| 1 | A bill to be entitled |
| 2 | An act relating to enterprise zones; authorizing the |
| 3 | Office of Tourism, Trade, and Economic Development to |
| 4 | approve requests to amend enterprise zone boundaries; |
| 5 | providing amendment requirements; authorizing existing |
| 6 | enterprise zones to request recertification; providing |
| 7 | request requirements; amending s. 212.08, F.S.; reducing |
| 8 | the amount of sales tax refunded for business property |
| 9 | used in an enterprise zone; revising the definition of the |
| 10 | term "business property"; amending s. 290.007, F.S.; |
| 11 | authorizing eligible businesses to transfer unused |
| 12 | credits; providing requirements and limitations; amending |
| 13 | s. 290.016, F.S.; extending the expiration date of the |
| 14 | Florida Enterprise Zone Act of 1994; providing an |
| 15 | effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. (1) Notwithstanding any provision of ss. |
| 20 | 290.001-290.016, Florida Statutes, the Office of Tourism, Trade, |
| 21 | and Economic Development may approve any request to amend the |
| 22 | boundaries of an enterprise zone created or recertified after |
| 23 | September 1, 2005. Boundary amendments authorized pursuant to |
| 24 | this subsection are subject to the following requirements: |
| 25 | (a) The amendment shall not increase the overall size of |
| 26 | the zone beyond 20 square miles. |
| 27 | (b) The amendment shall be consistent with the rationale |
| 28 | for the establishment of the enterprise zone as provided in s. |
| 29 | 290.0058. |
| 30 | (c) The local enterprise zone development agency shall |
| 31 | request the amendment from the Office of Tourism, Trade, and |
| 32 | Economic Development. The request must contain maps and |
| 33 | sufficient information to allow the office to determine the |
| 34 | number of noncontiguous areas and the total enterprise zone |
| 35 | size. The request must also contain the justification for |
| 36 | changing the existing enterprise zone boundaries. |
| 37 | (d) The office shall have 30 days to review and act upon |
| 38 | the boundary amendment request. |
| 39 | (2) All enterprise zones existing as of December 31, 2004, |
| 40 | may submit a letter requesting recertification of the existing |
| 41 | enterprise zone to the Office of Tourism, Trade, and Economic |
| 42 | Development by September 1, 2005. No reasonable request for |
| 43 | recertification shall be denied. Such request shall include: |
| 44 | (a) A description of the progress made within the zone as |
| 45 | measured against the existing strategic plan. |
| 46 | (b) A map of the zone. |
| 47 | (c) A statement of the goals for the next calendar year, |
| 48 | including, but not limited to, the number of new jobs, housing |
| 49 | starts, and infrastructure projects and new capital investment. |
| 50 | (d) A narrative description of the zone with address |
| 51 | ranges. |
| 52 | Section 2. Paragraph (h) of subsection (5) of section |
| 53 | 212.08, Florida Statutes, is amended to read: |
| 54 | 212.08 Sales, rental, use, consumption, distribution, and |
| 55 | storage tax; specified exemptions.--The sale at retail, the |
| 56 | rental, the use, the consumption, the distribution, and the |
| 57 | storage to be used or consumed in this state of the following |
| 58 | are hereby specifically exempt from the tax imposed by this |
| 59 | chapter. |
| 60 | (5) EXEMPTIONS; ACCOUNT OF USE.-- |
| 61 | (h) Business property used in an enterprise zone.-- |
| 62 | 1. Business property purchased for use by businesses |
| 63 | located in an enterprise zone which is subsequently used in an |
| 64 | enterprise zone shall be exempt from the tax imposed by this |
| 65 | chapter. This exemption inures to the business only through a |
| 66 | refund of previously paid taxes. A refund shall be authorized |
| 67 | upon an affirmative showing by the taxpayer to the satisfaction |
| 68 | of the department that the requirements of this paragraph have |
| 69 | been met. |
| 70 | 2. To receive a refund, the business must file under oath |
| 71 | with the governing body or enterprise zone development agency |
| 72 | having jurisdiction over the enterprise zone where the business |
| 73 | is located, as applicable, an application which includes: |
| 74 | a. The name and address of the business claiming the |
| 75 | refund. |
| 76 | b. The identifying number assigned pursuant to s. 290.0065 |
| 77 | to the enterprise zone in which the business is located. |
| 78 | c. A specific description of the property for which a |
| 79 | refund is sought, including its serial number or other permanent |
| 80 | identification number. |
| 81 | d. The location of the property. |
| 82 | e. The sales invoice or other proof of purchase of the |
| 83 | property, showing the amount of sales tax paid, the date of |
| 84 | purchase, and the name and address of the sales tax dealer from |
| 85 | whom the property was purchased. |
| 86 | f. Whether the business is a small business as defined by |
| 87 | s. 288.703(1). |
| 88 | g. If applicable, the name and address of each permanent |
| 89 | employee of the business, including, for each employee who is a |
| 90 | resident of an enterprise zone, the identifying number assigned |
| 91 | pursuant to s. 290.0065 to the enterprise zone in which the |
| 92 | employee resides. |
| 93 | 3. Within 10 working days after receipt of an application, |
| 94 | the governing body or enterprise zone development agency shall |
| 95 | review the application to determine if it contains all the |
| 96 | information required pursuant to subparagraph 2. and meets the |
| 97 | criteria set out in this paragraph. The governing body or agency |
| 98 | shall certify all applications that contain the information |
| 99 | required pursuant to subparagraph 2. and meet the criteria set |
| 100 | out in this paragraph as eligible to receive a refund. If |
| 101 | applicable, the governing body or agency shall also certify if |
| 102 | 20 percent of the employees of the business are residents of an |
| 103 | enterprise zone, excluding temporary and part-time employees. |
| 104 | The certification shall be in writing, and a copy of the |
| 105 | certification shall be transmitted to the executive director of |
| 106 | the Department of Revenue. The business shall be responsible for |
| 107 | forwarding a certified application to the department within the |
| 108 | time specified in subparagraph 4. |
| 109 | 4. An application for a refund pursuant to this paragraph |
| 110 | must be submitted to the department within 6 months after the |
| 111 | tax is due on the business property that is purchased. |
| 112 | 5. The provisions of s. 212.095 do not apply to any refund |
| 113 | application made pursuant to this paragraph. The amount refunded |
| 114 | on purchases of business property under this paragraph shall be |
| 115 | the lesser of 97 percent of the sales tax paid on such business |
| 116 | property or $500 $5,000, or, if no less than 20 percent of the |
| 117 | employees of the business are residents of an enterprise zone, |
| 118 | excluding temporary and part-time employees, the amount refunded |
| 119 | on purchases of business property under this paragraph shall be |
| 120 | the lesser of 97 percent of the sales tax paid on such business |
| 121 | property or $1,000 $10,000. A refund approved pursuant to this |
| 122 | paragraph shall be made within 30 days of formal approval by the |
| 123 | department of the application for the refund. No refund shall be |
| 124 | granted under this paragraph unless the amount to be refunded |
| 125 | exceeds $100 in sales tax paid on purchases made within a 60-day |
| 126 | time period. |
| 127 | 6. The department shall adopt rules governing the manner |
| 128 | and form of refund applications and may establish guidelines as |
| 129 | to the requisites for an affirmative showing of qualification |
| 130 | for exemption under this paragraph. |
| 131 | 7. If the department determines that the business property |
| 132 | is used outside an enterprise zone within 3 years from the date |
| 133 | of purchase, the amount of taxes refunded to the business |
| 134 | purchasing such business property shall immediately be due and |
| 135 | payable to the department by the business, together with the |
| 136 | appropriate interest and penalty, computed from the date of |
| 137 | purchase, in the manner provided by this chapter. |
| 138 | Notwithstanding this subparagraph, business property used |
| 139 | exclusively in: |
| 140 | a. Licensed commercial fishing vessels, |
| 141 | b. Fishing guide boats, or |
| 142 | c. Ecotourism guide boats |
| 143 |
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| 144 | that leave and return to a fixed location within an area |
| 145 | designated under s. 370.28 are eligible for the exemption |
| 146 | provided under this paragraph if all requirements of this |
| 147 | paragraph are met. Such vessels and boats must be owned by a |
| 148 | business that is eligible to receive the exemption provided |
| 149 | under this paragraph. This exemption does not apply to the |
| 150 | purchase of a vessel or boat. |
| 151 | 8. The department shall deduct an amount equal to 10 |
| 152 | percent of each refund granted under the provisions of this |
| 153 | paragraph from the amount transferred into the Local Government |
| 154 | Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 |
| 155 | for the county area in which the business property is located |
| 156 | and shall transfer that amount to the General Revenue Fund. |
| 157 | 9. For the purposes of this exemption, "business property" |
| 158 | means new or used property defined as "recovery property" in s. |
| 159 | 168(c) of the Internal Revenue Code of 1954, as amended, except: |
| 160 | a. Property classified as 3-year property under s. |
| 161 | 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended; |
| 162 | b. Industrial machinery and equipment as defined in sub- |
| 163 | subparagraph (b)6.a. and eligible for exemption under paragraph |
| 164 | (b); |
| 165 | c. Building materials as defined in sub-subparagraph |
| 166 | (g)8.a.; and |
| 167 | d. Business property having a sales price of under $500 |
| 168 | $5,000 per unit. |
| 169 | 10. The provisions of this paragraph shall expire and be |
| 170 | void on December 31, 2005. |
| 171 | Section 3. Subsection (9) is added to section 290.007, |
| 172 | Florida Statutes, to read: |
| 173 | 290.007 State incentives available in enterprise |
| 174 | zones.--The following incentives are provided by the state to |
| 175 | encourage the revitalization of enterprise zones: |
| 176 | (9) An eligible business may transfer any unused credit in |
| 177 | whole or in units of no less than 25 percent of the remaining |
| 178 | credit. The entity acquiring such credit may use the credit in |
| 179 | the same manner and with the same limitation as described in ss. |
| 180 | 212.096 and 220.181. Such transferred credits may not be |
| 181 | transferred again but may succeed to a surviving or acquiring |
| 182 | entity subject to the same conditions and limitations described |
| 183 | in this section. |
| 184 | Section 4. Section 290.016, Florida Statutes, is amended |
| 185 | to read: |
| 186 | 290.016 Repeal.--Sections 290.001-290.015 shall stand |
| 187 | repealed on December 31, 2015 2005. |
| 188 | Section 5. This act shall take effect July 1, 2005. |