Florida Senate - 2010                                     SB 414
       
       
       
       By Senator Bullard
       
       
       
       
       39-00187-10                                            2010414__
    1                        A bill to be entitled                      
    2         An act relating to super enterprise zones; amending s.
    3         212.02, F.S.; defining the term “certified business”
    4         for purposes of a tax exemption provided to certain
    5         businesses located within a super enterprise zone;
    6         providing for future expiration; amending s. 212.08,
    7         F.S.; providing a tax exemption for certain property
    8         purchased for use or consumption by businesses in a
    9         super enterprise zone and for retail sales made by
   10         certified businesses in a super enterprise zone;
   11         providing an exception; specifying periods for
   12         applying the exemptions for certain businesses;
   13         providing for future expiration of the exemption;
   14         amending s. 290.0056, F.S.; providing additional
   15         responsibilities of an enterprise zone development
   16         agency relating to super enterprise zones; requiring
   17         an economic impact report; providing for future
   18         expiration; amending s. 290.0057, F.S.; applying
   19         requirements for an enterprise zone development plan
   20         to super enterprise zones; creating s. 290.00681,
   21         F.S.; requiring the Office of Tourism, Trade, and
   22         Economic Development to designate specified areas in
   23         Miami-Dade County as pilot project super enterprise
   24         zones for a certain period; providing qualification
   25         criteria; providing application requirements;
   26         providing for future expiration and revocation of the
   27         designation; creating s. 290.00682, F.S.; providing
   28         requirements for qualification as a certified business
   29         for purposes of the sales tax exemption; authorizing a
   30         local enterprise zone development agency to certify
   31         businesses; requiring the agency to provide lists of
   32         certified businesses; providing for disqualifying
   33         certified businesses under certain circumstances;
   34         providing for future expiration and revocation of
   35         certifications; amending s. 290.007, F.S.; specifying
   36         incentives for the revitalization of super enterprise
   37         zones; requiring interim and final reviews of super
   38         enterprise zones by the Office of Program Policy
   39         Analysis and Government Accountability; providing
   40         review criteria; requiring reports to the Legislature;
   41         providing an effective date.
   42  
   43  Be It Enacted by the Legislature of the State of Florida:
   44  
   45         Section 1. Subsection (34) is added to section 212.02,
   46  Florida Statutes, to read:
   47         212.02 Definitions.—The following terms and phrases when
   48  used in this chapter have the meanings ascribed to them in this
   49  section, except where the context clearly indicates a different
   50  meaning:
   51         (34) “Certified business” means a business that is located
   52  in a super enterprise zone and that is certified under s.
   53  290.00682. This subsection expires June 30, 2023.
   54         Section 2. Subsection (19) is added to section 212.08,
   55  Florida Statutes, to read:
   56         212.08 Sales, rental, use, consumption, distribution, and
   57  storage tax; specified exemptions.—The sale at retail, the
   58  rental, the use, the consumption, the distribution, and the
   59  storage to be used or consumed in this state of the following
   60  are hereby specifically exempt from the tax imposed by this
   61  chapter.
   62         (19) EXEMPTIONS; SUPER ENTERPRISE ZONES.—
   63         (a) The tax imposed by this chapter does not apply to:
   64         1. Tangible personal property purchased by a certified
   65  business for the exclusive use or consumption of that business
   66  within a super enterprise zone; or
   67         2. Retail sales of tangible personal property made by a
   68  certified business from a place of business that is owned or
   69  leased and operated by the business for the purpose of making
   70  retail sales and that is located in a super enterprise zone. The
   71  exemption provided by this subparagraph does not apply to the
   72  retail sale of any item having a price greater than $1,000. In
   73  order to qualify for the exemption under this subparagraph, the
   74  purchaser must take possession of the qualified item within the
   75  super enterprise zone or the qualified item must be shipped from
   76  inside the super enterprise zone; however, the item may be
   77  shipped to any location. For purposes of this subsection, each
   78  qualified sale made by a certified business that is located in a
   79  super enterprise zone shall be deemed to have occurred within
   80  the super enterprise zone regardless of where the transfer of
   81  title or possession takes place.
   82         (b) Notwithstanding paragraph (a), a new business
   83  established in a super enterprise zone and certified on or after
   84  July 1, 2011, pursuant to s. 290.00682, is eligible for the
   85  exemptions provided under this subsection for a period not to
   86  exceed 10 years immediately following such certification. For an
   87  existing business located in a super enterprise zone and
   88  certified on or after July 1, 2011, the exemptions provided
   89  under this subsection are available for a period not to exceed 5
   90  years, beginning in the year in which the business receives its
   91  initial certification and continuing for up to 5 years
   92  immediately following such certification.
   93         (c) This subsection expires June 30, 2023.
   94         Section 3. Paragraph (i) is added to subsection (8) of
   95  section 290.0056, Florida Statutes, present paragraph (f) of
   96  subsection (11) of that section is redesignated as paragraph
   97  (g), and a new paragraph (f) is added to that subsection, to
   98  read:
   99         290.0056 Enterprise zone development agency.—
  100         (8) The enterprise zone development agency shall have the
  101  following powers and responsibilities:
  102         (i)1. To recommend and submit an application to the office
  103  for the designation of a super enterprise zone.
  104         2. To coordinate with the local governmental entity for the
  105  exemptions from the sales and use tax provided under s.
  106  212.08(19).
  107  
  108  Notwithstanding section 11 of chapter 2005-287, Laws of Florida,
  109  this paragraph expires June 30, 2023.
  110         (11) Prior to December 1 of each year, the agency shall
  111  submit to the Office of Tourism, Trade, and Economic Development
  112  a complete and detailed written report setting forth:
  113         (f) The economic impact of a super enterprise zone, if
  114  applicable, including:
  115         1. A list of each certified business and whether the
  116  business is new or where the business relocated from.
  117         2. The number of jobs created.
  118         3. The percentage of employees who are employed by
  119  certified businesses and who reside in the super enterprise zone
  120  or in an enterprise zone within the same county.
  121         4. The extent of capital investment by certified businesses
  122  within the zone.
  123         5. The success of the super enterprise zone as measured by
  124  the strategic plan and methods identified in s. 290.0057(1)(i).
  125  
  126  Notwithstanding section 11 of chapter 2005-287, Laws of Florida,
  127  this paragraph expires June 30, 2023.
  128         Section 4. Subsection (1) of section 290.0057, Florida
  129  Statutes, is amended to read:
  130         290.0057 Enterprise zone development plan.—
  131         (1) Any application for designation as a new enterprise
  132  zone or super enterprise zone must be accompanied by a strategic
  133  plan adopted by the governing body of the municipality or
  134  county, or the governing bodies of the county and one or more
  135  municipalities together. At a minimum, the plan must:
  136         (a) Briefly describe the community’s goals for revitalizing
  137  the area.
  138         (b) Describe the ways in which the community’s approaches
  139  to economic development, social and human services,
  140  transportation, housing, community development, public safety,
  141  and educational and environmental concerns will be addressed in
  142  a coordinated fashion, and explain how these linkages support
  143  the community’s goals.
  144         (c) Identify and describe key community goals and the
  145  barriers that restrict the community from achieving these goals,
  146  including a description of poverty and general distress,
  147  barriers to economic opportunity and development, and barriers
  148  to human development.
  149         (d) Describe the process by which the affected community is
  150  a full partner in the process of developing and implementing the
  151  plan and the extent to which local institutions and
  152  organizations have contributed to the planning process.
  153         (e) Commit the governing body or bodies to enact and
  154  maintain local fiscal and regulatory incentives, if approval for
  155  the area is received under s. 290.0065. These incentives may
  156  include the municipal public service tax exemption provided by
  157  s. 166.231, the economic development ad valorem tax exemption
  158  provided by s. 196.1995, the business tax exemption provided by
  159  s. 205.054, local impact fee abatement or reduction, or low
  160  interest or interest-free loans or grants to businesses to
  161  encourage the revitalization of the nominated area.
  162         (f) Identify the amount of local and private resources that
  163  will be available in the nominated area and the private-public
  164  private/public partnerships to be used, which may include
  165  participation by, and cooperation with, universities, community
  166  colleges, small business development centers, black business
  167  investment corporations, certified development corporations, and
  168  other private and public entities.
  169         (g) Indicate how state enterprise zone tax incentives and
  170  state, local, and federal resources will be used utilized within
  171  the nominated area.
  172         (h) Identify the funding requested under any state or
  173  federal program in support of the proposed economic, human,
  174  community, and physical development and related activities.
  175         (i) Identify baselines, methods, and benchmarks for
  176  measuring the success of carrying out the strategic plan.
  177         Section 5. Sections 290.00681 and 290.00682, Florida
  178  Statutes, are created to read:
  179         290.00681 Super enterprise zone pilot project; designation;
  180  future expiration and revocation.—
  181         (1) The Office of Tourism, Trade, and Economic Development
  182  shall designate four areas in the state as super enterprise
  183  zones for a 10-year period. These areas shall serve as a pilot
  184  project for this program. Specifically, the area in Miami-Dade
  185  County bordered by Northwest 23rd Street to the north, Northwest
  186  5th Street to the south, Northeast 1st Avenue to the east, and
  187  Northwest 8th Avenue to the west shall be designated as a super
  188  enterprise zone and the area of Overtown in Miami-Dade County
  189  shall be designated as super enterprise zones. In order to
  190  qualify as a super enterprise zone an area must:
  191         (a) Be located in an enterprise zone and be no larger than
  192  3 contiguous square miles.
  193         (b) Have an average unemployment rate four times greater
  194  than the state average.
  195         (c) Have a minimum of 40 percent of residents living below
  196  the federal poverty level.
  197         (d) Have general distress of business and residential
  198  property such that the local governing body by resolution has
  199  determined that the buildings are substandard, unsafe,
  200  unsanitary, dilapidated, or obsolete, or any combination of such
  201  conditions, and are detrimental to the safety, health, and
  202  welfare of the community.
  203         (e) Demonstrate evidence of significant job loss or
  204  dislocation in the area.
  205  
  206  In determining whether an area meets the criteria of this
  207  subsection for unemployment, poverty, and general distress, the
  208  office shall use data from the most current decennial census and
  209  from information published by the Bureau of the Census and the
  210  Bureau of Labor Statistics. The data shall be comparable in
  211  point or period of time and methodology employed.
  212         (2) Any application for designation as a super enterprise
  213  zone must:
  214         (a) Briefly describe the community’s goals for revitalizing
  215  the area and include a development plan.
  216         (b) Describe the ways in which the community’s approach to
  217  economic development, social and human services, transportation,
  218  housing, community development, public safety, and educational
  219  and environmental concerns will be addressed in a coordinated
  220  fashion and explain how these linkages support the community’s
  221  goals.
  222         (c) Identify and describe key community goals and the
  223  barriers that restrict the community from achieving these goals.
  224         (d) Identify the amount of local and private support and
  225  resources that will be available.
  226         (e) Identify baselines, methods, and benchmarks for
  227  measuring success.
  228         (f) Include written approval from any associated county
  229  office and mayor’s office.
  230         (3) This section expires June 30, 2023, and any designation
  231  made pursuant to this section shall be revoked on that date.
  232         290.00682 Super enterprise zones; business certification.—
  233         (1) A certified business is eligible for the tax exemptions
  234  provided in s. 212.08(19). In order to qualify as a certified
  235  business, receive an exemption certificate, and continue to
  236  receive the tax exemptions provided in s. 212.08(19), a business
  237  must:
  238         (a) File an application for certification with the local
  239  enterprise zone development agency. The application shall be
  240  filed no later than September 1 preceding the calendar year for
  241  which the business is seeking an exemption.
  242         (b) Operate and be located within a designated super
  243  enterprise zone.
  244         (c) Create new employment within the super enterprise zone
  245  while not causing unemployment elsewhere in the state.
  246         (d) Certify to the best of the business’s knowledge that
  247  the business has no delinquent federal or state tax obligations.
  248         (e) Demonstrate that no fewer than 20 percent of its
  249  employees are residents of the designated super enterprise zone
  250  or an enterprise zone located within the same county. The
  251  employment requirement may be waived by the local enterprise
  252  zone development agency for good cause.
  253         (2) A local enterprise zone development agency may certify
  254  a business as eligible for the exemptions under s. 212.08(19)
  255  annually if the business meets the requirements in subsection
  256  (1).Each local enterprise zone development agency shall
  257  annually provide to the local governmental entity, the office,
  258  and the Department of Revenue a list of new and existing
  259  certified businesses. The Department of Revenue shall annually
  260  issue a tax exemption certificate to each business holding an
  261  exemption certificate issued by the local enterprise zone
  262  development agency. The certificate remains in effect for 1
  263  calendar year.
  264         (3) A local enterprise zone development agency may
  265  disqualify a certified business at any time if the business
  266  fails to meet the requirements of subsection (1). A business
  267  that makes a fraudulent claim under this section for tax
  268  exemptions provided in s. 212.08(19) is liable for the payment
  269  of the tax due, together with the penalties set forth in s.
  270  212.085, and as otherwise provided by law.
  271         (4) This section expires June 30, 2023, and any
  272  certification made pursuant to this section shall be revoked on
  273  that date.
  274         Section 6. Section 290.007, Florida Statutes, is amended to
  275  read:
  276         290.007 State incentives available in enterprise zones and
  277  super enterprise zones.—
  278         (1) The following incentives are provided by the state to
  279  encourage the revitalization of enterprise zones:
  280         (a)(1) The enterprise zone jobs credit provided in s.
  281  220.181.
  282         (b)(2) The enterprise zone property tax credit provided in
  283  s. 220.182.
  284         (c)(3) The community contribution tax credits provided in
  285  ss. 212.08, 220.183, and 624.5105.
  286         (d)(4) The sales tax exemption for building materials used
  287  in the rehabilitation of real property in enterprise zones
  288  provided in s. 212.08(5)(g).
  289         (e)(5) The sales tax exemption for business equipment used
  290  in an enterprise zone provided in s. 212.08(5)(h).
  291         (f)(6) The sales tax exemption for electrical energy used
  292  in an enterprise zone provided in s. 212.08(15).
  293         (g)(7) The enterprise zone jobs credit against the sales
  294  tax provided in s. 212.096.
  295         (h)(8) Notwithstanding any law to the contrary, the Public
  296  Service Commission may allow public utilities and
  297  telecommunications companies to grant discounts of up to 50
  298  percent on tariffed rates for services to small businesses
  299  located in an enterprise zone designated pursuant to s.
  300  290.0065. Such discounts may be granted for a period not to
  301  exceed 5 years. For purposes of this paragraph subsection, the
  302  term “public utility” has the same meaning as in s. 366.02(1)
  303  and the term “telecommunications company” has the same meaning
  304  as in s. 364.02(14).
  305         (2) The following incentives are provided by the state to
  306  encourage the revitalization of super enterprise zones:
  307         (a) The sales tax exemption for certified businesses
  308  provided in s. 212.08(19)(a)1.
  309         (b) The sales tax exemption for retail sales by certified
  310  businesses provided in s. 212.08(19)(a)2.
  311         Section 7. Before the 2017 Regular Session of the
  312  Legislature, the Office of Program Policy Analysis and
  313  Government Accountability shall conduct an interim review and
  314  evaluation of the effectiveness and viability of the super
  315  enterprise zones designated under s. 290.00681, Florida
  316  Statutes. The office shall specifically evaluate whether relief
  317  from the specified taxes caused or induced new investment and
  318  development in the super enterprise zones; increased the number
  319  of jobs created or retained in the super enterprise zones;
  320  caused or induced the renovation, rehabilitation, restoration,
  321  improvement, or new construction of businesses or housing within
  322  the super enterprise zones; or contributed to the economic
  323  viability and profitability of business and commerce located
  324  within the super enterprise zones. The office shall submit a
  325  report of its findings and recommendations to the President of
  326  the Senate and the Speaker of the House of Representatives by
  327  December 1, 2016. In 2022, the office shall conduct a final
  328  review in accordance with this section and make a final report
  329  to the President of the Senate and the Speaker of the House of
  330  Representatives by December 1, 2022.
  331         Section 8. This act shall take effect July 1, 2010.


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