HB 997

1
A bill to be entitled
2An act relating to enterprise zone economic stimulus;
3amending s. 212.08, F.S.; revising an exception to the
4definition of the term "recovery property"; amending s.
5212.096, F.S.; renaming the enterprise zone jobs credit as
6the enterprise zone job stimulus credit; conforming
7definitions to changes made by the act; providing
8additional legislative intent; authorizing the enterprise
9zone job stimulus credit against the sales tax to be
10applied to new employees hired; revising criteria for
11claiming the credit; deleting the minimum threshold
12requirement for full-time jobs required to claim the
13credit; specifying an additional criterion for
14nonapplication of the credit to eligible businesses;
15amending s. 220.02, F.S.; conforming terminology to
16changes made by the act; amending s. 220.03, F.S.;
17conforming definitions to changes made by the act;
18amending s. 220.181, F.S.; renaming the enterprise zone
19jobs credit as the enterprise zone job stimulus credit;
20authorizing the enterprise zone job stimulus credit
21against the corporate income tax to be applied to new
22employees hired; revising criteria for claiming the
23credit; deleting the minimum threshold requirement for
24full-time jobs required to claim the credit; amending s.
25290.00677, F.S., relating to rural enterprise zones;
26conforming provisions to changes made by the act; amending
27s. 290.007, F.S.; conforming terminology to changes made
28by the act; providing an effective date.
29
30Be It Enacted by the Legislature of the State of Florida:
31
32     Section 1.  Paragraph (h) of subsection (5) of section
33212.08, Florida Statutes, is amended to read:
34     212.08  Sales, rental, use, consumption, distribution, and
35storage tax; specified exemptions.-The sale at retail, the
36rental, the use, the consumption, the distribution, and the
37storage to be used or consumed in this state of the following
38are hereby specifically exempt from the tax imposed by this
39chapter.
40     (5)  EXEMPTIONS; ACCOUNT OF USE.-
41     (h)  Business property used in an enterprise zone.-
42     1.  Business property purchased for use by businesses
43located in an enterprise zone which is subsequently used in an
44enterprise zone shall be exempt from the tax imposed by this
45chapter. This exemption inures to the business only through a
46refund of previously paid taxes. A refund shall be authorized
47upon an affirmative showing by the taxpayer to the satisfaction
48of the department that the requirements of this paragraph have
49been met.
50     2.  To receive a refund, the business must file under oath
51with the governing body or enterprise zone development agency
52having jurisdiction over the enterprise zone where the business
53is located, as applicable, an application which includes:
54     a.  The name and address of the business claiming the
55refund.
56     b.  The identifying number assigned pursuant to s. 290.0065
57to the enterprise zone in which the business is located.
58     c.  A specific description of the property for which a
59refund is sought, including its serial number or other permanent
60identification number.
61     d.  The location of the property.
62     e.  The sales invoice or other proof of purchase of the
63property, showing the amount of sales tax paid, the date of
64purchase, and the name and address of the sales tax dealer from
65whom the property was purchased.
66     f.  Whether the business is a small business as defined by
67s. 288.703(1).
68     g.  If applicable, the name and address of each permanent
69employee of the business, including, for each employee who is a
70resident of an enterprise zone, the identifying number assigned
71pursuant to s. 290.0065 to the enterprise zone in which the
72employee resides.
73     3.  Within 10 working days after receipt of an application,
74the governing body or enterprise zone development agency shall
75review the application to determine if it contains all the
76information required pursuant to subparagraph 2. and meets the
77criteria set out in this paragraph. The governing body or agency
78shall certify all applications that contain the information
79required pursuant to subparagraph 2. and meet the criteria set
80out in this paragraph as eligible to receive a refund. If
81applicable, the governing body or agency shall also certify if
8220 percent of the employees of the business are residents of an
83enterprise zone, excluding temporary and part-time employees.
84The certification shall be in writing, and a copy of the
85certification shall be transmitted to the executive director of
86the Department of Revenue. The business shall be responsible for
87forwarding a certified application to the department within the
88time specified in subparagraph 4.
89     4.  An application for a refund pursuant to this paragraph
90must be submitted to the department within 6 months after the
91tax is due on the business property that is purchased.
92     5.  The amount refunded on purchases of business property
93under this paragraph shall be the lesser of 97 percent of the
94sales tax paid on such business property or $5,000, or, if no
95less than 20 percent of the employees of the business are
96residents of an enterprise zone, excluding temporary and part-
97time employees, the amount refunded on purchases of business
98property under this paragraph shall be the lesser of 97 percent
99of the sales tax paid on such business property or $10,000. A
100refund approved pursuant to this paragraph shall be made within
10130 days of formal approval by the department of the application
102for the refund. No refund shall be granted under this paragraph
103unless the amount to be refunded exceeds $100 in sales tax paid
104on purchases made within a 60-day time period.
105     6.  The department shall adopt rules governing the manner
106and form of refund applications and may establish guidelines as
107to the requisites for an affirmative showing of qualification
108for exemption under this paragraph.
109     7.  If the department determines that the business property
110is used outside an enterprise zone within 3 years from the date
111of purchase, the amount of taxes refunded to the business
112purchasing such business property shall immediately be due and
113payable to the department by the business, together with the
114appropriate interest and penalty, computed from the date of
115purchase, in the manner provided by this chapter.
116Notwithstanding this subparagraph, business property used
117exclusively in:
118     a.  Licensed commercial fishing vessels,
119     b.  Fishing guide boats, or
120     c.  Ecotourism guide boats
121
122that leave and return to a fixed location within an area
123designated under s. 379.2353 are eligible for the exemption
124provided under this paragraph if all requirements of this
125paragraph are met. Such vessels and boats must be owned by a
126business that is eligible to receive the exemption provided
127under this paragraph. This exemption does not apply to the
128purchase of a vessel or boat.
129     8.  The department shall deduct an amount equal to 10
130percent of each refund granted under the provisions of this
131paragraph from the amount transferred into the Local Government
132Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
133for the county area in which the business property is located
134and shall transfer that amount to the General Revenue Fund.
135     9.  For the purposes of this exemption, "business property"
136means new or used property defined as "recovery property" in s.
137168(c) of the Internal Revenue Code of 1954, as amended, except:
138     a.  Property classified as 3-year property under s.
139168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
140     b.  Industrial machinery and equipment as defined in sub-
141subparagraph (b)6.a. and eligible for exemption under paragraph
142(b);
143     c.  Building materials as defined in sub-subparagraph
144(g)8.a.; and
145     d.  Business property having a sales price of under $500
146$5,000 per unit.
147     10.  This paragraph expires on the date specified in s.
148290.016 for the expiration of the Florida Enterprise Zone Act.
149     Section 2.  Paragraphs (a), (c), and (e) of subsection (1),
150subsection (2), paragraphs (e) through (i) of subsection (3),
151and subsection (9) of section 212.096, Florida Statutes, are
152amended, and paragraph (c) is added to subsection (6) of that
153section, to read:
154     212.096  Sales, rental, storage, use tax; enterprise zone
155job stimulus jobs credit against sales tax.-
156     (1)  For the purposes of the credit provided in this
157section:
158     (a)  "Eligible business" means any sole proprietorship,
159firm, partnership, corporation, bank, savings association,
160estate, trust, business trust, receiver, syndicate, or other
161group or combination, or successor business, located in an
162enterprise zone. The business must demonstrate to the department
163that, on the date of application, the total number of full-time
164jobs defined under paragraph (d) is greater than the total was
16512 months prior to that date. An eligible business does not
166include any business which has claimed the credit permitted
167under s. 220.181 for any new business employee first beginning
168employment with the business after July 1, 2010 1995.
169     (c)  "New employee" means a person residing in an
170enterprise zone or a participant in the welfare transition
171program who begins employment with an eligible business after
172July 1, 2010 1995, and who has not been previously employed full
173time within the preceding 12 months by the eligible business, or
174a successor eligible business, claiming the credit allowed by
175this section.
176     (e)  "New job has been created" means that, on the date of
177application, the total number of full-time jobs is greater than
178the total was 12 months prior to that date, as demonstrated to
179the department by a business located in the enterprise zone.
180
181A person shall be deemed to be employed if the person performs
182duties in connection with the operations of the business on a
183regular, full-time basis, provided the person is performing such
184duties for an average of at least 36 hours per week each month.
185The person must be performing such duties at a business site
186located in the enterprise zone.
187     (2)(a)  It is the legislative intent to encourage the
188provision of meaningful employment opportunities that will
189improve the quality of life of those employed and to encourage
190economic expansion of enterprise zones and the state. Upon an
191affirmative showing by an eligible business to the satisfaction
192of the department that the requirements of this section have
193been met, the business shall be allowed a credit against the tax
194remitted under this chapter.
195     (b)  The credit shall be computed as 20 percent of the
196actual monthly wages paid in this state to each new employee
197hired when a new job has been created, unless the business is
198located within a rural enterprise zone pursuant to s.
199290.004(6), in which case the credit shall be 30 percent of the
200actual monthly wages paid. If no less than 20 percent of the
201employees of the business are residents of an enterprise zone,
202excluding temporary and part-time employees, the credit shall be
203computed as 30 percent of the actual monthly wages paid in this
204state to each new employee hired when a new job has been
205created, unless the business is located within a rural
206enterprise zone, in which case the credit shall be 45 percent of
207the actual monthly wages paid. If the new employee hired when a
208new job is created is a participant in the welfare transition
209program, the following credit shall be a percent of the actual
210monthly wages paid: 40 percent for $4 above the hourly federal
211minimum wage rate; 41 percent for $5 above the hourly federal
212minimum wage rate; 42 percent for $6 above the hourly federal
213minimum wage rate; 43 percent for $7 above the hourly federal
214minimum wage rate; and 44 percent for $8 above the hourly
215federal minimum wage rate. For purposes of this paragraph,
216monthly wages shall be computed as one-twelfth of the expected
217annual wages paid to such employee. The amount paid as wages to
218a new employee is the compensation paid to such employee that is
219subject to unemployment tax. The credit shall be allowed for up
220to 24 consecutive months, beginning with the first tax return
221due pursuant to s. 212.11 after approval by the department.
222     (3)  In order to claim this credit, an eligible business
223must file under oath with the governing body or enterprise zone
224development agency having jurisdiction over the enterprise zone
225where the business is located, as applicable, a statement which
226includes:
227     (e)  Demonstration to the department that, on the date of
228application, the total number of full-time jobs defined under
229paragraph (1)(d) is greater than the total was 12 months prior
230to that date.
231     (e)(f)  The identifying number assigned pursuant to s.
232290.0065 to the enterprise zone in which the business is
233located.
234     (f)(g)  Whether the business is a small business as defined
235by s. 288.703(1).
236     (g)(h)  Within 10 working days after receipt of an
237application, the governing body or enterprise zone development
238agency shall review the application to determine if it contains
239all the information required pursuant to this subsection and
240meets the criteria set out in this section. The governing body
241or agency shall certify all applications that contain the
242information required pursuant to this subsection and meet the
243criteria set out in this section as eligible to receive a
244credit. If applicable, the governing body or agency shall also
245certify if 20 percent of the employees of the business are
246residents of an enterprise zone, excluding temporary and part-
247time employees. The certification shall be in writing, and a
248copy of the certification shall be transmitted to the executive
249director of the Department of Revenue. The business shall be
250responsible for forwarding a certified application to the
251department within the time specified in paragraph (h) (i).
252     (h)(i)  All applications for a credit pursuant to this
253section must be submitted to the department within 6 months
254after the new employee is hired, except applications for credit
255for leased employees. Applications for credit for leased
256employees must be submitted to the department within 7 months
257after the employee is leased.
258     (6)  The credit provided in this section does not apply:
259     (c)  For any eligible business that terminates employees
260for the sole purpose of claiming the credit.
261     (9)  Any business which has claimed this credit shall not
262be allowed any credit under the provisions of s. 220.181 for any
263new employee beginning employment after July 1, 2010 1995.
264     Section 3.  Paragraph (a) of subsection (6) of section
265220.02, Florida Statutes, is amended to read:
266     220.02  Legislative intent.-
267     (6)(a)  It is the intent of the Legislature that the
268enterprise zone job stimulus jobs credit provided by s. 220.181
269be applicable only to those businesses located in an enterprise
270zone. It is further the intent of the Legislature to provide an
271incentive for the increased provision of employment
272opportunities leading to the improvement of the quality of life
273of those employed and the positive expansion of the economy of
274the state as well as the economy of present enterprise zones.
275     Section 4.  Paragraphs (q) and (ee) of subsection (1) of
276section 220.03, Florida Statutes, are amended to read:
277     220.03  Definitions.-
278     (1)  SPECIFIC TERMS.-When used in this code, and when not
279otherwise distinctly expressed or manifestly incompatible with
280the intent thereof, the following terms shall have the following
281meanings:
282     (q)  "New employee," for the purposes of the enterprise
283zone job stimulus jobs credit, means a person residing in an
284enterprise zone or a participant in the welfare transition
285program who is employed at a business located in an enterprise
286zone who begins employment in the operations of the business
287after July 1, 2010 1995, and who has not been previously
288employed full time within the preceding 12 months by the
289business or a successor business claiming the credit pursuant to
290s. 220.181. A person shall be deemed to be employed by such a
291business if the person performs duties in connection with the
292operations of the business on a full-time basis, provided she or
293he is performing such duties for an average of at least 36 hours
294per week each month. The person must be performing such duties
295at a business site located in an enterprise zone. This paragraph
296expires on the date specified in s. 290.016 for the expiration
297of the Florida Enterprise Zone Act.
298     (ee)  "New job has been created" means that, on the date of
299application, the total number of full-time jobs is greater than
300the total was 12 months prior to that date, as demonstrated to
301the department by a business located in the enterprise zone.
302     Section 5.  Paragraphs (a) and (b) of subsection (1) and
303subsections (2), (7), and (9) of section 220.181, Florida
304Statutes, are amended to read:
305     220.181  Enterprise zone job stimulus jobs credit.-
306     (1)(a)  There shall be allowed a credit against the tax
307imposed by this chapter to any business located in an enterprise
308zone that employs one or more new employees which demonstrates
309to the department that, on the date of application, the total
310number of full-time jobs is greater than the total was 12 months
311prior to that date. The credit shall be computed as 20 percent
312of the actual monthly wages paid in this state to each new
313employee hired when a new job has been created, as defined under
314s. 220.03(1)(ee), unless the business is located in a rural
315enterprise zone, pursuant to s. 290.004(6), in which case the
316credit shall be 30 percent of the actual monthly wages paid. If
317no less than 20 percent of the employees of the business are
318residents of an enterprise zone, excluding temporary and part-
319time employees, the credit shall be computed as 30 percent of
320the actual monthly wages paid in this state to each new employee
321hired when a new job has been created, unless the business is
322located in a rural enterprise zone, in which case the credit
323shall be 45 percent of the actual monthly wages paid, for a
324period of up to 24 consecutive months. If the new employee hired
325when a new job is created is a participant in the welfare
326transition program, the following credit shall be a percent of
327the actual monthly wages paid: 40 percent for $4 above the
328hourly federal minimum wage rate; 41 percent for $5 above the
329hourly federal minimum wage rate; 42 percent for $6 above the
330hourly federal minimum wage rate; 43 percent for $7 above the
331hourly federal minimum wage rate; and 44 percent for $8 above
332the hourly federal minimum wage rate.
333     (b)  This credit applies only with respect to wages subject
334to unemployment tax. The credit provided in this section does
335not apply:
336     1.  For any employee who is an owner, partner, or majority
337stockholder of an eligible business.
338     2.  For any new employee who is employed for any period
339less than 3 months.
340     3.  For any eligible business that terminates employees for
341the sole purpose of claiming the credit.
342     (2)  When filing for an enterprise zone job stimulus jobs
343credit, a business must file under oath with the governing body
344or enterprise zone development agency having jurisdiction over
345the enterprise zone where the business is located, as
346applicable, a statement which includes:
347     (a)  For each new employee for whom this credit is claimed,
348the employee's name and place of residence during the taxable
349year, including the identifying number assigned pursuant to s.
350290.0065 to the enterprise zone in which the new employee
351resides if the new employee is a person residing in an
352enterprise zone, and, if applicable, documentation that the
353employee is a welfare transition program participant.
354     (b)  If applicable, the name and address of each permanent
355employee of the business, including, for each employee who is a
356resident of an enterprise zone, the identifying number assigned
357pursuant to s. 290.0065 to the enterprise zone in which the
358employee resides.
359     (c)  The name and address of the business.
360     (d)  The identifying number assigned pursuant to s.
361290.0065 to the enterprise zone in which the eligible business
362is located.
363     (e)  The salary or hourly wages paid to each new employee
364claimed.
365     (f)  Demonstration to the department that, on the date of
366application, the total number of full-time jobs is greater than
367the total was 12 months prior to that date.
368     (f)(g)  Whether the business is a small business as defined
369by s. 288.703(1).
370     (7)  Any business which has claimed this credit shall not
371be allowed any credit under the provision of s. 212.096 for any
372new employee beginning employment after July 1, 2010 1995. The
373provisions of this subsection shall not apply when a corporation
374converts to an S corporation for purposes of compliance with the
375Internal Revenue Code of 1986, as amended; however, no
376corporation shall be allowed the benefit of this credit and the
377credit under s. 212.096 either for the same new employee or for
378the same taxable year. In addition, such a corporation shall not
379be allowed any credit under s. 212.096 until it has filed notice
380of its intent to change its status for tax purposes and until
381its final return under this chapter for the taxable year prior
382to such change has been filed.
383     (9)  This section, except paragraph (1)(c) and subsection
384(8), expires on the date specified in s. 290.016 for the
385expiration of the Florida Enterprise Zone Act, and a business
386may not begin claiming the enterprise zone job stimulus jobs
387credit after that date; however, the expiration of this section
388does not affect the operation of any credit for which a business
389has qualified under this section before that date, or any
390carryforward of unused credit amounts as provided in paragraph
391(1)(c).
392     Section 6.  Section 290.00677, Florida Statutes, is amended
393to read:
394     290.00677  Rural enterprise zones; special qualifications.-
395     (1)  Notwithstanding the enterprise zone residency
396requirements set out in s. 212.096(1)(c), eligible businesses as
397defined by s. 212.096(1)(a), located in rural enterprise zones
398as defined by s. 290.004, may receive the basic minimum credit
399provided under s. 212.096 for creating a new job and hiring a
400person residing within the jurisdiction of a rural county, as
401defined by s. 288.106(1)(r). All other provisions of s. 212.096,
402including, but not limited to, those relating to the award of
403enhanced credits, apply to such businesses.
404     (2)  Notwithstanding the enterprise zone residency
405requirements set out in s. 220.03(1)(q), businesses as defined
406by s. 220.03(1)(c), located in rural enterprise zones as defined
407in s. 290.004, may receive the basic minimum credit provided
408under s. 220.181 for creating a new job and hiring a person
409residing within the jurisdiction of a rural county, as defined
410by s. 288.106(1)(r). All other provisions of s. 220.181,
411including, but not limited to, those relating to the award of
412enhanced credits apply to such businesses.
413     Section 7.  Subsections (1) and (7) of section 290.007,
414Florida Statutes, are amended to read:
415     290.007  State incentives available in enterprise zones.-
416The following incentives are provided by the state to encourage
417the revitalization of enterprise zones:
418     (1)  The enterprise zone job stimulus jobs credit provided
419in s. 220.181.
420     (7)  The enterprise zone job stimulus jobs credit against
421the sales tax provided in s. 212.096.
422     Section 8.  This act shall take effect July 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.