CS/HB 287

1
A bill to be entitled
2An act relating to economic development; amending s.
3196.012, F.S.; revising the definitions of the terms "new
4business" and "expansion of an existing business";
5providing for an average wage of a new job; providing
6eligibility for target industry businesses; amending s.
7196.1995, F.S.; authorizing the board of county
8commissioners of a charter county to call and hold a
9referendum to determine whether to grant economic
10development ad valorem tax exemptions if in receipt of a
11petition or initiative signed by a percentage of electors
12as required by the county charter; revising the language
13of ballot questions relating to the authority to grant
14economic development tax exemptions; specifying additional
15information that must be included in a written application
16requesting adoption of an ordinance granting an economic
17development ad valorem tax exemption; specifying factors
18for a board of county commissioners or governing authority
19of a municipality to consider when deciding whether to
20approve or reject applications for economic development
21tax exemptions; limiting the allowable duration of an
22economic development tax exemption granted by a county or
23municipal ordinance; authorizing written tax exemption
24agreements consistent with this act upon approval of a tax
25exemption application; limiting application of the act to
26certain ad valorem tax exemptions granted pursuant to
27referenda held on or after the act's effective date;
28providing an effective date.
29
30Be It Enacted by the Legislature of the State of Florida:
31
32     Section 1.  Subsections (15) and (16) of section 196.012,
33Florida Statutes, are amended to read:
34     196.012  Definitions.-For the purpose of this chapter, the
35following terms are defined as follows, except where the context
36clearly indicates otherwise:
37     (15)  "New business" means:
38     (a)1.  A business or organization establishing 10 or more
39new jobs to employ 10 or more full-time employees in this state,
40paying an average wage for such new jobs that is above the
41average wage in the area, which principally engages in any one
42or more of the following operations: which
43     a.  Manufactures, processes, compounds, fabricates, or
44produces for sale items of tangible personal property at a fixed
45location and which comprises an industrial or manufacturing
46plant; or
47     b.  Is a target industry business as defined in s.
48288.106(2)(t);
49     2.  A business or organization establishing 25 or more new
50jobs to employ 25 or more full-time employees in this state, the
51sales factor of which, as defined by s. 220.15(5), for the
52facility with respect to which it requests an economic
53development ad valorem tax exemption is less than 0.50 for each
54year the exemption is claimed; or
55     3.  An office space in this state owned and used by a
56business or organization corporation newly domiciled in this
57state; provided such office space houses 50 or more full-time
58employees of such business or organization corporation; provided
59that such business or organization office first begins operation
60on a site clearly separate from any other commercial or
61industrial operation owned by the same business or organization.
62     (b)  Any business or organization located in an enterprise
63zone or brownfield area that first begins operation on a site
64clearly separate from any other commercial or industrial
65operation owned by the same business or organization.
66     (c)  A business or organization that is situated on
67property annexed into a municipality and that, at the time of
68the annexation, is receiving an economic development ad valorem
69tax exemption from the county under s. 196.1995.
70     (16)  "Expansion of an existing business" means:
71     (a)1.  A business or organization establishing 10 or more
72new jobs to employ 10 or more full-time employees in this state,
73paying an average wage for such new jobs that is above the
74average wage in the area, which principally engages in any of
75the operations referred to in subparagraph (15)(a)1. which
76manufactures, processes, compounds, fabricates, or produces for
77sale items of tangible personal property at a fixed location and
78which comprises an industrial or manufacturing plant; or
79     2.  A business or organization establishing 25 or more new
80jobs to employ 25 or more full-time employees in this state, the
81sales factor of which, as defined by s. 220.15(5), for the
82facility with respect to which it requests an economic
83development ad valorem tax exemption is less than 0.50 for each
84year the exemption is claimed; provided that such business
85increases operations on a site located within the same county,
86municipality, or both colocated with a commercial or industrial
87operation owned by the same business or organization under
88common control with the same business or organization, resulting
89in a net increase in employment of not less than 10 percent or
90an increase in productive output or sales of not less than 10
91percent.
92     (b)  Any business or organization located in an enterprise
93zone or brownfield area that increases operations on a site
94located within the same zone or area colocated with a commercial
95or industrial operation owned by the same business or
96organization under common control with the same business or
97organization.
98     Section 2.  Section 196.1995, Florida Statutes, is amended
99to read:
100     196.1995  Economic development ad valorem tax exemption.-
101     (1)  The board of county commissioners of any county or the
102governing authority of any municipality shall call a referendum
103within its total jurisdiction to determine whether its
104respective jurisdiction may grant economic development ad
105valorem tax exemptions under s. 3, Art. VII of the State
106Constitution if:
107     (a)  The board of county commissioners of the county or the
108governing authority of the municipality votes to hold such
109referendum; or
110     (b)  The board of county commissioners of the county or the
111governing authority of the municipality receives a petition
112signed by 10 percent of the registered electors of its
113respective jurisdiction, which petition calls for the holding of
114such referendum; or
115     (c)  The board of county commissioners of a charter county
116receives a petition or initiative signed by the required
117percentage of registered electors in accordance with the
118procedures established in the county's charter for the enactment
119of ordinances or for approval of amendments of the charter, if
120less than 10 percent, which petition or initiative calls for the
121holding of such referendum.
122     (2)  The ballot question in such referendum shall be in
123substantially the following form:
124
125Shall the board of county commissioners of this county (or the
126governing authority of this municipality, or both) be authorized
127to grant, pursuant to s. 3, Art. VII of the State Constitution,
128property tax exemptions to new businesses and expansions of
129existing businesses that are expected to create new, full-time
130jobs in the county (or municipality, or both)?
131
132     .... Yes-For authority to grant exemptions.
133     .... No-Against authority to grant exemptions.
134
135     (3)  The board of county commissioners or the governing
136authority of the municipality that calls a referendum within its
137total jurisdiction to determine whether its respective
138jurisdiction may grant economic development ad valorem tax
139exemptions may vote to limit the effect of the referendum to
140authority to grant economic development tax exemptions for new
141businesses and expansions of existing businesses located in an
142enterprise zone or a brownfield area, as defined in s.
143376.79(4). If an area nominated to be an enterprise zone
144pursuant to s. 290.0055 has not yet been designated pursuant to
145s. 290.0065, the board of county commissioners or the governing
146authority of the municipality may call such referendum prior to
147such designation; however, the authority to grant economic
148development ad valorem tax exemptions does not apply until such
149area is designated pursuant to s. 290.0065. The ballot question
150in such referendum shall be in substantially the following form
151and shall be used in lieu of the ballot question prescribed in
152subsection (2):
153
154Shall the board of county commissioners of this county (or the
155governing authority of this municipality, or both) be authorized
156to grant, pursuant to s. 3, Art. VII of the State Constitution,
157property tax exemptions for new businesses and expansions of
158existing businesses that which are located in an enterprise zone
159or a brownfield area and that are expected to create new, full-
160time jobs in the county (or municipality, or both)?
161
162     ....Yes-For authority to grant exemptions.
163     ....No-Against authority to grant exemptions.
164
165     (4)  A referendum pursuant to this section may be called
166only once in any 12-month period.
167     (5)  Upon a majority vote in favor of such authority, the
168board of county commissioners or the governing authority of the
169municipality, at its discretion, by ordinance may exempt from ad
170valorem taxation up to 100 percent of the assessed value of all
171improvements to real property made by or for the use of a new
172business and of all tangible personal property of such new
173business, or up to 100 percent of the assessed value of all
174added improvements to real property made to facilitate the
175expansion of an existing business and of the net increase in all
176tangible personal property acquired to facilitate such expansion
177of an existing business, provided that the improvements to real
178property are made or the tangible personal property is added or
179increased on or after the day the ordinance is adopted. However,
180if the authority to grant exemptions is approved in a referendum
181in which the ballot question contained in subsection (3) appears
182on the ballot, the authority of the board of county
183commissioners or the governing authority of the municipality to
184grant exemptions is limited solely to new businesses and
185expansions of existing businesses that are located in an
186enterprise zone or brownfield area. Property acquired to replace
187existing property shall not be considered to facilitate a
188business expansion. The exemption applies only to taxes levied
189by the respective unit of government granting the exemption. The
190exemption does not apply, however, to taxes levied for the
191payment of bonds or to taxes authorized by a vote of the
192electors pursuant to s. 9(b) or s. 12, Art. VII of the State
193Constitution. Any such exemption shall remain in effect for up
194to 10 years with respect to any particular facility, regardless
195of any change in the authority of the county or municipality to
196grant such exemptions. The exemption shall not be prolonged or
197extended by granting exemptions from additional taxes or by
198virtue of any reorganization or sale of the business receiving
199the exemption.
200     (6)  With respect to a new business as defined by s.
201196.012(15)(c), the municipality annexing the property on which
202the business is situated may grant an economic development ad
203valorem tax exemption under this section to that business for a
204period that will expire upon the expiration of the exemption
205granted by the county. If the county renews the exemption under
206subsection (7), the municipality may also extend its exemption.
207A municipal economic development ad valorem tax exemption
208granted under this subsection may not extend beyond the duration
209of the county exemption.
210     (7)  The authority to grant exemptions under this section
211expires 10 years after the date such authority was approved in
212an election, but such authority may be renewed for subsequent
21310-year periods if each 10-year renewal is approved in a
214referendum called and held pursuant to this section.
215     (8)  Any person, firm, or corporation which desires an
216economic development ad valorem tax exemption shall, in the year
217the exemption is desired to take effect, file a written
218application on a form prescribed by the department with the
219board of county commissioners or the governing authority of the
220municipality, or both. The application shall request the
221adoption of an ordinance granting the applicant an exemption
222pursuant to this section and shall include the following
223information:
224     (a)  The name and location of the new business or the
225expansion of an existing business;
226     (b)  A description of the improvements to real property for
227which an exemption is requested and the date of commencement of
228construction of such improvements;
229     (c)  A description of the tangible personal property for
230which an exemption is requested and the dates when such property
231was or is to be purchased;
232     (d)  Proof, to the satisfaction of the board of county
233commissioners or the governing authority of the municipality,
234that the applicant is a new business or an expansion of an
235existing business, as defined in s. 196.012(15) or (16); and
236     (e)  Other information deemed necessary or appropriate by
237the department, county, or municipality.
238     (9)  Before it takes action on the application, the board
239of county commissioners or the governing authority of the
240municipality shall deliver a copy of the application to the
241property appraiser of the county. After careful consideration,
242the property appraiser shall report the following information to
243the board of county commissioners or the governing authority of
244the municipality:
245     (a)  The total revenue available to the county or
246municipality for the current fiscal year from ad valorem tax
247sources, or an estimate of such revenue if the actual total
248revenue available cannot be determined;
249     (b)  Any revenue lost to the county or municipality for the
250current fiscal year by virtue of exemptions previously granted
251under this section, or an estimate of such revenue if the actual
252revenue lost cannot be determined;
253     (c)  An estimate of the revenue which would be lost to the
254county or municipality during the current fiscal year if the
255exemption applied for were granted had the property for which
256the exemption is requested otherwise been subject to taxation;
257and
258     (d)  A determination as to whether the property for which
259an exemption is requested is to be incorporated into a new
260business or the expansion of an existing business, as defined in
261s. 196.012(15) or (16), or into neither, which determination the
262property appraiser shall also affix to the face of the
263application. Upon the request of the property appraiser, the
264department shall provide to him or her such information as it
265may have available to assist in making such determination.
266     (10)  In considering any application for an exemption under
267this section, the board of county commissioners or the governing
268authority of the municipality must take into account the
269following:
270     (a)  The total number of net new jobs to be created by the
271applicant;
272     (b)  The average wage of the new jobs;
273     (c)  The capital investment to be made by the applicant;
274     (d)  The type of business or operation and whether it
275qualifies as a targeted industry as may be identified from time
276to time by the board of county commissioners or the governing
277authority of the municipality;
278     (e)  The environmental impact of the proposed business or
279operation;
280     (f)  The extent to which the applicant intends to source
281its supplies and materials within the applicable jurisdiction;
282and
283     (g)  Any other economic-related characteristics or criteria
284deemed necessary by the board of county commissioners or the
285governing authority of the municipality.
286     (11)(10)  An ordinance granting an exemption under this
287section shall be adopted in the same manner as any other
288ordinance of the county or municipality and shall include the
289following:
290     (a)  The name and address of the new business or expansion
291of an existing business to which the exemption is granted;
292     (b)  The total amount of revenue available to the county or
293municipality from ad valorem tax sources for the current fiscal
294year, the total amount of revenue lost to the county or
295municipality for the current fiscal year by virtue of economic
296development ad valorem tax exemptions currently in effect, and
297the estimated revenue loss to the county or municipality for the
298current fiscal year attributable to the exemption of the
299business named in the ordinance;
300     (c)  The period of time for which the exemption will remain
301in effect and the expiration date of the exemption, which may be
302any period of time up to 10 years; and
303     (d)  A finding that the business named in the ordinance
304meets the requirements of s. 196.012(15) or (16).
305     (12)  Upon approval of any application for an exemption
306under this section, the board of county commissioners or the
307governing authority of the municipality may enter into a written
308exemption agreement with the applicant covering such additional
309details and related terms and conditions as may be deemed
310necessary or appropriate by such board or governing authority,
311which agreement may not be inconsistent with the requirements of
312this section or of applicable law.
313     Section 3.  This act shall take effect July 1, 2011, and
314shall apply only to exemptions from ad valorem taxation granted
315pursuant to referenda held on or after July 1, 2011, under the
316provisions of s. 196.1995(1), Florida Statutes.


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