Senate Bill sb1494
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Florida Senate - 2004 SB 1494
By the Committee on Commerce, Economic Opportunities, and
Consumer Services
310-1124-04
1 A bill to be entitled
2 An act relating to tax refund programs for
3 qualified target industry businesses and
4 qualified defense contractors; amending s.
5 288.095, F.S.; requiring the Office of Tourism,
6 Trade, and Economic Development to pay claims
7 for tax refunds in the order approved;
8 requiring Enterprise Florida, Inc., to report
9 on the efforts of the Office of Tourism, Trade,
10 and Economic Development to amend tax refund
11 agreements; amending s. 288.1045, F.S.;
12 defining the term "jobs" to include new and
13 retained jobs; requiring applications for
14 certification to include the number of jobs
15 retained; providing that new applicants may not
16 be certified for the tax refund program for
17 qualified defense contractors after June 30,
18 2009; specifying that tax refund agreements
19 existing on that date continue in effect;
20 amending s. 288.106, F.S.; providing that new
21 applicants may not be certified for the tax
22 refund program for qualified target industry
23 businesses after June 30, 2009; specifying that
24 tax refund agreements existing on that date
25 continue in effect; requiring the Office of
26 Tourism, Trade, and Economic Development to
27 attempt to amend certain tax refund agreements,
28 to conform; providing an effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
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Florida Senate - 2004 SB 1494
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1 Section 1. Paragraphs (b) and (c) of subsection (3) of
2 section 288.095, Florida Statutes, are amended to read:
3 288.095 Economic Development Trust Fund.--
4 (3)
5 (b) The total amount of tax refund claims approved for
6 payment by the Office of Tourism, Trade, and Economic
7 Development based on actual project performance may not exceed
8 the amount appropriated to the Economic Development Incentives
9 Account for such purposes for the fiscal year. Claims for tax
10 refunds under ss. 288.1045 and 288.106 shall be paid in the
11 order the claims are approved by the Office of Tourism, Trade,
12 and Economic Development. In the event the Legislature does
13 not appropriate an amount sufficient to satisfy the estimates
14 by the office for tax refunds under ss. 288.1045 and 288.106
15 in a fiscal year, the Office of Tourism, Trade, and Economic
16 Development shall pay the tax refunds from the appropriation
17 for the following fiscal year. By March 1 of each year, the
18 Office of Tourism, Trade, and Economic Development shall
19 notify the legislative appropriations committees of any
20 anticipated shortfall in the amount of funds needed to satisfy
21 claims for tax refunds from the appropriation for the current
22 fiscal year., not later than July 15 of such year, determine
23 the proportion of each refund claim which shall be paid by
24 dividing the amount appropriated for tax refunds for the
25 fiscal year by the estimated total of refund claims for the
26 fiscal year. The amount of each claim for a tax refund shall
27 be multiplied by the resulting quotient. If, after the payment
28 of all such refund claims, funds remain in the Economic
29 Development Incentives Account for tax refunds, the office
30 shall recalculate the proportion for each refund claim and
31 adjust the amount of each claim accordingly.
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Florida Senate - 2004 SB 1494
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1 (c) By December 31 of each year, Enterprise Florida,
2 Inc., shall submit a complete and detailed report to the
3 Governor, the President of the Senate, the Speaker of the
4 House of Representatives, and the director of the Office of
5 Tourism, Trade, and Economic Development of all applications
6 received, recommendations made to the Office of Tourism,
7 Trade, and Economic Development, final decisions issued, tax
8 refund agreements executed, and tax refunds paid or other
9 payments made under all programs funded out of the Economic
10 Development Incentives Account, including analyses of benefits
11 and costs, types of projects supported, and employment and
12 investment created. Enterprise Florida, Inc., shall also
13 include a separate analysis of the impact of such tax refunds
14 on state enterprise zones designated pursuant to s. 290.0065,
15 rural communities, brownfield areas, and distressed urban
16 communities. The report must discuss whether the authority and
17 moneys appropriated by the Legislature to the Economic
18 Development Incentives Account were managed and expended in a
19 prudent, fiducially sound manner. The report must also discuss
20 the efforts made by the Office of Tourism, Trade, and Economic
21 Development to amend tax refund agreements to require tax
22 refund claims to be submitted by January 31 for the net new
23 full-time equivalent Florida jobs as of December 31 of the
24 preceding calendar year. The Office of Tourism, Trade, and
25 Economic Development shall assist Enterprise Florida, Inc., in
26 the collection of data related to business performance and
27 incentive payments.
28 Section 2. Paragraph (g) of subsection (1), paragraphs
29 (b), (c), and (d) of subsection (3), and subsection (7) of
30 section 288.1045, Florida Statutes, are amended to read:
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Florida Senate - 2004 SB 1494
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1 288.1045 Qualified defense contractor tax refund
2 program.--
3 (1) DEFINITIONS.--As used in this section:
4 (g) "Jobs" means full-time equivalent positions,
5 consistent with the use of such terms by the Agency for
6 Workforce Innovation for the purpose of unemployment
7 compensation tax, created or retained as a direct result of
8 resulting directly from a project in this state. This number
9 does not include temporary construction jobs involved with the
10 construction of facilities for the project.
11 (3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
12 DETERMINATION.--
13 (b) Applications for certification based on the
14 consolidation of a Department of Defense contract or a new
15 Department of Defense contract must be submitted to the office
16 as prescribed by the office and must include, but are not
17 limited to, the following information:
18 1. The applicant's federal employer identification
19 number, the applicant's Florida sales tax registration number,
20 and a notarized signature of an officer of the applicant.
21 2. The permanent location of the manufacturing,
22 assembling, fabricating, research, development, or design
23 facility in this state at which the project is or is to be
24 located.
25 3. The Department of Defense contract numbers of the
26 contract to be consolidated, the new Department of Defense
27 contract number, or the "RFP" number of a proposed Department
28 of Defense contract.
29 4. The date the contract was executed or is expected
30 to be executed, and the date the contract is due to expire or
31 is expected to expire.
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Florida Senate - 2004 SB 1494
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1 5. The commencement date for project operations under
2 the contract in this state.
3 6. The number of net new full-time equivalent Florida
4 jobs included in the project as of December 31 of each year
5 and the average wage of such jobs.
6 7. The number of full-time equivalent Florida jobs to
7 be retained by the project.
8 8.7. The total number of full-time equivalent
9 employees employed by the applicant in this state.
10 9.8. The percentage of the applicant's gross receipts
11 derived from Department of Defense contracts during the 5
12 taxable years immediately preceding the date the application
13 is submitted.
14 10.9. The amount of:
15 a. Taxes on sales, use, and other transactions paid
16 pursuant to chapter 212;
17 b. Corporate income taxes paid pursuant to chapter
18 220;
19 c. Intangible personal property taxes paid pursuant to
20 chapter 199;
21 d. Emergency excise taxes paid pursuant to chapter
22 221;
23 e. Excise taxes paid on documents pursuant to chapter
24 201; and
25 f. Ad valorem taxes paid
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27 during the 5 fiscal years immediately preceding the date of
28 the application, and the projected amounts of such taxes to be
29 due in the 3 fiscal years immediately following the date of
30 the application.
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1 11.10. The estimated amount of tax refunds to be
2 claimed for each fiscal year.
3 12.11. A brief statement concerning the applicant's
4 need for tax refunds, and the proposed uses of such refunds by
5 the applicant.
6 13.12. A resolution adopted by the county
7 commissioners of the county in which the project will be
8 located, which recommends the applicant be approved as a
9 qualified applicant, and which indicates that the necessary
10 commitments of local financial support for the applicant
11 exist. Prior to the adoption of the resolution, the county
12 commission may review the proposed public or private sources
13 of such support and determine whether the proposed sources of
14 local financial support can be provided or, for any applicant
15 whose project is located in a county designated by the Rural
16 Economic Development Initiative, a resolution adopted by the
17 county commissioners of such county requesting that the
18 applicant's project be exempt from the local financial support
19 requirement.
20 14.13. Any additional information requested by the
21 office.
22 (c) Applications for certification based on the
23 conversion of defense production jobs to nondefense production
24 jobs must be submitted to the office as prescribed by the
25 office and must include, but are not limited to, the following
26 information:
27 1. The applicant's federal employer identification
28 number, the applicant's Florida sales tax registration number,
29 and a notarized signature of an officer of the applicant.
30 2. The permanent location of the manufacturing,
31 assembling, fabricating, research, development, or design
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Florida Senate - 2004 SB 1494
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1 facility in this state at which the project is or is to be
2 located.
3 3. The Department of Defense contract numbers of the
4 contract under which the defense production jobs will be
5 converted to nondefense production jobs.
6 4. The date the contract was executed, and the date
7 the contract is due to expire or is expected to expire, or was
8 canceled.
9 5. The commencement date for the nondefense production
10 operations in this state.
11 6. The number of net new full-time equivalent Florida
12 jobs included in the nondefense production project as of
13 December 31 of each year and the average wage of such jobs.
14 7. The number of full-time equivalent Florida jobs to
15 be retained by the project.
16 8.7. The total number of full-time equivalent
17 employees employed by the applicant in this state.
18 9.8. The percentage of the applicant's gross receipts
19 derived from Department of Defense contracts during the 5
20 taxable years immediately preceding the date the application
21 is submitted.
22 10.9. The amount of:
23 a. Taxes on sales, use, and other transactions paid
24 pursuant to chapter 212;
25 b. Corporate income taxes paid pursuant to chapter
26 220;
27 c. Intangible personal property taxes paid pursuant to
28 chapter 199;
29 d. Emergency excise taxes paid pursuant to chapter
30 221;
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Florida Senate - 2004 SB 1494
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1 e. Excise taxes paid on documents pursuant to chapter
2 201; and
3 f. Ad valorem taxes paid
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5 during the 5 fiscal years immediately preceding the date of
6 the application, and the projected amounts of such taxes to be
7 due in the 3 fiscal years immediately following the date of
8 the application.
9 11.10. The estimated amount of tax refunds to be
10 claimed for each fiscal year.
11 12.11. A brief statement concerning the applicant's
12 need for tax refunds, and the proposed uses of such refunds by
13 the applicant.
14 13.12. A resolution adopted by the county
15 commissioners of the county in which the project will be
16 located, which recommends the applicant be approved as a
17 qualified applicant, and which indicates that the necessary
18 commitments of local financial support for the applicant
19 exist. Prior to the adoption of the resolution, the county
20 commission may review the proposed public or private sources
21 of such support and determine whether the proposed sources of
22 local financial support can be provided or, for any applicant
23 whose project is located in a county designated by the Rural
24 Economic Development Initiative, a resolution adopted by the
25 county commissioners of such county requesting that the
26 applicant's project be exempt from the local financial support
27 requirement.
28 14.13. Any additional information requested by the
29 office.
30 (d) Applications for certification based on a contract
31 for reuse of a defense-related facility must be submitted to
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1 the office as prescribed by the office and must include, but
2 are not limited to, the following information:
3 1. The applicant's Florida sales tax registration
4 number and a notarized signature of an officer of the
5 applicant.
6 2. The permanent location of the manufacturing,
7 assembling, fabricating, research, development, or design
8 facility in this state at which the project is or is to be
9 located.
10 3. The business entity holding a valid Department of
11 Defense contract or branch of the Armed Forces of the United
12 States that previously occupied the facility, and the date
13 such entity last occupied the facility.
14 4. A copy of the contract to reuse the facility, or
15 such alternative proof as may be prescribed by the office that
16 the applicant is seeking to contract for the reuse of such
17 facility.
18 5. The date the contract to reuse the facility was
19 executed or is expected to be executed, and the date the
20 contract is due to expire or is expected to expire.
21 6. The commencement date for project operations under
22 the contract in this state.
23 7. The number of net new full-time equivalent Florida
24 jobs included in the project as of December 31 of each year
25 and the average wage of such jobs.
26 8. The number of full-time equivalent Florida jobs to
27 be retained by the project.
28 9.8. The total number of full-time equivalent
29 employees employed by the applicant in this state.
30 10.9. The amount of:
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Florida Senate - 2004 SB 1494
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1 a. Taxes on sales, use, and other transactions paid
2 pursuant to chapter 212.
3 b. Corporate income taxes paid pursuant to chapter
4 220.
5 c. Intangible personal property taxes paid pursuant to
6 chapter 199.
7 d. Emergency excise taxes paid pursuant to chapter
8 221.
9 e. Excise taxes paid on documents pursuant to chapter
10 201.
11 f. Ad valorem taxes paid during the 5 fiscal years
12 immediately preceding the date of the application, and the
13 projected amounts of such taxes to be due in the 3 fiscal
14 years immediately following the date of the application.
15 11.10. The estimated amount of tax refunds to be
16 claimed for each fiscal year.
17 12.11. A brief statement concerning the applicant's
18 need for tax refunds, and the proposed uses of such refunds by
19 the applicant.
20 13.12. A resolution adopted by the county
21 commissioners of the county in which the project will be
22 located, which recommends the applicant be approved as a
23 qualified applicant, and which indicates that the necessary
24 commitments of local financial support for the applicant
25 exist. Prior to the adoption of the resolution, the county
26 commission may review the proposed public or private sources
27 of such support and determine whether the proposed sources of
28 local financial support can be provided or, for any applicant
29 whose project is located in a county designated by the Rural
30 Economic Development Initiative, a resolution adopted by the
31 county commissioners of such county requesting that the
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Florida Senate - 2004 SB 1494
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1 applicant's project be exempt from the local financial support
2 requirement.
3 14.13. Any additional information requested by the
4 office.
5 (7) EXPIRATION.--An applicant may not be certified as
6 qualified under this section after June 30, 2009 2004. A tax
7 refund agreement existing on that date, however, shall
8 continue in effect in accordance with its terms.
9 Section 3. Subsection (7) of section 288.106, Florida
10 Statutes, is amended to read:
11 288.106 Tax refund program for qualified target
12 industry businesses.--
13 (7) EXPIRATION.--An applicant may not be certified as
14 qualified under this section after June 30, 2009. A tax refund
15 agreement existing on that date, however, shall continue in
16 effect in accordance with its terms. This section expires June
17 30, 2004.
18 Section 4. The Office of Tourism, Trade, and Economic
19 Development shall attempt to amend existing tax refund
20 agreements created under section 288.106, Florida Statutes, to
21 require tax refund claims to be submitted by January 31 for
22 the net new full-time equivalent Florida jobs as of December
23 31 of the preceding calendar year.
24 Section 5. This act shall take effect upon becoming a
25 law.
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2 SENATE SUMMARY
3 Revises provisions governing the tax refund programs for
qualified target industry businesses and qualified
4 defense contractors. Requires the Office of Tourism,
Trade, and Economic Development to pay claims for refunds
5 in the order approved. Includes new and retained jobs
within the definition of the term "jobs." Discontinues
6 the refund program for new applicants after June 30,
2009. (See bill for details.)
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