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General Information
<br /> Ad Valorem property tax exemptions can be granted to new and expanding businesses only after the voters of a city and/or county vote in a referendum to allow
<br /> that city or county to grant exemptions.Section 196.1995, Florida Statutes,requires that a referendum be held if:(1)The Board of County Commissioners or
<br /> ,ferning authority of a municipality(city or county commission)votes to hold such a referendum,or(2)if the county or city commission receives a petition
<br /> ed by ten percent of the registered voters of the county or city.This referendum question can then be placed before the voters of a city or county at any
<br /> `v pular election or special election called for voting on the tax incentive referendum or for any other purpose.
<br /> If the voters authorize exemptions,a company must first meet the definitions of a new or expanding business as stated in s.196.012(15)and(16),F.S.
<br /> The expansion must be on the same or a colocated site of the business current operations.
<br /> If a business meets one of the above definitions as a new or expanding business,it must then file this application with the county or city commission or both.
<br /> After the city or county commission receives this application,it must submit the application to the county property appraiser for review.After the property
<br /> appraiser makes the report as to the fiscal impact of granting the exemption,the county or city commission shall then adopt an ordinance in the usual manner-
<br /> granting the exemption,if it chooses to do so.
<br /> A business cannot receive exemption from school taxes or water management district taxes.Also a business must pay taxes that were voted by the voters of a
<br /> city or county to pay for bond issues and other special tax levies authorized by the voters of a city or county.
<br /> The exemption can only be for the improvements to the real property and for tangible personal property.The land on which the new or expanding business is to
<br /> be located will still be taxed and taxes must be paid on it.
<br /> The action taken by a city or county commission can only exempt the taxes paid to that governmental body.A city can only exempt its taxes;a county can only
<br /> exempt its taxes.All other taxes must be paid.
<br /> Statutory Definitions personal property at a fixed location and which 2.When citrus fruit is delivered by a
<br /> comprises an industrial or manufacturing plant;or cooperative for a grower-member,by a grower-
<br /> Section 196.011 Annual application required 2.A business establishing 25 or more jobs to member to a cooperative,or by a grower-
<br /> for exemption.— employ 25 or more full-time employees in this state, participant to a Florida processor,the sales factor
<br /> (1)(a)Every person or organization who,on the sales factor of which,as defined by s.220.15(5), for the growers for such citrus fruit delivered to
<br /> January 1,has the legal title to real or personal for the facility with respect to which it requests an such processor shall be the same as the sales
<br /> property,except inventory,which is entitled by la:-., economic development ad valorem tax exemption is factor for the most recent taxable year of that
<br /> to exemption from taxation as a result of its less than 0.50 for each year the exemption is claimed; processor.That sales factor,expressed only as a
<br /> ownership and use shall,on or before March 1 of provided that such business increases operation on percentage and not in terms of the dollar volume
<br /> each year,file an application for exemption with a site colocated with a commercial or industrial of sales,so as to protect the confidentiality of the
<br /> the county property appraiser,listing and operation owned by the same business,resulting in sales of the processor,shall be furnished on the
<br /> describing the property for which exemption is a net increase in employment of not less than 10 request of such a grower promptly after it has
<br /> claimed and certifying its ownership and use.The percent or an increase in productive output of not less been determined for that taxable year.
<br /> than 10 percent. 3.Reimbursement of expenses under an
<br /> Department of Revenue shall prescribe the forms p
<br /> (b)Any business located in an enterprise zone agency contract between a cooperative,a rower-
<br /> upon which the application is made. Failure to 9 Y p 9
<br /> that increases operations on a site colocated with a member of a cooperative,or rower and a
<br /> make application,when required,on or before p g
<br /> commercial or industrial operation owned by the processor is not a sale within this state.
<br /> ,h 1 of any year shall constitute a waiver of p
<br /> same business. c Sales of a financial organization,including,
<br /> exemption privilege for that year,except as ( ) g 9,
<br /> provided in subsection(7)or subsection(8). Section 196.1995 Economic development ad but not limited to,banking and savings institutions,
<br /> valorem tax exemption.- investment companies, real estate investment
<br /> Section 196.012(15)and(16),Florida Statutes (6)With respect to a new business as defined trust,and brokerage companies,occur in this
<br /> (15)"New business"means: by s. 196.012(15)(c),the municipality annexing the state if derived from:
<br /> (a)1.A business establishing 10 or more jobs property on which the business is situated may 1.Fees,commissions,or other compensation
<br /> to employ 10 or more full-time employees in this grant an economic development ad valorem tax for financial services rendered within this state;
<br /> state,which manufactures,processes,compounds, exemption under this section to that business for a 2.Gross profits from trading in stocks,bonds,or
<br /> fabricates,or produces for sale items of tangible period that will expire upon the expiration of the other securities managed within this state;
<br /> personal property at a fixed location and which exemption granted by the county.If the county renews 3.Interest received within this state,other
<br /> comprises an industrial or manufacturing plant; the exemption under subsection(7),the municipality than interest from loans secured by mortgages,
<br /> 2.A business establishing 25 or more jobs to may also extend its exemption.A municipal deeds of trust,or other liens upon real or tangible
<br /> employ 25 or more full-time employees in this economic development ad valorem tax exemption personal property located in this state,and
<br /> state,the sales factor of which,as defined by granted under this subsection may not extend dividends received within this state;
<br /> s.220.15(5),for the facility with respect to which it beyond the duration of the county exemption. 4.Interest charged to customers at places of
<br /> requests an economic development ad valorem business maintained within this state for carrying
<br /> tax exemption is less than 0.50 for each year the
<br /> Section 220.15(5),Florida Statutes. debit balances of margin accounts,without deduction
<br /> exemption is claimed;or (5)The sales factor is a fraction the numerator of any costs incurred in carrying such accounts;
<br /> 3.An office space in this state owned and of which is the total sales of the taxpayer in this state 5.Interest,fees,commissions,or other charges
<br /> used by a corporation newly domiciled in this state;
<br /> during the taxable year or period and the denom- or gains from loans secured by mortgages,deeds of
<br /> inator of which is the total sales of the taxpayer trust or other liens upon real or tangible personal
<br /> provided such office space houses 50 or more everywhere during the taxable year or period. property located in this state or from installment sale
<br /> full-time employees of such corporation; provided (a)As used in this subsection,the term"sales" agreements originally executed by a taxpayer or the
<br /> that such business or office first begins operation on means all gross receipts of the taxpayer except taxpayer's agent to sell real or tangible personal
<br /> a site clearly separate from any other commercial or interest,dividends,rents,royalties,and gross property located in this state;
<br /> industrial operation owned by the same business. receipts from the sale,exchange,maturity,redemp- 6.Rents from real or tangible personal
<br /> (b)Any business located in an enterprise tion,or other disposition of securities.However: property located in this state;or
<br /> zone that first begins operation on a site clearly 1.Rental income is included in the term if a 7.Any other gross income,including other
<br /> separate from any other commercial or industrial significant portion of the taxpayers business consists of interest,resulting from the operation as a financial
<br /> operation owned by the same business. leasing or renting real or tangible personal property;and organization within this state.
<br /> (c)A new business that is situated on property 2. Royalty income is included in the term if a In computing the amounts under this
<br /> annexed into a municipality and that,at the time of significant portion of the taxpayers business consists of paragraph,any amount received by a member of
<br /> vexation,is receiving an economic dealing in or with the production,exploration,or an affiliated group(determined under s.1504(a)of
<br /> alopment ad valorem tax exemption from the development of minerals. the Internal Revenue code,but without reference
<br /> "+emunty under s. 196.1995. (b)1.Sales of tangible personal property occur to whether any such corporation is an"includable
<br /> (16)"Expansion of an existing business"means: in this state if the property is delivered or shipped to corporation"under s.1504(b)of the Internal
<br /> (a)1.A business establishing 10 or more jobs a purchaser within this state,regardless of the f.o.b. Revenue code)from another member of such
<br /> to employ 10 or more full-time employees in this point,other conditions of the sale,or ultimate group shall be included only to the extent such
<br /> state,which manufactures,processes,compounds, destination of the property, unless shipment is made amount exceeds expenses of the recipient directly
<br /> fabricates,or produces for sale items of tangible via a common or contract carrier. related thereto. 145
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