§ 86-22. Historic property tax exemption and assessment classification.

(a)

Short title. This article shall be known as "The Levy County Historic Property Tax Exemption Ordinance."

(b)

Purpose and intent. It is the intent of the board of county commissioners to foster the restoration, use, and preservation of historic properties in the county by providing incentives relating to exemptions of certain ad valorem taxes for historic properties and providing for an assessment classification for certain historic properties.

(c)

Definitions.

(1)

For the purposes of this article, the following terms shall have the meanings indicated below.

a.

Ad valorem tax means a tax based upon the assessed value of property.

b.

Assessed value of property means an annual determination of the just or fair market value of an item or property or, if a property is assessed solely on the basis of character or use or at a specified percentage of its value, pursuant to article VII, sections 4(a) or 4(b), Florida Constitution, its classified use value or fractional value.

c.

Commission, county commission, or board means the board of county commissioners of Levy County, Florida.

d.

County means Levy County, Florida.

e.

Preservation exemption covenant or covenant means the Historic Preservation Property Tax Exemption Covenant, in substantially similar form to the Florida DOS Form No. HR3E111292, or meeting the requirements of section 1A-38.006(2), Florida Administrative Code, indicating that the owner agrees to maintain and repair the property so as to preserve the architectural, historical, or archaeological integrity of the property during the exemption period.

f.

Property appraiser means the Levy County property appraiser, a county officer charged with determining the value of all property within the county, with maintaining certain records connected therewith, and with determining the tax on taxable property after taxes have been levied.

(2)

The following words and phrases when used in this article shall have the meanings set forth below, which are the same meanings specified in the rules of the Department of State, Division of Historical Resources, chapter 1A-38, Florida Administrative Code, as may be amended from time to time:

a.

Contributing property means a building, site, structure, or object which adds to the historical architectural qualities, historic associations, or archaeological values for which a district is significant because (i) it was present during the period of significance of the district and possesses historic integrity reflecting its character at that time, (ii) is capable of yielding important information about the period, or (iii) it independently meets the National Register of Historic Places criteria for evaluation set forth in 36 CFR Part 60.4, incorporated by reference.

b.

Division means the Division of Historical Resources of the Department of State of the State of Florida.

c.

Historic property means a building, site, structure, or object which is: (i) individually listed in the National Register of Historic Places; (ii) a contributing property in a National Register listed historic district; (iii) designated as a historic property or landmark under the provisions of a local historic preservation ordinance; or (iv) a contributing property in a historic district designated under the provisions of a local historic preservation ordinance.

d.

Improvements means changes in the condition of real property brought about by the expenditure of labor or money for the restoration, renovation, or rehabilitation of such property. Improvements include additions and accessory structures (i.e., garage, cabana, guest cottage, storage/utility structure), so long as the new construction is compatible with the historic character of the building and site in terms of size, scale, massing, design and materials, and preserves the historic relationship between a building or buildings, landscape and open space.

e.

National Register of Historic Places means the list of historic properties significant in American history, architecture, archeology, engineering, and culture, maintained by the Secretary of the Interior, as established by the National Historic Preservation Act of 1966 (Public Law 89-665; 80 STAT. 915; 16 U.S.C. 470), as amended.

f.

Renovation or rehabilitation, for a historic property or portion thereof which is of historical or architectural significance, means the act or process of returning a property to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions or features of the property which are significant to its historical, architectural, cultural, and archaeological values. For historic properties or portions thereof which are of archaeological significance or are severely deteriorated, renovation or rehabilitation means the act or process of applying measures designed to sustain and protect the existing form and integrity of a property, or reestablish the stability of an unsafe or deteriorated property while maintaining the essential form of the property as it presently exists.

g.

Restoration means the act or process of accurately recovering the form and details of a property and its setting as it appeared at a particular period of time by means of the removal of later work or by the replacement of missing earlier work.

h.

Useable space means that portion of the space within a building which is available for assignment or rental to an occupant, including every type of space available for use of the occupant.

(d)

Exemption from ad valorem taxes for improvements and properties open to the public.

(1)

Exemption for improvements to historic property pursuant to F.S. § 196.1997. The county commission may authorize an ad valorem tax exemption of 100 percent of the assessed value of all improvements to historic properties which result from the restoration, renovation, or rehabilitation of such properties, subject to the limitations, provisions, and any application or approval processes contained in F.S. § 196.1997, or this article.

(2)

Exemption for historic properties open to the public pursuant to F.S. § 196.1998. If an improvement qualifies a historic property for an exemption under F.S. § 196.1997, and subsection (e), and the property is used for nonprofit or governmental purposes and is regularly and frequently open for the public's visitation, use, and benefit, the county commission may, by this article, authorize the exemption from ad valorem taxation of 100 percent of the assessed value of the property, as improved, if all other provisions of this article and F.S. § 196.1998, and applicable provisions of F.S. § 196.1997, are complied with; provided, however, that the assessed value of the improvement must be equal to at least 50 percent of the total assessed value of the property as improved. The exemption applies only to real property to which improvements are made by or for the use of the existing owner and is subject to the limitations, provisions, and any application or approval processes contained in F.S. § 196.1998, or this article.

(3)

Applicability to improvements and taxes. The exemptions contained in subsections (1) and (2) shall only apply to improvements, or to property on which such improvements are made, respectively, if such improvements are made on or after the date of the adoption of the ordinance adopting the ad valorem tax exemptions for historic properties contained in this section. Such exemptions shall apply only to taxes levied by Levy County, and do not apply to taxes levied for the payment of bonds or to taxes authorized by a vote of the electors pursuant to article VII, sections 9(b) or 12, of the Florida Constitution.

(4)

Duration of exemption. Any exemption granted pursuant to this section shall remain in effect for up to ten years with respect to any particular property, regardless of any change in the authority of the county to grant such exemptions or any change in ownership of the property. However, for purposes of the exemption under F.S. § 196.1998, a property shall be removed from eligibility for the exemption if the property is sold or otherwise transferred from the owner who made application and was granted the exemption, or the property no longer qualifies as historic property open to the public in accordance with subsection (e).

(5)

Retention of exemption. In order to retain an exemption granted pursuant to this section, the historic character of the property, and the improvements which qualify for the exemption or qualified the property for exemption, must be maintained over the period for which the exemption is granted. Such exemption shall take effect on January 1 following substantial completion of the applicable improvements.

(e)

Designation of type and location of historic property qualified for exemption.

(1)

Type. The historic property for which an exemption may be granted under subsection (d) is qualified for such exemption if:

a.

At the time the exemption is granted, the property:

1.

Is individually listed in the National Register of Historic Places pursuant to the National Historic Preservation Act of 1966, as amended; or

2.

Is a contributing property to a national register-listed district; or

3.

Is designated as a historic property, or as a contributing property to a historic district, under the terms of a local historic preservation ordinance, as the same may be adopted; and

b.

The division has certified to the county that the property for which an exemption is requested satisfies subsection (e)(1)a.; and

c.

The division has determined and notified the county that the property meets criteria established in rules adopted by the Department of State for qualification for the applicable exemption; and

d.

In order for an improvement to a historic property to qualify the property for an exemption, the improvement must:

1.

Be consistent with the United States Secretary of Interior's standards for rehabilitation; or

2.

Be determined by the division to meet criteria established in the rules adopted by the Department of State.

e.

In addition to the criteria contained in subsections a.—d., in order for property to qualify for the exemption under subsection (d)(2) and F.S. § 196.1998, the property must be used for nonprofit or governmental purposes and be frequently open for the public's visitation, use, and benefit. For purposes of this criteria, a property is being used for nonprofit or governmental purposes if the occupant or user of at least 65 percent of the useable space of a historic building or of the upland component of an archaeological site is an agency of the federal, state, or local government, or a nonprofit corporation whose articles of incorporation have been filed by the Department of State in accordance with F.S. § 617.0125. Additionally, a property is considered frequently open for the public's visitation, use, and benefit if public access to the property is provided not less than 52 days a year on an equitably spaced basis, and at other times by appointment.

(2)

Location. Property is qualified for an exemption under subsection (e) only if is located within the jurisdictional boundaries of Levy County.

(f)

Designation of division to review applications and make recommendations and determinations. The county hereby designates the division to review applications for exemptions, make recommendations to the board to grant or deny any requested exemption, make determinations on whether a particular property meets the criteria established in rules adopted by the division for determination as a historic property or qualification for an exemption, and perform any other powers or duties granted to either the division or a local historic preservation office under F.S. §§ 196.1997 and 196.1998.

(g)

Application process.

(1)

Application required. Any person, firm or corporation that desires an exemption under subsection (d) shall file an application with the board in the year the exemption is desired to take effect.

(2)

Applicant. The applicant for an exemption under subsection (d) shall be the owner of a qualifying property or the authorized agent of the owner.

(3)

Application form. An application for an exemption under subsection (d) shall be made on the three-part Historic Preservation Tax Exemption Application, DOS Form No. HR3E101292, as prescribed in the rules contained in the Florida Administrative Code developed by the division, as the same may be amended. Any application shall contain the following information, at a minimum:

a.

The name of the property owner and the location of the historic property.

b.

A description of the improvements to the real property for which an exemption is requested and the date of commencement of construction of such improvements.

c.

Proof, to the satisfaction of the division that the property that is to be rehabilitated or renovated is a historic property under this article.

d.

Proof, to the satisfaction of the division that the improvements to the property will be consistent with the United States Secretary of Interior's standards for rehabilitation and will be made in accordance with guidelines developed by the Florida Department of State.

e.

Any other information deemed necessary by the Florida Department of State or the county.

(h)

Method of application review.

(1)

Review.

a.

Delivery of application to the property appraiser. The board shall deliver a copy of each application for a historic preservation ad valorem tax exemption under subsection (d) to the property appraiser and the division. Upon certification of the assessment roll, or recertification, if applicable, pursuant to F.S. § 193.122, for each fiscal year during which this article is in effect, the property appraiser shall report the following information to the board:

1.

The total taxable value of all property within the county for the current fiscal year.

2.

The total exempted value of all property in the county which has been approved to receive historic preservation ad valorem tax exemption for the current fiscal year.

b.

Division recommendations. Prior to consideration of an application by the board, the recommendations of the division regarding granting or denial of an exemption and any other applicable findings of the division regarding such application, must have been provided to the applicant and the board. Such reviews by the division and development of division recommendations and any other applicable findings must be conducted in accordance with rules adopted by the Florida Department of State.

(2)

Approval by county commission. A majority vote of the county commission shall be required to approve a written application for exemption under subsection (d). Any exemption granted for an application under subsection (d)(1) shall take effect on the January 1 following substantial completion of the applicable improvement. Any approval of an application for exemption shall be in the form of a resolution by the board, and shall include the following information:

a.

The name of the owner and the address of the historic property for which the exemption is granted.

b.

The period of time for which the exemption will remain in effect and the expiration date of the exemption.

c.

A finding that the historic property meets the requirements of F.S. § 196.1997, and all applicable requirements of this article.

(i)

Covenant with applicant.

(1)

Term of preservation exemption covenant. To qualify for an exemption, the property owner must enter into a preservation exemption covenant with the county for the term for which the exemption is granted. Such covenant must be executed by the applicant before a final application for exemption can be approved by the county commission.

(2)

Form of covenant. The form of covenant shall be established by the division and shall require that the character of the property, and the qualifying improvements to the property, be maintained during the period that the exemption is granted. The covenant shall be binding on the current property owner, transferees, and their heirs, successors, or assigns.

(3)

Violations of covenant. Any violations of the covenant shall result in the property owner being subject to the payment of the differences between the total amount of taxes which would have been due in March in each of the previous years in which the covenant was in effect had the property not received the exemption and the total amount of taxes actually paid in those years, plus interest on the difference calculated as provided in F.S. § 212.12(3).

(j)

Assessment classification of historic property used for commercial or certain nonprofit purposes.

(1)

Levy County hereby elects, pursuant to the provisions of article VII, section 4(d), Florida Constitution, and F.S. § 193.503, as currently enacted or as may be amended from time to time, to provide for the assessment of historic property used for commercial or certain nonprofit purposes, solely on the basis of character or use, all as provided in such § 193.503. The character or use assessment shall apply only to Levy County. A taxpayer claiming the exemption must submit an annual application with the property appraiser pursuant to the requirements set forth in F.S. § 193.503.

(2)

In order to qualify for the assessment classification of historic property used for commercial or certain nonprofit purposes provided in F.S. § 193.503, the property must meet all the following criteria:

a.

The property must be used for commercial purposes or used by a not-for-profit organization under section 501(c)(3) or (6) of the Internal Revenue Code of 1986.

b.

The property must be listed in the National Register of Historic Places, as defined in F.S. § 267.021; or must be a contributing property to a National Register Historic District; or must be designated as a historic property or as a contributing property to a historic district, under the terms of a local preservation ordinance.

c.

The property must be regularly open to the public. As used in this ordinance, "regularly open to the public" means that there are regular hours when the public may visit to observe the historically significant aspects of the building. This means a minimum of 40 hours per week, for 45 weeks per year, or an equivalent of 1,800 hours per year. A fee may be charged to the public; however, it must be comparable with other entrance fees in the immediate geographic locale.

d.

The historic character of the property must be maintained in good repair and condition to the extent necessary to preserve the historic value and significance of the property.

e.

Any other criteria contained in F.S. § 193.503, or any rules adopted by the division regarding such classification.

(3)

A taxpayer claiming an assessment classification pursuant to this section must comply with each and every provision of F.S. § 193.503, as currently enacted or as may be amended from time to time.

(4)

After qualifying for and being granted a classification and assessment pursuant to this section, the owner of the property shall not use the property in any manner not consistent with the qualifying criteria. If the historic designation status or the use of the property changes or the property fails to meet any other qualifying criteria for the classification and the assessment, the property owner shall be liable for the amount of taxes equal to the "deferred tax liability" for up to the past ten years in which the property received the use classification and assessment pursuant to this section. The term "deferred tax liability," the time period for which it shall be determined, any payment thereof, and any methods or procedures in response to payment thereof, shall all be as determined in F.S. § 193.503.

(k)

Ad valorem tax exemption for historic property used for certain commercial or nonprofit purposes.

(1)

Levy County hereby elects, pursuant to the provisions of article VII, section 3, Florida Constitution, and F.S. § 196.1961, as currently enacted or as may be amended from time to time, to provide for an ad valorem tax exemption of 50 percent of the assessed value of property which meets the criteria set forth in subsections (j)(2)a.—d. hereof, and any additional criteria contained in F.S. § 196.1961, or any rules adopted by the division regarding such exemption. A taxpayer claiming the exemption must submit an annual application with the property appraiser pursuant to the requirements set forth in F.S. § 196.011.

(2)

The exemption granted by this section shall apply only to taxes levied by the county.

(3)

The exemption granted by this section shall remain in effect until repealed or altered by subsequent ordinance of the board.

(4)

The exemption granted by this section does not apply to taxes levied for the payment of bonds or to taxes authorized by a vote of the electors pursuant to article VII, section 9(b), Florida Constitution or article VII, section 12, Florida Constitution.

(5)

The exemption granted by this section shall apply to only those portions of the property used predominantly for the purposes specified in section (j)(2)a. hereof. In no event shall an incidental use of property qualify such property for an exemption or impair the exemption of an otherwise exempt property.

(Ord. No. 2006-16 , § 3, 11-21-2006)