Bill Text: FL S0868 | 2016 | Regular Session | Comm Sub


Bill Title: Community Redevelopment

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Introduced - Dead) 2016-03-08 - Laid on Table, companion bill(s) passed, see CS/HB 627 (Ch. 2016-131) [S0868 Detail]

Download: Florida-2016-S0868-Comm_Sub.html
       Florida Senate - 2016                       CS for CS for SB 868
       
       
        
       By the Committees on Appropriations; and Finance and Tax; and
       Senator Smith
       
       576-04827-16                                           2016868c2
    1                        A bill to be entitled                      
    2         An act relating to community redevelopment; amending
    3         s. 163.387, F.S.; specifying uses of redevelopment
    4         trust fund moneys for certain community redevelopment
    5         agencies that support youth centers; defining the
    6         terms “youth center” and “year-round”; amending s.
    7         220.03, F.S.; providing definitions related to
    8         community contribution tax credits that may apply to
    9         business firms against certain income tax liabilities;
   10         amending s. 212.08, F.S.; providing definitions
   11         related to community contribution tax credits that may
   12         apply against sales and use tax liabilities; amending
   13         s. 624.5105, F.S.; providing definitions related to
   14         community contribution tax credits that may apply
   15         against certain premium tax liabilities; providing an
   16         effective date.
   17          
   18  Be It Enacted by the Legislature of the State of Florida:
   19  
   20         Section 1. Subsection (6) of section 163.387, Florida
   21  Statutes, is amended to read:
   22         163.387 Redevelopment trust fund.—
   23         (6)(a) Moneys in the redevelopment trust fund may be
   24  expended from time to time for undertakings of a community
   25  redevelopment agency as described in the community redevelopment
   26  plan for the following purposes, including, but not limited to:
   27         1.(a) Administrative and overhead expenses necessary or
   28  incidental to the implementation of a community redevelopment
   29  plan adopted by the agency.
   30         2.(b) Expenses of redevelopment planning, surveys, and
   31  financial analysis, including the reimbursement of the governing
   32  body or the community redevelopment agency for such expenses
   33  incurred before the redevelopment plan was approved and adopted.
   34         3.(c) The acquisition of real property in the redevelopment
   35  area.
   36         4.(d) The clearance and preparation of any redevelopment
   37  area for redevelopment and relocation of site occupants within
   38  or outside the community redevelopment area as provided in s.
   39  163.370.
   40         5.(e) The repayment of principal and interest or any
   41  redemption premium for loans, advances, bonds, bond anticipation
   42  notes, and any other form of indebtedness.
   43         6.(f) All expenses incidental to or connected with the
   44  issuance, sale, redemption, retirement, or purchase of bonds,
   45  bond anticipation notes, or other form of indebtedness,
   46  including funding of any reserve, redemption, or other fund or
   47  account provided for in the ordinance or resolution authorizing
   48  such bonds, notes, or other form of indebtedness.
   49         7.(g) The development of affordable housing within the
   50  community redevelopment area.
   51         8.(h) The development of community policing innovations.
   52         (b) For any community redevelopment agency located in a
   53  county as defined in s. 125.011(1), the community redevelopment
   54  agency shall expend no less than 5 percent of the trust fund
   55  revenues annually to support youth centers if:
   56         1. More than 50 percent of the persons younger than 18
   57  years of age living in the community redevelopment area served
   58  by the agency are in families with incomes below the federal
   59  poverty level;
   60         2. The youth center submits a written request for support
   61  to the community redevelopment agency; and
   62         3. The expenditures do not materially impair any bonds
   63  outstanding as of March 11, 2016.
   64  
   65  As used in this paragraph, the term “youth center” means a
   66  facility that is owned and operated by a governmental entity or
   67  a corporation not for profit registered pursuant to chapter 617,
   68  the primary purpose of which is to provide year-round
   69  supplemental educational programs, recreational and after-school
   70  activities, counseling, and social and adult transitional
   71  programming and other services to children 5 to 18 years of age
   72  and adults 18 to 24 years of age; and that has operated for at
   73  least 2 years before its request for support from the community
   74  redevelopment agency. The term includes indoor recreational
   75  facilities, as defined in s. 402.302, which are owned and
   76  operated by a governmental entity or corporation not for profit
   77  registered pursuant to chapter 617. The term does not include
   78  public or private schools, child care facilities as defined in
   79  s. 402.302, or private prekindergarten providers as defined in
   80  s. 1002.51. As used in this paragraph, the term “year-round”
   81  means operating a minimum of 225 service days per year. The
   82  youth center must be open and accessible to the general public
   83  for community-based meetings focused on educational
   84  opportunities and providing college, career, and vocational
   85  readiness programming.
   86         Section 2. Paragraph (d) of subsection (1) of section
   87  220.03, Florida Statutes, is amended to read:
   88         220.03 Definitions.—
   89         (1) SPECIFIC TERMS.—When used in this code, and when not
   90  otherwise distinctly expressed or manifestly incompatible with
   91  the intent thereof, the following terms shall have the following
   92  meanings:
   93         (d) “Community Contribution” means the grant by a business
   94  firm of any of the following items:
   95         1. Cash or other liquid assets.
   96         2. Real property, which for purposes of this subparagraph
   97  includes 100 percent ownership of a real property holding
   98  company. The term “real property holding company” means a
   99  Florida entity, such as a Florida limited liability company,
  100  that:
  101         a.Is wholly owned by the business firm.
  102         b.Is the sole owner of real property, as defined in s.
  103  192.001(12), located in the state.
  104         c.Is disregarded as an entity for federal income tax
  105  purposes pursuant to 26 C.F.R. s. 301.7701-3(b)(1)(ii).
  106         d.At the time of contribution to an eligible sponsor, has
  107  no material assets other than the real property and any other
  108  property that qualifies as a community contribution.
  109         3. Goods or inventory.
  110         4. Other physical resources as identified by the
  111  department.
  112  
  113  This paragraph expires June 30, 2018.
  114         Section 3. Paragraph (p) of subsection (5) of section
  115  212.08, Florida Statutes, is amended to read:
  116         212.08 Sales, rental, use, consumption, distribution, and
  117  storage tax; specified exemptions.—The sale at retail, the
  118  rental, the use, the consumption, the distribution, and the
  119  storage to be used or consumed in this state of the following
  120  are hereby specifically exempt from the tax imposed by this
  121  chapter.
  122         (5) EXEMPTIONS; ACCOUNT OF USE.—
  123         (p) Community contribution tax credit for donations.—
  124         1. Authorization.—Persons who are registered with the
  125  department under s. 212.18 to collect or remit sales or use tax
  126  and who make donations to eligible sponsors are eligible for tax
  127  credits against their state sales and use tax liabilities as
  128  provided in this paragraph:
  129         a. The credit shall be computed as 50 percent of the
  130  person’s approved annual community contribution.
  131         b. The credit shall be granted as a refund against state
  132  sales and use taxes reported on returns and remitted in the 12
  133  months preceding the date of application to the department for
  134  the credit as required in sub-subparagraph 3.c. If the annual
  135  credit is not fully used through such refund because of
  136  insufficient tax payments during the applicable 12-month period,
  137  the unused amount may be included in an application for a refund
  138  made pursuant to sub-subparagraph 3.c. in subsequent years
  139  against the total tax payments made for such year. Carryover
  140  credits may be applied for a 3-year period without regard to any
  141  time limitation that would otherwise apply under s. 215.26.
  142         c. A person may not receive more than $200,000 in annual
  143  tax credits for all approved community contributions made in any
  144  one year.
  145         d. All proposals for the granting of the tax credit require
  146  the prior approval of the Department of Economic Opportunity.
  147         e. The total amount of tax credits which may be granted for
  148  all programs approved under this paragraph, s. 220.183, and s.
  149  624.5105 is $18.4 million in the 2015-2016 fiscal year, $21.4
  150  million in the 2016-2017 fiscal year, and $21.4 million in the
  151  2017-2018 fiscal year for projects that provide housing
  152  opportunities for persons with special needs or homeownership
  153  opportunities for low-income households or very-low-income
  154  households and $3.5 million annually for all other projects. As
  155  used in this paragraph, the term “person with special needs” has
  156  the same meaning as in s. 420.0004 and the terms “low-income
  157  person,” “low-income household,” “very-low-income person,” and
  158  “very-low-income household” have the same meanings as in s.
  159  420.9071.
  160         f. A person who is eligible to receive the credit provided
  161  in this paragraph, s. 220.183, or s. 624.5105 may receive the
  162  credit only under one section of the person’s choice.
  163         2. Eligibility requirements.—
  164         a. A community contribution by a person must be in the
  165  following form:
  166         (I) Cash or other liquid assets;
  167         (II) Real property, including 100 percent ownership of a
  168  real property holding company;
  169         (III) Goods or inventory; or
  170         (IV) Other physical resources identified by the Department
  171  of Economic Opportunity.
  172  
  173  For purposes of this subparagraph, the term “real property
  174  holding company” means a Florida entity, such as a Florida
  175  limited liability company, that is wholly owned by the person;
  176  is the sole owner of real property, as defined in s.
  177  192.001(12), located in the state; is disregarded as an entity
  178  for federal income tax purposes pursuant to 26 C.F.R. s.
  179  301.7701-3(b)(1)(ii); and at the time of contribution to an
  180  eligible sponsor, has no material assets other than the real
  181  property and any other property that qualifies as a community
  182  contribution.
  183         b. All community contributions must be reserved exclusively
  184  for use in a project. As used in this sub-subparagraph, the term
  185  “project” means activity undertaken by an eligible sponsor which
  186  is designed to construct, improve, or substantially rehabilitate
  187  housing that is affordable to low-income households or very-low
  188  income households; designed to provide housing opportunities for
  189  persons with special needs; designed to provide commercial,
  190  industrial, or public resources and facilities; or designed to
  191  improve entrepreneurial and job-development opportunities for
  192  low-income persons. A project may be the investment necessary to
  193  increase access to high-speed broadband capability in a rural
  194  community that had an enterprise zone designated pursuant to
  195  chapter 290 as of May 1, 2015, including projects that result in
  196  improvements to communications assets that are owned by a
  197  business. A project may include the provision of museum
  198  educational programs and materials that are directly related to
  199  a project approved between January 1, 1996, and December 31,
  200  1999, and located in an area which was in an enterprise zone
  201  designated pursuant to s. 290.0065 as of May 1, 2015. This
  202  paragraph does not preclude projects that propose to construct
  203  or rehabilitate housing for low-income households or very-low
  204  income households on scattered sites or housing opportunities
  205  for persons with special needs. With respect to housing,
  206  contributions may be used to pay the following eligible special
  207  needs, low-income, and very-low-income housing-related
  208  activities:
  209         (I) Project development impact and management fees for
  210  special needs, low-income, or very-low-income housing projects;
  211         (II) Down payment and closing costs for persons with
  212  special needs, low-income persons, and very-low-income persons;
  213         (III) Administrative costs, including housing counseling
  214  and marketing fees, not to exceed 10 percent of the community
  215  contribution, directly related to special needs, low-income, or
  216  very-low-income projects; and
  217         (IV) Removal of liens recorded against residential property
  218  by municipal, county, or special district local governments if
  219  satisfaction of the lien is a necessary precedent to the
  220  transfer of the property to a low-income person or very-low
  221  income person for the purpose of promoting home ownership.
  222  Contributions for lien removal must be received from a
  223  nonrelated third party.
  224         c. The project must be undertaken by an “eligible sponsor,”
  225  which includes:
  226         (I) A community action program;
  227         (II) A nonprofit community-based development organization
  228  whose mission is the provision of housing for persons with
  229  specials needs, low-income households, or very-low-income
  230  households or increasing entrepreneurial and job-development
  231  opportunities for low-income persons;
  232         (III) A neighborhood housing services corporation;
  233         (IV) A local housing authority created under chapter 421;
  234         (V) A community redevelopment agency created under s.
  235  163.356;
  236         (VI) A historic preservation district agency or
  237  organization;
  238         (VII) A regional workforce board;
  239         (VIII) A direct-support organization as provided in s.
  240  1009.983;
  241         (IX) An enterprise zone development agency created under s.
  242  290.0056;
  243         (X) A community-based organization incorporated under
  244  chapter 617 which is recognized as educational, charitable, or
  245  scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
  246  and whose bylaws and articles of incorporation include
  247  affordable housing, economic development, or community
  248  development as the primary mission of the corporation;
  249         (XI) Units of local government;
  250         (XII) Units of state government; or
  251         (XIII) Any other agency that the Department of Economic
  252  Opportunity designates by rule.
  253  
  254  A contributing person may not have a financial interest in the
  255  eligible sponsor.
  256         d. The project must be located in an area which was in an
  257  enterprise zone designated pursuant to chapter 290 as of May 1,
  258  2015, or a Front Porch Florida Community, unless the project
  259  increases access to high-speed broadband capability in a rural
  260  community that had an enterprise zone designated pursuant to
  261  chapter 290 as of May 1, 2015, but is physically located outside
  262  the designated rural zone boundaries. Any project designed to
  263  construct or rehabilitate housing for low-income households or
  264  very-low-income households or housing opportunities for persons
  265  with special needs is exempt from the area requirement of this
  266  sub-subparagraph.
  267         e.(I) If, during the first 10 business days of the state
  268  fiscal year, eligible tax credit applications for projects that
  269  provide housing opportunities for persons with special needs or
  270  homeownership opportunities for low-income households or very
  271  low-income households are received for less than the annual tax
  272  credits available for those projects, the Department of Economic
  273  Opportunity shall grant tax credits for those applications and
  274  grant remaining tax credits on a first-come, first-served basis
  275  for subsequent eligible applications received before the end of
  276  the state fiscal year. If, during the first 10 business days of
  277  the state fiscal year, eligible tax credit applications for
  278  projects that provide housing opportunities for persons with
  279  special needs or homeownership opportunities for low-income
  280  households or very-low-income households are received for more
  281  than the annual tax credits available for those projects, the
  282  Department of Economic Opportunity shall grant the tax credits
  283  for those applications as follows:
  284         (A) If tax credit applications submitted for approved
  285  projects of an eligible sponsor do not exceed $200,000 in total,
  286  the credits shall be granted in full if the tax credit
  287  applications are approved.
  288         (B) If tax credit applications submitted for approved
  289  projects of an eligible sponsor exceed $200,000 in total, the
  290  amount of tax credits granted pursuant to sub-sub-sub
  291  subparagraph (A) shall be subtracted from the amount of
  292  available tax credits, and the remaining credits shall be
  293  granted to each approved tax credit application on a pro rata
  294  basis.
  295         (II) If, during the first 10 business days of the state
  296  fiscal year, eligible tax credit applications for projects other
  297  than those that provide housing opportunities for persons with
  298  special needs or homeownership opportunities for low-income
  299  households or very-low-income households are received for less
  300  than the annual tax credits available for those projects, the
  301  Department of Economic Opportunity shall grant tax credits for
  302  those applications and shall grant remaining tax credits on a
  303  first-come, first-served basis for subsequent eligible
  304  applications received before the end of the state fiscal year.
  305  If, during the first 10 business days of the state fiscal year,
  306  eligible tax credit applications for projects other than those
  307  that provide housing opportunities for persons with special
  308  needs or homeownership opportunities for low-income households
  309  or very-low-income households are received for more than the
  310  annual tax credits available for those projects, the Department
  311  of Economic Opportunity shall grant the tax credits for those
  312  applications on a pro rata basis.
  313         3. Application requirements.—
  314         a. An eligible sponsor seeking to participate in this
  315  program must submit a proposal to the Department of Economic
  316  Opportunity which sets forth the name of the sponsor, a
  317  description of the project, and the area in which the project is
  318  located, together with such supporting information as is
  319  prescribed by rule. The proposal must also contain a resolution
  320  from the local governmental unit in which the project is located
  321  certifying that the project is consistent with local plans and
  322  regulations.
  323         b. A person seeking to participate in this program must
  324  submit an application for tax credit to the Department of
  325  Economic Opportunity which sets forth the name of the sponsor, a
  326  description of the project, and the type, value, and purpose of
  327  the contribution. The sponsor shall verify, in writing, the
  328  terms of the application and indicate its receipt of the
  329  contribution, and such verification must accompany the
  330  application for tax credit. The person must submit a separate
  331  tax credit application to the Department of Economic Opportunity
  332  for each individual contribution that it makes to each
  333  individual project.
  334         c. A person who has received notification from the
  335  Department of Economic Opportunity that a tax credit has been
  336  approved must apply to the department to receive the refund.
  337  Application must be made on the form prescribed for claiming
  338  refunds of sales and use taxes and be accompanied by a copy of
  339  the notification. A person may submit only one application for
  340  refund to the department within a 12-month period.
  341         4. Administration.—
  342         a. The Department of Economic Opportunity may adopt rules
  343  necessary to administer this paragraph, including rules for the
  344  approval or disapproval of proposals by a person.
  345         b. The decision of the Department of Economic Opportunity
  346  must be in writing, and, if approved, the notification shall
  347  state the maximum credit allowable to the person. Upon approval,
  348  the Department of Economic Opportunity shall transmit a copy of
  349  the decision to the department.
  350         c. The Department of Economic Opportunity shall
  351  periodically monitor all projects in a manner consistent with
  352  available resources to ensure that resources are used in
  353  accordance with this paragraph; however, each project must be
  354  reviewed at least once every 2 years.
  355         d. The Department of Economic Opportunity shall, in
  356  consultation with the statewide and regional housing and
  357  financial intermediaries, market the availability of the
  358  community contribution tax credit program to community-based
  359  organizations.
  360         5. Expiration.—This paragraph expires June 30, 2018;
  361  however, any accrued credit carryover that is unused on that
  362  date may be used until the expiration of the 3-year carryover
  363  period for such credit.
  364         Section 4. Paragraph (a) of subsection (5) of section
  365  624.5105, Florida Statutes, is amended to read:
  366         624.5105 Community contribution tax credit; authorization;
  367  limitations; eligibility and application requirements;
  368  administration; definitions; expiration.—
  369         (5) DEFINITIONS.—As used in this section, the term:
  370         (a) “Community contribution” means the grant by an insurer
  371  of any of the following items:
  372         1. Cash or other liquid assets.
  373         2. Real property, including 100 percent ownership of a real
  374  property holding company.
  375         3. Goods or inventory.
  376         4. Other physical resources which are identified by the
  377  department.
  378  
  379  For purposes of this paragraph, the term “real property holding
  380  company” means a Florida entity, such as a Florida limited
  381  liability company, that is wholly owned by the insurer; is the
  382  sole owner of real property, as defined in s. 192.001(12),
  383  located in the state; is disregarded as an entity for federal
  384  income tax purposes pursuant to 26 C.F.R. s. 301.7701
  385  3(b)(1)(ii); and at the time of contribution to an eligible
  386  sponsor, has no material assets other than the real property and
  387  any other property that qualifies as a community contribution.
  388         Section 5. This act shall take effect July 1, 2016.

feedback