Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2212
Barcode 682680
CHAMBER ACTION
Senate House
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11 The Committee on Commerce and Consumer Services (Saunders)
12 recommended the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
16
17 and insert:
18 Section 1. Paragraph (o) of subsection (5) of section
19 212.08, Florida Statutes, is amended to read:
20 212.08 Sales, rental, use, consumption, distribution,
21 and storage tax; specified exemptions.--The sale at retail,
22 the rental, the use, the consumption, the distribution, and
23 the storage to be used or consumed in this state of the
24 following are hereby specifically exempt from the tax imposed
25 by this chapter.
26 (5) EXEMPTIONS; ACCOUNT OF USE.--
27 (o) Building materials in redevelopment projects.--
28 1. As used in this paragraph, the term:
29 a. "Building materials" means tangible personal
30 property that becomes a component part of a housing project or
31 a mixed-use project.
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1 b. "Housing project" means the conversion of an
2 existing manufacturing or industrial building to housing units
3 in a designated an urban job tax credit high-crime area,
4 enterprise zone, empowerment zone, Front Porch Community,
5 designated brownfield area, or urban infill area and in which
6 the developer agrees to set aside at least 20 percent of the
7 housing units in the project for low-income and
8 moderate-income persons or the construction in a designated
9 brownfield area of affordable housing for persons described in
10 s. 420.0004(9), (10), or (14), or in s. 159.603(7).
11 c. "Mixed-use project" means the conversion of an
12 existing manufacturing or industrial building to mixed-use
13 units that include artists' studios, art and entertainment
14 services, or other compatible uses. A mixed-use project must
15 be located in a designated an urban job tax credit high-crime
16 area, enterprise zone, empowerment zone, Front Porch
17 Community, designated brownfield area, or urban infill area,
18 and the developer must agree to set aside at least 20 percent
19 of the square footage of the project for low-income and
20 moderate-income housing.
21 d. "Substantially completed" has the same meaning as
22 provided in s. 192.042(1).
23 2. Building materials used in the construction of a
24 housing project or mixed-use project are exempt from the tax
25 imposed by this chapter upon an affirmative showing to the
26 satisfaction of the department that the requirements of this
27 paragraph have been met. This exemption inures to the owner
28 through a refund of previously paid taxes. To receive this
29 refund, the owner must file an application under oath with the
30 department which includes:
31 a. The name and address of the owner.
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1 b. The address and assessment roll parcel number of
2 the project for which a refund is sought.
3 c. A copy of the building permit issued for the
4 project.
5 d. A certification by the local building code
6 inspector that the project is substantially completed.
7 e. A sworn statement, under penalty of perjury, from
8 the general contractor licensed in this state with whom the
9 owner contracted to construct the project, which statement
10 lists the building materials used in the construction of the
11 project and the actual cost thereof, and the amount of sales
12 tax paid on these materials. If a general contractor was not
13 used, the owner shall provide this information in a sworn
14 statement, under penalty of perjury. Copies of invoices
15 evidencing payment of sales tax must be attached to the sworn
16 statement.
17 3. An application for a refund under this paragraph
18 must be submitted to the department within 6 months after the
19 date the project is deemed to be substantially completed by
20 the local building code inspector. Within 30 working days
21 after receipt of the application, the department shall
22 determine if it meets the requirements of this paragraph. A
23 refund approved pursuant to this paragraph shall be made
24 within 30 days after formal approval of the application by the
25 department. The provisions of s. 212.095 do not apply to any
26 refund application made under this paragraph.
27 4. The department shall establish by rule an
28 application form and criteria for establishing eligibility for
29 exemption under this paragraph.
30 5. The exemption shall apply to purchases of materials
31 on or after July 1, 2000.
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1 Section 2. Section 212.097, Florida Statutes, is
2 amended to read:
3 212.097 Designated Urban High-Crime Area Job Tax
4 Credit Area Program.--
5 (1) As used in this section, the term:
6 (a) "Eligible business" means any sole proprietorship,
7 firm, partnership, or corporation that is located in a
8 designated urban job tax credit area qualified county and is
9 predominantly engaged in, or is headquarters for a business
10 predominantly engaged in, activities usually provided for
11 consideration by firms classified within the following
12 standard industrial classifications: SIC 01-SIC 09
13 (agriculture, forestry, and fishing); SIC 20-SIC 39
14 (manufacturing); SIC 52-SIC 57 and SIC 59 (retail); SIC 422
15 (public warehousing and storage); SIC 70 (hotels and other
16 lodging places); SIC 7391 (research and development); SIC 781
17 (motion picture production and allied services); SIC 7992
18 (public golf courses); and SIC 7996 (amusement parks); and a
19 targeted industry eligible for the qualified target industry
20 business tax refund under s. 288.106. A call center or similar
21 customer service operation that services a multistate market
22 or international market is also an eligible business. In
23 addition, the Office of Tourism, Trade, and Economic
24 Development may, as part of its final budget request submitted
25 pursuant to s. 216.023, recommend additions to or deletions
26 from the list of standard industrial classifications used to
27 determine an eligible business, and the Legislature may
28 implement such recommendations. Excluded from eligible
29 receipts are receipts from retail sales, except such receipts
30 for SIC 52-SIC 57 and SIC 59 (retail) hotels and other lodging
31 places classified in SIC 70, public golf courses in SIC 7992,
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1 and amusement parks in SIC 7996. For purposes of this
2 paragraph, the term "predominantly" means that more than 50
3 percent of the business's gross receipts from all sources is
4 generated by those activities usually provided for
5 consideration by firms in the specified standard industrial
6 classification. The determination of whether the business is
7 located in a designated urban job tax credit qualified
8 high-crime area and the tier ranking of that area must be
9 based on the date of application for the credit under this
10 section. Commonly owned and controlled entities are to be
11 considered a single business entity.
12 (b) "Qualified employee" means any employee of an
13 eligible business who performs duties in connection with the
14 operations of the business on a regular, full-time basis for
15 an average of at least 36 hours per week for at least 3 months
16 within the designated urban job tax credit qualified
17 high-crime area in which the eligible business is located. An
18 owner or partner of the eligible business is not a qualified
19 employee. The term also includes an employee leased from an
20 employee leasing company licensed under chapter 468, if such
21 employee has been continuously leased to the employer for an
22 average of at least 36 hours per week for more than 6 months.
23 (c) "New business" means any eligible business first
24 beginning operation on a site in a designated urban job tax
25 credit qualified high-crime area and clearly separate from any
26 other commercial or business operation of the business entity
27 within a designated urban job tax credit qualified high-crime
28 area. A business entity that operated an eligible business
29 within a designated urban job tax credit qualified high-crime
30 area within the 48 months before the period provided for
31 application by subsection (2) is not considered a new
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1 business.
2 (d) "Existing business" means any eligible business
3 that does not meet the criteria for a new business.
4 (e) "Designated urban job tax credit Qualified
5 high-crime area" means an area selected by the Office of
6 Tourism, Trade, and Economic Development in the following
7 manner: every fifth third year, the office shall designate
8 rank and tier those areas nominated under subsection (7),
9 according to the highest level of distress experienced in the
10 categories enumerated under subsection (7). The Office of
11 Tourism, Trade, and Economic Development shall designate the
12 30 highest-distress-profile urban areas as eligible
13 participants under the Designated Urban Job Tax Credit Area
14 Program. following prioritized criteria:
15 1. Highest arrest rates within the geographic area for
16 violent crime and for such other crimes as drug sale, drug
17 possession, prostitution, vandalism, and civil disturbances;
18 2. Highest reported crime volume and rate of specific
19 property crimes such as business and residential burglary,
20 motor vehicle theft, and vandalism;
21 3. Highest percentage of reported index crimes that
22 are violent in nature;
23 4. Highest overall index crime volume for the area;
24 and
25 5. Highest overall index crime rate for the geographic
26 area.
27
28 Tier-one areas are ranked 1 through 5 and represent the
29 highest crime areas according to this ranking. Tier-two areas
30 are ranked 6 through 10 according to this ranking. Tier-three
31 areas are ranked 11 through 15. Notwithstanding this
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1 definition, "designated urban job tax credit qualified
2 high-crime area" also means an area that has been designated
3 as a federal Empowerment Zone pursuant to the Taxpayer Relief
4 Act of 1997 or the Community Tax Relief Act of 2000. An area
5 designated under this section as of December 31, 2005, shall
6 retain the designation through December 31, 2010; however, all
7 other provisions of this section shall apply. An area
8 designated pursuant to this section shall retain the
9 designation for a period not to exceed 5 years after the
10 effective date of designation. Thereafter, any such area or
11 any other area eligible for designation may seek approval from
12 the office for designation. Such a designated area is ranked
13 in tier three until the areas are reevaluated by the Office of
14 Tourism, Trade, and Economic Development.
15 (f) "Urban" means a densely populated nonrural area
16 located within an urban county that consists of a cluster of
17 one or more census blocks, each of which has a population
18 density of at least 400 people per square mile, or an area
19 defined as an urbanized area by the most recent United States
20 Census.
21 (g) "Urban infill and redevelopment area" means an
22 area or areas designated by a local government where:
23 1. Public services such as water and wastewater,
24 transportation, schools, and recreation are already available
25 or are scheduled to be provided in an adopted 5-year schedule
26 of capital improvements;
27 2. The area, or one or more neighborhoods within the
28 area, suffers from pervasive poverty, unemployment, and
29 general distress as defined by s. 290.0058;
30 3. The area exhibits a proportion of properties that
31 are substandard, overcrowded, dilapidated, vacant or
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1 abandoned, or functionally obsolete which is higher than the
2 average for the local government;
3 4. More than 50 percent of the area is within 1/4
4 mile of a transit stop, or a sufficient number of such transit
5 stops will be made available concurrent with the designation;
6 and
7 5. The area includes or is adjacent to community
8 redevelopment areas, brownfields, enterprise zones, or Main
9 Street programs, or has been designated by the state or
10 Federal Government as an urban redevelopment, revitalization,
11 or infill area under empowerment zone, enterprise community,
12 or brownfield showcase community programs or similar programs.
13 (2) A new eligible business may apply for a tax credit
14 under this subsection once at any time during its first year
15 of operation. A new eligible business in a designated urban
16 job tax credit tier-one qualified high-crime area which has at
17 least 10 qualified employees on the date of application shall
18 receive a $1,500 tax credit for each such employee. A new
19 eligible business in a tier-two qualified high-crime area
20 which has at least 20 qualified employees on the date of
21 application shall receive a $1,000 tax credit for each such
22 employee. A new eligible business in a tier-three qualified
23 high-crime area which has at least 30 qualified employees on
24 the date of application shall receive a $500 tax credit for
25 each such employee.
26 (3) An existing eligible business may apply for a tax
27 credit under this subsection at any time it is entitled to
28 such credit, except as restricted by this subsection. An
29 existing eligible business in a designated urban job tax
30 credit tier-one qualified high-crime area which on the date of
31 application has at least 5 more qualified employees than it
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1 had 1 year prior to its date of application shall receive a
2 $1,500 tax credit for each such additional employee. An
3 existing eligible business in a tier-two qualified high-crime
4 area which on the date of application has at least 10 more
5 qualified employees than it had 1 year prior to its date of
6 application shall receive a $1,000 credit for each such
7 additional employee. An existing business in a tier-three
8 qualified high-crime area which on the date of application has
9 at least 15 more qualified employees than it had 1 year prior
10 to its date of application shall receive a $500 tax credit for
11 each such additional employee. An existing eligible business
12 may apply for the credit under this subsection no more than
13 once in any 12-month period. Any existing eligible business
14 that received a credit under subsection (2) may not apply for
15 the credit under this subsection sooner than 12 months after
16 the application date for the credit under subsection (2).
17 (4) For any new eligible business receiving a credit
18 pursuant to subsection (2), an additional $500 credit shall be
19 provided for any qualified employee who is a welfare
20 transition program participant. For any existing eligible
21 business receiving a credit pursuant to subsection (3), an
22 additional $500 credit shall be provided for any qualified
23 employee who is a welfare transition program participant. Such
24 employee must be employed on the application date and have
25 been employed less than 1 year. This credit shall be in
26 addition to other credits pursuant to this section regardless
27 of the tier-level of the high-crime area. Appropriate
28 documentation concerning the eligibility of an employee for
29 this credit must be submitted as determined by the department.
30 (5) To be eligible for a tax credit under subsection
31 (3), the number of qualified employees employed 1 year prior
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1 to the application date must be no lower than the number of
2 qualified employees on the application date on which a credit
3 under this section was based for any previous application,
4 including an application under subsection (2).
5 (6) Any county or municipality, or a county and one or
6 more municipalities together, may apply to the Office of
7 Tourism, Trade, and Economic Development for the designation
8 of an area as a designated urban job tax credit high-crime
9 area after the adoption by the governing body or bodies of a
10 resolution that:
11 (a) Finds that an urban a high-crime area exists in
12 such county or municipality, or in both the county and one or
13 more municipalities, which chronically exhibits extreme and
14 unacceptable levels of poverty, unemployment, physical
15 deterioration, and economic disinvestment.;
16 (b) Determines that the rehabilitation, conservation,
17 or redevelopment, or a combination thereof, of such an urban a
18 high-crime area is necessary in the interest of the health,
19 safety, and welfare of the residents of such county or
20 municipality, or such county and one or more municipalities.;
21 and
22 (c) Determines that the revitalization of such an
23 urban a high-crime area can occur if the public sector or
24 private sector can be induced to invest its own resources in
25 productive enterprises that build or rebuild the economic
26 viability of the area.
27 (7) The governing body of the entity nominating the
28 area shall demonstrate provide to the Office of Tourism,
29 Trade, and Economic Development that the area following:
30 (a)1. Has at least forty percent of its residents
31 earning wages on an annual basis which are equal to or less
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1 than the annual wage of a person who is earning minimum wage;
2 or
3 2. Has more than 20 percent of its residents or
4 families living below the federal standard of poverty for
5 individuals or a family of four The overall index crime rate
6 for the geographic area;
7 (b) The overall index crime volume for the area;
8 (b)(c) Has an unemployment rate at least 3 percentage
9 points higher than the state's unemployment rate; The
10 percentage of reported index crimes that are violent in
11 nature;
12 (c)(d) Has an arrest rate higher than the state's
13 average rate for such crimes as drug sale, drug possession,
14 prostitution, vandalism, and civil disturbances, as recorded
15 by the total crime index of the Department of Law Enforcement;
16 and The reported crime volume and rate of specific property
17 crimes such as business and residential burglary, motor
18 vehicle theft, and vandalism; and
19 (d)(e)1. Has 50 percent or more of its residents who
20 rent;
21 2. Has property values that are within the lower 50
22 percent of the county's assessed property values;
23 3. Has more than 5 percent of its commercial buildings
24 currently vacant or condemned within the previous 24 months;
25 or
26 4. With respect to at least 25 percent of tax or
27 special assessment delinquencies, the amount of the
28 delinquency exceeds the fair value of the land The arrest
29 rates within the geographic area for violent crime and for
30 such other crimes as drug sale, drug possession, prostitution,
31 disorderly conduct, vandalism, and other public-order
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1 offenses.
2 (8) A municipality, or a county and one or more
3 municipalities together, may not nominate more than one urban
4 high-crime area. However, any county as defined by s.
5 125.011(1) may nominate no more than three urban high-crime
6 areas.
7 (9) An area nominated by a county or municipality, or
8 a county and one or more municipalities together, for
9 designation as a designated urban job tax credit high-crime
10 area shall be eligible only if it meets the following
11 criteria:
12 (a) The selected area does not exceed 20 square miles
13 and either has a continuous boundary or consists of not more
14 than three noncontiguous parcels;
15 (b) The selected area does not exceed the following
16 mileage limitation:
17 1. For areas communities having a total population of
18 150,000 persons or more, the selected area does not exceed 20
19 square miles and is within 10 miles of the urban infill and
20 redevelopment area of a city.
21 2. For areas communities having a total population of
22 50,000 persons or more, but fewer than 150,000 persons, the
23 selected area does not exceed 10 square miles and is within
24 7.5 miles of the urban infill and redevelopment area of a
25 city.
26 3. For areas communities having a total population of
27 20,000 persons or more, but fewer than 50,000 persons, the
28 selected area does not exceed 5 square miles and is within 5
29 miles of the urban infill and redevelopment area of a city.
30 4. For areas communities having a total population of
31 fewer than 20,000 persons, the selected area does not exceed 3
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1 square miles and is within 3 miles of the urban infill and
2 redevelopment area of a city.
3 (10)(a) In order to claim this credit, an eligible
4 business must file under oath with the Office of Tourism,
5 Trade, and Economic Development a statement that includes the
6 name and address of the eligible business and any other
7 information that is required to process the application.
8 (b) Within 30 working days after receipt of an
9 application for credit, the Office of Tourism, Trade, and
10 Economic Development shall review the application to determine
11 whether it contains all the information required by this
12 subsection and meets the criteria set out in this section.
13 Subject to the provisions of paragraph (c), the Office of
14 Tourism, Trade, and Economic Development shall approve all
15 applications that contain the information required by this
16 subsection and meet the criteria set out in this section as
17 eligible to receive a credit.
18 (c) The maximum credit amount that may be approved
19 during any calendar year is $5 million, of which $1 million
20 shall be exclusively reserved for tier-one areas. The
21 Department of Revenue, in conjunction with the Office of
22 Tourism, Trade, and Economic Development, shall notify the
23 governing bodies in areas designated under this section as
24 urban high-crime areas when the $5 million maximum amount has
25 been reached. Applications must be considered for approval in
26 the order in which they are received without regard to whether
27 the credit is for a new or existing business. This limitation
28 applies to the value of the credit as contained in approved
29 applications. Approved credits may be taken in the time and
30 manner allowed pursuant to this section.
31 (11) If the application is insufficient to support the
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1 credit authorized in this section, the Office of Tourism,
2 Trade, and Economic Development shall deny the credit and
3 notify the business of that fact. The business may reapply for
4 this credit within 3 months after such notification.
5 (12) If the credit under this section is greater than
6 can be taken on a single tax return, excess amounts may be
7 taken as credits on any tax return submitted within 12 months
8 after the approval of the application by the department.
9 (13) It is the responsibility of each business to
10 affirmatively demonstrate to the satisfaction of the
11 Department of Revenue that it meets the requirements of this
12 section.
13 (14) Any person who fraudulently claims this credit is
14 liable for repayment of the credit plus a mandatory penalty of
15 100 percent of the credit and is guilty of a misdemeanor of
16 the second degree, punishable as provided in s. 775.082 or s.
17 775.083.
18 (15) A corporation may take the credit under this
19 section against its corporate income tax liability, as
20 provided in s. 220.1895. However, a corporation that applies
21 its job tax credit against the tax imposed by chapter 220 may
22 not receive the credit provided for in this section. A credit
23 may be taken against only one tax.
24 (16) The department shall adopt rules governing the
25 manner and form of applications for credit and may establish
26 guidelines concerning the requisites for an affirmative
27 showing of qualification for the credit under this section.
28 Section 3. Section 220.1895, Florida Statutes, is
29 amended to read:
30 220.1895 Rural Job Tax Credit and Designated Urban
31 High-Crime Area Job Tax Credit.--There shall be allowed a
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1 credit against the tax imposed by this chapter amounts
2 approved by the Office of Tourism, Trade, and Economic
3 Development pursuant to the Rural Job Tax Credit Program in s.
4 212.098 and the Designated Urban High-Crime Area Job Tax
5 Credit Area Program in s. 212.097. A corporation that uses its
6 credit against the tax imposed by this chapter may not take
7 the credit against the tax imposed by chapter 212. If any
8 credit granted under this section is not fully used in the
9 first year for which it becomes available, the unused amount
10 may be carried forward for a period not to exceed 5 years. The
11 carryover may be used in a subsequent year when the tax
12 imposed by this chapter for such year exceeds the credit for
13 such year under this section after applying the other credits
14 and unused credit carryovers in the order provided in s.
15 220.02(8). The Office of Tourism, Trade, and Economic
16 Development shall conduct a review of the Urban High-Crime
17 Area Job Tax Credit and the Rural Job Tax Credit Program and
18 submit its report to the Governor, the President of the
19 Senate, and the Speaker of the House of Representatives by
20 February 1, 2000.
21 Section 4. Subsection (2) of section 288.99, Florida
22 Statutes, is amended to read:
23 288.99 Certified Capital Company Act.--
24 (2) PURPOSE.--The primary purpose of this act is to
25 stimulate a substantial increase in venture capital
26 investments in this state by providing an incentive for
27 insurance companies to invest in certified capital companies
28 in this state which, in turn, will make investments in new
29 businesses or in expanding businesses, including
30 minority-owned or minority-operated businesses and businesses
31 located in a designated Front Porch community, enterprise
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1 zone, designated urban job tax credit high-crime area, rural
2 job tax credit county, or nationally recognized historic
3 district. The increase in investment capital flowing into new
4 or expanding businesses is intended to contribute to
5 employment growth, create jobs which exceed the average wage
6 for the county in which the jobs are created, and expand or
7 diversify the economic base of this state.
8 Section 5. This act shall take effect July 1, 2005.
9
10
11 ================ T I T L E A M E N D M E N T ===============
12 And the title is amended as follows:
13 Delete everything before the enacting clause
14
15 and insert:
16 A bill to be entitled
17 An act relating to economic development;
18 amending s. 212.08, F.S.; conforming provisions
19 to the designated urban job tax credit area
20 revision; amending s. 212.097, F.S.; revising
21 provisions providing for an urban job tax
22 credit program to apply to designated urban job
23 tax credit areas rather than high-crime areas;
24 revising and providing definitions, eligibility
25 criteria, application procedures and
26 requirements, and area characteristics and
27 criteria; amending s. 220.1895, F.S., to
28 conform; deleting an obsolete provision;
29 amending s. 288.99, F.S.; conforming provisions
30 to the designated urban job tax credit area
31 revision; providing an effective date.
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