Senate Bill sb2786

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    Florida Senate - 2003                                  SB 2786

    By Senator Diaz de la Portilla





    36-1804-03                                         See HB 1629

  1                      A bill to be entitled

  2         An act relating to urban revitalization;

  3         providing a popular name; providing

  4         definitions; providing criteria and procedures

  5         for an urban revitalization tax-free zone;

  6         creating the Urban Revitalization Task Force;

  7         providing for membership and duties; providing

  8         for reimbursement for travel expenses;

  9         providing for an executive director, technical

10         experts, and other employees; specifying

11         criteria to be eligible for tax exemptions;

12         requiring a report; requiring review of the

13         Tax-Free Urban Revitalization Pilot Project by

14         the Office of Program Policy Analysis and

15         Government Accountability; providing for future

16         repeal of the act; providing an effective date.

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

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20         Section 1.  This act shall be known by the popular name

21  the "Tax-Free Urban Revitalization Pilot Project Act."

22         Section 2.  Definitions.--As used in this act, the

23  term:

24         (1)  "Business" means any activity engaged in by any

25  person, or caused to be engaged in by any person, with the

26  object of private or public gain, benefit, or advantage,

27  either direct or indirect. Except for the sales of any

28  aircraft, boat, mobile home, or motor vehicle, the term

29  "business" shall not be construed to include occasional or

30  isolated sales or transactions involving tangible personal

31  property or services by a person who does not hold himself or

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    Florida Senate - 2003                                  SB 2786
    36-1804-03                                         See HB 1629




 1  herself out as engaged in business, but includes other charges

 2  for the sale or rental of tangible personal property, sales of

 3  services taxable under chapter 212, Florida Statutes, sales or

 4  charges of admission, communication services, all rentals and

 5  leases of living quarters, other than low-rent housing

 6  operated under chapter 421, Florida Statutes, sleeping or

 7  housekeeping accommodations in hotels, apartment houses,

 8  rooming houses, tourist or trailer camps, and all rentals of

 9  or licenses in real property, other than low-rent housing

10  operated under chapter 421, Florida Statutes, all leases or

11  rentals of or licenses in parking lots or garages for motor

12  vehicles, docking or storage spaces for boats in boat docks or

13  marinas as defined in section 159.02(21), Florida Statutes,

14  and made subject to a tax imposed by this act.

15         (2)  "Tax-free zone" means an urban revitalization zone

16  which will allow qualified businesses, as determined by the

17  Urban Revitalization Task Force, to be exempt from charging

18  and paying state sales tax and from document taxes, within

19  Miami-Dade County, specifically the area bordered by northwest

20  23rd Street to the north, northwest 5th Street to the south,

21  northeast First Avenue to the east, and northwest 8th Avenue

22  to the west.

23         (3)  "Urban Revitalization Task Force" means the task

24  force created under section 4 that determines which businesses

25  can apply for document tax and sales tax exemptions.

26         Section 3.  Urban revitalization tax-free zone;

27  criteria; procedures.--

28         (1)(a)  Any business established beginning July 1,

29  2003, in the tax-free zone specified in subsection 1(2) shall

30  receive a sales tax exemption under section 212.08, Florida

31  Statutes. In order for a new business to receive this sales

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    Florida Senate - 2003                                  SB 2786
    36-1804-03                                         See HB 1629




 1  tax exemption and receive an exemption on document taxes, said

 2  business must apply with the Urban Revitalization Task Force

 3  created under section 4 for such exemption.

 4         (b)  The exemption shall be available to a new business

 5  for a period not to exceed the year in which ad valorem taxes

 6  are first levied against the business and the 10 years

 7  immediately thereafter. The credit shall be available to an

 8  expanded existing business for a period not to exceed the year

 9  in which ad valorem taxes are first levied on additional real

10  or tangible personal property acquired to facilitate the

11  expansion or rebuilding and the 5 years immediately

12  thereafter.

13         (c)  To be eligible for an exemption, a new, expanded,

14  or rebuilt business shall file a notice with the Urban

15  Revitalization Task Force. The notice shall be filed no later

16  than April 1 of the year in which new or additional real or

17  tangible personal property acquired to facilitate such new,

18  expanded, or rebuilt facility is first subject to assessment.

19  The notice shall be made on a form prescribed by the

20  Department of Revenue and shall include separate descriptions

21  of:

22         1.  Real and tangible personal property owned or leased

23  by the business prior to expansion, if any.

24         2.  Net new or additional real and tangible personal

25  property acquired to facilitate the new, expanded, or rebuilt

26  facility.

27         (2)(a)  To apply for a sales and document tax exemption

28  under this act, a new, expanded, or rebuilt business must file

29  under oath with the Urban Revitalization Task Force an

30  application prescribed by the task force for claiming the

31  exemption authorized by this section. Within 10 working days

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    Florida Senate - 2003                                  SB 2786
    36-1804-03                                         See HB 1629




 1  after receipt of an application, the task force shall review

 2  the application to determine whether it contains all the

 3  information required pursuant to this section and meets the

 4  criteria set out in this section. The task force shall certify

 5  all applications that contain the information required

 6  pursuant to this section and meet the criteria set out in this

 7  section as eligible to receive a credit. The task force shall

 8  also certify whether 20 percent of the employees of the

 9  business, excluding temporary and part-time employees, are

10  residents of this zone or of a contiguous enterprise zone. The

11  certification shall be in writing, and a copy of the

12  certification shall be transmitted to the executive director

13  of the Department of Revenue. The business shall be

14  responsible for forwarding all certified applications to the

15  department.

16         (b)  When filing for a tax exemption, a business shall

17  indicate whether it is a small business as defined by section

18  288.703(1), Florida Statutes.

19         (c)  The provisions of this section shall expire and be

20  void on June 30, 2013, and no business shall be allowed to

21  begin claiming such sales tax exemptions after that date.

22         Section 4.  Urban Revitalization Task Force; creation;

23  membership and duties.--

24         (1)  The Urban Revitalization Task Force shall be

25  composed of a business owner operating within the tax-free

26  zone, appointed by the Governor; a resident residing within

27  the tax-free zone, appointed by the Governor; a member of the

28  House of Representatives residing in Miami-Dade County,

29  appointed by the Speaker of the House of Representatives; a

30  member of the Senate residing in the county, appointed by the

31  President of the Senate; a county commissioner appointed by

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    Florida Senate - 2003                                  SB 2786
    36-1804-03                                         See HB 1629




 1  the County Mayor; a city commissioner appointed by the City

 2  Mayor; and the director of the Office of Tourism, Trade, and

 3  Economic Development. The terms of office for task force

 4  members shall be for 4 years. A vacancy occurring during a

 5  term shall be filled for the unexpired term in the same manner

 6  as the original appointment. A task force member shall receive

 7  no compensation for his or her services, but is entitled to

 8  the necessary expenses, including travel expenses as provided

 9  in section 112.061, Florida Statutes, incurred in the

10  discharge of his or her duties. Each task force member shall

11  hold office until a successor has been appointed and has

12  qualified. A certificate of the appointment or reappointment

13  of any task force member shall be filed with the clerk of

14  Miami-Dade County, and the certificate is conclusive evidence

15  of the due and proper appointment of the task force member.

16  The task force must meet on a quarterly basis, at a minimum,

17  in order to review and make determinations as to business to

18  attain tax-free status. The task force shall vote and

19  designate a chair and vice chair.

20         (2)  The task force may employ an executive director,

21  technical experts, and such other agents and employees,

22  permanent and temporary, as it requires, and determine their

23  qualifications, duties, and compensation. For such legal

24  services as it requires, the task force may employ or retain

25  its own counsel and legal staff. The task force authorized to

26  transact business and exercise powers under this act shall

27  file with the governing body, on or before March 31 of each

28  year, a report of its activities for the preceding fiscal

29  year, which report shall include a complete financial

30  statement setting forth its assets, liabilities, income, and

31  operating expenses as of the end of such fiscal year. At the

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    Florida Senate - 2003                                  SB 2786
    36-1804-03                                         See HB 1629




 1  time of filing the report, the task force shall publish in a

 2  newspaper of general circulation in the community a notice to

 3  the effect that such report has been filed with the county or

 4  municipality and that the report is available for inspection

 5  during business hours in the office of the clerk of Miami-Dade

 6  County and in the office of the task force.

 7         (3)  In order to qualify for a tax exemption under this

 8  act, a business must provide a statement, under oath, that no

 9  less than 20 percent of its employees are residents of the

10  tax-free zone or an enterprise zone in the area. The business

11  may be exempt from this 20-percent requirement if it is able

12  to demonstrate just cause to the task force. It shall be a

13  condition precedent to maintaining tax-free status that such

14  employment requirements be fulfilled throughout each year

15  during the 10-year period of the credit. The statement shall

16  set forth the name and place of residence of each permanent

17  employee on the last day of business of the tax year for which

18  the credit is claimed or, if the employee is no longer

19  employed or eligible for the credit on that date, the last

20  calendar day of the last full calendar month the employee was

21  employed or eligible for the credit at the relevant site.

22         Section 5.  Review of pilot project.--Prior to the 2012

23  Regular Session of the Legislature, the Office of Program

24  Policy Analysis and Government Accountability shall review and

25  evaluate the effectiveness and viability of the Tax-Free Urban

26  Revitalization Pilot Project created under this act. The

27  Office of Program Policy Analysis and Government

28  Accountability shall specifically evaluate whether relief from

29  certain taxes induced new investment and development in the

30  area; increased the number of jobs created or retained in the

31  area; induced the renovation, rehabilitation, restoration,

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    Florida Senate - 2003                                  SB 2786
    36-1804-03                                         See HB 1629




 1  improvement, or new construction of businesses or housing

 2  within the area; or contributed to the economic viability and

 3  profitability of business and commerce located within the

 4  area. The Office of Program Policy Analysis and Government

 5  Accountability shall submit a report of its findings and

 6  recommendations to the Speaker of the House of Representatives

 7  and the President of the Senate no later than January 15,

 8  2012.

 9         Section 6.  This act shall stand repealed on June 30,

10  2013, and any designation made pursuant to this act shall be

11  revoked on that date.

12         Section 7.  This act shall take effect upon becoming a

13  law.

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