08/16/2023 VAB - Laserfiche WebLink

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FINDINGS OF FACT: THE PROPERTY APPRAISER PRESENTED The Okaloosa County Property Appraiser presented by and through the testimony of Okaloosa County Property Appraiser Counsel Loren Levy. Testified that the property is owned by and exempt entity and is being used by another exempt entity in exchange for rent, market rent. Testified that there is a 2018 court case called Genesis Ministries, a Santa Rosa County case, stands for the proposition that ownership and use has to be by the same entity which is relevant to this instant matter. Testified that the court said that if the entity that owned the property received rent for the lease disqualified the property from receiving the exemption. Testified in the instant matter, the two entities at issue are not related entities. Testified that the instant matter was one whereby the Florida Statute 196.192 is the first issue of the matter before the Special Magistrate which is the general Exemptions from ad valorem taxation statute. Testified that the statute has a two (2) prong test. Testified that the statute exempts ownership with the specific language being "All property owned by an exempt entity, including educational institutions, and used exclusively for exempt purposes shall be totally exempt from ad valorem taxation" in the first prong. Testified that you must have exempt ownership, or ownership by an exempt entity of the property as to the first prong along with use for exempt purposes. Testified that the second prong is, with the specific language being, "All property owned by an exempt entity, including educational institutions, and used predominantly for exempt purposes shall be exempted from ad valorem taxation to the extent of the ratio that such predominant use bears to the nonexempt use." Testified that, for clarity, the first prong stands for ownership of the land by an exempt entity used exclusively for exempt purposes, and that the second prong stands for ownership by an exempt entity used predominantly for exempt purposes shall be exempt from taxation if the use indeed charitable and not market rent. Testified that the statute stands for the fact that one must look at physical and economic uses of the property. Testified that the Property Appraiser's presentation will be focusing on subsections 1 through 2 of Florida Statute 196.196. Testified to the meaning of the language of the following: 196.196 Determining whether property is entitled to charitable, religious, scientific, or literary exemption.— (1) In the determination of whether an applicant is actually using all or a portion of its property predominantly for a charitable, religious, scientific, or literary purpose, the following criteria shall be applied: (a) The nature and extent of the charitable, religious, scientific, or literary activity of the applicant, a comparison of such activities with all other activities of the organization, and the utilization of the property for charitable, religious, scientific, or literary activities as compared with other uses. (b) The extent to which the property has been made available to groups who perform exempt purposes at a charge that is equal to or less than the cost of providing the facilities for their use. Such rental or service shall be considered as part of the exempt purposes of the applicant. 1(2) Only those portions of property used predominantly for charitable, religious, scientific, or literary purposes are exempt. The portions of property which are not predominantly used for charitable, religious, scientific, or literary purposes are not exempt. An exemption for the portions of property used -30-