Senate Bill 0808

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



    Florida Senate - 1998                                   SB 808

    By Senator Grant





    13-868-98

  1                      A bill to be entitled

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

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

  4         providing an exemption for certain radio

  5         stations and other organizations that conduct

  6         religious activities; providing an effective

  7         date.

  8

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

10

11         Section 1.  Paragraph (o) of subsection (7) of section

12  212.08, Florida Statutes, is amended to read:

13         212.08  Sales, rental, use, consumption, distribution,

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

15  the rental, the use, the consumption, the distribution, and

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

17  following are hereby specifically exempt from the tax imposed

18  by this chapter.

19         (7)  MISCELLANEOUS EXEMPTIONS.--

20         (o)  Religious, charitable, scientific, educational,

21  and veterans' institutions and organizations.--

22         1.  There are exempt from the tax imposed by this

23  chapter transactions involving:

24         a.  Sales or leases directly to churches or sales or

25  leases of tangible personal property by churches;

26         b.  Sales or leases to nonprofit religious, nonprofit

27  charitable, nonprofit scientific, or nonprofit educational

28  institutions when used in carrying on their customary

29  nonprofit religious, nonprofit charitable, nonprofit

30  scientific, or nonprofit educational activities, including

31  church cemeteries; and

                                  1

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






    Florida Senate - 1998                                   SB 808
    13-868-98




  1         c.  Sales or leases to the state headquarters of

  2  qualified veterans' organizations and the state headquarters

  3  of their auxiliaries when used in carrying on their customary

  4  veterans' organization activities. If a qualified veterans'

  5  organization or its auxiliary does not maintain a permanent

  6  state headquarters, then transactions involving sales or

  7  leases to such organization and used to maintain the office of

  8  the highest ranking state official are exempt from the tax

  9  imposed by this chapter.

10         2.  The provisions of this section authorizing

11  exemptions from tax shall be strictly defined, limited, and

12  applied in each category as follows:

13         a.  "Religious institutions" means churches,

14  synagogues, and established physical places for worship at

15  which nonprofit religious services and activities are

16  regularly conducted and carried on. The term "religious

17  institutions" includes nonprofit corporations the sole purpose

18  of which is to provide free transportation services to church

19  members, their families, and other church attendees. The term

20  "religious institutions" also includes state, district, or

21  other governing or administrative offices the function of

22  which is to assist or regulate the customary activities of

23  religious organizations or members. The term "religious

24  institutions" also includes any nonprofit corporation which is

25  qualified as nonprofit pursuant to s. 501(c)(3), Internal

26  Revenue Code of 1986, as amended, which owns and operates a

27  Florida radio or television station, at least 90 percent of

28  the programming of which station consists of programs of a

29  religious nature, and the financial support for which,

30  exclusive of receipts for broadcasting from other nonprofit

31  organizations, is predominantly from contributions from the

                                  2

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






    Florida Senate - 1998                                   SB 808
    13-868-98




  1  general public. The term "religious institutions" also

  2  includes any nonprofit corporation which is qualified as

  3  nonprofit pursuant to s. 501(c)(3), Internal Revenue Code of

  4  1986, as amended, which provides regular religious services to

  5  Florida state prisoners and which from its own established

  6  physical place of worship, operates a ministry providing

  7  worship and services of a charitable nature to the community

  8  on a weekly basis. The term "religious institutions" also

  9  includes any nonprofit corporation that is qualified as

10  nonprofit pursuant to s. 501(c)(3), United States Internal

11  Revenue Code of 1986, as amended, the sole or primary function

12  of which is to provide, at any location, nonprofit religious

13  services, evangelistic services, religious education, or

14  missionary activities for, or in direct participation with,

15  one or more churches, synagogues, or established physical

16  places of worship at which nonprofit religious services and

17  activities are regularly conducted.

18         b.  "Charitable institutions" means only nonprofit

19  corporations qualified as nonprofit pursuant to s. 501(c)(3),

20  Internal Revenue Code of 1954, as amended, and other nonprofit

21  entities, the sole or primary function of which is to provide,

22  or to raise funds for organizations which provide, one or more

23  of the following services if a reasonable percentage of such

24  service is provided free of charge, or at a substantially

25  reduced cost, to persons, animals, or organizations that are

26  unable to pay for such service:

27         (I)  Medical aid for the relief of disease, injury, or

28  disability;

29         (II)  Regular provision of physical necessities such as

30  food, clothing, or shelter;

31

                                  3

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






    Florida Senate - 1998                                   SB 808
    13-868-98




  1         (III)  Services for the prevention of or rehabilitation

  2  of persons from alcoholism or drug abuse; the prevention of

  3  suicide; or the alleviation of mental, physical, or sensory

  4  health problems;

  5         (IV)  Social welfare services including adoption

  6  placement, child care, community care for the elderly, and

  7  other social welfare services which clearly and substantially

  8  benefit a client population which is disadvantaged or suffers

  9  a hardship;

10         (V)  Medical research for the relief of disease,

11  injury, or disability;

12         (VI)  Legal services; or

13         (VII)  Food, shelter, or medical care for animals or

14  adoption services, cruelty investigations, or education

15  programs concerning animals;

16

17  and the term includes groups providing volunteer staff to

18  organizations designated as charitable institutions under this

19  sub-subparagraph; nonprofit organizations the sole or primary

20  purpose of which is to coordinate, network, or link other

21  institutions designated as charitable institutions under this

22  sub-subparagraph with those persons, animals, or organizations

23  in need of their services; and nonprofit national, state,

24  district, or other governing, coordinating, or administrative

25  organizations the sole or primary purpose of which is to

26  represent or regulate the customary activities of other

27  institutions designated as charitable institutions under this

28  sub-subparagraph.  Notwithstanding any other requirement of

29  this section, any blood bank that relies solely upon volunteer

30  donations of blood and tissue, that is licensed under chapter

31  483, and that qualifies as tax exempt under s. 501(c)(3) of

                                  4

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






    Florida Senate - 1998                                   SB 808
    13-868-98




  1  the Internal Revenue Code constitutes a charitable institution

  2  and is exempt from the tax imposed by this chapter. Sales to a

  3  health system, qualified as nonprofit pursuant to s.

  4  501(c)(3), Internal Revenue Code of 1986, as amended, which

  5  filed an application for exemption with the department prior

  6  to April 5, 1997, and which application is subsequently

  7  approved, shall be exempt as to any unpaid taxes on purchases

  8  made from January 1, 1994, to June 1, 1997.

  9         c.  "Scientific organizations" means scientific

10  organizations which hold current exemptions from federal

11  income tax under s. 501(c)(3) of the Internal Revenue Code and

12  also means organizations the purpose of which is to protect

13  air and water quality or the purpose of which is to protect

14  wildlife and which hold current exemptions from the federal

15  income tax under s. 501(c)(3) of the Internal Revenue Code.

16         d.  "Educational institutions" means state

17  tax-supported or parochial, church and nonprofit private

18  schools, colleges, or universities which conduct regular

19  classes and courses of study required for accreditation by, or

20  membership in, the Southern Association of Colleges and

21  Schools, the Department of Education, the Florida Council of

22  Independent Schools, or the Florida Association of Christian

23  Colleges and Schools, Inc., or nonprofit private schools which

24  conduct regular classes and courses of study accepted for

25  continuing education credit by a Board of the Division of

26  Medical Quality Assurance of the Department of Business and

27  Professional Regulation or which conduct regular classes and

28  courses of study accepted for continuing education credit by

29  the American Medical Association. Nonprofit libraries, art

30  galleries, performing arts centers that provide educational

31  programs to school children, which programs involve

                                  5

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






    Florida Senate - 1998                                   SB 808
    13-868-98




  1  performances or other educational activities at the performing

  2  arts center and serve a minimum of 50,000 school children a

  3  year, and museums open to the public are defined as

  4  educational institutions and are eligible for exemption. The

  5  term "educational institutions" includes private nonprofit

  6  organizations the purpose of which is to raise funds for

  7  schools teaching grades kindergarten through high school,

  8  colleges, and universities. The term "educational

  9  institutions" includes any nonprofit newspaper of free or paid

10  circulation primarily on university or college campuses which

11  holds a current exemption from federal income tax under s.

12  501(c)(3) of the Internal Revenue Code, and any educational

13  television or radio network or system established pursuant to

14  s. 229.805 or s. 229.8051 and any nonprofit television or

15  radio station which is a part of such network or system and

16  which holds a current exemption from federal income tax under

17  s. 501(c)(3) of the Internal Revenue Code. The term

18  "educational institutions" also includes state, district, or

19  other governing or administrative offices the function of

20  which is to assist or regulate the customary activities of

21  educational organizations or members. The term "educational

22  institutions" also includes a nonprofit educational cable

23  consortium which holds a current exemption from federal income

24  tax under s. 501(c)(3) of the Internal Revenue Code of 1986,

25  as amended, whose primary purpose is the delivery of

26  educational and instructional cable television programming and

27  whose members are composed exclusively of educational

28  organizations which hold a valid consumer certificate of

29  exemption and which are either an educational institution as

30  defined in this sub-subparagraph, or qualified as a nonprofit

31

                                  6

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






    Florida Senate - 1998                                   SB 808
    13-868-98




  1  organization pursuant to s. 501(c)(3) of the Internal Revenue

  2  Code of 1986, as amended.

  3         e.  "Veterans' organizations" means nationally

  4  chartered or recognized veterans' organizations, including,

  5  but not limited to, Florida chapters of the Paralyzed Veterans

  6  of America, Catholic War Veterans of the U.S.A., Jewish War

  7  Veterans of the U.S.A., and the Disabled American Veterans,

  8  Department of Florida, Inc., which hold current exemptions

  9  from federal income tax under s. 501(c)(4) or (19) of the

10  Internal Revenue Code.

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

12

13            *****************************************

14                          SENATE SUMMARY

15    Redefines the term "religious institutions" for purposes
      of exemption from the tax on sales, use, and other
16    transactions to include certain owners of radio stations
      and certain organizations that provide religious
17    services, evangelistic services, religious education, or
      missionary activities in conjunction with other religious
18    organizations.

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  7