The 2023 Florida Statutes (including Special Session C)

Title XIV
TAXATION AND FINANCE

Chapter 196
EXEMPTION

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F.S. 196.196

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.

(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 for charitable, religious, scientific, or literary purposes is not affected so long as the predominant use of such property is for charitable, religious, scientific, or literary purposes. In no event shall an incidental use of property either qualify such property for an exemption or impair the exemption of an otherwise exempt property.

¹(3) Property owned by an exempt organization is used for a religious purpose if the institution has taken affirmative steps to prepare the property for use as a house of public worship. The term “affirmative steps” means environmental or land use permitting activities, creation of architectural plans or schematic drawings, land clearing or site preparation, construction or renovation activities, or other similar activities that demonstrate a commitment of the property to a religious use as a house of public worship. For purposes of this section, the term “public worship” means religious worship services and those other activities that are incidental to religious worship services, such as educational activities, parking, recreation, partaking of meals, and fellowship.

(4) Except as otherwise provided herein, property claimed as exempt for literary, scientific, religious, or charitable purposes which is used for profitmaking purposes shall be subject to ad valorem taxation. Use of property for functions not requiring a business or occupational license conducted by the organization at its primary residence, the revenue of which is used wholly for exempt purposes, shall not be considered profit making. In this connection the playing of bingo on such property shall not be considered as using such property in such a manner as would impair its exempt status.

(5)(a) Property owned by an exempt organization qualified as charitable under s. 501(c)(3) of the Internal Revenue Code is used for a charitable purpose if the organization has taken affirmative steps to prepare the property to provide affordable housing to persons or families that meet the extremely-low-income, very-low-income, low-income, or moderate-income limits, as specified in s. 420.0004. The term “affirmative steps” means environmental or land use permitting activities, creation of architectural plans or schematic drawings, land clearing or site preparation, construction or renovation activities, or other similar activities that demonstrate a commitment of the property to providing affordable housing.

(b)1. If property owned by an organization granted an exemption under this subsection is transferred for a purpose other than directly providing affordable homeownership or rental housing to persons or families who meet the extremely-low-income, very-low-income, low-income, or moderate-income limits, as specified in s. 420.0004, or is not in actual use to provide such affordable housing within 5 years after the date the organization is granted the exemption, the property appraiser making such determination shall serve upon the organization that illegally or improperly received the exemption a notice of intent to record in the public records of the county a notice of tax lien against any property owned by that organization in the county, and such property shall be identified in the notice of tax lien. The organization owning such property is subject to the taxes otherwise due and owing as a result of the failure to use the property to provide affordable housing plus 15 percent interest per annum and a penalty of 50 percent of the taxes owed.

2. Such lien, when filed, attaches to any property identified in the notice of tax lien owned by the organization that illegally or improperly received the exemption. If such organization no longer owns property in the county but owns property in any other county in the state, the property appraiser shall record in each such other county a notice of tax lien identifying the property owned by such organization in such county which shall become a lien against the identified property. Before any such lien may be filed, the organization so notified must be given 30 days to pay the taxes, penalties, and interest.

3. If an exemption is improperly granted as a result of a clerical mistake or an omission by the property appraiser, the organization improperly receiving the exemption shall not be assessed a penalty or interest.

4. The 5-year limitation specified in this subsection may be extended if the holder of the exemption continues to take affirmative steps to develop the property for the purposes specified in this subsection.

¹(6) Property that is used as a parsonage, burial grounds, or a tomb and is owned by an exempt organization that owns a house of public worship is used for a religious purpose.

History.—s. 8, ch. 71-133; s. 3, ch. 88-102; s. 3, ch. 91-196; s. 4, ch. 97-294; s. 3, ch. 98-289; s. 3, ch. 2000-228; s. 5, ch. 2007-106; s. 17, ch. 2009-96; s. 3, ch. 2011-15; s. 8, ch. 2021-31; s. 10, ch. 2023-157.

¹Note.—Section 11, ch. 2023-157, provides that “[t]he amendments made by this act to s. 196.196, Florida Statutes, are remedial and clarifying in nature and do not provide a basis for an assessment of any tax or create a right to a refund of any tax paid before July 1, 2023.”

F.S. 196.196 on Google Scholar

F.S. 196.196 on Casetext

Amendments to 196.196

Arrestable Offenses / Crimes under Fla. Stat. 196.196

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 196.196.

Annotations, Discussions, Cases:

Cases from cite.case.law:

CITY OF LARGO, v. AHF- BAY FUND, LLC,, 215 So. 3d 10 (Fla. 2017)

. . . in s. 420.0004(9) and (14) shall be exempt from ad valorem taxation to the extent authorized in s. 196.196 . . .

W. C. SHERMAN, v. RED BAY STRONGHOLD FOUNDATION,, 942 So. 2d 1033 (Fla. Dist. Ct. App. 2006)

. . . Section 196.196, Florida Statutes (2003), provides guidelines to determine whether property is entitled . . . See § 196.196(2), Fla. Stat. . . .

PARRISH, v. PIER CLUB APARTMENTS, LLC, a, 900 So. 2d 683 (Fla. Dist. Ct. App. 2005)

. . . in s. 420.0004(9) and (14) shall be exempt from ad valorem taxation to the extent authorized in s. 196.196 . . . resolved by section 196.1978’s internal references to sections 159.603(7); 420.0004(9), (10), (14); 196.196 . . .

SMITH, v. AMERICAN LUNG ASSOCIATION OF GULFCOAST FLORIDA, INC., 870 So. 2d 241 (Fla. Dist. Ct. App. 2004)

. . . And section 196.196 provides in pertinent part: (1) In the determination of whether an applicant is actually . . .

PALM BEACH COMMUNITY CHURCH, a v. R. NIKOLITS, K., 835 So. 2d 1274 (Fla. Dist. Ct. App. 2003)

. . . The exemption in section 196.196(2), Florida Statutes provides that only “portions of property used predominantly . . .

FAIRHAVEN SOUTH, INC. d b a a v. C. McINTYRE,, 793 So. 2d 110 (Fla. Dist. Ct. App. 2001)

. . . requirements of section 196.195 (determining the profit or nonprofit status of an applicant) and section 196.196 . . .

METROPOLITAN DADE COUNTY, v. BROTHERS OF THE GOOD SHEPHERD, INC., 714 So. 2d 573 (Fla. Dist. Ct. App. 1998)

. . . in 1945, was entitled to a charitable exemption from ad valorem taxation under sections 196.012(1), 196.196 . . .

In HOME AND HOUSING OF DADE COUNTY, INC. METROPOLITAN DADE COUNTY, v. SONEET KAPILA,, 220 B.R. 492 (S.D. Fla. 1998)

. . . the Taxes with respect to the Improved Properties pursuant to Florida Statute §§ 196.192, 196.195 and 196.196 . . . from the Taxes with respect to the Vacant Lots pursuant to Florida Statute §§ 196.192, 196.195 and 196.196 . . . the Taxes with respect to the Commercial Property pursuant to Florida Statute §§ 196.192, 196.195 and 196.196 . . . the Taxes with respect to the Personal Property pursuant to Florida Statute §§ 196.192, 196.195 and 196.196 . . . entitled to a tax exemption for charitable use pursuant to Florida Statute §§ 196.192, 196.195 and 196.196 . . .

TRINITY TEMPLE CHURCH OF GOD IN CHRIST, INC. v. ORANGE COUNTY,, 681 So. 2d 765 (Fla. Dist. Ct. App. 1996)

. . . .” § 196.196(1), Fla. Stat. (1995). . . .

MASTROIANNI, J. v. MEMORIAL MEDICAL CENTER OF JACKSONVILLE, INC. a EMMCO I, a EMMCO II, a, 606 So. 2d 759 (Fla. Dist. Ct. App. 1992)

. . . that provides direct medical services to patients in a nonprofit hospital and qualifies under section 196.196 . . . provides direct medical services to patients in a nonprofit or public hospital and qualifies under s. 196.196 . . . provides direct medical services to patients in a nonprofit or public hospital and qualifies under section 196.196 . . .

TRINITY EPISCOPAL SCHOOL, INC. v. W. ROBBINS,, 605 So. 2d 880 (Fla. Dist. Ct. App. 1992)

. . . In support of his argument, the appraiser relies on the second sentence of section 196.196(2), Florida . . . However, the appraiser’s reliance on section 196.196(2) is misplaced. . . . In its entirety, section 196.196(2) states: “Only those portions of the property used predominantly for . . . We therefore conclude that the statutory proscription set forth in section 196.196(2) is not applicable . . . Although Grady concerned a religious exemption, the court cited section 196.196(2), Florida Statutes . . .

INTERNATIONAL SOCIETY FOR KRISHNA CONSCIOUSNESS OF MIAMI BEACH, INC. v. ROBBINS,, 44 Fla. Supp. 2d 77 (Fla. Cir. Ct. 1990)

. . . .” § 196.196(3), Fla. . . .

METROPOLITAN DADE COUNTY, v. MIAMI- DADE COUNTY COMMUNITY COLLEGE FOUNDATION, INC., 545 So. 2d 324 (Fla. Dist. Ct. App. 1989)

. . . taxpayer claimed a charitable use exemption for 1974 as a nonprofit hospital under Sections 196.195, 196.196 . . .

J. GRADY, v. HAUSMAN,, 509 So. 2d 1316 (Fla. Dist. Ct. App. 1987)

. . . property appraiser in determining whether property is entitled to exempt status are set forth in section 196.196 . . . literary, scientific, religious or charitable purposes will not qualify the property for an exemption. § 196.196 . . .

NORTH SHORE MEDICAL CENTER, INC. v. B. BYSTROM,, 461 So. 2d 167 (Fla. Dist. Ct. App. 1984)

. . . Section 196.196, Fla.Stat. (1983). [ (e.s.) ] While the actual charitable use of the hospital qualifies . . . Const., and section 196.196(2), Fla.Stat. . . .

UNDERHILL, E. E. E. S. Jr. Dr. W. G. A. v. EDWARDS, W., 400 So. 2d 129 (Fla. Dist. Ct. App. 1981)

. . . Article 7, Section 3(a), Florida Constitution of 1968; Section 196.196(2), Florida Statutes. . . . authorized under Article 7, section 3(a) of the Florida Constitution (1968) and by sections 196.192 and 196.196 . . .

DADE COUNTY TAXING AUTHORITIES, v. CEDARS OF LEBANON HOSPITAL CORP. INC., 355 So. 2d 1202 (Fla. 1978)

. . . See Sections 196.012, 196.192, 196.195, 196.196, and 196.197, Florida Statutes (1973). . . . See Sections 196.012, 196.192, 196.195, 196.196, and 196.197, Florida Statutes (1973). . . .

MACCABEE INVESTMENTS, INC. a v. MARKHAM,, 311 So. 2d 718 (Fla. Dist. Ct. App. 1975)

. . . .-001 and see. 196.196, F.S. . . .

W. MIKOS, v. PLYMOUTH HARBOR, INCORPORATED, a, 316 So. 2d 627 (Fla. Dist. Ct. App. 1974)

. . . . §§ 196.012(6) and 196.196 (1971), and that the record demonstrated a conflict of fact on these points . . . Section 196.012, F.S.A. and the criteria in Section 196.196 in keeping with Section 3(a), Article VII . . .

NORTH MIAMI ELKS LODGE v. TAX ASSESSOR,, 41 Fla. Supp. 162 (Dade Cty. Cir. Ct. 1974)

. . . The criteria for determining the exempt portion of property are set forth in Florida Statute 196.196 . . . Florida Statute 196.196(3) automatically disallows any exemption for . property used for profit making . . .

DADE COUNTY, a v. TRANSPORTES AEREOS NACIONALES, S. A. TAN AIRLINES a, 298 So. 2d 570 (Fla. Dist. Ct. App. 1974)

. . . See, e. g., §§ 196.196 and 196.197, Fla.Stat. and § 196.199(2)(a), Fla.Stat. . . .

PRESBYTERIAN HOMES OF SYNOD OF FLORIDA, a v. K. WOOD, J. Ed STRAUGHN, v. PRESBYTERIAN HOMES OF SYNOD OF FLORIDA, a K., 297 So. 2d 556 (Fla. 1974)

. . . Section 196.196, F.S.A., sets forth the general criteria for determining that portion of charitable or . . . S.A. and the criteria in Section 196.196 in keeping with Section 3(a), Article VII, State Constitution . . .

AMERICAN FEDERATION OF POLICE, v. TAX ASSESSOR,, 39 Fla. Supp. 61 (Dade Cty. Cir. Ct. 1973)

. . . See §196.196(1) (a). b. . . . See §196.196 (2). c. . . . See §196.196(3). . . . See §196.196(3). . . . Further, in §196.196(3), use of property for functions, including the playing of bingo, not requiring . . .