Florida Senate - 2014                                     SB 426
       By Senator Bullard
       39-00516B-14                                           2014426__
    1                        A bill to be entitled                      
    2         An act relating to food deserts; creating s. 220.197,
    3         F.S.; defining terms; providing an income tax credit
    4         for certain businesses that sell nutrient-dense food
    5         items in areas designated as food deserts; providing
    6         for the amount of the credit; requiring an
    7         application; requiring the Department of Revenue and
    8         the Department of Agriculture and Consumer Services to
    9         review and make recommendations to the Legislature
   10         regarding the continuation of the credit; providing
   11         penalties for fraudulent claims for the credit;
   12         authorizing rulemaking; providing applicability;
   13         providing an effective date.
   15  Be It Enacted by the Legislature of the State of Florida:
   17         Section 1. Section 220.197, Florida Statutes, is created to
   18  read:
   19         220.197 Tax credit for grocery businesses operating in food
   20  deserts.
   21         (1) As used in this section, the term:
   22         (a) “Food desert business” means a taxpayer that:
   23         1. Is in the trade or business of selling products at
   24  wholesale or retail and has total gross sales of less than $15
   25  million per year;
   26         2. Purchases at least 15 percent of its inventory from in
   27  state companies;
   28         3. Derives at least 20 percent of its gross receipts from
   29  the retail sale of nutrient-dense foods; and
   30         4. Operates the business in a food desert zone after July
   31  1, 2014.
   32         (b) “Food desert zone means a census tract that has been
   33  identified by the Economic Research Service of the United States
   34  Department of Agriculture as meeting the following criteria:
   35         1. The tract has a poverty rate of 20 percent or greater or
   36  has a median family income at or below 80 percent of the median
   37  family income for the state; and
   38         2. The tract has at least 500 persons or at least 33
   39  percent of the population of the tract lives more than 1 mile in
   40  an urban area, or 10 miles in a rural area, from a supermarket.
   41         (c) Nutrient-dense food” means a food that has high levels
   42  of nutrients in relationship to the number of calories the food
   43  contains. The term includes fresh vegetables and fruits, whole
   44  grains, nuts, seeds, beans and legumes, and low-fat dairy
   45  products.
   46         (d) “Supermarket” means a food store that has at least $2
   47  million in annual sales and contains all the major food
   48  departments found in a large retail grocery store.
   49         (2) Each food desert business is eligible for a tax credit
   50  of 20 percent of the annual gross sales of the business against
   51  its corporate annual income tax liability under this chapter,
   52  not to exceed the total state tax liability of the business
   53  under s. 220.11.
   54         (a) The credit provided shall be earned on the last day of
   55  each taxable year and may be claimed against the income tax for
   56  the taxable year that includes the day on which the credit is
   57  earned.
   58         (b) The credit earned under this section may not be sold or
   59  transferred.
   60         (c) If the credit earned under this section is not fully
   61  taken in any single year because of insufficient tax liability
   62  on the part of the business, the unused amount may be carried
   63  forward for up to 2 years.
   64         (3) In order to claim the tax credit under this section,
   65  the taxpayer must first submit an application and receive
   66  approval to claim the credit from the department.
   67         (4) The tax credit allowed pursuant to this section shall
   68  be reviewed by the department together with the Department of
   69  Agriculture and Consumer Services after it has been in place for
   70  3 taxable years. At such time, the departments shall make a
   71  recommendation to the Legislature for the elimination or
   72  continuance of the credit. Such recommendation shall be based on
   73  the success of the credit in bringing and maintaining food
   74  desert businesses in food desert zones.
   75         (5) A taxpayer that fraudulently claims to be qualified for
   76  the tax credits under this section commits a misdemeanor of the
   77  second degree, punishable as provided in s. 775.082 or s.
   78  775.083. The taxpayer is also administratively liable for
   79  repayment of a tax credit fraudulently taken plus a mandatory
   80  penalty of 100 percent of the tax credit plus interest at the
   81  rate provided under this chapter.
   82         (6) The department, in consultation with the Department of
   83  Agriculture and Consumer Services, shall adopt rules as
   84  necessary to administer this section. Such rules may identify
   85  the areas of the state designated as food deserts, provide an
   86  application process and forms for applying for the tax credit,
   87  and require the retention of records and the submission of
   88  specific documents by a taxpayer applying for and claiming the
   89  tax credit.
   90         (7) This section applies to taxable years beginning on or
   91  after January 1, 2015.
   92         Section 2. This act shall take effect July 1, 2014.