Bill Text: FL H0997 | 2010 | Regular Session | Introduced

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Bill Title: Enterprise Zone Economic Stimulus

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Failed) 2010-04-30 - Died in Committee on Economic Development Policy (EDCA) [H0997 Detail]

Download: Florida-2010-H0997-Introduced.html

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HB 997

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 s.
5	212.096, F.S.; renaming the enterprise zone jobs credit as
6	the enterprise zone job stimulus credit; conforming
7	definitions to changes made by the act; providing
8	additional legislative intent; authorizing the enterprise
9	zone job stimulus credit against the sales tax to be
10	applied to new employees hired; revising criteria for
11	claiming the credit; deleting the minimum threshold
12	requirement for full-time jobs required to claim the
13	credit; specifying an additional criterion for
14	nonapplication of the credit to eligible businesses;
15	amending s. 220.02, F.S.; conforming terminology to
16	changes made by the act; amending s. 220.03, F.S.;
17	conforming definitions to changes made by the act;
18	amending s. 220.181, F.S.; renaming the enterprise zone
19	jobs credit as the enterprise zone job stimulus credit;
20	authorizing the enterprise zone job stimulus credit
21	against the corporate income tax to be applied to new
22	employees hired; revising criteria for claiming the
23	credit; deleting the minimum threshold requirement for
24	full-time jobs required to claim the credit; amending s.
25	290.00677, F.S., relating to rural enterprise zones;
26	conforming provisions to changes made by the act; amending
27	s. 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(1).
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 of formal approval by the department of the application
102	for the refund. No refund shall be granted under this paragraph
103	unless the amount to be refunded exceeds $100 in sales tax paid
104	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 are eligible for the exemption
124	provided under this paragraph if all requirements of this
125	paragraph are met. Such vessels and boats must be owned by a
126	business that is eligible to receive the exemption provided
127	under this paragraph. This exemption does not apply to the
128	purchase of a vessel or boat.
129	8. The department shall deduct an amount equal to 10
130	percent of each refund granted under the provisions of this
131	paragraph from the amount transferred into the Local Government
132	Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
133	for the county area in which the business property is located
134	and shall transfer that 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 $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) through (i) of subsection (3),
151	and subsection (9) of section 212.096, Florida Statutes, are
152	amended, and paragraph (c) is added to subsection (6) of that
153	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, 2010 1995.
169	(c) "New employee" means a person residing in an
170	enterprise zone or a participant in the welfare transition
171	program who begins employment with an eligible business after
172	July 1, 2010 1995, and who has not been previously employed full
173	time within the preceding 12 months by the eligible business, or
174	a successor eligible business, claiming the credit allowed by
175	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
260	for the sole purpose of claiming the credit.
261	(9) Any business which has claimed this credit shall not
262	be 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
283	zone 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
339	less 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.
361	290.0065 to the enterprise zone in which the eligible business
362	is 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
371	be allowed any credit under the provision of s. 212.096 for any
372	new 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.-
416	The following incentives are provided by the state to encourage
417	the 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.

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