Senate Bill 2578c1
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Florida Senate - 2000 CS for SB 2578
By the Committee on Fiscal Resource and Senator Hargrett
314-2068-00
1 A bill to be entitled
2 An act relating to neighborhood revitalization;
3 amending s. 212.08, F.S.; providing an
4 exemption from the tax on sales, use, and other
5 transactions for building materials used in the
6 construction of certain single-family homes
7 located in an enterprise zone, empowerment
8 zone, or Front Porch Florida Community;
9 providing an exemption from the tax on sales,
10 use, and other transactions for building
11 materials used in the construction of specified
12 redevelopment projects; providing requirements
13 for refund applications; providing for rules;
14 directing the agencies involved with specified
15 housing programs to give priority consideration
16 to specified projects in urban-core
17 neighborhoods; directing the Department of
18 Community Affairs to propose modifications to
19 the Brownfields Redevelopment Act for
20 consideration by the Legislature; providing an
21 effective date.
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23 WHEREAS, Florida's urban-core neighborhoods continue to
24 have inadequate supplies of affordable housing units, and
25 WHEREAS, these same neighborhoods contain vacant or
26 abandoned industrial and manufacturing facilities, and
27 WHEREAS, vacant and dilapidated structures can have a
28 blighting influence on the neighborhood, and
29 WHEREAS, the opportunity exists to convert these vacant
30 or abandoned industrial and manufacturing facilities into
31 alternative housing options, such as loft apartments, and
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Florida Senate - 2000 CS for SB 2578
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1 WHEREAS, the opportunity exists to convert these vacant
2 or abandoned industrial and manufacturing facilities into
3 mixed-use facilities that include businesses in the art,
4 entertainment, and related fields, thereby attracting tourists
5 and other visitors to the neighborhoods and encouraging
6 individuals who work in such fields to reside in those
7 neighborhoods, and
8 WHEREAS, the Legislature finds that the state should
9 encourage adaptive reuse of existing buildings in these
10 core-urban neighborhoods, NOW, THEREFORE,
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12 Be It Enacted by the Legislature of the State of Florida:
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14 Section 1. Paragraphs (n) and (o) are added to
15 subsection (5) of section 212.08, Florida Statutes, to read:
16 212.08 Sales, rental, use, consumption, distribution,
17 and storage tax; specified exemptions.--The sale at retail,
18 the rental, the use, the consumption, the distribution, and
19 the storage to be used or consumed in this state of the
20 following are hereby specifically exempt from the tax imposed
21 by this chapter.
22 (5) EXEMPTIONS; ACCOUNT OF USE.--
23 (n) Materials for construction of single-family homes
24 in certain areas.--
25 1. As used in this paragraph, the term:
26 a. "Building materials" means tangible personal
27 property that becomes a component part of a qualified home.
28 b. "Qualified home" means a single-family home having
29 an appraised value of no more than $160,000 which is located
30 in an enterprise zone, empowerment zone, or Front Porch
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Florida Senate - 2000 CS for SB 2578
314-2068-00
1 Florida Community and which is constructed and occupied by the
2 owner thereof for residential purposes.
3 c. "Substantially completed" has the same meaning as
4 provided in s. 192.042(1).
5 2. Building materials used in the construction of a
6 qualified home and the costs of labor associated with the
7 construction of a qualified home are exempt from the tax
8 imposed by this chapter upon an affirmative showing to the
9 satisfaction of the department that the requirements of this
10 paragraph have been met. This exemption inures to the owner
11 through a refund of previously paid taxes. To receive this
12 refund, the owner must file an application under oath with the
13 department which includes:
14 a. The name and address of the owner.
15 b. The address and assessment roll parcel number of
16 the home for which a refund is sought.
17 c. A copy of the building permit issued for the home.
18 d. A certification by the local building inspector
19 that the home is substantially completed.
20 e. A sworn statement, under penalty of perjury, from
21 the general contractor licensed in this state with whom the
22 owner contracted to construct the home, which statement lists
23 the building materials used in the construction of the home
24 and the actual cost thereof, the labor costs associated with
25 such construction, and the amount of sales tax paid on these
26 materials and labor costs. If a general contractor was not
27 used, the owner shall provide this information in a sworn
28 statement, under penalty of perjury. Copies of invoices
29 evidencing payment of sales tax must be attached to the sworn
30 statement.
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Florida Senate - 2000 CS for SB 2578
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1 f. A sworn statement, under penalty of perjury, from
2 the owner affirming that he or she is occupying the home for
3 residential purposes.
4 3. An application for a refund under this paragraph
5 must be submitted to the department within 6 months after the
6 date the home is deemed to be substantially completed by the
7 local building inspector. Within 30 working days after receipt
8 of the application, the department shall determine if it meets
9 the requirements of this paragraph. A refund approved pursuant
10 to this paragraph shall be made within 30 days after formal
11 approval of the application by the department. The provisions
12 of s. 212.095 do not apply to any refund application made
13 under this paragraph.
14 4. The department shall establish by rule an
15 application form and criteria for establishing eligibility for
16 exemption under this paragraph.
17 5. The exemption shall apply to purchases of materials
18 on or after July 1, 2000.
19 (o) Building materials in redevelopment projects.--
20 1. As used in this paragraph, the term:
21 a. "Building materials" means tangible personal
22 property that becomes a component part of a housing project or
23 a mixed-use project.
24 b. "Housing project" means the conversion of an
25 existing manufacturing or industrial building to housing units
26 in an urban high-crime area, enterprise zone, empowerment
27 zone, Front Porch Community, designated brownfield area, or
28 urban infill area and in which the developer agrees to set
29 aside at least 20 percent of the housing units in the project
30 for low-income and moderate-income persons.
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Florida Senate - 2000 CS for SB 2578
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1 c. "Mixed-use project" means the conversion of an
2 existing manufacturing or industrial building to mixed-use
3 units that include artists' studios, art and entertainment
4 services, or other compatible uses. A mixed-use project must
5 be located in an urban high-crime area, enterprise zone,
6 empowerment zone, Front Porch Community, designated brownfield
7 area, or urban infill area and the developer must agree to set
8 aside at least 20 percent of the square footage of the project
9 for low-income and moderate-income housing.
10 d. "Substantially completed" has the same meaning as
11 provided in s. 192.042(1).
12 2. Building materials used in the construction of a
13 housing project or mixed-use project are exempt from the tax
14 imposed by this chapter upon an affirmative showing to the
15 satisfaction of the department that the requirements of this
16 paragraph have been met. This exemption inures to the owner
17 through a refund of previously paid taxes. To receive this
18 refund, the owner must file an application under oath with the
19 department which includes:
20 a. The name and address of the owner.
21 b. The address and assessment roll parcel number of
22 the project for which a refund is sought.
23 c. A copy of the building permit issued for the
24 project.
25 d. A certification by the local building inspector
26 that the project is substantially completed.
27 e. A sworn statement, under penalty of perjury, from
28 the general contractor licensed in this state with whom the
29 owner contracted to construct the project, which statement
30 lists the building materials used in the construction of the
31 project and the actual cost thereof, and the amount of sales
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Florida Senate - 2000 CS for SB 2578
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1 tax paid on these materials. If a general contractor was not
2 used, the owner shall provide this information in a sworn
3 statement, under penalty of perjury. Copies of invoices
4 evidencing payment of sales tax must be attached to the sworn
5 statement.
6 3. An application for a refund under this paragraph
7 must be submitted to the department within 6 months after the
8 date the project is deemed to be substantially completed by
9 the local building inspector. Within 30 working days after
10 receipt of the application, the department shall determine if
11 it meets the requirements of this paragraph. A refund approved
12 pursuant to this paragraph shall be made within 30 days after
13 formal approval of the application by the department. The
14 provisions of s. 212.095 do not apply to any refund
15 application made under this paragraph.
16 4. The department shall establish by rule an
17 application form and criteria for establishing eligibility for
18 exemption under this paragraph.
19 5. The exemption shall apply to purchases of materials
20 on or after July 1, 2000.
21 Section 2. The agencies involved with the Urban Infill
22 Implementation Project Grants Program under section 163.2523,
23 Florida Statutes, the State Apartment Incentive Loan Program
24 under section 420.5087, Florida Statutes, the HOME Investment
25 Partnership Program under section 420.5089, Florida Statutes,
26 and the State Housing Tax Credit Program under section
27 420.5093, Florida Statutes, shall give priority consideration
28 to projects that would convert vacant industrial and
29 manufacturing facilities to affordable housing units within
30 urban high-crime areas, enterprise zones, empowerment zones,
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Florida Senate - 2000 CS for SB 2578
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1 Front Porch Communities, designated brownfield areas, or urban
2 infill areas.
3 Section 3. The Department of Community Affairs, in
4 conjunction with the Office of Tourism, Trade, and Economic
5 Development, the Office of Urban Opportunities, and Enterprise
6 Florida, Inc., shall recommend new economic incentives or
7 revisions to existing economic incentives in order to promote
8 the reuse of vacant industrial and manufacturing facilities
9 for affordable housing and mixed-use development. The report
10 must also identify any state regulatory or programmatic
11 barriers to the reuse of such facilities. The department
12 shall submit a report to the President of the Senate and the
13 Speaker of the House of Representatives containing its
14 recommendations by January 31, 2001. Based upon consultation
15 with the Department of Environmental Protection, the
16 department shall include, as a component of the report, any
17 recommended modifications to the Brownfields Redevelopment
18 Act, sections 376.77-376.85, Florida Statutes, for revising
19 liability protection or economic incentives under the act to
20 promote reuse of such facilities.
21 Section 4. This act shall take effect upon becoming a
22 law.
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Florida Senate - 2000 CS for SB 2578
314-2068-00
1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 SB 2578
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4 This committee substitute limits homes eligible for a sales
tax exemption for building materials on the basis of appraised
5 value rather than assessed value.
6 It includes designated brownfield areas in the list of areas
eligible for the sales tax exemption for building materials
7 for new homes and mixed use developments.
8 It provides that the exemption applies to purchases made on or
after July 1, 2000.
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It changes the list of eligible mixed use developments to
10 artists' studios, art and entertainment services, or other
compatible uses.
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