Q. Where can I find technical information about refunds to a business or individual located in an Enterprise Zone?

A. Section 212.08(5)(g) and (h), Florida Statutes. Another helpful publication is Tax Information Publication (TIP) 01A01-06, which can be found on the Department of Revenues web site.

Q. The maximum amount of refund allowed for a business or individual is $5,000. Is there an exception to this limit?

A. Yes. The refund may be raised to an amount of up to $10,000 if more than 20 percent of the permanent employees live in the Enterprise Zone. The Enterprise Zone form provides a place to list the employees or a separate sheet may be attached to the form.

Q. How do I find out if there is an Enterprise Zone in my community?

A.  You can either contact the local zone coordinator for your community, or search for the addresses through this web portal.

Business Property

Q. What type of business equipment qualifies for the refund?

A. "Business property" is new or used equipment defined as "recovery property" in s. 38 of the Internal Revenue Code of 1954, as amended. The "business property" must have a class-life of five years and a sales price of $5,000 per unit. "Business property" that becomes a component part of improvements to real property would not qualify under this exemption.

Q. What is considered a unit?

A. The term "unit" refers to a single item of tangible personal property. If two or more items are sold to the same purchaser at the same time and each of the items is interconnected and necessary to make the other(s) functional and integrated, such items are a single unit for purposes of the $5,000 limitation when supported by charge tickets, sales slips, invoices, or other tangible evidence of a single sale. (Section 212.08(5)(h), F.S.)

Q. What is the statute of limitations for an Enterprise Zone application?

A. An application for a refund must be submitted to the Department within 6 months after the tax is due on the business property that is purchased. The date on the invoice is the date used to determine the 6-month deadline.

Building Materials

Q. What is the statute of limitations for an Enterprise Zone application for building materials?

An application for a refund pursuant to this paragraph must be submitted to the Department within 6 months after the rehabilitation of the property is deemed to be substantially completed by the local building code inspector or within 90 days after the rehabilitated property is first subject to assessment. The date on the certificate of occupancy is used if invoices are submitted. For applications using the assessed value formula, the deadline is March 31st of the following year.

Q. If our county doesn't provide a certificate of occupancy, will a final inspection report suffice?

A. Yes. The statute does not require that the taxpayer provide a certificate of occupancy. However, it is generally the document required by the Refunds Sub-process to satisfy this requirement. If a taxpayer submits some other document, clearly issued by the local building code inspector, and certifying that the improvements are substantially completed, the requirement of sub-subparagraph s. 212.08(5)(g)1.g., F.S., would be satisfied.

Q. Can a builder file an application for refund of sales tax paid on building materials and then sell the house before the application has been processed?

A. Yes. Florida Statutes require that the application for refund be the owner, lessee, or lessor of the rehabilitated real property at the time the refund application is submitted to the Florida Department of Revenue

Q. If the rehabilitated property is listed in the owner's name or a corporate officer's name on the property tax rolls, but the building permit and the certificate of occupancy are in a different name, which name should be listed as the applicant on the refund application?

A. It is best to have the same owner’s name as listed by the property appraiser as the applicant. A list of officers for the corporation or some documentation stating the relationship between the owner and the company should also be submitted to the Department.

Q. Can an owner assign his right to a refund to the builder or vise versa?

A. No. There is no statutory authority in s. 212.08(5)(g), F.S., allowing the Department to issue the refund to any other parties. An affidavit from the present owner, authorizing issuance of the refund to the previous owner, would not allow the Department to issue the refund to the previous owner. The Refunds Sub-process can only refund the owner, lessor, or lessee at the time of application even if a properly executed affidavit is presented requesting that the refund be issued to a previous owner.