HB 7055

1
A bill to be entitled
2An act relating to enterprise zones; amending s. 195.099,
3F.S.; reenacting a periodic review requirement; providing
4for future expiration; amending s. 220.03, F.S.; revising
5a definition; amending s. 212.08, F.S.; limiting the
6exemption by refund of certain taxes for rehabilitation of
7certain property in an enterprise zone; providing an
8exception; providing for retroactive application; amending
9s. 212.096, F.S.; revising a definition; revising an
10information requirement for claiming an enterprise zone
11jobs tax credit; amending s. 220.13, F.S.; reenacting a
12definitional provision; providing for future expiration of
13provisions relating to enterprise zone credits; amending
14s. 220.181, F.S.; revising certain criteria for granting
15an enterprise zone jobs tax credit; amending s. 290.0055,
16F.S.; providing a property owner notification requirement
17for a governing body adopting an enterprise zone boundary
18change resolution; providing for time-limited continuing
19eligibility for a building materials tax exemption for
20certain businesses; specifying eligibility requirements;
21providing for retroactive application; providing for
22future repeal; providing an effective date.
23
24Be It Enacted by the Legislature of the State of Florida:
25
26     Section 1.  Subsection (1) of section 195.099, Florida
27Statutes, is reenacted and amended to read:
28     195.099  Periodic review.--
29     (1)(a)  The department shall periodically review the
30assessments of new, rebuilt, and expanded business reported
31according to s. 193.077(3), to ensure parity of level of
32assessment with other classifications of property.
33     (b)  The provisions of This subsection shall expire and be
34void on the date specified in s. 290.016 for the expiration of
35the Florida Enterprise Zone Act June 30, 2005.
36     Section 2.  Paragraph (ff) of subsection (1) of section
37220.03, Florida Statutes, is amended to read:
38     220.03  Definitions.--
39     (1)  SPECIFIC TERMS.--When used in this code, and when not
40otherwise distinctly expressed or manifestly incompatible with
41the intent thereof, the following terms shall have the following
42meanings:
43     (ff)  "New job has been created" means that, on the date of
44application, the total number of full-time jobs is greater than
45the total was has increased in an enterprise zone from the
46average of the previous 12 months prior to that date, as
47demonstrated to the department by a business located in the
48enterprise zone.
49     Section 3.  Paragraph (g) of subsection (5) of section
50212.08, Florida Statutes, is amended to read:
51     212.08  Sales, rental, use, consumption, distribution, and
52storage tax; specified exemptions.--The sale at retail, the
53rental, the use, the consumption, the distribution, and the
54storage to be used or consumed in this state of the following
55are hereby specifically exempt from the tax imposed by this
56chapter.
57     (5)  EXEMPTIONS; ACCOUNT OF USE.--
58     (g)  Building materials used in the rehabilitation of real
59property located in an enterprise zone.--
60     1.  Building materials used in the rehabilitation of real
61property located in an enterprise zone shall be exempt from the
62tax imposed by this chapter upon an affirmative showing to the
63satisfaction of the department that the items have been used for
64the rehabilitation of real property located in an enterprise
65zone. Except as provided in subparagraph 2., this exemption
66inures to the owner, lessee, or lessor of the rehabilitated real
67property located in an enterprise zone only through a refund of
68previously paid taxes. To receive a refund pursuant to this
69paragraph, the owner, lessee, or lessor of the rehabilitated
70real property located in an enterprise zone must file an
71application under oath with the governing body or enterprise
72zone development agency having jurisdiction over the enterprise
73zone where the business is located, as applicable, which
74includes:
75     a.  The name and address of the person claiming the refund.
76     b.  An address and assessment roll parcel number of the
77rehabilitated real property in an enterprise zone for which a
78refund of previously paid taxes is being sought.
79     c.  A description of the improvements made to accomplish
80the rehabilitation of the real property.
81     d.  A copy of the building permit issued for the
82rehabilitation of the real property.
83     e.  A sworn statement, under the penalty of perjury, from
84the general contractor licensed in this state with whom the
85applicant contracted to make the improvements necessary to
86accomplish the rehabilitation of the real property, which
87statement lists the building materials used in the
88rehabilitation of the real property, the actual cost of the
89building materials, and the amount of sales tax paid in this
90state on the building materials. In the event that a general
91contractor has not been used, the applicant shall provide this
92information in a sworn statement, under the penalty of perjury.
93Copies of the invoices which evidence the purchase of the
94building materials used in such rehabilitation and the payment
95of sales tax on the building materials shall be attached to the
96sworn statement provided by the general contractor or by the
97applicant. Unless the actual cost of building materials used in
98the rehabilitation of real property and the payment of sales
99taxes due thereon is documented by a general contractor or by
100the applicant in this manner, the cost of such building
101materials shall be an amount equal to 40 percent of the increase
102in assessed value for ad valorem tax purposes.
103     f.  The identifying number assigned pursuant to s. 290.0065
104to the enterprise zone in which the rehabilitated real property
105is located.
106     g.  A certification by the local building code inspector
107that the improvements necessary to accomplish the rehabilitation
108of the real property are substantially completed.
109     h.  Whether the business is a small business as defined by
110s. 288.703(1).
111     i.  If applicable, the name and address of each permanent
112employee of the business, including, for each employee who is a
113resident of an enterprise zone, the identifying number assigned
114pursuant to s. 290.0065 to the enterprise zone in which the
115employee resides.
116     2.  This exemption inures to a city, county, other
117governmental agency, or nonprofit community-based organization
118through a refund of previously paid taxes if the building
119materials used in the rehabilitation of real property located in
120an enterprise zone are paid for from the funds of a community
121development block grant, State Housing Initiatives Partnership
122Program, or similar grant or loan program. To receive a refund
123pursuant to this paragraph, a city, county, other governmental
124agency, or nonprofit community-based organization must file an
125application which includes the same information required to be
126provided in subparagraph 1. by an owner, lessee, or lessor of
127rehabilitated real property. In addition, the application must
128include a sworn statement signed by the chief executive officer
129of the city, county, other governmental agency, or nonprofit
130community-based organization seeking a refund which states that
131the building materials for which a refund is sought were paid
132for from the funds of a community development block grant, State
133Housing Initiatives Partnership Program, or similar grant or
134loan program.
135     3.  Within 10 working days after receipt of an application,
136the governing body or enterprise zone development agency shall
137review the application to determine if it contains all the
138information required pursuant to subparagraph 1. or subparagraph
1392. and meets the criteria set out in this paragraph. The
140governing body or agency shall certify all applications that
141contain the information required pursuant to subparagraph 1. or
142subparagraph 2. and meet the criteria set out in this paragraph
143as eligible to receive a refund. If applicable, the governing
144body or agency shall also certify if 20 percent of the employees
145of the business are residents of an enterprise zone, excluding
146temporary and part-time employees. The certification shall be in
147writing, and a copy of the certification shall be transmitted to
148the executive director of the Department of Revenue. The
149applicant shall be responsible for forwarding a certified
150application to the department within the time specified in
151subparagraph 4.
152     4.  An application for a refund pursuant to this paragraph
153must be submitted to the department within 6 months after the
154rehabilitation of the property is deemed to be substantially
155completed by the local building code inspector or by September 1
156after the rehabilitated property is first subject to assessment.
157     5.  The provisions of s. 212.095 do not apply to any refund
158application made pursuant to this paragraph. Not more than one
159exemption through a refund of previously paid taxes for the
160rehabilitation of real property shall be permitted for any
161single parcel of property unless there is a change in ownership,
162a new lessor, or a new lessee of the real property. No refund
163shall be granted pursuant to this paragraph unless the amount to
164be refunded exceeds $500. No refund granted pursuant to this
165paragraph shall exceed the lesser of 97 percent of the Florida
166sales or use tax paid on the cost of the building materials used
167in the rehabilitation of the real property as determined
168pursuant to sub-subparagraph 1.e. or $5,000, or, if no less than
16920 percent of the employees of the business are residents of an
170enterprise zone, excluding temporary and part-time employees,
171the amount of refund granted pursuant to this paragraph shall
172not exceed the lesser of 97 percent of the sales tax paid on the
173cost of such building materials or $10,000. A refund approved
174pursuant to this paragraph shall be made within 30 days of
175formal approval by the department of the application for the
176refund. This subparagraph shall apply retroactively to July 1,
1772005.
178     6.  The department shall adopt rules governing the manner
179and form of refund applications and may establish guidelines as
180to the requisites for an affirmative showing of qualification
181for exemption under this paragraph.
182     7.  The department shall deduct an amount equal to 10
183percent of each refund granted under the provisions of this
184paragraph from the amount transferred into the Local Government
185Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
186for the county area in which the rehabilitated real property is
187located and shall transfer that amount to the General Revenue
188Fund.
189     8.  For the purposes of the exemption provided in this
190paragraph:
191     a.  "Building materials" means tangible personal property
192which becomes a component part of improvements to real property.
193     b.  "Real property" has the same meaning as provided in s.
194192.001(12).
195     c.  "Rehabilitation of real property" means the
196reconstruction, renovation, restoration, rehabilitation,
197construction, or expansion of improvements to real property.
198     d.  "Substantially completed" has the same meaning as
199provided in s. 192.042(1).
200     9.  This paragraph expires on the date specified in s.
201290.016 for the expiration of the Florida Enterprise Zone Act.
202     Section 4.  Paragraph (e) of subsection (1) and paragraph
203(e) of subsection (3) of section 212.096, Florida Statutes, are
204amended to read:
205     212.096  Sales, rental, storage, use tax; enterprise zone
206jobs credit against sales tax.--
207     (1)  For the purposes of the credit provided in this
208section:
209     (e)  "New job has been created" means that, on the date of
210application, the total number of full-time jobs is greater than
211the total was has increased in an enterprise zone from the
212average of the previous 12 months prior to that date, as
213demonstrated to the department by a business located in the
214enterprise zone.
215
216A person shall be deemed to be employed if the person performs
217duties in connection with the operations of the business on a
218regular, full-time basis, provided the person is performing such
219duties for an average of at least 36 hours per week each month.
220The person must be performing such duties at a business site
221located in the enterprise zone.
222     (3)  In order to claim this credit, an eligible business
223must file under oath with the governing body or enterprise zone
224development agency having jurisdiction over the enterprise zone
225where the business is located, as applicable, a statement which
226includes:
227     (e)  Demonstration to the department that, on the date of
228application, the total number of full-time jobs defined under
229paragraph (1)(d) is greater than the total was has increased in
230an enterprise zone from the average of the previous 12 months
231prior to that date.
232     Section 5.  Paragraph (a) of subsection (1) of section
233220.13, Florida Statutes, is reenacted and amended to read:
234     220.13  "Adjusted federal income" defined.--
235     (1)  The term "adjusted federal income" means an amount
236equal to the taxpayer's taxable income as defined in subsection
237(2), or such taxable income of more than one taxpayer as
238provided in s. 220.131, for the taxable year, adjusted as
239follows:
240     (a)  Additions.--There shall be added to such taxable
241income:
242     1.  The amount of any tax upon or measured by income,
243excluding taxes based on gross receipts or revenues, paid or
244accrued as a liability to the District of Columbia or any state
245of the United States which is deductible from gross income in
246the computation of taxable income for the taxable year.
247     2.  The amount of interest which is excluded from taxable
248income under s. 103(a) of the Internal Revenue Code or any other
249federal law, less the associated expenses disallowed in the
250computation of taxable income under s. 265 of the Internal
251Revenue Code or any other law, excluding 60 percent of any
252amounts included in alternative minimum taxable income, as
253defined in s. 55(b)(2) of the Internal Revenue Code, if the
254taxpayer pays tax under s. 220.11(3).
255     3.  In the case of a regulated investment company or real
256estate investment trust, an amount equal to the excess of the
257net long-term capital gain for the taxable year over the amount
258of the capital gain dividends attributable to the taxable year.
259     4.  That portion of the wages or salaries paid or incurred
260for the taxable year which is equal to the amount of the credit
261allowable for the taxable year under s. 220.181. The provisions
262of This subparagraph shall expire and be void on the date
263specified in s. 290.016 for the expiration of the Florida
264Enterprise Zone Act June 30, 2005.
265     5.  That portion of the ad valorem school taxes paid or
266incurred for the taxable year which is equal to the amount of
267the credit allowable for the taxable year under s. 220.182. The
268provisions of This subparagraph shall expire and be void on the
269date specified in s. 290.016 for the expiration of the Florida
270Enterprise Zone Act June 30, 2005.
271     6.  The amount of emergency excise tax paid or accrued as a
272liability to this state under chapter 221 which tax is
273deductible from gross income in the computation of taxable
274income for the taxable year.
275     7.  That portion of assessments to fund a guaranty
276association incurred for the taxable year which is equal to the
277amount of the credit allowable for the taxable year.
278     8.  In the case of a nonprofit corporation which holds a
279pari-mutuel permit and which is exempt from federal income tax
280as a farmers' cooperative, an amount equal to the excess of the
281gross income attributable to the pari-mutuel operations over the
282attributable expenses for the taxable year.
283     9.  The amount taken as a credit for the taxable year under
284s. 220.1895.
285     10.  Up to nine percent of the eligible basis of any
286designated project which is equal to the credit allowable for
287the taxable year under s. 220.185.
288     11.  The amount taken as a credit for the taxable year
289under s. 220.187.
290     Section 6.  Paragraph (a) of subsection (1) and paragraph
291(f) of subsection (2) of section 220.181, Florida Statutes, are
292amended to read:
293     220.181  Enterprise zone jobs credit.--
294     (1)(a)  There shall be allowed a credit against the tax
295imposed by this chapter to any business located in an enterprise
296zone which demonstrates to the department that, on the date of
297application, the total number of full-time jobs is greater than
298the total was has increased from the average of the previous 12
299months prior to that date. The credit shall be computed as 20
300percent of the actual monthly wages paid in this state to each
301new employee hired when a new job has been created, as defined
302under s. 220.03(1)(ff), unless the business is located in a
303rural enterprise zone, pursuant to s. 290.004(6), in which case
304the credit shall be 30 percent of the actual monthly wages paid.
305If no less than 20 percent of the employees of the business are
306residents of an enterprise zone, excluding temporary and part-
307time employees, the credit shall be computed as 30 percent of
308the actual monthly wages paid in this state to each new employee
309hired when a new job has been created, unless the business is
310located in a rural enterprise zone, in which case the credit
311shall be 45 percent of the actual monthly wages paid, for a
312period of up to 24 consecutive months. If the new employee hired
313when a new job is created is a participant in the welfare
314transition program, the following credit shall be a percent of
315the actual monthly wages paid: 40 percent for $4 above the
316hourly federal minimum wage rate; 41 percent for $5 above the
317hourly federal minimum wage rate; 42 percent for $6 above the
318hourly federal minimum wage rate; 43 percent for $7 above the
319hourly federal minimum wage rate; and 44 percent for $8 above
320the hourly federal minimum wage rate.
321     (2)  When filing for an enterprise zone jobs credit, a
322business must file under oath with the governing body or
323enterprise zone development agency having jurisdiction over the
324enterprise zone where the business is located, as applicable, a
325statement which includes:
326     (f)  Demonstration to the department that, on the date of
327application, the total number of full-time jobs is greater than
328the total was has increased from the average of the previous 12
329months prior to that date.
330     Section 7.  Paragraph (c) is added to subsection (6) of
331section 290.0055, Florida Statutes, to read:
332     290.0055  Local nominating procedure.--
333     (6)
334     (c)  At least 90 days before adopting a resolution seeking
335a change in the boundary of an enterprise zone, the governing
336body shall notify in writing all property owners and businesses
337that may be excluded from the enterprise zone by virtue of the
338proposed boundary change.
339     Section 8.  (1)  Notwithstanding the provisions of s.
340212.08(5)(g), Florida Statutes, as amended by this act, a
341business developing a project involving the rehabilitation of
342real property that has been excluded from an enterprise zone
343because of the redesignation requirements of s. 290.012 or s.
344290.0065, Florida Statutes, shall remain eligible to apply for
345the building materials tax exemption under s. 212.08(5)(g),
346Florida Statutes, for that project through December 31, 2007, if
347the following requirements are met:
348     (a)  The project must have been located in an enterprise
349zone on or before December 31, 2005.
350     (b)  The project must have a duration extending beyond
351December 31, 2005.
352     (c)  The project must have been excluded from the
353enterprise zone due to the portion of the enterprise zone in
354which the project is located not meeting the pervasive poverty
355rate requirements of s. 290.0058(2)(a) or (b), Florida Statutes.
356     (d)  The difference between the pervasive poverty rate
357requirements of s. 290.0058(2)(a), Florida Statutes, and the
358actual poverty rate in the area in which the project is located
359must be 5 percentage points or less.
360     (e)  The business must apply for a certificate of
361eligibility for the project with the enterprise zone development
362agency by November 1, 2006, and demonstrate that the project
363meets the requirements of this section.
364     (f)  The enterprise zone development agency must provide a
365copy of the certificate of eligibility to the Department of
366Revenue.
367     (2)  The provisions of this section are remedial in nature
368and shall apply retroactively to December 31, 2005. This section
369is repealed December 31, 2007.
370     Section 9.  This act shall take effect upon becoming a law.


CODING: Words stricken are deletions; words underlined are additions.