HB 287

1	A bill to be entitled
2	An act relating to economic development; amending s.
3	196.012, F.S.; revising the definitions of the terms "new
4	business" and "expansion of an existing business";
5	amending s. 196.1995, F.S.; authorizing the board of
6	county commissioners of a charter county to call and hold
7	a referendum to determine whether to grant economic
8	development ad valorem tax exemptions; revising the
9	language of ballot questions relating to the authority to
10	grant economic development tax exemptions; providing for
11	application of a provision limiting the calling of another
12	referendum within a certain time period; specifying
13	additional information that must be included in a written
14	application requesting adoption of an ordinance granting
15	an economic development ad valorem tax exemption;
16	specifying factors for a board of county commissioners or
17	governing authority of a municipality to consider when
18	deciding whether to approve or reject applications for
19	economic development tax exemptions; providing legislative
20	intent; limiting the allowable duration of an economic
21	development tax exemption granted by a county or municipal
22	ordinance; authorizing written tax exemption agreements
23	consistent with this act upon approval of a tax exemption
24	application; specifying that the written tax agreement
25	must require the applicant to report certain information
26	at a specific time before expiration of the exemption;
27	authorizing the board of county commissioners or the
28	governing authority of the municipality to revoke, in
29	whole or in part, the exemption under certain
30	circumstances; providing an effective date.
31
32	Be It Enacted by the Legislature of the State of Florida:
33
34	Section 1.  Subsections (15) and (16) of section 196.012,
35	Florida Statutes, are amended to read:
36	196.012  Definitions.-For the purpose of this chapter, the
37	following terms are defined as follows, except where the context
38	clearly indicates otherwise:
39	(15)  "New business" means:
40	(a)1.  A business or nonprofit organization starting
41	operations in the state that will create new, full-time jobs
42	that the board of county commissioners or the governing
43	authority of a municipality has determined are jobs that the
44	board or governing authority wishes to incentivize through ad
45	valorem tax exemptions granted in accordance with the
46	requirements of s. 196.1995; or establishing 10 or more jobs to
47	employ 10 or more full-time employees in this state, which
48	manufactures, processes, compounds, fabricates, or produces for
49	sale items of tangible personal property at a fixed location and
50	which comprises an industrial or manufacturing plant;
51	2.  A business establishing 25 or more jobs to employ 25 or
52	more full-time employees in this state, the sales factor of
53	which, as defined by s. 220.15(5), for the facility with respect
54	to which it requests an economic development ad valorem tax
55	exemption is less than 0.50 for each year the exemption is
56	claimed; or
57	3.  An office space in this state owned and used by a
58	corporation newly domiciled in this state; provided such office
59	space houses 50 or more full-time employees of such corporation;
60	provided that such business or office first begins operation on
61	a site clearly separate from any other commercial or industrial
62	operation owned by the same business.
63	(b)  Any business located in an enterprise zone or
64	brownfield area that first begins operation on a site clearly
65	separate from any other commercial or industrial operation owned
66	by the same business.
67	(b)(c)  A business that is situated on property annexed
68	into a municipality and that, at the time of the annexation, is
69	receiving an economic development ad valorem tax exemption from
70	the county under s. 196.1995.
71	(16)  "Expansion of an existing business" means the
72	expansion of an existing business or nonprofit organization,
73	other than its relocation to another community, that results in
74	a net increase of new, full-time jobs that the board or
75	governing authority wishes to incentivize through ad valorem tax
76	exemptions granted in accordance with the requirements of s.
77	196.1995:
78	(a)1.  A business establishing 10 or more jobs to employ 10
79	or more full-time employees in this state, which manufactures,
80	processes, compounds, fabricates, or produces for sale items of
81	tangible personal property at a fixed location and which
82	comprises an industrial or manufacturing plant; or
83	2.  A business establishing 25 or more jobs to employ 25 or
84	more full-time employees in this state, the sales factor of
85	which, as defined by s. 220.15(5), for the facility with respect
86	to which it requests an economic development ad valorem tax
87	exemption is less than 0.50 for each year the exemption is
88	claimed; provided that such business increases operations on a
89	site colocated with a commercial or industrial operation owned
90	by the same business, resulting in a net increase in employment
91	of not less than 10 percent or an increase in productive output
92	of not less than 10 percent.
93	(b)  Any business located in an enterprise zone or
94	brownfield area that increases operations on a site colocated
95	with a commercial or industrial operation owned by the same
96	business.
97	Section 2.  Section 196.1995, Florida Statutes, is amended
98	to read:
99	196.1995  Economic development ad valorem tax exemption.-
100	(1)  The board of county commissioners of any county or the
101	governing authority of any municipality shall call a referendum
102	within its total jurisdiction to determine whether its
103	respective jurisdiction may grant economic development ad
104	valorem tax exemptions under s. 3, Art. VII of the State
105	Constitution if:
106	(a)  The board of county commissioners of the county or the
107	governing authority of the municipality votes to hold such
108	referendum; or
109	(b)  The board of county commissioners of the county or the
110	governing authority of the municipality receives a petition
111	signed by 10 percent of the registered electors of its
112	respective jurisdiction, which petition calls for the holding of
113	such referendum; or
114	(c)  The board of county commissioners of a charter county
115	receives a petition or initiative signed by the required
116	percentage of registered electors in accordance with the
117	procedures established in the county's charter for the enactment
118	of ordinances or for approval of amendments of the charter,
119	including a county with a charter requiring signatures from less
120	than 10 percent of its registered electors, which petition or
121	initiative calls for the holding of such referendum.
122	(2)  The ballot question in such referendum shall be in
123	substantially the following form:
124
125	Shall the board of county commissioners of this county (or the
126	governing authority of this municipality, or both) be authorized
127	to grant, pursuant to s. 3, Art. VII of the State Constitution,
128	property tax exemptions to new businesses and expansions of
129	existing businesses that are expected to create new, full-time
130	jobs and have been evaluated as being of economic interest to
131	the community?
132
133	.... Yes-For authority to grant exemptions.
134	.... No-Against authority to grant exemptions.
135
136	(3)  The board of county commissioners or the governing
137	authority of the municipality that calls a referendum within its
138	total jurisdiction to determine whether its respective
139	jurisdiction may grant economic development ad valorem tax
140	exemptions may vote to limit the effect of the referendum to
141	authority to grant economic development tax exemptions for new
142	businesses and expansions of existing businesses located in an
143	enterprise zone or a brownfield area, as defined in s.
144	376.79(4). If an area nominated to be an enterprise zone
145	pursuant to s. 290.0055 has not yet been designated pursuant to
146	s. 290.0065, the board of county commissioners or the governing
147	authority of the municipality may call such referendum prior to
148	such designation; however, the authority to grant economic
149	development ad valorem tax exemptions does not apply until such
150	area is designated pursuant to s. 290.0065. The ballot question
151	in such referendum shall be in substantially the following form
152	and shall be used in lieu of the ballot question prescribed in
153	subsection (2):
154
155	Shall the board of county commissioners of this county (or the
156	governing authority of this municipality, or both) be authorized
157	to grant, pursuant to s. 3, Art. VII of the State Constitution,
158	property tax exemptions for new businesses and expansions of
159	existing businesses that which are located in an enterprise zone
160	or a brownfield area, are expected to create new, full-time
161	jobs, and have been evaluated as being of economic interest to
162	the community?
163
164	....Yes-For authority to grant exemptions.
165	....No-Against authority to grant exemptions.
166
167	(4)  A referendum pursuant to this section may be called
168	only once in any 12-month period. If a referendum is called or
169	held on or before the effective date of any amendment to this
170	section, the board of county commissioners does not need to call
171	or hold another referendum.
172	(5)  Upon a majority vote in favor of such authority, the
173	board of county commissioners or the governing authority of the
174	municipality, at its discretion, by ordinance may exempt from ad
175	valorem taxation up to 100 percent of the assessed value of all
176	improvements to real property made by or for the use of a new
177	business and of all tangible personal property of such new
178	business, or up to 100 percent of the assessed value of all
179	added improvements to real property made to facilitate the
180	expansion of an existing business and of the net increase in all
181	tangible personal property acquired to facilitate such expansion
182	of an existing business, provided that the improvements to real
183	property are made or the tangible personal property is added or
184	increased on or after the day the ordinance is adopted. However,
185	if the authority to grant exemptions is approved in a referendum
186	in which the ballot question contained in subsection (3) appears
187	on the ballot, the authority of the board of county
188	commissioners or the governing authority of the municipality to
189	grant exemptions is limited solely to new businesses and
190	expansions of existing businesses that are located in an
191	enterprise zone or brownfield area. Property acquired to replace
192	existing property shall not be considered to facilitate a
193	business expansion. The exemption applies only to taxes levied
194	by the respective unit of government granting the exemption. The
195	exemption does not apply, however, to taxes levied for the
196	payment of bonds or to taxes authorized by a vote of the
197	electors pursuant to s. 9(b) or s. 12, Art. VII of the State
198	Constitution. Any such exemption shall remain in effect for up
199	to 10 years with respect to any particular facility, regardless
200	of any change in the authority of the county or municipality to
201	grant such exemptions. The exemption shall not be prolonged or
202	extended by granting exemptions from additional taxes or by
203	virtue of any reorganization or sale of the business receiving
204	the exemption.
205	(6)  With respect to a new business as defined by s.
206	196.012(15)(b)(c), the municipality annexing the property on
207	which the business is situated may grant an economic development
208	ad valorem tax exemption under this section to that business for
209	a period that will expire upon the expiration of the exemption
210	granted by the county. If the county renews the exemption under
211	subsection (7), the municipality may also extend its exemption.
212	A municipal economic development ad valorem tax exemption
213	granted under this subsection may not extend beyond the duration
214	of the county exemption.
215	(7)  The authority to grant exemptions under this section
216	expires 10 years after the date such authority was approved in
217	an election, but such authority may be renewed for subsequent
218	10-year periods if each 10-year renewal is approved in a
219	referendum called and held pursuant to this section.
220	(8)  Any person, firm, or corporation which desires an
221	economic development ad valorem tax exemption shall, in the year
222	the exemption is desired to take effect, file a written
223	application on a form prescribed by the department with the
224	board of county commissioners or the governing authority of the
225	municipality, or both. The application shall request the
226	adoption of an ordinance granting the applicant an exemption
227	pursuant to this section and shall include the following
228	information:
229	(a)  The name and location of the new business or the
230	expansion of an existing business;
231	(b)  A description of the improvements to real property for
232	which an exemption is requested and the date of commencement of
233	construction of such improvements;
234	(c)  A description of the tangible personal property for
235	which an exemption is requested and the dates when such property
236	was or is to be purchased;
237	(d)  Proof, to the satisfaction of the board of county
238	commissioners or the governing authority of the municipality,
239	that the applicant is a new business or an expansion of an
240	existing business, as defined in s. 196.012(15) or (16);
241	(e)  The number of jobs the applicant expects to create
242	along with the average and median wage of the jobs and whether
243	the jobs are full-time or part-time;
244	(f)  The expected time schedule for job creation; and
245	(g)(e)  Other information deemed necessary by the
246	department.
247	(9)  Before it takes action on the application, the board
248	of county commissioners or the governing authority of the
249	municipality shall deliver a copy of the application to the
250	property appraiser of the county. After careful consideration,
251	the property appraiser shall report the following information to
252	the board of county commissioners or the governing authority of
253	the municipality:
254	(a)  The total revenue available to the county or
255	municipality for the current fiscal year from ad valorem tax
256	sources, or an estimate of such revenue if the actual total
257	revenue available cannot be determined;
258	(b)  Any revenue lost to the county or municipality for the
259	current fiscal year by virtue of exemptions previously granted
260	under this section, or an estimate of such revenue if the actual
261	revenue lost cannot be determined;
262	(c)  An estimate of the revenue which would be lost to the
263	county or municipality during the current fiscal year if the
264	exemption applied for were granted had the property for which
265	the exemption is requested otherwise been subject to taxation;
266	and
267	(d)  A determination as to whether the property for which
268	an exemption is requested is to be incorporated into a new
269	business or the expansion of an existing business, as defined in
270	s. 196.012(15) or (16), or into neither, which determination the
271	property appraiser shall also affix to the face of the
272	application. Upon the request of the property appraiser, the
273	department shall provide to him or her such information as it
274	may have available to assist in making such determination.
275	(10)  The board of county commissioners or the governing
276	authority of the municipality may consider any economically
277	related characteristics or criteria deemed necessary or
278	appropriate when exercising its discretion whether to approve or
279	reject an application for an exemption but, at a minimum, must
280	consider the following:
281	(a)  Total number of new jobs to be created by the
282	applicant.
283	(b)  Average wage and median wage of the new jobs.
284	(c)  Capital investment to be made by the applicant.
285	(d)  Whether the business or operation qualifies as an
286	industry that the board of county commissioners or the governing
287	authority of the municipality may target.
288	(e)  Environmental impact of the proposed business or
289	operation.
290	(f)  Extent to which the applicant intends to source its
291	supplies and materials within the applicable jurisdiction.
292
293	The Legislature intends to vest counties and municipalities with
294	as much discretion as legally permissible to determine which new
295	jobs should be incentivized through the granting of ad valorem
296	tax exemptions under this section.
297	(11)(10)  An ordinance granting an exemption under this
298	section shall be adopted in the same manner as any other
299	ordinance of the county or municipality and shall include the
300	following:
301	(a)  The name and address of the new business or expansion
302	of an existing business to which the exemption is granted;
303	(b)  The total amount of revenue available to the county or
304	municipality from ad valorem tax sources for the current fiscal
305	year, the total amount of revenue lost to the county or
306	municipality for the current fiscal year by virtue of economic
307	development ad valorem tax exemptions currently in effect, and
308	the estimated revenue loss to the county or municipality for the
309	current fiscal year attributable to the exemption of the
310	business named in the ordinance;
311	(c)  The period of time, not to exceed 10 years, for which
312	the exemption will remain in effect and the expiration date of
313	the exemption; and
314	(d)  A finding that the business named in the ordinance
315	meets the requirements of s. 196.012(15) or (16).
316	(12)  Upon approval of an application for a tax exemption
317	under this section, the board of county commissioners or the
318	governing authority of the municipality and the applicant may
319	enter into a written tax exemption agreement, which may include
320	performance criteria and must be consistent with the
321	requirements of this section or other applicable laws. The
322	agreement must require the applicant to report at a specific
323	time before the expiration of the exemption the actual number of
324	new, full-time jobs created and their actual average and median
325	wage. The agreement may provide the board of county
326	commissioners or the governing authority of the municipality
327	with authority to revoke, in whole or in part, the exemption if
328	the applicant fails to meet the expectations and representations
329	described in subsection (8).
330	Section 3.  This act shall take effect July 1, 2011.

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