Florida Senate - 2012 SB 1616 By Senator Siplin 19-01443-12 20121616__ 1 A bill to be entitled 2 An act relating to tax exemptions for building 3 materials; amending s. 212.08, F.S.; providing that a 4 copy of any valid permit issued by the county or 5 municipal building department for rehabilitation of 6 real property in an enterprise zone satisfies the 7 requirement that a valid permit be included as part of 8 an application for a refund of the sales and use tax 9 on building materials; clarifying that the exemption 10 for building materials used in an enterprise zone 11 applies to the use tax and not just the sales tax; 12 revising the definition of the term “building 13 materials” to expand the scope of the sales or use tax 14 exemption to include building materials that become a 15 component part of housing project or mixed-use project 16 developments; revising the definition of the term 17 “housing project” to include the conversion of other 18 buildings for purposes of redevelopment; revising the 19 definition of the term “mixed-use project” to include 20 the conversion of other buildings for purposes of 21 redevelopment and expand the required square footage 22 set aside by the developer to include certain housing 23 construction in a designated brownfield area; 24 clarifying that the exemption for building materials 25 in redevelopment projects applies to the use tax and 26 not just the sales tax; specifying that copies of 27 other documents reflecting payment of the sales or use 28 tax, not just invoices evidencing payment of the tax, 29 satisfy certain requirements relating to the filing of 30 an application for refund of sales or use tax paid on 31 building materials in redevelopment projects; 32 providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Paragraphs (g) and (o) of subsection (5) of 37 section 212.08, Florida Statutes, are amended to read: 38 212.08 Sales, rental, use, consumption, distribution, and 39 storage tax; specified exemptions.—The sale at retail, the 40 rental, the use, the consumption, the distribution, and the 41 storage to be used or consumed in this state of the following 42 are hereby specifically exempt from the tax imposed by this 43 chapter. 44 (5) EXEMPTIONS; ACCOUNT OF USE.— 45 (g) Building materials used in the rehabilitation of real 46 property located in an enterprise zone.— 47 1. Building materials used in the rehabilitation of real 48 property located in an enterprise zone are exempt from the tax 49 imposed by this chapter upon an affirmative showing to the 50 satisfaction of the department that the items have been used for 51 the rehabilitation of real property located in an enterprise 52 zone. Except as provided in subparagraph 2., this exemption 53 inures to the owner, lessee, or lessor at the time the real 54 property is rehabilitated, but only through a refund of 55 previously paid taxes. To receive a refund pursuant to this 56 paragraph, the owner, lessee, or lessor of the rehabilitated 57 real property must file an application under oath with the 58 governing body or enterprise zone development agency having 59 jurisdiction over the enterprise zone where the business is 60 located, as applicable. A single application for a refund may be 61 submitted for multiple, contiguous parcels that were part of a 62 single parcel that was divided as part of the rehabilitation of 63 the property. All other requirements of this paragraph apply to 64 each parcel on an individual basis. The application must 65 include: 66 a. The name and address of the person claiming the refund. 67 b. An address and assessment roll parcel number of the 68 rehabilitated real property for which a refund of previously 69 paid taxes is being sought. 70 c. A description of the improvements made to accomplish the 71 rehabilitation of the real property. 72 d. A copy of a valid
buildingpermit issued by the county 73 or municipal building department for the rehabilitation of the 74 real property. 75 e. A sworn statement, under penalty of perjury, from the 76 general contractor licensed in this state with whom the 77 applicant contracted to make the improvements necessary to 78 rehabilitate the real property, which lists the building 79 materials used to rehabilitate the real property, the actual 80 cost of the building materials, and the amount of sales or use 81 tax paid in this state on the building materials. If a general 82 contractor was not used, the applicant, not a general 83 contractor, shall make the sworn statement required by this sub 84 subparagraph. Copies of the invoices that evidence the purchase 85 of the building materials used in the rehabilitation and the 86 payment of sales or use tax on the building materials must be 87 attached to the sworn statement provided by the general 88 contractor or by the applicant. Unless the actual cost of 89 building materials used in the rehabilitation of real property 90 and the payment of sales or use taxes is documented by a general 91 contractor or by the applicant in this manner, the cost of the 92 building materials is deemed to be an amount equal to 40 percent 93 of the increase in assessed value for ad valorem tax purposes. 94 f. The identifying number assigned pursuant to s. 290.0065 95 to the enterprise zone in which the rehabilitated real property 96 is located. 97 g. A certification by the local building code inspector 98 that the improvements necessary to rehabilitate the real 99 property are substantially completed. 100 h. A statement of whether the business is a small business 101 as defined by s. 288.703. 102 i. If applicable, the name and address of each permanent 103 employee of the business, including, for each employee who is a 104 resident of an enterprise zone, the identifying number assigned 105 pursuant to s. 290.0065 to the enterprise zone in which the 106 employee resides. 107 2. This exemption inures to a municipality, county, other 108 governmental unit or agency, or nonprofit community-based 109 organization through a refund of previously paid taxes if the 110 building materials used in the rehabilitation are paid for from 111 the funds of a community development block grant, State Housing 112 Initiatives Partnership Program, or similar grant or loan 113 program. To receive a refund, a municipality, county, other 114 governmental unit or agency, or nonprofit community-based 115 organization must file an application that includes the same 116 information required in subparagraph 1. In addition, the 117 application must include a sworn statement signed by the chief 118 executive officer of the municipality, county, other 119 governmental unit or agency, or nonprofit community-based 120 organization seeking a refund which states that the building 121 materials for which a refund is sought were funded by a 122 community development block grant, State Housing Initiatives 123 Partnership Program, or similar grant or loan program. 124 3. Within 10 working days after receipt of an application, 125 the governing body or enterprise zone development agency shall 126 review the application to determine if it contains all the 127 information required by subparagraph 1. or subparagraph 2. and 128 meets the criteria set out in this paragraph. The governing body 129 or agency shall certify all applications that contain the 130 required information and are eligible to receive a refund. If 131 applicable, the governing body or agency shall also certify if 132 20 percent of the employees of the business are residents of an 133 enterprise zone, excluding temporary and part-time employees. 134 The certification must be in writing, and a copy of the 135 certification shall be transmitted to the executive director of 136 the department. The applicant is responsible for forwarding a 137 certified application to the department within the time 138 specified in subparagraph 4. 139 4. An application for a refund must be submitted to the 140 department within 6 months after the rehabilitation of the 141 property is deemed to be substantially completed by the local 142 building code inspector or by November 1 after the rehabilitated 143 property is first subject to assessment. 144 5. Only one exemption through a refund of previously paid 145 taxes for the rehabilitation of real property is permitted for 146 any single parcel of property unless there is a change in 147 ownership, a new lessor, or a new lessee of the real property. A 148 refund may not be granted unless the amount to be refunded 149 exceeds $500. A refund may not exceed the lesser of 97 percent 150 of the Florida sales or use tax paid on the cost of the building 151 materials used in the rehabilitation of the real property as 152 determined pursuant to sub-subparagraph 1.e. or $5,000, or, if 153 at least 20 percent of the employees of the business are 154 residents of an enterprise zone, excluding temporary and part 155 time employees, the amount of refund may not exceed the lesser 156 of 97 percent of the sales or use tax paid on the cost of the 157 building materials or $10,000. A refund shall be made within 30 158 days after formal approval by the department of the application 159 for the refund. 160 6. The department shall adopt rules governing the manner 161 and form of refund applications and may establish guidelines as 162 to the requisites for an affirmative showing of qualification 163 for exemption under this paragraph. 164 7. The department shall deduct an amount equal to 10 165 percent of each refund granted under this paragraph from the 166 amount transferred into the Local Government Half-cent Sales Tax 167 Clearing Trust Fund pursuant to s. 212.20 for the county area in 168 which the rehabilitated real property is located and shall 169 transfer that amount to the General Revenue Fund. 170 8. For the purposes of the exemption provided in this 171 paragraph, the term: 172 a. “Building materials” means tangible personal property 173 that becomes a component part of improvements to real property. 174 b. “Real property” has the same meaning as provided in s. 175 192.001(12), except that the term does not include a condominium 176 parcel or condominium property as defined in s. 718.103. 177 c. “Rehabilitation of real property” means the 178 reconstruction, renovation, restoration, rehabilitation, 179 construction, or expansion of improvements to real property. 180 d. “Substantially completed” has the same meaning as 181 provided in s. 192.042(1). 182 9. This paragraph expires on the date specified in s. 183 290.016 for the expiration of the Florida Enterprise Zone Act. 184 (o) Building materials in redevelopment projects.— 185 1. As used in this paragraph, the term: 186 a. “Building materials” means tangible personal property 187 that becomes a component part of ahousing project or amixed 188 use project developments. 189 b. “Housing project” means the conversion of an existing 190 manufacturing, orindustrial, or other building to housing units 191 in an urban high-crime area, enterprise zone, empowerment zone, 192 Front Porch Community, designated brownfield area, or urban 193 infill area and in which the developer agrees to set aside at 194 least 20 percent of the housing units in the project for low 195 income and moderate-income persons or the construction in a 196 designated brownfield area of affordable housing for persons 197 described in s. 420.0004(9), (11), (12), or (17) or ins. 198 159.603(7). 199 c. “Mixed-use project” means the conversion of an existing 200 manufacturing, orindustrial, or other building to mixed-use 201 units that include artists’ studios, art and entertainment 202 services, or other compatible uses. A mixed-use project must be 203 located in an urban high-crime area, enterprise zone, 204 empowerment zone, Front Porch Community, designated brownfield 205 area, or urban infill area, and the developer must agree to set 206 aside at least 20 percent of the square footage of the project 207 for low-income and moderate-income housing or the construction 208 in a designated brownfield area of a mixed-use project housing 209 for persons or occupants of units described in s. 420.0004(8), 210 (10), (11), or (15) or s. 159.603(7). 211 d. “Substantially completed” has the same meaning as 212 provided in s. 192.042(1). 213 2. Building materials used in the construction of a housing 214 project or mixed-use project are exempt from the tax imposed by 215 this chapter upon an affirmative showing to the satisfaction of 216 the department that the requirements of this paragraph have been 217 met. This exemption inures to the owner through a refund of 218 previously paid taxes. To receive this refund, the owner must 219 file an application under oath with the department which 220 includes: 221 a. The name and address of the owner. 222 b. The address and assessment roll parcel number of the 223 project for which a refund is sought. 224 c. A copy of the building permit issued for the project. 225 d. A certification by the local building code inspector 226 that the project is substantially completed. 227 e. A sworn statement, under penalty of perjury, from the 228 general contractor licensed in this state with whom the owner 229 contracted to construct the project, which statement lists the 230 building materials used in the construction of the project and 231 the actual cost thereof, and the amount of sales or use tax paid 232 on these materials. If a general contractor was not used, the 233 owner shall provide this information in a sworn statement, under 234 penalty of perjury. Copies of invoices evidencing or other 235 documents reflecting payment of sales or use tax must be 236 attached to the sworn statement. 237 3. An application for a refund under this paragraph must be 238 submitted to the department within 6 months after the date the 239 project is deemed to be substantially completed by the local 240 building code inspector. Within 30 working days after receipt of 241 the application, the department shall determine if it meets the 242 requirements of this paragraph. A refund approved pursuant to 243 this paragraph shall be made within 30 days after formal 244 approval of the application by the department. 245 4. The department shall establish by rule an application 246 form and criteria for establishing eligibility for exemption 247 under this paragraph. 248 5. The exemption shall apply to purchases of materials on 249 or after July 1, 2000. 250 Section 2. This act shall take effect July 1, 2012.