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

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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

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

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