Senate Bill sb0330c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
By the Committee on Comprehensive Planning; and Senator
Saunders
316-892A-04
1 A bill to be entitled
2 An act relating to the community contribution
3 tax credit; amending ss. 212.08, 220.03,
4 220.183, and 624.5105, F.S.; deleting
5 provisions providing for the tax credit to
6 expire on June 30, 2005; providing an effective
7 date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Paragraph (q) of subsection (5) of section
12 212.08, Florida Statutes, is amended to read:
13 212.08 Sales, rental, use, consumption, distribution,
14 and storage tax; specified exemptions.--The sale at retail,
15 the rental, the use, the consumption, the distribution, and
16 the storage to be used or consumed in this state of the
17 following are hereby specifically exempt from the tax imposed
18 by this chapter.
19 (5) EXEMPTIONS; ACCOUNT OF USE.--
20 (q) Community contribution tax credit for donations.--
21 1. Authorization.--Beginning July 1, 2001, persons who
22 are registered with the department under s. 212.18 to collect
23 or remit sales or use tax and who make donations to eligible
24 sponsors are eligible for tax credits against their state
25 sales and use tax liabilities as provided in this paragraph:
26 a. The credit shall be computed as 50 percent of the
27 person's approved annual community contribution;
28 b. The credit shall be granted as a refund against
29 state sales and use taxes reported on returns and remitted in
30 the 12 months preceding the date of application to the
31 department for the credit as required in sub-subparagraph 3.c.
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
316-892A-04
1 If the annual credit is not fully used through such refund
2 because of insufficient tax payments during the applicable
3 12-month period, the unused amount may be included in an
4 application for a refund made pursuant to sub-subparagraph
5 3.c. in subsequent years against the total tax payments made
6 for such year. Carryover credits may be applied for a 3-year
7 period without regard to any time limitation that would
8 otherwise apply under s. 215.26;
9 c. No person shall receive more than $200,000 in
10 annual tax credits for all approved community contributions
11 made in any one year;
12 d. All proposals for the granting of the tax credit
13 shall require the prior approval of the Office of Tourism,
14 Trade, and Economic Development;
15 e. The total amount of tax credits which may be
16 granted for all programs approved under this paragraph, s.
17 220.183, and s. 624.5105 is $10 million annually; and
18 f. A person who is eligible to receive the credit
19 provided for in this paragraph, s. 220.183, or s. 624.5105 may
20 receive the credit only under the one section of the person's
21 choice.
22 2. Eligibility requirements.--
23 a. A community contribution by a person must be in the
24 following form:
25 (I) Cash or other liquid assets;
26 (II) Real property;
27 (III) Goods or inventory; or
28 (IV) Other physical resources as identified by the
29 Office of Tourism, Trade, and Economic Development.
30 b. All community contributions must be reserved
31 exclusively for use in a project. As used in this
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
316-892A-04
1 sub-subparagraph, the term "project" means any activity
2 undertaken by an eligible sponsor which is designed to
3 construct, improve, or substantially rehabilitate housing that
4 is affordable to low-income or very-low-income households as
5 defined in s. 420.9071(19) and (28); designed to provide
6 commercial, industrial, or public resources and facilities; or
7 designed to improve entrepreneurial and job-development
8 opportunities for low-income persons. A project may be the
9 investment necessary to increase access to high-speed
10 broadband capability in rural communities with enterprise
11 zones, including projects that result in improvements to
12 communications assets that are owned by a business. A project
13 may include the provision of museum educational programs and
14 materials that are directly related to any project approved
15 between January 1, 1996, and December 31, 1999, and located in
16 an enterprise zone as referenced in s. 290.00675. This
17 paragraph does not preclude projects that propose to construct
18 or rehabilitate housing for low-income or very-low-income
19 households on scattered sites. The Office of Tourism, Trade,
20 and Economic Development may reserve up to 50 percent of the
21 available annual tax credits for housing for very-low-income
22 households pursuant to s. 420.9071(28) for the first 6 months
23 of the fiscal year. With respect to housing, contributions may
24 be used to pay the following eligible low-income and
25 very-low-income housing-related activities:
26 (I) Project development impact and management fees for
27 low-income or very-low-income housing projects;
28 (II) Down payment and closing costs for eligible
29 persons, as defined in s. 420.9071(19) and (28);
30 (III) Administrative costs, including housing
31 counseling and marketing fees, not to exceed 10 percent of the
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
316-892A-04
1 community contribution, directly related to low-income or
2 very-low-income projects; and
3 (IV) Removal of liens recorded against residential
4 property by municipal, county, or special district local
5 governments when satisfaction of the lien is a necessary
6 precedent to the transfer of the property to an eligible
7 person, as defined in s. 420.9071(19) and (28), for the
8 purpose of promoting home ownership. Contributions for lien
9 removal must be received from a nonrelated third party.
10 c. The project must be undertaken by an "eligible
11 sponsor," which includes:
12 (I) A community action program;
13 (II) A nonprofit community-based development
14 organization whose mission is the provision of housing for
15 low-income or very-low-income households or increasing
16 entrepreneurial and job-development opportunities for
17 low-income persons;
18 (III) A neighborhood housing services corporation;
19 (IV) A local housing authority created under chapter
20 421;
21 (V) A community redevelopment agency created under s.
22 163.356;
23 (VI) The Florida Industrial Development Corporation;
24 (VII) A historic preservation district agency or
25 organization;
26 (VIII) A regional workforce board;
27 (IX) A direct-support organization as provided in s.
28 1009.983;
29 (X) An enterprise zone development agency created
30 under s. 290.0056;
31
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
316-892A-04
1 (XI) A community-based organization incorporated under
2 chapter 617 which is recognized as educational, charitable, or
3 scientific pursuant to s. 501(c)(3) of the Internal Revenue
4 Code and whose bylaws and articles of incorporation include
5 affordable housing, economic development, or community
6 development as the primary mission of the corporation;
7 (XII) Units of local government;
8 (XIII) Units of state government; or
9 (XIV) Any other agency that the Office of Tourism,
10 Trade, and Economic Development designates by rule.
11
12 In no event may a contributing person have a financial
13 interest in the eligible sponsor.
14 d. The project must be located in an area designated
15 an enterprise zone or a Front Porch Florida Community pursuant
16 to s. 14.2015(9)(b), unless the project increases access to
17 high-speed broadband capability for rural communities with
18 enterprise zones but is physically located outside the
19 designated rural zone boundaries. Any project designed to
20 construct or rehabilitate housing for low-income or
21 very-low-income households as defined in s. 420.0971(19) and
22 (28) is exempt from the area requirement of this
23 sub-subparagraph.
24 3. Application requirements.--
25 a. Any eligible sponsor seeking to participate in this
26 program must submit a proposal to the Office of Tourism,
27 Trade, and Economic Development which sets forth the name of
28 the sponsor, a description of the project, and the area in
29 which the project is located, together with such supporting
30 information as is prescribed by rule. The proposal must also
31 contain a resolution from the local governmental unit in which
5
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
316-892A-04
1 the project is located certifying that the project is
2 consistent with local plans and regulations.
3 b. Any person seeking to participate in this program
4 must submit an application for tax credit to the Office of
5 Tourism, Trade, and Economic Development which sets forth the
6 name of the sponsor, a description of the project, and the
7 type, value, and purpose of the contribution. The sponsor
8 shall verify the terms of the application and indicate its
9 receipt of the contribution, which verification must be in
10 writing and accompany the application for tax credit. The
11 person must submit a separate tax credit application to the
12 office for each individual contribution that it makes to each
13 individual project.
14 c. Any person who has received notification from the
15 Office of Tourism, Trade, and Economic Development that a tax
16 credit has been approved must apply to the department to
17 receive the refund. Application must be made on the form
18 prescribed for claiming refunds of sales and use taxes and be
19 accompanied by a copy of the notification. A person may submit
20 only one application for refund to the department within any
21 12-month period.
22 4. Administration.--
23 a. The Office of Tourism, Trade, and Economic
24 Development may adopt rules pursuant to ss. 120.536(1) and
25 120.54 necessary to administer this paragraph, including rules
26 for the approval or disapproval of proposals by a person.
27 b. The decision of the Office of Tourism, Trade, and
28 Economic Development must be in writing, and, if approved, the
29 notification shall state the maximum credit allowable to the
30 person. Upon approval, the office shall transmit a copy of the
31 decision to the Department of Revenue.
6
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
316-892A-04
1 c. The Office of Tourism, Trade, and Economic
2 Development shall periodically monitor all projects in a
3 manner consistent with available resources to ensure that
4 resources are used in accordance with this paragraph; however,
5 each project must be reviewed at least once every 2 years.
6 d. The Office of Tourism, Trade, and Economic
7 Development shall, in consultation with the Department of
8 Community Affairs, the Florida Housing Finance Corporation,
9 and the statewide and regional housing and financial
10 intermediaries, market the availability of the community
11 contribution tax credit program to community-based
12 organizations.
13 5. Expiration.--This paragraph expires June 30, 2005;
14 however, any accrued credit carryover that is unused on that
15 date may be used until the expiration of the 3-year carryover
16 period for such credit.
17 Section 2. Paragraph (d) of subsection (1) of section
18 220.03, Florida Statutes, is amended to read:
19 220.03 Definitions.--
20 (1) SPECIFIC TERMS.--When used in this code, and when
21 not otherwise distinctly expressed or manifestly incompatible
22 with the intent thereof, the following terms shall have the
23 following meanings:
24 (d) "Community contribution" means the grant by a
25 business firm of any of the following items:
26 1. Cash or other liquid assets.
27 2. Real property.
28 3. Goods or inventory.
29 4. Other physical resources as identified by the
30 department.
31
7
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2004 CS for SB 330
316-892A-04
1 The provisions of this paragraph shall expire and be void on
2 June 30, 2005.
3 Section 3. Subsection (5) of section 220.183, Florida
4 Statutes, is amended to read:
5 220.183 Community contribution tax credit.--
6 (5) EXPIRATION.--The provisions of this section,
7 except paragraph (1)(e), shall expire and be void on June 30,
8 2005.
9 Section 4. Subsection (6) of section 624.5105, Florida
10 Statutes, is amended to read:
11 624.5105 Community contribution tax credit;
12 authorization; limitations; eligibility and application
13 requirements; administration; definitions; expiration.--
14 (6) EXPIRATION.--The provisions of this section,
15 except paragraph (1)(e), shall expire and be void on June 30,
16 2005.
17 Section 5. This act shall take effect upon becoming a
18 law.
19
20 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
21 Senate Bill 330
22
23 This committee substitute differs from the bill as filed in
that it uses an alternative style to "repeal the sunsets" in
24 ss. 212.08(5) and 624.5105(6),F.S. It republishes these
sections with the repeals 'stricken' in the text. In addition,
25 it deletes the repeal of the definition of the term "community
contribution" in s. 220.03(d), F.S.
26
27
28
29
30
31
8
CODING: Words stricken are deletions; words underlined are additions.