Florida Senate - 2012 SB 1022
By Senator Garcia
40-00675-12 20121022__
1 A bill to be entitled
2 An act relating to sales tax increment districts;
3 amending s. 212.20, F.S.; providing for the transfer
4 of certain sales tax increment revenues from the
5 General Revenue Fund to the Revenue Sharing Trust Fund
6 for Municipalities; amending s. 218.23, F.S.;
7 providing for a distribution from the Revenue Sharing
8 Trust Fund for Municipalities relating to an increase
9 in sales tax collections over the preceding year to
10 the governing body of an area that receives tax
11 increment revenues pursuant to a designation as a
12 sales tax increment district; amending s. 290.004,
13 F.S.; providing definitions; amending s. 290.0056,
14 F.S.; specifying additional powers of an enterprise
15 zone development agency for areas designated as a
16 sales tax increment district; amending s. 290.007,
17 F.S.; specifying sales tax increment financing as a
18 additional economic development incentive that is
19 available within enterprise zones; creating ss.
20 290.01351, 290.0136, 290.0137, 290.0138, 290.0139, and
21 290.01391, F.S.; creating the “Municipal
22 Revitalization Act”; providing legislative intent and
23 purposes; authorizing the creation of sales tax
24 increment districts within enterprise zones;
25 specifying minimum requirements for sales tax
26 increment districts; providing for a review of
27 resolutions to create a sales tax increment district
28 by the Department of Economic Opportunity; providing
29 that the governing body for an enterprise zone where a
30 sales tax increment district is located is eligible
31 for specified percentage distributions of increased
32 state sales tax collections under certain
33 circumstances; requiring the Department of Revenue to
34 determine the amount of increased sales tax
35 collections to be distributed to each eligible
36 governing body and to transfer the aggregate amount
37 due to all such governing bodies to the Revenue
38 Sharing Trust Fund for Municipalities for
39 distribution; requiring a governing body to deposit
40 tax increment revenues in a separate account;
41 specifying requirements for agreements between a
42 retail development project developer and a governing
43 body for the use of tax increment revenues;
44 authorizing the issuance of bonds secured by tax
45 increment revenues to finance a retail development
46 project; specifying that bonds issued for a retail
47 development project do not constitute debt for certain
48 purposes; specifying requirements for the issuance of
49 bonds; creating a conclusive presumption that the
50 bonds are used for the purposes of a retail
51 development project; providing an effective date.
52
53 Be It Enacted by the Legislature of the State of Florida:
54
55 Section 1. Paragraph (d) of subsection (6) of section
56 212.20, Florida Statutes, is amended to read:
57 212.20 Funds collected, disposition; additional powers of
58 department; operational expense; refund of taxes adjudicated
59 unconstitutionally collected.—
60 (6) Distribution of all proceeds under this chapter and s.
61 202.18(1)(b) and (2)(b) shall be as follows:
62 (d) The proceeds of all other taxes and fees imposed
63 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
64 and (2)(b) shall be distributed as follows:
65 1. In any fiscal year, the greater of $500 million, minus
66 an amount equal to 4.6 percent of the proceeds of the taxes
67 collected pursuant to chapter 201, or 5.2 percent of all other
68 taxes and fees imposed pursuant to this chapter or remitted
69 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
70 monthly installments into the General Revenue Fund.
71 2. After the distribution under subparagraph 1., 8.814
72 percent of the amount remitted by a sales tax dealer located
73 within a participating county pursuant to s. 218.61 shall be
74 transferred into the Local Government Half-cent Sales Tax
75 Clearing Trust Fund. Beginning July 1, 2003, the amount to be
76 transferred shall be reduced by 0.1 percent, and the department
77 shall distribute this amount to the Public Employees Relations
78 Commission Trust Fund less $5,000 each month, which shall be
79 added to the amount calculated in subparagraph 3. and
80 distributed accordingly.
81 3. After the distribution under subparagraphs 1. and 2.,
82 0.095 percent shall be transferred to the Local Government Half
83 cent Sales Tax Clearing Trust Fund and distributed pursuant to
84 s. 218.65.
85 4. After the distributions under subparagraphs 1., 2., and
86 3., 2.0440 percent of the available proceeds shall be
87 transferred monthly to the Revenue Sharing Trust Fund for
88 Counties pursuant to s. 218.215.
89 5. After the distributions under subparagraphs 1., 2., and
90 3., 1.3409 percent of the available proceeds, plus the amount
91 required under s. 290.0138(2), shall be transferred monthly to
92 the Revenue Sharing Trust Fund for Municipalities pursuant to s.
93 218.215. If the total revenue to be distributed pursuant to this
94 subparagraph is at least as great as the amount due from the
95 Revenue Sharing Trust Fund for Municipalities and the former
96 Municipal Financial Assistance Trust Fund in state fiscal year
97 1999-2000, no municipality shall receive less than the amount
98 due from the Revenue Sharing Trust Fund for Municipalities and
99 the former Municipal Financial Assistance Trust Fund in state
100 fiscal year 1999-2000. If the total proceeds to be distributed
101 are less than the amount received in combination from the
102 Revenue Sharing Trust Fund for Municipalities and the former
103 Municipal Financial Assistance Trust Fund in state fiscal year
104 1999-2000, each municipality shall receive an amount
105 proportionate to the amount it was due in state fiscal year
106 1999-2000.
107 6. Of the remaining proceeds:
108 a. In each fiscal year, the sum of $29,915,500 shall be
109 divided into as many equal parts as there are counties in the
110 state, and one part shall be distributed to each county. The
111 distribution among the several counties must begin each fiscal
112 year on or before January 5th and continue monthly for a total
113 of 4 months. If a local or special law required that any moneys
114 accruing to a county in fiscal year 1999-2000 under the then
115 existing provisions of s. 550.135 be paid directly to the
116 district school board, special district, or a municipal
117 government, such payment must continue until the local or
118 special law is amended or repealed. The state covenants with
119 holders of bonds or other instruments of indebtedness issued by
120 local governments, special districts, or district school boards
121 before July 1, 2000, that it is not the intent of this
122 subparagraph to adversely affect the rights of those holders or
123 relieve local governments, special districts, or district school
124 boards of the duty to meet their obligations as a result of
125 previous pledges or assignments or trusts entered into which
126 obligated funds received from the distribution to county
127 governments under then-existing s. 550.135. This distribution
128 specifically is in lieu of funds distributed under s. 550.135
129 before July 1, 2000.
130 b. The department shall distribute $166,667 monthly
131 pursuant to s. 288.1162 to each applicant certified as a
132 facility for a new or retained professional sports franchise
133 pursuant to s. 288.1162. Up to $41,667 shall be distributed
134 monthly by the department to each certified applicant as defined
135 in s. 288.11621 for a facility for a spring training franchise.
136 However, not more than $416,670 may be distributed monthly in
137 the aggregate to all certified applicants for facilities for
138 spring training franchises. Distributions begin 60 days after
139 such certification and continue for not more than 30 years,
140 except as otherwise provided in s. 288.11621. A certified
141 applicant identified in this sub-subparagraph may not receive
142 more in distributions than expended by the applicant for the
143 public purposes provided for in s. 288.1162(5) or s.
144 288.11621(3).
145 c. Beginning 30 days after notice by the Department of
146 Economic Opportunity to the Department of Revenue that an
147 applicant has been certified as the professional golf hall of
148 fame pursuant to s. 288.1168 and is open to the public, $166,667
149 shall be distributed monthly, for up to 300 months, to the
150 applicant.
151 d. Beginning 30 days after notice by the Department of
152 Economic Opportunity to the Department of Revenue that the
153 applicant has been certified as the International Game Fish
154 Association World Center facility pursuant to s. 288.1169, and
155 the facility is open to the public, $83,333 shall be distributed
156 monthly, for up to 168 months, to the applicant. This
157 distribution is subject to reduction pursuant to s. 288.1169. A
158 lump sum payment of $999,996 shall be made, after certification
159 and before July 1, 2000.
160 7. All other proceeds must remain in the General Revenue
161 Fund.
162 Section 2. Subsection (3) of section 218.23, Florida
163 Statutes, is amended to read:
164 218.23 Revenue sharing with units of local government.—
165 (3) The distribution to a unit of local government under
166 this part is determined by the following formula:
167 (a) First, the entitlement of an eligible unit of local
168 government shall be computed on the basis of the apportionment
169 factor provided in s. 218.245, which shall be applied for all
170 eligible units of local government to all receipts available for
171 distribution in the respective revenue sharing trust fund.
172 (b) Second, revenue shared with eligible units of local
173 government for any fiscal year shall be adjusted so that no
174 eligible unit of local government receives less funds than its
175 guaranteed entitlement.
176 (c) Third, revenues shared with counties for any fiscal
177 year shall be adjusted so that no county receives less funds
178 than its guaranteed entitlement plus the second guaranteed
179 entitlement for counties.
180 (d) Fourth, revenue shared with units of local government
181 for any fiscal year shall be adjusted so that no unit of local
182 government receives less funds than its minimum entitlement.
183 (e) Fifth, after the adjustments provided in paragraphs
184 (b), (c), and (d), the funds remaining in the respective trust
185 fund for municipalities shall be distributed to the appropriate
186 governing bodies eligible for a distribution under ss. 290.0137
187 and 290.0138.
188 (f)(e) Sixth Fifth, after the adjustments provided in
189 paragraphs (b), (c), and (d), and (e), and after deducting the
190 amount committed to all the units of local government, the funds
191 remaining in the respective trust funds shall be distributed to
192 those eligible units of local government which qualify to
193 receive additional moneys beyond the guaranteed entitlement, on
194 the basis of the additional money of each qualified unit of
195 local government in proportion to the total additional money of
196 all qualified units of local government.
197 Section 3. Section 290.004, Florida Statutes, is amended to
198 read:
199 290.004 Definitions relating to Florida Enterprise Zone
200 Act.—As used in ss. 290.001-290.016, the term:
201 (1) “Bond” means a bond, note, or other instrument that is
202 issued by the governing body pursuant to s. 290.01391 and
203 secured by tax increment revenues or other security authorized
204 in this chapter.
205 (2)(1) “Community investment corporation” means a black
206 business investment corporation, a certified development
207 corporation, a small business investment corporation, or other
208 similar entity incorporated under Florida law that has limited
209 its investment policy to making investments solely in minority
210 business enterprises.
211 (3)(2) “Department” means the Department of Economic
212 Opportunity.
213 (4)(3) “Governing body” means the council or other
214 legislative body charged with governing the county or
215 municipality.
216 (5)(4) “Minority business enterprise” has the same meaning
217 as provided in s. 288.703.
218 (6) “Retail development costs” mean any costs associated
219 with, arising out of, or incurred in connection with:
220 (a) A retail development project;
221 (b) The issuance of, or debt service or any other payments
222 in respect of, the bonds, including costs of issuance,
223 capitalized interest, credit enhancement fees, reserve funds, or
224 working capital; or
225 (c) The relocation of a business in which the purpose of
226 relocation is to make space for a retail development project.
227 (7) “Retail development project” means the establishment of
228 a business pursuant to a development agreement between the
229 governing body and the retail development project developer
230 within a sales tax increment district within an enterprise zone.
231 A business established by a retail development project must be
232 engaged in direct onsite retail sales to consumers or providing
233 unique entertainment attractions, including the following:
234 acquisition, purchasing, construction, reconstruction,
235 improvement, renovation, rehabilitation, restoration,
236 remodeling, repair, remediation, expansion, extension, or the
237 furnishing, equipping, and opening of the business. A retail
238 development project may include restaurants, grocery and
239 specialty food stores, art galleries, and businesses engaged in
240 sales of home furnishings, apparel, and general merchandise
241 goods to specialized customers, or providing a unique
242 entertainment attraction. A retail development project may not
243 include:
244 (a) Liquor stores;
245 (b) Adult entertainment establishments or nightclubs;
246 (c) Adult book clubs; and
247 (d) The relocation of a business to the retail development
248 project from another location within the enterprise zone, unless
249 the relocation involves a significant expansion of the size of
250 the business.
251 (8) “Retail development project developer” means a person
252 sponsoring a retail development project.
253 (9)(5) “Rural enterprise zone” means an enterprise zone
254 that is nominated by a county having a population of 75,000 or
255 fewer, or a county having a population of 100,000 or fewer which
256 is contiguous to a county having a population of 75,000 or
257 fewer, or by a municipality in such a county, or by such a
258 county and one or more municipalities. An enterprise zone
259 designated in accordance with s. 290.0065(5)(b) is considered to
260 be a rural enterprise zone.
261 (10) “Sales tax increment district” means an area within an
262 enterprise zone designated by a governing body to be used by a
263 retail development project.
264 (11)(6) “Small business” has the same meaning as provided
265 in s. 288.703.
266 (12) “Tax increment revenues” means the additional sales
267 tax revenues within the area of a sales tax increment district
268 which exceed the amount of sales tax revenues in the base year.
269 Section 4. Paragraph (a) of subsection (9) of section
270 290.0056, Florida Statutes, is amended, and present subsections
271 (11) and (12) of that section are redesignated as subsections
272 (12) and (13), respectively, and a new subsection (11) is added
273 to that section, to read:
274 290.0056 Enterprise zone development agency.—
275 (9) The following powers and responsibilities shall be
276 performed by the governing body creating the enterprise zone
277 development agency acting as the managing agent of the
278 enterprise zone development agency, or, contingent upon approval
279 by such governing body, such powers and responsibilities shall
280 be performed by the enterprise zone development agency:
281 (a) To review, process, and certify applications for state
282 enterprise zone tax incentives pursuant to ss. 212.08(5)(g),
283 (h), and (15); 212.096; 220.181; and 220.182; and 290.0137.
284 (11) A governing body that designates a sales tax increment
285 district may also exercise the following additional powers for
286 the purpose of providing local financing for public and private
287 improvements that will foster job growth and enhance the base of
288 retailers within an enterprise zone, unless otherwise prohibited
289 by ordinance:
290 (a) Enter into cooperative contracts and agreements with a
291 county, municipality, governmental agency, or private entity for
292 services and assistance;
293 (b) Acquire, own, convey, construct, maintain, improve, and
294 manage property and facilities and grant and acquire licenses,
295 easements, and options with respect to such property;
296 (c) Expend incremental sales tax revenues to promote and
297 advertise the commercial advantages of the district in order to
298 attract new businesses and encourage the expansion of existing
299 businesses;
300 (d) Expend incremental sales tax revenues to promote and
301 advertise the district to the public and engage in cooperative
302 advertising programs with businesses located in the district;
303 and
304 (e) Expend incremental sales tax revenues pursuant to a
305 development agreement with a retail development project
306 developer to underwrite retail development costs.
307 Section 5. Subsection (9) is added to section 290.007,
308 Florida Statutes, to read:
309 290.007 State incentives available in enterprise zones.—The
310 following incentives are provided by the state to encourage the
311 revitalization of enterprise zones:
312 (9) Tax increment financing within the area of an
313 enterprise zone which is designated as a sales tax increment
314 district.
315 Section 6. Section 290.01351, Florida Statutes, is created
316 to read:
317 290.01351 Municipal Revitalization Act.—Sections 290.01351
318 290.01391 may be cited as the “Municipal Revitalization Act.”
319 Section 7. Section 290.0136, Florida Statutes, is created
320 to read:
321 290.0136 Sales tax increment districts; intent and
322 purpose.—
323 (1) The Legislature intends to foster the revitalization of
324 counties and municipalities and support job-creating retail
325 development projects within enterprise zones by authorizing the
326 governing bodies of counties and municipalities to designate
327 sales tax increment districts within enterprise zones, subject
328 to the review and approval by the Department of Economic
329 Opportunity.
330 (2) The Legislature finds that by authorizing local
331 governing bodies of an enterprise zone to designate a sales tax
332 increment district, the counties or municipalities may share
333 with the state any annual increase in sales tax collections
334 occasioned by a retail development project and advance the
335 revitalization of such counties and municipalities. Through the
336 sharing of any annual increases in sales tax collections within
337 a sales increment district resulting from the advancement of a
338 retail development project, the Legislature intends to provide
339 local financing for public and private improvements that will
340 foster job growth for the residents of economically distressed
341 areas and enhance the base of local retailers serving residents
342 of the enterprise zones and the surrounding communities.
343 Section 8. Section 290.0137, Florida Statutes, is created
344 to read:
345 290.0137 Designation of sales tax increment districts;
346 review and approval.—
347 (1) Any municipality having a population of at least
348 250,000 residents which has designated an enterprise zone, or
349 all the governing bodies in the case of a county and one or more
350 municipalities having been designated an enterprise zone if the
351 county has a population of at least 750,000 residents, may adopt
352 a resolution designating a sales tax increment district to
353 support the development of a retail development project
354 following a public hearing.
355 (2) The resolution creating a sales tax increment
356 redevelopment district, at a minimum, must:
357 (a) Include findings that the designation of the sales tax
358 increment district:
359 1. Is essential to the advancement of a retail development
360 project;
361 2. Will provide needed retail amenities within the
362 enterprise zone;
363 3. Will result in the creation of a total of 500 new jobs
364 and at least $1 million in sales tax increment revenue annually;
365 and
366 4. Will enhance the health and general welfare of the
367 residents of the enterprise zone within the sponsoring
368 municipality or county;
369 (b) Fix the geographic boundaries of the sales tax
370 increment district which are necessary to support the
371 advancement of a retail development project;
372 (c) Establish the term of the life of the sales tax
373 increment district, which term may not exceed 15 years following
374 the date the sales tax increment district is approved following
375 review by the Department of Economic Opportunity;
376 (d) Specify the base year amount of sales tax revenues for
377 the determination of the amount of sales tax increment revenues
378 resulting from a retail development project; and
379 (e) Authorize staff of the governing body to negotiate a
380 development agreement with the retail development project
381 developer, subject to the approval of the governing body.
382 (3) A copy of the resolution adopted by the governing body
383 designating the sales tax increment district shall be
384 transmitted to the Department of Economic Opportunity for its
385 review. The department, in consultation with Enterprise Florida,
386 Inc., shall determine whether the designation of the sales tax
387 increment district complies with the requirements of this
388 chapter.
389 (4) Upon determining that the designation by the governing
390 body complies with the requirements of this chapter, the
391 Department of Economic Opportunity shall transmit a copy of the
392 resolution establishing the sales tax increment district to the
393 Department of Revenue.
394 Section 9. Section 290.0138, Florida Statutes, is created
395 to read:
396 290.0138 Calculation of tax increment revenue contribution
397 to governing body.—
398 (1) The governing body of a designated sales tax increment
399 district is eligible for a percentage distribution from the
400 Revenue Sharing Trust Fund for Municipalities of the increased
401 collections of the sales tax revenues realized during any month
402 by the municipality over the same monthly period of the base
403 year, as follows:
404 (a) Eighty-five percent of the increased monthly
405 collections of $85,000 or less.
406 (b) Seventy-five percent of the increased monthly
407 collections greater than $85,000 but $425,000 or less.
408 (c) Fifty percent of the increased monthly collections
409 greater than $425,000 but $675,000 or less.
410 (d) Twenty-five percent of the increased monthly
411 collections greater than $675,000 but $1 million or less.
412 (2) The specific amount payable to each eligible governing
413 body shall be determined monthly by the Department of Revenue
414 for distribution to the appropriate eligible governing body
415 pursuant to subsection (1). The Department of Revenue shall
416 determine monthly the aggregate amount of sales tax revenue that
417 is required for distribution to an eligible governing body under
418 this section and transfer that amount from the General Revenue
419 Fund to the Revenue Sharing Trust Fund for Municipalities in
420 accordance with s. 212.20(6)(d)5. All amounts transferred to the
421 Revenue Sharing Trust Fund for Municipalities shall be
422 distributed as provided in s. 218.23(3)(e). The total
423 distribution provided to the eligible governing body may not
424 exceed the total tax increment revenue contribution set forth in
425 the retail project development agreement required pursuant to s.
426 290.0139.
427 (3) Each governing body receiving a percentage distribution
428 pursuant to subsection (1) shall establish a separate tax
429 increment revenue account within its general fund for the
430 deposit of the sales tax increment for each sales tax increment
431 district.
432 Section 10. Section 290.0139, Florida Statutes, is created
433 to read:
434 290.0139 Retail development project agreement.—
435 (1) A retail development project developer desiring to use
436 tax increment revenues to underwrite retail development costs
437 must enter into a retail development project agreement with the
438 governing body of the county or municipality designating a sales
439 tax increment district. The agreement must set forth:
440 (a) The goals and objectives of the retail development
441 project;
442 (b) Requirements for leasing retail space within the retail
443 development project which will advance the goals and objectives;
444 (c) The terms and conditions under which tax increment
445 revenue or bond proceeds will be advanced to pay retail
446 developments costs incurred in the sales tax increment district;
447 (d) The total amount of the tax increment revenue to be
448 contributed to pay retail development costs within the sales tax
449 increment district;
450 (e) Goals for hiring minority business enterprises to
451 perform construction or operations work, which goal shall equal
452 an amount at least 25 percent of the total amount of tax
453 increment revenue contributed towards the payment of retail
454 development costs within the sales tax increment district;
455 (f) Goals for the hiring of enterprise zone residents for
456 the new jobs created by the retail development project, which
457 goal shall equal at least 35 percent of the new jobs created;
458 (g) Such matters as may be required in connection with the
459 issuance of bonds to support the retail development project; and
460 (h) Such other matters as the governing body designating
461 the sales tax increment district may determine to be necessary
462 and appropriate.
463 (2) Tax increment revenues or bond proceeds may not be
464 advanced to pay retail development costs until such time as the
465 retail development project is open to the general public.
466 (3) The governing body may approve a retail project
467 development agreement following a public hearing and the
468 approval must be in the form of a resolution.
469 Section 11. Section 290.01391, Florida Statutes, is created
470 to read:
471 290.01391 Issuance of tax increment revenue bonds; use of
472 bond proceeds; funding agreement.—
473 (1) A governing body that designates a sales tax increment
474 district may approve a resolution following a public hearing
475 which authorizes tax increment revenues to be used to support
476 the issuance of revenue bonds to finance retail redevelopment
477 costs of a retail development project, including the payment of
478 principal and interest upon any advances for surveys and plans
479 or preliminary loans.
480 (2) Bonds issued under this section do not constitute
481 indebtedness within the meaning of any constitutional or
482 statutory debt limitation or restriction and are not subject to
483 any other law or charter relating to the authorization,
484 issuance, or sale of bonds. Bonds issued under this section are
485 declared to be issued for an essential public and governmental
486 purpose, and the interest and income from the bonds are exempt
487 from all taxes, except taxes imposed by chapter 220 on
488 corporations.
489 (3) Bonds issued under this section may be issued in one or
490 more series and may bear such date or dates, be payable upon
491 demand or mature at such time or times, bear interest at such
492 rate or rates, be in such denomination or denominations, be in
493 such form either with or without coupon or registered, carry
494 such conversion or registration privileges, have such rank or
495 priority, be executed in such manner, be payable in such medium
496 of payment at such place or places, be subject to such terms of
497 redemption with or without a premium, be secured in such manner,
498 and have such other characteristics as may be provided by the
499 resolution or ordinance authorizing their issuance. Bonds issued
500 under this section may be sold in such manner, either at public
501 or private sale, and for such price as the designated
502 redevelopment agency may determine will effectuate the purposes
503 of this section.
504 (4) In any suit, action, or proceeding involving the
505 validity or enforceability of any bond issued under this
506 section, any bond that recites in substance that it has been
507 issued by the governing body in connection with the sales tax
508 increment district for a purpose authorized under this section
509 is conclusively presumed to have been issued for that purpose,
510 and any project financed by the bond is conclusively presumed to
511 have been planned and carried out in accordance with the
512 intended purposes of this section.
513 Section 12. This act shall take effect July 1, 2012.