Free DR-418 - Florida

Economic Development Ad Valorem Property Tax Exemption
Chapter 196.1995, Florida Statutes
To be filed with the Board of County Commissioners, the governing boards of the municipality, or both, no later than March 1 of the year the exemption is desired to take effect. 1. Business Name and Mailing Address:

DR-418 R. 12/99

2.

Please give name and telephone number of Owner or Person in charge of this Business. Name Telephone Number

3. 4. 5.

Exact Location (Legal Description and Street Address) of Property for which this return is filed: Date you began, or will begin, business at this facility: a. Description of the improvements to real property for which this exemption is requested:

b. 6. a.

Date of commencement of construction of improvements: Description of the tangible personal property for which this exemption is requested and date when property was, or is to be purchased: DATE OF PURCHASED TAXPAYER'S ESTIMATE OF FAIR MARKET VALUE

Condition

CLASS OR ITEM

AGE

ORIGINAL COST

Good

TAXPAYER'S ESTIMATE OF Condition
Poor Avg

APPRAISER'S USE ONLY

b. c. 7. 8.

Average Value of inventory on hand: Any additional personal property not listed above for which an exemption is claimed must be returned on form DR-405 (Tangible Personal Property Tax Return) and a copy attached to this form.

Do you desire exemption as a "New Business" or as an "Expansion of an Existing Business" Describe Type or Nature of Your Business:

9.

Trade Level (Check as many as apply)

Retail

Wholesale

Manufacturing

Professional

Service

Office

Other

10. a. b.

Number of full-time employees to be employed in Florida If an expansion of an existing business: (1) Net increase in employment (2) Increase in productive output resulting from this expansion or % %

11. Sales factor for the facility requesting exemption: Total sales in Florida from this facility-one (1) location only Total sales everywhere from this facility-one (1) location only 12. For office space owned and used by a corporation newly domiciled in Florida: a. b. Date of incorporation in Florida: Number of full-time employees at this location: = divided by %

I hereby request the adoption of an ordinance granting an exemption from ad valorem taxation on the above property pursuant to Section 196.1995, Florida Statutes. I agree to furnish such other reasonable information as the Board of County Commissioners, the governing authority of the municipality, or the Property Appraiser may request in regard to the exemption requested herein. I hereby certify that the information and valuation stated above by me is true, correct, and complete to the best of my knowledge and belief. (If prepared by someone other than the taxpayer, his declaration is based on all information of which he has any knowledge.)

DATE: SIGNED: (Taxpayer) TITLE:

SIGNED: (Preparer) (Preparer's Address) (Preparer's Telephone Number)

Property Appraiser's Use Only
I. II. Total revenue available to the county or municipality for the current fiscal year from ad valorem tax sources: Revenue lost to the county or municipality for the current fiscal year by virtue of exemptions previously granted under this section:

III. Estimate of the revenue which would be lost to the county or municipality during the current fiscal year if the exemption applied for were granted and the property for which the exemption is requested would otherwise have been subject to taxation: IV. Estimate of the taxable value lost to the county or municipality if the exemption applied for was granted: Improvements to real property V. Personal Property

I have determined that the property listed above meets the definition, as defined by Section 196.012(15) or (16), Florida Statutes, as a New Business , an "Expansion of an Existing Business" , or Neither ,

VI. Last year for which exemption may be applied DATE: SIGNED: (Property Appraiser)

Application to be filed not later than March 1

General Information
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 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 governing 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 signed 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 regular election or special election called for voting on the tax incentive referendum or for any other purpose. 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. The expansion must be on the same or a colocated site of the business current operations. 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. After the city or county commission receives this application, it must submit the application to the county property appraiser for review. After the property 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 mannergranting the exemption, if it chooses to do so. 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 city or county to pay for bond issues and other special tax levies authorized by the voters of a city or county. 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 be located will still be taxed and taxes must be paid on it. 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 exempt its taxes. All other taxes must be paid.

Statutory Definitions
Section 196.011 Annual application required for exemption.-- (1)(a) Every person or organization who, on January 1, has the legal title to real or personal property, except inventory, which is entitled by law to exemption from taxation as a result of its ownership and use shall, on or before March 1 of each year, file an application for exemption with the county property appraiser, listing and describing the property for which exemption is claimed and certifying its ownership and use. The Department of Revenue shall prescribe the forms upon which the application is made. Failure to make application, when required, on or before March 1 of any year shall constitute a waiver of the exemption privilege for that year, except as provided in subsection (7) or subsection (8). Section 196.012(15) and (16), Florida Statutes (15) "New business" means: (a)1. A business establishing 10 or more jobs to employ 10 or more full-time employees in this state, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; 2. A business establishing 25 or more jobs to employ 25 or more full-time employees in this state, the sales factor of which, as defined by s.220.15(5), for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or 3. An office space in this state owned and used by a corporation newly domiciled in this state; provided such office space houses 50 or more full-time employees of such corporation; provided that such business or office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business. (b) Any business located in an enterprise zone that first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business. (c) A new business that is situated on property annexed into a municipality and that, at the time of annexation, is receiving an economic development ad valorem tax exemption from the county under s. 196.1995. (16) "Expansion of an existing business" means: (a)1. A business establishing 10 or more jobs to employ 10 or more full-time employees in this state, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or

2. A business establishing 25 or more jobs to employ 25 or more full-time employees in this state, the sales factor of which, as defined by s. 220.15(5), for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; provided that such business increases operation on a site colocated with a commercial or industrial operation owned by the same business, resulting in a net increase in employment of not less than 10 percent or an increase in productive output of not less than 10 percent. (b) Any business located in an enterprise zone that increases operations on a site colocated with a commercial or industrial operation owned by the same business. Section 196.1995 Economic development ad valorem tax exemption.(6) With respect to a new business as defined by s. 196.012(15)(c), the municipality annexing the property on which the business is situated may grant an economic development ad valorem tax exemption under this section to that business for a period that will expire upon the expiration of the exemption granted by the county. If the county renews the exemption under subsection (7), the municipality may also extend its exemption. A municipal economic development ad valorem tax exemption granted under this subsection may not extend beyond the duration of the county exemption. Section 220.15(5), Florida Statutes. (5) The sales factor is a fraction the numerator of which is the total sales of the taxpayer in this state during the taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. (a) As used in this subsection, the term "sales" means all gross receipts of the taxpayer except interest, dividends, rents, royalties, and gross receipts from the sale, exchange, maturity, redemption, or other disposition of securities. However: 1. Rental income is included in the term if a significant portion of the taxpayer's business consists of leasing or renting real or tangible personal property; and 2. Royalty income is included in the term if a significant portion of the taxpayer's business consists of dealing in or with the production, exploration, or development of minerals. (b)1. Sales of tangible personal property occur in this state if the property is delivered or shipped to a purchaser within this state, regardless of the f.o.b. point, other conditions of the sale, or ultimate destination of the property, unless shipment is made via a common or contract carrier. 2. When citrus fruit is delivered by a cooperative for a grower-member, by a growermember to a cooperative, or by a grower-participant to a Florida processor, the sales factor for the growers for such citrus fruit delivered to such processor shall be the same as the sales factor for the most recent taxable year of that processor. That

sales factor, expressed only as a percentage and not in terms of the dollar volume of sales, so as to protect the confidentiality of the sales of the processor, shall be furnished on the request of such a grower promptly after it has been determined for that taxable year. 3. Reimbursement of expenses under an agency contract between a cooperative, a grower-member of a cooperative, or a grower and a processor is not a sale within this state. (c) Sales of a financial organization, including, but not limited to, banking and savings institutions, investment companies, real estate investment trust, and brokerage companies, occur in this state if derived from: 1. Fees, commissions, or other compensation for financial services rendered within this state; 2. Gross profits from trading in stocks, bonds, or other securities managed within this state; 3. Interest received within this state, other than interest from loans secured by mortgages, deeds of trust, or other liens upon real or tangible personal property located in this state, and dividends received within this state; 4. Interest charged to customers at places of business maintained within this state for carrying debit balances of margin accounts, without deduction of any costs incurred in carrying such accounts; 5. Interest, fees, commissions, or other charges or gains from loans secured by mortgages, deeds of trust or other liens upon real or tangible personal property located in this state or from installment sale agreements originally executed by a taxpayer or the taxpayer's agent to sell real or tangible personal property located in this state; 6. Rents from real or tangible personal property located in this state; or 7. Any other gross income, including other interest, resulting from the operation as a financial organization within this state. In computing the amounts under this paragraph, any amount received by a member of an affiliated group (determined under s. 1504(a) of the Internal Revenue code, but without reference to whether any such corporation is an "includable corporation" under s. 1504(b) of the Internal Revenue code) from another member of such group shall be included only to the extent such amount exceeds expenses of the recipient directly related thereto.