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





                                                   HOUSE AMENDMENT

    hbd-22                                       Bill No. CS/HB 29

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  The Committee on Finance & Taxation offered the following:

12

13         Amendment (with title amendment) 

14         On page ......2...,  line(s) ..3 and 4......., remove

15  from the bill:  all of said lines.

16

17  and insert in lieu thereof:

18         Section 2.  Effective January 1, 1998, section 196.195,

19  Florida Statutes, is amended to read:

20         196.195  Determining profit or nonprofit status of

21  applicant.--

22         (1)  Applicants requesting exemption shall supply such

23  fiscal and other records showing in reasonable detail the

24  financial condition, record of operation, and exempt and

25  nonexempt uses of the property, where appropriate, for the

26  immediately preceding fiscal year as are requested by the

27  property appraiser or the value adjustment board.

28         (2)  In determining whether an applicant for a

29  religious, literary, scientific, or charitable exemption under

30  this chapter is a nonprofit or profitmaking venture or whether

31  the property is used for a profitmaking purpose, the following

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    File original & 9 copies    04/18/97
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                                                   HOUSE AMENDMENT

    hbd-22                                       Bill No. CS/HB 29

    Amendment No.     (for drafter's use only)





 1  criteria shall be applied:

 2         (a)  The reasonableness of any advances or payment

 3  directly or indirectly by way of salary, fee, loan, gift,

 4  bonus, gratuity, drawing account, commission, or otherwise

 5  (except for reimbursements of advances for reasonable

 6  out-of-pocket expenses incurred on behalf of the applicant) to

 7  any person, company, or other entity directly or indirectly

 8  controlled by the applicant or any officer, director, trustee,

 9  member, or stockholder of the applicant;

10         (b)  The reasonableness of any guaranty of a loan to,

11  or an obligation of, any officer, director, trustee, member,

12  or stockholder of the applicant or any entity directly or

13  indirectly controlled by such person, or which pays any

14  compensation to its officers, directors, trustees, members, or

15  stockholders for services rendered to or on behalf of the

16  applicant;

17         (c)  The reasonableness of any contractual arrangement

18  by the applicant or any officer, director, trustee, member, or

19  stockholder of the applicant regarding rendition of services,

20  the provision of goods or supplies, the management of the

21  applicant, the construction or renovation of the property of

22  the applicant, the procurement of the real, personal, or

23  intangible property of the applicant, or other similar

24  financial interest in the affairs of the applicant;

25         (d)  The reasonableness of payments made for salaries

26  for the operation of the applicant or for services, supplies

27  and materials used by the applicant, reserves for repair,

28  replacement, and depreciation of the property of the

29  applicant, payment of mortgages, liens, and encumbrances upon

30  the property of the applicant, or other purposes; and

31         (e)  The reasonableness of charges made by the

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                                                   HOUSE AMENDMENT

    hbd-22                                       Bill No. CS/HB 29

    Amendment No.     (for drafter's use only)





 1  applicant for any services rendered by it in relation to the

 2  value of those services, and, if such charges exceed the value

 3  of the services rendered, whether the excess is used to pay

 4  maintenance and operational expenses in furthering its exempt

 5  purpose or to provide services to persons unable to pay for

 6  the services.

 7         (3)  Each applicant must affirmatively show that no

 8  part of the subject property, or the proceeds of the sale,

 9  lease, or other disposition thereof, will inure to the benefit

10  of its members, directors, or officers or any person or firm

11  operating for profit or for a nonexempt purpose.

12         (4)  Notwithstanding the provisions of subsections (2)

13  and (3), a corporation organized as nonprofit under chapter

14  617 which has a valid consumer certificate of exemption

15  pursuant to s. 212.08(7)(o) and which has a valid exemption

16  from federal income tax under s. 501(c)(3) of the Internal

17  Revenue Code is nonprofit.  Proof provided by a corporation of

18  its status as described in this subsection shall be sufficient

19  to establish the organization's nonprofit status and any

20  corporation providing such proof is not required to provide

21  any other information in order to establish its nonprofit

22  status.

23         (5)(4)  No application for exemption may be granted for

24  religious, literary, scientific, or charitable use of property

25  until the applicant has been found by the property appraiser

26  or, upon appeal, by the value adjustment board to be nonprofit

27  as defined in this section.

28         Section 3.  Effective January 1, 1998, Paragraph (c) is

29  added to subsection (1) of section 196.196, Florida Statutes,

30  to read:

31         196.196  Determining whether property is entitled to

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    File original & 9 copies    04/18/97
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                                                   HOUSE AMENDMENT

    hbd-22                                       Bill No. CS/HB 29

    Amendment No.     (for drafter's use only)





 1  charitable, religious, scientific, or literary exemption.--

 2         (1)  In the determination of whether an applicant is

 3  actually using all or a portion of its property predominantly

 4  for a charitable, religious, scientific, or literary purpose,

 5  the following criteria shall be applied:

 6         (c)  The extent to which the property is used to

 7  conduct activities which cause a corporation to qualify for a

 8  consumer certificate of exemption under s. 212.08(7)(o).  Such

 9  activities shall be considered as part of the exempt purposes

10  of the applicant.

11         Section 4.  Except as otherwise provided herein, this

12  act shall take effect upon becoming a law.

13

14

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

16  And the title is amended as follows:

17         On page .....1...., between line(s) ....9.and.10....,

18

19  insert:

20         amending s. 196.195, F.S.; specifying that

21         certain nonprofit corporations are nonprofit

22         for purposes of determining eligibility for the

23         religious, literary, scientific, or charitable

24         ad valorem tax exemption and providing

25         requirements for establishing such status;

26         amending s. 196.196, F.S.; providing an

27         additional criterion for use in determining

28         whether property is being used for a

29         charitable, religious, scientific, or literary

30         purpose;

31

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    File original & 9 copies    04/18/97
    hbd0005                     03:58 pm         00029-ft  -583719