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 Statute 196.196.
• Form DR-504

Exemption for property used by nonprofit homes for the aged (Florida Statute 196.1975) - 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 Florida Statute 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 (Florida Statute 196.1977) – Any apartment in a continuing care facility certified under Florida Statutes Chapter 651 that does not otherwise qualify for exemption under Florida Statute 196.1975 or similar exemption or if the resident is not eligible for homestead exemption under Florida Statute 196.031 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

An exemption for affordable housing (Florida Statute 196.1978) owned by a charitable, not for profit corporation that provides any portion for affordable housing to eligible persons as defined by Florida Statute 159.603 or natural persons or families classified as extremely low income, very low income, low income, or moderate income under Florida Statute 420.0004 are exempt from ad valorem taxation to the extent authorized under Florida Statute 196.196 and must comply with the criteria provided under Florida Statute 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

New exemptions effective beginning with the 2024 tax roll:

1. An exemption for affordable housing owned by for-profit entities and applicable to rent-restricted units within newly constructed or substantially rehabilitated developments with at least 70 units providing affordable housing to households earning 120 percent of area median income or less. (Florida Statute 196.1978(3))

• The project, or portions thereof, must provide affordable housing to eligible persons within a “newly constructed” multifamily project with more than 70 units dedicated to providing affordable housing.
  • Newly constructed” means an improvement to real property that was substantially completed within five (5) years before the date of an applicant’s first submission of a request for certification or application for an exemption, whichever is earlier.
  • Substantially completed” has the same meaning as in s. 192.041(1).

• Units must be rented for an amount that does not exceed the amount specified by the “Fair Market Value Rents” published by the United States Department of Housing and Urban Development most recently adopted by the FHFC or 90 percent of the fair market value rents as determined by a rental market study as defined in subsection (3)(m).

• Owner must timely request a certification notice from FHFC and provide the following information:

  • Most recent completed rental market study
  • List of units for which exemption is sought
  • Rent received for each unit
  • Sworn statement that the owner is restricting the property for a period of not less than 3 years to housing eligible persons

• If the property qualifies, FHFC provides certification notice to the owner and the property appraiser.
• If the property does not qualify, FHFC notifies property owner and provides reasons for such determination.
• FHFC certification requirements and details can be viewed from their Multifamily Middle Market Certification website page. 

2. An exemption to for-profit entities owning property dedicated to affordable housing with at least 50 units for households earning 60 percent of area median income or less. Requires County or City Ordinance authorizing exemption before it becomes effective. Currently no taxing authorities in Martin County have authorized this exemption. (Florida Statute 196.1979)

• Provides that multifamily projects consisting of 50 or more units, of which at least 20 percent are used to provide affordable housing and meet other requirements, may receive an exemption.
  • Up to 75 percent of the assessed value of each unit used to provide affordable housing if fewer than 100 percent of the project’s residential units are used to provide affordable housing meeting the requirements of this section.
  • Up to 100 percent of the assessed value if 100 percent of the project’s residential units are used to provide affordable housing meeting the requirements of this section.

• The exemption only applies to the taxes levied by the government granting the exemption.
  • The local entity must “verify and certify” that the property qualifies for the exemption and notify the owner and the property appraiser.
  • If the property does not qualify, the local entity must notify the owner and include the reasons for the denial.

3. An exemption of land owned by non-profit entity subject to 99-year lease and providing housing to households earning 120 percent of area median income or less (Florida Statute 196.1978(3)):

• Qualifying persons or families are extremely-low-income, very-low-income, low-income, or moderate-income as specified in section 420.0004, Fla. Stat. Generally, these are families earning up to 120 percent of the median annual adjusted gross income for households in the state, metropolitan statistical area (MSA), or county, whichever is greater.
• Land is predominantly used to provide qualifying housing if the square footage of the improvements on the land used to provide affordable housing is greater than 50 percent of the square footage of all improvements on the land.
• Provides exemption to land only.

Community centers exemption (Florida Statute 196.1986) — 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 (Florida Statute 196.1987) — An exemption from ad valorem taxation of property owned by an organization that is federally exempt under the Internal Revenue Code section 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 (Florida Statute 196.1993) — 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 (Florida Statute 196.2001) - Any not-for-profit sewer, wastewater, and water company that is income exempt, under Internal Revenue Code section 115(a) on January 1 or holds a current exemption under Internal Revenue Service section 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. (Florida Statute 196.197) – 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 the Internal Revenue Service section 501(c)(3).

Documents Needed:

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

Labor organization property exemption (Florida Statute 196.1985) - 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 Florida Statute 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 Florida Statute 1002.33(7) 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 (Florida Statute 196.198) - 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