Elimination/Reduction of Sales Tax on Commercial Leases

NAIOP of Florida

Legislative Update

May 29, 2015

House Finance & Tax Committee expected to revisit its tax cut package while in Special Session – Tuesday, June 2, 9:00 a.m.

Elimination/Reduction of Sales Tax on Commercial Leases

SB 140, Dorothy Hukill (R-Port Orange): Reduces the sales tax on commercial leases by one penny in 2016. Approved by Senate Community Affairs Committee, 7-0, March 4. Approved by Senate Finance & Tax on March 23, 8-0. In Appropriations as Regular Session ended.

HB 101, Greg Steube (R-Sarasota): Reduces the sales tax on commercial leasesby one penny for six consecutive years. House Finance & Tax Committee incorporated commercial lease tax provision into bill with many tax cuts, HB 7141, which reduces sales tax on commercial leases from 6.0 to 5.8. Passed House on April 9, 112-3, and sent to Senate. Not taken up by the Senate.

HB 245, Larry Ahern (R-Seminole): Gradually exempts the amount of lease payment subject to the tax; exempts $10,000.00 of annual rent payment in the first year, 2016. The exemption would go to $20,000.00 in 2017 and would continue to climb each year; eliminating the tax in 2025. In House Finance & Tax Committee. Never considered in Regular Session.

SB 1230, Alan Hays (R-Umatilla): Identical to HB 245. In Senate Commerce & Tourism Committee. Never considered during Regular Session.

HB 317, Fred Costello (R-Ormond Beach): Replaces revenue from commercial lease tax and a few other business-related taxes with an additional penny of sales tax statewide. In House Finance & Tax Committee. Never considered during Regular Session.

SB 1368, Jack Latvala (R-Clearwater): Provides an exemption from the sales tax for the CAM (Common Area Maintenance) charges in commercial leases. In Senate Commerce & Tourism Committee. Never considered during Regular Session.

Freight Logistic Zones – Sent to Governor for his signature on 5/26.

HB 257, Lake Ray (R-Jacksonville): Defines “freight logistics zone” and allows a county, or two or more contiguous counties, to designate the zones. Projects within the zones may be eligible for priority in state funding and certain incentive programs. Approved by Transportation & Ports Subcommittee on 2/3, Transportation & Economic Development Appropriations Subcommittee on 3/4, and Economic Affairs Committee on 3/11. Approved by House, 118-0, on March 18 and sent to the Senate.

SB 956, Wilton Simpson (R-New Port Richey): Identical to HB 257. Approved by Community Affairs Committee on 3/10, Appropriations Subcommittee on Transportation, Tourism, & Economic Development on 3/19, and Fiscal Policy on April 2. Substituted with HB 257 and approved by the Senate on 4/24, 39-0.

Freight Mobility & Trade Projects

HB 331, Lake Ray (R-Jacksonville) and George Moraitis (R-Fort Lauderdale): Allows certain funds in the State Transportation Trust Fund to be set aside for specific freight mobility and trade projects. In House Transportation & Ports Subcommittee. Never considered during Regular Session.

SB 958, Wilton Simpson (R-New Port Richey): Identical to HB 331. In Senate Transportation Committee. Never considered during Regular Session.

Medical Tourism

HB 945, Fred Costello (R-Ormond Beach): Creates a medical tourism marketing plan within Enterprise Florida and requires the state Division of Tourism Marketing to promote medical tourism. In Economic Development & Tourism Subcommittee. Never considered during Regular Session.

SB 86, Aaron Bean (R-Fernandina Beach): Identical to HB 945. In Commerce & Tourism Committee. Never considered during Regular Session.

Enterprise Zone Act Not Extended

HB 7067, Mike LaRosa (R-St. Cloud): Establishes local enterprise zone program. On 4/24, after several amendments, Approved by House 82-34. Sent to Senate. Not taken up by the Senate.

SB 392, Jeff Clemens (D-Lake Worth): Similar to HB 7067. In Commerce & Tourism. Never considered during Regular Session.

HB 903, Elizabeth Porter (R-Lake City): Extends Florida’s enterprise zones which are scheduled to sunset in December. Makes significant changes to the purpose of the program as well as the application process. In Economic Development & Tourism Subcommittee. Never considered during Regular Session.

SB 1556, Bill Montford (D-Tallahassee): Identical to HB 903. In Commerce & Tourism Committee. Never considered during Regular Session.

Growth Management – New law effective 5/14!

SB 1216, Wilton Simpson (R-New Port Richey): Streamlines the growth management process with significant impact on the responsibilities of regional planning councils. Approved by Senate, 39-0, on 4/22 and by House on 4/24, 83-31. Signed by Governor Scott on 5/14.

SB 832, Wilton Simpson (R-New Port Richey): Reduces detail required in sector planning. Approved by two committees. In Community Affairs Committee at close of Regular Session.

HB 933, Mike LaRosa (R-St. Cloud): Similar to SB 832. On House floor on 4/23, substituted with SB 1216. No further action taken before end of Regular Session.

SB 562, Wilton Simpson (R-New Port Richey): Provides for State Coordinated Review of larger projects, no longer the DRI process. Approved by Community Affairs Committee on 3/10, Transportation Committee on 3/19, and Rules Committee on 4/2. Now on Senate Calendar for Second Reading. No further action taken before end of Regular Session.

HB 579, Matt Gaetz (R-Shalimar): Identical to SB 562. In Economic Development & Tourism Subcommittee. Never considered during Regular Session.

Property RightsLegislation Approved by House and Senate!

HB 383, Keith Perry (R-Gainesville) and Katie Edwards (D-Sunrise): Creates cause of action for damages caused by unconstitutional land use exactions. Approved by Civil Justice Subcommittee on 2/10. Committee Substitute approved by Local Government Affairs Subcommittee on 3/18, Appropriations on 3/31, and Judiciary Committee, 17-1, on 4/8. Approved by House, 113-1, on 4/24. Sent to Senate. Substituted for SB 284. Approved by Senate on 4/28, 36-1. Not on Governor’s desk yet.

SB 284, Miguel Diaz de la Portilla (R-Miami): Similar to HB 383. Committee Substitute approved by Environmental Preservation & Conservation Committee on 3/24 and Appropriations Subcommittee on General Government on 4/14 and Appropriations Committee on 4/21. On Senate Calendar.

HB 551, Keith Perry (R-Gainesville): Would require local governments to address “the protection of private property rights” in their growth management plans. In Economic Development & Tourism Subcommittee. Never considered during Regular Session.

SB 1424, Greg Evers (R-Pensacola): Similar to HB 551. In Community Affairs Committee. Never considered during Regular Session.

Construction – Latent Defects

HB 501, Jay Fant (R-Jacksonville): Reduces period during which action must be brought for latent defect in design, planning, or construction of improvement to real property; from 10 years to 7 years. Approved by Civil Justice Subcommittee on 2/17. Committee Substitute now in Judiciary Committee. No further action taken during Regular Session.

SB 1158, Kelli Stargel (R-Lakeland): Similar to HB 501. In Judiciary Committee. Never considered during Regular Session.

Ad Valorem Assessments

HB 695, Bryan Avila (R-Hialeah) and John Cortes (D-Kissimmee): NAIOP Central Florida Chapter member, Bill Coleman, says this legislation will make the Value Adjustment Board and appeal process more difficult for commercial property owners. Approved by House on 4/27, 81-36. Sent to Senate. No further action taken before end of Regular Session.

SB 972, Anitere Flores (R-Miami): Similar to HB 695. Approved by Senate on 4/28, 40-0. No further action taken before end of Regular Session.

HB 417, John Wood (R-Winter Haven): Defines “fair market value”, “just value”, and “market value”; adds provision to Taxpayer’s Bill of Rights regarding assessment practices. In Finance & Tax Committee. Never considered during Regular Session.