Bill Text: FL S0506 | 2011 | Regular Session | Comm Sub


Bill Title: Economic Development

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-05-05 - Read 2nd time -SJ 970, 974 [S0506 Detail]

Download: Florida-2011-S0506-Comm_Sub.html
       Florida Senate - 2011                              CS for SB 506
       
       
       
       By the Committee on Community Affairs; and Senator Bogdanoff
       
       
       
       
       578-01986-11                                           2011506c1
    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
    4         “new business” and “expansion of an existing
    5         business”; amending s. 196.1995, F.S.; authorizing the
    6         board of county commissioners of a charter county to
    7         call and hold a referendum to determine whether to
    8         grant economic development ad valorem tax exemptions;
    9         revising the language of ballot questions relating to
   10         the authority to grant economic development tax
   11         exemptions; providing for application of a provision
   12         limiting the calling of another referendum within a
   13         certain time period; specifying additional information
   14         that must be included in a written application
   15         requesting adoption of an ordinance granting an
   16         economic development ad valorem tax exemption;
   17         specifying factors for a board of county commissioners
   18         or governing authority of a municipality to consider
   19         when deciding whether to approve or reject
   20         applications for economic development tax exemptions;
   21         providing legislative intent; limiting the allowable
   22         duration of an economic development tax exemption
   23         granted by a county or municipal ordinance;
   24         authorizing written tax exemption agreements
   25         consistent with the act upon approval of a tax
   26         exemption application; specifying that the written tax
   27         agreement must require the applicant to report certain
   28         information at a specific time before expiration of
   29         the exemption; authorizing the board of county
   30         commissioners or the governing authority of the
   31         municipality to revoke, in whole or in part, the
   32         exemption under certain circumstances; providing an
   33         effective date.
   34  
   35  Be It Enacted by the Legislature of the State of Florida:
   36  
   37         Section 1. Subsections (15) and (16) of section 196.012,
   38  Florida Statutes, are amended to read:
   39         196.012 Definitions.—For the purpose of this chapter, the
   40  following terms are defined as follows, except where the context
   41  clearly indicates otherwise:
   42         (15) “New business” means:
   43         (a)1. A business or nonprofit organization starting
   44  operations in the state which will create new, full-time jobs
   45  that the board of county commissioners or the governing
   46  authority of a municipality has determined are jobs for which
   47  the board or governing authority wishes to provide incentives
   48  through ad valorem tax exemptions granted in accordance with the
   49  requirements of s. 196.1995; establishing 10 or more jobs to
   50  employ 10 or more full-time employees in this state, which
   51  manufactures, processes, compounds, fabricates, or produces for
   52  sale items of tangible personal property at a fixed location and
   53  which comprises an industrial or manufacturing plant;
   54         2. A business establishing 25 or more jobs to employ 25 or
   55  more full-time employees in this state, the sales factor of
   56  which, as defined by s. 220.15(5), for the facility with respect
   57  to which it requests an economic development ad valorem tax
   58  exemption is less than 0.50 for each year the exemption is
   59  claimed; or
   60         3. An office space in this state owned and used by a
   61  corporation newly domiciled in this state; provided such office
   62  space houses 50 or more full-time employees of such corporation;
   63  provided that such business or office first begins operation on
   64  a site clearly separate from any other commercial or industrial
   65  operation owned by the same business.
   66         (b) Any business located in an enterprise zone or
   67  brownfield area that first begins operation on a site clearly
   68  separate from any other commercial or industrial operation owned
   69  by the same business; or.
   70         (c) A business that is situated on property annexed into a
   71  municipality and that, at the time of the annexation, is
   72  receiving an economic development ad valorem tax exemption from
   73  the county under s. 196.1995.
   74         (16) “Expansion of an existing business” means:
   75         (a) The expansion of an existing business or nonprofit
   76  organization, other than its relocation to another community,
   77  which results in a net increase of new, full-time jobs for which
   78  the board or governing authority wishes to provide incentives
   79  through ad valorem tax exemptions granted pursuant to s.
   80  196.1995; or
   81         1. A business establishing 10 or more jobs to employ 10 or
   82  more full-time employees in this state, which manufactures,
   83  processes, compounds, fabricates, or produces for sale items of
   84  tangible personal property at a fixed location and which
   85  comprises an industrial or manufacturing plant; or
   86         2. A business establishing 25 or more jobs to employ 25 or
   87  more full-time employees in this state, the sales factor of
   88  which, as defined by s. 220.15(5), for the facility with respect
   89  to which it requests an economic development ad valorem tax
   90  exemption is less than 0.50 for each year the exemption is
   91  claimed; provided that such business increases operations on a
   92  site colocated with a commercial or industrial operation owned
   93  by the same business, resulting in a net increase in employment
   94  of not less than 10 percent or an increase in productive output
   95  of not less than 10 percent.
   96         (b) Any business located in an enterprise zone or
   97  brownfield area that increases operations on a site colocated
   98  with a commercial or industrial operation owned by the same
   99  business.
  100         Section 2. Section 196.1995, Florida Statutes, is amended
  101  to read:
  102         196.1995 Economic development ad valorem tax exemption.—
  103         (1) The board of county commissioners of any county or the
  104  governing authority of any municipality shall call a referendum
  105  within its total jurisdiction to determine whether its
  106  respective jurisdiction may grant economic development ad
  107  valorem tax exemptions under s. 3, Art. VII of the State
  108  Constitution if:
  109         (a) The board of county commissioners of the county or the
  110  governing authority of the municipality votes to hold such
  111  referendum; or
  112         (b) The board of county commissioners of the county or the
  113  governing authority of the municipality receives a petition
  114  signed by 10 percent of the registered electors of its
  115  respective jurisdiction, which petition calls for the holding of
  116  such referendum; or
  117         (c) The board of county commissioners of a charter county
  118  receives a petition or initiative signed by the required
  119  percentage of registered electors in accordance with the
  120  procedures established in the county’s charter for the enactment
  121  of ordinances or for approval of amendments of the charter,
  122  including a county with a charter requiring signatures from less
  123  than 10 percent of its registered electors, which petition or
  124  initiative calls for the holding of such referendum.
  125         (2) The ballot question in such referendum shall be in
  126  substantially the following form:
  127  
  128  Shall the board of county commissioners of this county (or the
  129  governing authority of this municipality, or both) be authorized
  130  to grant, pursuant to s. 3, Art. VII of the State Constitution,
  131  property tax exemptions to new businesses and expansions of
  132  existing businesses that are expected to create new, full-time
  133  jobs and have been evaluated as being of economic interest to
  134  the community?
  135  
  136         .... Yes—For authority to grant exemptions.
  137         .... No—Against authority to grant exemptions.
  138  
  139         (3) The board of county commissioners or the governing
  140  authority of the municipality that calls a referendum within its
  141  total jurisdiction to determine whether its respective
  142  jurisdiction may grant economic development ad valorem tax
  143  exemptions may vote to limit the effect of the referendum to
  144  authority to grant economic development tax exemptions for new
  145  businesses and expansions of existing businesses located in an
  146  enterprise zone or a brownfield area, as defined in s.
  147  376.79(4). If an area nominated to be an enterprise zone
  148  pursuant to s. 290.0055 has not yet been designated pursuant to
  149  s. 290.0065, the board of county commissioners or the governing
  150  authority of the municipality may call such referendum prior to
  151  such designation; however, the authority to grant economic
  152  development ad valorem tax exemptions does not apply until such
  153  area is designated pursuant to s. 290.0065. The ballot question
  154  in such referendum shall be in substantially the following form
  155  and shall be used in lieu of the ballot question prescribed in
  156  subsection (2):
  157  
  158  Shall the board of county commissioners of this county (or the
  159  governing authority of this municipality, or both) be authorized
  160  to grant, pursuant to s. 3, Art. VII of the State Constitution,
  161  property tax exemptions for new businesses and expansions of
  162  existing businesses that which are located in an enterprise zone
  163  or a brownfield area, are expected to create new, full-time
  164  jobs, and have been evaluated as being of economic interest to
  165  the community?
  166  
  167         .... Yes—For authority to grant exemptions.
  168         .... No—Against authority to grant exemptions.
  169  
  170         (4) A referendum pursuant to this section may be called
  171  only once in any 12-month period. If a referendum is called or
  172  held on or before the effective date of any amendment to this
  173  section, the board of county commissioners does not need to call
  174  or hold another referendum.
  175         (5) Upon a majority vote in favor of such authority, the
  176  board of county commissioners or the governing authority of the
  177  municipality, at its discretion, by ordinance may exempt from ad
  178  valorem taxation up to 100 percent of the assessed value of all
  179  improvements to real property made by or for the use of a new
  180  business and of all tangible personal property of such new
  181  business, or up to 100 percent of the assessed value of all
  182  added improvements to real property made to facilitate the
  183  expansion of an existing business and of the net increase in all
  184  tangible personal property acquired to facilitate such expansion
  185  of an existing business, provided that the improvements to real
  186  property are made or the tangible personal property is added or
  187  increased on or after the day the ordinance is adopted. However,
  188  if the authority to grant exemptions is approved in a referendum
  189  in which the ballot question contained in subsection (3) appears
  190  on the ballot, the authority of the board of county
  191  commissioners or the governing authority of the municipality to
  192  grant exemptions is limited solely to new businesses and
  193  expansions of existing businesses that are located in an
  194  enterprise zone or brownfield area. Property acquired to replace
  195  existing property shall not be considered to facilitate a
  196  business expansion. The exemption applies only to taxes levied
  197  by the respective unit of government granting the exemption. The
  198  exemption does not apply, however, to taxes levied for the
  199  payment of bonds or to taxes authorized by a vote of the
  200  electors pursuant to s. 9(b) or s. 12, Art. VII of the State
  201  Constitution. Any such exemption shall remain in effect for up
  202  to 10 years with respect to any particular facility, regardless
  203  of any change in the authority of the county or municipality to
  204  grant such exemptions. The exemption shall not be prolonged or
  205  extended by granting exemptions from additional taxes or by
  206  virtue of any reorganization or sale of the business receiving
  207  the exemption.
  208         (6) With respect to a new business as defined by s.
  209  196.012(15)(b)(c), the municipality annexing the property on
  210  which the business is situated may grant an economic development
  211  ad valorem tax exemption under this section to that business for
  212  a period that will expire upon the expiration of the exemption
  213  granted by the county. If the county renews the exemption under
  214  subsection (7), the municipality may also extend its exemption.
  215  A municipal economic development ad valorem tax exemption
  216  granted under this subsection may not extend beyond the duration
  217  of the county exemption.
  218         (7) The authority to grant exemptions under this section
  219  expires 10 years after the date such authority was approved in
  220  an election, but such authority may be renewed for subsequent
  221  10-year periods if each 10-year renewal is approved in a
  222  referendum called and held pursuant to this section.
  223         (8) Any person, firm, or corporation which desires an
  224  economic development ad valorem tax exemption shall, in the year
  225  the exemption is desired to take effect, file a written
  226  application on a form prescribed by the department with the
  227  board of county commissioners or the governing authority of the
  228  municipality, or both. The application shall request the
  229  adoption of an ordinance granting the applicant an exemption
  230  pursuant to this section and shall include the following
  231  information:
  232         (a) The name and location of the new business or the
  233  expansion of an existing business;
  234         (b) A description of the improvements to real property for
  235  which an exemption is requested and the date of commencement of
  236  construction of such improvements;
  237         (c) A description of the tangible personal property for
  238  which an exemption is requested and the dates when such property
  239  was or is to be purchased;
  240         (d) Proof, to the satisfaction of the board of county
  241  commissioners or the governing authority of the municipality,
  242  that the applicant is a new business or an expansion of an
  243  existing business, as defined in s. 196.012(15) or (16);
  244         (e) The number of jobs the applicant expects to create
  245  along with the average and median wage of the jobs and whether
  246  the jobs are full-time or part-time;
  247         (f) The expected time schedule for job creation; and
  248         (g)(e) Other information deemed necessary by the
  249  department.
  250         (9) Before it takes action on the application, the board of
  251  county commissioners or the governing authority of the
  252  municipality shall deliver a copy of the application to the
  253  property appraiser of the county. After careful consideration,
  254  the property appraiser shall report the following information to
  255  the board of county commissioners or the governing authority of
  256  the municipality:
  257         (a) The total revenue available to the county or
  258  municipality for the current fiscal year from ad valorem tax
  259  sources, or an estimate of such revenue if the actual total
  260  revenue available cannot be determined;
  261         (b) Any revenue lost to the county or municipality for the
  262  current fiscal year by virtue of exemptions previously granted
  263  under this section, or an estimate of such revenue if the actual
  264  revenue lost cannot be determined;
  265         (c) An estimate of the revenue which would be lost to the
  266  county or municipality during the current fiscal year if the
  267  exemption applied for were granted had the property for which
  268  the exemption is requested otherwise been subject to taxation;
  269  and
  270         (d) A determination as to whether the property for which an
  271  exemption is requested is to be incorporated into a new business
  272  or the expansion of an existing business, as defined in s.
  273  196.012(15) or (16), or into neither, which determination the
  274  property appraiser shall also affix to the face of the
  275  application. Upon the request of the property appraiser, the
  276  department shall provide to him or her such information as it
  277  may have available to assist in making such determination.
  278         (10) The board of county commissioners or the governing
  279  authority of the municipality may consider any economically
  280  related characteristics or criteria deemed necessary or
  281  appropriate when exercising its discretion whether to approve or
  282  reject an application for an exemption but, at a minimum, must
  283  consider the following:
  284         (a) Total number of new jobs to be created by the
  285  applicant.
  286         (b) Average wage and median wage of the new jobs.
  287         (c) Capital investment to be made by the applicant.
  288         (d) Whether the business or operation qualifies as an
  289  industry that the board of county commissioners or the governing
  290  authority of the municipality may target.
  291         (e) Environmental impact of the proposed business or
  292  operation.
  293         (f) Extent to which the applicant intends to source its
  294  supplies and materials within the applicable jurisdiction.
  295  
  296  The Legislature intends to vest counties and municipalities with
  297  as much discretion as legally permissible to determine which new
  298  jobs should be incentivized through the granting of ad valorem
  299  tax exemptions under this section.
  300         (11)(10) An ordinance granting an exemption under this
  301  section shall be adopted in the same manner as any other
  302  ordinance of the county or municipality and shall include the
  303  following:
  304         (a) The name and address of the new business or expansion
  305  of an existing business to which the exemption is granted;
  306         (b) The total amount of revenue available to the county or
  307  municipality from ad valorem tax sources for the current fiscal
  308  year, the total amount of revenue lost to the county or
  309  municipality for the current fiscal year by virtue of economic
  310  development ad valorem tax exemptions currently in effect, and
  311  the estimated revenue loss to the county or municipality for the
  312  current fiscal year attributable to the exemption of the
  313  business named in the ordinance;
  314         (c) The period of time, not to exceed 10 years, for which
  315  the exemption will remain in effect and the expiration date of
  316  the exemption; and
  317         (d) A finding that the business named in the ordinance
  318  meets the requirements of s. 196.012(15) or (16).
  319         (12) Upon approval of an application for a tax exemption
  320  under this section, the board of county commissioners or the
  321  governing authority of the municipality and the applicant may
  322  enter into a written tax exemption agreement, which may include
  323  performance criteria and must be consistent with the
  324  requirements of this section or other applicable laws. The
  325  agreement must require the applicant to report at a specific
  326  time before the expiration of the exemption the actual number of
  327  new, full-time jobs created and their actual average and median
  328  wage. The agreement may provide the board of county
  329  commissioners or the governing authority of the municipality
  330  with authority to revoke, in whole or in part, the exemption if
  331  the applicant fails to meet the expectations and representations
  332  described in subsection (8).
  333         Section 3. This act shall take effect July 1, 2011.

feedback