Senate Bill 2028
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1999 SB 2028
By Senators Webster and Bronson
12-967-99
1 A bill to be entitled
2 An act relating to the tax on sales, use, and
3 other transactions; amending s. 212.02, F.S.;
4 exempting from the definition of the term
5 "retail sale" or "sale at retail" the sale for
6 resale of certain tangible personal property
7 that is used or consumed by a government
8 contractor in the performance of a "qualifying
9 contract," as defined; amending s. 212.06,
10 F.S.; exempting from the taxes imposed by ch.
11 212, F.S., the sale to or use by a government
12 contractor of "overhead materials," as defined;
13 phasing in the exemption; providing legislative
14 intent; providing an effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Paragraph (a) of subsection (14) of section
19 212.02, Florida Statutes, 1998 Supplement, is amended to read:
20 212.02 Definitions.--The following terms and phrases
21 when used in this chapter have the meanings ascribed to them
22 in this section, except where the context clearly indicates a
23 different meaning:
24 (14)(a) "Retail sale" or a "sale at retail" means a
25 sale to a consumer or to any person for any purpose other than
26 for resale in the form of tangible personal property or
27 services taxable under this chapter, and includes all such
28 transactions that may be made in lieu of retail sales or sales
29 at retail. A sale for resale includes a sale of qualifying
30 property. As used in this paragraph, the term "qualifying
31 property" means tangible personal property, other than
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1999 SB 2028
12-967-99
1 electricity, which is used or consumed by a government
2 contractor in the performance of a qualifying contract as
3 defined in s. 212.06(17)(a), the cost of which property is
4 allocated or charged as a direct item of cost to such
5 contract, and title to which property vests in or passes to
6 the government under the contract. The contractor's use of
7 qualifying property in performing a qualifying contract is not
8 a "use" within the meaning ascribed to that term by subsection
9 (20) or any other provision of this chapter.
10 Section 2. Subsection (17) is added to section 212.06,
11 Florida Statutes, 1998 Supplement, to read:
12 212.06 Sales, storage, use tax; collectible from
13 dealers; "dealer" defined; dealers to collect from purchasers;
14 legislative intent as to scope of tax.--
15 (17)(a) Effective July 1, 2003, the taxes imposed by
16 this chapter do not apply to the sale to or use by a
17 government contractor of overhead materials. As used in this
18 subsection, the term "overhead materials" means any tangible
19 personal property, other than electricity, which is used or
20 consumed in the performance of a qualifying contract, the cost
21 of which is allocated in whole or in part to two or more
22 contracts, at least one of which is a qualifying contract, and
23 title to which property vests in or passes to the government
24 under the contract. As used in this subsection, the term
25 "qualifying contract" means a contract with the United States
26 Department of Defense or the National Aeronautics and Space
27 Administration, or a subcontract thereunder, which relates to
28 matters of national defense, to space flight as defined in s.
29 212.02, or to other NASA or Department of Defense aviation or
30 aerospace efforts or programs.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1999 SB 2028
12-967-99
1 (b) Notwithstanding paragraph (a), the tax imposed by
2 this chapter applies to a portion of the sales price or cost
3 price of overhead materials, as follows:
4 1. From July 1, 1999, through June 30, 2000, the tax
5 applies to 80 percent;
6 2. From July 1, 2000, through June 30, 2001, the tax
7 applies to 60 percent;
8 3. From July 1, 2001, through June 30, 2002, the tax
9 applies to 40 percent; and
10 4. From July 1, 2002, through June 30, 2003, the tax
11 applies to 20 percent
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13 of the sales price or cost price of overhead materials.
14 Section 3. It is the intent of the Legislature that
15 section 1 of this act clarifies and confirms existing law with
16 respect to the taxes imposed by chapter 212, Florida Statutes.
17 Section 2 of this act must not be construed as an expression
18 of legislative intent as to the applicability of any tax to
19 any sale or use of overhead materials before July 1, 1999.
20 Furthermore, section 2 of this act does not imply that any
21 transaction or cost that is not described in that section is
22 taxable.
23 Section 4. This act shall take effect July 1, 1999.
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26 SENATE SUMMARY
27 Exempts from the tax on sales, use, and other
transactions the sale for resale of certain tangible
28 personal property that is used or consumed by a
government contractor in the performance of a "qualifying
29 contract," as defined by this act. Exempts from such
taxes the sale to or use by a government contractor of
30 "overhead materials," as defined by this act. Phases in
the latter exemption over a 4-year period ending June 30,
31 2003. Provides legislative intent.
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