Senate Bill 2642

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



    Florida Senate - 1998                                  SB 2642

    By Senator Geller





    29-1926-98                                         See HB 4237

  1                      A bill to be entitled

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

  3         transactions; amending s. 212.08, F.S.;

  4         providing an exemption for works of art

  5         purchased or imported for the purpose of

  6         donation to an educational institution;

  7         providing requirements with respect thereto;

  8         providing an effective date.

  9

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

11

12         Section 1.  Paragraph (dd) of subsection (7) of section

13  212.08, Florida Statutes, is amended to read:

14         212.08  Sales, rental, use, consumption, distribution,

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

16  the rental, the use, the consumption, the distribution, and

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

18  following are hereby specifically exempt from the tax imposed

19  by this chapter.

20         (7)  MISCELLANEOUS EXEMPTIONS.--

21         (dd)  Works of art.--

22         1.  Also exempt are works of art sold to or used by an

23  educational institution, as defined in sub-subparagraph

24  (o)2.d.

25         2.  The exemption also applies to the sale to or use in

26  this state of any work of art by any person if it was

27  purchased or imported exclusively for the purpose of being

28  donated to any educational institution, or loaned to and made

29  available for display by any educational institution, provided

30  that the term of the loan agreement is for at least 10 years.

31

                                  1

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






    Florida Senate - 1998                                  SB 2642
    29-1926-98                                         See HB 4237




  1         3.  The exemption provided by this paragraph for

  2  donations is allowed only if the person who purchased the work

  3  of art transfers title to the donated work of art to an

  4  educational institution. Such transfer of title shall be

  5  evidenced by an affidavit meeting requirements established by

  6  rule to document entitlement to the exemption. Nothing in this

  7  paragraph shall preclude a work of art donated to an

  8  educational institution from remaining in the possession of

  9  the donor or purchaser, as long as title to the work of art

10  lies with the educational institution.

11         4.3.  A work of art is presumed to have been purchased

12  in or imported into this state exclusively for loan as

13  provided in subparagraph 2., if it is so loaned or placed in

14  storage in preparation for such a loan within 90 days after

15  purchase or importation, whichever is later; but a work of art

16  is not deemed to be placed in storage in preparation for loan

17  for purposes of this exemption if it is displayed at any place

18  other than an educational institution.

19         5.4.  The exemptions provided by this paragraph are

20  allowed only if the person who purchased the work of art gives

21  to the vendor an affidavit meeting the requirements,

22  established by rule, to document entitlement to the exemption.

23  The person who purchased the work of art shall forward a copy

24  of such affidavit to the Department of Revenue at the time it

25  is issued to the vendor.

26         6.5.  The exemption for loans provided by subparagraph

27  2. applies only for the period during which a work of art is

28  in the possession of the educational institution or is in

29  storage before transfer of possession to that institution; and

30  when it ceases to be so possessed or held, tax based upon the

31  sales price paid by the owner is payable, and the statute of

                                  2

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






    Florida Senate - 1998                                  SB 2642
    29-1926-98                                         See HB 4237




  1  limitations provided in s. 95.091 shall begin to run at that

  2  time. However, tax shall not become due if the work of art is

  3  donated to an educational institution after the loan ceases.

  4         7.  Any educational institution to which a work of art

  5  has been donated pursuant to this paragraph shall make

  6  available to the department the title to the work of art and

  7  any other relevant information. Any educational institution

  8  which has received a work of art on loan pursuant to this

  9  paragraph shall make available to the department information

10  relating to the work of art. Any educational institution that

11  transfers from its possession a work of art as defined by this

12  paragraph which has been loaned to it must notify the

13  Department of Revenue within 60 days after the transfer.

14         8.6.  For purposes of the exemptions provided by this

15  paragraph, the term "work of art" includes pictorial

16  representations, sculpture, jewelry, antiques, stamp

17  collections and coin collections, and other tangible personal

18  property, the value of which is attributable predominantly to

19  its artistic, historical, political, cultural, or social

20  importance.

21         9.7.  This paragraph is a remedial clarification of

22  legislative intent and applies to all taxes that remain open

23  to assessment or contest on July 1, 1992.

24         Section 2.  This act shall take effect July 1, 1998.

25

26            *****************************************

27                       LEGISLATIVE SUMMARY

28
      Provides a sales tax exemption for works of art purchased
29    or imported for the purpose of donation to an educational
      institution, and provides requirements with respect
30    thereto.

31

                                  3