Senate Bill 2548
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1999 SB 2548
By Senator King
8-1808-99 See HB
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.
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19 Be It Enacted by the Legislature of the State of Florida:
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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 Senate - 1999 SB 2548
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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 Senate - 1999 SB 2548
8-1808-99 See HB
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 Senate - 1999 SB 2548
8-1808-99 See HB
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 Senate - 1999 SB 2548
8-1808-99 See HB
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.
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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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