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; creating s. 290.0072, F.S.; authorizing the
19City of Winter Haven to apply to the Office of Tourism,
20Trade, and Economic Development for designation of an
21enterprise zone; providing requirements for the area of
22the enterprise zone; requiring the office to establish the
23effective date of the enterprise zone; providing an
24effective date.
25
26Be It Enacted by the Legislature of the State of Florida:
27
28     Section 1.  Subsection (1) of section 195.099, Florida
29Statutes, is reenacted and amended to read:
30     195.099  Periodic review.--
31     (1)(a)  The department shall periodically review the
32assessments of new, rebuilt, and expanded business reported
33according to s. 193.077(3), to ensure parity of level of
34assessment with other classifications of property.
35     (b)  The provisions of This subsection shall expire and be
36void on the date specified in s. 290.016 for the expiration of
37the Florida Enterprise Zone Act June 30, 2005.
38     Section 2.  Paragraph (ff) of subsection (1) of section
39220.03, Florida Statutes, is amended to read:
40     220.03  Definitions.--
41     (1)  SPECIFIC TERMS.--When used in this code, and when not
42otherwise distinctly expressed or manifestly incompatible with
43the intent thereof, the following terms shall have the following
44meanings:
45     (ff)  "New job has been created" means that, on the date of
46application, the total number of full-time jobs is greater than
47the total was has increased in an enterprise zone from the
48average of the previous 12 months prior to that date, as
49demonstrated to the department by a business located in the
50enterprise zone.
51     Section 3.  Paragraph (g) of subsection (5) of section
52212.08, Florida Statutes, is amended to read:
53     212.08  Sales, rental, use, consumption, distribution, and
54storage tax; specified exemptions.--The sale at retail, the
55rental, the use, the consumption, the distribution, and the
56storage to be used or consumed in this state of the following
57are hereby specifically exempt from the tax imposed by this
58chapter.
59     (5)  EXEMPTIONS; ACCOUNT OF USE.--
60     (g)  Building materials used in the rehabilitation of real
61property located in an enterprise zone.--
62     1.  Building materials used in the rehabilitation of real
63property located in an enterprise zone shall be exempt from the
64tax imposed by this chapter upon an affirmative showing to the
65satisfaction of the department that the items have been used for
66the rehabilitation of real property located in an enterprise
67zone. Except as provided in subparagraph 2., this exemption
68inures to the owner, lessee, or lessor of the rehabilitated real
69property located in an enterprise zone only through a refund of
70previously paid taxes. To receive a refund pursuant to this
71paragraph, the owner, lessee, or lessor of the rehabilitated
72real property located in an enterprise zone must file an
73application under oath with the governing body or enterprise
74zone development agency having jurisdiction over the enterprise
75zone where the business is located, as applicable, which
76includes:
77     a.  The name and address of the person claiming the refund.
78     b.  An address and assessment roll parcel number of the
79rehabilitated real property in an enterprise zone for which a
80refund of previously paid taxes is being sought.
81     c.  A description of the improvements made to accomplish
82the rehabilitation of the real property.
83     d.  A copy of the building permit issued for the
84rehabilitation of the real property.
85     e.  A sworn statement, under the penalty of perjury, from
86the general contractor licensed in this state with whom the
87applicant contracted to make the improvements necessary to
88accomplish the rehabilitation of the real property, which
89statement lists the building materials used in the
90rehabilitation of the real property, the actual cost of the
91building materials, and the amount of sales tax paid in this
92state on the building materials. In the event that a general
93contractor has not been used, the applicant shall provide this
94information in a sworn statement, under the penalty of perjury.
95Copies of the invoices which evidence the purchase of the
96building materials used in such rehabilitation and the payment
97of sales tax on the building materials shall be attached to the
98sworn statement provided by the general contractor or by the
99applicant. Unless the actual cost of building materials used in
100the rehabilitation of real property and the payment of sales
101taxes due thereon is documented by a general contractor or by
102the applicant in this manner, the cost of such building
103materials shall be an amount equal to 40 percent of the increase
104in assessed value for ad valorem tax purposes.
105     f.  The identifying number assigned pursuant to s. 290.0065
106to the enterprise zone in which the rehabilitated real property
107is located.
108     g.  A certification by the local building code inspector
109that the improvements necessary to accomplish the rehabilitation
110of the real property are substantially completed.
111     h.  Whether the business is a small business as defined by
112s. 288.703(1).
113     i.  If applicable, the name and address of each permanent
114employee of the business, including, for each employee who is a
115resident of an enterprise zone, the identifying number assigned
116pursuant to s. 290.0065 to the enterprise zone in which the
117employee resides.
118     2.  This exemption inures to a city, county, other
119governmental agency, or nonprofit community-based organization
120through a refund of previously paid taxes if the building
121materials used in the rehabilitation of real property located in
122an enterprise zone are paid for from the funds of a community
123development block grant, State Housing Initiatives Partnership
124Program, or similar grant or loan program. To receive a refund
125pursuant to this paragraph, a city, county, other governmental
126agency, or nonprofit community-based organization must file an
127application which includes the same information required to be
128provided in subparagraph 1. by an owner, lessee, or lessor of
129rehabilitated real property. In addition, the application must
130include a sworn statement signed by the chief executive officer
131of the city, county, other governmental agency, or nonprofit
132community-based organization seeking a refund which states that
133the building materials for which a refund is sought were paid
134for from the funds of a community development block grant, State
135Housing Initiatives Partnership Program, or similar grant or
136loan program.
137     3.  Within 10 working days after receipt of an application,
138the governing body or enterprise zone development agency shall
139review the application to determine if it contains all the
140information required pursuant to subparagraph 1. or subparagraph
1412. and meets the criteria set out in this paragraph. The
142governing body or agency shall certify all applications that
143contain the information required pursuant to subparagraph 1. or
144subparagraph 2. and meet the criteria set out in this paragraph
145as eligible to receive a refund. If applicable, the governing
146body or agency shall also certify if 20 percent of the employees
147of the business are residents of an enterprise zone, excluding
148temporary and part-time employees. The certification shall be in
149writing, and a copy of the certification shall be transmitted to
150the executive director of the Department of Revenue. The
151applicant shall be responsible for forwarding a certified
152application to the department within the time specified in
153subparagraph 4.
154     4.  An application for a refund pursuant to this paragraph
155must be submitted to the department within 6 months after the
156rehabilitation of the property is deemed to be substantially
157completed by the local building code inspector or by September 1
158after the rehabilitated property is first subject to assessment.
159     5.  The provisions of s. 212.095 do not apply to any refund
160application made pursuant to this paragraph. Not more than one
161exemption through a refund of previously paid taxes for the
162rehabilitation of real property shall be permitted for any
163single parcel of property unless there is a change in ownership,
164a new lessor, or a new lessee of the real property. No refund
165shall be granted pursuant to this paragraph unless the amount to
166be refunded exceeds $500. No refund granted pursuant to this
167paragraph shall exceed the lesser of 97 percent of the Florida
168sales or use tax paid on the cost of the building materials used
169in the rehabilitation of the real property as determined
170pursuant to sub-subparagraph 1.e. or $5,000, or, if no less than
17120 percent of the employees of the business are residents of an
172enterprise zone, excluding temporary and part-time employees,
173the amount of refund granted pursuant to this paragraph shall
174not exceed the lesser of 97 percent of the sales tax paid on the
175cost of such building materials or $10,000. A refund approved
176pursuant to this paragraph shall be made within 30 days of
177formal approval by the department of the application for the
178refund. This subparagraph shall apply retroactively to July 1,
1792005.
180     6.  The department shall adopt rules governing the manner
181and form of refund applications and may establish guidelines as
182to the requisites for an affirmative showing of qualification
183for exemption under this paragraph.
184     7.  The department shall deduct an amount equal to 10
185percent of each refund granted under the provisions of this
186paragraph from the amount transferred into the Local Government
187Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
188for the county area in which the rehabilitated real property is
189located and shall transfer that amount to the General Revenue
190Fund.
191     8.  For the purposes of the exemption provided in this
192paragraph:
193     a.  "Building materials" means tangible personal property
194which becomes a component part of improvements to real property.
195     b.  "Real property" has the same meaning as provided in s.
196192.001(12).
197     c.  "Rehabilitation of real property" means the
198reconstruction, renovation, restoration, rehabilitation,
199construction, or expansion of improvements to real property.
200     d.  "Substantially completed" has the same meaning as
201provided in s. 192.042(1).
202     9.  This paragraph expires on the date specified in s.
203290.016 for the expiration of the Florida Enterprise Zone Act.
204     Section 4.  Paragraphs (a) and (e) of subsection (1) and
205paragraph (e) of subsection (3) of section 212.096, Florida
206Statutes, are amended to read:
207     212.096  Sales, rental, storage, use tax; enterprise zone
208jobs credit against sales tax.--
209     (1)  For the purposes of the credit provided in this
210section:
211     (a)  "Eligible business" means any sole proprietorship,
212firm, partnership, corporation, bank, savings association,
213estate, trust, business trust, receiver, syndicate, or other
214group or combination, or successor business, located in an
215enterprise zone. The business must demonstrate to the department
216that, on the date of application, the total number of full-time
217jobs defined under paragraph (d) is greater than the total was
218has increased from the average of the previous 12 months prior
219to that date. An eligible business does not include any business
220which has claimed the credit permitted under s. 220.181 for any
221new business employee first beginning employment with the
222business after July 1, 1995.
223     (e)  "New job has been created" means that, on the date of
224application, the total number of full-time jobs is greater than
225the total was has increased in an enterprise zone from the
226average of the previous 12 months prior to that date, as
227demonstrated to the department by a business located in the
228enterprise zone.
229
230A person shall be deemed to be employed if the person performs
231duties in connection with the operations of the business on a
232regular, full-time basis, provided the person is performing such
233duties for an average of at least 36 hours per week each month.
234The person must be performing such duties at a business site
235located in the enterprise zone.
236     (3)  In order to claim this credit, an eligible business
237must file under oath with the governing body or enterprise zone
238development agency having jurisdiction over the enterprise zone
239where the business is located, as applicable, a statement which
240includes:
241     (e)  Demonstration to the department that, on the date of
242application, the total number of full-time jobs defined under
243paragraph (1)(d) is greater than the total was has increased in
244an enterprise zone from the average of the previous 12 months
245prior to that date.
246     Section 5.  Paragraph (a) of subsection (1) of section
247220.13, Florida Statutes, is reenacted and amended to read:
248     220.13  "Adjusted federal income" defined.--
249     (1)  The term "adjusted federal income" means an amount
250equal to the taxpayer's taxable income as defined in subsection
251(2), or such taxable income of more than one taxpayer as
252provided in s. 220.131, for the taxable year, adjusted as
253follows:
254     (a)  Additions.--There shall be added to such taxable
255income:
256     1.  The amount of any tax upon or measured by income,
257excluding taxes based on gross receipts or revenues, paid or
258accrued as a liability to the District of Columbia or any state
259of the United States which is deductible from gross income in
260the computation of taxable income for the taxable year.
261     2.  The amount of interest which is excluded from taxable
262income under s. 103(a) of the Internal Revenue Code or any other
263federal law, less the associated expenses disallowed in the
264computation of taxable income under s. 265 of the Internal
265Revenue Code or any other law, excluding 60 percent of any
266amounts included in alternative minimum taxable income, as
267defined in s. 55(b)(2) of the Internal Revenue Code, if the
268taxpayer pays tax under s. 220.11(3).
269     3.  In the case of a regulated investment company or real
270estate investment trust, an amount equal to the excess of the
271net long-term capital gain for the taxable year over the amount
272of the capital gain dividends attributable to the taxable year.
273     4.  That portion of the wages or salaries paid or incurred
274for the taxable year which is equal to the amount of the credit
275allowable for the taxable year under s. 220.181. The provisions
276of This subparagraph shall expire and be void on the date
277specified in s. 290.016 for the expiration of the Florida
278Enterprise Zone Act June 30, 2005.
279     5.  That portion of the ad valorem school taxes paid or
280incurred for the taxable year which is equal to the amount of
281the credit allowable for the taxable year under s. 220.182. The
282provisions of This subparagraph shall expire and be void on the
283date specified in s. 290.016 for the expiration of the Florida
284Enterprise Zone Act June 30, 2005.
285     6.  The amount of emergency excise tax paid or accrued as a
286liability to this state under chapter 221 which tax is
287deductible from gross income in the computation of taxable
288income for the taxable year.
289     7.  That portion of assessments to fund a guaranty
290association incurred for the taxable year which is equal to the
291amount of the credit allowable for the taxable year.
292     8.  In the case of a nonprofit corporation which holds a
293pari-mutuel permit and which is exempt from federal income tax
294as a farmers' cooperative, an amount equal to the excess of the
295gross income attributable to the pari-mutuel operations over the
296attributable expenses for the taxable year.
297     9.  The amount taken as a credit for the taxable year under
298s. 220.1895.
299     10.  Up to nine percent of the eligible basis of any
300designated project which is equal to the credit allowable for
301the taxable year under s. 220.185.
302     11.  The amount taken as a credit for the taxable year
303under s. 220.187.
304     Section 6.  Paragraph (a) of subsection (1) and paragraph
305(f) of subsection (2) of section 220.181, Florida Statutes, are
306amended to read:
307     220.181  Enterprise zone jobs credit.--
308     (1)(a)  There shall be allowed a credit against the tax
309imposed by this chapter to any business located in an enterprise
310zone which demonstrates to the department that, on the date of
311application, the total number of full-time jobs is greater than
312the total was has increased from the average of the previous 12
313months prior to that date. The credit shall be computed as 20
314percent of the actual monthly wages paid in this state to each
315new employee hired when a new job has been created, as defined
316under s. 220.03(1)(ff), unless the business is located in a
317rural enterprise zone, pursuant to s. 290.004(6), in which case
318the credit shall be 30 percent of the actual monthly wages paid.
319If no less than 20 percent of the employees of the business are
320residents of an enterprise zone, excluding temporary and part-
321time employees, the credit shall be computed as 30 percent of
322the actual monthly wages paid in this state to each new employee
323hired when a new job has been created, unless the business is
324located in a rural enterprise zone, in which case the credit
325shall be 45 percent of the actual monthly wages paid, for a
326period of up to 24 consecutive months. If the new employee hired
327when a new job is created is a participant in the welfare
328transition program, the following credit shall be a percent of
329the actual monthly wages paid: 40 percent for $4 above the
330hourly federal minimum wage rate; 41 percent for $5 above the
331hourly federal minimum wage rate; 42 percent for $6 above the
332hourly federal minimum wage rate; 43 percent for $7 above the
333hourly federal minimum wage rate; and 44 percent for $8 above
334the hourly federal minimum wage rate.
335     (2)  When filing for an enterprise zone jobs credit, a
336business must file under oath with the governing body or
337enterprise zone development agency having jurisdiction over the
338enterprise zone where the business is located, as applicable, a
339statement which includes:
340     (f)  Demonstration to the department that, on the date of
341application, the total number of full-time jobs is greater than
342the total was has increased from the average of the previous 12
343months prior to that date.
344     Section 7.  Paragraph (c) is added to subsection (6) of
345section 290.0055, Florida Statutes, to read:
346     290.0055  Local nominating procedure.--
347     (6)
348     (c)  At least 90 days before adopting a resolution seeking
349a change in the boundary of an enterprise zone, the governing
350body shall include in a notice of the meeting at which the
351resolution will be considered an explanation that a change in
352the boundary of an enterprise zone will be considered and that
353the change may result in loss of enterprise zone eligibility for
354the area affected by the boundary change.
355     Section 8.  Section 290.0072, Florida Statutes, is created
356to read:
357     290.0072  Enterprise zone designation for the City of
358Winter Haven.--The City of Winter Haven may apply to the Office
359of Tourism, Trade, and Economic Development for designation of
360one enterprise zone for an area within the City of Winter Haven,
361which zone shall encompass on area up to 5 square miles.
362Notwithstanding s. 290.0065 limiting the total number of
363enterprise zones designated and the number of enterprise zones
364within a population category, the Office of Tourism, Trade, and
365Economic Development may designate one enterprise zone under
366this section. The Office of Tourism, Trade, and Economic
367Development shall establish the initial effective date of the
368enterprise zone designated pursuant to this section.  
369     Section 9.  This act shall take effect upon becoming a law.


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