Senate Bill 2344

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    Florida Senate - 1999                                  SB 2344

    By Senator Clary





    7-1548-99

  1                      A bill to be entitled

  2         An act relating to sales and use taxes;

  3         amending s. 212.08, F.S.; extending a sales tax

  4         exemption to include state headquarters for

  5         veterans' organization auxiliaries and their

  6         individual posts or units; providing an

  7         effective date.

  8

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

10

11         Section 1.  Paragraph (o) of subsection (7) of section

12  212.08, Florida Statutes, 1998 Supplement, is amended to read:

13         212.08  Sales, rental, use, consumption, distribution,

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

15  the rental, the use, the consumption, the distribution, and

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

17  following are hereby specifically exempt from the tax imposed

18  by this chapter.

19         (7)  MISCELLANEOUS EXEMPTIONS.--

20         (o)  Religious, charitable, scientific, educational,

21  and veterans' institutions and organizations.--

22         1.  There are exempt from the tax imposed by this

23  chapter transactions involving:

24         a.  Sales or leases directly to churches or sales or

25  leases of tangible personal property by churches;

26         b.  Sales or leases to nonprofit religious, nonprofit

27  charitable, nonprofit scientific, or nonprofit educational

28  institutions when used in carrying on their customary

29  nonprofit religious, nonprofit charitable, nonprofit

30  scientific, or nonprofit educational activities, including

31  church cemeteries; and

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    Florida Senate - 1999                                  SB 2344
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  1         c.  Sales or leases to the state headquarters of

  2  qualified veterans' organizations, including their state

  3  headquarters, and the state headquarters of their auxiliaries,

  4  or their individual posts or units, when used in carrying on

  5  their customary veterans' organization activities. If a

  6  qualified veterans' organization or its auxiliary does not

  7  maintain a permanent state headquarters, then transactions

  8  involving sales or leases to such organization and used to

  9  maintain the office of the highest ranking state official are

10  exempt from the tax imposed by this chapter.

11         2.  The provisions of this section authorizing

12  exemptions from tax shall be strictly defined, limited, and

13  applied in each category as follows:

14         a.  "Religious institutions" means churches,

15  synagogues, and established physical places for worship at

16  which nonprofit religious services and activities are

17  regularly conducted and carried on. The term "religious

18  institutions" includes nonprofit corporations the sole purpose

19  of which is to provide free transportation services to church

20  members, their families, and other church attendees. The term

21  "religious institutions" also includes state, district, or

22  other governing or administrative offices the function of

23  which is to assist or regulate the customary activities of

24  religious organizations or members. The term "religious

25  institutions" also includes any nonprofit corporation which is

26  qualified as nonprofit pursuant to s. 501(c)(3), Internal

27  Revenue Code of 1986, as amended, which owns and operates a

28  Florida television station, at least 90 percent of the

29  programming of which station consists of programs of a

30  religious nature, and the financial support for which,

31  exclusive of receipts for broadcasting from other nonprofit

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    Florida Senate - 1999                                  SB 2344
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  1  organizations, is predominantly from contributions from the

  2  general public. The term "religious institutions" also

  3  includes any nonprofit corporation which is qualified as

  4  nonprofit pursuant to s. 501(c)(3), Internal Revenue Code of

  5  1986, as amended, which provides regular religious services to

  6  Florida state prisoners and which from its own established

  7  physical place of worship, operates a ministry providing

  8  worship and services of a charitable nature to the community

  9  on a weekly basis.  The term "religious institutions" also

10  includes any nonprofit corporation which is qualified as

11  nonprofit pursuant to s. 501(c)(3), Internal Revenue Code of

12  1986, as amended, the primary activity of which is making and

13  distributing audio recordings of religious scriptures and

14  teachings to blind or visually impaired persons at no charge.

15  The term "religious institutions" also includes any nonprofit

16  corporation that is qualified as nonprofit pursuant to s.

17  501(c)(3), Internal Revenue Code of 1986, as amended, the sole

18  or primary function of which is to provide, upon invitation,

19  nonprofit religious services, evangelistic services, religious

20  education, administration assistance, or missionary assistance

21  for a church, synagogue, or established physical place of

22  worship at which nonprofit religious services and activities

23  are regularly conducted.

24         b.  "Charitable institutions" means only nonprofit

25  corporations qualified as nonprofit pursuant to s. 501(c)(3),

26  Internal Revenue Code of 1954, as amended, and other nonprofit

27  entities, the sole or primary function of which is to provide,

28  or to raise funds for organizations which provide, one or more

29  of the following services if a reasonable percentage of such

30  service is provided free of charge, or at a substantially

31

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    Florida Senate - 1999                                  SB 2344
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  1  reduced cost, to persons, animals, or organizations that are

  2  unable to pay for such service:

  3         (I)  Medical aid for the relief of disease, injury, or

  4  disability;

  5         (II)  Regular provision of physical necessities such as

  6  food, clothing, or shelter;

  7         (III)  Services for the prevention of or rehabilitation

  8  of persons from alcoholism or drug abuse; the prevention of

  9  suicide; or the alleviation of mental, physical, or sensory

10  health problems;

11         (IV)  Social welfare services including adoption

12  placement, child care, community care for the elderly, and

13  other social welfare services which clearly and substantially

14  benefit a client population which is disadvantaged or suffers

15  a hardship;

16         (V)  Medical research for the relief of disease,

17  injury, or disability;

18         (VI)  Legal services; or

19         (VII)  Food, shelter, or medical care for animals or

20  adoption services, cruelty investigations, or education

21  programs concerning animals;

22

23  and the term includes groups providing volunteer staff to

24  organizations designated as charitable institutions under this

25  sub-subparagraph; nonprofit organizations the sole or primary

26  purpose of which is to coordinate, network, or link other

27  institutions designated as charitable institutions under this

28  sub-subparagraph with those persons, animals, or organizations

29  in need of their services; and nonprofit national, state,

30  district, or other governing, coordinating, or administrative

31  organizations the sole or primary purpose of which is to

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    Florida Senate - 1999                                  SB 2344
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  1  represent or regulate the customary activities of other

  2  institutions designated as charitable institutions under this

  3  sub-subparagraph.  Notwithstanding any other requirement of

  4  this section, any blood bank that relies solely upon volunteer

  5  donations of blood and tissue, that is licensed under chapter

  6  483, and that qualifies as tax exempt under s. 501(c)(3) of

  7  the Internal Revenue Code constitutes a charitable institution

  8  and is exempt from the tax imposed by this chapter. Sales to a

  9  health system foundation, qualified as nonprofit pursuant to

10  s. 501(c)(3), Internal Revenue Code of 1986, as amended, which

11  filed an application for exemption with the department prior

12  to November 15, 1997, and which application is subsequently

13  approved, shall be exempt as to any unpaid taxes on purchases

14  made from November 14, 1990, to December 31, 1997.

15         c.  "Scientific organizations" means scientific

16  organizations which hold current exemptions from federal

17  income tax under s. 501(c)(3) of the Internal Revenue Code and

18  also means organizations the purpose of which is to protect

19  air and water quality or the purpose of which is to protect

20  wildlife and which hold current exemptions from the federal

21  income tax under s. 501(c)(3) of the Internal Revenue Code.

22         d.  "Educational institutions" means state

23  tax-supported or parochial, church and nonprofit private

24  schools, colleges, or universities which conduct regular

25  classes and courses of study required for accreditation by, or

26  membership in, the Southern Association of Colleges and

27  Schools, the Department of Education, the Florida Council of

28  Independent Schools, or the Florida Association of Christian

29  Colleges and Schools, Inc., or nonprofit private schools which

30  conduct regular classes and courses of study accepted for

31  continuing education credit by a board of the Division of

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    Florida Senate - 1999                                  SB 2344
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  1  Medical Quality Assurance of the Department of Health or which

  2  conduct regular classes and courses of study accepted for

  3  continuing education credit by the American Medical

  4  Association. Nonprofit libraries, art galleries, performing

  5  arts centers that provide educational programs to school

  6  children, which programs involve performances or other

  7  educational activities at the performing arts center and serve

  8  a minimum of 50,000 school children a year, and museums open

  9  to the public are defined as educational institutions and are

10  eligible for exemption. The term "educational institutions"

11  includes private nonprofit organizations the purpose of which

12  is to raise funds for schools teaching grades kindergarten

13  through high school, colleges, and universities. The term

14  "educational institutions" includes any nonprofit newspaper of

15  free or paid circulation primarily on university or college

16  campuses which holds a current exemption from federal income

17  tax under s. 501(c)(3) of the Internal Revenue Code, and any

18  educational television or radio network or system established

19  pursuant to s. 229.805 or s. 229.8051 and any nonprofit

20  television or radio station which is a part of such network or

21  system and which holds a current exemption from federal income

22  tax under s. 501(c)(3) of the Internal Revenue Code. The term

23  "educational institutions" also includes state, district, or

24  other governing or administrative offices the function of

25  which is to assist or regulate the customary activities of

26  educational organizations or members. The term "educational

27  institutions" also includes a nonprofit educational cable

28  consortium which holds a current exemption from federal income

29  tax under s. 501(c)(3) of the Internal Revenue Code of 1986,

30  as amended, whose primary purpose is the delivery of

31  educational and instructional cable television programming and

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    Florida Senate - 1999                                  SB 2344
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  1  whose members are composed exclusively of educational

  2  organizations which hold a valid consumer certificate of

  3  exemption and which are either an educational institution as

  4  defined in this sub-subparagraph, or qualified as a nonprofit

  5  organization pursuant to s. 501(c)(3) of the Internal Revenue

  6  Code of 1986, as amended.

  7         e.  "Veterans' organizations" means nationally

  8  chartered or recognized veterans' organizations, including,

  9  but not limited to, Florida chapters of the Paralyzed Veterans

10  of America, Catholic War Veterans of the U.S.A., Jewish War

11  Veterans of the U.S.A., and the Disabled American Veterans,

12  Department of Florida, Inc., which hold current exemptions

13  from federal income tax under s. 501(c)(4) or (19) of the

14  Internal Revenue Code.

15         Section 2.  This act shall take effect July 1, 1999.

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18                          SENATE SUMMARY

19    Extends an existing sales tax exemption to include state
      headquarters of veterans organizations' auxiliaries and
20    their individual posts or units.

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