Senate Bill sb1370
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
By Senator Saunders
37-878-04
1 A bill to be entitled
2 An act relating to community contribution tax
3 credits; amending ss. 212.08 and 220.183, F.S.;
4 increasing the annual limitation on the amount
5 of such credits which may be granted against
6 the sales and use tax, the corporate income
7 tax, and insurance premium taxes; amending s.
8 624.5105, F.S.; providing that an insurer
9 claiming a credit is not subject to the
10 retaliatory tax levied under s. 624.5091, F.S.;
11 providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (q) of subsection (5) of section
16 212.08, Florida Statutes, is amended to read:
17 212.08 Sales, rental, use, consumption, distribution,
18 and storage tax; specified exemptions.--The sale at retail,
19 the rental, the use, the consumption, the distribution, and
20 the storage to be used or consumed in this state of the
21 following are hereby specifically exempt from the tax imposed
22 by this chapter.
23 (5) EXEMPTIONS; ACCOUNT OF USE.--
24 (q) Community contribution tax credit for donations.--
25 1. Authorization.--Beginning July 1, 2001, persons who
26 are registered with the department under s. 212.18 to collect
27 or remit sales or use tax and who make donations to eligible
28 sponsors are eligible for tax credits against their state
29 sales and use tax liabilities as provided in this paragraph:
30 a. The credit shall be computed as 50 percent of the
31 person's approved annual community contribution;
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
37-878-04
1 b. The credit shall be granted as a refund against
2 state sales and use taxes reported on returns and remitted in
3 the 12 months preceding the date of application to the
4 department for the credit as required in sub-subparagraph 3.c.
5 If the annual credit is not fully used through such refund
6 because of insufficient tax payments during the applicable
7 12-month period, the unused amount may be included in an
8 application for a refund made pursuant to sub-subparagraph
9 3.c. in subsequent years against the total tax payments made
10 for such year. Carryover credits may be applied for a 3-year
11 period without regard to any time limitation that would
12 otherwise apply under s. 215.26;
13 c. No person shall receive more than $200,000 in
14 annual tax credits for all approved community contributions
15 made in any one year;
16 d. All proposals for the granting of the tax credit
17 shall require the prior approval of the Office of Tourism,
18 Trade, and Economic Development;
19 e. The total amount of tax credits which may be
20 granted for all programs approved under this paragraph, s.
21 220.183, and s. 624.5105 is $15 $10 million annually; and
22 f. A person who is eligible to receive the credit
23 provided for in this paragraph, s. 220.183, or s. 624.5105 may
24 receive the credit only under the one section of the person's
25 choice.
26 2. Eligibility requirements.--
27 a. A community contribution by a person must be in the
28 following form:
29 (I) Cash or other liquid assets;
30 (II) Real property;
31 (III) Goods or inventory; or
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
37-878-04
1 (IV) Other physical resources as identified by the
2 Office of Tourism, Trade, and Economic Development.
3 b. All community contributions must be reserved
4 exclusively for use in a project. As used in this
5 sub-subparagraph, the term "project" means any activity
6 undertaken by an eligible sponsor which is designed to
7 construct, improve, or substantially rehabilitate housing that
8 is affordable to low-income or very-low-income households as
9 defined in s. 420.9071(19) and (28); designed to provide
10 commercial, industrial, or public resources and facilities; or
11 designed to improve entrepreneurial and job-development
12 opportunities for low-income persons. A project may be the
13 investment necessary to increase access to high-speed
14 broadband capability in rural communities with enterprise
15 zones, including projects that result in improvements to
16 communications assets that are owned by a business. A project
17 may include the provision of museum educational programs and
18 materials that are directly related to any project approved
19 between January 1, 1996, and December 31, 1999, and located in
20 an enterprise zone as referenced in s. 290.00675. This
21 paragraph does not preclude projects that propose to construct
22 or rehabilitate housing for low-income or very-low-income
23 households on scattered sites. The Office of Tourism, Trade,
24 and Economic Development may reserve up to 50 percent of the
25 available annual tax credits for housing for very-low-income
26 households pursuant to s. 420.9071(28) for the first 6 months
27 of the fiscal year. With respect to housing, contributions may
28 be used to pay the following eligible low-income and
29 very-low-income housing-related activities:
30 (I) Project development impact and management fees for
31 low-income or very-low-income housing projects;
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
37-878-04
1 (II) Down payment and closing costs for eligible
2 persons, as defined in s. 420.9071(19) and (28);
3 (III) Administrative costs, including housing
4 counseling and marketing fees, not to exceed 10 percent of the
5 community contribution, directly related to low-income or
6 very-low-income projects; and
7 (IV) Removal of liens recorded against residential
8 property by municipal, county, or special district local
9 governments when satisfaction of the lien is a necessary
10 precedent to the transfer of the property to an eligible
11 person, as defined in s. 420.9071(19) and (28), for the
12 purpose of promoting home ownership. Contributions for lien
13 removal must be received from a nonrelated third party.
14 c. The project must be undertaken by an "eligible
15 sponsor," which includes:
16 (I) A community action program;
17 (II) A nonprofit community-based development
18 organization whose mission is the provision of housing for
19 low-income or very-low-income households or increasing
20 entrepreneurial and job-development opportunities for
21 low-income persons;
22 (III) A neighborhood housing services corporation;
23 (IV) A local housing authority created under chapter
24 421;
25 (V) A community redevelopment agency created under s.
26 163.356;
27 (VI) The Florida Industrial Development Corporation;
28 (VII) A historic preservation district agency or
29 organization;
30 (VIII) A regional workforce board;
31
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
37-878-04
1 (IX) A direct-support organization as provided in s.
2 1009.983;
3 (X) An enterprise zone development agency created
4 under s. 290.0056;
5 (XI) A community-based organization incorporated under
6 chapter 617 which is recognized as educational, charitable, or
7 scientific pursuant to s. 501(c)(3) of the Internal Revenue
8 Code and whose bylaws and articles of incorporation include
9 affordable housing, economic development, or community
10 development as the primary mission of the corporation;
11 (XII) Units of local government;
12 (XIII) Units of state government; or
13 (XIV) Any other agency that the Office of Tourism,
14 Trade, and Economic Development designates by rule.
15
16 In no event may a contributing person have a financial
17 interest in the eligible sponsor.
18 d. The project must be located in an area designated
19 an enterprise zone or a Front Porch Florida Community pursuant
20 to s. 14.2015(9)(b), unless the project increases access to
21 high-speed broadband capability for rural communities with
22 enterprise zones but is physically located outside the
23 designated rural zone boundaries. Any project designed to
24 construct or rehabilitate housing for low-income or
25 very-low-income households as defined in s. 420.0971(19) and
26 (28) is exempt from the area requirement of this
27 sub-subparagraph.
28 3. Application requirements.--
29 a. Any eligible sponsor seeking to participate in this
30 program must submit a proposal to the Office of Tourism,
31 Trade, and Economic Development which sets forth the name of
5
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
37-878-04
1 the sponsor, a description of the project, and the area in
2 which the project is located, together with such supporting
3 information as is prescribed by rule. The proposal must also
4 contain a resolution from the local governmental unit in which
5 the project is located certifying that the project is
6 consistent with local plans and regulations.
7 b. Any person seeking to participate in this program
8 must submit an application for tax credit to the Office of
9 Tourism, Trade, and Economic Development which sets forth the
10 name of the sponsor, a description of the project, and the
11 type, value, and purpose of the contribution. The sponsor
12 shall verify the terms of the application and indicate its
13 receipt of the contribution, which verification must be in
14 writing and accompany the application for tax credit. The
15 person must submit a separate tax credit application to the
16 office for each individual contribution that it makes to each
17 individual project.
18 c. Any person who has received notification from the
19 Office of Tourism, Trade, and Economic Development that a tax
20 credit has been approved must apply to the department to
21 receive the refund. Application must be made on the form
22 prescribed for claiming refunds of sales and use taxes and be
23 accompanied by a copy of the notification. A person may submit
24 only one application for refund to the department within any
25 12-month period.
26 4. Administration.--
27 a. The Office of Tourism, Trade, and Economic
28 Development may adopt rules pursuant to ss. 120.536(1) and
29 120.54 necessary to administer this paragraph, including rules
30 for the approval or disapproval of proposals by a person.
31
6
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
37-878-04
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 $15 $10 million annually.
31
7
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 SB 1370
37-878-04
1 Section 3. Paragraph (c) of subsection (1) of section
2 624.5105, Florida Statutes, is amended, and paragraph (f) is
3 added to that subsection, to read:
4 624.5105 Community contribution tax credit;
5 authorization; limitations; eligibility and application
6 requirements; administration; definitions; expiration.--
7 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
8 (c) The total amount of tax credit which may be
9 granted for all programs approved under this section and ss.
10 212.08(5)(q) and s. 220.183 is $15 $10 million annually.
11 (f) An insurer that claims a credit against
12 premium-tax liability earned by making a community
13 contribution under this section need not pay any additional
14 retaliatory tax levied under s. 624.5091 as a result of
15 claiming such a credit, and s. 624.5091 does not limit such a
16 credit in any manner.
17 Section 4. This act shall take effect July 1, 2004.
18
19 *****************************************
20 SENATE SUMMARY
21 Increases the annual limitation on the amount of
community contribution tax credits which may be granted
22 against the sales and use tax, the corporate income tax,
and insurance premium taxes. Providing that an insurer
23 that claims a community contribution tax credit is not
subject to a retaliatory tax levied under s. 624.5091,
24 F.S.
25
26
27
28
29
30
31
8
CODING: Words stricken are deletions; words underlined are additions.