Senate Bill sb2394
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Florida Senate - 2005 SB 2394
By Senator Margolis
35-1541-05 See HB
1 A bill to be entitled
2 An act relating to urban revitalization
3 tax-free zones; providing a popular name;
4 defining the terms "business," "tax-free zone,"
5 and "urban revitalization task force";
6 providing criteria and procedures for the urban
7 revitalization tax-free zones pilot project;
8 providing for certain tax exemptions for
9 businesses in such zones under certain
10 circumstances; requiring businesses to apply to
11 a respective urban revitalization tax force for
12 exemption certification; providing procedures
13 and requirements for certification of exemption
14 by such task forces; requiring the Department
15 of Revenue to issue tax exemption certificates
16 to businesses in such zones under certain
17 circumstances; providing exemption eligibility
18 requirements; providing an expiration date;
19 creating the Miami-Dade County and the Duval
20 County Urban Revitalization Task Forces;
21 providing for membership and duties; requiring
22 reports; requiring review of the urban
23 revitalization tax-free zones pilot project by
24 the Office of Program Policy Analysis and
25 Government Accountability; providing review
26 criteria; requiring a report to the
27 Legislature; providing for future repeal of the
28 act; providing an effective date.
29
30 Be It Enacted by the Legislature of the State of Florida:
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Florida Senate - 2005 SB 2394
35-1541-05 See HB
1 Section 1. Popular name.--This act may be cited as the
2 "Urban Revitalization Tax-Free Zone Pilot Project Act."
3 Section 2. Definitions.--As used in this act, the
4 term:
5 (1) "Business" shall have the same meaning as provided
6 in s. 212.02(2), Florida Statutes.
7 (2) "Tax-free zone" means an urban revitalization zone
8 that will allow qualified businesses certified by each
9 respective urban revitalization task force to be exempt from
10 the sales and use tax imposed pursuant to chapter 212, Florida
11 Statutes, and the excise tax on documents imposed pursuant to
12 chapter 201, Florida Statutes, within a portion of Miami-Dade
13 County, specifically the area bordered by Northwest 23rd
14 Street to the north, Northwest 5th Street to the south,
15 Northeast First Avenue to the east, and Northwest 8th Avenue
16 to the west, and within a portion of Duval County,
17 specifically the area bordered by A. Phillip Randolph
18 Boulevard to the north, Tallyrand Road to the south, Ninth
19 Street to the west, and Union Street to the east.
20 (3) "Urban revitalization task force" means a task
21 force created pursuant to this act that certifies businesses
22 in each tax-free zone for exemption from the excise tax on
23 documents imposed pursuant to chapter 201, Florida Statutes,
24 and the sales and use tax imposed pursuant to chapter 212,
25 Florida Statutes.
26 Section 3. Urban revitalization tax-free zone;
27 criteria; procedures.--
28 (1)(a) A business established on or after July 1,
29 2005, in a tax-free zone shall receive an exemption from the
30 excise tax on documents imposed pursuant to chapter 201,
31 Florida Statutes, and the sales and use tax imposed pursuant
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Florida Senate - 2005 SB 2394
35-1541-05 See HB
1 to chapter 212, Florida Statutes. In order for a business to
2 receive a certification exempting the business from the sales
3 and use tax and the excise tax on documents, the business must
4 apply with the respective jurisdictional urban revitalization
5 task force created pursuant to section 4 for certification to
6 receive such exemption.
7 (b) For a business established in a tax-fee zone on or
8 after July 1, 2005, the exemption shall be available for a
9 period not to exceed 10 years, beginning in the year in which
10 the business receives its initial certification from the
11 respective task force and continuing for the 10 years
12 immediately following such certification. For any business
13 established prior to July 1, 2005, the exemption shall be
14 available for a period not to exceed 5 years, beginning in the
15 year in which the business receives its initial certification
16 from the task force and continuing for the 5 years immediately
17 following such certification.
18 (c) To receive a certification for an exemption, a
19 business must file an application for certification with the
20 appropriate jurisdictional urban revitalization task force.
21 The application shall be filed no later than September 1 of
22 the preceding tax year in which the business is seeking an
23 exemption. The application shall be made on a form prescribed
24 by the task force and shall include separate descriptions of:
25 1. Real and tangible personal property owned or leased
26 by the business prior to expansion, if any.
27 2. Net new or additional real and tangible personal
28 property acquired to facilitate a new, expanded, or rebuilt
29 facility.
30 (d) The respective task force shall review the
31 application to determine whether the application contains all
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Florida Senate - 2005 SB 2394
35-1541-05 See HB
1 the information required pursuant to this section and meets
2 the criteria specified in this section as well as criteria
3 related to comprehensive urban planning, neighborhood
4 aesthetics and compatibility, and maximization of economic
5 development and job creation opportunities. The respective
6 task force shall certify each business that submits an
7 application that contains the information required pursuant to
8 this section and meets the criteria specified in this section
9 as eligible to receive an exemption. The certification shall
10 be in writing and a copy of the certification shall be
11 transmitted to the executive director of the Department of
12 Revenue within 10 days after approval of the certification by
13 the respective task force.
14 (2) The Department of Revenue shall issue a tax
15 exemption permit to each business holding an exemption
16 certification issued by the respective task force.
17 (3) In order to qualify for a tax exemption under this
18 act, a business must provide a statement that no less than 20
19 percent of its employees are residents of the tax-free zone or
20 an enterprise zone located within the county in which the
21 tax-free zone is located. The business may be exempt from this
22 20-percent requirement if the business is able to demonstrate
23 just cause to the respective task force. It shall be a
24 condition precedent to maintaining tax-exempt status that such
25 employment requirements be fulfilled throughout each year
26 during the respective 5-year or 10-year period of the
27 exemption. The statement shall set forth the name and place of
28 residence of each permanent employee on the last day of
29 business of the tax year for which the exemption is claimed
30 or, if an employee is no longer employed or eligible for the
31 credit on that date, on the last calendar day of the last full
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Florida Senate - 2005 SB 2394
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1 calendar month the employee was employed or eligible for the
2 credit at the relevant site.
3 (4) The provisions of this section shall expire and be
4 void on June 30, 2013, and no business shall be allowed to
5 claim the exemptions provided under this act after that date.
6 Section 4. Urban revitalization task forces; creation;
7 membership and duties.--
8 (1) The Miami-Dade County Urban Revitalization Task
9 Force and the Duval County Urban Revitalization Task Force are
10 created. Each task force shall be composed of a business owner
11 operating within the tax-free zone, appointed by the Governor;
12 a resident residing within the tax-free zone, appointed by the
13 Governor; a member of the House of Representatives residing in
14 each respective tax-free zone, appointed by the Speaker of the
15 House of Representatives; a member of the Senate residing in
16 each respective tax-free zone, appointed by the President of
17 the Senate; in Miami-Dade County, a county commissioner
18 appointed by the county mayor and a city commissioner
19 appointed by the Mayor of Miami; in Duval County, a
20 councilperson appointed by the Mayor of Jacksonville and a
21 councilperson appointed by the president of the Jacksonville
22 consolidated city council; and the director of the Office of
23 Tourism, Trade, and Economic Development. The terms of office
24 for task force members shall be for 4 years each, except that
25 members appointed by the Speaker of the House of
26 Representatives and the President of the Senate shall serve
27 for terms of 2 years each. A vacancy occurring during a term
28 shall be filled for the unexpired term in the same manner as
29 the original appointment. A task force member shall receive no
30 compensation for his or her services, but is entitled to the
31 necessary expenses, including travel expenses, as provided in
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Florida Senate - 2005 SB 2394
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1 section 112.061, Florida Statutes, incurred in the discharge
2 of his or her duties. Each task force member shall hold office
3 until a successor has been appointed and has qualified. A
4 certificate of the appointment or reappointment of any task
5 force member shall be filed with the Clerk of Miami-Dade
6 County or the Clerk of Duval County, respectively, and the
7 certificate is conclusive evidence of the due and proper
8 appointment of the task force member. The task force must meet
9 at least quarterly in order to review applications and make
10 determinations as to businesses eligible to attain tax-exempt
11 status. The task force shall vote and designate a chair and
12 vice chair. Members of each task force who are members of the
13 Legislature or city or county commissioners or council members
14 shall be ex officio nonvoting members.
15 (2) Subject to funding by the Miami-Dade County
16 Commission and the Duval County/Jacksonville City Council,
17 respectively, each task force may employ or designate an
18 executive director, technical experts, and such other agents
19 and employees, permanent and temporary, as the task force
20 requires and determine their qualifications, duties, and
21 compensation. For such legal services as the task force
22 requires, each task force may employ or retain its own counsel
23 and legal staff. Each task force authorized to transact
24 business and exercise powers under this act shall file with
25 the Clerk of Miami-Dade County or the Clerk of Duval County
26 respectively, on or before March 31 of each year, a report of
27 its activities for the preceding fiscal year, which report
28 shall include a complete financial statement setting forth its
29 assets, liabilities, income, and operating expenses as of the
30 end of such fiscal year. At the time of filing the report,
31 each task force shall publish in a newspaper of general
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Florida Senate - 2005 SB 2394
35-1541-05 See HB
1 circulation in the community a notice to the effect that such
2 report has been filed with the respective county or
3 county/city authority and is available for inspection during
4 business hours in the offices of the respective task force.
5 (3) Each task force shall submit a report of its
6 activities to the Governor, the Speaker of the House of
7 Representatives, and the President of the Senate by February
8 15 of each year.
9 Section 5. Review of pilot project.--Prior to the 2015
10 Regular Session of the Legislature, the Office of Program
11 Policy Analysis and Government Accountability shall review and
12 evaluate the effectiveness and viability of the urban
13 revitalization tax-free zones created under this act. The
14 Office of Program Policy Analysis and Government
15 Accountability shall specifically evaluate whether relief from
16 the specified taxes caused or induced new investment and
17 development in the area; increased the number of jobs created
18 or retained in the area; caused or induced the renovation,
19 rehabilitation, restoration, improvement, or new construction
20 of businesses or housing within the area; or contributed to
21 the economic viability and profitability of business and
22 commerce located within the area. The Office of Program Policy
23 Analysis and Government Accountability shall submit a report
24 of its findings and recommendations to the Speaker of the
25 House of Representatives and the President of the Senate no
26 later than January 15, 2015.
27 Section 6. This act is repealed June 30, 2015, and any
28 designation made pursuant to this act shall be revoked on that
29 date.
30 Section 7. This act shall take effect January 1, 2006.
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