Senate Bill sb1186e1
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1 A bill to be entitled
2 An act relating to economic development;
3 amending s. 212.055, F.S.; providing for the
4 levy of the infrastructure sales surtax and the
5 school capital outlay surtax by a two-thirds
6 vote and requiring certain educational facility
7 planning prior to the levy of the school
8 capital outlay surtax; providing for the uses
9 of the surtax proceeds; amending s. 288.0655,
10 F.S.; providing for additional uses of moneys
11 in the Rural Infrastructure Fund; amending s.
12 288.095, F.S.; revising terminology relating to
13 certain incentive payment schedules; revising
14 the due date and content for an annual report
15 on incentives and reassigning responsibility
16 for such report to Enterprise Florida, Inc.;
17 amending s. 288.1045, F.S.; revising
18 definitions; revising conditions and procedures
19 governing applications for tax refunds;
20 revising provisions relating to the order
21 authorizing a tax refund; revising the required
22 elements of a tax refund agreement; providing
23 an exemption from mandatory loss of tax refund
24 eligibility and decertification resulting from
25 agreement breach in cases of uncontrollable
26 economic factors; prescribing a deadline for
27 applying for tax refunds; authorizing the
28 office to grant extensions to certain
29 application and notification deadlines;
30 revising conditions under which a prorated tax
31 refund will be approved; providing for
1
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1 calculation of such prorated refund; specifying
2 that the section does not create a presumption
3 a claim will be approved and paid; revising the
4 agencies with which the office may verify
5 information and to which the office may provide
6 information; expanding purposes for which the
7 office may seek assistance from certain
8 entities; specifying that certain
9 appropriations may not be used for any purpose
10 other than the payment of specified tax
11 refunds; amending s. 288.106, F.S., relating to
12 the tax refund program for qualified target
13 industry businesses; revising requirements for
14 application for certification as such business
15 with respect to the number of current and new
16 jobs at the business and projections by the
17 Office of Tourism, Trade, and Economic
18 Development of refunds based thereon; revising
19 requirements relating to the tax refund
20 agreement with respect to job creation and the
21 time for filing of claims for refund; providing
22 for an exemption from mandatory loss of tax
23 refund eligibility and decertification
24 resulting from agreement breach in cases of
25 uncontrollable economic factors; revising
26 provisions relating to annual claims for
27 refund; authorizing an extension of time for
28 signing the tax refund agreement; providing an
29 application deadline; revising provisions
30 relating to the order authorizing a tax refund;
31 revising conditions under which a prorated tax
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1 refund will be approved; providing for
2 calculation of such prorated tax refund;
3 specifying that the section does not create a
4 presumption that a claim will be approved and
5 paid; revising the agencies with which the
6 office may verify information and to which the
7 office may provide information; expanding
8 purposes for which the office may seek
9 assistance from certain entities; specifying
10 that certain appropriations may not be used for
11 any purpose other than the payment of specified
12 tax refunds; amending s. 213.053, F.S.;
13 authorizing the Department of Revenue to
14 provide certain information concerning
15 specified tax-refund programs with the Office
16 of Tourism, Trade, and Economic Development and
17 specified agents; providing a short title;
18 amending s. 125.0104, F.S.; providing that the
19 additional tax authorized for bonds for a
20 professional sports franchise facility, a
21 retained spring training franchise facility, or
22 a convention center, and for operation and
23 maintenance costs of a convention center, and
24 the additional tax authorized for bonds for
25 facilities for a new professional sports
26 franchise or a retained spring training
27 franchise, may also be used to promote and
28 advertise tourism; providing for earlier effect
29 and retroactive application of s. 197.1722,
30 F.S., relating to a limited waiver of certain
31 mandatory charges and interest on certain real
3
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1 property taxes; authorizing certain counties to
2 apply for amendment of enterprise zone boundary
3 lines; providing deadlines; prescribing
4 conditions applicable to the areas proposed for
5 addition to the enterprise zones; directing the
6 Office of Tourism, Trade, and Economic
7 Development to approve such amendments under
8 certain conditions; providing for application
9 of this act; creating s. 290.00686, F.S.;
10 authorizing the Office of Tourism, Trade, and
11 Economic Development to designate an enterprise
12 zone in Brevard County; providing requirements
13 with respect thereto; authorizing the City of
14 Pensacola to apply to the Office of Tourism,
15 Trade, and Economic Development to designate an
16 enterprise zone in the City of Pensacola;
17 authorizing the office to designate one
18 enterprise zone in the City of Pensacola;
19 providing requirements with respect thereto;
20 authorizing Leon County, or Leon County and the
21 City of Tallahassee jointly, to apply to the
22 Office of Tourism, Trade, and Economic
23 Development to designate an enterprise zone in
24 Leon County; authorizing the office to
25 designate one enterprise zone notwithstanding
26 certain limitations; providing requirements
27 with respect thereto; creating s. 11.35, F.S.;
28 creating the Joint Legislative Committee on Tax
29 Exemptions; providing for its membership and
30 prescribing its duties; requiring it to
31 periodically review and make recommendations
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1 concerning tax exemptions prescribed in ch.
2 212, F.S.; creating s. 212.25, F.S.; providing
3 for the periodic expiration and review of tax
4 exemptions under ch. 212, F.S.; providing that
5 sales of goods or services that are neither
6 expressly taxable nor expressly exempt from
7 taxation by a specified date become taxable;
8 exempting specified transactions from taxation
9 and from the the expiration and review
10 requirements of the act; providing effective
11 dates.
12
13 WHEREAS, the Legislature has identified a crisis in the
14 economy which compels the Legislature to take a broad and
15 comprehensive approach to economic development, addressing its
16 many facets, including both economic stimulus and the state's
17 tax policy, and
18 WHEREAS, the Legislature recognizes the obvious natural
19 and logical connection between economic development and the
20 distribution of the tax burden among the diverse segments of
21 the economy, and
22 WHEREAS, the Legislature seeks by this legislation to
23 accomplish goals that are not separate or disassociated
24 objects of legislative effort, but that are integrated and
25 dependent elements of a comprehensive approach to a rational
26 economic policy that will fairly and equitably promote
27 economic development throughout the diverse segments of the
28 economy, and
29 WHEREAS, the Legislature, as part of this comprehensive
30 approach to a rational economic policy, seeks to create a
31 process by which the Legislature will periodically review, on
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1 an orderly schedule, the array of tax exemptions and identify
2 those that serve as a widespread stimulus to the economy and
3 those that hamper economic development by unfairly
4 distributing the tax burden or giving an undue competitive
5 advantage to a business over others similarly situated, NOW,
6 THEREFORE,
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Paragraphs (a) and (d) of subsection (2)
11 and subsection (6) of section 212.055, Florida Statutes, are
12 amended to read:
13 212.055 Discretionary sales surtaxes; legislative
14 intent; authorization and use of proceeds.--It is the
15 legislative intent that any authorization for imposition of a
16 discretionary sales surtax shall be published in the Florida
17 Statutes as a subsection of this section, irrespective of the
18 duration of the levy. Each enactment shall specify the types
19 of counties authorized to levy; the rate or rates which may be
20 imposed; the maximum length of time the surtax may be imposed,
21 if any; the procedure which must be followed to secure voter
22 approval, if required; the purpose for which the proceeds may
23 be expended; and such other requirements as the Legislature
24 may provide. Taxable transactions and administrative
25 procedures shall be as provided in s. 212.054.
26 (2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.--
27 (a)1. The governing authority in each county may levy
28 a discretionary sales surtax of 0.5 percent or 1 percent. The
29 levy of the surtax shall be pursuant to ordinance enacted by a
30 two-thirds vote majority of the members of the county
31 governing authority or pursuant to ordinance enacted by a
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1 majority of the members of the county governing authority and
2 approved by a majority of the electors of the county voting in
3 a referendum on the surtax. If the governing bodies of the
4 municipalities representing a majority of the county's
5 population adopt uniform resolutions establishing the rate of
6 the surtax and calling for a referendum on the surtax, the
7 levy of the surtax shall be placed on the ballot and shall
8 take effect if approved by a majority of the electors of the
9 county voting in the referendum on the surtax.
10 2. If the surtax was levied pursuant to a referendum
11 held before July 1, 1993, the surtax may not be levied beyond
12 the time established in the ordinance, or, if the ordinance
13 did not limit the period of the levy, the surtax may not be
14 levied for more than 15 years. The levy of such surtax may be
15 extended only by approval of a majority of the electors of the
16 county voting in a referendum on the surtax or pursuant to
17 ordinance enacted by a two-thirds vote of the members of the
18 county governing authority.
19 (d)1. The proceeds of the surtax authorized by this
20 subsection and approved by referendum and any interest accrued
21 thereto shall be expended by the school district or within the
22 county and municipalities within the county, or, in the case
23 of a negotiated joint county agreement, within another county,
24 to finance, plan, and construct infrastructure and to acquire
25 land for public recreation or conservation or protection of
26 natural resources and to finance the closure of county-owned
27 or municipally owned solid waste landfills that are already
28 closed or are required to close by order of the Department of
29 Environmental Protection. Any use of such proceeds or interest
30 for purposes of landfill closure prior to July 1, 1993, is
31 ratified. Neither the proceeds nor any interest accrued
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1 thereto shall be used for operational expenses of any
2 infrastructure, except that any county with a population of
3 less than 75,000 that is required to close a landfill by order
4 of the Department of Environmental Protection may use the
5 proceeds or any interest accrued thereto for long-term
6 maintenance costs associated with landfill closure. Counties,
7 as defined in s. 125.011(1), and charter counties may, in
8 addition, use the proceeds and any interest accrued thereto to
9 retire or service indebtedness incurred for bonds issued prior
10 to July 1, 1987, for infrastructure purposes, and for bonds
11 subsequently issued to refund such bonds. Any use of such
12 proceeds or interest for purposes of retiring or servicing
13 indebtedness incurred for such refunding bonds prior to July
14 1, 1999, is ratified.
15 2. The proceeds of the surtax where the surtax is
16 levied by a two-thirds vote of the governing body of the
17 county and any interest accrued thereto shall be expended by
18 the school district or within the county and municipalities
19 within the county for infrastructure located within the urban
20 service area that is identified in the local government
21 comprehensive plan of the county or municipality and is
22 identified in that local government's capital improvements
23 element adopted pursuant to s. 163.3177(3) or that is
24 identified in the school district's educational facilities
25 plan adopted pursuant to s. 235.185.
26 3.2. For the purposes of this paragraph,
27 "infrastructure" means:
28 a. Any fixed capital expenditure or fixed capital
29 outlay associated with the construction, reconstruction, or
30 improvement of public facilities which have a life expectancy
31
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1 of 5 or more years and any land acquisition, land improvement,
2 design, and engineering costs related thereto.
3 b. A fire department vehicle, an emergency medical
4 service vehicle, a sheriff's office vehicle, a police
5 department vehicle, or any other vehicle, and such equipment
6 necessary to outfit the vehicle for its official use or
7 equipment that has a life expectancy of at least 5 years.
8 4.3. Notwithstanding any other provision of this
9 subsection, a discretionary sales surtax imposed or extended
10 after the effective date of this act may provide for an amount
11 not to exceed 15 percent of the local option sales surtax
12 proceeds to be allocated for deposit to a trust fund within
13 the county's accounts created for the purpose of funding
14 economic development projects of a general public purpose
15 targeted to improve local economies, including the funding of
16 operational costs and incentives related to such economic
17 development. If applicable, the ballot statement must indicate
18 the intention to make an allocation under the authority of
19 this subparagraph.
20 (6) SCHOOL CAPITAL OUTLAY SURTAX.--
21 (a) The school board in each county may levy, pursuant
22 to resolution conditioned to take effect only upon approval by
23 a majority vote of the electors of the county voting in a
24 referendum, a discretionary sales surtax at a rate that may
25 not exceed 0.5 percent.
26 (b) The resolution shall include a statement that
27 provides a brief and general description of the school capital
28 outlay projects to be funded by the surtax. If applicable, the
29 resolution must state that the district school board has been
30 recognized by the State Board of Education as having a Florida
31 Frugal Schools Program. The statement shall conform to the
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1 requirements of s. 101.161 and shall be placed on the ballot
2 by the governing body of the county. The following question
3 shall be placed on the ballot:
4
5 ....FOR THE ....CENTS TAX
6 ....AGAINST THE ....CENTS TAX
7
8 (c) As an alternative method of levying the
9 discretionary sales surtax, the district school board may
10 levy, pursuant to resolution adopted by a two-thirds vote of
11 the members of the school board, a discretionary sales surtax
12 at a rate not to exceed 0.5 percent when the following
13 conditions are met:
14 1. The district school board and local governments in
15 the county where the school district is located have adopted
16 an interlocal agreement and public educational facilities
17 element as required by chapter 163;
18 2. The district school board has adopted a district
19 educational facilities plan pursuant to s. 235.185; and
20 3. The district's use of surtax proceeds for new
21 construction must not exceed the cost-per-student criteria
22 established for the SIT Program in s. 235.216(2).
23 (d)(c) The resolution providing for the imposition of
24 the surtax shall set forth a plan for use of the surtax
25 proceeds for fixed capital expenditures or fixed capital costs
26 associated with the construction, reconstruction, or
27 improvement of school facilities and campuses which have a
28 useful life expectancy of 5 or more years, and any land
29 acquisition, land improvement, design, and engineering costs
30 related thereto. Additionally, the plan shall include the
31 costs of retrofitting and providing for technology
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1 implementation, including hardware and software, for the
2 various sites within the school district. Surtax revenues may
3 be used for the purpose of servicing bond indebtedness to
4 finance projects authorized by this subsection, and any
5 interest accrued thereto may be held in trust to finance such
6 projects. Neither the proceeds of the surtax nor any interest
7 accrued thereto shall be used for operational expenses. If the
8 district school board has been recognized by the State Board
9 of Education as having a Florida Frugal Schools Program, the
10 district's plan for use of the surtax proceeds must be
11 consistent with this subsection and with uses assured under
12 the Florida Frugal Schools Program.
13 (e)(d) Any school board imposing the surtax shall
14 implement a freeze on noncapital local school property taxes,
15 at the millage rate imposed in the year prior to the
16 implementation of the surtax, for a period of at least 3 years
17 from the date of imposition of the surtax. This provision
18 shall not apply to existing debt service or required state
19 taxes.
20 (f)(e) Surtax revenues collected by the Department of
21 Revenue pursuant to this subsection shall be distributed to
22 the school board imposing the surtax in accordance with law.
23 Section 2. Paragraphs (a) and (b) of subsection (2) of
24 section 288.0655, Florida Statutes, are amended to read:
25 288.0655 Rural Infrastructure Fund.--
26 (2)(a) Funds appropriated by the Legislature shall be
27 distributed by the office through a grant programs program
28 that maximize maximizes the use of federal, local, and private
29 resources, including, but not limited to, those available
30 under the Small Cities Community Development Block Grant
31 Program.
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1 (b) To facilitate access of rural communities and
2 rural areas of critical economic concern as defined by the
3 Rural Economic Development Initiative to infrastructure
4 funding programs of the Federal Government, such as those
5 offered by the United States Department of Agriculture and the
6 United States Department of Commerce, and state programs,
7 including those offered by Rural Economic Development
8 Initiative agencies, and to facilitate local government or
9 private infrastructure funding efforts, the office may award
10 grants to applicants for such federal programs for up to 30
11 percent of the total infrastructure project cost. Eligible
12 projects must be related to specific job-creation or
13 job-retention job creating opportunities. Eligible projects
14 may also include improving any inadequate infrastructure that
15 has resulted in regulatory action that prohibits economic or
16 community growth or reducing the costs to community users of
17 proposed infrastructure improvements that exceed such costs in
18 comparable communities. Eligible uses of funds shall include
19 improvements to public infrastructure for industrial or
20 commercial sites and upgrades to or development of public
21 tourism infrastructure. Authorized infrastructure may include
22 the following public or public-private partnership facilities:
23 storm water systems; telecommunications facilities; roads or
24 other remedies to transportation impediments; nature-based
25 tourism facilities; or other physical requirements necessary
26 to facilitate tourism, trade, and economic development
27 activities in the community. Authorized infrastructure may
28 also include publicly owned self-powered nature-based tourism
29 facilities and additions to the distribution facilities of the
30 existing natural gas utility as defined in s. 366.04(3)(c),
31 the existing electric utility as defined in s. 366.02, or the
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1 existing water or wastewater utility as defined in s.
2 367.021(12), or any other existing water or wastewater
3 facility, which owns a gas or electric distribution system or
4 a water or wastewater system in this state where:
5 1. A contribution-in-aid of construction is required
6 to serve public or public-private partnership facilities under
7 the tariffs of any natural gas, electric, water, or wastewater
8 utility as defined herein; and
9 2. Such utilities as defined herein are willing and
10 able to provide such service.
11 Section 3. Paragraphs (b) and (c) of subsection (3) of
12 section 288.095, Florida Statutes, are amended to read:
13 288.095 Economic Development Trust Fund.--
14 (3)
15 (b) The total amount of tax refund claims approved for
16 payment by the Office of Tourism, Trade, and Economic
17 Development based on actual project performance may not exceed
18 the amount appropriated to the Economic Development Incentives
19 Account for such purposes for the fiscal year. In the event
20 the Legislature does not appropriate an amount sufficient to
21 satisfy estimates projections by the office for tax refunds
22 under ss. 288.1045 and 288.106 in a fiscal year, the Office of
23 Tourism, Trade, and Economic Development shall, not later than
24 July 15 of such year, determine the proportion of each refund
25 claim which shall be paid by dividing the amount appropriated
26 for tax refunds for the fiscal year by the estimated projected
27 total of refund claims for the fiscal year. The amount of each
28 claim for a tax refund shall be multiplied by the resulting
29 quotient. If, after the payment of all such refund claims,
30 funds remain in the Economic Development Incentives Account
31 for tax refunds, the office shall recalculate the proportion
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1 for each refund claim and adjust the amount of each claim
2 accordingly.
3 (c) By December 31 September 30 of each year,
4 Enterprise Florida, Inc., the Office of Tourism, Trade, and
5 Economic Development shall submit a complete and detailed
6 report to the Governor, the President of the Senate, the
7 Speaker of the House of Representatives, and the director of
8 the Office of Tourism, Trade, and Economic Development board
9 of directors of Enterprise Florida, Inc., created under part
10 VII of this chapter, of all applications received,
11 recommendations made to the Office of Tourism, Trade, and
12 Economic Development, final decisions issued, tax refund
13 agreements executed, and tax refunds paid or other payments
14 made under all programs funded out of the Economic Development
15 Incentives Account, including analyses of benefits and costs,
16 types of projects supported, and employment and investment
17 created. Enterprise Florida, Inc., The Office of Tourism,
18 Trade, and Economic Development shall also include a separate
19 analysis of the impact of such tax refunds on state enterprise
20 zones designated pursuant to s. 290.0065, rural communities,
21 brownfield areas, and distressed urban communities. By
22 December 1 of each year, the board of directors of Enterprise
23 Florida, Inc., shall review and comment on the report, and the
24 board shall submit the report, together with the comments of
25 the board, to the Governor, the President of the Senate, and
26 the Speaker of the House of Representatives. The report must
27 discuss whether the authority and moneys appropriated by the
28 Legislature to the Economic Development Incentives Account
29 were managed and expended in a prudent, fiducially sound
30 manner. The Office of Tourism, Trade, and Economic Development
31
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1 shall assist Enterprise Florida, Inc., in the collection of
2 data related to business performance and incentive payments.
3 Section 4. Section 288.1045, Florida Statutes, is
4 amended to read:
5 288.1045 Qualified defense contractor tax refund
6 program.--
7 (1) DEFINITIONS.--As used in this section:
8 (a) "Consolidation of a Department of Defense
9 contract" means the consolidation of one or more of an
10 applicant's facilities under one or more Department of Defense
11 contracts either from outside this state or from inside and
12 outside this state, into one or more of the applicant's
13 facilities inside this state.
14 (b) "Average wage in the area" means the average of
15 all wages and salaries in the state, the county, or in the
16 standard metropolitan area in which the business unit is
17 located.
18 (c) "Applicant" means any business entity that holds a
19 valid Department of Defense contract or any business entity
20 that is a subcontractor under a valid Department of Defense
21 contract or any business entity that holds a valid contract
22 for the reuse of a defense-related facility, including all
23 members of an affiliated group of corporations as defined in
24 s. 220.03(1)(b).
25 (d) "Office" means the Office of Tourism, Trade, and
26 Economic Development.
27 (e) "Department of Defense contract" means a
28 competitively bid Department of Defense contract or
29 subcontract or a competitively bid federal agency contract or
30 subcontract issued on behalf of the Department of Defense for
31 manufacturing, assembling, fabricating, research, development,
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1 or design with a duration of 2 or more years, but excluding
2 any contract to provide goods, improvements to real or
3 tangible property, or services directly to or for any
4 particular military base or installation in this state. The
5 term includes contracts or subcontracts for products or
6 services for military use which contracts or subcontracts are
7 approved by the United States Department of Defense, the
8 United States Department of State, or the United States Coast
9 Guard.
10 (f) "New Department of Defense contract" means a
11 Department of Defense contract entered into after the date
12 application for certification as a qualified applicant is made
13 and after January 1, 1994.
14 (g) "Jobs" means full-time equivalent positions,
15 consistent with the use of such terms by the Agency for
16 Workforce Innovation Department of Labor and Employment
17 Security for the purpose of unemployment compensation tax,
18 resulting directly from a project in this state. This number
19 does not include temporary construction jobs involved with the
20 construction of facilities for the project.
21 (h) "Nondefense production jobs" means employment
22 exclusively for activities that, directly or indirectly, are
23 unrelated to the Department of Defense.
24 (i) "Project" means any business undertaking in this
25 state under a new Department of Defense contract,
26 consolidation of a Department of Defense contract, or
27 conversion of defense production jobs over to nondefense
28 production jobs or reuse of defense-related facilities.
29 (j) "Qualified applicant" means an applicant that has
30 been approved by the director to be eligible for tax refunds
31 pursuant to this section.
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1 (k) "Director" means the director of the Office of
2 Tourism, Trade, and Economic Development.
3 (l) "Taxable year" means the same as in s.
4 220.03(1)(z).
5 (m) "Fiscal year" means the fiscal year of the state.
6 (n) "Business unit" means an employing unit, as
7 defined in s. 443.036, that is registered with the Agency for
8 Workforce Innovation Department of Labor and Employment
9 Security for unemployment compensation purposes or means a
10 subcategory or division of an employing unit that is accepted
11 by the Agency for Workforce Innovation Department of Labor and
12 Employment Security as a reporting unit.
13 (o) "Local financial support" means funding from local
14 sources, public or private, which is paid to the Economic
15 Development Trust Fund and which is equal to 20 percent of the
16 annual tax refund for a qualified applicant. Local financial
17 support may include excess payments made to a utility company
18 under a designated program to allow decreases in service by
19 the utility company under conditions, regardless of when
20 application is made. A qualified applicant may not provide,
21 directly or indirectly, more than 5 percent of such funding in
22 any fiscal year. The sources of such funding may not include,
23 directly or indirectly, state funds appropriated from the
24 General Revenue Fund or any state trust fund, excluding tax
25 revenues shared with local governments pursuant to law.
26 (p) "Contract for reuse of a defense-related facility"
27 means a contract with a duration of 2 or more years for the
28 use of a facility for manufacturing, assembling, fabricating,
29 research, development, or design of tangible personal
30 property, but excluding any contract to provide goods,
31 improvements to real or tangible property, or services
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1 directly to or for any particular military base or
2 installation in this state. Such facility must be located
3 within a port, as defined in s. 313.21, and have been occupied
4 by a business entity that held a valid Department of Defense
5 contract or occupied by any branch of the Armed Forces of the
6 United States, within 1 year of any contract being executed
7 for the reuse of such facility. A contract for reuse of a
8 defense-related facility may not include any contract for
9 reuse of such facility for any Department of Defense contract
10 for manufacturing, assembling, fabricating, research,
11 development, or design.
12 (q) "Local financial support exemption option" means
13 the option to exercise an exemption from the local financial
14 support requirement available to any applicant whose project
15 is located in a county designated by the Rural Economic
16 Development Initiative, if the county commissioners of the
17 county in which the project will be located adopt a resolution
18 requesting that the applicant's project be exempt from the
19 local financial support requirement. Any applicant that
20 exercises this option is not eligible for more than 80 percent
21 of the total tax refunds allowed such applicant under this
22 section.
23 (2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--
24 (a) There shall be allowed, from the Economic
25 Development Trust Fund, a refund to a qualified applicant for
26 the amount of eligible taxes certified by the director which
27 were paid by such qualified applicant. The total amount of
28 refunds for all fiscal years for each qualified applicant
29 shall be determined pursuant to subsection (3). The annual
30 amount of a refund to a qualified applicant shall be
31 determined pursuant to subsection (5).
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1 (b) A qualified applicant may not be qualified for any
2 project to receive more than $5,000 times the number of jobs
3 provided in the tax refund agreement pursuant to subparagraph
4 (4)(a)1. A qualified applicant may not receive refunds of more
5 than 25 percent of the total tax refunds provided in the tax
6 refund agreement pursuant to subparagraph (4)(a)1. in any
7 fiscal year, provided that no qualified applicant may receive
8 more than $2.5 million in tax refunds pursuant to this section
9 in any fiscal year.
10 (c) A qualified applicant may not receive more than
11 $7.5 million in tax refunds pursuant to this section in all
12 fiscal years.
13 (d) Contingent upon an annual appropriation by the
14 Legislature, the director may approve not more in tax refunds
15 than the amount appropriated to the Economic Development Trust
16 Fund for tax refunds, for a fiscal year pursuant to subsection
17 (5) and s. 288.095.
18 (e) For the first 6 months of each fiscal year, the
19 director shall set aside 30 percent of the amount appropriated
20 for refunds pursuant to this section by the Legislature to
21 provide tax refunds only to qualified applicants who employ
22 500 or fewer full-time employees in this state. Any
23 unencumbered funds remaining undisbursed from this set-aside
24 at the end of the 6-month period may be used to provide tax
25 refunds for any qualified applicants pursuant to this section.
26 (f) After entering into a tax refund agreement
27 pursuant to subsection (4), a qualified applicant may receive
28 refunds from the Economic Development Trust Fund for the
29 following taxes due and paid by the qualified applicant
30 beginning with the applicant's first taxable year that begins
31 after entering into the agreement:
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1 1. Taxes on sales, use, and other transactions paid
2 pursuant to chapter 212.
3 2. Corporate income taxes paid pursuant to chapter
4 220.
5 3. Intangible personal property taxes paid pursuant to
6 chapter 199.
7 4. Emergency excise taxes paid pursuant to chapter
8 221.
9 5. Excise taxes paid on documents pursuant to chapter
10 201.
11 6. Ad valorem taxes paid, as defined in s.
12 220.03(1)(a) on June 1, 1996.
13
14 However, a qualified applicant may not receive a tax refund
15 pursuant to this section for any amount of credit, refund, or
16 exemption granted such contractor for any of such taxes. If a
17 refund for such taxes is provided by the office, which taxes
18 are subsequently adjusted by the application of any credit,
19 refund, or exemption granted to the qualified applicant other
20 than that provided in this section, the qualified applicant
21 shall reimburse the Economic Development Trust Fund for the
22 amount of such credit, refund, or exemption. A qualified
23 applicant must notify and tender payment to the office within
24 20 days after receiving a credit, refund, or exemption, other
25 than that provided in this section.
26 (g) Any qualified applicant who fraudulently claims
27 this refund is liable for repayment of the refund to the
28 Economic Development Trust Fund plus a mandatory penalty of
29 200 percent of the tax refund which shall be deposited into
30 the General Revenue Fund. Any qualified applicant who
31 fraudulently claims this refund commits a felony of the third
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1 degree, punishable as provided in s. 775.082, s. 775.083, or
2 s. 775.084.
3 (h) Funds made available pursuant to this section may
4 not be expended in connection with the relocation of a
5 business from one community to another community in this state
6 unless the Office of Tourism, Trade, and Economic Development
7 determines that without such relocation the business will move
8 outside this state or determines that the business has a
9 compelling economic rationale for the relocation which creates
10 additional jobs.
11 (3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
12 DETERMINATION.--
13 (a) To apply for certification as a qualified
14 applicant pursuant to this section, an applicant must file an
15 application with the office which satisfies the requirements
16 of paragraphs (b) and (e), paragraphs (c) and (e), or
17 paragraphs (d) and (e). An applicant may not apply for
18 certification pursuant to this section after a proposal has
19 been submitted for a new Department of Defense contract, after
20 the applicant has made the decision to consolidate an existing
21 Department of Defense contract in this state for which such
22 applicant is seeking certification, or after the applicant has
23 made the decision to convert defense production jobs to
24 nondefense production jobs for which such applicant is seeking
25 certification.
26 (b) Applications for certification based on the
27 consolidation of a Department of Defense contract or a new
28 Department of Defense contract must be submitted to the office
29 as prescribed by the office and must include, but are not
30 limited to, the following information:
31
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1 1. The applicant's federal employer identification
2 number, the applicant's Florida sales tax registration number,
3 and a notarized signature of an officer of the applicant.
4 2. The permanent location of the manufacturing,
5 assembling, fabricating, research, development, or design
6 facility in this state at which the project is or is to be
7 located.
8 3. The Department of Defense contract numbers of the
9 contract to be consolidated, the new Department of Defense
10 contract number, or the "RFP" number of a proposed Department
11 of Defense contract.
12 4. The date the contract was executed or is expected
13 to be executed, and the date the contract is due to expire or
14 is expected to expire.
15 5. The commencement date for project operations under
16 the contract in this state.
17 6. The number of net new full-time equivalent Florida
18 jobs included in this state which are or will be dedicated to
19 the project as of December 31 of each during the year and the
20 average wage of such jobs.
21 7. The total number of full-time equivalent employees
22 employed by the applicant in this state.
23 8. The percentage of the applicant's gross receipts
24 derived from Department of Defense contracts during the 5
25 taxable years immediately preceding the date the application
26 is submitted.
27 9. The amount of:
28 a. Taxes on sales, use, and other transactions paid
29 pursuant to chapter 212;
30 b. Corporate income taxes paid pursuant to chapter
31 220;
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1 c. Intangible personal property taxes paid pursuant to
2 chapter 199;
3 d. Emergency excise taxes paid pursuant to chapter
4 221;
5 e. Excise taxes paid on documents pursuant to chapter
6 201; and
7 f. Ad valorem taxes paid
8
9 during the 5 fiscal years immediately preceding the date of
10 the application, and the projected amounts of such taxes to be
11 due in the 3 fiscal years immediately following the date of
12 the application.
13 10. The estimated amount of tax refunds to be claimed
14 for in each fiscal year.
15 11. A brief statement concerning the applicant's need
16 for tax refunds, and the proposed uses of such refunds by the
17 applicant.
18 12. A resolution adopted by the county commissioners
19 of the county in which the project will be located, which
20 recommends the applicant be approved as a qualified applicant,
21 and which indicates that the necessary commitments of local
22 financial support for the applicant exist. Prior to the
23 adoption of the resolution, the county commission may review
24 the proposed public or private sources of such support and
25 determine whether the proposed sources of local financial
26 support can be provided or, for any applicant whose project is
27 located in a county designated by the Rural Economic
28 Development Initiative, a resolution adopted by the county
29 commissioners of such county requesting that the applicant's
30 project be exempt from the local financial support
31 requirement.
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1 13. Any additional information requested by the
2 office.
3 (c) Applications for certification based on the
4 conversion of defense production jobs to nondefense production
5 jobs must be submitted to the office as prescribed by the
6 office and must include, but are not limited to, the following
7 information:
8 1. The applicant's federal employer identification
9 number, the applicant's Florida sales tax registration number,
10 and a notarized signature of an officer of the applicant.
11 2. The permanent location of the manufacturing,
12 assembling, fabricating, research, development, or design
13 facility in this state at which the project is or is to be
14 located.
15 3. The Department of Defense contract numbers of the
16 contract under which the defense production jobs will be
17 converted to nondefense production jobs.
18 4. The date the contract was executed, and the date
19 the contract is due to expire or is expected to expire, or was
20 canceled.
21 5. The commencement date for the nondefense production
22 operations in this state.
23 6. The number of net new full-time equivalent Florida
24 jobs included in this state which are or will be dedicated to
25 the nondefense production project as of December 31 of each
26 during the year and the average wage of such jobs.
27 7. The total number of full-time equivalent employees
28 employed by the applicant in this state.
29 8. The percentage of the applicant's gross receipts
30 derived from Department of Defense contracts during the 5
31
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1 taxable years immediately preceding the date the application
2 is submitted.
3 9. The amount of:
4 a. Taxes on sales, use, and other transactions paid
5 pursuant to chapter 212;
6 b. Corporate income taxes paid pursuant to chapter
7 220;
8 c. Intangible personal property taxes paid pursuant to
9 chapter 199;
10 d. Emergency excise taxes paid pursuant to chapter
11 221;
12 e. Excise taxes paid on documents pursuant to chapter
13 201; and
14 f. Ad valorem taxes paid
15
16 during the 5 fiscal years immediately preceding the date of
17 the application, and the projected amounts of such taxes to be
18 due in the 3 fiscal years immediately following the date of
19 the application.
20 10. The estimated amount of tax refunds to be claimed
21 for in each fiscal year.
22 11. A brief statement concerning the applicant's need
23 for tax refunds, and the proposed uses of such refunds by the
24 applicant.
25 12. A resolution adopted by the county commissioners
26 of the county in which the project will be located, which
27 recommends the applicant be approved as a qualified applicant,
28 and which indicates that the necessary commitments of local
29 financial support for the applicant exist. Prior to the
30 adoption of the resolution, the county commission may review
31 the proposed public or private sources of such support and
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1 determine whether the proposed sources of local financial
2 support can be provided or, for any applicant whose project is
3 located in a county designated by the Rural Economic
4 Development Initiative, a resolution adopted by the county
5 commissioners of such county requesting that the applicant's
6 project be exempt from the local financial support
7 requirement.
8 13. Any additional information requested by the
9 office.
10 (d) Applications for certification based on a contract
11 for reuse of a defense-related facility must be submitted to
12 the office as prescribed by the office and must include, but
13 are not limited to, the following information:
14 1. The applicant's Florida sales tax registration
15 number and a notarized signature of an officer of the
16 applicant.
17 2. The permanent location of the manufacturing,
18 assembling, fabricating, research, development, or design
19 facility in this state at which the project is or is to be
20 located.
21 3. The business entity holding a valid Department of
22 Defense contract or branch of the Armed Forces of the United
23 States that previously occupied the facility, and the date
24 such entity last occupied the facility.
25 4. A copy of the contract to reuse the facility, or
26 such alternative proof as may be prescribed by the office that
27 the applicant is seeking to contract for the reuse of such
28 facility.
29 5. The date the contract to reuse the facility was
30 executed or is expected to be executed, and the date the
31 contract is due to expire or is expected to expire.
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1 6. The commencement date for project operations under
2 the contract in this state.
3 7. The number of net new full-time equivalent Florida
4 jobs included in this state which are or will be dedicated to
5 the project as of December 31 of each during the year and the
6 average wage of such jobs.
7 8. The total number of full-time equivalent employees
8 employed by the applicant in this state.
9 9. The amount of:
10 a. Taxes on sales, use, and other transactions paid
11 pursuant to chapter 212.
12 b. Corporate income taxes paid pursuant to chapter
13 220.
14 c. Intangible personal property taxes paid pursuant to
15 chapter 199.
16 d. Emergency excise taxes paid pursuant to chapter
17 221.
18 e. Excise taxes paid on documents pursuant to chapter
19 201.
20 f. Ad valorem taxes paid during the 5 fiscal years
21 immediately preceding the date of the application, and the
22 projected amounts of such taxes to be due in the 3 fiscal
23 years immediately following the date of the application.
24 10. The estimated amount of tax refunds to be claimed
25 for in each fiscal year.
26 11. A brief statement concerning the applicant's need
27 for tax refunds, and the proposed uses of such refunds by the
28 applicant.
29 12. A resolution adopted by the county commissioners
30 of the county in which the project will be located, which
31 recommends the applicant be approved as a qualified applicant,
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1 and which indicates that the necessary commitments of local
2 financial support for the applicant exist. Prior to the
3 adoption of the resolution, the county commission may review
4 the proposed public or private sources of such support and
5 determine whether the proposed sources of local financial
6 support can be provided or, for any applicant whose project is
7 located in a county designated by the Rural Economic
8 Development Initiative, a resolution adopted by the county
9 commissioners of such county requesting that the applicant's
10 project be exempt from the local financial support
11 requirement.
12 13. Any additional information requested by the
13 office.
14 (e) To qualify for review by the office, the
15 application of an applicant must, at a minimum, establish the
16 following to the satisfaction of the office:
17 1. The jobs proposed to be provided under the
18 application, pursuant to subparagraph (b)6. or subparagraph
19 (c)6., must pay an estimated annual average wage equaling at
20 least 115 percent of the average wage in the area where the
21 project is to be located.
22 2. The consolidation of a Department of Defense
23 contract must result in a net increase of at least 25 percent
24 in the number of jobs at the applicant's facilities in this
25 state or the addition of at least 80 jobs at the applicant's
26 facilities in this state.
27 3. The conversion of defense production jobs to
28 nondefense production jobs must result in net increases in
29 nondefense employment at the applicant's facilities in this
30 state.
31
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1 4. The Department of Defense contract cannot allow the
2 business to include the costs of relocation or retooling in
3 its base as allowable costs under a cost-plus, or similar,
4 contract.
5 5. A business unit of the applicant must have derived
6 not less than 60 70 percent of its gross receipts in this
7 state from Department of Defense contracts over the
8 applicant's last fiscal year, and must have derived not less
9 than an average of 60 80 percent of its gross receipts in this
10 state from Department of Defense contracts over the 5 years
11 preceding the date an application is submitted pursuant to
12 this section. This subparagraph does not apply to any
13 application for certification based on a contract for reuse of
14 a defense-related facility.
15 6. The reuse of a defense-related facility must result
16 in the creation of at least 100 jobs at such facility.
17 (f) Each application meeting the requirements of
18 paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs
19 (d) and (e) must be submitted to the office for a
20 determination of eligibility. The office shall review,
21 evaluate, and score each application based on, but not limited
22 to, the following criteria:
23 1. Expected contributions to the state strategic
24 economic development plan adopted by Enterprise Florida, Inc.,
25 taking into account the extent to which the project
26 contributes to the state's high-technology base, and the
27 long-term impact of the project and the applicant on the
28 state's economy.
29 2. The economic benefit of the jobs created or
30 retained by the project in this state, taking into account the
31
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1 cost and average wage of each job created or retained, and the
2 potential risk to existing jobs.
3 3. The amount of capital investment to be made by the
4 applicant in this state.
5 4. The local commitment and support for the project
6 and applicant.
7 5. The impact of the project on the local community,
8 taking into account the unemployment rate for the county where
9 the project will be located.
10 6. The dependence of the local community on the
11 defense industry.
12 7. The impact of any tax refunds granted pursuant to
13 this section on the viability of the project and the
14 probability that the project will occur in this state if such
15 tax refunds are granted to the applicant, taking into account
16 the expected long-term commitment of the applicant to economic
17 growth and employment in this state.
18 8. The length of the project, or the expected
19 long-term commitment to this state resulting from the project.
20 (g) The office shall forward its written findings and
21 evaluation on each application meeting the requirements of
22 paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs
23 (d) and (e) to the director within 60 calendar days after of
24 receipt of a complete application. The office shall notify
25 each applicant when its application is complete, and when the
26 60-day period begins. In its written report to the director,
27 the office shall specifically address each of the factors
28 specified in paragraph (f), and shall make a specific
29 assessment with respect to the minimum requirements
30 established in paragraph (e). The office shall include in its
31 report projections of the tax refunds the applicant would be
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1 eligible to receive refund claims that will be sought by the
2 applicant in each fiscal year based on the creation and
3 maintenance of the net new Florida jobs specified in
4 subparagraphs (b)6., (c)6., or (d)7. as of December 31 of the
5 preceding state fiscal year information submitted in the
6 application.
7 (h) Within 30 days after receipt of the office's
8 findings and evaluation, the director shall issue a letter of
9 certification which enter a final order that either approves
10 or disapproves an application. The decision must be in writing
11 and provide the justifications for either approval or
12 disapproval. If appropriate, the director shall enter into a
13 written agreement with the qualified applicant pursuant to
14 subsection (4).
15 (i) The director may not certify enter any final order
16 that certifies any applicant as a qualified applicant when the
17 value of tax refunds to be included in that letter of
18 certification final order exceeds the available amount of
19 authority to certify new businesses enter final orders as
20 determined in s. 288.095(3). A letter of certification final
21 order that approves an application must specify the maximum
22 amount of a tax refund that is to be available to the
23 contractor for in each fiscal year and the total amount of tax
24 refunds for all fiscal years.
25 (j) This section does not create a presumption that an
26 applicant should receive any tax refunds under this section.
27 (4) QUALIFIED DEFENSE CONTRACTOR TAX REFUND
28 AGREEMENT.--
29 (a) A qualified applicant shall enter into a written
30 agreement with the office containing, but not limited to, the
31 following:
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1 1. The total number of full-time equivalent jobs in
2 this state that are or will be dedicated to the qualified
3 applicant's project, the average wage of such jobs, the
4 definitions that will apply for measuring the achievement of
5 these terms during the pendency of the agreement, and a time
6 schedule or plan for when such jobs will be in place and
7 active in this state. This information must be the same as the
8 information contained in the application submitted by the
9 contractor pursuant to subsection (3).
10 2. The maximum amount of a refund that the qualified
11 applicant is eligible to receive for in each fiscal year,
12 based on the job creation or retention and maintenance
13 schedule specified in subparagraph 1.
14 3. An agreement with the office allowing the office to
15 review and verify the financial and personnel records of the
16 qualified applicant to ascertain whether the qualified
17 applicant is complying with the requirements of this section.
18 4. The date by after which, in each fiscal year, the
19 qualified applicant may file a an annual claim pursuant to
20 subsection (5) to be considered to receive a tax refund in the
21 following fiscal year.
22 5. That local financial support shall be annually
23 available and will be paid to the Economic Development Trust
24 Fund.
25 (b) Compliance with the terms and conditions of the
26 agreement is a condition precedent for receipt of tax refunds
27 each year. The failure to comply with the terms and conditions
28 of the agreement shall result in the loss of eligibility for
29 receipt of all tax refunds previously authorized pursuant to
30 this section, and the revocation of the certification as a
31 qualified applicant by the director, unless the qualified
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1 applicant is eligible to receive and elects to accept a
2 prorated refund under paragraph (5)(g) or the office grants
3 the qualified applicant an economic-stimulus exemption.
4 1. A qualified applicant may submit, in writing, a
5 request to the office for an economic-stimulus exemption. The
6 request must provide quantitative evidence demonstrating how
7 negative economic conditions in the qualified applicant's
8 industry have prevented the qualified applicant from complying
9 with the terms and conditions of its tax refund agreement.
10 2. Upon receipt of a request under subparagraph 1.,
11 the director shall have 45 days to notify the requesting
12 qualified applicant, in writing, if its exemption has been
13 granted or denied. In determining if an exemption should be
14 granted, the director shall consider the extent to which
15 negative economic conditions in the requesting qualified
16 applicant's industry have prevented the qualified applicant
17 from complying with the terms and conditions of its tax refund
18 agreement.
19 3. As a condition for receiving a prorated refund
20 under paragraph (5)(g) or an economic-stimulus exemption under
21 this paragraph, a qualified applicant must agree to
22 renegotiate its tax refund agreement with the office to, at a
23 minimum, ensure that the terms of the agreement comply with
24 current law and office procedures governing application for
25 and award of tax refunds. Upon approving the award of a
26 prorated refund or granting an economic-stimulus exemption,
27 the office shall renegotiate the tax refund agreement with the
28 qualified applicant as required by this subparagraph. When
29 amending the agreement of a qualified applicant receiving an
30 economic-stimulus exemption, the office may extend the
31 duration of the agreement for a period not to exceed 1 year.
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1 4. A qualified applicant may submit a request for an
2 economic-stimulus exemption to the office in lieu of any tax
3 refund claim scheduled to be submitted after June 30, 2001,
4 but before July 1, 2003.
5 5. A qualified applicant that receives an
6 economic-stimulus exemption may not receive a tax refund for
7 the period covered by the exemption.
8 (c) The agreement shall be signed by the director and
9 the authorized officer of the qualified applicant.
10 (d) The agreement must contain the following legend,
11 clearly printed on its face in bold type of not less than 10
12 points:
13
14 "This agreement is neither a general obligation
15 of the State of Florida, nor is it backed by
16 the full faith and credit of the State of
17 Florida. Payment of tax refunds are conditioned
18 on and subject to specific annual
19 appropriations by the Florida Legislature of
20 funds sufficient to pay amounts authorized in
21 s. 288.1045, Florida Statutes."
22
23 (5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE
24 CONTRACTOR.--
25 (a) To be eligible to claim any scheduled tax refund,
26 qualified applicants who have entered into a written agreement
27 with the office pursuant to subsection (4) and who have
28 entered into a valid new Department of Defense contract,
29 commenced the consolidation of a Department of Defense
30 contract, commenced the conversion of defense production jobs
31 to nondefense production jobs, or who have entered into a
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1 valid contract for reuse of a defense-related facility must
2 may apply by January 31 of once each fiscal year to the office
3 for tax refunds scheduled to be paid from the appropriation
4 for the fiscal year that begins on July 1 following the
5 January 31 claims-submission date. The office may, upon
6 written request, grant a 30-day extension of the filing date.
7 The application must be made on or after the date contained in
8 the agreement entered into pursuant to subsection (4) and must
9 include a notarized signature of an officer of the applicant.
10 (b) The claim for refund by the qualified applicant
11 must include a copy of all receipts pertaining to the payment
12 of taxes for which a refund is sought, and data related to
13 achieving each performance item contained in the tax refund
14 agreement pursuant to subsection (4). The amount requested as
15 a tax refund may not exceed the amount for the relevant fiscal
16 year in the written agreement entered pursuant to subsection
17 (4).
18 (c) A tax refund may not be approved for any qualified
19 applicant unless local financial support has been paid to the
20 Economic Development Trust Fund for in that refund fiscal
21 year. If the local financial support is less than 20 percent
22 of the approved tax refund, the tax refund shall be reduced.
23 The tax refund paid may not exceed 5 times the local financial
24 support received. Funding from local sources includes tax
25 abatement under s. 196.1995 provided to a qualified applicant.
26 The amount of any tax refund for an applicant approved under
27 this section shall be reduced by the amount of any such tax
28 abatement, and the limitations in subsection (2) and paragraph
29 (3)(h) shall be reduced by the amount of any such tax
30 abatement. A report listing all sources of the local financial
31
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1 support shall be provided to the office when such support is
2 paid to the Economic Development Trust Fund.
3 (d) The director, with assistance from the office, the
4 Department of Revenue, and the Agency for Workforce Innovation
5 Department of Labor and Employment Security, shall, by June 30
6 following the scheduled date for submitting the tax-refund
7 claim, specify by written order the approval or disapproval of
8 the tax refund claim and, if approved, determine the amount of
9 the tax refund that is authorized to be paid to for the
10 qualified applicant for the fiscal year in a written final
11 order within 30 days after the date the claim for the annual
12 tax refund is received by the office. The office may grant an
13 extension of this date upon the request of the qualified
14 applicant for the purpose of filing additional information in
15 support of the claim.
16 (e) The total amount of tax refunds approved by the
17 director under this section in any fiscal year may not exceed
18 the amount appropriated to the Economic Development Trust Fund
19 for such purposes for the fiscal year. If the Legislature does
20 not appropriate an amount sufficient to satisfy projections by
21 the office for tax refunds in a fiscal year, the director
22 shall, not later than July 15 of such year, determine the
23 proportion of each refund claim which shall be paid by
24 dividing the amount appropriated for tax refunds for the
25 fiscal year by the projected total amount of refund claims for
26 the fiscal year. The amount of each claim for a tax refund
27 shall be multiplied by the resulting quotient. If, after the
28 payment of all such refund claims, funds remain in the
29 Economic Development Trust Fund for tax refunds, the director
30 shall recalculate the proportion for each refund claim and
31 adjust the amount of each claim accordingly.
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1 (f) Upon approval of the tax refund pursuant to
2 paragraphs (c) and (d), the Comptroller shall issue a warrant
3 for the amount included in the written final order. In the
4 event of any appeal of the written final order, the
5 Comptroller may not issue a warrant for a refund to the
6 qualified applicant until the conclusion of all appeals of the
7 written final order.
8 (g) A prorated tax refund, less a 5 percent penalty,
9 shall be approved for a qualified applicant provided all other
10 applicable requirements have been satisfied and the applicant
11 proves to the satisfaction of the director that it has
12 achieved at least 80 percent of its projected employment and
13 that the average wage paid by the qualified applicant is at
14 least 90 percent of the average wage specified in the tax
15 refund agreement, but in no case less than 115 percent of the
16 average private-sector wage in the area available at the time
17 of certification. The prorated tax refund shall be calculated
18 by multiplying the tax refund amount for which the qualified
19 applicant would have been eligible, if all applicable
20 requirements had been satisfied, by the percentage of the
21 average employment specified in the tax refund agreement which
22 was achieved, and by the percentage of the average wages
23 specified in the tax refund agreement which was achieved.
24 (h) This section does not create a presumption that a
25 tax refund claim will be approved and paid.
26 (6) ADMINISTRATION.--
27 (a) The office may adopt rules pursuant to chapter 120
28 for the administration of this section.
29 (b) The office may verify information provided in any
30 claim submitted for tax credits under this section with regard
31 to employment and wage levels or the payment of the taxes with
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1 the appropriate agency or authority including the Department
2 of Revenue, the Agency for Workforce Innovation Department of
3 Labor and Employment Security, or any local government or
4 authority.
5 (c) To facilitate the process of monitoring and
6 auditing applications made under this program, the office may
7 provide a list of qualified applicants to the Department of
8 Revenue, to the Agency for Workforce Innovation Department of
9 Labor and Employment Security, or to any local government or
10 authority. The office may request the assistance of said
11 entities with respect to monitoring jobs, wages, and the
12 payment of the taxes listed in subsection (2).
13 (d) By December 1 of each year, the office shall
14 submit a complete and detailed report to the Governor, the
15 President of the Senate, and the Speaker of the House of
16 Representatives of all tax refunds paid under this section,
17 including analyses of benefits and costs, types of projects
18 supported, employment and investment created, geographic
19 distribution of tax refunds granted, and minority business
20 participation. The report must indicate whether the moneys
21 appropriated by the Legislature to the qualified applicant tax
22 refund program were expended in a prudent, fiducially sound
23 manner.
24 (e) Funds specifically appropriated for the tax refund
25 program under this section may not be used for any purpose
26 other than the payment of tax refunds authorized by this
27 section.
28 (7) EXPIRATION.--An applicant may not be certified as
29 qualified under this section after June 30, 2004.
30 Section 5. Paragraphs (a) and (d) of subsection (3),
31 paragraphs (a), (b), and (c) of subsection (4), and
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1 subsections (5) and (6) of section 288.106, Florida Statutes,
2 are amended, and subsection (7) of that section is reenacted,
3 to read:
4 288.106 Tax refund program for qualified target
5 industry businesses.--
6 (3) APPLICATION AND APPROVAL PROCESS.--
7 (a) To apply for certification as a qualified target
8 industry business under this section, the business must file
9 an application with the office before the business has made
10 the decision to locate a new business in this state or before
11 the business had made the decision to expand an existing
12 business in this state. The application shall include, but is
13 not limited to, the following information:
14 1. The applicant's federal employer identification
15 number and the applicant's state sales tax registration
16 number.
17 2. The permanent location of the applicant's facility
18 in this state at which the project is or is to be located.
19 3. A description of the type of business activity or
20 product covered by the project, including four-digit SIC codes
21 for all activities included in the project.
22 4. The number of net new full-time equivalent Florida
23 jobs at the qualified target industry business as of December
24 31 of each year included in this state that are or will be
25 dedicated to the project and the average wage of those jobs.
26 If more than one type of business activity or product is
27 included in the project, the number of jobs and average wage
28 for those jobs must be separately stated for each type of
29 business activity or product.
30 5. The total number of full-time equivalent employees
31 employed by the applicant in this state.
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1 6. The anticipated commencement date of the project.
2 7. A brief statement concerning the role that the tax
3 refunds requested will play in the decision of the applicant
4 to locate or expand in this state.
5 8. An estimate of the proportion of the sales
6 resulting from the project that will be made outside this
7 state.
8 9. A resolution adopted by the governing board of the
9 county or municipality in which the project will be located,
10 which resolution recommends that certain types of businesses
11 be approved as a qualified target industry business and states
12 that the commitments of local financial support necessary for
13 the target industry business exist. In advance of the passage
14 of such resolution, the office may also accept an official
15 letter from an authorized local economic development agency
16 that endorses the proposed target industry project and pledges
17 that sources of local financial support for such project
18 exist. For the purposes of making pledges of local financial
19 support under this subsection, the authorized local economic
20 development agency shall be officially designated by the
21 passage of a one-time resolution by the local governing
22 authority.
23 10. Any additional information requested by the
24 office.
25 (d) The office shall forward its written findings and
26 evaluation concerning each application meeting the
27 requirements of paragraph (b) to the director within 45
28 calendar days after receipt of a complete application. The
29 office shall notify each target industry business when its
30 application is complete, and of the time when the 45-day
31 period begins. In its written report to the director, the
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1 office shall specifically address each of the factors
2 specified in paragraph (c) and shall make a specific
3 assessment with respect to the minimum requirements
4 established in paragraph (b). The office shall include in its
5 report projections of the tax refunds the business would be
6 eligible to receive refund claim that will be sought by the
7 target industry business in each fiscal year based on the
8 creation and maintenance of the net new Florida jobs specified
9 in subparagraph (a)4. as of December 31 of the preceding state
10 fiscal year information submitted in the application.
11 (4) TAX REFUND AGREEMENT.--
12 (a) Each qualified target industry business must enter
13 into a written agreement with the office which specifies, at a
14 minimum:
15 1. The total number of full-time equivalent jobs in
16 this state that will be dedicated to the project, the average
17 wage of those jobs, the definitions that will apply for
18 measuring the achievement of these terms during the pendency
19 of the agreement, and a time schedule or plan for when such
20 jobs will be in place and active in this state. This
21 information must be the same as the information contained in
22 the application submitted by the business under subsection
23 (3).
24 2. The maximum amount of tax refunds which the
25 qualified target industry business is eligible to receive on
26 the project and the maximum amount of a tax refund that the
27 qualified target industry business is eligible to receive for
28 in each fiscal year, based on the job creation and maintenance
29 schedule specified in subparagraph 1.
30 3. That the office may review and verify the financial
31 and personnel records of the qualified target industry
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1 business to ascertain whether that business is in compliance
2 with this section.
3 4. The date by after which, in each fiscal year, the
4 qualified target industry business may file a an annual claim
5 under subsection (5) to be considered to receive a tax refund
6 in the following fiscal year.
7 5. That local financial support will be annually
8 available and will be paid to the account. The director may
9 not enter into a written agreement with a qualified target
10 industry business if the local financial support resolution is
11 not passed by the local governing authority within 90 days
12 after he or she has issued the letter of certification under
13 subsection (3).
14 (b) Compliance with the terms and conditions of the
15 agreement is a condition precedent for the receipt of a tax
16 refund each year. The failure to comply with the terms and
17 conditions of the tax refund agreement results in the loss of
18 eligibility for receipt of all tax refunds previously
19 authorized under this section and the revocation by the
20 director of the certification of the business entity as a
21 qualified target industry business, unless the business is
22 eligible to receive and elects to accept a prorated refund
23 under paragraph (5)(d) or the office grants the business an
24 economic-stimulus exemption.
25 1. A qualified target industry business may submit, in
26 writing, a request to the office for an economic-stimulus
27 exemption. The request must provide quantitative evidence
28 demonstrating how negative economic conditions in the
29 business's industry have prevented the business from complying
30 with the terms and conditions of its tax refund agreement.
31
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1 2. Upon receipt of a request under subparagraph 1.,
2 the director shall have 45 days to notify the requesting
3 business, in writing, if its exemption has been granted or
4 denied. In determining if an exemption should be granted, the
5 director shall consider the extent to which negative economic
6 conditions in the requesting business's industry have
7 prevented the business from complying with the terms and
8 conditions of its tax refund agreement.
9 3. As a condition for receiving a prorated refund
10 under paragraph (5)(d) or an economic-stimulus exemption under
11 this paragraph, a qualified target industry business must
12 agree to renegotiate its tax refund agreement with the office
13 to, at a minimum, ensure that the terms of the agreement
14 comply with current law and office procedures governing
15 application for and award of tax refunds. Upon approving the
16 award of a prorated refund or granting an economic-stimulus
17 exemption, the office shall renegotiate the tax refund
18 agreement with the business as required by this subparagraph.
19 When amending the agreement of a business receiving an
20 economic-stimulus exemption, the office may extend the
21 duration of the agreement for a period not to exceed 1 year.
22 4. A qualified target industry business may submit a
23 request for an economic-stimulus exemption to the office in
24 lieu of any tax refund claim scheduled to be submitted after
25 June 30, 2001, but before July 1, 2003.
26 5. A qualified target industry business that receives
27 an economic-stimulus exemption may not receive a tax refund
28 for the period covered by the exemption.
29 (c) The agreement must be signed by the director and
30 by an authorized officer of the qualified target industry
31 business within 120 days after the issuance of the letter of
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1 certification under subsection (3), but not before passage and
2 receipt of the resolution of local financial support. The
3 office may grant an extension of this period at the written
4 request of the qualified target industry business.
5 (5) ANNUAL CLAIM FOR REFUND.--
6 (a) To be eligible to claim any scheduled tax refund,
7 a qualified target industry business that has entered into a
8 tax refund agreement with the office under subsection (4) must
9 may apply by January 31 of once each fiscal year to the office
10 for the a tax refund scheduled to be paid from the
11 appropriation for the fiscal year that begins on July 1
12 following the January 31 claims-submission date. The office
13 may, upon written request, grant a 30-day extension of the
14 filing date. The application must be made on or after the date
15 specified in that agreement.
16 (b) The claim for refund by the qualified target
17 industry business must include a copy of all receipts
18 pertaining to the payment of taxes for which the refund is
19 sought and data related to achievement of each performance
20 item specified in the tax refund agreement. The amount
21 requested as a tax refund may not exceed the amount specified
22 for the relevant that fiscal year in that agreement.
23 (c) A tax refund may not be approved for a qualified
24 target industry business unless the required local financial
25 support has been paid into the account for that refund in that
26 fiscal year. If the local financial support provided is less
27 than 20 percent of the approved tax refund, the tax refund
28 must be reduced. In no event may the tax refund exceed an
29 amount that is equal to 5 times the amount of the local
30 financial support received. Further, funding from local
31 sources includes any tax abatement granted to that business
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1 under s. 196.1995 or the appraised market value of municipal
2 or county land conveyed or provided at a discount to that
3 business. The amount of any tax refund for such business
4 approved under this section must be reduced by the amount of
5 any such tax abatement granted or the value of the land
6 granted; and the limitations in subsection (2) and paragraph
7 (3)(f) must be reduced by the amount of any such tax abatement
8 or the value of the land granted. A report listing all sources
9 of the local financial support shall be provided to the office
10 when such support is paid to the account.
11 (d) A prorated tax refund, less a 5-percent penalty,
12 shall be approved for a qualified target industry business
13 provided all other applicable requirements have been satisfied
14 and the business proves to the satisfaction of the director
15 that it has achieved at least 80 percent of its projected
16 employment and that the average wage paid by the business is
17 at least 90 percent of the average wage specified in the tax
18 refund agreement, but in no case less than 115 percent of the
19 average private-sector wage in the area available at the time
20 of certification, or 150 percent or 200 percent of the average
21 private-sector wage if the business requested the additional
22 per-job tax refund authorized in paragraph (2)(b) for wages
23 above those levels. The prorated tax refund shall be
24 calculated by multiplying the tax refund amount for which the
25 qualified target industry business would have been eligible,
26 if all applicable requirements had been satisfied, by the
27 percentage of the average employment specified in the tax
28 refund agreement which was achieved, and by the percentage of
29 the average wages specified in the tax refund agreement which
30 was achieved.
31
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1 (e) The director, with such assistance as may be
2 required from the office, the Department of Revenue, or the
3 Agency for Workforce Innovation Department of Labor and
4 Employment Security, shall, by June 30 following the scheduled
5 date for submission of the tax-refund claim, specify by
6 written final order the approval or disapproval of the tax
7 refund claim and, if approved, the amount of the tax refund
8 that is authorized to be paid to for the qualified target
9 industry business for the fiscal year within 30 days after the
10 date that the claim for the annual tax refund is received by
11 the office. The office may grant an extension of this date on
12 the request of the qualified target industry business for the
13 purpose of filing additional information in support of the
14 claim.
15 (f) The total amount of tax refund claims approved by
16 the director under this section in any fiscal year must not
17 exceed the amount authorized under s. 288.095(3).
18 (g) This section does not create a presumption that a
19 tax refund claim will be approved and paid.
20 (h)(g) Upon approval of the tax refund under
21 paragraphs (c), (d), and (e), the Comptroller shall issue a
22 warrant for the amount specified in the written final order.
23 If the written final order is appealed, the Comptroller may
24 not issue a warrant for a refund to the qualified target
25 industry business until the conclusion of all appeals of that
26 order.
27 (6) ADMINISTRATION.--
28 (a) The office is authorized to verify information
29 provided in any claim submitted for tax credits under this
30 section with regard to employment and wage levels or the
31 payment of the taxes to the appropriate agency or authority,
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1 including the Department of Revenue, the Agency for Workforce
2 Innovation Department of Labor and Employment Security, or any
3 local government or authority.
4 (b) To facilitate the process of monitoring and
5 auditing applications made under this program, the office may
6 provide a list of qualified target industry businesses to the
7 Department of Revenue, to the Agency for Workforce Innovation
8 Department of Labor and Employment Security, or to any local
9 government or authority. The office may request the assistance
10 of those entities with respect to monitoring jobs, wages, and
11 the payment of the taxes listed in subsection (2).
12 (c) Funds specifically appropriated for the tax refund
13 program for qualified target industry businesses may not be
14 used for any purpose other than the payment of tax refunds
15 authorized by this section.
16 (7) EXPIRATION.--This section expires June 30, 2004.
17 Section 6. Paragraph (k) of subsection (7) of section
18 213.053, Florida Statutes, is amended to read:
19 213.053 Confidentiality and information sharing.--
20 (7) Notwithstanding any other provision of this
21 section, the department may provide:
22 (k)1. Payment information relative to chapters 199,
23 201, 212, 220, and 221, and 624 to the Office of Tourism,
24 Trade, and Economic Development, or its employees or agents
25 that are identified in writing by the office to the
26 department, in the its administration of the tax refund
27 program for qualified defense contractors authorized by s.
28 288.1045 and the tax refund program for qualified target
29 industry businesses authorized by s. 288.106.
30 2. Information relative to tax credits taken by a
31 business under s. 220.191 and exemptions or tax refunds
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1 received by a business under s. 212.08(5)(j) to the Office of
2 Tourism, Trade, and Economic Development, or its employees or
3 agents that are identified in writing by the office to the
4 department, in the administration and evaluation of the
5 capital investment tax credit program authorized in s. 220.191
6 and the semiconductor, defense, and space tax exemption
7 program authorized in s. 212.08(5)(j).
8
9 Disclosure of information under this subsection shall be
10 pursuant to a written agreement between the executive director
11 and the agency. Such agencies, governmental or
12 nongovernmental, shall be bound by the same requirements of
13 confidentiality as the Department of Revenue. Breach of
14 confidentiality is a misdemeanor of the first degree,
15 punishable as provided by s. 775.082 or s. 775.083.
16 Section 7. Sections 7 and 8 of this act may be cited
17 as the "Tourism Industry Recovery Act of 2002."
18 Section 8. Paragraphs (l) and (n) of subsection (3) of
19 section 125.0104, Florida Statutes, are amended to read:
20 125.0104 Tourist development tax; procedure for
21 levying; authorized uses; referendum; enforcement.--
22 (3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.--
23 (l) In addition to any other tax which is imposed
24 pursuant to this section, a county may impose up to an
25 additional 1-percent tax on the exercise of the privilege
26 described in paragraph (a) by majority vote of the governing
27 board of the county in order to:
28 1. Pay the debt service on bonds issued to finance the
29 construction, reconstruction, or renovation of a professional
30 sports franchise facility, or the acquisition, construction,
31 reconstruction, or renovation of a retained spring training
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1 franchise facility, either publicly owned and operated, or
2 publicly owned and operated by the owner of a professional
3 sports franchise or other lessee with sufficient expertise or
4 financial capability to operate such facility, and to pay the
5 planning and design costs incurred prior to the issuance of
6 such bonds.
7 2. Pay the debt service on bonds issued to finance the
8 construction, reconstruction, or renovation of a convention
9 center, and to pay the planning and design costs incurred
10 prior to the issuance of such bonds.
11 3. Pay the operation and maintenance costs of a
12 convention center for a period of up to 10 years. Only
13 counties that have elected to levy the tax for the purposes
14 authorized in subparagraph 2. may use the tax for the purposes
15 enumerated in this subparagraph. Any county that elects to
16 levy the tax for the purposes authorized in subparagraph 2.
17 after July 1, 2000, may use the proceeds of the tax to pay the
18 operation and maintenance costs of a convention center for the
19 life of the bonds.
20 4. Promote and advertise tourism in the State of
21 Florida and nationally and internationally; however, if tax
22 revenues are expended for an activity, service, venue, or
23 event, the activity, service, venue, or event shall have as
24 one of its main purposes the attraction of tourists as
25 evidenced by the promotion of the activity, service, venue, or
26 event to tourists.
27
28 The provision of paragraph (b) which prohibits any county
29 authorized to levy a convention development tax pursuant to s.
30 212.0305 from levying more than the 2-percent tax authorized
31 by this section, and the provisions of paragraphs (4)(a)-(d),
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1 shall not apply to the additional tax authorized in this
2 paragraph. The effective date of the levy and imposition of
3 the tax authorized under this paragraph shall be the first day
4 of the second month following approval of the ordinance by the
5 governing board or the first day of any subsequent month as
6 may be specified in the ordinance. A certified copy of such
7 ordinance shall be furnished by the county to the Department
8 of Revenue within 10 days after approval of such ordinance.
9 (n) In addition to any other tax that is imposed under
10 this section, a county that has imposed the tax under
11 paragraph (l) may impose an additional tax that is no greater
12 than 1 percent on the exercise of the privilege described in
13 paragraph (a) by a majority plus one vote of the membership of
14 the board of county commissioners in order to:
15 1. Pay the debt service on bonds issued to finance:
16 a.1. The construction, reconstruction, or renovation
17 of a facility either publicly owned and operated, or publicly
18 owned and operated by the owner of a professional sports
19 franchise or other lessee with sufficient expertise or
20 financial capability to operate such facility, and to pay the
21 planning and design costs incurred prior to the issuance of
22 such bonds for a new professional sports franchise as defined
23 in s. 288.1162.
24 b.2. The acquisition, construction, reconstruction, or
25 renovation of a facility either publicly owned and operated,
26 or publicly owned and operated by the owner of a professional
27 sports franchise or other lessee with sufficient expertise or
28 financial capability to operate such facility, and to pay the
29 planning and design costs incurred prior to the issuance of
30 such bonds for a retained spring training franchise.
31
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1 2. Promote and advertise tourism in the State of
2 Florida and nationally and internationally; however, if tax
3 revenues are expended for an activity, service, venue, or
4 event, the activity, service, venue, or event shall have as
5 one of its main purposes the attraction of tourists as
6 evidenced by the promotion of the activity, service, venue, or
7 event to tourists.
8
9 A county that imposes the tax authorized in this paragraph may
10 not expend any ad valorem tax revenues for the acquisition,
11 construction, reconstruction, or renovation of a that facility
12 for which tax revenues are used pursuant to subparagraph 1.
13 The provision of paragraph (b) which prohibits any county
14 authorized to levy a convention development tax pursuant to s.
15 212.0305 from levying more than the 2-percent tax authorized
16 by this section shall not apply to the additional tax
17 authorized by this paragraph in counties which levy convention
18 development taxes pursuant to s. 212.0305(4)(a). Subsection
19 (4) does not apply to the adoption of the additional tax
20 authorized in this paragraph. The effective date of the levy
21 and imposition of the tax authorized under this paragraph is
22 the first day of the second month following approval of the
23 ordinance by the board of county commissioners or the first
24 day of any subsequent month specified in the ordinance. A
25 certified copy of such ordinance shall be furnished by the
26 county to the Department of Revenue within 10 days after
27 approval of the ordinance.
28 Section 9. Notwithstanding section 18 of CS for CS for
29 SB 1360, 2002 Regular Session, section 197.1722, Florida
30 Statutes, as created by section 16 of that bill, shall not
31 take effect January 1, 2003, but shall take effect on the date
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1 CS for CS for SB 1360, Regular Session, becomes a law and
2 shall apply retroactively to January 1, 2002.
3 Section 10. Notwithstanding any provisions in section
4 290.0055, Florida Statutes, regarding the size of an
5 enterprise zone, a county as defined in section 125.011(1),
6 Florida Statutes, may apply to the Office of Tourism, Trade,
7 and Economic Development before October 1, 2002, to amend the
8 boundary lines of its existing enterprise zone in order to add
9 an area not exceeding 4 square miles. The area proposed for
10 addition to the enterprise zone under this section must be
11 contiguous to a portion of the existing enterprise zone and
12 must be part of a revitalization area that has been targeted
13 for assistance by the county or by a municipality within the
14 county. The area proposed for addition to the enterprise zone
15 also must contain a high concentration of individuals who have
16 immigrated to this state from Haiti. The Office of Tourism,
17 Trade, and Economic Development shall approve an amendment to
18 the enterprise zone boundary lines, effective January 1, 2003,
19 provided that the area proposed for addition to the enterprise
20 zone is consistent with the criteria and conditions imposed by
21 section 290.0055, Florida Statutes, upon the establishment of
22 enterprise zones, including the requirement that the area
23 suffer from pervasive poverty, unemployment, and general
24 distress.
25 Section 11. Notwithstanding any provisions in section
26 290.0055, Florida Statutes, regarding the size of an
27 enterprise zone, a county as defined in section 125.011(1),
28 Florida Statutes, may apply to the Office of Tourism, Trade,
29 and Economic Development before October 1, 2002, to amend the
30 boundary lines of its existing enterprise zone in order to add
31 an area not exceeding 4 square miles. The area proposed for
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1 addition to the enterprise zone under this section must be
2 contiguous to a portion of the existing enterprise zone and
3 must be part of a revitalization area that has been targeted
4 for assistance by a commission authorized in section 163.06,
5 Florida Statutes. The Office of Tourism, Trade, and Economic
6 Development shall approve an amendment to the enterprise zone
7 boundary lines, effective January 1, 2003, provided that the
8 area proposed for addition to the enterprise zone is
9 consistent with the criteria and conditions imposed by section
10 290.0055, Florida Statutes, upon the establishment of
11 enterprise zones, including the requirement that the area
12 suffer from pervasive poverty, unemployment, and general
13 distress. The area proposed for addition to the enterprise
14 zone under this section may not include any property used for
15 the benefit of a professional sports franchise. Any portion of
16 the area designated under this section by the Office of
17 Tourism, Trade, and Economic Development as an addition to an
18 enterprise zone shall automatically lose its status as part of
19 an enterprise zone if such portion subsequently includes
20 property used for the benefit of a professional sports
21 franchise.
22 Section 12. Sections of this act authorizing a county
23 as defined in section 125.011(1), Florida Statutes, to amend
24 and expand the boundary lines of an existing enterprise zone
25 are not mutually exclusive.
26 Section 13. Section 290.00686, Florida Statutes, is
27 created to read:
28 290.00686 Enterprise zone designation for Brevard
29 County, Cocoa, or Brevard County and Cocoa.--Brevard County,
30 the City of Cocoa, or Brevard County and the City of Cocoa
31 jointly, may apply to the Office of Tourism, Trade, and
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1 Economic Development for designation of one enterprise zone
2 encompassing an area which includes the boundaries of the
3 three community redevelopment areas established pursuant to
4 part III of chapter 163. The application must be submitted by
5 December 31, 2002, and must comply with the requirements of
6 section 290.0055. Notwithstanding the provisions of section
7 290.0065 limiting the total number of enterprise zones
8 designated and the number of enterprise zones within a
9 population category, the Office of Tourism, Trade, and
10 Economic Development may designate one enterprise zone under
11 this section. The Office of Tourism, Trade, and Economic
12 Development shall establish the initial effective date of the
13 enterprise zone designated pursuant to this section.
14 Section 14. Enterprise zone designation for the City
15 of Pensacola.--The City of Pensacola may apply to the Office
16 of Tourism, Trade, and Economic Development for designation of
17 one enterprise zone within the city, which zone encompasses an
18 area up to 10 contiguous square miles. The application must
19 be submitted by December 31, 2002, and must comply with the
20 requirements of section 290.0055, Florida Statutes, except
21 subsection (3) thereof. Notwithstanding the provisions of
22 section 290.0065, Florida Statutes, limiting the total number
23 of enterprise zones designated and the number of enterprise
24 zones within a population category, the Office of Tourism,
25 Trade, and Economic Development may designate one enterprise
26 zone under this section. The Office of Tourism, Trade, and
27 Economic Development shall establish the initial effective
28 date of the enterprise zone designated pursuant to this
29 section.
30 Section 15. Enterprise zone designation for Leon
31 County.--Leon County, or Leon County and the City of
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1 Tallahassee jointly, may apply to the Office of Tourism,
2 Trade, and Economic Development for designation of one
3 enterprise zone, the selected area of which shall not exceed
4 20 square miles and shall have a continuous boundary, or
5 consist of not more than three noncontiguous areas per section
6 290.0055(4)(a), Florida Statutes. The enterprise zone shall
7 encompass an area or areas within the following Census tracts
8 for Leon County pursuant to the 1990 Census:
9
10 Census tract 1, block group 1; census tract 2, block group 1;
11 census tract 2, block group 3; census tract 2, block group 4;
12 census tract 3, block group 1; census tract 4, block group 1;
13 census tract 4, block group 2; census tract 5, block group 1;
14 census tract 5, block group 2; census tract 6, block group 1;
15 census tract 6, block group 2; census tract 6, block group 3;
16 census tract 6, block group 4; census tract 7, block group 1;
17 census tract 7, block group 2; census tract 7, block group 3;
18 census tract 10.01, block group 1; census tract 10.01, block
19 group 2; census tract 10.01, block group 3; census tract
20 11.01, block group 1; census tract 11.01, block group 2;
21 census tract 11.01, block group 3; census tract 11.02, block
22 group 1; census tract 11.02, block group 3; census tract 12,
23 block group 1; census tract 13, block group 1; census tract
24 13, block group 2; census tract 14, block group 1; census
25 tract 14, block group 2; census tract 14, block group 3;
26 census tract 14, block group 4; census tract 14, block group
27 5; census tract 15, block group 1; census tract 16.01, block
28 group 1; census tract 18, block group 3; census tract 18,
29 block group 4; census tract 19, block group 1; census tract
30 19, block group 3; census tract 19, block group 4; census
31 tract 20.01, block group 1; census tract 20.01, block group 2;
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1 census tract 20.01, block group 3; census tract 20.01, block
2 group 4; census tract 20.01, block group 5; census tract
3 20.02, block group 1; census tract 20.02, block group 2;
4 census tract 20.02, block group 3; census tract 20.02, block
5 group 5; census tract 21, block group 1; census tract 21,
6 block group 3; census tract 21, block group 4; census tract
7 21, block group 5; census tract 21, block group 7; census
8 tract 22.01, block group 1; census tract 23.01, block group 3;
9 census tract 23.01, block group 5; census tract 26.02, block
10 group 4.
11
12 The application must be submitted by December 31, 2002, and
13 must comply with the requirements of section 290.0055, Florida
14 Statutes. Notwithstanding the provisions of section 290.0065,
15 Florida Statutes, limiting the total number of enterprise
16 zones designated and the number of enterprise zones within a
17 population category, the Office of Tourism, Trade, and
18 Economic Development may designate one enterprise zone under
19 this section. The Office of Tourism, Trade, and Economic
20 Development shall establish the initial effective date of the
21 enterprise zone designated pursuant to this section.
22 Section 16. Effective upon this act becoming a law,
23 section 11.35, Florida Statutes, is created to read:
24 11.35 Joint Legislative Committee on Tax Exemptions;
25 membership; duties.--
26 (1) The Joint Legislative Committee on Tax Exemptions
27 is created as a joint standing committee of the Legislature
28 composed of 12 members, 6 of whom are members of the Senate
29 appointed by the President of the Senate and 6 of whom are
30 members of the House of Representatives appointed by the
31 Speaker of the House of Representatives. The terms of members
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1 are 2 years and run from one organization session of the
2 Legislature to the following organization session. In each
3 even-numbered year, the President of the Senate shall appoint
4 a member of the Senate to serve as chair for a term of 1 year;
5 and, in each odd-numbered year, the Speaker of the House of
6 Representatives shall appoint a member of the House of
7 Representatives to serve as chair for a term of 1 year. A
8 vacancy is to be filled for the unexpired portion of the term
9 in the same manner as the original appointment.
10 (2) The committee shall conduct a periodic review of
11 all exemptions from taxation under chapter 212, Florida
12 Statutes, except those specified in section 212.25(3), Florida
13 Statutes. The committee must complete the first of its reviews
14 by December 1, 2004, and its initial review of all exemptions
15 by December 1, 2009. For purposes of the review, the committee
16 shall:
17 (a) Assign each exemption to a discrete category of
18 exemptions, placing, to the extent practicable, similar and
19 related exemptions within the same category. The committee
20 shall identify discrete classes of transactions exempted by s.
21 212.25(2) and assign the exemption of each class to the
22 appropriate category.
23 (b) Schedule, for each year, one or more of the
24 categories to be reviewed before the following regular session
25 of the Legislature. Each category must be reviewed once by
26 December 1, 2009. By December 1, 2003, the committee shall
27 prepare, and submit to the President of the Senate and the
28 Speaker of the House of Representatives for introduction at
29 the 2004 regular session of the Legislature, a proposed bill
30 that amends the statutes to set the expiration date for each
31 exemption 18 months after the year in which it is scheduled
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1 for review. The proposed bill shall set July 1, 2006, as the
2 expiration date for those exemptions which are scheduled to be
3 reviewed by December 1, 2004.
4 (c) Adopt standards and criteria that it will use for
5 its review of exemptions and upon which it will base its
6 recommendation to reauthorize an exemption. In developing
7 these standards and criteria, the committee should consider
8 the following principles of taxation:
9 1. Equity.--The Florida tax system should treat
10 individuals equitably. It should impose similar tax burdens on
11 people in similar circumstances and should minimize
12 regressivity.
13 2. Compliance.--The Florida tax system should
14 facilitate taxpayer compliance. It should be simple and easy
15 to understand so as to minimize compliance costs and increase
16 the visibility and awareness of the taxes being paid.
17 Enforcement and collection of tax revenues should be done in a
18 fair, consistent, professional, predictable, and
19 cost-effective manner.
20 3. Promotion of competition.--The Florida tax system
21 should be responsive to interstate and international
22 competition in order to encourage savings and investment in
23 plant, equipment, people, and technology.
24 4. Neutrality.--The Florida tax system should affect
25 competitors uniformly and not become a tool for "social
26 engineering." It should minimize government involvement in
27 investment decisions, making any such involvement explicit,
28 and should minimize pyramiding.
29 5. Stability.--The Florida tax system should produce
30 revenues in a stable and reliable manner which are sufficient
31 to fund appropriate governmental functions and expenditures.
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1 6. Integration.--The Florida tax system should balance
2 the need for integration of federal, state, and local
3 taxation.
4 7. Public purpose.--Any sales tax exemption should be
5 based upon a determination that the exemption promotes an
6 important state interest, including, but not limited to,
7 economic development, job creation and retention, economic
8 diversification, and community revitalization.
9 (3) By December 1 of each year, the committee shall
10 submit to the President of the Senate and the Speaker of the
11 House of Representatives a separate report for each category
12 of exemptions reviewed during that year. Each report must
13 contain the committee's recommendations with respect to each
14 exemption assigned to that category and include, for
15 consideration at the next regular session of the Legislature,
16 a proposed bill to reauthorize, for a period not to exceed 10
17 years, those exemptions that the committee recommends be
18 reauthorized and to cleanse the statutes of those exemptions
19 that the committee recommends be allowed to expire. Each
20 report must also include, for each exemption for which the
21 committee makes no recommendation, a separate bill to
22 reauthorize that exemption for a period not to exceed 10
23 years. Each proposed bill must provide that each reauthorized
24 exemption expires on a specified date occurring no more than
25 10 years after the effective date of the bill and is to be
26 reviewed pursuant to this section at least 18 months prior to
27 its expiration.
28 Section 17. Effective upon this act becoming a law,
29 section 212.25, Florida Statutes, is created to read:
30 212.25 Expiration and review of tax exemptions; status
31 of transactions neither expressly taxable nor exempt.--
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1 (1) Effective July 1, 2011, and on July 1 of every
2 10th year thereafter, each exemption from taxation under this
3 chapter expires, except those specified in subsection (3) and
4 those specifically set by law to expire on another date. Prior
5 to its expiration, each such exemption shall be reviewed by
6 the Joint Legislative Committee on Tax Exemptions in
7 accordance with the law governing such reviews.
8 (2) Until July 1, 2011, any sale of goods or services
9 that is neither expressly taxable nor expressly exempt from
10 taxation under this chapter is exempt from such taxation, and
11 the exemptions provided by this subsection are subject to
12 review under s. 11.35. Effective July 1, 2011, any sale of
13 goods or services that is neither expressly taxable nor
14 expressly exempt from taxation under this chapter is subject
15 to tax at the same rate as the general tax rate prescribed by
16 this chapter for the retail sale of items of tangible personal
17 property.
18 (3) Notwithstanding the other provisions of this
19 section, the following transactions remain exempt from
20 taxation under this chapter and are not subject to expiration
21 or review under this section or s. 11.35: the sale of
22 groceries, prescription drugs, health services, real property,
23 intangible personal property, or communications services; the
24 sale of tangible personal property purchased for resale or
25 imported, produced, or manufactured in this state for export;
26 and the payment of residential rent or employee salaries or
27 benefits.
28 Section 18. Except as otherwise provided in this act,
29 this act shall take effect upon becoming a law.
30
31
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