Bill > S0842

This bill establishes new provisions and modifies existing ones related to property tax exemptions for organizations that are exempt from taxes, often referred to as "exempt organizations." Specifically, it creates a new section (196.1955) that clarifies that property owned by an exempt organization is considered used for an exempt purpose if the organization has taken "affirmative steps" to prepare it for educational, literary, scientific, religious, or charitable use, and no part of the property is used for non-exempt purposes. "Affirmative steps" are defined as actions like obtaining permits, creating plans, clearing land, or starting construction, which show a commitment to the intended exempt use. The bill also introduces a 5-year deadline for preparing the property for its exempt use, after which the organization may be subject to back taxes plus 15% interest if the property isn't in use or is transferred for a non-exempt purpose, though this deadline can be extended if affirmative steps continue. Importantly, this 5-year rule will not apply to property being prepared for use as a "house of public worship," which is defined to include religious services and related incidental activities. The bill also amends existing laws to remove specific provisions related to exemptions for public worship and affordable housing, consolidating these requirements into the new section, and clarifies that profit-making activities on exempt property will generally lead to taxation, with exceptions for certain activities that support the exempt purpose, such as the playing of bingo.