Senate Bill 1200c1

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



    Florida Senate - 1999                           CS for SB 1200

    By the Committee on Regulated Industries and Senator Sullivan





    315-2056-99

  1                      A bill to be entitled

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

  3         transactions; amending s. 212.031, F.S.;

  4         providing that the tax on the lease or rental

  5         of or license in real property does not apply

  6         when the property is a public or private street

  7         or right-of-way or certain improvements located

  8         on such property used by a utility or

  9         franchised cable television company for

10         utility, television, or communication purposes;

11         defining the term "utility"; providing an

12         effective date.

13

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

15

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

17  212.031, Florida Statutes, 1998 Supplement, is amended to

18  read:

19         212.031  Lease or rental of or license in real

20  property.--

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

22  that every person is exercising a taxable privilege who

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

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

25  such property is:

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

27         2.  Used exclusively as dwelling units.

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

29  storage spaces under s. 212.03(6).

30         4.  Recreational property or the common elements of a

31  condominium when subject to a lease between the developer or

                                  1

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






    Florida Senate - 1999                           CS for SB 1200
    315-2056-99




  1  owner thereof and the condominium association in its own right

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

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

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

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

  6  or the condominium association shall be fully taxable under

  7  this chapter.

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

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

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

11  or franchised cable television company for utility or

12  communications or television purposes. For purposes of this

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

14  utility services as defined in s. 203.012.

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

16  transportation purposes.

17         7.  Property used at an airport exclusively for the

18  purpose of aircraft landing or aircraft taxiing or property

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

20  passengers or property onto or from aircraft or for fueling

21  aircraft.

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

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

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

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

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

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

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

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

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

31

                                  2

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






    Florida Senate - 1999                           CS for SB 1200
    315-2056-99




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

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

  3  imported or exported shall remain subject to tax except as

  4  provided in sub-subparagraph a.

  5         9.  Property used as an integral part of the

  6  performance of qualified production services.  As used in this

  7  subparagraph, the term "qualified production services" means

  8  any activity or service performed directly in connection with

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

10  212.06(1)(b), and includes:

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

12  managing and scouting, shooting, creation of special and

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

14  electronic, or otherwise), technological modifications,

15  computer graphics, set and stage support (such as

16  electricians, lighting designers and operators, greensmen,

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

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

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

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

21  coaching, consulting, writing, scoring, composing,

22  choreographing, script supervising, directing, producing,

23  transmitting dailies, dubbing, mixing, editing, cutting,

24  looping, printing, processing, duplicating, storing, and

25  distributing;

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

27  alteration, repair, and maintenance of real or personal

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

29  facilities principally required for the performance of those

30  services listed in sub-subparagraph a.; and

31

                                  3

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






    Florida Senate - 1999                           CS for SB 1200
    315-2056-99




  1         c.  Property management services directly related to

  2  property used in connection with the services described in

  3  sub-subparagraphs a. and b.

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

  5  food and drink concessionaire services within the premises of

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

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

  8  stadium, convention hall, exhibition hall, auditorium, or

  9  recreational facility.  A person providing retail

10  concessionaire services involving the sale of food and drink

11  or other tangible personal property within the premises of an

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

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

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

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

16  tangible personal property.

17         11.  Property occupied pursuant to an instrument

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

19  Technical Assistance Advisement issued on or before March 15,

20  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

21  Florida Administrative Code; provided that this subparagraph

22  shall only apply to property occupied by the same person

23  before and after the execution of the subject instrument and

24  only to those payments made pursuant to such instrument,

25  exclusive of renewals and extensions thereof occurring after

26  March 15, 1993.

27         Section 2.  This act shall take effect upon becoming a

28  law.

29

30

31

                                  4

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






    Florida Senate - 1999                           CS for SB 1200
    315-2056-99




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 1200

  3

  4  Provides that the sales tax exemption for franchised cable
    companies from the taxation of leases, rentals, and licenses
  5  in real property applies to the poles, conduits, fixtures and
    similar improvements located on public or private streets or
  6  rights-of-way as well to the public or private street or
    rights-of-way.
  7

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  5