CODING: Words stricken are deletions; words underlined are additions.



                                                  SENATE AMENDMENT

    Bill No. SB 208

    Amendment No.    

                            CHAMBER ACTION
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11  Senators Burt, Harris and Scott moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 0, delete everything after the enacting clause

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16  and insert:

17         Section 1.  Paragraph (b) of subsection (5) of section

18  212.08, Florida Statutes, 1996 Supplement,is amended, and

19  paragraph (nn) is added to subsection (7) of that section,  to

20  read:

21         212.08  Sales, rental, use, consumption, distribution,

22  and storage tax; specified exemptions.--The sale at retail,

23  the rental, the use, the consumption, the distribution, and

24  the storage to be used or consumed in this state of the

25  following are hereby specifically exempt from the tax imposed

26  by this part.

27         (5)  EXEMPTIONS; ACCOUNT OF USE.--

28         (b)  Machinery and equipment used to increase

29  productive output.--

30         1.  Industrial machinery and equipment purchased for

31  use in new businesses which manufacture, process, compound, or

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                                                  SENATE AMENDMENT

    Bill No. SB 208

    Amendment No.    





  1  produce for sale, or for exclusive use in spaceport activities

  2  as defined in s. 212.02, items of tangible personal property

  3  at fixed locations are exempt from the tax imposed by this

  4  chapter upon an affirmative showing by the taxpayer to the

  5  satisfaction of the department that such items are used in a

  6  new business in this state. Such purchases must be made prior

  7  to the date the business first begins its productive

  8  operations, and delivery of the purchased item must be made

  9  within 12 months of that date.

10         2.a.  Industrial machinery and equipment purchased for

11  use in expanding manufacturing facilities or plant units which

12  manufacture, process, compound, or produce for sale, or for

13  exclusive use in spaceport activities as defined in s. 212.02,

14  items of tangible personal property at fixed locations in this

15  state are exempt from any amount of tax imposed by this

16  chapter in excess of $50,000 per calendar year upon an

17  affirmative showing by the taxpayer to the satisfaction of the

18  department that such items are used to increase the productive

19  output of such expanded business by not less than 10 percent.

20         b.  Notwithstanding any other provision of this

21  section, industrial machinery and equipment purchased for use

22  in expanding printing or publishing manufacturing facilities

23  or plant units that manufacture, process, compound, or produce

24  for sale items of tangible personal property at fixed

25  locations in this state are exempt from any amount of tax

26  imposed by this chapter upon an affirmative showing by the

27  taxpayer to the satisfaction of the department that such items

28  are used to increase the productive output of such expanded

29  business by not less than 10 percent.

30         3.a.  To receive an exemption provided by subparagraph

31  1. or subparagraph 2., a qualifying business entity shall

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                                                  SENATE AMENDMENT

    Bill No. SB 208

    Amendment No.    





  1  apply to the department for a temporary tax exemption permit.

  2  The application shall state that a new business exemption or

  3  expanded business exemption is being sought. Upon a tentative

  4  affirmative determination by the department pursuant to

  5  subparagraph 1. or subparagraph 2., the department shall issue

  6  such permit.

  7         b.  The applicant shall be required to maintain all

  8  necessary books and records to support the exemption. Upon

  9  completion of purchases of qualified machinery and equipment

10  pursuant to subparagraph 1. or subparagraph 2., the temporary

11  tax permit shall be delivered to the department or returned to

12  the department by certified or registered mail.

13         c.  If, in a subsequent audit conducted by the

14  department, it is determined that the machinery and equipment

15  purchased as exempt under subparagraph 1. or subparagraph 2.

16  did not meet the criteria mandated by this paragraph or if

17  commencement of production did not occur, the amount of taxes

18  exempted at the time of purchase shall immediately be due and

19  payable to the department by the business entity, together

20  with the appropriate interest and penalty, computed from the

21  date of purchase, in the manner prescribed by this chapter.

22         d.  In the event a qualifying business entity fails to

23  apply for a temporary exemption permit or if the tentative

24  determination by the department required to obtain a temporary

25  exemption permit is negative, a qualifying business entity

26  shall receive the exemption provided in subparagraph 1. or

27  subparagraph 2. through a refund of previously paid taxes. No

28  refund may be made for such taxes unless the criteria mandated

29  by subparagraph 1. or subparagraph 2. have been met and

30  commencement of production has occurred.

31         4.  The department shall promulgate rules governing

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                                                  SENATE AMENDMENT

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  1  applications for, issuance of, and the form of temporary tax

  2  exemption permits; provisions for recapture of taxes; and the

  3  manner and form of refund applications and may establish

  4  guidelines as to the requisites for an affirmative showing of

  5  increased productive output, commencement of production, and

  6  qualification for exemption.

  7         5.  The exemptions provided in subparagraphs 1. and 2.

  8  do not apply to machinery or equipment purchased or used by

  9  electric utility companies, communications companies,

10  phosphate or other solid minerals severance, mining, or

11  processing operations, oil or gas exploration or production

12  operations, publishing firms that do not export at least 50

13  percent of their finished product out of the state, any firm

14  subject to regulation by the Division of Hotels and

15  Restaurants of the Department of Business and Professional

16  Regulation, or any firm which does not manufacture, process,

17  compound, or produce for sale, or for exclusive use in

18  spaceport activities as defined in s. 212.02, items of

19  tangible personal property.

20         6.  For the purposes of the exemptions provided in

21  subparagraphs 1. and 2., these terms have the following

22  meanings:

23         a.  "Industrial machinery and equipment" means "section

24  38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the

25  Internal Revenue Code, provided "industrial machinery and

26  equipment" shall be construed by regulations adopted by the

27  Department of Revenue to mean tangible property used as an

28  integral part of the manufacturing, processing, compounding,

29  or producing for sale, or for exclusive use in spaceport

30  activities as defined in s. 212.02, of items of tangible

31  personal property. Such term includes parts and accessories

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                                                  SENATE AMENDMENT

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    Amendment No.    





  1  only to the extent that the exemption thereof is consistent

  2  with the provisions of this paragraph.

  3         b.  "Productive output" means the number of units

  4  actually produced by a single plant or operation in a single

  5  continuous 12-month period, irrespective of sales. Increases

  6  in productive output shall be measured by the output for 12

  7  continuous months immediately following the completion of

  8  installation of such machinery or equipment over the output

  9  for the 12 continuous months immediately preceding such

10  installation. However, if a different 12-month continuous

11  period of time would more accurately reflect the increase in

12  productive output of machinery and equipment purchased to

13  facilitate an expansion, the increase in productive output may

14  be measured during that 12-month continuous period of time if

15  such time period is mutually agreed upon by the Department of

16  Revenue and the expanding business prior to the commencement

17  of production; provided, however, in no case may such time

18  period begin later than 2 years following the completion of

19  installation of the new machinery and equipment. The units

20  used to measure productive output shall be physically

21  comparable between the two periods, irrespective of sales.

22         7.  Notwithstanding any other provision in this

23  paragraph to the contrary, in order to receive the exemption

24  provided in this paragraph a taxpayer must register with the

25  WAGES Program Business Registry established by the local WAGES

26  coalition for the area in which the taxpayer is located.  Such

27  registration establishes a commitment on the part of the

28  taxpayer to hire WAGES program participants to the maximum

29  extent possible consistent with the nature of their business.

30         (7)  MISCELLANEOUS EXEMPTIONS.--

31         (nn)  Complimentary meals.--Also exempt from the tax

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                                                  SENATE AMENDMENT

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  1  imposed by this part are food or drinks that are furnished as

  2  part of a packaged room rate by any person offering for rent

  3  or lease any transient living accommodations as described in

  4  s. 509.013(4)(a) which are licensed under part I of chapter

  5  509 and which are subject to the tax under s. 212.03, if a

  6  separate charge or specific amount for the food or drinks is

  7  not shown. Such food or drinks are considered to be sold at

  8  retail as part of the total charge for the transient living

  9  accommodations. Moreover, the person offering the

10  accommodations is not considered to be the consumer of items

11  purchased in furnishing such food or drinks and may purchase

12  those items under conditions of a sale for resale.

13         Section 2.  This act shall take effect January 1, 1998.

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16  ================ T I T L E   A M E N D M E N T ===============

17  And the title is amended as follows:

18         Delete everything before the enacting clause

19

20  and insert:

21                      A bill to be entitled

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

23         other transactions; amending s. 212.08, F.S.;

24         providing an exemption for certain

25         complimentary meals; providing a tax exemption

26         for industrial machinery and equipment

27         purchased for use in expanding certain printing

28         or publishing facilities; removing a provision

29         that prevents an exemption for industrial

30         machinery and equipment purchased for use in

31         new or expanding businesses from applying to

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                                                  SENATE AMENDMENT

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  2         effective date.

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