Senate Bill sb2168

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    Florida Senate - 2005                                  SB 2168

    By Senator Posey





    24-1514-05

  1                      A bill to be entitled

  2         An act relating to the local government

  3         infrastructure surtax; amending s. 212.055,

  4         F.S.; limiting use of surtax revenues for

  5         infrastructure purposes; authorizing a portion

  6         of surtax revenues to be used for property tax

  7         reduction under certain circumstances;

  8         authorizing use of a portion of surtax revenues

  9         for operating expenses under certain

10         circumstances; providing limitations; deleting

11         a limitation on issuing bonds; providing an

12         effective date.

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14  Be It Enacted by the Legislature of the State of Florida:

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16         Section 1.  Paragraphs (d) and (e) of subsection (2) of

17  section 212.055, Florida Statutes, are amended to read:

18         212.055  Discretionary sales surtaxes; legislative

19  intent; authorization and use of proceeds.--It is the

20  legislative intent that any authorization for imposition of a

21  discretionary sales surtax shall be published in the Florida

22  Statutes as a subsection of this section, irrespective of the

23  duration of the levy.  Each enactment shall specify the types

24  of counties authorized to levy; the rate or rates which may be

25  imposed; the maximum length of time the surtax may be imposed,

26  if any; the procedure which must be followed to secure voter

27  approval, if required; the purpose for which the proceeds may

28  be expended; and such other requirements as the Legislature

29  may provide.  Taxable transactions and administrative

30  procedures shall be as provided in s. 212.054.

31         (2)  LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.--

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    Florida Senate - 2005                                  SB 2168
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 1         (d)1.  a.  At least 50 percent of the proceeds of the

 2  surtax authorized by this subsection and any interest accrued

 3  thereto shall be expended by the school district or within the

 4  county and municipalities within the county, or, in the case

 5  of a negotiated joint county agreement, within another county,

 6  to finance, plan, and construct infrastructure and to acquire

 7  land for public recreation or conservation or protection of

 8  natural resources and to finance the closure of county-owned

 9  or municipally owned solid waste landfills that are already

10  closed or are required to close by order of the Department of

11  Environmental Protection. Any use of such proceeds or interest

12  for purposes of landfill closure prior to July 1, 1993, is

13  ratified. Neither the proceeds nor any interest accrued

14  thereto shall be used for operational expenses of any

15  infrastructure, except that Any county with a population of

16  less than 75,000 which that is required to close a landfill by

17  order of the Department of Environmental Protection may use

18  the proceeds or any interest accrued thereto for long-term

19  maintenance costs associated with landfill closure. Counties,

20  as defined in s. 125.011(1), and charter counties may, in

21  addition, use the proceeds and any interest accrued thereto to

22  retire or service indebtedness incurred for bonds issued prior

23  to July 1, 1987, for infrastructure purposes, and for bonds

24  subsequently issued to refund such bonds. Any use of such

25  proceeds or interest for purposes of retiring or servicing

26  indebtedness incurred for such refunding bonds prior to July

27  1, 1999, is ratified.

28         b.2.  For the purposes of this subparagraph paragraph,

29  the term "infrastructure" means:

30         (I)a.  Any fixed capital expenditure or fixed capital

31  outlay associated with the construction, reconstruction, or

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    Florida Senate - 2005                                  SB 2168
    24-1514-05




 1  improvement of public facilities which have a life expectancy

 2  of 5 or more years and any land acquisition, land improvement,

 3  design, and engineering costs related thereto.

 4         (II)b.  A fire department vehicle, an emergency medical

 5  service vehicle, a sheriff's office vehicle, a police

 6  department vehicle, or any other vehicle, and such equipment

 7  necessary to outfit the vehicle for its official use or

 8  equipment that has a life expectancy of at least 5 years.

 9         (III)c.  Any expenditure for the construction, lease,

10  or maintenance of, or provision of utilities or security for,

11  facilities as defined in s. 29.008.

12         c.3.  Notwithstanding any other provision of this

13  subsection, a discretionary sales surtax imposed or extended

14  after the effective date of this act may provide for an amount

15  not to exceed 15 percent of the local option sales surtax

16  proceeds to be allocated for deposit to a trust fund within

17  the county's accounts created for the purpose of funding

18  economic development projects of a general public purpose

19  targeted to improve local economies, including the funding of

20  operational costs and incentives related to such economic

21  development. The ballot statement must indicate the intention

22  to make an allocation under the authority of this

23  sub-subparagraph subparagraph.

24         2.  Subject to any obligation to retire or service

25  indebtedness incurred by the taxing authority under this

26  subsection for bonds issued by the taxing authority prior to

27  July 1, 2005, and notwithstanding any other provision of this

28  subsection, a taxing authority receiving proceeds of the

29  surtax and any interest on such proceeds pursuant to this

30  subsection may use up to 35 percent of such proceeds and

31  interest to reduce property taxes and may use up to 15 percent

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    Florida Senate - 2005                                  SB 2168
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 1  of such proceeds and interest for operational expenses;

 2  however, the percentage used for operational expenses may not

 3  exceed the percentage used to reduce property taxes. In the

 4  first year following the year in which the taxing authority

 5  elects to use such proceeds and interest for the reduction of

 6  property taxes, the taxing authority shall levy a millage rate

 7  that, exclusive of new construction, additions to structures,

 8  deletions, increases in the value of improvements that have

 9  undergone a substantial rehabilitation that increased the

10  assessed value of such improvements by at least 100 percent,

11  and property added due to geographic boundary changes, will

12  provide ad valorem tax revenue that, when added to the

13  proceeds and interest being used for property tax reduction,

14  will not exceed the ad valorem tax revenue as levied during

15  the prior year.

16         (e)  School districts, counties, and municipalities

17  receiving proceeds under the provisions of this subsection may

18  pledge such proceeds for the purpose of servicing new bond

19  indebtedness incurred pursuant to law. Local governments may

20  use the services of the Division of Bond Finance of the State

21  Board of Administration pursuant to the State Bond Act to

22  issue any bonds through the provisions of this subsection. In

23  no case may a jurisdiction issue bonds pursuant to this

24  subsection more frequently than once per year. Counties and

25  municipalities may join together for the issuance of bonds

26  authorized by this subsection.

27         Section 2.  This act shall take effect July 1, 2005.

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    Florida Senate - 2005                                  SB 2168
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 1            *****************************************

 2                          SENATE SUMMARY

 3    Revises provisions relating to the local government
      infrastructure surtax. Requires that at least 50 percent
 4    of the proceeds of the surtax, rather than all of such
      proceeds, be used for infrastructure purposes. Authorizes
 5    the use of a portion of the surtax revenues for
      property-tax reduction under certain circumstances.
 6    Authorizes the use of a portion of the surtax revenues
      for operating expenses under certain circumstances.
 7    Provides limitations. Deletes a limitation on issuing
      bonds.
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