Bill Text: HB 0239

HB 0239

2003

CHAMBER ACTION

The Committee on Commerce recommends the following:

Committee Substitute

Remove the entire bill and insert:

A bill to be entitled

An act relating to community contribution tax credits;

amending ss. 220.183, 212.08, and 624.5105, F.S.;

increasing the annual limitation on the amount of such

credits which may be granted against the corporate income

tax, sales tax, and insurance premium taxes; prescribing

effect of credits with respect to retaliatory taxes;

providing an effective date.

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

Section 1. Paragraph (c) of subsection (1) of section

220.183, Florida Statutes, is amended to read:

220.183 Community contribution tax credit.--

(1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX

CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM

SPENDING.--

for all programs approved under this section, s. 212.08(5)(q),

and s. 624.5105 is $20~~$10~~million annually.

Section 2. Paragraph (q) of subsection (5) of section

212.08, Florida Statutes, is amended to read:

212.08 Sales, rental, use, consumption, distribution, and

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

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

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

are hereby specifically exempt from the tax imposed by this

chapter.

(5) EXEMPTIONS; ACCOUNT OF USE.--

(q) Community contribution tax credit for donations.--

1. Authorization.--Beginning July 1, 2001, persons who are

registered with the department under s. 212.18 to collect or

remit sales or use tax and who make donations to eligible

sponsors are eligible for tax credits against their state sales

and use tax liabilities as provided in this paragraph:

a. The credit shall be computed as 50 percent of the

person's approved annual community contribution;

b. The credit shall be granted as a refund against state

sales and use taxes reported on returns and remitted in the 12

months preceding the date of application to the department for

the credit as required in sub-subparagraph 3.c. If the annual

credit is not fully used through such refund because of

insufficient tax payments during the applicable 12-month period,

the unused amount may be included in an application for a refund

made pursuant to sub-subparagraph 3.c. in subsequent years

against the total tax payments made for such year. Carryover

credits may be applied for a 3-year period without regard to any

time limitation that would otherwise apply under s. 215.26;

c. No person shall receive more than $200,000 in annual

tax credits for all approved community contributions made in any

one year;

d. All proposals for the granting of the tax credit shall

require the prior approval of the Office of Tourism, Trade, and

Economic Development;

e. The total amount of tax credits which may be granted

for all programs approved under this paragraph, s. 220.183, and

s. 624.5105 is $20~~$10~~million annually; and

f. A person who is eligible to receive the credit provided

for in this paragraph, s. 220.183, or s. 624.5105 may receive

the credit only under the one section of the person's choice.

2. Eligibility requirements.--

a. A community contribution by a person must be in the

following form:

(I) Cash or other liquid assets;

(II) Real property;

(III) Goods or inventory; or

(IV) Other physical resources as identified by the Office

of Tourism, Trade, and Economic Development.

b. All community contributions must be reserved

exclusively for use in a project. As used in this sub-

subparagraph, the term "project" means any activity undertaken

by an eligible sponsor which is designed to construct, improve,

or substantially rehabilitate housing that is affordable to low-

income or very-low-income households as defined in s.

420.9071(19) and (28); designed to provide commercial,

industrial, or public resources and facilities; or designed to

improve entrepreneurial and job-development opportunities for

low-income persons. A project may be the investment necessary to

increase access to high-speed broadband capability in rural

communities with enterprise zones, including projects that

result in improvements to communications assets that are owned

by a business. A project may include the provision of museum

educational programs and materials that are directly related to

any project approved between January 1, 1996, and December 31,

1999, and located in an enterprise zone as referenced in s.

290.00675. This paragraph does not preclude projects that

propose to construct or rehabilitate housing for low-income or

very-low-income households on scattered sites. The Office of

Tourism, Trade, and Economic Development may reserve up to 50

percent of the available annual tax credits for housing for

100

very-low-income households pursuant to s. 420.9071(28) for the

101

first 6 months of the fiscal year. With respect to housing,

102

contributions may be used to pay the following eligible low-

103

income and very-low-income housing-related activities:

104

(I) Project development impact and management fees for

105

low-income or very-low-income housing projects;

106

(II) Down payment and closing costs for eligible persons,

107

as defined in s. 420.9071(19) and (28);

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(III) Administrative costs, including housing counseling

109

and marketing fees, not to exceed 10 percent of the community

110

contribution, directly related to low-income or very-low-income

111

projects; and

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(IV) Removal of liens recorded against residential

113

property by municipal, county, or special district local

114

governments when satisfaction of the lien is a necessary

115

precedent to the transfer of the property to an eligible person,

116

as defined in s. 420.9071(19) and (28), for the purpose of

117

promoting home ownership. Contributions for lien removal must be

118

received from a nonrelated third party.

119

c. The project must be undertaken by an "eligible

120

sponsor," which includes:

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(I) A community action program;

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(II) A nonprofit community-based development organization

123

whose mission is the provision of housing for low-income or

124

very-low-income households or increasing entrepreneurial and

125

job-development opportunities for low-income persons;

126

(III) A neighborhood housing services corporation;

127

(IV) A local housing authority created under chapter 421;

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(V) A community redevelopment agency created under s.

129

163.356;

130

(VI) The Florida Industrial Development Corporation;

131

(VII) A historic preservation district agency or

132

organization;

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(VIII) A regional workforce board;

134

(IX) A direct-support organization as provided in s.

135

1009.983;

136

(X) An enterprise zone development agency created under s.

137

290.0056;

138

(XI) A community-based organization incorporated under

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chapter 617 which is recognized as educational, charitable, or

140

scientific pursuant to s. 501(c)(3) of the Internal Revenue Code

141

and whose bylaws and articles of incorporation include

142

affordable housing, economic development, or community

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development as the primary mission of the corporation;

144

(XII) Units of local government;

145

(XIII) Units of state government; or

146

(XIV) Any other agency that the Office of Tourism, Trade,

147

and Economic Development designates by rule.

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149

In no event may a contributing person have a financial interest

150

in the eligible sponsor.

151

d. The project must be located in an area designated an

152

enterprise zone or a Front Porch Florida Community pursuant to

153

s. 14.2015(9)(b), unless the project increases access to high-

154

speed broadband capability for rural communities with enterprise

155

zones but is physically located outside the designated rural

156

zone boundaries. Any project designed to construct or

157

rehabilitate housing for low-income or very-low-income

158

households as defined in s. 420.0971(19) and (28) is exempt from

159

the area requirement of this sub-subparagraph.

160

3. Application requirements.--

161

a. Any eligible sponsor seeking to participate in this

162

program must submit a proposal to the Office of Tourism, Trade,

163

and Economic Development which sets forth the name of the

164

sponsor, a description of the project, and the area in which the

165

project is located, together with such supporting information as

166

is prescribed by rule. The proposal must also contain a

167

resolution from the local governmental unit in which the project

168

is located certifying that the project is consistent with local

169

plans and regulations.

170

b. Any person seeking to participate in this program must

171

submit an application for tax credit to the Office of Tourism,

172

Trade, and Economic Development which sets forth the name of the

173

sponsor, a description of the project, and the type, value, and

174

purpose of the contribution. The sponsor shall verify the terms

175

of the application and indicate its receipt of the contribution,

176

which verification must be in writing and accompany the

177

application for tax credit. The person must submit a separate

178

tax credit application to the office for each individual

179

contribution that it makes to each individual project.

180

c. Any person who has received notification from the

181

Office of Tourism, Trade, and Economic Development that a tax

182

credit has been approved must apply to the department to receive

183

the refund. Application must be made on the form prescribed for

184

claiming refunds of sales and use taxes and be accompanied by a

185

copy of the notification. A person may submit only one

186

application for refund to the department within any 12-month

187

period.

188

4. Administration.--

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a. The Office of Tourism, Trade, and Economic Development

190

may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary

191

to administer this paragraph, including rules for the approval

192

or disapproval of proposals by a person.

193

b. The decision of the Office of Tourism, Trade, and

194

Economic Development must be in writing, and, if approved, the

195

notification shall state the maximum credit allowable to the

196

person. Upon approval, the office shall transmit a copy of the

197

decision to the Department of Revenue.

198

c. The Office of Tourism, Trade, and Economic Development

199

shall periodically monitor all projects in a manner consistent

200

with available resources to ensure that resources are used in

201

accordance with this paragraph; however, each project must be

202

reviewed at least once every 2 years.

203

d. The Office of Tourism, Trade, and Economic Development

204

shall, in consultation with the Department of Community Affairs,

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the Florida Housing Finance Corporation, and the statewide and

206

regional housing and financial intermediaries, market the

207

availability of the community contribution tax credit program to

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community-based organizations.

209

5. Expiration.--This paragraph expires June 30, 2005;

210

however, any accrued credit carryover that is unused on that

211

date may be used until the expiration of the 3-year carryover

212

period for such credit.

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Section 3. Paragraph (c) of subsection (1) of section

214

624.5105, Florida Statutes, is amended to read:

215

624.5105 Community contribution tax credit; authorization;

216

limitations; eligibility and application requirements;

217

administration; definitions; expiration.--

218

(1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--

219

220

for all programs approved under this section, s. 212.08(5)(q),

221

and s. 220.183 is $20~~$10~~ million annually. An insurer claiming

222

a credit against premium tax liability earned through an

223

investment under this subsection shall not be required to pay

224

any additional retaliatory tax levied pursuant to s. 624.5091 as

225

a result of claiming such credit.

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Section 3. This act shall take effect July 1, 2003.