REVENUE ESTIMATING CONFERENCE

Tax: Communication Services Tax Issue: Tax Rate Reduction Bill Number(s): HB 33A Senate Amendment REVENUE ESTIMATING CONFERENCE Entire Bill X Partial Bill: Sponsor(s): Sen. Hukill Month/Year Impact Begins: September 1, 2015 Date of Analysis: June 11, 2015 Section 1: Narrative a. Current Law: Section 202.12, F.S. states that the Total Direct-to-Home (DTH) Satellite Communication Services Tax is set to 10.8%. The non-satellite CST is set to 6.65%. Section 202.18(1) describes how the taxes imposed on non-satellite CST under 202.12(1)(a) are to be distributed. The portion which constitutes gross receipts taxes shall be deposited as provided by law and in accordance with s. 9, Art. XII of the State Constitution. The remaining portion shall be distributed according to s. 212.20(6). Section 202.18(2) describes how the taxes imposed on direct to home satellite service under 202.12(1)(b) are to be divided. The portion that constitutes gross receipts tax shall be removed and deposited the same as the rest of Gross Receipts Tax on Communications Services. Under s. 202.18(2)(b), the rest of the tax will be divided with 63% distributing via Section 212.20(6). The remaining 37% is further broken down with 70% allocated via Sections 218.61 and 218.65, and 30% allocated via Section 218.67. Section 212.20(6)(d), F.S. describes the distribution of proceeds remitted pursuant under chapter 212 and ss. 202.18(1)(b) and (2)(b) and 203.01(1)(a)3. Subparagraph 2 states, after the distribution under subparagraph 1., 8.8854% of the amount remitted by a sales tax dealer within a county participating pursuant to s. 218.61 to be transferred into the Local Government Half-cent Sales Tax Clearing Trust Fund,. Subparagraph 3 allocates 0.0965% to be transferred to the Local Government Half-cent Sales Tax Clearing Trust Fund and distributed pursuant to s. 218.65, after distribution under subparagraph 1 and 2. Subparagraph 4 states, after the distributions under subparagraphs 1., 2., and 3., 2.0603% of the available proceeds shall be transferred monthly to the Revenue Sharing Trust Fund for Counties pursuant to s. 218.215. Subparagraph 5 states, after the distributions under subparagraphs 1., 2., and 3., 1.3517% of the available proceeds shall be transferred monthly to the Revenue Sharing Trust Fund for Municipalities pursuant to s. 218.215. b. Proposed Change: Proposed language decreases the rate of Direct to Home (DTH) Satellite Communication Services Tax to 9.07%, and nonsatellite CST to 4.92% as of July 1, 2015. The proposed language changes the percent of the tax imposed on direct to homes satellite service that is distributed via section 212.20(6) from 63% to 55.9% as of September 1, 2015. Furthermore, the proposed language amends s. 212.20(6)(d). Subparagraph 2 is amended to allocate 8.9744% of the amount remitted by a sales tax dealer within a county participating pursuant to s. 218.61 to be transferred into the Local Government Half-cent Sales Tax Clearing Trust Fund as September 1, 2015,. Subparagraph 3 is amended to allocate 0.0966% of the available proceeds to the Local Government Half-cent Sales Tax Clearing Trust Fund and distributed pursuant to s. 218.65 Emergency Distribution as of September 1, 2015. Subparagraph 4 is amended to allocate 2.0810% of the available proceeds monthly to the Revenue Sharing Trust Fund for Counties pursuant to s. 218.215 as of September 1, 2015. Subparagraph 5 is amended to allocate 1.3653% of the available proceeds monthly to the Revenue Sharing Trust Fund for Municipalities pursuant to s. 218.215 as of September 1, 2015. Section 2: Description of Data and Sources Revenue Estimating Conference Gross Receipts Tax and Communications Services Tax (March 2015) General Revenue Workpapers (March 2015) Section 3: Methodology (Include Assumptions and Attach Details) The impact of the rate change for the non satellite CST providers is presented as an impact to State Sales Tax Transfer from CST. The impact to direct to home satellite is presented in two parts because of the way the direct to home satellite remittances are divided. First, the total change from the current DTH rate to the proposed one is shown. Second, the impact is shown in its component parts comparing the current provisions of section 202.18, F.S. to the changes made by this bill. Next, the impact of the impact on the distributions under 212.20(6)(d) is estimated using the estimated Sales Tax Collections from REC March 2015. First the estimated collections from transfers from CST were subtracted from the total sales tax 133

Tax: Communication Services Tax Issue: Tax Rate Reduction Bill Number(s): HB 33A Senate Amendment REVENUE ESTIMATING CONFERENCE collections in order to present the impact from the CST rate reduction and distribution changes separately from the impact of the distribution changes on all other collections. Using the current breakdown the distributions from both CST at the current rate and other collections are calculated separately. To estimate the distributions from CST, the collections that were estimated from non-satellite CST at t the new tax rate and the appropriate percent of the collections estimated for DTH satellite at the new rate were totaled to find the estimated collections from CST that would be distributed under 212.20(6)(d). The proposed distribution percentages were used to estimate the distributions to the various local revenue sharing programs. The distributions from Non-CST collections were calculated separately using the proposed distribution percentages. The estimates were then summed to find the estimated total distributions under the new breakdown and new rates on CST and the difference was taken from the estimated current distributions to find the impact. The effective date is upon becoming law and will apply to taxable transactions included on bills for services dated on or after July 1, 2015. The cash values are as follows: 2015-16 11/12 th of the recurring 2015-16 impact Section 4: Proposed Fiscal Impact State Sales Tax Transfer from CST High Middle Low 2015-16 (184.4 M) (201.6 M) 2016-17 (204.2 M) (204.2 M) 2017-18 (203.2 M) (203.2 M) 2018-19 (203.6 M) (203.6 M) 2019-20 (204.4 M) (204.4 M) Direct-to-Home Satellite High Middle Low 2015-16 (22.5 M) (24.5 M) 2016-17 (24.9 M) (24.9 M) 2017-18 (25.4 M) (25.4 M) 2018-19 (25.8 M) (25.8 M) 2019-20 (26.2 M) (26.2 M) Total High Middle Low 2015-16 (207.3 M) (226.1 M) 2016-17 (229.2 M) (229.2 M) 2017-18 (228.6 M) (228.6 M) 2018-19 (229.4 M) (229.4 M) 2019-20 (230.7 M) (230.7 M) List of affected Trust Funds: Sales and Use Tax Group, CST Group Section 5: Consensus Estimate (Adopted: 06/12/2015): The Conference adopted the proposed estimate. GR Trust Local/Other Total Cash Recurring 2015-16 (207.3) (226.1) 0.0 0.0 0.0 0.0 (207.3) (226.1) 2016-17 (230.2) (230.2) 0.0 0.0 1.1 1.1 (229.1) (229.1) 2017-18 (231.1) (231.1) 0.0 0.0 2.6 2.6 (228.5) (228.5) 2018-19 (233.1) (233.1) 0.0 0.0 3.7 3.7 (229.4) (229.4) 2019-20 (235.5) (235.5) 0.0 0.0 4.9 4.9 (230.6) (230.6) 134

CST Tax Rate Reduction 0f 1.73% 1 2 3 4 56 7 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 A B C D E F G Component breakdown Current Rates Direct-to-Home (DTH) Satellite 10.80% year Additional State Tax on DTH Satellite Implied Base for Additional State Tax on DTH Satellite (B9/4%) DTH component of State Sales Tax Transfer from CST (C9*6.8%) Total DTH Satellite Equal to tax at 10.8% rate 2015-16 56.65 1,416.3 96.31 153.0 2016-17 57.66 1,441.5 98.02 155.7 2017-18 58.76 1,469.0 99.89 158.7 2018-19 59.67 1,491.8 101.44 161.1 2019-20 60.69 1,517.3 103.17 163.9 State Sales Tax Transfer from CST 6.65% year State Sales Tax Transfer from CST Total (M) Less DTH component Non-satellite Component of State Sales Tax Tansfer from CST Base (B19/6.65%) 2015-16 775.0 11,654.1 2016-17 785.0 11,804.4 2017-18 781.1 11,746.5 2018-19 782.6 11,767.7 2019-20 785.9 11,817.6 June 12 Impact Conference 135

CST Tax Rate Reduction 0f 1.73% 25 26 27 28 29 30 32 33 34 35 36 37 38 39 40 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 A B C D E F G New rates DTH Satellite 9.07% year Implied Base for Additional State Tax on DTH Satellite (B8/4%) Tax at new rate (B32*C28) Change from Current Tax (C32- E9) 2015-16 1,416.3 128.5 (24.5) 2016-17 1,441.5 130.7 (24.9) 2017-18 1,469.0 133.2 (25.4). 2018-19 1,491.8 135.3 (25.8) 2019-20 1,517.3 137.6 (26.2) State Sales Tax Transfer from CST 4.92% year Non-satellite Component of State Sales Tax Tansfer from CST Base (B19/6.65%) Tax at new rate (B42*C38) Change from Current Tax (C42- B19) Total Change (D42+D32) 2015-16 11,654.1 573.4 (201.6) (226.1) 2016-17 11,804.4 580.8 (204.2) (229.2) 2017-18 11,746.5 577.9 (203.2) (228.6) 2018-19 11,767.7 579.0 (203.6) (229.4) 2019-20 11,817.6 581.4 (204.4) (230.7) Satellite Distribution 55.9% year Total Collections at New DTH Rate 202.18(2) via 212.20(6) [(B19*C16)] 202.18(2)(c) [(B19-C19)*0.7] 202.18(2)(c) Fiscally Contrained) [(B19- C19)*0.3] 2014-15 125.62 70.22 38.78 16.62 2015-16 128.45 71.81 39.65 16.99 2016-17 130.74 73.09 40.36 17.30 2017-18 133.24 74.48 41.13 17.63 2018-19 135.30 75.63 41.77 17.90 2019-20 137.61 76.93 42.48 18.21 Net Change in Distributions year Total collections 202.18(2) via 212.20(6) 202.18(2)(c) 202.18(2)(c) (Fiscally Contrained) 2014-15 (23.96) (24.01) 0.04 0.02 2015-16 (24.50) (24.56) 0.04 0.02 2016-17 (24.94) (24.99) 0.04 0.02 2017-18 (25.41) (25.47) 0.04 0.02 2018-19 (25.81) (25.87) 0.04 0.02 2019-20 (26.25) (26.31) 0.04 0.02 June 12 Impact Conference 136

CST Tax Rate Reduction 0f 1.73% 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Sales Tax Distributions year A B C D E F G Total State Sales Tax Collections Local Gov. half cent 212.20(6)(d)2. Local Gov. half cent emergency distribution 212.20(6)(d)3. County Revenue Sharing 212.20(6)(d)3. Muncipal Revenue Sharing 212.20(6)(d)4. 2015-16 (226.1) - - - - (226.1) 2016-17 (229.1) 0.8 0.0 0.2 0.1 (230.2) 2017-18 (228.6) 1.9 0.0 0.4 0.3 (231.1) 2018-19 (229.4) 2.7 0.0 0.6 0.4 (233.1) 2019-20 (230.6) 3.6 0.0 0.8 0.5 (235.5) Satellite Percentage split to Sales Tax 55.9% Half Cent Distribution Percentage 8.9744% Emergency Distribution Percentage 0.0966% County Revenue Sharing Percentage 2.0810% Municipal Revenue Sharing Percentage 1.3653% Discrepency 2015-16 0.0 2016-17 0.0 2017-18 0.0 2018-19 (0.0) 2019-20 0.0 GR Impact June 12 Impact Conference 137

CST Tax Rate Reduction 0f 1.73% 12 3 A B C D E F G H Impacts to Distributions due to reduction of DTH Tax Rate Current breakdown 4 6 7 8 9 10 11 12 13 14 16 17 18 19 20 21 22 year Total Collections at 10.8% 202.18(2) via 212.20(6) (63%) 202.18(2)(c) (25.9%) 202.18(2)(c) (11.1% Fiscally Contrained) Total Distribution to Locals 2015-16 152.96 96.36 39.62 16.98 56.59 2016-17 155.68 98.08 40.32 17.28 57.60 2017-18 158.65 99.95 41.09 17.61 58.70 2018-19 161.11 101.50 41.73 17.88 59.61 2019-20 163.86 103.23 42.44 18.19 60.63 year Total Collections at New DTH Rate New Rate Breakdown 55.9% 202.18(2) via 212.20(6) [(B19*C16)] 202.18(2)(c) [(B19-C19)*0.7] 202.18(2)(c) Fiscally Contrained) [(B19-C19)*0.3] 2015-16 128.45 71.81 39.65 16.99 2016-17 130.74 73.09 40.36 17.30 2017-18 133.24 74.48 41.13 17.63 2018-19 135.30 75.63 41.77 17.90 2019-20 137.61 76.93 42.48 18.21 Net Change in Distributions 23 26 27 28 29 30 31 year Total collections 202.18(2) via 212.20(6) 202.18(2)(c) 202.18(2)(c) (Fiscally Contrained) 2015-16 (24.5) (24.56) 0.04 0.02 2015-16 Cash (16.3) (16.37) 0.03 0.01 2016-17 (24.9) (24.99) 0.04 0.02 2017-18 (25.4) (25.47) 0.04 0.02 2018-19 (25.8) (25.87) 0.04 0.02 2019-20 (26.2) (26.31) 0.04 0.02 June 12 Impact Conference 138

CST Tax Rate Reduction 0f 1.73% 32 33 34 35 36 37 38 39 40 41 A B C D E F G H Impacts to Distributions due to reduction of CST Tax Rate and Distribution year Total State Sales Tax Collections CST Portion Current Rate and Breakdown After 5.2% distributed to General Revenue 212.20(6)(d)1. 8.8854% 0.0956% 2.0603% 1.3517% Local Gov. half cent emergency County Revenue distribution Sharing 212.20(6)(d)3. 212.20(6)(d)3. Local Gov. half cent 212.20(6)(d)2. Muncipal Revenue Sharing 212.20(6)(d)4. 2015-16 24,821.10 871.30 23,530.40 1,920.0 20.8 445.8 292.5 2016-17 26,129.30 883.00 24,770.58 2,021.2 21.9 469.3 307.9 2017-18 27,514.30 881.00 26,083.56 2,128.1 23.0 494.2 324.2 2018-19 28,712.80 884.00 27,219.73 2,220.6 24.0 515.6 338.3 2019-20 29,958.20 889.00 28,400.37 2,316.8 25.0 538.0 353.0 42 43 44 Transfers from CST Current Rate and Breakdown 8.8854% 0.0956% 2.0603% 1.3517% 45 46 47 48 49 50 year CST State 6.65% After 5.2% distributed to General Revenue 212.20(6)(d)1. Local Gov. half cent 212.20(6)(d)2. Local Gov. half cent emergency distribution 212.20(6)(d)3. County Revenue Sharing 212.20(6)(d)3. Muncipal Revenue Sharing 212.20(6)(d)4. 2015-16 871.30 825.99 73.4 0.7 15.5 10.2 2016-17 883.00 837.08 74.4 0.7 15.7 10.3 2017-18 881.00 835.19 74.2 0.7 15.7 10.3 2018-19 884.00 838.03 74.5 0.7 15.7 10.3 2019-20 889.00 842.77 74.9 0.7 15.8 10.4 51 52 53 All Other Collections Current Breakdown 8.8854% 0.0956% 2.0603% 1.3517% 54 55 56 57 58 59 year Total Tax Collections - Transfers from CST After 5.2% distributed to General Revenue 212.20(6)(d)1. Local Gov. half cent 212.20(6)(d)2. Local Gov. half cent emergency distribution 212.20(6)(d)3. County Revenue Sharing 212.20(6)(d)3. Muncipal Revenue Sharing 212.20(6)(d)4. in-state out-ofstate factor 2015-16 23,949.80 22,704.41 1,846.6 19.9 429.3 281.7 91.54% 2016-17 25,246.30 23,933.49 1,946.8 21.0 452.6 296.9 91.55% 2017-18 26,633.30 25,248.37 2,053.9 22.2 477.4 313.2 91.55% 2018-19 27,828.80 26,381.70 2,146.1 23.2 498.8 327.3 91.55% 2019-20 29,069.20 27,557.60 2,241.9 24.2 521.1 341.9 91.56% June 12 Impact Conference 139

CST Tax Rate Reduction 0f 1.73% A B C D E F G H 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 Check to GR Package Half Cent Emergency County Municipal Sum of Emergency, County and Municipal Difference from GR Package 1,920.00 20.66 444.81 291.83 757.30 1.8 2,021.20 21.75 468.26 307.21 797.22 1.9 2,128.10 22.90 493.08 323.50 839.48 1.9 2,220.60 23.90 514.56 337.59 876.05 1.8 2,316.80 24.94 536.89 352.23 914.06 1.9 Rate Calculation Half Cent 8.9744% 1,920.00 Emergency 0.0966% County 2.0810% Municipal 1.3653% June 12 Impact Conference 140

CST Tax Rate Reduction 0f 1.73% 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 A B C D E F G H Half Cent Current Law Distribution - CST Numerator Transfer 73.4 Current Law Distribution - Sales Plus Tax 1,846.6 Total Numerator 1,920.0 Denominator New Half Cent Base 22,704.4 Sales less 5.2% Multiplied by In state Portion 91.5350% 20,782.5 Plus New CST base 611.6 CST Sales Trasfer Less 5.2% Total Denominator 21,394.13 New Half Cent Percentage 8.9744% Emergency Distribution Numerator Plus Current Law Sales Tax Distribution 19.9 Current Law CST Distribution 0.7 Total Numerator 20.66 Denominator New Half Cent Base 22,704.41 New Half Cent Less Distribution -Sales 1,865.1 20,839.30 Plus New CST base 611.6 New Half Cent less Distribution -CST 54.9 556.75 Total Denominator 21,396.05 New Emergency Distribution Percentage 0.09656% June 12 Impact Conference 141

CST Tax Rate Reduction 0f 1.73% A B C D E F G H 103 County Revenue Sharing Current Law Sales Tax 104 Numerator Distribution Current Law CST 429.3 105 Distribution 15.5 106 107 108 Denominator 109 110 111 112 113 114 115 116 117 118 119 Numerator 120 121 122 123 124 125 Less Plus Less Total Numerator 444.8 New Emergency Distribution Base - Sales 20,839.30 New Emergency Distribution - Sales 20.1 20,819.18 New Emergency Distribution Base - CST 556.75 New Emergency Distribution - CST 0.5 556.21 Total Denominator 21,375.39 New Calculated County Revenue Sharing Percentage 2.0810% Municipal Revenue Sharing Denominator Current Law Sales Tax Distribution 281.7 Current Law CST Distribution 10.2 Total Numerator 291.8 Same as County Revenue Sharing 21,375.39 New Municipal Revenue Sharing Percentage 1.3653% June 12 Impact Conference 142

CST Tax Rate Reduction 0f 1.73% 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 year A B C D E F G H New CST State and New DTH Sales Tax Transfer at New DTH rate Transfers from CST New Rate and New Breakdown 8.9744% 0.0966% 2.0810% 1.3653% Local Gov. half cent After 5.2% distrbutied emergency Muncipal Revenue to General Revenue Local Gov. half cent distributionn County Revenue Sharing 212.20(6)(d)1. 212.20(6)(d)2. 212.20(6)(d)3. Sharing 212.20(6)(d)3. 212.20(6)(d)4. 2015-16 645.19 611.64 54.9 0.5 11.6 7.6 2016-17 653.86 619.86 55.6 0.5 11.7 7.7 2017-18 652.41 618.48 55.5 0.5 11.7 7.7 2018-19 654.60 620.56 55.7 0.5 11.7 7.7 2019-20 658.35 624.12 56.0 0.5 11.8 7.7 year Other Collections After 5.2% distrbutied to General Revenue 212.20(6)(d)1. New Breakdown of Other Collections 8.9744% 0.0966% 2.0810% 1.3653% Local Gov. half cent 212.20(6)(d)2. Local Gov. half cent emergency distribution 212.20(6)(d)3. County Revenue Sharing 212.20(6)(d)3. Muncipal Revenue Sharing 212.20(6)(d)4. in-state out-ofstate factor 2015-16 23,949.80 22,704.41 1,865.1 20.1 433.2 284.2 91.54% 2016-17 25,246.30 23,933.49 1,966.3 21.2 456.7 299.6 91.55% 2017-18 26,633.30 25,248.37 2,074.5 22.4 481.8 316.1 91.55% 2018-19 27,828.80 26,381.70 2,167.6 23.4 503.4 330.3 91.55% 2019-20 29,069.20 27,557.60 2,264.4 24.4 525.8 345.0 91.56% 145 146 Net Change in Distributions 147 148 149 150 151 152 153 154 year Total State Sales Tax Collections Local Gov. half cent 212.20(6)(d)2. Local Gov. half cent emergency distribution 212.20(6)(d)3. County Revenue Sharing 212.20(6)(d)3. Muncipal Revenue Sharing 212.20(6)(d)4. 2015-16 (226.11) - - - - 2016-17 (229.14) 0.76 0.01 0.16 0.10 2017-18 (228.59) 1.87 0.02 0.40 0.26 2018-19 (229.40) 2.73 0.03 0.58 0.38 2019-20 (230.65) 3.59 0.04 0.76 0.50 June 12 Impact Conference 143

CST Tax Rate Reduction 0f 1.73% A B C D E F G H 155 Total Impact 156 High Middle Low 157 159 2015-16 160 2016-17 161 2017-18 162 2018-19 163 2019-20 164 (207.3 M) (229.2 M) (228.6 M) (229.4 M) (230.7 M) (226.1 M) (229.2 M) (228.6 M) (229.4 M) (230.7 M) State Sales Tax Transfer from CST(M) 165 166 High Middle Low 167 169 2015-16 170 2016-17 171 2017-18 172 2018-19 173 2019-20 174 (184.8 M) (204.2 M) (203.2 M) (203.6 M) (204.4 M) (201.6 M) (204.2 M) (203.2 M) (203.6 M) (204.4 M) Direct-to-Home Satellite at 8.1% 175 176 High Middle Low 177 179 2015-16 180 2016-17 181 2017-18 182 2018-19 183 2019-20 (22.5 M) (24.9 M) (25.4 M) (25.8 M) (26.2 M) (24.5 M) (24.9 M) (25.4 M) (25.8 M) (26.2 M) June 12 Impact Conference 144

REVENUE ESTIMATING CONFERENCE Tax: Corporate Income Tax / Sales and Use Tax Issue: Community Contribution Tax Credits Bill Number(s): HB 33A Senate Amendment Entire Bill X Partial Bill: Sponsor(s): Senator Hukill / Senator Benacquisto Month/Year Impact Begins: July 1, 2015 Date of Analysis: 6/11/2015 Section 1: Narrative a. Current Law: The credit shall be computed as 50 percent of the persons approved annual community contribution. Set to expire June 30, 2016 and any accrued credit carryover that is unused on that date may be used until the expiration of the 3-year carryover period for such credit. b. Proposed Change: The total amount of tax credits which may be granted for all programs under this paragraph, s. 220.183, and s. 624.5105 is 18.4m in fiscal year 2015-2016, 21.4m in fiscal year 2016-2017, and 21.4 million in fiscal year 2017-18 for projects that provide housing for persons with special needs or homeownership opportunities for low-income households or very-low-income households as those terms are defined in s. 420.9071 and 3.5m annually for all other projects. Extends the community contributions tax credits to June 30, 2018. Section 2: Description of Data and Sources Section 3: Methodology (Include Assumptions and Attach Details) It is assumed that fiscal year maximum will be reached. Section 4: Proposed Fiscal Impact High Middle Low 2015-16 2016-17 (24.9m) 2017-18 (24.9m) 2018-19 2019-20 List of affected Trust Funds: General Revenue, General Sales Grouping Section 5: Consensus Estimate (Adopted: 06/12/2015): The Conference adopted the proposed estimate with a split of 85% going to Sales and Use Tax and 15% going to Corporate Income Tax. GR Trust Revenue Sharing Local Half Cent Cash Recurring 2015-16 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2016-17 (22.5) 0.0 (Insignificant) 0.0 (0.6) 0.0 (1.8) 0.0 2017-18 (22.5) 0.0 (Insignificant) 0.0 (0.6) 0.0 (1.8) 0.0 2018-19 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2019-20 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Local Option Total Local Total 2015-16 0.0 0.0 0.0 0.0 0.0 0.0 2016-17 0.0 0.0 (2.4) 0.0 (24.9) 0.0 2017-18 0.0 0.0 (2.4) 0.0 (24.9) 0.0 2018-19 0.0 0.0 0.0 0.0 0.0 0.0 2019-20 0.0 0.0 0.0 0.0 0.0 0.0 145

REVENUE ESTIMATING CONFERENCE Tax: Sales and Use/ Corporate/ Ad Valorem Issue: Enterprise Zone Benefits/ 3 year limited extension Bill Number(s): HB 33A Senate Amendment Entire Bill Partial Bill: Sponsor(s): Sen Hukill/Sen Benacquisto Month/Year Impact Begins: January 2016 Date of Analysis: 6/11/2015 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) The incentives described in subsection (2) are to be treated as if they had not expired on December 31, 2015. (6) 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 2013-14. 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. 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 146

REVENUE ESTIMATING CONFERENCE Tax: Sales and Use/ Corporate/ Ad Valorem Issue: Enterprise Zone Benefits/ 3 year limited extension Bill Number(s): HB 33A Senate Amendment 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. Section 4: Proposed Fiscal Impact Sales and Use Tax High Middle Low 2015-16 (6.1 M) (3.4M) (1.7 M) 2016-17 (8.8 M) (5.2 M) (2.4 M) 2017-18 (8.5 M) (4.9 M) (2.3 M) 2018-19 (4.6 M) (2.7 M) (1.4 M) 2019-20 (1.1 M) (0.7 M) (0.4 M) Corporate Income tax High Middle Low 2015-16 (1.1 M) (0.7 M) (0.3 M) 2016-17 (2.7 M) (1.6 M) (0.6 M) 2017-18 (4.0 M) (2.7 M) (1.4 M) 2018-19 (2.7 M) (2.0 M) (1.2 M) 2019-20 (1.9 M) (1.4 M) (1.0 M) 147

REVENUE ESTIMATING CONFERENCE Tax: Sales and Use/ Corporate/ Ad Valorem Issue: Enterprise Zone Benefits/ 3 year limited extension Bill Number(s): HB 33A Senate Amendment Property Tax High Middle Low 2015-16 2016-17 Insignificant Insignificant Insignificant 2017-18 Insignificant Insignificant Insignificant 2018-19 Insignificant Insignificant Insignificant 2019-20 Insignificant Insignificant Insignificant Total High Middle Low 2015-16 (7.1 M) (4.1 M) (2.0 M) 2016-17 (11.5 M) (6.8 M) (3.1 M) 2017-18 (12.5 M) (7.7 M) (3.8 M) 2018-19 (7.3 M) (4.7 M) (2.6 M) 2019-20 (3.0 M) (2.1 M) (1.3 M) List of affected Trust Funds: Sales Tax/Corporate Income tax/ad Valorem Section 5: Consensus Estimate (Adopted: 06/12/2015): 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 2019-20 (.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. GR Trust Local/Other Total Cash Recurring 2015-16 (1.2) 0.0 (Insignificant) 0.0 (Insignificant) 0.0 (0.1) 0.0 2016-17 (1.9) 0.0 (Insignificant) 0.0 (Insignificant) 0.0 (0.1) 0.0 2017-18 (2.2) 0.0 (Insignificant) 0.0 (Insignificant) 0.0 (0.1) 0.0 2018-19 (1.5) 0.0 (Insignificant) 0.0 (Insignificant) 0.0 (Insignificant) 0.0 2019-20 (0.8) 0.0 (Insignificant) 0.0 (Insignificant) 0.0 0.0 0.0 Local Option Total Local Total 2015-16 (0.1) 0.0 (0.2) 0.0 (1.4) 0.0 2016-17 (0.1) 0.0 (0.2) 0.0 (2.1) 0.0 2017-18 (0.1) 0.0 (0.2) 0.0 (2.4) 0.0 2018-19 (Insignificant) 0.0 (Insignificant) 0.0 (1.5) 0.0 2019-20 0.0 0.0 (Insignificant) 0.0 (0.8) 0.0 148

Enterprise Zone Benefits/ 3 Year Limited Extension 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 Summary of DEO Data A B C D E F G New Jobs by year Number of Affected businesses 2016 2017 2018 Rural - 4 75 0 0 NonRural - 30 573 265 279 Total 34 648 265 279 Section 1. 196.095 Property Tax Exemption for licensed child care facility Millage Rate (School) 7.4334 Millage Rate (Non-School) 10.9369 Millage Rate (total) 18.3703 Licensed Child Care Facility Exemptions Exemption Value Number of Facilities Average Exemption Total Impact - Current Exemption 2013 40,513,828 199 203,587 744,251 2014 46,071,680 199 231,516 846,351 CY to FY 2013-14 43,292,754 199 217,552 Percent of affected businesses 20% 10% 5% Number of affected businesses 6.8 3.4 1.7 High Middle Low 2013-14* 1,479,350 739,675 369,838 School impact 10,997 5,498 2,749 Non-School impact 16,180 8,090 4,045 Total Impact 27,176 13,588 6,794 *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 June 12, 2015 Impact Conference 149

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 C D E F G 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 34 34 Parcels per Business 3 1 Refund/ Parcel 10,000 5,000 High (10K/parcel) Low (5K/parcel) Total 1,020,000 170,000 per month 24,286 5,667 Monthly value * affected months in each fiscal year Affected months High Middle Low 2015-16 145,714 89,857.14 34,000 6 2016-17 291,429 179,714.29 68,000 12 2017-18 291,429 179,714.29 68,000 12 2018-19 291,429 179,714.29 68,000 12 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 30% 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 532,534,810 Investment periods Years 4 6 8 Spending on Business Equipment 50% 40% 30% Spending per Year 66,566,851 35,502,321 19,970,055 Sales tax refunds available per year 3,994,011 2,130,139 1,198,203 High Middle Low 2015-16 3,994,011 2,130,139 1,198,203 2016-17 3,994,011 2,130,139 1,198,203 2017-18 3,994,011 2,130,139 1,198,203 2018-19 1,997,006 1,065,070 599,102 June 12, 2015 Impact Conference 150

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 C D E F G 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 5% applied to the total from all other Enterprise Zone incentives Exemption lasts for 5 years Total incentives High Middle Low 2015-16 6,806,818 3,895,823 1,916,764 2016-17 10,940,551 7,687,568 3,761,841 2017-18 11,934,152 7,321,105 3,639,994 Electricity exemption High Middle Low 2015-16 340,341 194,791 95,838 2016-17 547,028 384,378 188,092 2017-18 596,708 366,055 182,000 2018-19 596,708 366,055 182,000 2019-20 596,708 366,055 182,000 June 12, 2015 Impact Conference 151

Enterprise Zone Benefits/ 3 Year Limited Extension A B C D E F G 93 94 95 96 97 98 99 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 100 101 Summary of DEO Data New Jobs by year Jobs times Average Wage 102 Number of Affected businesses 103 Rural - 4 104 NonRural - 30 105 Total 34 106 2016 75 573 648 2017 0 265 265 2018 0 279 279 2016 4,662,150 27,678,989 32,341,139 2017-13,477,806 13,477,806 2018-16,939,178 16,939,178 Assumed % Employees per year Residing in 107 Zone High Middle Low 108 Rural 109 Urban 110 70% 30% 50% 20% 19% 10% 111 Assumed % Employees Welfare to Work High Middle Low 112 Rural 113 Urban 10% 10% 7% 7% 4% 4% 114 Calculated credits generated per year - Rural High Middle Low 115 116 117 118 2016 2017 2018 1,666,718.63 - - 1,187,682.71 0 0 344,999.10 - - Calculated credits generated per year - 119 NonRural 120 121 122 123 124 125 total credits per year 126 127 128 129 130 131 CY to Fy 2016 2017 2018 2016 2017 2018 2019 High High High 3,667,466.04 2,587,500.95 1,524,526.02 5,334,184.67 7,921,685.62 4,112,026.97 1,524,526.02 Middle Middle 2,484,189.26 1,209,633.09 1,520,291.23 3,671,871.98 4,881,505.06 2,729,924.31 1,520,291.23 Low Low Low 1,024,122.59 498,678.82 626,749.59 1,369,121.69 1,867,800.52 1,125,428.41 626,749.59 132 133 134 135 136 137 2015-16 2016-17 2017-18 2018-19 2019-20 2,667,092.33 6,627,935.14 6,016,856.29 2,818,276.49 762,263.01 684,560.85 1,618,461.10 1,496,614.46 876,089.00 313,374.79 June 12, 2015 Impact Conference 152

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 Will not be able to first be taken until 2017-18 High (50K/parcel) Low (25K/parcel) 162 163 164 165 166 167 168 169 170 171 A B C D E F G Credit against Sales tax (assumed 60% of total) High Middle Low 2015-16 1,600,255.40 1,005,495.95 410,736.51 2016-17 3,976,761.08 2,473,918.87 971,076.66 2017-18 3,610,113.77 2,254,041.23 897,968.68 2018-19 1,690,965.90 1,108,309.65 525,653.40 2019-20 457,357.81 322,691.34 188,024.88 Credit Against Corporate (assumed 40% of total) High Middle Low 2015-16 1,066,836.93 670,330.64 273,824.34 2016-17 2,651,174.06 1,649,279.25 647,384.44 2017-18 2,406,742.52 1,502,694.15 598,645.78 2018-19 1,127,310.60 738,873.10 350,435.60 2019-20 304,905.20 215,127.56 125,349.92 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 25,000 Number of Businesses 34 34 for High Uses assumed real property /3 * millage and caps impact at 50,000 Parcels per Business 3 1 34 Affected businesses in all estimates Credit/ Parcel 50,000 25,000 Credit is granted for 5 years Annual credit 1,604,680 850,000 High Middle Low 2015-16 - - - 2016-17 - - - 2017-18 1,604,680 1,227,340 850,000 2018-19 1,604,680 1,227,340 850,000 2019-20 1,604,680 1,227,340 850,000 2020-21 1,604,680 1,227,340 850,000 June 12, 2015 Impact Conference 153

Enterprise Zone Benefits/ 3 Year Limited Extension A B C D E F G 172 173 Total Impact 174 High* Middle Low 175 Year 176 2015-16 (7.1 M) (4.1 M) (2.0 M) 177 2016-17 (11.5 M) (6.8 M) (3.1 M) 178 2017-18 (12.5 M) (7.7 M) (3.8 M) 179 2018-19 (7.3 M) (4.7 M) (2.6 M) 180 2019-20 (3.0 M) (2.1 M) (1.3 M) 181 182 183 Sales Tax Impact 184 High* Middle Low 185 Year 186 2015-16 (6.1 M) (3.4 M) (1.7 M) 187 2016-17 (8.8 M) (5.2 M) (2.4 M) 188 2017-18 (8.5 M) (4.9 M) (2.3 M) 189 2018-19 (4.6 M) (2.7 M) (1.4 M) 190 191 192 2019-20 (1.1 M) (0.7 M) (0.4 M) 193 Corporate Income Tax Impact 194 High* Middle Low 195 Year 196 2015-16 (1.1 M) (0.7 M) (0.3 M) 197 2016-17 (2.7 M) (1.6 M) (0.6 M) 198 2017-18 (4.0 M) (2.7 M) (1.4 M) 199 2018-19 (2.7 M) (2.0 M) (1.2 M) 200 2019-20 (1.9 M) (1.4 M) (1.0 M) June 12, 2015 Impact Conference 154

Tax: Sales and Use Tax Issue: School Sales Tax Holiday, 10 days Bill Number(s): HB33A - Senate Amendment REVENUE ESTIMATING CONFERENCE Entire Bill X Partial Bill: Section 28 Sponsor(s): Senators Hukill and Benacquisto Month/Year Impact Begins: The bill is effective July 1, 2015. The sales tax holiday will affect August activity and, subsequently, September collections. Date of Analysis: June 11, 2015 Section 1: Narrative a. Current Law: Under current law in Ch. 212, F.S., clothing, school supplies, and computers and related accessories are subject to the 6% Sales and Use Tax. b. Proposed Change: Clothing: The proposed language exempts sales of clothing, wallets, or bags, including handbags, backpacks, fanny packs, and diaper bags, but excluding briefcases, suitcases, and other garment bags from the Sales and Use Tax for a ten-day period beginning on Friday, August 7, and ending on Sunday, August 16, 2015, as long as the sales price of the item does not exceed 100. Clothing is defined as any article of wearing apparel intended to be worn on or about the human body, excluding watches, watchbands, jewelry, umbrellas, and handkerchiefs, and including all footwear except for skis, swim fins, roller blades, and skates. School Supplies: During this same period, sales of school supplies having a sales price of 15 or less per item are exempt from the Sales and Use Tax. School supplies are defined as pens, pencils, erasers, crayons, notebooks, notebook filler paper, legal pads, binders, lunch boxes, construction paper, markers, folders, poster board, composition books, poster paper, scissors, cellophane tape, glue or paste, rulers, computer disks, protractors, compasses, and calculators. Computers: Also exempt during the three-day period is the first 750 of the sales price of personal computers or personal computer-related accessories purchased for noncommercial home or personal use. Exempted items include electronic book readers, laptops, desktops, handhelds, tablets, or tower computers and related accessories including keyboards, mice, personal digital assistants, monitors (not including devices with a television tuner), other peripheral devices, modems, routers, and nonrecreational software. The exemption does not apply to cellular telephones, video game consoles, digital media receivers, or devices that are not primarily designed to process data. Related accessories do not include furniture or systems, devices, software, or peripherals designed or intended primarily for recreational use. The tax exemptions do not apply to sales within a theme park or entertainment complex, within a public lodging establishment, or within an airport. Section 2: Description of Data and Sources Clothing and Shoes expenditures forecast, FEB 2015 National Economic Estimating Conference. Consumer Computer expenditures forecast, FEB 2015 National Economic Estimating Conference. U.S. Population (total and 65+), 3rd Quarter estimates, FEB 2015 National Economic Estimating Conference. Florida Population (total and 65+), 3rd Quarter estimates, FEB 2015 Demographic Estimating Conference. Estimates of Florida public school enrollment, FEB 2015 K-12 Enrollment Estimating Conference. Estimates of Florida private school enrollment, Department of Education Office of K-12 School Choice. Estimates of Florida public and private college/university fall enrollment, Integrated Postsecondary Education Data System (National Center for Education Statistics). Available at www.nces.ed.gov/ipeds. Estimates include Florida College System institutions, State Universities, career centers, and private institutions eligible to participate in the FRAG or ABLE tuition assistance programs. Data accessed 2/17/2015. Computer and Internet Use in the United States: 2013, U.S. Census Bureau. Available at http://www.census.gov/content/dam/census/library/publications/2014/acs/acs-28.pdf. Accessed 2/18/2015. Tax collections by kind code, Florida Department of Revenue. Available at http://dor.myflorida.com/dor/taxes/colls_from_7_2003.html. Accessed 2/17/2015. Best Time to Buy Things Month by Month, Consumer Reports. Available at www.consumerreports.org/cro/2013/08/besttime-to-buy-things/index.htm. Accessed 2/17/2015. 155

Tax: Sales and Use Tax Issue: School Sales Tax Holiday, 10 days Bill Number(s): HB33A - Senate Amendment REVENUE ESTIMATING CONFERENCE Section 2: Description of Data and Sources, continued. Computer and accessories pricing information from www.bestbuy.com. Accessed 2/19/2015. E-Reading Rises as Device Ownership Jumps, Pew Research Center. Available at www.pewinternet.org/2014/01/16/ereading-rises-as-device-ownership-jumps/. Accessed 2/18/2015. Older Adults and Technology Use, Pew Research Center. Available at www.pewinternet.org/2014/04/03/older-adults-andtechnology-use/. Accessed 2/18/2015. Quarterly Retail E-Commerce Sales: 4 th Quarter 2014, U.S. Census Bureau. Available at http://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf. Accessed 2/19/2015. Section 3: Methodology (Include Assumptions and Attach Details) Clothing/Shoes/Backpacks: Florida expenditures for clothing and shoes are derived from total national expenditures for clothing and shoes using Florida population (adjusted for ages 65+), and adjusted for an assumed percentage of non-taxed mail order items. The total Florida expenditures are converted to a ten-day amount, with assumptions made for the percentage of expenditures that would be under the 100 limit. For backpacks, assumptions are made for the percentage of students who would purchase a backpack, and each backpack is assumed to cost 25. For the three-day holiday impact previously adopted by the REC, the sales tax matrix was used to spread expenditure levels by each day of the holiday period to derive the level of spending for a three-day weekend (=62.4% of the ten-day total). Because the Senate amendment provides for a ten-day holiday, the 62.4% adjustment is not made. School Supplies: For school supplies, an amount of expenditure is assumed per student, by grade level, for ten days, which is multiplied by the estimated number of students enrolled in public or private elementary and secondary schools, Florida Colleges, State Universities, career centers, and private colleges/universities. The estimated expenditure by students is increased by a factor of 25% for business spending. For the three-day holiday impact previously adopted by the REC, the sales tax matrix was used to spread expenditure levels by each day of the holiday period to derive the level of spending for a threeday weekend (=62.4% of the ten-day total). Because the Senate amendment provides for a ten-day holiday, the 62.4% adjustment is not made. Computers: Florida expenditures are derived from total national expenditures for computers and peripherals using Florida population (adjusted for ages 65+), and adjusted for an assumed percentage of non-taxed online order items. The total Florida expenditures are adjusted for the percentage of expenditures assumed to occur during the third quarter of calendar year 2015 (=22%), the percentage of total expenditures assumed to be exempt, and the percentage of quarterly purchases that are expected to occur during the three-day holiday period. The low estimate assumes 25% of third quarter expenditures would be made during the holiday period (same as for the three-day holiday as previously adopted by the REC). The middle estimate increases the percentage to 30% of third quarter expenditures, assuming additional purchases would be made during a ten-day holiday as compared to a three-day holiday. The high estimate assumes 55% of third quarter expenditures. Section 4: Proposed Fiscal Impact: The impact is nonrecurring for FY 2015-16 only. 2015-16 Clothing & Shoes School Supplies Computers Total High Middle Low (50.6 M) (7.9 M) (16.8 M) (75.3 M) (47.5 M) (7.2 M) (7.8 M) (62.5 M) (44.3 M) (6.6 M) (6.5 M) (57.4 M) List of affected Trust Funds: Sales and Use Tax Grouping 156

Tax: Sales and Use Tax Issue: School Sales Tax Holiday, 10 days Bill Number(s): HB33A - Senate Amendment REVENUE ESTIMATING CONFERENCE Section 5: Consensus Estimate (Adopted:06/01/2015): The Conference adopted the middle impact. GR Trust Revenue Sharing Local Half Cent Cash Recurring 2015-16 (55.4) 0.0 (Insignificant) 0.0 (1.8) 0.0 (5.3) 0.0 2016-17 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2017-18 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2018-19 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2019-20 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Local Option Total Local Total 2015-16 (5.3) 0.0 (12.4) 0.0 (67.8) 0.0 2016-17 0.0 0.0 0.0 0.0 0.0 0.0 2017-18 0.0 0.0 0.0 0.0 0.0 0.0 2018-19 0.0 0.0 0.0 0.0 0.0 0.0 2019-20 0.0 0.0 0.0 0.0 0.0 0.0 157

Senate Amendment 496616 to HB 33A Sales Tax Holiday - Clothing, School Supplies, Personal Computers 10 Days, August 7-16, 2015 (NONRECURRING) 1 2 3 Clothing & Shoes - 100 or Less School Supplies - 15 or Less Expenditure Type Personal Computers and Related Accessories - First 750 2015-16 HIGH MIDDLE LOW (50.6) (47.5) (44.3) (7.9) (7.2) (6.6) (16.8) (7.8) (6.5) 4 Total Impact (75.3) (62.5) (57.4) *Estimates in millions of dollars 158