HB 0779 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 enterprise zones; amending s. 212.08,
12	F.S.; reducing the minimum purchase price for exemption
13	from tax for business property used in an enterprise zone;
14	amending s. 290.0065, F.S.; providing for the amendment of
15	the boundaries of an enterprise zone; describing the new
16	enterprise zone boundaries; providing an approval date;
17	amending s. 290.00675, F.S.; authorizing the Office of
18	Tourism, Trade, and Economic Development to amend the
19	boundaries of specified communities and increasing the
20	population limits thereof; amending s. 290.00676, F.S.;
21	extending the deadline for requests to amend rural
22	enterprise zone boundaries; creating s. 290.00684, F.S.;
23	authorizing Escambia County to apply to the Office of
24	Tourism, Trade, and Economic Development for designation
25	of one enterprise zone, notwithstanding certain
26	limitations; providing requirements with respect thereto;
27	amending s. 290.00693, F.S.; providing that the governing
28	body of Gadsden County may apply to the Office of Tourism,
29	Trade, and Economic Development to amend the boundaries of
30	a specified enterprise zone; amending s. 290.00698, F.S.;
31	authorizing the Office of Tourism, Trade, and Economic
32	Development to approve a request to amend the boundaries
33	of the Okaloosa County enterprise zone if the amendment
34	does not increase the size of the zone by more than 1
35	square mile and is submitted before December 31, 2003;
36	providing an effective date.
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38	Be It Enacted by the Legislature of the State of Florida:
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40	Section 1. Paragraph (h) of subsection (5) of section
41	212.08, Florida Statutes, is amended to read:
42	212.08 Sales, rental, use, consumption, distribution, and
43	storage tax; specified exemptions.--The sale at retail, the
44	rental, the use, the consumption, the distribution, and the
45	storage to be used or consumed in this state of the following
46	are hereby specifically exempt from the tax imposed by this
47	chapter.
48	(5) EXEMPTIONS; ACCOUNT OF USE.--
49	(h) Business property used in an enterprise zone.--
50	1. Business property purchased for use by businesses
51	located in an enterprise zone which is subsequently used in an
52	enterprise zone shall be exempt from the tax imposed by this
53	chapter. This exemption inures to the business only through a
54	refund of previously paid taxes. A refund shall be authorized
55	upon an affirmative showing by the taxpayer to the satisfaction
56	of the department that the requirements of this paragraph have
57	been met.
58	2. To receive a refund, the business must file under oath
59	with the governing body or enterprise zone development agency
60	having jurisdiction over the enterprise zone where the business
61	is located, as applicable, an application which includes:
62	a. The name and address of the business claiming the
63	refund.
64	b. The identifying number assigned pursuant to s. 290.0065
65	to the enterprise zone in which the business is located.
66	c. A specific description of the property for which a
67	refund is sought, including its serial number or other permanent
68	identification number.
69	d. The location of the property.
70	e. The sales invoice or other proof of purchase of the
71	property, showing the amount of sales tax paid, the date of
72	purchase, and the name and address of the sales tax dealer from
73	whom the property was purchased.
74	f. Whether the business is a small business as defined by
75	s. 288.703(1).
76	g. If applicable, the name and address of each permanent
77	employee of the business, including, for each employee who is a
78	resident of an enterprise zone, the identifying number assigned
79	pursuant to s. 290.0065 to the enterprise zone in which the
80	employee resides.
81	3. Within 10 working days after receipt of an application,
82	the governing body or enterprise zone development agency shall
83	review the application to determine if it contains all the
84	information required pursuant to subparagraph 2. and meets the
85	criteria set out in this paragraph. The governing body or agency
86	shall certify all applications that contain the information
87	required pursuant to subparagraph 2. and meet the criteria set
88	out in this paragraph as eligible to receive a refund. If
89	applicable, the governing body or agency shall also certify if
90	20 percent of the employees of the business are residents of an
91	enterprise zone, excluding temporary and part-time employees.
92	The certification shall be in writing, and a copy of the
93	certification shall be transmitted to the executive director of
94	the Department of Revenue. The business shall be responsible for
95	forwarding a certified application to the department within the
96	time specified in subparagraph 4.
97	4. An application for a refund pursuant to this paragraph
98	must be submitted to the department within 6 months after the
99	tax is due on the business property that is purchased.
100	5. The provisions of s. 212.095 do not apply to any refund
101	application made pursuant to this paragraph. The amount refunded
102	on purchases of business property under this paragraph shall be
103	the lesser of 97 percent of the sales tax paid on such business
104	property or $5,000, or, if no less than 20 percent of the
105	employees of the business are residents of an enterprise zone,
106	excluding temporary and part-time employees, the amount refunded
107	on purchases of business property under this paragraph shall be
108	the lesser of 97 percent of the sales tax paid on such business
109	property or $10,000. A refund approved pursuant to this
110	paragraph shall be made within 30 days of formal approval by the
111	department of the application for the refund. No refund shall be
112	granted under this paragraph unless the amount to be refunded
113	exceeds $100 in sales tax paid on purchases made within a 60-day
114	time period.
115	6. The department shall adopt rules governing the manner
116	and form of refund applications and may establish guidelines as
117	to the requisites for an affirmative showing of qualification
118	for exemption under this paragraph.
119	7. If the department determines that the business property
120	is used outside an enterprise zone within 3 years from the date
121	of purchase, the amount of taxes refunded to the business
122	purchasing such business property shall immediately be due and
123	payable to the department by the business, together with the
124	appropriate interest and penalty, computed from the date of
125	purchase, in the manner provided by this chapter.
126	Notwithstanding this subparagraph, business property used
127	exclusively in:
128	a. Licensed commercial fishing vessels,
129	b. Fishing guide boats, or
130	c. Ecotourism guide boats
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132	that leave and return to a fixed location within an area
133	designated under s. 370.28 are eligible for the exemption
134	provided under this paragraph if all requirements of this
135	paragraph are met. Such vessels and boats must be owned by a
136	business that is eligible to receive the exemption provided
137	under this paragraph. This exemption does not apply to the
138	purchase of a vessel or boat.
139	8. The department shall deduct an amount equal to 10
140	percent of each refund granted under the provisions of this
141	paragraph from the amount transferred into the Local Government
142	Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
143	for the county area in which the business property is located
144	and shall transfer that amount to the General Revenue Fund.
145	9. For the purposes of this exemption, "business property"
146	means new or used property defined as "recovery property" in s.
147	168(c) of the Internal Revenue Code of 1954, as amended, except:
148	a. Property classified as 3-year property under s.
149	168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
150	b. Industrial machinery and equipment as defined in sub-
151	subparagraph (b)6.a. and eligible for exemption under paragraph
152	(b);
153	c. Building materials as defined in sub-subparagraph
154	(g)8.a.; and
155	d. Business property having a sales price of under $500
156	$5,000per unit.
157	10. The provisions of this paragraph shall expire and be
158	void on December 31, 2005.
159	Section 2. Subsection (12) is added to section 290.0065,
160	Florida Statutes, to read:
161	290.0065 State designation of enterprise zones.--
162	(12) Before December 31, 2003, any county as defined in s.
163	125.011(1) may apply to the Office of Tourism, Trade, and
164	Economic Development to amend the boundaries of an existing
165	enterprise zone for the purpose of replacing an area of not more
166	than 75 acres that is not suitable for development with an area
167	of the same number of acres that is suitable for development.
168	The area suitable for development must be contiguous to the
169	existing enterprise zone and must be contiguous to a zoological
170	park and the county must have previously completed a master plan
171	for the development of the area. The Office of Tourism, Trade,
172	and Economic Development shall approve the amendment effective
173	January 1, 2004, provided that the enterprise zone remains
174	consistent with the criteria and conditions imposed by s.
175	290.0055 upon the establishment of enterprise zones, including
176	the requirement that the area suffer from pervasive poverty,
177	unemployment, and general distress.
178	Section 3. Section 290.00675, Florida Statutes, is amended
179	to read:
180	290.00675 Amendment of certain enterprise zone
181	boundaries.--Notwithstanding any other provisions of law, the
182	Office of Tourism, Trade, and Economic Development may amend the
183	boundaries of an area designated as an enterprise zone in a
184	community having a population of 235,000 persons but less than
185	260,000245,000, so long as the area does not increase the
186	overall size of the zone by greater than 25 acres and the
187	increased area is contiguous to the existing enterprise zone.
188	The amendment must also be consistent with the limitations
189	imposed by s. 290.0055 upon establishment of the enterprise
190	zone.
191	Section 4. Subsection (3) of section 290.00676, Florida
192	Statutes, is amended to read:
193	290.00676 Amendment of rural enterprise zone
194	boundaries.--Notwithstanding any other law, upon recommendation
195	by Enterprise Florida, Inc., the Office of Tourism, Trade, and
196	Economic Development may approve requests to amend the
197	boundaries of rural enterprise zones as defined in s.
198	290.004(8). Boundary amendments authorized by this section are
199	subject to the following requirements:
200	(3) The local enterprise zone development agency must
201	request the amendment from Enterprise Florida, Inc., prior to
202	December 30, 20032001. The request must contain maps and
203	sufficient information to allow the office to determine the
204	number of noncontiguous areas and the total size of the rural
205	enterprise zone.
206	Section 5. Section 290.00684, Florida Statutes, is created
207	to read:
208	290.00684 Enterprise zone designation for Escambia
209	County.--Escambia County may apply to the Office of Tourism,
210	Trade, and Economic Development for designation of one
211	enterprise zone within the county encompassing an area which
212	shall not exceed 20 square miles and shall have a contiguous
213	boundary or shall consist of not more than three noncontiguous
214	areas. The application must be submitted by December 31, 2003,
215	and must comply with the requirements of s. 290.0055, except
216	subsection (3) of that section. Notwithstanding the provisions
217	of s. 290.0065 limiting the total number of enterprise zones
218	designated and the number of enterprise zones within a
219	population category, the Office of Tourism, Trade, and Economic
220	Development may designate one enterprise zone under this
221	section. The Office of Tourism, Trade, and Economic Development
222	shall establish the initial effective date of the enterprise
223	zone designated pursuant to this section.
224	Section 6. Section 290.00693, Florida Statutes, is amended
225	to read:
226	290.00693 Enterprise zone designation for Gadsden
227	County.--
228	(1)Gadsden County may apply to the Office of Tourism,
229	Trade, and Economic Development for designation of one
230	enterprise zone encompassing an area within the county. The
231	application must be submitted by December 31, 1999, and must
232	comply with the requirements of s. 290.0055. Notwithstanding the
233	provisions of s. 290.0065 limiting the total number of
234	enterprise zones designated and the number of enterprise zones
235	within a population category, the Office of Tourism, Trade, and
236	Economic Development may designate one enterprise zone under
237	this section. The Office of Tourism, Trade, and Economic
238	Development shall establish the initial effective date of the
239	enterprise zone designated pursuant to this section.
240	(2) Before December 31, 2003, the governing body of a
241	county in which an enterprise zone designated pursuant to this
242	section is located may apply to the Office of Tourism, Trade,
243	and Economic Development to amend the boundaries of the
244	enterprise zone for the purpose of replacing areas not suitable
245	for development.
246	Section 7. Section 290.00698, Florida Statutes, is amended
247	to read:
248	290.00698 Enterprise zone designation for Okaloosa
249	County.--
250	(1)Okaloosa County may apply to the Office of Tourism,
251	Trade, and Economic Development for designation of one
252	enterprise zone within an area in Okaloosa County, which zone
253	encompasses an area up to 6 square miles. The application must
254	be submitted by December 31, 2001, and must comply with the
255	requirements of s. 290.0055, except subsection (3) thereof.
256	Notwithstanding the provisions of s. 290.0065 limiting the total
257	number of enterprise zones designated and the number of
258	enterprise zones within a population category, the Office of
259	Tourism, Trade, and Economic Development may designate one
260	enterprise zone under this section. The Office of Tourism,
261	Trade, and Economic Development shall establish the initial
262	effective date of the enterprise zone designated pursuant to
263	this section.
264	(2) Notwithstanding any other provision of law, the Office
265	of Tourism, Trade, and Economic Development may approve a
266	request by Okaloosa County to amend the boundaries of the area
267	designated as an enterprise zone under this section if the
268	amendment does not increase the overall size of the enterprise
269	zone by more than 1 square mile. The amendment must also be
270	consistent with the limitations imposed by s. 290.0055. Such
271	request must be submitted to the Office of Tourism, Trade, and
272	Economic Development before December 31, 2003.
273	Section 8. This act shall take effect upon becoming a law.