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House Bill 0117e1

CS/HB 117, First Engrossed 1 A bill to be entitled 2 An act relating to the tax on sales, use, and 3 other transactions; amending s. 212.08, F.S.; 4 revising the definition of educational 5 institutions for purposes of exemption; 6 providing an exemption for the Gasparilla 7 Distance Classic Association, Inc., in 8 specified circumstances; providing an effective 9 date. 10 11 Be It Enacted by the Legislature of the State of Florida: 12 13 Section 1. Paragraph (o) of subsection (7) of section 14 212.08, Florida Statutes, 1996 Supplement, is amended, and 15 paragraph (nn) is added to said subsection, to read: 16 212.08 Sales, rental, use, consumption, distribution, 17 and storage tax; specified exemptions.--The sale at retail, 18 the rental, the use, the consumption, the distribution, and 19 the storage to be used or consumed in this state of the 20 following are hereby specifically exempt from the tax imposed 21 by this part. 22 (7) MISCELLANEOUS EXEMPTIONS.-- 23 (o) Religious, charitable, scientific, educational, 24 and veterans' institutions and organizations.-- 25 1. There are exempt from the tax imposed by this part 26 transactions involving: 27 a. Sales or leases directly to churches or sales or 28 leases of tangible personal property by churches; 29 b. Sales or leases to nonprofit religious, nonprofit 30 charitable, nonprofit scientific, or nonprofit educational 31 institutions when used in carrying on their customary 1 CODING: Words stricken are deletions; words underlined are additions. CS/HB 117, First Engrossed 1 nonprofit religious, nonprofit charitable, nonprofit 2 scientific, or nonprofit educational activities, including 3 church cemeteries; and 4 c. Sales or leases to the state headquarters of 5 qualified veterans' organizations and the state headquarters 6 of their auxiliaries when used in carrying on their customary 7 veterans' organization activities. If a qualified veterans' 8 organization or its auxiliary does not maintain a permanent 9 state headquarters, then transactions involving sales or 10 leases to such organization and used to maintain the office of 11 the highest ranking state official are exempt from the tax 12 imposed by this part. 13 2. The provisions of this section authorizing 14 exemptions from tax shall be strictly defined, limited, and 15 applied in each category as follows: 16 a. "Religious institutions" means churches, 17 synagogues, and established physical places for worship at 18 which nonprofit religious services and activities are 19 regularly conducted and carried on. The term "religious 20 institutions" includes nonprofit corporations the sole purpose 21 of which is to provide free transportation services to church 22 members, their families, and other church attendees. The term 23 "religious institutions" also includes state, district, or 24 other governing or administrative offices the function of 25 which is to assist or regulate the customary activities of 26 religious organizations or members. The term "religious 27 institutions" also includes any nonprofit corporation which is 28 qualified as nonprofit pursuant to s. 501(c)(3), United States 29 Internal Revenue Code of 1986, as amended, which owns and 30 operates a Florida television station, at least 90 percent of 31 the programming of which station consists of programs of a 2 CODING: Words stricken are deletions; words underlined are additions. CS/HB 117, First Engrossed 1 religious nature, and the financial support for which, 2 exclusive of receipts for broadcasting from other nonprofit 3 organizations, is predominantly from contributions from the 4 general public. The term "religious institutions" also 5 includes any nonprofit corporation which is qualified as 6 nonprofit pursuant to s. 501(c)(3), United States Internal 7 Revenue Code of 1986, as amended, which provides regular 8 religious services to Florida state prisoners and which from 9 its own established physical place of worship, operates a 10 ministry providing worship and services of a charitable nature 11 to the community on a weekly basis. 12 b. "Charitable institutions" means only nonprofit 13 corporations qualified as nonprofit pursuant to s. 501(c)(3), 14 United States Internal Revenue Code of 1954, as amended, and 15 other nonprofit entities, the sole or primary function of 16 which is to provide, or to raise funds for organizations which 17 provide, one or more of the following services if a reasonable 18 percentage of such service is provided free of charge, or at a 19 substantially reduced cost, to persons, animals, or 20 organizations that are unable to pay for such service: 21 (I) Medical aid for the relief of disease, injury, or 22 disability; 23 (II) Regular provision of physical necessities such as 24 food, clothing, or shelter; 25 (III) Services for the prevention of or rehabilitation 26 of persons from alcoholism or drug abuse; the prevention of 27 suicide; or the alleviation of mental, physical, or sensory 28 health problems; 29 (IV) Social welfare services including adoption 30 placement, child care, community care for the elderly, and 31 other social welfare services which clearly and substantially 3 CODING: Words stricken are deletions; words underlined are additions. CS/HB 117, First Engrossed 1 benefit a client population which is disadvantaged or suffers 2 a hardship; 3 (V) Medical research for the relief of disease, 4 injury, or disability; 5 (VI) Legal services; or 6 (VII) Food, shelter, or medical care for animals or 7 adoption services, cruelty investigations, or education 8 programs concerning animals; 9 10 and the term includes groups providing volunteer staff to 11 organizations designated as charitable institutions under this 12 sub-subparagraph; nonprofit organizations the sole or primary 13 purpose of which is to coordinate, network, or link other 14 institutions designated as charitable institutions under this 15 sub-subparagraph with those persons, animals, or organizations 16 in need of their services; and nonprofit national, state, 17 district, or other governing, coordinating, or administrative 18 organizations the sole or primary purpose of which is to 19 represent or regulate the customary activities of other 20 institutions designated as charitable institutions under this 21 sub-subparagraph. Notwithstanding any other requirement of 22 this section, any blood bank that relies solely upon volunteer 23 donations of blood and tissue, that is licensed under chapter 24 483, and that qualifies as tax exempt under s. 501(c)(3) of 25 the Internal Revenue Code constitutes a charitable institution 26 and is exempt from the tax imposed by this part. 27 c. "Scientific organizations" means scientific 28 organizations which hold current exemptions from federal 29 income tax under s. 501(c)(3) of the Internal Revenue Code and 30 also means organizations the purpose of which is to protect 31 air and water quality or the purpose of which is to protect 4 CODING: Words stricken are deletions; words underlined are additions. CS/HB 117, First Engrossed 1 wildlife and which hold current exemptions from the federal 2 income tax under s. 501(c)(3) of the Internal Revenue Code. 3 d. "Educational institutions" means state 4 tax-supported or parochial, church and nonprofit private 5 schools, colleges, or universities which conduct regular 6 classes and courses of study required for accreditation by, or 7 membership in, the Southern Association of Colleges and 8 Schools, the Department of Education, the Florida Council of 9 Independent Schools, or the Florida Association of Christian 10 Colleges and Schools, Inc., or nonprofit private schools which 11 conduct regular classes and courses of study accepted for 12 continuing education credit by a Board of the Division of 13 Medical Quality Assurance of the Department of Business and 14 Professional Regulation or which conduct regular classes and 15 courses of study accepted for continuing education credit by 16 the American Medical Association. Nonprofit libraries, art 17 galleries, performing arts centers that provide educational 18 programs to school children, where such programs involve 19 performances or other educational activities at the performing 20 arts center and serve a minimum of 50,000 school children per 21 year, and museums open to the public are defined as 22 educational institutions and are eligible for exemption. The 23 term "educational institutions" includes private nonprofit 24 organizations the purpose of which is to raise funds for 25 schools teaching grades kindergarten through high school, 26 colleges, and universities. The term "educational 27 institutions" includes any nonprofit newspaper of free or paid 28 circulation primarily on university or college campuses which 29 holds a current exemption from federal income tax under s. 30 501(c)(3) of the Internal Revenue Code, and any educational 31 television or radio network or system established pursuant to 5 CODING: Words stricken are deletions; words underlined are additions. CS/HB 117, First Engrossed 1 s. 229.805 or s. 229.8051 and any nonprofit television or 2 radio station which is a part of such network or system and 3 which holds a current exemption from federal income tax under 4 s. 501(c)(3) of the Internal Revenue Code. The term 5 "educational institutions" also includes state, district, or 6 other governing or administrative offices the function of 7 which is to assist or regulate the customary activities of 8 educational organizations or members. The term "educational 9 institutions" also includes a nonprofit educational cable 10 consortium which holds a current exemption from federal income 11 tax under s. 501(c)(3) of the Internal Revenue Code of 1986, 12 as amended, whose primary purpose is the delivery of 13 educational and instructional cable television programming and 14 whose members are composed exclusively of educational 15 organizations which hold a valid consumer certificate of 16 exemption and which are either an educational institution as 17 defined in this sub-subparagraph, or qualified as a nonprofit 18 organization pursuant to s. 501(c)(3) of the Internal Revenue 19 Code of 1986, as amended. 20 e. "Veterans' organizations" means nationally 21 chartered or recognized veterans' organizations, including, 22 but not limited to, Florida chapters of the Paralyzed Veterans 23 of America, Catholic War Veterans of the U.S.A., Jewish War 24 Veterans of the U.S.A., and the Disabled American Veterans, 25 Department of Florida, Inc., which hold current exemptions 26 from federal income tax under s. 501(c)(4) or (19) of the 27 Internal Revenue Code. 28 (nn) Also exempt from the tax imposed by this chapter 29 are sales or leases to the Gasparilla Distance Classic 30 Association, Inc., if that organization holds a current 31 exemption from federal corporate income tax liability pursuant 6 CODING: Words stricken are deletions; words underlined are additions. CS/HB 117, First Engrossed 1 to s. 501(c)(3) of the Internal Revenue Code of 1986, as 2 amended. 3 Section 2. This act shall take effect July 1, 1997. 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 7