House Bill 4779
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Florida House of Representatives - 1998 HB 4779
By the Committee on Finance & Taxation and Representative
Starks
1 A bill to be entitled
2 An act relating to taxation; amending s.
3 72.011, F.S.; providing for adoption of
4 procedures for notifying a taxpayer of an
5 assessment or denial of a refund; amending s.
6 193.075, F.S.; specifying conditions under
7 which recreational vehicles shall be taxed as
8 real property; providing that recreational
9 vehicles that do not meet these conditions and
10 do not have a current license plate are
11 presumed to be tangible personal property;
12 amending s. 197.162, F.S.; providing for
13 application of discount rates for early payment
14 of taxes with respect to corrected tax notices
15 or notices resulting from value adjustment
16 board action; amending s. 197.182, F.S.;
17 providing that overpayments of $5 or less may
18 be retained by the tax collector unless the
19 taxpayer makes a refund claim; providing for
20 automatic refund of certain overpayments;
21 providing for notice to the property owner of a
22 delinquency resulting from certain refunds;
23 amending s. 197.243, F.S.; excluding boarders
24 and renters from the meaning of "household"
25 under the Homestead Property Tax Deferral Act;
26 amending s. 197.252, F.S.; providing for
27 calculating estimated full year's household
28 income under the act; amending s. 197.253,
29 F.S.; requiring the property appraiser to
30 notify the tax collector with respect to
31 homestead status; amending s. 197.332, F.S.;
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1 specifying authority of tax collectors to
2 collect interest and costs; amending s.
3 197.344, F.S.; providing requirements with
4 respect to mailing of tax notices to specified
5 persons other than the taxpayer; including
6 vendees of recorded contracts for deeds;
7 including such vendees and lienholders in
8 persons who may receive information concerning
9 delinquent taxes; amending s. 197.413, F.S.;
10 authorizing inclusion of costs of advertising
11 delinquent personal property taxes in such
12 taxes; amending s. 197.432, F.S.; providing
13 payment requirements for persons who bid on tax
14 certificates; creating s. 197.4325, F.S.;
15 providing procedures when a check received by
16 the tax collector for payment of taxes or tax
17 certificates is dishonored; providing
18 requirements with respect to forfeiture of a
19 bidder's deposit; amending s. 197.443, F.S.;
20 providing for assessment of advertising costs
21 in connection with void tax certificates;
22 providing procedures when a tax certificate
23 holder requests the certificate be canceled
24 with no refund; amending s. 197.542, F.S.;
25 providing that the clerk of the circuit court
26 may refuse to recognize certain bids at sales
27 of lands at public auction; amending s.
28 199.052, F.S.; specifying when a trust or a
29 portion thereof has Florida situs for purposes
30 of intangible personal property tax; amending
31 s. 212.02, F.S.; revising definitions for
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1 purposes of the tax on sales, use, and other
2 transactions; revising standards for excluding
3 certain packaging materials and providing that
4 a separate charge for packaging materials is
5 considered part of the sales price or rental
6 charge when determining applicability of tax;
7 specifying federal excise taxes that are and
8 are not included in "sales price"; providing
9 that "use" does not include certain loan of an
10 automobile for high school driver education;
11 defining "itinerant merchant," "flea market
12 operator, manager, lessor, or owner,"
13 "agricultural commodity," "farmer," and
14 "livestock"; amending s. 212.03, F.S.; revising
15 application of the exemption from transient
16 rental tax for certain trailer parks and
17 similar facilities; providing duties of owners
18 of such facilities regarding determination of
19 taxable status; amending s. 212.031, F.S.,
20 relating to the tax on the lease or rental of
21 or license in real property; providing for
22 exemption of a portion of property leased or
23 rented by a residential facility for the aged;
24 exempting certain utility charges paid by a
25 tenant; specifying taxable status of charges
26 paid by a lessee to cancel a lease agreement;
27 amending s. 212.04, F.S., relating to the tax
28 on admissions; providing standards for
29 determining taxability of components of
30 packages sold by travel agents; exempting entry
31 fees for participants in certain sports events
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1 when spectators are charged a taxable
2 admission; amending s. 212.05, F.S.; including
3 certain noncorporate entities as nonresident
4 purchasers qualified for the exemption for the
5 sale of boats or airplanes and specifying who
6 may be deemed a dealer for such exemption;
7 providing that certain aircraft may be returned
8 to this state for repairs under certain
9 conditions without incurring tax liability;
10 providing taxability of property originally
11 purchased tax-exempt for use for lease which is
12 converted to the owner's own use; providing
13 guidelines for application of tax to the lease
14 or rental of motor vehicles; providing
15 application of tax to newspapers; specifying
16 when inserts are a component part of newspapers
17 or magazines; providing liability of florists
18 for tax; providing taxability of prizes awarded
19 by concessionaires; amending s. 212.0506, F.S.,
20 relating to taxation of service warranties;
21 providing authority of the Department of
22 Revenue when taxable and nontaxable portions of
23 the consideration are not apportioned in good
24 faith; providing for exemption of certain
25 materials and supplies used in performance of a
26 warranty; amending s. 212.0515, F.S., relating
27 to taxation of sales from vending machines;
28 providing for application to sales of items
29 other than food or beverages; specifying the
30 tax rate when the operator cannot account for
31 each type of item sold; specifying that a
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1 separate registration certificate is required
2 for each county where machines are located;
3 excluding certain persons from eligibility for
4 a reward for reporting violations; exempting
5 certain vending machines owned and operated by
6 nonprofit organizations; amending s. 212.054,
7 F.S., which provides for administration of
8 discretionary sales surtaxes; providing for
9 application of surtaxes in the case of vessels,
10 railroads, and motor vehicle common carriers
11 partially exempt under s. 212.08, F.S.;
12 amending s. 212.0598, F.S.; providing for
13 determining an air carrier's mileage
14 apportionment factor during its initial year of
15 operation; amending s. 212.06, F.S.; revising
16 provisions relating to application of tax to
17 persons who manufacture tangible personal
18 property for their own use; authorizing the
19 department to establish a cost price amount for
20 industry groups engaged in such manufacture in
21 performance of contracts for improvements to
22 real property and providing requirements with
23 respect thereto; including taxes on services in
24 the exemption for taxes paid in other
25 jurisdictions; specifying effect of registering
26 a motor vehicle in this state; providing for
27 application of use tax to aircraft purchased by
28 registered dealers for resale; defining "real
29 property," "fixtures," and "improvements to
30 real property" for purposes of determining if a
31 person is improving real property; providing
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1 for determining the taxable basis for rock,
2 fill, and similar materials used by a
3 contractor in a real property improvement
4 contract; providing application of tax to use
5 by a publisher of a newspaper or other
6 periodical of copies for his or her own
7 consumption or to give away; amending s.
8 212.07, F.S.; providing dealer liability for
9 tax in certain cases where the purchaser does
10 not extend a required certificate; providing
11 for applicability of tax to sales of race
12 horses at claiming races; repealing s.
13 212.07(8), F.S., which defines "agricultural
14 commodity"; amending s. 212.08, F.S.; revising
15 the exemption for food and drinks; providing
16 definitions; revising the exemption for medical
17 products and supplies and providing additional
18 exemptions; providing a definition; providing
19 that the partial exemption for farm equipment
20 includes equipment for fire prevention and
21 suppression; providing conditions under which
22 said exemption is disallowed and providing the
23 farmer's responsibility to pay tax due;
24 providing requirements with respect to the
25 exemption for water; providing that the basis
26 for imposition of discretionary sales surtaxes
27 on fuel used in interstate or foreign commerce
28 and vessels, railroads, and motor vehicle
29 common carriers engaged in such commerce shall
30 be as provided in s. 212.054, F.S.; revising
31 the exemption for items used for agricultural
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1 purposes; providing that paint color cards and
2 other samples are exempt; providing for rules
3 to determine when a sale is a taxable sale to a
4 government contractor; revising application of
5 the exemption for school books and lunches;
6 providing for payment of tax on certain
7 school-related items purchased by
8 parent-teacher associations and organizations,
9 schools, and others; providing for purchases of
10 certain items by mobile home lot developers as
11 a sale for resale; providing that certain
12 amounts paid to a dealer by the Veterans
13 Administration are not taxable; providing an
14 exemption for certain foods, drinks, and other
15 items provided to customers on a complimentary
16 basis by a dealer who sells food products at
17 retail; providing an exemption for foods and
18 beverages donated by such dealers to certain
19 organizations; providing an exemption for
20 certain sales of racing dogs; providing that
21 exemptions provided to an entity under s.
22 212.08(7), F.S., shall not inure to
23 transactions when payment is made by a
24 representative or employee of the entity;
25 providing that the partial exemption for
26 vessels engaged in interstate or foreign
27 commerce includes commercial fishing vessels;
28 providing that certain aircraft purchased by
29 nonresidents may be returned to this state for
30 repairs under certain conditions without
31 incurring tax liability; providing membership
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1 requirements for the technical assistance
2 advisory committee established to provide
3 advice in determining taxability of foods and
4 medicines; amending s. 212.09, F.S.; providing
5 requirements and restrictions with respect to
6 articles taken in trade; amending s. 212.17,
7 F.S.; providing for reimbursement of taxes paid
8 on property purchased for a dealer's own use
9 and subsequently sold; amending s. 212.18,
10 F.S.; providing registration requirements for
11 owners and operators of vending machines or
12 newspaper rack machines, certain independent
13 sellers, and itinerant merchants selling at
14 flea markets; authorizing the department to
15 waive the increased registration fee under
16 certain circumstances; providing procedures and
17 requirements for revocation of a dealer's
18 registration; requiring the dealer to attend an
19 informal conference; providing duties of flea
20 market operators, managers, lessors, or owners
21 regarding registration, collection of tax on
22 space rentals, obtaining information from
23 vendors, furnishing certain notices and tax
24 envelopes, and remitting tax; requiring certain
25 vendors to register as dealers; requiring
26 unregistered vendors to remit taxes to the flea
27 market operator, manager, lessor, or owner;
28 providing a penalty; amending s. 213.21, F.S.;
29 authorizing the department to use informal
30 conferences for resolving disputes relating to
31 denial of refunds; specifying when closing
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1 agreements must be in writing; amending s.
2 213.22, F.S.; providing that a technical
3 assistance advisement relating to exemptions in
4 s. 212.08(1) or (2), F.S., may be issued at any
5 time; amending s. 220.222, F.S.; specifying
6 when a taxpayer is not in compliance with
7 requirements relating to payments of tentative
8 corporate income tax in connection with the
9 granting of extensions; amending s. 624.515,
10 F.S., which provides for regulatory assessments
11 on fire insurance premiums; authorizing the
12 department to establish by rule percentages of
13 fire insurance within a line of insurance under
14 certain circumstances; amending s. 896.102,
15 F.S.; authorizing the department to adopt rules
16 to administer and enforce requirements relating
17 to reports of currency more than $10,000
18 received in trade or business; providing an
19 effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Paragraph (b) of subsection (2) of section
24 72.011, Florida Statutes, is amended to read:
25 72.011 Jurisdiction of circuit courts in specific tax
26 matters; administrative hearings and appeals; time for
27 commencing action; parties; deposits.--
28 (2)
29 (b) The date on which an assessment or a denial of
30 refund becomes final and procedures a procedure by which a
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1 taxpayer must be notified of the assessment or of the denial
2 of refund must be established:
3 1. By rule adopted by the Department of Revenue;
4 2. With respect to assessments or refund denials under
5 chapter 207, by rule adopted by the Department of Highway
6 Safety and Motor Vehicles;
7 3. With respect to assessments or refund denials under
8 chapters 210, 550, 561, 562, 563, 564, and 565, by rule
9 adopted by the Department of Business and Professional
10 Regulation; or
11 4. With respect to taxes that a county collects or
12 enforces under s. 125.0104(10) or s. 212.0305(5), by an
13 ordinance that may additionally provide for informal dispute
14 resolution procedures in accordance with s. 213.21.
15 Section 2. Subsections (3) and (4) are added to
16 section 193.075, Florida Statutes, to read:
17 193.075 Mobile homes and recreational vehicles.--
18 (3) A recreational vehicle shall be taxed as real
19 property if the owner of the recreational vehicle is also the
20 owner of the land on which the vehicle is permanently affixed.
21 A recreational vehicle shall be considered permanently affixed
22 if it is connected to the normal and usual utilities and if it
23 is tied down or it is attached or affixed in such a way that
24 it cannot be removed without material or substantial damage to
25 the recreational vehicle. Except when the mode of attachment
26 or affixation is such that the recreational vehicle cannot be
27 removed without material or substantial damage to the
28 recreational vehicle or the real property, the intent of the
29 owner to make the recreational vehicle permanently affixed
30 shall be determinative. A recreational vehicle that is taxed
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1 as real property shall be issued an "RP" series sticker as
2 provided in s. 320.0815.
3 (4) A recreational vehicle that is not taxed as real
4 property shall have a current license plate properly affixed
5 as provided in s. 320.08(9). Any such recreational vehicle
6 without a current license plate properly affixed shall be
7 presumed to be tangible personal property.
8 Section 3. Section 197.162, Florida Statutes, is
9 amended to read:
10 197.162 Discounts; amount and time.--On all taxes
11 assessed on the county tax rolls and collected by the county
12 tax collector, discounts for early payment thereof shall be at
13 the rate of 4 percent in the month of November or at any time
14 within 30 days after the mailing of the original tax notice; 3
15 percent in the month of December; 2 percent in the following
16 month of January; 1 percent in the following month of
17 February; and zero percent in the following month of March or
18 within 30 days prior to the date of delinquency if the date of
19 delinquency is after April 1. When a taxpayer makes a request
20 to have the original tax notice corrected, the discount rate
21 for early payment applicable at the time the request for
22 correction is made shall apply for 30 days after the mailing
23 of the corrected tax notice. A discount shall apply at the
24 rate of 4 percent for 30 days after the mailing of a tax
25 notice resulting from the action of a value adjustment board.
26 Thereafter, the regular discount periods shall apply. For the
27 purposes of this section, when a discount period ends on a
28 Saturday, Sunday, or legal holiday, the discount period shall
29 be extended to the next working day, if payment is delivered
30 to a designated collection office of the tax collector.
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1 Section 4. Paragraph (b) of subsection (1) and
2 subsection (3) of section 197.182, Florida Statutes, are
3 amended to read:
4 197.182 Department of Revenue to pass upon and order
5 refunds.--
6 (1)
7 (b) Those refunds which have been ordered by a court
8 and those refunds which do not result from changes made in the
9 assessed value on a tax roll certified to the tax collector
10 shall be made directly by the tax collector without order from
11 the department and shall be made from undistributed funds
12 without approval of the various taxing authorities.
13 Overpayments in the amount of $5 or less may be retained by
14 the tax collector unless a written claim for a refund is
15 received from the taxpayer. Overpayments over $5 resulting
16 from taxpayer error, if determined within the 4-year period of
17 limitation, are to be automatically refunded to the taxpayer.
18 Such refunds do not require approval from the department.
19 (3) A refund ordered by the department pursuant to
20 this section shall be made by the tax collector in one
21 aggregate amount composed of all the pro rata shares of the
22 several taxing authorities concerned, except that a partial
23 refund is allowed when one or more of the taxing authorities
24 concerned do not have funds currently available to pay their
25 pro rata shares of the refund and this would cause an
26 unreasonable delay in the total refund. A statement by the
27 tax collector explaining the refund shall accompany the refund
28 payment. When taxes become delinquent as a result of a refund
29 pursuant to subparagraph (1)(a)4., the tax collector shall
30 notify the property owner that the taxes have become
31 delinquent and that a tax certificate will be sold if the
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1 taxes are not paid within 30 days after the date of
2 delinquency.
3 Section 5. Subsection (1) of section 197.243, Florida
4 Statutes, is amended to read:
5 197.243 Definitions.--
6 (1) "Household" means a person or group of persons
7 living together in a room or group of rooms as a housing unit,
8 but does not include persons boarding in or renting a portion
9 of the dwelling.
10 Section 6. Paragraph (c) of subsection (2) of section
11 197.252, Florida Statutes, is amended to read:
12 197.252 Homestead tax deferral.--
13 (2)
14 (c) The household income of an applicant who applies
15 for a tax deferral before the end of the calendar year in
16 which the taxes and non-ad valorem assessments are assessed
17 shall be for the current year, adjusted to reflect estimated
18 income for the full calendar year period. The estimate of a
19 full year's household income shall be made by multiplying the
20 household income received to the date of application by a
21 fraction, the numerator being 365 and the denominator being
22 the number of days expired in the calendar year to the date of
23 application.
24 Section 7. Subsection (7) is added to section 197.253,
25 Florida Statutes, to read:
26 197.253 Homestead tax deferral; application.--
27 (7) The property appraiser shall promptly notify the
28 tax collector of denials of homestead application and changes
29 in ownership of properties that have been granted a tax
30 deferral.
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1 Section 8. Section 197.332, Florida Statutes, is
2 amended to read:
3 197.332 Duties of tax collectors.--The tax collector
4 has the authority and obligation to collect all taxes as shown
5 on the tax roll by the date of delinquency or to collect
6 delinquent taxes, interest, and costs, by sale of tax
7 certificates on real property and by seizure and sale of
8 personal property. The tax collector shall be allowed to
9 collect reasonable attorney's fees and court costs in actions
10 on proceedings to recover delinquent taxes, interest, and
11 costs.
12 Section 9. Subsections (1) and (2) of section 197.344,
13 Florida Statutes, are amended to read:
14 197.344 Lienholders; receipt of notices and delinquent
15 taxes.--
16 (1) When requested in writing, a tax notice shall be
17 mailed according to the following procedures:
18 (a) Upon request by any taxpayer aged 60 or over, the
19 tax collector shall mail the tax notice to a third party
20 designated by the taxpayer. A duplicate copy of the notice
21 shall be mailed to the taxpayer.
22 (b) Upon request by a mortgagee stating that the
23 mortgagee is the trustee of an escrow account for ad valorem
24 taxes due on the property, the tax notice shall be mailed to
25 such trustee. When the original tax notice is mailed to such
26 trustee, the tax collector shall mail a duplicate notice to
27 the owner of the property with the additional statement that
28 the original has been sent to the trustee.
29 (c) Upon request by a vendee of an unrecorded or
30 recorded contract for deed, the tax collector shall mail a
31 duplicate notice to such vendee.
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1
2 The tax collector may establish cutoff dates, periods for
3 updating the list, and any other reasonable requirements to
4 ensure that the tax notices are mailed to the proper party on
5 time. The trustee or vendee shall submit the written request
6 annually by a date determined by the tax collector.
7 (2) On or before May 1 of each year, the holder or
8 mortgagee of an unsatisfied mortgage, lienholder, or vendee
9 under a contract for deed, upon filing with the tax collector
10 a description of land so encumbered by a recorded mortgage and
11 paying a service charge of $2, may request and receive
12 information concerning any delinquent taxes appearing on the
13 current tax roll and certificates issued on the described
14 mortgaged land. Upon receipt of such request, the tax
15 collector shall furnish the following information to the
16 mortgagee within 60 days following the tax certificate sale:
17 (a) The description of property on which certificates
18 were sold as requested by the mortgagee.
19 (b) The number of each certificate issued and to whom.
20 (c) The face amount of each certificate.
21 (d) The cost for redemption of each certificate.
22 Section 10. Subsection (1) of section 197.413, Florida
23 Statutes, is amended to read:
24 197.413 Delinquent personal property taxes; warrants;
25 court order for levy and seizure of personal property;
26 seizure; fees of tax collectors.--
27 (1) Prior to May 1 of each year immediately following
28 the year of assessment, the tax collector shall prepare a list
29 of the unpaid personal property taxes containing the names and
30 addresses of the taxpayers and the property subject to the tax
31 as the same appear on the tax roll. Prior to April 30 of the
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1 next year, the tax collector shall prepare warrants against
2 the delinquent taxpayers providing for the levy upon, and
3 seizure of, tangible personal property. The cost of
4 advertising delinquent tax shall be added to the delinquent
5 taxes at the time of advertising. The tax collector is not
6 required to issue warrants if delinquent taxes are less than
7 $50. However, such taxes shall remain due and payable.
8 Section 11. Subsection (6) of section 197.432, Florida
9 Statutes, is amended to read:
10 197.432 Sale of tax certificates for unpaid taxes.--
11 (6) The tax collector shall require immediate payment
12 of a reasonable deposit from any person who wishes to bid for
13 a tax certificate to whom a certificate may be struck off, and
14 the failure to pay such deposit shall cause the bid to be
15 canceled. A person who fails or refuses to pay any bid made
16 by, or on behalf of, him or her is not entitled to bid or have
17 any other bid accepted or enforced by the tax collector until
18 a new deposit of 100 percent of the amount of estimated
19 purchases has been paid to the tax collector. When tax
20 certificates are ready for issuance, the tax collector shall
21 notify each person to whom a certificate was struck off that
22 the certificate is ready for issuance and payment must be made
23 within 48 hours from the mailing of such notice or the deposit
24 shall be forfeited and the bid canceled. In any event,
25 payment shall be made before delivery of the certificate by
26 the tax collector.
27 Section 12. Section 197.4325, Florida Statutes, is
28 created to read:
29 197.4325 Procedure when checks received for payment of
30 taxes or tax certificates are dishonored.--
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1 (1)(a) Within 10 days after a check received by the
2 tax collector for payment of taxes is dishonored, the tax
3 collector shall notify the maker of the check that the check
4 has been dishonored. The tax collector shall cancel the
5 official receipt issued for the dishonored check and shall
6 make an entry on the tax roll that the receipt was canceled
7 because of a dishonored check. Where practicable, the tax
8 collector shall make a reasonable effort to collect the moneys
9 due before canceling the receipt.
10 (b) The tax collector shall retain a copy of the
11 canceled tax receipt and the dishonored check for the period
12 of time required by law.
13 (2)(a) When a check received by the tax collector for
14 the purchase of a tax certificate is dishonored and the
15 certificate has not been delivered to the bidder, the tax
16 collector shall retain the deposit and resell the tax
17 certificate. If the certificate has been delivered to the
18 bidder, the tax collector shall notify the department, and,
19 upon approval by the department, the certificate shall be
20 canceled and resold.
21 (b) When a bidder's deposit is forfeited the tax
22 collector shall retain the deposit and resell the tax
23 certificate.
24 1. If the tax certificate sale has adjourned, the tax
25 collector shall readvertise the tax certificate to be resold.
26 When the bidder's deposit is forfeited and the certificate is
27 readvertised, the deposit shall be used to pay the advertising
28 fees before other costs or charges are imposed. Any portion of
29 the bidder's forfeit deposit that remains after advertising
30 and other costs or charges have been paid shall be deposited
31 by the tax collector into his or her official office account.
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1 If the tax collector fails to require a deposit and tax
2 certificates are resold, the advertising charges required for
3 the second sale shall not be added to the face value of the
4 tax certificate.
5 2. If the tax certificate sale has not been adjourned,
6 the tax collector shall add the certificates to be resold to
7 the sale list and continue the sale until all tax certificates
8 are sold.
9 Section 13. Subsection (2) of section 197.443, Florida
10 Statutes, is amended to read:
11 197.443 Cancellation of void tax certificates;
12 correction of tax certificates; procedure.--
13 (2)(a) The holder of a tax certificate who pays,
14 redeems, or causes to be corrected or to be canceled and
15 surrendered by any other tax certificates, or pays any
16 subsequent and omitted taxes or costs, in connection with the
17 foreclosure of a tax certificate or tax deed, and when such
18 other certificates or such subsequent and omitted taxes are
19 void or corrected for any reason, the person paying,
20 redeeming, or causing to be corrected or to be canceled and
21 surrendered the other tax certificates or paying the other
22 subsequent and omitted taxes is entitled to obtain the return
23 of the amount paid therefor.
24 (b) The county officer or taxing authority, as the
25 case may be, which causes an error that results in the
26 issuance of a void tax certificate shall be charged for the
27 costs of advertising incurred in the sale of the tax
28 certificate.
29 (c) When the owner of a tax certificate requests that
30 the certificate be canceled for any reason but does not seek a
31 refund, the tax collector shall cancel the tax certificate and
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1 a refund shall not be processed. The tax collector shall
2 require the owner of the tax certificate to execute a written
3 statement that he or she is the holder of the tax certificate,
4 that he or she wishes the certificate to be canceled, and that
5 a refund is not expected and is not to be made.
6 Section 14. Subsection (1) of section 197.542, Florida
7 Statutes, is amended to read:
8 197.542 Sale at public auction.--
9 (1) The lands advertised for sale to the highest
10 bidder as a result of an application filed under s. 197.502
11 shall be sold at public auction by the clerk of the circuit
12 court, or his or her deputy, of the county where the lands are
13 located on the date, at the time, and at the location as set
14 forth in the published notice, which shall be during the
15 regular hours the clerk's office is open. At the time and
16 place, the clerk shall read the notice of sale and shall offer
17 the lands described in the notice for sale to the highest
18 bidder for cash at public outcry. The amount required to
19 redeem the tax certificate, plus the amounts paid by the
20 holder to the clerk of the circuit court in charges for costs
21 of sale, redemption of other tax certificates on the same
22 lands, and all other costs to the applicant for tax deed, plus
23 interest thereon at the rate of 1.5 percent per month for the
24 period running from the month after the date of application
25 for the deed through the month of sale and costs incurred for
26 the service of notice provided for in s. 197.522(2), shall be
27 considered the bid of the certificateholder for the property.
28 However, if the land to be sold is assessed on the latest tax
29 roll as homestead property, the bid of the certificateholder
30 shall be increased to include an amount equal to one-half of
31 the assessed value of the homestead property as required by s.
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1 197.502. If there are no higher bids, the land shall be
2 struck off and sold to the certificateholder. If there are
3 other bids, the certificateholder shall have the right to bid
4 as others present may bid, and the property shall be struck
5 off and sold to the highest bidder. The clerk may refuse to
6 recognize the bid of any person who has previously bid and
7 refused, for any reason, to honor such bid.
8 Section 15. Subsection (5) of section 199.052, Florida
9 Statutes, is amended to read:
10 199.052 Annual tax returns; payment of annual tax.--
11 (5) The trustee of a Florida-situs trust is primarily
12 responsible for returning the trust's intangible personal
13 property and paying the annual tax on it.
14 (a) A trust has a Florida situs when:
15 1. All trustees are residents of the state; or
16 2. There are three or more trustees sharing equally in
17 the ownership, management, or control of the trust's
18 intangible property, and the majority of the trustees are
19 residents of this state; or
20 3. Trustees are both residents and nonresidents and
21 management or control of the trust is with the Florida
22 trustee.
23 (b) When trustees are both residents and nonresidents,
24 and management or control is with an out-of-state trustee, the
25 trust does not have a Florida situs and no return is necessary
26 by the Florida trustee.
27 (c) A portion of the trust has Florida situs when
28 there are two trustees, one a resident of this state and one a
29 nonresident, and they share equally in the ownership,
30 management, or control of the trust's intangible property. The
31
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1 tax on such property shall be based on the value apportioned
2 between them.
3 (d) If there is more than one trustee in the state,
4 only one tax return for the trust must be filed.
5 (e) The trust's beneficiaries, however, may
6 individually return their equitable shares of the trust's
7 intangible personal property and pay the tax on such shares,
8 in which case the trustee need not return such property or pay
9 such tax, although the department may require the trustee to
10 file an informational return.
11 Section 16. Paragraph (c) of subsection (14) and
12 subsections (16) and (20) of section 212.02, Florida Statutes,
13 are amended, and subsections (27), (28), (29), (30), and (31)
14 are added to said section, to read:
15 212.02 Definitions.--The following terms and phrases
16 when used in this chapter have the meanings ascribed to them
17 in this section, except where the context clearly indicates a
18 different meaning:
19 (14)
20 (c) "Retail sales," "sale at retail," "use,"
21 "storage," and "consumption" do not include materials,
22 containers, labels, sacks, or bags, or similar items intended
23 to accompany a product sold to a customer without which
24 delivery of the product would be impracticable because of the
25 character of the contents, and intended to be used one time
26 only for packaging tangible personal property for sale or for
27 the convenience of the customer or for packaging in the
28 process of providing a service taxable under this chapter.
29 When a separate charge for packaging materials is made, the
30 charge shall be considered part of the sales price or rental
31 charge for purposes of determining the applicability of tax.
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1 The terms also and do not include the sale, use, storage, or
2 consumption of industrial materials, including chemicals and
3 fuels except as provided herein, for future processing,
4 manufacture, or conversion into articles of tangible personal
5 property for resale when such industrial materials, including
6 chemicals and fuels except as provided herein, become a
7 component or ingredient of the finished product. However, the
8 said terms include the sale, use, storage, or consumption of
9 tangible personal property, including machinery and equipment
10 or parts thereof, purchased electricity, and fuels used to
11 power machinery, when such said items are used and dissipated
12 in fabricating, converting, or processing tangible personal
13 property for sale, even though they may become ingredients or
14 components of the tangible personal property for sale through
15 accident, wear, tear, erosion, corrosion, or similar means.
16 (16) "Sales price" means the total amount paid for
17 tangible personal property, including any services that are a
18 part of the sale, valued in money, whether paid in money or
19 otherwise, and includes any amount for which credit is given
20 to the purchaser by the seller, without any deduction
21 therefrom on account of the cost of the property sold, the
22 cost of materials used, labor or service cost, interest
23 charged, losses, or any other expense whatsoever. "Sales
24 price" also includes the consideration for a transaction which
25 requires both labor and material to alter, remodel, maintain,
26 adjust, or repair tangible personal property. Trade-ins or
27 discounts allowed and taken at the time of sale shall not be
28 included within the purview of this subsection. "Sales price"
29 also includes the full face value of any coupon used by a
30 purchaser to reduce the price paid to a retailer for an item
31 of tangible personal property; where the retailer will be
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1 reimbursed for such coupon, in whole or in part, by the
2 manufacturer of the item of tangible personal property; or
3 whenever it is not practicable for the retailer to determine,
4 at the time of sale, the extent to which reimbursement for the
5 coupon will be made. "Sales price" does not include federal
6 excise taxes imposed upon the retailer on the sale of tangible
7 personal property. "Sales price" does include federal
8 manufacturers' excise taxes, even if the federal tax is listed
9 as a separate item on the invoice.
10 (20) "Use" means and includes the exercise of any
11 right or power over tangible personal property incident to the
12 ownership thereof, or interest therein, except that it does
13 not include the sale at retail of that property in the regular
14 course of business. "Use" does not include the loan of an
15 automobile by a motor vehicle dealer to a high school for use
16 in its driver education and safety program.
17 (27) "Itinerant merchant" means any person, as defined
18 in this chapter, who solicits, engages in, transacts, or
19 offers for sale any new or used merchandise either in one
20 location or while traveling from place to place in this state,
21 who does not intend to become or who does not become a
22 permanent merchant at any one location, and who for the
23 purpose of transacting such business rents, hires, leases,
24 occupies, or uses any building, structure, lot, tract, motor
25 vehicle, sample case, display case, or any portion thereof,
26 for the exhibition and sale of goods, wares, or merchandise.
27 Flea market vendors are included within this definition.
28 However, "itinerant merchant" does not mean any person who
29 occasionally sells tangible personal property from his or her
30 place of residence, if the person does not hold himself or
31
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1 herself out as engaged in business and if the person does not
2 conduct more than two sales events per calendar year.
3 (28) "Flea market operator, manager, lessor, or owner"
4 means any person who provides space to flea market vendors.
5 (29) "Agricultural commodity" means horticultural,
6 aquacultural, poultry, and farm products, and livestock and
7 livestock products.
8 (30) "Farmer" means a person directly engaged in the
9 business of producing crops, livestock, or other farm
10 products. The term includes, but is not limited to, horse
11 breeders, nurserymen, dairymen, poultrymen, cattle ranchers,
12 apiarists, and persons raising fish.
13 (31) "Livestock" includes all animals of the equine,
14 bovine, or swine class, including goats, sheep, mules, horses,
15 hogs, cattle, ostriches, and other grazing animals raised for
16 commercial purposes. "Livestock" also includes fish raised for
17 commercial purposes.
18 Section 17. Paragraph (c) of subsection (7) of section
19 212.03, Florida Statutes, is amended to read:
20 212.03 Transient rentals tax; rate, procedure,
21 enforcement, exemptions.--
22 (7)
23 (c) The rental of facilities, as defined in s.
24 212.02(10)(f), except mobile home lots regulated under chapter
25 723, which are intended primarily for rental as a principal or
26 permanent place of residence is exempt from the tax imposed by
27 this chapter. The rental of such facilities that primarily
28 serve transient guests is not exempt by this subsection. In
29 the application of this law, or in making any determination
30 against the exemption, the department shall consider the
31 facility as primarily serving transient guests unless the
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1 facility owner makes a verified declaration on a form
2 prescribed by the department that more than half of the total
3 rental units available are occupied by tenants who have a
4 continuous residence in excess of 3 months. The owner of a
5 facility declared to be exempt by this paragraph must make a
6 determination of the taxable status of the facility at the end
7 of the owner's accounting year using any consecutive 3-month
8 period. The owner must use a selected consecutive 3-month
9 period during each annual redetermination. In the event that
10 an exempt facility no longer qualifies for exemption by this
11 paragraph, the owner must notify the department on a form
12 prescribed by the department by the 20th day of the first
13 month of the owner's next succeeding accounting year that the
14 facility no longer qualifies for such exemption. The tax
15 levied by this section shall apply to the rental of facilities
16 that no longer qualify for exemption under this paragraph
17 beginning the first day of the owner's next succeeding
18 accounting year.
19 Section 18. Paragraph (b) of subsection (1) of section
20 212.031, Florida Statutes, is amended, and subsections (7) and
21 (8) are added to said section, to read:
22 212.031 Lease or rental of or license in real
23 property.--
24 (1)
25 (b) When a lease involves multiple use of real
26 property wherein a part of the real property is subject to the
27 tax herein, and a part of the property would be excluded from
28 the tax under subparagraph (a)1., subparagraph (a)2., or
29 subparagraph (a)3., the department shall determine, from the
30 lease or license and such other information as may be
31 available, that portion of the total rental charge which is
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1 exempt from the tax imposed by this section. The portion of
2 the premises leased or rented by a for-profit entity providing
3 a residential facility for the aged is exempt on the basis of
4 a pro rata portion calculated by combining the square footage
5 of the areas used for residential units by the aged and for
6 the care of such residents and dividing the resultant sum by
7 the total square footage of the rented premises. For purposes
8 of this section, a "residential facility for the aged" is a
9 facility that is licensed or certified in whole or in part
10 under chapter 400 or chapter 651; or that provides residences
11 to the elderly and is financed by a mortgage or loan made or
12 insured by the United States Department of Housing and Urban
13 Development under s. 202, s. 202 with a s. 8 subsidy, s.
14 221(d)(3) or (4), s. 232, or s. 236 of the National Housing
15 Act; or other such similar facility which provides residences
16 primarily for the elderly.
17 (7) Utility charges subject to sales tax which are
18 paid by a tenant to the lessor and which are part of a payment
19 for the privilege or right to use or occupy real property are
20 exempt from tax if the lessor has paid sales tax on the
21 purchase of such utilities and the charges billed by the
22 lessor to the tenant are separately stated and at the same or
23 a lower price than those paid by the lessor.
24 (8) Charges by lessors to a lessee to cancel or
25 terminate a lease agreement are presumed taxable if the lessor
26 records such charges as rental income in its books and
27 records. This presumption can be overcome by the provision of
28 sufficient documentation by either the lessor or the lessee
29 that such charges were other than for the rental of real
30 property.
31
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1 Section 19. Paragraph (d) of subsection (1) and
2 paragraph (a) of subsection (2) of section 212.04, Florida
3 Statutes, are amended to read:
4 212.04 Admissions tax; rate, procedure, enforcement.--
5 (1)
6 (d) No additional tax is due on components an
7 admission if the admission is incorporated as part of a
8 package sold by a travel agent; if the package includes two or
9 more components such as admissions, and transient rentals,
10 transportation, or meals; if all of the components were
11 purchased by the travel agent from other parties and any sales
12 tax due on such purchases was paid; and if there is no
13 separate itemization of the admission, transient rental,
14 transportation, or meal, or other components in the sales
15 price of the package. This paragraph does not apply if the
16 actual price charged for a component the admission by the
17 dealer to a travel agent is less than the price charged to
18 unrelated parties under normal industry practices and the
19 dealer and the travel agent are members of the same controlled
20 group of corporations for federal income tax purposes.
21 (2)(a)1. No tax shall be levied on admissions to
22 athletic or other events sponsored by elementary schools,
23 junior high schools, middle schools, high schools, community
24 colleges, public or private colleges and universities, deaf
25 and blind schools, facilities of the youth services programs
26 of the Department of Children and Family Services, and state
27 correctional institutions when only student, faculty, or
28 inmate talent is used. However, this exemption shall not apply
29 to admission to athletic events sponsored by an institution
30 within the State University System, and the proceeds of the
31 tax collected on such admissions shall be retained and used by
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1 each institution to support women's athletics as provided in
2 s. 240.533(3)(c).
3 2.a. No tax shall be levied on dues, membership fees,
4 and admission charges imposed by not-for-profit sponsoring
5 organizations. To receive this exemption, the sponsoring
6 organization must qualify as a not-for-profit entity under the
7 provisions of s. 501(c)(3) of the Internal Revenue Code of
8 1954, as amended.
9 b. No tax imposed by this section and not actually
10 collected before August 1, 1992, shall be due from any museum
11 or historic building owned by any political subdivision of the
12 state.
13 3. No tax shall be levied on an admission paid by a
14 student, or on the student's behalf, to any required place of
15 sport or recreation if the student's participation in the
16 sport or recreational activity is required as a part of a
17 program or activity sponsored by, and under the jurisdiction
18 of, the student's educational institution, provided his or her
19 attendance is as a participant and not as a spectator.
20 4. No tax shall be levied on admissions to the
21 National Football League championship game.
22 5. A participation fee or sponsorship fee imposed by a
23 governmental entity as described in s. 212.08(6) for an
24 athletic or recreational program is exempt when the
25 governmental entity by itself, or in conjunction with an
26 organization exempt under s. 501(c)(3) of the Internal Revenue
27 Code of 1954, as amended, sponsors, administers, plans,
28 supervises, directs, and controls the athletic or recreational
29 program.
30 6. Also exempt from the tax imposed by this section to
31 the extent provided in this subparagraph are admissions to
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1 live theater, live opera, or live ballet productions in this
2 state which are sponsored by an organization that has received
3 a determination from the Internal Revenue Service that the
4 organization is exempt from federal income tax under s.
5 501(c)(3) of the Internal Revenue Code of 1954, as amended, if
6 the organization actively participates in planning and
7 conducting the event, is responsible for the safety and
8 success of the event, is organized for the purpose of
9 sponsoring live theater, live opera, or live ballet
10 productions in this state, has more than 10,000 subscribing
11 members and has among the stated purposes in its charter the
12 promotion of arts education in the communities which it
13 serves, and will receive at least 20 percent of the net
14 profits, if any, of the events which the organization sponsors
15 and will bear the risk of at least 20 percent of the losses,
16 if any, from the events which it sponsors if the organization
17 employs other persons as agents to provide services in
18 connection with a sponsored event. Prior to March 1 of each
19 year, such organization may apply to the department for a
20 certificate of exemption for admissions to such events
21 sponsored in this state by the organization during the
22 immediately following state fiscal year. The application shall
23 state the total dollar amount of admissions receipts collected
24 by the organization or its agents from such events in this
25 state sponsored by the organization or its agents in the year
26 immediately preceding the year in which the organization
27 applies for the exemption. Such organization shall receive the
28 exemption only to the extent of $1.5 million multiplied by the
29 ratio that such receipts bear to the total of such receipts of
30 all organizations applying for the exemption in such year;
31 however, in no event shall such exemption granted to any
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1 organization exceed 6 percent of such admissions receipts
2 collected by the organization or its agents in the year
3 immediately preceding the year in which the organization
4 applies for the exemption. Each organization receiving the
5 exemption shall report each month to the department the total
6 admissions receipts collected from such events sponsored by
7 the organization during the preceding month and shall remit to
8 the department an amount equal to 6 percent of such receipts
9 reduced by any amount remaining under the exemption. Tickets
10 for such events sold by such organizations shall not reflect
11 the tax otherwise imposed under this section.
12 7. Also exempt from the tax imposed by this section
13 are entry fees for participation in freshwater fishing
14 tournaments.
15 8. Also exempt from the tax imposed by this section
16 are participation or entry fees charged to participants in a
17 game, race, or other sport or recreational event if spectators
18 are charged a taxable admission to such event.
19 Section 20. Paragraphs (a), (b), (c), and (h) of
20 subsection (1) of section 212.05, Florida Statutes, are
21 amended, and paragraphs (m) and (n) are added to said
22 subsection, to read:
23 212.05 Sales, storage, use tax.--It is hereby declared
24 to be the legislative intent that every person is exercising a
25 taxable privilege who engages in the business of selling
26 tangible personal property at retail in this state, including
27 the business of making mail order sales, or who rents or
28 furnishes any of the things or services taxable under this
29 chapter, or who stores for use or consumption in this state
30 any item or article of tangible personal property as defined
31 herein and who leases or rents such property within the state.
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1 (1) For the exercise of such privilege, a tax is
2 levied on each taxable transaction or incident, which tax is
3 due and payable as follows:
4 (a)1.a. At the rate of 6 percent of the sales price of
5 each item or article of tangible personal property when sold
6 at retail in this state, computed on each taxable sale for the
7 purpose of remitting the amount of tax due the state, and
8 including each and every retail sale.
9 b. Each occasional or isolated sale of an aircraft,
10 boat, mobile home, or motor vehicle of a class or type which
11 is required to be registered, licensed, titled, or documented
12 in this state or by the United States Government shall be
13 subject to tax at the rate provided in this paragraph. The
14 department shall by rule adopt any nationally recognized
15 publication for valuation of used motor vehicles as the
16 reference price list for any used motor vehicle which is
17 required to be licensed pursuant to s. 320.08(1), (2), (3)(a),
18 (b), (c), or (e), or (9). If any party to an occasional or
19 isolated sale of such a vehicle reports to the tax collector a
20 sales price which is less than 80 percent of the average loan
21 price for the specified model and year of such vehicle as
22 listed in the most recent reference price list, the tax levied
23 under this paragraph shall be computed by the department on
24 such average loan price unless the parties to the sale have
25 provided to the tax collector an affidavit signed by each
26 party, or other substantial proof, stating the actual sales
27 price. Any party to such sale who reports a sales price less
28 than the actual sales price is guilty of a misdemeanor of the
29 first degree, punishable as provided in s. 775.082 or s.
30 775.083. The department shall collect or attempt to collect
31 from such party any delinquent sales taxes. In addition, such
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1 party shall pay any tax due and any penalty and interest
2 assessed plus a penalty equal to twice the amount of the
3 additional tax owed. Notwithstanding any other provision of
4 law, the Department of Revenue may waive or compromise any
5 penalty imposed pursuant to this subparagraph.
6 2. This paragraph does not apply to the sale of a boat
7 or airplane by or through a registered dealer under this
8 chapter to a purchaser who, at the time of taking delivery, is
9 a nonresident of this state, does not make his or her
10 permanent place of abode in this state, and is not engaged in
11 carrying on in this state any employment, trade, business, or
12 profession in which the boat will be used in this state, or is
13 a corporation none of the officers or directors of which is a
14 resident of, or makes his or her permanent place of abode in,
15 this state, or is a noncorporate entity which has no
16 individual vested with authority to participate in the
17 management, direction, or control of the entity's affairs who
18 is a resident of, or makes his or her permanent place of abode
19 in, this state. For purposes of this exemption, either a
20 registered dealer acting on his or her own behalf as seller, a
21 registered dealer acting as broker on behalf of a seller, or a
22 registered dealer acting as broker on behalf of the purchaser
23 may be deemed to be the selling dealer. This exemption shall
24 not be allowed unless:
25 a. The purchaser removes a qualifying boat, as
26 described in sub-subparagraph f., from the state within 90
27 days after the date of purchase or the purchaser removes a
28 nonqualifying boat or an airplane from this state within 10
29 days after the date of purchase or, when the boat or airplane
30 is repaired or altered, within 20 days after completion of the
31 repairs or alterations;
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1 b. The purchaser, within 30 days from the date of
2 departure, shall provide the department with written proof
3 that the purchaser licensed, registered, titled, or documented
4 the boat or airplane outside the state. If such written proof
5 is unavailable, within 30 days the purchaser shall provide
6 proof that the purchaser applied for such license, title,
7 registration, or documentation. The purchaser shall forward
8 to the department proof of title, license, registration, or
9 documentation upon receipt.
10 c. The purchaser, within 10 days of removing the boat
11 or airplane from Florida, shall furnish the department with
12 proof of removal in the form of receipts for fuel, dockage,
13 slippage, tie-down, or hangaring from outside of Florida. The
14 information so provided must clearly and specifically identify
15 the boat or aircraft;
16 d. The selling dealer, within 5 days of the date of
17 sale, shall provide to the department a copy of the sales
18 invoice, closing statement, bills of sale, and the original
19 affidavit signed by the purchaser attesting that he or she has
20 read the provisions of this section;
21 e. The seller makes a copy of the affidavit a part of
22 his or her record for as long as required by s. 213.35; and
23 f. Unless the nonresident purchaser of a boat of 5 net
24 tons of admeasurement or larger intends to remove the boat
25 from this state within 10 days after the date of purchase or
26 when the boat is repaired or altered, within 20 days after
27 completion of the repairs or alterations, the nonresident
28 purchaser shall apply to the selling dealer for a decal which
29 authorizes 90 days after the date of purchase for removal of
30 the boat. The department is authorized to issue decals in
31 advance to dealers. The number of decals issued in advance to
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1 a dealer shall be consistent with the volume of the dealer's
2 past sales of boats which qualify under this sub-subparagraph.
3 The selling dealer or his or her agent shall mark and affix
4 the decals to qualifying boats in the manner prescribed by the
5 department, prior to delivery of the boat.
6 (I) The department is hereby authorized to charge
7 dealers a fee sufficient to recover the costs of decals
8 issued.
9 (II) The proceeds from the sale of decals will be
10 deposited into the administrative trust fund.
11 (III) Decals shall display information to identify the
12 boat as a qualifying boat under this sub-subparagraph,
13 including, but not limited to, the decal's date of expiration.
14 (IV) The department is authorized to require dealers
15 who purchase decals to file reports with the department and
16 may prescribe all necessary records by rule. All such records
17 are subject to inspection by the department.
18 (V) Any dealer or his or her agent who issues a decal
19 falsely, fails to affix a decal, mismarks the expiration date
20 of a decal, or fails to properly account for decals will be
21 considered prima facie to have committed a fraudulent act to
22 evade the tax and will be liable for payment of the tax plus a
23 mandatory penalty of 200 percent of the tax, and shall be
24 liable for fine and punishment as provided by law for a
25 conviction of a misdemeanor of the first degree, as provided
26 in s. 775.082 or s. 775.083.
27 (VI) Any nonresident purchaser of a boat who removes a
28 decal prior to permanently removing the boat from the state,
29 or defaces, changes, modifies, or alters a decal in a manner
30 affecting its expiration date prior to its expiration, or who
31 causes or allows the same to be done by another, will be
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1 considered prima facie to have committed a fraudulent act to
2 evade the tax and will be liable for payment of the tax plus a
3 mandatory penalty of 200 percent of the tax, and shall be
4 liable for fine and punishment as provided by law for a
5 conviction of a misdemeanor of the first degree, as provided
6 in s. 775.082 or s. 775.083.
7 (VII) The department is authorized to adopt rules
8 necessary to administer and enforce this subparagraph and to
9 publish the necessary forms and instructions.
10 (VIII) The department is hereby authorized to adopt
11 emergency rules pursuant to s. 120.54(4) to administer and
12 enforce the provisions of this subparagraph.
13
14 If the purchaser fails to remove the qualifying boat from this
15 state within 90 days after purchase or a nonqualifying boat or
16 an airplane from this state within 10 days after purchase or,
17 when the boat or airplane is repaired or altered, within 20
18 days after completion of such repairs or alterations, or
19 permits the boat or airplane to return to this state within 6
20 months from the date of departure, or if the purchaser fails
21 to furnish the department with any of the documentation
22 required by this subparagraph within the prescribed time
23 period, the purchaser shall be liable for use tax on the cost
24 price of the boat or airplane and, in addition thereto,
25 payment of a penalty to the Department of Revenue equal to the
26 tax payable. This penalty shall be in lieu of the penalty
27 imposed by s. 212.12(2) and is mandatory and shall not be
28 waived by the department. The 90-day period following the
29 sale of a qualifying boat tax exempt to a nonresident may not
30 be tolled for any reason. Notwithstanding other provisions of
31 this paragraph to the contrary, an aircraft purchased in this
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1 state under the provisions of this paragraph may be returned
2 to this state for repairs within 6 months after the date of
3 its departure without being in violation of the law and
4 without incurring liability for the payment of tax or penalty
5 on the purchase price of the aircraft if the aircraft is
6 removed from this state within 20 days after the completion of
7 the repairs and if such removal can be demonstrated by
8 invoices for fuel, tie-down, hangar charges issued by
9 out-of-state vendors or suppliers, or similar documentation.
10 (b) At the rate of 6 percent of the cost price of each
11 item or article of tangible personal property when the same is
12 not sold but is used, consumed, distributed, or stored for use
13 or consumption in this state; however, for tangible property
14 originally purchased exempt from tax for use exclusively for
15 lease and which is converted to the owner's own use, tax may
16 be paid on the fair market value of the property at the time
17 of conversion. If the fair market value of the property cannot
18 be determined, use tax at the time of conversion shall be
19 based on the owner's acquisition cost. Under no circumstances
20 may the aggregate amount of sales tax from leasing the
21 property and use tax due at the time of conversion be less
22 than the total sales tax that would have been due on the
23 original acquisition cost paid by the owner.
24 (c) At the rate of 6 percent of the gross proceeds
25 derived from the lease or rental of tangible personal
26 property, as defined herein; however, the following special
27 provisions apply to the lease or rental of motor vehicles:
28 1. When a motor vehicle is leased or rented for a
29 period of less than 12 months:
30
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1 a. If the motor vehicle is rented in Florida, the
2 entire amount of such rental is taxable, even if the vehicle
3 is dropped off in another state.
4 b. If the motor vehicle is rented in another state and
5 dropped off in Florida, the rental is exempt from Florida tax.
6 2. Except as provided in subparagraph 3., for the
7 lease or rental of a motor vehicle for 12 months or more,
8 sales tax is due on the lease or rental payment if the vehicle
9 is registered in this state; however, no tax shall be due if
10 the taxpayer documents that the motor vehicle is being used
11 outside of this state and sales tax is being paid on the lease
12 or rental payments to another state.
13 3. The tax imposed by this chapter does not apply to,
14 except the lease or rental of a commercial motor vehicle as
15 defined in s. 316.003(66)(a) to one lessee or rentee for a
16 period of not less than 12 months when Florida tax was paid on
17 the acquisition of such vehicle by the lessor, when the lease
18 or rental of such property is an established business or part
19 of an established business or the same is incidental or
20 germane to such business. The provisions of s. 212.06(7) shall
21 apply with respect to credit for tax paid with respect to the
22 acquisition of such a commercial motor vehicle in another
23 state.
24 (h)1. At the rate of 6 percent on the retail price of
25 newspapers and magazines sold or used in Florida.
26 2. Notwithstanding other provisions of this chapter,
27 inserts of printed materials which are distributed with a
28 newspaper or magazine are a component part of the newspaper or
29 magazine and neither the sale nor use of such inserts is
30 subject to tax when:
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1 a. Printed by a newspaper or magazine publisher or
2 commercial printer and distributed as a component part of a
3 newspaper or magazine, which means that the items after being
4 printed are delivered directly to a newspaper or magazine
5 publisher by the printer for inclusion in editions of the
6 distributed newspaper or magazine;
7 b. Such publications are labeled as part of the
8 designated newspaper or magazine publication into which they
9 are to be inserted; and
10 c. The purchaser of the insert presents a resale
11 certificate to the vendor stating that the inserts are to be
12 distributed as a component part of a newspaper or magazine.
13 (m) Florists located in this state are liable for
14 sales tax on sales to retail customers regardless of where or
15 by whom the items sold are to be delivered. Florists located
16 in this state are not liable for sales tax on payments
17 received from other florists for items delivered to customers
18 in this state.
19 (n) Operators of game concessions or other
20 concessionaires who customarily award tangible personal
21 property as prizes may, in lieu of paying tax on the cost
22 price of such property, pay tax on 25 percent of the gross
23 receipts from such concession activity.
24 Section 21. Subsection (8) of section 212.0506,
25 Florida Statutes, is amended, subsection (10) is renumbered as
26 subsection (11), and a new subsection (10) is added to said
27 section, to read:
28 212.0506 Taxation of service warranties.--
29 (8) If a transaction involves both the issuance of a
30 service warranty which is subject to such tax and the issuance
31 of a warranty, guaranty, extended warranty or extended
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1 guaranty, contract, agreement, or other written promise which
2 is not subject to such tax, the consideration shall be
3 separately identified and stated with respect to the taxable
4 and nontaxable portions of the transaction. If the
5 consideration is separately apportioned and identified in good
6 faith, such tax shall apply to the transaction to the extent
7 that the consideration received or to be received in
8 connection with the transaction is payment for a service
9 warranty subject to such tax. If the consideration is not
10 apportioned in good faith, the department may reform the
11 contract. Such reformation by the department shall be
12 considered prima facie correct, and the burden to show the
13 contrary rests upon the dealer. If the consideration for such
14 a transaction is not separately identified and stated, the
15 entire transaction is taxable.
16 (10) Materials and supplies used in the performance of
17 a factory or manufacturer's warranty are exempt if the
18 contract is furnished at no extra charge with the equipment
19 guaranteed thereunder and such materials and supplies are paid
20 for by the factory or manufacturer.
21 Section 22. Subsections (1), (2), (3), and (6) of
22 section 212.0515, Florida Statutes, are amended to read:
23 212.0515 Sales from vending machines; sales to vending
24 machine operators; special provisions; registration; quarterly
25 reports; penalties.--
26 (1) As used in this section:
27 (a) "Vending machine" means a machine, operated by
28 coin, currency, credit card, slug, token, coupon, or similar
29 device, which dispenses food, beverages, or other or beverage
30 items of tangible personal property.
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1 (b) "Operator" means any person who possesses a
2 vending machine for the purpose of generating sales through
3 that machine and who maintains the inventory in and removes
4 the receipts from that vending machine.
5 (2) Notwithstanding any other provision of law, the
6 amount of the tax to be paid on food, beverages, or other and
7 beverage items of tangible personal property that are sold in
8 vending machines shall be calculated by dividing the gross
9 receipts from such sales for the applicable reporting period
10 by a divisor, determined as provided in this subsection, to
11 compute gross taxable sales, and then subtracting gross
12 taxable sales from gross receipts to arrive at the amount of
13 tax due. The divisor shall be equal to the sum of 1.0665 for
14 beverage items, or 1.0645 for food items, or 1.0659 for other
15 items of tangible personal property, except that for counties
16 with a 0.5 percent sales surtax rate the divisor shall be
17 equal to the sum of 1.0707 for beverages and other beverage
18 items of tangible personal property or 1.0686 for food items,
19 for counties with a 1 percent sales surtax rate the divisor
20 shall be equal to the sum of 1.0749 for beverages and other
21 beverage items of tangible personal property or 1.0726 for
22 food items, and for counties with a 1.5 percent sales surtax
23 rate the divisor shall be equal to the sum of 1.0791 for
24 beverages and other beverage items of tangible personal
25 property or 1.0767 for food items. However, the amount of the
26 tax to be paid on natural fluid milk, homogenized milk,
27 pasteurized milk, whole milk, chocolate milk, or similar milk
28 products, natural fruit juices, or natural vegetable juices
29 shall be calculated using the divisor that is specified for
30 food items. If an operator cannot account for each type of
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1 item sold through a vending machine, the highest tax rate
2 shall be used for all products sold through that machine.
3 (3)(a) An operator of a vending machine may not
4 operate or cause to be operated in this state any vending
5 machine until the operator has registered with the department,
6 has obtained a separate registration certificate for each
7 county in which such machines are located, and has affixed a
8 notice to each vending machine selling food or beverages which
9 states the operator's name, address, and Federal Employer
10 Identification (FEI) number. If the operator is not required
11 to have an FEI number, the notice shall include the operator's
12 sales tax registration number. The notice must be
13 conspicuously displayed on the vending machine when it is
14 being operated in this state and shall contain the following
15 language in conspicuous type: NOTICE TO CUSTOMER: FLORIDA LAW
16 REQUIRES THIS NOTICE TO BE POSTED ON ALL FOOD AND BEVERAGE
17 VENDING MACHINES. REPORT ANY MACHINE WITHOUT A NOTICE TO
18 (TOLL-FREE NUMBER). YOU MAY BE ELIGIBLE FOR A CASH REWARD.
19 (b) The department shall establish a toll-free number
20 to report any violations of this section. Upon a
21 determination that a violation has occurred, the department
22 shall pay the informant a reward of up to 10 percent of
23 previously unpaid taxes recovered as a result of the
24 information provided. A person who receives information
25 concerning a violation of this section from an employee as
26 specified in s. 213.30 is not eligible for a cash reward.
27 (6) The provisions of this section do not apply to
28 vending machines owned and operated by churches, or
29 synagogues, or nonprofit or charitable organizations exempt
30 pursuant to s. 212.08(7)(z).
31
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1 Section 23. Paragraph (b) of subsection (2) of section
2 212.054, Florida Statutes, is amended to read:
3 212.054 Discretionary sales surtax; limitations,
4 administration, and collection.--
5 (2)
6 (b) However:
7 1. The tax on any sales amount above $5,000 on any
8 item of tangible personal property and on long-distance
9 telephone service shall not be subject to the surtax. For
10 purposes of administering the $5,000 limitation on an item of
11 tangible personal property, if two or more taxable items of
12 tangible personal property are sold to the same purchaser at
13 the same time and, under generally accepted business practice
14 or industry standards or usage, are normally sold in bulk or
15 are items that, when assembled, comprise a working unit or
16 part of a working unit, such items must be considered a single
17 item for purposes of the $5,000 limitation when supported by a
18 charge ticket, sales slip, invoice, or other tangible evidence
19 of a single sale or rental. The limitation provided in this
20 subparagraph does not apply to the sale of any other service.
21 2. In the case of utility, telecommunication, or
22 television system program services billed on or after the
23 effective date of any such surtax, the entire amount of the
24 tax for utility, telecommunication, or television system
25 program services shall be subject to the surtax. In the case
26 of utility, telecommunication, or television system program
27 services billed after the last day the surtax is in effect,
28 the entire amount of the tax on said items shall not be
29 subject to the surtax.
30 3. In the case of written contracts which are signed
31 prior to the effective date of any such surtax for the
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1 construction of improvements to real property or for
2 remodeling of existing structures, the surtax shall be paid by
3 the contractor responsible for the performance of the
4 contract. However, the contractor may apply for one refund of
5 any such surtax paid on materials necessary for the completion
6 of the contract. Any application for refund shall be made no
7 later than 15 months following initial imposition of the
8 surtax in that county. The application for refund shall be in
9 the manner prescribed by the department by rule. A complete
10 application shall include proof of the written contract and of
11 payment of the surtax. The application shall contain a sworn
12 statement, signed by the applicant or its representative,
13 attesting to the validity of the application. The department
14 shall, within 30 days after approval of a complete
15 application, certify to the county information necessary for
16 issuance of a refund to the applicant. Counties are hereby
17 authorized to issue refunds for this purpose and shall set
18 aside from the proceeds of the surtax a sum sufficient to pay
19 any refund lawfully due. Any person who fraudulently obtains
20 or attempts to obtain a refund pursuant to this subparagraph,
21 in addition to being liable for repayment of any refund
22 fraudulently obtained plus a mandatory penalty of 100 percent
23 of the refund, is guilty of a felony of the third degree,
24 punishable as provided in s. 775.082, s. 775.083, or s.
25 775.084.
26 4. In the case of any vessel, railroad, or motor
27 vehicle common carrier entitled to partial exemption from tax
28 imposed under this chapter pursuant to s. 212.08(4), (8), or
29 (9), the basis for imposition of surtax shall be the same as
30 provided in s. 212.08 and the ratio shall be applied each
31 month to total purchases in this state of property qualified
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1 for proration which is delivered or sold in the taxing county
2 to establish the portion used and consumed in intracounty
3 movement and subject to surtax.
4 Section 24. Subsection (2) of section 212.0598,
5 Florida Statutes, is amended to read:
6 212.0598 Special provisions; air carriers.--
7 (2) The basis of the tax shall be the ratio of Florida
8 mileage to total mileage as determined pursuant to chapter 220
9 and this section. The ratio shall be determined at the close
10 of the carrier's preceding fiscal year. However, during the
11 fiscal year in which the air carrier begins initial operations
12 in this state, the carrier may determine its mileage
13 apportionment factor based on an estimated ratio of
14 anticipated revenue miles in this state to anticipated total
15 revenue miles. In such cases, the air carrier shall pay
16 additional tax or apply for a refund based on the actual ratio
17 for that year. The applicable ratio shall be applied each
18 month to the carrier's total systemwide gross purchases of
19 tangible personal property and services otherwise taxable in
20 Florida. Additionally, the ratio shall be applied each month
21 to the carrier's total systemwide payments for the lease or
22 rental of, or license in, real property used by the carrier
23 substantially for aircraft maintenance if that carrier
24 employed, on average, during the previous calendar quarter in
25 excess of 3,000 full-time equivalent maintenance or repair
26 employees at one maintenance base that it leases, rents, or
27 has a license in, in this state. In all other instances, the
28 tax on real property leased, rented, or licensed by the
29 carrier shall be as provided in s. 212.031.
30 Section 25. Paragraph (b) of subsection (1) of section
31 212.06, Florida Statutes, is amended, paragraph (d) is
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1 redesignated as paragraph (e) and a new paragraph (d) is added
2 to said subsection, subsections (7) and (10) are amended, and
3 subsections (13), (14), (15), and (16) are added to said
4 section, to read:
5 212.06 Sales, storage, use tax; collectible from
6 dealers; "dealer" defined; dealers to collect from purchasers;
7 legislative intent as to scope of tax.--
8 (1)
9 (b) Except as otherwise provided, any person who
10 manufactures, produces, compounds, processes, or fabricates in
11 any manner tangible personal property for his or her own use
12 shall pay a tax upon the cost of the product manufactured,
13 produced, compounded, processed, or fabricated without any
14 deduction therefrom on account of the cost of material used,
15 labor or service costs, or transportation charges, overhead
16 costs, or any other costs that are directly or indirectly
17 attributable to the manufacturing, producing, compounding,
18 processing, or fabricating of such tangible personal property
19 and which are properly chargeable to a capital account or to
20 the cost of the product under generally accepted cost
21 accounting standards; however, the cost of labor to
22 manufacture, produce, compound, process, or fabricate
23 expendable items of tangible personal property which are
24 directly used by such person in manufacturing, producing,
25 compounding, processing, or fabricating other tangible
26 personal property for sale or his or her own use is not
27 included in such taxable cost. notwithstanding the provisions
28 of s. 212.02 defining "cost price." However, the tax levied
29 under this paragraph shall not be imposed upon any person who
30 manufactures or produces electrical power or energy, steam
31 energy, or other energy at a single location, when such power
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1 or energy is used directly and exclusively at such location,
2 or at other locations if the energy is transferred through
3 facilities of the owner in the operation of machinery or
4 equipment that is used to manufacture, process, compound,
5 produce, fabricate, or prepare for shipment tangible personal
6 property for sale or to operate pollution control equipment,
7 maintenance equipment, or monitoring or control equipment used
8 in such operations. The manufacture or production of
9 electrical power or energy that is used for space heating,
10 lighting, office equipment, or air-conditioning or any other
11 nonmanufacturing, nonprocessing, noncompounding, nonproducing,
12 nonfabricating, or nonshipping activity is taxable. Electrical
13 power or energy consumed or dissipated in the transmission or
14 distribution of electrical power or energy for resale is also
15 not taxable. Fabrication labor shall not be taxable when a
16 person is using his or her own equipment and personnel, for
17 his or her own account, as a producer, subproducer, or
18 coproducer of a qualified motion picture. For purposes of
19 this chapter, the term "qualified motion picture" means all or
20 any part of a series of related images, either on film, tape,
21 or other embodiment, including, but not limited to, all items
22 comprising part of the original work and film-related products
23 derived therefrom as well as duplicates and prints thereof and
24 all sound recordings created to accompany a motion picture,
25 which is produced, adapted, or altered for exploitation in,
26 on, or through any medium or device and at any location,
27 primarily for entertainment, commercial, industrial, or
28 educational purposes. A person who manufactures factory-built
29 buildings for his or her own use in the performance of
30 contracts for the construction or improvement of real property
31
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1 shall pay a tax only upon the person's cost price of items
2 used in the manufacture of such buildings.
3 (d) For purposes of paragraph (b), the department may
4 establish a cost price amount for industry groups that
5 manufacture, produce, compound, process, or fabricate tangible
6 personal property for their own use in the performance of
7 contracts for improvements to real property. Such cost price
8 amount must be established as a percentage, rounded to the
9 nearest whole number, of the total contract price charged for
10 the improvement. The cost price percentages established must
11 be adopted by rule pursuant to the procedures provided in s.
12 120.54, upon petition of a majority of the members of an
13 industry group or by a statewide association that represents
14 such industry group, and must be based on a reasonable
15 estimate of average costs incurred by members of the
16 petitioning industry group. The department is required to
17 adopt a cost price percentage only if sufficient information
18 is available to determine such percentage. The information
19 considered by the department to establish the cost price
20 percentage must be that set forth in the petition or that
21 which is otherwise made available to the department. Any cost
22 price percentage so established must be available only by
23 election of a member of the industry group for which the
24 percentage was established and shall apply only to such
25 periods or contracts for which the election is made. The
26 election must be made by the taxpayer by timely accruing and
27 remitting tax on the contract using the established percentage
28 figure. If the taxpayer does not timely accrue and remit the
29 use tax due for a contract using the percentage figure, the
30 taxpayer may not later use this method of calculating the use
31 tax due for that contract. Taxpayers must maintain adequate
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1 records showing the accrual of tax using the percentage figure
2 on actual cost price. Any cost price so established must
3 remain available for use for a period of at least 5 years from
4 the date of its adoption and must be reviewed and be subject
5 to adjustment by the department no more frequently than at
6 5-year intervals. The provisions of this paragraph are not
7 available to persons subject to paragraph (c).
8 (7) The provisions of this chapter do not apply in
9 respect to the use or consumption of tangible personal
10 property or services, or distribution or storage of tangible
11 personal property for use or consumption in this state, upon
12 which a like tax equal to or greater than the amount imposed
13 by this chapter has been lawfully imposed and paid in another
14 state, territory of the United States, or the District of
15 Columbia. The proof of payment of such tax shall be made
16 according to rules and regulations of the department. If the
17 amount of tax paid in another state, territory of the United
18 States, or the District of Columbia is not equal to or greater
19 than the amount of tax imposed by this chapter, then the
20 dealer shall pay to the department an amount sufficient to
21 make the tax paid in the other state, territory of the United
22 States, or the District of Columbia and in this state equal to
23 the amount imposed by this chapter.
24 (10) No title certificate may be issued on any boat,
25 mobile home, motor vehicle, or other vehicle, or, if no title
26 is required by law, no license or registration may be issued
27 for any boat, mobile home, motor vehicle, or other vehicle,
28 unless there is filed with such application for title
29 certificate or license or registration certificate a receipt,
30 issued by an authorized dealer or a designated agent of the
31 Department of Revenue, evidencing the payment of the tax
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1 imposed by this chapter where the same is payable. A
2 presumption of sales and use tax applicability is created if
3 the motor vehicle is registered in this state. For the
4 purpose of enforcing this provision, all county tax collectors
5 and all persons or firms authorized to sell or issue boat,
6 mobile home, and motor vehicle licenses are hereby designated
7 agents of the department and are required to perform such duty
8 in the same manner and under the same conditions prescribed
9 for their other duties by the constitution or any statute of
10 this state. All transfers of title to boats, mobile homes,
11 motor vehicles, and other vehicles are taxable transactions,
12 unless expressly exempt under this chapter.
13 (13) Registered aircraft dealers who purchase aircraft
14 exclusively for resale and do not pay sales tax on the
15 purchase price at the time of purchase shall pay a use tax
16 computed on 1 percent of the value of the aircraft each
17 calendar month that the aircraft is used by the dealer.
18 Payment of such tax shall commence in the month during which
19 the aircraft is first used for any purpose for which income is
20 received by the dealer. A dealer may pay the sales tax on the
21 purchase of the aircraft in lieu of the monthly use tax. The
22 value of the aircraft shall include its acquisition cost and
23 the cost of reconditioning that enhances the value of the
24 aircraft and shall generally be the value shown on the books
25 of the dealer in accordance with generally accepted accounting
26 principles. Notwithstanding the payment by the dealer of tax
27 computed on 1 percent of the value of any aircraft, if the
28 aircraft is leased or rented, the dealer shall collect from
29 the customer and remit the tax that is due on the lease or
30 rental of the aircraft; such payments do not diminish or
31 offset any use tax due from the dealer.
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1 (14) For the purpose of determining whether a person
2 is improving real property:
3 (a) "Real property" means the land and improvements
4 thereto and fixtures and is synonymous with the terms "realty"
5 and "real estate."
6 (b) "Fixtures" means items that are an accessory to a
7 building, other structure, or land and that do not lose their
8 identity as accessories when installed but that do become
9 permanently attached to realty. However, the term does not
10 include the following items, whether or not such items are
11 attached to real property in a permanent manner: trade
12 fixtures; property of a type that is required to be
13 registered, licensed, titled, or documented by this state or
14 by the United States Government, including, but not limited
15 to, mobile homes, except mobile homes assessed as real
16 property; or machinery or equipment. For an item to be
17 considered a fixture, it is not necessary that the owner of
18 the item also own the real property to which it is attached.
19 (c) "Improvements to real property" includes the
20 activities of building, erecting, constructing, altering,
21 improving, repairing, or maintaining real property.
22 (15)(a) When a contractor secures the rock, shell,
23 fill dirt, and similar materials he or she uses in a real
24 property improvement contract from a quarry, pit, or other
25 location that he or she owns or leases, the contractor is the
26 ultimate consumer of such materials and is liable for use tax
27 thereon. The basis upon which the contractor shall remit the
28 tax is the fair retail market value determined by establishing
29 either the price he or she would have to pay for it on the
30 open market or the price he or she would regularly charge if
31 he or she sold it to other contractors or users.
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1 (b) When a contractor does not own or lease the land
2 but has entered into an agreement to purchase fill dirt, rock,
3 shell, or similar materials for his or her own use and the
4 contractor will excavate and remove the material, the taxable
5 basis shall include the cost of the material plus all costs of
6 clearing, excavating, and removing, including labor and all
7 other costs incurred by the contractor.
8 (c) In lieu of the method described in paragraph (a)
9 for determining the taxable basis on rock, shell, fill dirt,
10 and similar materials a contractor uses in performing a
11 contract for the improvement of real property, the taxable
12 basis may be calculated as the land cost plus all costs of
13 clearing, excavating, and loading, including labor, power,
14 blasting, and similar costs.
15 (d) No tax is applicable when the Department of
16 Transportation furnishes without charge the borrow materials
17 or the pits where materials are to be extracted for use on a
18 road contract.
19 (16)(a) Notwithstanding other provisions of this
20 chapter, the use by the publisher of a newspaper, magazine, or
21 periodical of copies for his or her own consumption or to be
22 given away is taxable at the usual retail price thereof, if
23 any, or at the cost price.
24 (b) For the purposes of this subsection, "cost price"
25 means the actual cost of printing of newspapers, magazines,
26 and other publications, without any deductions therefrom on
27 account of the cost of materials used, labor or services cost,
28 transportation charges, or other direct or indirect overhead
29 costs that are a part of printing costs of the property.
30 However, the cost of labor to manufacture, produce, compound,
31 process, or fabricate expendable items of tangible personal
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1 property which are directly used by such person in printing
2 other tangible personal property for sale or for his or her
3 own use is exempt. Authors' royalties, fees, or salaries,
4 general overhead, and other costs not directly related to
5 printing shall be deemed to be labor associated with
6 manufacturing, producing, compounding, processing, or
7 fabricating expendable items.
8 Section 26. Subsection (8) of section 212.07, Florida
9 Statutes, is repealed, paragraph (c) is added to subsection
10 (1) of said section, and subsection (5) of said section is
11 amended, to read:
12 212.07 Sales, storage, use tax; tax added to purchase
13 price; dealer not to absorb; liability of purchasers who
14 cannot prove payment of the tax; penalties; general
15 exemptions.--
16 (1)
17 (c) Unless the purchaser of tangible personal property
18 that is incorporated into tangible personal property
19 manufactured, produced, compounded, processed, or fabricated
20 for his or her own use and subject to the tax imposed under s.
21 212.06(1)(b) or that is purchased for export under s.
22 212.06(5)(a)1. extends a certificate in compliance with the
23 rules of the department, the dealer shall be liable for and
24 pay the tax.
25 (5)(a) The gross proceeds derived from the sale in
26 this state of livestock, poultry, and other farm products
27 direct from the farm are exempted from the tax levied by this
28 chapter provided such sales are made directly by the
29 producers. The producers shall be entitled to such exemptions
30 although the livestock so sold in this state may have been
31 registered with a breeders' or registry association prior to
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1 the sale and although the sale takes place at a livestock show
2 or race meeting, so long as the sale is made by the original
3 producer and within this state. When sales of livestock,
4 poultry, or other farm products are made to consumers by any
5 person, as defined herein, other than a producer, they are not
6 exempt from the tax imposed by this chapter. The foregoing
7 exemption does not apply to ornamental nursery stock offered
8 for retail sale by the producer.
9 (b) Sales of race horses at claiming races are
10 taxable; however, if sufficient information is provided by
11 race track officials to properly administer the tax, sales tax
12 is due only on the maximum single amount for which a horse is
13 sold at all races at which it is claimed during an entire
14 racing season.
15 Section 27. Subsections (1), (2), (3), (6), (7), (9),
16 and (14), paragraph (a) of subsection (4), paragraph (a) of
17 subsection (8), and paragraph (d) of subsection (11) of
18 section 212.08, Florida Statutes, are amended, and paragraph
19 (a) of subsection (5) is amended and paragraph (k) is added to
20 said subsection, to 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 chapter.
27 (1) EXEMPTIONS; GENERAL GROCERIES.--
28 (a) Food products for human consumption are exempt
29 from the tax imposed by this chapter.
30 (b) As used in this subsection, "food products" means
31 edible commodities, whether processed, cooked, raw, canned, or
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1 in any other form, which are generally regarded as food. This
2 includes, but is not limited to:
3 1. Cereals and cereal products, baked goods,
4 oleomargarine, meat and meat products, fish and seafood
5 products, frozen foods and dinners, poultry, eggs and egg
6 products, vegetables and vegetable products, fruit and fruit
7 products, spices, salt, sugar and sugar products, milk and
8 dairy products, and products intended to be mixed with milk.
9 2. Natural fruit or vegetable juices or their
10 concentrates or reconstituted natural concentrated fruit or
11 vegetable juices, whether frozen or unfrozen, dehydrated,
12 powdered, granulated, sweetened or unsweetened, seasoned with
13 salt or spice, or unseasoned; coffee, coffee substitutes, or
14 cocoa; and tea, unless it is sold in a liquid form.
15 3. Bakery products sold by bakeries, pastry shops, or
16 like establishments that do not have eating facilities.
17 (c) The exemption provided by this subsection does not
18 apply:
19 1. When the food products are sold as meals for
20 consumption on or off the premises of the dealer.
21 2. When the food products are furnished, prepared, or
22 served for consumption at tables, chairs, or counters or from
23 trays, glasses, dishes, or other tableware, whether provided
24 by the dealer or by a person with whom the dealer contracts to
25 furnish, prepare, or serve food products to others.
26 3. When the food products are ordinarily sold for
27 immediate consumption on the premises or near a location at
28 which parking facilities are provided primarily for the use of
29 patrons in consuming the products purchased at the location,
30 even though such products are sold on a "take out" or "to go"
31
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1 order and are actually packaged or wrapped and taken from the
2 premises of the dealer.
3 4. To sandwiches sold ready for immediate consumption
4 on or off the premises.
5 5. When the food products are sold ready for immediate
6 consumption within a place, the entrance to which is subject
7 to an admission charge.
8 6. When the food products are sold as hot prepared
9 food products.
10 7. To soft drinks, which include, but are not limited
11 to, any nonalcoholic beverage, any preparation or beverage
12 commonly referred to as a "soft drink," or any noncarbonated
13 drink made from milk derivatives or tea, when sold in cans or
14 similar containers.
15 8. To ice cream, frozen yogurt, and similar frozen
16 dairy or nondairy products in cones, small cups, or pints,
17 popsicles, frozen fruit bars, or other novelty items, whether
18 or not sold separately.
19 9. To food prepared, whether on or off the premises,
20 and sold for immediate consumption. This does not apply to
21 food prepared off the premises and sold in the original sealed
22 container, or the slicing of products into smaller portions.
23 10. When the food products are sold through a vending
24 machine, pushcart, motor vehicle, or any other form of
25 vehicle.
26 11. To candy and any similar product regarded as candy
27 or confection, based on its normal use, as indicated on the
28 label or advertising thereof.
29 12. To bakery products sold by bakeries, pastry shops,
30 or like establishments that have eating facilities, except
31 when sold for consumption off the premises.
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1 13. When food products are served, prepared, or sold
2 in or by restaurants, lunch counters, cafeterias, hotels,
3 taverns, or other like places of business.
4 (d) As used in this subsection:
5 1. "For consumption off the premises" means that the
6 food or drink is intended by the customer to be consumed at a
7 place away from the dealer's premises.
8 2. "For consumption on the premises" means that the
9 food or drink sold may be immediately consumed on the premises
10 where the dealer conducts his or her business. In determining
11 whether an item of food is sold for immediate consumption,
12 there shall be considered the customary consumption practices
13 prevailing at the selling facility.
14 3. "Premises" shall be construed broadly, and means,
15 but is not limited to, the lobby, aisle, or auditorium of a
16 theater; the seating, aisle, or parking area of an arena,
17 rink, or stadium; or the parking area of a drive-in or outdoor
18 theater. The premises of a caterer with respect to catered
19 meals or beverages shall be the place where such meals or
20 beverages are served.
21 4. "Hot prepared food products" means those products,
22 items, or components which have been prepared for sale in a
23 heated condition and which are sold at any temperature that is
24 higher than the air temperature of the room or place where
25 they are sold. "Hot prepared food products," for the purposes
26 of this subsection, includes a combination of hot and cold
27 food items or components where a single price has been
28 established for the combination and the food products are sold
29 in such combination, such as a hot meal, a hot specialty dish
30 or serving, or a hot sandwich or hot pizza, including cold
31 components or side items.
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1 (a) There are exempt from the tax imposed by this
2 chapter food and drinks for human consumption except candy.
3 Unless the exemption provided by paragraph (7)(q) for school
4 lunches, paragraph (7)(i) for meals to certain patients or
5 inmates, paragraph (7)(k) for meals provided by certain
6 nonprofit organizations, or paragraph (7)(z) for food or
7 drinks sold through vending machines pertains, none of such
8 items of food or drinks means:
9 1. Food or drinks served, prepared, or sold in or by
10 restaurants; drugstores; lunch counters; cafeterias; hotels;
11 amusement parks; racetracks; taverns; concession stands at
12 arenas, auditoriums, carnivals, fairs, stadiums, theaters, or
13 other like places of business; or by any business or place
14 required by law to be licensed by the Division of Hotels and
15 Restaurants of the Department of Business and Professional
16 Regulation, except bakery products sold in or by pastry shops,
17 doughnut shops, or like establishments for consumption off the
18 premises;
19 2. Foods and drinks sold ready for immediate
20 consumption from vending machines, pushcarts, motor vehicles,
21 or any other form of vehicle;
22 3. Soft drinks, which include, but are not limited to,
23 any nonalcoholic beverage, any preparation or beverage
24 commonly referred to as a "soft drink," or any noncarbonated
25 drink made from milk derivatives or tea, when sold in cans or
26 similar containers. The term "soft drink" does not include:
27 natural fruit or vegetable juices or their concentrates or
28 reconstituted natural concentrated fruit or vegetable juices,
29 whether frozen or unfrozen, dehydrated, powdered, granulated,
30 sweetened or unsweetened, seasoned with salt or spice, or
31 unseasoned; coffee or coffee substitutes; tea except when sold
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1 in containers as provided herein; cocoa; products intended to
2 be mixed with milk; or natural fluid milk;
3 4. Foods or drinks cooked or prepared on the seller's
4 premises and sold ready for immediate consumption either on or
5 off the premises, excluding bakery products for off-premises
6 consumption unless such foods are taxed under subparagraph 1.
7 or subparagraph 2.; or
8 5. Sandwiches sold ready for immediate consumption.
9
10 For the purposes of this paragraph, "seller's premises" shall
11 be construed broadly, and means, but is not limited to, the
12 lobby, aisle, or auditorium of a theater; the seating, aisle,
13 or parking area of an arena, rink, or stadium; or the parking
14 area of a drive-in or outdoor theater. The premises of a
15 caterer with respect to catered meals or beverages shall be
16 the place where such meals or beverages are served.
17 (e)(b)1. Food or drinks not exempt under paragraphs
18 (a), (b), (c), and (d) paragraph (a) shall be exempt,
19 notwithstanding those paragraphs that paragraph, when
20 purchased with food coupons or Special Supplemental Food
21 Program for Women, Infants, and Children vouchers issued under
22 authority of federal law.
23 2. This paragraph is effective only while federal law
24 prohibits a state's participation in the federal food coupon
25 program or Special Supplemental Food Program for Women,
26 Infants, and Children if there is an official determination
27 that state or local sales taxes are collected within that
28 state on purchases of food or drinks with such coupons.
29 3. This paragraph shall not apply to any food or
30 drinks on which federal law shall permit sales taxes without
31 penalty, such as termination of the state's participation.
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1 4. Notwithstanding any other provision of law, the
2 department shall make refunds or allow credits to a
3 distributor equal to the fee imposed and paid under s.
4 403.7197 on containers purchased by consumers with food
5 coupons or Special Supplemental Food Program for Women,
6 Infants, and Children vouchers issued under authority of
7 federal law.
8 (2) EXEMPTIONS; MEDICAL.--
9 (a) There shall be exempt from the tax imposed by this
10 chapter any medical products and supplies product, supply, or
11 medicine dispensed in a retail establishment by a pharmacist
12 licensed by the state, according to an individual prescription
13 or prescriptions written by a prescriber authorized by law to
14 prescribe medicinal drugs; hypodermic needles; hypodermic
15 syringes; chemical compounds and test kits used for the
16 diagnosis or treatment of human disease, illness, or injury;
17 and common household remedies recommended and generally sold
18 for internal or external use in the cure, mitigation,
19 treatment, or prevention of illness or disease in human
20 beings, but not including cosmetics or toilet articles,
21 notwithstanding the presence of medicinal ingredients therein,
22 according to a list prescribed and approved by the Department
23 of Health and Rehabilitative Services, which list shall be
24 certified to the Department of Revenue from time to time and
25 included in the rules promulgated by the Department of
26 Revenue. There shall also be exempt from the tax imposed by
27 this chapter artificial eyes and limbs; orthopedic shoes;
28 prescription eyeglasses and items incidental thereto or which
29 become a part thereof; dentures; hearing aids; crutches;
30 prosthetic and orthopedic appliances; and funerals. In
31 addition, any items intended for one-time use which transfer
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1 essential optical characteristics to contact lenses shall be
2 exempt from the tax imposed by this chapter; however, this
3 exemption shall apply only after $100,000 of the tax imposed
4 by this chapter on such items has been paid in any calendar
5 year by a taxpayer who claims the exemption in such year.
6 Funeral directors shall pay tax on all tangible personal
7 property used by them in their business.
8 (b) For the purposes of this subsection:
9 1. "Prosthetic and orthopedic appliances" means any
10 apparatus, instrument, device, or equipment used to replace or
11 substitute for any missing part of the body, to alleviate the
12 malfunction of any part of the body, or to assist any disabled
13 person in leading a normal life by facilitating such person's
14 mobility. Such apparatus, instrument, device, or equipment
15 shall be exempted according to an individual prescription or
16 prescriptions written by a physician licensed under chapter
17 458, chapter 459, chapter 460, chapter 461, or chapter 466, or
18 according to a list prescribed and approved by the Department
19 of Health and Rehabilitative Services, which list shall be
20 certified to the Department of Revenue from time to time and
21 included in the rules promulgated by the Department of
22 Revenue.
23 2. "Cosmetics" means articles intended to be rubbed,
24 poured, sprinkled, or sprayed on, introduced into, or
25 otherwise applied to the human body for cleansing,
26 beautifying, promoting attractiveness, or altering the
27 appearance and also means articles intended for use as a
28 compound of any such articles, including, but not limited to,
29 cold creams, suntan lotions, makeup, and body lotions.
30 3. "Toilet articles" means any article advertised or
31 held out for sale for grooming purposes and those articles
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1 that are customarily used for grooming purposes, regardless of
2 the name by which they may be known, including, but not
3 limited to, soap, toothpaste, hair spray, shaving products,
4 colognes, perfumes, shampoo, deodorant, and mouthwash.
5 4. "Prescription" includes any order for drugs or
6 medicinal supplies written or transmitted by any means of
7 communication by a duly licensed practitioner authorized by
8 the laws of this state to prescribe such drugs or medicinal
9 supplies and intended to be dispensed by a pharmacist. The
10 term also includes an orally transmitted order by the lawfully
11 designated agent of such practitioner. The term also includes
12 an order written or transmitted by a practitioner licensed to
13 practice in a jurisdiction other than this state, but only if
14 the pharmacist called upon to dispense such order determines,
15 in the exercise of his or her professional judgment, that the
16 order is valid and necessary for the treatment of a chronic or
17 recurrent illness. The term also includes a pharmacist's order
18 for a product selected from the formulary created pursuant to
19 s. 465.186. A prescription may be retained in written form, or
20 the pharmacist may cause it to be recorded in a
21 data-processing system, provided that such order can be
22 produced in printed form upon lawful request.
23 (c) Chlorine shall not be exempt from the tax imposed
24 by this chapter when used for the treatment of water in
25 swimming pools.
26 (d) Lithotripters are exempt.
27 (e) Human organs are exempt.
28 (f) Sales of drugs to or by physicians, dentists,
29 veterinarians, and hospitals in connection with medical
30 treatment are exempt.
31
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1 (g) Medical products and supplies used in the cure,
2 mitigation, alleviation, prevention, or treatment of injury,
3 disease, or incapacity which are temporarily or permanently
4 incorporated into a patient or client by a practitioner of the
5 healing arts licensed in this state are exempt.
6 (h) The purchase by a veterinarian of commonly
7 recognized substances possessing curative or remedial
8 properties which are ordered and dispensed as treatment for a
9 diagnosed health disorder by or on the prescription of a duly
10 licensed veterinarian, and which are applied to or consumed by
11 animals for alleviation of pain or the cure or prevention of
12 sickness, disease, or suffering are exempt. Also exempt are
13 the purchase by a veterinarian of antiseptics, absorbent
14 cotton, gauze for bandages, lotions, vitamins, and worm
15 remedies.
16 (i) X-ray opaques, also known as opaque drugs and
17 radiopaque, such as the various opaque dyes and barium
18 sulphate, when used in connection with medical x-rays for
19 treatment of bodies of humans and animals, are exempt.
20 (j) Parts, special attachments, special lettering, and
21 other like items that are added to or attached to tangible
22 personal property so that a handicapped person can use them
23 are exempt when such items are purchased by a person pursuant
24 to an individual prescription.
25 (k)(d) This subsection shall be strictly construed and
26 enforced.
27 (3) EXEMPTIONS, PARTIAL; CERTAIN FARM
28 EQUIPMENT.--There shall be taxable at the rate of 3 percent
29 the sale, use, consumption, or storage for use in this state
30 of self-propelled or power-drawn farm equipment used
31 exclusively by a farmer on a farm owned, leased, or
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1 sharecropped by the farmer in plowing, planting, cultivating,
2 or harvesting crops, or for fire prevention and suppression
3 work. The rental of self-propelled or power-drawn farm
4 equipment shall be taxed at the rate of 6 percent. The 3
5 percent tax rate provided for machines and farm equipment
6 shall be disallowed when such machines and equipment are used
7 by the farmer for activities other than plowing, planting,
8 cultivating, harvesting crops, or fire prevention and
9 suppression work on a farm owned, leased, or sharecropped by
10 the farmer within 6 months after the date of purchase. The
11 fact that the amount of other use derived from such machines
12 and farm equipment may be relatively insignificant is
13 irrelevant. In such cases, it is the farmer's responsibility
14 to disclose the facts to the department and pay the amount of
15 tax difference due on the basis of 6 percent of the cost price
16 at the time of purchase.
17 (4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES,
18 ETC.--
19 (a) Also exempt are:
20 1. Water delivered to the purchaser through pipes or
21 conduits or delivered for irrigation purposes. The sale of
22 drinking water in bottles, cans, or other containers,
23 including water that contains minerals or carbonation in its
24 natural state or water to which minerals have been added at a
25 water treatment facility regulated by the Department of
26 Environmental Protection, is exempt. This exemption does not
27 apply to the sale of drinking water in bottles, cans, or other
28 containers if carbonation, minerals, or flavorings, except
29 those added at a water treatment facility, have been added.
30 (not exempting mineral water or carbonated water).
31
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1 2. All fuels used by a public or private utility,
2 including any municipal corporation or rural electric
3 cooperative association, in the generation of electric power
4 or energy for sale. Fuel other than motor fuel and diesel
5 fuel is taxable as provided in this chapter with the exception
6 of fuel expressly exempt herein. Motor fuels and diesel fuels
7 are taxable as provided in chapter 206, with the exception of
8 those motor fuels and diesel fuels used by railroad
9 locomotives or vessels to transport persons or property in
10 interstate or foreign commerce, which are taxable under this
11 chapter only to the extent provided herein. The basis of the
12 tax shall be the ratio of intrastate mileage to interstate or
13 foreign mileage traveled by the carrier's railroad locomotives
14 or vessels that were used in interstate or foreign commerce
15 and that had at least some Florida mileage during the previous
16 fiscal year of the carrier, such ratio to be determined at the
17 close of the fiscal year of the carrier. This ratio shall be
18 applied each month to the total Florida purchases made in this
19 state of motor and diesel fuels to establish that portion of
20 the total used and consumed in intrastate movement and subject
21 to tax under this chapter. The basis for imposition of any
22 discretionary surtax shall be set forth in s. 212.054. Fuels
23 used exclusively in intrastate commerce do not qualify for the
24 proration of tax.
25 3. The transmission or wheeling of electricity.
26 (5) EXEMPTIONS; ACCOUNT OF USE.--
27 (a) Items in agricultural use and certain nets.--There
28 are exempt from the tax imposed by this chapter nets designed
29 and used exclusively by commercial fisheries; disinfectants,
30 fertilizers, insecticides, pesticides, herbicides, and
31 fungicides, and weed killers used for application on crops or
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1 groves, including commercial nurseries and home vegetable
2 gardens, used in dairy barns or on poultry farms for the
3 purpose of protecting poultry or livestock, or used directly
4 on poultry or livestock; portable containers used for
5 processing farm products; field and garden seeds, including
6 flower seeds; nursery stock, seedlings, cuttings, or other
7 propagative material purchased for growing stock; seeds,
8 seedlings, cuttings, and plants used to produce food for human
9 consumption; cloth, plastic, and other similar materials used
10 for shade, mulch, or protection from frost or insects on a
11 farm; and liquefied petroleum gas or other fuel used to heat a
12 structure in which started pullets or broilers are raised;
13 however, such exemption shall not be allowed unless the
14 purchaser or lessee signs a certificate stating that the item
15 to be exempted is for the exclusive use designated herein.
16 (k) Paint color cards and other samples.--Paint color
17 cards, flooring and wallpaper samples, laminate chips, fabric
18 swatches, window covering samples, and other similar samples,
19 which serve no useful purpose other than for comparing color,
20 texture, or design, and which are available at no charge, are
21 exempt.
22 (6) EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are
23 also exempt from the tax imposed by this chapter sales made to
24 the United States Government, a state, or any county,
25 municipality, or political subdivision of a state when payment
26 is made directly to the dealer by the governmental entity.
27 This exemption shall not inure to any transaction otherwise
28 taxable under this chapter when payment is made by a
29 government employee by any means, including, but not limited
30 to, cash, check, or credit card when that employee is
31 subsequently reimbursed by the governmental entity. This
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1 exemption does not include sales of tangible personal property
2 made to contractors employed either directly or as agents of
3 any such government or political subdivision thereof when such
4 tangible personal property goes into or becomes a part of
5 public works owned by such government or political subdivision
6 thereof. A determination whether a particular transaction is
7 properly characterized as an exempt sale to a government
8 entity or a taxable sale to a contractor shall be based on the
9 substance of the transaction rather than the form in which the
10 transaction is cast. The department shall adopt rules that
11 give special consideration to factors that govern the status
12 of the tangible personal property before its affixation to
13 real property. In developing these rules, assumption of the
14 risk of damage or loss is of paramount consideration in the
15 determination. This exemption does not include sales, rental,
16 use, consumption, or storage for use in any political
17 subdivision or municipality in this state of machines and
18 equipment and parts and accessories therefor used in the
19 generation, transmission, or distribution of electrical energy
20 by systems owned and operated by a political subdivision in
21 this state for transmission or distribution expansion.
22 Likewise exempt are charges for services rendered by radio and
23 television stations, including line charges, talent fees, or
24 license fees and charges for films, videotapes, and
25 transcriptions used in producing radio or television
26 broadcasts. The exemption provided in this subsection does not
27 include sales, rental, use, consumption, or storage for use in
28 any political subdivision or municipality in this state of
29 machines and equipment and parts and accessories therefor used
30 in providing two-way telecommunications services to the public
31 for hire by the use of a telecommunications facility, as
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1 defined in s. 364.02(13), and for which a certificate is
2 required under chapter 364, which facility is owned and
3 operated by any county, municipality, or other political
4 subdivision of the state. Any immunity of any political
5 subdivision of the state or other entity of local government
6 from taxation of the property used to provide
7 telecommunication services that is taxed as a result of this
8 section is hereby waived. However, the exemption provided in
9 this subsection includes transactions taxable under this part
10 which are for use by the operator of a public-use airport, as
11 defined in s. 322.004, in providing such telecommunications
12 services for the airport or its tenants, concessionaires, or
13 licensees, or which are for use by a public hospital for the
14 provision of such telecommunications services.
15 (7) MISCELLANEOUS EXEMPTIONS.--
16 (a) Artificial commemorative flowers.--Exempt from the
17 tax imposed by this chapter is the sale of artificial
18 commemorative flowers by bona fide nationally chartered
19 veterans' organizations.
20 (b) Boiler fuels.--When purchased for use as a
21 combustible fuel, purchases of natural gas, residual oil,
22 recycled oil, waste oil, solid waste material, coal, sulfur,
23 wood, wood residues or wood bark used in an industrial
24 manufacturing, processing, compounding, or production process
25 at a fixed location in this state are exempt from the taxes
26 imposed by this chapter; however, such exemption shall not be
27 allowed unless the purchaser signs a certificate stating that
28 the fuel to be exempted is for the exclusive use designated
29 herein. This exemption does not apply to the use of boiler
30 fuels that are not used in manufacturing, processing,
31 compounding, or producing items of tangible personal property
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1 for sale, or to the use of boiler fuels used by any firm
2 subject to regulation by the Division of Hotels and
3 Restaurants of the Department of Business and Professional
4 Regulation.
5 (c) Crustacea bait.--Also exempt from the tax imposed
6 by this chapter is the purchase by commercial fishers of bait
7 intended solely for use in the entrapment of Callinectes
8 sapidus and Menippe mercenaria.
9 (d) Feeds.--Feeds for poultry, ostriches, and
10 livestock, including racehorses and dairy cows, are exempt.
11 (e) Film rentals.--Film rentals are exempt when an
12 admission is charged for viewing such film, and license fees
13 and direct charges for films, videotapes, and transcriptions
14 used by television or radio stations or networks are exempt.
15 (f) Flags.--Also exempt are sales of the flag of the
16 United States and the official state flag of Florida.
17 (g) Florida Retired Educators Association and its
18 local chapters.--Also exempt from payment of the tax imposed
19 by this chapter are purchases of office supplies, equipment,
20 and publications made by the Florida Retired Educators
21 Association and its local chapters.
22 (h) Guide dogs for the blind.--Also exempt are the
23 sale or rental of guide dogs for the blind, commonly referred
24 to as "seeing-eye dogs," and the sale of food or other items
25 for such guide dogs.
26 1. The department shall issue a consumer's certificate
27 of exemption to any blind person who holds an identification
28 card as provided for in s. 413.091 and who either owns or
29 rents, or contemplates the ownership or rental of, a guide dog
30 for the blind. The consumer's certificate of exemption shall
31
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1 be issued without charge and shall be of such size as to be
2 capable of being carried in a wallet or billfold.
3 2. The department shall make such rules concerning
4 items exempt from tax under the provisions of this paragraph
5 as may be necessary to provide that any person authorized to
6 have a consumer's certificate of exemption need only present
7 such a certificate at the time of paying for exempt goods and
8 shall not be required to pay any tax thereon.
9 (i) Hospital meals and rooms.--Also exempt from
10 payment of the tax imposed by this chapter on rentals and
11 meals are patients and inmates of any hospital or other
12 physical plant or facility designed and operated primarily for
13 the care of persons who are ill, aged, infirm, mentally or
14 physically incapacitated, or otherwise dependent on special
15 care or attention. Residents of a home for the aged are exempt
16 from payment of taxes on meals provided through the facility.
17 A home for the aged is defined as a facility that is licensed
18 or certified in part or in whole under chapter 400 or chapter
19 651, or that is financed by a mortgage loan made or insured by
20 the United States Department of Housing and Urban Development
21 under s. 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4),
22 s. 232, or s. 236 of the National Housing Act, or other such
23 similar facility designed and operated primarily for the care
24 of the aged.
25 (j) Household fuels.--Also exempt from payment of the
26 tax imposed by this chapter are sales of utilities to
27 residential households or owners of residential models in this
28 state by utility companies who pay the gross receipts tax
29 imposed under s. 203.01, and sales of fuel to residential
30 households or owners of residential models, including oil,
31 kerosene, liquefied petroleum gas, coal, wood, and other fuel
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1 products used in the household or residential model for the
2 purposes of heating, cooking, lighting, and refrigeration,
3 regardless of whether such sales of utilities and fuels are
4 separately metered and billed direct to the residents or are
5 metered and billed to the landlord. If any part of the utility
6 or fuel is used for a nonexempt purpose, the entire sale is
7 taxable. The landlord shall provide a separate meter for
8 nonexempt utility or fuel consumption. For the purposes of
9 this paragraph, licensed family day care homes shall also be
10 exempt.
11 (k) Meals provided by certain nonprofit
12 organizations.--There is exempt from the tax imposed by this
13 chapter the sale of prepared meals by a nonprofit volunteer
14 organization to handicapped, elderly, or indigent persons when
15 such meals are delivered as a charitable function by the
16 organization to such persons at their places of residence.
17 (l) Military museums.--Also exempt are sales to
18 nonprofit corporations which hold current exemptions from
19 federal corporate income tax pursuant to s. 501(c)(3),
20 Internal Revenue Code of 1954, as amended, and whose primary
21 purpose is to raise money for military museums.
22 (m) Nonprofit corporations; homes for the aged,
23 nursing homes, or hospices.--Nonprofit corporations which hold
24 current exemptions from federal corporate income tax pursuant
25 to s. 501(c)(3), Internal Revenue Code of 1954, as amended,
26 and which either qualify as homes for the aged pursuant to s.
27 196.1975(2) or are licensed as a nursing home or hospice under
28 the provisions of chapter 400, are exempt from the tax imposed
29 by this chapter.
30 (n) Organizations providing special educational,
31 cultural, recreational, and social benefits to minors.--There
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1 shall be exempt from the tax imposed by this chapter nonprofit
2 organizations which are incorporated pursuant to chapter 617
3 or which hold a current exemption from federal corporate
4 income tax pursuant to s. 501(c)(3) of the Internal Revenue
5 Code the primary purpose of which is providing activities that
6 contribute to the development of good character or good
7 sportsmanship, or to the educational or cultural development,
8 of minors. This exemption is extended only to that level of
9 the organization that has a salaried executive officer or an
10 elected nonsalaried executive officer.
11 (o) Religious, charitable, scientific, educational,
12 and veterans' institutions and organizations.--
13 1. There are exempt from the tax imposed by this
14 chapter transactions involving:
15 a. Sales or leases directly to churches or sales or
16 leases of tangible personal property by churches;
17 b. Sales or leases to nonprofit religious, nonprofit
18 charitable, nonprofit scientific, or nonprofit educational
19 institutions when used in carrying on their customary
20 nonprofit religious, nonprofit charitable, nonprofit
21 scientific, or nonprofit educational activities, including
22 church cemeteries; and
23 c. Sales or leases to the state headquarters of
24 qualified veterans' organizations and the state headquarters
25 of their auxiliaries when used in carrying on their customary
26 veterans' organization activities. If a qualified veterans'
27 organization or its auxiliary does not maintain a permanent
28 state headquarters, then transactions involving sales or
29 leases to such organization and used to maintain the office of
30 the highest ranking state official are exempt from the tax
31 imposed by this chapter.
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1 2. The provisions of this section authorizing
2 exemptions from tax shall be strictly defined, limited, and
3 applied in each category as follows:
4 a. "Religious institutions" means churches,
5 synagogues, and established physical places for worship at
6 which nonprofit religious services and activities are
7 regularly conducted and carried on. The term "religious
8 institutions" includes nonprofit corporations the sole purpose
9 of which is to provide free transportation services to church
10 members, their families, and other church attendees. The term
11 "religious institutions" also includes state, district, or
12 other governing or administrative offices the function of
13 which is to assist or regulate the customary activities of
14 religious organizations or members. The term "religious
15 institutions" also includes any nonprofit corporation which is
16 qualified as nonprofit pursuant to s. 501(c)(3), Internal
17 Revenue Code of 1986, as amended, which owns and operates a
18 Florida television station, at least 90 percent of the
19 programming of which station consists of programs of a
20 religious nature, and the financial support for which,
21 exclusive of receipts for broadcasting from other nonprofit
22 organizations, is predominantly from contributions from the
23 general public. The term "religious institutions" also
24 includes any nonprofit corporation which is qualified as
25 nonprofit pursuant to s. 501(c)(3), Internal Revenue Code of
26 1986, as amended, which provides regular religious services to
27 Florida state prisoners and which from its own established
28 physical place of worship, operates a ministry providing
29 worship and services of a charitable nature to the community
30 on a weekly basis.
31
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1 b. "Charitable institutions" means only nonprofit
2 corporations qualified as nonprofit pursuant to s. 501(c)(3),
3 Internal Revenue Code of 1954, as amended, and other nonprofit
4 entities, the sole or primary function of which is to provide,
5 or to raise funds for organizations which provide, one or more
6 of the following services if a reasonable percentage of such
7 service is provided free of charge, or at a substantially
8 reduced cost, to persons, animals, or organizations that are
9 unable to pay for such service:
10 (I) Medical aid for the relief of disease, injury, or
11 disability;
12 (II) Regular provision of physical necessities such as
13 food, clothing, or shelter;
14 (III) Services for the prevention of or rehabilitation
15 of persons from alcoholism or drug abuse; the prevention of
16 suicide; or the alleviation of mental, physical, or sensory
17 health problems;
18 (IV) Social welfare services including adoption
19 placement, child care, community care for the elderly, and
20 other social welfare services which clearly and substantially
21 benefit a client population which is disadvantaged or suffers
22 a hardship;
23 (V) Medical research for the relief of disease,
24 injury, or disability;
25 (VI) Legal services; or
26 (VII) Food, shelter, or medical care for animals or
27 adoption services, cruelty investigations, or education
28 programs concerning animals;
29
30 and the term includes groups providing volunteer staff to
31 organizations designated as charitable institutions under this
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1 sub-subparagraph; nonprofit organizations the sole or primary
2 purpose of which is to coordinate, network, or link other
3 institutions designated as charitable institutions under this
4 sub-subparagraph with those persons, animals, or organizations
5 in need of their services; and nonprofit national, state,
6 district, or other governing, coordinating, or administrative
7 organizations the sole or primary purpose of which is to
8 represent or regulate the customary activities of other
9 institutions designated as charitable institutions under this
10 sub-subparagraph. Notwithstanding any other requirement of
11 this section, any blood bank that relies solely upon volunteer
12 donations of blood and tissue, that is licensed under chapter
13 483, and that qualifies as tax exempt under s. 501(c)(3) of
14 the Internal Revenue Code constitutes a charitable institution
15 and is exempt from the tax imposed by this chapter. Sales to a
16 health system, qualified as nonprofit pursuant to s.
17 501(c)(3), Internal Revenue Code of 1986, as amended, which
18 filed an application for exemption with the department prior
19 to April 5, 1997, and which application is subsequently
20 approved, shall be exempt as to any unpaid taxes on purchases
21 made from January 1, 1994, to June 1, 1997.
22 c. "Scientific organizations" means scientific
23 organizations which hold current exemptions from federal
24 income tax under s. 501(c)(3) of the Internal Revenue Code and
25 also means organizations the purpose of which is to protect
26 air and water quality or the purpose of which is to protect
27 wildlife and which hold current exemptions from the federal
28 income tax under s. 501(c)(3) of the Internal Revenue Code.
29 d. "Educational institutions" means state
30 tax-supported or parochial, church and nonprofit private
31 schools, colleges, or universities which conduct regular
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1 classes and courses of study required for accreditation by, or
2 membership in, the Southern Association of Colleges and
3 Schools, the Department of Education, the Florida Council of
4 Independent Schools, or the Florida Association of Christian
5 Colleges and Schools, Inc., or nonprofit private schools which
6 conduct regular classes and courses of study accepted for
7 continuing education credit by a Board of the Division of
8 Medical Quality Assurance of the Department of Business and
9 Professional Regulation or which conduct regular classes and
10 courses of study accepted for continuing education credit by
11 the American Medical Association. Nonprofit libraries, art
12 galleries, performing arts centers that provide educational
13 programs to school children, which programs involve
14 performances or other educational activities at the performing
15 arts center and serve a minimum of 50,000 school children a
16 year, and museums open to the public are defined as
17 educational institutions and are eligible for exemption. The
18 term "educational institutions" includes private nonprofit
19 organizations the purpose of which is to raise funds for
20 schools teaching grades kindergarten through high school,
21 colleges, and universities. The term "educational
22 institutions" includes any nonprofit newspaper of free or paid
23 circulation primarily on university or college campuses which
24 holds a current exemption from federal income tax under s.
25 501(c)(3) of the Internal Revenue Code, and any educational
26 television or radio network or system established pursuant to
27 s. 229.805 or s. 229.8051 and any nonprofit television or
28 radio station which is a part of such network or system and
29 which holds a current exemption from federal income tax under
30 s. 501(c)(3) of the Internal Revenue Code. The term
31 "educational institutions" also includes state, district, or
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1 other governing or administrative offices the function of
2 which is to assist or regulate the customary activities of
3 educational organizations or members. The term "educational
4 institutions" also includes a nonprofit educational cable
5 consortium which holds a current exemption from federal income
6 tax under s. 501(c)(3) of the Internal Revenue Code of 1986,
7 as amended, whose primary purpose is the delivery of
8 educational and instructional cable television programming and
9 whose members are composed exclusively of educational
10 organizations which hold a valid consumer certificate of
11 exemption and which are either an educational institution as
12 defined in this sub-subparagraph, or qualified as a nonprofit
13 organization pursuant to s. 501(c)(3) of the Internal Revenue
14 Code of 1986, as amended.
15 e. "Veterans' organizations" means nationally
16 chartered or recognized veterans' organizations, including,
17 but not limited to, Florida chapters of the Paralyzed Veterans
18 of America, Catholic War Veterans of the U.S.A., Jewish War
19 Veterans of the U.S.A., and the Disabled American Veterans,
20 Department of Florida, Inc., which hold current exemptions
21 from federal income tax under s. 501(c)(4) or (19) of the
22 Internal Revenue Code.
23 (p) Resource recovery equipment.--Also exempt is
24 resource recovery equipment which is owned and operated by or
25 on behalf of any county or municipality, certified by the
26 Department of Environmental Protection under the provisions of
27 s. 403.715.
28 (q) School books and school lunches.--This exemption
29 applies to school books used in regularly prescribed courses
30 of study, and to school lunches served to students, in public,
31 parochial, or nonprofit schools operated for and attended by
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1 pupils of kindergarten through grade grades 1 though 12.
2 Yearbooks, magazines, newspapers, directories, bulletins, and
3 similar publications distributed by such educational
4 institutions to their students are also exempt. School books
5 and food sold or served at community colleges and other
6 institutions of higher learning are taxable.
7 (r) State theater contract organizations.--Nonprofit
8 organizations incorporated in accordance with chapter 617
9 which have qualified under s. 501(c)(3) of the Internal
10 Revenue Code of 1954, as amended, and which have been
11 designated as state theater contract organizations as provided
12 in s. 265.289 are exempt from the tax imposed by this chapter.
13 (s) Tasting beverages.--Vinous and alcoholic beverages
14 provided by distributors or vendors for the purpose of "wine
15 tasting" and "spirituous beverage tasting" as contemplated
16 under the provisions of ss. 564.06 and 565.12, respectively,
17 are exempt from the tax imposed by this chapter.
18 (t) Boats temporarily docked in state.--
19 1. Notwithstanding the provisions of chapters 327 and
20 328, pertaining to the registration of vessels, a boat upon
21 which the state sales or use tax has not been paid is exempt
22 from the use tax under this chapter if it enters and remains
23 in this state for a period not to exceed a total of 20 days in
24 any calendar year calculated from the date of first dockage or
25 slippage at a facility, registered with the department, that
26 rents dockage or slippage space in this state. If a boat
27 brought into this state for use under this paragraph is placed
28 in a facility, registered with the department, for repairs,
29 alterations, refitting, or modifications and such repairs,
30 alterations, refitting, or modifications are supported by
31 written documentation, the 20-day period shall be tolled
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1 during the time the boat is physically in the care, custody,
2 and control of the repair facility, including the time spent
3 on sea trials conducted by the facility. The 20-day time
4 period may be tolled only once within a calendar year when a
5 boat is placed for the first time that year in the physical
6 care, custody, and control of a registered repair facility;
7 however, the owner may request and the department may grant an
8 additional tolling of the 20-day period for purposes of
9 repairs that arise from a written guarantee given by the
10 registered repair facility, which guarantee covers only those
11 repairs or modifications made during the first tolled period.
12 Within 72 hours after the date upon which the registered
13 repair facility took possession of the boat, the facility must
14 have in its possession, on forms prescribed by the department,
15 an affidavit which states that the boat is under its care,
16 custody, and control and that the owner does not use the boat
17 while in the facility. Upon completion of the repairs,
18 alterations, refitting, or modifications, the registered
19 repair facility must, within 72 hours after the date of
20 release, have in its possession a copy of the release form
21 which shows the date of release and any other information the
22 department requires. The repair facility shall maintain a log
23 that documents all alterations, additions, repairs, and sea
24 trials during the time the boat is under the care, custody,
25 and control of the facility. The affidavit shall be
26 maintained by the registered repair facility as part of its
27 records for as long as required by s. 213.35. When, within 6
28 months after the date of its purchase, a boat is brought into
29 this state under this paragraph, the 6-month period provided
30 in s. 212.05(1)(a)2. or s. 212.06(8) shall be tolled.
31
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1 2. During the period of repairs, alterations,
2 refitting, or modifications and during the 20-day period
3 referred to in subparagraph 1., the boat may be listed for
4 sale, contracted for sale, or sold exclusively by a broker or
5 dealer registered with the department without incurring a use
6 tax under this chapter; however, the sales tax levied under
7 this chapter applies to such sale.
8 3. The mere storage of a boat at a registered repair
9 facility does not qualify as a tax-exempt use in this state.
10 4. As used in this paragraph, "registered repair
11 facility" means:
12 a. A full-service facility that:
13 (I) Is located on a navigable body of water;
14 (II) Has haulout capability such as a dry dock, travel
15 lift, railway, or similar equipment to service craft under the
16 care, custody, and control of the facility;
17 (III) Has adequate piers and storage facilities to
18 provide safe berthing of vessels in its care, custody, and
19 control; and
20 (IV) Has necessary shops and equipment to provide
21 repair or warranty work on vessels under the care, custody,
22 and control of the facility;
23 b. A marina that:
24 (I) Is located on a navigable body of water;
25 (II) Has adequate piers and storage facilities to
26 provide safe berthing of vessels in its care, custody, and
27 control; and
28 (III) Has necessary shops and equipment to provide
29 repairs or warranty work on vessels; or
30 c. A shoreside facility that:
31 (I) Is located on a navigable body of water;
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1 (II) Has adequate piers and storage facilities to
2 provide safe berthing of vessels in its care, custody, and
3 control; and
4 (III) Has necessary shops and equipment to provide
5 repairs or warranty work.
6 (u) Volunteer fire departments.--Also exempt are
7 firefighting and rescue service equipment and supplies
8 purchased by volunteer fire departments, duly chartered under
9 the Florida Statutes as corporations not for profit.
10 (v) Professional services.--
11 1. Also exempted are professional, insurance, or
12 personal service transactions that involve sales as
13 inconsequential elements for which no separate charges are
14 made.
15 2. The personal service transactions exempted pursuant
16 to subparagraph 1. do not exempt the sale of information
17 services involving the furnishing of printed, mimeographed, or
18 multigraphed matter, or matter duplicating written or printed
19 matter in any other manner, other than professional services
20 and services of employees, agents, or other persons acting in
21 a representative or fiduciary capacity or information services
22 furnished to newspapers and radio and television stations. As
23 used in this subparagraph, the term "information services"
24 includes the services of collecting, compiling, or analyzing
25 information of any kind or nature and furnishing reports
26 thereof to other persons.
27 3. This exemption does not apply to any service
28 warranty transaction taxable under s. 212.0506.
29 4. This exemption does not apply to any service
30 transaction taxable under s. 212.05(1)(k).
31
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1 (w) Certain newspaper, magazine, and newsletter
2 subscriptions, shoppers, and community newspapers.--Likewise
3 exempt are newspaper, magazine, and newsletter subscriptions
4 in which the product is delivered to the customer by mail.
5 Also exempt are free, circulated publications that are
6 published on a regular basis, the content of which is
7 primarily advertising, and that are distributed through the
8 mail, home delivery, or newsstands. The exemption for
9 newspaper, magazine, and newsletter subscriptions which is
10 provided in this paragraph applies only to subscriptions
11 entered into after March 1, 1997.
12 (x) Sporting equipment brought into the
13 state.--Sporting equipment brought into Florida, for a period
14 of not more than 4 months in any calendar year, used by an
15 athletic team or an individual athlete in a sporting event is
16 exempt from the use tax if such equipment is removed from the
17 state within 7 days after the completion of the event.
18 (y) Charter fishing vessels.--The charge for
19 chartering any boat or vessel, with the crew furnished, solely
20 for the purpose of fishing is exempt from the tax imposed
21 under s. 212.04 or s. 212.05. This exemption does not apply
22 to any charge to enter or stay upon any "head-boat," party
23 boat, or other boat or vessel. Nothing in this paragraph
24 shall be construed to exempt any boat from sales or use tax
25 upon the purchase thereof except as provided in paragraph (t)
26 and s. 212.05.
27 (z) Vending machines sponsored by nonprofit or
28 charitable organizations.--Also exempt are food or drinks for
29 human consumption sold for 25 cents or less through a
30 coin-operated vending machine sponsored by a nonprofit
31
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1 corporation qualified as nonprofit pursuant to s. 501(c)(3) or
2 (4) of the Internal Revenue Code of 1986, as amended.
3 (aa) Certain commercial vehicles.--Also exempt is the
4 sale, lease, or rental of a commercial motor vehicle as
5 defined in s. 207.002(2), when the following conditions are
6 met:
7 1. The sale, lease, or rental occurs between two
8 commonly owned and controlled corporations;
9 2. Such vehicle was titled and registered in this
10 state at the time of the sale, lease, or rental; and
11 3. Florida sales tax was paid on the acquisition of
12 such vehicle by the seller, lessor, or renter.
13 (bb) Community cemeteries.--Also exempt are purchases
14 by any nonprofit corporation that has qualified under s.
15 501(c)(13) of the Internal Revenue Code of 1986, as amended,
16 and is operated for the purpose of maintaining a cemetery that
17 was donated to the community by deed.
18 (cc) Coast Guard auxiliaries.--A nonprofit
19 organization that is affiliated with the Coast Guard, that is
20 exempt from federal income tax pursuant to s. 501(a) and
21 (c)(3) of the Internal Revenue Code of 1986, as amended, and
22 the primary purpose of which is to promote safe boating and to
23 conduct free public education classes in basic seamanship is
24 exempt from the tax imposed by this chapter.
25 (dd) Works of art.--
26 1. Also exempt are works of art sold to or used by an
27 educational institution, as defined in sub-subparagraph
28 (o)2.d.
29 2. This exemption also applies to the sale to or use
30 in this state of any work of art by any person if it was
31 purchased or imported exclusively for the purpose of being
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1 loaned to and made available for display by any educational
2 institution, provided that the term of the loan agreement is
3 for at least 10 years.
4 3. A work of art is presumed to have been purchased in
5 or imported into this state exclusively for loan as provided
6 in subparagraph 2., if it is so loaned or placed in storage in
7 preparation for such a loan within 90 days after purchase or
8 importation, whichever is later; but a work of art is not
9 deemed to be placed in storage for purposes of this exemption
10 if it is displayed at any place other than an educational
11 institution.
12 4. The exemptions provided by this paragraph are
13 allowed only if the person who purchased the work of art gives
14 to the vendor an affidavit meeting the requirements,
15 established by rule, to document entitlement to the exemption.
16 The person who purchased the work of art shall forward a copy
17 of such affidavit to the Department of Revenue at the time it
18 is issued to the vendor.
19 5. The exemption provided by subparagraph 2. applies
20 only for the period during which a work of art is in the
21 possession of the educational institution or is in storage
22 before transfer of possession to that institution; and when it
23 ceases to be so possessed or held, tax based upon the sales
24 price paid by the owner is payable, and the statute of
25 limitations provided in s. 95.091 shall begin to run at that
26 time. Any educational institution which has received a work
27 of art pursuant to this paragraph shall make available to the
28 department information relating to the work of art. Any
29 educational institution that transfers from its possession a
30 work of art as defined by this paragraph must notify the
31 Department of Revenue within 60 days after the transfer.
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1 6. For purposes of the exemptions provided by this
2 paragraph, the term "work of art" includes pictorial
3 representations, sculpture, jewelry, antiques, stamp
4 collections and coin collections, and other tangible personal
5 property, the value of which is attributable predominantly to
6 its artistic, historical, political, cultural, or social
7 importance.
8 7. This paragraph is a remedial clarification of
9 legislative intent and applies to all taxes that remain open
10 to assessment or contest on July 1, 1992.
11 (ee) Taxicab leases.--The lease of or license to use a
12 taxicab or taxicab-related equipment and services provided by
13 a taxicab company to an independent taxicab operator are
14 exempt, provided, however, the exemptions provided under this
15 paragraph only apply if sales or use tax has been paid on the
16 acquisition of the taxicab and its related equipment.
17 (ff) Aircraft repair and maintenance labor
18 charges.--There shall be exempt from the tax imposed by this
19 chapter all labor charges for the repair and maintenance of
20 aircraft of more than 20,000 pounds maximum certified takeoff
21 weight. Charges for parts and equipment furnished in
22 connection with such labor charges are taxable.
23 (gg) Athletic event sponsors.--There shall be exempt
24 from the tax imposed by this chapter sales or leases to those
25 organizations which:
26 1.a. Are incorporated pursuant to chapter 617; and
27 b. Hold a current exemption from federal corporate
28 income tax liability pursuant to s. 501(c)(3) of the Internal
29 Revenue Code of 1986, as amended; and
30 2. Sponsor golf tournaments sanctioned by the PGA
31 Tour, PGA of America, or the LPGA.
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1 (hh) Electric vehicles.--Effective July 1, 1995,
2 through June 30, 2000, the sale of an electric vehicle, as
3 defined in s. 320.01, is exempt from the tax imposed by this
4 chapter.
5 (ii) Certain electricity uses.--Charges for
6 electricity used directly and exclusively at a fixed location
7 in this state to operate machinery and equipment that is used
8 to manufacture, process, compound, or produce items of
9 tangible personal property for sale, or to operate pollution
10 control equipment, recycling equipment, maintenance equipment,
11 or monitoring or control equipment used in such operations are
12 exempt from the tax imposed by this chapter as provided in
13 subparagraph 2. The exemption provided for herein is
14 applicable if the electricity that is used for the exempt
15 purposes is separately metered, or if it is not separately
16 metered, it is irrevocably presumed that 50 percent of the
17 charge for electricity is for nonexempt purposes. This
18 exemption only applies to industries classified under SIC
19 Industry Major Group Numbers 10, 12, 13, 14, 20, 21, 22, 23,
20 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
21 and 39. As used in this paragraph, "SIC" means those
22 classifications contained in the Standard Industrial
23 Classification Manual, 1987, as published by the Office of
24 Management and Budget, Executive Office of the President.
25 Possession by a seller of a written certification by the
26 purchaser, certifying the purchaser's entitlement to an
27 exemption permitted by this subsection, relieves the seller
28 from the responsibility of collecting the tax on the
29 nontaxable amounts, and the department shall look solely to
30 the purchaser for recovery of such tax if it determines that
31
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1 the purchaser was not entitled to the exemption. Such
2 exemption shall be applied as follows:
3 1. Beginning July 1, 1996, 20 percent of the charges
4 for such electricity shall be exempt.
5 2. Beginning July 1, 1997, 40 percent of the charges
6 for such electricity shall be exempt.
7 3. Beginning July 1, 1998, 60 percent of the charges
8 for such electricity shall be exempt.
9 4. Beginning July 1, 1999, 80 percent of the charges
10 for such electricity shall be exempt.
11 5. Beginning July 1, 2000, 100 percent of the charges
12 for such electricity shall be exempt.
13
14 Notwithstanding any other provision in this paragraph to the
15 contrary, in order to receive the exemption provided in this
16 paragraph a taxpayer must register with the WAGES Program
17 Business Registry established by the local WAGES coalition for
18 the area in which the taxpayer is located. Such registration
19 establishes a commitment on the part of the taxpayer to hire
20 WAGES program participants to the maximum extent possible
21 consistent with the nature of their business. In order to
22 determine whether the exemption provided in this paragraph
23 from the tax on charges for electricity has an effect on
24 retaining or attracting companies to this state, the Office of
25 Program Policy Analysis and Governmental Accountability shall
26 periodically monitor and report on the industries receiving
27 the exemption. The first report shall be submitted no later
28 than January 1, 1997, and must be conducted in such a manner
29 as to specifically determine the number of companies within
30 each SIC Industry Major Group receiving the exemption as of
31 September 1, 1996, and the number of individuals employed by
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1 companies within each SIC Industry Major Group receiving the
2 exemption as of September 1, 1996. The second report shall be
3 submitted no later than January 1, 2001, and must be
4 comprehensive in scope, but, at a minimum, must be conducted
5 in such a manner as to specifically determine the number of
6 companies within each SIC Industry Major Group receiving the
7 exemption as of September 1, 2000, the number of individuals
8 employed by companies within each SIC Industry Major Group
9 receiving the exemption as of September 1, 2000, whether the
10 change, if any, in such number of companies or employees is
11 attributable to the exemption provided in this paragraph,
12 whether it would be sound public policy to continue or
13 discontinue the exemption, and the consequences of doing so.
14 Both reports shall be submitted to the President of the
15 Senate, the Speaker of the House of Representatives, the
16 Senate Minority Leader, and the House Minority Leader.
17 (jj) Fair associations.--Also exempt from the tax
18 imposed by this chapter is the sale, use, lease, rental, or
19 grant of a license to use, made directly to or by a fair
20 association, of real or tangible personal property; any charge
21 made by a fair association, or its agents, for parking,
22 admissions, or for temporary parking of vehicles used for
23 sleeping quarters; rentals, subleases, and sublicenses of real
24 or tangible personal property between the owner of the central
25 amusement attraction and any owner of amusement devices and
26 amusement attractions, as those terms are used in ss.
27 616.15(1)(b) and 616.242(3)(a) and (i), for the furnishing of
28 amusement devices and amusement attractions at a public fair
29 or exposition; and other transactions of a fair association
30 which are incurred directly by the fair association in the
31 financing, construction, and operation of a fair, exposition,
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1 or other event or facility that is authorized by s. 616.08. As
2 used in this paragraph, the terms "fair association" and
3 "public fair or exposition" have the same meaning as those
4 terms are defined in s. 616.001. This exemption does not apply
5 to the sale of tangible personal property made by a fair
6 association through an agent or independent contractor; sales
7 of admissions and tangible personal property by a
8 concessionaire, vendor, exhibitor, or licensee; or rentals and
9 subleases of tangible personal property or real property
10 between the owner of the central amusement attraction and a
11 concessionaire, vendor, exhibitor, or licensee, except for the
12 furnishing of amusement devices or amusement attractions,
13 which transactions are exempt.
14 (kk) Citizen support organizations.--Beginning July 1,
15 1996, nonprofit organizations that are incorporated under
16 chapter 617 or hold a current exemption from federal corporate
17 income tax under s. 501(c)(3) of the Internal Revenue Code, as
18 amended, and that have been designated citizen support
19 organizations in support of state-funded environmental
20 programs or the management of state-owned lands in accordance
21 with s. 370.0205, or to support one or more state parks in
22 accordance with s. 258.015 are exempt from the tax imposed by
23 this chapter.
24 (ll) Florida Folk Festival.--There shall be exempt
25 from the tax imposed by this chapter income of a revenue
26 nature received from admissions to the Florida Folk Festival
27 held pursuant to s. 267.16 at the Stephen Foster State Folk
28 Culture Center, a unit of the state park system.
29 (mm) Solar energy systems.--Also exempt are solar
30 energy systems or any component thereof. The Florida Solar
31 Energy Center shall from time to time certify to the
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1 department a list of equipment and requisite hardware
2 considered to be a solar energy system or a component thereof.
3 This exemption is repealed July 1, 2002.
4 (nn) Nonprofit cooperative hospital
5 laundries.--Nonprofit organizations that are incorporated
6 under chapter 617 and which are treated, for federal income
7 tax purposes, as cooperatives under subchapter T of the
8 Internal Revenue Code, whose sole purpose is to offer laundry
9 supplies and services to their members, which members must all
10 be exempt from federal income tax pursuant to s. 501(c)(3) of
11 the Internal Revenue Code, are exempt from the tax imposed by
12 this chapter.
13 (oo) Complimentary meals.--Also exempt from the tax
14 imposed by this part are food or drinks that are furnished as
15 part of a packaged room rate by any person offering for rent
16 or lease any transient living accommodations as described in
17 s. 509.013(4)(a) which are licensed under part I of chapter
18 509 and which are subject to the tax under s. 212.03, if a
19 separate charge or specific amount for the food or drinks is
20 not shown. Such food or drinks are considered to be sold at
21 retail as part of the total charge for the transient living
22 accommodations. Moreover, the person offering the
23 accommodations is not considered to be the consumer of items
24 purchased in furnishing such food or drinks and may purchase
25 those items under conditions of a sale for resale.
26 (pp) Nonprofit corporation conducting the correctional
27 work programs.--Products sold pursuant to s. 946.515 by the
28 corporation organized pursuant to part II of chapter 946 are
29 exempt from the tax imposed by this chapter. This exemption
30 applies retroactively to July 1, 1983.
31
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1 (qq) Parent-teacher organizations, parent-teacher
2 associations, and schools having kindergarten through grade
3 12.--Parent-teacher organizations and associations qualified
4 as educational institutions under paragraph (o) associated
5 with schools having kindergarten through grade 12, and schools
6 having kindergarten through grade 12, may pay tax to their
7 suppliers on the cost price of school materials and supplies
8 purchased, rented, or leased for resale or rental to students
9 in kindergarten through grade 12, of items sold for
10 fundraising purposes, and of items sold through vending
11 machines located on the school premises, in lieu of collecting
12 the tax imposed by this chapter from the purchaser. This
13 paragraph also applies to food or beverages sold through
14 vending machines located in the student lunchroom or dining
15 room of a school having kindergarten through grade 12.
16 (rr) Mobile home lot improvements.--Items purchased by
17 developers for use in making improvements to a mobile home lot
18 owned by the developer may be purchased tax-exempt as a sale
19 for resale if made pursuant to a contract that requires the
20 developer to sell a mobile home to a purchaser, place the
21 mobile home on the lot, and make the improvements to the lot
22 for a single lump-sum price. The developer must collect and
23 remit sales tax on the entire lump-sum price.
24 (ss) Veterans Administration.--When a veteran of the
25 Armed Forces purchases an aircraft, boat, mobile home, motor
26 vehicle, or other vehicle from a dealer pursuant to the
27 provisions of s. 3902(a), Title 38, U.S.C., or any successor
28 provision of the United States Code, the amount that is paid
29 directly to the dealer by the Veterans Administration is not
30 taxable. However, any portion of the purchase price which is
31 paid directly to the dealer by the veteran is taxable.
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1 (tt) Complimentary items.--There is exempt from the
2 tax imposed by this chapter:
3 1. Any food or drink, whether or not cooked or
4 prepared on the premises, provided without charge as a sample
5 or for the convenience of customers by a dealer that primarily
6 sells food product items at retail.
7 2. Any item given to a customer as part of a price
8 guarantee plan related to point-of-sale errors by a dealer
9 that primarily sells food products at retail.
10
11 The exemptions in this paragraph do not apply to businesses
12 with the primary activity of serving prepared meals or
13 alcoholic beverages for immediate consumption.
14 (uu) Donated foods or beverages.--Any food or beverage
15 donated by a dealer that sells food products at retail to a
16 food bank or an organization that holds a current exemption
17 from federal corporate income tax pursuant to s. 501(c) of the
18 Internal Revenue Code of 1986, as amended, is exempt from the
19 tax imposed by this chapter.
20 (vv) Racing dogs.--The sale of a racing dog by its
21 owner is exempt if the owner is also the breeder of the
22 animal.
23
24 Exemptions provided to any entity by this subsection shall not
25 inure to any transaction otherwise taxable under this chapter
26 when payment is made by a representative or employee of such
27 entity by any means, including, but not limited to, cash,
28 check, or credit card, even when that representative or
29 employee is subsequently reimbursed by such entity.
30 (8) PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE
31 OR FOREIGN COMMERCE.--
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1 (a) The sale or use of vessels and parts thereof used
2 to transport persons or property in interstate or foreign
3 commerce, including commercial fishing vessels, is subject to
4 the taxes imposed in this chapter only to the extent provided
5 herein. The basis of the tax shall be the ratio of intrastate
6 mileage to interstate or foreign mileage traveled by the
7 carrier's vessels which were used in interstate or foreign
8 commerce and which had at least some Florida mileage during
9 the previous fiscal year. The ratio would be determined at
10 the close of the carrier's fiscal year. This ratio shall be
11 applied each month to the total Florida purchases of such
12 vessels and parts thereof which are used in Florida to
13 establish that portion of the total used and consumed in
14 intrastate movement and subject to the tax at the applicable
15 rate. The basis for imposition of any discretionary surtax
16 shall be as set forth in s. 212.054. Items, appropriate to
17 carry out the purposes for which a vessel is designed or
18 equipped and used, purchased by the owner, operator, or agent
19 of a vessel for use on board such vessel shall be deemed to be
20 parts of the vessel upon which the same are used or consumed.
21 Vessels and parts thereof used to transport persons or
22 property in interstate and foreign commerce are hereby
23 determined to be susceptible to a distinct and separate
24 classification for taxation under the provisions of this
25 chapter. Vessels and parts thereof used exclusively in
26 intrastate commerce do not qualify for the proration of tax.
27 (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
28 ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.--
29 (a) Railroads which are licensed as common carriers by
30 the Interstate Commerce Commission and parts thereof used to
31 transport persons or property in interstate or foreign
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1 commerce are subject to tax imposed in this chapter only to
2 the extent provided herein. The basis of the tax shall be the
3 ratio of intrastate mileage to interstate or foreign mileage
4 traveled by the carrier during the previous fiscal year of the
5 carrier. Such ratio is to be determined at the close of the
6 carrier's fiscal year. This ratio shall be applied each month
7 to the total purchases of the railroad which are used in this
8 state to establish that portion of the total used and consumed
9 in intrastate movement and subject to tax under this chapter.
10 The basis for imposition of any discretionary surtax is set
11 forth in s. 212.054. Railroads which are licensed as common
12 carriers by the Interstate Commerce Commission and parts
13 thereof used to transport persons or property in interstate
14 and foreign commerce are hereby determined to be susceptible
15 to a distinct and separate classification for taxation under
16 the provisions of this chapter.
17 (b) Motor vehicles which are engaged in interstate
18 commerce as common carriers, and parts thereof, used to
19 transport persons or property in interstate or foreign
20 commerce are subject to tax imposed in this chapter only to
21 the extent provided herein. The basis of the tax shall be the
22 ratio of intrastate mileage to interstate or foreign mileage
23 traveled by the carrier's motor vehicles which were used in
24 interstate or foreign commerce and which had at least some
25 Florida mileage during the previous fiscal year of the
26 carrier. Such ratio is to be determined at the close of the
27 carrier's fiscal year. This ratio shall be applied each month
28 to the total purchases of such motor vehicles and parts
29 thereof which are used in this state to establish that portion
30 of the total used and consumed in intrastate movement and
31 subject to tax under this chapter. The basis for imposition of
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1 any discretionary surtax is set forth in s. 212.054. Motor
2 vehicles which are engaged in interstate commerce, and parts
3 thereof, used to transport persons or property in interstate
4 and foreign commerce are hereby determined to be susceptible
5 to a distinct and separate classification for taxation under
6 the provisions of this chapter. Motor vehicles and parts
7 thereof used exclusively in intrastate commerce do not qualify
8 for the proration of tax. For purposes of this paragraph,
9 parts of a motor vehicle engaged in interstate commerce
10 include a separate tank not connected to the fuel supply
11 system of the motor vehicle into which diesel fuel is placed
12 to operate a refrigeration unit or other equipment.
13 (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.--
14 (d) The purchaser shall execute a sworn affidavit
15 attesting that he or she is not a resident of this state and
16 stating where the aircraft will be domiciled. If the aircraft
17 is subsequently used in this state within 6 months of the time
18 of purchase, in violation of the intent of this subsection,
19 the purchaser shall be liable for payment of the full use tax
20 imposed by this chapter and shall be subject to the penalty
21 imposed by s. 212.12(2), which penalty shall be mandatory.
22 Notwithstanding the provisions of this paragraph, the owner of
23 an aircraft purchased pursuant to this subsection may permit
24 the aircraft to be returned to this state for repairs within 6
25 months after the date of sale without the aircraft being in
26 violation of the law and without incurring liability for
27 payment of tax or penalty on the purchase price of the
28 aircraft, so long as the aircraft is removed from this state
29 within 20 days after the completion of the repairs and such
30 removal can be proven by invoices for fuel, tie-down, or
31
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1 hangar charges issued by out-of-state vendors or suppliers or
2 similar documentation.
3 (14) TECHNICAL ASSISTANCE ADVISORY COMMITTEE.--The
4 department shall establish a technical assistance advisory
5 committee with public and private sector members, including
6 representatives of both manufacturers and retailers, to advise
7 the Department of Revenue and the Department of Health and
8 Rehabilitative Services in determining the taxability of
9 specific products and product lines pursuant to subsection (1)
10 and paragraph (2)(a). In determining taxability and in
11 preparing a list of specific products and product lines which
12 are or are not taxable, the committee shall not be subject to
13 the provisions of chapter 120. Private sector members shall
14 not be compensated for serving on the committee.
15 Section 28. Section 212.09, Florida Statutes, is
16 amended to read:
17 212.09 Trade-ins deducted.--
18 (1) Where used articles, accepted and intended for
19 resale, are taken in trade, or a series of trades, as a credit
20 or part payment on the sale of new articles, the tax levied by
21 this chapter shall be paid on the sales price of the new
22 article, less the credit for the used article taken in trade.
23 (2) Where used articles, accepted and intended for
24 resale, are taken in trade, or a series of trades, as a credit
25 or part payment on the sale of used articles, the tax levied
26 by this chapter shall be paid on the sales price of the used
27 article less the credit for the used article taken in trade.
28 (3) A person who is not registered with the department
29 as a seller of aircraft, boats, mobile homes, or motor
30 vehicles who is selling an aircraft, boat, mobile home, or
31 motor vehicle and who takes in trade an item other than an
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1 aircraft, boat, mobile home, or motor vehicle may not use the
2 item as a credit against sales price.
3 Section 29. Subsection (1) of section 212.17, Florida
4 Statutes, is amended to read:
5 212.17 Credits for returned goods, rentals, or
6 admissions; goods acquired for dealer's own use and
7 subsequently sold; additional powers of department.--
8 (1)(a) In the event purchases are returned to a the
9 dealer by the purchaser or consumer after the tax imposed by
10 this chapter has been collected from or charged to the account
11 of the consumer or user, the dealer shall be entitled to
12 reimbursement of the amount of tax collected or charged by the
13 dealer, in the manner prescribed by the department.; and in
14 case
15 (b) A registered dealer that purchases property for
16 the dealer's own use, pays tax on acquisition, and sells the
17 property subsequent to acquisition without ever having used
18 the property is entitled to reimbursement, in the manner
19 prescribed by the department, of the amount of tax paid on the
20 property's acquisition.
21 (c) If the tax has not been remitted by a the dealer
22 to the department, the dealer may deduct the same in
23 submitting his or her return upon receipt of a signed
24 statement of the dealer as to the gross amount of such refunds
25 during the period covered by said signed statement, which
26 period shall not be longer than 90 days. The department shall
27 issue to the dealer an official credit memorandum equal to the
28 net amount remitted by the dealer for such tax collected or
29 paid. Such memorandum shall be accepted by the department at
30 full face value from the dealer to whom it is issued, in the
31 remittance for subsequent taxes accrued under the provisions
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1 of this chapter. If; provided, in cases where a dealer has
2 retired from business and has filed a final return, a refund
3 of tax may be made if it can be established to the
4 satisfaction of the department that the tax was not due.
5 Section 30. Subsection (3) of section 212.18, Florida
6 Statutes, is amended, and subsection (6) is added to said
7 section, to read:
8 212.18 Administration of law; registration of dealers;
9 rules.--
10 (3)(a) Every person desiring to engage in or conduct
11 business in this state as a dealer, as defined in this
12 chapter, or to lease, rent, or let or grant licenses in living
13 quarters or sleeping or housekeeping accommodations in hotels,
14 apartment houses, roominghouses, or tourist or trailer camps
15 that are subject to tax under s. 212.03, or to lease, rent, or
16 let or grant licenses in real property, as defined in this
17 chapter, and every person who sells or receives anything of
18 value by way of admissions, must file with the department an
19 application for a certificate of registration for each place
20 of business, showing the names of the persons who have
21 interests in such business and their residences, the address
22 of the business, and such other data as the department may
23 reasonably require. Owners and operators of vending machines
24 or newspaper rack machines are required to obtain only one
25 certificate of registration for each county in which such
26 machines are located. The department, by rule, may authorize a
27 dealer that uses independent sellers to sell its merchandise
28 to remit tax on the retail sales price charged to the ultimate
29 consumer in lieu of having the independent seller register as
30 a dealer and remit the tax. Itinerant merchants selling
31 exclusively at flea markets may in lieu of registration remit
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1 tax on their sales to the registered flea market operator in
2 the manner provided for in subsection (6) if they fall below
3 the threshold requirement for individual registration
4 specified in that subsection. The department may appoint the
5 county tax collector as the department's agent to accept
6 applications for registrations. The application must be made
7 to the department before the person, firm, copartnership, or
8 corporation may engage in such business, and it must be
9 accompanied by a registration fee of $5. However, a
10 registration fee is not required to accompany an application
11 to engage in or conduct business to make mail order sales. The
12 department, upon receipt of such application, will grant to
13 the applicant a separate certificate of registration for each
14 place of business, which certificate may be canceled by the
15 department or its designated assistants for any failure by the
16 certificateholder to comply with any of the provisions of this
17 chapter. The certificate is not assignable and is valid only
18 for the person, firm, copartnership, or corporation to which
19 issued. The certificate must be placed in a conspicuous place
20 in the business or businesses for which it is issued and must
21 be displayed at all times. Except as provided in this
22 paragraph, no person shall engage in business as a dealer or
23 in leasing, renting, or letting of or granting licenses in
24 living quarters or sleeping or housekeeping accommodations in
25 hotels, apartment houses, roominghouses, tourist or trailer
26 camps, or real property as hereinbefore defined, nor shall any
27 person sell or receive anything of value by way of admissions,
28 without first having obtained such a certificate or after such
29 certificate has been canceled; no person shall receive any
30 license from any authority within the state to engage in any
31 such business without first having obtained such a certificate
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1 or after such certificate has been canceled. The engaging in
2 the business of selling or leasing tangible personal property
3 or services or as a dealer, as defined in this chapter, or the
4 engaging in leasing, renting, or letting of or granting
5 licenses in living quarters or sleeping or housekeeping
6 accommodations in hotels, apartment houses, roominghouses, or
7 tourist or trailer camps that are taxable under this chapter,
8 or real property, or the engaging in the business of selling
9 or receiving anything of value by way of admissions, without
10 such certificate first being obtained or after such
11 certificate has been canceled by the department, is
12 prohibited. The failure or refusal of any person, firm,
13 copartnership, or corporation to so qualify when required
14 hereunder is a misdemeanor of the first degree, punishable as
15 provided in s. 775.082 or s. 775.083, or subject to injunctive
16 proceedings as provided by law. Such failure or refusal also
17 subjects the offender to a $100 initial registration fee in
18 lieu of the $5 registration fee authorized in this paragraph.
19 However, the department may waive the increase in the
20 registration fee if it is determined by the department that
21 the failure to register was due to reasonable cause and not to
22 willful negligence, willful neglect, or fraud.
23 (b) The department may revoke any dealer's certificate
24 of registration when the dealer fails to comply with this
25 chapter. Prior to revocation of a dealer's certificate of
26 registration, the department must schedule an informal
27 conference at which the dealer may present evidence regarding
28 the department's intended revocation or enter into a
29 compliance agreement with the department. The department must
30 notify the dealer of its intended action and the time, place,
31 and date of the scheduled informal conference by written
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1 notification sent by United States mail to the dealer's last
2 known address of record furnished by the dealer on a form
3 prescribed by the department. The dealer is required to attend
4 the informal conference and present evidence refuting the
5 department's intended revocation or enter into a compliance
6 agreement with the department which resolves the dealer's
7 failure to comply with this chapter. The department shall
8 issue an administrative complaint under s. 120.60 if the
9 dealer fails to attend the department's informal conference,
10 fails to enter into a compliance agreement with the department
11 resolving the dealer's noncompliance with this chapter, or
12 fails to comply with the executed compliance agreement.
13 (c)(b) As used in this paragraph, the term "exhibitor"
14 means a person who enters into an agreement authorizing the
15 display of tangible personal property or services at a
16 convention or a trade show. The following provisions apply to
17 the registration of exhibitors as dealers under this chapter:
18 1. An exhibitor whose agreement prohibits the sale of
19 tangible personal property or services subject to the tax
20 imposed in this chapter is not required to register as a
21 dealer.
22 2. An exhibitor whose agreement provides for the sale
23 at wholesale only of tangible personal property or services
24 subject to the tax imposed in this chapter must obtain a
25 resale certificate from the purchasing dealer but is not
26 required to register as a dealer.
27 3. An exhibitor whose agreement authorizes the retail
28 sale of tangible personal property or services subject to the
29 tax imposed in this chapter must register as a dealer and
30 collect the tax imposed under this chapter on such sales.
31
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1 4. Any exhibitor who makes a mail order sale pursuant
2 to s. 212.0596 must register as a dealer.
3
4 Any person who conducts a convention or a trade show must make
5 their exhibitor's agreements available to the department for
6 inspection and copying.
7 (6)(a) Notwithstanding the requirements of subsection
8 (3), a flea market operator, manager, lessor, or owner shall:
9 1. Register with the Department of Revenue. Only one
10 tax number is required for each flea market business location.
11 The flea market operator, manager, lessor, or owner shall
12 remit the tax collected on the space rentals and the tax
13 collected from unregistered flea market vendors under this
14 number monthly, unless otherwise notified.
15 2. Collect tax on all space rentals from flea market
16 vendors and remit it to the department. The amount of tax
17 shall be separately stated from the rental charge and must be
18 shown as Florida tax on any rental agreement, invoice, or
19 other tangible evidence that authorizes the use of the rental
20 space.
21 3.a. Obtain from each unregistered flea market vendor
22 a signed statement declaring that the unregistered flea market
23 vendor agrees to collect the applicable tax on his or her
24 sales and remit it to the flea market operator, manager,
25 lessor, or owner at the close of each business day. The
26 statement shall include both the permanent business address,
27 if applicable, and the residence address of the flea market
28 vendor. These documents shall be retained for a period of 5
29 years. Records of taxes collected and remitted shall be
30 retained for the period specified in s. 213.35. The flea
31 market operator, manager, lessor, or owner is not responsible
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1 for the failure of the flea market vendor to properly collect,
2 remit, and account for the sales tax.
3 b. Provide each unregistered flea market vendor with a
4 sign no smaller than 8 inches by 10 inches with lettering at
5 least 1 inch high, which must be displayed in a conspicuous
6 place at the stall or other place of sale by the vendor and
7 which reads:
8 (Name of vendor) is duly authorized to collect
9 Florida sales tax for remittance by the flea
10 market operator to the Department of Revenue.
11 c. Furnish unregistered flea market vendors with tax
12 envelopes so that the unregistered vendor can record the daily
13 sales transactions and remit the taxes collected and due to
14 the flea market operator, manager, lessor, or owner. The
15 department may adopt necessary rules to prescribe the format
16 for the tax envelopes.
17 4.a. Obtain from each registered flea market vendor a
18 photocopy of the vendor's certificate of registration or, in
19 lieu thereof, a statement from the registered vendor attesting
20 that the vendor has a valid certificate of registration. The
21 statement shall contain the registration number and the
22 effective date the number was issued and shall be signed by
23 the vendor. These documents shall be retained for a period of
24 5 years.
25 b. Provide each registered flea market vendor with a
26 sign no smaller than 8 inches by 10 inches with lettering at
27 least 1 inch high, which must be displayed in a conspicuous
28 place at the stall or other place of sale by the vendor and
29 which reads:
30
31
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1 (Name of vendor) is duly authorized to collect
2 and remit Florida sales tax to the Department
3 of Revenue.
4 (b) A flea market operator, manager, lessor, or owner
5 may refuse to lease space to any flea market vendor who fails
6 to provide the documents required under subparagraph (a)3. or
7 subparagraph (a)4.
8 (c) A flea market operator, manager, lessor, or owner
9 is required to remit the sales tax collected from each
10 unregistered flea market vendor when the vendor has collected
11 and remitted the tax to the flea market operator, manager,
12 lessor, or owner at the same time and on the same tax return
13 as required for the space rentals. Flea market vendors with an
14 estimated monthly sales tax liability of $50 or greater must
15 register with the department and report their own taxes. Flea
16 market vendors with an estimated monthly sales tax liability
17 of less than $50 must elect to either remit the tax to the
18 flea market operator, manager, lessor, or owner or to
19 register, report, and remit their own taxes. Taxes collected
20 become state funds at the moment of collection. Any person
21 who, with intent to unlawfully deprive or defraud the state of
22 its moneys or the use or benefit thereof, fails to remit taxes
23 collected pursuant to this chapter commits theft of state
24 funds, as provided in s. 212.15(2).
25 (d) A flea market operator, manager, lessor, or owner
26 shall furnish and post signs at each entrance of the flea
27 market and in other conspicuous places throughout the flea
28 market area. Such signs must state: "Florida Law Requires
29 Sales Tax To Be Collected On All Taxable Sales." The signs
30 shall have lettering at least 3 inches high.
31
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1 Section 31. Paragraph (a) of subsection (1) and
2 paragraph (a) of subsection (2) of section 213.21, Florida
3 Statutes, are amended to read:
4 213.21 Informal conferences; compromises.--
5 (1)(a) The Department of Revenue may adopt rules for
6 establishing informal conference procedures within the
7 department for resolution of disputes relating to assessment
8 of taxes, interest, and penalties and the denial of refunds,
9 and for informal hearings under ss. 120.569 and 120.57(2).
10 (2)(a) The executive director of the department or his
11 or her designee is authorized to enter into a written closing
12 agreements agreement with any taxpayer settling or
13 compromising the taxpayer's liability for any tax, interest,
14 or penalty assessed under any of the chapters specified in s.
15 72.011(1). Such agreements shall be in writing when the amount
16 of tax, penalty, or interest compromised exceeds $30,000, or
17 for lesser amounts when the department deems it appropriate or
18 when requested by the taxpayer. When a written such a closing
19 agreement has been approved by the department and signed by
20 the executive director or his or her designee and the
21 taxpayer, it shall be final and conclusive; and, except upon a
22 showing of fraud or misrepresentation of material fact or
23 except as to adjustments pursuant to ss. 198.16 and 220.23, no
24 additional assessment may be made by the department against
25 the taxpayer for the tax, interest, or penalty specified in
26 the closing agreement for the time period specified in the
27 closing agreement, and the taxpayer shall not be entitled to
28 institute any judicial or administrative proceeding to recover
29 any tax, interest, or penalty paid pursuant to the closing
30 agreement. The department is authorized to delegate to the
31
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1 executive director the authority to approve any such closing
2 agreement resulting in a tax reduction of $100,000 or less.
3 Section 32. Subsection (1) of section 213.22, Florida
4 Statutes, is amended to read:
5 213.22 Technical assistance advisements.--
6 (1) The department may issue informal technical
7 assistance advisements to persons, upon written request, as to
8 the position of the department on the tax consequences of a
9 stated transaction or event, under existing statutes, rules,
10 or policies. After the issuance of an assessment, a technical
11 assistance advisement may not be issued to a taxpayer who
12 requests an advisement relating to the tax or liability for
13 tax in respect to which the assessment has been made, except
14 that a technical assistance advisement may be issued to a
15 taxpayer who requests an advisement relating to the exemptions
16 in s. 212.08(1) or (2) at any time. Technical assistance
17 advisements shall have no precedential value except to the
18 taxpayer who requests the advisement and then only for the
19 specific transaction addressed in the technical assistance
20 advisement, unless specifically stated otherwise in the
21 advisement. Any modification of an advisement shall be
22 prospective only. A technical assistance advisement is not an
23 order issued pursuant to s. 120.565 or s. 120.569 or a rule or
24 policy of general applicability under s. 120.54. The
25 provisions of s. 120.53(1) are not applicable to technical
26 assistance advisements.
27 Section 33. Paragraph (c) is added to subsection (2)
28 of section 220.222, Florida Statutes, to read:
29 220.222 Returns; time and place for filing.--
30 (2)
31
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1 (c) For purposes of this subsection, a taxpayer is not
2 in compliance with the requirements of s. 220.32 if the
3 taxpayer underpays the required payment by more than the
4 greater of $500 or 10 percent of the tax shown on the return
5 when filed.
6 Section 34. Subsection (1) of section 624.515, Florida
7 Statutes, is amended to read:
8 624.515 State Fire Marshal regulatory assessment and
9 surcharge; levy and amount.--
10 (1)(a) In addition to any other license or excise tax
11 now or hereafter imposed, and such taxes as may be imposed
12 under other statutes, there is hereby assessed and imposed
13 upon every domestic, foreign, and alien insurer authorized to
14 engage in this state in the business of issuing policies of
15 fire insurance, a regulatory assessment in an amount equal to
16 1 percent of the gross amount of premiums collected by each
17 such insurer on policies of fire insurance issued by it and
18 insuring property in this state. The assessment shall be
19 payable annually on or before March 1 to the Department of
20 Revenue by the insurer on such premiums collected by it during
21 the preceding calendar year.
22 (b) When it is impractical, due to the nature of the
23 business practices within the insurance industry, to determine
24 the percentage of fire insurance contained within a line of
25 insurance written by an insurer on risks located or resident
26 in Florida, the Department of Revenue may establish by rule
27 such percentages for the industry. The Department of Revenue
28 may also amend the percentages as the insurance industry
29 changes its practices concerning the portion of fire insurance
30 within a line of insurance.
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1 Section 35. Subsection (3) is added to section
2 896.102, Florida Statutes, to read:
3 896.102 Currency more than $10,000 received in trade
4 or business; report required; noncompliance penalties.--
5 (3) The Department of Revenue may adopt rules and
6 guidelines to administer and enforce these reporting
7 requirements.
8 Section 36. This act shall take effect July 1 of the
9 year in which enacted.
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2 HOUSE SUMMARY
3
Provides statutory authority for various rules of the
4 Department of Revenue in the following areas:
1. Ad valorem taxes: taxation of recreational
5 vehicles as real property; application of discount rates
for early payment; refunds of overpayments; the meaning
6 of "household" and calculation of income under the
Homestead Property Deferral Act; property appraisers'
7 duties; tax collectors' authority; tax notices and
delinquency information; advertisement of delinquent
8 taxes and payment of advertising costs; dishonored checks
and forfeited bidders' deposits; void and canceled tax
9 certificates; and requirements for bidding on tax
certificates and lands at public auction.
10 2. Intangible taxes: Florida situs of a trust or
portion thereof.
11 3. Sales tax administration: packaging materials;
application of federal excise taxes; automobile loans for
12 driver education; duties of trailer park owners; property
leased by a residential facility for the aged; certain
13 charges to tenants or lessees; travel agent packages;
purchases of boats and aircraft by nonresidents; lease or
14 rental of motor vehicles; newspapers and newspaper
inserts; florists' liability; concessionaires' prizes;
15 service warranties; sales from vending machines;
application of discretionary sales surtaxes with respect
16 to interstate and foreign commerce; air carriers' mileage
apportionment; persons who manufacture property for their
17 own use; improvements to real property; taxes paid in
other jurisdictions; various items purchased for resale
18 or for ones' own use or given away, or converted to ones'
own use; sales of race horses; articles taken in trade;
19 various registration requirements; procedures for
revocation of registration; collection of tax at flea
20 markets; and certain dealers' liability.
4. Sales tax exemptions: entry fees for certain
21 sports events participants; livestock and agricultural
products; food and drinks; medical products and supplies;
22 farm equipment; water; items used for agricultural
purposes; paint color cards and other samples; government
23 contractors; school books and lunches; certain school
materials and supplies and fundraising items; certain
24 items purchased by mobile home lot developers; certain
amounts paid by the Veterans Administration;
25 complimentary and donated foods and drinks; racing dogs;
commercial fishing vessels; requirements with respect to
26 purchases made by representatives or employees of exempt
entities; and the advisory committee which advises on the
27 taxability of foods and medicines.
5. Corporate income tax: determination of when a
28 taxpayer is not in compliance with respect to payments of
tentative tax.
29 6. General tax administration: notices of
assessment or denial of a refund; informal conferences
30 relating to denial of refund; closing agreements; and
technical assistance advisements regarding certain
31 exemptions.
7. Other: establishment of percentages of fire
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1 insurance within an insurance line for the regulatory
assessment on fire insurance premiums; and reporting
2 requirements regarding receipt of more than $10,000 in
currency.
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