| 1 | A bill to be entitled |
| 2 | An act relating to economic development; amending s. |
| 3 | 212.031, F.S.; providing a partial exemption from the tax |
| 4 | on renting, leasing, letting, or granting a license for |
| 5 | the use of real property for property rented, leased, |
| 6 | subleased, or licensed to a person providing certain |
| 7 | services at convention halls, civic centers, or public |
| 8 | lodging establishments; providing for application only to |
| 9 | certain portions of payments; providing for retroactive |
| 10 | application; amending s. 212.08, F.S., relating to |
| 11 | exemptions from sales, rental, use, consumption, |
| 12 | distribution, and storage tax; revising the definitions of |
| 13 | the terms "productive output" and "real property" for |
| 14 | purposes of certain exemptions; creating s. 288.0659, |
| 15 | F.S.; creating the Local Government Distressed Area |
| 16 | Matching Grant Program within the Office of Tourism, |
| 17 | Trade, and Economic Development; providing a program |
| 18 | purpose; providing definitions; authorizing the office to |
| 19 | accept and administer appropriated moneys to provide local |
| 20 | government distressed area matching grants; authorizing |
| 21 | local governments to apply for grants to match qualified |
| 22 | business assistance; providing qualifying requirements for |
| 23 | targeted businesses; specifying evaluation criteria for |
| 24 | reviewing grant requests; subjecting grant approval to |
| 25 | legislative appropriation; providing limitations on |
| 26 | expending funds; providing procedures for approving grant |
| 27 | allocations or disapproving application; providing a |
| 28 | process for making preliminary and final grant awards; |
| 29 | providing requirements for grant recipients; providing for |
| 30 | revocation of grants; limiting the grant amount for the |
| 31 | qualified business assistance; authorizing the office to |
| 32 | retain certain funds for administrative costs; providing |
| 33 | appropriations; providing an effective date. |
| 34 |
|
| 35 | Be It Enacted by the Legislature of the State of Florida: |
| 36 |
|
| 37 | Section 1. Paragraph (a) of subsection (1) of section |
| 38 | 212.031, Florida Statutes, is amended to read: |
| 39 | 212.031 Tax on rental or license fee for use of real |
| 40 | property.- |
| 41 | (1)(a) It is declared to be the legislative intent that |
| 42 | every person is exercising a taxable privilege who engages in |
| 43 | the business of renting, leasing, letting, or granting a license |
| 44 | for the use of any real property unless such property is: |
| 45 | 1. Assessed as agricultural property under s. 193.461. |
| 46 | 2. Used exclusively as dwelling units. |
| 47 | 3. Property subject to tax on parking, docking, or storage |
| 48 | spaces under s. 212.03(6). |
| 49 | 4. Recreational property or the common elements of a |
| 50 | condominium when subject to a lease between the developer or |
| 51 | owner thereof and the condominium association in its own right |
| 52 | or as agent for the owners of individual condominium units or |
| 53 | the owners of individual condominium units. However, only the |
| 54 | lease payments on such property shall be exempt from the tax |
| 55 | imposed by this chapter, and any other use made by the owner or |
| 56 | the condominium association shall be fully taxable under this |
| 57 | chapter. |
| 58 | 5. A public or private street or right-of-way and poles, |
| 59 | conduits, fixtures, and similar improvements located on such |
| 60 | streets or rights-of-way, occupied or used by a utility or |
| 61 | provider of communications services, as defined by s. 202.11, |
| 62 | for utility or communications or television purposes. For |
| 63 | purposes of this subparagraph, the term "utility" means any |
| 64 | person providing utility services as defined in s. 203.012. This |
| 65 | exception also applies to property, wherever located, on which |
| 66 | the following are placed: towers, antennas, cables, accessory |
| 67 | structures, or equipment, not including switching equipment, |
| 68 | used in the provision of mobile communications services as |
| 69 | defined in s. 202.11. For purposes of this chapter, towers used |
| 70 | in the provision of mobile communications services, as defined |
| 71 | in s. 202.11, are considered to be fixtures. |
| 72 | 6. A public street or road which is used for |
| 73 | transportation purposes. |
| 74 | 7. Property used at an airport exclusively for the purpose |
| 75 | of aircraft landing or aircraft taxiing or property used by an |
| 76 | airline for the purpose of loading or unloading passengers or |
| 77 | property onto or from aircraft or for fueling aircraft. |
| 78 | 8.a. Property used at a port authority, as defined in s. |
| 79 | 315.02(2), exclusively for the purpose of oceangoing vessels or |
| 80 | tugs docking, or such vessels mooring on property used by a port |
| 81 | authority for the purpose of loading or unloading passengers or |
| 82 | cargo onto or from such a vessel, or property used at a port |
| 83 | authority for fueling such vessels, or to the extent that the |
| 84 | amount paid for the use of any property at the port is based on |
| 85 | the charge for the amount of tonnage actually imported or |
| 86 | exported through the port by a tenant. |
| 87 | b. The amount charged for the use of any property at the |
| 88 | port in excess of the amount charged for tonnage actually |
| 89 | imported or exported shall remain subject to tax except as |
| 90 | provided in sub-subparagraph a. |
| 91 | 9. Property used as an integral part of the performance of |
| 92 | qualified production services. As used in this subparagraph, the |
| 93 | term "qualified production services" means any activity or |
| 94 | service performed directly in connection with the production of |
| 95 | a qualified motion picture, as defined in s. 212.06(1)(b), and |
| 96 | includes: |
| 97 | a. Photography, sound and recording, casting, location |
| 98 | managing and scouting, shooting, creation of special and optical |
| 99 | effects, animation, adaptation (language, media, electronic, or |
| 100 | otherwise), technological modifications, computer graphics, set |
| 101 | and stage support (such as electricians, lighting designers and |
| 102 | operators, greensmen, prop managers and assistants, and grips), |
| 103 | wardrobe (design, preparation, and management), hair and makeup |
| 104 | (design, production, and application), performing (such as |
| 105 | acting, dancing, and playing), designing and executing stunts, |
| 106 | coaching, consulting, writing, scoring, composing, |
| 107 | choreographing, script supervising, directing, producing, |
| 108 | transmitting dailies, dubbing, mixing, editing, cutting, |
| 109 | looping, printing, processing, duplicating, storing, and |
| 110 | distributing; |
| 111 | b. The design, planning, engineering, construction, |
| 112 | alteration, repair, and maintenance of real or personal property |
| 113 | including stages, sets, props, models, paintings, and facilities |
| 114 | principally required for the performance of those services |
| 115 | listed in sub-subparagraph a.; and |
| 116 | c. Property management services directly related to |
| 117 | property used in connection with the services described in sub- |
| 118 | subparagraphs a. and b. |
| 119 |
|
| 120 | This exemption will inure to the taxpayer upon presentation of |
| 121 | the certificate of exemption issued to the taxpayer under the |
| 122 | provisions of s. 288.1258. |
| 123 | 10. Leased, subleased, licensed, or rented to a person |
| 124 | providing food and drink concessionaire services within the |
| 125 | premises of a convention hall, exhibition hall, auditorium, |
| 126 | stadium, theater, arena, civic center, performing arts center, |
| 127 | publicly owned recreational facility, or any business operated |
| 128 | under a permit issued pursuant to chapter 550. A person |
| 129 | providing retail concessionaire services involving the sale of |
| 130 | food and drink or other tangible personal property within the |
| 131 | premises of an airport shall be subject to tax on the rental of |
| 132 | real property used for that purpose, but shall not be subject to |
| 133 | the tax on any license to use the property. For purposes of this |
| 134 | subparagraph, the term "sale" shall not include the leasing of |
| 135 | tangible personal property. |
| 136 | 11. Property occupied pursuant to an instrument calling |
| 137 | for payments which the department has declared, in a Technical |
| 138 | Assistance Advisement issued on or before March 15, 1993, to be |
| 139 | nontaxable pursuant to rule 12A-1.070(19)(c), Florida |
| 140 | Administrative Code; provided that this subparagraph shall only |
| 141 | apply to property occupied by the same person before and after |
| 142 | the execution of the subject instrument and only to those |
| 143 | payments made pursuant to such instrument, exclusive of renewals |
| 144 | and extensions thereof occurring after March 15, 1993. |
| 145 | 12. Rented, leased, subleased, or licensed to a |
| 146 | concessionaire by a convention hall, exhibition hall, |
| 147 | auditorium, stadium, theater, arena, civic center, performing |
| 148 | arts center, or publicly owned recreational facility, during an |
| 149 | event at the facility, to be used by the concessionaire to sell |
| 150 | souvenirs, novelties, or other event-related products. This |
| 151 | subparagraph applies only to that portion of the rental, lease, |
| 152 | or license payment which is based on a percentage of sales and |
| 153 | not based on a fixed price. This subparagraph is repealed July |
| 154 | 1, 2009. |
| 155 | 13. Property used or occupied predominantly for space |
| 156 | flight business purposes. As used in this subparagraph, "space |
| 157 | flight business" means the manufacturing, processing, or |
| 158 | assembly of a space facility, space propulsion system, space |
| 159 | vehicle, satellite, or station of any kind possessing the |
| 160 | capacity for space flight, as defined by s. 212.02(23), or |
| 161 | components thereof, and also means the following activities |
| 162 | supporting space flight: vehicle launch activities, flight |
| 163 | operations, ground control or ground support, and all |
| 164 | administrative activities directly related thereto. Property |
| 165 | shall be deemed to be used or occupied predominantly for space |
| 166 | flight business purposes if more than 50 percent of the |
| 167 | property, or improvements thereon, is used for one or more space |
| 168 | flight business purposes. Possession by a landlord, lessor, or |
| 169 | licensor of a signed written statement from the tenant, lessee, |
| 170 | or licensee claiming the exemption shall relieve the landlord, |
| 171 | lessor, or licensor from the responsibility of collecting the |
| 172 | tax, and the department shall look solely to the tenant, lessee, |
| 173 | or licensee for recovery of such tax if it determines that the |
| 174 | exemption was not applicable. |
| 175 | 14. Rented, leased, subleased, or licensed to a person |
| 176 | providing telecommunications, data systems management, or |
| 177 | Internet services at a publicly or privately owned convention |
| 178 | hall, civic center, or meeting space at a public lodging |
| 179 | establishment as defined in s. 509.013. This subparagraph |
| 180 | applies only to that portion of the rental, lease, or license |
| 181 | payment that is based upon a percentage of sales, revenue |
| 182 | sharing, or royalty payments and not based upon a fixed price. |
| 183 | This subparagraph is intended to be clarifying and remedial in |
| 184 | nature and shall apply retroactively. This subparagraph does not |
| 185 | provide a basis for an assessment of any tax not paid, or create |
| 186 | a right to a refund of any tax paid, pursuant to this section |
| 187 | before July 1, 2010. |
| 188 | Section 2. Paragraphs (b) and (g) of subsection (5) of |
| 189 | section 212.08, Florida Statutes, are amended to read: |
| 190 | 212.08 Sales, rental, use, consumption, distribution, and |
| 191 | storage tax; specified exemptions.-The sale at retail, the |
| 192 | rental, the use, the consumption, the distribution, and the |
| 193 | storage to be used or consumed in this state of the following |
| 194 | are hereby specifically exempt from the tax imposed by this |
| 195 | chapter. |
| 196 | (5) EXEMPTIONS; ACCOUNT OF USE.- |
| 197 | (b) Machinery and equipment used to increase productive |
| 198 | output.- |
| 199 | 1. Industrial machinery and equipment purchased for |
| 200 | exclusive use by a new business in spaceport activities as |
| 201 | defined by s. 212.02 or for use in new businesses which |
| 202 | manufacture, process, compound, or produce for sale items of |
| 203 | tangible personal property at fixed locations are exempt from |
| 204 | the tax imposed by this chapter upon an affirmative showing by |
| 205 | the taxpayer to the satisfaction of the department that such |
| 206 | items are used in a new business in this state. Such purchases |
| 207 | must be made prior to the date the business first begins its |
| 208 | productive operations, and delivery of the purchased item must |
| 209 | be made within 12 months of that date. |
| 210 | 2. Industrial machinery and equipment purchased for |
| 211 | exclusive use by an expanding facility which is engaged in |
| 212 | spaceport activities as defined by s. 212.02 or for use in |
| 213 | expanding manufacturing facilities or plant units which |
| 214 | manufacture, process, compound, or produce for sale items of |
| 215 | tangible personal property at fixed locations in this state are |
| 216 | exempt from any amount of tax imposed by this chapter upon an |
| 217 | affirmative showing by the taxpayer to the satisfaction of the |
| 218 | department that such items are used to increase the productive |
| 219 | output of such expanded facility or business by not less than 10 |
| 220 | percent. |
| 221 | 3.a. To receive an exemption provided by subparagraph 1. |
| 222 | or subparagraph 2., a qualifying business entity shall apply to |
| 223 | the department for a temporary tax exemption permit. The |
| 224 | application shall state that a new business exemption or |
| 225 | expanded business exemption is being sought. Upon a tentative |
| 226 | affirmative determination by the department pursuant to |
| 227 | subparagraph 1. or subparagraph 2., the department shall issue |
| 228 | such permit. |
| 229 | b. The applicant shall be required to maintain all |
| 230 | necessary books and records to support the exemption. Upon |
| 231 | completion of purchases of qualified machinery and equipment |
| 232 | pursuant to subparagraph 1. or subparagraph 2., the temporary |
| 233 | tax permit shall be delivered to the department or returned to |
| 234 | the department by certified or registered mail. |
| 235 | c. If, in a subsequent audit conducted by the department, |
| 236 | it is determined that the machinery and equipment purchased as |
| 237 | exempt under subparagraph 1. or subparagraph 2. did not meet the |
| 238 | criteria mandated by this paragraph or if commencement of |
| 239 | production did not occur, the amount of taxes exempted at the |
| 240 | time of purchase shall immediately be due and payable to the |
| 241 | department by the business entity, together with the appropriate |
| 242 | interest and penalty, computed from the date of purchase, in the |
| 243 | manner prescribed by this chapter. |
| 244 | d. In the event a qualifying business entity fails to |
| 245 | apply for a temporary exemption permit or if the tentative |
| 246 | determination by the department required to obtain a temporary |
| 247 | exemption permit is negative, a qualifying business entity shall |
| 248 | receive the exemption provided in subparagraph 1. or |
| 249 | subparagraph 2. through a refund of previously paid taxes. No |
| 250 | refund may be made for such taxes unless the criteria mandated |
| 251 | by subparagraph 1. or subparagraph 2. have been met and |
| 252 | commencement of production has occurred. |
| 253 | 4. The department shall adopt rules governing applications |
| 254 | for, issuance of, and the form of temporary tax exemption |
| 255 | permits; provisions for recapture of taxes; and the manner and |
| 256 | form of refund applications and may establish guidelines as to |
| 257 | the requisites for an affirmative showing of increased |
| 258 | productive output, commencement of production, and qualification |
| 259 | for exemption. |
| 260 | 5. The exemptions provided in subparagraphs 1. and 2. do |
| 261 | not apply to machinery or equipment purchased or used by |
| 262 | electric utility companies, communications companies, oil or gas |
| 263 | exploration or production operations, publishing firms that do |
| 264 | not export at least 50 percent of their finished product out of |
| 265 | the state, any firm subject to regulation by the Division of |
| 266 | Hotels and Restaurants of the Department of Business and |
| 267 | Professional Regulation, or any firm which does not manufacture, |
| 268 | process, compound, or produce for sale items of tangible |
| 269 | personal property or which does not use such machinery and |
| 270 | equipment in spaceport activities as required by this paragraph. |
| 271 | The exemptions provided in subparagraphs 1. and 2. shall apply |
| 272 | to machinery and equipment purchased for use in phosphate or |
| 273 | other solid minerals severance, mining, or processing |
| 274 | operations. |
| 275 | 6. For the purposes of the exemptions provided in |
| 276 | subparagraphs 1. and 2., these terms have the following |
| 277 | meanings: |
| 278 | a. "Industrial machinery and equipment" means tangible |
| 279 | personal property or other property that has a depreciable life |
| 280 | of 3 years or more and that is used as an integral part in the |
| 281 | manufacturing, processing, compounding, or production of |
| 282 | tangible personal property for sale or is exclusively used in |
| 283 | spaceport activities. A building and its structural components |
| 284 | are not industrial machinery and equipment unless the building |
| 285 | or structural component is so closely related to the industrial |
| 286 | machinery and equipment that it houses or supports that the |
| 287 | building or structural component can be expected to be replaced |
| 288 | when the machinery and equipment are replaced. Heating and air- |
| 289 | conditioning systems are not industrial machinery and equipment |
| 290 | unless the sole justification for their installation is to meet |
| 291 | the requirements of the production process, even though the |
| 292 | system may provide incidental comfort to employees or serve, to |
| 293 | an insubstantial degree, nonproduction activities. The term |
| 294 | includes parts and accessories only to the extent that the |
| 295 | exemption thereof is consistent with the provisions of this |
| 296 | paragraph. |
| 297 | b. "Productive output" means the number of units actually |
| 298 | produced by a single plant, or operation, or product line in a |
| 299 | single continuous 12-month period, irrespective of sales. |
| 300 | Increases in productive output shall be measured by the output |
| 301 | for 12 continuous months selected by the expanding business |
| 302 | immediately following the completion of installation of such |
| 303 | machinery or equipment over the output for the 12 continuous |
| 304 | months immediately preceding such installation. However, if a |
| 305 | different 12-month continuous period of time would more |
| 306 | accurately reflect the increase in productive output of |
| 307 | machinery and equipment purchased to facilitate an expansion, |
| 308 | the increase in productive output may be measured during that |
| 309 | 12-month continuous period of time if such time period is |
| 310 | mutually agreed upon by the Department of Revenue and the |
| 311 | expanding business prior to the commencement of production; |
| 312 | provided, However, in no case may such time period begin later |
| 313 | than 2 years following the completion of installation of the new |
| 314 | machinery and equipment. The units used to measure productive |
| 315 | output shall be physically comparable between the two periods, |
| 316 | irrespective of sales. |
| 317 | (g) Building materials used in the rehabilitation of real |
| 318 | property located in an enterprise zone.- |
| 319 | 1. Building materials used in the rehabilitation of real |
| 320 | property located in an enterprise zone shall be exempt from the |
| 321 | tax imposed by this chapter upon an affirmative showing to the |
| 322 | satisfaction of the department that the items have been used for |
| 323 | the rehabilitation of real property located in an enterprise |
| 324 | zone. Except as provided in subparagraph 2., this exemption |
| 325 | inures to the owner, lessee, or lessor of the rehabilitated real |
| 326 | property located in an enterprise zone only through a refund of |
| 327 | previously paid taxes. To receive a refund pursuant to this |
| 328 | paragraph, the owner, lessee, or lessor of the rehabilitated |
| 329 | real property located in an enterprise zone must file an |
| 330 | application under oath with the governing body or enterprise |
| 331 | zone development agency having jurisdiction over the enterprise |
| 332 | zone where the business is located, as applicable, which |
| 333 | includes: |
| 334 | a. The name and address of the person claiming the refund. |
| 335 | b. An address and assessment roll parcel number of the |
| 336 | rehabilitated real property in an enterprise zone for which a |
| 337 | refund of previously paid taxes is being sought. |
| 338 | c. A description of the improvements made to accomplish |
| 339 | the rehabilitation of the real property. |
| 340 | d. A copy of the building permit issued for the |
| 341 | rehabilitation of the real property. |
| 342 | e. A sworn statement, under the penalty of perjury, from |
| 343 | the general contractor licensed in this state with whom the |
| 344 | applicant contracted to make the improvements necessary to |
| 345 | accomplish the rehabilitation of the real property, which |
| 346 | statement lists the building materials used in the |
| 347 | rehabilitation of the real property, the actual cost of the |
| 348 | building materials, and the amount of sales tax paid in this |
| 349 | state on the building materials. In the event that a general |
| 350 | contractor has not been used, the applicant shall provide this |
| 351 | information in a sworn statement, under the penalty of perjury. |
| 352 | Copies of the invoices which evidence the purchase of the |
| 353 | building materials used in such rehabilitation and the payment |
| 354 | of sales tax on the building materials shall be attached to the |
| 355 | sworn statement provided by the general contractor or by the |
| 356 | applicant. Unless the actual cost of building materials used in |
| 357 | the rehabilitation of real property and the payment of sales |
| 358 | taxes due thereon is documented by a general contractor or by |
| 359 | the applicant in this manner, the cost of such building |
| 360 | materials shall be an amount equal to 40 percent of the increase |
| 361 | in assessed value for ad valorem tax purposes. |
| 362 | f. The identifying number assigned pursuant to s. 290.0065 |
| 363 | to the enterprise zone in which the rehabilitated real property |
| 364 | is located. |
| 365 | g. A certification by the local building code inspector |
| 366 | that the improvements necessary to accomplish the rehabilitation |
| 367 | of the real property are substantially completed. |
| 368 | h. Whether the business is a small business as defined by |
| 369 | s. 288.703(1). |
| 370 | i. If applicable, the name and address of each permanent |
| 371 | employee of the business, including, for each employee who is a |
| 372 | resident of an enterprise zone, the identifying number assigned |
| 373 | pursuant to s. 290.0065 to the enterprise zone in which the |
| 374 | employee resides. |
| 375 | 2. This exemption inures to a city, county, other |
| 376 | governmental agency, or nonprofit community-based organization |
| 377 | through a refund of previously paid taxes if the building |
| 378 | materials used in the rehabilitation of real property located in |
| 379 | an enterprise zone are paid for from the funds of a community |
| 380 | development block grant, State Housing Initiatives Partnership |
| 381 | Program, or similar grant or loan program. To receive a refund |
| 382 | pursuant to this paragraph, a city, county, other governmental |
| 383 | agency, or nonprofit community-based organization must file an |
| 384 | application which includes the same information required to be |
| 385 | provided in subparagraph 1. by an owner, lessee, or lessor of |
| 386 | rehabilitated real property. In addition, the application must |
| 387 | include a sworn statement signed by the chief executive officer |
| 388 | of the city, county, other governmental agency, or nonprofit |
| 389 | community-based organization seeking a refund which states that |
| 390 | the building materials for which a refund is sought were paid |
| 391 | for from the funds of a community development block grant, State |
| 392 | Housing Initiatives Partnership Program, or similar grant or |
| 393 | loan program. |
| 394 | 3. Within 10 working days after receipt of an application, |
| 395 | the governing body or enterprise zone development agency shall |
| 396 | review the application to determine if it contains all the |
| 397 | information required pursuant to subparagraph 1. or subparagraph |
| 398 | 2. and meets the criteria set out in this paragraph. The |
| 399 | governing body or agency shall certify all applications that |
| 400 | contain the information required pursuant to subparagraph 1. or |
| 401 | subparagraph 2. and meet the criteria set out in this paragraph |
| 402 | as eligible to receive a refund. If applicable, the governing |
| 403 | body or agency shall also certify if 20 percent of the employees |
| 404 | of the business are residents of an enterprise zone, excluding |
| 405 | temporary and part-time employees. The certification shall be in |
| 406 | writing, and a copy of the certification shall be transmitted to |
| 407 | the executive director of the Department of Revenue. The |
| 408 | applicant shall be responsible for forwarding a certified |
| 409 | application to the department within the time specified in |
| 410 | subparagraph 4. |
| 411 | 4. An application for a refund pursuant to this paragraph |
| 412 | must be submitted to the department within 6 months after the |
| 413 | rehabilitation of the property is deemed to be substantially |
| 414 | completed by the local building code inspector or by September 1 |
| 415 | after the rehabilitated property is first subject to assessment. |
| 416 | 5. Not more than one exemption through a refund of |
| 417 | previously paid taxes for the rehabilitation of real property |
| 418 | shall be permitted for any single parcel of property unless |
| 419 | there is a change in ownership, a new lessor, or a new lessee of |
| 420 | the real property. No refund shall be granted pursuant to this |
| 421 | paragraph unless the amount to be refunded exceeds $500. No |
| 422 | refund granted pursuant to this paragraph shall exceed the |
| 423 | lesser of 97 percent of the Florida sales or use tax paid on the |
| 424 | cost of the building materials used in the rehabilitation of the |
| 425 | real property as determined pursuant to sub-subparagraph 1.e. or |
| 426 | $5,000, or, if no less than 20 percent of the employees of the |
| 427 | business are residents of an enterprise zone, excluding |
| 428 | temporary and part-time employees, the amount of refund granted |
| 429 | pursuant to this paragraph shall not exceed the lesser of 97 |
| 430 | percent of the sales tax paid on the cost of such building |
| 431 | materials or $10,000. A refund approved pursuant to this |
| 432 | paragraph shall be made within 30 days of formal approval by the |
| 433 | department of the application for the refund. This subparagraph |
| 434 | shall apply retroactively to July 1, 2005. |
| 435 | 6. The department shall adopt rules governing the manner |
| 436 | and form of refund applications and may establish guidelines as |
| 437 | to the requisites for an affirmative showing of qualification |
| 438 | for exemption under this paragraph. |
| 439 | 7. The department shall deduct an amount equal to 10 |
| 440 | percent of each refund granted under the provisions of this |
| 441 | paragraph from the amount transferred into the Local Government |
| 442 | Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 |
| 443 | for the county area in which the rehabilitated real property is |
| 444 | located and shall transfer that amount to the General Revenue |
| 445 | Fund. |
| 446 | 8. For the purposes of the exemption provided in this |
| 447 | paragraph: |
| 448 | a. "Building materials" means tangible personal property |
| 449 | which becomes a component part of improvements to real property. |
| 450 | b. "Real property" has the same meaning as provided in s. |
| 451 | 192.001(12), except that the term does not include a condominium |
| 452 | parcel or condominium property as defined in s. 718.103. |
| 453 | c. "Rehabilitation of real property" means the |
| 454 | reconstruction, renovation, restoration, rehabilitation, |
| 455 | construction, or expansion of improvements to real property. |
| 456 | d. "Substantially completed" has the same meaning as |
| 457 | provided in s. 192.042(1). |
| 458 | 9. This paragraph expires on the date specified in s. |
| 459 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
| 460 | Section 3. Section 288.0659, Florida Statutes, is created |
| 461 | to read: |
| 462 | 288.0659 Local Government Distressed Area Matching Grant |
| 463 | Program.- |
| 464 | (1) The Local Government Distressed Area Matching Grant |
| 465 | Program is created within the Office of Tourism, Trade, and |
| 466 | Economic Development. The purpose of the program is to stimulate |
| 467 | investment in the state's economy by providing grants to match |
| 468 | demonstrated business assistance by local governments to attract |
| 469 | and retain businesses in this state. |
| 470 | (2) As used in this section, the term: |
| 471 | (a) "Local government" means a county or municipality. |
| 472 | (b) "Office" means the Office of Tourism, Trade, and |
| 473 | Economic Development. |
| 474 | (c) "Qualified business assistance" means economic |
| 475 | incentives provided by a local government for the purpose of |
| 476 | attracting or retaining a specific business, including, but not |
| 477 | limited to, suspensions, waivers, or reductions of impact fees |
| 478 | or permit fees; direct incentive payments; expenditures for |
| 479 | onsite or offsite improvements directly benefiting a specific |
| 480 | business; or construction or renovation of buildings for a |
| 481 | specific business. |
| 482 | (3) The office may accept and administer moneys |
| 483 | appropriated to the office for providing grants to match |
| 484 | expenditures by local governments to attract or retain |
| 485 | businesses in this state. |
| 486 | (4) A local government may apply for grants to match |
| 487 | qualified business assistance made by the local government for |
| 488 | the purpose of attracting or retaining a specific business. A |
| 489 | local government may apply for no more than one grant per |
| 490 | targeted business. A local government may only have one |
| 491 | application pending with the office. Additional applications may |
| 492 | be filed after a previous application has been approved or |
| 493 | denied. |
| 494 | (5) To qualify for a grant, the business being targeted by |
| 495 | a local government must create at least 15 full-time jobs, must |
| 496 | be new to this state, must be expanding its operations in this |
| 497 | state, or would otherwise leave the state absent state and local |
| 498 | assistance, and the local government applying for the grant must |
| 499 | expedite its permitting processes for the target business by |
| 500 | accelerating the normal review and approval timelines. In |
| 501 | addition to these requirements, the office shall review the |
| 502 | grant requests using the following evaluation criteria, with |
| 503 | priority given in descending order: |
| 504 | (a) The presence and degree of pervasive poverty, |
| 505 | unemployment, and general distress as determined pursuant to s. |
| 506 | 290.0058 in the area where the business will locate, with |
| 507 | priority given to locations with greater degrees of poverty, |
| 508 | unemployment, and general distress. |
| 509 | (b) The extent of reliance on the local government |
| 510 | expenditure as an inducement for the business's location |
| 511 | decision, with priority given to higher levels of local |
| 512 | government expenditure. |
| 513 | (c) The number of new full-time jobs created, with |
| 514 | priority given to higher numbers of jobs created. |
| 515 | (d) The average hourly rate of wages for jobs created, |
| 516 | with priority given to higher average wages. |
| 517 | (e) The amount of capital investment to be made by the |
| 518 | business, with priority given to higher amounts of capital |
| 519 | investment. |
| 520 | (6) In evaluating grant requests, the office shall take |
| 521 | into consideration the need for grant assistance as it relates |
| 522 | to the local government's general fund balance as well as local |
| 523 | incentive programs that are already in existence. |
| 524 | (7) Funds made available pursuant to this section may not |
| 525 | be expended in connection with the relocation of a business from |
| 526 | one community to another community in this state unless the |
| 527 | office determines that without such relocation the business will |
| 528 | move outside this state or determines that the business has a |
| 529 | compelling economic rationale for the relocation which creates |
| 530 | additional jobs. Funds made available pursuant to this section |
| 531 | may not be used by the receiving local government to supplant |
| 532 | matching commitments required of the local government pursuant |
| 533 | to other state or federal incentive programs. |
| 534 | (8) Within 30 days after the office receives an |
| 535 | application for a grant, the office shall approve a preliminary |
| 536 | grant allocation or disapprove the application. The preliminary |
| 537 | grant allocation shall be based on estimates of qualified |
| 538 | business assistance submitted by the local government and shall |
| 539 | equal 50 percent of the amount of the estimated qualified |
| 540 | business assistance or $50,000, whichever is less. The |
| 541 | preliminary grant allocation shall be executed by contract with |
| 542 | the local government. The contract shall set forth the terms and |
| 543 | conditions, including the timeframes within which the final |
| 544 | grant award will be disbursed. The final grant award may not |
| 545 | exceed the preliminary grant allocation. The office may approve |
| 546 | preliminary grant allocations only to the extent that funds are |
| 547 | appropriated for such grants by the Legislature. |
| 548 | (a) Preliminary grant allocations that are revoked or |
| 549 | voluntarily surrendered shall be immediately available for |
| 550 | reallocation. |
| 551 | (b) Recipients of preliminary grant allocations shall |
| 552 | promptly report to the office the date on which the local |
| 553 | government's permitting and approval process is completed and |
| 554 | the date on which all qualified business assistance are |
| 555 | completed. |
| 556 | (9) The office shall make a final grant award to a local |
| 557 | government within 30 days after receiving information from the |
| 558 | local government sufficient to demonstrate actual qualified |
| 559 | business assistance. An awarded grant amount shall equal 50 |
| 560 | percent of the amount of the qualified business assistance or |
| 561 | $50,000, whichever is less, and may not exceed the preliminary |
| 562 | grant allocation. The amount by which a preliminary grant |
| 563 | allocation exceeds a final grant award shall be immediately |
| 564 | available for reallocation. |
| 565 | (10) The office may retain funds, not to exceed 2 percent |
| 566 | of the funds made available pursuant to this section, for direct |
| 567 | administrative costs associated with this section. |
| 568 | Section 4. There is appropriated for the 2010-2011 state |
| 569 | fiscal year to the Office of Tourism, Trade, and Economic |
| 570 | Development within the Executive Office of the Governor: |
| 571 | (1) The sum of $5 million in nonrecurring general revenue |
| 572 | and $5 million in recurring general revenue for Space Florida to |
| 573 | address financing, business development, and infrastructure |
| 574 | needs to assist in the continued development of the aerospace |
| 575 | industry in this state and management of state-of-the-art |
| 576 | facilities for space businesses that will create high- |
| 577 | technology, high-wage-earning jobs. |
| 578 | (2) The sum of $3.2 million in nonrecurring general |
| 579 | revenue exclusively for Space Florida to retrain workers as the |
| 580 | result of the retirement of the Space Shuttle Program. |
| 581 | (3) The sum of $2 million in nonrecurring general revenue |
| 582 | to provide local government distressed area matching grants |
| 583 | pursuant to s. 288.0659, Florida Statutes. Notwithstanding s. |
| 584 | 216.301, Florida Statutes, and pursuant to s. 216.351, Florida |
| 585 | Statutes, any funds remaining from this appropriation as of June |
| 586 | 30, 2011, shall remain available for carrying out the purpose of |
| 587 | s. 288.0659, Florida Statutes. |
| 588 | Section 5. This act shall take effect July 1, 2010. |