| 1 | A bill to be entitled |
| 2 | An act relating to enterprise zone business property use |
| 3 | tax exemption; amending s. 212.08, F.S.; revising refund |
| 4 | requirements for the exemption for certain business |
| 5 | property used in an enterprise zone; revising the |
| 6 | definition of "business property"; providing an effective |
| 7 | date. |
| 8 |
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| 9 | Be It Enacted by the Legislature of the State of Florida: |
| 10 |
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| 11 | Section 1. Paragraph (h) of subsection (5) of section |
| 12 | 212.08, Florida Statutes, is amended to read: |
| 13 | 212.08 Sales, rental, use, consumption, distribution, and |
| 14 | storage tax; specified exemptions.--The sale at retail, the |
| 15 | rental, the use, the consumption, the distribution, and the |
| 16 | storage to be used or consumed in this state of the following |
| 17 | are hereby specifically exempt from the tax imposed by this |
| 18 | chapter. |
| 19 | (5) EXEMPTIONS; ACCOUNT OF USE.-- |
| 20 | (h) Business property used in an enterprise zone.-- |
| 21 | 1. Business property purchased for use by businesses |
| 22 | located in an enterprise zone which is subsequently used in an |
| 23 | enterprise zone shall be exempt from the tax imposed by this |
| 24 | chapter. This exemption inures to the business only through a |
| 25 | refund of previously paid taxes. A refund shall be authorized |
| 26 | upon an affirmative showing by the taxpayer to the satisfaction |
| 27 | of the department that the requirements of this paragraph have |
| 28 | been met. |
| 29 | 2. To receive a refund, the business must file under oath |
| 30 | with the governing body or enterprise zone development agency |
| 31 | having jurisdiction over the enterprise zone where the business |
| 32 | is located, as applicable, an application which includes: |
| 33 | a. The name and address of the business claiming the |
| 34 | refund. |
| 35 | b. The identifying number assigned pursuant to s. 290.0065 |
| 36 | to the enterprise zone in which the business is located. |
| 37 | c. A specific description of the property for which a |
| 38 | refund is sought, including its serial number or other permanent |
| 39 | identification number. |
| 40 | d. The location of the property. |
| 41 | e. The sales invoice or other proof of purchase of the |
| 42 | property, showing the amount of sales tax paid, the date of |
| 43 | purchase, and the name and address of the sales tax dealer from |
| 44 | whom the property was purchased. |
| 45 | f. Whether the business is a small business as defined by |
| 46 | s. 288.703(1). |
| 47 | g. If applicable, the name and address of each permanent |
| 48 | employee of the business, including, for each employee who is a |
| 49 | resident of an enterprise zone, the identifying number assigned |
| 50 | pursuant to s. 290.0065 to the enterprise zone in which the |
| 51 | employee resides. |
| 52 | 3. Within 10 working days after receipt of an application, |
| 53 | the governing body or enterprise zone development agency shall |
| 54 | review the application to determine if it contains all the |
| 55 | information required pursuant to subparagraph 2. and meets the |
| 56 | criteria set out in this paragraph. The governing body or agency |
| 57 | shall certify all applications that contain the information |
| 58 | required pursuant to subparagraph 2. and meet the criteria set |
| 59 | out in this paragraph as eligible to receive a refund. If |
| 60 | applicable, the governing body or agency shall also certify if |
| 61 | 20 percent of the employees of the business are residents of an |
| 62 | enterprise zone, excluding temporary and part-time employees. |
| 63 | The certification shall be in writing, and a copy of the |
| 64 | certification shall be transmitted to the executive director of |
| 65 | the Department of Revenue. The business shall be responsible for |
| 66 | forwarding a certified application to the department within the |
| 67 | time specified in subparagraph 4. |
| 68 | 4. An application for a refund pursuant to this paragraph |
| 69 | must be submitted to the department within 6 months after the |
| 70 | tax is due on the business property that is purchased. |
| 71 | 5. The provisions of s. 212.095 do not apply to any refund |
| 72 | application made pursuant to this paragraph. The amount refunded |
| 73 | on purchases of business property under this paragraph shall be |
| 74 | the lesser of 97 percent of the sales tax paid on such business |
| 75 | property or $5,000, or, if no less than 20 percent of the |
| 76 | employees of the business are residents of an enterprise zone, |
| 77 | excluding temporary and part-time employees, the amount refunded |
| 78 | on purchases of business property under this paragraph shall be |
| 79 | the lesser of 97 percent of the sales tax paid on such business |
| 80 | property or $10,000. A refund approved pursuant to this |
| 81 | paragraph shall be made within 30 days of formal approval by the |
| 82 | department of the application for the refund. No refund shall be |
| 83 | granted under this paragraph unless the amount to be refunded |
| 84 | exceeds $300 $100 in sales tax paid on combined purchases made |
| 85 | within a 90-day 60-day time period. |
| 86 | 6. The department shall adopt rules governing the manner |
| 87 | and form of refund applications and may establish guidelines as |
| 88 | to the requisites for an affirmative showing of qualification |
| 89 | for exemption under this paragraph. |
| 90 | 7. If the department determines that the business property |
| 91 | is used outside an enterprise zone within 3 years from the date |
| 92 | of purchase, the amount of taxes refunded to the business |
| 93 | purchasing such business property shall immediately be due and |
| 94 | payable to the department by the business, together with the |
| 95 | appropriate interest and penalty, computed from the date of |
| 96 | purchase, in the manner provided by this chapter. |
| 97 | Notwithstanding this subparagraph, business property used |
| 98 | exclusively in: |
| 99 | a. Licensed commercial fishing vessels, |
| 100 | b. Fishing guide boats, or |
| 101 | c. Ecotourism guide boats |
| 102 |
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| 103 | that leave and return to a fixed location within an area |
| 104 | designated under s. 370.28 are eligible for the exemption |
| 105 | provided under this paragraph if all requirements of this |
| 106 | paragraph are met. Such vessels and boats must be owned by a |
| 107 | business that is eligible to receive the exemption provided |
| 108 | under this paragraph. This exemption does not apply to the |
| 109 | purchase of a vessel or boat. |
| 110 | 8. The department shall deduct an amount equal to 10 |
| 111 | percent of each refund granted under the provisions of this |
| 112 | paragraph from the amount transferred into the Local Government |
| 113 | Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 |
| 114 | for the county area in which the business property is located |
| 115 | and shall transfer that amount to the General Revenue Fund. |
| 116 | 9. For the purposes of this exemption, "business property" |
| 117 | means new or used property defined as "recovery property" in s. |
| 118 | 168(c) of the Internal Revenue Code of 1954, as amended, except: |
| 119 | a. Property classified as 3-year property under s. |
| 120 | 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended.; |
| 121 | b. Industrial machinery and equipment as defined in sub- |
| 122 | subparagraph (b)6.a. and eligible for exemption under paragraph |
| 123 | (b).; |
| 124 | c. Building materials as defined in sub-subparagraph |
| 125 | (g)8.a.; and |
| 126 | d. Business property having a sales price of under $5,000 |
| 127 | per unit. |
| 128 | 10. This paragraph expires on the date specified in s. |
| 129 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
| 130 | Section 2. This act shall take effect July 1, 2007. |