1. No category

REVENUE ESTIMATING CONFERENCE
Tax: Gross Receipts/ Sales and Use Tax
Issue: Nuclear Generating Asset Retirement Financing
Bill Number(s): CS/HB7109 Section 7, CS/CS/SB288 Section 8
Entire Bill
Partial Bill: HB Section 7; SB Section 8 LOCAL IMPACT
Sponsor(s): Sen Latvala, Rep La Rosa, Rep Peters
Month/Year Impact Begins: July 1, 2015
Date of Analysis: April 23, 2015
x
Section 1: Narrative
a. Current Law: After the Hurricanes and Tropical storms in 2004 and 2005, a new financing mechanism, called securitization, was
created to allow investor-owned electric utilities to petition the PSC to finance storm recovery costs. The purpose of the
mechanism was to allow utilities to establish a nonbypassable charge to the utility’s customers and provide a secure stream of
revenue payments to the separate legal entity from which the bonds would be paid.
b.
Proposed Change: The bill creates a similar financing mechanism for investor-owned utilities, subject to the terms of an order
of the PSC, approving the creation of “Nuclear Asset-recovery Bonds” to recover certain costs associated with the premature
retirement of a nuclear plant. The PSC must find that the utility’s use of the financing mechanism will avoid or significantly
mitigate rate impacts to customers as compared with traditional financing methods of recovery for costs.
Section 2: Description of Data and Sources
Discussions with Public Service Commission
http://www.floridapsc.com/library/FILINGS/13/06894-13/06894-13.pdf
“The Florida Tax Guide for Municipal Electric Utilities” (page 35)
Gross Receipts Charges. Gross receipts charges are not exempt from gross receipts taxes. Gross receipts taxes should be
remitted
on gross receipt charges included in customer bills, whether or not those charges are separately stated.
http://www.publicpower.com/pdf/fmea_tax_guide_for_municipal_utilities_2006.pdf
http://dor.myflorida.com/dor/governments/mpst/
http://www.floridapsc.com/utilities/electricgas/statistics/statistics-2012.pdf
Section 3: Methodology (Include Assumptions and Attach Details)
Please see attached.
It is assumed the Nuclear Asset Recovery Charges are Taxable, based on the Florida Tax Guide for Municipal Electric Utilities.
In 2013 there was a settlement in Duke Energy vs Public Council setting the valuation of unrecovered costs from CR3’s early
retirement at $1.46bn. It is assumed that this site would be the most ready to enact the mechanisms provided in the language and
issue Nuclear Asset Recovery Bonds. The impact is derived from approximating current costs of financing under traditional methods
and comparing that to the new mechanism’s financing advantages and how those would impact gross receipts, state sales tax and
the regulatory assessment fee. Under traditional methods the bond financing rate for AAA Corporate Bonds is 4.59%, according to
the NEEC’s latest forecast. Under this new method it is believed that the rate could fall to as low as 2.6%. That equates to a 16.4%
decline in financing costs, along with the associated tax revenues. The high estimate is based on an impact beginning January 1, 2017
and the low is based on an impact beginning January 1, 2016.
This analysis takes into account only the local portion of the bill. DOR publishes data relating to the tax rates for Public Services
across municipalities and counties. The PSC’s “Statistics of Florida Electric Utility Industry” breaks out the counties that Duke Energy
is currently operating in the state. An effective rate was calculated at the municipal level and county level in the territories Duke
energy operates in. Those effective rates were then weighted by the population and unincorporated vs incorporated populations for
their respective rates. For example, the public service tax rate for counties had the unincorporated population of only counties with
a tax rate divided by the total population of all counties that Duke Energy operates in. The ratio was then applied against the against
the average public service tax rate for counties. Likewise, the same general methodology was applied for the municipal rates. An
average franchise fee of 6% was used and weighted against the population incorporated in the appropriate Duke Energy Counties.
445
REVENUE ESTIMATING CONFERENCE
Tax: Gross Receipts/ Sales and Use Tax
Issue: Nuclear Generating Asset Retirement Financing
Bill Number(s): CS/HB7109 Section 7, CS/CS/SB288 Section 8
The Impact that follows is ONLY the franchise fee and public service taxes. The high estimate assumes an effective rate of 10% across
the board. The middle estimate is based off industry provided effective rates and the low uses FDEC population statistics and DOR
data regarding local data to create a blended rate.
Section 4: Proposed Fiscal Impact
Local:
High
Cash
Recurring
2015-16
($1.2m)
($4.7m)
2016-17
($4.7m)
($4.7m)
2017-18
($4.7m)
($4.7m)
2018-19
($4.7m)
($4.7m)
2019-20
($4.7m)
($4.7m)
Cash
($0.7m)
($2.7m)
($2.7m)
($2.7m)
($2.7m)
Middle
Recurring
($2.7m)
($2.7m)
($2.7m)
($2.7m)
($2.7m)
2015-16
Cash
($1.1m)
Middle
Recurring
($4.3m)
2016-17
($4.3m)
($4.3m)
2017-18
($4.3m)
($4.3m)
2018-19
($4.3m)
($4.3m)
2019-20
($4.3m)
($4.3m)
Low
Cash
($0.4m)
($1.5m)
($1.5m)
($1.5m)
($1.5m)
Recurring
($1.5m)
($1.5m)
($1.5m)
($1.5m)
($1.5m)
Total
High
Cash
Recurring
Low
Cash
Recurring
List of affected Trust Funds: Sales and Use Tax, PECO, Regulatory TF
Section 5: Consensus Estimate (Adopted: 04/27/2015): The Conference adopted the middle estimate.
GR
2015-16
2016-17
2017-18
2018-19
2019-20
Cash
(0.1)
(0.4)
(0.4)
(0.4)
(0.4)
Recurring
(0.4)
(0.4)
(0.4)
(0.4)
(0.4)
Cash
(0.3)
(1.2)
(1.2)
(1.2)
(1.2)
Trust
Recurring
(1.2)
(1.2)
(1.2)
(1.2)
(1.2)
446
Local/Other
Cash
Recurring
(0.7)
(2.7)
(2.7)
(2.7)
(2.7)
(2.7)
(2.7)
(2.7)
(2.7)
(2.7)
Cash
(1.1)
(4.3)
(4.3)
(4.3)
(4.3)
Total
Recurring
(4.3)
(4.3)
(4.3)
(4.3)
(4.3)
Principal Asset Value
$1,460,000,000
Base Assumptions:
Equity Financing @50%
Debt Financing @50%
8.12%
4.59%
Total Financing Costs over 20 Years*
Gross Receipts @2.5%
Gross Receipts @2.6%
Sales and Use Tax @4.35%
Public Service Tax- Municipal @2.75% (Weighted)
Public Service Tax- County @1.84% (Weighted)
Franchise Fee @2.6% (Weighted)
Regulatory Assessment Fee @.072%
Total Tax over 20 Years
Annualized Gross Receipts
Annualized Sales Tax
Annualized Public Service Tax
Annualized Franchise Fee
Annualized Regulatory Assessment Fee
$2,631,507,900
$65,787,698
$17,788,993
$29,762,354
$72,366,467
$48,419,745
$68,419,205
$1,894,686
$304,439,149
$4,178,835
$1,488,118
$6,039,311
$3,420,960
$94,734
Total Impact
Nuclear Asset Recovery Bond Rate
2.60%
Total Financing Costs over 20 Years
Gross Receipts @2.5%
Gross Receipts @2.6%
Sales and Use Tax @4.35%
Public Service Tax- Municipal @2.75% (Weighted)
Public Service Tax- County @1.84% (Weighted)
Franchise Fee @2.6% (Weighted)
Regulatory Assessment Fee
Total Tax over 20 Years
Annualized Gross Receipts
Annualized Sales Tax
Annualized Public Service Tax
Annualized Franchise Fee
Annualized Regulatory Assessment Fee
$1,890,835,298
$47,270,882
$12,782,047
$21,385,347
$51,997,971
$34,791,369
$49,161,718
$1,361,401
$218,750,736
Difference
($740,672,602)
($18,516,815)
($5,006,947)
($8,377,007)
($20,368,497)
($13,628,376)
($19,257,488)
($533,284)
($85,688,413)
$3,002,646
$1,069,267
$4,339,467
$2,458,086
$68,070
($1,176,188)
($418,850)
($1,699,844)
($962,874)
($26,664)
Sales and Use Tax Impact
2015-16
2016-17
2017-18
2018-19
2019-20
($1,071,105)
($4,284,421)
($4,284,421)
($4,284,421)
($4,284,421)
Trust
2015-16
2016-17
2017-18
2018-19
2019-20
($104,713)
($418,850)
($418,850)
($418,850)
($418,850)
2015-16
2016-17
2017-18
2018-19
2019-20
($665,680)
($2,662,718)
($2,662,718)
($2,662,718)
($2,662,718)
Local
2015-16
($300,713)
2016-17
($1,202,852)
2017-18
($1,202,852)
2018-19
($1,202,852)
2019-20
($1,202,852)
*Separate bond calculator was used to approximate financing costs
447
Gross Receipts (Reg)
Gross Receipts (Swap)
Sales and Use Tax
Public Service Tax- Municipal
Public Service Tax- County
Franchise Fee
Regulatory Assessment Fee
Tax Rates
2.500%
2.600%
4.350%
2.750%
1.840%
2.600%
0.072%
REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax Issue: Sports Facilities Distributions Bill Number(s): CS/SB 1214 Entire Bill Partial Bill: Section 52 X
Sponsor(s): Month/Year Impact Begins: July 1, 2015 Date of Analysis: 4/23/15 Section 1: Narrative a. Current Law: S. 288.11625 provides applicants state funding under s. 212.20(6)(d)6.f. for the public purpose of constructing, reconstructing, renovating, or improving a sports facility. The expected amount of average annual new incremental state sales taxes generated by sales at the facility must be at least $500,000 above the baseline for the applicant to be eligible to receive a distribution under this section. Under s. 288.11625 (6)(a)1‐4. the annual distribution amount an applicant may receive is determined. If the total project cost is $200 million or greater, the annual distribution amount may be up to $3 million. If the total project cost is at least $100 million but less than $200 million, the annual distribution amount may be up to $2 million. If the total project cost is less than $100 million and more than $30 million, the annual distribution amount may be up to $1 million. (6)(d) The department shall notify the Department of Revenue of the applicant’s initial certification, and the Department of Revenue shall begin distributions within 45 days after such notification or upon a date specified by the department as requested by the approved applicant, whichever is later. b. Proposed Change: Effective July 1, 2015, the four sports development project applications reviewed by the DEO and recommended to the Legislature for approval are approved pursuant to s.288.11625(4)(e) F.S. The Department of Economic Opportunity shall certify the applicants for sports development projects no later than August 15, 2015. Section 2: Description of Data and Sources Used distribution amounts found in s. 288.11625(6)(a)1‐4 and the list of applicants from EDR. Section 3: Methodology (Include Assumptions and Attach Details) The four applicants are Daytona International Speedway, LLC which could receive $3 million a year, the South Florida Stadium which could receive $3 million per year, the City of Orlando which could receive $2 million per year, and the City of Jacksonville which could receive $1 million per year. The middle and low estimates reflect a one and two month lag respectively, in distributions. Section 4: Proposed Fiscal Impact High Middle
Low
Cash Recurring Cash
Recurring
Cash
Recurring 2015‐16 ($9.0m) ($9.0m) ($8.3m)
($9.0m)
($7.5m)
($9.0m) 2016‐17 ($9.0m) ($9.0m) ($9.0m)
($9.0m)
($9.0m)
($9.0m) 2017‐18 ($9.0m) ($9.0m) ($9.0m)
($9.0m)
($9.0m)
($9.0m) 2018‐19 ($9.0m) ($9.0m) ($9.0m)
($9.0m)
($9.0m)
($9.0m) 2019‐20 ($9.0m) ($9.0m) ($9.0m)
($9.0m)
($9.0m)
($9.0m) List of affected Trust Funds: General Revenue Section 5: Consensus Estimate (Adopted: 04/27/2015): The Conference adopted the middle estimate. GR Trust
Local/Other
Total
Cash Recurring Cash
Recurring
Cash
Recurring Cash
Recurring
2015‐16 (8.3) (9.0) 0.0 0.0 0.0 0.0 (8.3)
(9.0)
2016‐17 (9.0) (9.0) 0.0 0.0 0.0 0.0 (9.0)
(9.0)
2017‐18 (9.0) (9.0) 0.0 0.0 0.0 0.0 (9.0)
(9.0)
2018‐19 (9.0) (9.0) 0.0 0.0 0.0 0.0 (9.0)
(9.0)
2019‐20 (9.0) (9.0) 0.0 0.0 0.0 0.0 (9.0)
(9.0)
480
REVENUE ESTIMATING CONFERENCE
Tax: Sales and Use/ Corporate/ Ad Valorem
Issue: Enterprise Zone Benefits/ 3 year limited extension
Bill Number(s): CS/SB 1214 Proposed Amendment
Entire Bill
 Partial Bill: Section 51
Sponsor(s):
Month/Year Impact Begins:
Date of Analysis:
Section 1: Narrative
a. Current Law: Currently enterprise zones are going to expire on December 31, 2015
b.
Proposed Change: (1) For purposes of this section, the term “eligible business” means a business that entered into a contract
with the Department of Economic Opportunity for an economic development program under ss. 288.0659, 288.1045, 288.106,
288.107, 288.108, 288.1088 or 288.1089, Florida Statutes, between January 1, 2012, and July 1, 2015, for a project located in an
enterprise zone which was designated pursuant to s. 290.0065, Florida Statutes 2014, as of May 1, 2015.
(2) An eligible business may apply to the Department of Economic Opportunity for the following incentives, if the contract
with the Department of Economic Opportunity is still deemed active by the department and has not expired or terminated:
(a) The property tax exemption for a licensed child care facility under s. 196.095, Florida Statutes 2014.
(b) The building materials sales tax refund under s. 212.08(5)(g), Florida Statutes 2014.
(c) The business equipment sales tax refund under s. 212.08(5)(h), Florida Statutes 2014.
(d) The electrical sales tax exemption under s. 212.08(15), Florida Statutes, 2014.
(e) The enterprise zone jobs tax credit under s. 212.096, Florida Statutes 2014.
(f) The enterprise zone jobs tax credit under s. 220.181, Florida Statutes 2014.
(g) The enterprise zone property tax credit under s. 220.182, Florida Statutes 2014.
(3) The Department of Economic Opportunity must provide a list of eligible businesses annually to the Department of
Revenue. The Department of Economic Opportunity must also provide notice to the Department of Revenue upon the
expiration or termination of a contract.
(4) From January 1, 2016 to December 31, 2018, the Department of Economic Opportunity is designated to perform all the
duties and responsibilities that were performed by the governing body or enterprise zone development agency having
jurisdiction over the enterprise zone under ss. 196.095, 212.08(5) (g) and (h), 212.08(15), 220.181, and 220.182, Florida Statutes
2014, including receipt and review of applications, and certifications.
(5) This section is effective January 1, 2016, and expires on December 31, 2018.
Section 2: Description of Data and Sources
Department of Economic Opportunity (DEO) Enterprise Zone detail reports
Property Tax Oversight report on exempt child care facilities
Section 3: Methodology (Include Assumptions and Attach Details)
This Estimate consists of 6 pieces, one for each type of extended enterprise zone benefit. The basis for much of the analysis comes
from detailed reports from the DEO reports on which businesses would be able to apply for the extended benefits. There is a total of
34 eligible businesses.
The first section relates to the property tax exemption under s. 196.095. There were 199 facilities exempt in 2013 and 2014. The
average exempt value per facility for these two periods was $217,552. The high assumes that 20% of businesses will have a childcare
facility with the average value from 2013-14. The middle assumes that 10% of businesses will have a childcare facility with the
average value from 2013-14. The low assumes that 5% of businesses will have a childcare facility with the average value from 201314. For the purposes of the estimate it is also assumed the value of the childcare facilities does not change over time. This
exemption ends when the proposed language expires, and should affect the tax rolls for 2016, 2017, and 2018.
481
REVENUE ESTIMATING CONFERENCE
Tax: Sales and Use/ Corporate/ Ad Valorem
Issue: Enterprise Zone Benefits/ 3 year limited extension
Bill Number(s): CS/SB 1214 Proposed Amendment
The second section relates to the building material sales tax refund under s.212.08 (5) (g). It is assumed that all businesses will be
able to take advantage of this refund within the forecast period, and that the refunds will be evenly distributed for the affected
periods. The requirements for the refund specify that the refund must be applied for within 6 months of the activity for this reason
the affected period is 3 years plus 6 months. The high estimate assumes that that the businesses qualify for $10,000 per parcel due
to at least 20% of the employees of the business coming from the enterprise zone, and that there are three parcels per business
project. The low estimate assumes that that the businesses qualify for $5,000 per parcel due to less than 20% of the employees of
the business coming from the enterprise zone, and that there is one parcel per business project. The middle is the average of the
high and the low.
The third section relates to the business equipment sales tax refund under s.212.08 (5) (h). Capital investment for eligible businesses
is used to find the total investment of $532,534,810 for all projects. ). It is assumed that all businesses will be able to take advantage
of this refund within the forecast period, and that the refunds will be evenly distributed for the affected periods. The requirements
for the refund specify that the refund must be applied for within 6 months of the activity for this reason the affected period is 3
years plus 6 months. The high estimate assumes an investment window of 4 years and that 50% of capital investment is in business
equipment with values greater than $5,000. The middle estimate assumes an investment window of 6 years and that 40% of capital
investment is in business equipment with values greater than $5,000. The low assumes an investment window of 8 years and that
30% of capital investment is in business equipment with values greater than $5,000.
The fourth section relates to the electrical sales tax exemption under s.212.08(15). The annual enterprise zone report data was used
to find the relationship between the electrical sales tax exemption and the rest of the extended benefits. For 2012-13 and 2013-14
the electrical exemption represented and additional 5% on top of the rest of the benefits. The electrical exemption for the estimate
is 5% multiplied by the total for the rest of the benefits. The exemption lasts for 5 years, and the 2017-18 value is held constant for
2018-19 and 2019-20.
The fifth section consists of the Jobs credit taken against sales and use tax under s.212.096, or against corporate income tax under
s.220.181. Detailed data on wages and new employees for the affected business was used as the basis for this estimate. The high
assumes that for projects in rural enterprise zones 70% of employees are from the enterprise zone, for projects in Non-Rural
enterprise zones 30% of the employees reside in the zone, and that 10% in the welfare transition program from all projects. The
middle assumes that for projects in rural enterprise zones 50% of employees reside in the zone, for projects in Non-Rural enterprise
zones 20% of the employees reside in the zone, and that 7% in the welfare transition program from all projects. . The low assumes
that for projects in rural enterprise zones 19% of employees reside in the zone, for projects in Non-Rural enterprise zones 10% of the
employees reside in the zone, and that 4% in the welfare transition program from all projects. For all estimates it is assumed that
the welfare transition rate for the credit is 42.5%.
It is assumed that 60% of the credits generated are taken against sales tax based on the annual enterprise zone report. The middle is
the average of the high and the low. The credit shall be allowed for up to 24 consecutive months.
The sixth section consists of the property tax credit under s. 220.182. It is assumed that all businesses will be affected by this credit.
It was assumed that 70% of the capital investment amount was real property improvements qualifying for the credit. 2014
Statewide average millage of 18.3703 mills was multiplied to the assumed real property value to obtain maximum property tax per
project. The high assumes 3 parcels per business, and that the business employs at least 20% of their workforce from the enterprise
zone. Impact was limited to $50,000 per parcel for the high. The low assumes 1 parcel per business, and that the business employs
less than 20% of their workforce from the enterprise zone. Impact was limited to $25,000 per parcel in the low. The middle is the
average of the high and the low. This credit is granted from 5 years and will first be taken against returns in 2017-18
The proposed language takes effect on January 1, 2016, and expires on December 31, 2018.
482
REVENUE ESTIMATING CONFERENCE
Tax: Sales and Use/ Corporate/ Ad Valorem
Issue: Enterprise Zone Benefits/ 3 year limited extension
Bill Number(s): CS/SB 1214 Proposed Amendment
Section 4: Proposed Fiscal Impact
Sales and Use Tax
High
Cash
Recurring
2015-16
$(6.1 M)
2016-17
$(8.8 M)
2017-18
$(8.5 M)
2018-19
$(4.6 M)
2019-20
$(1.1 M)
Middle
Cash
Recurring
$(3.4M)
$(5.2 M)
$(4.9 M)
$(2.7 M)
$(0.7 M)
Low
Cash
$(1.7 M)
$(2.4 M)
$(2.3 M)
$(1.4 M)
$(0.4 M)
Recurring
Corporate Income tax
High
2015-16
2016-17
2017-18
2018-19
2019-20
Cash
$(1.1 M)
$(2.7 M)
$(4.0 M)
$(2.7 M)
$(1.9 M)
Recurring
Cash
$(0.7 M)
$(1.6 M)
$(2.7 M)
$(2.0 M)
$(1.4 M)
Middle
Recurring
Low
Cash
$(0.3 M)
$(0.6 M)
$(1.4 M)
$(1.2 M)
$(1.0 M)
Recurring
Property Tax
High
Cash
2015-16
2016-17
2017-18
2018-19
2019-20
Recurring
(Insignificant)
(Insignificant)
(Insignificant)
(Insignificant)
Cash
Middle
Recurring
(Insignificant)
(Insignificant)
(Insignificant)
(Insignificant)
Low
Cash
Recurring
(Insignificant)
(Insignificant)
(Insignificant)
(Insignificant)
Total
High
2015-16
2016-17
2017-18
2018-19
2019-20
Cash
$(7.1 M)
$(11.5 M)
$(12.5 M)
$(7.3 M)
$(3.0 M)
Recurring
Cash
$(4.1 M)
$(6.8 M)
$(7.7 M)
$(4.7 M)
$(2.1 M)
Middle
Recurring
Low
Cash
$(2.0 M)
$(3.1 M)
$(3.8 M)
$(2.6 M)
$(1.3 M)
Recurring
List of affected Trust Funds: Sales, Corporate, Ad Valorem
Section 5: Consensus Estimate (Adopted: 04/27/2015): The Conference adopted the following non-recurring impacts for the
individual incentive pieces of the Enterprise Zone Act:
Childcare Facilities: Negative Insignificant for FY 2015-16 through FY 2018-19.
Building Materials Sales Tax Refund: ($.1m) for FY 2015-16 through FY 2018-19.
Business Equipment Sales Tax Refund: ($.8m) for FY 2015-16 through FY 2017-18 and ($.4m) for FY 2018-19.
Electrical Energy Sales Tax Exemption: Negative Insignificant for FY 2015-16 and ($.1m) for FY 2016-17 through FY 2019-20.
Corporate Income Tax Jobs Credits: FY 2015-16 – ($.3m), FY 2016-17 – ($.7m), FY 2017-18 – ($.6m), FY 2018-19 – ($.3m), FY 201920 – ($.1m)
Sales and Use Tax Jobs Credits: FY 2015-16 – ($.2m), FY 2016-17 – ($.4m), FY 2017-18 – ($.4m), FY 2018-19 – ($.2m), FY 2019-20 –
($.1m)
Corporate Income Tax Credit for Ad Valorem paid: ($.4m) for FYs 2017-18 through 2019-20.
483
REVENUE ESTIMATING CONFERENCE
Tax: Sales and Use/ Corporate/ Ad Valorem
Issue: Enterprise Zone Benefits/ 3 year limited extension
Bill Number(s): CS/SB 1214 Proposed Amendment
GR
2015-16
2016-17
2017-18
2018-19
2019-20
Cash
(1.2)
(1.9)
(2.2)
(1.5)
(0.8)
2015-16
2016-17
2017-18
2018-19
2019-20
Recurring
0.0
0.0
0.0
0.0
0.0
Trust
Cash
Recurring
(Insignificant)
0.0
(Insignificant)
0.0
(Insignificant)
0.0
(Insignificant)
0.0
(Insignificant)
0.0
Local Option
Cash
Recurring
(0.1)
0.0
(0.1)
0.0
(0.1)
0.0
(Insignificant)
0.0
0.0
0.0
Revenue Sharing
Cash
Recurring
(Insignificant)
0.0
(Insignificant)
0.0
(Insignificant)
0.0
(Insignificant)
0.0
(Insignificant)
0.0
Total Local
Cash
Recurring
(0.2)
0.0
(0.2)
0.0
(0.2)
0.0
(Insignificant)
0.0
(Insignificant)
0.0
484
Local Half Cent
Cash
Recurring
(0.1)
0.0
(0.1)
0.0
(0.1)
0.0
(Insignificant)
0.0
0.0
0.0
Total
Cash
(1.4)
(2.1)
(2.4)
(1.5)
(0.8)
Recurring
0.0
0.0
0.0
0.0
0.0
Enterprise Zone Benefits/ 3 Year Limited Extension
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
B
Summary of DEO Data
Number of Affected businesses
Rural - 4
NonRural - 30
Total 34
C
New Jobs by year
2016
75
573
648
Section 1. 196.095 Property Tax Exemption for licensed child care facility
Millage Rate (School)
Millage Rate (Non-School)
Millage Rate (total)
D
2017
0
265
265
E
F
2018
0
279
279
7.4334
10.9369
18.3703
Licensed Child Care Facility Exemptions
Exemption Value
CY to FY
2013-14
2013 $
2014 $
40,513,828
46,071,680
199 $
199 $
203,587 $
231,516 $
$
43,292,754
199 $
217,552
Percent of affected businesses
Number of affected businesses
2013-14*
School impact
Non-School impact
Total Impact
20%
6.8
High
$
$
$
$
1,479,350
10,997
16,180
27,176
10%
3.4
Middle
$
$
$
$
*Assumes no change in exemption value for forecast period. Possible impact for 2016, 2017, and 2018 property tax rolls.
*For the purposes of the totals at the bottom the impacts here are added for fiscal years 2016-17, 2017-18, and 2018-19
April 27, 2015 Impact Conference
Total Impact Average Exemption Current Exemption
Number of Facilities
485
1
739,675
5,498
8,090
13,588
5%
1.7
Low
$
$
$
$
369,838
2,749
4,045
6,794
744,251
846,351
G
Enterprise Zone Benefits/ 3 Year Limited Extension
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
A
B
Section 2. 212.08(5)(g) building materials sales tax refund
High Assumes the business meets the ≥ 20% requirement for EZ employees and there are 3 parcels involved in each project
Low assumes the business does not meet the 20% requirement and there is only 1 parcel involved in each project
Middle is the average of the High and the Low
34 Affected businesses in all estimates
Total impact is evenly distributed across periods available for refund (3 years plus 6 months).
Number of Businesses
Parcels per Business
Refund/ Parcel
34
3
10,000 $
$
High ($10K/parcel)
Total
per month
C
D
E
34
1
7,500
Low ($5K/parcel)
$
$
1,020,000 $
24,285.71 $
Monthly value * affected months in each fiscal year
High
2015-16
$
2016-17
$
2017-18
$
2018-19
$
255,000
8,500.00
Affected months
145,714
291,429
291,429
145,714
Middle
$
$
$
$
98,357
196,714
196,714
98,357
Low
$
$
$
$
51,000
102,000
102,000
51,000
Section 3. 212.08(5)(h) Business Equipment Sales Tax Refund
Per DEO research files affected businesses will be investing $532.5 M
High Assumes 50% spent on Business Equipment with price > $5,000 and a 4 year investment period
Middle Assumes 40% spent on Business Equipment with price > $5,000 and a 6 year investment period
Low Assumes 20% spent on Business equipment with price > $5,000 and an 8 year investment period
Total impact is evenly distributed across periods available for refund (3 years plus 6 months).
Total investment
Investment periods Years
Spending on Business Equipment
Spending per Year
Sales tax refunds available per year
$
$
2015-16
2016-17
2017-18
2018-19
High
$
$
$
$
April 27, 2015 Impact Conference
$
F
532,534,810
4
50%
66,566,851 $
3,994,011 $
3,994,011
3,994,011
3,994,011
1,997,006
Middle
$
$
$
$
486
2
6
40%
35,502,321 $
2,130,139 $
2,130,139
2,130,139
2,130,139
1,065,070
Low
$
$
$
$
8
20%
13,313,370
798,802
798,802
798,802
798,802
399,401
6
12
12
6
G
Enterprise Zone Benefits/ 3 Year Limited Extension
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
A
B
Section 4. 212.08(15) Electrical Energy Sales Tax Exemption
Electrical Energy exemption is approximately 5% of value of the total of the rest Enterprise zone incentives
2.5% applied to the total from all other Enterprise Zone incentives
Exemption lasts for 5 years
Total incentives
2015-16
2016-17
2017-18
High
$
$
$
Electricity exemption
2015-16
2016-17
2017-18
2018-19
2019-20
High
$
$
$
$
$
April 27, 2015 Impact Conference
C
Middle
6,806,818 $
10,940,551 $
11,934,152 $
340,341
547,028
596,708
596,708
596,708
Middle
$
$
$
$
$
487
3
D
E
Low
3,800,999 $
7,239,933 $
6,874,136 $
1,327,716
2,467,170
2,346,656
Low
$
$
$
$
$
33,193
61,679
58,666
58,666
58,666
190,050
361,997
343,707
343,707
343,707
F
G
Enterprise Zone Benefits/ 3 Year Limited Extension
A
93
94
95
96
97
98
99
100
101
102
103
104
105
106
B
C
D
E
Section 5. 212.096 Enterprise Zone Jobs tax credit against Sales and Use Tax and 220.181 Enterprise Zone Jobs credit against corporate tax
High assumes either that in rural enterprise zones at least 20% of employees are from the Enterprise zone
or that the employees are participating in the welfare transition program making $8 more than the Minimum Wage
Low assumes that less than 20% of employees are from the Enterprise Zone
The EZ jobs credit against Sales and Use Tax Represents 60% of the Total EZ job Credits
Middle is the Average of the High and the Low
Credit shall be allowed for up to 24 consecutive months
Summary of DEO Data
Number of Affected businesses
Rural - 4
NonRural - 30
Total 34
New Jobs by year
2016
75
573
648
2017
0
265
265
2018
0 $
279 $
279 $
Assumed % Employees per year Residing in
Zone
Rural
Urban
High
70%
30%
Middle
50%
20%
Low
19%
7.5%
Assumed % Employees Welfare to Work
Rural
Urban
High
10%
10%
Middle
7%
7%
Low
2%
2%
114 Calculated credits generated per year - Rural
115
2016
116
2017
117
2018
118
Calculated credits generated per year 119 NonRural
120
2016
121
2017
122
2018
123
124
125 total credits per year
126
2016
127
2017
128
2018
129
2019
130
131 CY to Fy
132
2015-16
133
2016-17
134
2017-18
135
2018-19
136
2019-20
137
High
$1,666,718.63
$0.00
$0.00
Middle
$1,187,682.71
$0.00
$0.00
Low
$305,370.83
$0.00
$0.00
High
$3,667,466.04
$2,587,500.95
$1,524,526.02
Middle
$2,484,189.26
$1,209,633.09
$1,520,291.23
Low
$650,456.24
$316,728.44
$398,070.68
High
$5,334,184.67
$7,921,685.62
$4,112,026.97
$1,524,526.02
Middle
$3,671,871.98
$4,881,505.06
$2,729,924.31
$1,520,291.23
Low
$955,827.07
$1,272,555.51
$714,799.12
$398,070.68
107
108
109
110
111
112
113
April 27, 2015 Impact Conference
High
$2,667,092.33
$6,627,935.14
$6,016,856.29
$2,818,276.49
$762,263.01
Low
$477,913.53
$1,114,191.29
$993,677.32
$556,434.90
$199,035.34
488
4
F
Jobs times Average Wage
2016
2017
4,662,150 $
$
27,678,989 $
13,477,806 $
32,341,139 $
13,477,806 $
G
2018
16,939,178
16,939,178
Enterprise Zone Benefits/ 3 Year Limited Extension
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
A
Credit against Sales tax (assumed 60% of
total)
2015-16
2016-17
2017-18
2018-19
2019-20
B
C
D
High
$1,600,255.40
$3,976,761.08
$3,610,113.77
$1,690,965.90
$457,357.81
Middle
$943,501.76
$2,322,637.93
$2,103,160.08
$1,012,413.42
$288,389.51
Low
$286,748.12
$668,514.77
$596,206.39
$333,860.94
$119,421.20
Credit Against Corporate (assumed 40% of
total)
2015-16
2016-17
2017-18
2018-19
2019-20
High
$1,066,836.93
$2,651,174.06
$2,406,742.52
$1,127,310.60
$304,905.20
Middle
$629,001.17
$1,548,425.29
$1,402,106.72
$674,942.28
$192,259.67
Low
$191,165.41
$445,676.51
$397,470.93
$222,573.96
$79,614.14
Section 6. 220.182 Enterprise Zone Property Tax Credit
High Assumes the business meets the ≥ 20% requirement for EZ employees and there are 3 parcels involved in each project
Low assumes the business does not meet the 20% requirement and there is only 1 parcel involved in each project
Middle is the average of the High and the Low
Assumes real property equals 70% of capital investment
Uses 2014 Aggregate Millage of 18.3703
For Low uses assumed real property*millage and caps impact at $37,500
Number of Businesses
for High Uses assumed real property /3 * millage and caps impact at $50,000
Parcels per Business
34 Affected businesses in all estimates
Credit/ Parcel
Will not be able to first be taken until 2017-18
Credit is granted for 5 years
Annual credit
April 27, 2015 Impact Conference
5
F
G
34
17
3
1
$
50,000 $
25,000
High ($50K/parcel) Low ($25K/parcel)
$
1,604,680 $
425,000
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
489
E
High
$
$
$
$
$
$
1,604,680
1,604,680
1,604,680
1,604,680
Middle
$
$
$
$
$
$
1,014,840
1,014,840
1,014,840
1,014,840
Low
$
$
$
$
$
$
425,000
425,000
425,000
425,000
Enterprise Zone Benefits/ 3 Year Limited Extension
A
172
173 Total Impact
174
175
Year
176
2015-16
177
2016-17
178
2017-18
179
2018-19
180
2019-20
181
182
183 Sales Tax Impact
184
185
Year
186
2015-16
187
2016-17
188
2017-18
189
2018-19
190
2019-20
191
192
193 Corporate Income Tax Impact
194
195
Year
196
2015-16
197
2016-17
198
2017-18
199
2018-19
200
2019-20
April 27, 2015 Impact Conference
B
C
D
High*
Cash
$
$
$
$
$
(7.1 M)
(11.5 M)
(12.5 M)
(7.2 M)
(3.0 M)
Cash
$
$
$
$
$
High*
(6.1 M)
(8.8 M)
(8.5 M)
(4.4 M)
(1.1 M)
Cash
$
$
$
$
$
(4.0 M)
(6.6 M)
(7.2 M)
(4.2 M)
(1.8 M)
Cash
$
$
$
$
$
(1.1 M)
(2.7 M)
(4.0 M)
(2.7 M)
(1.9 M)
490
6
Cash
$
$
$
$
$
(3.4 M)
(5.0 M)
(4.8 M)
(2.5 M)
(0.6 M)
Cash
$
$
$
$
$
Recurring
(1.2 M)
(1.6 M)
(1.6 M)
(0.8 M)
(0.2 M)
Low
Recurring
(0.6 M)
(1.5 M)
(2.4 M)
(1.7 M)
(1.2 M)
Recurring
(1.4 M)
(2.1 M)
(2.4 M)
(1.5 M)
(0.7 M)
Low
Recurring
Middle
Recurring
G
Low
Recurring
Middle
Recurring
High*
Cash
$
$
$
$
$
F
Middle
Recurring
Cash
$
$
$
$
$
E
Cash
$
$
$
$
$
Recurring
(0.2 M)
(0.4 M)
(0.8 M)
(0.6 M)
(0.5 M)
REVENUE ESTIMATING CONFERENCE
Tax: Highway Safety Fees
Issue: Rural Letter Carriers
Bill Number(s): CS/SB 160
Entire Bill
Partial Bill:
Sponsor(s): Fiscal Policy and Evers
Month/Year Impact Begins: Becoming Law
Date of Analysis: 4/23/2015
X
Section 1: Narrative
a.
Current Law: Section 316.614, Florida Statutes, provides the “Florida Safety Belt Law” that requires a motor vehicle operator,
front seat passengers, and all passengers under 18 years of age to wear safety belts while the vehicle is in motion.
b.
Proposed Change: Section 316.614, Florida Statutes is amended to read “a rural letter carrier of the United States Postal
Service is not required to be restrained by a safety belt while performing duties in the course of his or her employment on a
designated postal route.”
Section 2: Description of Data and Sources
Senate Fiscal Policy 2015 Legislative Bill Analysis CS/SB 160 (3/19/2015)
Conversation with North Florida District Representative for the Florida Rural Letter Carriers’ Association
Distribution Schedule of Court-Related Filing Fees, Service Charges, Costs, and Fines, including a Recording Fee Schedule, Updated
October 2014
Handbook PO-603, Rural Carrier Duties and Responsibilities (11-10-05), available at
https://about.usps.com/postalbulletin/2005/html/pb22167/postoffice.html
Bureau of Labor Statistics, Occupational Employment Statistics, available at http://www.bls.gov/oes/current/oes435052.htm#st
Section 3: Methodology (Include Assumptions and Attach Details)
According to the Bureau of Labor Statistics, Florida has approximately 18,000 Postal Service Mail Carriers (as of May 2014).
According to the Florida Rural Letter Carriers’ Association, there were approximately 9,000 Rural Mail Carriers in Florida in the same
time frame. Because Uniform Traffic Citation data do not include occupation of recipient, of these approximately 9,000 Rural Mail
Carriers, it is unknown the number of citations issued for failure to use a safety belt under current administration. Furthermore,
United States Postal Service employees are governed by federal regulations that allow for Rural Mail Carriers to not wear a safety
belt providing the carrier determines it is safe. The proposed language would align Florida Statute with these Federal regulations.
This change would reduce the potential pool of drivers subject to the penalties for failure to wear a safety belt ($30 plus
administrative costs [$108.00 total]) resulting in a loss of revenue. Because it is unknown how many citations have been and will be
issued for Rural Mail Carriers and under Federal Regulations these citations can be dismissed if challenged (according to the Florida
Rural Letter Carriers’ Association citations that have been issued have been done so erroneously because Federal Regulations allow
for non-wearing. While a small number who receive these citations do end up paying the fines, most are dismissed), the loss of
revenue is insignificant.
Section 4: Proposed Fiscal Impact
High
Cash
2015-16
2016-17
2017-18
2018-19
2019-20
Middle
Recurring
Cash
(Insignificant)
(Insignificant)
(Insignificant)
(Insignificant)
(Insignificant)
Recurring
(Insignificant)
(Insignificant)
(Insignificant)
(Insignificant)
(Insignificant)
Low
Cash
Recurring
REVENUE ESTIMATING CONFERENCE
Tax: Highway Safety Fees
Issue: Rural Letter Carriers
Bill Number(s): CS/SB 160
List of affected Trust Funds:
General Revenue Funds
State Courts Revenue Trust Fund
State Attorneys Revenue Trust Fund
Public Defenders Revenue Trust Fund
The Clerks of Court Trust Fund
Section 5: Consensus Estimate (Adopted: 04/27/2015): The Conference adopted the proposed impact.
2015-16
2016-17
2017-18
2018-19
2019-20
GR
Cash
Recurring
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
Trust
Cash
Recurring
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
Local/Other
Cash
Recurring
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Total
Cash
Recurring
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)
(Insignificant) (Insignificant)