Bill Text: FL S0414 | 2010 | Regular Session | Comm Sub
Bill Title: Super Enterprise Zones [CPSC]
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2010-04-30 - Died in Committee on Community Affairs [S0414 Detail]
Download: Florida-2010-S0414-Comm_Sub.html
Florida Senate - 2010 CS for SB 414 By the Committee on Commerce; and Senator Bullard 577-04825-10 2010414c1 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, Lee, and Collier Counties as pilot project 24 super enterprise zones for a certain period; providing 25 qualification criteria; providing application 26 requirements; providing for future expiration and 27 revocation of the designations; creating s. 290.00682, 28 F.S.; providing requirements for qualification as a 29 certified business for purposes of the sales tax 30 exemption; authorizing a local enterprise zone 31 development agency to certify businesses; requiring 32 the agency to provide lists of certified businesses; 33 providing for disqualifying certified businesses under 34 certain circumstances; providing for future expiration 35 and revocation of certifications; amending s. 290.007, 36 F.S.; specifying incentives for the revitalization of 37 super enterprise zones; requiring interim and final 38 reviews of super enterprise zones by the Office of 39 Program Policy Analysis and Government Accountability; 40 providing review criteria; requiring reports to the 41 Legislature; 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 section, 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, 2022. 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 164private/publicpartnerships 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 usedutilizedwithin 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 six areas in the state as super enterprise zones 183 for a 10-year period. These areas shall serve as a pilot project 184 for this program. Specifically, the area in Miami-Dade County 185 bordered by Northwest 23rd Street to the north, Northwest 5th 186 Street to the south, Northeast 1st Avenue to the east, and 187 Northwest 8th Avenue to the west; the area of Overtown in Miami 188 Dade County; the incorporated area of the City of Ft. Myers in 189 Lee County; and the area of Immokalee in Collier County shall be 190 designated as super enterprise zones. In order to qualify as a 191 super enterprise zone, an area must: 192 (a) Be located in an enterprise zone and be no larger than 193 3 contiguous square miles. 194 (b) Have an average unemployment rate four times greater 195 than the state average. 196 (c) Have a minimum of 40 percent of residents living below 197 the federal poverty level. 198 (d) Have general distress of business and residential 199 property such that the local governing body by resolution has 200 determined that the buildings are substandard, unsafe, 201 unsanitary, dilapidated, or obsolete, or any combination of such 202 conditions, and are detrimental to the safety, health, and 203 welfare of the community. 204 (e) Demonstrate evidence of significant job loss or 205 dislocation in the area. 206 207 In determining whether an area meets the criteria of this 208 subsection for unemployment, poverty, and general distress, the 209 office shall use data from the most current decennial census and 210 from information published by the Bureau of the Census and the 211 Bureau of Labor Statistics. The data shall be comparable in 212 point or period of time and methodology employed. 213 (2) Any application for designation as a super enterprise 214 zone must: 215 (a) Briefly describe the community’s goals for revitalizing 216 the area and include a development plan. 217 (b) Describe the ways in which the community’s approach to 218 economic development, social and human services, transportation, 219 housing, community development, public safety, and educational 220 and environmental concerns will be addressed in a coordinated 221 fashion and explain how these linkages support the community’s 222 goals. 223 (c) Identify and describe key community goals and the 224 barriers that restrict the community from achieving these goals. 225 (d) Identify the amount of local and private support and 226 resources that will be available. 227 (e) Identify baselines, methods, and benchmarks for 228 measuring success. 229 (f) Include written approval from any associated county 230 office and mayor’s office. 231 (3) This section expires June 30, 2023, and any designation 232 made pursuant to this section shall be revoked on that date. 233 290.00682 Super enterprise zones; business certification.— 234 (1) A certified business is eligible for the tax exemptions 235 provided in s. 212.08(19). In order to qualify as a certified 236 business, receive an exemption certificate, and continue to 237 receive the tax exemptions provided in s. 212.08(19), a business 238 must: 239 (a) File an application for certification with the local 240 enterprise zone development agency. The application shall be 241 filed no later than September 1 preceding the calendar year for 242 which the business is seeking an exemption. 243 (b) Operate and be located within a designated super 244 enterprise zone. 245 (c) Create new employment within the super enterprise zone 246 while not causing unemployment elsewhere in the state. 247 (d) Certify to the best of the business’s knowledge that 248 the business has no delinquent federal or state tax obligations. 249 (e) Demonstrate that no fewer than 20 percent of its 250 employees are residents of the designated super enterprise zone 251 or an enterprise zone located within the same county. The 252 employment requirement may be waived by the local enterprise 253 zone development agency for good cause. 254 (2) A local enterprise zone development agency may certify 255 a business as eligible for the exemptions under s. 212.08(19) 256 annually if the business meets the requirements in subsection 257 (1). Each local enterprise zone development agency shall 258 annually provide the local governmental entity, the office, and 259 the Department of Revenue with a list of new and existing 260 certified businesses. The Department of Revenue shall annually 261 issue a tax exemption certificate to each business holding an 262 exemption certificate issued by the local enterprise zone 263 development agency. The certificate remains in effect for 1 264 calendar year. 265 (3) A local enterprise zone development agency may 266 disqualify a certified business at any time if the business 267 fails to meet the requirements of subsection (1). A business 268 that makes a fraudulent claim under this section for tax 269 exemptions provided in s. 212.08(19) is liable for the payment 270 of the tax due, together with the penalties set forth in s. 271 212.085, and as otherwise provided by law. 272 (4) This section expires June 30, 2023, and any 273 certification made pursuant to this section shall be revoked on 274 that date. 275 Section 6. Section 290.007, Florida Statutes, is amended to 276 read: 277 290.007 State incentives available in enterprise zones and 278 super enterprise zones.— 279 (1) The following incentives are provided by the state to 280 encourage the revitalization of enterprise zones: 281 (a)(1)The enterprise zone jobs credit provided in s. 282 220.181. 283 (b)(2)The enterprise zone property tax credit provided in 284 s. 220.182. 285 (c)(3)The community contribution tax credits provided in 286 ss. 212.08, 220.183, and 624.5105. 287 (d)(4)The sales tax exemption for building materials used 288 in the rehabilitation of real property in enterprise zones 289 provided in s. 212.08(5)(g). 290 (e)(5)The sales tax exemption for business equipment used 291 in an enterprise zone provided in s. 212.08(5)(h). 292 (f)(6)The sales tax exemption for electrical energy used 293 in an enterprise zone provided in s. 212.08(15). 294 (g)(7)The enterprise zone jobs credit against the sales 295 tax provided in s. 212.096. 296 (h)(8)Notwithstanding any law to the contrary, the Public 297 Service Commission may allow public utilities and 298 telecommunications companies to grant discounts of up to 50 299 percent on tariffed rates for services to small businesses 300 located in an enterprise zone designated pursuant to s. 301 290.0065. Such discounts may be granted for a period not to 302 exceed 5 years. For purposes of this paragraphsubsection, the 303 term “public utility” has the same meaning as in s. 366.02(1) 304 and the term “telecommunications company” has the same meaning 305 as in s. 364.02(14). 306 (2) The following incentives are provided by the state to 307 encourage the revitalization of super enterprise zones: 308 (a) The sales tax exemption for certified businesses 309 provided in s. 212.08(19)(a)1. 310 (b) The sales tax exemption for retail sales by certified 311 businesses provided in s. 212.08(19)(a)2. 312 Section 7. Before the 2017 Regular Session of the 313 Legislature, the Office of Program Policy Analysis and 314 Government Accountability shall conduct an interim review and 315 evaluation of the effectiveness and viability of the super 316 enterprise zones designated under s. 290.00681, Florida 317 Statutes. The office shall specifically evaluate whether relief 318 from the specified taxes caused or induced new investment and 319 development in the super enterprise zones; increased the number 320 of jobs created or retained in the super enterprise zones; 321 caused or induced the renovation, rehabilitation, restoration, 322 improvement, or new construction of businesses or housing within 323 the super enterprise zones; or contributed to the economic 324 viability and profitability of business and commerce located 325 within the super enterprise zones. The office shall submit a 326 report of its findings and recommendations to the President of 327 the Senate and the Speaker of the House of Representatives by 328 December 1, 2016. In 2022, the office shall conduct a final 329 review in accordance with this section and make a final report 330 to the President of the Senate and the Speaker of the House of 331 Representatives by December 1 of that year. 332 Section 8. This act shall take effect July 1, 2010.
