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Florida's Red Tape
Abernathy's frustration with Florida's regulatory maze isn't unusual. Small business owners frequently complain that federal, state and local government regulations are killing their companies. It's tough to monitor rules changes, know who to call for regulatory help and, finally, foot the bill when there's a compliance problem. "The average small business isn't going to pay some Tallahassee lawyer 200 bucks an hour," says Paul Bradshaw, a partner with Tallahassee's Bryant, Miller & Olive. Small businesses have reason for hope, however. In words and deeds, state officials' commitment to reducing red tape appears genuine. Several recommendations from the February report of the Governor's Task Force on Paperwork Reduction have been enacted or are in the works. It's getting easier for business owners to access federal, state and local regulatory information. And the state's post-disaster regulatory efforts get high marks even from Abernathy, the Panama City marina owner. He declares that since Hurricane Opal, the permitting process has been "absolutely wonderful."
A few recent regulatory developments:
Florida's Administrative Procedures Act, the statute which governs state rulemaking, was rewritten in the 1996 legislative session and approved by Gov. Chiles [Tallahassee Report, p. 10].
The Legislature also overhauled the Paperwork Reduction Act, requiring agencies to evaluate the need for information before they start to collect it. The law also directs agencies to coordinate information gathering by implementing programs such as one-stop permitting, licensing and public services.
The South Florida Regional Planning Council (SFRPC) and Florida Coastal Management Program developed the Florida Marine Resource Information System, a personal computer-based system of maps, regulatory and permitting information for coastal and ocean areas of Dade, Broward and Monroe counties. The system allows users to pinpoint dozens of features, such as seagrass, protected species and wetlands, then automatically locate regulatory information. For details, call SFRPC's Richard F. Ogburn, 954/985-4416.
In April, the Florida Department of State began posting the full text of the Florida Administrative Weekly on the agency's Web site ,"Weekly on the Web," (http://election.dos.state.fl.us/faw) posted each Friday, allows businesses to monitor proposed rules and regulations. Best of all, it's free.
The Department of Environmental Protection's Web site includes the full text of the Department's environmental rules (http://www.dep.state.fl.us). For a more comprehensive database of DEP rules, computer users can use their modem to dial DEP's bulletin board at 1-800-217-2934. For more information or help with the bulletin board, call Jim Lewis at 904/488-9334.
Tallahassee's Municipal Code Corp., a publisher of local government codes, offers free Internet access to more than 100 Florida county and city codes of ordinances through its Municode Web site (http://www.municode.com/database.html). Instead of a trip to city hall or a telephone inquiry, Municode offers businesses immediate access to data.
The Florida Chamber of Commerce's HelpLine (1-800-8-ASK-NOW) also is a useful tool for small business owners who have regulatory questions. The free service, available only to chamber members, is staffed by experts in human resources, environmental, general regulatory and tax. "It's not legal advice. It's just to have someone to say these are the general steps you need to follow," says Blake Wilson, executive vice president of the chamber. "It's really kind of a friendly hand." For small business owners who remain disgruntled about Florida's red tape, Charles "Red" Scott says things could be worse. Scott, a businessman for more than 40 years and recent Florida transplant, leads TEC Florida, an invitation-only group of CEOs of small and medium-sized companies. "You guys just don't understand how good you have it from a state regulatory standpoint. I think business people who are crying just aren't in touch with what it's like in New York or California."
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Florida Taxes
At Your Finger Tips
To stay abreast of Florida's tax laws, look at the Department of Revenue's computerized Tax Law Library. Updated quarterly, the Library contains tax laws, DOR rules and other technical information produced by the agency. The Tax Law Library is accessible in three ways:
Using a computer modem, call 904/488-3855.
A CD-ROM subscription service offered through Compass Data Systems Inc. of Salt Lake City. The cost: $299 per year, including quarterly updates; other rates available for single, non-updated CDs and multi-user versions. Call 1-800-950-1940.
At DOR's 24 regional service centers, where personal computers and printers are available. DOR also offers a free "fax on demand" service with 24-hour, seven-day-a-week access to more than 150 tax forms, rules, statutes and other documents. To use the service, dial 904/922-3676 from a telephone connected to a fax machine. A pre-recorded message instructs how to retrieve up to five documents using the four-digit identification codes assigned to each document. If you don't know the document codes, the system advises how to retrieve a list of documents that includes the corresponding codes along with the number of pages for each publication.
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Finance
Seed Money
Beginning this fall, North Florida's emerging growth companies can tap a new source of venture capital funding. Jacksonville's Enterprise North Florida Corp., an affiliate of Enterprise Florida, is creating the Enterprise North Florida Fund I, a $2.5 million to $10 million venture capital pool providing seed money and early-stage financing to companies in the Gainesville-Tallahassee-Jacksonville area. Of the fund's final size, Enterprise North Florida president and CEO Alan Rossiter says: "It's our sense that it will close at $4 million to $6 million." The fund will target fast growing companies looking to raise less than $1 million, perhaps as little as $200,000, says Rossiter. That's a group largely ignored by national and regional venture firms, which generally bypass start-ups in favor of companies in search of expansion capital of $1.5 million or more.
To get funding, companies must be more than local, mom-and-pop operations. Investment decisions will be based on a company's potential for rapid growth and high-quality job creation, ability to penetrate national markets and overall economic impact on the region.
"The fund represents a resource that is not available today," says Rossiter, adding, "We're acting somewhat as a prototype for the state." For information on investing in the fund or applying for capital, call Rossiter at 904/987-5980.
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Five Sales Tax Filing Tips
Many Florida businesses must collect the state's 6% sales & use tax and, perhaps, a local option tax of up to 1.5%. When filing monthly and quarterly returns, the Department of Revenue recommends that businesses keep these points in mind:
Late Filings. Returns and payments are due on the 1st day of the month following the sale, with late penalties and interest due after the 20th of the month.
Penalties and Interest. If your return is late, you must compute and remit the penalty (10% of the unpaid tax per month, not to exceed 50%) and interest (1% per month). The minimum penalty is $10.
Zero Returns. If you are registered to remit tax, you must file for each collection period, even if no tax is due.
Partial Month Filings. A return must be filed if your business operates for only part of a month.
Tax Rate. When computing tax payments, make sure to use the correct rate, including any county surtax.
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Zoning
"Never Assume Anything"
Surprising as it seems, Florida business owners often spend big money buying land or buildings without first checking the property's zoning. That strategy can backfire. "The number one thing is to never assume anything," cautions Fort Lauderdale attorney Christopher L. Smith.
Smith, who practices business law with Tripp, Scott, Conklin & Smith and serves on the Fort Lauderdale Planning and Zoning Board, advises:
There's little rhyme or reason to Florida zoning maps due to years of unrelated decisions. An owner may buy property to use as a parking lot only to find out it's zoned residential or industrial.
Simple uncontested zoning changes take about six months.
A new permit averages $500; with an attorney, the total cost will be $1,500 or more.
