Florida Senate - 2013 CS for SB 1394
By the Committee on Commerce and Tourism; and Senator Hukill
577-03853-13 20131394c1
1 A bill to be entitled
2 An act relating to motorsports entertainment
3 complexes; creating s. 212.094, F.S.; providing
4 definitions; providing an exemption from the sales and
5 use tax for building materials used in the
6 construction, reconstruction, expansion, or renovation
7 of certain certified motorsports entertainment
8 complexes through a refund of previously paid taxes;
9 providing procedures for applying for authority to
10 earn a tax refund; providing procedures for certifying
11 a refund for completed projects; providing procedures
12 for applying for a refund; providing audit authority
13 and procedures for recapturing refunds under specified
14 circumstances; providing rulemaking authority;
15 providing for specified reductions in certain local
16 government half-cent sales tax distributions; creating
17 s. 212.0943, F.S.; authorizing a motorsports
18 entertainment complex to apply for a tax refund of
19 sales and use taxes; limiting the expenditure of such
20 funds provided to a certified applicant to specified
21 public purposes; authorizing the Department of Revenue
22 to audit the expenditure of such funds and to pursue
23 recovery of improperly expended funds; creating s.
24 212.0944, F.S.; providing that a master developer of a
25 certified motorsports entertainment complex is
26 eligible for a sales tax refund of a specified
27 percentage of any increase in sales tax collections
28 within the complex over a specified base year;
29 providing procedures, requirements, and limitations
30 with respect to the acquisition and use of such tax
31 refunds; limiting the availability of such refunds to
32 a specified period; defining the term “master
33 developer”; authorizing the Department of Revenue to
34 audit the expenditure of such funds and to pursue
35 recovery of improperly expended funds; amending s.
36 212.20, F.S.; providing for a monthly distribution of
37 a specified amount of sales tax revenue to a facility
38 certified by the Department of Economic Opportunity as
39 a motorsports entertainment complex; providing that a
40 certified motorsports entertainment complex applicant
41 may not receive certain sales tax distributions in
42 excess of the expenditures the applicant has made for
43 specified public purposes; providing an effective
44 date.
45
46 Be It Enacted by the Legislature of the State of Florida:
47
48 Section 1. Section 212.094, Florida Statutes, is created to
49 read:
50 212.094 Motorsports entertainment complex; tax exemption
51 for building materials.—
52 (1) DEFINITIONS.—For the purposes of this section, the
53 term:
54 (a) “Building materials” means materials, equipment, and
55 tangible personal property that is used in or becomes a
56 component part in the construction, reconstruction, expansion,
57 or renovation of a motorsports entertainment complex.
58 (b) “Motorsports entertainment complex” means a complex
59 that includes a closed-course racing facility with at least
60 50,000 fixed seats, together with any themed, ancillary business
61 establishments and related mixed-use commercial development
62 under common beneficial ownership as of the date of application
63 under subsection (3).
64 (c) “Owner” means the beneficial owner or the master
65 developer, as defined in s. 212.0944(6), of the motorsports
66 entertainment complex.
67 (d) “Project” means the construction, reconstruction,
68 expansion, or renovation of a motorsports entertainment complex
69 during a specified 48-month period for a total cost of at least
70 $250 million incurred during the 48-month period. However, total
71 cost shall not include the cost of any property previously owned
72 or leased by the motorsports entertainment complex. For the
73 purposes of this paragraph, total cost shall include all
74 expenses incurred by the owner of a motorsports entertainment
75 complex in connection with the construction, reconstruction,
76 expansion, or renovation of a motorsports entertainment complex,
77 including, but not limited to:
78 1. The costs of constructing, installing, equipping, and
79 financing, including all obligations incurred for labor and
80 obligations to contractors, subcontractors, builders, and
81 materialmen.
82 2. The costs of architectural and engineering services,
83 including test borings, surveys, estimates, plans and
84 specifications, preliminary investigations, environmental
85 mitigation, and supervision of construction, as well as the
86 performance of all duties required by or consequent to the
87 construction, installation, and equipping.
88 3. The costs associated with the installation of fixtures
89 and equipment; surveys, including archaeological and
90 environmental surveys; site tests and inspections; subsurface
91 site work and excavation; filling, grading, paving, and
92 provisions for drainage, stormwater retention, and installation
93 of utilities, including water, sewer, sewage treatment, gas,
94 electricity, communications, and similar facilities; and offsite
95 construction of utility extensions to the boundaries of the
96 property.
97 (e) “Substantially completed” has the same meaning as
98 provided in s. 192.042(1).
99 (f) “Unit of local government” has the same meaning as
100 provided in s. 218.369.
101 (2) EXEMPTIONS; ACCOUNT OF USE.—
102 (a) Building materials used in a project that has been
103 certified by the Department of Economic Opportunity under
104 subsection (4) for the construction, reconstruction, expansion,
105 or renovation of a motorsports entertainment complex are exempt
106 from the state tax imposed by this chapter upon an affirmative
107 showing to the satisfaction of the Department of Economic
108 Opportunity that the items have been used for the construction,
109 reconstruction, expansion, or renovation of a motorsports
110 entertainment complex. This exemption inures to the owner of the
111 motorsports entertainment complex who applies for certification
112 under subsection (4) through a refund of previously paid state
113 tax. To receive a refund, the owner of the motorsports
114 entertainment complex must follow the procedures in this
115 section.
116 (b) If approved and certified under subsections (3) and
117 (4), an owner of a motorsports entertainment complex may apply
118 for a one-time nontransferable refund of sales tax paid for
119 building materials used in that project.
120 (c) The refund is not available unless ordinances that
121 recognize and commit to the funding provision in subsection (8)
122 for a specified project are enacted by a majority of the members
123 of the governing board of the county where the project is
124 located and a majority of the members of the governing board of
125 any municipality where the project is located. For purposes of
126 the funding provision in subsection (8), such a recognition and
127 commitment by ordinance is binding and irrevocable upon the
128 county and any municipality enacting the ordinance.
129 (3) APPLICATION.—
130 (a) In order to earn a tax refund, an owner of a
131 motorsports entertainment complex must first submit an
132 application to the Department of Economic Opportunity for
133 approval of a project before beginning construction,
134 reconstruction, expansion, or renovation. The application must
135 be filed by the date established by the Department of Economic
136 Opportunity. In addition to any information that the Department
137 of Economic Opportunity may require, the applicant must provide
138 a complete description of the project that demonstrates to the
139 Department of Economic Opportunity that the applicant is likely
140 to complete the requirements in this section. The applicant must
141 provide an affidavit certifying that all the information
142 contained in the application is true and correct. The applicant
143 must also provide the department with copies of the ordinances
144 required under paragraph (2)(c).
145 (b) Within 60 days after receipt of a completed
146 application, the Department of Economic Opportunity must issue a
147 notice of intent to deny or approve the project.
148 (4) CERTIFICATION.—Upon completion of a project, the owner
149 of the motorsports entertainment complex who received approval
150 for the project may apply to the Department of Economic
151 Opportunity for certification of a refund.
152 (a) The application must include:
153 1. The name and physical in-state address of the
154 motorsports entertainment complex.
155 2. A copy of the application and approval for the project.
156 3. An address and the applicable assessment roll parcel
157 numbers for the motorsports entertainment complex for which a
158 refund of previously paid taxes is being sought.
159 4. A copy of a valid building permit issued by the county
160 or municipal building department for construction,
161 reconstruction, expansion, or renovation of the motorsports
162 entertainment complex.
163 5. A sworn statement, under penalty of perjury, from the
164 general contractor licensed in this state with whom the
165 applicant contracted to construct, reconstruct, or renovate the
166 motorsports entertainment complex, which lists the building
167 materials used to construct, reconstruct, or renovate the
168 motorsports entertainment complex, the actual cost of the
169 building materials, and the amount of sales and use tax paid in
170 this state on the building materials. If a general contractor
171 was not used, the applicant, not a general contractor, must make
172 the sworn statement required under this subparagraph. Copies of
173 invoices that evidence the purchase of the building materials
174 used in the construction, reconstruction, or renovation of the
175 motorsports entertainment complex and the payment of sales and
176 use tax on the building materials must be attached to the sworn
177 statement provided by the general contractor or by the
178 applicant.
179 6. A certification by the local building code inspector
180 that the construction, reconstruction, expansion, or renovation
181 of the motorsports entertainment complex is substantially
182 complete.
183 7. A detailed accounting attested to by a certified public
184 accountant licensed in this state that the total amount expended
185 by the applicant towards the construction, reconstruction,
186 expansion, or renovation of the motorsports entertainment
187 complex during a 48-month period is greater than $250 million.
188 (b) Within 90 working days after receipt of an application
189 for certification, the Department of Economic Opportunity must
190 review the application to determine if it includes all the
191 information and meets all the criteria required under this
192 section. The department shall certify all applications that
193 contain the required information and are found to be eligible to
194 receive a refund under this section.
195 (5) REFUND.—An application for a refund must be submitted
196 to the department within 6 months after certification for the
197 refund is obtained under subsection (4).
198 (6) AUDIT AUTHORITY; RECAPTURE OF REFUNDS.—
199 (a) In addition to its existing audit and investigative
200 authority, the department may perform any additional financial
201 and technical audits and investigations, including examining the
202 accounts, books, and financial records of the tax refund
203 applicant, which are necessary for verifying the accuracy of the
204 refund request and to ensure compliance with this section. If
205 requested by the department, the Department of Economic
206 Opportunity must provide technical assistance for any technical
207 audits or examinations performed under this subsection.
208 (b) Grounds for forfeiture of previously claimed refunds
209 approved under this section exist if the department determines,
210 as a result of an audit or examination, or from information
211 received from the Department of Economic Opportunity, that a
212 taxpayer received tax refunds for which the taxpayer was not
213 entitled.
214 (c) The Department of Economic Opportunity may revoke or
215 modify a certification granting eligibility for a tax refund if
216 it finds that the taxpayer made a false statement or
217 representation in any application, record, report, plan, or
218 other document filed in an attempt to receive a tax refund under
219 this section. The Department of Economic Opportunity shall
220 immediately notify the department of any revoked or modified
221 orders affecting previously granted tax refunds.
222 (d) The department may assess an additional tax, penalty,
223 or interest pursuant to s. 95.091.
224 (7) RULES.—
225 (a) The Department of Economic Opportunity shall adopt
226 rules to administer this section, including rules relating to
227 application forms required under subsections (3) and (4), and
228 the application and certification procedures, guidelines, and
229 requirements necessary to administer this section.
230 (b) The department may adopt rules to administer this
231 section, including rules relating to the forms required to claim
232 a tax refund under this section, the requirements and basis for
233 establishing an entitlement to a refund, and the examination and
234 audit procedures required to administer this section.
235 (8) REDUCTIONS IN DISTRIBUTIONS.—The department shall
236 reduce by an amount equal to 10 percent of each refund granted
237 under this section the combined local government half-cent sales
238 tax to be distributed, pursuant to s. 218.61, to each unit of
239 local government that enacted ordinances pursuant to paragraph
240 (2)(c), and such reductions shall be prorated over a 12-month
241 period.
242 (a) For refunds issued pursuant to this section on or
243 before June 30 of a given calendar year, the reductions required
244 under this subsection shall begin in the first month of the
245 local fiscal year that follows such refund being issued.
246 (b) For refunds issued pursuant to this section after June
247 30 of a given calendar year, the reductions required under this
248 subsection shall begin in the first month of the second local
249 fiscal year that follows such refund being issued.
250 (c) An amount equal to the reductions required under this
251 subsection shall be transferred monthly from the Local
252 Government Half-cent Sales Tax Clearing Trust Fund to the
253 General Revenue Fund. Each affected unit of local government’s
254 share of the reduction shall be in proportion to that unit of
255 local government’s respective local government half-cent sales
256 tax distributions absent the provisions of this paragraph.
257 (d) Within 14 days after issuance of a refund pursuant to
258 this section, the department shall provide written notice to
259 each unit of local government subject to the reduced
260 distribution provisions of this subsection with the amounts and
261 timing of the forthcoming reductions in distributions.
262 Section 2. Section 212.0943, Florida Statutes, is created
263 to read:
264 212.0943 Motorsports entertainment complex; refund of
265 taxes.—
266 (1) Beginning July 1, 2013, a motorsports entertainment
267 complex as defined in s. 212.094(1) may apply for funds provided
268 under s. 212.20(6)(d)6.b.
269 (2) An applicant certified as a motorsports entertainment
270 complex under s. 212.094(4) may use funds provided under s.
271 212.20(6)(d)6.b. only for the following public purposes:
272 (a) Paying for the construction, reconstruction, expansion,
273 or renovation of a motorsports entertainment complex.
274 (b) Paying debt service reserve funds, arbitrage rebate
275 obligations, or other amounts payable with respect to bonds
276 issued for the construction, reconstruction, expansion, or
277 renovation of the motorsports entertainment complex or for the
278 reimbursement of such costs or the refinancing of bonds issued
279 for such purposes.
280 (c) Paying for construction, reconstruction, expansion, or
281 renovation of transportation or other infrastructure
282 improvements related to, necessary for, or appurtenant to the
283 motorsports entertainment complex, including, without
284 limitation, paying debt service reserve funds, arbitrage rebate
285 obligations, or other amounts payable with respect to bonds
286 issued for the construction, reconstruction, expansion, or
287 renovation of such transportation or other infrastructure
288 improvements, and for the reimbursement of such costs or the
289 refinancing of bonds issued for such purposes.
290 (d) Paying for programs of advertising and promotion of or
291 related to the motorsports entertainment complex or the
292 municipality in which the motorsports entertainment complex is
293 located, and the county if the motorsports entertainment complex
294 is located in an unincorporated area, if such programs of
295 advertising and promotion are designed to increase paid
296 attendance at the motorsports entertainment complex or increase
297 tourism in or promote the economic development of the community
298 in which the motorsports entertainment complex is located.
299 (3) As provided in s. 212.094(6), the department may audit
300 to verify that distributions pursuant to this section have been
301 expended as required. If the department determines that the
302 distributions have not been expended as required, it may pursue
303 recovery of such funds pursuant to the laws and rules governing
304 the assessment of taxes.
305 Section 3. Section 212.0944, Florida Statutes, is created
306 to read:
307 212.0944 Motorsports entertainment complex; escrow of
308 taxes.—
309 (1) The master developer of a motorsports entertainment
310 complex certified under s. 212.094(4) shall be eligible for a
311 refund of 50 percent of sales taxes imposed by this chapter on
312 any sales made within a certified motorsports entertainment
313 complex, as defined in s. 212.094(1), the amount of which
314 exceeds the total amount of sales tax collected and remitted by
315 the motorsports entertainment complex during the 12-month period
316 before the date of an application submitted under s. 212.094(3).
317 For purposes of this section, such 12-month period shall be
318 considered the base year.
319 (2) The measurement period shall be a 12-month period
320 starting with the first full month after the submission of the
321 application under s. 212.094(3). During the 12-month measurement
322 period after the base year, any businesses within the
323 motorsports entertainment complex that collect sales tax on any
324 sales within the motorsports entertainment complex must file the
325 appropriate sales and use tax returns and remit the tax due
326 under applicable statutes. Within 60 days after the end of the
327 12-month measurement period, the master developer shall submit a
328 refund request, supported by the previously filed sales and use
329 tax returns for any businesses within the motorsports
330 entertainment complex, for the incremental sales tax collected
331 and remitted related to any sales within the motorsports
332 entertainment complex for the 12-month measurement period as
333 compared to the base year, with such refund payment made within
334 60 days to the master developer. The refund provided in this
335 section shall be available only to the master developer and only
336 by a refund of previously paid tax and shall be provided upon an
337 affirmative showing to the satisfaction of the Department of
338 Economic Opportunity that the requirements of this section have
339 been met.
340 (3) The master developer shall require each tenant, lessee,
341 or other third party within the motorsports entertainment
342 complex to provide the master developer all documents, returns,
343 or other information necessary to verify the amount of sales tax
344 eligible for the sales tax refund under this section.
345 (4) The tax refund provided under this section shall renew
346 each 12-month period for a total of 30 years and for each
347 subsequent 12-month measurement period, the sales and use tax
348 collected and remitted shall be compared to the sales and use
349 tax collected and remitted during the original base year.
350 (5) An applicant certified as a motorsports entertainment
351 complex may use funds provided under this section only for the
352 public purposes defined in s. 212.0943(2).
353 (6) As used in this section, the term “master developer”
354 means the primary developer of a motorsports entertainment
355 complex.
356 (7) As provided in s. 212.094(6), the department may audit
357 to verify that the distributions pursuant to this section have
358 been expended as required. If the department determines that the
359 distributions have not been expended as required, it may pursue
360 recovery of such funds pursuant to the laws and rules governing
361 the assessment of taxes.
362 Section 4. Paragraph (d) of subsection (6) of section
363 212.20, Florida Statutes, is amended to read:
364 212.20 Funds collected, disposition; additional powers of
365 department; operational expense; refund of taxes adjudicated
366 unconstitutionally collected.—
367 (6) Distribution of all proceeds under this chapter and s.
368 202.18(1)(b) and (2)(b) shall be as follows:
369 (d) The proceeds of all other taxes and fees imposed
370 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
371 and (2)(b) shall be distributed as follows:
372 1. In any fiscal year, the greater of $500 million, minus
373 an amount equal to 4.6 percent of the proceeds of the taxes
374 collected pursuant to chapter 201, or 5.2 percent of all other
375 taxes and fees imposed pursuant to this chapter or remitted
376 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
377 monthly installments into the General Revenue Fund.
378 2. After the distribution under subparagraph 1., 8.814
379 percent of the amount remitted by a sales tax dealer located
380 within a participating county pursuant to s. 218.61 shall be
381 transferred into the Local Government Half-cent Sales Tax
382 Clearing Trust Fund. Beginning July 1, 2003, the amount to be
383 transferred shall be reduced by 0.1 percent, and the department
384 shall distribute this amount to the Public Employees Relations
385 Commission Trust Fund less $5,000 each month, which shall be
386 added to the amount calculated in subparagraph 3. and
387 distributed accordingly.
388 3. After the distribution under subparagraphs 1. and 2.,
389 0.095 percent shall be transferred to the Local Government Half
390 cent Sales Tax Clearing Trust Fund and distributed pursuant to
391 s. 218.65.
392 4. After the distributions under subparagraphs 1., 2., and
393 3., 2.0440 percent of the available proceeds shall be
394 transferred monthly to the Revenue Sharing Trust Fund for
395 Counties pursuant to s. 218.215.
396 5. After the distributions under subparagraphs 1., 2., and
397 3., 1.3409 percent of the available proceeds shall be
398 transferred monthly to the Revenue Sharing Trust Fund for
399 Municipalities pursuant to s. 218.215. If the total revenue to
400 be distributed pursuant to this subparagraph is at least as
401 great as the amount due from the Revenue Sharing Trust Fund for
402 Municipalities and the former Municipal Financial Assistance
403 Trust Fund in state fiscal year 1999-2000, no municipality shall
404 receive less than the amount due from the Revenue Sharing Trust
405 Fund for Municipalities and the former Municipal Financial
406 Assistance Trust Fund in state fiscal year 1999-2000. If the
407 total proceeds to be distributed are less than the amount
408 received in combination from the Revenue Sharing Trust Fund for
409 Municipalities and the former Municipal Financial Assistance
410 Trust Fund in state fiscal year 1999-2000, each municipality
411 shall receive an amount proportionate to the amount it was due
412 in state fiscal year 1999-2000.
413 6. Of the remaining proceeds:
414 a. In each fiscal year, the sum of $29,915,500 shall be
415 divided into as many equal parts as there are counties in the
416 state, and one part shall be distributed to each county. The
417 distribution among the several counties must begin each fiscal
418 year on or before January 5th and continue monthly for a total
419 of 4 months. If a local or special law required that any moneys
420 accruing to a county in fiscal year 1999-2000 under the then
421 existing provisions of s. 550.135 be paid directly to the
422 district school board, special district, or a municipal
423 government, such payment must continue until the local or
424 special law is amended or repealed. The state covenants with
425 holders of bonds or other instruments of indebtedness issued by
426 local governments, special districts, or district school boards
427 before July 1, 2000, that it is not the intent of this
428 subparagraph to adversely affect the rights of those holders or
429 relieve local governments, special districts, or district school
430 boards of the duty to meet their obligations as a result of
431 previous pledges or assignments or trusts entered into which
432 obligated funds received from the distribution to county
433 governments under then-existing s. 550.135. This distribution
434 specifically is in lieu of funds distributed under s. 550.135
435 before July 1, 2000.
436 b. The department shall distribute $166,667 monthly
437 pursuant to s. 288.1162 to each applicant certified as a
438 facility for a new or retained professional sports franchise
439 pursuant to s. 288.1162. The department shall distribute
440 $166,667 monthly pursuant to s. 212.0943 to an applicant
441 certified as a motorsports entertainment complex under s.
442 212.094. Up to $41,667 shall be distributed monthly by the
443 department to each certified applicant as defined in s.
444 288.11621 for a facility for a spring training franchise.
445 However, not more than $416,670 may be distributed monthly in
446 the aggregate to all certified applicants for facilities for
447 spring training franchises. Distributions begin 60 days after
448 such certification and continue for not more than 30 years,
449 except as otherwise provided in s. 288.11621. A certified
450 applicant identified in this sub-subparagraph may not receive
451 more in distributions than expended by the applicant for the
452 public purposes provided for in s. 288.1162(5), or s.
453 288.11621(3), or s. 212.0943.
454 c. Beginning 30 days after notice by the Department of
455 Economic Opportunity to the Department of Revenue that an
456 applicant has been certified as the professional golf hall of
457 fame pursuant to s. 288.1168 and is open to the public, $166,667
458 shall be distributed monthly, for up to 300 months, to the
459 applicant.
460 d. Beginning 30 days after notice by the Department of
461 Economic Opportunity to the Department of Revenue that the
462 applicant has been certified as the International Game Fish
463 Association World Center facility pursuant to s. 288.1169, and
464 the facility is open to the public, $83,333 shall be distributed
465 monthly, for up to 168 months, to the applicant. This
466 distribution is subject to reduction pursuant to s. 288.1169. A
467 lump sum payment of $999,996 shall be made, after certification
468 and before July 1, 2000.
469 7. All other proceeds must remain in the General Revenue
470 Fund.
471 Section 5. This act shall take effect July 1, 2013.