House Bill 0221

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    Florida House of Representatives - 1999                 HB 221

        By Representative Trovillion






  1                      A bill to be entitled

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

  3         other transactions; amending s. 212.05, F.S.;

  4         exempting from the tax on the sale of coins or

  5         currency certain transactions in which the

  6         sales price exceeds a specified amount;

  7         amending s. 212.08, F.S.; exempting sales of

  8         gold, silver, or platinum bullion when the

  9         sales price exceeds a specified amount;

10         providing effective dates.

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

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14         Section 1.  Paragraph (k) of subsection (1) of section

15  212.05, Florida Statutes, 1998 Supplement, is amended to read:

16         212.05  Sales, storage, use tax.--It is hereby declared

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

18  taxable privilege who engages in the business of selling

19  tangible personal property at retail in this state, including

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

21  furnishes any of the things or services taxable under this

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

23  any item or article of tangible personal property as defined

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

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

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

27  due and payable as follows:

28         (k)1.  Notwithstanding any other provision of this

29  chapter, there is hereby levied a tax on the sale, use,

30  consumption, or storage for use in this state of any coin or

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    Florida House of Representatives - 1999                 HB 221

    563-153-99






  1  currency, whether in circulation or not, when such coin or

  2  currency:

  3         a.  Is not legal tender;

  4         b.  If legal tender, is sold, exchanged, or traded at a

  5  rate in excess of its face value; or

  6         c.  Is sold, exchanged, or traded at a rate based on

  7  its precious metal content.

  8         2.  Such tax shall be at a rate of 6 percent of the

  9  price at which the coin or currency is sold, exchanged, or

10  traded, except that, with respect to a coin or currency which

11  is legal tender of the United States and which is sold,

12  exchanged, or traded at a rate in excess of its face value,

13  the tax shall be at a rate of 6 percent of the difference

14  between the price at which it is sold, exchanged, or traded

15  and its face value.

16         3.  There are exempt from this tax exchanges of coins

17  or currency which are in general circulation in, and legal

18  tender of, one nation for coins or currency which are in

19  general circulation in, and legal tender of, another nation

20  when exchanged solely for use as legal tender and at an

21  exchange rate based on the relative value of each as a medium

22  of exchange.

23         4.  With respect to any transaction that involves the

24  sale of coins or currency taxable under this paragraph in

25  which the taxable amount represented by the sale of such coins

26  or currency exceeds $500, the entire amount represented by the

27  sale of such coins or currency is exempt from the tax imposed

28  under this paragraph. The dealer must maintain proper

29  documentation, as prescribed by rule of the department, to

30  identify that portion of a transaction which involves the sale

31  of coins or currency and is exempt under this subparagraph.

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    Florida House of Representatives - 1999                 HB 221

    563-153-99






  1         Section 2.  Paragraph (zz) is added to subsection (7)

  2  of section 212.08, Florida Statutes, 1998 Supplement, to read:

  3         212.08  Sales, rental, use, consumption, distribution,

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

  5  the rental, the use, the consumption, the distribution, and

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

  7  following are hereby specifically exempt from the tax imposed

  8  by this chapter.

  9         (7)  MISCELLANEOUS EXEMPTIONS.--

10         (zz)  The sale of gold, silver, or platinum bullion, or

11  any combination thereof, in a single transaction is exempt if

12  the sales price exceeds $500. The dealer must maintain proper

13  documentation, as prescribed by rule of the department, to

14  identify that portion of a transaction which involves the sale

15  of gold, silver, or platinum bullion and is exempt under this

16  paragraph.

17         Section 3.  The executive director of the Department of

18  Revenue may adopt emergency rules under section 120.54(4),

19  Florida Statutes, for purposes of implementing this act.

20  Notwithstanding any other provision of law, such emergency

21  rules shall remain effective for 6 months after the date of

22  adoption. This section shall take effect upon this act

23  becoming a law.

24         Section 4.  Except as otherwise expressly provided in

25  this act, this act shall take effect July 1, 1999.

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    Florida House of Representatives - 1999                 HB 221

    563-153-99






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  2                          SENATE SUMMARY

  3    Exempts from the tax on sales, use, and other
      transactions certain sales of coin and currency for which
  4    the sales price exceeds $500. Exempts from the tax any
      sale of gold, silver, or platinum bullion for which the
  5    sales price exceeds $500. Authorizes the Department of
      Revenue to adopt emergency rules pertaining to these
  6    exemptions.

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