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| 1 | A bill to be entitled | ||
| 2 | An act relating to the community contribution tax credit; | ||
| 3 | amending s. 212.08, F.S.; conforming provisions to | ||
| 4 | requirements that a percentage of certain community | ||
| 5 | contributions be distributed to rural counties for certain | ||
| 6 | purposes; amending ss. 220.183 and 624.5105, F.S.; | ||
| 7 | requiring that a specified percentage of community | ||
| 8 | contributions made by business firms and insurers in order | ||
| 9 | to obtain the tax credit be distributed to rural counties; | ||
| 10 | providing for amounts unclaimed by rural counties by a | ||
| 11 | specified date to be released to other eligible claimants; | ||
| 12 | providing a definition; providing an effective date. | ||
| 13 | |||
| 14 | Be It Enacted by the Legislature of the State of Florida: | ||
| 15 | |||
| 16 | Section 1. Paragraph (q) of subsection (5) of section | ||
| 17 | 212.08, Florida Statutes, is amended to read: | ||
| 18 | 212.08 Sales, rental, use, consumption, distribution, and | ||
| 19 | storage tax; specified exemptions.--The sale at retail, the | ||
| 20 | rental, the use, the consumption, the distribution, and the | ||
| 21 | storage to be used or consumed in this state of the following | ||
| 22 | are hereby specifically exempt from the tax imposed by this | ||
| 23 | chapter. | ||
| 24 | (5) EXEMPTIONS; ACCOUNT OF USE.-- | ||
| 25 | (q) Community contribution tax credit for donations.-- | ||
| 26 | 1. Authorization.--Beginning July 1, 2001, persons who are | ||
| 27 | registered with the department under s. 212.18 to collect or | ||
| 28 | remit sales or use tax and who make donations to eligible | ||
| 29 | sponsors are eligible for tax credits against their state sales | ||
| 30 | and use tax liabilities as provided in this paragraph: | ||
| 31 | a. The credit shall be computed as 50 percent of the | ||
| 32 | person's approved annual community contribution; | ||
| 33 | b. The credit shall be granted as a refund against state | ||
| 34 | sales and use taxes reported on returns and remitted in the 12 | ||
| 35 | months preceding the date of application to the department for | ||
| 36 | the credit as required in sub-subparagraph 3.c. If the annual | ||
| 37 | credit is not fully used through such refund because of | ||
| 38 | insufficient tax payments during the applicable 12-month period, | ||
| 39 | the unused amount may be included in an application for a refund | ||
| 40 | made pursuant to sub-subparagraph 3.c. in subsequent years | ||
| 41 | against the total tax payments made for such year. Carryover | ||
| 42 | credits may be applied for a 3-year period without regard to any | ||
| 43 | time limitation that would otherwise apply under s. 215.26; | ||
| 44 | c. No person shall receive more than $200,000 in annual | ||
| 45 | tax credits for all approved community contributions made in any | ||
| 46 | one year; | ||
| 47 | d. All proposals for the granting of the tax credit shall | ||
| 48 | require the prior approval of the Office of Tourism, Trade, and | ||
| 49 | Economic Development; | ||
| 50 | e. The total amount of tax credits which may be granted | ||
| 51 | for all programs approved under this paragraph, s. 220.183, and | ||
| 52 | s. 624.5105 is $10 million annually; and | ||
| 53 | f. A person who is eligible to receive the credit provided | ||
| 54 | for in this paragraph, s. 220.183, or s. 624.5105 may receive | ||
| 55 | the credit only under the one section of the person's choice. | ||
| 56 | 2. Eligibility requirements.-- | ||
| 57 | a. A community contribution by a person must be in the | ||
| 58 | following form: | ||
| 59 | (I) Cash or other liquid assets; | ||
| 60 | (II) Real property; | ||
| 61 | (III) Goods or inventory; or | ||
| 62 | (IV) Other physical resources as identified by the Office | ||
| 63 | of Tourism, Trade, and Economic Development. | ||
| 64 | b. All community contributions must be reserved | ||
| 65 | exclusively for use in a project. As used in this sub- | ||
| 66 | subparagraph, the term "project" means any activity undertaken | ||
| 67 | by an eligible sponsor which is designed to construct, improve, | ||
| 68 | or substantially rehabilitate housing that is affordable to low- | ||
| 69 | income or very-low-income households as defined in s. | ||
| 70 | 420.9071(19) and (28); designed to provide commercial, | ||
| 71 | industrial, or public resources and facilities; or designed to | ||
| 72 | improve entrepreneurial and job-development opportunities for | ||
| 73 | low-income persons. A project may be the investment necessary to | ||
| 74 | increase access to high-speed broadband capability in rural | ||
| 75 | communities with enterprise zones, including projects that | ||
| 76 | result in improvements to communications assets that are owned | ||
| 77 | by a business. A project may include the provision of museum | ||
| 78 | educational programs and materials that are directly related to | ||
| 79 | any project approved between January 1, 1996, and December 31, | ||
| 80 | 1999, and located in an enterprise zone as referenced in s. | ||
| 81 | 290.00675. This paragraph does not preclude projects that | ||
| 82 | propose to construct or rehabilitate housing for low-income or | ||
| 83 | very-low-income households on scattered sites. The Office of | ||
| 84 | Tourism, Trade, and Economic Development may reserve up to 50 | ||
| 85 | percent of the available annual tax credits for housing for | ||
| 86 | very-low-income households pursuant to s. 420.9071(28) for the | ||
| 87 | first 6 months of the fiscal year. With respect to housing, | ||
| 88 | contributions may be used to pay the following eligible low- | ||
| 89 | income and very-low-income housing-related activities: | ||
| 90 | (I) Project development impact and management fees for | ||
| 91 | low-income or very-low-income housing projects; | ||
| 92 | (II) Down payment and closing costs for eligible persons, | ||
| 93 | as defined in s. 420.9071(19) and (28); | ||
| 94 | (III) Administrative costs, including housing counseling | ||
| 95 | and marketing fees, not to exceed 10 percent of the community | ||
| 96 | contribution, directly related to low-income or very-low-income | ||
| 97 | projects; and | ||
| 98 | (IV) Removal of liens recorded against residential | ||
| 99 | property by municipal, county, or special district local | ||
| 100 | governments when satisfaction of the lien is a necessary | ||
| 101 | precedent to the transfer of the property to an eligible person, | ||
| 102 | as defined in s. 420.9071(19) and (28), for the purpose of | ||
| 103 | promoting home ownership. Contributions for lien removal must be | ||
| 104 | received from a nonrelated third party. | ||
| 105 | c. The project must be undertaken by an "eligible | ||
| 106 | sponsor," which includes: | ||
| 107 | (I) A community action program; | ||
| 108 | (II) A nonprofit community-based development organization | ||
| 109 | whose mission is the provision of housing for low-income or | ||
| 110 | very-low-income households or increasing entrepreneurial and | ||
| 111 | job-development opportunities for low-income persons; | ||
| 112 | (III) A neighborhood housing services corporation; | ||
| 113 | (IV) A local housing authority created under chapter 421; | ||
| 114 | (V) A community redevelopment agency created under s. | ||
| 115 | 163.356; | ||
| 116 | (VI) The Florida Industrial Development Corporation; | ||
| 117 | (VII) A historic preservation district agency or | ||
| 118 | organization; | ||
| 119 | (VIII) A regional workforce board; | ||
| 120 | (IX) A direct-support organization as provided in s. | ||
| 121 | 1009.983; | ||
| 122 | (X) An enterprise zone development agency created under s. | ||
| 123 | 290.0056; | ||
| 124 | (XI) A community-based organization incorporated under | ||
| 125 | chapter 617 which is recognized as educational, charitable, or | ||
| 126 | scientific pursuant to s. 501(c)(3) of the Internal Revenue Code | ||
| 127 | and whose bylaws and articles of incorporation include | ||
| 128 | affordable housing, economic development, or community | ||
| 129 | development as the primary mission of the corporation; | ||
| 130 | (XII) Units of local government; | ||
| 131 | (XIII) Units of state government; or | ||
| 132 | (XIV) Any other agency that the Office of Tourism, Trade, | ||
| 133 | and Economic Development designates by rule. | ||
| 134 | |||
| 135 | In no event may a contributing person have a financial interest | ||
| 136 | in the eligible sponsor. | ||
| 137 | d. The project must be located in an area designated an | ||
| 138 | enterprise zone or a Front Porch Florida Community pursuant to | ||
| 139 | s. 14.2015(9)(b), unless the project increases access to high- | ||
| 140 | speed broadband capability for rural communities with enterprise | ||
| 141 | zones but is physically located outside the designated rural | ||
| 142 | zone boundaries. Any project designed to construct or | ||
| 143 | rehabilitate housing for low-income or very-low-income | ||
| 144 | households as defined in s. 420.0971(19) and (28) is exempt from | ||
| 145 | the area requirement of this sub-subparagraph. | ||
| 146 | e. At least 25 percent of the funds available for projects | ||
| 147 | approved under this paragraph and ss. 220.183 and 624.5105 for | ||
| 148 | each fiscal year shall be reserved for use in rural counties | ||
| 149 | unless the aggregate amount that rural counties request under | ||
| 150 | such provisions before March 2 of each fiscal year is less than | ||
| 151 | 25 percent of the available amount. As used in this sub- | ||
| 152 | subparagraph, the term “rural county” means a county that has a | ||
| 153 | population of 75,000 or fewer or a county that has a population | ||
| 154 | of 100,000 or fewer and is contiguous to a county that has a | ||
| 155 | population of 75,000 or fewer, as determined by the most recent | ||
| 156 | official estimate under s. 186.901. | ||
| 157 | 3. Application requirements.-- | ||
| 158 | a. Any eligible sponsor seeking to participate in this | ||
| 159 | program must submit a proposal to the Office of Tourism, Trade, | ||
| 160 | and Economic Development which sets forth the name of the | ||
| 161 | sponsor, a description of the project, and the area in which the | ||
| 162 | project is located, together with such supporting information as | ||
| 163 | is prescribed by rule. The proposal must also contain a | ||
| 164 | resolution from the local governmental unit in which the project | ||
| 165 | is located certifying that the project is consistent with local | ||
| 166 | plans and regulations. | ||
| 167 | b. Any person seeking to participate in this program must | ||
| 168 | submit an application for tax credit to the Office of Tourism, | ||
| 169 | Trade, and Economic Development which sets forth the name of the | ||
| 170 | sponsor, a description of the project, and the type, value, and | ||
| 171 | purpose of the contribution. The sponsor shall verify the terms | ||
| 172 | of the application and indicate its receipt of the contribution, | ||
| 173 | which verification must be in writing and accompany the | ||
| 174 | application for tax credit. The person must submit a separate | ||
| 175 | tax credit application to the office for each individual | ||
| 176 | contribution that it makes to each individual project. | ||
| 177 | c. Any person who has received notification from the | ||
| 178 | Office of Tourism, Trade, and Economic Development that a tax | ||
| 179 | credit has been approved must apply to the department to receive | ||
| 180 | the refund. Application must be made on the form prescribed for | ||
| 181 | claiming refunds of sales and use taxes and be accompanied by a | ||
| 182 | copy of the notification. A person may submit only one | ||
| 183 | application for refund to the department within any 12-month | ||
| 184 | period. | ||
| 185 | 4. Administration.-- | ||
| 186 | a. The Office of Tourism, Trade, and Economic Development | ||
| 187 | may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary | ||
| 188 | to administer this paragraph, including rules for the approval | ||
| 189 | or disapproval of proposals by a person. | ||
| 190 | b. The decision of the Office of Tourism, Trade, and | ||
| 191 | Economic Development must be in writing, and, if approved, the | ||
| 192 | notification shall state the maximum credit allowable to the | ||
| 193 | person. Upon approval, the office shall transmit a copy of the | ||
| 194 | decision to the Department of Revenue. | ||
| 195 | c. The Office of Tourism, Trade, and Economic Development | ||
| 196 | shall periodically monitor all projects in a manner consistent | ||
| 197 | with available resources to ensure that resources are used in | ||
| 198 | accordance with this paragraph; however, each project must be | ||
| 199 | reviewed at least once every 2 years. | ||
| 200 | d. The Office of Tourism, Trade, and Economic Development | ||
| 201 | shall, in consultation with the Department of Community Affairs, | ||
| 202 | the Florida Housing Finance Corporation, and the statewide and | ||
| 203 | regional housing and financial intermediaries, market the | ||
| 204 | availability of the community contribution tax credit program to | ||
| 205 | community-based organizations. | ||
| 206 | 5. Expiration.--This paragraph expires June 30, 2005; | ||
| 207 | however, any accrued credit carryover that is unused on that | ||
| 208 | date may be used until the expiration of the 3-year carryover | ||
| 209 | period for such credit. | ||
| 210 | Section 2. Paragraph (e) is added to subsection (2) of | ||
| 211 | section 220.183, Florida Statutes, to read: | ||
| 212 | 220.183 Community contribution tax credit.-- | ||
| 213 | (2) ELIGIBILITY REQUIREMENTS.-- | ||
| 214 | (e) Twenty-five percent of the funds available under this | ||
| 215 | section shall be reserved for use in rural counties through | ||
| 216 | March 1 of each fiscal year. On March 2, if the aggregate amount | ||
| 217 | of funds that rural counties request is less than the amount | ||
| 218 | reserved, the balance of reserved funds that has not been | ||
| 219 | requested by rural counties shall be made available for use with | ||
| 220 | all eligible participants in the program. As used in this | ||
| 221 | paragraph, the term “rural county” means a county that has a | ||
| 222 | population of 75,000 or fewer or a county that has a population | ||
| 223 | of 100,000 or fewer and is contiguous to a county that has a | ||
| 224 | population of 75,000 or fewer, as determined by the most recent | ||
| 225 | official estimate under s. 186.901. | ||
| 226 | Section 3. Paragraph (e) is added to subsection (2) of | ||
| 227 | section 624.5105, Florida Statutes, to read: | ||
| 228 | 624.5105 Community contribution tax credit; authorization; | ||
| 229 | limitations; eligibility and application requirements; | ||
| 230 | administration; definitions; expiration.-- | ||
| 231 | (2) ELIGIBILITY REQUIREMENTS.-- | ||
| 232 | (e) Twenty-five percent of the funds available under this | ||
| 233 | section shall be reserved for use in rural counties through | ||
| 234 | March 1 of each fiscal year. On March 2, if the aggregate amount | ||
| 235 | of funds that rural counties request is less than the amount | ||
| 236 | reserved, the balance of reserved funds that has not been | ||
| 237 | requested by rural counties shall be made available for use with | ||
| 238 | all eligible participants in the program. As used in this | ||
| 239 | paragraph, the term “rural county” means a county that has a | ||
| 240 | population of 75,000 or fewer or a county that has a population | ||
| 241 | of 100,000 or fewer and is contiguous to a county that has a | ||
| 242 | population of 75,000 or fewer, as determined by the most recent | ||
| 243 | official estimate under s. 186.901. | ||
| 244 | Section 4. This act shall take effect July 1, 2004. | ||