Florida Senate - 2013 SB 1394 By Senator Hukill 8-01036A-13 20131394__ 1 A bill to be entitled 2 An act relating to motorsports entertainment 3 complexes; creating s. 212.094, F.S.; providing 4 definitions; providing an exemption from the sales and 5 use tax for building materials used in the 6 construction, reconstruction, expansion, or renovation 7 of certain certified motorsports entertainment 8 complexes through a refund of previously paid taxes; 9 providing procedures for applying for authority to 10 earn a tax refund; providing procedures for certifying 11 a refund for completed projects; providing procedures 12 for applying for a refund; providing audit authority 13 and procedures for recapturing refunds under specified 14 circumstances; providing rulemaking authority; 15 providing for specified reductions in certain local 16 government half-cent sales tax distributions; creating 17 s. 212.0943, F.S.; authorizing a motorsports 18 entertainment complex to apply for a tax refund of 19 sales and use taxes; limiting the expenditure of such 20 funds provided to a certified applicant to specified 21 public purposes; authorizing the Department of 22 Economic Opportunity to audit the expenditure of such 23 funds and to pursue recovery of improperly expended 24 funds; creating s. 212.0944, F.S.; providing that a 25 master developer of a certified motorsports 26 entertainment complex is eligible for a sales tax 27 refund of a specified percentage of any increase in 28 sales tax collections within the complex over a 29 specified base year; providing procedures, 30 requirements, and limitations with respect to the 31 acquisition and use of such tax refunds; limiting the 32 availability of such refunds to a specified period; 33 defining the term “master developer”; authorizing the 34 Department of Economic Opportunity to audit the 35 expenditure of such funds and to pursue recovery of 36 improperly expended funds; amending s. 212.20, F.S.; 37 providing that a certified motorsports entertainment 38 complex applicant may not receive certain sales tax 39 distributions in excess of the expenditures the 40 applicant has made for specified public purposes; 41 providing an effective date. 42 43 Be It Enacted by the Legislature of the State of Florida: 44 45 Section 1. Section 212.094, Florida Statutes, is created to 46 read: 47 212.094 Motorsports entertainment complex; tax exemption 48 for building materials.— 49 (1) DEFINITIONS.—For the purposes of this section, the 50 term: 51 (a) “Building materials” means materials, equipment, and 52 tangible personal property that is used in or becomes a 53 component part in the construction, reconstruction, expansion, 54 or renovation of a motorsports entertainment complex. 55 (b) “Motorsports entertainment complex” means a complex 56 that includes a closed-course racing facility with at least 57 50,000 fixed seats, together with any themed, ancillary business 58 establishments and related mixed-use commercial development 59 under common beneficial ownership as of the date of application 60 under subsection (3). 61 (c) “Owner” means the beneficial owner or the master 62 developer, as defined in s. 212.0944(6), of the motorsports 63 entertainment complex. 64 (d) “Project” means the construction, reconstruction, 65 expansion, or renovation of a motorsports entertainment complex 66 during a specified 48-month period for a total cost of at least 67 $250 million incurred during the 48-month period. However, total 68 cost shall not include the cost of any property previously owned 69 or leased by the motorsports entertainment complex. For the 70 purposes of this paragraph, total cost shall include all 71 expenses incurred by the owner of a motorsports entertainment 72 complex in connection with the construction, reconstruction, 73 expansion, or renovation of a motorsports entertainment complex, 74 including, but not limited to: 75 1. The costs of constructing, installing, equipping, and 76 financing, including all obligations incurred for labor and 77 obligations to contractors, subcontractors, builders, and 78 materialmen. 79 2. The costs of architectural and engineering services, 80 including test borings, surveys, estimates, plans and 81 specifications, preliminary investigations, environmental 82 mitigation, and supervision of construction, as well as the 83 performance of all duties required by or consequent to the 84 construction, installation, and equipping. 85 3. The costs associated with the installation of fixtures 86 and equipment; surveys, including archaeological and 87 environmental surveys; site tests and inspections; subsurface 88 site work and excavation; filling, grading, paving, and 89 provisions for drainage, stormwater retention, and installation 90 of utilities, including water, sewer, sewage treatment, gas, 91 electricity, communications, and similar facilities; and offsite 92 construction of utility extensions to the boundaries of the 93 property. 94 (e) “Substantially completed” has the same meaning as 95 provided in s. 192.042(1). 96 (f) “Unit of local government” has the same meaning as 97 provided in s. 218.369. 98 (2) EXEMPTIONS; ACCOUNT OF USE.— 99 (a) Building materials used in a project that has been 100 certified by the Department of Economic Opportunity under 101 subsection (4) for the construction, reconstruction, expansion, 102 or renovation of a motorsports entertainment complex are exempt 103 from the state tax imposed by this chapter upon an affirmative 104 showing to the satisfaction of the Department of Economic 105 Opportunity that the items have been used for the construction, 106 reconstruction, expansion, or renovation of a motorsports 107 entertainment complex. This exemption inures to the owner of the 108 motorsports entertainment complex who applies for certification 109 under subsection (4) through a refund of previously paid state 110 tax. To receive a refund, the owner of the motorsports 111 entertainment complex must follow the procedures in this 112 section. 113 (b) If approved and certified under subsections (3) and 114 (4), an owner of a motorsports entertainment complex may apply 115 for a one-time nontransferable refund of sales tax paid for 116 building materials used in that project. 117 (c) The refund is not available unless ordinances that 118 recognize and commit to the funding provision in subsection (8) 119 for a specified project are enacted by a majority of the members 120 of the governing board of the county where the project is 121 located and a majority of the members of the governing board of 122 any municipality where the project is located. For purposes of 123 the funding provision in subsection (8), such a recognition and 124 commitment by ordinance is binding and irrevocable upon the 125 county and any municipality enacting the ordinance. 126 (3) APPLICATION.— 127 (a) In order to earn a tax refund, an owner of a 128 motorsports entertainment complex must first submit an 129 application to the Department of Economic Opportunity for 130 approval of a project before beginning construction, 131 reconstruction, expansion, or renovation. The application must 132 be filed by the date established by the Department of Economic 133 Opportunity. In addition to any information that the Department 134 of Economic Opportunity may require, the applicant must provide 135 a complete description of the project that demonstrates to the 136 Department of Economic Opportunity that the applicant is likely 137 to complete the requirements in this section. The applicant must 138 provide an affidavit certifying that all the information 139 contained in the application is true and correct. The applicant 140 must also provide the department with copies of the ordinances 141 required under paragraph (2)(c). 142 (b) Within 60 days after receipt of a completed 143 application, the Department of Economic Opportunity must issue a 144 notice of intent to deny or approve the project. 145 (4) CERTIFICATION.—Upon completion of a project, the owner 146 of the motorsports entertainment complex who received approval 147 for the project may apply to the Department of Economic 148 Opportunity for certification of a refund. 149 (a) The application must include: 150 1. The name and physical in-state address of the 151 motorsports entertainment complex. 152 2. A copy of the application and approval for the project. 153 3. An address and the applicable assessment roll parcel 154 numbers for the motorsports entertainment complex for which a 155 refund of previously paid taxes is being sought. 156 4. A copy of a valid building permit issued by the county 157 or municipal building department for construction, 158 reconstruction, expansion, or renovation of the motorsports 159 entertainment complex. 160 5. A sworn statement, under penalty of perjury, from the 161 general contractor licensed in this state with whom the 162 applicant contracted to construct, reconstruct, or renovate the 163 motorsports entertainment complex, which lists the building 164 materials used to construct, reconstruct, or renovate the 165 motorsports entertainment complex, the actual cost of the 166 building materials, and the amount of sales and use tax paid in 167 this state on the building materials. If a general contractor 168 was not used, the applicant, not a general contractor, must make 169 the sworn statement required under this subparagraph. Copies of 170 invoices that evidence the purchase of the building materials 171 used in the construction, reconstruction, or renovation of the 172 motorsports entertainment complex and the payment of sales and 173 use tax on the building materials must be attached to the sworn 174 statement provided by the general contractor or by the 175 applicant. 176 6. A certification by the local building code inspector 177 that the construction, reconstruction, expansion, or renovation 178 of the motorsports entertainment complex is substantially 179 complete. 180 7. A detailed accounting attested to by a certified public 181 accountant licensed in this state that the total amount expended 182 by the applicant towards the construction, reconstruction, 183 expansion, or renovation of the motorsports entertainment 184 complex during a 48-month period is greater than $250 million. 185 (b) Within 90 working days after receipt of an application 186 for certification, the Department of Economic Opportunity must 187 review the application to determine if it includes all the 188 information and meets all the criteria required under this 189 section. The department shall certify all applications that 190 contain the required information and are found to be eligible to 191 receive a refund under this section. 192 (5) REFUND.—An application for a refund must be submitted 193 to the department within 6 months after certification for the 194 refund is obtained under subsection (4). 195 (6) AUDIT AUTHORITY; RECAPTURE OF REFUNDS.— 196 (a) In addition to its existing audit and investigative 197 authority, the department may perform any additional financial 198 and technical audits and investigations, including examining the 199 accounts, books, and financial records of the tax refund 200 applicant, which are necessary for verifying the accuracy of the 201 refund request and to ensure compliance with this section. If 202 requested by the department, the Department of Economic 203 Opportunity must provide technical assistance for any technical 204 audits or examinations performed under this subsection. 205 (b) Grounds for forfeiture of previously claimed refunds 206 approved under this section exist if the department determines, 207 as a result of an audit or examination, or from information 208 received from the Department of Economic Opportunity, that a 209 taxpayer received tax refunds for which the taxpayer was not 210 entitled. 211 (c) The Department of Economic Opportunity may revoke or 212 modify a certification granting eligibility for a tax refund if 213 it finds that the taxpayer made a false statement or 214 representation in any application, record, report, plan, or 215 other document filed in an attempt to receive a tax refund under 216 this section. The Department of Economic Opportunity shall 217 immediately notify the department of any revoked or modified 218 orders affecting previously granted tax refunds. 219 (d) The department may assess an additional tax, penalty, 220 or interest pursuant to s. 95.091. 221 (7) RULES.— 222 (a) The Department of Economic Opportunity shall adopt 223 rules to administer this section, including rules relating to 224 application forms required under subsections (3) and (4), and 225 the application and certification procedures, guidelines, and 226 requirements necessary to administer this section. 227 (b) The department may adopt rules to administer this 228 section, including rules relating to the forms required to claim 229 a tax refund under this section, the requirements and basis for 230 establishing an entitlement to a refund, and the examination and 231 audit procedures required to administer this section. 232 (8) REDUCTIONS IN DISTRIBUTIONS.—The department shall 233 reduce by an amount equal to 10 percent of each refund granted 234 under this section the combined local government half-cent sales 235 tax to be distributed, pursuant to s. 218.61, to each unit of 236 local government that enacted ordinances pursuant to paragraph 237 (2)(c), and such reductions shall be prorated over a 12-month 238 period. 239 (a) For refunds issued pursuant to this section on or 240 before June 30 of a given calendar year, the reductions required 241 under this subsection shall begin in the first month of the 242 local fiscal year that follows such refund being issued. 243 (b) For refunds issued pursuant to this section after June 244 30 of a given calendar year, the reductions required under this 245 subsection shall begin in the first month of the second local 246 fiscal year that follows such refund being issued. 247 (c) An amount equal to the reductions required under this 248 subsection shall be transferred monthly from the Local 249 Government Half-cent Sales Tax Clearing Trust Fund to the 250 General Revenue Fund. Each affected unit of local government’s 251 share of the reduction shall be in proportion to that unit of 252 local government’s respective local government half-cent sales 253 tax distributions absent the provisions of this paragraph. 254 (d) Within 14 days after issuance of a refund pursuant to 255 this section, the department shall provide written notice to 256 each unit of local government subject to the reduced 257 distribution provisions of this subsection with the amounts and 258 timing of the forthcoming reductions in distributions. 259 Section 2. Section 212.0943, Florida Statutes, is created 260 to read: 261 212.0943 Motorsports entertainment complex; refund of 262 taxes.— 263 (1) Beginning July 1, 2013, a motorsports entertainment 264 complex as defined in s. 212.094(1) may apply for funds provided 265 under s. 212.20(6)(d)6.b. 266 (2) An applicant certified as a motorsports entertainment 267 complex under s. 212.094(4) may use funds provided under s. 268 212.20(6)(d)6.b. only for the following public purposes: 269 (a) Paying for the construction, reconstruction, expansion, 270 or renovation of a motorsports entertainment complex. 271 (b) Paying debt service reserve funds, arbitrage rebate 272 obligations, or other amounts payable with respect to bonds 273 issued for the construction, reconstruction, expansion, or 274 renovation of the motorsports entertainment complex or for the 275 reimbursement of such costs or the refinancing of bonds issued 276 for such purposes. 277 (c) Paying for construction, reconstruction, expansion, or 278 renovation of transportation or other infrastructure 279 improvements related to, necessary for, or appurtenant to the 280 motorsports entertainment complex, including, without 281 limitation, paying debt service reserve funds, arbitrage rebate 282 obligations, or other amounts payable with respect to bonds 283 issued for the construction, reconstruction, expansion, or 284 renovation of such transportation or other infrastructure 285 improvements, and for the reimbursement of such costs or the 286 refinancing of bonds issued for such purposes. 287 (d) Paying for programs of advertising and promotion of or 288 related to the motorsports entertainment complex or the 289 municipality in which the motorsports entertainment complex is 290 located, and the county if the motorsports entertainment complex 291 is located in an unincorporated area, if such programs of 292 advertising and promotion are designed to increase paid 293 attendance at the motorsports entertainment complex or increase 294 tourism in or promote the economic development of the community 295 in which the motorsports entertainment complex is located. 296 (3) As provided in s. 212.094(6), the Department of 297 Economic Opportunity may audit to verify that distributions 298 pursuant to this section have been expended as required. If the 299 Department of Economic Opportunity determines that the 300 distributions have not been expended as required, it may pursue 301 recovery of such funds pursuant to the laws and rules governing 302 the assessment of taxes. 303 Section 3. Section 212.0944, Florida Statutes, is created 304 to read: 305 212.0944 Motorsports entertainment complex; escrow of 306 taxes.— 307 (1) The master developer of a motorsports entertainment 308 complex certified under s. 212.094(4) shall be eligible for a 309 refund of 50 percent of sales taxes imposed by this chapter on 310 any sales made within a certified motorsports entertainment 311 complex, as defined in s. 212.094(1), the amount of which 312 exceeds the total amount of sales tax collected and remitted by 313 the motorsports entertainment complex during the 12-month period 314 before the date of an application submitted under s. 212.094(3). 315 For purposes of this section, such 12-month period shall be 316 considered the base year. 317 (2) The measurement period shall be a 12-month period 318 starting with the first full month after the submission of the 319 application under s. 212.094(3). During the 12-month measurement 320 period after the base year, any businesses within the 321 motorsports entertainment complex that collect sales tax on any 322 sales within the motorsports entertainment complex must file the 323 appropriate sales and use tax returns and remit the tax due 324 under applicable statutes. Within 60 days after the end of the 325 12-month measurement period, the master developer shall submit a 326 refund request, supported by the previously filed sales and use 327 tax returns for any businesses within the motorsports 328 entertainment complex, for the incremental sales tax collected 329 and remitted related to any sales within the motorsports 330 entertainment complex for the 12-month measurement period as 331 compared to the base year, with such refund payment made within 332 60 days to the master developer. The refund provided in this 333 section shall be available only to the master developer and only 334 by a refund of previously paid tax and shall be provided upon an 335 affirmative showing to the satisfaction of the Department of 336 Economic Opportunity that the requirements of this section have 337 been met. 338 (3) The master developer shall require each tenant, lessee, 339 or other third party within the motorsports entertainment 340 complex to provide the master developer all documents, returns, 341 or other information necessary to verify the amount of sales tax 342 eligible for the sales tax refund under this section. 343 (4) The tax refund provided under this section shall renew 344 each 12-month period for a total of 30 years and for each 345 subsequent 12-month measurement period, the sales and use tax 346 collected and remitted shall be compared to the sales and use 347 tax collected and remitted during the original base year. 348 (5) An applicant certified as a motorsports entertainment 349 complex may use funds provided under this section only for the 350 public purposes defined in s. 212.0943(2). 351 (6) As used in this section, the term “master developer” 352 means the primary developer of a motorsports entertainment 353 complex. 354 (7) As provided in s. 212.094(6), the Department of 355 Economic Opportunity may audit to verify that the distributions 356 pursuant to this section have been expended as required. If the 357 Department of Economic Opportunity determines that the 358 distributions have not been expended as required, it may pursue 359 recovery of such funds pursuant to the laws and rules governing 360 the assessment of taxes. 361 Section 4. Paragraph (d) of subsection (6) of section 362 212.20, Florida Statutes, is amended to read: 363 212.20 Funds collected, disposition; additional powers of 364 department; operational expense; refund of taxes adjudicated 365 unconstitutionally collected.— 366 (6) Distribution of all proceeds under this chapter and s. 367 202.18(1)(b) and (2)(b) shall be as follows: 368 (d) The proceeds of all other taxes and fees imposed 369 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b) 370 and (2)(b) shall be distributed as follows: 371 1. In any fiscal year, the greater of $500 million, minus 372 an amount equal to 4.6 percent of the proceeds of the taxes 373 collected pursuant to chapter 201, or 5.2 percent of all other 374 taxes and fees imposed pursuant to this chapter or remitted 375 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in 376 monthly installments into the General Revenue Fund. 377 2. After the distribution under subparagraph 1., 8.814 378 percent of the amount remitted by a sales tax dealer located 379 within a participating county pursuant to s. 218.61 shall be 380 transferred into the Local Government Half-cent Sales Tax 381 Clearing Trust Fund. Beginning July 1, 2003, the amount to be 382 transferred shall be reduced by 0.1 percent, and the department 383 shall distribute this amount to the Public Employees Relations 384 Commission Trust Fund less $5,000 each month, which shall be 385 added to the amount calculated in subparagraph 3. and 386 distributed accordingly. 387 3. After the distribution under subparagraphs 1. and 2., 388 0.095 percent shall be transferred to the Local Government Half 389 cent Sales Tax Clearing Trust Fund and distributed pursuant to 390 s. 218.65. 391 4. After the distributions under subparagraphs 1., 2., and 392 3., 2.0440 percent of the available proceeds shall be 393 transferred monthly to the Revenue Sharing Trust Fund for 394 Counties pursuant to s. 218.215. 395 5. After the distributions under subparagraphs 1., 2., and 396 3., 1.3409 percent of the available proceeds shall be 397 transferred monthly to the Revenue Sharing Trust Fund for 398 Municipalities pursuant to s. 218.215. If the total revenue to 399 be distributed pursuant to this subparagraph is at least as 400 great as the amount due from the Revenue Sharing Trust Fund for 401 Municipalities and the former Municipal Financial Assistance 402 Trust Fund in state fiscal year 1999-2000, no municipality shall 403 receive less than the amount due from the Revenue Sharing Trust 404 Fund for Municipalities and the former Municipal Financial 405 Assistance Trust Fund in state fiscal year 1999-2000. If the 406 total proceeds to be distributed are less than the amount 407 received in combination from the Revenue Sharing Trust Fund for 408 Municipalities and the former Municipal Financial Assistance 409 Trust Fund in state fiscal year 1999-2000, each municipality 410 shall receive an amount proportionate to the amount it was due 411 in state fiscal year 1999-2000. 412 6. Of the remaining proceeds: 413 a. In each fiscal year, the sum of $29,915,500 shall be 414 divided into as many equal parts as there are counties in the 415 state, and one part shall be distributed to each county. The 416 distribution among the several counties must begin each fiscal 417 year on or before January 5th and continue monthly for a total 418 of 4 months. If a local or special law required that any moneys 419 accruing to a county in fiscal year 1999-2000 under the then 420 existing provisions of s. 550.135 be paid directly to the 421 district school board, special district, or a municipal 422 government, such payment must continue until the local or 423 special law is amended or repealed. The state covenants with 424 holders of bonds or other instruments of indebtedness issued by 425 local governments, special districts, or district school boards 426 before July 1, 2000, that it is not the intent of this 427 subparagraph to adversely affect the rights of those holders or 428 relieve local governments, special districts, or district school 429 boards of the duty to meet their obligations as a result of 430 previous pledges or assignments or trusts entered into which 431 obligated funds received from the distribution to county 432 governments under then-existing s. 550.135. This distribution 433 specifically is in lieu of funds distributed under s. 550.135 434 before July 1, 2000. 435 b. The department shall distribute $166,667 monthly 436 pursuant to s. 288.1162 to each applicant certified as a 437 facility for a new or retained professional sports franchise 438 pursuant to s. 288.1162. Up to $41,667 shall be distributed 439 monthly by the department to each certified applicant as defined 440 in s. 288.11621 for a facility for a spring training franchise. 441 However, not more than $416,670 may be distributed monthly in 442 the aggregate to all certified applicants for facilities for 443 spring training franchises. Distributions begin 60 days after 444 such certification and continue for not more than 30 years, 445 except as otherwise provided in s. 288.11621. A certified 446 applicant identified in this sub-subparagraph may not receive 447 more in distributions than expended by the applicant for the 448 public purposes provided for in s. 288.1162(5),ors. 449 288.11621(3), or s. 212.0943. 450 c. Beginning 30 days after notice by the Department of 451 Economic Opportunity to the Department of Revenue that an 452 applicant has been certified as the professional golf hall of 453 fame pursuant to s. 288.1168 and is open to the public, $166,667 454 shall be distributed monthly, for up to 300 months, to the 455 applicant. 456 d. Beginning 30 days after notice by the Department of 457 Economic Opportunity to the Department of Revenue that the 458 applicant has been certified as the International Game Fish 459 Association World Center facility pursuant to s. 288.1169, and 460 the facility is open to the public, $83,333 shall be distributed 461 monthly, for up to 168 months, to the applicant. This 462 distribution is subject to reduction pursuant to s. 288.1169. A 463 lump sum payment of $999,996 shall be made, after certification 464 and before July 1, 2000. 465 7. All other proceeds must remain in the General Revenue 466 Fund. 467 Section 5. This act shall take effect July 1, 2013.