RSA 12A-1.109 - Florida Sales Tax Credit Scholarship Program for Commercial Rental Property
(1) Definitions.
For purpose of this rule, the following terms mean:
(a) "Allocation" means the amount of program
funds allocated by the Department to a tenant for monetary contributions to be
made to an organization during a state fiscal year.
(b) "Contribution" means a monetary
contribution, as defined in Section 212.099, F.S., from an eligible business to
an eligible nonprofit scholarship-funding organization to be used under the
Florida Tax Credit Scholarship Program established under Section 1002.395,
F.S.
(c) "Credit" means an
allocation for which a contribution to an organization has been made and is
eligible to be taken by a tenant against the state tax due under Section
212.031, F.S.
(d) "Dealer" means
the person who is registered under Rule
RSA 12A-1.060,
F.A.C., to collect the tax due on the rent or license fee from a tenant. For
purposes of this program, the term "landlord" will be used to refer to the
dealer.
(e) "Department" means the
Florida Department of Revenue.
(f)
"Eligible business" means a person occupying, using, or entitled to the use of
any property for which the rent or license fee is subject to taxation under
Section
RSA
212.031, F.S. For purposes of this program,
the term "tenant" will be used to refer to the eligible business.
(g) "Eligible nonprofit scholarship-funding
organization" or "organization" has the same meaning as provided in Section
RSA
1002.395 (2)(f), F.S.
(h) "Program" means the Florida Tax Credit
Scholarship Program for Commercial Rental Property under Section 212.099,
F.S.
(i) "State fiscal year" means
the annual period beginning July 1 through June 30 of the following
year.
(j) "Tax credit cap" means
the maximum annual tax credit amount the Department is authorized by law to
allocate.
(2)
Applications for allocations.
(a) To apply
for an allocation of the available program credits, a tenant must submit a
Florida Tax Credit Scholarship Program for Commercial Rental Property -
Application for a Credit Allocation (Form DR-117000, incorporated by reference
in Rule
RSA 12A-1.097,
F.A.C.) to the Department. The fastest and easiest way to apply for an
allocation is online at www.floridarevenue.com/taxes/sfo.
Tenants may also apply by submitting a paper application available on the
Department's website.
(b) Each
leased or licensed location for which an allocation is sought must be
separately listed in an application. A separate application to receive an
allocation is required for each organization the tenant intends to
support.
(c) An application may be
submitted to the Department for an allocation of funds for the state fiscal
year the application is submitted or for funds for the following state fiscal
year. A separate application is required for each state fiscal year for which
an allocation is sought.
(d) An
application may be submitted on the first business day of January of the
calendar year preceding the state fiscal year beginning on July 1 of that
calendar year. The application must be submitted on or before June 30 of the
state fiscal year for which the tenant is applying for an allocation. For
example, for a credit allocation for the 2020-2021 state fiscal year, tenants
may apply for a credit allocation beginning on January 1, 2020. The application
must be submitted on or before June 30, 2021.
(e) The Department will accept applications
until the tax credit cap is reached or until the end of the state fiscal year
identified in application for an allocation, whichever occurs first. The
Department will approve allocations on a first-come, first-served basis. When
funds are available, and the tenant is eligible to receive an allocation, a
letter indicating the amount of allocation approved will be provided to the
tenant.
(f) When the Department is
not able to approve an application, a letter explaining the reason for the
denial will be mailed to the tenant. The tenant may protest the denial pursuant
to Sections
RSA
120.569 and
RSA
120.57, F.S. The Department will reserve the
denied amount of the allocation for the tenant during the protest
period.
(3) Claiming the
Credit.
(a) After receiving an allocation but
before seeking a credit against tax due, the tenant must make a contribution
directly to the organization identified in the Florida Tax Credit Scholarship
Program for Commercial Rental Property - Application for a Credit Allocation
(Form DR-117000).
1. A tenant may make a
single contribution or series of contributions to the organization.
2. The total contributions may not exceed the
allocation amount approved by the Department.
3. All contributions must be made before the
end of the state fiscal year for which the allocation was approved.
4. Upon making each contribution, the
organization receiving a contribution under the program will issue a
certificate of contribution to the tenant.
5. The tenant must provide copies of the
approval letter issued by the Department and the certificate of contribution
issued by the organization to the landlord when claiming a credit against the
state tax due on the rent or license fee for the rental property.
(b) To claim the credit, the
landlord must file and pay electronically using Sales and Use Tax Return (Form
DR-15, incorporated by reference in Rule
RSA 12A-1.097,
F.A.C.). Landlords may not claim a credit on the shorter Sales and Use Tax
Return (Form DR-15EZ, incorporated by reference in Rule
RSA 12A-1.097,
F.A.C.) or on any paper tax return. A landlord authorized to file Form DR-15EZ,
must contact Taxpayer Services at 850-488-6800, Monday through Friday,
excluding holidays, to change the return type filed to Form DR-15 to claim a
tax credit under this program.
(c)
The amount of credit claimed on a tax return is limited to the amount of
contribution contained in the certificate of contribution issued by an
organization. A credit may only be taken against the state sales tax due under
Section
RSA
212.031, F.S., and is not allowed against any
discretionary sales surtax due under Sections
RSA
212.054 and 212.055, F.S.
(d) The total rent or license fee, the tax
that would otherwise be due, the surtax due, and the credit being claimed must
be separately reported on Form DR-15, Sales and Use Tax Return. The credit may
not be taken by netting the credit against the tax otherwise due on the
return.
(e) No credit will be
allowed when the tenant
1. fails to
contribute to the designated organization under the program;
2. claims the credit against tax due prior to
the date the contribution is made;
3. claims the credit against discretionary
sales surtax due; or
4. makes the
contribution outside the state fiscal year for which the allocation was
approved.
(f) A credit
may not be claimed on an amended return.
(g) Unclaimed credits are not eligible for
refund but may be carried forward up to 10 years. No application is necessary
to carry forward a credit.
(4) Transfer of Unused Allocations or
Credits.
(a)
1. A tenant may not convey, assign, or
transfer an allocation or a credit to another entity unless all assets of the
taxpayer are conveyed, assigned, or transferred in the same transaction and the
successor business continues the same lease with the same landlord.
2. Tenants must inform the Department of the
transfer of any unused allocation or credit by sending written notice to:
Florida Department of Revenue
Revenue Accounting
PO Box 6409
Tallahassee, FL 32314-6409
(b) When the Department determines the
requirements to transfer an allocation or a credit are met, a letter indicating
the amount of the approved allocation or credit will be provided to the tenant.
When the Department is not able to approve a transfer, a letter explaining the
reason for denial will be mailed to the tenant. The tenant may protest the
denial pursuant to Sections
RSA
120.569 and
RSA
120.57, F.S.
(c) The Department must approve the transfer
of the unused allocation or credit before the successor is eligible to claim a
credit.
(5) Change of
Landlord or Property.
(a) A tenant does not
lose the ability to use the remaining amount of a previously approved
allocation for which a credit has not been taken when
1. the landlord collecting the tax on the
property changes or the tenant moves to another property; and
2. the tenant continues to qualify for the
program following the change.
(b) The eligible business is required to
apply to the Department for a change to its allocation by submitting a Florida
Tax Credit Scholarship Program for Commercial Rental Property - Application to
Change a Credit Allocation (Form DR-117100, incorporated by reference in Rule
RSA 12A-1.097,
F.A.C.). The application must be received and approved by the Department before
a credit can be taken by the landlord on its sales tax return.
(6) Rescindment of Unused
Allocations.
(a) Tenants who have not made a
contribution to an organization under the program may rescind all or a portion
of an unused allocation. To rescind an unused allocation, the tenant must
submit a Florida Tax Credit Scholarship Program for Commercial Rental Property
- Application for Rescindment of a Credit Allocation (Form DR-117200,
incorporated by reference in Rule
RSA 12A-1.097,
F.A.C.). Applications must be received by the Department during the same state
fiscal year during which the allocation was approved. The fastest and easiest
way to to rescind an allocation is to use the online application at
www.floridarevenue.com/taxes/sfo.
Tenants may also apply by submitting a paper application available on the
Department's website.
(b) An
application for rescindment of the unused allocation will not be approved when
1. the tenant has made the contribution to an
organization under the program; or
2. the application was not submitted during
the same state fiscal year during which the allocation was approved.
(c) When the Department is not
able to approve an application, a letter explaining the reason for the denial
will be mailed to the tenant. The tenant may protest the denial pursuant to
Sections
RSA
120.569 and
RSA
120.57, F.S.
(d) When a tenant is eligible to rescind an
allocation, a letter indicating the amount of allocation rescinded will be
provided to the tenant.
(e) When
the approval of a rescindment allows the tax credit cap for a state fiscal year
to be reopened and available for allocation, the Department will notify each
organization that the tax credit cap is available for allocation.
(7) Reporting of contributions by
eligible nonprofit scholarship-funding organizations.
(a) Each organization is required to report
to the Department the contributions received under the program during each
calendar month using the Florida Tax Credit Scholarship Program for Commercial
Rental Property - Contributions Received by an Eligible Nonprofit
Scholarship-Funding Organization (Form DR-117300, incorporated by reference in
Rule
RSA 12A-1.097,
F.A.C.). The report is due to the Department on or before the 20th day of the
month following the month of collection. If the 20th day falls on a Saturday,
Sunday, or state or federal holiday, the report must be received on the first
business day following the 20th.
(b) Organizations may submit Form DR-117300
electronically or by submitting a paper form available at
www.floridarevenue.com/forms
in the sales and use tax section. When submitting electronically, the
organization must include all information required by Form DR-117300.
Notes
Rulemaking Authority RSA 212.099 (10), 213.06(1) FS. Law Implemented RSA 212.099 FS.
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