| 1 | A bill to be entitled |
| 2 | An act relating to the discretionary surtax on documents; |
| 3 | amending s. 3, ch. 83-220, Laws of Florida, as amended; |
| 4 | extending a future repeal date of provisions authorizing |
| 5 | counties to levy a discretionary surtax on documents; |
| 6 | amending s. 125.0167, F.S.; limiting the percentage of |
| 7 | surtax revenues that may be used for administrative costs; |
| 8 | specifying a minimum amount of surtax revenues to be used |
| 9 | for housing for certain low-income and moderate-income |
| 10 | families; requiring an affirmative vote of a local |
| 11 | government governing body to rehabilitate certain |
| 12 | governmentally owned housing; authorizing certain counties |
| 13 | to create by ordinance a housing choice assistance voucher |
| 14 | program for the purpose of down payment assistance; |
| 15 | providing definitions; providing eligibility requirements |
| 16 | for such vouchers; authorizing purchasing employers to |
| 17 | file for allocations for such vouchers; limiting |
| 18 | allocations; requiring distribution of allocations to |
| 19 | employees in the form of such vouchers; prohibiting use of |
| 20 | allocations for such vouchers if not awarded within a |
| 21 | certain period after certain documentary stamps taxes are |
| 22 | collected; requiring the Office of Program Policy Analysis |
| 23 | and Government Accountability to conduct a continuing |
| 24 | review of the discretionary surtax program operated by |
| 25 | counties; requiring reports to the Legislature; amending |
| 26 | s. 201.02, F.S.; revising criteria determining liability |
| 27 | for payment of the tax; providing that the consideration |
| 28 | for certain transfers of interests in real property does |
| 29 | not include any change in value of certain ownership |
| 30 | interests in such property; specifying a holding period |
| 31 | limitation on such exclusion for certain transfers; |
| 32 | providing criteria for the treatment and taxation of such |
| 33 | consideration; providing a limitation on the cumulative |
| 34 | amount of such consideration; providing for proration of |
| 35 | such consideration and a basis for such proration; |
| 36 | limiting the taxability of certain portions of prorated |
| 37 | consideration; providing a requirement for payment of the |
| 38 | tax on such transferred ownership interests; amending s. |
| 39 | 201.031, F.S.; expanding requirements for counties levying |
| 40 | the discretionary surtax to include housing plan, |
| 41 | affordable housing element, and annual reporting |
| 42 | requirements; authorizing the Department of Revenue to |
| 43 | adopt rules; providing for application; providing an |
| 44 | effective date. |
| 45 |
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| 46 | Be It Enacted by the Legislature of the State of Florida: |
| 47 |
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| 48 | Section 1. Section 3 of chapter 83-220, Laws of Florida, |
| 49 | as amended by section 1 of chapter 84-270, Laws of Florida, and |
| 50 | section 1 of chapter 89-252, Laws of Florida, is amended to |
| 51 | read: |
| 52 | Section 3. Sections 1 and 2 of chapter 83-220, Laws of |
| 53 | Florida, as amended by this act, are repealed effective October |
| 54 | 1, 2031 2011. |
| 55 | Section 2. Section 125.0167, Florida Statutes, is amended |
| 56 | to read: |
| 57 | 125.0167 Discretionary surtax on documents; adoption; |
| 58 | application of revenue.-- |
| 59 | (1) Pursuant to the provisions of s. 201.031, the |
| 60 | governing authority in each county, as defined by s. 125.011(1), |
| 61 | is authorized to levy a discretionary surtax on documents for |
| 62 | the purpose of establishing and financing a Housing Assistance |
| 63 | Loan Trust Fund to assist in the financing of construction, |
| 64 | rehabilitation, or purchase of housing for low-income and |
| 65 | moderate-income families. No less than 50 percent of the funds |
| 66 | used in each county to provide such housing assistance shall be |
| 67 | for the benefit of low-income families. For the purpose of this |
| 68 | section, "low-income family" means a family whose income does |
| 69 | not exceed 80 percent of the median income for the area, and |
| 70 | "moderate-income family" means a family whose income is in |
| 71 | excess of 80 percent but less than 140 percent of the median |
| 72 | income for the area. For purposes of this section, the term |
| 73 | "housing" is not limited to single-family, detached dwellings. |
| 74 | The rate of the surtax shall not exceed the rate of 45 cents for |
| 75 | each $100 or fractional part thereof of the consideration |
| 76 | therefor. Such surtax shall apply only to those documents |
| 77 | taxable under s. 201.02, except that there shall be no surtax on |
| 78 | any document pursuant to which the interest granted, assigned, |
| 79 | transferred, or conveyed involves only a single-family |
| 80 | residence. Such single-family residence may be a condominium |
| 81 | unit, a unit held through stock ownership or membership |
| 82 | representing a proprietary interest in a corporation owning a |
| 83 | fee or a leasehold initially in excess of 98 years, or a |
| 84 | detached dwelling. |
| 85 | (2) The levy of the discretionary surtax and the creation |
| 86 | of a Housing Assistance Loan Trust Fund shall be by ordinance |
| 87 | which shall set forth the policies and procedures of the |
| 88 | assistance program. The ordinance shall be proposed at a regular |
| 89 | meeting of the governing authority at least 2 weeks prior to |
| 90 | formal adoption. Formal adoption shall not be effective unless |
| 91 | approved on final vote by a majority of the total membership of |
| 92 | the governing authority. The ordinance shall not take effect |
| 93 | until 90 days after formal adoption. |
| 94 | (3) The county shall deposit revenues from the |
| 95 | discretionary surtax in the Housing Assistance Loan Trust Fund |
| 96 | of the county, except that a portion of such revenues may be |
| 97 | deposited into the Home Investment Trust Fund of the county as |
| 98 | defined by and created pursuant to the requirements of federal |
| 99 | law. The county shall use the revenues only to help finance the |
| 100 | construction, rehabilitation, or purchase of housing for low- |
| 101 | income families and moderate-income families, to pay necessary |
| 102 | costs of collection and enforcement of the surtax, and to fund |
| 103 | any local matching contributions required pursuant to federal |
| 104 | law. For purposes of this section, authorized uses of the |
| 105 | revenues include, but are not limited to, providing funds for |
| 106 | first and second mortgages and acquiring property for the |
| 107 | purpose of forming housing cooperatives. Special consideration |
| 108 | shall be given toward using the revenues in the neighborhood |
| 109 | economic development programs of community development |
| 110 | corporations. No more than 50 percent of the revenues collected |
| 111 | each year pursuant to this section may be used to help finance |
| 112 | new construction as provided herein. The proceeds of the surtax |
| 113 | shall not be used for rent subsidies or grants. |
| 114 | (4) No more than 10 percent of surtax revenues collected |
| 115 | under this section by the Department of Revenue and remitted to |
| 116 | the county in any fiscal year may be used for administrative |
| 117 | costs. |
| 118 | (5)(a) Notwithstanding the provisions of subsection (3), |
| 119 | of the discretionary surtax revenues collected by the Department |
| 120 | of Revenue remaining after any deduction for administrative |
| 121 | costs as provided in subsection (4), no less than 35 percent |
| 122 | shall be used to provide homeownership assistance for low-income |
| 123 | and moderate-income families, and no less than 35 percent shall |
| 124 | be used for construction, rehabilitation, and purchase of rental |
| 125 | housing units. The remaining amount may be allocated to provide |
| 126 | for homeownership assistance or rental housing units, at the |
| 127 | discretion of the county. Any funds allocated for homeownership |
| 128 | assistance or rental housing units that are not committed at the |
| 129 | end of the fiscal year shall be reallocated in subsequent years |
| 130 | consistent with the provisions of this subsection such that no |
| 131 | less than 35 percent shall be reallocated to provide |
| 132 | homeownership assistance for low-income and moderate-income |
| 133 | families and no less than 35 percent shall be reallocated for |
| 134 | construction, rehabilitation, and purchase of rental housing |
| 135 | units. The remaining amount of uncommitted funds may be |
| 136 | reallocated at the discretion of the county within any of the |
| 137 | categories established in this subsection. |
| 138 | (b) For purposes of this subsection, the term |
| 139 | "homeownership assistance" means assisting low-income and |
| 140 | moderate-income families in purchasing a home as their primary |
| 141 | residence, including, but not limited to, reducing the cost of |
| 142 | the home with below-market construction financing, the amount of |
| 143 | down payment and closing costs paid by the borrower, or the |
| 144 | mortgage payment to an affordable amount for the purchaser or |
| 145 | using any other financial assistance measure set forth in s. |
| 146 | 420.5088. |
| 147 | (6) Rehabilitation of housing owned by a recipient |
| 148 | government may be authorized only after a determination approved |
| 149 | by a majority of the governing body that no other sources of |
| 150 | funds are available. |
| 151 | (7)(a) The governing body of each county as defined in s. |
| 152 | 125.011(1) may, by county ordinance and pursuant to procedures |
| 153 | and requirements provided by such ordinance, create a housing |
| 154 | choice assistance voucher program. |
| 155 | (b) For purposes of this subsection, the term: |
| 156 | 1. "Housing choice assistance voucher" means the document |
| 157 | used to access assistance paid by the county from the |
| 158 | discretionary surtax balance in the Housing Assistance Trust |
| 159 | Fund to a prospective purchaser of a single-family residence |
| 160 | which must be the purchaser's homestead. |
| 161 | 2. "Purchasing employer" means a business or business |
| 162 | entity that has acquired real property within the county and |
| 163 | paid the surtax due as a result of the acquisition of that |
| 164 | property pursuant to this section. |
| 165 | (c) Housing choice assistance vouchers shall be used for |
| 166 | down payment assistance for the purchase of a single-family |
| 167 | residence by low-income or moderate-income persons within the |
| 168 | county and within a 5-mile radius of the purchasing employer who |
| 169 | are: |
| 170 | 1. Actively employed by the purchasing employer or by a |
| 171 | business entity directly affiliated with the purchasing |
| 172 | employer. |
| 173 | 2. Prequalified for a mortgage loan by a certified lending |
| 174 | institution. |
| 175 | (d) Upon payment of the discretionary surtax pursuant to |
| 176 | this section, the purchasing employer may file for an allocation |
| 177 | for housing choice assistance vouchers from the county in an |
| 178 | amount not to exceed 50 percent of the amount of the |
| 179 | discretionary surtax paid. The purchasing employer shall |
| 180 | distribute the allocation to employees in the form of housing |
| 181 | choice assistance vouchers pursuant to rules and procedures |
| 182 | established for the program. |
| 183 | (e) Any housing choice assistance voucher allocation not |
| 184 | distributed to employees and redeemed by an employee within 1 |
| 185 | year after the date the discretionary surtax is paid may not be |
| 186 | used for housing choice assistance vouchers under this |
| 187 | subsection. |
| 188 | (f) Any housing assistance paid pursuant to the housing |
| 189 | choice assistance voucher program shall be included in the |
| 190 | calculation determining the percentage of discretionary surtax |
| 191 | funds used for homeownership purposes during the year in which |
| 192 | the surtax funds for such purposes are expended. |
| 193 | (8) By June 30, 2012, and every 5 years thereafter, the |
| 194 | Office of Program Policy Analysis and Government Accountability |
| 195 | shall review the discretionary surtax program operated by |
| 196 | counties under this section and shall provide a report to the |
| 197 | President of the Senate and the Speaker of the House of |
| 198 | Representatives. |
| 199 | Section 3. Subsection (1) of section 201.02, Florida |
| 200 | Statutes, is amended, and subsections (11) and (12) are added to |
| 201 | that section, to read: |
| 202 | 201.02 Tax on deeds and other instruments relating to real |
| 203 | property or interests in real property.-- |
| 204 | (1) On deeds, instruments, documents, or writings whereby |
| 205 | any lands, tenements, or other real property, or any interest |
| 206 | therein, shall be granted, assigned, transferred, or otherwise |
| 207 | conveyed to, or vested in, the purchaser or any other person by |
| 208 | his or her direction, on each $100 of the consideration therefor |
| 209 | the tax shall be 70 cents. When the full amount of the |
| 210 | consideration for the execution, assignment, transfer, or |
| 211 | conveyance is not shown in the face of such deed, instrument, |
| 212 | document, or writing, the tax shall be at the rate of 70 cents |
| 213 | for each $100 or fractional part thereof of the consideration |
| 214 | therefor. For purposes of this section, consideration includes, |
| 215 | but is not limited to, the money paid or agreed to be paid; the |
| 216 | discharge of an obligation; and the amount of any mortgage, |
| 217 | purchase money mortgage lien, or other encumbrance, whether or |
| 218 | not the underlying indebtedness is assumed; and any |
| 219 | consideration given in exchange for a direct or indirect |
| 220 | ownership interest in a grantee entity within the holding period |
| 221 | as set forth in subsection (12). If the consideration paid or |
| 222 | given in exchange for real property or any interest therein |
| 223 | includes property other than money, it is presumed that the |
| 224 | consideration is equal to the fair market value of the real |
| 225 | property or interest therein. |
| 226 | (11) If a deed, instrument, document, or writing grants, |
| 227 | assigns, transfers, or conveys any interest in real property |
| 228 | from a grantor that is a corporation, partnership, limited |
| 229 | liability company, or other business entity to one or more |
| 230 | grantees that wholly or partially own such grantor entity, |
| 231 | whether directly or indirectly through another intermediate |
| 232 | entity or entities, to the extent such interest in real property |
| 233 | received by such a grantee is in the same proportion as the |
| 234 | grantee's direct or indirect ownership interest in the grantor |
| 235 | entity, the consideration for such transfer for purposes of this |
| 236 | section shall not be deemed to include any change in the value |
| 237 | of the grantee's ownership interest in the grantor entity or in |
| 238 | any intermediate entity resulting from such transfer. |
| 239 | (12)(a) If a deed, instrument, document, or writing |
| 240 | grants, assigns, transfers, or conveys any interest in real |
| 241 | property from one or more grantors to a grantee that is a |
| 242 | corporation, partnership, limited liability company, or other |
| 243 | business entity that is wholly or partially owned by the grantor |
| 244 | or grantors, whether directly or indirectly through another |
| 245 | intermediate entity or entities, to the extent the interest in |
| 246 | real property transferred by such a grantor is in the same |
| 247 | proportion as the grantor's ownership interest in the grantee |
| 248 | entity, the consideration for such transfer for purposes of this |
| 249 | section shall not be deemed to include any change in the value |
| 250 | of the grantor's ownership interest in the grantee entity or in |
| 251 | any intermediate entity resulting from such transfer to the |
| 252 | extent the grantor continues to own directly or indirectly the |
| 253 | same percentage of the ownership interests in the grantee entity |
| 254 | for a holding period ending on the earlier of: |
| 255 | 1. The date that is 1 year after the transfer of such |
| 256 | interest in real property to the grantee entity; or |
| 257 | 2. The date that the grantee entity no longer owns any |
| 258 | interest in such real property, whether directly or indirectly |
| 259 | through another intermediate entity or entities. |
| 260 | (b) Upon the transfer for consideration of all or any |
| 261 | portion of the direct or indirect ownership interest of such a |
| 262 | grantor in the grantee entity to a purchaser other than the |
| 263 | grantor within the holding period set forth in paragraph (a), |
| 264 | whether by sale, assignment, merger, exchange, consolidation, |
| 265 | conversion, or otherwise, the consideration given for the |
| 266 | transferred ownership interest shall be deemed to have been |
| 267 | exchanged for the previous transfer of the interest in real |
| 268 | property to the grantee entity and the tax imposed by subsection |
| 269 | (1) shall apply to the previous transfer of the interest in real |
| 270 | property to the grantee entity based on such consideration. The |
| 271 | direct or indirect ownership interests in a grantee entity |
| 272 | described in this subsection shall not include any shares or |
| 273 | similar equity interests dealt in or traded on securities |
| 274 | exchanges or in securities markets. |
| 275 | (c) The cumulative amount of all such consideration under |
| 276 | this subsection shall not in any event exceed the fair market |
| 277 | value of the transferred real property interest at the time of |
| 278 | the transfer of the ownership interest in the grantee entity, |
| 279 | less any consideration on which tax was paid. |
| 280 | (d) Upon the transfer of such direct or indirect ownership |
| 281 | interest in a grantee entity that owns assets other than such |
| 282 | real property interest, the consideration described in this |
| 283 | subsection shall be prorated based on the fair market value of |
| 284 | the real property interest and the fair market value of the |
| 285 | other assets at the time of such transfer of the ownership |
| 286 | interest in the grantee entity, and only the portion of such |
| 287 | consideration prorated to the real property interest shall be |
| 288 | subject to the tax under subsection (1). |
| 289 | (e) The tax payable as set forth in this subsection shall |
| 290 | be paid prior to the 20th day of the month following the |
| 291 | transfer of the ownership interest. |
| 292 | Section 4. Section 201.031, Florida Statutes, is amended |
| 293 | to read: |
| 294 | 201.031 Discretionary surtax; administration and |
| 295 | collection; Housing Assistance Loan Trust Fund; reporting |
| 296 | requirements.-- |
| 297 | (1) Each county, as defined by s. 125.011(1), may levy, |
| 298 | subject to the provisions of s. 125.0167, a discretionary surtax |
| 299 | on documents taxable under the provisions of s. 201.02, except |
| 300 | that there shall be no surtax on any document pursuant to which |
| 301 | the interest granted, assigned, transferred, or conveyed |
| 302 | involves only a single-family residence. The Such single-family |
| 303 | residence may be a condominium unit, a unit held through stock |
| 304 | ownership or membership representing a proprietary interest in a |
| 305 | corporation owning a fee or a leasehold initially in excess of |
| 306 | 98 years, or a detached dwelling. |
| 307 | (2) All provisions of chapter 201, except s. 201.15, shall |
| 308 | apply to the surtax. The Department of Revenue shall pay to the |
| 309 | governing authority of the county which levies the surtax all |
| 310 | taxes, penalties, and interest collected under this section less |
| 311 | any costs of administration. |
| 312 | (3) Each county that which levies the surtax shall: |
| 313 | (a) Include in the financial report required under s. |
| 314 | 218.32 information showing the revenues and the expenses of the |
| 315 | trust fund for the fiscal year. |
| 316 | (b) Adopt a housing plan every 3 years that includes |
| 317 | provisions substantially similar to the plans required in s. |
| 318 | 420.9075(1). |
| 319 | (c) Have adopted an affordable housing element of its |
| 320 | comprehensive land use plan that complies with s. |
| 321 | 163.3177(6)(f). |
| 322 | (d) Require by resolution that the staff or entity that |
| 323 | has administrative authority for implementing the housing plan |
| 324 | prepare and submit to the county's governing body an annual |
| 325 | report substantially similar to the annual report required in s. |
| 326 | 420.9075(10). |
| 327 | Section 5. The Department of Revenue may adopt any rules |
| 328 | necessary to implement and administer this act. |
| 329 | Section 6. This act shall take effect July 1, 2009, and |
| 330 | the amendment to s. 201.02, Florida Statutes, made by this act |
| 331 | shall apply to transfers of property for which the first |
| 332 | transfer to an artificial entity occurs after such date. |