PTO Bulletin 20-09Property Tax Oversight Bulletin: PTO 20-09
To: Property Appraisers, Tax Collectors, Clerks of the Court, Boards of
County Commissioners, Taxing Authorities, and Interested Parties
From: Property Tax Oversight Program
Date: June 29, 2020
Bulletin: PTO 20-09
FLORIDA DEPARTMENT OF REVENUE
PROPERTY TAX INFORMATIONAL BULLETIN
Exemption for Hospitals, Community Benefit Reporting
The 2020 legislature enacted Chapter 2020-10, Section 2, Laws of Florida (HB 7097), effective
January 1, 2022. This law includes the following:
• Section 2 creates section 193.019, F.S., relating to hospitals; community benefit
reporting, effective January 1, 2022.
• By January 15 of each year, each applicant for exemption for hospital property shall
submit to the Department a copy of the applicant’s most recently filed IRS Form 990,
Schedule H, with a statement certifying the county net community benefit expense is true
and correct, and a schedule displaying information regarding the community benefit
expense.
• By January 15 of each year, each county property appraiser shall calculate and submit to
the Department the tax reduction resulting from the property exemption for the prior year
granted pursuant to ss. 196.196 and 196.197 for each property owned by an applicant.
• The Department must determine if the county net community benefit expense attributed
to an applicant’s property in a county equals or exceeds the tax reductions resulting from
the exemptions described in subsection 193.019(2), F.S., for that county.
• If an applicant’s county net community benefit expense does not equal or exceed the tax
reductions from the exemptions, in two consecutive years, the Department shall notify the
property appraiser by March 15 to limit the exemption for the current year by multiplying
it by the ratio of the net community benefit expense to the tax reductions resulting from
the exemptions.
The amendment provides as follows (all text is new):
Section 2. Effective January 1, 2022, section 193.019, Florida Statutes, is created to read:
193.019 Hospitals; community benefit reporting.—
(1) As used in this section, the term:
(a) “Applicant” means the owner of property for which an exemption is being sought
under ss. 196.196 and 196.197 for hospital property.
(b) “County net community benefit expense” is that portion of the net community
benefit expense reported by an applicant on its most recently filed Internal Revenue
Service Form 990, Schedule H:
1. Attributable to those services and activities provided or performed in a county; and
2. Attributed to the county from another county. An applicant may attribute up to 100
percent of its net community benefit expense to any county or counties in this state. The
Bulletin PTO 20-09
June 29, 2020
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county net community benefit expense of a county must be reduced by any net
community benefit expense that is attributed to another county.
(c) “Department” means the Department of Revenue.
(d) “Hospital” has the same meaning as in s. 196.012(8).
(2) By January 15 of each year, a county property appraiser shall calculate and submit
to the department the tax reduction resulting from the property exemption for the prior
year granted pursuant to ss. 196.196 and 196.197 for each property owned by an
applicant.
(3) By January 15 of each year, an applicant shall submit to the department:
(a) A copy of the applicant’s most recently filed Internal Revenue Service Form 990,
Schedule H.
(b) A schedule displaying:
1. The county net community benefit expense attributed to each county in this state in
which properties are located pursuant to subparagraph (1)(b) 1.;
2. The county net community benefit expense attributed to each county in this state in
which properties are located pursuant to subparagraph (1)(b) 2.;
3. The portion of net community benefit expense reported by the applicant on its most
recently filed Internal Revenue Service Form 990, Schedule H, attributable to those
services and activities provided or performed outside of this state; and
4. The sum of amounts provided under subparagraphs 1., 2., and 3., which must equal
the total net community benefit expense reported by the applicant on its most recently
filed Internal Revenue Service Form 990, Schedule H.
(c) A statement signed by the applicant’s chief executive officer and an independent
certified public accountant that, upon each person’s reasonable knowledge and belief, the
statement of the Florida total of the county net community benefit expense is true and
correct.
(4) The department must determine whether the county net community benefit
expense attributed to an applicant’s property located in a county equals or exceeds the tax
reductions resulting from the exemptions described in subsection (2) for that county.
(5) In any second consecutive year the department determines that an applicant’s
county net community benefit expense does not equal or exceed the tax reductions
resulting from the exemptions described in subsection (2), the department shall notify the
respective property appraiser by March 15 to limit the exemption under ss. 196.196 and
196.197 for the current year in the property appraiser’s county by multiplying it by the
ratio of the net community benefit expense to the tax reductions resulting from the
exemptions described in subsection (2).
(6) The department shall publish the data collected pursuant to this section for each
applicant from a county property appraiser, including the net community benefit expense
reported in the Internal Revenue Service Form 990, Schedule H.
(7) The department may adopt rules to administer this section, including the adoption
of necessary forms.
The full text of the law changes is available at http://laws.flrules.org/2020/10.
The Department of Revenue has provided this bulletin for your general information. Please
distribute to your staff who may be affected by the changes in the law. If you have questions about
its contents, please send them to DORPTO@floridarevenue.com.