Title: Tax Refund Program for Qualified Target Industry Businesses

Summary: Permitting a business that fails to satisfy the terms of its agreement with the Department of Economic Opportunity to apply for a prorated tax refund, etc.

Full Text:
An act relating to the tax refund program for qualified target industry businesses; amending s. 288.106, F.S.; permitting a business that fails to satisfy the terms of its agreement with the Department of Economic Opportunity to apply for a prorated tax refund; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Subsections (5) and (6) of section 288.106, Florida Statutes, are amended to read: 288.106 Tax refund program for qualified target industry businesses.  (5) TAX REFUND AGREEMENT.  (a) Each qualified target industry business must enter into a written agreement with the department that specifies, at a minimum: 1. The total number of full-time equivalent jobs in this state that will be dedicated to the project, the average wage of those jobs, the definitions that will apply for measuring the achievement of these terms during the pendency of the agreement, and a time schedule or plan for when such jobs will be in place and active in this state. 2. The maximum amount of tax refunds that the qualified target industry business is eligible to receive on the project and the maximum amount of a tax refund that the qualified target industry business is eligible to receive for each fiscal year, based on the job creation and maintenance schedule specified in subparagraph 1. 3. That the department may review and verify the financial and personnel records of the qualified target industry business to ascertain whether that business is in compliance with this section. 4. The date by which, in each fiscal year, the qualified target industry business may file a claim under subsection (6) to be considered to receive a tax refund in the following fiscal year. 5. That local financial support will be annually available and will be paid to the account. The department may not enter into a written agreement with a qualified target industry business if the local financial support resolution is not passed by the local governing body within days after the department has issued the letter of certification under subsection (4). 6. That the department may conduct a review of the business to evaluate whether the business is continuing to contribute to the area s or state s economy. 7. That in the event the business does not complete the agreement, the business will provide the department with the reasons the business was unable to complete the agreement. (b) Compliance with the terms and conditions of the agreement is a condition precedent for the receipt of a tax refund each year. The failure to comply with the terms and conditions of the tax refund agreement results in the loss of eligibility for receipt of all tax refunds previously authorized under this section and the revocation by the department of the certification of the business entity as a qualified target industry business, unless the business is eligible to receive and elects to accept a prorated refund under paragraph (6)(e),the department grants the business a prorated refund under paragraph (6)(f), or the department grants the business an economic recovery extension. 1. A qualified target industry business may submit a request to the department for a prorated refund under paragraph (6)(f) or for an economic recovery extension. The request must provide quantitative evidence demonstrating how negative economic conditions in the business s industry, the effects of a named hurricane or tropical storm, or specific acts of terrorism affecting the qualified target industry business have prevented the business from complying with the terms and conditions of its tax refund agreement. 2. Upon receipt of a request under subparagraph 1., the department has days to notify the requesting business, in writing, whether its request extension has been granted or denied. In determining whether a request an extension should be granted, the department shall consider the extent to which negative economic conditions in the requesting business s industry have occurred in the state or the effects of a named hurricane or tropical storm or specific acts of terrorism affecting the qualified target industry business have prevented the business from complying with the terms and conditions of its tax refund agreement. The department shall consider current employment statistics for this state by industry, including whether the business s industry had substantial job loss during the prior year, when determining whether a request an extension shall be granted. 3. As a condition for receiving a prorated refund under paragraph (6)(e) or paragraph (6)(f) or an economic recovery extension under this paragraph, a qualified target industry business must agree to renegotiate its tax refund agreement with the department to, at a minimum, ensure that the terms of the agreement comply with current law and the department s procedures governing application for and award of tax refunds. Upon approving the award of a prorated refund or granting an economic recovery extension, the department shall renegotiate the tax refund agreement with the business as required by this subparagraph. When amending the agreement of a business receiving an economic recovery extension, the department may extend the duration of the agreement for a period not to exceed years. 4. A qualified target industry business may submit a request for an economic recovery extension to the department in lieu of any tax refund claim scheduled to be submitted after January 1, 2009, but before July 1, 2012. 5. A qualified target industry business that receives an economic recovery extension may not receive a tax refund for the period covered by the extension. (c) The agreement must be signed by the executive director and by an authorized officer of the qualified target industry business within days after the issuance of the letter of certification under subsection (4), but not before passage and receipt of the resolution of local financial support. The department may grant an extension of this period at the written request of the qualified target industry business. (d) The agreement must contain the following legend, clearly printed on its face in bold type of not less than points in size:  This agreement is not a general obligation of the State of Florida, nor is it backed by the full faith and credit of the State of Florida. Payment of tax refunds is conditioned on and subject to specific annual appropriations by the Florida Legislature sufficient to pay amounts authorized in section 288.106, Florida Statutes.  (6) ANNUAL CLAIM FOR REFUND.  (a) To be eligible to claim any scheduled tax refund, a qualified target industry business that has entered into a tax refund agreement with the department under subsection (5) must apply by January of each fiscal year to the department for the tax refund scheduled to be paid from the appropriation for the fiscal year that begins on July following the January claims-submission date. The department may, upon written request, grant a 30-day extension of the filing date. (b) The claim for refund by the qualified target industry business must include a copy of all receipts pertaining to the payment of taxes for which the refund is sought and data related to achievement of each performance item specified in the tax refund agreement. The amount requested as a tax refund may not exceed the amount specified for the relevant fiscal year in that agreement. (c) The department may waive the requirement for proof of taxes paid in future years for a qualified target industry business that provides the Department of Economic Opportunity office with proof that, in a single year, the business has paid an amount of state taxes from the categories in paragraph (3)(d) which that is at least equal to the total amount of tax refunds that the business may receive through successful completion of its tax refund agreement. (d) A tax refund may not be approved for a qualified target industry business unless the required local financial support has been paid into the account for that refund. If the local financial support provided is less than percent of the approved tax refund, the tax refund must be reduced. In no event may the tax refund exceed an amount that is equal to times the amount of the local financial support received. Further, funding from local sources includes any tax abatement granted to that business under s. 196.1995 or the appraised market value of municipal or county land conveyed or provided at a discount to that business. The amount of any tax refund for such business approved under this section must be reduced by the amount of any such tax abatement granted or the value of the land granted, and the limitations in subsection (3) and paragraph (4)(e) must be reduced by the amount of any such tax abatement or the value of the land granted. A report listing all sources of the local financial support shall be provided to the Department of Economic Opportunity office when such support is paid to the account. (e) A prorated tax refund, less a percent 5-percent penalty, shall be approved for a qualified target industry business if all other applicable requirements have been satisfied and the business proves to the satisfaction of the Department of Economic Opportunity office that: 1. It has achieved at least percent of its projected employment; and 2. The average wage paid by the business is at least percent of the average wage specified in the tax refund agreement, but in no case less than percent of the average private sector wage in the area available at the time of certification, or percent or percent of the average private sector wage if the business requested the additional per-job tax refund authorized in paragraph (3)(b) for wages above those levels. The prorated tax refund shall be calculated by multiplying the tax refund amount for which the qualified target industry business would have been eligible, if all applicable requirements had been satisfied, by the percentage of the average employment specified in the tax refund agreement which was achieved, and by the percentage of the average wages specified in the tax refund agreement which was achieved. (f) A prorated tax refund, less a percent penalty, may be approved for a qualified target industry business if all other applicable requirements have been satisfied and the business proves to the satisfaction of the department that: 1. The business s project has resulted in the creation of at least jobs; and 2. The average wage paid by the business is at least percent of the average wage specified in the tax refund agreement, but in no case less than percent of the average private sector wage in the area available at the time of certification, or percent or percent of the average private sector wage if the business requested the additional per-job tax refund authorized in paragraph (3)(b) for wages above those levels. The prorated tax refund shall be calculated by multiplying the tax refund amount for which the qualified target industry business would have been eligible, if all applicable requirements had been satisfied, by the percentage of the average employment specified in the tax refund agreement which was achieved, and by the percentage of the average wages specified in the tax refund agreement which was achieved. (g) (f)  The department, with such assistance as may be required from the Department of Revenue, shall, by June following the scheduled date for submission of the tax refund claim, specify by written order the approval or disapproval of the tax refund claim and, if approved, the amount of the tax refund that is authorized to be paid to the qualified target industry business for the annual tax refund. The department may grant an extension of this date on the request of the qualified target industry business for the purpose of filing additional information in support of the claim. (h) (g)  The total amount of tax refund claims approved by the department under this section in any fiscal year must not exceed the amount authorized under s. 288.095(3). (i) (h)  This section does not create a presumption that a tax refund claim will be approved and paid. (j) (i)  Upon approval of the tax refund under paragraphs (d), (e), (f), and (g) (f),the Chief Financial Officer shall issue a warrant for the amount specified in the written order. If the written order is appealed, the Chief Financial Officer may not issue a warrant for a refund to the qualified target industry business until the conclusion of all appeals of that order. Section 2. This act shall take effect July 1, 2012.