Bill Text: FL S1022 | 2012 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Revitalizing Municipalities
Spectrum: Bipartisan Bill
Status: (Failed) 2012-03-09 - Died in Budget Subcommittee on Finance and Tax [S1022 Detail]
Download: Florida-2012-S1022-Introduced.html
Bill Title: Revitalizing Municipalities
Spectrum: Bipartisan Bill
Status: (Failed) 2012-03-09 - Died in Budget Subcommittee on Finance and Tax [S1022 Detail]
Download: Florida-2012-S1022-Introduced.html
Florida Senate - 2012 SB 1022 By Senator Garcia 40-00675-12 20121022__ 1 A bill to be entitled 2 An act relating to sales tax increment districts; 3 amending s. 212.20, F.S.; providing for the transfer 4 of certain sales tax increment revenues from the 5 General Revenue Fund to the Revenue Sharing Trust Fund 6 for Municipalities; amending s. 218.23, F.S.; 7 providing for a distribution from the Revenue Sharing 8 Trust Fund for Municipalities relating to an increase 9 in sales tax collections over the preceding year to 10 the governing body of an area that receives tax 11 increment revenues pursuant to a designation as a 12 sales tax increment district; amending s. 290.004, 13 F.S.; providing definitions; amending s. 290.0056, 14 F.S.; specifying additional powers of an enterprise 15 zone development agency for areas designated as a 16 sales tax increment district; amending s. 290.007, 17 F.S.; specifying sales tax increment financing as a 18 additional economic development incentive that is 19 available within enterprise zones; creating ss. 20 290.01351, 290.0136, 290.0137, 290.0138, 290.0139, and 21 290.01391, F.S.; creating the “Municipal 22 Revitalization Act”; providing legislative intent and 23 purposes; authorizing the creation of sales tax 24 increment districts within enterprise zones; 25 specifying minimum requirements for sales tax 26 increment districts; providing for a review of 27 resolutions to create a sales tax increment district 28 by the Department of Economic Opportunity; providing 29 that the governing body for an enterprise zone where a 30 sales tax increment district is located is eligible 31 for specified percentage distributions of increased 32 state sales tax collections under certain 33 circumstances; requiring the Department of Revenue to 34 determine the amount of increased sales tax 35 collections to be distributed to each eligible 36 governing body and to transfer the aggregate amount 37 due to all such governing bodies to the Revenue 38 Sharing Trust Fund for Municipalities for 39 distribution; requiring a governing body to deposit 40 tax increment revenues in a separate account; 41 specifying requirements for agreements between a 42 retail development project developer and a governing 43 body for the use of tax increment revenues; 44 authorizing the issuance of bonds secured by tax 45 increment revenues to finance a retail development 46 project; specifying that bonds issued for a retail 47 development project do not constitute debt for certain 48 purposes; specifying requirements for the issuance of 49 bonds; creating a conclusive presumption that the 50 bonds are used for the purposes of a retail 51 development project; providing an effective date. 52 53 Be It Enacted by the Legislature of the State of Florida: 54 55 Section 1. Paragraph (d) of subsection (6) of section 56 212.20, Florida Statutes, is amended to read: 57 212.20 Funds collected, disposition; additional powers of 58 department; operational expense; refund of taxes adjudicated 59 unconstitutionally collected.— 60 (6) Distribution of all proceeds under this chapter and s. 61 202.18(1)(b) and (2)(b) shall be as follows: 62 (d) The proceeds of all other taxes and fees imposed 63 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b) 64 and (2)(b) shall be distributed as follows: 65 1. In any fiscal year, the greater of $500 million, minus 66 an amount equal to 4.6 percent of the proceeds of the taxes 67 collected pursuant to chapter 201, or 5.2 percent of all other 68 taxes and fees imposed pursuant to this chapter or remitted 69 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in 70 monthly installments into the General Revenue Fund. 71 2. After the distribution under subparagraph 1., 8.814 72 percent of the amount remitted by a sales tax dealer located 73 within a participating county pursuant to s. 218.61 shall be 74 transferred into the Local Government Half-cent Sales Tax 75 Clearing Trust Fund. Beginning July 1, 2003, the amount to be 76 transferred shall be reduced by 0.1 percent, and the department 77 shall distribute this amount to the Public Employees Relations 78 Commission Trust Fund less $5,000 each month, which shall be 79 added to the amount calculated in subparagraph 3. and 80 distributed accordingly. 81 3. After the distribution under subparagraphs 1. and 2., 82 0.095 percent shall be transferred to the Local Government Half 83 cent Sales Tax Clearing Trust Fund and distributed pursuant to 84 s. 218.65. 85 4. After the distributions under subparagraphs 1., 2., and 86 3., 2.0440 percent of the available proceeds shall be 87 transferred monthly to the Revenue Sharing Trust Fund for 88 Counties pursuant to s. 218.215. 89 5. After the distributions under subparagraphs 1., 2., and 90 3., 1.3409 percent of the available proceeds, plus the amount 91 required under s. 290.0138(2), shall be transferred monthly to 92 the Revenue Sharing Trust Fund for Municipalities pursuant to s. 93 218.215. If the total revenue to be distributed pursuant to this 94 subparagraph is at least as great as the amount due from the 95 Revenue Sharing Trust Fund for Municipalities and the former 96 Municipal Financial Assistance Trust Fund in state fiscal year 97 1999-2000, no municipality shall receive less than the amount 98 due from the Revenue Sharing Trust Fund for Municipalities and 99 the former Municipal Financial Assistance Trust Fund in state 100 fiscal year 1999-2000. If the total proceeds to be distributed 101 are less than the amount received in combination from the 102 Revenue Sharing Trust Fund for Municipalities and the former 103 Municipal Financial Assistance Trust Fund in state fiscal year 104 1999-2000, each municipality shall receive an amount 105 proportionate to the amount it was due in state fiscal year 106 1999-2000. 107 6. Of the remaining proceeds: 108 a. In each fiscal year, the sum of $29,915,500 shall be 109 divided into as many equal parts as there are counties in the 110 state, and one part shall be distributed to each county. The 111 distribution among the several counties must begin each fiscal 112 year on or before January 5th and continue monthly for a total 113 of 4 months. If a local or special law required that any moneys 114 accruing to a county in fiscal year 1999-2000 under the then 115 existing provisions of s. 550.135 be paid directly to the 116 district school board, special district, or a municipal 117 government, such payment must continue until the local or 118 special law is amended or repealed. The state covenants with 119 holders of bonds or other instruments of indebtedness issued by 120 local governments, special districts, or district school boards 121 before July 1, 2000, that it is not the intent of this 122 subparagraph to adversely affect the rights of those holders or 123 relieve local governments, special districts, or district school 124 boards of the duty to meet their obligations as a result of 125 previous pledges or assignments or trusts entered into which 126 obligated funds received from the distribution to county 127 governments under then-existing s. 550.135. This distribution 128 specifically is in lieu of funds distributed under s. 550.135 129 before July 1, 2000. 130 b. The department shall distribute $166,667 monthly 131 pursuant to s. 288.1162 to each applicant certified as a 132 facility for a new or retained professional sports franchise 133 pursuant to s. 288.1162. Up to $41,667 shall be distributed 134 monthly by the department to each certified applicant as defined 135 in s. 288.11621 for a facility for a spring training franchise. 136 However, not more than $416,670 may be distributed monthly in 137 the aggregate to all certified applicants for facilities for 138 spring training franchises. Distributions begin 60 days after 139 such certification and continue for not more than 30 years, 140 except as otherwise provided in s. 288.11621. A certified 141 applicant identified in this sub-subparagraph may not receive 142 more in distributions than expended by the applicant for the 143 public purposes provided for in s. 288.1162(5) or s. 144 288.11621(3). 145 c. Beginning 30 days after notice by the Department of 146 Economic Opportunity to the Department of Revenue that an 147 applicant has been certified as the professional golf hall of 148 fame pursuant to s. 288.1168 and is open to the public, $166,667 149 shall be distributed monthly, for up to 300 months, to the 150 applicant. 151 d. Beginning 30 days after notice by the Department of 152 Economic Opportunity to the Department of Revenue that the 153 applicant has been certified as the International Game Fish 154 Association World Center facility pursuant to s. 288.1169, and 155 the facility is open to the public, $83,333 shall be distributed 156 monthly, for up to 168 months, to the applicant. This 157 distribution is subject to reduction pursuant to s. 288.1169. A 158 lump sum payment of $999,996 shall be made, after certification 159 and before July 1, 2000. 160 7. All other proceeds must remain in the General Revenue 161 Fund. 162 Section 2. Subsection (3) of section 218.23, Florida 163 Statutes, is amended to read: 164 218.23 Revenue sharing with units of local government.— 165 (3) The distribution to a unit of local government under 166 this part is determined by the following formula: 167 (a) First, the entitlement of an eligible unit of local 168 government shall be computed on the basis of the apportionment 169 factor provided in s. 218.245, which shall be applied for all 170 eligible units of local government to all receipts available for 171 distribution in the respective revenue sharing trust fund. 172 (b) Second, revenue shared with eligible units of local 173 government for any fiscal year shall be adjusted so that no 174 eligible unit of local government receives less funds than its 175 guaranteed entitlement. 176 (c) Third, revenues shared with counties for any fiscal 177 year shall be adjusted so that no county receives less funds 178 than its guaranteed entitlement plus the second guaranteed 179 entitlement for counties. 180 (d) Fourth, revenue shared with units of local government 181 for any fiscal year shall be adjusted so that no unit of local 182 government receives less funds than its minimum entitlement. 183 (e) Fifth, after the adjustments provided in paragraphs 184 (b), (c), and (d), the funds remaining in the respective trust 185 fund for municipalities shall be distributed to the appropriate 186 governing bodies eligible for a distribution under ss. 290.0137 187 and 290.0138. 188 (f)(e)SixthFifth, after the adjustments provided in 189 paragraphs (b), (c),and(d), and (e), and after deducting the 190 amount committed to all the units of local government, the funds 191 remaining in the respective trust funds shall be distributed to 192 those eligible units of local government which qualify to 193 receive additional moneys beyond the guaranteed entitlement, on 194 the basis of the additional money of each qualified unit of 195 local government in proportion to the total additional money of 196 all qualified units of local government. 197 Section 3. Section 290.004, Florida Statutes, is amended to 198 read: 199 290.004 Definitions relating to Florida Enterprise Zone 200 Act.—As used in ss. 290.001-290.016, the term: 201 (1) “Bond” means a bond, note, or other instrument that is 202 issued by the governing body pursuant to s. 290.01391 and 203 secured by tax increment revenues or other security authorized 204 in this chapter. 205 (2)(1)“Community investment corporation” means a black 206 business investment corporation, a certified development 207 corporation, a small business investment corporation, or other 208 similar entity incorporated under Florida law that has limited 209 its investment policy to making investments solely in minority 210 business enterprises. 211 (3)(2)“Department” means the Department of Economic 212 Opportunity. 213 (4)(3)“Governing body” means the council or other 214 legislative body charged with governing the county or 215 municipality. 216 (5)(4)“Minority business enterprise” has the same meaning 217 as provided in s. 288.703. 218 (6) “Retail development costs” mean any costs associated 219 with, arising out of, or incurred in connection with: 220 (a) A retail development project; 221 (b) The issuance of, or debt service or any other payments 222 in respect of, the bonds, including costs of issuance, 223 capitalized interest, credit enhancement fees, reserve funds, or 224 working capital; or 225 (c) The relocation of a business in which the purpose of 226 relocation is to make space for a retail development project. 227 (7) “Retail development project” means the establishment of 228 a business pursuant to a development agreement between the 229 governing body and the retail development project developer 230 within a sales tax increment district within an enterprise zone. 231 A business established by a retail development project must be 232 engaged in direct onsite retail sales to consumers or providing 233 unique entertainment attractions, including the following: 234 acquisition, purchasing, construction, reconstruction, 235 improvement, renovation, rehabilitation, restoration, 236 remodeling, repair, remediation, expansion, extension, or the 237 furnishing, equipping, and opening of the business. A retail 238 development project may include restaurants, grocery and 239 specialty food stores, art galleries, and businesses engaged in 240 sales of home furnishings, apparel, and general merchandise 241 goods to specialized customers, or providing a unique 242 entertainment attraction. A retail development project may not 243 include: 244 (a) Liquor stores; 245 (b) Adult entertainment establishments or nightclubs; 246 (c) Adult book clubs; and 247 (d) The relocation of a business to the retail development 248 project from another location within the enterprise zone, unless 249 the relocation involves a significant expansion of the size of 250 the business. 251 (8) “Retail development project developer” means a person 252 sponsoring a retail development project. 253 (9)(5)“Rural enterprise zone” means an enterprise zone 254 that is nominated by a county having a population of 75,000 or 255 fewer, or a county having a population of 100,000 or fewer which 256 is contiguous to a county having a population of 75,000 or 257 fewer, or by a municipality in such a county, or by such a 258 county and one or more municipalities. An enterprise zone 259 designated in accordance with s. 290.0065(5)(b) is considered to 260 be a rural enterprise zone. 261 (10) “Sales tax increment district” means an area within an 262 enterprise zone designated by a governing body to be used by a 263 retail development project. 264 (11)(6)“Small business” has the same meaning as provided 265 in s. 288.703. 266 (12) “Tax increment revenues” means the additional sales 267 tax revenues within the area of a sales tax increment district 268 which exceed the amount of sales tax revenues in the base year. 269 Section 4. Paragraph (a) of subsection (9) of section 270 290.0056, Florida Statutes, is amended, and present subsections 271 (11) and (12) of that section are redesignated as subsections 272 (12) and (13), respectively, and a new subsection (11) is added 273 to that section, to read: 274 290.0056 Enterprise zone development agency.— 275 (9) The following powers and responsibilities shall be 276 performed by the governing body creating the enterprise zone 277 development agency acting as the managing agent of the 278 enterprise zone development agency, or, contingent upon approval 279 by such governing body, such powers and responsibilities shall 280 be performed by the enterprise zone development agency: 281 (a) To review, process, and certify applications for state 282 enterprise zone tax incentives pursuant to ss. 212.08(5)(g), 283 (h), and (15); 212.096; 220.181;and220.182; and 290.0137. 284 (11) A governing body that designates a sales tax increment 285 district may also exercise the following additional powers for 286 the purpose of providing local financing for public and private 287 improvements that will foster job growth and enhance the base of 288 retailers within an enterprise zone, unless otherwise prohibited 289 by ordinance: 290 (a) Enter into cooperative contracts and agreements with a 291 county, municipality, governmental agency, or private entity for 292 services and assistance; 293 (b) Acquire, own, convey, construct, maintain, improve, and 294 manage property and facilities and grant and acquire licenses, 295 easements, and options with respect to such property; 296 (c) Expend incremental sales tax revenues to promote and 297 advertise the commercial advantages of the district in order to 298 attract new businesses and encourage the expansion of existing 299 businesses; 300 (d) Expend incremental sales tax revenues to promote and 301 advertise the district to the public and engage in cooperative 302 advertising programs with businesses located in the district; 303 and 304 (e) Expend incremental sales tax revenues pursuant to a 305 development agreement with a retail development project 306 developer to underwrite retail development costs. 307 Section 5. Subsection (9) is added to section 290.007, 308 Florida Statutes, to read: 309 290.007 State incentives available in enterprise zones.—The 310 following incentives are provided by the state to encourage the 311 revitalization of enterprise zones: 312 (9) Tax increment financing within the area of an 313 enterprise zone which is designated as a sales tax increment 314 district. 315 Section 6. Section 290.01351, Florida Statutes, is created 316 to read: 317 290.01351 Municipal Revitalization Act.—Sections 290.01351 318 290.01391 may be cited as the “Municipal Revitalization Act.” 319 Section 7. Section 290.0136, Florida Statutes, is created 320 to read: 321 290.0136 Sales tax increment districts; intent and 322 purpose.— 323 (1) The Legislature intends to foster the revitalization of 324 counties and municipalities and support job-creating retail 325 development projects within enterprise zones by authorizing the 326 governing bodies of counties and municipalities to designate 327 sales tax increment districts within enterprise zones, subject 328 to the review and approval by the Department of Economic 329 Opportunity. 330 (2) The Legislature finds that by authorizing local 331 governing bodies of an enterprise zone to designate a sales tax 332 increment district, the counties or municipalities may share 333 with the state any annual increase in sales tax collections 334 occasioned by a retail development project and advance the 335 revitalization of such counties and municipalities. Through the 336 sharing of any annual increases in sales tax collections within 337 a sales increment district resulting from the advancement of a 338 retail development project, the Legislature intends to provide 339 local financing for public and private improvements that will 340 foster job growth for the residents of economically distressed 341 areas and enhance the base of local retailers serving residents 342 of the enterprise zones and the surrounding communities. 343 Section 8. Section 290.0137, Florida Statutes, is created 344 to read: 345 290.0137 Designation of sales tax increment districts; 346 review and approval.— 347 (1) Any municipality having a population of at least 348 250,000 residents which has designated an enterprise zone, or 349 all the governing bodies in the case of a county and one or more 350 municipalities having been designated an enterprise zone if the 351 county has a population of at least 750,000 residents, may adopt 352 a resolution designating a sales tax increment district to 353 support the development of a retail development project 354 following a public hearing. 355 (2) The resolution creating a sales tax increment 356 redevelopment district, at a minimum, must: 357 (a) Include findings that the designation of the sales tax 358 increment district: 359 1. Is essential to the advancement of a retail development 360 project; 361 2. Will provide needed retail amenities within the 362 enterprise zone; 363 3. Will result in the creation of a total of 500 new jobs 364 and at least $1 million in sales tax increment revenue annually; 365 and 366 4. Will enhance the health and general welfare of the 367 residents of the enterprise zone within the sponsoring 368 municipality or county; 369 (b) Fix the geographic boundaries of the sales tax 370 increment district which are necessary to support the 371 advancement of a retail development project; 372 (c) Establish the term of the life of the sales tax 373 increment district, which term may not exceed 15 years following 374 the date the sales tax increment district is approved following 375 review by the Department of Economic Opportunity; 376 (d) Specify the base year amount of sales tax revenues for 377 the determination of the amount of sales tax increment revenues 378 resulting from a retail development project; and 379 (e) Authorize staff of the governing body to negotiate a 380 development agreement with the retail development project 381 developer, subject to the approval of the governing body. 382 (3) A copy of the resolution adopted by the governing body 383 designating the sales tax increment district shall be 384 transmitted to the Department of Economic Opportunity for its 385 review. The department, in consultation with Enterprise Florida, 386 Inc., shall determine whether the designation of the sales tax 387 increment district complies with the requirements of this 388 chapter. 389 (4) Upon determining that the designation by the governing 390 body complies with the requirements of this chapter, the 391 Department of Economic Opportunity shall transmit a copy of the 392 resolution establishing the sales tax increment district to the 393 Department of Revenue. 394 Section 9. Section 290.0138, Florida Statutes, is created 395 to read: 396 290.0138 Calculation of tax increment revenue contribution 397 to governing body.— 398 (1) The governing body of a designated sales tax increment 399 district is eligible for a percentage distribution from the 400 Revenue Sharing Trust Fund for Municipalities of the increased 401 collections of the sales tax revenues realized during any month 402 by the municipality over the same monthly period of the base 403 year, as follows: 404 (a) Eighty-five percent of the increased monthly 405 collections of $85,000 or less. 406 (b) Seventy-five percent of the increased monthly 407 collections greater than $85,000 but $425,000 or less. 408 (c) Fifty percent of the increased monthly collections 409 greater than $425,000 but $675,000 or less. 410 (d) Twenty-five percent of the increased monthly 411 collections greater than $675,000 but $1 million or less. 412 (2) The specific amount payable to each eligible governing 413 body shall be determined monthly by the Department of Revenue 414 for distribution to the appropriate eligible governing body 415 pursuant to subsection (1). The Department of Revenue shall 416 determine monthly the aggregate amount of sales tax revenue that 417 is required for distribution to an eligible governing body under 418 this section and transfer that amount from the General Revenue 419 Fund to the Revenue Sharing Trust Fund for Municipalities in 420 accordance with s. 212.20(6)(d)5. All amounts transferred to the 421 Revenue Sharing Trust Fund for Municipalities shall be 422 distributed as provided in s. 218.23(3)(e). The total 423 distribution provided to the eligible governing body may not 424 exceed the total tax increment revenue contribution set forth in 425 the retail project development agreement required pursuant to s. 426 290.0139. 427 (3) Each governing body receiving a percentage distribution 428 pursuant to subsection (1) shall establish a separate tax 429 increment revenue account within its general fund for the 430 deposit of the sales tax increment for each sales tax increment 431 district. 432 Section 10. Section 290.0139, Florida Statutes, is created 433 to read: 434 290.0139 Retail development project agreement.— 435 (1) A retail development project developer desiring to use 436 tax increment revenues to underwrite retail development costs 437 must enter into a retail development project agreement with the 438 governing body of the county or municipality designating a sales 439 tax increment district. The agreement must set forth: 440 (a) The goals and objectives of the retail development 441 project; 442 (b) Requirements for leasing retail space within the retail 443 development project which will advance the goals and objectives; 444 (c) The terms and conditions under which tax increment 445 revenue or bond proceeds will be advanced to pay retail 446 developments costs incurred in the sales tax increment district; 447 (d) The total amount of the tax increment revenue to be 448 contributed to pay retail development costs within the sales tax 449 increment district; 450 (e) Goals for hiring minority business enterprises to 451 perform construction or operations work, which goal shall equal 452 an amount at least 25 percent of the total amount of tax 453 increment revenue contributed towards the payment of retail 454 development costs within the sales tax increment district; 455 (f) Goals for the hiring of enterprise zone residents for 456 the new jobs created by the retail development project, which 457 goal shall equal at least 35 percent of the new jobs created; 458 (g) Such matters as may be required in connection with the 459 issuance of bonds to support the retail development project; and 460 (h) Such other matters as the governing body designating 461 the sales tax increment district may determine to be necessary 462 and appropriate. 463 (2) Tax increment revenues or bond proceeds may not be 464 advanced to pay retail development costs until such time as the 465 retail development project is open to the general public. 466 (3) The governing body may approve a retail project 467 development agreement following a public hearing and the 468 approval must be in the form of a resolution. 469 Section 11. Section 290.01391, Florida Statutes, is created 470 to read: 471 290.01391 Issuance of tax increment revenue bonds; use of 472 bond proceeds; funding agreement.— 473 (1) A governing body that designates a sales tax increment 474 district may approve a resolution following a public hearing 475 which authorizes tax increment revenues to be used to support 476 the issuance of revenue bonds to finance retail redevelopment 477 costs of a retail development project, including the payment of 478 principal and interest upon any advances for surveys and plans 479 or preliminary loans. 480 (2) Bonds issued under this section do not constitute 481 indebtedness within the meaning of any constitutional or 482 statutory debt limitation or restriction and are not subject to 483 any other law or charter relating to the authorization, 484 issuance, or sale of bonds. Bonds issued under this section are 485 declared to be issued for an essential public and governmental 486 purpose, and the interest and income from the bonds are exempt 487 from all taxes, except taxes imposed by chapter 220 on 488 corporations. 489 (3) Bonds issued under this section may be issued in one or 490 more series and may bear such date or dates, be payable upon 491 demand or mature at such time or times, bear interest at such 492 rate or rates, be in such denomination or denominations, be in 493 such form either with or without coupon or registered, carry 494 such conversion or registration privileges, have such rank or 495 priority, be executed in such manner, be payable in such medium 496 of payment at such place or places, be subject to such terms of 497 redemption with or without a premium, be secured in such manner, 498 and have such other characteristics as may be provided by the 499 resolution or ordinance authorizing their issuance. Bonds issued 500 under this section may be sold in such manner, either at public 501 or private sale, and for such price as the designated 502 redevelopment agency may determine will effectuate the purposes 503 of this section. 504 (4) In any suit, action, or proceeding involving the 505 validity or enforceability of any bond issued under this 506 section, any bond that recites in substance that it has been 507 issued by the governing body in connection with the sales tax 508 increment district for a purpose authorized under this section 509 is conclusively presumed to have been issued for that purpose, 510 and any project financed by the bond is conclusively presumed to 511 have been planned and carried out in accordance with the 512 intended purposes of this section. 513 Section 12. This act shall take effect July 1, 2012.