Senate Bill sb0952

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    Florida Senate - 2006                                   SB 952

    By Senator Margolis





    35-691-06

  1                      A bill to be entitled

  2         An act relating to the tax on sales, use, and

  3         other transactions; amending s. 212.031, F.S.;

  4         continuing in effect an exemption from the tax

  5         on rental or license fees which is provided for

  6         certain property rented, leased, or licensed by

  7         a convention or exhibition hall, auditorium,

  8         stadium, theater, arena, civic center,

  9         performing arts center, or publicly owned

10         recreational facility for a specified period;

11         postponing the repeal of s. 212.031(10), F.S.,

12         relating to an exemption provided for certain

13         charges imposed by a convention or exhibition

14         hall, auditorium, stadium, theater, arena,

15         civic center, performing arts center, or

16         publicly owned recreational facility upon a

17         lessee or licensee; amending s. 212.04, F.S.,

18         relating to the tax on admissions; continuing

19         in effect a provision that excludes certain

20         service charges from the sales price or actual

21         value of an admission; continuing in effect an

22         exemption from the tax which is provided for

23         admission charges to an event sponsored by a

24         governmental entity, sports authority, or

25         sports commission for a specified period;

26         continuing in effect provisions governing the

27         remitting of certain admission taxes to the

28         Department of Revenue; providing an effective

29         date.

30  

31  Be It Enacted by the Legislature of the State of Florida:

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 1         Section 1.  Paragraph (a) of subsection (1) of section

 2  212.031, Florida Statutes, as amended by section 3 of chapter

 3  2000-345, as amended by section 55 of chapter 2002-218, and as

 4  amended by section 2 of chapter 2000-182, section 1 of chapter

 5  2000-183, section 53 of chapter 2000-260, and section 27 of

 6  chapter 2001-140, Laws of Florida, and subsection (3) of that

 7  section, as amended by section 3 of chapter 2000-345, as

 8  amended by section 55 of chapter 2002-218, Laws of Florida,

 9  are amended to read:

10         212.031  Tax on rental or license fee for use of real

11  property.--

12         (1)(a)  It is declared to be the legislative intent

13  that every person is exercising a taxable privilege who

14  engages in the business of renting, leasing, letting, or

15  granting a license for the use of any real property unless

16  such property is:

17         1.  Assessed as agricultural property under s. 193.461.

18         2.  Used exclusively as dwelling units.

19         3.  Property subject to tax on parking, docking, or

20  storage spaces under s. 212.03(6).

21         4.  Recreational property or the common elements of a

22  condominium when subject to a lease between the developer or

23  owner thereof and the condominium association in its own right

24  or as agent for the owners of individual condominium units or

25  the owners of individual condominium units. However, only the

26  lease payments on such property shall be exempt from the tax

27  imposed by this chapter, and any other use made by the owner

28  or the condominium association shall be fully taxable under

29  this chapter.

30         5.  A public or private street or right-of-way and

31  poles, conduits, fixtures, and similar improvements located on

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 1  such streets or rights-of-way, occupied or used by a utility

 2  or provider of communications services, as defined by s.

 3  202.11, for utility or communications or television purposes.

 4  For purposes of this subparagraph, the term "utility" means

 5  any person providing utility services as defined in s.

 6  203.012. This exception also applies to property, wherever

 7  located, on which the following are placed: towers, antennas,

 8  cables, accessory structures, or equipment, not including

 9  switching equipment, used in the provision of mobile

10  communications services as defined in s. 202.11. For purposes

11  of this chapter, towers used in the provision of mobile

12  communications services, as defined in s. 202.11, are

13  considered to be fixtures.

14         6.  A public street or road which is used for

15  transportation purposes.

16         7.  Property used at an airport exclusively for the

17  purpose of aircraft landing or aircraft taxiing or property

18  used by an airline for the purpose of loading or unloading

19  passengers or property onto or from aircraft or for fueling

20  aircraft.

21         8.a.  Property used at a port authority, as defined in

22  s. 315.02(2), exclusively for the purpose of oceangoing

23  vessels or tugs docking, or such vessels mooring on property

24  used by a port authority for the purpose of loading or

25  unloading passengers or cargo onto or from such a vessel, or

26  property used at a port authority for fueling such vessels, or

27  to the extent that the amount paid for the use of any property

28  at the port is based on the charge for the amount of tonnage

29  actually imported or exported through the port by a tenant.

30         b.  The amount charged for the use of any property at

31  the port in excess of the amount charged for tonnage actually

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 1  imported or exported shall remain subject to tax except as

 2  provided in sub-subparagraph a.

 3         9.  Property used as an integral part of the

 4  performance of qualified production services.  As used in this

 5  subparagraph, the term "qualified production services" means

 6  any activity or service performed directly in connection with

 7  the production of a qualified motion picture, as defined in s.

 8  212.06(1)(b), and includes:

 9         a.  Photography, sound and recording, casting, location

10  managing and scouting, shooting, creation of special and

11  optical effects, animation, adaptation (language, media,

12  electronic, or otherwise), technological modifications,

13  computer graphics, set and stage support (such as

14  electricians, lighting designers and operators, greensmen,

15  prop managers and assistants, and grips), wardrobe (design,

16  preparation, and management), hair and makeup (design,

17  production, and application), performing (such as acting,

18  dancing, and playing), designing and executing stunts,

19  coaching, consulting, writing, scoring, composing,

20  choreographing, script supervising, directing, producing,

21  transmitting dailies, dubbing, mixing, editing, cutting,

22  looping, printing, processing, duplicating, storing, and

23  distributing;

24         b.  The design, planning, engineering, construction,

25  alteration, repair, and maintenance of real or personal

26  property including stages, sets, props, models, paintings, and

27  facilities principally required for the performance of those

28  services listed in sub-subparagraph a.; and

29         c.  Property management services directly related to

30  property used in connection with the services described in

31  sub-subparagraphs a. and b.

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 1  

 2  This exemption will inure to the taxpayer upon presentation of

 3  the certificate of exemption issued to the taxpayer under the

 4  provisions of s. 288.1258.

 5         10.  Leased, subleased, licensed, or rented to a person

 6  providing food and drink concessionaire services within the

 7  premises of a convention hall, exhibition hall, auditorium,

 8  stadium, theater, arena, civic center, performing arts center,

 9  publicly owned recreational facility, or any business operated

10  under a permit issued pursuant to chapter 550.  A person

11  providing retail concessionaire services involving the sale of

12  food and drink or other tangible personal property within the

13  premises of an airport shall be subject to tax on the rental

14  of real property used for that purpose, but shall not be

15  subject to the tax on any license to use the property.  For

16  purposes of this subparagraph, the term "sale" shall not

17  include the leasing of tangible personal property.

18         11.  Property occupied pursuant to an instrument

19  calling for payments which the department has declared, in a

20  Technical Assistance Advisement issued on or before March 15,

21  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

22  Florida Administrative Code; provided that this subparagraph

23  shall only apply to property occupied by the same person

24  before and after the execution of the subject instrument and

25  only to those payments made pursuant to such instrument,

26  exclusive of renewals and extensions thereof occurring after

27  March 15, 1993.

28         12.  Rented, leased, subleased, or licensed to a

29  concessionaire by a convention hall, exhibition hall,

30  auditorium, stadium, theater, arena, civic center, performing

31  arts center, or publicly owned recreational facility, during

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 1  an event at the facility, to be used by the concessionaire to

 2  sell souvenirs, novelties, or other event-related products.

 3  This subparagraph applies only to that portion of the rental,

 4  lease, or license payment which is based on a percentage of

 5  sales and not based on a fixed price. This subparagraph

 6  expires July 1, 2011.

 7         13.12.  Property used or occupied predominantly for

 8  space flight business purposes. As used in this subparagraph,

 9  "space flight business" means the manufacturing, processing,

10  or assembly of a space facility, space propulsion system,

11  space vehicle, satellite, or station of any kind possessing

12  the capacity for space flight, as defined by s. 212.02(23), or

13  components thereof, and also means the following activities

14  supporting space flight: vehicle launch activities, flight

15  operations, ground control or ground support, and all

16  administrative activities directly related thereto. Property

17  shall be deemed to be used or occupied predominantly for space

18  flight business purposes if more than 50 percent of the

19  property, or improvements thereon, is used for one or more

20  space flight business purposes. Possession by a landlord,

21  lessor, or licensor of a signed written statement from the

22  tenant, lessee, or licensee claiming the exemption shall

23  relieve the landlord, lessor, or licensor from the

24  responsibility of collecting the tax, and the department shall

25  look solely to the tenant, lessee, or licensee for recovery of

26  such tax if it determines that the exemption was not

27  applicable.

28         (3)  The tax imposed by this section shall be in

29  addition to the total amount of the rental or license fee,

30  shall be charged by the lessor or person receiving the rent or

31  payment in and by a rental or license fee arrangement with the

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    Florida Senate - 2006                                   SB 952
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 1  lessee or person paying the rental or license fee, and shall

 2  be due and payable at the time of the receipt of such rental

 3  or license fee payment by the lessor or other person who

 4  receives the rental or payment. Notwithstanding any other

 5  provision of this chapter, the tax imposed by this section on

 6  the rental, lease, or license for the use of a convention

 7  hall, exhibition hall, auditorium, stadium, theater, arena,

 8  civic center, performing arts center, or publicly owned

 9  recreational facility to hold an event of not more than 7

10  consecutive days' duration shall be collected at the time of

11  the payment for that rental, lease, or license but is not due

12  and payable to the department until the first day of the month

13  following the last day that the event for which the payment is

14  made is actually held, and becomes delinquent on the 21st day

15  of that month. The owner, lessor, or person receiving the rent

16  or license fee shall remit the tax to the department at the

17  times and in the manner hereinafter provided for dealers to

18  remit taxes under this chapter. The same duties imposed by

19  this chapter upon dealers in tangible personal property

20  respecting the collection and remission of the tax; the making

21  of returns; the keeping of books, records, and accounts; and

22  the compliance with the rules and regulations of the

23  department in the administration of this chapter shall apply

24  to and be binding upon all persons who manage any leases or

25  operate real property, hotels, apartment houses,

26  roominghouses, or tourist and trailer camps and all persons

27  who collect or receive rents or license fees taxable under

28  this chapter on behalf of owners or lessors.

29         Section 2.  Notwithstanding the provisions of section 3

30  of chapter 2000-345, Laws of Florida, as amended by section 55

31  of chapter 2002-218, Laws of Florida, subsection (10) of

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    Florida Senate - 2006                                   SB 952
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 1  section 212.031, Florida Statutes, shall not stand repealed on

 2  July 1, 2006, as scheduled by such laws, but that subsection

 3  is revived and readopted. Subsection (10) of section 212.031,

 4  Florida Statutes, is repealed July 1, 2011.

 5         Section 3.  Paragraph (b) of subsection (1) and

 6  subsection (3) of section 212.04, Florida Statutes, as amended

 7  by section 4 of chapter 2000-345, as amended by section 55 of

 8  chapter 2002-218, Laws of Florida, and paragraph (a) of

 9  subsection (2) of that section, as amended by section 4 of

10  chapter 2000-345, as amended by section 55 of chapter

11  2002-218, as amended by section 916 of chapter 2002-387, and

12  as amended by section 24 of chapter 2000-158, and section 11

13  of chapter 2000-210, Laws of Florida, are amended to read:

14         212.04  Admissions tax; rate, procedure, enforcement.--

15         (1)

16         (b)  For the exercise of such privilege, a tax is

17  levied at the rate of 6 percent of sales price, or the actual

18  value received from such admissions, which 6 percent shall be

19  added to and collected with all such admissions from the

20  purchaser thereof, and such tax shall be paid for the exercise

21  of the privilege as defined in the preceding paragraph.  Each

22  ticket must show on its face the actual sales price of the

23  admission, or each dealer selling the admission must

24  prominently display at the box office or other place where the

25  admission charge is made a notice disclosing the price of the

26  admission, and the tax shall be computed and collected on the

27  basis of the actual price of the admission charged by the

28  dealer.  The sales sale price or actual value of admission

29  shall, for the purpose of this chapter, be that price

30  remaining after deduction of federal taxes and state or

31  locally imposed or authorized seat surcharges, taxes, or fees,

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 1  if any, imposed upon such admission. The sales price or actual

 2  value does not include separately stated ticket service

 3  charges that are imposed by a facility ticket office or a

 4  ticketing service and added to a separately stated,

 5  established ticket price., and The rate of tax on each

 6  admission shall be according to the brackets established by s.

 7  212.12(9).

 8         (2)(a)1.  No tax shall be levied on admissions to

 9  athletic or other events sponsored by elementary schools,

10  junior high schools, middle schools, high schools, community

11  colleges, public or private colleges and universities, deaf

12  and blind schools, facilities of the youth services programs

13  of the Department of Children and Family Services, and state

14  correctional institutions when only student, faculty, or

15  inmate talent is used. However, this exemption shall not apply

16  to admission to athletic events sponsored by a state

17  university, and the proceeds of the tax collected on such

18  admissions shall be retained and used by each institution to

19  support women's athletics as provided in s. 1006.71(2)(c).

20         2.a.  No tax shall be levied on dues, membership fees,

21  and admission charges imposed by not-for-profit sponsoring

22  organizations. To receive this exemption, the sponsoring

23  organization must qualify as a not-for-profit entity under the

24  provisions of s. 501(c)(3) of the Internal Revenue Code of

25  1954, as amended.

26         b.  No tax shall be levied on admission charges to an

27  event sponsored by a governmental entity, sports authority, or

28  sports commission when held in a convention hall, exhibition

29  hall, auditorium, stadium, theater, arena, civic center,

30  performing arts center, or publicly owned recreational

31  facility and when 100 percent of the risk of success or

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 1  failure lies with the sponsor of the event and 100 percent of

 2  the funds at risk for the event belong to the sponsor, and

 3  student or faculty talent is not exclusively used.  As used in

 4  this sub-subparagraph, the terms "sports authority" and

 5  "sports commission" mean a nonprofit organization that is

 6  exempt from federal income tax under s. 501(c)(3) of the

 7  Internal Revenue Code and that contracts with a county or

 8  municipal government for the purpose of promoting and

 9  attracting sports-tourism events to the community with which

10  it contracts. This sub-subparagraph expires July 1, 2011.

11         3.  No tax shall be levied on an admission paid by a

12  student, or on the student's behalf, to any required place of

13  sport or recreation if the student's participation in the

14  sport or recreational activity is required as a part of a

15  program or activity sponsored by, and under the jurisdiction

16  of, the student's educational institution, provided his or her

17  attendance is as a participant and not as a spectator.

18         4.  No tax shall be levied on admissions to the

19  National Football League championship game, on admissions to

20  any semifinal game or championship game of a national

21  collegiate tournament, or on admissions to a Major League

22  Baseball all-star game.

23         5.  A participation fee or sponsorship fee imposed by a

24  governmental entity as described in s. 212.08(6) for an

25  athletic or recreational program is exempt when the

26  governmental entity by itself, or in conjunction with an

27  organization exempt under s. 501(c)(3) of the Internal Revenue

28  Code of 1954, as amended, sponsors, administers, plans,

29  supervises, directs, and controls the athletic or recreational

30  program.

31  

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 1         6.  Also exempt from the tax imposed by this section to

 2  the extent provided in this subparagraph are admissions to

 3  live theater, live opera, or live ballet productions in this

 4  state which are sponsored by an organization that has received

 5  a determination from the Internal Revenue Service that the

 6  organization is exempt from federal income tax under s.

 7  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

 8  the organization actively participates in planning and

 9  conducting the event, is responsible for the safety and

10  success of the event, is organized for the purpose of

11  sponsoring live theater, live opera, or live ballet

12  productions in this state, has more than 10,000 subscribing

13  members and has among the stated purposes in its charter the

14  promotion of arts education in the communities which it

15  serves, and will receive at least 20 percent of the net

16  profits, if any, of the events which the organization sponsors

17  and will bear the risk of at least 20 percent of the losses,

18  if any, from the events which it sponsors if the organization

19  employs other persons as agents to provide services in

20  connection with a sponsored event. Prior to March 1 of each

21  year, such organization may apply to the department for a

22  certificate of exemption for admissions to such events

23  sponsored in this state by the organization during the

24  immediately following state fiscal year. The application shall

25  state the total dollar amount of admissions receipts collected

26  by the organization or its agents from such events in this

27  state sponsored by the organization or its agents in the year

28  immediately preceding the year in which the organization

29  applies for the exemption. Such organization shall receive the

30  exemption only to the extent of $1.5 million multiplied by the

31  ratio that such receipts bear to the total of such receipts of

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 1  all organizations applying for the exemption in such year;

 2  however, in no event shall such exemption granted to any

 3  organization exceed 6 percent of such admissions receipts

 4  collected by the organization or its agents in the year

 5  immediately preceding the year in which the organization

 6  applies for the exemption. Each organization receiving the

 7  exemption shall report each month to the department the total

 8  admissions receipts collected from such events sponsored by

 9  the organization during the preceding month and shall remit to

10  the department an amount equal to 6 percent of such receipts

11  reduced by any amount remaining under the exemption. Tickets

12  for such events sold by such organizations shall not reflect

13  the tax otherwise imposed under this section.

14         7.  Also exempt from the tax imposed by this section

15  are entry fees for participation in freshwater fishing

16  tournaments.

17         8.  Also exempt from the tax imposed by this section

18  are participation or entry fees charged to participants in a

19  game, race, or other sport or recreational event if spectators

20  are charged a taxable admission to such event.

21         9.  No tax shall be levied on admissions to any

22  postseason collegiate football game sanctioned by the National

23  Collegiate Athletic Association.

24         (3)  Such taxes shall be paid and remitted at the same

25  time and in the same manner as provided for remitting taxes on

26  sales of tangible personal property, as hereinafter provided.

27  Notwithstanding any other provision of this chapter, the tax

28  on admission to an event at a convention hall, exhibition

29  hall, auditorium, stadium, theater, arena, civic center,

30  performing arts center, or publicly owned recreational

31  facility shall be collected at the time of payment for the

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 1  admission but is not due to the department until the first day

 2  of the month following the actual date of the event for which

 3  the admission is sold and becomes delinquent on the 21st day

 4  of that month.

 5         Section 4.  This act shall take effect July 1, 2006.

 6  

 7            *****************************************

 8                          SENATE SUMMARY

 9    Relates to the tax on sales, use, and other transactions.
      Continues in effect an exemption from the tax on rental
10    or license fees which is provided for certain property
      rented, leased, or licensed by a convention or exhibition
11    hall, auditorium, stadium, theater, arena, civic center,
      performing arts center, or publicly owned recreational
12    facility for a specified period. Postpones the repeal of
      s. 212.031(10), F.S., relating to an exemption provided
13    for certain charges imposed by a convention or exhibition
      hall, auditorium, stadium, theater, arena, civic center,
14    performing arts center, or publicly owned recreational
      facility upon a lessee or licensee. Continues in effect a
15    provision that excludes certain service charges from the
      sales price or actual value of an admission. Continues in
16    effect an exemption from the admission tax which is
      provided for admission charges to an event sponsored by a
17    governmental entity, sports authority, or sports
      commission for a specified period. Continues in effect
18    provisions governing the remitting of certain admission
      taxes to the Department of Revenue.
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