HB 0109 2004
1	A bill to be entitled
2	An act relating to the community contribution tax credit;
3	amending ss. 212.08, 220.03, 220.183, and 624.5105, F.S.;
4	deleting provisions providing for a June 30, 2005,
5	expiration date; providing an effective date.
6
7	Be It Enacted by the Legislature of the State of Florida:
8
9	Section 1. Paragraph (q) of subsection (5) of section
10	212.08, Florida Statutes, is amended to read:
11	212.08 Sales, rental, use, consumption, distribution, and
12	storage tax; specified exemptions.--The sale at retail, the
13	rental, the use, the consumption, the distribution, and the
14	storage to be used or consumed in this state of the following
15	are hereby specifically exempt from the tax imposed by this
16	chapter.
17	(5) EXEMPTIONS; ACCOUNT OF USE.--
18	(q) Community contribution tax credit for donations.--
19	1. Authorization.--Beginning July 1, 2001, persons who are
20	registered with the department under s. 212.18 to collect or
21	remit sales or use tax and who make donations to eligible
22	sponsors are eligible for tax credits against their state sales
23	and use tax liabilities as provided in this paragraph:
24	a. The credit shall be computed as 50 percent of the
25	person's approved annual community contribution;
26	b. The credit shall be granted as a refund against state
27	sales and use taxes reported on returns and remitted in the 12
28	months preceding the date of application to the department for
29	the credit as required in sub-subparagraph 3.c. If the annual
30	credit is not fully used through such refund because of
31	insufficient tax payments during the applicable 12-month period,
32	the unused amount may be included in an application for a refund
33	made pursuant to sub-subparagraph 3.c. in subsequent years
34	against the total tax payments made for such year. Carryover
35	credits may be applied for a 3-year period without regard to any
36	time limitation that would otherwise apply under s. 215.26;
37	c. No person shall receive more than $200,000 in annual
38	tax credits for all approved community contributions made in any
39	one year;
40	d. All proposals for the granting of the tax credit shall
41	require the prior approval of the Office of Tourism, Trade, and
42	Economic Development;
43	e. The total amount of tax credits which may be granted
44	for all programs approved under this paragraph, s. 220.183, and
45	s. 624.5105 is $10 million annually; and
46	f. A person who is eligible to receive the credit provided
47	for in this paragraph, s. 220.183, or s. 624.5105 may receive
48	the credit only under the one section of the person's choice.
49	2. Eligibility requirements.--
50	a. A community contribution by a person must be in the
51	following form:
52	(I) Cash or other liquid assets;
53	(II) Real property;
54	(III) Goods or inventory; or
55	(IV) Other physical resources as identified by the Office
56	of Tourism, Trade, and Economic Development.
57	b. All community contributions must be reserved
58	exclusively for use in a project. As used in this sub-
59	subparagraph, the term "project" means any activity undertaken
60	by an eligible sponsor which is designed to construct, improve,
61	or substantially rehabilitate housing that is affordable to low-
62	income or very-low-income households as defined in s.
63	420.9071(19) and (28); designed to provide commercial,
64	industrial, or public resources and facilities; or designed to
65	improve entrepreneurial and job-development opportunities for
66	low-income persons. A project may be the investment necessary to
67	increase access to high-speed broadband capability in rural
68	communities with enterprise zones, including projects that
69	result in improvements to communications assets that are owned
70	by a business. A project may include the provision of museum
71	educational programs and materials that are directly related to
72	any project approved between January 1, 1996, and December 31,
73	1999, and located in an enterprise zone as referenced in s.
74	290.00675. This paragraph does not preclude projects that
75	propose to construct or rehabilitate housing for low-income or
76	very-low-income households on scattered sites. The Office of
77	Tourism, Trade, and Economic Development may reserve up to 50
78	percent of the available annual tax credits for housing for
79	very-low-income households pursuant to s. 420.9071(28) for the
80	first 6 months of the fiscal year. With respect to housing,
81	contributions may be used to pay the following eligible low-
82	income and very-low-income housing-related activities:
83	(I) Project development impact and management fees for
84	low-income or very-low-income housing projects;
85	(II) Down payment and closing costs for eligible persons,
86	as defined in s. 420.9071(19) and (28);
87	(III) Administrative costs, including housing counseling
88	and marketing fees, not to exceed 10 percent of the community
89	contribution, directly related to low-income or very-low-income
90	projects; and
91	(IV) Removal of liens recorded against residential
92	property by municipal, county, or special district local
93	governments when satisfaction of the lien is a necessary
94	precedent to the transfer of the property to an eligible person,
95	as defined in s. 420.9071(19) and (28), for the purpose of
96	promoting home ownership. Contributions for lien removal must be
97	received from a nonrelated third party.
98	c. The project must be undertaken by an "eligible
99	sponsor," which includes:
100	(I) A community action program;
101	(II) A nonprofit community-based development organization
102	whose mission is the provision of housing for low-income or
103	very-low-income households or increasing entrepreneurial and
104	job-development opportunities for low-income persons;
105	(III) A neighborhood housing services corporation;
106	(IV) A local housing authority created under chapter 421;
107	(V) A community redevelopment agency created under s.
108	163.356;
109	(VI) The Florida Industrial Development Corporation;
110	(VII) A historic preservation district agency or
111	organization;
112	(VIII) A regional workforce board;
113	(IX) A direct-support organization as provided in s.
114	1009.983;
115	(X) An enterprise zone development agency created under s.
116	290.0056;
117	(XI) A community-based organization incorporated under
118	chapter 617 which is recognized as educational, charitable, or
119	scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
120	and whose bylaws and articles of incorporation include
121	affordable housing, economic development, or community
122	development as the primary mission of the corporation;
123	(XII) Units of local government;
124	(XIII) Units of state government; or
125	(XIV) Any other agency that the Office of Tourism, Trade,
126	and Economic Development designates by rule.
127
128	In no event may a contributing person have a financial interest
129	in the eligible sponsor.
130	d. The project must be located in an area designated an
131	enterprise zone or a Front Porch Florida Community pursuant to
132	s. 14.2015(9)(b), unless the project increases access to high-
133	speed broadband capability for rural communities with enterprise
134	zones but is physically located outside the designated rural
135	zone boundaries. Any project designed to construct or
136	rehabilitate housing for low-income or very-low-income
137	households as defined in s. 420.0971(19) and (28) is exempt from
138	the area requirement of this sub-subparagraph.
139	3. Application requirements.--
140	a. Any eligible sponsor seeking to participate in this
141	program must submit a proposal to the Office of Tourism, Trade,
142	and Economic Development which sets forth the name of the
143	sponsor, a description of the project, and the area in which the
144	project is located, together with such supporting information as
145	is prescribed by rule. The proposal must also contain a
146	resolution from the local governmental unit in which the project
147	is located certifying that the project is consistent with local
148	plans and regulations.
149	b. Any person seeking to participate in this program must
150	submit an application for tax credit to the Office of Tourism,
151	Trade, and Economic Development which sets forth the name of the
152	sponsor, a description of the project, and the type, value, and
153	purpose of the contribution. The sponsor shall verify the terms
154	of the application and indicate its receipt of the contribution,
155	which verification must be in writing and accompany the
156	application for tax credit. The person must submit a separate
157	tax credit application to the office for each individual
158	contribution that it makes to each individual project.
159	c. Any person who has received notification from the
160	Office of Tourism, Trade, and Economic Development that a tax
161	credit has been approved must apply to the department to receive
162	the refund. Application must be made on the form prescribed for
163	claiming refunds of sales and use taxes and be accompanied by a
164	copy of the notification. A person may submit only one
165	application for refund to the department within any 12-month
166	period.
167	4. Administration.--
168	a. The Office of Tourism, Trade, and Economic Development
169	may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
170	to administer this paragraph, including rules for the approval
171	or disapproval of proposals by a person.
172	b. The decision of the Office of Tourism, Trade, and
173	Economic Development must be in writing, and, if approved, the
174	notification shall state the maximum credit allowable to the
175	person. Upon approval, the office shall transmit a copy of the
176	decision to the Department of Revenue.
177	c. The Office of Tourism, Trade, and Economic Development
178	shall periodically monitor all projects in a manner consistent
179	with available resources to ensure that resources are used in
180	accordance with this paragraph; however, each project must be
181	reviewed at least once every 2 years.
182	d. The Office of Tourism, Trade, and Economic Development
183	shall, in consultation with the Department of Community Affairs,
184	the Florida Housing Finance Corporation, and the statewide and
185	regional housing and financial intermediaries, market the
186	availability of the community contribution tax credit program to
187	community-based organizations.
188	5. Expiration.--This paragraph expires June 30, 2005;
189	however, any accrued credit carryover that is unused on that
190	date may be used until the expiration of the 3-year carryover
191	period for such credit.
192	Section 2. Paragraph (d) of subsection (1) of section
193	220.03, Florida Statutes, is amended to read:
194	220.03 Definitions.--
195	(1) SPECIFIC TERMS.--When used in this code, and when not
196	otherwise distinctly expressed or manifestly incompatible with
197	the intent thereof, the following terms shall have the following
198	meanings:
199	(d) "Community contribution" means the grant by a business
200	firm of any of the following items:
201	1. Cash or other liquid assets.
202	2. Real property.
203	3. Goods or inventory.
204	4. Other physical resources as identified by the
205	department.
206
207	The provisions of this paragraph shall expire and be void on
208	June 30, 2005.
209	Section 3. Subsection (5) of section 220.183, Florida
210	Statutes, is amended to read:
211	220.183 Community contribution tax credit.--
212	(5) EXPIRATION.--The provisions of this section, except
213	paragraph (1)(e), shall expire and be void on June 30, 2005.
214	Section 4. Subsection (6) of section 624.5105, Florida
215	Statutes, is amended to read:
216	624.5105 Community contribution tax credit; authorization;
217	limitations; eligibility and application requirements;
218	administration; definitions; expiration.--
219	(6) EXPIRATION.--The provisions of this section, except
220	paragraph (1)(e), shall expire and be void on June 30, 2005.
221	Section 5. This act shall take effect upon becoming a law.