Florida Senate - 2009 SB 1928 By Senator Altman 24-01231-09 20091928__ 1 A bill to be entitled 2 An act relating to tax credits for certain 3 restaurants; creating s. 509.0495, F.S.; providing 4 definitions; authorizing the Office of Tourism, Trade, 5 and Economic Development to issue tax credits for 6 certain restaurants that employ tipped employees; 7 providing application procedures; providing for annual 8 adjustment of the credit amounts; limiting the amount 9 of such credits; providing funding; providing 10 procedures for applying the credits; providing for 11 publicizing the program; providing penalties for 12 persons who file fraudulent claims; providing an 13 effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Section 509.0495, Florida Statutes, is created 18 to read: 19 509.0495 Tax credit for restaurants employing tipped 20 employees.— 21 (1) As used in this section, the term: 22 (a) “Department” means the Department of Revenue. 23 (b) “Eligible business” means a public food service 24 establishment, licensed pursuant to s. 509.241, which employees 25 one or more tipped employees. 26 (c) “Office” means the Office of Tourism, Trade, and 27 Economic Development. 28 (d) “Tipped employee” means a person who is employed in a 29 position in which he or she customarily and regularly receives 30 more than $30 per month in tips. 31 (2)(a) An eligible business, upon an affirmative showing to 32 the satisfaction of the office that the requirements of this 33 section have been met, shall be granted a tax credit that the 34 business may apply to its liability for sales, storage, or use 35 taxes as provided in s. 212.05, to its liability for corporate 36 income tax as provided in s. 220.11, or partially to both. An 37 eligible business shall apply to the office for the tax credit 38 using an application adopted by the office for this purpose. 39 Applications shall be filed with the office in February of each 40 year and must reflect the hours worked by tipped employees 41 during the prior calendar year. 42 (b) The tax credit is $2.06 for each hour worked by a 43 tipped employee during the 2009 calendar year for applications 44 filed in February 2010. The tax credit for applications filed in 45 subsequent years shall be $2.06 for each hour worked by a tipped 46 employee during the calendar year prior to the filing of the 47 application, adjusted by the same rate of inflation used by the 48 Agency for Workforce Innovation to adjust the state minimum wage 49 effective January 1 of the year the application is filed, as 50 provided in s. 448.110. 51 (c) The tax credits shall be funded from surplus funds of 52 the Hotel and Restaurant Trust Fund established in s. 509.072, 53 as certified by the director of the Division of Hotels and 54 Restaurants on January 1 of each year. 55 (d) An eligible business may not receive a tax credit of 56 more than $200,000 annually. 57 (e) If the total amount of tax credits applied for in any 58 year exceeds available funds, all applications requesting 59 $10,000 or less shall be approved, and applications shall be 60 approved on a pro-rata basis if funds are insufficient to fully 61 fund those applications. Any remaining funds shall be used to 62 fund applications requesting more than $10,000 on a pro-rata 63 basis, if necessary. 64 (3)(a) Applications for the tax credit require the prior 65 approval of the office. The applicant must affirmatively 66 demonstrate to the satisfaction of the office that it meets the 67 requirements for the credit. 68 (b) An applicant must file under oath with the office the 69 name and place of residence of each employee for whom the credit 70 is claimed and the number of hours worked by each tipped 71 employee during the calendar year. 72 (c) The decision of the office shall be in writing and must 73 state the amount of any tax credit approved for the eligible 74 business. A copy of the decision shall be transmitted to the 75 department, which shall apply the credit to the tax liability of 76 the eligible business. 77 (d)1. An eligible business that is notified that a tax 78 credit has been approved and that wishes to apply all or part of 79 the tax credit against its liability for sales, storage, or use 80 taxes must apply to the department on a form approved by the 81 department for a refund and must include a copy of the 82 notification. An eligible business may submit only one 83 application for refund within any 12-month period. 84 2. An eligible business that wishes to apply all or part of 85 the tax credit against its liability for corporate income tax 86 must claim the credit on its annual return. A taxpayer that 87 files a Florida consolidated return as a member of an affiliated 88 group pursuant to s. 220.131(1) may be allowed the credit on a 89 consolidated return basis. 90 (e) The office shall, in consultation with the Department 91 of Business and Professional Regulation, publicize the 92 availability of the tax credit to eligible businesses. 93 (f) Any person who fraudulently claims a credit is liable 94 for repayment of the credit, plus a mandatory penalty of 100 95 percent of the credit, and commits a misdemeanor of the second 96 degree, punishable as provided in s. 775.082 or s. 775.083. 97 Section 2. This act shall take effect July 1, 2009.