| 1 | The Economic Development, Trade & Banking Committee recommends |
| 2 | the following: |
| 3 |
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| 4 | Council/Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to enterprise zones; authorizing the |
| 8 | Office of Tourism, Trade, and Economic Development to |
| 9 | approve requests to amend enterprise zone boundaries; |
| 10 | providing amendment requirements; authorizing existing |
| 11 | enterprise zones to request recertification; providing |
| 12 | request requirements; amending s. 212.08, F.S.; revising |
| 13 | the definition of the term "business property"; amending |
| 14 | s. 290.016, F.S.; extending the expiration date of the |
| 15 | Florida Enterprise Zone Act of 1994; requiring the Office |
| 16 | of Program Policy Analysis and Government Accountability |
| 17 | to conduct a study of rural enterprise zone issues |
| 18 | relating to tax incentives and jobs creation; requiring a |
| 19 | report to the Legislature; providing an effective date. |
| 20 |
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| 21 | Be It Enacted by the Legislature of the State of Florida: |
| 22 |
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| 23 | Section 1. (1) Notwithstanding any provision of ss. |
| 24 | 290.001-290.016, Florida Statutes, the Office of Tourism, Trade, |
| 25 | and Economic Development may approve any request to amend the |
| 26 | boundaries of an enterprise zone created or recertified after |
| 27 | September 1, 2005. Boundary amendments authorized pursuant to |
| 28 | this subsection are subject to the following requirements: |
| 29 | (a) The amendment shall not increase the overall size of |
| 30 | the zone beyond 20 square miles. |
| 31 | (b) The amendment shall be consistent with the rationale |
| 32 | for the establishment of the enterprise zone as provided in s. |
| 33 | 290.0058. |
| 34 | (c) The local enterprise zone development agency shall |
| 35 | request the amendment from the Office of Tourism, Trade, and |
| 36 | Economic Development. The request must contain maps and |
| 37 | sufficient information to allow the office to determine the |
| 38 | number of noncontiguous areas and the total enterprise zone |
| 39 | size. The request must also contain the justification for |
| 40 | changing the existing enterprise zone boundaries. |
| 41 | (d) The office shall have 30 days to review and act upon |
| 42 | the boundary amendment request. |
| 43 | (2) All enterprise zones existing as of December 31, 2004, |
| 44 | may submit a letter requesting recertification of the existing |
| 45 | enterprise zone to the Office of Tourism, Trade, and Economic |
| 46 | Development by September 1, 2005. No reasonable request for |
| 47 | recertification shall be denied. Such request shall include: |
| 48 | (a) A description of the progress made within the zone as |
| 49 | measured against the existing strategic plan. |
| 50 | (b) A map of the zone. |
| 51 | (c) A statement of the goals for the next calendar year, |
| 52 | including, but not limited to, the number of new jobs, housing |
| 53 | starts, and infrastructure projects and new capital investment. |
| 54 | (d) A narrative description of the zone with address |
| 55 | ranges. |
| 56 | Section 2. Paragraph (h) of subsection (5) of section |
| 57 | 212.08, Florida Statutes, is amended to read: |
| 58 | 212.08 Sales, rental, use, consumption, distribution, and |
| 59 | storage tax; specified exemptions.--The sale at retail, the |
| 60 | rental, the use, the consumption, the distribution, and the |
| 61 | storage to be used or consumed in this state of the following |
| 62 | are hereby specifically exempt from the tax imposed by this |
| 63 | chapter. |
| 64 | (5) EXEMPTIONS; ACCOUNT OF USE.-- |
| 65 | (h) Business property used in an enterprise zone.-- |
| 66 | 1. Business property purchased for use by businesses |
| 67 | located in an enterprise zone which is subsequently used in an |
| 68 | enterprise zone shall be exempt from the tax imposed by this |
| 69 | chapter. This exemption inures to the business only through a |
| 70 | refund of previously paid taxes. A refund shall be authorized |
| 71 | upon an affirmative showing by the taxpayer to the satisfaction |
| 72 | of the department that the requirements of this paragraph have |
| 73 | been met. |
| 74 | 2. To receive a refund, the business must file under oath |
| 75 | with the governing body or enterprise zone development agency |
| 76 | having jurisdiction over the enterprise zone where the business |
| 77 | is located, as applicable, an application which includes: |
| 78 | a. The name and address of the business claiming the |
| 79 | refund. |
| 80 | b. The identifying number assigned pursuant to s. 290.0065 |
| 81 | to the enterprise zone in which the business is located. |
| 82 | c. A specific description of the property for which a |
| 83 | refund is sought, including its serial number or other permanent |
| 84 | identification number. |
| 85 | d. The location of the property. |
| 86 | e. The sales invoice or other proof of purchase of the |
| 87 | property, showing the amount of sales tax paid, the date of |
| 88 | purchase, and the name and address of the sales tax dealer from |
| 89 | whom the property was purchased. |
| 90 | f. Whether the business is a small business as defined by |
| 91 | s. 288.703(1). |
| 92 | g. If applicable, the name and address of each permanent |
| 93 | employee of the business, including, for each employee who is a |
| 94 | resident of an enterprise zone, the identifying number assigned |
| 95 | pursuant to s. 290.0065 to the enterprise zone in which the |
| 96 | employee resides. |
| 97 | 3. Within 10 working days after receipt of an application, |
| 98 | the governing body or enterprise zone development agency shall |
| 99 | review the application to determine if it contains all the |
| 100 | information required pursuant to subparagraph 2. and meets the |
| 101 | criteria set out in this paragraph. The governing body or agency |
| 102 | shall certify all applications that contain the information |
| 103 | required pursuant to subparagraph 2. and meet the criteria set |
| 104 | out in this paragraph as eligible to receive a refund. If |
| 105 | applicable, the governing body or agency shall also certify if |
| 106 | 20 percent of the employees of the business are residents of an |
| 107 | enterprise zone, excluding temporary and part-time employees. |
| 108 | The certification shall be in writing, and a copy of the |
| 109 | certification shall be transmitted to the executive director of |
| 110 | the Department of Revenue. The business shall be responsible for |
| 111 | forwarding a certified application to the department within the |
| 112 | time specified in subparagraph 4. |
| 113 | 4. An application for a refund pursuant to this paragraph |
| 114 | must be submitted to the department within 6 months after the |
| 115 | tax is due on the business property that is purchased. |
| 116 | 5. The provisions of s. 212.095 do not apply to any refund |
| 117 | application made pursuant to this paragraph. The amount refunded |
| 118 | on purchases of business property under this paragraph shall be |
| 119 | the lesser of 97 percent of the sales tax paid on such business |
| 120 | property or $5,000, or, if no less than 20 percent of the |
| 121 | employees of the business are residents of an enterprise zone, |
| 122 | excluding temporary and part-time employees, the amount refunded |
| 123 | on purchases of business property under this paragraph shall be |
| 124 | the lesser of 97 percent of the sales tax paid on such business |
| 125 | property or $10,000. A refund approved pursuant to this |
| 126 | paragraph shall be made within 30 days of formal approval by the |
| 127 | department of the application for the refund. No refund shall be |
| 128 | granted under this paragraph unless the amount to be refunded |
| 129 | exceeds $100 in sales tax paid on purchases made within a 60-day |
| 130 | time period. |
| 131 | 6. The department shall adopt rules governing the manner |
| 132 | and form of refund applications and may establish guidelines as |
| 133 | to the requisites for an affirmative showing of qualification |
| 134 | for exemption under this paragraph. |
| 135 | 7. If the department determines that the business property |
| 136 | is used outside an enterprise zone within 3 years from the date |
| 137 | of purchase, the amount of taxes refunded to the business |
| 138 | purchasing such business property shall immediately be due and |
| 139 | payable to the department by the business, together with the |
| 140 | appropriate interest and penalty, computed from the date of |
| 141 | purchase, in the manner provided by this chapter. |
| 142 | Notwithstanding this subparagraph, business property used |
| 143 | exclusively in: |
| 144 | a. Licensed commercial fishing vessels, |
| 145 | b. Fishing guide boats, or |
| 146 | c. Ecotourism guide boats |
| 147 |
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| 148 | that leave and return to a fixed location within an area |
| 149 | designated under s. 370.28 are eligible for the exemption |
| 150 | provided under this paragraph if all requirements of this |
| 151 | paragraph are met. Such vessels and boats must be owned by a |
| 152 | business that is eligible to receive the exemption provided |
| 153 | under this paragraph. This exemption does not apply to the |
| 154 | purchase of a vessel or boat. |
| 155 | 8. The department shall deduct an amount equal to 10 |
| 156 | percent of each refund granted under the provisions of this |
| 157 | paragraph from the amount transferred into the Local Government |
| 158 | Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 |
| 159 | for the county area in which the business property is located |
| 160 | and shall transfer that amount to the General Revenue Fund. |
| 161 | 9. For the purposes of this exemption, "business property" |
| 162 | means new or used property defined as "recovery property" in s. |
| 163 | 168(c) of the Internal Revenue Code of 1954, as amended, except: |
| 164 | a. Property classified as 3-year property under s. |
| 165 | 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended; |
| 166 | b. Industrial machinery and equipment as defined in sub- |
| 167 | subparagraph (b)6.a. and eligible for exemption under paragraph |
| 168 | (b); |
| 169 | c. Building materials as defined in sub-subparagraph |
| 170 | (g)8.a.; and |
| 171 | d. Business property having a sales price of under $500 |
| 172 | $5,000 per unit. |
| 173 | 10. The provisions of this paragraph shall expire and be |
| 174 | void on December 31, 2005. |
| 175 | Section 3. Section 290.016, Florida Statutes, is amended |
| 176 | to read: |
| 177 | 290.016 Repeal.--Sections 290.001-290.015 shall stand |
| 178 | repealed on December 31, 2015 2005. |
| 179 | Section 4. The Office of Program Policy Analysis and |
| 180 | Government Accountability shall conduct an evaluation of the tax |
| 181 | incentives available to rural enterprise zones and the |
| 182 | effectiveness of rural enterprise zones in creating jobs. In |
| 183 | particular, the evaluation must consider whether existing tax |
| 184 | and other financial incentives available under the Enterprise |
| 185 | Zone Act are appropriate for businesses located in rural |
| 186 | enterprise zones and whether incentives such as the transfer of |
| 187 | unused tax credits would enhance the effectiveness of rural |
| 188 | enterprise zones. The evaluation shall include an estimation of |
| 189 | the costs of new tax incentives. The evaluation shall also |
| 190 | identify obstacles faced by rural enterprise zones and recommend |
| 191 | possible solutions. The office shall conduct its evaluation and |
| 192 | make a report containing its findings and recommendations to the |
| 193 | President of the Senate and the Speaker of the House of |
| 194 | Representatives by December 1, 2005. |
| 195 | Section 5. This act shall take effect July 1, 2005. |