Senate Bill 1156

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



    Florida Senate - 1999                                  SB 1156

    By Senator Silver





    38-941-99                                               See HB

  1                      A bill to be entitled

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

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

  4         providing an exemption for personal or real

  5         property purchased or leased for use in the

  6         operation of a television broadcasting station

  7         that meets specified criteria; requiring return

  8         of tax refunds plus interest and penalties if

  9         certain criteria are not met; providing

10         limitations; providing an effective date.

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

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14         Section 1.  Paragraph (f) of subsection (5) of section

15  212.08, Florida Statutes, 1998 Supplement, is amended to read:

16         212.08  Sales, rental, use, consumption, distribution,

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

18  the rental, the use, the consumption, the distribution, and

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

20  following are hereby specifically exempt from the tax imposed

21  by this chapter.

22         (5)  EXEMPTIONS; ACCOUNT OF USE.--

23         (f)  Motion picture or video equipment used in motion

24  picture or television production activities and sound

25  recording equipment used in the production of master tapes and

26  master records; property purchased or leased to operate

27  certain television broadcasting stations.--

28         1.  Motion picture or video equipment and sound

29  recording equipment purchased or leased for use in this state

30  in production activities is exempt from the tax imposed by

31  this chapter upon an affirmative showing by the purchaser or

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    Florida Senate - 1999                                  SB 1156
    38-941-99                                               See HB




  1  lessee to the satisfaction of the department that the

  2  equipment will be used for production activities.

  3         2.  There is exempt from the tax imposed by this

  4  chapter all personal or real property purchased or leased for

  5  use in the operation of any television broadcasting station

  6  that meets all of the following requirements:

  7         a.  It has been acquired following the conclusion of

  8  bankruptcy proceedings by a previously unrelated owner.  The

  9  station general manager of the acquiring station must submit

10  an affidavit stating that the acquiring station had no

11  ownership interest, or other business relationship, with the

12  previous owner that went through bankruptcy proceedings.

13         b.  It submits an affidavit from its general manager

14  stating that the television broadcasting station or stations

15  under common ownership have established and maintained more

16  than 75 full-time jobs since acquisition.

17         c.  The acquiring owner has invested more than $5

18  million in capital improvements since the acquisition of the

19  television broadcasting station or stations.

20         d.  It is located within the boundaries of a

21  metropolitan statistical area and shares common ownership or

22  management with another television broadcasting station that

23  has been acquired following bankruptcy and that is located in

24  a different metropolitan statistical area.

25         e.  In the year following receipt of a tax refund

26  pursuant to this section, it broadcasts at no cost to the

27  state youth-oriented anti-tobacco public service announcements

28  and programming of a value equal to or greater than the tax

29  refund received by the television broadcasting station in the

30  previous year.  If a television broadcasting station that has

31  received a refund fails to broadcast sufficient public service

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    Florida Senate - 1999                                  SB 1156
    38-941-99                                               See HB




  1  announcements and programming, the taxpayer must return the

  2  refund to the state, together with interest and penalties.

  3         3.  The exemptions exemption provided by this paragraph

  4  shall inure to the taxpayer only through a refund of

  5  previously paid taxes.  With respect to the refund authorized

  6  under subparagraph 2., the maximum refund allowed in any year

  7  shall not exceed $350,000 for any television broadcasting

  8  station or group of television broadcasting stations that

  9  share common ownership or management, and no taxpayer may

10  receive a refund for more than 5 years.  Notwithstanding the

11  provisions of s. 212.095, such refund shall be made within 30

12  days of formal application, which application may be made

13  after the completion of production activities or on a

14  quarterly basis with respect to the refund authorized under

15  subparagraph 1., and on a quarterly basis with respect to the

16  refund authorized under subparagraph 2. Notwithstanding the

17  provisions of chapter 213, the department shall provide the

18  Department of Commerce with a copy of each refund application

19  and the amount of such refund, if any.

20         4.2.  For the purpose of the exemption provided in

21  subparagraph 1.:

22         a.  "Motion picture or video equipment" and "sound

23  recording equipment" includes only equipment meeting the

24  definition of "section 38 property" as defined in s.

25  48(a)(1)(A) and (B)(i) of the Internal Revenue Code that is

26  used by the lessee or purchaser exclusively as an integral

27  part of production activities; however, motion picture or

28  video equipment and sound recording equipment does not include

29  supplies, tape, records, film, or video tape used in

30  productions or other similar items; vehicles or vessels; or

31  general office equipment not specifically suited to production

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    Florida Senate - 1999                                  SB 1156
    38-941-99                                               See HB




  1  activities.  In addition, the term does not include equipment

  2  purchased or leased by television or radio broadcasting or

  3  cable companies licensed by the Federal Communications

  4  Commission.

  5         b.  "Production activities" means activities directed

  6  toward the preparation of a:

  7         (I)  Master tape or master record embodying sound; or

  8         (II)  Motion picture or television production which is

  9  produced for theatrical, commercial, advertising, or

10  educational purposes and utilizes live or animated actions or

11  a combination of live and animated actions. The motion picture

12  or television production shall be commercially produced for

13  sale or for showing on screens or broadcasting on television

14  and may be on film or video tape.

15         Section 2.  This act shall take effect July 1, 1999.

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18                       LEGISLATIVE SUMMARY

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      Provides a sales tax exemption for personal or real
20    property purchased or leased for use in the operation of
      a television broadcasting station that meets specified
21    criteria.  Requires return of tax refunds plus interest
      and penalties if certain criteria are not met.  Limits
22    the amount and duration of such refunds.

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