House Bill hb1735
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
By the Fiscal Responsibility Council and Representative
Johnson
1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 288.106, F.S., relating to the tax
4 refund program for qualified target industry
5 businesses; revising requirements for
6 application for certification as such business
7 with respect to the number of new jobs at the
8 business and projections by the Office of
9 Tourism, Trade, and Economic Development of
10 refunds based thereon; revising requirements
11 relating to the tax refund agreement with
12 respect to job creation and the time for filing
13 of claims for refund; revising provisions
14 relating to annual claims for refund; providing
15 an application deadline; revising provisions
16 relating to the order authorizing a tax refund;
17 specifying that nothing in said section creates
18 a presumption that a claim will be approved and
19 paid; providing applicability to tax refund
20 agreements and claims for refund executed prior
21 to the effective date of the act; revising the
22 agencies with which the office may verify
23 information and to which the office may provide
24 information; amending s. 288.980, F.S.;
25 providing that grants by the office to support
26 activities related to the retention of military
27 installations potentially affected by closure
28 or realignment must be from funds specifically
29 appropriated therefor; providing an effective
30 date.
31
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 Be It Enacted by the Legislature of the State of Florida:
2
3 Section 1. Paragraphs (a) and (d) of subsection (3),
4 paragraph (a) of subsection (4), and subsections (5) and (6)
5 of section 288.106, Florida Statutes, are amended to read:
6 288.106 Tax refund program for qualified target
7 industry businesses.--
8 (3) APPLICATION AND APPROVAL PROCESS.--
9 (a) To apply for certification as a qualified target
10 industry business under this section, the business must file
11 an application with the office before the business has made
12 the decision to locate a new business in this state or before
13 the business had made the decision to expand an existing
14 business in this state. The application shall include, but is
15 not limited to, the following information:
16 1. The applicant's federal employer identification
17 number and the applicant's state sales tax registration
18 number.
19 2. The permanent location of the applicant's facility
20 in this state at which the project is or is to be located.
21 3. A description of the type of business activity or
22 product covered by the project, including four-digit SIC codes
23 for all activities included in the project.
24 4. The number of net new full-time equivalent Florida
25 jobs at the qualified target industry business as of December
26 31 of each year included in this state that are or will be
27 dedicated to the project and the average wage of those jobs.
28 If more than one type of business activity or product is
29 included in the project, the number of jobs and average wage
30 for those jobs must be separately stated for each type of
31 business activity or product.
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 5. The total number of full-time equivalent employees
2 employed by the applicant in this state.
3 6. The anticipated commencement date of the project.
4 7. A brief statement concerning the role that the tax
5 refunds requested will play in the decision of the applicant
6 to locate or expand in this state.
7 8. An estimate of the proportion of the sales
8 resulting from the project that will be made outside this
9 state.
10 9. A resolution adopted by the governing board of the
11 county or municipality in which the project will be located,
12 which resolution recommends that certain types of businesses
13 be approved as a qualified target industry business and states
14 that the commitments of local financial support necessary for
15 the target industry business exist. In advance of the passage
16 of such resolution, the office may also accept an official
17 letter from an authorized local economic development agency
18 that endorses the proposed target industry project and pledges
19 that sources of local financial support for such project
20 exist. For the purposes of making pledges of local financial
21 support under this subsection, the authorized local economic
22 development agency shall be officially designated by the
23 passage of a one-time resolution by the local governing
24 authority.
25 10. Any additional information requested by the
26 office.
27 (d) The office shall forward its written findings and
28 evaluation concerning each application meeting the
29 requirements of paragraph (b) to the director within 45
30 calendar days after receipt of a complete application. The
31 office shall notify each target industry business when its
3
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 application is complete, and of the time when the 45-day
2 period begins. In its written report to the director, the
3 office shall specifically address each of the factors
4 specified in paragraph (c) and shall make a specific
5 assessment with respect to the minimum requirements
6 established in paragraph (b). The office shall include in its
7 report projections of the tax refunds the business would be
8 eligible to receive refund claim that will be sought by the
9 target industry business in each fiscal year based on the
10 creation and maintenance of the net new Florida jobs specified
11 in subparagraph (a)4. as of December 31 of the preceding state
12 fiscal year information submitted in the application.
13 (4) TAX REFUND AGREEMENT.--
14 (a) Each qualified target industry business must enter
15 into a written agreement with the office which specifies, at a
16 minimum:
17 1. The total number of full-time equivalent jobs in
18 this state that will be dedicated to the project, the average
19 wage of those jobs, the definitions that will apply for
20 measuring the achievement of these terms during the pendency
21 of the agreement, and a time schedule or plan for when such
22 jobs will be in place and active in this state. This
23 information must be the same as the information contained in
24 the application submitted by the business under subsection
25 (3).
26 2. The maximum amount of tax refunds which the
27 qualified target industry business is eligible to receive on
28 the project and the maximum amount of a tax refund that the
29 qualified target industry business is eligible to receive in
30 each fiscal year, based on the job creation and maintenance
31 schedule specified in subparagraph 1.
4
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 3. That the office may review and verify the financial
2 and personnel records of the qualified target industry
3 business to ascertain whether that business is in compliance
4 with this section.
5 4. The date by after which, in each fiscal year, the
6 qualified target industry business may file a an annual claim
7 under subsection (5) to be considered to receive a tax refund
8 in the following fiscal year.
9 5. That local financial support will be annually
10 available and will be paid to the account. The director may
11 not enter into a written agreement with a qualified target
12 industry business if the local financial support resolution is
13 not passed by the local governing authority within 90 days
14 after he or she has issued the letter of certification under
15 subsection (3).
16
17 Any tax refund agreement or amendment executed prior to the
18 effective date of this act shall be subject to the terms and
19 conditions specified in that agreement as dictated by the laws
20 in force at the time of execution, except with respect to
21 paragraphs (5)(e), (g), and (i).
22 (5) ANNUAL CLAIM FOR REFUND.--
23 (a) To be eligible to claim any scheduled tax refund,
24 a qualified target industry business that has entered into a
25 tax refund agreement with the office under subsection (4) must
26 may apply by January 31 of once each fiscal year to the office
27 for the a tax refund scheduled to be paid from the
28 appropriation for the fiscal year which begins on July 1
29 following the January 31 claims submission date. The office
30 may, upon written request, grant a 30-day extension of the
31
5
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 filing date. The application must be made on or after the date
2 specified in that agreement.
3 (b) The claim for refund by the qualified target
4 industry business must include a copy of all receipts
5 pertaining to the payment of taxes for which the refund is
6 sought and data related to achievement of each performance
7 item specified in the tax refund agreement. The amount
8 requested as a tax refund may not exceed the amount specified
9 for the relevant that fiscal year in that agreement.
10 (c) A tax refund may not be approved for a qualified
11 target industry business unless the required local financial
12 support has been paid into the account for that refund in that
13 fiscal year. If the local financial support provided is less
14 than 20 percent of the approved tax refund, the tax refund
15 must be reduced. In no event may the tax refund exceed an
16 amount that is equal to 5 times the amount of the local
17 financial support received. Further, funding from local
18 sources includes any tax abatement granted to that business
19 under s. 196.1995 or the appraised market value of municipal
20 or county land conveyed or provided at a discount to that
21 business. The amount of any tax refund for such business
22 approved under this section must be reduced by the amount of
23 any such tax abatement granted or the value of the land
24 granted; and the limitations in subsection (2) and paragraph
25 (3)(f) must be reduced by the amount of any such tax abatement
26 or the value of the land granted. A report listing all sources
27 of the local financial support shall be provided to the office
28 when such support is paid to the account.
29 (d) A prorated tax refund, less a 5-percent penalty,
30 shall be approved for a qualified target industry business
31 provided all other applicable requirements have been satisfied
6
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 and the business proves to the satisfaction of the director
2 that it has achieved at least 80 percent of its projected
3 employment.
4 (e) The director, with such assistance as may be
5 required from the office, the Department of Revenue, or the
6 Agency for Workforce Innovation Department of Labor and
7 Employment Security, shall, by June 30 following the scheduled
8 date for the tax refund claim submission, specify by written
9 final order the approval or disapproval of the tax refund
10 claim and, if approved, the amount of the tax refund that is
11 authorized to be paid to for the qualified target industry
12 business for the fiscal year within 30 days after the date
13 that the claim for the annual tax refund is received by the
14 office. The office may grant an extension of this date on the
15 request of the qualified target industry business for the
16 purpose of filing additional information in support of the
17 claim.
18 (f) The total amount of tax refund claims approved by
19 the director under this section in any fiscal year must not
20 exceed the amount authorized under s. 288.095(3).
21 (g) Nothing in this section shall create a presumption
22 that a scheduled tax refund claim will be approved and paid.
23 (h)(g) Upon approval of the tax refund under
24 paragraphs (c), (d), and (e), the Comptroller shall issue a
25 warrant for the amount specified in the final order. If the
26 final order is appealed, the Comptroller may not issue a
27 warrant for a refund to the qualified target industry business
28 until the conclusion of all appeals of that order.
29 (i) Claims authorized in tax refund agreements or
30 amendments executed prior to the effective date of this act
31 shall be filed and evaluated under the terms and conditions
7
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 specified in those agreements or amendments and the laws in
2 effect at the time of execution, unless amended after that
3 date.
4 (6) ADMINISTRATION.--
5 (a) The office is authorized to verify information
6 provided in any claim submitted for tax credits under this
7 section with regard to employment and wage levels or the
8 payment of the taxes to the appropriate agency or authority,
9 including the Department of Revenue, the Agency for Workforce
10 Innovation Department of Labor and Employment Security, or any
11 local government or authority.
12 (b) To facilitate the process of monitoring and
13 auditing applications made under this program, the office may
14 provide a list of qualified target industry businesses to the
15 Department of Revenue, to the Agency for Workforce Innovation
16 Department of Labor and Employment Security, or to any local
17 government or authority. The office may request the assistance
18 of those entities with respect to monitoring the payment of
19 the taxes listed in subsection (2).
20 Section 2. Paragraph (a) of subsection (2) of section
21 288.980, Florida Statutes, is amended to read:
22 288.980 Military base retention; legislative intent;
23 grants program.--
24 (2)(a) The Office of Tourism, Trade, and Economic
25 Development is authorized to award grants from any funds
26 specifically appropriated available to it to support
27 activities related to the retention of military installations
28 potentially affected by federal base closure or realignment.
29 Section 3. This act shall take effect upon becoming a
30 law.
31
8
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 1735
187-893-01
1 *****************************************
2 HOUSE SUMMARY
3
Revises provisions relating to the tax refund program for
4 qualified target industry businesses. Revises
requirements for application for certification as such
5 business with respect to the number of new jobs at the
business and projections by the Office of Tourism, Trade,
6 and Economic Development of refunds based thereon.
Revises requirements relating to the tax refund agreement
7 with respect to job creation and the time for filing of
claims for refund. Revises provisions relating to annual
8 claims for refund. Provides an application deadline.
Revises provisions relating to the order authorizing a
9 tax refund. Specifies that nothing in said provisions
creates a presumption that a claim will be approved and
10 paid. Provides applicability to tax refund agreements and
claims for refund executed prior to the effective date of
11 the act. Revises the agencies with which the office may
verify information and to which the office may provide
12 information.
13
Provides that grants by the office to support activities
14 related to the retention of military installations
potentially affected by closure or realignment must be
15 from funds specifically appropriated therefor.
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
9
CODING: Words stricken are deletions; words underlined are additions.