Business Exemptions

It is a $25,000 exemption off the value for tangible personal property.  The tangible personal property return is your application for the exemption. 

Please be aware that failure to file a return constitutes a failure to apply for the exemption and the account will not be eligible for the exemption.  Once you file your initial return, and if the value of your tangible personal property remains less that $25,000 in subsequent years, you are not required to file another return because your exemption will be automatically renewed by our office.

To be wholly or partially exempt from ad valorem taxation, property must be owned by and used exclusively or predominately for charitable, religious, educational, governmental, literary or scientific purposes.

Qualifications:

• All property used exclusively or predominantly for exempt purposes shall be totally exempt from ad valorem taxation.
• All property used predominantly for exempt purposes shall be exempt from ad valorem taxation to the extent of the value of the portion that such predominant use bears the non-exempt use.
• No application for exemption may be granted for religious, literary, scientific or charitable use of property, etc. until the application has been filed with the Property Appraiser or upon appeal by the Value Adjustment Board to be non-profit as defined in Florida Statutes 196.196.
• Form DR-504

Exemption for property used by nonprofit homes for the aged (196.1975 F.S.) - Nonprofit homes for the aged may qualify for an exemption if they are not for profit and an exempt charitable organization and have at least 75 percent of the occupants who fall within the income and residency limits provided in this section and are over the age of 62 or are totally and permanently disabled, or are totally and permanently disabled veterans that fall within the annual income limitations per s. 196.081 or are nonprofit housing projects financed or insured through HUD which are subject to department established income limitations or if the home or community for the aged is financed through the sale of health facilities authority bonds, or bonds of any other public entity or without public entity bonds or if at least 25 percent of the units or apartments are income restricted as noted in this section.

• Form DR-504HA
• Form DR-504S

Exemption for property used by proprietary continuing care facilities (196.1977 F.S.) – Any apartment in a continuing care facility certified under Chapter 651 that does not otherwise qualify for exemption under 196.1975 F.S or similar exemption or if the resident is not eligible for homestead exemption under 196.031 F.S. may be exempt of $25,000 of assessed valuation for each apartment occupied on January 1 and having a continuing care contract as defined under Chapter 651. An annual application is required with an affidavit from each occupant of an apartment for which an exemption is claimed stating that the person resides therein and in good faith makes that apartment his or her permanent residence. Nonexempt portions of property within the facility may be valued and placed on the tax roll separately. The facility owner is required to disclose to the resident the full amount of the benefit derived from the exemption and the method used to ensure the resident receives such benefit as either an annual or monthly credit to his or her unit’s monthly maintenance fee. The same applies to any non-qualifying resident who subsequently qualifies for the exemption.

• Form DR-501CC

Affordable housing property exemption (196.1978 F.S.) - Property owned by a charitable, not for profit corporation that provides any portion for affordable housing to eligible persons as defined by s. 159.603 or natural persons or families classified as extremely low income, very low income, low income, or moderate income under s. 420.0004 are exempt from ad valorem taxation to the extent authorized under s. 196.196  and must comply with the criteria provided under s. 196.195 for determining exempt status.

Multifamily projects that contain more than 70 units and meet the requirements of this subsection, which provide affordable housing and have recorded in official records an agreement with the Florida Housing Finance Corporation are exempt from ad valorem tax beginning with the January 1 assessment after the 15th completed year, provided they meet one of the additional requirements listed in this section. The exemption terminates if the property no longer serves extremely-low-income, very-low-income, or low-income persons pursuant to the recorded agreement.

Documents Needed:

• Form DR-504
• Form DR-504AFH
• 501c(3) Status

Community centers exemption (196.1986 F.S.) — A structure shall be exempt from ad valorem taxes if it is represented as a community center and owned and operated by a private, nonprofit organization and is open and available for use by the general public wherein no alcoholic beverages are served or consumed on the premises and is used predominantly for educational, literary, scientific, religious, or charitable purposes. Any portion of such property used for nonexempt purposes may be valued and placed upon the tax roll separately from any portion entitled to exemption pursuant to this section. This exemption shall not apply to condominium common elements.

Documents Needed:

• Form DR-504
• 501c(3) Status

Biblical history display property exemption (196.1987 F.S.) — An exemption from ad valorem taxation of property owned by an organization that is federally exempt under s. 501(c)(3) and exhibits, illustrates, and interprets Biblical items and archives; provides live and recorded demonstrations, explanations, reenactments, and illustrations of Biblical history and worship; exhibit times, places, and events of Biblical history and significance, when such activity is open to the public and available at least 1 day per year, to the public for no admission charge. Any portion used for nonexempt purposes may be valued and placed upon the tax rolls separately from any portion entitled to exemption pursuant to this section.

Certain agreements with local governments for use of public property; exemption (196.1993 F.S.) — Any agreement entered into with a local governmental authority prior to January 1, 1969, for use of public property, under which it was understood and agreed in a written instrument or by special act that no ad valorem real property taxes would be paid by the licensee or lessee, shall be deemed a license or management agreement for the use or management of public property. Such interest shall be deemed not to convey an interest in the property and shall not be subject to ad valorem real property taxation. Nothing in this section shall be deemed to exempt such licensee from the ad valorem intangible tax and the ad valorem personal property tax.

Not-for-profit sewer and water company property exemption (196.2001 F.S.) - Any not-for-profit sewer, wastewater, and water company that is income exempt, under s. 115 (a) of the Internal Revenue code on January 1 or holds a current exemption under s. 501(c)(12) shall be exempt from ad valorem taxation. The company is required to file an annual application, meet the guidelines provided within, and provide specifically requested information to the property appraiser in order to determine if the company performs a public purpose and is operated as a non-profitmaking venture.

• Form DR-504W

Additional provisions for exempting property used by hospitals, nursing homes, and homes for special services. (196.197 F.S.) – These additional provisions allow for exemption from taxation of hospitals, nursing homes, and homes for special services if they are a not for profit Florida corporation that is an exempt organization under the provisions of s. 501(c)(3).

Documents Needed:

• Form DR-504
• 501c(3) Status
• Division of Corporation Status

Labor organization property exemption (196.1985 F.S.) - Real property owned and used, predominantly for educational purposes, by any labor organization which has a charter from a state or national organization shall be exempt from ad valorem taxation to the extent of such use pursuant to s. 196.192(2). Any portion of such property used for nonexempt purposes may be valued and placed upon the tax rolls separately from any portion entitled to exemption pursuant to this section.

Any facility, or portion thereof, used to house a charter school whose charter has been approved by the sponsor and the governing board pursuant to s. 1002.33(7), F.S. shall be exempt from ad valorem taxes. For leasehold properties, the landlord must certify by affidavit to the charter school that the lease payments shall be reduced to the extent of the exemption received. The owner of the property shall disclose to a charter school the full amount of the benefit derived from the exemption and the method for ensuring that the charter school receives such benefit. The charter school shall receive the full benefit derived from the exemption through either an annual or a monthly credit to the charter school’s lease payments.

• Form DR-504CS

Educational property exemption (196.198 F.S.) - Educational institutions within this state and the property, buildings, and other improvements used by them or by any other exempt entity or educational institution when used exclusively for educational purposes are exempt from taxation. This exemption may also apply to sheltered workshops providing rehabilitation and the retraining of individuals who have disabilities, or portions of property of college fraternities and sororities or property of a house of public worship or public fairs and expositions being used for educational purposes that are presumed to be an educational use.

• Form DR-504ED