House Bill 0293

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    Florida House of Representatives - 1999                 HB 293

        By Representative Villalobos






  1                      A bill to be entitled

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

  3         other transactions; amending s. 212.06, F.S.;

  4         providing definitions; authorizing the

  5         designation of seaport duty-free zones by

  6         counties that contain deepwater ports;

  7         providing an exemption from the sales and use

  8         tax for certain items purchased within a

  9         seaport duty-free zone by passengers on a sea

10         cruise ship who reside outside this state;

11         providing requirements for purchasers to

12         qualify for the exemption; providing penalties

13         for making a fraudulent statement for the

14         purpose of tax evasion; providing applicability

15         of use tax and penalties if such property is

16         not removed from the state; authorizing a

17         business that operates a sea cruise ship to

18         issue cruise arrival-departure cards; requiring

19         records to be kept; providing a mandatory fine

20         for issuing a false or fraudulent

21         arrival-departure card for the purpose of tax

22         evasion; providing an effective date.

23

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

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26         Section 1.  Subsection (17) is added to section 212.06,

27  Florida Statutes, 1998 Supplement, 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         (17)(a)  As used in this subsection:

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    Florida House of Representatives - 1999                 HB 293

    509-163-99






  1         1.  "Sea cruise ship" means a vessel that is capable of

  2  transporting 250 or more passengers for hire to destination

  3  points outside the boundaries of this state and that actually

  4  docks and permits passengers to disembark at one or more

  5  destination points outside the boundaries of this state.

  6         2.  "Seaport duty-free zone" means an area designated

  7  by ordinance of the governing body of any county that contains

  8  a deepwater port, which area must not exceed 5 square miles

  9  and must include boundaries contiguous to, but extending not

10  more than 2 miles from, the port. The designation of a seaport

11  duty-free zone is not required by this subsection but is

12  authorized for any county that contains a deepwater port.

13         (b)  This chapter does not apply to the sale, use,

14  consumption, or storage of tangible personal property within a

15  seaport duty-free zone, which property is to be removed from

16  this state by a purchaser who either is, or will be, a

17  passenger on a sea cruise ship and who, at the time of taking

18  delivery of the property, does not make his or her permanent

19  place of residence in this state.

20         (c)1.  This subsection does not apply unless:

21         a.  The purchaser, at the time of sale, furnishes to

22  the selling dealer a valid cruise arrival-departure card and

23  picture identification.

24         b.  The purchase is made within 2 days before the

25  departure of the sea cruise ship or within 2 days following

26  the arrival of the sea cruise ship.

27         c.  The purchaser, at the time of purchase, furnishes

28  the selling dealer with a statement that includes the

29  purchaser's name, address, and cruise arrival-departure card

30  number. The statement must be dated and signed, under oath, by

31  the purchaser and must include the sentence: "Under penalty of

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    Florida House of Representatives - 1999                 HB 293

    509-163-99






  1  perjury, I declare that I do not make my permanent place of

  2  residence in the State of Florida, that I have read the

  3  foregoing, and that the facts alleged are true to the best of

  4  my knowledge and belief."

  5         2.  A person who knowingly aids or assists in making

  6  any fraudulent statement under this paragraph for the purpose

  7  of evading tax, in addition to being liable for payment of the

  8  tax plus a mandatory penalty of 200 percent of the tax,

  9  commits a felony of the third degree, punishable as provided

10  in s. 775.082, s. 775.083, or s. 775.084.

11         (d)  Notwithstanding any other provision of this

12  chapter, this subsection does not apply to:

13         1.  Food or drinks.

14         2.  Sales through vending or amusement machines.

15         3.  The lease or rental of tangible personal property.

16         4.  Tangible personal property that will be used at any

17  time in this state in any employment, trade, business, or

18  profession.

19         (e)  If the purchaser fails to remove the property from

20  this state within 30 days after the date of purchase, the

21  purchaser is liable to the department for use tax on the cost

22  price of the property in addition to payment of a penalty

23  equal to the amount of use tax payable. This penalty is

24  imposed in lieu of the penalty imposed under s. 212.12(2), is

25  mandatory, and may not be waived by the department.

26         (f)1.  Any business that operates a sea cruise ship may

27  issue cruise arrival-departure cards to its passengers. The

28  cruise arrival-departure card must contain: the passenger's

29  name and address; the name of the sea cruise ship; the name of

30  the port from which the cruise has originated or will

31  originate and the scheduled date of departure; the name of the

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    Florida House of Representatives - 1999                 HB 293

    509-163-99






  1  port of termination and scheduled date of arrival; and a

  2  unique number that individually identifies the passenger to

  3  whom the cruise arrival-departure card was issued.

  4         2.  A business that operates a sea cruise ship and

  5  issues cruise arrival-departure cards must maintain records of

  6  all persons to whom the business has issued such cards.

  7         3.  Any person who issues a false or fraudulent cruise

  8  arrival-departure card to any passenger for the purpose of

  9  evading tax is liable for a mandatory penalty of $1,000 for

10  each violation.

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

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14                          HOUSE SUMMARY

15
      Authorizes any county that contains a deepwater port to
16    designate a seaport duty-free zone. Provides an exemption
      from the sales and use tax for certain items purchased
17    within such zone by cruise ship passengers who reside
      outside the state. Specifies requirements purchasers must
18    meet to be eligible for the tax exemption, including
      possession of an arrival-departure card issued by the
19    cruise ship operator. Provides penalties for attempting
      to evade the tax by making a fraudulent statement or
20    issuing fraudulent arrival-departure cards. Provides for
      applicability of use tax and penalties if the exempted
21    property is not removed from the state.

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