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s� hidian River County Cite of Vero Beach Enterprise Zane Development Agency FL ENTERPRISE ZONE PROGRAM PROPOSED CHANGES HB 965, by Representative Betty Reed Business Equipment Sales Tax Refund Jobs Tax Credit on Sales/Corporate Tax House Bill 965 proposes 3 revisions to the current Enterprise Zone program. The Bill was filed on 2/21/2013 by Rep. Betty Reed, from the Tampa area. There is no companion Bill in the Senate. Business Equipment Sales Tax Refund: Current: The Business Equipment Sales Tax Refund is the most frequently used program under the Enterprise Zone program. A company located within the Zone that purchases equipment used in the Zone can apply for a refund of a portion of the state sales tax paid on that item. The program's criteria: - Business inust be located within an Enterprise Zone. -Business equipment purchased must have a sales price of at least$5,000 per unit. - Equipment purchased must be used exclusively in an Enterprise Zone for at least 3 years Proposed legislation lowers the minimum purchase price from $5,000 per unit to $2,500 per unit. Language is also being proposed to the Department of Revenue as part of the text amendment process to lower the minimum purchase price of business equipment to $500; and,to change the word "unit"to "purchase". This word change would allow a company to use the total purchase of all eligible expenditures on one invoice to meet the minimum purchase price rather than each individual item listed. Alternatively,as suggested by an EZDA member: To entice increased spending by small businesses in an Enterprise Zone, allow a business to save up their receipts over the year and submit to the Department of Revenue once the minimum threshold is met in the aggregate. As the current Enterprise Zone Coordinator, I have worked very closely with local businesses that were trying to claim sales tax refunds on eligible purchases. It has been my experience that the program has become more of a burden than a benefit to small businesses. Providing better clarification to the eligibility criteria, and lowering the purchasing threshold to$500, would allow more participation in the program. Jobs Tax Credit on Sales Tax; Job Tax Credit on Corporate Tax Current: The Jobs Tax Credit on Sales Tax/Corporate Tax allows a business located in the Enterprise Zone to request a credit against either their sales tax OR corporate tax liability to the state based on the wages paid to a new employee who was hired to BII a newly created job. Proposed legislation removes the criteria of a minimum of 1 new job to be created-a business that hires an Enterprise Zone resident to fill an existing job would be eligible to apply for either of these credits. It also renames the program the "Job Stimulus Credit"program. Next page please 1