Friday, November 7, 2008

A new way of assessing the taxable value of working waterfront property will go into effect January 2010, but some local landowners already have been receiving the benefit.

Monroe County officials will seek guidance from the state Legislature or Department of Revenue before implementing the new tax rules, said Karl Borglum, assistant property appraiser.

"There will be another legislative session before then and either the Legislature or us or both will give guidance well in advance of it going into effect," Florida Department of Revenue spokeswoman Renne Watters said. Florida voters on Tuesday approved a constitutional amendment that requires county property appraisers to calculate taxes on commercial marinas, fish houses and related businesses based on how the land is being used.

Taxes currently are based on the potential use that would generate the most taxes, referred to as the "highest and best use," which typically is upscale condominiums. That gave property owners incentive to sell out to developers. The measure, which overwhelmingly passed with 70 percent of the vote, is aimed at preserving Florida's heritage.

In Monroe County, working waterfronts make up three-fourths of 1 percent of all taxable property in the county, or about $200 million of the county's $26.5 billion in taxable property, Borglum said.

Borglum could not say exactly how many properties are eligible for the tax relief. About 80 to 90 properties are coded as "marinas," but not all of them are working waterfronts.

Monroe County already assesses three properties based on their current use: Sunset Marina on Stock Island, Marathon Boat Yard and Rock Harbor Marina in Key Largo. The property owners gave appraisers access to their revenue and expense documents to set the tax rate, Borglum said.

Marathon Boat Yard owner Bruce Popham, for example, won his appeal of an appraisal that would have increased his property taxes from $40,000 to $80,000 a year, he said. After Popham submitted two years' worth of revenue and expenses, the office increased his taxes by only $10,000 a year, he said.

Popham's 10-acre boatyard has 1,000 feet of dockage, but no boat slips, he said. Only three of his employees live on their boats there; the rest of the marina is a working waterfront. After Hurricane Wilma, Popham put $800,000 in capital improvements into the business.

"I truly have a working facility," said Popham, who supported the referendum.

Stock Island Lobster Co. fish house owner Peter Bacle is among those who hope the new rule will cut their property taxes. Taxes on his 1,200-square-foot waterfront business have increased in the past seven years, from about $20,000 annually to $61,000 today, he said.

Bacle is one of only two fish houses left on Stock Island. There were seven 10 years ago.

Amendment supporters claim the measure could save commercial fishing marina owners statewide about $70 million and benefit Florida's $18 billion a year marine industry, which employs 220,000 people.

There are 360 federally permitted fishing boats in the Florida Keys, making it home to the largest commercial fleet from Texas to North Carolina, Florida Keys Commercial Fishermen's Association Director Scott Zimmerman said. More than 80 percent of the spiny lobster harvested in Florida is caught in the Keys, making commercial fishing the county's second-largest industry, behind tourism.

tohara@keysnews.com