HB 1629 2003
   
1 CHAMBER ACTION
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6          The Committee on Commerce recommends the following:
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8          Committee Substitute
9          Remove the entire bill and insert:
10 A bill to be entitled
11          An act relating to urban revitalization; providing a
12    popular name; providing definitions; providing criteria
13    and procedures for an urban revitalization tax-free zone;
14    requiring the Department of Revenue to issue tax exemption
15    certificates under certain circumstances; providing an
16    expiration date; creating the Urban Revitalization Task
17    Force; providing for membership and duties; providing for
18    reimbursement for travel expenses; providing for an
19    executive director, technical experts, and other
20    employees, subject to specific funding; requiring reports;
21    requiring review of the Tax-Free Urban Revitalization
22    Pilot Project by the Office of Program Policy Analysis and
23    Government Accountability; providing for future repeal of
24    the act; providing an effective date.
25         
26          Be It Enacted by the Legislature of the State of Florida:
27         
28          Section 1. Popular name.--This act shall be known by the
29    popular name the "Tax-Free Urban Revitalization Pilot Project
30    Act."
31          Section 2. Definitions.-As used in this act, the term:
32          (1) "Business" shall have the same meaning as provided in
33    s. 212.02(2), Florida Statutes.
34          (2) "Tax-free zone" means an urban revitalization zone
35    which will allow qualified businesses certified by the Urban
36    Revitalization Task Force to be exempt from charging and paying
37    the state sales and use tax imposed pursuant to chapter 212,
38    Florida Statutes, and from the excise tax on documents imposed
39    pursuant to chapter 201, Florida Statutes, within Miami-Dade
40    County, specifically the area bordered by Northwest 23rd Street
41    to the north, Northwest 5th Street to the south, Northeast First
42    Avenue to the east, and Northwest 8th Avenue to the west.
43          (3) "Urban Revitalization Task Force" means the task force
44    created pursuant to this act that certifies businesses in the
45    tax free zone for exemption from the excise tax on documents
46    imposed pursuant to chapter 201, Florida Statutes, and the sales
47    and use tax imposed pursuant to chapter 212, Florida Statutes.
48          Section 3. Urban revitalization tax-free zone; criteria;
49    procedures.--
50          (1)(a) A business established on or after July 1, 2003, in
51    the tax-free zone shall receive an exemption from the excise tax
52    on documents imposed pursuant to chapter 201, Florida Statutes,
53    and the sales and use tax imposed pursuant to chapter 212,
54    Florida Statutes. In order for a business to receive a
55    certification exempting it from the sales and use tax and the
56    excise tax on documents, said business must apply with the Urban
57    Revitalization Task Force created pursuant to section 4 of this
58    act for certification to receive such exemption.
59          (b) For a business established in a tax-free zone on or
60    after July 1, 2003, the exemption shall be available for a
61    period not to exceed the year in which the business receives its
62    initial certification from the task force and the 10 years
63    immediately thereafter. For any business established prior to
64    July 1, 2003, the exemption shall be available for a period not
65    to exceed the year in which the business receives its initial
66    certification from the task force and the 5 years immediately
67    thereafter.
68          (c) To receive a certification for an exemption, a
69    business shall file an application for certification with the
70    Urban Revitalization Task Force. The application shall be filed
71    no later than April 1 of the year in which the business is
72    seeking an exemption. The application shall be made on a form
73    prescribed by the task force and shall include separate
74    descriptions of:
75          1. Real and tangible personal property owned or leased by
76    the business prior to expansion, if any.
77          2. Net new or additional real and tangible personal
78    property acquired to facilitate the new, expanded, or rebuilt
79    facility.
80          (d) The task force shall review the application to
81    determine whether it contains all the information required
82    pursuant to this section and meets the criteria set out in this
83    section. The task force shall certify all applications that
84    contain the information required pursuant to this section and
85    meet the criteria set out in this section as eligible to receive
86    an exemption. The certification shall be in writing and a copy
87    of the certification shall be transmitted to the executive
88    director of the Department of Revenue within 10 days after
89    approval of the certification by the task force.
90          (2) The Department of Revenue shall issue a tax exemption
91    permit to businesses holding a certified exemption issued by the
92    Urban Revitalization Task Force.
93          (3) In order to qualify for a tax exemption under this
94    act, a business must provide a statement that no less than 20
95    percent of its employees are residents of the tax-free zone or
96    an enterprise zone in the area. The business may be exempt from
97    this 20-percent requirement if it is able to demonstrate just
98    cause to the task force. It shall be a condition precedent to
99    maintaining tax-free status that such employment requirements be
100    fulfilled throughout each year during the 10-year period of the
101    credit. The statement shall set forth the name and place of
102    residence of each permanent employee on the last day of business
103    of the tax year for which the credit is claimed or, if an
104    employee is no longer employed or eligible for the credit on
105    that date, on the last calendar day of the last full calendar
106    month the employee was employed or eligible for the credit at
107    the relevant site.
108          (4) The provisions of this section shall expire and be
109    void on June 30, 2013, and no business shall be allowed to claim
110    such sales and use tax and excise tax on documents exemptions
111    after that date.
112          Section 4. Urban Revitalization Task Force; creation;
113    membership and duties.--
114          (1) There is hereby created an Urban Revitalization Task
115    Force. The task force shall be composed of a business owner
116    operating within the tax-free zone, appointed by the Governor; a
117    resident residing within the tax-free zone, appointed by the
118    Governor; a member of the House of Representatives residing in
119    Miami-Dade County, appointed by the Speaker of the House of
120    Representatives; a member of the Senate residing in Miami-Dade
121    County, appointed by the President of the Senate; a county
122    commissioner appointed by the City Mayor; a city commissioner
123    appointed by the City Mayor; and the director of the Office of
124    Tourism, Trade, and Economic Development. The terms of office
125    for task force members shall be for 4 years, except that members
126    appointed by the Speaker of the House of Representatives and the
127    President of the Senate shall serve for terms of 2 years. A
128    vacancy occurring during a term shall be filled for the
129    unexpired term in the same manner as the original appointment. A
130    task force member shall receive no compensation for his or her
131    services, but is entitled to the necessary expenses, including
132    travel expenses as provided in s. 112.061, Florida Statutes,
133    incurred in the discharge of his or her duties. Each task force
134    member shall hold office until a successor has been appointed
135    and has qualified. A certificate of the appointment or
136    reappointment of any task force member shall be filed with the
137    clerk of Miami-Dade County, and the certificate is conclusive
138    evidence of the due and proper appointment of the task force
139    member. The task force must meet on a quarterly basis, at a
140    minimum, in order to review applications and make determinations
141    as to businesses eligible to attain tax-free status. The task
142    force shall vote and designate a chair and vice chair.
143          (2) Subject to funding by the Miami-Dade County
144    Commission, the task force may employ an executive director,
145    technical experts, and such other agents and employees,
146    permanent and temporary, as it requires and determine their
147    qualifications, duties, and compensation. For such legal
148    services as it requires, the task force may employ or retain its
149    own counsel and legal staff. The task force authorized to
150    transact business and exercise powers under this act shall file
151    with the Clerk of Miami-Dade County, on or before March 31 of
152    each year, a report of its activities for the preceding fiscal
153    year, which report shall include a complete financial statement
154    setting forth its assets, liabilities, income, and operating
155    expenses as of the end of such fiscal year. At the time of
156    filing the report, the task force shall publish in a newspaper
157    of general circulation in the community a notice to the effect
158    that such report has been filed with the county or municipality
159    and is available for inspection during business hours in the
160    office of the Clerk of Miami-Dade County and in the office of
161    the task force.
162          (3) The task force shall submit a report of its activities
163    to the Governor, the Speaker of the House of Representatives,
164    and the President of the Senate by February 15 of each year.
165          Section 5. Review of pilot project.--Prior to the 2012
166    Regular Session of the Legislature, the Office of Program Policy
167    Analysis and Government Accountability shall review and evaluate
168    the effectiveness and viability of the Tax-Free Urban
169    Revitalization Pilot Project created under this act. The Office
170    of Program Policy Analysis and Government Accountability shall
171    specifically evaluate whether relief from certain taxes induced
172    new investment and development in the area; increased the number
173    of jobs created or retained in the area; induced the renovation,
174    rehabilitation, restoration, improvement, or new construction of
175    businesses or housing within the area; or contributed to the
176    economic viability and profitability of business and commerce
177    located within the area. The Office of Program Policy Analysis
178    and Government Accountability shall submit a report of its
179    findings and recommendations to the Speaker of the House of
180    Representatives and the President of the Senate no later than
181    January 15, 2012.
182          Section 6. This act shall stand repealed on June 30, 2013,
183    and any designation made pursuant to this act shall be revoked
184    on that date.
185          Section 7. This act shall take effect January 1, 2004.