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House Bill 0179e1

CS/HB 179, First Engrossed 1 A bill to be entitled 2 An act relating to local option taxes; amending 3 s. 125.0104, F.S.; revising provisions which 4 authorize the levy of an additional local 5 option tourist development tax to pay debt 6 service on bonds for a professional sports 7 franchise facility or convention center; 8 revising the uses, and the conditions for use, 9 of the revenues of said tax by certain high 10 tourism impact counties; providing a definition 11 of "convention center"; providing additional 12 uses for the additional tax authorized to be 13 levied by counties which levy said tax; 14 amending s. 212.054, F.S.; exempting from newly 15 enacted discretionary sales surtaxes levied by 16 a high tourism impact county transactions that 17 are subject to specified tourist development 18 taxes in an aggregate rate that exceeds a 19 specified maximum; amending s. 212.055, F.S.; 20 authorizing charter counties and counties as 21 defined in s. 125.011, F.S., to use the 22 proceeds of local government infrastructure 23 surtax revenues and interest thereon to retire 24 or service indebtedness incurred for certain 25 bonds and to refund bonds issued after a 26 specified date; ratifying any use of such 27 proceeds or interest for purposes of retiring 28 or servicing indebtedness incurred before July 29 1, 1997, for refunding certain bonds; providing 30 effective dates. 31 1 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 Be It Enacted by the Legislature of the State of Florida: 2 3 Section 1. Paragraphs (l) and (n) of subsection (3) of 4 section 125.0104, Florida Statutes, 1996 Supplement, are 5 amended to read: 6 125.0104 Tourist development tax; procedure for 7 levying; authorized uses; referendum; enforcement.-- 8 (3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.-- 9 (l) In addition to any other tax which is imposed 10 pursuant to this section, a county may impose up to an 11 additional 1-percent tax on the exercise of the privilege 12 described in paragraph (a) by majority vote of the governing 13 board of the county in order to: 14 1. Pay the debt service on bonds issued to finance the 15 construction, reconstruction, or renovation of a professional 16 sports franchise facility, either publicly owned and operated, 17 or publicly owned and operated by the owner of a professional 18 sports franchise or other lessee with sufficient expertise or 19 financial capability to operate such facility, and to pay the 20 planning and design costs incurred prior to the issuance of 21 such bonds. 22 2. Pay the debt service on bonds issued to finance the 23 construction, reconstruction, or renovation of a convention 24 center, and to pay the planning and design costs incurred 25 prior to the issuance of such bonds. As used in this section, 26 the term "convention center" does not include any facility 27 having a hotel, motel, or other transient living accomodations 28 as described in s.509.013(4)(a) which are licensed under part 29 I of chapter 509. 30 31 2 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 3. Only counties that have elected to levy the tax initially 2 for the purposes authorized in subparagraph 1. may use the tax 3 for the purposes enumerated in subparagraph 2. A high tourism 4 impact county that imposes the tax authorized by paragraph (m) 5 and qualifies as a high tourism impact county under paragraph 6 (m) because it had sales subject to the tax levied pursuant to 7 this section which were at least 18 percent of the county's 8 total taxable sales under chapter 212, and the sales subject 9 to the tax levied pursuant to this section were a minimum of 10 $200 million, but that is not authorized to levy the tax under 11 s. 125.0108, may use the tax revenues received pursuant to 12 this paragraph to acquire a convention center, or to pay the 13 cost of planning, designing, constructing, reconstructing, or 14 renovating a convention center, and to pay the debt service on 15 bonds issued for such purposes, whether or not the tax is 16 levied initially to finance the construction, reconstruction, 17 or renovation of a professional sports franchise facility. In 18 such event, any remaining tax revenue shall be used to promote 19 and advertise the convention center or tourism in general. The 20 provision of paragraph (b) which prohibits any county 21 authorized to levy a convention development tax pursuant to s. 22 212.0305 from levying more than the 2-percent tax authorized 23 by this section, and the provisions of paragraphs (4)(a) 24 through (d), shall not apply to the additional tax authorized 25 in this paragraph. The effective date of the levy and 26 imposition of the tax authorized under this paragraph shall be 27 the first day of the second month following approval of the 28 ordinance by the governing board or the first day of any 29 subsequent month as may be specified in the ordinance. A 30 certified copy of such ordinance shall be furnished by the 31 3 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 county to the Department of Revenue within 10 days after 2 approval of such ordinance. 3 (n) In addition to any other tax that is imposed under 4 this section, a county that has imposed the tax under 5 paragraph (l) may impose an additional tax that is no greater 6 than 1 percent on the exercise of the privilege described in 7 paragraph (a) by a majority plus one vote of the membership of 8 the board of county commissioners in order to pay the debt 9 service on bonds issued to finance the construction, 10 reconstruction, or renovation of a facility either publicly 11 owned and operated, or publicly owned and operated by the 12 owner of a professional sports franchise or other lessee with 13 sufficient expertise or financial capability to operate such 14 facility, and to pay the planning and design costs incurred 15 prior to the issuance of such bonds for a new professional 16 sports franchise as defined in s. 288.1162 or to acquire, 17 construct, extend, enlarge, remodel, repair, improve, 18 maintain, and pay the utilities for one or more publicly owned 19 and operated convention centers within the boundaries of the 20 county or subcounty special taxing district in which the tax 21 is levied. Each county may establish one subcounty special 22 district for the purpose of levying the tax authorized by this 23 paragraph. A county that imposes the tax authorized in this 24 paragraph may not expend any ad valorem tax revenues for the 25 construction, reconstruction, or renovation of that facility. 26 The provision of paragraph (b) which prohibits any county 27 authorized to levy a convention development tax pursuant to s. 28 212.0305 from levying more than the 2-percent tax authorized 29 by this section shall not apply to the additional tax 30 authorized by this paragraph in counties which levy convention 31 development taxes pursuant to s. 212.0305(4)(a). Subsection 4 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 (4) does not apply to the adoption of the additional tax 2 authorized in this paragraph. The effective date of the levy 3 and imposition of the tax authorized under this paragraph is 4 the first day of the second month following approval of the 5 ordinance by the board of county commissioners or the first 6 day of any subsequent month specified in the ordinance. A 7 certified copy of such ordinance shall be furnished by the 8 county to the Department of Revenue within 10 days after 9 approval of the ordinance. 10 Section 2. Paragraph (b) of subsection (2) of section 11 212.054, Florida Statutes, 1996 Supplement, is amended to 12 read: 13 212.054 Discretionary sales surtax; limitations, 14 administration, and collection.-- 15 (2) 16 (b) However: 17 1. The tax on any sales amount above $5,000 on any 18 item of tangible personal property and on long-distance 19 telephone service shall not be subject to the surtax. For 20 purposes of administering the $5,000 limitation on an item of 21 tangible personal property, if two or more taxable items of 22 tangible personal property are sold to the same purchaser at 23 the same time and, under generally accepted business practice 24 or industry standards or usage, are normally sold in bulk or 25 are items that, when assembled, comprise a working unit or 26 part of a working unit, such items must be considered a single 27 item for purposes of the $5,000 limitation when supported by a 28 charge ticket, sales slip, invoice, or other tangible evidence 29 of a single sale or rental. The limitation provided in this 30 subparagraph does not apply to the sale of any other service. 31 5 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 2. In the case of utility, telecommunication, or 2 television system program services billed on or after the 3 effective date of any such surtax, the entire amount of the 4 tax for utility, telecommunication, or television system 5 program services shall be subject to the surtax. In the case 6 of utility, telecommunication, or television system program 7 services billed after the last day the surtax is in effect, 8 the entire amount of the tax on said items shall not be 9 subject to the surtax. 10 3. In the case of written contracts which are signed 11 prior to the effective date of any such surtax for the 12 construction of improvements to real property or for 13 remodeling of existing structures, the surtax shall be paid by 14 the contractor responsible for the performance of the 15 contract. However, the contractor may apply for one refund of 16 any such surtax paid on materials necessary for the completion 17 of the contract. Any application for refund shall be made no 18 later than 15 months following initial imposition of the 19 surtax in that county. The application for refund shall be in 20 the manner prescribed by the department by rule. A complete 21 application shall include proof of the written contract and of 22 payment of the surtax. The application shall contain a sworn 23 statement, signed by the applicant or its representative, 24 attesting to the validity of the application. The department 25 shall, within 30 days after approval of a complete 26 application, certify to the county information necessary for 27 issuance of a refund to the applicant. Counties are hereby 28 authorized to issue refunds for this purpose and shall set 29 aside from the proceeds of the surtax a sum sufficient to pay 30 any refund lawfully due. Any person who fraudulently obtains 31 or attempts to obtain a refund pursuant to this subparagraph, 6 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 in addition to being liable for repayment of any refund 2 fraudulently obtained plus a mandatory penalty of 100 percent 3 of the refund, is guilty of a felony of the third degree, 4 punishable as provided in s. 775.082, s. 775.083, or s. 5 775.084. 6 4. Transactions that are subject to the tourist 7 development tax levied and imposed under s. 125.0104(3) are 8 not subject to the discretionary surtax levied under s. 9 212.055 by the governing body of a high tourism impact county 10 if: 11 a. The aggregate rate of the tourist development tax 12 levied and imposed on such transactions within the county 13 equals or exceeds 5 percent; and 14 b. The discretionary surtax that is initially levied 15 by the governing body of the county has an effective date of 16 January 1, 1998, or later. 17 18 If the tourist development tax is levied and imposed only in a 19 subcounty special district and not in the entire county, the 20 exemption provided under this subparagraph applies only in the 21 subcounty special district. If the aggregate rate of the 22 tourist development tax levied and imposed within the county 23 or subcounty special district is reduced to less than 5 24 percent, the exemption provided under this subparagraph no 25 longer applies within the county or subcounty special 26 district. 27 Section 3. Effective July 1, 1997, paragraph (d) of 28 subsection (2) of section 212.055, Florida Statutes, 1996 29 Supplement, is amended to read: 30 212.055 Discretionary sales surtaxes; legislative 31 intent; authorization and use of proceeds.--It is the 7 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 legislative intent that any authorization for imposition of a 2 discretionary sales surtax shall be published in the Florida 3 Statutes as a subsection of this section, irrespective of the 4 duration of the levy. Each enactment shall specify the types 5 of counties authorized to levy; the rate or rates which may be 6 imposed; the maximum length of time the surtax may be imposed, 7 if any; the procedure which must be followed to secure voter 8 approval, if required; the purpose for which the proceeds may 9 be expended; and such other requirements as the Legislature 10 may provide. Taxable transactions and administrative 11 procedures shall be as provided in s. 212.054. 12 (2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.-- 13 (d)1. The proceeds of the surtax authorized by this 14 subsection and any interest accrued thereto shall be expended 15 by the school district or within the county and municipalities 16 within the county, or, in the case of a negotiated joint 17 county agreement, within another county, to finance, plan, and 18 construct infrastructure and to acquire land for public 19 recreation or conservation or protection of natural resources 20 and to finance the closure of county-owned or municipally 21 owned solid waste landfills that are already closed or are 22 required to close by order of the Department of Environmental 23 Protection. Any use of such proceeds or interest for purposes 24 of landfill closure prior to July 1, 1993, is ratified. 25 Neither the proceeds nor any interest accrued thereto shall be 26 used for operational expenses of any infrastructure, except 27 that any county with a population of less than 50,000 that is 28 required to close a landfill by order of the Department of 29 Environmental Protection may use the proceeds or any interest 30 accrued thereto for long-term maintenance costs associated 31 with landfill closure. Charter counties and counties, as 8 CODING: Words stricken are deletions; words underlined are additions. CS/HB 179, First Engrossed 1 defined in s. 125.011(1), may, in addition, use the proceeds 2 and any interest accrued thereon to retire or service 3 indebtedness incurred for bonds issued prior to July 1, 1987, 4 for infrastructure purposes and, for bonds subsequently 5 issued, to refund such bonds. 6 2. For the purposes of this paragraph, 7 "infrastructure" means: 8 a. Any fixed capital expenditure or fixed capital 9 outlay associated with the construction, reconstruction, or 10 improvement of public facilities which have a life expectancy 11 of 5 or more years and any land acquisition, land improvement, 12 design, and engineering costs related thereto. 13 b. A fire department vehicle, an emergency medical 14 service vehicle, a sheriff's office vehicle, a police 15 department vehicle, or any other vehicle, and such equipment 16 necessary to outfit the vehicle for its official use or 17 equipment that has a life expectancy of at least 5 years. 18 Section 4. Any use of the proceeds of the surtax 19 authorized by subsection (2) of section 212.055, Florida 20 Statutes, or of any interest accrued on such proceeds, for 21 purposes of retiring or servicing indebtedness incurred before 22 July 1, 1997, for refunding bonds issued after July 1, 1987, 23 is ratified. 24 Section 5. Except as otherwise provided herein, this 25 act shall take effect upon becoming a law. 26 27 28 29 30 31 9