Senate Bill 0300c1

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    Florida Senate - 1998                            CS for SB 300

    By the Committee on Ways and Means; and Senators Hargrett and
    Lee




    301-2238-98

  1                      A bill to be entitled

  2         An act relating to economic development;

  3         authorizing tax credits to a certain business;

  4         amending s. 212.08, F.S.; exempting certain

  5         property based in enterprise zones from the

  6         sales tax under certain circumstances; amending

  7         s. 370.28, F.S.; providing that a business

  8         located in an enterprise zone in a community

  9         impacted by net limitations is eligible for the

10         maximum sales tax exemption for building

11         materials used in the rehabilitation of real

12         property in an enterprise zone, for business

13         property used in an enterprise zone, and for

14         electrical energy used in an enterprise zone,

15         and the maximum enterprise zone property tax

16         credit against the corporate income tax, if a

17         specified percentage of its employees are

18         residents of the jurisdiction of the county,

19         rather than of the enterprise zone; requiring

20         businesses eligible to receive certain tax

21         credits to apply for such credits by a time

22         certain; amending s. 290.0055, F.S.; extending

23         the date by which certain counties may apply to

24         amend enterprise zone boundary lines; amending

25         s. 290.0065, F.S.; providing for amendment of

26         the boundaries of an enterprise zone designated

27         pursuant to s. 290.0065(5)(b), F.S., upon

28         application by the county to the Office of

29         Tourism, Trade, and Economic Development;

30         authorizing the Office of Tourism, Trade, and

31         Economic Development to amend the boundaries of

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    Florida Senate - 1998                            CS for SB 300
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  1         certain enterprise zones upon request from

  2         certain counties; providing restrictions;

  3         providing an appropriation to the Department of

  4         Community Affairs; providing an appropriation

  5         to the Office of Tourism, Trade, and Economic

  6         Development for the Technological Research and

  7         Development Authority; providing an effective

  8         date.

  9

10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  (1)  Notwithstanding the provisions of

13  chapters 212 and 220, Florida Statutes, a business that was

14  purchased in February 1992 within an existing enterprise zone

15  in Tampa is entitled to all the enterprise zone incentives

16  available at that time through the program's expiration in

17  1994. The business may claim any incentive to which it would

18  have been entitled had the program not expired.

19         (2)  Notwithstanding the time limitations contained in

20  chapters 212 and 220, Florida Statutes, under the enterprise

21  zone program that expired in 1994, a business eligible to

22  receive tax credits under this section must submit an

23  application for the tax credits by December 1, 1998. All other

24  requirements of the enterprise zone program apply to such a

25  business.

26         Section 2.  Paragraph (h) of subsection (5) of section

27  212.08, Florida Statutes, is amended to read:

28         212.08  Sales, rental, use, consumption, distribution,

29  and storage tax; specified exemptions.--The sale at retail,

30  the rental, the use, the consumption, the distribution, and

31  the storage to be used or consumed in this state of the

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    Florida Senate - 1998                            CS for SB 300
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  1  following are hereby specifically exempt from the tax imposed

  2  by this chapter.

  3         (5)  EXEMPTIONS; ACCOUNT OF USE.--

  4         (h)  Business property used in an enterprise zone.--

  5         1.  Beginning July 1, 1995, business property purchased

  6  for use by businesses located in an enterprise zone which is

  7  subsequently used in an enterprise zone shall be exempt from

  8  the tax imposed by this chapter. This exemption inures to the

  9  business only through a refund of previously paid taxes. A

10  refund shall be authorized upon an affirmative showing by the

11  taxpayer to the satisfaction of the department that the

12  requirements of this paragraph have been met.

13         2.  To receive a refund, the business must file under

14  oath with the governing body or enterprise zone development

15  agency having jurisdiction over the enterprise zone where the

16  business is located, as applicable, an application which

17  includes:

18         a.  The name and address of the business claiming the

19  refund.

20         b.  The identifying number assigned pursuant to s.

21  290.0065 to the enterprise zone in which the business is

22  located.

23         c.  A specific description of the property for which a

24  refund is sought, including its serial number or other

25  permanent identification number.

26         d.  The location of the property.

27         e.  The sales invoice or other proof of purchase of the

28  property, showing the amount of sales tax paid, the date of

29  purchase, and the name and address of the sales tax dealer

30  from whom the property was purchased.

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    Florida Senate - 1998                            CS for SB 300
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  1         f.  Whether the business is a small business as defined

  2  by s. 288.703(1).

  3         g.  If applicable, the name and address of each

  4  permanent employee of the business, including, for each

  5  employee who is a resident of an enterprise zone, the

  6  identifying number assigned pursuant to s. 290.0065 to the

  7  enterprise zone in which the employee resides.

  8         3.  Within 10 working days after receipt of an

  9  application, the governing body or enterprise zone development

10  agency shall review the application to determine if it

11  contains all the information required pursuant to subparagraph

12  2. and meets the criteria set out in this paragraph. The

13  governing body or agency shall certify all applications that

14  contain the information required pursuant to subparagraph 2.

15  and meet the criteria set out in this paragraph as eligible to

16  receive a refund. If applicable, the governing body or agency

17  shall also certify if 20 percent of the employees of the

18  business are residents of an enterprise zone, excluding

19  temporary and part-time employees. The certification shall be

20  in writing, and a copy of the certification shall be

21  transmitted to the executive director of the Department of

22  Revenue. The business shall be responsible for forwarding a

23  certified application to the department within the time

24  specified in subparagraph 4.

25         4.  An application for a refund pursuant to this

26  paragraph must be submitted to the department within 6 months

27  after the business property is purchased.

28         5.  The provisions of s. 212.095 do not apply to any

29  refund application made pursuant to this paragraph. The amount

30  refunded on purchases of business property under this

31  paragraph shall be the lesser of 97 percent of the sales tax

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    Florida Senate - 1998                            CS for SB 300
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  1  paid on such business property or $5,000, or, if no less than

  2  20 percent of the employees of the business are residents of

  3  an enterprise zone, excluding temporary and part-time

  4  employees, the amount refunded on purchases of business

  5  property under this paragraph shall be the lesser of 97

  6  percent of the sales tax paid on such business property or

  7  $10,000. A refund approved pursuant to this paragraph shall be

  8  made within 30 days of formal approval by the department of

  9  the application for the refund. No refund shall be granted

10  under this paragraph unless the amount to be refunded exceeds

11  $100 in sales tax paid on purchases made within a 60-day time

12  period.

13         6.  The department shall adopt rules governing the

14  manner and form of refund applications and may establish

15  guidelines as to the requisites for an affirmative showing of

16  qualification for exemption under this paragraph.

17         7.  If the department determines that the business

18  property is used outside an enterprise zone within 3 years

19  from the date of purchase, the amount of taxes refunded to the

20  business purchasing such business property shall immediately

21  be due and payable to the department by the business, together

22  with the appropriate interest and penalty, computed from the

23  date of purchase, in the manner provided by this chapter.

24  Notwithstanding this subparagraph, business property used

25  exclusively in:

26         a.  Licensed commercial fishing vessels,

27         b.  Fishing guide boats, or

28         c.  Ecotourism guide boats

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30  that leave and return to a fixed location within an area

31  designated under s. 370.28 are eligible for the exemption

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    Florida Senate - 1998                            CS for SB 300
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  1  provided under this paragraph if all requirements of this

  2  paragraph are met. Such vessels and boats must be owned by a

  3  business that is eligible to receive the exemption provided

  4  under this paragraph. This exemption does not apply to the

  5  purchase of a vessel or boat.

  6         8.  The department shall deduct an amount equal to 10

  7  percent of each refund granted under the provisions of this

  8  paragraph from the amount transferred into the Local

  9  Government Half-cent Sales Tax Clearing Trust Fund pursuant to

10  s. 212.20 for the county area in which the business property

11  is located and shall transfer that amount to the General

12  Revenue Fund.

13         9.  For the purposes of this exemption, "business

14  property" means new or used property defined as "recovery

15  property" in s. 168(c) of the Internal Revenue Code of 1954,

16  as amended, except:

17         a.  Property classified as 3-year property under s.

18  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;

19         b.  Industrial machinery and equipment as defined in

20  sub-subparagraph (b)6.a. and eligible for exemption under

21  paragraph (b); and

22         c.  Building materials as defined in sub-subparagraph

23  (g)8.a.

24         10.  The provisions of this paragraph shall expire and

25  be void on December 31, 2005.

26         Section 3.  Subsection (4) of section 370.28, Florida

27  Statutes, is amended, and subsection (5) is added to that

28  section to read:

29         370.28  Enterprise zone designation; communities

30  adversely impacted by net limitations.--

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    Florida Senate - 1998                            CS for SB 300
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  1         (4)  Notwithstanding the enterprise zone residency

  2  requirements set out in ss. 212.096(1)(c) and 220.03(1)(q),

  3  businesses located in enterprise zones designated pursuant to

  4  this section may receive the credit provided under s. 212.096

  5  or s. 220.181 for hiring any person within the jurisdiction of

  6  the county within which nominating community of such

  7  enterprise zone is located.  All other provisions of ss.

  8  212.096, 220.03(1)(q), and 220.181 apply to such businesses.

  9  Notwithstanding the requirement specified in ss.

10  212.08(5)(g)5. and (h)5. and (15)(a) and 220.182(1)(b) that no

11  less than 20 percent of a business's employees, excluding

12  temporary and part-time employees, must be residents of an

13  enterprise zone for the business to qualify for the maximum

14  exemption or credit provided in ss. 212.08(5)(g) and (h) and

15  (15) and 220.182, a business that is located in an enterprise

16  zone designated pursuant to this section shall be qualified

17  for those maximum exemptions or credits if no less than 20

18  percent of such employees of the business are residents of the

19  jurisdiction of the county within which the enterprise zone is

20  located. All other provisions of ss. 212.08(5)(g) and (h) and

21  (15) and 220.182 apply to such business.

22         (5)  Notwithstanding the time limitations contained in

23  chapters 212 and 220, a business eligible to receive tax

24  credits under this section from January 1, 1997, to June 1,

25  1998, must submit an application for the tax credits by

26  December 1, 1998. All other requirements of the enterprise

27  zone program apply to such a business.

28         Section 4.  Subsection (7) of section 290.0055, Florida

29  Statutes, is amended to read:

30         290.0055  Local nominating procedure.--

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    Florida Senate - 1998                            CS for SB 300
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  1         (7)  Before June 30, 1999 1998, the governing body of

  2  any county operating under home rule charter adopted pursuant

  3  to s. 10, s. 11, or s. 24, Art. VIII of the Constitution of

  4  1885, as preserved by s. 6(e), Art. VIII of the Constitution

  5  of 1968, with a population of at least 2 million persons, may

  6  apply to the Office of Tourism, Trade, and Economic

  7  Development to amend the boundary lines of an enterprise zone

  8  within the county for the purpose of increasing by no more

  9  than 80 acres the noncontiguous area of the enterprise zone

10  located closest to the path where the center of the August 24,

11  1992, storm known as Hurricane Andrew crossed land. The Office

12  of Tourism, Trade, and Economic Development shall approve an

13  application made pursuant to this subsection if it is

14  consistent with the categories, criteria, and limitations

15  imposed by this section upon the establishment of such

16  enterprise zone.

17         Section 5.  Subsection (11) is added to section

18  290.0065, Florida Statutes, to read:

19         290.0065  State designation of enterprise zones.--

20         (11)  Before December 31, 1998, the governing body of a

21  county in which an enterprise zone designated pursuant to

22  paragraph (5)(b) is located may apply to the Office of

23  Tourism, Trade, and Economic Development to amend the

24  boundaries of the enterprise zone for the purpose of replacing

25  areas not suitable for development.  The Office of Tourism,

26  Trade, and Economic Development shall approve the application

27  if it does not increase the overall size of the enterprise

28  zone.  However, upon the request of the governing body of a

29  home rule charter county, or any county the government of

30  which has been consolidated with the government of one or more

31  municipalities in accordance with s. 9, Art. VIII of the

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    Florida Senate - 1998                            CS for SB 300
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  1  Constitution of 1885, as preserved by s. 6(e), Art. VIII of

  2  the State Constitution as revised in 1968 and subsequently

  3  amended, the Office of Tourism, Trade, and Economic

  4  Development may amend the boundaries of an area designated as

  5  an enterprise zone upon the receipt of a resolution adopted by

  6  such governing body describing the amended boundaries, so long

  7  as the added area does not increase the overall size of the

  8  expanded zone more than its original size or 20 square miles,

  9  whichever is larger, and is consistent with the categories,

10  criteria, and limitations imposed by s. 290.0055.

11         Section 6.  The amount of $100,000 is appropriated from

12  the General Revenue Fund to the Department of Community

13  Affairs to support the capital campaign of the Enterprise

14  Center of W.I.N., West Palm, Inc. This is a nonrecurring

15  appropriation for fiscal year 1998-1999.

16         Section 7.  There is appropriated from the General

17  Revenue Fund to the Office of Tourism, Trade, and Economic

18  Development the sum of $1.2 million for fiscal year 1998-1999

19  to be administered by Enterprise Florida and used for

20  grants-in-aid to the Technological Research and Development

21  Authority.

22         Section 8.  This act shall take effect July 1, 1998.

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    Florida Senate - 1998                            CS for SB 300
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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                              SB 300

  3

  4  This committee substitute makes several additions to SB 300.
    It:
  5
    1.   extends the period in which Dade County can apply to the
  6       Office of Tourism, Trade, and Economic Development to
         amend the boundary lines of part of its enterprise zone;
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    2.   provides that enterprise zones in home rule charter
  8       counties and Jackson and Duval Counties may apply to the
         Office of Tourism, Trade, and Economic Development to
  9       amend and in certain cases expand their enterprise zones;

10  3.   provides that a business in a net-ban enterprise zone is
         eligible for the maximum amount of certain tax credits
11       and exemptions if at least 20 percent of its employees
         are residents of the county in which the net-ban
12       enterprise zone is located, and provides that business
         property used in certain vessels or boats owned by a
13       qualified business in a net-ban enterprise zone may be
         eligible for a sales tax exemption;
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    4.   appropriates $100,000 from the General Revenue Fund to
15       the Department of Community Affairs to support an
         Enterprise Center in fiscal year 1998-99; and
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    5.   appropriates $1.2 million from the General Revenue Fund
17       to the Office of Tourism, Trade, and Economic Development
         for grants-in-aid to the Technological Research and
18       Development Authority for fiscal year 1998-99.

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