Could a retailer combine enterprise-zone locations on one county sales-tax return to use a jobs credit across the locations?

Plain-English summary

A retailer had a distribution center and retail store in the same Florida county and enterprise zone. The distribution center generated enterprise-zone jobs credits larger than the use tax on its own return, while the store reported enough sales tax to absorb the excess. The company asked to combine the locations under one county control reporting number.

Florida allowed the approach if the combined locations collectively qualified as an eligible business under section 212.096. The company had to include all of its places of business in that county under the county control number, and all included locations needed to satisfy the enterprise-zone location and job-growth requirements as a group.

On the approved county return, the credit could offset the combined sales and use tax due, but no more than the tax shown on that return. It could not be applied against another county control number.

The credit could not be claimed retroactively. The eligible business first had to file the required sworn enterprise-zone application and receive Department approval; credits began with the first return due afterward. County-control and consolidated account numbers were likewise not effective retroactively.

The retailer could later revoke county-control filing and return to separate returns for each location. Doing so would end its ability to spread one location's excess credit across the other locations' liability.

What this means for you

One county return can combine liabilities and credits

The county control number places all included locations on one return, allowing an otherwise stranded credit at a distribution center to offset tax generated by a retail store.

All county locations must be included

A dealer cannot select only the favorable enterprise-zone locations. Rule 12A-1.056 requires the county control return to contain all places of business in that county.

Eligibility is tested collectively

The combined business must be located in the enterprise zone and show that full-time jobs increased from 12 months earlier under the statutory test.

Approval starts the credit clock

The jobs credit begins with the first return due after approval. Amended returns cannot push the benefit into earlier, unapproved periods.

This is a historical 2008 enterprise-zone ruling

Confirm that the cited incentive and reporting structure remain available before relying on the procedure today.

Common questions

Q: Could the distribution center's excess credit offset the store's tax?
A: Yes, on one county control return if the combined locations met all credit requirements.

Q: Could the retailer amend earlier returns to claim the credit?
A: No. The credit started with the first return after Department approval.

Q: Could the credit offset tax in another county?
A: No. It was limited to the tax due under the applicable county control number.

Q: Could the retailer later switch back to separate returns?
A: Yes, but separate filing would prevent sharing the credit across locations.

Citations and references

• Fla. Stat. § 212.096 (enterprise-zone jobs credit and approval requirements)
• Fla. Stat. §§ 212.11(1)(e) and 212.18(3)(a) (multiple-location returns and registration)
• Fla. Stat. § 213.22 (Technical Assistance Advisements)
• Fla. Admin. Code r. 12A-1.056(1)(e)-(f) (county control and consolidated reporting)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 08A-022

Original ruling text

SUMMARY
QUESTION:

1. Can the Taxpayer apply enterprise zone jobs credits available under s. 212.096, F.S., from one
   location to another within the same enterprise zone by filing a single return using a county
   control reporting number for all places of business located within that county in lieu of separate
   returns for each place of business?
2. If the answer to 1. is yes, can the Taxpayer take credits for prior periods?
3. If a Taxpayer has elected to file a single return using a county control reporting number, may
   it choose at some future date to discontinue such filing and return to filing separate returns for
   each location within a county?
   ANSWER:
4. Yes. The Taxpayer may take enterprise zone job credits on a county control reporting
   number for multiple locations, as long as the locations collectively meet the requirements for the
   credit found in s. 212.096, F.S.
5. No. The Taxpayer may take enterprise zone job credits starting with the first return after
   Department approval.
6. Yes. However, filing a single return for each location will preclude Taxpayer from spreading
   available enterprise zone job credits across multiple locations

August 21, 2008

XXX

Re:

Technical Assistance Advisement 08A-022
Sales and Use Tax – Return Filing Requirements; Enterprise Zone Jobs Credit
Sections 212.096, 212.11, 212.18, F.S.
Rules 12A-1.056, F.A.C.

Technical Assistance Advisement 08A-022
Page 2

XXX
XXX
Your letter of November 1, 2006, requested a Technical Assistance Advisement concerning filing of
a consolidated sales and use tax return and use of the enterprise zone jobs credit against sales and
use tax. This response to your request constitutes a Technical Assistance Advisement under
Chapter 12-11, Florida Administrative Code, and is issued to you under the authority of s. 213.22,
F.S.
ISSUES

1. Can the Taxpayer apply enterprise zone jobs credits available under s. 212.096, F.S., from one
   location to another within the same enterprise zone by filing a single return using a county
   control reporting number for all places of business located within that county in lieu of separate
   returns for each place of business?
2. If the answer to 1. is yes, can the Taxpayer take credits for prior periods?
3. If a Taxpayer has elected to file a single return using a county control reporting number, may
   it choose at some future date to discontinue such filing and return to filing separate returns for
   each location within a county?
   FACTS
   Taxpayer acquires products which are shipped to its distribution centers prior to being distributed
   to its retail locations for sale. Taxpayer has opened a number of distribution centers to service its
   retail locations, one of which is located in an enterprise zone in Florida. Taxpayer also has a

retail store located in the same county and within the same enterprise zone as the distribution
center. Both the retail store and the distribution center are registered for sales and use tax and
file monthly sales and use tax returns.
The distribution center located in the enterprise zone claims the enterprise zone jobs credit under
the provisions of s. 212.096, F.S. However, the distribution center reports only use tax on its
sales and use tax returns, and the enterprise zone jobs credit generated by that location generally
exceeds the amount of use tax reported on its sales and use tax returns.
It has not been disclosed to the Department of Revenue whether Taxpayer’s retail store, located
in the same county and in the same enterprise zone as the distribution center, generates enterprise
zone jobs credits. However, the Department has been told that the sales tax reported on the retail

Technical Assistance Advisement 08A-022
Page 3

store’s sales and use tax returns exceeds the amount of enterprise zone jobs credit remaining
after the distribution center applies the credit to its own return. Therefore, Taxpayer wishes to
apply the provisions of s. 212.11, F.S., in order to file a single sales and use tax return for the
county in which the retail store and the distribution center are located, and to claim the enterprise
zone jobs credit against both the use tax liability of the distribution center, which generates the
enterprise zone jobs credit, and against the sales and use tax liability of the retail store.
Additionally, the letter from Taxpayer’s representative, dated June 20, 2007, states that if it is
determined that Taxpayer’s retail store may claim the enterprise zone jobs credit generated by
the distribution center, Taxpayer wishes to amend previously filed sales and use tax returns to
claim amounts of enterprise zone jobs credit in excess of the amounts previously claimed on
such returns.
LAW
Section 212.096, F.S., provides in part:
(1) For the purposes of the credit provided in this section:
(a) “Eligible business” means any sole proprietorship, firm, partnership,
corporation, bank, savings association, estate, trust, business trust, receiver,
syndicate, or other group or combination, or successor business, located in an
enterprise zone. The business must demonstrate to the department that, on the
date of application, the total number of full-time jobs defined under paragraph (d)
is greater than the total was 12 months prior to that date. An eligible business
does not include any business which has claimed the credit permitted under s.
220.181 for any new business employee first beginning employment with the
business after July 1, 1995. (e.s.)

(c) “New employee” means a person residing in an enterprise zone or a
participant in the welfare transition program who begins employment with an
eligible business after July 1, 1995, and who has not been previously employed
full time within the preceding 12 months by the eligible business, or a successor
eligible business, claiming the credit allowed by this section.
(d) “Job” means a full-time position, as consistent with terms used by the Agency
for Workforce Innovation and the United States Department of Labor for
purposes of unemployment compensation tax administration and employment
estimation resulting directly from a business operation in this state. . . .

Technical Assistance Advisement 08A-022
Page 4

(e) “New job has been created” means that, on the date of application, the total
number of full-time jobs is greater than the total was 12 months prior to that date,
as demonstrated to the department by a business located in the enterprise zone.
A person shall be deemed to be employed if the person performs duties in
connection with the operations of the business on a regular, full-time basis,
provided the person is performing such duties for an average of at least 36 hours
per week each month. The person must be performing such duties at a business
site located in the enterprise zone.
(2)(a) Upon an affirmative showing by an eligible business to the satisfaction of
the department that the requirements of this section have been met, the business
shall be allowed a credit against the tax remitted under this chapter. (e.s.)
(b) The credit shall be computed as 20 percent of the actual monthly wages paid
in this state to each new employee hired when a new job has been created, unless
the business is located within a rural enterprise zone pursuant to s. 290.004(6)
. . . . The credit shall be allowed for up to 24 consecutive months, beginning with
the first tax return due pursuant to s. 212.11 after approval by the department.
(e.s.)
(3) In order to claim this credit, an eligible business must file under oath with the
governing body or enterprise zone development agency having jurisdiction over
the enterprise zone where the business is located, as applicable, a statement which
includes:
(a) For each new employee for whom this credit is claimed, the employee’s name
and place of residence, including the identifying number assigned pursuant to s.
290.0065 to the enterprise zone in which the employee resides if the new
employee is a person residing in an enterprise zone . . . .
(b) If applicable, the name and address of each permanent employee of the
business, including, for each employee who is a resident of an enterprise zone, the
identifying number assigned pursuant to s. 290.0065 to the enterprise zone in
which the employee resides.
(c) The name and address of the eligible business.
(d) The starting salary or hourly wages paid to the new employee.

Technical Assistance Advisement 08A-022
Page 5

(e) Demonstration to the department that, on the date of application, the total
number of full-time jobs defined under paragraph (1)(d) is greater than the total
was 12 months prior to that date.
(f) The identifying number assigned pursuant to s. 290.0065 to the enterprise
zone in which the business is located.

(4) Within 10 working days after receipt of a completed application for a credit
authorized in this section, the department shall inform the business that the
application has been approved. The credit may be taken on the first return due
after receipt of approval from the department. (e.s)

(8) In the event an eligible business has a credit larger than the amount owed the
state on the tax return for the time period in which the credit is claimed, the
amount of the credit for that time period shall be the amount owed the state on
that tax return. (e.s.)

Section 212.18(3)(a), F.S., provides in part:
Every person desiring to engage in or conduct business in this state as a dealer . . .
must file with the department an application for a certificate of registration for
each place of business . . . . (e.s.)
Section 212.11(1)(e), F.S., states in part:
. . . Any dealer who operates two or more places of business for which returns are
required to be filed with the department and maintains records for such places of
business in a central office or place shall have the privilege on each reporting date
of filing a consolidated return for all such places of business in lieu of separate
returns for each such place of business; however, such consolidated returns must
clearly indicate the amounts collected within each county of the state. . . . (e.s.)
Rule 12A-1.056, F.A.C., provides in pertinent part:
(1)(e) Any dealer who operates two or more places of business in a single county
for which returns are required to be filed with the Department may file a single
return using a county control reporting number for all places of business located
within a single county in lieu of separate returns for each place of business. The
dealer may also use this method to file returns in more than one county. A dealer
who wishes to report the amounts collected within each county in a single return
may obtain a county control reporting number for each county in which returns

Technical Assistance Advisement 08A-022
Page 6

are required to be filed by submitting a written request to the Florida Department
of Revenue, Return Reconciliation, Building F-3, 5050 West Tennessee Street,
Tallahassee, Florida 32399-0100. The written request must contain:

1. The name of the business;
2. The business mailing address;
3. Each county in which the dealer will be reporting using a county control
   reporting number; and
4. A list, by county, of each dealer’s certificate of registration number. (e.s.)
   (f) Any dealer who operates two or more places of business for which returns are
   required to be filed with the Department and maintains records for such places of
   business in a central office or place may file a consolidated return for all places of
   business in lieu of separate returns for each place of business. The consolidated
   return must clearly indicate the amounts collected within each county. An
   Application for Sales and Use Tax Consolidated Filing Number (Form DR1CON, incorporated by reference in Rule 12A-1.097, F.A.C.) is provided for
   qualifying dealers who wish to file consolidated returns. The Department will
   issue a consolidated account number to qualified dealers.
   DISCUSSION
   Section 212.096, F.S., provides for a credit against sales and use tax to eligible businesses located in
   enterprise zones that employ enterprise zone residents in their business operations, when all the
   requirements of that section have been met. Once the requirements have been met and an eligible
   business is approved for authorization to take the credit, the eligible business is permitted to take the
   credit beginning with the first tax return due pursuant to s. 212.11, F.S. The language of s. 212.096,
   F.S., ties the privilege of the credit to each return filed by the company.
   Generally, a separate sales and use tax return must be filed for each place of business. However,
   s. 212.11(1)(e), F.S., and Rule 12A-1.056(1)(e), F.A.C., provide that dealers who operate two or
   more places of business in a single county for which returns are required to be filed may file a
   single return for all places of business within a single county under a county control reporting
   number, rather than a separate return for each place of business in the county. Thus, Taxpayer
   may apply for a county control reporting number in order to file a single return for all places of
   business within a single county, including the distribution center and retail store, both of which
   are located in the same county. Allowing the Taxpayer to file a single return for all locations in a
   single county may allow the credit to be applied in the way the Taxpayer requests. Note,
   however, that Rule 12A-1.056(1)(e), F.A.C., requires that when business uses a county control
   reporting number it must contain “all places of business located within a single county.”
   Therefore, if the Taxpayer wishes to combine locations under a county control reporting number,
   it must combine all locations in that county.

Technical Assistance Advisement 08A-022
Page 7

Moreover, to apply an enterprise zone jobs credit across a single county control reporting
number return, each location under that control reporting number must collectively be an
“eligible business” and otherwise meet the requirements for obtaining the enterprise zone jobs
credit. Section 212.096(2)(a), F.S., requires the affirmative showing of an “eligible business”
before the credit may be taken on the return. Section 212.096(1)(a), F.S., sets forth the elements
required to be an “eligible business:”
1.

any sole proprietorship, firm, partnership, corporation, bank, savings association,
estate, trust, business trust, receiver, syndicate, or other group or combination, or
successor business,
located in an enterprise zone, and
on the date of application, the total number of full-time jobs is greater than the total
was 12 months prior to that date.

2.
3.

Here, the Taxpayer’s distribution center and retail store are part of the same corporation and
located within the same enterprise zone. Assuming no other locations within the county that are
not located within the enterprise zone, the first two elements are met. However, it is unclear
whether Taxpayer’s locations in this county would collectively meet the third requirement of an
“eligible business.”
If these three elements are met, Taxpayer would be permitted to effectively distribute the credit
between the retail store and distribution center. In the event the credit is larger than the amount
due under the county control reporting number, the amount of the credit shall equal the amount
owed the state on that tax return. See s. 212.096(8), F.S. The credit is not permitted to be taken
against sales tax reported under any other county control reporting number.
In addition to the county control reporting number, Taxpayer may request to file each county
control reporting number on a consolidated basis by applying for a consolidated number. (Please
see Rule 12A-1.056, F.A.C., for information about obtaining the country control reporting
number and/or consolidated number.) Consolidated returns must clearly indicate the amounts
collected within each county. Please be advised that country control reporting numbers and
consolidated filing numbers are not made effective retroactively.
With respect to whether Taxpayer may take credits for prior periods, the Department refers to the
prerequisites contained in s. 212.096, F.S., and Rule 12A-1.014, F.A.C. These are:
1.
2.

The Taxpayer must be an “eligible business” as discussed above.
The Taxpayer must file under oath with the governing body or enterprise zone
development agency having jurisdiction over the enterprise zone where the
business is located the statement described in s. 212.096(3), F.S., and meet all of
the requirements contained in that subsection.

Technical Assistance Advisement 08A-022
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3.

The credit may be taken on the first return due after receipt of approval from the
Department.

The statute does not allow an eligible business to take the credit prior to filing the statement
described in s. 212.096(3), F.S., and subsequent approval from the Department. To receive
Department approval, the “eligible business” filing under the county control reporting number
must comply with the requirements of s. 212.096, F.S., and Rule 12A-1.107(1), F.A.C.
Therefore, the Taxpayer may not take credits on periods prior to filing the statement described in
s. 212.096(3), F.S., and receiving the Department’s approval.
Finally, the choice to file a consolidated return using a county control number pursuant to
s. 212.11(1)(e), F.S., and Rule 12A-1.056(1)(e), F.S., is revocable. Therefore, if a taxpayer has
elected to file a single return using a county control reporting number, it may choose at some
future date to discontinue such filing and return to filing separate returns for each location within
a county.
CONCLUSION

1. Can the Taxpayer apply enterprise zone jobs credits available under s. 212.096, F.S., from one
   location to another within the same enterprise zone by filing a single return using a county
   control reporting number for all places of business located within that county in lieu of separate
   returns for each place of business?
   Yes. The Taxpayer may take enterprise zone job credits on a county control reporting number
   for multiple locations, as long as the locations collectively meet the requirements for the credit
   found in s. 212.096, F.S.
2. If the answer to 1. is yes, can the Taxpayer take credits for prior periods?
   No. The Taxpayer may take enterprise zone job credits starting with the first return after
   Department approval.
3. If a Taxpayer has elected to file a single return using a county control reporting number, may
   it choose at some future date to discontinue such filing and return to filing separate returns for
   each location within a county?
   Yes. However, filing a single return for each location will preclude Taxpayer from spreading
   available enterprise zone job credits across multiple locations.
   This response constitutes a Technical Assistance Advisement under s. 213.22, F.S., which is
   binding on the Department only under the facts and circumstances described in the request for this
   advice as specified in s. 213.22, F.S. Our response is based on those facts and the specific situation

Technical Assistance Advisement 08A-022
Page 9

summarized above. You are advised that subsequent statutory or administrative rule changes or
judicial interpretations of the statutes or rules upon which this advice is based may subject similar
future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions
of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort
to protect confidentiality, we request you provide the undersigned with an edited copy of your
request for Technical Assistance Advisement, the backup material and this response, deleting
names, addresses and any other details which might lead to identification of the taxpayer. Your
response should be received by the Department within 15 days of the date of this letter.
Sincerely,

H. French Brown, IV
Attorney
Technical Assistance and Dispute Resolution

SCP/HM/HFB/TKB
Record ID: 26218/29125