Florida Senate - 2010                                    SB 2426
       
       
       
       By Senator Fasano
       
       
       
       
       11-01333B-10                                          20102426__
    1                        A bill to be entitled                      
    2         An act relating to the New Markets Development
    3         Program; amending s. 288.9913, F.S.; revising the
    4         definition of the term “qualified active low-income
    5         community business” for purposes of the New Markets
    6         Development Program Act; providing an effective date.
    7  
    8  Be It Enacted by the Legislature of the State of Florida:
    9  
   10         Section 1. Subsection (7) of section 288.9913, Florida
   11  Statutes, is amended to read:
   12         288.9913 Definitions.—As used in ss. 288.991-288.9922, the
   13  term:
   14         (7) “Qualified active low-income community business” means
   15  a corporation, including a nonprofit corporation, or partnership
   16  that complies with each of the following:
   17         (a)1. Derives at least 50 percent of its total gross income
   18  from the active conduct of business within any low-income
   19  community for any taxable year.;
   20         2. Uses at least 40 percent a substantial portion of its
   21  tangible property, whether owned or leased, within any low
   22  income community for any taxable year, which percentage shall be
   23  the average value of the tangible property owned or leased and
   24  used within a low-income community by the corporation or
   25  partnership divided by the average value of the total tangible
   26  property owned or leased and used by the corporation or
   27  partnership during the taxable year. The value assigned to
   28  leased property by the corporation or partnership must be
   29  reasonable.;
   30         3. Performs at least 40 percent a substantial portion of
   31  its services through its employees in a low-income community for
   32  any taxable year, which percentage shall be the amount paid by
   33  the corporation or partnership for salaries, wages, and benefits
   34  to employees in a low-income community divided by the total
   35  amount paid by the corporation or partnership for salaries,
   36  wages, and benefits during the taxable year.;
   37         4. Attributes less than 5 percent of the average of the
   38  aggregate unadjusted bases of the property of the entity to
   39  collectibles, as defined in 26 U.S.C. s. 408(m)(2), other than
   40  collectibles that are held primarily for sale to customers in
   41  the ordinary course of the business for any taxable year.; and
   42         5. Attributes less than 5 percent of the average of the
   43  aggregate unadjusted bases of the property of the entity to
   44  nonqualified financial property, as defined in 26 U.S.C. s.
   45  1397C(e), for any taxable year.
   46  
   47  A corporation or partnership complies with subparagraph 1. if,
   48  as calculated in subparagraph 2., it uses at least 50 percent of
   49  its tangible property, whether owned or leased, within any low
   50  income community for any taxable year or if, as calculated in
   51  subparagraph 3., the corporation or partnership performs at
   52  least 50 percent of its services through its employees in a low
   53  income community for any taxable year.
   54         (b) Is reasonably expected by a qualified community
   55  development entity at the time of an investment to continue to
   56  satisfy the requirements of paragraphs (a), (c), and (d) for the
   57  duration of the investment.
   58         (c) Satisfies the requirements of paragraphs (a) and (b),
   59  but does not:
   60         1. Derive or project to derive 15 percent or more of its
   61  annual revenue from the rental or sale of real estate, unless
   62  the corporation or partnership derives such revenue from the
   63  rental of real estate and the primary lessee and user of such
   64  real estate is another qualified active low-income community
   65  business that is owned or controlled by, or that is under common
   66  ownership or control with, such corporation or partnership;
   67         2. Engage predominantly in the development or holding of
   68  intangibles for sale or license;
   69         3. Operate a private or commercial golf course, country
   70  club, massage parlor, hot tub facility, suntan facility,
   71  racetrack, gambling facility, or a store the principal business
   72  of which is the sale of alcoholic beverages for consumption off
   73  premises; or
   74         4. Engage principally in farming and owns or leases assets
   75  the sum of the aggregate unadjusted bases or the fair market
   76  value of which exceeds $500,000.
   77         (d) Will create or retain jobs that pay an average wage of
   78  at least 115 percent of the federal poverty income guidelines
   79  for a family of four.
   80         Section 2. This act shall take effect upon becoming a law.