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 definitions; 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 meeting notice requirement for a
17governing body adopting an enterprise zone boundary change
18resolution; 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.  Paragraphs (a) and (e) of subsection (1) and
203paragraph (e) of subsection (3) of section 212.096, Florida
204Statutes, are amended 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     (a)  "Eligible business" means any sole proprietorship,
210firm, partnership, corporation, bank, savings association,
211estate, trust, business trust, receiver, syndicate, or other
212group or combination, or successor business, located in an
213enterprise zone. The business must demonstrate to the department
214that, on the date of application, the total number of full-time
215jobs defined under paragraph (d) is greater than the total was
216has increased from the average of the previous 12 months prior
217to that date. An eligible business does not include any business
218which has claimed the credit permitted under s. 220.181 for any
219new business employee first beginning employment with the
220business after July 1, 1995.
221     (e)  "New job has been created" means that, on the date of
222application, the total number of full-time jobs is greater than
223the total was has increased in an enterprise zone from the
224average of the previous 12 months prior to that date, as
225demonstrated to the department by a business located in the
226enterprise zone.
227
228A person shall be deemed to be employed if the person performs
229duties in connection with the operations of the business on a
230regular, full-time basis, provided the person is performing such
231duties for an average of at least 36 hours per week each month.
232The person must be performing such duties at a business site
233located in the enterprise zone.
234     (3)  In order to claim this credit, an eligible business
235must file under oath with the governing body or enterprise zone
236development agency having jurisdiction over the enterprise zone
237where the business is located, as applicable, a statement which
238includes:
239     (e)  Demonstration to the department that, on the date of
240application, the total number of full-time jobs defined under
241paragraph (1)(d) is greater than the total was has increased in
242an enterprise zone from the average of the previous 12 months
243prior to that date.
244     Section 5.  Paragraph (a) of subsection (1) of section
245220.13, Florida Statutes, is reenacted and amended to read:
246     220.13  "Adjusted federal income" defined.--
247     (1)  The term "adjusted federal income" means an amount
248equal to the taxpayer's taxable income as defined in subsection
249(2), or such taxable income of more than one taxpayer as
250provided in s. 220.131, for the taxable year, adjusted as
251follows:
252     (a)  Additions.--There shall be added to such taxable
253income:
254     1.  The amount of any tax upon or measured by income,
255excluding taxes based on gross receipts or revenues, paid or
256accrued as a liability to the District of Columbia or any state
257of the United States which is deductible from gross income in
258the computation of taxable income for the taxable year.
259     2.  The amount of interest which is excluded from taxable
260income under s. 103(a) of the Internal Revenue Code or any other
261federal law, less the associated expenses disallowed in the
262computation of taxable income under s. 265 of the Internal
263Revenue Code or any other law, excluding 60 percent of any
264amounts included in alternative minimum taxable income, as
265defined in s. 55(b)(2) of the Internal Revenue Code, if the
266taxpayer pays tax under s. 220.11(3).
267     3.  In the case of a regulated investment company or real
268estate investment trust, an amount equal to the excess of the
269net long-term capital gain for the taxable year over the amount
270of the capital gain dividends attributable to the taxable year.
271     4.  That portion of the wages or salaries paid or incurred
272for the taxable year which is equal to the amount of the credit
273allowable for the taxable year under s. 220.181. The provisions
274of This subparagraph shall expire and be void on the date
275specified in s. 290.016 for the expiration of the Florida
276Enterprise Zone Act June 30, 2005.
277     5.  That portion of the ad valorem school taxes paid or
278incurred for the taxable year which is equal to the amount of
279the credit allowable for the taxable year under s. 220.182. The
280provisions of This subparagraph shall expire and be void on the
281date specified in s. 290.016 for the expiration of the Florida
282Enterprise Zone Act June 30, 2005.
283     6.  The amount of emergency excise tax paid or accrued as a
284liability to this state under chapter 221 which tax is
285deductible from gross income in the computation of taxable
286income for the taxable year.
287     7.  That portion of assessments to fund a guaranty
288association incurred for the taxable year which is equal to the
289amount of the credit allowable for the taxable year.
290     8.  In the case of a nonprofit corporation which holds a
291pari-mutuel permit and which is exempt from federal income tax
292as a farmers' cooperative, an amount equal to the excess of the
293gross income attributable to the pari-mutuel operations over the
294attributable expenses for the taxable year.
295     9.  The amount taken as a credit for the taxable year under
296s. 220.1895.
297     10.  Up to nine percent of the eligible basis of any
298designated project which is equal to the credit allowable for
299the taxable year under s. 220.185.
300     11.  The amount taken as a credit for the taxable year
301under s. 220.187.
302     Section 6.  Paragraph (a) of subsection (1) and paragraph
303(f) of subsection (2) of section 220.181, Florida Statutes, are
304amended to read:
305     220.181  Enterprise zone jobs credit.--
306     (1)(a)  There shall be allowed a credit against the tax
307imposed by this chapter to any business located in an enterprise
308zone which demonstrates to the department that, on the date of
309application, the total number of full-time jobs is greater than
310the total was has increased from the average of the previous 12
311months prior to that date. The credit shall be computed as 20
312percent of the actual monthly wages paid in this state to each
313new employee hired when a new job has been created, as defined
314under s. 220.03(1)(ff), unless the business is located in a
315rural enterprise zone, pursuant to s. 290.004(6), in which case
316the credit shall be 30 percent of the actual monthly wages paid.
317If no less than 20 percent of the employees of the business are
318residents of an enterprise zone, excluding temporary and part-
319time employees, the credit shall be computed as 30 percent of
320the actual monthly wages paid in this state to each new employee
321hired when a new job has been created, unless the business is
322located in a rural enterprise zone, in which case the credit
323shall be 45 percent of the actual monthly wages paid, for a
324period of up to 24 consecutive months. If the new employee hired
325when a new job is created is a participant in the welfare
326transition program, the following credit shall be a percent of
327the actual monthly wages paid: 40 percent for $4 above the
328hourly federal minimum wage rate; 41 percent for $5 above the
329hourly federal minimum wage rate; 42 percent for $6 above the
330hourly federal minimum wage rate; 43 percent for $7 above the
331hourly federal minimum wage rate; and 44 percent for $8 above
332the hourly federal minimum wage rate.
333     (2)  When filing for an enterprise zone jobs credit, a
334business must file under oath with the governing body or
335enterprise zone development agency having jurisdiction over the
336enterprise zone where the business is located, as applicable, a
337statement which includes:
338     (f)  Demonstration to the department that, on the date of
339application, the total number of full-time jobs is greater than
340the total was has increased from the average of the previous 12
341months prior to that date.
342     Section 7.  Paragraph (c) is added to subsection (6) of
343section 290.0055, Florida Statutes, to read:
344     290.0055  Local nominating procedure.--
345     (6)
346     (c)  At least 90 days before adopting a resolution seeking
347a change in the boundary of an enterprise zone, the governing
348body shall include in a notice of the meeting at which the
349resolution will be considered an explanation that a change in
350the boundary of an enterprise zone will be considered and that
351the change may result in loss of enterprise zone eligibility for
352the area affected by the boundary change.
353     Section 8.  (1)  Notwithstanding the provisions of s.
354212.08(5)(g), Florida Statutes, as amended by this act, a
355business developing a project involving the rehabilitation of
356real property that has been excluded from an enterprise zone
357because of the redesignation requirements of s. 290.012 or s.
358290.0065, Florida Statutes, shall remain eligible to apply for
359the building materials tax exemption under s. 212.08(5)(g),
360Florida Statutes, for that project through December 31, 2007, if
361the following requirements are met:
362     (a)  The project must have been located in an enterprise
363zone on or before December 31, 2005.
364     (b)  The project must have a duration extending beyond
365December 31, 2005.
366     (c)  The project must have been excluded from the
367enterprise zone due to the portion of the enterprise zone in
368which the project is located not meeting the pervasive poverty
369rate requirements of s. 290.0058(2)(a) or (b), Florida Statutes.
370     (d)  The difference between the pervasive poverty rate
371requirements of s. 290.0058(2)(a), Florida Statutes, and the
372actual poverty rate in the area in which the project is located
373must be 5 percentage points or less.
374     (e)  The business must apply for a certificate of
375eligibility for the project with the enterprise zone development
376agency by November 1, 2006, and demonstrate that the project
377meets the requirements of this section.
378     (f)  The enterprise zone development agency must provide a
379copy of the certificate of eligibility to the Department of
380Revenue.
381     (2)  The provisions of this section are remedial in nature
382and shall apply retroactively to December 31, 2005. This section
383is repealed December 31, 2007.
384     Section 9.  This act shall take effect upon becoming a law.


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