| 1 | The Economic Development, Trade & Banking Committee recommends |
| 2 | the following: |
| 3 |
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| 4 | Council/Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to an urban revitalization tax-free zone |
| 8 | pilot project; creating certain urban revitalization tax- |
| 9 | free zones; providing eligibility criteria; providing for |
| 10 | certain tax exemptions for businesses in such zones under |
| 11 | certain circumstances; requiring businesses to apply to a |
| 12 | local government or local community redevelopment |
| 13 | organization for exemption certification; providing |
| 14 | requirements for exemption; requiring the Department of |
| 15 | Revenue to issue tax exemption permits to businesses in |
| 16 | such zones under certain circumstances; providing an |
| 17 | expiration date; requiring interim and final reviews of |
| 18 | the Urban Revitalization Tax-Free Zone Pilot Project by |
| 19 | the Office of Program Policy Analysis and Government |
| 20 | Accountability; providing review criteria; requiring |
| 21 | reports to the Legislature; providing for future repeal of |
| 22 | the act; providing applicability; providing an effective |
| 23 | date. |
| 24 |
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| 25 | Be It Enacted by the Legislature of the State of Florida: |
| 26 |
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| 27 | Section 1. Urban Revitalization Tax-Free Zone Pilot |
| 28 | Project Act.--The Urban Revitalization Tax-Free Zone Pilot |
| 29 | Project is created to provide tax exemptions to businesses |
| 30 | located in severely blighted areas in order to foster economic |
| 31 | development and job growth in these areas. |
| 32 | Section 2. Urban revitalization tax-free zones; creation; |
| 33 | eligibility criteria.-- |
| 34 | (1) Two urban revitalization tax-free zones are created, |
| 35 | one located within a portion of Miami-Dade County, specifically |
| 36 | the area bordered by Northwest 23rd Street to the north, |
| 37 | Northwest 5th Street to the south, Northeast First Avenue to the |
| 38 | east, and Northwest 8th Avenue to the west, and one located |
| 39 | within a portion of Duval County, specifically the area bordered |
| 40 | by A. Phillip Randolph Boulevard to the west, Tallyrand Road to |
| 41 | the east, Ninth Street to the north, and Union Street to the |
| 42 | south. |
| 43 | (2)(a) A business, as defined in s. 212.02(2), Florida |
| 44 | Statutes, located within a tax-free zone is exempt from the |
| 45 | excise tax on documents imposed pursuant to chapter 201, Florida |
| 46 | Statutes, and the sales and use tax imposed pursuant to chapter |
| 47 | 212, Florida Statutes, if the business meets the eligibility |
| 48 | criteria of this subsection. |
| 49 | (b) For a new business established in a tax-fee zone on or |
| 50 | after July 1, 2005, the exemption shall be available for a |
| 51 | period not to exceed 10 years, beginning in the year in which |
| 52 | the business receives its initial certification and continuing |
| 53 | for up to 10 years immediately following such certification. For |
| 54 | an existing business located within a tax-free zone, the |
| 55 | exemption shall be available for a period not to exceed 5 years, |
| 56 | beginning in the year in which the business receives its initial |
| 57 | certification and continuing for up to 5 years immediately |
| 58 | following such certification. |
| 59 | (c) To qualify for a tax exemption under this act, a |
| 60 | business must demonstrate that it is located in a tax-free zone |
| 61 | and that no less than 20 percent of its employees are residents |
| 62 | of the tax-free zone or an enterprise zone located within the |
| 63 | county in which the tax-free zone is located. The employment |
| 64 | requirement may be waived if the business is able to demonstrate |
| 65 | good cause. It is a condition precedent to maintaining tax- |
| 66 | exempt status that such employment requirements be fulfilled |
| 67 | throughout each year during the respective 5-year or 10-year |
| 68 | exemption period. |
| 69 | (d) To receive an exemption certificate, a business must |
| 70 | file an application for certification with the local government |
| 71 | or local community redevelopment organization. The application |
| 72 | shall be filed no later than September 1 of the preceding tax |
| 73 | year in which the business is seeking an exemption. A local |
| 74 | government or local community redevelopment organization may |
| 75 | certify a business if the business meets the requirements of |
| 76 | this subsection. |
| 77 | (e) Each local government or local community redevelopment |
| 78 | organization shall annually provide the Department of Revenue a |
| 79 | list of the certified businesses and the department shall issue |
| 80 | a tax exemption permit to each business holding an exemption |
| 81 | certificate issued by the local government or local community |
| 82 | redevelopment organization. |
| 83 | (3) The provisions of this section shall expire and be |
| 84 | void on June 30, 2015, and no business shall be allowed to claim |
| 85 | the exemptions provided under this act after that date. |
| 86 | Section 3. Review of pilot project.--Prior to the 2010 |
| 87 | Regular Session of the Legislature, the Office of Program Policy |
| 88 | Analysis and Government Accountability shall conduct an interim |
| 89 | review and evaluation of the effectiveness and viability of the |
| 90 | urban revitalization tax-free zones created under this act. The |
| 91 | office shall specifically evaluate whether relief from the |
| 92 | specified taxes caused or induced new investment and development |
| 93 | in the area; increased the number of jobs created or retained in |
| 94 | the area; caused or induced the renovation, rehabilitation, |
| 95 | restoration, improvement, or new construction of businesses or |
| 96 | housing within the area; or contributed to the economic |
| 97 | viability and profitability of business and commerce located |
| 98 | within the area. The office shall submit a report of its |
| 99 | findings and recommendations to the Speaker of the House of |
| 100 | Representatives and the President of the Senate no later than |
| 101 | December 1, 2010. In 2015, the office shall conduct a final |
| 102 | review in accordance with this subsection and shall make a final |
| 103 | report to the President of the Senate and the Speaker of the |
| 104 | House of Representatives no later than December 1, 2015. |
| 105 | Section 4. This act is repealed June 30, 2015, and any |
| 106 | designation made pursuant to this act shall be revoked on that |
| 107 | date. |
| 108 | Section 5. This act shall take effect July 1, 2005, and |
| 109 | shall apply to state taxable years beginning on that date. |