CS/CS/HB 287

1
A bill to be entitled
2An act relating to economic development; amending s.
3196.012, F.S.; revising the definitions of the terms "new
4business" and "expansion of an existing business";
5providing for an average wage of a new job; providing
6eligibility for target industry businesses; amending s.
7196.1995, F.S.; authorizing the board of county
8commissioners of a charter county to call and hold a
9referendum to determine whether to grant economic
10development ad valorem tax exemptions if in receipt of a
11petition or initiative signed by a percentage of electors
12as required by the county charter; revising the language
13of ballot questions relating to the authority to grant
14economic development tax exemptions; specifying additional
15information that must be included in a written application
16requesting adoption of an ordinance granting an economic
17development ad valorem tax exemption; specifying factors
18for a board of county commissioners or governing authority
19of a municipality to consider when deciding whether to
20approve or reject applications for economic development
21tax exemptions; limiting the allowable duration of an
22economic development tax exemption granted by a county or
23municipal ordinance; authorizing written tax exemption
24agreements consistent with this act upon approval of a tax
25exemption application; specifying that the written tax
26agreement must require the applicant to report certain
27information at a specific time before expiration of the
28exemption; authorizing the board of county commissioners
29or the governing authority of the municipality to revoke,
30in whole or in part, the exemption under certain
31circumstances; limiting application of the act to certain
32ad valorem tax exemptions granted pursuant to referenda
33held on or after the act's effective date; providing an
34effective date.
35
36Be It Enacted by the Legislature of the State of Florida:
37
38     Section 1.  Subsections (15) and (16) of section 196.012,
39Florida Statutes, are amended to read:
40     196.012  Definitions.-For the purpose of this chapter, the
41following terms are defined as follows, except where the context
42clearly indicates otherwise:
43     (15)  "New business" means:
44     (a)1.  A business or organization establishing 10 or more
45new jobs to employ 10 or more full-time employees in this state,
46paying an average wage for such new jobs that is above the
47average wage in the area, which principally engages in any one
48or more of the following operations: which
49     a.  Manufactures, processes, compounds, fabricates, or
50produces for sale items of tangible personal property at a fixed
51location and which comprises an industrial or manufacturing
52plant; or
53     b.  Is a target industry business as defined in s.
54288.106(2)(t);
55     2.  A business or organization establishing 25 or more new
56jobs to employ 25 or more full-time employees in this state, the
57sales factor of which, as defined by s. 220.15(5), for the
58facility with respect to which it requests an economic
59development ad valorem tax exemption is less than 0.50 for each
60year the exemption is claimed; or
61     3.  An office space in this state owned and used by a
62business or organization corporation newly domiciled in this
63state; provided such office space houses 50 or more full-time
64employees of such business or organization corporation; provided
65that such business or organization office first begins operation
66on a site clearly separate from any other commercial or
67industrial operation owned by the same business or organization.
68     (b)  Any business or organization located in an enterprise
69zone or brownfield area that first begins operation on a site
70clearly separate from any other commercial or industrial
71operation owned by the same business or organization.
72     (c)  A business or organization that is situated on
73property annexed into a municipality and that, at the time of
74the annexation, is receiving an economic development ad valorem
75tax exemption from the county under s. 196.1995.
76     (16)  "Expansion of an existing business" means:
77     (a)1.  A business or organization establishing 10 or more
78new jobs to employ 10 or more full-time employees in this state,
79paying an average wage for such new jobs that is above the
80average wage in the area, which principally engages in any of
81the operations referred to in subparagraph (15)(a)1. which
82manufactures, processes, compounds, fabricates, or produces for
83sale items of tangible personal property at a fixed location and
84which comprises an industrial or manufacturing plant; or
85     2.  A business or organization establishing 25 or more new
86jobs to employ 25 or more full-time employees in this state, the
87sales factor of which, as defined by s. 220.15(5), for the
88facility with respect to which it requests an economic
89development ad valorem tax exemption is less than 0.50 for each
90year the exemption is claimed; provided that such business
91increases operations on a site located within the same county,
92municipality, or both colocated with a commercial or industrial
93operation owned by the same business or organization under
94common control with the same business or organization, resulting
95in a net increase in employment of not less than 10 percent or
96an increase in productive output or sales of not less than 10
97percent.
98     (b)  Any business or organization located in an enterprise
99zone or brownfield area that increases operations on a site
100located within the same zone or area colocated with a commercial
101or industrial operation owned by the same business or
102organization under common control with the same business or
103organization.
104     Section 2.  Section 196.1995, Florida Statutes, is amended
105to read:
106     196.1995  Economic development ad valorem tax exemption.-
107     (1)  The board of county commissioners of any county or the
108governing authority of any municipality shall call a referendum
109within its total jurisdiction to determine whether its
110respective jurisdiction may grant economic development ad
111valorem tax exemptions under s. 3, Art. VII of the State
112Constitution if:
113     (a)  The board of county commissioners of the county or the
114governing authority of the municipality votes to hold such
115referendum; or
116     (b)  The board of county commissioners of the county or the
117governing authority of the municipality receives a petition
118signed by 10 percent of the registered electors of its
119respective jurisdiction, which petition calls for the holding of
120such referendum; or
121     (c)  The board of county commissioners of a charter county
122receives a petition or initiative signed by the required
123percentage of registered electors in accordance with the
124procedures established in the county's charter for the enactment
125of ordinances or for approval of amendments of the charter, if
126less than 10 percent, which petition or initiative calls for the
127holding of such referendum.
128     (2)  The ballot question in such referendum shall be in
129substantially the following form:
130
131Shall the board of county commissioners of this county (or the
132governing authority of this municipality, or both) be authorized
133to grant, pursuant to s. 3, Art. VII of the State Constitution,
134property tax exemptions to new businesses and expansions of
135existing businesses that are expected to create new, full-time
136jobs in the county (or municipality, or both)?
137
138     .... Yes-For authority to grant exemptions.
139     .... No-Against authority to grant exemptions.
140
141     (3)  The board of county commissioners or the governing
142authority of the municipality that calls a referendum within its
143total jurisdiction to determine whether its respective
144jurisdiction may grant economic development ad valorem tax
145exemptions may vote to limit the effect of the referendum to
146authority to grant economic development tax exemptions for new
147businesses and expansions of existing businesses located in an
148enterprise zone or a brownfield area, as defined in s.
149376.79(4). If an area nominated to be an enterprise zone
150pursuant to s. 290.0055 has not yet been designated pursuant to
151s. 290.0065, the board of county commissioners or the governing
152authority of the municipality may call such referendum prior to
153such designation; however, the authority to grant economic
154development ad valorem tax exemptions does not apply until such
155area is designated pursuant to s. 290.0065. The ballot question
156in such referendum shall be in substantially the following form
157and shall be used in lieu of the ballot question prescribed in
158subsection (2):
159
160Shall the board of county commissioners of this county (or the
161governing authority of this municipality, or both) be authorized
162to grant, pursuant to s. 3, Art. VII of the State Constitution,
163property tax exemptions for new businesses and expansions of
164existing businesses that which are located in an enterprise zone
165or a brownfield area and that are expected to create new, full-
166time jobs in the county (or municipality, or both)?
167
168     ....Yes-For authority to grant exemptions.
169     ....No-Against authority to grant exemptions.
170
171     (4)  A referendum pursuant to this section may be called
172only once in any 12-month period.
173     (5)  Upon a majority vote in favor of such authority, the
174board of county commissioners or the governing authority of the
175municipality, at its discretion, by ordinance may exempt from ad
176valorem taxation up to 100 percent of the assessed value of all
177improvements to real property made by or for the use of a new
178business and of all tangible personal property of such new
179business, or up to 100 percent of the assessed value of all
180added improvements to real property made to facilitate the
181expansion of an existing business and of the net increase in all
182tangible personal property acquired to facilitate such expansion
183of an existing business, provided that the improvements to real
184property are made or the tangible personal property is added or
185increased on or after the day the ordinance is adopted. However,
186if the authority to grant exemptions is approved in a referendum
187in which the ballot question contained in subsection (3) appears
188on the ballot, the authority of the board of county
189commissioners or the governing authority of the municipality to
190grant exemptions is limited solely to new businesses and
191expansions of existing businesses that are located in an
192enterprise zone or brownfield area. Property acquired to replace
193existing property shall not be considered to facilitate a
194business expansion. The exemption applies only to taxes levied
195by the respective unit of government granting the exemption. The
196exemption does not apply, however, to taxes levied for the
197payment of bonds or to taxes authorized by a vote of the
198electors pursuant to s. 9(b) or s. 12, Art. VII of the State
199Constitution. Any such exemption shall remain in effect for up
200to 10 years with respect to any particular facility, regardless
201of any change in the authority of the county or municipality to
202grant such exemptions. The exemption shall not be prolonged or
203extended by granting exemptions from additional taxes or by
204virtue of any reorganization or sale of the business receiving
205the exemption.
206     (6)  With respect to a new business as defined by s.
207196.012(15)(c), the municipality annexing the property on which
208the business is situated may grant an economic development ad
209valorem tax exemption under this section to that business for a
210period that will expire upon the expiration of the exemption
211granted by the county. If the county renews the exemption under
212subsection (7), the municipality may also extend its exemption.
213A municipal economic development ad valorem tax exemption
214granted under this subsection may not extend beyond the duration
215of the county exemption.
216     (7)  The authority to grant exemptions under this section
217expires 10 years after the date such authority was approved in
218an election, but such authority may be renewed for subsequent
21910-year periods if each 10-year renewal is approved in a
220referendum called and held pursuant to this section.
221     (8)  Any person, firm, or corporation which desires an
222economic development ad valorem tax exemption shall, in the year
223the exemption is desired to take effect, file a written
224application on a form prescribed by the department with the
225board of county commissioners or the governing authority of the
226municipality, or both. The application shall request the
227adoption of an ordinance granting the applicant an exemption
228pursuant to this section and shall include the following
229information:
230     (a)  The name and location of the new business or the
231expansion of an existing business;
232     (b)  A description of the improvements to real property for
233which an exemption is requested and the date of commencement of
234construction of such improvements;
235     (c)  A description of the tangible personal property for
236which an exemption is requested and the dates when such property
237was or is to be purchased;
238     (d)  Proof, to the satisfaction of the board of county
239commissioners or the governing authority of the municipality,
240that the applicant is a new business or an expansion of an
241existing business, as defined in s. 196.012(15) or (16); and
242     (e)  The number of jobs the applicant expects to create
243along with the average wage of the jobs and whether the jobs are
244full-time or part-time;
245     (f)  The expected time schedule for job creation; and
246     (g)(e)  Other information deemed necessary or appropriate
247by the department, county, or municipality.
248     (9)  Before it takes action on the application, the board
249of county commissioners or the governing authority of the
250municipality shall deliver a copy of the application to the
251property appraiser of the county. After careful consideration,
252the property appraiser shall report the following information to
253the board of county commissioners or the governing authority of
254the municipality:
255     (a)  The total revenue available to the county or
256municipality for the current fiscal year from ad valorem tax
257sources, or an estimate of such revenue if the actual total
258revenue available cannot be determined;
259     (b)  Any revenue lost to the county or municipality for the
260current fiscal year by virtue of exemptions previously granted
261under this section, or an estimate of such revenue if the actual
262revenue lost cannot be determined;
263     (c)  An estimate of the revenue which would be lost to the
264county or municipality during the current fiscal year if the
265exemption applied for were granted had the property for which
266the exemption is requested otherwise been subject to taxation;
267and
268     (d)  A determination as to whether the property for which
269an exemption is requested is to be incorporated into a new
270business or the expansion of an existing business, as defined in
271s. 196.012(15) or (16), or into neither, which determination the
272property appraiser shall also affix to the face of the
273application. Upon the request of the property appraiser, the
274department shall provide to him or her such information as it
275may have available to assist in making such determination.
276     (10)  In considering any application for an exemption under
277this section, the board of county commissioners or the governing
278authority of the municipality must take into account the
279following:
280     (a)  The total number of net new jobs to be created by the
281applicant;
282     (b)  The average wage of the new jobs;
283     (c)  The capital investment to be made by the applicant;
284     (d)  The type of business or operation and whether it
285qualifies as a targeted industry as may be identified from time
286to time by the board of county commissioners or the governing
287authority of the municipality;
288     (e)  The environmental impact of the proposed business or
289operation;
290     (f)  The extent to which the applicant intends to source
291its supplies and materials within the applicable jurisdiction;
292and
293     (g)  Any other economic-related characteristics or criteria
294deemed necessary by the board of county commissioners or the
295governing authority of the municipality.
296     (11)(10)  An ordinance granting an exemption under this
297section shall be adopted in the same manner as any other
298ordinance of the county or municipality and shall include the
299following:
300     (a)  The name and address of the new business or expansion
301of an existing business to which the exemption is granted;
302     (b)  The total amount of revenue available to the county or
303municipality from ad valorem tax sources for the current fiscal
304year, the total amount of revenue lost to the county or
305municipality for the current fiscal year by virtue of economic
306development ad valorem tax exemptions currently in effect, and
307the estimated revenue loss to the county or municipality for the
308current fiscal year attributable to the exemption of the
309business named in the ordinance;
310     (c)  The period of time for which the exemption will remain
311in effect and the expiration date of the exemption, which may be
312any period of time up to 10 years; and
313     (d)  A finding that the business named in the ordinance
314meets the requirements of s. 196.012(15) or (16).
315     (12)  Upon approval of an application for a tax exemption
316under this section, the board of county commissioners or the
317governing authority of the municipality and the applicant may
318enter into a written tax exemption agreement, which may include
319performance criteria and must be consistent with the
320requirements of this section or other applicable laws. The
321agreement must require the applicant to report at a specific
322time before the expiration of the exemption the actual number of
323new, full-time jobs created and their actual average wage. The
324agreement may provide the board of county commissioners or the
325governing authority of the municipality with authority to
326revoke, in whole or in part, the exemption if the applicant
327fails to meet the expectations and representations described in
328subsection (8).
329     Section 3.  This act shall take effect July 1, 2011, and
330shall apply only to exemptions from ad valorem taxation granted
331pursuant to referenda held on or after July 1, 2011, under the
332provisions of s. 196.1995(1), Florida Statutes.


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