70-1619 LEASE OF PROPERTY -- PAYMENT IN LIEU OF TAXES.
WATERCOURSES AND PORT DISTRICTS
CHAPTER 16
PORT DISTRICTS -- FURTHER POWERS AND PROCEDURES -- HARBOR IMPROVEMENT PLANS
70-1619. Lease of property -- Payment in lieu of taxes. If a port commission shall propose to lease any facility owned by the port which would be subject to ad valorem taxes of this state and/or its political subdivisions, if owned by a nonexempt taxpayer, to any legal entity which is not entitled to such tax exemption under the laws of this state, or if any such nonexempt taxpayer shall, at its expense, construct any facility upon land owned by and leased from any such port district, in either event such port district shall first cause such facility to be valued by the assessor of the county in which the facility is situate. The assessor shall value such facility in the same manner as though it were being valued for the purpose of assessment of ad valorem taxes by the county. The assessor shall certify to the commission the amount of such valuation. The tax collector of such county shall, at the request of the commission, certify the amount of ad valorem taxes which would have been paid by a nonexempt taxpayer upon such valuation in the next preceding tax year, which sum is herein referred to as the "lieu tax."
The commission shall add to any payments to be made by any lessee under such lease, the amount of the lieu tax, to be paid annually to the port in addition to all other sums due under such lease. The amount of the lieu tax payment shall remain the same during the original term of such lease.
The proceeds of the lieu tax payment shall be remitted by the commission, forthwith upon their receipt, to the county tax collector, who shall disburse such proceeds to all taxing bodies and/or agencies receiving general ad valorem tax proceeds in any such year, on the same basis as other ad valorem taxes are disbursed.
Upon any extension of the lease, whether by reason of an option contained in such original lease or otherwise, and upon any re-leasing of such land or facility, the facility shall be again valued and certified by such assessor and the new valuation and lieu tax payment determined by the commission in the same manner, and any such extension or re-leasing shall be subject to the annual payment by the lessee of the new lieu tax figure.
All such leases shall be so written that failure of the lessee to pay all such lieu tax moneys prior to the 20th day of December in each year of such lease shall constitute a breach thereof.
The port district shall not be liable for the payment of any such sums if not made by its lessees.
The provisions of this section shall not apply to the letting, leasing or rental by port districts of any structures upon port-owned property, for the purpose of use as a dwelling unit or dwelling units, or for casual or interim use not related to the port district plan of harbor improvement and port development and/or its plan for industrial development, nor to any lease for a term of one (1) year or less.