House Bill 0245c1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000              CS/HB 245

        By the Committee on Community Affairs and Representatives
    Bradley and Ritchie





  1                      A bill to be entitled

  2         An act relating to tax on sales, use, and other

  3         transactions; amending s. 212.08, F.S.;

  4         providing an exemption for building materials

  5         used in the rehabilitation of real property

  6         located in a Front Porch Florida Community;

  7         providing for application to governmental

  8         agencies under certain conditions; providing

  9         requirements for refund applications; providing

10         for review and certification of applications by

11         the Office of Urban Opportunity within the

12         Office of Tourism, Trade, and Economic

13         Development; providing limitations; providing

14         duties of the Department of Revenue; providing

15         for certain deductions from amounts deposited

16         in the Local Government Half-cent Sales Tax

17         Clearing Trust Fund; providing for rules;

18         providing definitions; providing for

19         expiration; providing an effective date.

20

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

22

23         Section 1.  Paragraph (n) is added to subsection (5) of

24  section 212.08, Florida Statutes, to read:

25         212.08  Sales, rental, use, consumption, distribution,

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

27  the rental, the use, the consumption, the distribution, and

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

29  following are hereby specifically exempt from the tax imposed

30  by this chapter.

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

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000              CS/HB 245

    171-639-00






  1         (n)  Building materials used in the rehabilitation of

  2  real property located in a Front Porch Florida Community.--

  3         1.  Building materials used in the rehabilitation of

  4  real property located in a Front Porch Florida Community

  5  shall be exempt from the tax imposed by this chapter upon an

  6  affirmative showing to the satisfaction of the department that

  7  the items have been used for the rehabilitation of real

  8  property located in a Front Porch Florida Community. Except as

  9  provided in subparagraph 2., this exemption inures to the

10  owner, lessee, or lessor of the rehabilitated real property

11  located in a Front Porch Florida Community only through a

12  refund of previously paid taxes. To receive a refund pursuant

13  to this paragraph, the owner, lessee, or lessor of the

14  rehabilitated real property located in a Front Porch Florida

15  Community must file an application under oath with the Office

16  of Urban Opportunity within the Office of Tourism, Trade, and

17  Economic Development, which includes:

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

19  refund.

20         b.  An address and assessment role parcel number of the

21  rehabilitated real property in a Front Porch Florida Community

22  for which a refund of previously paid taxes is being sought.

23         c.  A description of the improvements made to

24  accomplish the rehabilitation of the real property.

25         d.  A copy of the building permit issued for the

26  rehabilitation of the real property.

27         e.  A sworn statement, under the penalty of perjury,

28  from the general contractor licensed in this state with whom

29  the applicant contracted to make the improvements necessary to

30  accomplish the rehabilitation of the real property, which

31  statement lists the building materials used in the

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000              CS/HB 245

    171-639-00






  1  rehabilitation of the real property, the actual cost of the

  2  building materials, and the amount of sales tax paid in this

  3  state on the building materials. In the event that a general

  4  contractor has not been used, the applicant shall provide this

  5  information in a sworn statement, under the penalty of

  6  perjury.  Copies of the invoices which evidence the purchase

  7  of the building materials used in such rehabilitation and the

  8  payment of sales tax on the building materials shall be

  9  attached to the sworn statement provided by the general

10  contractor or by the applicant.  Unless the actual cost of

11  building materials used in the rehabilitation of real property

12  and the payment of sales taxes due thereon is documented by a

13  general contractor or by the applicant in this manner, the

14  cost of such building materials shall be an amount equal to 40

15  percent of the increase in assessed value for ad valorem tax

16  purposes.

17         f.  The Front Porch Florida Community in which the

18  rehabilitated real property is located.

19         g.  A certification by the local building inspector

20  that the improvements necessary to accomplish the

21  rehabilitation of the real property are substantially

22  completed.

23         h.  If applicable, whether the business is a small

24  business as defined by s. 288.703(l).

25         i.  If applicable, the name and address of each

26  permanent employee of the business, including, for each

27  employee who is a resident of a Front Porch Florida Community,

28  the name of the Front Porch Florida Community in which the

29  employee resides.

30         2.  This exemption inures to a city, county, or other

31  governmental agency through a refund of previously paid taxes

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000              CS/HB 245

    171-639-00






  1  if the building materials used in the rehabilitation of real

  2  property located in a Front Porch Florida Community are paid

  3  for from the funds of a community development block grant or

  4  similar grant or loan program. To receive a refund pursuant to

  5  this paragraph, a city, county, or other governmental agency

  6  must file an application which includes the same information

  7  required to be provided in subparagraph 1. by an owner,

  8  lessee, or lessor of rehabilitated real property. In addition,

  9  the application must include a sworn statement signed by the

10  chief executive officer of the city, county, or other

11  governmental agency seeking a refund which states that the

12  building materials for which a refund is sought were paid for

13  from the funds of a community development block grant or

14  similar grant or loan program.

15         3.  Within 10 working days after receipt of an

16  application, the Office of Urban Opportunity within the Office

17  of Tourism, Trade, and Economic Development shall review the

18  application to determine if it contains all the information

19  required pursuant to subparagraph 1. or subparagraph 2. and

20  meets the criteria set out in this paragraph. The Office of

21  Urban Opportunity shall certify all applications that contain

22  the information required pursuant to subparagraph 1. or

23  subparagraph 2. and meet the criteria set out in this

24  paragraph as eligible to receive a refund. If applicable, the

25  Office of Urban Opportunity shall also certify if 20 percent

26  of the employees of the business are residents of a Front

27  Porch Florida Community, excluding temporary and part-time

28  employees. The certification shall be in writing, and a copy

29  of the certification shall be transmitted to the executive

30  director of the Department of Revenue. The applicant shall be

31

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000              CS/HB 245

    171-639-00






  1  responsible for forwarding a certified application to the

  2  department within the time specified in subparagraph 4.

  3         4.  An application for a refund pursuant to this

  4  paragraph must be submitted to the department within 6 months

  5  after the rehabilitation of the property is deemed to be

  6  substantially completed by the local building inspector.

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

  8  refund application made pursuant to this paragraph. No more

  9  than one exemption through a refund of previously paid taxes

10  for the rehabilitation of real property shall be permitted for

11  any one parcel of real property.  No refund shall be granted

12  pursuant to this paragraph unless the amount to be refunded

13  exceeds $500.  No refund granted pursuant to this paragraph

14  shall exceed the lesser of 97 percent of the Florida sales or

15  use tax paid on the cost of the building materials used in the

16  rehabilitation of the real property as determined pursuant to

17  sub-subparagraph 1.e. or $10,000, or, if no less than 20

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

19  Front Porch Florida Community, excluding temporary and

20  part-time employees, the amount of refund granted pursuant to

21  this paragraph shall not exceed the lesser of 97 percent of

22  the sales tax paid on the cost of such building materials or

23  $20,000.  A refund approved pursuant to this paragraph shall

24  be made within 30 days of formal approval by the department of

25  the application for the refund.

26         6.  The department shall adopt rules governing the

27  manner and form of refund applications and may establish

28  guidelines as to the requisites for an affirmative showing of

29  qualification for exemption under this paragraph.

30         7.  The department shall deduct an amount equal to 10

31  percent of each refund granted under the provisions of this

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2000              CS/HB 245

    171-639-00






  1  paragraph from the amount transferred into the Local

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

  3  s. 212.20 for the county area in which the rehabilitated real

  4  property is located and shall transfer that amount to the

  5  General Revenue Fund.

  6         8.  For the purposes of the exemption provided in this

  7  paragraph:

  8         a.  "Building materials" means tangible personal

  9  property which becomes a component part of improvements to

10  real property.

11         b.  "Real property" has the same meaning as provided in

12  s. 192.001(12).

13         c.  "Rehabilitation of real property" means the

14  reconstruction, renovation, restoration, rehabilitation,

15  construction, or expansion of improvements to real property.

16         d.  "Substantially completed" has the same meaning as

17  provided in s. 192.042(1).

18         9.  The provisions of this paragraph shall expire and

19  be void on December 31, 2005.

20         Section 2.  This act shall take effect July 1, 2000.

21

22

23

24

25

26

27

28

29

30

31

                                  6