1998 Florida Code
TITLE XIV TAXATION AND FINANCE
Chapter 212 Tax On Sales, Use, And Other Transactions  
212.096   Sales, rental, storage, use tax; enterprise zone jobs credit against sales tax.

1212.096  Sales, rental, storage, use tax; enterprise zone jobs credit against sales tax.--

(1)  For the purposes of the credit provided in this section:

(a)  "Eligible business" means any sole proprietorship, firm, partnership, corporation, bank, savings association, estate, trust, business trust, receiver, syndicate, or other group or combination, or successor business, located in an enterprise zone. An eligible business does not include any business which has claimed the credit permitted under s. 220.181 for any new business employee first beginning employment with the business after July 1, 1995.

(b)  "Month" means either a calendar month or the time period from any day of any month to the corresponding day of the next succeeding month or, if there is no corresponding day in the next succeeding month, the last day of the succeeding month.

(c)  "New employee" means a person residing in an enterprise zone, a qualified Job Training Partnership Act classroom training participant, or a WAGES Program participant who begins employment with an eligible business after July 1, 1995, and who has not been previously employed within the preceding 12 months by the eligible business, or a successor eligible business, claiming the credit allowed by this section.

A person shall be deemed to be employed if the person performs duties in connection with the operations of the business on a regular, full-time basis, provided the person is performing such duties for an average of at least 36 hours per week each month, or a part-time basis, provided the person is performing such duties for an average of at least 20 hours per week each month throughout the year. The person must be performing such duties at a business site located in the enterprise zone.

(2)(a)  It is the legislative intent to encourage the provision of meaningful employment opportunities which will improve the quality of life of those employed and to encourage economic expansion of enterprise zones and the state. Therefore, beginning July 1, 1995, upon an affirmative showing by a business to the satisfaction of the department that the requirements of this section have been met, the business shall be allowed a credit against the tax remitted under this chapter.

(b)  The credit shall be computed as follows:

1.  Ten percent of the monthly wages paid in this state to each new employee whose wages do not exceed $1,500 a month. If no less than 20 percent of the employees of the business are residents of an enterprise zone, excluding temporary and part-time employees, the credit shall be computed as 15 percent of the monthly wages paid in this state to each new employee;

2.  Five percent of the first $1,500 of actual monthly wages paid in this state for each new employee whose wages exceed $1,500 a month; or

3.  Fifteen percent of the first $1,500 of actual monthly wages paid in this state for each new employee who is a WAGES Program participant pursuant to chapter 414.

For purposes of this paragraph, monthly wages shall be computed as one-twelfth of the expected annual wages paid to such employee. The amount paid as wages to a new employee is the compensation paid to such employee that is subject to unemployment tax. The credit shall be allowed for up to 12 consecutive months, beginning with the first tax return due pursuant to s. 212.11 after approval by the department.

(3)  In order to claim this credit, an eligible business must file under oath with the governing body or enterprise zone development agency having jurisdiction over the enterprise zone where the business is located, as applicable, a statement which includes:

(a)  For each new employee for whom this credit is claimed, the employee's name and place of residence, including the identifying number assigned pursuant to s. 290.0065 to the enterprise zone in which the employee resides if the new employee is a person residing in an enterprise zone, and, if applicable, documentation that the employee is a qualified Job Training Partnership Act classroom training participant or a WAGES Program participant.

(b)  If applicable, the name and address of each permanent employee of the business, including, for each employee who is a resident of an enterprise zone, the identifying number assigned pursuant to s. 290.0065 to the enterprise zone in which the employee resides.

(c)  The name and address of the eligible business.

(d)  The starting salary or hourly wages paid to the new employee.

(e)  The identifying number assigned pursuant to s. 290.0065 to the enterprise zone in which the business is located.

(f)  Whether the business is a small business as defined by s. 288.703(1).

(g)  Within 10 working days after receipt of an application, the governing body or enterprise zone development agency shall review the application to determine if it contains all the information required pursuant to this subsection and meets the criteria set out in this section. The governing body or agency shall certify all applications that contain the information required pursuant to this subsection and meet the criteria set out in this section as eligible to receive a credit. If applicable, the governing body or agency shall also certify if 20 percent of the employees of the business are residents of an enterprise zone, excluding temporary and part-time employees. The certification shall be in writing, and a copy of the certification shall be transmitted to the executive director of the Department of Revenue. The business shall be responsible for forwarding a certified application to the department within the time specified in paragraph (h).

(h)  All applications for a credit pursuant to this section must be submitted to the department within 4 months after the new employee is hired.

(4)  In the event the application is insufficient to support the credit authorized in this section, the department shall deny the credit and notify the business of that fact. The business may reapply for this credit.

(5)  The credit provided in this section does not apply:

(a)  For any new employee who is an owner, partner, or stockholder of an eligible business.

(b)  For any new employee who is employed for any period less than 3 full calendar months.

(6)  The credit provided in this section shall not be allowed for any month in which the tax due for such period or the tax return required pursuant to s. 212.11 for such period is delinquent.

(7)  In the event an eligible business has a credit larger than the amount owed the state on the tax return for the time period in which the credit is claimed, the amount of the credit for that time period shall be the amount owed the state on that tax return.

(8)  Any business which has claimed this credit shall not be allowed any credit under the provisions of s. 220.181 for any new employee beginning employment after July 1, 1995.

(9)  It shall be the responsibility of each business to affirmatively demonstrate to the satisfaction of the department that it meets the requirements of this section.

(10)  Any person who fraudulently claims this credit is liable for repayment of the credit plus a mandatory penalty of 100 percent of the credit plus interest at the rate provided in this chapter, and such person is guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.

(11)  The provisions of this section, except for subsection (10), shall expire and be void on December 31, 2005.

History.--s. 35, ch. 84-356; s. 8, ch. 86-166; s. 25, ch. 87-6; s. 28, ch. 88-201; s. 20, ch. 91-224; s. 47, ch. 94-136; s. 1498, ch. 95-147; s. 17, ch. 96-320; s. 20, ch. 98-57.

1Note.--Section 121, ch. 96-320, provides that:

"(1)  Notwithstanding the provisions of sections 212.096, 220.03(1)(q), and 220.181, Florida Statutes, which require that new employees must have been hired after July 1, 1995, in order for a business to be eligible for the enterprise zone sales tax and corporate tax credits, an employee who is hired after January 1, 1995, may be defined as a 'new employee' for purposes of such tax credits.

"(2)  This section applies only to any business located within an area that was designated as a state enterprise zone before December 31, 1994, and was subsequently redesignated or received a designation as a state enterprise zone on July 1, 1995, if the employing business transferred for employment within an enterprise zone, at least 100 full-time employees from a location outside this state between January 1, 1995, and July 1, 1995.

"(3)  Notwithstanding section 220.181(6), Florida Statutes, any business that is eligible to receive a tax credit pursuant to this section must submit an application pursuant to sections 212.096 and 220.181, Florida Statutes, within 4 months after the effective date of this act. All other requirements of sections 212.096 and 220.181, Florida Statutes, apply to such a business."