1 | A bill to be entitled |
2 | An act relating to enterprise zones; amending s. 290.0065, |
3 | F.S.; authorizing certain counties to apply to the Office |
4 | of Tourism, Trade, and Economic Development to amend the |
5 | boundaries of an existing enterprise zone for certain |
6 | purposes; providing criteria for areas suitable for such |
7 | amendment; requiring the Office of Tourism, Trade, and |
8 | Economic Development to approve the amendment by a |
9 | specified date; excluding such amendments from certain |
10 | restrictions; amending s. 212.02, F.S.; providing a |
11 | definition; providing for future repeal; amending s. |
12 | 212.08, F.S.; exempting certain property purchased for use |
13 | or consumption by businesses in a super enterprise zone |
14 | and retail sales by certified businesses in a super |
15 | enterprise zone; providing an exception; specifying time |
16 | periods for application of the exemptions for certain |
17 | businesses; providing for future repeal; amending s. |
18 | 290.0056, F.S.; providing additional responsibilities of |
19 | an enterprise zone development agency relating to super |
20 | enterprise zones; requiring an economic impact report; |
21 | providing for future repeal; amending s. 290.0056, F.S.; |
22 | revising powers and responsibilities of the enterprise |
23 | zone development agency; amending s. 290.0057, F.S.; |
24 | applying requirements for an enterprise zone development |
25 | plan to super enterprise zones; providing for future |
26 | deletion of application; creating s. 290.00681, F.S.; |
27 | requiring the Office of Tourism, Trade, and Economic |
28 | Development to designate a specified area in Miami-Dade |
29 | County as a pilot project super enterprise zone for a |
30 | certain time period; providing qualification criteria; |
31 | providing application requirements; providing for future |
32 | repeal and revocation of the designation; creating s. |
33 | 290.00682, F.S.; providing requirements for qualification |
34 | as a certified business for sales tax exemption purposes; |
35 | authorizing a local enterprise zone development agency to |
36 | certify businesses; requiring the agency to provide lists |
37 | of certified businesses; providing for disqualifying |
38 | certified businesses under certain circumstances; |
39 | providing for future repeal and revocation of |
40 | certifications; amending s. 290.007, F.S.; specifying |
41 | incentives for revitalization of super enterprise zones; |
42 | providing for future deletion of such incentives; |
43 | requiring interim and final reviews of super enterprise |
44 | zones by the Office of Program Policy Analysis and |
45 | Government Accountability; providing review of criteria; |
46 | requiring reports to the Legislature; providing effective |
47 | dates. |
48 |
|
49 | Be It Enacted by the Legislature of the State of Florida: |
50 |
|
51 | Section 1. Subsection (8) is added to section 290.0065, |
52 | Florida Statutes, to read: |
53 | 290.0065 State designation of enterprise zones.-- |
54 | (8) Before December 31, 2007, any county as defined in s. |
55 | 125.011(1) may apply to the Office of Tourism, Trade, and |
56 | Economic Development to amend the boundaries of an existing |
57 | enterprise zone for the purpose of replacing an area of not more |
58 | than 204 acres which is not suitable for development. The area |
59 | suitable for development must be contiguous to the existing |
60 | enterprise zone and must be part of a community redevelopment |
61 | area that has been approved and targeted for revitalization by |
62 | the county. The area suitable for redevelopment shall be a |
63 | master planned community that is being constructed in accordance |
64 | with an approved conceptual master plan for the development of |
65 | the area. The Office of Tourism, Trade, and Economic Development |
66 | shall approve the amendment effective January 1, 2008, if the |
67 | enterprise zone remains consistent with the criteria and |
68 | conditions imposed by s. 290.0055 upon the establishment of |
69 | enterprise zones, including the requirement that the area suffer |
70 | from pervasive poverty, unemployment, and general distress. |
71 | Notwithstanding the preceding sentence, such amendment to the |
72 | boundaries of the enterprise zone shall not constitute the one |
73 | change to enterprise zone boundaries permitted every 3 years |
74 | pursuant to s. 290.0055(6). |
75 | Section 2. Subsection (34) is added to section 212.02, |
76 | Florida Statutes, to read: |
77 | 212.02 Definitions.--The following terms and phrases when |
78 | used in this chapter have the meanings ascribed to them in this |
79 | section, except where the context clearly indicates a different |
80 | meaning: |
81 | (34) "Certified business" means a business located in a |
82 | super enterprise zone that is certified under s. 290.00682. This |
83 | subsection is repealed June, 30, 2020. |
84 | Section 3. Subsection (19) is added to section 212.08, |
85 | Florida Statutes, to read: |
86 | 212.08 Sales, rental, use, consumption, distribution, and |
87 | storage tax; specified exemptions.--The sale at retail, the |
88 | rental, the use, the consumption, the distribution, and the |
89 | storage to be used or consumed in this state of the following |
90 | are hereby specifically exempt from the tax imposed by this |
91 | chapter. |
92 | (19) EXEMPTIONS; SUPER ENTERPRISE ZONES.-- |
93 | (a) The tax imposed by this chapter does not apply to: |
94 | 1. Tangible personal property purchased by certified |
95 | businesses for the exclusive use or consumption of such |
96 | businesses within a super enterprise zone; or |
97 | 2. Retail sales of tangible personal property made by a |
98 | certified business from a place of business owned or leased and |
99 | operated by the business for the purpose of making retail sales |
100 | and located in a designated super enterprise zone. The exemption |
101 | provided by this subparagraph does not apply to the retail sale |
102 | of any item with a price greater than $1,000. To qualify for the |
103 | exemption under this subparagraph, the purchaser must take |
104 | possession of the qualified item within the super enterprise |
105 | zone or the qualified item must be shipped from inside the super |
106 | enterprise zone; however, the item may be shipped to any |
107 | location. For the purposes of this section, all qualified sales |
108 | made by a certified business located in a super enterprise zone |
109 | shall be considered to have occurred within the super enterprise |
110 | zone, regardless of where the transfer of title or possession |
111 | takes place. |
112 | (b) Notwithstanding paragraph (a), a new business |
113 | established in a super enterprise zone and certified on or after |
114 | July 1, 2008, pursuant to s. 290.00682 is eligible for the |
115 | exemptions provided under this subsection for a period not to |
116 | exceed 10 years immediately following such certification. For an |
117 | existing business located in a super enterprise zone and |
118 | certified on or after July 1, 2008, the exemptions provided |
119 | under this subsection shall be available for a period not to |
120 | exceed 5 years, beginning in the year in which the business |
121 | receives its initial certification and continuing for up to 5 |
122 | years immediately following such certification. |
123 | (c) This subsection is repealed June 30, 2020. |
124 | Section 4. Paragraph (g) of subsection (8) of section |
125 | 290.0056, Florida Statutes, is amended, paragraph (i) is added |
126 | to that subsection, paragraph (f) of subsection (11) of that |
127 | section is redesignated as paragraph (g), and a new paragraph |
128 | (f) is added to subsection (11), to read: |
129 | 290.0056 Enterprise zone development agency.-- |
130 | (8) The enterprise zone development agency shall have the |
131 | following powers and responsibilities: |
132 | (g) To work with organizations affiliated with Florida |
133 | Agricultural and Mechanical University, the University of |
134 | Florida, and the University of South Florida, a group of |
135 | universities unofficially named the "University Partnership for |
136 | Community Development," the Metro-Miami Action Plan, or similar |
137 | organizations that have combined their resources to provide |
138 | development consulting on a nonprofit basis. |
139 | (i)1. To recommend and submit an application to the office |
140 | for the designation of a super enterprise zone. |
141 | 2. To coordinate with the local governmental entity for |
142 | the exemptions from the sales and use tax provided under s. |
143 | 212.08(19). |
144 |
|
145 | This paragraph is repealed June 30, 2020. |
146 | (11) Prior to December 1 of each year, the agency shall |
147 | submit to the Office of Tourism, Trade, and Economic Development |
148 | a complete and detailed written report setting forth: |
149 | (f) The economic impact of a super enterprise zone, if |
150 | applicable, including: |
151 | 1. A list of certified businesses and whether the business |
152 | is new or where the business relocated from. |
153 | 2. The number of jobs created. |
154 | 3. The percentage of employees employed by certified |
155 | businesses who reside in the super enterprise zone or in an |
156 | enterprise zone within the same county. |
157 | 4. The extent of capital investment by certified |
158 | businesses within the zone. |
159 | 5. The success of the super enterprise zone as measured by |
160 | the strategic plan and methods identified in s. 290.0057(1)(i). |
161 |
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162 | This paragraph is repealed June 30, 2020. |
163 | Section 5. Subsection (1) of section 290.0057, Florida |
164 | Statutes, is amended to read: |
165 | 290.0057 Enterprise zone development plan.-- |
166 | (1) Any application for designation as a new enterprise |
167 | zone or super enterprise zone must be accompanied by a strategic |
168 | plan adopted by the governing body of the municipality or |
169 | county, or the governing bodies of the county and one or more |
170 | municipalities together. At a minimum, the plan must: |
171 | (a) Briefly describe the community's goals for |
172 | revitalizing the area. |
173 | (b) Describe the ways in which the community's approaches |
174 | to economic development, social and human services, |
175 | transportation, housing, community development, public safety, |
176 | and educational and environmental concerns will be addressed in |
177 | a coordinated fashion, and explain how these linkages support |
178 | the community's goals. |
179 | (c) Identify and describe key community goals and the |
180 | barriers that restrict the community from achieving these goals, |
181 | including a description of poverty and general distress, |
182 | barriers to economic opportunity and development, and barriers |
183 | to human development. |
184 | (d) Describe the process by which the affected community |
185 | is a full partner in the process of developing and implementing |
186 | the plan and the extent to which local institutions and |
187 | organizations have contributed to the planning process. |
188 | (e) Commit the governing body or bodies to enact and |
189 | maintain local fiscal and regulatory incentives, if approval for |
190 | the area is received under s. 290.0065. These incentives may |
191 | include the municipal public service tax exemption provided by |
192 | s. 166.231, the economic development ad valorem tax exemption |
193 | provided by s. 196.1995, the occupational license tax exemption |
194 | provided by s. 205.054, local impact fee abatement or reduction, |
195 | or low-interest or interest-free loans or grants to businesses |
196 | to encourage the revitalization of the nominated area. |
197 | (f) Identify the amount of local and private resources |
198 | that will be available in the nominated area and the |
199 | private/public partnerships to be used, which may include |
200 | participation by, and cooperation with, universities, community |
201 | colleges, small business development centers, black business |
202 | investment corporations, certified development corporations, and |
203 | other private and public entities. |
204 | (g) Indicate how state enterprise zone tax incentives and |
205 | state, local, and federal resources will be utilized within the |
206 | nominated area. |
207 | (h) Identify the funding requested under any state or |
208 | federal program in support of the proposed economic, human, |
209 | community, and physical development and related activities. |
210 | (i) Identify baselines, methods, and benchmarks for |
211 | measuring the success of carrying out the strategic plan. |
212 | Section 6. Effective July 1, 2020, subsection (1) of |
213 | section 290.0057, Florida Statutes, as amended by this act, is |
214 | amended to read: |
215 | 290.0057 Enterprise zone development plan.-- |
216 | (1) Any application for designation as a new enterprise |
217 | zone or super enterprise zone must be accompanied by a strategic |
218 | plan adopted by the governing body of the municipality or |
219 | county, or the governing bodies of the county and one or more |
220 | municipalities together. At a minimum, the plan must: |
221 | (a) Briefly describe the community's goals for |
222 | revitalizing the area. |
223 | (b) Describe the ways in which the community's approaches |
224 | to economic development, social and human services, |
225 | transportation, housing, community development, public safety, |
226 | and educational and environmental concerns will be addressed in |
227 | a coordinated fashion, and explain how these linkages support |
228 | the community's goals. |
229 | (c) Identify and describe key community goals and the |
230 | barriers that restrict the community from achieving these goals, |
231 | including a description of poverty and general distress, |
232 | barriers to economic opportunity and development, and barriers |
233 | to human development. |
234 | (d) Describe the process by which the affected community |
235 | is a full partner in the process of developing and implementing |
236 | the plan and the extent to which local institutions and |
237 | organizations have contributed to the planning process. |
238 | (e) Commit the governing body or bodies to enact and |
239 | maintain local fiscal and regulatory incentives, if approval for |
240 | the area is received under s. 290.0065. These incentives may |
241 | include the municipal public service tax exemption provided by |
242 | s. 166.231, the economic development ad valorem tax exemption |
243 | provided by s. 196.1995, the occupational license tax exemption |
244 | provided by s. 205.054, local impact fee abatement or reduction, |
245 | or low-interest or interest-free loans or grants to businesses |
246 | to encourage the revitalization of the nominated area. |
247 | (f) Identify the amount of local and private resources |
248 | that will be available in the nominated area and the |
249 | private/public partnerships to be used, which may include |
250 | participation by, and cooperation with, universities, community |
251 | colleges, small business development centers, black business |
252 | investment corporations, certified development corporations, and |
253 | other private and public entities. |
254 | (g) Indicate how state enterprise zone tax incentives and |
255 | state, local, and federal resources will be utilized within the |
256 | nominated area. |
257 | (h) Identify the funding requested under any state or |
258 | federal program in support of the proposed economic, human, |
259 | community, and physical development and related activities. |
260 | (i) Identify baselines, methods, and benchmarks for |
261 | measuring the success of carrying out the strategic plan. |
262 | Section 7. Sections 290.00681 and 290.00682, Florida |
263 | Statutes, are created to read: |
264 | 290.00681 Super enterprise zone pilot project; |
265 | designation; future repeal and revocation.-- |
266 | (1) The office shall designate the area in Miami-Dade |
267 | County bordered by Northwest 23rd Street on the North, Northwest |
268 | 5th Street on the South, Northeast 1st Avenue on the East, and |
269 | Northwest 8th Avenue on the West as a pilot project for a super |
270 | enterprise zone for a 10-year period. To qualify as a super |
271 | enterprise zone an area must: |
272 | (a) Be located in an enterprise zone and be no larger than |
273 | 3 contiguous square miles. |
274 | (b) Have an average unemployment rate four times greater |
275 | than the state average. |
276 | (c) Have a minimum of 40 percent of residents living below |
277 | the federal poverty level. |
278 | (d) Have general distress of business and residential |
279 | property such that the local governing body by resolution has |
280 | determined that the buildings are substandard, unsafe, |
281 | unsanitary, dilapidated, or obsolete, or any combination of such |
282 | conditions, and are detrimental to the safety, health, and |
283 | welfare of the community. |
284 | (e) Demonstrate evidence of significant job loss or |
285 | dislocation in the area. |
286 |
|
287 | In determining whether an area meets the unemployment, poverty, |
288 | and general distress criteria of this subsection, the office |
289 | shall use data from the most current decennial census and from |
290 | information published by the Bureau of the Census and the Bureau |
291 | of Labor Statistics. The data shall be comparable in point or |
292 | period of time and methodology employed. |
293 | (2) Any application for designation as a super enterprise |
294 | zone must: |
295 | (a) Briefly describe the community's goals for |
296 | revitalizing the area and include a development plan. |
297 | (b) Describe the ways in which the community's approach to |
298 | economic development, social and human services, transportation, |
299 | housing, community development, public safety, and educational |
300 | and environmental concerns will be addressed in a coordinated |
301 | fashion and explain how these linkages support the community's |
302 | goals. |
303 | (c) Identify and describe key community goals and the |
304 | barriers that restrict the community from achieving these goals. |
305 | (d) Identify the amount of local and private support and |
306 | resources that will be available. |
307 | (e) Identify baselines, methods, and benchmarks for |
308 | measuring success. |
309 | (f) Include written approval from any associated county |
310 | office and mayor's office. |
311 | (3) This section is repealed June 30, 2020, and any |
312 | designation made pursuant to this section shall be revoked on |
313 | that date. |
314 | 290.00682 Super enterprise zones; business |
315 | certification.-- |
316 | (1) A certified business is eligible for the tax |
317 | exemptions provided in s. 212.08(19). To qualify as a certified |
318 | business, receive an exemption certificate, and continue to |
319 | receive the tax exemptions provided in s. 212.08(19), a business |
320 | must: |
321 | (a) File an application for certification with the local |
322 | enterprise zone development agency. The application shall be |
323 | filed no later than September 1 preceding the calendar year for |
324 | which the business is seeking an exemption. |
325 | (b) Operate and be located within a designated super |
326 | enterprise zone. |
327 | (c) Create new employment within the super enterprise zone |
328 | while not causing unemployment elsewhere in the state. |
329 | (d) Certify to the best of the business' knowledge that |
330 | the business has no delinquent federal or state tax obligations. |
331 | (e) Demonstrate that no less than 20 percent of its |
332 | employees are residents of the designated super enterprise zone |
333 | or an enterprise zone located within the same county. The |
334 | employment requirement may be waived by the local enterprise |
335 | zone development agency for good cause. |
336 | (2) A local enterprise zone development agency may certify |
337 | a business as eligible for the exemptions under s. 212.08(19) |
338 | annually if the business meets the requirements in subsection |
339 | (1). Each local enterprise zone development agency shall |
340 | annually provide the local governmental entity, the office, and |
341 | the Department of Revenue with a list of new and existing |
342 | certified businesses. The Department of Revenue shall annually |
343 | issue a tax exemption certificate to each business holding an |
344 | exemption certificate issued by the local enterprise zone |
345 | development agency. The certificate shall be good for one |
346 | calendar year. |
347 | (3) A local enterprise zone development agency may |
348 | disqualify a certified business at any time if the business |
349 | fails to meet the requirements of subsection (1). A business |
350 | that makes a fraudulent claim under this section or for tax |
351 | exemptions provided in s. 212.08(19) shall be liable for the |
352 | payment of the tax due, together with the penalties set forth in |
353 | s. 212.085, and as otherwise provided by law. |
354 | (4) This section is repealed June 30, 2020, and any |
355 | certification made pursuant to this section shall be revoked on |
356 | that date. |
357 | Section 8. Section 290.007, Florida Statutes, is amended |
358 | to read: |
359 | 290.007 State incentives available in enterprise zones and |
360 | super enterprise zones.-- |
361 | (1) The following incentives are provided by the state to |
362 | encourage the revitalization of enterprise zones: |
363 | (a)(1) The enterprise zone jobs credit provided in s. |
364 | 220.181. |
365 | (b)(2) The enterprise zone property tax credit provided in |
366 | s. 220.182. |
367 | (c)(3) The community contribution tax credits provided in |
368 | ss. 212.08, 220.183, and 624.5105. |
369 | (d)(4) The sales tax exemption for building materials used |
370 | in the rehabilitation of real property in enterprise zones |
371 | provided in s. 212.08(5)(g). |
372 | (e)(5) The sales tax exemption for business equipment used |
373 | in an enterprise zone provided in s. 212.08(5)(h). |
374 | (f)(6) The sales tax exemption for electrical energy used |
375 | in an enterprise zone provided in s. 212.08(15). |
376 | (g)(7) The enterprise zone jobs credit against the sales |
377 | tax provided in s. 212.096. |
378 | (h)(8) Notwithstanding any law to the contrary, the Public |
379 | Service Commission may allow public utilities and |
380 | telecommunications companies to grant discounts of up to 50 |
381 | percent on tariffed rates for services to small businesses |
382 | located in an enterprise zone designated pursuant to s. |
383 | 290.0065. Such discounts may be granted for a period not to |
384 | exceed 5 years. For purposes of this paragraph subsection, the |
385 | term "public utility" has the same meaning as in s. 366.02(1) |
386 | and the term "telecommunications company" has the same meaning |
387 | as in s. 364.02(14). |
388 | (2) The following incentives are provided by the state to |
389 | encourage the revitalization of super enterprise zones: |
390 | (a) The sales tax exemption for certified businesses |
391 | provided in s. 212.08(19)(a)1. |
392 | (b) The sales tax exemption for retail sales by certified |
393 | businesses provided in s. 212.08(19)(a)2. |
394 | Section 9. Effective July 1, 2020, section 290.007, |
395 | Florida Statutes, as amended by this act, is amended to read: |
396 | 290.007 State incentives available in enterprise zones and |
397 | super enterprise zones.-- |
398 | (1) The following incentives are provided by the state to |
399 | encourage the revitalization of enterprise zones: |
400 | (1)(a) The enterprise zone jobs credit provided in s. |
401 | 220.181. |
402 | (2)(b) The enterprise zone property tax credit provided in |
403 | s. 220.182. |
404 | (3)(c) The community contribution tax credits provided in |
405 | ss. 212.08, 220.183, and 624.5105. |
406 | (4)(d) The sales tax exemption for building materials used |
407 | in the rehabilitation of real property in enterprise zones |
408 | provided in s. 212.08(5)(g). |
409 | (5)(e) The sales tax exemption for business equipment used |
410 | in an enterprise zone provided in s. 212.08(5)(h). |
411 | (6)(f) The sales tax exemption for electrical energy used |
412 | in an enterprise zone provided in s. 212.08(15). |
413 | (7)(g) The enterprise zone jobs credit against the sales |
414 | tax provided in s. 212.096. |
415 | (8)(h) Notwithstanding any law to the contrary, the Public |
416 | Service Commission may allow public utilities and |
417 | telecommunications companies to grant discounts of up to 50 |
418 | percent on tariffed rates for services to small businesses |
419 | located in an enterprise zone designated pursuant to s. |
420 | 290.0065. Such discounts may be granted for a period not to |
421 | exceed 5 years. For purposes of this subsection paragraph, the |
422 | term "public utility" has the same meaning as in s. 366.02(1) |
423 | and the term "telecommunications company" has the same meaning |
424 | as in s. 364.02(14). |
425 | (2) The following incentives are provided by the state to |
426 | encourage the revitalization of super enterprise zones: |
427 | (a) The sales tax exemption for certified businesses |
428 | provided in s. 212.08(19)(a)1. |
429 | (b) The partial sales tax exemption for retail sales by |
430 | certified businesses provided in s. 212.08(19)(a)2. |
431 | Section 10. Prior to the 2014 Regular Session of the |
432 | Legislature, the Office of Program Policy Analysis and |
433 | Government Accountability shall conduct an interim review and |
434 | evaluation of the effectiveness and viability of the super |
435 | enterprise zone designated under s. 290.00681, Florida Statutes. |
436 | The office shall specifically evaluate whether relief from the |
437 | specified taxes caused or induced new investment and development |
438 | in the super enterprise zone; increased the number of jobs |
439 | created or retained in the super enterprise zone; caused or |
440 | induced the renovation, rehabilitation, restoration, |
441 | improvement, or new construction of businesses or housing within |
442 | the super enterprise zone; or contributed to the economic |
443 | viability and profitability of business and commerce located |
444 | within the super enterprise zone. The office shall submit a |
445 | report of its findings and recommendations to the Speaker of the |
446 | House of Representatives and the President of the Senate no |
447 | later than December 1, 2013. In 2019, the office shall conduct a |
448 | final review in accordance with this section and shall make a |
449 | final report to the President of the Senate and Speaker of the |
450 | House of Representatives no later than December 1, 2019. |
451 | Section 11. Except as otherwise expressly provided in this |
452 | act, this act shall take effect July 1, 2007. |