Bill Text: FL H0287 | 2011 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Economic Development

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Engrossed - Dead) 2011-05-05 - Ordered enrolled -HJ 1218 [H0287 Detail]

Download: Florida-2011-H0287-Comm_Sub.html

---

CS/HB 287

1	A bill to be entitled
2	An act relating to economic development; amending s.
3	196.012, F.S.; revising the definitions of the terms "new
4	business" and "expansion of an existing business";
5	providing for an average wage of a new job; providing
6	eligibility for target industry businesses; amending s.
7	196.1995, F.S.; authorizing the board of county
8	commissioners of a charter county to call and hold a
9	referendum to determine whether to grant economic
10	development ad valorem tax exemptions if in receipt of a
11	petition or initiative signed by a percentage of electors
12	as required by the county charter; revising the language
13	of ballot questions relating to the authority to grant
14	economic development tax exemptions; specifying additional
15	information that must be included in a written application
16	requesting adoption of an ordinance granting an economic
17	development ad valorem tax exemption; specifying factors
18	for a board of county commissioners or governing authority
19	of a municipality to consider when deciding whether to
20	approve or reject applications for economic development
21	tax exemptions; limiting the allowable duration of an
22	economic development tax exemption granted by a county or
23	municipal ordinance; authorizing written tax exemption
24	agreements consistent with this act upon approval of a tax
25	exemption application; limiting application of the act to
26	certain ad valorem tax exemptions granted pursuant to
27	referenda held on or after the act's effective date;
28	providing an effective date.
29
30	Be It Enacted by the Legislature of the State of Florida:
31
32	Section 1.  Subsections (15) and (16) of section 196.012,
33	Florida Statutes, are amended to read:
34	196.012  Definitions.-For the purpose of this chapter, the
35	following terms are defined as follows, except where the context
36	clearly indicates otherwise:
37	(15)  "New business" means:
38	(a)1.  A business or organization establishing 10 or more
39	new jobs to employ 10 or more full-time employees in this state,
40	paying an average wage for such new jobs that is above the
41	average wage in the area, which principally engages in any one
42	or more of the following operations: which
43	a.  Manufactures, processes, compounds, fabricates, or
44	produces for sale items of tangible personal property at a fixed
45	location and which comprises an industrial or manufacturing
46	plant; or
47	b.  Is a target industry business as defined in s.
48	288.106(2)(t);
49	2.  A business or organization establishing 25 or more new
50	jobs to employ 25 or more full-time employees in this state, the
51	sales factor of which, as defined by s. 220.15(5), for the
52	facility with respect to which it requests an economic
53	development ad valorem tax exemption is less than 0.50 for each
54	year the exemption is claimed; or
55	3.  An office space in this state owned and used by a
56	business or organization corporation newly domiciled in this
57	state; provided such office space houses 50 or more full-time
58	employees of such business or organization corporation; provided
59	that such business or organization office first begins operation
60	on a site clearly separate from any other commercial or
61	industrial operation owned by the same business or organization.
62	(b)  Any business or organization located in an enterprise
63	zone or brownfield area that first begins operation on a site
64	clearly separate from any other commercial or industrial
65	operation owned by the same business or organization.
66	(c)  A business or organization that is situated on
67	property annexed into a municipality and that, at the time of
68	the annexation, is receiving an economic development ad valorem
69	tax exemption from the county under s. 196.1995.
70	(16)  "Expansion of an existing business" means:
71	(a)1.  A business or organization establishing 10 or more
72	new jobs to employ 10 or more full-time employees in this state,
73	paying an average wage for such new jobs that is above the
74	average wage in the area, which principally engages in any of
75	the operations referred to in subparagraph (15)(a)1. which
76	manufactures, processes, compounds, fabricates, or produces for
77	sale items of tangible personal property at a fixed location and
78	which comprises an industrial or manufacturing plant; or
79	2.  A business or organization establishing 25 or more new
80	jobs to employ 25 or more full-time employees in this state, the
81	sales factor of which, as defined by s. 220.15(5), for the
82	facility with respect to which it requests an economic
83	development ad valorem tax exemption is less than 0.50 for each
84	year the exemption is claimed; provided that such business
85	increases operations on a site located within the same county,
86	municipality, or both colocated with a commercial or industrial
87	operation owned by the same business or organization under
88	common control with the same business or organization, resulting
89	in a net increase in employment of not less than 10 percent or
90	an increase in productive output or sales of not less than 10
91	percent.
92	(b)  Any business or organization located in an enterprise
93	zone or brownfield area that increases operations on a site
94	located within the same zone or area colocated with a commercial
95	or industrial operation owned by the same business or
96	organization under common control with the same business or
97	organization.
98	Section 2.  Section 196.1995, Florida Statutes, is amended
99	to read:
100	196.1995  Economic development ad valorem tax exemption.-
101	(1)  The board of county commissioners of any county or the
102	governing authority of any municipality shall call a referendum
103	within its total jurisdiction to determine whether its
104	respective jurisdiction may grant economic development ad
105	valorem tax exemptions under s. 3, Art. VII of the State
106	Constitution if:
107	(a)  The board of county commissioners of the county or the
108	governing authority of the municipality votes to hold such
109	referendum; or
110	(b)  The board of county commissioners of the county or the
111	governing authority of the municipality receives a petition
112	signed by 10 percent of the registered electors of its
113	respective jurisdiction, which petition calls for the holding of
114	such referendum; or
115	(c)  The board of county commissioners of a charter county
116	receives a petition or initiative signed by the required
117	percentage of registered electors in accordance with the
118	procedures established in the county's charter for the enactment
119	of ordinances or for approval of amendments of the charter, if
120	less than 10 percent, which petition or initiative calls for the
121	holding of such referendum.
122	(2)  The ballot question in such referendum shall be in
123	substantially the following form:
124
125	Shall the board of county commissioners of this county (or the
126	governing authority of this municipality, or both) be authorized
127	to grant, pursuant to s. 3, Art. VII of the State Constitution,
128	property tax exemptions to new businesses and expansions of
129	existing businesses that are expected to create new, full-time
130	jobs in the county (or municipality, or both)?
131
132	.... Yes-For authority to grant exemptions.
133	.... No-Against authority to grant exemptions.
134
135	(3)  The board of county commissioners or the governing
136	authority of the municipality that calls a referendum within its
137	total jurisdiction to determine whether its respective
138	jurisdiction may grant economic development ad valorem tax
139	exemptions may vote to limit the effect of the referendum to
140	authority to grant economic development tax exemptions for new
141	businesses and expansions of existing businesses located in an
142	enterprise zone or a brownfield area, as defined in s.
143	376.79(4). If an area nominated to be an enterprise zone
144	pursuant to s. 290.0055 has not yet been designated pursuant to
145	s. 290.0065, the board of county commissioners or the governing
146	authority of the municipality may call such referendum prior to
147	such designation; however, the authority to grant economic
148	development ad valorem tax exemptions does not apply until such
149	area is designated pursuant to s. 290.0065. The ballot question
150	in such referendum shall be in substantially the following form
151	and shall be used in lieu of the ballot question prescribed in
152	subsection (2):
153
154	Shall the board of county commissioners of this county (or the
155	governing authority of this municipality, or both) be authorized
156	to grant, pursuant to s. 3, Art. VII of the State Constitution,
157	property tax exemptions for new businesses and expansions of
158	existing businesses that which are located in an enterprise zone
159	or a brownfield area and that are expected to create new, full-
160	time jobs in the county (or municipality, or both)?
161
162	....Yes-For authority to grant exemptions.
163	....No-Against authority to grant exemptions.
164
165	(4)  A referendum pursuant to this section may be called
166	only once in any 12-month period.
167	(5)  Upon a majority vote in favor of such authority, the
168	board of county commissioners or the governing authority of the
169	municipality, at its discretion, by ordinance may exempt from ad
170	valorem taxation up to 100 percent of the assessed value of all
171	improvements to real property made by or for the use of a new
172	business and of all tangible personal property of such new
173	business, or up to 100 percent of the assessed value of all
174	added improvements to real property made to facilitate the
175	expansion of an existing business and of the net increase in all
176	tangible personal property acquired to facilitate such expansion
177	of an existing business, provided that the improvements to real
178	property are made or the tangible personal property is added or
179	increased on or after the day the ordinance is adopted. However,
180	if the authority to grant exemptions is approved in a referendum
181	in which the ballot question contained in subsection (3) appears
182	on the ballot, the authority of the board of county
183	commissioners or the governing authority of the municipality to
184	grant exemptions is limited solely to new businesses and
185	expansions of existing businesses that are located in an
186	enterprise zone or brownfield area. Property acquired to replace
187	existing property shall not be considered to facilitate a
188	business expansion. The exemption applies only to taxes levied
189	by the respective unit of government granting the exemption. The
190	exemption does not apply, however, to taxes levied for the
191	payment of bonds or to taxes authorized by a vote of the
192	electors pursuant to s. 9(b) or s. 12, Art. VII of the State
193	Constitution. Any such exemption shall remain in effect for up
194	to 10 years with respect to any particular facility, regardless
195	of any change in the authority of the county or municipality to
196	grant such exemptions. The exemption shall not be prolonged or
197	extended by granting exemptions from additional taxes or by
198	virtue of any reorganization or sale of the business receiving
199	the exemption.
200	(6)  With respect to a new business as defined by s.
201	196.012(15)(c), the municipality annexing the property on which
202	the business is situated may grant an economic development ad
203	valorem tax exemption under this section to that business for a
204	period that will expire upon the expiration of the exemption
205	granted by the county. If the county renews the exemption under
206	subsection (7), the municipality may also extend its exemption.
207	A municipal economic development ad valorem tax exemption
208	granted under this subsection may not extend beyond the duration
209	of the county exemption.
210	(7)  The authority to grant exemptions under this section
211	expires 10 years after the date such authority was approved in
212	an election, but such authority may be renewed for subsequent
213	10-year periods if each 10-year renewal is approved in a
214	referendum called and held pursuant to this section.
215	(8)  Any person, firm, or corporation which desires an
216	economic development ad valorem tax exemption shall, in the year
217	the exemption is desired to take effect, file a written
218	application on a form prescribed by the department with the
219	board of county commissioners or the governing authority of the
220	municipality, or both. The application shall request the
221	adoption of an ordinance granting the applicant an exemption
222	pursuant to this section and shall include the following
223	information:
224	(a)  The name and location of the new business or the
225	expansion of an existing business;
226	(b)  A description of the improvements to real property for
227	which an exemption is requested and the date of commencement of
228	construction of such improvements;
229	(c)  A description of the tangible personal property for
230	which an exemption is requested and the dates when such property
231	was or is to be purchased;
232	(d)  Proof, to the satisfaction of the board of county
233	commissioners or the governing authority of the municipality,
234	that the applicant is a new business or an expansion of an
235	existing business, as defined in s. 196.012(15) or (16); and
236	(e)  Other information deemed necessary or appropriate by
237	the department, county, or municipality.
238	(9)  Before it takes action on the application, the board
239	of county commissioners or the governing authority of the
240	municipality shall deliver a copy of the application to the
241	property appraiser of the county. After careful consideration,
242	the property appraiser shall report the following information to
243	the board of county commissioners or the governing authority of
244	the municipality:
245	(a)  The total revenue available to the county or
246	municipality for the current fiscal year from ad valorem tax
247	sources, or an estimate of such revenue if the actual total
248	revenue available cannot be determined;
249	(b)  Any revenue lost to the county or municipality for the
250	current fiscal year by virtue of exemptions previously granted
251	under this section, or an estimate of such revenue if the actual
252	revenue lost cannot be determined;
253	(c)  An estimate of the revenue which would be lost to the
254	county or municipality during the current fiscal year if the
255	exemption applied for were granted had the property for which
256	the exemption is requested otherwise been subject to taxation;
257	and
258	(d)  A determination as to whether the property for which
259	an exemption is requested is to be incorporated into a new
260	business or the expansion of an existing business, as defined in
261	s. 196.012(15) or (16), or into neither, which determination the
262	property appraiser shall also affix to the face of the
263	application. Upon the request of the property appraiser, the
264	department shall provide to him or her such information as it
265	may have available to assist in making such determination.
266	(10)  In considering any application for an exemption under
267	this section, the board of county commissioners or the governing
268	authority of the municipality must take into account the
269	following:
270	(a)  The total number of net new jobs to be created by the
271	applicant;
272	(b)  The average wage of the new jobs;
273	(c)  The capital investment to be made by the applicant;
274	(d)  The type of business or operation and whether it
275	qualifies as a targeted industry as may be identified from time
276	to time by the board of county commissioners or the governing
277	authority of the municipality;
278	(e)  The environmental impact of the proposed business or
279	operation;
280	(f)  The extent to which the applicant intends to source
281	its supplies and materials within the applicable jurisdiction;
282	and
283	(g)  Any other economic-related characteristics or criteria
284	deemed necessary by the board of county commissioners or the
285	governing authority of the municipality.
286	(11)(10)  An ordinance granting an exemption under this
287	section shall be adopted in the same manner as any other
288	ordinance of the county or municipality and shall include the
289	following:
290	(a)  The name and address of the new business or expansion
291	of an existing business to which the exemption is granted;
292	(b)  The total amount of revenue available to the county or
293	municipality from ad valorem tax sources for the current fiscal
294	year, the total amount of revenue lost to the county or
295	municipality for the current fiscal year by virtue of economic
296	development ad valorem tax exemptions currently in effect, and
297	the estimated revenue loss to the county or municipality for the
298	current fiscal year attributable to the exemption of the
299	business named in the ordinance;
300	(c)  The period of time for which the exemption will remain
301	in effect and the expiration date of the exemption, which may be
302	any period of time up to 10 years; and
303	(d)  A finding that the business named in the ordinance
304	meets the requirements of s. 196.012(15) or (16).
305	(12)  Upon approval of any application for an exemption
306	under this section, the board of county commissioners or the
307	governing authority of the municipality may enter into a written
308	exemption agreement with the applicant covering such additional
309	details and related terms and conditions as may be deemed
310	necessary or appropriate by such board or governing authority,
311	which agreement may not be inconsistent with the requirements of
312	this section or of applicable law.
313	Section 3.  This act shall take effect July 1, 2011, and
314	shall apply only to exemptions from ad valorem taxation granted
315	pursuant to referenda held on or after July 1, 2011, under the
316	provisions of s. 196.1995(1), Florida Statutes.

CODING: Words stricken are deletions; words underlined are additions.