HB 1533

1
A bill to be entitled
2An act relating to super enterprise zones; amending s.
3212.02, F.S.; defining the term "certified business" for
4purposes of a tax exemption provided to certain businesses
5located within a super enterprise zone; providing for
6future expiration; amending s. 212.08, F.S.; providing a
7tax exemption for certain property purchased for use or
8consumption by businesses in a super enterprise zone and
9for retail sales made by certified businesses in a super
10enterprise zone; providing an exception; specifying
11periods for applying the exemptions for certain
12businesses; providing for future expiration of the
13exemption; amending s. 290.0056, F.S.; providing
14additional responsibilities of an enterprise zone
15development agency relating to super enterprise zones;
16requiring an economic impact report; providing for future
17expiration; amending s. 290.0057, F.S.; applying
18requirements for an enterprise zone development plan to
19super enterprise zones; creating s. 290.00681, F.S.;
20requiring the Office of Tourism, Trade, and Economic
21Development to designate specified areas in Miami-Dade,
22Lee, and Collier Counties as pilot project super
23enterprise zones for a certain period; providing
24qualification criteria; providing application
25requirements; providing for future expiration and
26revocation of the designations; creating s. 290.00682,
27F.S.; providing requirements for qualification as a
28certified business for purposes of the sales tax
29exemption; authorizing a local enterprise zone development
30agency to certify businesses; requiring the agency to
31provide lists of certified businesses; providing for
32disqualifying certified businesses under certain
33circumstances; providing for future expiration and
34revocation of certifications; amending s. 290.007, F.S.;
35specifying incentives for the revitalization of super
36enterprise zones; requiring interim and final reviews of
37super enterprise zones by the Office of Program Policy
38Analysis and Government Accountability; providing review
39criteria; requiring reports to the Legislature; providing
40an effective date.
41
42Be It Enacted by the Legislature of the State of Florida:
43
44     Section 1.  Subsection (34) is added to section 212.02,
45Florida Statutes, to read:
46     212.02  Definitions.-The following terms and phrases when
47used in this chapter have the meanings ascribed to them in this
48section, except where the context clearly indicates a different
49meaning:
50     (34)  "Certified business" means a business that is located
51in a super enterprise zone and that is certified under s.
52290.00682. This subsection expires June 30, 2023.
53     Section 2.  Subsection (19) is added to section 212.08,
54Florida Statutes, to read:
55     212.08  Sales, rental, use, consumption, distribution, and
56storage tax; specified exemptions.-The sale at retail, the
57rental, the use, the consumption, the distribution, and the
58storage to be used or consumed in this state of the following
59are hereby specifically exempt from the tax imposed by this
60chapter.
61     (19)  EXEMPTIONS; SUPER ENTERPRISE ZONES.-
62     (a)  The tax imposed by this chapter does not apply to:
63     1.  Tangible personal property purchased by a certified
64business for the exclusive use or consumption of that business
65within a super enterprise zone; or
66     2.  Retail sales of tangible personal property made by a
67certified business from a place of business that is owned or
68leased and operated by the business for the purpose of making
69retail sales and that is located in a super enterprise zone. The
70exemption provided by this subparagraph does not apply to the
71retail sale of any item having a price greater than $1,000. In
72order to qualify for the exemption under this subparagraph, the
73purchaser must take possession of the qualified item within the
74super enterprise zone or the qualified item must be shipped from
75inside the super enterprise zone; however, the item may be
76shipped to any location. For purposes of this section, each
77qualified sale made by a certified business that is located in a
78super enterprise zone shall be deemed to have occurred within
79the super enterprise zone regardless of where the transfer of
80title or possession takes place.
81     (b)  Notwithstanding paragraph (a), a new business
82established in a super enterprise zone and certified on or after
83July 1, 2011, pursuant to s. 290.00682, is eligible for the
84exemptions provided under this subsection for a period not to
85exceed 10 years immediately following such certification. For an
86existing business located in a super enterprise zone and
87certified on or after July 1, 2011, the exemptions provided
88under this subsection are available for a period not to exceed 5
89years, beginning in the year in which the business receives its
90initial certification and continuing for up to 5 years
91immediately following such certification.
92     (c)  This subsection expires June 30, 2023.
93     Section 3.  Paragraph (i) is added to subsection (8) of
94section 290.0056, Florida Statutes, present paragraph (f) of
95subsection (11) of that section is redesignated as paragraph
96(g), and a new paragraph (f) is added to that subsection, to
97read:
98     290.0056  Enterprise zone development agency.-
99     (8)  The enterprise zone development agency shall have the
100following powers and responsibilities:
101     (i)1.  To recommend and submit an application to the office
102for the designation of a super enterprise zone.
103     2.  To coordinate with the local governmental entity for
104the exemptions from the sales and use tax provided under s.
105212.08(19).
106
107Notwithstanding section 11 of chapter 2005-287, Laws of Florida,
108this paragraph expires June 30, 2023.
109     (11)  Prior to December 1 of each year, the agency shall
110submit to the Office of Tourism, Trade, and Economic Development
111a complete and detailed written report setting forth:
112     (f)  The economic impact of a super enterprise zone, if
113applicable, including:
114     1.  A list of each certified business and whether the
115business is new or where the business relocated from.
116     2.  The number of jobs created.
117     3.  The percentage of employees who are employed by
118certified businesses and who reside in the super enterprise zone
119or in an enterprise zone within the same county.
120     4.  The extent of capital investment by certified
121businesses within the zone.
122     5.  The success of the super enterprise zone as measured by
123the strategic plan and methods identified in s. 290.0057(1)(i).
124
125Notwithstanding section 11 of chapter 2005-287, Laws of Florida,
126this paragraph expires June 30, 2022.
127     Section 4.  Subsection (1) of section 290.0057, Florida
128Statutes, is amended to read:
129     290.0057  Enterprise zone development plan.-
130     (1)  Any application for designation as a new enterprise
131zone or super enterprise zone must be accompanied by a strategic
132plan adopted by the governing body of the municipality or
133county, or the governing bodies of the county and one or more
134municipalities together. At a minimum, the plan must:
135     (a)  Briefly describe the community's goals for
136revitalizing the area.
137     (b)  Describe the ways in which the community's approaches
138to economic development, social and human services,
139transportation, housing, community development, public safety,
140and educational and environmental concerns will be addressed in
141a coordinated fashion, and explain how these linkages support
142the community's goals.
143     (c)  Identify and describe key community goals and the
144barriers that restrict the community from achieving these goals,
145including a description of poverty and general distress,
146barriers to economic opportunity and development, and barriers
147to human development.
148     (d)  Describe the process by which the affected community
149is a full partner in the process of developing and implementing
150the plan and the extent to which local institutions and
151organizations have contributed to the planning process.
152     (e)  Commit the governing body or bodies to enact and
153maintain local fiscal and regulatory incentives, if approval for
154the area is received under s. 290.0065. These incentives may
155include the municipal public service tax exemption provided by
156s. 166.231, the economic development ad valorem tax exemption
157provided by s. 196.1995, the business tax exemption provided by
158s. 205.054, local impact fee abatement or reduction, or low-
159interest or interest-free loans or grants to businesses to
160encourage the revitalization of the nominated area.
161     (f)  Identify the amount of local and private resources
162that will be available in the nominated area and the private-
163public private/public partnerships to be used, which may include
164participation by, and cooperation with, universities, community
165colleges, small business development centers, black business
166investment corporations, certified development corporations, and
167other private and public entities.
168     (g)  Indicate how state enterprise zone tax incentives and
169state, local, and federal resources will be used utilized within
170the nominated area.
171     (h)  Identify the funding requested under any state or
172federal program in support of the proposed economic, human,
173community, and physical development and related activities.
174     (i)  Identify baselines, methods, and benchmarks for
175measuring the success of carrying out the strategic plan.
176     Section 5.  Sections 290.00681 and 290.00682, Florida
177Statutes, are created to read:
178     290.00681  Super enterprise zone pilot project;
179designation; future expiration and revocation.-
180     (1)  The Office of Tourism, Trade, and Economic Development
181shall designate six areas in the state as super enterprise zones
182for a 10-year period. These areas shall serve as a pilot project
183for this program. Specifically, the area in Miami-Dade County
184bordered by Northwest 23rd Street to the north, Northwest 5th
185Street to the south, Northeast 1st Avenue to the east, and
186Northwest 8th Avenue to the west; the area of Overtown in Miami-
187Dade County; the incorporated area of the City of Ft. Myers in
188Lee County; and the area of Immokalee in Collier County shall be
189designated as super enterprise zones. In order to qualify as a
190super enterprise zone, an area must:
191     (a)  Be located in an enterprise zone and be no larger than
1923 contiguous square miles.
193     (b)  Have an average unemployment rate four times greater
194than the state average.
195     (c)  Have a minimum of 40 percent of residents living below
196the federal poverty level.
197     (d)  Have general distress of business and residential
198property such that the local governing body by resolution has
199determined that the buildings are substandard, unsafe,
200unsanitary, dilapidated, or obsolete, or any combination of such
201conditions, and are detrimental to the safety, health, and
202welfare of the community.
203     (e)  Demonstrate evidence of significant job loss or
204dislocation in the area.
205
206In determining whether an area meets the criteria of this
207subsection for unemployment, poverty, and general distress, the
208office shall use data from the most current decennial census and
209from information published by the Bureau of the Census and the
210Bureau of Labor Statistics. The data shall be comparable in
211point or period of time and methodology employed.
212     (2)  Any application for designation as a super enterprise
213zone must:
214     (a)  Briefly describe the community's goals for
215revitalizing the area and include a development plan.
216     (b)  Describe the ways in which the community's approach to
217economic development, social and human services, transportation,
218housing, community development, public safety, and educational
219and environmental concerns will be addressed in a coordinated
220fashion and explain how these linkages support the community's
221goals.
222     (c)  Identify and describe key community goals and the
223barriers that restrict the community from achieving these goals.
224     (d)  Identify the amount of local and private support and
225resources that will be available.
226     (e)  Identify baselines, methods, and benchmarks for
227measuring success.
228     (f)  Include written approval from any associated county
229office and mayor's office.
230     (3)  This section expires June 30, 2023, and any
231designation made pursuant to this section shall be revoked on
232that date.
233     290.00682  Super enterprise zones; business certification.-
234     (1)  A certified business is eligible for the tax
235exemptions provided in s. 212.08(19). In order to qualify as a
236certified business, receive an exemption certificate, and
237continue to receive the tax exemptions provided in s.
238212.08(19), a business must:
239     (a)  File an application for certification with the local
240enterprise zone development agency. The application shall be
241filed no later than September 1 preceding the calendar year for
242which the business is seeking an exemption.
243     (b)  Operate and be located within a designated super
244enterprise zone.
245     (c)  Create new employment within the super enterprise zone
246while not causing unemployment elsewhere in the state.
247     (d)  Certify to the best of the business's knowledge that
248the business has no delinquent federal or state tax obligations.
249     (e)  Demonstrate that no fewer than 20 percent of its
250employees are residents of the designated super enterprise zone
251or an enterprise zone located within the same county. The
252employment requirement may be waived by the local enterprise
253zone development agency for good cause.
254     (2)  A local enterprise zone development agency may certify
255a business as eligible for the exemptions under s. 212.08(19)
256annually if the business meets the requirements in subsection
257(1). Each local enterprise zone development agency shall
258annually provide the local governmental entity, the office, and
259the Department of Revenue with a list of new and existing
260certified businesses. The Department of Revenue shall annually
261issue a tax exemption certificate to each business holding an
262exemption certificate issued by the local enterprise zone
263development agency. The certificate remains in effect for 1
264calendar year.
265     (3)  A local enterprise zone development agency may
266disqualify a certified business at any time if the business
267fails to meet the requirements of subsection (1). A business
268that makes a fraudulent claim under this section for tax
269exemptions provided in s. 212.08(19) is liable for the payment
270of the tax due, together with the penalties set forth in s.
271212.085, and as otherwise provided by law.
272     (4)  This section expires June 30, 2023, and any
273certification made pursuant to this section shall be revoked on
274that date.
275     Section 6.  Section 290.007, Florida Statutes, is amended
276to read:
277     290.007  State incentives available in enterprise zones and
278super enterprise zones.-
279     (1)  The following incentives are provided by the state to
280encourage the revitalization of enterprise zones:
281     (a)(1)  The enterprise zone jobs credit provided in s.
282220.181.
283     (b)(2)  The enterprise zone property tax credit provided in
284s. 220.182.
285     (c)(3)  The community contribution tax credits provided in
286ss. 212.08, 220.183, and 624.5105.
287     (d)(4)  The sales tax exemption for building materials used
288in the rehabilitation of real property in enterprise zones
289provided in s. 212.08(5)(g).
290     (e)(5)  The sales tax exemption for business equipment used
291in an enterprise zone provided in s. 212.08(5)(h).
292     (f)(6)  The sales tax exemption for electrical energy used
293in an enterprise zone provided in s. 212.08(15).
294     (g)(7)  The enterprise zone jobs credit against the sales
295tax provided in s. 212.096.
296     (h)(8)  Notwithstanding any law to the contrary, the Public
297Service Commission may allow public utilities and
298telecommunications companies to grant discounts of up to 50
299percent on tariffed rates for services to small businesses
300located in an enterprise zone designated pursuant to s.
301290.0065. Such discounts may be granted for a period not to
302exceed 5 years. For purposes of this paragraph subsection, the
303term "public utility" has the same meaning as in s. 366.02(1)
304and the term "telecommunications company" has the same meaning
305as in s. 364.02(14).
306     (2)  The following incentives are provided by the state to
307encourage the revitalization of super enterprise zones:
308     (a)  The sales tax exemption for certified businesses
309provided in s. 212.08(19)(a)1.
310     (b)  The sales tax exemption for retail sales by certified
311businesses provided in s. 212.08(19)(a)2.
312     Section 7.  Before the 2017 Regular Session of the
313Legislature, the Office of Program Policy Analysis and
314Government Accountability shall conduct an interim review and
315evaluation of the effectiveness and viability of the super
316enterprise zones designated under s. 290.00681, Florida
317Statutes. The office shall specifically evaluate whether relief
318from the specified taxes caused or induced new investment and
319development in the super enterprise zones; increased the number
320of jobs created or retained in the super enterprise zones;
321caused or induced the renovation, rehabilitation, restoration,
322improvement, or new construction of businesses or housing within
323the super enterprise zones; or contributed to the economic
324viability and profitability of business and commerce located
325within the super enterprise zones. The office shall submit a
326report of its findings and recommendations to the President of
327the Senate and the Speaker of the House of Representatives by
328December 1, 2016. In 2022, the office shall conduct a final
329review in accordance with this section and make a final report
330to the President of the Senate and the Speaker of the House of
331Representatives by December 1 of that year.
332     Section 8.  This act shall take effect July 1, 2010.


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