1 | A bill to be entitled |
2 | An act relating to enterprise zone economic stimulus; |
3 | amending s. 212.08, F.S.; revising an exception to the |
4 | definition of the term "recovery property"; amending s. |
5 | 212.096, F.S.; renaming the enterprise zone jobs credit as |
6 | the enterprise zone job stimulus credit; conforming |
7 | definitions to changes made by the act; providing |
8 | additional legislative intent; authorizing the enterprise |
9 | zone job stimulus credit against the sales tax to be |
10 | applied to new employees hired; revising criteria for |
11 | claiming the credit; deleting the minimum threshold |
12 | requirement for full-time jobs required to claim the |
13 | credit; specifying an additional criterion for |
14 | nonapplication of the credit to eligible businesses; |
15 | amending s. 220.02, F.S.; conforming terminology to |
16 | changes made by the act; amending s. 220.03, F.S.; |
17 | conforming definitions to changes made by the act; |
18 | amending s. 220.181, F.S.; renaming the enterprise zone |
19 | jobs credit as the enterprise zone job stimulus credit; |
20 | authorizing the enterprise zone job stimulus credit |
21 | against the corporate income tax to be applied to new |
22 | employees hired; revising criteria for claiming the |
23 | credit; deleting the minimum threshold requirement for |
24 | full-time jobs required to claim the credit; amending s. |
25 | 290.00677, F.S., relating to rural enterprise zones; |
26 | conforming provisions to changes made by the act; amending |
27 | s. 290.007, F.S.; conforming terminology to changes made |
28 | by the act; providing an effective date. |
29 |
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30 | Be It Enacted by the Legislature of the State of Florida: |
31 |
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32 | Section 1. Paragraph (h) of subsection (5) of section |
33 | 212.08, Florida Statutes, is amended to read: |
34 | 212.08 Sales, rental, use, consumption, distribution, and |
35 | storage tax; specified exemptions.-The sale at retail, the |
36 | rental, the use, the consumption, the distribution, and the |
37 | storage to be used or consumed in this state of the following |
38 | are hereby specifically exempt from the tax imposed by this |
39 | chapter. |
40 | (5) EXEMPTIONS; ACCOUNT OF USE.- |
41 | (h) Business property used in an enterprise zone.- |
42 | 1. Business property purchased for use by businesses |
43 | located in an enterprise zone which is subsequently used in an |
44 | enterprise zone shall be exempt from the tax imposed by this |
45 | chapter. This exemption inures to the business only through a |
46 | refund of previously paid taxes. A refund shall be authorized |
47 | upon an affirmative showing by the taxpayer to the satisfaction |
48 | of the department that the requirements of this paragraph have |
49 | been met. |
50 | 2. To receive a refund, the business must file under oath |
51 | with the governing body or enterprise zone development agency |
52 | having jurisdiction over the enterprise zone where the business |
53 | is located, as applicable, an application which includes: |
54 | a. The name and address of the business claiming the |
55 | refund. |
56 | b. The identifying number assigned pursuant to s. 290.0065 |
57 | to the enterprise zone in which the business is located. |
58 | c. A specific description of the property for which a |
59 | refund is sought, including its serial number or other permanent |
60 | identification number. |
61 | d. The location of the property. |
62 | e. The sales invoice or other proof of purchase of the |
63 | property, showing the amount of sales tax paid, the date of |
64 | purchase, and the name and address of the sales tax dealer from |
65 | whom the property was purchased. |
66 | f. Whether the business is a small business as defined by |
67 | s. 288.703(1). |
68 | g. If applicable, the name and address of each permanent |
69 | employee of the business, including, for each employee who is a |
70 | resident of an enterprise zone, the identifying number assigned |
71 | pursuant to s. 290.0065 to the enterprise zone in which the |
72 | employee resides. |
73 | 3. Within 10 working days after receipt of an application, |
74 | the governing body or enterprise zone development agency shall |
75 | review the application to determine if it contains all the |
76 | information required pursuant to subparagraph 2. and meets the |
77 | criteria set out in this paragraph. The governing body or agency |
78 | shall certify all applications that contain the information |
79 | required pursuant to subparagraph 2. and meet the criteria set |
80 | out in this paragraph as eligible to receive a refund. If |
81 | applicable, the governing body or agency shall also certify if |
82 | 20 percent of the employees of the business are residents of an |
83 | enterprise zone, excluding temporary and part-time employees. |
84 | The certification shall be in writing, and a copy of the |
85 | certification shall be transmitted to the executive director of |
86 | the Department of Revenue. The business shall be responsible for |
87 | forwarding a certified application to the department within the |
88 | time specified in subparagraph 4. |
89 | 4. An application for a refund pursuant to this paragraph |
90 | must be submitted to the department within 6 months after the |
91 | tax is due on the business property that is purchased. |
92 | 5. The amount refunded on purchases of business property |
93 | under this paragraph shall be the lesser of 97 percent of the |
94 | sales tax paid on such business property or $5,000, or, if no |
95 | less than 20 percent of the employees of the business are |
96 | residents of an enterprise zone, excluding temporary and part- |
97 | time employees, the amount refunded on purchases of business |
98 | property under this paragraph shall be the lesser of 97 percent |
99 | of the sales tax paid on such business property or $10,000. A |
100 | refund approved pursuant to this paragraph shall be made within |
101 | 30 days of formal approval by the department of the application |
102 | for the refund. No refund shall be granted under this paragraph |
103 | unless the amount to be refunded exceeds $100 in sales tax paid |
104 | on purchases made within a 60-day time period. |
105 | 6. The department shall adopt rules governing the manner |
106 | and form of refund applications and may establish guidelines as |
107 | to the requisites for an affirmative showing of qualification |
108 | for exemption under this paragraph. |
109 | 7. If the department determines that the business property |
110 | is used outside an enterprise zone within 3 years from the date |
111 | of purchase, the amount of taxes refunded to the business |
112 | purchasing such business property shall immediately be due and |
113 | payable to the department by the business, together with the |
114 | appropriate interest and penalty, computed from the date of |
115 | purchase, in the manner provided by this chapter. |
116 | Notwithstanding this subparagraph, business property used |
117 | exclusively in: |
118 | a. Licensed commercial fishing vessels, |
119 | b. Fishing guide boats, or |
120 | c. Ecotourism guide boats |
121 |
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122 | that leave and return to a fixed location within an area |
123 | designated under s. 379.2353 are eligible for the exemption |
124 | provided under this paragraph if all requirements of this |
125 | paragraph are met. Such vessels and boats must be owned by a |
126 | business that is eligible to receive the exemption provided |
127 | under this paragraph. This exemption does not apply to the |
128 | purchase of a vessel or boat. |
129 | 8. The department shall deduct an amount equal to 10 |
130 | percent of each refund granted under the provisions of this |
131 | paragraph from the amount transferred into the Local Government |
132 | Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 |
133 | for the county area in which the business property is located |
134 | and shall transfer that amount to the General Revenue Fund. |
135 | 9. For the purposes of this exemption, "business property" |
136 | means new or used property defined as "recovery property" in s. |
137 | 168(c) of the Internal Revenue Code of 1954, as amended, except: |
138 | a. Property classified as 3-year property under s. |
139 | 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended; |
140 | b. Industrial machinery and equipment as defined in sub- |
141 | subparagraph (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. |
148 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
149 | Section 2. Paragraphs (a), (c), and (e) of subsection (1), |
150 | subsection (2), paragraphs (e) through (i) of subsection (3), |
151 | and subsection (9) of section 212.096, Florida Statutes, are |
152 | amended, and paragraph (c) is added to subsection (6) of that |
153 | section, to read: |
154 | 212.096 Sales, rental, storage, use tax; enterprise zone |
155 | job stimulus jobs credit against sales tax.- |
156 | (1) For the purposes of the credit provided in this |
157 | section: |
158 | (a) "Eligible business" means any sole proprietorship, |
159 | firm, partnership, corporation, bank, savings association, |
160 | estate, trust, business trust, receiver, syndicate, or other |
161 | group or combination, or successor business, located in an |
162 | enterprise zone. The business must demonstrate to the department |
163 | that, on the date of application, the total number of full-time |
164 | jobs defined under paragraph (d) is greater than the total was |
165 | 12 months prior to that date. An eligible business does not |
166 | include any business which has claimed the credit permitted |
167 | under s. 220.181 for any new business employee first beginning |
168 | employment with the business after July 1, 2010 1995. |
169 | (c) "New employee" means a person residing in an |
170 | enterprise zone or a participant in the welfare transition |
171 | program who begins employment with an eligible business after |
172 | July 1, 2010 1995, and who has not been previously employed full |
173 | time within the preceding 12 months by the eligible business, or |
174 | a successor eligible business, claiming the credit allowed by |
175 | this section. |
176 | (e) "New job has been created" means that, on the date of |
177 | application, the total number of full-time jobs is greater than |
178 | the total was 12 months prior to that date, as demonstrated to |
179 | the department by a business located in the enterprise zone. |
180 |
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181 | A person shall be deemed to be employed if the person performs |
182 | duties in connection with the operations of the business on a |
183 | regular, full-time basis, provided the person is performing such |
184 | duties for an average of at least 36 hours per week each month. |
185 | The person must be performing such duties at a business site |
186 | located in the enterprise zone. |
187 | (2)(a) It is the legislative intent to encourage the |
188 | provision of meaningful employment opportunities that will |
189 | improve the quality of life of those employed and to encourage |
190 | economic expansion of enterprise zones and the state. Upon an |
191 | affirmative showing by an eligible business to the satisfaction |
192 | of the department that the requirements of this section have |
193 | been met, the business shall be allowed a credit against the tax |
194 | remitted under this chapter. |
195 | (b) The credit shall be computed as 20 percent of the |
196 | actual monthly wages paid in this state to each new employee |
197 | hired when a new job has been created, unless the business is |
198 | located within a rural enterprise zone pursuant to s. |
199 | 290.004(6), in which case the credit shall be 30 percent of the |
200 | actual monthly wages paid. If no less than 20 percent of the |
201 | employees of the business are residents of an enterprise zone, |
202 | excluding temporary and part-time employees, the credit shall be |
203 | computed as 30 percent of the actual monthly wages paid in this |
204 | state to each new employee hired when a new job has been |
205 | created, unless the business is located within a rural |
206 | enterprise zone, in which case the credit shall be 45 percent of |
207 | the actual monthly wages paid. If the new employee hired when a |
208 | new job is created is a participant in the welfare transition |
209 | program, the following credit shall be a percent of the actual |
210 | monthly wages paid: 40 percent for $4 above the hourly federal |
211 | minimum wage rate; 41 percent for $5 above the hourly federal |
212 | minimum wage rate; 42 percent for $6 above the hourly federal |
213 | minimum wage rate; 43 percent for $7 above the hourly federal |
214 | minimum wage rate; and 44 percent for $8 above the hourly |
215 | federal minimum wage rate. For purposes of this paragraph, |
216 | monthly wages shall be computed as one-twelfth of the expected |
217 | annual wages paid to such employee. The amount paid as wages to |
218 | a new employee is the compensation paid to such employee that is |
219 | subject to unemployment tax. The credit shall be allowed for up |
220 | to 24 consecutive months, beginning with the first tax return |
221 | due pursuant to s. 212.11 after approval by the department. |
222 | (3) In order to claim this credit, an eligible business |
223 | must file under oath with the governing body or enterprise zone |
224 | development agency having jurisdiction over the enterprise zone |
225 | where the business is located, as applicable, a statement which |
226 | includes: |
227 | (e) Demonstration to the department that, on the date of |
228 | application, the total number of full-time jobs defined under |
229 | paragraph (1)(d) is greater than the total was 12 months prior |
230 | to that date. |
231 | (e)(f) The identifying number assigned pursuant to s. |
232 | 290.0065 to the enterprise zone in which the business is |
233 | located. |
234 | (f)(g) Whether the business is a small business as defined |
235 | by s. 288.703(1). |
236 | (g)(h) Within 10 working days after receipt of an |
237 | application, the governing body or enterprise zone development |
238 | agency shall review the application to determine if it contains |
239 | all the information required pursuant to this subsection and |
240 | meets the criteria set out in this section. The governing body |
241 | or agency shall certify all applications that contain the |
242 | information required pursuant to this subsection and meet the |
243 | criteria set out in this section as eligible to receive a |
244 | credit. If applicable, the governing body or agency shall also |
245 | certify if 20 percent of the employees of the business are |
246 | residents of an enterprise zone, excluding temporary and part- |
247 | time employees. The certification shall be in writing, and a |
248 | copy of the certification shall be transmitted to the executive |
249 | director of the Department of Revenue. The business shall be |
250 | responsible for forwarding a certified application to the |
251 | department within the time specified in paragraph (h) (i). |
252 | (h)(i) All applications for a credit pursuant to this |
253 | section must be submitted to the department within 6 months |
254 | after the new employee is hired, except applications for credit |
255 | for leased employees. Applications for credit for leased |
256 | employees must be submitted to the department within 7 months |
257 | after the employee is leased. |
258 | (6) The credit provided in this section does not apply: |
259 | (c) For any eligible business that terminates employees |
260 | for the sole purpose of claiming the credit. |
261 | (9) Any business which has claimed this credit shall not |
262 | be allowed any credit under the provisions of s. 220.181 for any |
263 | new employee beginning employment after July 1, 2010 1995. |
264 | Section 3. Paragraph (a) of subsection (6) of section |
265 | 220.02, Florida Statutes, is amended to read: |
266 | 220.02 Legislative intent.- |
267 | (6)(a) It is the intent of the Legislature that the |
268 | enterprise zone job stimulus jobs credit provided by s. 220.181 |
269 | be applicable only to those businesses located in an enterprise |
270 | zone. It is further the intent of the Legislature to provide an |
271 | incentive for the increased provision of employment |
272 | opportunities leading to the improvement of the quality of life |
273 | of those employed and the positive expansion of the economy of |
274 | the state as well as the economy of present enterprise zones. |
275 | Section 4. Paragraphs (q) and (ee) of subsection (1) of |
276 | section 220.03, Florida Statutes, are amended to read: |
277 | 220.03 Definitions.- |
278 | (1) SPECIFIC TERMS.-When used in this code, and when not |
279 | otherwise distinctly expressed or manifestly incompatible with |
280 | the intent thereof, the following terms shall have the following |
281 | meanings: |
282 | (q) "New employee," for the purposes of the enterprise |
283 | zone job stimulus jobs credit, means a person residing in an |
284 | enterprise zone or a participant in the welfare transition |
285 | program who is employed at a business located in an enterprise |
286 | zone who begins employment in the operations of the business |
287 | after July 1, 2010 1995, and who has not been previously |
288 | employed full time within the preceding 12 months by the |
289 | business or a successor business claiming the credit pursuant to |
290 | s. 220.181. A person shall be deemed to be employed by such a |
291 | business if the person performs duties in connection with the |
292 | operations of the business on a full-time basis, provided she or |
293 | he is performing such duties for an average of at least 36 hours |
294 | per week each month. The person must be performing such duties |
295 | at a business site located in an enterprise zone. This paragraph |
296 | expires on the date specified in s. 290.016 for the expiration |
297 | of the Florida Enterprise Zone Act. |
298 | (ee) "New job has been created" means that, on the date of |
299 | application, the total number of full-time jobs is greater than |
300 | the total was 12 months prior to that date, as demonstrated to |
301 | the department by a business located in the enterprise zone. |
302 | Section 5. Paragraphs (a) and (b) of subsection (1) and |
303 | subsections (2), (7), and (9) of section 220.181, Florida |
304 | Statutes, 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 |
307 | imposed by this chapter to any business located in an enterprise |
308 | zone that employs one or more new employees which demonstrates |
309 | to the department that, on the date of application, the total |
310 | number of full-time jobs is greater than the total was 12 months |
311 | prior to that date. The credit shall be computed as 20 percent |
312 | of the actual monthly wages paid in this state to each new |
313 | employee hired when a new job has been created, as defined under |
314 | s. 220.03(1)(ee), unless the business is located in a rural |
315 | enterprise zone, pursuant to s. 290.004(6), in which case the |
316 | credit shall be 30 percent of the actual monthly wages paid. If |
317 | no less than 20 percent of the employees of the business are |
318 | residents of an enterprise zone, excluding temporary and part- |
319 | time employees, the credit shall be computed as 30 percent of |
320 | the actual monthly wages paid in this state to each new employee |
321 | hired when a new job has been created, unless the business is |
322 | located in a rural enterprise zone, in which case the credit |
323 | shall be 45 percent of the actual monthly wages paid, for a |
324 | period of up to 24 consecutive months. If the new employee hired |
325 | when a new job is created is a participant in the welfare |
326 | transition program, the following credit shall be a percent of |
327 | the actual monthly wages paid: 40 percent for $4 above the |
328 | hourly federal minimum wage rate; 41 percent for $5 above the |
329 | hourly federal minimum wage rate; 42 percent for $6 above the |
330 | hourly federal minimum wage rate; 43 percent for $7 above the |
331 | hourly federal minimum wage rate; and 44 percent for $8 above |
332 | the hourly federal minimum wage rate. |
333 | (b) This credit applies only with respect to wages subject |
334 | to unemployment tax. The credit provided in this section does |
335 | not apply: |
336 | 1. For any employee who is an owner, partner, or majority |
337 | stockholder of an eligible business. |
338 | 2. For any new employee who is employed for any period |
339 | less than 3 months. |
340 | 3. For any eligible business that terminates employees for |
341 | the sole purpose of claiming the credit. |
342 | (2) When filing for an enterprise zone job stimulus jobs |
343 | credit, a business must file under oath with the governing body |
344 | or enterprise zone development agency having jurisdiction over |
345 | the enterprise zone where the business is located, as |
346 | applicable, a statement which includes: |
347 | (a) For each new employee for whom this credit is claimed, |
348 | the employee's name and place of residence during the taxable |
349 | year, including the identifying number assigned pursuant to s. |
350 | 290.0065 to the enterprise zone in which the new employee |
351 | resides if the new employee is a person residing in an |
352 | enterprise zone, and, if applicable, documentation that the |
353 | employee is a welfare transition program participant. |
354 | (b) If applicable, the name and address of each permanent |
355 | employee of the business, including, for each employee who is a |
356 | resident of an enterprise zone, the identifying number assigned |
357 | pursuant to s. 290.0065 to the enterprise zone in which the |
358 | employee resides. |
359 | (c) The name and address of the business. |
360 | (d) The identifying number assigned pursuant to s. |
361 | 290.0065 to the enterprise zone in which the eligible business |
362 | is located. |
363 | (e) The salary or hourly wages paid to each new employee |
364 | claimed. |
365 | (f) Demonstration to the department that, on the date of |
366 | application, the total number of full-time jobs is greater than |
367 | the total was 12 months prior to that date. |
368 | (f)(g) Whether the business is a small business as defined |
369 | by s. 288.703(1). |
370 | (7) Any business which has claimed this credit shall not |
371 | be allowed any credit under the provision of s. 212.096 for any |
372 | new employee beginning employment after July 1, 2010 1995. The |
373 | provisions of this subsection shall not apply when a corporation |
374 | converts to an S corporation for purposes of compliance with the |
375 | Internal Revenue Code of 1986, as amended; however, no |
376 | corporation shall be allowed the benefit of this credit and the |
377 | credit under s. 212.096 either for the same new employee or for |
378 | the same taxable year. In addition, such a corporation shall not |
379 | be allowed any credit under s. 212.096 until it has filed notice |
380 | of its intent to change its status for tax purposes and until |
381 | its final return under this chapter for the taxable year prior |
382 | to 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 |
385 | expiration of the Florida Enterprise Zone Act, and a business |
386 | may not begin claiming the enterprise zone job stimulus jobs |
387 | credit after that date; however, the expiration of this section |
388 | does not affect the operation of any credit for which a business |
389 | has qualified under this section before that date, or any |
390 | carryforward of unused credit amounts as provided in paragraph |
391 | (1)(c). |
392 | Section 6. Section 290.00677, Florida Statutes, is amended |
393 | to read: |
394 | 290.00677 Rural enterprise zones; special qualifications.- |
395 | (1) Notwithstanding the enterprise zone residency |
396 | requirements set out in s. 212.096(1)(c), eligible businesses as |
397 | defined by s. 212.096(1)(a), located in rural enterprise zones |
398 | as defined by s. 290.004, may receive the basic minimum credit |
399 | provided under s. 212.096 for creating a new job and hiring a |
400 | person residing within the jurisdiction of a rural county, as |
401 | defined by s. 288.106(1)(r). All other provisions of s. 212.096, |
402 | including, but not limited to, those relating to the award of |
403 | enhanced credits, apply to such businesses. |
404 | (2) Notwithstanding the enterprise zone residency |
405 | requirements set out in s. 220.03(1)(q), businesses as defined |
406 | by s. 220.03(1)(c), located in rural enterprise zones as defined |
407 | in s. 290.004, may receive the basic minimum credit provided |
408 | under s. 220.181 for creating a new job and hiring a person |
409 | residing within the jurisdiction of a rural county, as defined |
410 | by s. 288.106(1)(r). All other provisions of s. 220.181, |
411 | including, but not limited to, those relating to the award of |
412 | enhanced credits apply to such businesses. |
413 | Section 7. Subsections (1) and (7) of section 290.007, |
414 | Florida Statutes, are amended to read: |
415 | 290.007 State incentives available in enterprise zones.- |
416 | The following incentives are provided by the state to encourage |
417 | the revitalization of enterprise zones: |
418 | (1) The enterprise zone job stimulus jobs credit provided |
419 | in s. 220.181. |
420 | (7) The enterprise zone job stimulus jobs credit against |
421 | the sales tax provided in s. 212.096. |
422 | Section 8. This act shall take effect July 1, 2010. |