PTO Bulletin 14-03 Property Tax Oversight I Bulletin: PTO 14-03
To: Property Appraisers, Tax Collectors, Clerks of the Court, Board of
County Commissioners, Taxing Authorities, and Interested Parties
From: James McAdams
Date: July 11, 2014
Bulletin: PTO 14-03
FLORIDA DEPARTMENT OF REVENUE
PROPERTY TAX INFORMATIONAL BULLETIN
Economic Development Ad Valorem Tax Exemption
The 2014 Legislature enacted Chapter 2014-40, Laws of Florida, (HB 7081) effective May
12, 2014. This law revises the procedures local governments may use to authorize ad valorem
exemptions for economic development.
Section 1. This act amends subsection (5) of section 196.1995, Florida Statutes, to read (words
stricken are deletions; words underlined are additions):
196.1995 Economic development ad valorem tax exemption.—
(5)Upon a majority vote in favor of such authority,the board of county commissioners or
the governing authority of the municipality, at its discretion, by ordinance may exempt
from ad valorem taxation up to 100 percent of the assessed value of all improvements to
real property made by or for the use of a new business and of all tangible personal
property of such new business, or up to 100 percent of the assessed value of all added
improvements to real property made to facilitate the expansion of an existing business and
of the net increase in all tangible personal property acquired to facilitate such expansion of
an existing business. To qualify for this exemption, the improvements to real
property must be are made or the tangible personal property must be is added or increased
after approval by motion or resolution of the local governing body, subject to ordinance
adoption or on or after the day the ordinance is adopted. However, if the authority to grant
exemptions is approved in a referendum in which the ballot question contained in
subsection (3) appears on the ballot, the authority of the board of county commissioners or
the governing authority of the municipality to grant exemptions is limited solely to new
businesses and expansions of existing businesses that are located in an enterprise zone or
brownfield area. Property acquired to replace existing property shall not be considered to
facilitate a business expansion. The exemption applies only to taxes levied by the respective
unit of government granting the exemption. The exemption does not apply, however, to
taxes levied for the payment of bonds or to taxes authorized by a vote of the electors
pursuant to s. 9(b) or s. 12, Art. VII of the State Constitution. Any such exemption shall
remain in effect for up to 10 years with respect to any particular facility, regardless of any
change in the authority of the county or municipality to grant such e xemptions. The
Bulletin PTO 14-03
July 11, 2014
Page 2 of 2
exemption shall not be prolonged or extended by granting exemptions from additional
taxes or by virtue of any reorganization or sale of the business receiving the exemption.
Section 14 of Chapter 2014-40, Laws of Florida, is created to read (words stricken are deletions;
words underlined are additions):
Section 14. A local ordinance enacted pursuant to s. 196.1995, Florida Statutes, before the
effective date of this act shall not be invalidated on the ground that improvements to real
property were made or that tangible personal property was added or increased before the
date that such ordinance was adopted, as long as the local governing body acted
substantially in accordance with s. 196.1995(5),Florida Statutes, as amended by this act.
The full text of the changes is available at http://laws.flrules.org/2014/40.
The Department of Revenue has provided this bulletin for your general information. If you wish
to discuss this matter, you may send your questions to DORPTO c?,dor.state.fl.us.