CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. SB 208
Amendment No.
CHAMBER ACTION
Senate House
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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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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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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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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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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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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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17 And the title is amended as follows:
18 Delete everything before the enacting clause
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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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1 certain publishing firms; providing an
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