Bill Type and Number: Ordinance 2007-458

 

Sponsor: Council Member Self

 

Date of Introduction: April 24, 2007

 

Committee(s) of Reference: F, ECID

 

Date of Analysis: April 27, 2007

 

Type of Action: Ordinance Code amendment

 

Bill Summary: The bill amends Ordinance Code Chapter 780 – Property Tax – to create a new Part 6 – Tax Deferral Program for Recreational and Commercial Working Waterfront Properties.  The Part creates a mechanism by which the owners of working waterfronts (hotels and motels, marinas, boat yards, docks, boat hauling and repair businesses, etc.) may defer payment of ad valorem taxes on such properties, under certain conditions, until such time as the property ceases to be used for an eligible recreational or commercial use or is sold to a new owner.  The deferral would apply only to taxes levied by the City of Jacksonville, and would not apply to School Board, FIND or Water Management District taxes, non-ad valorem special assessments, or taxes levied make payments pledged to bond debt service.  Applications for the deferral will be submitted to and approved or disapproved by the Tax Collector.  Appeals of the Tax Collector’s denial of a deferral application shall be to the Value Adjustment Board, and further appeal of a denial by the VAB shall be to the circuit courts.

 

For each property on which taxes are deferred pursuant to this program, a lien shall be created and the Tax Collector shall issue to the City a tax certificate for the deferred taxes, which shall accrue interest based on the average yield of Florida Retirement Savings investments.  The property owner is required to maintain insurance on the property to safeguard its value for purposes of satisfying the lien.  The deferred taxes are due and payable when the property is sold to a new owner or ceases to be used for a tax deferrable purpose.

 

Background Information: The working waterfront tax deferral program was authorized by a law passed by the 2006 Florida Legislature to provide a means to incentivize owners of marinas, boat ramps, boat sales and repair yards, etc. to maintain these uses and thereby the public’s access to waterways in the face of rising tax bills due to the assessment of waterfront property based on its highest and best use, which often would be expensive condominiums that would preclude public use of the waterfront.

 

Policy Impact Area: Property tax deferral; maintenance of public access to waterways

 

Fiscal Impact: Undetermined

 

Analyst: Clements