Bill Text: FL S1604 | 2013 | Regular Session | Introduced


Bill Title: Enterprise Zones

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-05-03 - Died in Commerce and Tourism [S1604 Detail]

Download: Florida-2013-S1604-Introduced.html
       Florida Senate - 2013                                    SB 1604
       
       
       
       By Senator Simpson
       
       
       
       
       18-01386-13                                           20131604__
    1                        A bill to be entitled                      
    2         An act relating to enterprise zones; amending s.
    3         212.08, F.S.; revising an exception to the definition
    4         of the term “recovery property”; amending s. 212.096,
    5         F.S.; renaming the enterprise zone jobs credit as the
    6         enterprise zone job stimulus credit; conforming
    7         definitions to changes made by the act; providing
    8         additional legislative intent; authorizing the
    9         enterprise zone job stimulus credit against the sales
   10         tax to be applied to new employees hired; revising
   11         criteria for claiming the credit; deleting the minimum
   12         threshold requirement for full-time jobs required to
   13         claim the credit; specifying an additional criterion
   14         for nonapplication of the credit to eligible
   15         businesses; amending s. 220.02, F.S.; conforming
   16         terminology to changes made by the act; amending s.
   17         220.03, F.S.; conforming definitions to changes made
   18         by the act; amending s. 220.181, F.S.; renaming the
   19         enterprise zone jobs credit as the enterprise zone job
   20         stimulus credit; authorizing the enterprise zone job
   21         stimulus credit against the corporate income tax to be
   22         applied to new employees hired; revising criteria for
   23         claiming the credit; deleting the minimum threshold
   24         requirement for full-time jobs required to claim the
   25         credit; amending s. 290.00677, F.S.; conforming
   26         provisions to changes made by the act; amending s.
   27         290.007, F.S.; conforming terminology to changes made
   28         by the act; providing an effective date.
   29  
   30  Be It Enacted by the Legislature of the State of Florida:
   31  
   32         Section 1. Paragraph (h) of subsection (5) of section
   33  212.08, Florida Statutes, is amended to read:
   34         212.08 Sales, rental, use, consumption, distribution, and
   35  storage tax; specified exemptions.—The sale at retail, the
   36  rental, the use, the consumption, the distribution, and the
   37  storage to be used or consumed in this state of the following
   38  are hereby specifically exempt from the tax imposed by this
   39  chapter.
   40         (5) EXEMPTIONS; ACCOUNT OF USE.—
   41         (h) Business property used in an enterprise zone.—
   42         1. Business property purchased for use by businesses
   43  located in an enterprise zone which is subsequently used in an
   44  enterprise zone shall be exempt from the tax imposed by this
   45  chapter. This exemption inures to the business only through a
   46  refund of previously paid taxes. A refund shall be authorized
   47  upon an affirmative showing by the taxpayer to the satisfaction
   48  of the department that the requirements of this paragraph have
   49  been met.
   50         2. To receive a refund, the business must file under oath
   51  with the governing body or enterprise zone development agency
   52  having jurisdiction over the enterprise zone where the business
   53  is located, as applicable, an application which includes:
   54         a. The name and address of the business claiming the
   55  refund.
   56         b. The identifying number assigned pursuant to s. 290.0065
   57  to the enterprise zone in which the business is located.
   58         c. A specific description of the property for which a
   59  refund is sought, including its serial number or other permanent
   60  identification number.
   61         d. The location of the property.
   62         e. The sales invoice or other proof of purchase of the
   63  property, showing the amount of sales tax paid, the date of
   64  purchase, and the name and address of the sales tax dealer from
   65  whom the property was purchased.
   66         f. Whether the business is a small business as defined by
   67  s. 288.703.
   68         g. If applicable, the name and address of each permanent
   69  employee of the business, including, for each employee who is a
   70  resident of an enterprise zone, the identifying number assigned
   71  pursuant to s. 290.0065 to the enterprise zone in which the
   72  employee resides.
   73         3. Within 10 working days after receipt of an application,
   74  the governing body or enterprise zone development agency shall
   75  review the application to determine if it contains all the
   76  information required pursuant to subparagraph 2. and meets the
   77  criteria set out in this paragraph. The governing body or agency
   78  shall certify all applications that contain the information
   79  required pursuant to subparagraph 2. and meet the criteria set
   80  out in this paragraph as eligible to receive a refund. If
   81  applicable, the governing body or agency shall also certify if
   82  20 percent of the employees of the business are residents of an
   83  enterprise zone, excluding temporary and part-time employees.
   84  The certification shall be in writing, and a copy of the
   85  certification shall be transmitted to the executive director of
   86  the Department of Revenue. The business shall be responsible for
   87  forwarding a certified application to the department within the
   88  time specified in subparagraph 4.
   89         4. An application for a refund pursuant to this paragraph
   90  must be submitted to the department within 6 months after the
   91  tax is due on the business property that is purchased.
   92         5. The amount refunded on purchases of business property
   93  under this paragraph shall be the lesser of 97 percent of the
   94  sales tax paid on such business property or $5,000, or, if no
   95  less than 20 percent of the employees of the business are
   96  residents of an enterprise zone, excluding temporary and part
   97  time employees, the amount refunded on purchases of business
   98  property under this paragraph shall be the lesser of 97 percent
   99  of the sales tax paid on such business property or $10,000. A
  100  refund approved pursuant to this paragraph shall be made within
  101  30 days after formal approval by the department of the
  102  application for the refund. A refund may not be granted under
  103  this paragraph unless the amount to be refunded exceeds $100 in
  104  sales tax paid on purchases made within a 60-day time period.
  105         6. The department shall adopt rules governing the manner
  106  and form of refund applications and may establish guidelines as
  107  to the requisites for an affirmative showing of qualification
  108  for exemption under this paragraph.
  109         7. If the department determines that the business property
  110  is used outside an enterprise zone within 3 years from the date
  111  of purchase, the amount of taxes refunded to the business
  112  purchasing such business property shall immediately be due and
  113  payable to the department by the business, together with the
  114  appropriate interest and penalty, computed from the date of
  115  purchase, in the manner provided by this chapter.
  116  Notwithstanding this subparagraph, business property used
  117  exclusively in:
  118         a. Licensed commercial fishing vessels,
  119         b. Fishing guide boats, or
  120         c. Ecotourism guide boats
  121  
  122  that leave and return to a fixed location within an area
  123  designated under s. 379.2353, Florida Statutes 2010, are
  124  eligible for the exemption provided under this paragraph if all
  125  requirements of this paragraph are met. Such vessels and boats
  126  must be owned by a business that is eligible to receive the
  127  exemption provided under this paragraph. This exemption does not
  128  apply to the purchase of a vessel or boat.
  129         8. The department shall deduct an amount equal to 10
  130  percent of each refund granted under this paragraph from the
  131  amount transferred into the Local Government Half-cent Sales Tax
  132  Clearing Trust Fund pursuant to s. 212.20 for the county area in
  133  which the business property is located and shall transfer that
  134  amount to the General Revenue Fund.
  135         9. For the purposes of this exemption, “business property”
  136  means new or used property defined as “recovery property” in s.
  137  168(c) of the Internal Revenue Code of 1954, as amended, except:
  138         a. Property classified as 3-year property under s.
  139  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
  140         b. Industrial machinery and equipment as defined in sub
  141  subparagraph (b)6.a. and eligible for exemption under paragraph
  142  (b);
  143         c. Building materials as defined in sub-subparagraph
  144  (g)8.a.; and
  145         d. Business property having a sales price of under $2,500
  146  $5,000 per unit.
  147         10. This paragraph expires on the date specified in s.
  148  290.016 for the expiration of the Florida Enterprise Zone Act.
  149         Section 2. Paragraphs (a), (c), and (e) of subsection (1),
  150  subsection (2), paragraphs (e), (f), (g), (h), and (i) of
  151  subsection (3), and subsection (9) of section 212.096, Florida
  152  Statutes, are amended, and paragraph (c) is added to subsection
  153  (6) of that section, to read:
  154         212.096 Sales, rental, storage, use tax; enterprise zone
  155  job stimulus jobs credit against sales tax.—
  156         (1) For the purposes of the credit provided in this
  157  section:
  158         (a) “Eligible business” means any sole proprietorship,
  159  firm, partnership, corporation, bank, savings association,
  160  estate, trust, business trust, receiver, syndicate, or other
  161  group or combination, or successor business, located in an
  162  enterprise zone. The business must demonstrate to the department
  163  that, on the date of application, the total number of full-time
  164  jobs defined under paragraph (d) is greater than the total was
  165  12 months prior to that date. An eligible business does not
  166  include any business which has claimed the credit permitted
  167  under s. 220.181 for any new business employee first beginning
  168  employment with the business after July 1, 2013 1995.
  169         (c) “New employee” means a person residing in an enterprise
  170  zone or a participant in the welfare transition program who
  171  begins employment with an eligible business after July 1, 2013
  172  1995, and who has not been previously employed full time within
  173  the preceding 12 months by the eligible business, or a successor
  174  eligible business, claiming the credit allowed by this section.
  175         (e) “New job has been created” means that, on the date of
  176  application, the total number of full-time jobs is greater than
  177  the total was 12 months prior to that date, as demonstrated to
  178  the department by a business located in the enterprise zone.
  179  
  180  A person shall be deemed to be employed if the person performs
  181  duties in connection with the operations of the business on a
  182  regular, full-time basis, provided the person is performing such
  183  duties for an average of at least 36 hours per week each month.
  184  The person must be performing such duties at a business site
  185  located in the enterprise zone.
  186         (2)(a) It is the intent of the Legislature to encourage the
  187  provision of meaningful employment opportunities that will
  188  improve the quality of life of those employed and to encourage
  189  economic expansion of enterprise zones in the state. Upon an
  190  affirmative showing by an eligible business to the satisfaction
  191  of the department that the requirements of this section have
  192  been met, the business shall be allowed a credit against the tax
  193  remitted under this chapter.
  194         (b) The credit shall be computed as 20 percent of the
  195  actual monthly wages paid in this state to each new employee
  196  hired when a new job has been created, unless the business is
  197  located within a rural enterprise zone as defined in pursuant to
  198  s. 290.004, in which case the credit shall be 30 percent of the
  199  actual monthly wages paid. If no less than 20 percent of the
  200  employees of the business are residents of an enterprise zone,
  201  excluding temporary and part-time employees, the credit shall be
  202  computed as 30 percent of the actual monthly wages paid in this
  203  state to each new employee hired when a new job has been
  204  created, unless the business is located within a rural
  205  enterprise zone, in which case the credit shall be 45 percent of
  206  the actual monthly wages paid. If the new employee hired when a
  207  new job is created is a participant in the welfare transition
  208  program, the following credit shall be a percent of the actual
  209  monthly wages paid: 40 percent for $4 above the hourly federal
  210  minimum wage rate; 41 percent for $5 above the hourly federal
  211  minimum wage rate; 42 percent for $6 above the hourly federal
  212  minimum wage rate; 43 percent for $7 above the hourly federal
  213  minimum wage rate; and 44 percent for $8 above the hourly
  214  federal minimum wage rate. For purposes of this paragraph,
  215  monthly wages shall be computed as one-twelfth of the expected
  216  annual wages paid to such employee. The amount paid as wages to
  217  a new employee is the compensation paid to such employee that is
  218  subject to reemployment assistance tax. The credit shall be
  219  allowed for up to 24 consecutive months, beginning with the
  220  first tax return due pursuant to s. 212.11 after approval by the
  221  department.
  222         (3) In order to claim this credit, an eligible business
  223  must file under oath with the governing body or enterprise zone
  224  development agency having jurisdiction over the enterprise zone
  225  where the business is located, as applicable, a statement which
  226  includes:
  227         (e) Demonstration to the department that, on the date of
  228  application, the total number of full-time jobs defined under
  229  paragraph (1)(d) is greater than the total was 12 months prior
  230  to that date.
  231         (e)(f) The identifying number assigned pursuant to s.
  232  290.0065 to the enterprise zone in which the business is
  233  located.
  234         (f)(g) Whether the business is a small business as defined
  235  by s. 288.703(6).
  236         (g)(h) Within 10 working days after receipt of an
  237  application, the governing body or enterprise zone development
  238  agency shall review the application to determine if it contains
  239  all the information required pursuant to this subsection and
  240  meets the criteria set out in this section. The governing body
  241  or agency shall certify all applications that contain the
  242  information required pursuant to this subsection and meet the
  243  criteria set out in this section as eligible to receive a
  244  credit. If applicable, the governing body or agency shall also
  245  certify if 20 percent of the employees of the business are
  246  residents of an enterprise zone, excluding temporary and part
  247  time employees. The certification shall be in writing, and a
  248  copy of the certification shall be transmitted to the executive
  249  director of the Department of Revenue. The business shall be
  250  responsible for forwarding a certified application to the
  251  department within the time specified in paragraph (h) (i).
  252         (h)(i) All applications for a credit pursuant to this
  253  section must be submitted to the department within 6 months
  254  after the new employee is hired, except applications for credit
  255  for leased employees. Applications for credit for leased
  256  employees must be submitted to the department within 7 months
  257  after the employee is leased.
  258         (6) The credit provided in this section does not apply:
  259         (c) For any eligible business that terminates employees for
  260  the sole purpose of claiming the credit.
  261         (9) Any business which has claimed this credit shall not be
  262  allowed any credit under the provisions of s. 220.181 for any
  263  new employee beginning employment after July 1, 2013 1995.
  264         Section 3. Paragraph (a) of subsection (6) of section
  265  220.02, Florida Statutes, is amended to read:
  266         220.02 Legislative intent.—
  267         (6)(a) It is the intent of the Legislature that the
  268  enterprise zone job stimulus jobs credit provided by s. 220.181
  269  be applicable only to those businesses located in an enterprise
  270  zone. It is further the intent of the Legislature to provide an
  271  incentive for the increased provision of employment
  272  opportunities leading to the improvement of the quality of life
  273  of those employed and the positive expansion of the economy of
  274  the state as well as the economy of present enterprise zones.
  275         Section 4. Paragraphs (q), (ee) and (ff) of subsection (1)
  276  of section 220.03, Florida Statutes, are amended to read:
  277         220.03 Definitions.—
  278         (1) SPECIFIC TERMS.—When used in this code, and when not
  279  otherwise distinctly expressed or manifestly incompatible with
  280  the intent thereof, the following terms shall have the following
  281  meanings:
  282         (q) “New employee,” for the purposes of the enterprise zone
  283  job stimulus jobs credit, means a person residing in an
  284  enterprise zone or a participant in the welfare transition
  285  program who is employed at a business located in an enterprise
  286  zone who begins employment in the operations of the business
  287  after July 1, 2013 1995, and who has not been previously
  288  employed full time within the preceding 12 months by the
  289  business or a successor business claiming the credit pursuant to
  290  s. 220.181. A person shall be deemed to be employed by such a
  291  business if the person performs duties in connection with the
  292  operations of the business on a full-time basis, provided she or
  293  he is performing such duties for an average of at least 36 hours
  294  per week each month. The person must be performing such duties
  295  at a business site located in an enterprise zone. This paragraph
  296  expires on the date specified in s. 290.016 for the expiration
  297  of the Florida Enterprise Zone Act.
  298         (ee) “New job has been created” means that, on the date of
  299  application, the total number of full-time jobs is greater than
  300  the total was 12 months prior to that date, as demonstrated to
  301  the department by a business located in the enterprise zone.
  302         (ee)(ff) “Job” means a full-time position, as consistent
  303  with terms used by the Department of Economic Opportunity and
  304  the United States Department of Labor for purposes of
  305  reemployment assistance tax administration and employment
  306  estimation resulting directly from business operations in this
  307  state. The term may not include a temporary construction job
  308  involved with the construction of facilities or any job that has
  309  previously been included in any application for tax credits
  310  under s. 212.096. The term also includes employment of an
  311  employee leased from an employee leasing company licensed under
  312  chapter 468 if the employee has been continuously leased to the
  313  employer for an average of at least 36 hours per week for more
  314  than 6 months.
  315         Section 5. Paragraphs (a) and (b) of subsection (1) and
  316  subsections (2), (7), and (9) of section 220.181, Florida
  317  Statutes, are amended to read:
  318         220.181 Enterprise zone job stimulus jobs credit.—
  319         (1)(a) There shall be allowed a credit against the tax
  320  imposed by this chapter to any business located in an enterprise
  321  zone that employs one or more new employees which demonstrates
  322  to the department that, on the date of application, the total
  323  number of full-time jobs is greater than the total was 12 months
  324  before that date. The credit shall be computed as 20 percent of
  325  the actual monthly wages paid in this state to each new employee
  326  hired when a new job has been created, as defined under s.
  327  220.03(1)(ee), unless the business is located in a rural
  328  enterprise zone as defined in, pursuant to s. 290.004, in which
  329  case the credit shall be 30 percent of the actual monthly wages
  330  paid. If no less than 20 percent of the employees of the
  331  business are residents of an enterprise zone, excluding
  332  temporary and part-time employees, the credit shall be computed
  333  as 30 percent of the actual monthly wages paid in this state to
  334  each new employee hired when a new job has been created, unless
  335  the business is located in a rural enterprise zone, in which
  336  case the credit shall be 45 percent of the actual monthly wages
  337  paid, for a period of up to 24 consecutive months. If the new
  338  employee hired when a new job is created is a participant in the
  339  welfare transition program, the following credit shall be a
  340  percent of the actual monthly wages paid: 40 percent for $4
  341  above the hourly federal minimum wage rate; 41 percent for $5
  342  above the hourly federal minimum wage rate; 42 percent for $6
  343  above the hourly federal minimum wage rate; 43 percent for $7
  344  above the hourly federal minimum wage rate; and 44 percent for
  345  $8 above the hourly federal minimum wage rate.
  346         (b) This credit applies only with respect to wages subject
  347  to reemployment assistance tax. The credit provided in this
  348  section does not apply:
  349         1. For any employee who is an owner, partner, or majority
  350  stockholder of an eligible business.
  351         2. For any new employee who is employed for any period less
  352  than 3 months.
  353         3. For any eligible business that terminates employees for
  354  the sole purpose of claiming the credit.
  355         (2) When filing for an enterprise zone job stimulus jobs
  356  credit, a business must file under oath with the governing body
  357  or enterprise zone development agency having jurisdiction over
  358  the enterprise zone where the business is located, as
  359  applicable, a statement which includes:
  360         (a) For each new employee for whom this credit is claimed,
  361  the employee’s name and place of residence during the taxable
  362  year, including the identifying number assigned pursuant to s.
  363  290.0065 to the enterprise zone in which the new employee
  364  resides if the new employee is a person residing in an
  365  enterprise zone, and, if applicable, documentation that the
  366  employee is a welfare transition program participant.
  367         (b) If applicable, the name and address of each permanent
  368  employee of the business, including, for each employee who is a
  369  resident of an enterprise zone, the identifying number assigned
  370  pursuant to s. 290.0065 to the enterprise zone in which the
  371  employee resides.
  372         (c) The name and address of the business.
  373         (d) The identifying number assigned pursuant to s. 290.0065
  374  to the enterprise zone in which the eligible business is
  375  located.
  376         (e) The salary or hourly wages paid to each new employee
  377  claimed.
  378         (f) Demonstration to the department that, on the date of
  379  application, the total number of full-time jobs is greater than
  380  the total was 12 months prior to that date.
  381         (f)(g) Whether the business is a small business as defined
  382  by s. 288.703.
  383         (7) Any business which has claimed this credit shall not be
  384  allowed any credit under the provision of s. 212.096 for any new
  385  employee beginning employment after July 1, 2013 1995. The
  386  provisions of this subsection shall not apply when a corporation
  387  converts to an S corporation for purposes of compliance with the
  388  Internal Revenue Code of 1986, as amended; however, no
  389  corporation shall be allowed the benefit of this credit and the
  390  credit under s. 212.096 either for the same new employee or for
  391  the same taxable year. In addition, such a corporation shall not
  392  be allowed any credit under s. 212.096 until it has filed notice
  393  of its intent to change its status for tax purposes and until
  394  its final return under this chapter for the taxable year prior
  395  to such change has been filed.
  396         (9) This section, except paragraph (1)(c) and subsection
  397  (8), expires on the date specified in s. 290.016 for the
  398  expiration of the Florida Enterprise Zone Act, and a business
  399  may not begin claiming the enterprise zone job stimulus jobs
  400  credit after that date; however, the expiration of this section
  401  does not affect the operation of any credit for which a business
  402  has qualified under this section before that date, or any
  403  carryforward of unused credit amounts as provided in paragraph
  404  (1)(c).
  405         Section 6. Section 290.00677, Florida Statutes, is amended
  406  to read:
  407         290.00677 Rural enterprise zones; special qualifications.—
  408         (1) Notwithstanding the enterprise zone residency
  409  requirements set out in s. 212.096(1)(c), eligible businesses as
  410  defined in s. 212.096(1)(a) located in rural enterprise zones as
  411  defined in s. 290.004 may receive the basic minimum credit
  412  provided under s. 212.096 for creating a new job and hiring a
  413  person residing within the jurisdiction of a rural community as
  414  defined in s. 288.106(2). All other provisions of s. 212.096,
  415  including, but not limited to, those relating to the award of
  416  enhanced credits, apply to such businesses.
  417         (2) Notwithstanding the enterprise zone residency
  418  requirements set out in s. 220.03(1)(q), businesses as defined
  419  in s. 220.03(1)(c) located in rural enterprise zones as defined
  420  in s. 290.004 may receive the basic minimum credit provided
  421  under s. 220.181 for creating a new job and hiring a person
  422  residing within the jurisdiction of a rural community as defined
  423  in s. 288.106(2). All other provisions of s. 220.181, including,
  424  but not limited to, those relating to the award of enhanced
  425  credits, apply to such businesses.
  426         Section 7. Subsections (1) and (7) of section 290.007,
  427  Florida Statutes, are amended to read:
  428         290.007 State incentives available in enterprise zones.—The
  429  following incentives are provided by the state to encourage the
  430  revitalization of enterprise zones:
  431         (1) The enterprise zone job stimulus jobs credit provided
  432  in s. 220.181.
  433         (7) The enterprise zone job stimulus jobs credit against
  434  the sales tax provided in s. 212.096.
  435         Section 8. This act shall take effect July 1, 2013.

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