.
Noncommercial recreational and environmentally endangered lands
Land that is used exclusively for noncommercial recreation purposes and that is environmentally endangered is assessed on the basis of its character or use. Historically significant property must be assessed to reflect any restrictions on its use. Environmentally endangered land and historically significant property must be designated as such by a county or municipal resolution. Preferential assessment is achieved either by conveying development rights to land to a government agency for at least 10 years or by imposing restrictive covenants on the land for at least 10 years.
Pollution control devices
Pollution control devices, other than domestic sewage systems, may be assessed at their salvage value.
Handicap access improvements and renovations
Improvements and renovations that make property accessible to physically disabled persons may be assessed at their salvage value. To qualify for special assessment, renovations must include either ground-level or ramp entrances, or toilet facilities for disabled persons. These special assessment provisions apply only to buildings or facilities, or parts of buildings or facilities that are used by the general public.
posted by Daniel A. Weiss at
6:49 AM
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