HB 953

1
A bill to be entitled
2An act relating to tax exemptions for building
3materials; amending s. 212.08, F.S.; providing that a
4copy of any valid permit issued by the county or
5municipal building department for rehabilitation of
6real property in an enterprise zone satisfies the
7requirement that a valid permit be included as part of
8an application for a refund of the sales and use tax
9on building materials; clarifying that the exemption
10for building materials used in an enterprise zone
11applies to the use tax and not just the sales tax;
12revising the definition of the term "building
13materials" to expand the scope of the sales or use tax
14exemption to include building materials that become a
15component part of housing project or mixed-use project
16developments; revising the definition of the term
17"housing project" to include the conversion of other
18buildings for purposes of redevelopment; revising the
19definition of the term "mixed-use project" to include
20the conversion of other buildings for purposes of
21redevelopment and expand the required square footage
22set aside by the developer to include certain housing
23construction in a designated brownfield area;
24clarifying that the exemption for building materials
25in redevelopment projects applies to the use tax and
26not just the sales tax; specifying that copies of
27other documents reflecting payment of the sales or use
28tax, not just invoices evidencing payment of the tax,
29satisfy certain requirements relating to the filing of
30an application for refund of sales or use tax paid on
31building materials in redevelopment projects;
32providing an effective date.
33
34Be It Enacted by the Legislature of the State of Florida:
35
36     Section 1.  Paragraphs (g) and (o) of subsection (5) of
37section 212.08, Florida Statutes, are amended to read:
38     212.08  Sales, rental, use, consumption, distribution, and
39storage tax; specified exemptions.-The sale at retail, the
40rental, the use, the consumption, the distribution, and the
41storage to be used or consumed in this state of the following
42are hereby specifically exempt from the tax imposed by this
43chapter.
44     (5)  EXEMPTIONS; ACCOUNT OF USE.-
45     (g)  Building materials used in the rehabilitation of real
46property located in an enterprise zone.-
47     1.  Building materials used in the rehabilitation of real
48property located in an enterprise zone are exempt from the tax
49imposed by this chapter upon an affirmative showing to the
50satisfaction of the department that the items have been used for
51the rehabilitation of real property located in an enterprise
52zone. Except as provided in subparagraph 2., this exemption
53inures to the owner, lessee, or lessor at the time the real
54property is rehabilitated, but only through a refund of
55previously paid taxes. To receive a refund pursuant to this
56paragraph, the owner, lessee, or lessor of the rehabilitated
57real property must file an application under oath with the
58governing body or enterprise zone development agency having
59jurisdiction over the enterprise zone where the business is
60located, as applicable. A single application for a refund may be
61submitted for multiple, contiguous parcels that were part of a
62single parcel that was divided as part of the rehabilitation of
63the property. All other requirements of this paragraph apply to
64each parcel on an individual basis. The application must
65include:
66     a.  The name and address of the person claiming the refund.
67     b.  An address and assessment roll parcel number of the
68rehabilitated real property for which a refund of previously
69paid taxes is being sought.
70     c.  A description of the improvements made to accomplish
71the rehabilitation of the real property.
72     d.  A copy of a valid building permit issued by the county
73or municipal building department for the rehabilitation of the
74real property.
75     e.  A sworn statement, under penalty of perjury, from the
76general contractor licensed in this state with whom the
77applicant contracted to make the improvements necessary to
78rehabilitate the real property, which lists the building
79materials used to rehabilitate the real property, the actual
80cost of the building materials, and the amount of sales or use
81tax paid in this state on the building materials. If a general
82contractor was not used, the applicant, not a general
83contractor, shall make the sworn statement required by this sub-
84subparagraph. Copies of the invoices that evidence the purchase
85of the building materials used in the rehabilitation and the
86payment of sales or use tax on the building materials must be
87attached to the sworn statement provided by the general
88contractor or by the applicant. Unless the actual cost of
89building materials used in the rehabilitation of real property
90and the payment of sales or use taxes is documented by a general
91contractor or by the applicant in this manner, the cost of the
92building materials is deemed to be an amount equal to 40 percent
93of the increase in assessed value for ad valorem tax purposes.
94     f.  The identifying number assigned pursuant to s. 290.0065
95to the enterprise zone in which the rehabilitated real property
96is located.
97     g.  A certification by the local building code inspector
98that the improvements necessary to rehabilitate the real
99property are substantially completed.
100     h.  A statement of whether the business is a small business
101as defined by s. 288.703.
102     i.  If applicable, the name and address of each permanent
103employee of the business, including, for each employee who is a
104resident of an enterprise zone, the identifying number assigned
105pursuant to s. 290.0065 to the enterprise zone in which the
106employee resides.
107     2.  This exemption inures to a municipality, county, other
108governmental unit or agency, or nonprofit community-based
109organization through a refund of previously paid taxes if the
110building materials used in the rehabilitation are paid for from
111the funds of a community development block grant, State Housing
112Initiatives Partnership Program, or similar grant or loan
113program. To receive a refund, a municipality, county, other
114governmental unit or agency, or nonprofit community-based
115organization must file an application that includes the same
116information required in subparagraph 1. In addition, the
117application must include a sworn statement signed by the chief
118executive officer of the municipality, county, other
119governmental unit or agency, or nonprofit community-based
120organization seeking a refund which states that the building
121materials for which a refund is sought were funded by a
122community development block grant, State Housing Initiatives
123Partnership Program, or similar grant or loan program.
124     3.  Within 10 working days after receipt of an application,
125the governing body or enterprise zone development agency shall
126review the application to determine if it contains all the
127information required by subparagraph 1. or subparagraph 2. and
128meets the criteria set out in this paragraph. The governing body
129or agency shall certify all applications that contain the
130required information and are eligible to receive a refund. If
131applicable, the governing body or agency shall also certify if
13220 percent of the employees of the business are residents of an
133enterprise zone, excluding temporary and part-time employees.
134The certification must be in writing, and a copy of the
135certification shall be transmitted to the executive director of
136the department. The applicant is responsible for forwarding a
137certified application to the department within the time
138specified in subparagraph 4.
139     4.  An application for a refund must be submitted to the
140department within 6 months after the rehabilitation of the
141property is deemed to be substantially completed by the local
142building code inspector or by November 1 after the rehabilitated
143property is first subject to assessment.
144     5.  Only one exemption through a refund of previously paid
145taxes for the rehabilitation of real property is permitted for
146any single parcel of property unless there is a change in
147ownership, a new lessor, or a new lessee of the real property. A
148refund may not be granted unless the amount to be refunded
149exceeds $500. A refund may not exceed the lesser of 97 percent
150of the Florida sales or use tax paid on the cost of the building
151materials used in the rehabilitation of the real property as
152determined pursuant to sub-subparagraph 1.e. or $5,000, or, if
153at least 20 percent of the employees of the business are
154residents of an enterprise zone, excluding temporary and part-
155time employees, the amount of refund may not exceed the lesser
156of 97 percent of the sales or use tax paid on the cost of the
157building materials or $10,000. A refund shall be made within 30
158days after formal approval by the department of the application
159for the refund.
160     6.  The department shall adopt rules governing the manner
161and form of refund applications and may establish guidelines as
162to the requisites for an affirmative showing of qualification
163for exemption under this paragraph.
164     7.  The department shall deduct an amount equal to 10
165percent of each refund granted under this paragraph from the
166amount transferred into the Local Government Half-cent Sales Tax
167Clearing Trust Fund pursuant to s. 212.20 for the county area in
168which the rehabilitated real property is located and shall
169transfer that amount to the General Revenue Fund.
170     8.  For the purposes of the exemption provided in this
171paragraph, the term:
172     a.  "Building materials" means tangible personal property
173that becomes a component part of improvements to real property.
174     b.  "Real property" has the same meaning as provided in s.
175192.001(12), except that the term does not include a condominium
176parcel or condominium property as defined in s. 718.103.
177     c.  "Rehabilitation of real property" means the
178reconstruction, renovation, restoration, rehabilitation,
179construction, or expansion of improvements to real property.
180     d.  "Substantially completed" has the same meaning as
181provided in s. 192.042(1).
182     9.  This paragraph expires on the date specified in s.
183290.016 for the expiration of the Florida Enterprise Zone Act.
184     (o)  Building materials in redevelopment projects.-
185     1.  As used in this paragraph, the term:
186     a.  "Building materials" means tangible personal property
187that becomes a component part of a housing project or a mixed-
188use project developments.
189     b.  "Housing project" means the conversion of an existing
190manufacturing, or industrial, or other building to housing units
191in an urban high-crime area, enterprise zone, empowerment zone,
192Front Porch Community, designated brownfield area, or urban
193infill area and in which the developer agrees to set aside at
194least 20 percent of the housing units in the project for low-
195income and moderate-income persons or the construction in a
196designated brownfield area of affordable housing for persons
197described in s. 420.0004(9), (11), (12), or (17) or in s.
198159.603(7).
199     c.  "Mixed-use project" means the conversion of an existing
200manufacturing, or industrial, or other building to mixed-use
201units that include artists' studios, art and entertainment
202services, or other compatible uses. A mixed-use project must be
203located in an urban high-crime area, enterprise zone,
204empowerment zone, Front Porch Community, designated brownfield
205area, or urban infill area, and the developer must agree to set
206aside at least 20 percent of the square footage of the project
207for low-income and moderate-income housing or the construction
208in a designated brownfield area of a mixed-use project housing
209for persons or occupants of units described in s. 420.0004(8),
210(10), (11), or (15) or s. 159.603(7).
211     d.  "Substantially completed" has the same meaning as
212provided in s. 192.042(1).
213     2.  Building materials used in the construction of a
214housing project or mixed-use project are exempt from the tax
215imposed by this chapter upon an affirmative showing to the
216satisfaction of the department that the requirements of this
217paragraph have been met. This exemption inures to the owner
218through a refund of previously paid taxes. To receive this
219refund, the owner must file an application under oath with the
220department which includes:
221     a.  The name and address of the owner.
222     b.  The address and assessment roll parcel number of the
223project for which a refund is sought.
224     c.  A copy of the building permit issued for the project.
225     d.  A certification by the local building code inspector
226that the project is substantially completed.
227     e.  A sworn statement, under penalty of perjury, from the
228general contractor licensed in this state with whom the owner
229contracted to construct the project, which statement lists the
230building materials used in the construction of the project and
231the actual cost thereof, and the amount of sales or use tax paid
232on these materials. If a general contractor was not used, the
233owner shall provide this information in a sworn statement, under
234penalty of perjury. Copies of invoices evidencing or other
235documents reflecting payment of sales or use tax must be
236attached to the sworn statement.
237     3.  An application for a refund under this paragraph must
238be submitted to the department within 6 months after the date
239the project is deemed to be substantially completed by the local
240building code inspector. Within 30 working days after receipt of
241the application, the department shall determine if it meets the
242requirements of this paragraph. A refund approved pursuant to
243this paragraph shall be made within 30 days after formal
244approval of the application by the department.
245     4.  The department shall establish by rule an application
246form and criteria for establishing eligibility for exemption
247under this paragraph.
248     5.  The exemption shall apply to purchases of materials on
249or after July 1, 2000.
250     Section 2.  This act shall take effect July 1, 2012.


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