TALLAHASSEE — County property appraisers would be prohibited from seeking property taxes on housing improvements at U.S. military bases in Florida under a proposal that easily marched through its first House appearance Thursday.
The House Finance and Tax Committee unanimously backed a proposal (HB 361) by Rep. Jay Trumbull, R-Panama City, aimed at recognizing that housing under a program known as the Military Housing Privatization Initiative, on land owned by the federal government, is exempt from ad valorem taxation.
The Military Housing Privatization Initiative involves the military entering agreements with private developers to own and operate military-family housing. In Bay County, initiative developments are located at Tyndall Air Force Base and Naval Support Activity Panama City.
Trumbull’s bill is in reaction to a 2012 attempt by the Monroe County property appraiser to subject such housing at Naval Air Station Key West to local property taxes. Similar efforts are underway in Escambia and Santa Rosa counties, Trumbull said.
The Monroe County property appraiser contended the non-governmental title holder on the housing improvements at the Navy facility shouldn’t be exempt from the taxes. However, a circuit judge blocked the attempt, declaring that the U.S. Navy is the equitable owner of the property, according to a legislative analysis. The case has been appealed to the 3rd District Court of Appeal.
“At a time when Florida is spending a significant amount of money to maintain a military presence in Florida, these actions send a terrible message,” Trumbull told the committee.
In addition to the Bay County sites, initiative developments can be found at MacDill Air Force Base, Patrick Air Force Base, Naval Air Station Jacksonville, Naval Air Station Key West, Naval Air Station Pensacola, Naval Air Station Whiting Field and Naval Station Mayport.