Senate Bill sb1210c1
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Florida Senate - 2004 CS for SB 1210
By the Committee on Commerce, Economic Opportunities, and
Consumer Services; and Senator Wise
310-2039-04
1 A bill to be entitled
2 An act relating to community contribution tax
3 credits; amending ss. 212.08, 220.183, and
4 624.5105, F.S.; increasing the annual
5 limitation on the amount of such credits which
6 may be granted against sales and use tax, the
7 corporate income tax, and insurance premium
8 taxes; conforming the annual limitation for
9 purposes of insurance premium taxes; specifying
10 that the limitation on credits applies to sales
11 and use tax as well as to the corporate income
12 tax and insurance premium taxes; providing an
13 effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Paragraph (q) of subsection (5) of section
18 212.08, Florida Statutes, is amended to read:
19 212.08 Sales, rental, use, consumption, distribution,
20 and storage tax; specified exemptions.--The sale at retail,
21 the rental, the use, the consumption, the distribution, and
22 the storage to be used or consumed in this state of the
23 following are hereby specifically exempt from the tax imposed
24 by this chapter.
25 (5) EXEMPTIONS; ACCOUNT OF USE.--
26 (q) Community contribution tax credit for donations.--
27 1. Authorization.--Beginning July 1, 2001, persons who
28 are registered with the department under s. 212.18 to collect
29 or remit sales or use tax and who make donations to eligible
30 sponsors are eligible for tax credits against their state
31 sales and use tax liabilities as provided in this paragraph:
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Florida Senate - 2004 CS for SB 1210
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1 a. The credit shall be computed as 50 percent of the
2 person's approved annual community contribution;
3 b. The credit shall be granted as a refund against
4 state sales and use taxes reported on returns and remitted in
5 the 12 months preceding the date of application to the
6 department for the credit as required in sub-subparagraph 3.c.
7 If the annual credit is not fully used through such refund
8 because of insufficient tax payments during the applicable
9 12-month period, the unused amount may be included in an
10 application for a refund made pursuant to sub-subparagraph
11 3.c. in subsequent years against the total tax payments made
12 for such year. Carryover credits may be applied for a 3-year
13 period without regard to any time limitation that would
14 otherwise apply under s. 215.26;
15 c. No person shall receive more than $200,000 in
16 annual tax credits for all approved community contributions
17 made in any one year;
18 d. All proposals for the granting of the tax credit
19 shall require the prior approval of the Office of Tourism,
20 Trade, and Economic Development;
21 e. The total amount of tax credits which may be
22 granted for all programs approved under this paragraph, s.
23 220.183, and s. 624.5105 is $20 $10 million annually; and
24 f. A person who is eligible to receive the credit
25 provided for in this paragraph, s. 220.183, or s. 624.5105 may
26 receive the credit only under the one section of the person's
27 choice.
28 2. Eligibility requirements.--
29 a. A community contribution by a person must be in the
30 following form:
31 (I) Cash or other liquid assets;
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Florida Senate - 2004 CS for SB 1210
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1 (II) Real property;
2 (III) Goods or inventory; or
3 (IV) Other physical resources as identified by the
4 Office of Tourism, Trade, and Economic Development.
5 b. All community contributions must be reserved
6 exclusively for use in a project. As used in this
7 sub-subparagraph, the term "project" means any activity
8 undertaken by an eligible sponsor which is designed to
9 construct, improve, or substantially rehabilitate housing that
10 is affordable to low-income or very-low-income households as
11 defined in s. 420.9071(19) and (28); designed to provide
12 commercial, industrial, or public resources and facilities; or
13 designed to improve entrepreneurial and job-development
14 opportunities for low-income persons. A project may be the
15 investment necessary to increase access to high-speed
16 broadband capability in rural communities with enterprise
17 zones, including projects that result in improvements to
18 communications assets that are owned by a business. A project
19 may include the provision of museum educational programs and
20 materials that are directly related to any project approved
21 between January 1, 1996, and December 31, 1999, and located in
22 an enterprise zone as referenced in s. 290.00675. This
23 paragraph does not preclude projects that propose to construct
24 or rehabilitate housing for low-income or very-low-income
25 households on scattered sites. The Office of Tourism, Trade,
26 and Economic Development may reserve up to 50 percent of the
27 available annual tax credits for housing for very-low-income
28 households pursuant to s. 420.9071(28) for the first 6 months
29 of the fiscal year. With respect to housing, contributions may
30 be used to pay the following eligible low-income and
31 very-low-income housing-related activities:
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Florida Senate - 2004 CS for SB 1210
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1 (I) Project development impact and management fees for
2 low-income or very-low-income housing projects;
3 (II) Down payment and closing costs for eligible
4 persons, as defined in s. 420.9071(19) and (28);
5 (III) Administrative costs, including housing
6 counseling and marketing fees, not to exceed 10 percent of the
7 community contribution, directly related to low-income or
8 very-low-income projects; and
9 (IV) Removal of liens recorded against residential
10 property by municipal, county, or special district local
11 governments when satisfaction of the lien is a necessary
12 precedent to the transfer of the property to an eligible
13 person, as defined in s. 420.9071(19) and (28), for the
14 purpose of promoting home ownership. Contributions for lien
15 removal must be received from a nonrelated third party.
16 c. The project must be undertaken by an "eligible
17 sponsor," which includes:
18 (I) A community action program;
19 (II) A nonprofit community-based development
20 organization whose mission is the provision of housing for
21 low-income or very-low-income households or increasing
22 entrepreneurial and job-development opportunities for
23 low-income persons;
24 (III) A neighborhood housing services corporation;
25 (IV) A local housing authority created under chapter
26 421;
27 (V) A community redevelopment agency created under s.
28 163.356;
29 (VI) The Florida Industrial Development Corporation;
30 (VII) A historic preservation district agency or
31 organization;
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Florida Senate - 2004 CS for SB 1210
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1 (VIII) A regional workforce board;
2 (IX) A direct-support organization as provided in s.
3 1009.983;
4 (X) An enterprise zone development agency created
5 under s. 290.0056;
6 (XI) A community-based organization incorporated under
7 chapter 617 which is recognized as educational, charitable, or
8 scientific pursuant to s. 501(c)(3) of the Internal Revenue
9 Code and whose bylaws and articles of incorporation include
10 affordable housing, economic development, or community
11 development as the primary mission of the corporation;
12 (XII) Units of local government;
13 (XIII) Units of state government; or
14 (XIV) Any other agency that the Office of Tourism,
15 Trade, and Economic Development designates by rule.
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17 In no event may a contributing person have a financial
18 interest in the eligible sponsor.
19 d. The project must be located in an area designated
20 an enterprise zone or a Front Porch Florida Community pursuant
21 to s. 14.2015(9)(b), unless the project increases access to
22 high-speed broadband capability for rural communities with
23 enterprise zones but is physically located outside the
24 designated rural zone boundaries. Any project designed to
25 construct or rehabilitate housing for low-income or
26 very-low-income households as defined in s. 420.0971(19) and
27 (28) is exempt from the area requirement of this
28 sub-subparagraph.
29 3. Application requirements.--
30 a. Any eligible sponsor seeking to participate in this
31 program must submit a proposal to the Office of Tourism,
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1 Trade, and Economic Development which sets forth the name of
2 the sponsor, a description of the project, and the area in
3 which the project is located, together with such supporting
4 information as is prescribed by rule. The proposal must also
5 contain a resolution from the local governmental unit in which
6 the project is located certifying that the project is
7 consistent with local plans and regulations.
8 b. Any person seeking to participate in this program
9 must submit an application for tax credit to the Office of
10 Tourism, Trade, and Economic Development which sets forth the
11 name of the sponsor, a description of the project, and the
12 type, value, and purpose of the contribution. The sponsor
13 shall verify the terms of the application and indicate its
14 receipt of the contribution, which verification must be in
15 writing and accompany the application for tax credit. The
16 person must submit a separate tax credit application to the
17 office for each individual contribution that it makes to each
18 individual project.
19 c. Any person who has received notification from the
20 Office of Tourism, Trade, and Economic Development that a tax
21 credit has been approved must apply to the department to
22 receive the refund. Application must be made on the form
23 prescribed for claiming refunds of sales and use taxes and be
24 accompanied by a copy of the notification. A person may submit
25 only one application for refund to the department within any
26 12-month period.
27 4. Administration.--
28 a. The Office of Tourism, Trade, and Economic
29 Development may adopt rules pursuant to ss. 120.536(1) and
30 120.54 necessary to administer this paragraph, including rules
31 for the approval or disapproval of proposals by a person.
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Florida Senate - 2004 CS for SB 1210
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1 b. The decision of the Office of Tourism, Trade, and
2 Economic Development must be in writing, and, if approved, the
3 notification shall state the maximum credit allowable to the
4 person. Upon approval, the office shall transmit a copy of the
5 decision to the Department of Revenue.
6 c. The Office of Tourism, Trade, and Economic
7 Development shall periodically monitor all projects in a
8 manner consistent with available resources to ensure that
9 resources are used in accordance with this paragraph; however,
10 each project must be reviewed at least once every 2 years.
11 d. The Office of Tourism, Trade, and Economic
12 Development shall, in consultation with the Department of
13 Community Affairs, the Florida Housing Finance Corporation,
14 and the statewide and regional housing and financial
15 intermediaries, market the availability of the community
16 contribution tax credit program to community-based
17 organizations.
18 5. Expiration.--This paragraph expires June 30, 2005;
19 however, any accrued credit carryover that is unused on that
20 date may be used until the expiration of the 3-year carryover
21 period for such credit.
22 Section 2. Paragraph (c) of subsection (1) of section
23 220.183, Florida Statutes, is amended to read:
24 220.183 Community contribution tax credit.--
25 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
26 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
27 SPENDING.--
28 (c) The total amount of tax credit which may be
29 granted for all programs approved under this section, s.
30 212.08(5)(q), and s. 624.5105 is $20 $10 million annually.
31
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Florida Senate - 2004 CS for SB 1210
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1 Section 3. Paragraph (c) of subsection (1) of section
2 624.5105, Florida Statutes, is amended to read:
3 624.5105 Community contribution tax credit;
4 authorization; limitations; eligibility and application
5 requirements; administration; definitions; expiration.--
6 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
7 (c) The total amount of tax credit which may be
8 granted for all programs approved under this section, s.
9 212.08(5)(q), and s. 220.183 is $20 $10 million annually.
10 Section 4. This act shall take effect July 1, 2004.
11
12 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
13 Senate Bill 1210
14
15 The committee substitute makes conforming changes to s.
212.08(5)(q), F.S., to increase the tax credits available
16 under the community contribution tax credit program to $20
million in annual credits. The committee substitute also
17 corrects a defect in existing law by adding a cross-reference
to s. 212.08(5)(q), F.S., in s. 624.5105(1)(c), F.S.
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