Florida Senate - 2018                                     SB 916
       
       
        
       By Senator Grimsley
       
       
       
       
       
       26-00513A-18                                           2018916__
    1                        A bill to be entitled                      
    2         An act relating to ad valorem taxation; amending s.
    3         192.001, F.S.; defining the terms “heavy equipment
    4         rental property,” “dealer of heavy equipment rental
    5         property,” and “short-term rental,” and redefining the
    6         term “inventory,” for purposes of provisions relating
    7         to the imposition of ad valorem taxes; amending ss.
    8         112.312, 192.042, 212.08, 220.03, and 624.5105, F.S.;
    9         conforming cross-references; providing an effective
   10         date.
   11          
   12  Be It Enacted by the Legislature of the State of Florida:
   13  
   14         Section 1. Present subsections (8) through (19) of section
   15  192.001, Florida Statutes, are redesignated as subsections (9)
   16  through (20), respectively, a new subsection (8) is added to
   17  that section, and paragraph (c) of present subsection (11) of
   18  that section is amended, to read:
   19         192.001 Definitions.—All definitions set out in chapters 1
   20  and 200 that are applicable to this chapter are included herein.
   21  In addition, the following definitions shall apply in the
   22  imposition of ad valorem taxes:
   23         (8) “Heavy equipment rental property” means any
   24  construction, earthmoving, or industrial equipment that is
   25  mobile and rented by a dealer of heavy equipment rental
   26  property, including attachments for the equipment or other
   27  ancillary equipment or tools. Qualified heavy equipment property
   28  is mobile if it is not permanently affixed to real property and
   29  is moved among worksites. For the purposes of this chapter and
   30  chapter 196, the term “dealer of heavy equipment rental
   31  property means a person or entity principally engaged in the
   32  business of short-term rental of property as described under
   33  North American Industrial Classification System code 532412, as
   34  published by the Office of Management and Budget, Executive
   35  Office of the President. As used in this subsection, the term
   36  “short-term rental means the rental of a dealer’s heavy
   37  equipment rental property for a period of less than 1 year, for
   38  an undefined period, or under a contract with unlimited terms.
   39         (12)(11) “Personal property,” for the purposes of ad
   40  valorem taxation, shall be divided into four categories as
   41  follows:
   42         (c)1. “Inventory” means only those chattels consisting of
   43  items commonly referred to as goods, wares, and merchandise (as
   44  well as inventory) which are held for sale or lease to customers
   45  in the ordinary course of business. Supplies and raw materials
   46  shall be considered to be inventory only to the extent that they
   47  are acquired for sale or lease to customers in the ordinary
   48  course of business or will physically become a part of
   49  merchandise intended for sale or lease to customers in the
   50  ordinary course of business. Partially finished products which
   51  when completed will be held for sale or lease to customers in
   52  the ordinary course of business shall be deemed items of
   53  inventory. All livestock and heavy equipment rental property
   54  shall be considered inventory. Items of inventory held for lease
   55  to customers in the ordinary course of business, rather than for
   56  sale, shall be deemed inventory only prior to the initial lease
   57  of such items. For the purposes of this section, fuels used in
   58  the production of electricity shall be considered inventory.
   59         2. “Inventory” also means construction and agricultural
   60  equipment weighing 1,000 pounds or more that is returned to a
   61  dealership under a rent-to-purchase option and held for sale to
   62  customers in the ordinary course of business. This subparagraph
   63  may not be considered in determining whether property that is
   64  not construction and agricultural equipment weighing 1,000
   65  pounds or more that is returned under a rent-to-purchase option
   66  is inventory under subparagraph 1.
   67         Section 2. Paragraph (c) of subsection (12) of section
   68  112.312, Florida Statutes, is amended to read:
   69         112.312 Definitions.—As used in this part and for purposes
   70  of the provisions of s. 8, Art. II of the State Constitution,
   71  unless the context otherwise requires:
   72         (12)
   73         (c) For the purposes of paragraph (a), “intangible personal
   74  property” means property as defined in s. 192.001(12)(b) s.
   75  192.001(11)(b).
   76         Section 3. Subsection (2) of section 192.042, Florida
   77  Statutes, is amended to read:
   78         192.042 Date of assessment.—All property shall be assessed
   79  according to its just value as follows:
   80         (2) Tangible personal property, on January 1, except
   81  construction work in progress shall have no value placed thereon
   82  until substantially completed as defined in s. 192.001(12)(d) s.
   83  192.001(11)(d).
   84         Section 4. Paragraphs (g) and (p) of subsection (5) of
   85  section 212.08, Florida Statutes, are amended to read:
   86         212.08 Sales, rental, use, consumption, distribution, and
   87  storage tax; specified exemptions.—The sale at retail, the
   88  rental, the use, the consumption, the distribution, and the
   89  storage to be used or consumed in this state of the following
   90  are hereby specifically exempt from the tax imposed by this
   91  chapter.
   92         (5) EXEMPTIONS; ACCOUNT OF USE.—
   93         (g) Building materials used in the rehabilitation of real
   94  property located in an enterprise zone.—
   95         1. Building materials used in the rehabilitation of real
   96  property located in an enterprise zone are exempt from the tax
   97  imposed by this chapter upon an affirmative showing to the
   98  satisfaction of the department that the items have been used for
   99  the rehabilitation of real property located in an enterprise
  100  zone. Except as provided in subparagraph 2., this exemption
  101  inures to the owner, lessee, or lessor at the time the real
  102  property is rehabilitated, but only through a refund of
  103  previously paid taxes. To receive a refund pursuant to this
  104  paragraph, the owner, lessee, or lessor of the rehabilitated
  105  real property must file an application under oath with the
  106  governing body or enterprise zone development agency having
  107  jurisdiction over the enterprise zone where the business is
  108  located, as applicable. A single application for a refund may be
  109  submitted for multiple, contiguous parcels that were part of a
  110  single parcel that was divided as part of the rehabilitation of
  111  the property. All other requirements of this paragraph apply to
  112  each parcel on an individual basis. The application must
  113  include:
  114         a. The name and address of the person claiming the refund.
  115         b. An address and assessment roll parcel number of the
  116  rehabilitated real property for which a refund of previously
  117  paid taxes is being sought.
  118         c. A description of the improvements made to accomplish the
  119  rehabilitation of the real property.
  120         d. A copy of a valid building permit issued by the county
  121  or municipal building department for the rehabilitation of the
  122  real property.
  123         e. A sworn statement, under penalty of perjury, from the
  124  general contractor licensed in this state with whom the
  125  applicant contracted to make the improvements necessary to
  126  rehabilitate the real property, which lists the building
  127  materials used to rehabilitate the real property, the actual
  128  cost of the building materials, and the amount of sales tax paid
  129  in this state on the building materials. If a general contractor
  130  was not used, the applicant, not a general contractor, shall
  131  make the sworn statement required by this sub-subparagraph.
  132  Copies of the invoices that evidence the purchase of the
  133  building materials used in the rehabilitation and the payment of
  134  sales tax on the building materials must be attached to the
  135  sworn statement provided by the general contractor or by the
  136  applicant. Unless the actual cost of building materials used in
  137  the rehabilitation of real property and the payment of sales
  138  taxes is documented by a general contractor or by the applicant
  139  in this manner, the cost of the building materials is deemed to
  140  be an amount equal to 40 percent of the increase in assessed
  141  value for ad valorem tax purposes.
  142         f. The identifying number assigned pursuant to s. 290.0065
  143  to the enterprise zone in which the rehabilitated real property
  144  is located.
  145         g. A certification by the local building code inspector
  146  that the improvements necessary to rehabilitate the real
  147  property are substantially completed.
  148         h. A statement of whether the business is a small business
  149  as defined by s. 288.703.
  150         i. If applicable, the name and address of each permanent
  151  employee of the business, including, for each employee who is a
  152  resident of an enterprise zone, the identifying number assigned
  153  pursuant to s. 290.0065 to the enterprise zone in which the
  154  employee resides.
  155         2. This exemption inures to a municipality, county, other
  156  governmental unit or agency, or nonprofit community-based
  157  organization through a refund of previously paid taxes if the
  158  building materials used in the rehabilitation are paid for from
  159  the funds of a community development block grant, State Housing
  160  Initiatives Partnership Program, or similar grant or loan
  161  program. To receive a refund, a municipality, county, other
  162  governmental unit or agency, or nonprofit community-based
  163  organization must file an application that includes the same
  164  information required in subparagraph 1. In addition, the
  165  application must include a sworn statement signed by the chief
  166  executive officer of the municipality, county, other
  167  governmental unit or agency, or nonprofit community-based
  168  organization seeking a refund which states that the building
  169  materials for which a refund is sought were funded by a
  170  community development block grant, State Housing Initiatives
  171  Partnership Program, or similar grant or loan program.
  172         3. Within 10 working days after receipt of an application,
  173  the governing body or enterprise zone development agency shall
  174  review the application to determine if it contains all the
  175  information required by subparagraph 1. or subparagraph 2. and
  176  meets the criteria set out in this paragraph. The governing body
  177  or agency shall certify all applications that contain the
  178  required information and are eligible to receive a refund. If
  179  applicable, the governing body or agency shall also certify if
  180  20 percent of the employees of the business are residents of an
  181  enterprise zone, excluding temporary and part-time employees.
  182  The certification must be in writing, and a copy of the
  183  certification shall be transmitted to the executive director of
  184  the department. The applicant is responsible for forwarding a
  185  certified application to the department within the time
  186  specified in subparagraph 4.
  187         4. An application for a refund must be submitted to the
  188  department within 6 months after the rehabilitation of the
  189  property is deemed to be substantially completed by the local
  190  building code inspector or by November 1 after the rehabilitated
  191  property is first subject to assessment.
  192         5. Only one exemption through a refund of previously paid
  193  taxes for the rehabilitation of real property is permitted for
  194  any single parcel of property unless there is a change in
  195  ownership, a new lessor, or a new lessee of the real property. A
  196  refund may not be granted unless the amount to be refunded
  197  exceeds $500. A refund may not exceed the lesser of 97 percent
  198  of the Florida sales or use tax paid on the cost of the building
  199  materials used in the rehabilitation of the real property as
  200  determined pursuant to sub-subparagraph 1.e. or $5,000, or, if
  201  at least 20 percent of the employees of the business are
  202  residents of an enterprise zone, excluding temporary and part
  203  time employees, the amount of refund may not exceed the lesser
  204  of 97 percent of the sales tax paid on the cost of the building
  205  materials or $10,000. A refund shall be made within 30 days
  206  after formal approval by the department of the application for
  207  the refund.
  208         6. The department shall adopt rules governing the manner
  209  and form of refund applications and may establish guidelines as
  210  to the requisites for an affirmative showing of qualification
  211  for exemption under this paragraph.
  212         7. The department shall deduct an amount equal to 10
  213  percent of each refund granted under this paragraph from the
  214  amount transferred into the Local Government Half-cent Sales Tax
  215  Clearing Trust Fund pursuant to s. 212.20 for the county area in
  216  which the rehabilitated real property is located and shall
  217  transfer that amount to the General Revenue Fund.
  218         8. For the purposes of the exemption provided in this
  219  paragraph, the term:
  220         a. “Building materials” means tangible personal property
  221  that becomes a component part of improvements to real property.
  222         b. “Real property” has the same meaning as provided in s.
  223  192.001 s. 192.001(12), except that the term does not include a
  224  condominium parcel or condominium property as defined in s.
  225  718.103.
  226         c. “Rehabilitation of real property” means the
  227  reconstruction, renovation, restoration, rehabilitation,
  228  construction, or expansion of improvements to real property.
  229         d. “Substantially completed” has the same meaning as
  230  provided in s. 192.042(1).
  231         9. This paragraph expires on the date specified in s.
  232  290.016 for the expiration of the Florida Enterprise Zone Act.
  233         (p) Community contribution tax credit for donations.—
  234         1. Authorization.—Persons who are registered with the
  235  department under s. 212.18 to collect or remit sales or use tax
  236  and who make donations to eligible sponsors are eligible for tax
  237  credits against their state sales and use tax liabilities as
  238  provided in this paragraph:
  239         a. The credit shall be computed as 50 percent of the
  240  person’s approved annual community contribution.
  241         b. The credit shall be granted as a refund against state
  242  sales and use taxes reported on returns and remitted in the 12
  243  months preceding the date of application to the department for
  244  the credit as required in sub-subparagraph 3.c. If the annual
  245  credit is not fully used through such refund because of
  246  insufficient tax payments during the applicable 12-month period,
  247  the unused amount may be included in an application for a refund
  248  made pursuant to sub-subparagraph 3.c. in subsequent years
  249  against the total tax payments made for such year. Carryover
  250  credits may be applied for a 3-year period without regard to any
  251  time limitation that would otherwise apply under s. 215.26.
  252         c. A person may not receive more than $200,000 in annual
  253  tax credits for all approved community contributions made in any
  254  one year.
  255         d. All proposals for the granting of the tax credit require
  256  the prior approval of the Department of Economic Opportunity.
  257         e. The total amount of tax credits which may be granted for
  258  all programs approved under this paragraph, s. 220.183, and s.
  259  624.5105 is $21.4 million in the 2017-2018 fiscal year and $10.5
  260  million in each fiscal year thereafter for projects that provide
  261  housing opportunities for persons with special needs or
  262  homeownership opportunities for low-income households or very
  263  low-income households and $3.5 million each fiscal year for all
  264  other projects. As used in this paragraph, the term “person with
  265  special needs” has the same meaning as in s. 420.0004 and the
  266  terms “low-income person,” “low-income household,” “very-low
  267  income person,” and “very-low-income household” have the same
  268  meanings as in s. 420.9071.
  269         f. A person who is eligible to receive the credit provided
  270  in this paragraph, s. 220.183, or s. 624.5105 may receive the
  271  credit only under one section of the person’s choice.
  272         2. Eligibility requirements.—
  273         a. A community contribution by a person must be in the
  274  following form:
  275         (I) Cash or other liquid assets;
  276         (II) Real property, including 100 percent ownership of a
  277  real property holding company;
  278         (III) Goods or inventory; or
  279         (IV) Other physical resources identified by the Department
  280  of Economic Opportunity.
  281  
  282  For purposes of this sub-subparagraph, the term “real property
  283  holding company” means a Florida entity, such as a Florida
  284  limited liability company, that is wholly owned by the person;
  285  is the sole owner of real property, as defined in s. 192.001 s.
  286  192.001(12), located in the state; is disregarded as an entity
  287  for federal income tax purposes pursuant to 26 C.F.R. s.
  288  301.7701-3(b)(1)(ii); and at the time of contribution to an
  289  eligible sponsor, has no material assets other than the real
  290  property and any other property that qualifies as a community
  291  contribution.
  292         b. All community contributions must be reserved exclusively
  293  for use in a project. As used in this sub-subparagraph, the term
  294  “project” means activity undertaken by an eligible sponsor which
  295  is designed to construct, improve, or substantially rehabilitate
  296  housing that is affordable to low-income households or very-low
  297  income households; designed to provide housing opportunities for
  298  persons with special needs; designed to provide commercial,
  299  industrial, or public resources and facilities; or designed to
  300  improve entrepreneurial and job-development opportunities for
  301  low-income persons. A project may be the investment necessary to
  302  increase access to high-speed broadband capability in a rural
  303  community that had an enterprise zone designated pursuant to
  304  chapter 290 as of May 1, 2015, including projects that result in
  305  improvements to communications assets that are owned by a
  306  business. A project may include the provision of museum
  307  educational programs and materials that are directly related to
  308  a project approved between January 1, 1996, and December 31,
  309  1999, and located in an area which was in an enterprise zone
  310  designated pursuant to s. 290.0065 as of May 1, 2015. This
  311  paragraph does not preclude projects that propose to construct
  312  or rehabilitate housing for low-income households or very-low
  313  income households on scattered sites or housing opportunities
  314  for persons with special needs. With respect to housing,
  315  contributions may be used to pay the following eligible special
  316  needs, low-income, and very-low-income housing-related
  317  activities:
  318         (I) Project development impact and management fees for
  319  special needs, low-income, or very-low-income housing projects;
  320         (II) Down payment and closing costs for persons with
  321  special needs, low-income persons, and very-low-income persons;
  322         (III) Administrative costs, including housing counseling
  323  and marketing fees, not to exceed 10 percent of the community
  324  contribution, directly related to special needs, low-income, or
  325  very-low-income projects; and
  326         (IV) Removal of liens recorded against residential property
  327  by municipal, county, or special district local governments if
  328  satisfaction of the lien is a necessary precedent to the
  329  transfer of the property to a low-income person or very-low
  330  income person for the purpose of promoting home ownership.
  331  Contributions for lien removal must be received from a
  332  nonrelated third party.
  333         c. The project must be undertaken by an “eligible sponsor,”
  334  which includes:
  335         (I) A community action program;
  336         (II) A nonprofit community-based development organization
  337  whose mission is the provision of housing for persons with
  338  specials needs, low-income households, or very-low-income
  339  households or increasing entrepreneurial and job-development
  340  opportunities for low-income persons;
  341         (III) A neighborhood housing services corporation;
  342         (IV) A local housing authority created under chapter 421;
  343         (V) A community redevelopment agency created under s.
  344  163.356;
  345         (VI) A historic preservation district agency or
  346  organization;
  347         (VII) A local workforce development board;
  348         (VIII) A direct-support organization as provided in s.
  349  1009.983;
  350         (IX) An enterprise zone development agency created under s.
  351  290.0056;
  352         (X) A community-based organization incorporated under
  353  chapter 617 which is recognized as educational, charitable, or
  354  scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
  355  and whose bylaws and articles of incorporation include
  356  affordable housing, economic development, or community
  357  development as the primary mission of the corporation;
  358         (XI) Units of local government;
  359         (XII) Units of state government; or
  360         (XIII) Any other agency that the Department of Economic
  361  Opportunity designates by rule.
  362  
  363  A contributing person may not have a financial interest in the
  364  eligible sponsor.
  365         d. The project must be located in an area which was in an
  366  enterprise zone designated pursuant to chapter 290 as of May 1,
  367  2015, or a Front Porch Florida Community, unless the project
  368  increases access to high-speed broadband capability in a rural
  369  community that had an enterprise zone designated pursuant to
  370  chapter 290 as of May 1, 2015, but is physically located outside
  371  the designated rural zone boundaries. Any project designed to
  372  construct or rehabilitate housing for low-income households or
  373  very-low-income households or housing opportunities for persons
  374  with special needs is exempt from the area requirement of this
  375  sub-subparagraph.
  376         e.(I) If, during the first 10 business days of the state
  377  fiscal year, eligible tax credit applications for projects that
  378  provide housing opportunities for persons with special needs or
  379  homeownership opportunities for low-income households or very
  380  low-income households are received for less than the annual tax
  381  credits available for those projects, the Department of Economic
  382  Opportunity shall grant tax credits for those applications and
  383  grant remaining tax credits on a first-come, first-served basis
  384  for subsequent eligible applications received before the end of
  385  the state fiscal year. If, during the first 10 business days of
  386  the state fiscal year, eligible tax credit applications for
  387  projects that provide housing opportunities for persons with
  388  special needs or homeownership opportunities for low-income
  389  households or very-low-income households are received for more
  390  than the annual tax credits available for those projects, the
  391  Department of Economic Opportunity shall grant the tax credits
  392  for those applications as follows:
  393         (A) If tax credit applications submitted for approved
  394  projects of an eligible sponsor do not exceed $200,000 in total,
  395  the credits shall be granted in full if the tax credit
  396  applications are approved.
  397         (B) If tax credit applications submitted for approved
  398  projects of an eligible sponsor exceed $200,000 in total, the
  399  amount of tax credits granted pursuant to sub-sub-sub
  400  subparagraph (A) shall be subtracted from the amount of
  401  available tax credits, and the remaining credits shall be
  402  granted to each approved tax credit application on a pro rata
  403  basis.
  404         (II) If, during the first 10 business days of the state
  405  fiscal year, eligible tax credit applications for projects other
  406  than those that provide housing opportunities for persons with
  407  special needs or homeownership opportunities for low-income
  408  households or very-low-income households are received for less
  409  than the annual tax credits available for those projects, the
  410  Department of Economic Opportunity shall grant tax credits for
  411  those applications and shall grant remaining tax credits on a
  412  first-come, first-served basis for subsequent eligible
  413  applications received before the end of the state fiscal year.
  414  If, during the first 10 business days of the state fiscal year,
  415  eligible tax credit applications for projects other than those
  416  that provide housing opportunities for persons with special
  417  needs or homeownership opportunities for low-income households
  418  or very-low-income households are received for more than the
  419  annual tax credits available for those projects, the Department
  420  of Economic Opportunity shall grant the tax credits for those
  421  applications on a pro rata basis.
  422         3. Application requirements.—
  423         a. An eligible sponsor seeking to participate in this
  424  program must submit a proposal to the Department of Economic
  425  Opportunity which sets forth the name of the sponsor, a
  426  description of the project, and the area in which the project is
  427  located, together with such supporting information as is
  428  prescribed by rule. The proposal must also contain a resolution
  429  from the local governmental unit in which the project is located
  430  certifying that the project is consistent with local plans and
  431  regulations.
  432         b. A person seeking to participate in this program must
  433  submit an application for tax credit to the Department of
  434  Economic Opportunity which sets forth the name of the sponsor, a
  435  description of the project, and the type, value, and purpose of
  436  the contribution. The sponsor shall verify, in writing, the
  437  terms of the application and indicate its receipt of the
  438  contribution, and such verification must accompany the
  439  application for tax credit. The person must submit a separate
  440  tax credit application to the Department of Economic Opportunity
  441  for each individual contribution that it makes to each
  442  individual project.
  443         c. A person who has received notification from the
  444  Department of Economic Opportunity that a tax credit has been
  445  approved must apply to the department to receive the refund.
  446  Application must be made on the form prescribed for claiming
  447  refunds of sales and use taxes and be accompanied by a copy of
  448  the notification. A person may submit only one application for
  449  refund to the department within a 12-month period.
  450         4. Administration.—
  451         a. The Department of Economic Opportunity may adopt rules
  452  necessary to administer this paragraph, including rules for the
  453  approval or disapproval of proposals by a person.
  454         b. The decision of the Department of Economic Opportunity
  455  must be in writing, and, if approved, the notification shall
  456  state the maximum credit allowable to the person. Upon approval,
  457  the Department of Economic Opportunity shall transmit a copy of
  458  the decision to the department.
  459         c. The Department of Economic Opportunity shall
  460  periodically monitor all projects in a manner consistent with
  461  available resources to ensure that resources are used in
  462  accordance with this paragraph; however, each project must be
  463  reviewed at least once every 2 years.
  464         d. The Department of Economic Opportunity shall, in
  465  consultation with the statewide and regional housing and
  466  financial intermediaries, market the availability of the
  467  community contribution tax credit program to community-based
  468  organizations.
  469         Section 5. Paragraph (d) of subsection (1) of section
  470  220.03, Florida Statutes, is amended to read:
  471         220.03 Definitions.—
  472         (1) SPECIFIC TERMS.—When used in this code, and when not
  473  otherwise distinctly expressed or manifestly incompatible with
  474  the intent thereof, the following terms shall have the following
  475  meanings:
  476         (d) “Community Contribution” means the grant by a business
  477  firm of any of the following items:
  478         1. Cash or other liquid assets.
  479         2. Real property, which for purposes of this subparagraph
  480  includes 100 percent ownership of a real property holding
  481  company. The term “real property holding company” means a
  482  Florida entity, such as a Florida limited liability company,
  483  that:
  484         a. Is wholly owned by the business firm.
  485         b. Is the sole owner of real property, as defined in s.
  486  192.001 s. 192.001(12), located in the state.
  487         c. Is disregarded as an entity for federal income tax
  488  purposes pursuant to 26 C.F.R. s. 301.7701-3(b)(1)(ii).
  489         d. At the time of contribution to an eligible sponsor, has
  490  no material assets other than the real property and any other
  491  property that qualifies as a community contribution.
  492         3. Goods or inventory.
  493         4. Other physical resources as identified by the
  494  department.
  495         Section 6. Paragraph (a) of subsection (5) of section
  496  624.5105, Florida Statutes, is amended to read:
  497         624.5105 Community contribution tax credit; authorization;
  498  limitations; eligibility and application requirements;
  499  administration; definitions; expiration.—
  500         (5) DEFINITIONS.—As used in this section, the term:
  501         (a) “Community contribution” means the grant by an insurer
  502  of any of the following items:
  503         1. Cash or other liquid assets.
  504         2. Real property, including 100 percent ownership of a real
  505  property holding company.
  506         3. Goods or inventory.
  507         4. Other physical resources which are identified by the
  508  department.
  509  
  510  For purposes of this paragraph, the term “real property holding
  511  company” means a Florida entity, such as a Florida limited
  512  liability company, that is wholly owned by the insurer; is the
  513  sole owner of real property, as defined in s. 192.001 s.
  514  192.001(12), located in the state; is disregarded as an entity
  515  for federal income tax purposes pursuant to 26 C.F.R. s.
  516  301.7701-3(b)(1)(ii); and at the time of contribution to an
  517  eligible sponsor, has no material assets other than the real
  518  property and any other property that qualifies as a community
  519  contribution.
  520         Section 7. This act shall take effect July 1, 2018.