CS/HB 283

1
A bill to be entitled
2An act relating to the discretionary surtax on documents;
3amending s. 3, ch. 83-220, Laws of Florida, as amended;
4extending a future repeal date of provisions authorizing
5counties to levy a discretionary surtax on documents;
6amending s. 125.0167, F.S.; limiting the percentage of
7surtax revenues that may be used for administrative costs;
8specifying a minimum amount of surtax revenues to be used
9for housing for certain low-income and moderate-income
10families; requiring an affirmative vote of a local
11government governing body to rehabilitate certain
12governmentally owned housing; authorizing certain counties
13to create by ordinance a housing choice assistance voucher
14program for the purpose of down payment assistance;
15providing definitions; providing eligibility requirements
16for such vouchers; authorizing purchasing employers to
17file for allocations for such vouchers; limiting
18allocations; requiring distribution of allocations to
19employees in the form of such vouchers; prohibiting use of
20allocations for such vouchers if not awarded within a
21certain period after certain documentary stamps taxes are
22collected; requiring the Office of Program Policy Analysis
23and Government Accountability to conduct a continuing
24review of the discretionary surtax program operated by
25counties; requiring reports to the Legislature; amending
26s. 201.02, F.S.; revising criteria determining liability
27for payment of the tax; providing that the consideration
28for certain transfers of interests in real property does
29not include any change in value of certain ownership
30interests in such property; specifying a holding period
31limitation on such exclusion for certain transfers;
32providing criteria for the treatment and taxation of such
33consideration; providing a limitation on the cumulative
34amount of such consideration; providing for proration of
35such consideration and a basis for such proration;
36limiting the taxability of certain portions of prorated
37consideration; providing a requirement for payment of the
38tax on such transferred ownership interests; amending s.
39201.031, F.S.; expanding requirements for counties levying
40the discretionary surtax to include housing plan,
41affordable housing element, and annual reporting
42requirements; authorizing the Department of Revenue to
43adopt rules; providing for application; providing an
44effective date.
45
46Be It Enacted by the Legislature of the State of Florida:
47
48     Section 1.  Section 3 of chapter 83-220, Laws of Florida,
49as amended by section 1 of chapter 84-270, Laws of Florida, and
50section 1 of chapter 89-252, Laws of Florida, is amended to
51read:
52     Section 3.  Sections 1 and 2 of chapter 83-220, Laws of
53Florida, as amended by this act, are repealed effective October
541, 2031 2011.
55     Section 2.  Section 125.0167, Florida Statutes, is amended
56to read:
57     125.0167  Discretionary surtax on documents; adoption;
58application of revenue.--
59     (1)  Pursuant to the provisions of s. 201.031, the
60governing authority in each county, as defined by s. 125.011(1),
61is authorized to levy a discretionary surtax on documents for
62the purpose of establishing and financing a Housing Assistance
63Loan Trust Fund to assist in the financing of construction,
64rehabilitation, or purchase of housing for low-income and
65moderate-income families. No less than 50 percent of the funds
66used in each county to provide such housing assistance shall be
67for the benefit of low-income families. For the purpose of this
68section, "low-income family" means a family whose income does
69not exceed 80 percent of the median income for the area, and
70"moderate-income family" means a family whose income is in
71excess of 80 percent but less than 140 percent of the median
72income for the area. For purposes of this section, the term
73"housing" is not limited to single-family, detached dwellings.
74The rate of the surtax shall not exceed the rate of 45 cents for
75each $100 or fractional part thereof of the consideration
76therefor. Such surtax shall apply only to those documents
77taxable under s. 201.02, except that there shall be no surtax on
78any document pursuant to which the interest granted, assigned,
79transferred, or conveyed involves only a single-family
80residence. Such single-family residence may be a condominium
81unit, a unit held through stock ownership or membership
82representing a proprietary interest in a corporation owning a
83fee or a leasehold initially in excess of 98 years, or a
84detached dwelling.
85     (2)  The levy of the discretionary surtax and the creation
86of a Housing Assistance Loan Trust Fund shall be by ordinance
87which shall set forth the policies and procedures of the
88assistance program. The ordinance shall be proposed at a regular
89meeting of the governing authority at least 2 weeks prior to
90formal adoption. Formal adoption shall not be effective unless
91approved on final vote by a majority of the total membership of
92the governing authority. The ordinance shall not take effect
93until 90 days after formal adoption.
94     (3)  The county shall deposit revenues from the
95discretionary surtax in the Housing Assistance Loan Trust Fund
96of the county, except that a portion of such revenues may be
97deposited into the Home Investment Trust Fund of the county as
98defined by and created pursuant to the requirements of federal
99law. The county shall use the revenues only to help finance the
100construction, rehabilitation, or purchase of housing for low-
101income families and moderate-income families, to pay necessary
102costs of collection and enforcement of the surtax, and to fund
103any local matching contributions required pursuant to federal
104law. For purposes of this section, authorized uses of the
105revenues include, but are not limited to, providing funds for
106first and second mortgages and acquiring property for the
107purpose of forming housing cooperatives. Special consideration
108shall be given toward using the revenues in the neighborhood
109economic development programs of community development
110corporations. No more than 50 percent of the revenues collected
111each year pursuant to this section may be used to help finance
112new construction as provided herein. The proceeds of the surtax
113shall not be used for rent subsidies or grants.
114     (4)  No more than 10 percent of surtax revenues collected
115under this section by the Department of Revenue and remitted to
116the county in any fiscal year may be used for administrative
117costs.
118     (5)(a)  Notwithstanding the provisions of subsection (3),
119of the discretionary surtax revenues collected by the Department
120of Revenue remaining after any deduction for administrative
121costs as provided in subsection (4), no less than 35 percent
122shall be used to provide homeownership assistance for low-income
123and moderate-income families, and no less than 35 percent shall
124be used for construction, rehabilitation, and purchase of rental
125housing units. The remaining amount may be allocated to provide
126for homeownership assistance or rental housing units, at the
127discretion of the county. Any funds allocated for homeownership
128assistance or rental housing units that are not committed at the
129end of the fiscal year shall be reallocated in subsequent years
130consistent with the provisions of this subsection such that no
131less than 35 percent shall be reallocated to provide
132homeownership assistance for low-income and moderate-income
133families and no less than 35 percent shall be reallocated for
134construction, rehabilitation, and purchase of rental housing
135units. The remaining amount of uncommitted funds may be
136reallocated at the discretion of the county within any of the
137categories established in this subsection.
138     (b)  For purposes of this subsection, the term
139"homeownership assistance" means assisting low-income and
140moderate-income families in purchasing a home as their primary
141residence, including, but not limited to, reducing the cost of
142the home with below-market construction financing, the amount of
143down payment and closing costs paid by the borrower, or the
144mortgage payment to an affordable amount for the purchaser or
145using any other financial assistance measure set forth in s.
146420.5088.
147     (6)  Rehabilitation of housing owned by a recipient
148government may be authorized only after a determination approved
149by a majority of the governing body that no other sources of
150funds are available.
151     (7)(a)  The governing body of each county as defined in s.
152125.011(1) may, by county ordinance and pursuant to procedures
153and requirements provided by such ordinance, create a housing
154choice assistance voucher program.
155     (b)  For purposes of this subsection, the term:
156     1.  "Housing choice assistance voucher" means the document
157used to access assistance paid by the county from the
158discretionary surtax balance in the Housing Assistance Trust
159Fund to a prospective purchaser of a single-family residence
160which must be the purchaser's homestead.
161     2.  "Purchasing employer" means a business or business
162entity that has acquired real property within the county and
163paid the surtax due as a result of the acquisition of that
164property pursuant to this section.
165     (c)  Housing choice assistance vouchers shall be used for
166down payment assistance for the purchase of a single-family
167residence by low-income or moderate-income persons within the
168county and within a 5-mile radius of the purchasing employer who
169are:
170     1.  Actively employed by the purchasing employer or by a
171business entity directly affiliated with the purchasing
172employer.
173     2.  Prequalified for a mortgage loan by a certified lending
174institution.
175     (d)  Upon payment of the discretionary surtax pursuant to
176this section, the purchasing employer may file for an allocation
177for housing choice assistance vouchers from the county in an
178amount not to exceed 50 percent of the amount of the
179discretionary surtax paid. The purchasing employer shall
180distribute the allocation to employees in the form of housing
181choice assistance vouchers pursuant to rules and procedures
182established for the program.
183     (e)  Any housing choice assistance voucher allocation not
184distributed to employees and redeemed by an employee within 1
185year after the date the discretionary surtax is paid may not be
186used for housing choice assistance vouchers under this
187subsection.
188     (f)  Any housing assistance paid pursuant to the housing
189choice assistance voucher program shall be included in the
190calculation determining the percentage of discretionary surtax
191funds used for homeownership purposes during the year in which
192the surtax funds for such purposes are expended.
193     (8)  By June 30, 2012, and every 5 years thereafter, the
194Office of Program Policy Analysis and Government Accountability
195shall review the discretionary surtax program operated by
196counties under this section and shall provide a report to the
197President of the Senate and the Speaker of the House of
198Representatives.
199     Section 3.  Subsection (1) of section 201.02, Florida
200Statutes, is amended, and subsections (11) and (12) are added to
201that section, to read:
202     201.02  Tax on deeds and other instruments relating to real
203property or interests in real property.--
204     (1)  On deeds, instruments, documents, or writings whereby
205any lands, tenements, or other real property, or any interest
206therein, shall be granted, assigned, transferred, or otherwise
207conveyed to, or vested in, the purchaser or any other person by
208his or her direction, on each $100 of the consideration therefor
209the tax shall be 70 cents. When the full amount of the
210consideration for the execution, assignment, transfer, or
211conveyance is not shown in the face of such deed, instrument,
212document, or writing, the tax shall be at the rate of 70 cents
213for each $100 or fractional part thereof of the consideration
214therefor. For purposes of this section, consideration includes,
215but is not limited to, the money paid or agreed to be paid; the
216discharge of an obligation; and the amount of any mortgage,
217purchase money mortgage lien, or other encumbrance, whether or
218not the underlying indebtedness is assumed; and any
219consideration given in exchange for a direct or indirect
220ownership interest in a grantee entity within the holding period
221as set forth in subsection (12). If the consideration paid or
222given in exchange for real property or any interest therein
223includes property other than money, it is presumed that the
224consideration is equal to the fair market value of the real
225property or interest therein.
226     (11)  If a deed, instrument, document, or writing grants,
227assigns, transfers, or conveys any interest in real property
228from a grantor that is a corporation, partnership, limited
229liability company, or other business entity to one or more
230grantees that wholly or partially own such grantor entity,
231whether directly or indirectly through another intermediate
232entity or entities, to the extent such interest in real property
233received by such a grantee is in the same proportion as the
234grantee's direct or indirect ownership interest in the grantor
235entity, the consideration for such transfer for purposes of this
236section shall not be deemed to include any change in the value
237of the grantee's ownership interest in the grantor entity or in
238any intermediate entity resulting from such transfer.
239     (12)(a)  If a deed, instrument, document, or writing
240grants, assigns, transfers, or conveys any interest in real
241property from one or more grantors to a grantee that is a
242corporation, partnership, limited liability company, or other
243business entity that is wholly or partially owned by the grantor
244or grantors, whether directly or indirectly through another
245intermediate entity or entities, to the extent the interest in
246real property transferred by such a grantor is in the same
247proportion as the grantor's ownership interest in the grantee
248entity, the consideration for such transfer for purposes of this
249section shall not be deemed to include any change in the value
250of the grantor's ownership interest in the grantee entity or in
251any intermediate entity resulting from such transfer to the
252extent the grantor continues to own directly or indirectly the
253same percentage of the ownership interests in the grantee entity
254for a holding period ending on the earlier of:
255     1.  The date that is 1 year after the transfer of such
256interest in real property to the grantee entity; or
257     2.  The date that the grantee entity no longer owns any
258interest in such real property, whether directly or indirectly
259through another intermediate entity or entities.
260     (b)  Upon the transfer for consideration of all or any
261portion of the direct or indirect ownership interest of such a
262grantor in the grantee entity to a purchaser other than the
263grantor within the holding period set forth in paragraph (a),
264whether by sale, assignment, merger, exchange, consolidation,
265conversion, or otherwise, the consideration given for the
266transferred ownership interest shall be deemed to have been
267exchanged for the previous transfer of the interest in real
268property to the grantee entity and the tax imposed by subsection
269(1) shall apply to the previous transfer of the interest in real
270property to the grantee entity based on such consideration. The
271direct or indirect ownership interests in a grantee entity
272described in this subsection shall not include any shares or
273similar equity interests dealt in or traded on securities
274exchanges or in securities markets.
275     (c)  The cumulative amount of all such consideration under
276this subsection shall not in any event exceed the fair market
277value of the transferred real property interest at the time of
278the transfer of the ownership interest in the grantee entity,
279less any consideration on which tax was paid.
280     (d)  Upon the transfer of such direct or indirect ownership
281interest in a grantee entity that owns assets other than such
282real property interest, the consideration described in this
283subsection shall be prorated based on the fair market value of
284the real property interest and the fair market value of the
285other assets at the time of such transfer of the ownership
286interest in the grantee entity, and only the portion of such
287consideration prorated to the real property interest shall be
288subject to the tax under subsection (1).
289     (e)  The tax payable as set forth in this subsection shall
290be paid prior to the 20th day of the month following the
291transfer of the ownership interest.
292     Section 4.  Section 201.031, Florida Statutes, is amended
293to read:
294     201.031  Discretionary surtax; administration and
295collection; Housing Assistance Loan Trust Fund; reporting
296requirements.--
297     (1)  Each county, as defined by s. 125.011(1), may levy,
298subject to the provisions of s. 125.0167, a discretionary surtax
299on documents taxable under the provisions of s. 201.02, except
300that there shall be no surtax on any document pursuant to which
301the interest granted, assigned, transferred, or conveyed
302involves only a single-family residence. The Such single-family
303residence may be a condominium unit, a unit held through stock
304ownership or membership representing a proprietary interest in a
305corporation owning a fee or a leasehold initially in excess of
30698 years, or a detached dwelling.
307     (2)  All provisions of chapter 201, except s. 201.15, shall
308apply to the surtax. The Department of Revenue shall pay to the
309governing authority of the county which levies the surtax all
310taxes, penalties, and interest collected under this section less
311any costs of administration.
312     (3)  Each county that which levies the surtax shall:
313     (a)  Include in the financial report required under s.
314218.32 information showing the revenues and the expenses of the
315trust fund for the fiscal year.
316     (b)  Adopt a housing plan every 3 years that includes
317provisions substantially similar to the plans required in s.
318420.9075(1).
319     (c)  Have adopted an affordable housing element of its
320comprehensive land use plan that complies with s.
321163.3177(6)(f).
322     (d)  Require by resolution that the staff or entity that
323has administrative authority for implementing the housing plan
324prepare and submit to the county's governing body an annual
325report substantially similar to the annual report required in s.
326420.9075(10).
327     Section 5.  The Department of Revenue may adopt any rules
328necessary to implement and administer this act.
329     Section 6.  This act shall take effect July 1, 2009, and
330the amendment to s. 201.02, Florida Statutes, made by this act
331shall apply to transfers of property for which the first
332transfer to an artificial entity occurs after such date.


CODING: Words stricken are deletions; words underlined are additions.