Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1132
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CHAMBER ACTION
Senate House
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11 The Committee on Commerce and Consumer Services (King)
12 recommended the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Subsection (1) of section 195.099, Florida
19 Statutes, is amended to read:
20 195.099 Periodic review.--
21 (1)(a) The department shall periodically review the
22 assessments of new, rebuilt, and expanded business reported
23 according to s. 193.077(3), to ensure parity of level of
24 assessment with other classifications of property.
25 (b) The provisions of this subsection shall expire and
26 be void on the date specified in s. 290.016 for the expiration
27 of the Florida Enterprise Zone Act June 30, 2005.
28 Section 2. Paragraph (g) of subsection (5) of section
29 212.08, Florida Statutes, is amended to read:
30 212.08 Sales, rental, use, consumption, distribution,
31 and storage tax; specified exemptions.--The sale at retail,
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Florida Senate - 2006 COMMITTEE AMENDMENT
Bill No. SB 1132
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1 the rental, the use, the consumption, the distribution, and
2 the storage to be used or consumed in this state of the
3 following are hereby specifically exempt from the tax imposed
4 by this chapter.
5 (5) EXEMPTIONS; ACCOUNT OF USE.--
6 (g) Building materials used in the rehabilitation of
7 real property located in an enterprise zone.--
8 1. Building materials used in the rehabilitation of
9 real property located in an enterprise zone shall be exempt
10 from the tax imposed by this chapter upon an affirmative
11 showing to the satisfaction of the department that the items
12 have been used for the rehabilitation of real property located
13 in an enterprise zone. Except as provided in subparagraph 2.,
14 this exemption inures to the owner, lessee, or lessor of the
15 rehabilitated real property located in an enterprise zone only
16 through a refund of previously paid taxes. To receive a refund
17 pursuant to this paragraph, the owner, lessee, or lessor of
18 the rehabilitated real property located in an enterprise zone
19 must file an application under oath with the governing body or
20 enterprise zone development agency having jurisdiction over
21 the enterprise zone where the business is located, as
22 applicable, which includes:
23 a. The name and address of the person claiming the
24 refund.
25 b. An address and assessment roll parcel number of the
26 rehabilitated real property in an enterprise zone for which a
27 refund of previously paid taxes is being sought.
28 c. A description of the improvements made to
29 accomplish the rehabilitation of the real property.
30 d. A copy of the building permit issued for the
31 rehabilitation of the real property.
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1 e. A sworn statement, under the penalty of perjury,
2 from the general contractor licensed in this state with whom
3 the applicant contracted to make the improvements necessary to
4 accomplish the rehabilitation of the real property, which
5 statement lists the building materials used in the
6 rehabilitation of the real property, the actual cost of the
7 building materials, and the amount of sales tax paid in this
8 state on the building materials. In the event that a general
9 contractor has not been used, the applicant shall provide this
10 information in a sworn statement, under the penalty of
11 perjury. Copies of the invoices which evidence the purchase of
12 the building materials used in such rehabilitation and the
13 payment of sales tax on the building materials shall be
14 attached to the sworn statement provided by the general
15 contractor or by the applicant. Unless the actual cost of
16 building materials used in the rehabilitation of real property
17 and the payment of sales taxes due thereon is documented by a
18 general contractor or by the applicant in this manner, the
19 cost of such building materials shall be an amount equal to 40
20 percent of the increase in assessed value for ad valorem tax
21 purposes.
22 f. The identifying number assigned pursuant to s.
23 290.0065 to the enterprise zone in which the rehabilitated
24 real property is located.
25 g. A certification by the local building code
26 inspector that the improvements necessary to accomplish the
27 rehabilitation of the real property are substantially
28 completed.
29 h. Whether the business is a small business as defined
30 by s. 288.703(1).
31 i. If applicable, the name and address of each
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1 permanent employee of the business, including, for each
2 employee who is a resident of an enterprise zone, the
3 identifying number assigned pursuant to s. 290.0065 to the
4 enterprise zone in which the employee resides.
5 2. This exemption inures to a city, county, other
6 governmental agency, or nonprofit community-based organization
7 through a refund of previously paid taxes if the building
8 materials used in the rehabilitation of real property located
9 in an enterprise zone are paid for from the funds of a
10 community development block grant, State Housing Initiatives
11 Partnership Program, or similar grant or loan program. To
12 receive a refund pursuant to this paragraph, a city, county,
13 other governmental agency, or nonprofit community-based
14 organization must file an application which includes the same
15 information required to be provided in subparagraph 1. by an
16 owner, lessee, or lessor of rehabilitated real property. In
17 addition, the application must include a sworn statement
18 signed by the chief executive officer of the city, county,
19 other governmental agency, or nonprofit community-based
20 organization seeking a refund which states that the building
21 materials for which a refund is sought were paid for from the
22 funds of a community development block grant, State Housing
23 Initiatives Partnership Program, or similar grant or loan
24 program.
25 3. Within 10 working days after receipt of an
26 application, the governing body or enterprise zone development
27 agency shall review the application to determine if it
28 contains all the information required pursuant to subparagraph
29 1. or subparagraph 2. and meets the criteria set out in this
30 paragraph. The governing body or agency shall certify all
31 applications that contain the information required pursuant to
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1 subparagraph 1. or subparagraph 2. and meet the criteria set
2 out in this paragraph as eligible to receive a refund. If
3 applicable, the governing body or agency shall also certify if
4 20 percent of the employees of the business are residents of
5 an enterprise zone, excluding temporary and part-time
6 employees. The certification shall be in writing, and a copy
7 of the certification shall be transmitted to the executive
8 director of the Department of Revenue. The applicant shall be
9 responsible for forwarding a certified application to the
10 department within the time specified in subparagraph 4.
11 4. An application for a refund pursuant to this
12 paragraph must be submitted to the department within 6 months
13 after the rehabilitation of the property is deemed to be
14 substantially completed by the local building code inspector
15 or by September 1 after the rehabilitated property is first
16 subject to assessment.
17 5. The provisions of s. 212.095 do not apply to any
18 refund application made pursuant to this paragraph. No more
19 than one exemption through a refund of previously paid taxes
20 for the rehabilitation of real property shall be permitted for
21 any one parcel of property unless there is a change in
22 ownership, a new lessor, or a new lessee of the real property.
23 No refund shall be granted pursuant to this paragraph unless
24 the amount to be refunded exceeds $500. No refund granted
25 pursuant to this paragraph shall exceed the lesser of 97
26 percent of the Florida sales or use tax paid on the cost of
27 the building materials used in the rehabilitation of the real
28 property as determined pursuant to sub-subparagraph 1.e. or
29 $5,000, or, if no less than 20 percent of the employees of the
30 business are residents of an enterprise zone, excluding
31 temporary and part-time employees, the amount of refund
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1 granted pursuant to this paragraph shall not exceed the lesser
2 of 97 percent of the sales tax paid on the cost of such
3 building materials or $10,000. A refund approved pursuant to
4 this paragraph shall be made within 30 days of formal approval
5 by the department of the application for the refund. This
6 subparagraph applies retroactively to July 1, 2005.
7 6. The department shall adopt rules governing the
8 manner and form of refund applications and may establish
9 guidelines as to the requisites for an affirmative showing of
10 qualification for exemption under this paragraph.
11 7. The department shall deduct an amount equal to 10
12 percent of each refund granted under the provisions of this
13 paragraph from the amount transferred into the Local
14 Government Half-cent Sales Tax Clearing Trust Fund pursuant to
15 s. 212.20 for the county area in which the rehabilitated real
16 property is located and shall transfer that amount to the
17 General Revenue Fund.
18 8. For the purposes of the exemption provided in this
19 paragraph:
20 a. "Building materials" means tangible personal
21 property which becomes a component part of improvements to
22 real property.
23 b. "Real property" has the same meaning as provided in
24 s. 192.001(12).
25 c. "Rehabilitation of real property" means the
26 reconstruction, renovation, restoration, rehabilitation,
27 construction, or expansion of improvements to real property.
28 d. "Substantially completed" has the same meaning as
29 provided in s. 192.042(1).
30 9. This paragraph expires on the date specified in s.
31 290.016 for the expiration of the Florida Enterprise Zone Act.
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1 Section 3. Paragraph (e) of subsection (1) and
2 paragraph (e) of subsection (3) of section 212.096, Florida
3 Statutes, are amended to read:
4 212.096 Sales, rental, storage, use tax; enterprise
5 zone jobs credit against sales tax.--
6 (1) For the purposes of the credit provided in this
7 section:
8 (e) "New job has been created" means that, on the date
9 of application, the total number of full-time jobs is greater
10 than it was 12 months prior to such date has increased in an
11 enterprise zone from the average of the previous 12 months, as
12 demonstrated to the department by a business located in the
13 enterprise zone.
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15 A person shall be deemed to be employed if the person performs
16 duties in connection with the operations of the business on a
17 regular, full-time basis, provided the person is performing
18 such duties for an average of at least 36 hours per week each
19 month. The person must be performing such duties at a business
20 site located in the enterprise zone.
21 (3) In order to claim this credit, an eligible
22 business must file under oath with the governing body or
23 enterprise zone development agency having jurisdiction over
24 the enterprise zone where the business is located, as
25 applicable, a statement which includes:
26 (e) Demonstration to the department that, on the date
27 of application, the total number of full-time jobs defined
28 under paragraph (1)(d) is greater than it was 12 months prior
29 to such date has increased in an enterprise zone from the
30 average of the previous 12 months.
31 Section 4. Paragraph (ff) of subsection (1) of section
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1 220.03, Florida Statutes, is amended to read:
2 220.03 Definitions.--
3 (1) SPECIFIC TERMS.--When used in this code, and when
4 not otherwise distinctly expressed or manifestly incompatible
5 with the intent thereof, the following terms shall have the
6 following meanings:
7 (ff) "New job has been created" means that, on the
8 date of application, the total number of full-time jobs is
9 greater than it was 12 months prior to such date has increased
10 in an enterprise zone from the average of the previous 12
11 months, as demonstrated to the department by a business
12 located in the enterprise zone.
13 Section 5. Paragraph (a) of subsection (1) of section
14 220.13, Florida Statutes, is amended to read:
15 220.13 "Adjusted federal income" defined.--
16 (1) The term "adjusted federal income" means an amount
17 equal to the taxpayer's taxable income as defined in
18 subsection (2), or such taxable income of more than one
19 taxpayer as provided in s. 220.131, for the taxable year,
20 adjusted as follows:
21 (a) Additions.--There shall be added to such taxable
22 income:
23 1. The amount of any tax upon or measured by income,
24 excluding taxes based on gross receipts or revenues, paid or
25 accrued as a liability to the District of Columbia or any
26 state of the United States which is deductible from gross
27 income in the computation of taxable income for the taxable
28 year.
29 2. The amount of interest which is excluded from
30 taxable income under s. 103(a) of the Internal Revenue Code or
31 any other federal law, less the associated expenses disallowed
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1 in the computation of taxable income under s. 265 of the
2 Internal Revenue Code or any other law, excluding 60 percent
3 of any amounts included in alternative minimum taxable income,
4 as defined in s. 55(b)(2) of the Internal Revenue Code, if the
5 taxpayer pays tax under s. 220.11(3).
6 3. In the case of a regulated investment company or
7 real estate investment trust, an amount equal to the excess of
8 the net long-term capital gain for the taxable year over the
9 amount of the capital gain dividends attributable to the
10 taxable year.
11 4. That portion of the wages or salaries paid or
12 incurred for the taxable year which is equal to the amount of
13 the credit allowable for the taxable year under s. 220.181.
14 The provisions of this subparagraph shall expire and be void
15 on the date specified in s. 290.016 for the expiration of the
16 Florida Enterprise Zone Act June 30, 2005.
17 5. That portion of the ad valorem school taxes paid or
18 incurred for the taxable year which is equal to the amount of
19 the credit allowable for the taxable year under s. 220.182.
20 The provisions of this subparagraph shall expire and be void
21 on the date specified in s. 290.016 for the expiration of the
22 Florida Enterprise Zone Act June 30, 2005.
23 6. The amount of emergency excise tax paid or accrued
24 as a liability to this state under chapter 221 which tax is
25 deductible from gross income in the computation of taxable
26 income for the taxable year.
27 7. That portion of assessments to fund a guaranty
28 association incurred for the taxable year which is equal to
29 the amount of the credit allowable for the taxable year.
30 8. In the case of a nonprofit corporation which holds
31 a pari-mutuel permit and which is exempt from federal income
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1 tax as a farmers' cooperative, an amount equal to the excess
2 of the gross income attributable to the pari-mutuel operations
3 over the attributable expenses for the taxable year.
4 9. The amount taken as a credit for the taxable year
5 under s. 220.1895.
6 10. Up to nine percent of the eligible basis of any
7 designated project which is equal to the credit allowable for
8 the taxable year under s. 220.185.
9 11. The amount taken as a credit for the taxable year
10 under s. 220.187.
11 Section 6. Paragraph (a) of subsection (1) and
12 paragraph (f) of subsection (2) of section 220.181, Florida
13 Statutes, are amended to read:
14 220.181 Enterprise zone jobs credit.--
15 (1)(a) There shall be allowed a credit against the tax
16 imposed by this chapter to any business located in an
17 enterprise zone which demonstrates to the department that, on
18 the date of application, the total number of full-time jobs is
19 greater than it was 12 months prior to such date has increased
20 from the average of the previous 12 months. The credit shall
21 be computed as 20 percent of the actual monthly wages paid in
22 this state to each new employee hired when a new job has been
23 created, as defined under s. 220.03(1)(ff), unless the
24 business is located in a rural enterprise zone, pursuant to s.
25 290.004(6), in which case the credit shall be 30 percent of
26 the actual monthly wages paid. If no less than 20 percent of
27 the employees of the business are residents of an enterprise
28 zone, excluding temporary and part-time employees, the credit
29 shall be computed as 30 percent of the actual monthly wages
30 paid in this state to each new employee hired when a new job
31 has been created, unless the business is located in a rural
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1 enterprise zone, in which case the credit shall be 45 percent
2 of the actual monthly wages paid, for a period of up to 24
3 consecutive months. If the new employee hired when a new job
4 is created is a participant in the welfare transition program,
5 the following credit shall be a percent of the actual monthly
6 wages paid: 40 percent for $4 above the hourly federal minimum
7 wage rate; 41 percent for $5 above the hourly federal minimum
8 wage rate; 42 percent for $6 above the hourly federal minimum
9 wage rate; 43 percent for $7 above the hourly federal minimum
10 wage rate; and 44 percent for $8 above the hourly federal
11 minimum wage rate.
12 (2) When filing for an enterprise zone jobs credit, a
13 business must file under oath with the governing body or
14 enterprise zone development agency having jurisdiction over
15 the enterprise zone where the business is located, as
16 applicable, a statement which includes:
17 (f) Demonstration to the department that, on the date
18 of application, the total number of full-time jobs is greater
19 than it was 12 months prior to that date has increased from
20 the average of the previous 12 months.
21 Section 7. Subsection (6) of section 290.0055, Florida
22 Statutes, is amended to read:
23 290.0055 Local nominating procedure.--
24 (6)(a) The office may approve a change in the boundary
25 of any enterprise zone that which was designated pursuant to
26 s. 290.0065. A boundary change must continue to satisfy the
27 requirements of subsections (3), (4), and (5).
28 (b) Upon a recommendation by the enterprise zone
29 development agency, the governing body of the jurisdiction
30 which authorized the application for an enterprise zone may
31 apply to the office for a change in boundary once every 3
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1 years by adopting a resolution that:
2 1. States with particularity the reasons for the
3 change; and
4 2. Describes specifically and, to the extent required
5 by the office, the boundary change to be made.
6 (c) At least 90 days before adopting a resolution
7 seeking a change in the boundary of an enterprise zone, the
8 governing body must notify in writing all property owners and
9 businesses that may be excluded from the enterprise zone by
10 virtue of the proposed boundary change.
11 Section 8. This act shall take effect upon becoming a
12 law.
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15 ================ T I T L E A M E N D M E N T ===============
16 And the title is amended as follows:
17 Delete everything before the enacting clause
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19 and insert:
20 A bill to be entitled
21 An act relating to enterprise zones; amending
22 s. 195.099, F.S.; revising the expiration date
23 of provisions governing the assessment of new,
24 rebuilt, or expanded businesses to coincide
25 with the expiration of the Florida Enterprise
26 Zone Act; amending s. 212.08, F.S.; limiting
27 the tax exemption provided for the
28 rehabilitation of real property to one parcel
29 of real property unless there is a change in
30 ownership, a new lessor, or a new lessee;
31 providing for retroactive application; amending
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1 ss. 212.096 and 220.03, F.S.; redefining the
2 term "new job has been created" for purposes of
3 the enterprise zone jobs credit against the
4 sales tax and the income tax code; amending s.
5 220.13, F.S.; revising the expiration date of a
6 provision requiring that certain wages,
7 salaries, and ad valorem school taxes be added
8 to adjusted federal income; amending s.
9 220.181, F.S.; revising the requirement for
10 demonstrating an increase in the number of jobs
11 for purposes of qualifying for the enterprise
12 zone jobs credit; amending s. 290.0055;
13 requiring that business and property owners be
14 notified of a proposed change to an enterprise
15 zone boundary; providing an effective date.
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