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





                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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11  Senator Horne moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Paragraph (a) of subsection (1) of section

18  212.031, Florida Statutes, 1998 Supplement, is amended to

19  read:

20         212.031  Lease or rental of or license in real

21  property.--

22         (1)(a)  It is declared to be the legislative intent

23  that every person is exercising a taxable privilege who

24  engages in the business of renting, leasing, letting, or

25  granting a license for the use of any real property unless

26  such property is:

27         1.  Assessed as agricultural property under s. 193.461.

28         2.  Used exclusively as dwelling units.

29         3.  Property subject to tax on parking, docking, or

30  storage spaces under s. 212.03(6).

31         4.  Recreational property or the common elements of a

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





 1  condominium when subject to a lease between the developer or

 2  owner thereof and the condominium association in its own right

 3  or as agent for the owners of individual condominium units or

 4  the owners of individual condominium units. However, only the

 5  lease payments on such property shall be exempt from the tax

 6  imposed by this chapter, and any other use made by the owner

 7  or the condominium association shall be fully taxable under

 8  this chapter.

 9         5.  A public or private street or right-of-way and

10  poles, conduits, fixtures, and similar improvements located on

11  such streets or rights-of-way, occupied or used by a utility

12  or franchised cable television company for utility or

13  communications or television purposes. For purposes of this

14  subparagraph, the term "utility" means any person providing

15  utility services as defined in s. 203.012. This exception also

16  applies to property, excluding buildings, wherever located, on

17  which antennas, cables, adjacent accessory structures, or

18  adjacent accessory equipment used in the provision of

19  cellular, enhanced specialized mobile radio, or personal

20  communications services are placed.

21         6.  A public street or road which is used for

22  transportation purposes.

23         7.  Property used at an airport exclusively for the

24  purpose of aircraft landing or aircraft taxiing or property

25  used by an airline for the purpose of loading or unloading

26  passengers or property onto or from aircraft or for fueling

27  aircraft.

28         8.a.  Property used at a port authority, as defined in

29  s. 315.02(2), exclusively for the purpose of oceangoing

30  vessels or tugs docking, or such vessels mooring on property

31  used by a port authority for the purpose of loading or

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





 1  unloading passengers or cargo onto or from such a vessel, or

 2  property used at a port authority for fueling such vessels, or

 3  to the extent that the amount paid for the use of any property

 4  at the port is based on the charge for the amount of tonnage

 5  actually imported or exported through the port by a tenant.

 6         b.  The amount charged for the use of any property at

 7  the port in excess of the amount charged for tonnage actually

 8  imported or exported shall remain subject to tax except as

 9  provided in sub-subparagraph a.

10         9.  Property used as an integral part of the

11  performance of qualified production services.  As used in this

12  subparagraph, the term "qualified production services" means

13  any activity or service performed directly in connection with

14  the production of a qualified motion picture, as defined in s.

15  212.06(1)(b), and includes:

16         a.  Photography, sound and recording, casting, location

17  managing and scouting, shooting, creation of special and

18  optical effects, animation, adaptation (language, media,

19  electronic, or otherwise), technological modifications,

20  computer graphics, set and stage support (such as

21  electricians, lighting designers and operators, greensmen,

22  prop managers and assistants, and grips), wardrobe (design,

23  preparation, and management), hair and makeup (design,

24  production, and application), performing (such as acting,

25  dancing, and playing), designing and executing stunts,

26  coaching, consulting, writing, scoring, composing,

27  choreographing, script supervising, directing, producing,

28  transmitting dailies, dubbing, mixing, editing, cutting,

29  looping, printing, processing, duplicating, storing, and

30  distributing;

31         b.  The design, planning, engineering, construction,

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





 1  alteration, repair, and maintenance of real or personal

 2  property including stages, sets, props, models, paintings, and

 3  facilities principally required for the performance of those

 4  services listed in sub-subparagraph a.; and

 5         c.  Property management services directly related to

 6  property used in connection with the services described in

 7  sub-subparagraphs a. and b.

 8         10.  Leased, subleased, or rented to a person providing

 9  food and drink concessionaire services within the premises of

10  a movie theater, a business operated under a permit issued

11  pursuant to chapter 550, or any publicly owned arena, sports

12  stadium, convention hall, exhibition hall, auditorium, or

13  recreational facility.  A person providing retail

14  concessionaire services involving the sale of food and drink

15  or other tangible personal property within the premises of an

16  airport shall be subject to tax on the rental of real property

17  used for that purpose, but shall not be subject to the tax on

18  any license to use the property.  For purposes of this

19  subparagraph, the term "sale" shall not include the leasing of

20  tangible personal property.

21         11.  Property occupied pursuant to an instrument

22  calling for payments which the department has declared, in a

23  Technical Assistance Advisement issued on or before March 15,

24  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

25  Florida Administrative Code; provided that this subparagraph

26  shall only apply to property occupied by the same person

27  before and after the execution of the subject instrument and

28  only to those payments made pursuant to such instrument,

29  exclusive of renewals and extensions thereof occurring after

30  March 15, 1993.

31         Section 2.  Paragraph (e) of subsection (1) of section

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





 1  212.05, Florida Statutes, 1998 Supplement, is amended to read:

 2         212.05  Sales, storage, use tax.--It is hereby declared

 3  to be the legislative intent that every person is exercising a

 4  taxable privilege who engages in the business of selling

 5  tangible personal property at retail in this state, including

 6  the business of making mail order sales, or who rents or

 7  furnishes any of the things or services taxable under this

 8  chapter, or who stores for use or consumption in this state

 9  any item or article of tangible personal property as defined

10  herein and who leases or rents such property within the state.

11         (1)  For the exercise of such privilege, a tax is

12  levied on each taxable transaction or incident, which tax is

13  due and payable as follows:

14         (e)1.  At the rate of 6 percent on charges for:

15         a.  All telegraph messages and long-distance telephone

16  calls beginning and terminating in this state,

17  telecommunication service as defined in s. 203.012, and those

18  services described in s. 203.012(2)(a), except that the tax

19  rate for charges for telecommunication service is 7 percent.

20  The tax on calls made with a prepaid telephone calling card

21  shall be collected at the time of sale and remitted by the

22  dealer selling or recharging a prepaid telephone card.

23         (I)  A prepaid telephone card or authorization number

24  means the right to exclusively make telephone calls that must

25  be paid for in advance and that enable the origination of

26  calls using an access number, prepaid mobile account, or

27  authorization code, whether manually or electronically dialed.

28         (II)  If the sale or recharge of the prepaid telephone

29  calling card does not take place at the dealer's place of

30  business, it shall be deemed to take place at the customer's

31  shipping address or, if no item is shipped, at the customer's

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





 1  address or the location associated with the customer's mobile

 2  telephone number.

 3         (III)  The prepaid phone card constitutes property in

 4  this state and subjects the selling dealer to the jurisdiction

 5  of this state for purposes of this subsection.

 6         b.  Any television system program service.

 7         c.  The installation of telecommunication and

 8  telegraphic equipment.

 9         d.  Electrical power or energy, except that the tax

10  rate for charges for electrical power or energy is 7 percent.

11         2.  For purposes of this chapter, "television system

12  program service" means the transmitting, by any means, of any

13  audio or video signal to a subscriber for other than

14  retransmission, or the installing, connecting, reconnecting,

15  disconnecting, moving, or changing of any equipment related to

16  such service.  For purposes of this chapter, the term

17  "telecommunication service" does not include local service

18  provided through a pay telephone. The provisions of s.

19  212.17(3), regarding credit for tax paid on charges

20  subsequently found to be worthless, shall be equally

21  applicable to any tax paid under the provisions of this

22  section on charges for telecommunication or telegraph services

23  or electric power subsequently found to be uncollectible. The

24  word "charges" in this paragraph does not include any excise

25  or similar tax levied by the Federal Government, any political

26  subdivision of the state, or any municipality upon the

27  purchase or sale of telecommunication, television system

28  program, or telegraph service or electric power, which tax is

29  collected by the seller from the purchaser.

30         3.  Telegraph messages and telecommunication services

31  which originate or terminate in this state, other than

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





 1  interstate private communication services, and are billed to a

 2  customer, telephone number, or device located within this

 3  state are taxable under this paragraph.  Interstate private

 4  communication services are taxable under this paragraph as

 5  follows:

 6         a.  One hundred percent of the charge imposed at each

 7  channel termination point within this state;

 8         b.  One hundred percent of the charge imposed for the

 9  total channel mileage between each channel termination point

10  within this state; and

11         c.  The portion of the interstate interoffice channel

12  mileage charge as determined by multiplying said charge times

13  a fraction, the numerator of which is the air miles between

14  the last channel termination point in this state and the

15  vertical and horizontal coordinates, 7856 and 1756,

16  respectively, and the denominator of which is the air miles

17  between the last channel termination point in this state and

18  the first channel termination point outside this state.  The

19  denominator of this fraction shall be adjusted, if necessary,

20  by adding the numerator of said fraction to similarly

21  determined air miles in the state in which the other channel

22  termination point is located, so that the summation of the

23  apportionment factor for this state and the apportionment

24  factor for the other state is not greater than one, to ensure

25  that no more than 100 percent of the interstate interoffice

26  channel mileage charge can be taxed by this state and another

27  state.

28         4.  The tax imposed pursuant to this paragraph shall

29  not exceed $50,000 per calendar year on charges to any person

30  for interstate telecommunications services defined in s.

31  203.012(4) and (7)(b), if the majority of such services used

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





 1  by such person are for communications originating outside of

 2  this state and terminating in this state.  This exemption

 3  shall only be granted to holders of a direct pay permit issued

 4  pursuant to this subparagraph.  No refunds shall be given for

 5  taxes paid prior to receiving a direct pay permit. Upon

 6  application, the department may issue a direct pay permit to

 7  the purchaser of telecommunications services authorizing such

 8  purchaser to pay tax on such services directly to the

 9  department. Any vendor furnishing telecommunications services

10  to the holder of a valid direct pay permit shall be relieved

11  of the obligation to collect and remit the tax on such

12  service. Tax payments and returns pursuant to a direct pay

13  permit shall be monthly. For purposes of this subparagraph,

14  the term "person" shall be limited to a single legal entity

15  and shall not be construed as meaning a group or combination

16  of affiliated entities or entities controlled by one person or

17  group of persons.

18         5.  If the sale of a television system program service,

19  as defined in this paragraph, also involves the sale of an

20  item exempt under s. 212.08(7)(j), the tax shall be applied to

21  the value of the taxable service when it is sold separately.

22  If the company does not offer this service separately, the

23  consideration paid shall be separately identified and stated

24  with respect to the taxable and exempt portions of the

25  transaction as a condition of the exemption, except that the

26  amount identified as taxable shall not be less than the cost

27  of the service.

28         Section 3.  This act shall take effect July 1, 1999.

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1200

    Amendment No.    





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

 2  And the title is amended as follows:

 3         On page 1, lines 7-12, delete those lines

 4

 5  and insert:

 6         or right-of-way used by a utility or franchised

 7         cable television company for utility,

 8         television, or communication purposes;

 9         providing a definition for the term "utility";

10         amending s. 212.05, F.S.; providing that the

11         sales tax on prepaid calling cards will be

12         assessed at the point of sale of the card;

13         providing an effective date.

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