| 1 | A bill to be entitled |
| 2 | An act relating to urban revitalization tax-free zones; |
| 3 | providing a popular name; defining the terms "business," |
| 4 | "tax-free zone," and "urban revitalization task force"; |
| 5 | providing criteria and procedures for the urban |
| 6 | revitalization tax-free zones pilot project; providing for |
| 7 | certain tax exemptions for businesses in such zones under |
| 8 | certain circumstances; requiring businesses to apply to a |
| 9 | respective urban revitalization tax force for exemption |
| 10 | certification; providing procedures and requirements for |
| 11 | certification of exemption by such task forces; requiring |
| 12 | the Department of Revenue to issue tax exemption |
| 13 | certificates to businesses in such zones under certain |
| 14 | circumstances; providing exemption eligibility |
| 15 | requirements; providing an expiration date; creating the |
| 16 | Miami-Dade County and the Duval County Urban |
| 17 | Revitalization Task Forces; providing for membership and |
| 18 | duties; requiring reports; requiring review of the urban |
| 19 | revitalization tax-free zones pilot project by the Office |
| 20 | of Program Policy Analysis and Government Accountability; |
| 21 | providing review criteria; requiring a report to the |
| 22 | Legislature; providing for future repeal of the act; |
| 23 | providing an effective date. |
| 24 |
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| 25 | Be It Enacted by the Legislature of the State of Florida: |
| 26 |
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| 27 | Section 1. Popular name.--This act may be cited as the |
| 28 | "Urban Revitalization Tax-Free Zone Pilot Project Act." |
| 29 | Section 2. Definitions.--As used in this act, the term: |
| 30 | (1) "Business" shall have the same meaning as provided in |
| 31 | s. 212.02(2), Florida Statutes. |
| 32 | (2) "Tax-free zone" means an urban revitalization zone |
| 33 | that will allow qualified businesses certified by each |
| 34 | respective urban revitalization task force to be exempt from the |
| 35 | sales and use tax imposed pursuant to chapter 212, Florida |
| 36 | Statutes, and the excise tax on documents imposed pursuant to |
| 37 | chapter 201, Florida Statutes, within a portion of Miami-Dade |
| 38 | County, specifically the area bordered by Northwest 23rd Street |
| 39 | to the north, Northwest 5th Street to the south, Northeast First |
| 40 | Avenue to the east, and Northwest 8th Avenue to the west, and |
| 41 | within a portion of Duval County, specifically the area bordered |
| 42 | by A. Phillip Randolph Boulevard to the north, Tallyrand Road to |
| 43 | the south, Ninth Street to the west, and Union Street to the |
| 44 | east. |
| 45 | (3) "Urban revitalization task force" means a task force |
| 46 | created pursuant to this act that certifies businesses in each |
| 47 | tax-free zone for exemption from the excise tax on documents |
| 48 | imposed pursuant to chapter 201, Florida Statutes, and the sales |
| 49 | and use tax imposed pursuant to chapter 212, Florida Statutes. |
| 50 | Section 3. Urban revitalization tax-free zone; criteria; |
| 51 | procedures.-- |
| 52 | (1)(a) A business established on or after July 1, 2005, in |
| 53 | a tax-free zone shall receive an exemption from the excise tax |
| 54 | on documents imposed pursuant to chapter 201, Florida Statutes, |
| 55 | and the sales and use tax imposed pursuant to chapter 212, |
| 56 | Florida Statutes. In order for a business to receive a |
| 57 | certification exempting the business from the sales and use tax |
| 58 | and the excise tax on documents, the business must apply with |
| 59 | the respective jurisdictional urban revitalization task force |
| 60 | created pursuant to section 4 for certification to receive such |
| 61 | exemption. |
| 62 | (b) For a business established in a tax-fee zone on or |
| 63 | after July 1, 2005, the exemption shall be available for a |
| 64 | period not to exceed 10 years, beginning in the year in which |
| 65 | the business receives its initial certification from the |
| 66 | respective task force and continuing for the 10 years |
| 67 | immediately following such certification. For any business |
| 68 | established prior to July 1, 2005, the exemption shall be |
| 69 | available for a period not to exceed 5 years, beginning in the |
| 70 | year in which the business receives its initial certification |
| 71 | from the task force and continuing for the 5 years immediately |
| 72 | following such certification. |
| 73 | (c) To receive a certification for an exemption, a |
| 74 | business must file an application for certification with the |
| 75 | appropriate jurisdictional urban revitalization task force. The |
| 76 | application shall be filed no later than September 1 of the |
| 77 | preceding tax year in which the business is seeking an |
| 78 | exemption. The application shall be made on a form prescribed by |
| 79 | the task force and shall include separate descriptions of: |
| 80 | 1. Real and tangible personal property owned or leased by |
| 81 | the business prior to expansion, if any. |
| 82 | 2. Net new or additional real and tangible personal |
| 83 | property acquired to facilitate a new, expanded, or rebuilt |
| 84 | facility. |
| 85 | (d) The respective task force shall review the application |
| 86 | to determine whether the application contains all the |
| 87 | information required pursuant to this section and meets the |
| 88 | criteria specified in this section as well as criteria related |
| 89 | to comprehensive urban planning, neighborhood aesthetics and |
| 90 | compatibility, and maximization of economic development and job |
| 91 | creation opportunities. The respective task force shall certify |
| 92 | each business that submits an application that contains the |
| 93 | information required pursuant to this section and meets the |
| 94 | criteria specified in this section as eligible to receive an |
| 95 | exemption. The certification shall be in writing and a copy of |
| 96 | the certification shall be transmitted to the executive director |
| 97 | of the Department of Revenue within 10 days after approval of |
| 98 | the certification by the respective task force. |
| 99 | (2) The Department of Revenue shall issue a tax exemption |
| 100 | permit to each business holding an exemption certification |
| 101 | issued by the respective task force. |
| 102 | (3) In order to qualify for a tax exemption under this |
| 103 | act, a business must provide a statement that no less than 20 |
| 104 | percent of its employees are residents of the tax-free zone or |
| 105 | an enterprise zone located within the county in which the tax- |
| 106 | free zone is located. The business may be exempt from this 20- |
| 107 | percent requirement if the business is able to demonstrate just |
| 108 | cause to the respective task force. It shall be a condition |
| 109 | precedent to maintaining tax-exempt status that such employment |
| 110 | requirements be fulfilled throughout each year during the |
| 111 | respective 5-year or 10-year period of the exemption. The |
| 112 | statement shall set forth the name and place of residence of |
| 113 | each permanent employee on the last day of business of the tax |
| 114 | year for which the exemption is claimed or, if an employee is no |
| 115 | longer employed or eligible for the credit on that date, on the |
| 116 | last calendar day of the last full calendar month the employee |
| 117 | was employed or eligible for the credit at the relevant site. |
| 118 | (4) The provisions of this section shall expire and be |
| 119 | void on June 30, 2013, and no business shall be allowed to claim |
| 120 | the exemptions provided under this act after that date. |
| 121 | Section 4. Urban revitalization task forces; creation; |
| 122 | membership and duties.-- |
| 123 | (1) The Miami-Dade County Urban Revitalization Task Force |
| 124 | and the Duval County Urban Revitalization Task Force are |
| 125 | created. Each task force shall be composed of a business owner |
| 126 | operating within the tax-free zone, appointed by the Governor; a |
| 127 | resident residing within the tax-free zone, appointed by the |
| 128 | Governor; a member of the House of Representatives residing in |
| 129 | each respective tax-free zone, appointed by the Speaker of the |
| 130 | House of Representatives; a member of the Senate residing in |
| 131 | each respective tax-free zone, appointed by the President of the |
| 132 | Senate; in Miami-Dade County, a county commissioner appointed by |
| 133 | the county mayor and a city commissioner appointed by the Mayor |
| 134 | of Miami; in Duval County, a councilperson appointed by the |
| 135 | Mayor of Jacksonville and a councilperson appointed by the |
| 136 | president of the Jacksonville consolidated city council; and the |
| 137 | director of the Office of Tourism, Trade, and Economic |
| 138 | Development. The terms of office for task force members shall be |
| 139 | for 4 years each, except that members appointed by the Speaker |
| 140 | of the House of Representatives and the President of the Senate |
| 141 | shall serve for terms of 2 years each. A vacancy occurring |
| 142 | during a term shall be filled for the unexpired term in the same |
| 143 | manner as the original appointment. A task force member shall |
| 144 | receive no compensation for his or her services, but is entitled |
| 145 | to the necessary expenses, including travel expenses, as |
| 146 | provided in s. 112.061, Florida Statutes, incurred in the |
| 147 | discharge of his or her duties. Each task force member shall |
| 148 | hold office until a successor has been appointed and has |
| 149 | qualified. A certificate of the appointment or reappointment of |
| 150 | any task force member shall be filed with the Clerk of Miami- |
| 151 | Dade County or the Clerk of Duval County, respectively, and the |
| 152 | certificate is conclusive evidence of the due and proper |
| 153 | appointment of the task force member. The task force must meet |
| 154 | at least quarterly in order to review applications and make |
| 155 | determinations as to businesses eligible to attain tax-exempt |
| 156 | status. The task force shall vote and designate a chair and vice |
| 157 | chair. Members of each task force who are members of the |
| 158 | Legislature or city or county commissioners or council members |
| 159 | shall be ex officio nonvoting members. |
| 160 | (2) Subject to funding by the Miami-Dade County Commission |
| 161 | and the Duval County/Jacksonville City Council, respectively, |
| 162 | each task force may employ or designate an executive director, |
| 163 | technical experts, and such other agents and employees, |
| 164 | permanent and temporary, as the task force requires and |
| 165 | determine their qualifications, duties, and compensation. For |
| 166 | such legal services as the task force requires, each task force |
| 167 | may employ or retain its own counsel and legal staff. Each task |
| 168 | force authorized to transact business and exercise powers under |
| 169 | this act shall file with the Clerk of Miami-Dade County or the |
| 170 | Clerk of Duval County respectively, on or before March 31 of |
| 171 | each year, a report of its activities for the preceding fiscal |
| 172 | year, which report shall include a complete financial statement |
| 173 | setting forth its assets, liabilities, income, and operating |
| 174 | expenses as of the end of such fiscal year. At the time of |
| 175 | filing the report, each task force shall publish in a newspaper |
| 176 | of general circulation in the community a notice to the effect |
| 177 | that such report has been filed with the respective county or |
| 178 | county/city authority and is available for inspection during |
| 179 | business hours in the offices of the respective task force. |
| 180 | (3) Each task force shall submit a report of its |
| 181 | activities to the Governor, the Speaker of the House of |
| 182 | Representatives, and the President of the Senate by February 15 |
| 183 | of each year. |
| 184 | Section 5. Review of pilot project.--Prior to the 2015 |
| 185 | Regular Session of the Legislature, the Office of Program Policy |
| 186 | Analysis and Government Accountability shall review and evaluate |
| 187 | the effectiveness and viability of the urban revitalization tax- |
| 188 | free zones created under this act. The Office of Program Policy |
| 189 | Analysis and Government Accountability shall specifically |
| 190 | evaluate whether relief from the specified taxes caused or |
| 191 | induced new investment and development in the area; increased |
| 192 | the number of jobs created or retained in the area; caused or |
| 193 | induced the renovation, rehabilitation, restoration, |
| 194 | improvement, or new construction of businesses or housing within |
| 195 | the area; or contributed to the economic viability and |
| 196 | profitability of business and commerce located within the area. |
| 197 | The Office of Program Policy Analysis and Government |
| 198 | Accountability shall submit a report of its findings and |
| 199 | recommendations to the Speaker of the House of Representatives |
| 200 | and the President of the Senate no later than January 15, 2015. |
| 201 | Section 6. This act is repealed June 30, 2015, and any |
| 202 | designation made pursuant to this act shall be revoked on that |
| 203 | date. |
| 204 | Section 7. This act shall take effect January 1, 2006. |