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





                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Starks offered the following:

12

13         Amendment to Amendment (830481) (with title amendment) 

14         On page 5, line 7 through page 7, line 17

15  remove from the amendment:  All said lines

16

17  and insert in lieu thereof:  Section 2.  (1)  Section

18  288.1258, Florida Statutes, is created to read:

19         288.1258  Entertainment industry qualified production

20  companies; application procedure; categories; duties of the

21  Department of Revenue; records and reports.--

22         (1)  PRODUCTION COMPANIES AUTHORIZED TO APPLY.--

23         (a)  Any production company engaged in this state in

24  the production of motion pictures, made-for-TV motion

25  pictures, television series, commercial advertising, music

26  videos, or music recordings may submit an application to the

27  Office of the Film Commissioner to be approved as a qualified

28  production company for the purpose of receiving a sales and

29  use tax certificate of exemption from the Department of

30  Revenue.

31         (b)  For the purposes of this section, "qualified

                                  1

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  production company" means any production company that has

 2  submitted a properly completed application to the Office of

 3  the Film Commissioner and that is subsequently qualified by

 4  that office.

 5         (2)  APPLICATION PROCEDURE.--

 6         (a)1.  The Office of the Film Commissioner shall

 7  establish a process by which an entertainment industry

 8  production company may be approved by the office as a

 9  qualified production company and may receive a certificate of

10  exemption from the Department of Revenue for the sales and use

11  tax exemptions under ss. 212.031, 212.06, and 212.08.

12         2.  Upon determination by the Office of the Film

13  Commissioner that a production company meets the established

14  approval criteria and qualifies for exemption, the Office of

15  the Film Commissioner shall forward the approved application

16  or application renewal or extension to the Department of

17  Revenue, which shall issue a certificate of exemption.

18         3.  The Office of the Film Commissioner shall deny an

19  application or application for renewal or extension from a

20  production company if it determines that the production

21  company does not meet the established approval criteria.

22         (b)  The Office of the Film Commissioner shall develop,

23  with the cooperation of the Department of Revenue and local

24  government entertainment industry promotion agencies, a

25  standardized application form for use in approving qualified

26  production companies.

27         1.  The application form shall include, but not be

28  limited to, production-related information on employment,

29  proposed budgets, planned purchases of items exempted from

30  sales and use taxes under ss. 212.031, 212.06, and 212.08, a

31  signed affirmation from the applicant that any items purchased

                                  2

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  for which the applicant is seeking a tax exemption are

 2  intended for use exclusively as an integral part of

 3  entertainment industry preproduction, production, or

 4  postproduction activities engaged in primarily in this state,

 5  and a signed affirmation from the Office of the Film

 6  Commissioner that the information on the application form has

 7  been verified and is correct. In lieu of information on

 8  projected employment, proposed budgets, or planned purchases

 9  of exempted items, a production company seeking a 1-year

10  certificate of exemption may submit summary historical data on

11  employment, production budgets, and purchases of exempted

12  items related to production activities in this state. Any

13  information gathered from production companies for the

14  purposes of this section shall be considered confidential

15  taxpayer information and shall be disclosed only as provided

16  in s. 213.053.

17         2.  The application form may be distributed to

18  applicants by the Office of the Film Commissioner or local

19  film commissions.

20         (c)  All applications, renewals, and extensions for

21  designation as a qualified production company shall be

22  processed by the Office of the Film Commissioner.

23         (d)  In the event that the Department of Revenue

24  determines that a production company no longer qualifies for a

25  certificate of exemption, or has used a certificate of

26  exemption for purposes other than those authorized by this

27  section and chapter 212, the Department of Revenue shall

28  revoke the certificate of exemption of that production

29  company, and any sales or use taxes exempted on items

30  purchased or leased by the production company during the time

31  such company did not qualify for a certificate of exemption or

                                  3

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  improperly used a certificate of exemption shall become

 2  immediately due to the Department of Revenue, along with

 3  interest and penalty as provided by s. 212.12.  In addition to

 4  the other penalties imposed by law, any person who knowingly

 5  and willfully falsifies an application, or uses a certificate

 6  of exemption for purposes other than those authorized by this

 7  section and chapter 212, commits a felony of the third degree,

 8  punishable as provided in s. 775.082, s. 775.083, and s.

 9  775.084.

10         (3)  CATEGORIES.--

11         (a)1.  A production company may be qualified for

12  designation as a qualified production company for a period of

13  1 year if the company has operated a business in Florida at a

14  permanent address for a period of 12 consecutive months.  Such

15  a qualified production company shall receive a single 1-year

16  certificate of exemption from the Department of Revenue for

17  the sales and use tax exemptions under ss. 212.031, 212.06,

18  and 212.08, which certificate shall expire 1 year after

19  issuance or upon the cessation of business operations in the

20  state, at which time the certificate shall be surrendered to

21  the Department of Revenue.

22         2.  The Office of the Film Commissioner shall develop a

23  method by which a qualified production company may annually

24  renew a 1-year certificate of exemption for a period of up to

25  5 years without requiring the production company to resubmit a

26  new application during that 5-year period.

27         3.  Any qualified production company may submit a new

28  application for a 1-year certificate of exemption upon the

29  expiration of that company's certificate of exemption.

30         (b)1.  A production company may be qualified for

31  designation as a qualified production company for a period of

                                  4

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  90 days. Such production company shall receive a single 90-day

 2  certificate of exemption from the Department of Revenue for

 3  the sales and use tax exemptions under ss. 212.031, 212.06,

 4  and 212.08, which certificate shall expire 90 days after

 5  issuance, with extensions contingent upon approval of the

 6  Office of the Film Commissioner.  The certificate shall be

 7  surrendered to the Department of Revenue upon its expiration.

 8         2.  Any production company may submit a new application

 9  for a 90-day certificate of exemption upon the expiration of

10  that company's certificate of exemption.

11         (4)  DUTIES OF THE DEPARTMENT OF REVENUE.--

12         (a)  The Department of Revenue shall issue a numbered

13  certificate of exemption to a qualified production company

14  within 5 working days of the receipt of a properly completed

15  and approved application, application renewal, or application

16  extension from the Office of the Film Commissioner.

17         (b)  The Department of Revenue may promulgate such

18  rules and shall prescribe and publish such forms as may be

19  necessary to effectuate the purposes of this section or any of

20  the sales tax exemptions which are reasonably related to the

21  provisions of this section.

22         (c)  The Department of Revenue is authorized to

23  establish audit procedures in accordance with the provisions

24  of ss. 212.12, 212.13, and 212.34 which relate to the sales

25  tax exemption provisions of this section.

26         (5)  RELATIONSHIP OF TAX EXEMPTIONS TO INDUSTRY GROWTH;

27  REPORT TO THE LEGISLATURE.--The Office of the Film

28  Commissioner shall keep annual records from the information

29  provided on taxpayer applications for tax exemption

30  certificates beginning January 1, 2000. These records shall

31  reflect a percentage comparison of the annual amount of funds

                                  5

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  exempted to the estimated amount of funds expended in relation

 2  to entertainment industry products. In addition, the office

 3  shall maintain data showing annual growth in Florida-based

 4  entertainment industry companies and entertainment industry

 5  employment and wages. The Office of the Film Commissioner

 6  shall report this information to the Legislature by no later

 7  than December 1 of each year.

 8         (2)  This section shall take effect on the same date as

 9  House Bill 985 or similar legislation creating the Office of

10  the Film Commissioner takes effect, if such legislation is

11  adopted in the same legislative session or an extension

12  thereof.

13         Section 3.  (1)  Paragraph (a) of subsection (1) of

14  section 212.031, Florida Statutes, 1998 Supplement, is amended

15  to read:

16         212.031  Lease or rental of or license in real

17  property.--

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

19  that every person is exercising a taxable privilege who

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

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

22  such property is:

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

24         2.  Used exclusively as dwelling units.

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

26  storage spaces under s. 212.03(6).

27         4.  Recreational property or the common elements of a

28  condominium when subject to a lease between the developer or

29  owner thereof and the condominium association in its own right

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

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

                                  6

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





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

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

 3  or the condominium association shall be fully taxable under

 4  this chapter.

 5         5.  A public or private street or right-of-way occupied

 6  or used by a utility for utility purposes.

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

 8  transportation purposes.

 9         7.  Property used at an airport exclusively for the

10  purpose of aircraft landing or aircraft taxiing or property

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

12  passengers or property onto or from aircraft or for fueling

13  aircraft.

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

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

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

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

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

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

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

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

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

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

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

25  imported or exported shall remain subject to tax except as

26  provided in sub-subparagraph a.

27         9.  Property used as an integral part of the

28  performance of qualified production services.  As used in this

29  subparagraph, the term "qualified production services" means

30  any activity or service performed directly in connection with

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

                                  7

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





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

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

 3  managing and scouting, shooting, creation of special and

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

 5  electronic, or otherwise), technological modifications,

 6  computer graphics, set and stage support (such as

 7  electricians, lighting designers and operators, greensmen,

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

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

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

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

12  coaching, consulting, writing, scoring, composing,

13  choreographing, script supervising, directing, producing,

14  transmitting dailies, dubbing, mixing, editing, cutting,

15  looping, printing, processing, duplicating, storing, and

16  distributing;

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

18  alteration, repair, and maintenance of real or personal

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

20  facilities principally required for the performance of those

21  services listed in sub-subparagraph a.; and

22         c.  Property management services directly related to

23  property used in connection with the services described in

24  sub-subparagraphs a. and b.

25

26  This exemption will inure to the taxpayer upon presentation of

27  the certificate of exemption issued to the taxpayer under the

28  provisions of s. 288.1258.

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

30  food and drink concessionaire services within the premises of

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

                                  8

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





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

 2  stadium, convention hall, exhibition hall, auditorium, or

 3  recreational facility.  A person providing retail

 4  concessionaire services involving the sale of food and drink

 5  or other tangible personal property within the premises of an

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

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

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

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

10  tangible personal property.

11         11.  Property occupied pursuant to an instrument

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

13  Technical Assistance Advisement issued on or before March 15,

14  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

15  Florida Administrative Code; provided that this subparagraph

16  shall only apply to property occupied by the same person

17  before and after the execution of the subject instrument and

18  only to those payments made pursuant to such instrument,

19  exclusive of renewals and extensions thereof occurring after

20  March 15, 1993.

21         (2)  This section shall take effect January 1, 2000, if

22  House Bill 985 or similar legislation creating the Office of

23  the Film Commissioner is adopted in the same legislative

24  session or an extension thereof.

25          Section 4.  (1)  Paragraph (b) of subsection (1) of

26  section 212.06, Florida Statutes, 1998 Supplement, is amended

27  to read:

28         212.06  Sales, storage, use tax; collectible from

29  dealers; "dealer" defined; dealers to collect from purchasers;

30  legislative intent as to scope of tax.--

31         (1)

                                  9

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1         (b)  Except as otherwise provided, any person who

 2  manufactures, produces, compounds, processes, or fabricates in

 3  any manner tangible personal property for his or her own use

 4  shall pay a tax upon the cost of the product manufactured,

 5  produced, compounded, processed, or fabricated without any

 6  deduction therefrom on account of the cost of material used,

 7  labor or service costs, or transportation charges,

 8  notwithstanding the provisions of s. 212.02 defining "cost

 9  price."  However, the tax levied under this paragraph shall

10  not be imposed upon any person who manufactures or produces

11  electrical power or energy, steam energy, or other energy at a

12  single location, when such power or energy is used directly

13  and exclusively at such location, or at other locations if the

14  energy is transferred through facilities of the owner in the

15  operation of machinery or equipment that is used to

16  manufacture, process, compound, produce, fabricate, or prepare

17  for shipment tangible personal property for sale or to operate

18  pollution control equipment, maintenance equipment, or

19  monitoring or control equipment used in such operations.  The

20  manufacture or production of electrical power or energy that

21  is used for space heating, lighting, office equipment, or

22  air-conditioning or any other nonmanufacturing, nonprocessing,

23  noncompounding, nonproducing, nonfabricating, or nonshipping

24  activity is taxable. Electrical power or energy consumed or

25  dissipated in the transmission or distribution of electrical

26  power or energy for resale is also not taxable.  Fabrication

27  labor shall not be taxable when a person is using his or her

28  own equipment and personnel, for his or her own account, as a

29  producer, subproducer, or coproducer of a qualified motion

30  picture.  For purposes of this chapter, the term "qualified

31  motion picture" means all or any part of a series of related

                                  10

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  images, either on film, tape, or other embodiment, including,

 2  but not limited to, all items comprising part of the original

 3  work and film-related products derived therefrom as well as

 4  duplicates and prints thereof and all sound recordings created

 5  to accompany a motion picture, which is produced, adapted, or

 6  altered for exploitation in, on, or through any medium or

 7  device and at any location, primarily for entertainment,

 8  commercial, industrial, or educational purposes. This

 9  exemption for fabrication labor associated with production of

10  a qualified motion picture will inure to the taxpayer upon

11  presentation of the certificate of exemption issued to the

12  taxpayer under the provisions of s. 288.1258. A person who

13  manufactures factory-built buildings for his or her own use in

14  the performance of contracts for the construction or

15  improvement of real property shall pay a tax only upon the

16  person's cost price of items used in the manufacture of such

17  buildings.

18         (2)  This section shall take effect January 1, 2000, if

19  House Bill 985 or similar legislation creating the Office of

20  the Film Commissioner is adopted in the same legislative

21  session or an extension thereof.

22          Section 5.  (1)  Section 212.0602, Florida Statutes,

23  is amended to read.

24         212.0602  Education; limited exemption.--To facilitate

25  investment in education and job training, there is also exempt

26  from the taxes levied under this chapter, subject to the

27  provisions of this section, the purchase or lease of

28  materials, equipment, and other items or the license in or

29  lease of real property by any entity, institution, or

30  organization that is primarily engaged in teaching students to

31  perform any of the activities or services described in s.

                                  11

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  212.031(1)(a)9., that conducts classes at a fixed location

 2  located in this state, that is licensed under chapter 246, and

 3  that has at least 500 enrolled students.  Any entity,

 4  institution, or organization meeting the requirements of this

 5  section shall be deemed to qualify for the exemptions in ss.

 6  212.031(1)(a)9. and 212.08(5)(f) and (12), and to qualify for

 7  an exemption for its purchase or lease of materials,

 8  equipment, and other items used for education or demonstration

 9  of the school's curriculum, including supporting operations.

10  Nothing in this section shall preclude an entity described in

11  this section from qualifying for any other exemption provided

12  for in this chapter.

13         (2)  This section shall take effect January 1, 2000, if

14  House Bill 985 or similar legislation creating the Office of

15  the Film Commissioner is adopted in the same legislative

16  session or an extension thereof.

17         Section 6.  (1)  Paragraph (f) of subsection (5) is

18  amended and paragraph (m) is added to said subsection of

19  section 212.08, Florida Statutes, 1998 Supplement, and

20  subsection (12) of said section is amended to read:

21         212.08  Sales, rental, use, consumption, distribution,

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

23  the rental, the use, the consumption, the distribution, and

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

25  following are hereby specifically exempt from the tax imposed

26  by this chapter.

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

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

29  picture or television production activities and sound

30  recording equipment used in the production of master tapes and

31  master records.--

                                  12

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1         1.  Motion picture or video equipment and sound

 2  recording equipment purchased or leased for use in this state

 3  in production activities is exempt from the tax imposed by

 4  this chapter upon an affirmative showing by the purchaser or

 5  lessee to the satisfaction of the department that the

 6  equipment will be used for production activities. The

 7  exemption provided by this paragraph shall inure to the

 8  taxpayer upon presentation of the certificate of exemption

 9  issued to the taxpayer under the provisions of s. 288.1258.

10  only through a refund of previously paid taxes.

11  Notwithstanding the provisions of s. 212.095, such refund

12  shall be made within 30 days of formal application, which

13  application may be made after the completion of production

14  activities or on a quarterly basis. Notwithstanding the

15  provisions of chapter 213, the department shall provide the

16  Department of Commerce with a copy of each refund application

17  and the amount of such refund, if any.

18         2.  For the purpose of the exemption provided in

19  subparagraph 1.:

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

21  recording equipment" includes only equipment meeting the

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

23  48(a)(1)(A) and (B)(i) of the Internal Revenue Code that is

24  used by the lessee or purchaser exclusively as an integral

25  part of production activities; however, motion picture or

26  video equipment and sound recording equipment does not include

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

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

29  general office equipment not specifically suited to production

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

31  purchased or leased by television or radio broadcasting or

                                  13

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  cable companies licensed by the Federal Communications

 2  Commission.

 3         b.  "Production activities" means activities directed

 4  toward the preparation of a:

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

 6         (II)  Motion picture or television production which is

 7  produced for theatrical, commercial, advertising, or

 8  educational purposes and utilizes live or animated actions or

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

10  or television production shall be commercially produced for

11  sale or for showing on screens or broadcasting on television

12  and may be on film or video tape.

13         (m)  Property purchased or leased to produce, transmit,

14  receive, or redistribute digital television signals.--

15         1.  There is exempt from the tax imposed by this

16  chapter all machinery or equipment purchased or leased in this

17  state for use by a television studio, television network,

18  television production company, or federally licensed

19  television station in the production, origination, broadcast,

20  transmission, receipt, or redistribution of digital television

21  signals.

22         2.  The exemption provided by this paragraph shall

23  inure to the taxpayer only through a refund of previously paid

24  taxes.  Notwithstanding the provisions of s. 212.095, such

25  refund shall be made within 30 days of formal application,

26  which application may be made after the completion of

27  production activities or on a quarterly basis.

28  Notwithstanding the provisions of chapter 213, the department

29  shall provide the Department of Commerce with a copy of each

30  refund application and the amount of such refund, if any.

31         3.  For the purpose of the exemption provided in this

                                  14

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  paragraph, "machinery and equipment" means machinery or

 2  equipment as described in 47 C.F.R., part 73, and "section 38

 3  property" as defined in s. 48(a)(1)(A) and (B)(i) of the

 4  Internal Revenue Code, purchased or leased in this state for

 5  use by a television studio, television network, television

 6  production company, or federally licensed television station

 7  in the production, origination, broadcast, transmission,

 8  receipt, or redistribution of digital television signals.

 9         (12)  PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS,

10  OR VIDEO TAPES.--

11         (a)  There are exempt from the taxes imposed by this

12  chapter the gross receipts from the sale or lease of, and the

13  storage, use, or other consumption in this state of, master

14  tapes or master records embodying sound, or master films or

15  master video tapes; except that amounts paid to recording

16  studios or motion picture or television studios for the

17  tangible elements of such master tapes, records, films, or

18  video tapes are taxable as otherwise provided in this chapter.

19  This exemption will inure to the taxpayer upon presentation of

20  the certificate of exemption issued to the taxpayer under the

21  provisions of s. 288.1258.

22         (b)  For the purposes of this subsection, the term:

23         1.  "Amounts paid for the tangible elements" does not

24  include any amounts paid for the copyrightable, artistic, or

25  other intangible elements of such master tapes, records,

26  films, or video tapes, whether designated as royalties or

27  otherwise, including, but not limited to, services rendered in

28  producing, fabricating, processing, or imprinting tangible

29  personal property or any other services or production expenses

30  in connection therewith which may otherwise be construed as

31  constituting a "sale" under s. 212.02.

                                  15

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1         2.  "Master films or master video tapes" means films or

 2  video tapes utilized by the motion picture and television

 3  production industries in making visual images for

 4  reproduction.

 5         3.  "Master tapes or master records embodying sound"

 6  means tapes, records, and other devices utilized by the

 7  recording industry in making recordings embodying sound.

 8         4.  "Motion picture or television studio" means a

 9  facility in which film or video tape productions or parts of

10  productions are made and which contains the necessary

11  equipment and personnel for this purpose and includes a mobile

12  unit or vehicle that is equipped in much the same manner as a

13  stationary studio and used in the making of film or video tape

14  productions.

15         5.  "Recording studio" means a place where, by means of

16  mechanical or electronic devices, voices, music, or other

17  sounds are transmitted to tapes, records, or other devices

18  capable of reproducing sound.

19         6.  "Recording industry" means any person engaged in an

20  occupation or business of making recordings embodying sound

21  for a livelihood or for a profit.

22         7.  "Motion picture or television production industry"

23  means any person engaged in an occupation or business for a

24  livelihood or for profit of making visual motion picture or

25  television visual images for showing on screen or television

26  for theatrical, commercial, advertising, or educational

27  purposes.

28         (2)  This section shall take effect January 1, 2000, if

29  House Bill 985 or similar legislation creating the Office of

30  the Film Commissioner is adopted in the same legislative

31  session or an extension thereof except that paragraph (m) that

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1  is added to subsection (5) of section 212.08 shall take effect

 2  upon this act becoming a law.

 3         Section 7.  (1)  Paragraph (s) is added to subsection

 4  (7) of section 213.053, Florida Statutes, 1998 Supplement, to

 5  read:

 6         213.053  Confidentiality and information sharing.--

 7         (7)  Notwithstanding any other provision of this

 8  section, the department may provide:

 9         (s)  Information relative to the tax exemptions under

10  ss. 212.031, 212.06, and 212.08 for those persons qualified

11  under s. 288.1258 to the Office of the Film Commissioner. The

12  Department of Revenue shall provide the Office of the Film

13  Commissioner with information in the aggregate.

14

15  Disclosure of information under this subsection shall be

16  pursuant to a written agreement between the executive director

17  and the agency.  Such agencies, governmental or

18  nongovernmental, shall be bound by the same requirements of

19  confidentiality as the Department of Revenue.  Breach of

20  confidentiality is a misdemeanor of the first degree,

21  punishable as provided by s. 775.082 or s. 775.083.

22         (2)  This section shall take effect on the same date as

23  House Bill 985 or similar legislation creating the Office of

24  the Film Commissioner takes effect, if such legislation is

25  adopted in the same legislative session or an extension

26  thereof.

27         Section 8.  Except as otherwise provided, this act

28  shall take effect upon becoming a law.

29

30

31

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 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 8, lines 3 through 11 of the amendment

 4  remove:  Said lines

 5

 6  and insert in lieu thereof:

 7         providing for a report; creating s. 288.1258,

 8         F.S.; authorizing entertainment industry

 9         production companies to apply for approval by

10         the Office of the Film Commissioner as a

11         qualified production company for the purpose of

12         receiving sales tax exemptions; directing the

13         office to develop application procedures;

14         providing for denial and revocation of a

15         certificate of exemption; providing a penalty

16         for falsification of an application or

17         unauthorized use of a certificate of exemption;

18         providing categories of qualification for a

19         certificate of exemption; providing duties of

20         the Department of Revenue with respect to

21         issuance of a certificate of exemption for

22         qualified production companies; requiring the

23         Office of the Film Commissioner to keep

24         specified records; requiring an annual report

25         to the Legislature; amending s. 212.031, F.S.,

26         relating to the tax on the lease or rental of

27         or license in real property; providing that the

28         exemption for property used as an integral part

29         of the performance of qualified production

30         services inures to the taxpayer upon

31         presentation of a certificate of exemption

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 2073

    Amendment No. 1 (for drafter's use only)





 1         issued under s. 288.1258, F.S.; amending s.

 2         212.06, F.S.; providing that the exemption for

 3         fabrication labor used in the production of a

 4         qualified motion picture inures to the taxpayer

 5         upon presentation of a certificate of exemption

 6         issued under s. 288.1258, F.S.; amending s.

 7         212.0602, F.S., which exempts the purchase or

 8         lease of materials, equipment, and other items

 9         by specified educational entities,

10         institutions, or organizations under certain

11         limited circumstances; expanding the exemption

12         to include the license in or lease of real

13         property by, and support operations of, such

14         educational institutions; amending s. 212.08,

15         F.S.; providing that the exemption for certain

16         motion picture or video equipment and sound

17         recording equipment shall be a point of sale

18         exemption rather than by refund; providing that

19         the exemption inures to the taxpayer upon

20         presentation of a certificate of exemption

21         issued under s. 288.1258, F.S.; providing that

22         the partial exemption for master tapes,

23         records, films, or video tapes inures to the

24         taxpayer upon presentation of a certificate of

25         exemption issued under s. 288.1258, F.S.;

26         amending s. 213.053, F.S.; authorizing the

27         Department of Revenue to share certain

28         information with the Office of the Film

29         Commissioner; providing contingent effective

30         dates.

31

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