Title: Sales Tax Refund for Certified Job Training Organizations

Summary: Authorizes certified organizations to receive refund of certain sales taxes collected for purposes relating to job training & employment services; specifies annual maximum allowable tax refund; provides requirements for receiving refund; authorizes DEO to certify organizations; authorizes DOR to audit any refund issued; provides applicable interest rate on overpayments & payments to ineligible organizations; requires certified organizations to provide an annual report to DEO.

Full Text:
An act relating to a sales tax refund for certified job training organizations; creating s. 212.0991, F.S.; providing definitions; authorizing certified organizations to receive refunds of certain sales taxes collected if such amount is used for job training and employment services; specifying the annual maximum allowable tax refund for such organizations; providing requirements for receiving the refund; a uthorizing the Department of Economic Opportunity to certify organizations; authorizing the Department of Revenue to audit, within a certain timeframe, any refund issued; providing the applicable interest rate on overpayments and payments to ineligible org anizations; providing that a job training organization comprised of commonly owned and controlled entities is a single organization; requiring certified organizations to provide an annual report to the Department of Economic Opportunity; providing an effec tive date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 212.0991, Florida Statutes, is created to read: HB 2019 212.0991 Sales tax refund for eligible job training organizations.-(1) As used in this section, the term: (a) "Certified job training organization" means an organization that: 1. Is an exempt organization under s. 501(c)(3) of the Internal Revenue Code of 1986, as amended; 2. Provides job training and employment services to low income persons, as define din s. 420.0004, individuals who have workplace disadvantages, or individuals with barriers to employment; 3. Is accredited by the Commission on Accreditation of Rehabilitation Facilities; and 4. Is certified by the Department of Economic Opportunity as meeting the requirements of this section. (b) "Growth in employment hours" means the annual growth in the number of hours worked by employees in the current year compared with the number of hours worked by employees in the previous year. (c) "Job tr aining and employment services" means programs and services that are provided to improve job readiness, assist workers in gaining employment and adapting to the changing labor market, and achieve worker success through self-sufficiency. (2) A certified job training organization is entitled to a refund of percent of the sales tax remitted to the department HB 2019 during the prior state fiscal year on its sales of goods donated to the organization. The refund must be reserved exclusively for use in any of the following: (a) Growth in employment hours; (b) Job training and employment services to low-income persons, as defined in s. 420.0004, individuals who have workplace disadvantages, and individuals with barriers to employment; or (c) Job training and em ployment services for veterans. (3) The total amount of refunds issued under this section may not exceed $2 million in any state fiscal year and shall be refunded on a first-come, first-served basis. (4) A job training organization seeking a refund und er this section must submit an initial application to the Department of Economic Opportunity by July 15, which attests that the organization meets the requirements as a certified job training organization under paragraph (1)(a) and that the refund will be used exclusively for the purposes listed in subsection (2). The organization may submit supporting information as prescribed by rule. (5) The Department of Economic Opportunity must verify the application and notify the organization of its determination within days after receiving the application. If the Department of Economic Opportunity approves the application, it must send to the job training organization a certificate that HB 2019 authorizes the organization to receive a refund of certain sales and use ta xremitted under this chapter. Upon the Department of Economic Opportunity's issuance of a certificate, such certification remains in effect so long as the certified job training organization is in compliance with the requirements of this section. (6) Each certified job training organization must apply to the department between August and August of each year to receive a refund. The first application for a refund submitted to the department must be accompanied by a copy of the certificate. (7) For purposes of this section, a certified job training organization comprised of commonly owned and controlled entities is deemed to be a single organization. (8) By July of each year, each certified job training organization must provide a report to the Department of Economic Opportunity which describes the use of the amount refunded. The report must include the following: (a) The amount of the refund used to create growth in employment hours. (b) The total annual growth in employment hours. (c) The amount of the refund used for job training and employment services. (d) The number of individuals who participated in job training and employment services at the certified job training HB 2019 organization for the fiscal year in which the refund was issu ed. (e) A statement declaring that the certified job training organization continues to meet the requirements of this section. (9)(a) The Department of Economic Opportunity may adopt rules to administer this section, including rules for the approval an ddisapproval of applications. (b) The decision of the Department of Economic Opportunity must be in writing or, if agreed to by the applicant, electronic mail. Upon approval, the Department of Economic Opportunity shall transmit a copy of the decision to the department. (c) If the Department of Economic Opportunity determines that a certified job training organization no longer qualifies for refunds under this section, the Department of Economic Opportunity must notify the department immediately. The department may not issue a refund after receiving such notification. (d) Notwithstanding s. 95.091(3)(a)6.b., the department may audit any refund within years after the date of which a refund is granted. The overpayment of a refund or a refund issued to an ineligible organization is subject to repayment and interest at the rate calculated pursuant to s. 213.235. Section 2. This act shall take effect July 1, 2019.