November 12, 2019
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       Florida Senate - 2010                                    SB 2098
       
       
       
       By Senator Wise
       
       
       
       
       5-01467-10                                            20102098__
    1                        A bill to be entitled                      
    2         An act relating to enterprise zone economic stimulus;
    3         amending s. 212.08, F.S.; revising an exception to the
    4         definition of the term “recovery property”; amending
    5         s. 212.096, F.S.; renaming the enterprise zone jobs
    6         credit as the enterprise zone job stimulus credit;
    7         conforming definitions to changes made by the act;
    8         providing additional legislative intent; authorizing
    9         the enterprise zone job stimulus credit against the
   10         sales tax to be applied to new employees hired;
   11         revising criteria for claiming the credit; deleting
   12         the minimum threshold requirement for full-time jobs
   13         required to claim the credit; specifying an additional
   14         criterion 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., relating to rural
   26         enterprise zones; conforming provisions to changes
   27         made by the act; amending s. 290.007, F.S.; conforming
   28         terminology to changes made by the act; providing an
   29         effective date.
   30  
   31  Be It Enacted by the Legislature of the State of Florida:
   32  
   33         Section 1. Paragraph (h) of subsection (5) of section
   34  212.08, Florida Statutes, is amended to read:
   35         212.08 Sales, rental, use, consumption, distribution, and
   36  storage tax; specified exemptions.—The sale at retail, the
   37  rental, the use, the consumption, the distribution, and the
   38  storage to be used or consumed in this state of the following
   39  are hereby specifically exempt from the tax imposed by this
   40  chapter.
   41         (5) EXEMPTIONS; ACCOUNT OF USE.—
   42         (h) Business property used in an enterprise zone.—
   43         1. Business property purchased for use by businesses
   44  located in an enterprise zone which is subsequently used in an
   45  enterprise zone shall be exempt from the tax imposed by this
   46  chapter. This exemption inures to the business only through a
   47  refund of previously paid taxes. A refund shall be authorized
   48  upon an affirmative showing by the taxpayer to the satisfaction
   49  of the department that the requirements of this paragraph have
   50  been met.
   51         2. To receive a refund, the business must file under oath
   52  with the governing body or enterprise zone development agency
   53  having jurisdiction over the enterprise zone where the business
   54  is located, as applicable, an application which includes:
   55         a. The name and address of the business claiming the
   56  refund.
   57         b. The identifying number assigned pursuant to s. 290.0065
   58  to the enterprise zone in which the business is located.
   59         c. A specific description of the property for which a
   60  refund is sought, including its serial number or other permanent
   61  identification number.
   62         d. The location of the property.
   63         e. The sales invoice or other proof of purchase of the
   64  property, showing the amount of sales tax paid, the date of
   65  purchase, and the name and address of the sales tax dealer from
   66  whom the property was purchased.
   67         f. Whether the business is a small business as defined by
   68  s. 288.703(1).
   69         g. If applicable, the name and address of each permanent
   70  employee of the business, including, for each employee who is a
   71  resident of an enterprise zone, the identifying number assigned
   72  pursuant to s. 290.0065 to the enterprise zone in which the
   73  employee resides.
   74         3. Within 10 working days after receipt of an application,
   75  the governing body or enterprise zone development agency shall
   76  review the application to determine if it contains all the
   77  information required pursuant to subparagraph 2. and meets the
   78  criteria set out in this paragraph. The governing body or agency
   79  shall certify all applications that contain the information
   80  required pursuant to subparagraph 2. and meet the criteria set
   81  out in this paragraph as eligible to receive a refund. If
   82  applicable, the governing body or agency shall also certify if
   83  20 percent of the employees of the business are residents of an
   84  enterprise zone, excluding temporary and part-time employees.
   85  The certification shall be in writing, and a copy of the
   86  certification shall be transmitted to the executive director of
   87  the Department of Revenue. The business shall be responsible for
   88  forwarding a certified application to the department within the
   89  time specified in subparagraph 4.
   90         4. An application for a refund pursuant to this paragraph
   91  must be submitted to the department within 6 months after the
   92  tax is due on the business property that is purchased.
   93         5. The amount refunded on purchases of business property
   94  under this paragraph shall be the lesser of 97 percent of the
   95  sales tax paid on such business property or $5,000, or, if no
   96  less than 20 percent of the employees of the business are
   97  residents of an enterprise zone, excluding temporary and part
   98  time employees, the amount refunded on purchases of business
   99  property under this paragraph shall be the lesser of 97 percent
  100  of the sales tax paid on such business property or $10,000. A
  101  refund approved pursuant to this paragraph shall be made within
  102  30 days of formal approval by the department of the application
  103  for the refund. No refund shall be granted under this paragraph
  104  unless the amount to be refunded exceeds $100 in sales tax paid
  105  on purchases made within a 60-day time period.
  106         6. The department shall adopt rules governing the manner
  107  and form of refund applications and may establish guidelines as
  108  to the requisites for an affirmative showing of qualification
  109  for exemption under this paragraph.
  110         7. If the department determines that the business property
  111  is used outside an enterprise zone within 3 years from the date
  112  of purchase, the amount of taxes refunded to the business
  113  purchasing such business property shall immediately be due and
  114  payable to the department by the business, together with the
  115  appropriate interest and penalty, computed from the date of
  116  purchase, in the manner provided by this chapter.
  117  Notwithstanding this subparagraph, business property used
  118  exclusively in:
  119         a. Licensed commercial fishing vessels,
  120         b. Fishing guide boats, or
  121         c. Ecotourism guide boats
  122  
  123  that leave and return to a fixed location within an area
  124  designated under s. 379.2353 are eligible for the exemption
  125  provided under this paragraph if all requirements of this
  126  paragraph are met. Such vessels and boats must be owned by a
  127  business that is eligible to receive the exemption provided
  128  under this paragraph. This exemption does not apply to the
  129  purchase of a vessel or boat.
  130         8. The department shall deduct an amount equal to 10
  131  percent of each refund granted under the provisions of this
  132  paragraph from the amount transferred into the Local Government
  133  Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
  134  for the county area in which the business property is located
  135  and shall transfer that amount to the General Revenue Fund.
  136         9. For the purposes of this exemption, “business property”
  137  means new or used property defined as “recovery property” in s.
  138  168(c) of the Internal Revenue Code of 1954, as amended, except:
  139         a. Property classified as 3-year property under s.
  140  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
  141         b. Industrial machinery and equipment as defined in sub
  142  subparagraph (b)6.a. and eligible for exemption under paragraph
  143  (b);
  144         c. Building materials as defined in sub-subparagraph
  145  (g)8.a.; and
  146         d. Business property having a sales price of under $500
  147  $5,000 per unit.
  148         10. This paragraph expires on the date specified in s.
  149  290.016 for the expiration of the Florida Enterprise Zone Act.
  150         Section 2. Paragraphs (a), (c), and (e) of subsection (1),
  151  subsection (2), paragraphs (e) through (i) of subsection (3),
  152  and subsection (9) of section 212.096, Florida Statutes, are
  153  amended, and paragraph (c) is added to subsection (6) of that
  154  section, to read:
  155         212.096 Sales, rental, storage, use tax; enterprise zone
  156  job stimulus jobs credit against sales tax.—
  157         (1) For the purposes of the credit provided in this
  158  section:
  159         (a) “Eligible business” means any sole proprietorship,
  160  firm, partnership, corporation, bank, savings association,
  161  estate, trust, business trust, receiver, syndicate, or other
  162  group or combination, or successor business, located in an
  163  enterprise zone. The business must demonstrate to the department
  164  that, on the date of application, the total number of full-time
  165  jobs defined under paragraph (d) is greater than the total was
  166  12 months prior to that date. An eligible business does not
  167  include any business which has claimed the credit permitted
  168  under s. 220.181 for any new business employee first beginning
  169  employment with the business after July 1, 2010 1995.
  170         (c) “New employee” means a person residing in an enterprise
  171  zone or a participant in the welfare transition program who
  172  begins employment with an eligible business after July 1, 2010
  173  1995, and who has not been previously employed full time within
  174  the preceding 12 months by the eligible business, or a successor
  175  eligible business, claiming the credit allowed by this section.
  176         (e) “New job has been created” means that, on the date of
  177  application, the total number of full-time jobs is greater than
  178  the total was 12 months prior to that date, as demonstrated to
  179  the department by a business located in the enterprise zone.
  180  
  181  A person shall be deemed to be employed if the person performs
  182  duties in connection with the operations of the business on a
  183  regular, full-time basis, provided the person is performing such
  184  duties for an average of at least 36 hours per week each month.
  185  The person must be performing such duties at a business site
  186  located in the enterprise zone.
  187         (2)(a) It is the legislative intent to encourage the
  188  provision of meaningful employment opportunities that will
  189  improve the quality of life of those employed and to encourage
  190  economic expansion of enterprise zones and the state. Upon an
  191  affirmative showing by an eligible business to the satisfaction
  192  of the department that the requirements of this section have
  193  been met, the business shall be allowed a credit against the tax
  194  remitted under this chapter.
  195         (b) The credit shall be computed as 20 percent of the
  196  actual monthly wages paid in this state to each new employee
  197  hired when a new job has been created, unless the business is
  198  located within a rural enterprise zone pursuant to s.
  199  290.004(6), in which case the credit shall be 30 percent of the
  200  actual monthly wages paid. If no less than 20 percent of the
  201  employees of the business are residents of an enterprise zone,
  202  excluding temporary and part-time employees, the credit shall be
  203  computed as 30 percent of the actual monthly wages paid in this
  204  state to each new employee hired when a new job has been
  205  created, unless the business is located within a rural
  206  enterprise zone, in which case the credit shall be 45 percent of
  207  the actual monthly wages paid. If the new employee hired when a
  208  new job is created is a participant in the welfare transition
  209  program, the following credit shall be a percent of the actual
  210  monthly wages paid: 40 percent for $4 above the hourly federal
  211  minimum wage rate; 41 percent for $5 above the hourly federal
  212  minimum wage rate; 42 percent for $6 above the hourly federal
  213  minimum wage rate; 43 percent for $7 above the hourly federal
  214  minimum wage rate; and 44 percent for $8 above the hourly
  215  federal minimum wage rate. For purposes of this paragraph,
  216  monthly wages shall be computed as one-twelfth of the expected
  217  annual wages paid to such employee. The amount paid as wages to
  218  a new employee is the compensation paid to such employee that is
  219  subject to unemployment tax. The credit shall be allowed for up
  220  to 24 consecutive months, beginning with the first tax return
  221  due pursuant to s. 212.11 after approval by the 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(1).
  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, 2010 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) and (ee) of subsection (1) of
  276  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, 2010 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         Section 5. Paragraphs (a) and (b) of subsection (1) and
  303  subsections (2), (7), and (9) of section 220.181, Florida
  304  Statutes, are amended to read:
  305         220.181 Enterprise zone job stimulus jobs credit.—
  306         (1)(a) There shall be allowed a credit against the tax
  307  imposed by this chapter to any business located in an enterprise
  308  zone that employs one or more new employees which demonstrates
  309  to the department that, on the date of application, the total
  310  number of full-time jobs is greater than the total was 12 months
  311  prior to that date. The credit shall be computed as 20 percent
  312  of the actual monthly wages paid in this state to each new
  313  employee hired when a new job has been created, as defined under
  314  s. 220.03(1)(ee), unless the business is located in a rural
  315  enterprise zone, pursuant to s. 290.004(6), in which case the
  316  credit shall be 30 percent of the actual monthly wages paid. If
  317  no less than 20 percent of the employees of the business are
  318  residents of an enterprise zone, excluding temporary and part
  319  time employees, the credit shall be computed as 30 percent of
  320  the actual monthly wages paid in this state to each new employee
  321  hired when a new job has been created, unless the business is
  322  located in a rural enterprise zone, in which case the credit
  323  shall be 45 percent of the actual monthly wages paid, for a
  324  period of up to 24 consecutive months. If the new employee hired
  325  when a new job is created is a participant in the welfare
  326  transition program, the following credit shall be a percent of
  327  the actual monthly wages paid: 40 percent for $4 above the
  328  hourly federal minimum wage rate; 41 percent for $5 above the
  329  hourly federal minimum wage rate; 42 percent for $6 above the
  330  hourly federal minimum wage rate; 43 percent for $7 above the
  331  hourly federal minimum wage rate; and 44 percent for $8 above
  332  the hourly federal minimum wage rate.
  333         (b) This credit applies only with respect to wages subject
  334  to unemployment tax. The credit provided in this section does
  335  not apply:
  336         1. For any employee who is an owner, partner, or majority
  337  stockholder of an eligible business.
  338         2. For any new employee who is employed for any period less
  339  than 3 months.
  340         3. For any eligible business that terminates employees for
  341  the sole purpose of claiming the credit.
  342         (2) When filing for an enterprise zone job stimulus jobs
  343  credit, a business must file under oath with the governing body
  344  or enterprise zone development agency having jurisdiction over
  345  the enterprise zone where the business is located, as
  346  applicable, a statement which includes:
  347         (a) For each new employee for whom this credit is claimed,
  348  the employee’s name and place of residence during the taxable
  349  year, including the identifying number assigned pursuant to s.
  350  290.0065 to the enterprise zone in which the new employee
  351  resides if the new employee is a person residing in an
  352  enterprise zone, and, if applicable, documentation that the
  353  employee is a welfare transition program participant.
  354         (b) If applicable, the name and address of each permanent
  355  employee of the business, including, for each employee who is a
  356  resident of an enterprise zone, the identifying number assigned
  357  pursuant to s. 290.0065 to the enterprise zone in which the
  358  employee resides.
  359         (c) The name and address of the business.
  360         (d) The identifying number assigned pursuant to s. 290.0065
  361  to the enterprise zone in which the eligible business is
  362  located.
  363         (e) The salary or hourly wages paid to each new employee
  364  claimed.
  365         (f) Demonstration to the department that, on the date of
  366  application, the total number of full-time jobs is greater than
  367  the total was 12 months prior to that date.
  368         (f)(g) Whether the business is a small business as defined
  369  by s. 288.703(1).
  370         (7) Any business which has claimed this credit shall not be
  371  allowed any credit under the provision of s. 212.096 for any new
  372  employee beginning employment after July 1, 2010 1995. The
  373  provisions of this subsection shall not apply when a corporation
  374  converts to an S corporation for purposes of compliance with the
  375  Internal Revenue Code of 1986, as amended; however, no
  376  corporation shall be allowed the benefit of this credit and the
  377  credit under s. 212.096 either for the same new employee or for
  378  the same taxable year. In addition, such a corporation shall not
  379  be allowed any credit under s. 212.096 until it has filed notice
  380  of its intent to change its status for tax purposes and until
  381  its final return under this chapter for the taxable year prior
  382  to such change has been filed.
  383         (9) This section, except paragraph (1)(c) and subsection
  384  (8), expires on the date specified in s. 290.016 for the
  385  expiration of the Florida Enterprise Zone Act, and a business
  386  may not begin claiming the enterprise zone job stimulus jobs
  387  credit after that date; however, the expiration of this section
  388  does not affect the operation of any credit for which a business
  389  has qualified under this section before that date, or any
  390  carryforward of unused credit amounts as provided in paragraph
  391  (1)(c).
  392         Section 6. Section 290.00677, Florida Statutes, is amended
  393  to read:
  394         290.00677 Rural enterprise zones; special qualifications.—
  395         (1) Notwithstanding the enterprise zone residency
  396  requirements set out in s. 212.096(1)(c), eligible businesses as
  397  defined by s. 212.096(1)(a), located in rural enterprise zones
  398  as defined by s. 290.004, may receive the basic minimum credit
  399  provided under s. 212.096 for creating a new job and hiring a
  400  person residing within the jurisdiction of a rural county, as
  401  defined by s. 288.106(1)(r). All other provisions of s. 212.096,
  402  including, but not limited to, those relating to the award of
  403  enhanced credits, apply to such businesses.
  404         (2) Notwithstanding the enterprise zone residency
  405  requirements set out in s. 220.03(1)(q), businesses as defined
  406  by s. 220.03(1)(c), located in rural enterprise zones as defined
  407  in s. 290.004, may receive the basic minimum credit provided
  408  under s. 220.181 for creating a new job and hiring a person
  409  residing within the jurisdiction of a rural county, as defined
  410  by s. 288.106(1)(r). All other provisions of s. 220.181,
  411  including, but not limited to, those relating to the award of
  412  enhanced credits apply to such businesses.
  413         Section 7. Subsections (1) and (7) of section 290.007,
  414  Florida Statutes, are amended to read:
  415         290.007 State incentives available in enterprise zones.—The
  416  following incentives are provided by the state to encourage the
  417  revitalization of enterprise zones:
  418         (1) The enterprise zone job stimulus jobs credit provided
  419  in s. 220.181.
  420         (7) The enterprise zone job stimulus jobs credit against
  421  the sales tax provided in s. 212.096.
  422         Section 8. This act shall take effect July 1, 2010.

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