House Bill 1963

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    Florida House of Representatives - 1999                HB 1963

        By Representative Dennis






  1                      A bill to be entitled

  2         An act relating to enterprise zones; creating

  3         s. 290.0069, F.S.; directing the Office of

  4         Tourism, Trade, and Economic Development to

  5         designate a pilot project area within an

  6         enterprise zone; providing qualifications for

  7         such area; providing that certain businesses in

  8         such area are eligible for credits against the

  9         tax on sales, use, and other transactions and

10         corporate income tax; providing for computation

11         of such credits; providing application

12         procedures and requirements; providing

13         rulemaking authority; requiring a review and

14         report by the Office of Program Policy Analysis

15         and Government Accountability; providing for

16         future repeal and revocation of such

17         designation; providing an effective date.

18

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

20

21         Section 1.  Section 290.0069, Florida Statutes, is

22  created to read:

23         290.0069  Designation of enterprise zone pilot project

24  area.--

25         (1)  The Office of Tourism, Trade, and Economic

26  Development shall designate one pilot project area within one

27  state enterprise zone. The Office of Tourism, Trade, and

28  Economic Development shall select a pilot project area by July

29  1, 1999, which meets the following qualifications:

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    Florida House of Representatives - 1999                HB 1963

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  1         (a)  The area is contained within an enterprise zone

  2  that is composed of one contiguous area and is placed in the

  3  category delineated in s. 290.0065(3)(a)1.

  4         (b)  The local government having jurisdiction over the

  5  enterprise zone grants economic development ad valorem tax

  6  exemptions in the enterprise zone pursuant to s. 196.1995, and

  7  electrical energy public service tax exemptions pursuant to s.

  8  166.231(8).

  9         (c)  The local government having jurisdiction over the

10  enterprise zone has developed a plan for revitalizing the

11  pilot project area or for revitalizing an area within the

12  enterprise zone that contains the pilot project area, and has

13  committed at least $5 million to redevelop an area including

14  the pilot project area.

15         (d)  The pilot project area is contiguous and is

16  limited to no more than 70 acres, or equivalent square miles,

17  to avoid a dilution of additional state assistance and

18  effectively concentrate these additional resources on

19  revitalizing the acute area of economic distress.

20         (e)  The pilot project area contains a diverse cluster

21  or grouping of facilities or space for a mix of retail,

22  restaurant, or service related businesses necessary to an

23  overall revitalization of surrounding neighborhoods through

24  community involvement, investment, and enhancement of

25  employment markets.

26         (2)(a)  Beginning December 1, 1999, no more than four

27  businesses located within the pilot project area are eligible

28  for a credit against any tax due for a taxable year under

29  chapters 212 and 220.

30         (b)  The credit shall be computed as $5,000 times the

31  number of full-time employees of the business and $2,500 times

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    Florida House of Representatives - 1999                HB 1963

    511-150-99






  1  the number of part-time employees of the business. For

  2  purposes of this section, a person shall be deemed to be

  3  employed by such a business on a full-time basis if the person

  4  performs duties in connection with the operations of the

  5  business for an average of at least 36 hours per week each

  6  month, or on a part-time basis if the person is performing

  7  such duties for an average of at least 20 hours per week each

  8  month throughout the year. The person must be performing such

  9  duties at a business site located in the pilot project area.

10         (c)  The total amount of tax credits that may be

11  granted under this section is $1 million annually. In the

12  event the Office of Tourism, Trade, and Economic Development

13  receives applications that total more than $1 million in any

14  year, the director shall prorate the amount of tax credit each

15  applicant is eligible to receive to ensure that all eligible

16  applicants receive a tax credit.

17         (d)  In order to be eligible to apply to the Office of

18  Tourism, Trade, and Economic Development for tax credits under

19  this section a business must:

20         1.  Have entered into a contract with the developer of

21  the diverse cluster or grouping of facilities or space located

22  in the pilot project area, governing lease of commercial space

23  in a facility.

24         2.  Have commenced operations in the facility after

25  July 1, 1999, and before July 1, 2000.

26         3.  Be a business predominantly engaged in activities

27  usually provided for consideration by firms classified under

28  the Standard Industrial Classification Manual Industry Number

29  5311, Industry Number 5399, or Industry Number 7832.

30         (e)  All applications for the granting of the tax

31  credits allowed under this section shall require the prior

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    Florida House of Representatives - 1999                HB 1963

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  1  approval of the director of the Office of Tourism, Trade, and

  2  Economic Development. The director shall establish one

  3  submittal date each year for the receipt of applications for

  4  such tax credits.

  5         (f)  Any business wishing to receive tax credits

  6  pursuant to this section must submit an application to the

  7  Office of Tourism, Trade, and Economic Development which sets

  8  forth the business name and address and the number of

  9  employees of the business.

10         (g)  The decision of the director shall be in writing,

11  and, if approved, the application shall state the maximum

12  credits allowable to the business. A copy of the decision

13  shall be transmitted to the executive director of the

14  Department of Revenue, who shall apply such credits to the tax

15  liabilities of the business firm.

16         (h)  If any credit granted pursuant to this section is

17  not fully used in any one year because of insufficient tax

18  liability on the part of the business, the unused amount may

19  be carried forward for a period not to exceed 5 years.

20         (4)  The Office of Tourism, Trade, and Economic

21  Development is authorized to adopt all rules necessary to

22  administer this section, including rules for the approval or

23  disapproval of applications for tax incentives by businesses.

24         (5)  The Department of Revenue shall adopt any rules

25  necessary to ensure the orderly implementation and

26  administration of this section.

27         (6)  For purposes of this section, "business" and

28  "taxable year" shall have the same meaning as in s. 220.03.

29         (7)  Prior to the 2001 Regular Session of the

30  Legislature, the Office of Program Policy Analysis and

31  Government Accountability shall review and evaluate the

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    Florida House of Representatives - 1999                HB 1963

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  1  effectiveness and viability of the pilot project area created

  2  under this section, using the research design prescribed

  3  pursuant to s. 290.015. The office shall specifically evaluate

  4  whether relief from certain taxes induced new investment and

  5  development in the area, increased the number of jobs created

  6  or retained in the area, induced the renovation,

  7  rehabilitation, restoration, improvement, or new construction

  8  of businesses or housing within the area, and contributed to

  9  the economic viability and profitability of business and

10  commerce located within the area. The office shall submit a

11  report of its findings and recommendations to the Speaker of

12  the House of Representatives and the President of the Senate

13  no later than January 15, 2001.

14         (8)  This section shall stand repealed on June 30,

15  2015, and any designation made pursuant to this section shall

16  be revoked on that date.

17         Section 2.  This act shall take effect upon becoming a

18  law.

19

20            *****************************************

21                          HOUSE SUMMARY

22
      Directs the Office of Tourism, Trade, and Economic
23    Development to designate a pilot project area within an
      enterprise zone and specifies qualifications such area
24    must meet. Provides that up to four businesses within
      such area are eligible for credits against the sales tax
25    and corporate income tax, computed on the basis of the
      number of employees of the business. Limits the amount of
26    such credits to $1 million annually. Provides eligibility
      requirements for such businesses and application
27    requirements and procedures. Requires a review and report
      by the Office of Program Policy Analysis and Government
28    Accountability. Provides for revocation of such
      designation in 2015.
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