House Bill 0397

    Florida House of Representatives - 1999                 HB 397

        By Representative Feeney






  1                      A bill to be entitled

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

  3         transactions; amending s. 212.08, F.S.;

  4         providing an exemption for labor charges for,

  5         and parts and materials used in, the repair of

  6         machinery and equipment used to produce

  7         tangible personal property at a fixed location

  8         by specified industries; providing a schedule

  9         for implementing the exemption; providing an

10         effective date.

11

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

13

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

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

16         212.08  Sales, rental, use, consumption, distribution,

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

18  the rental, the use, the consumption, the distribution, and

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

20  following are hereby specifically exempt from the tax imposed

21  by this chapter.

22         (7)  MISCELLANEOUS EXEMPTIONS.--

23         (zz)  Certain repair and labor charges.--

24         1.  Subject to the provisions of subparagraphs 2. and

25  3., there is exempt from the tax imposed by this chapter all

26  labor charges for the repair of, and parts and materials used

27  in the repair of and incorporated into, industrial machinery

28  and equipment which is used for the manufacture, processing,

29  compounding, or production of items of tangible personal

30  property at a fixed location within this state.

31

                                  1

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






    Florida House of Representatives - 1999                 HB 397

    76-194-99






  1         2.  This exemption applies only to industries

  2  classified under SIC Industry Major Group Numbers 10, 12, 13,

  3  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

  4  36, 37, 38, and 39 and Industry Group Number 212. As used in

  5  this subparagraph, "SIC" means those classifications contained

  6  in the Standard Industrial Classification Manual, 1987, as

  7  published by the Office of Management and Budget, Executive

  8  Office of the President.

  9         3.  This exemption shall be applied as follows:

10         a.  Beginning July 1, 1999, 25 percent of such charges

11  for repair parts and labor shall be exempt.

12         b.  Beginning July 1, 2000, 50 percent of such charges

13  for repair parts and labor shall be exempt.

14         c.  Beginning July 1, 2001, 75 percent of such charges

15  for repair parts and labor shall be exempt.

16         d.  Beginning July 1, 2002, 100 percent of such charges

17  for repair parts and labor shall be exempt.

18

19  Exemptions provided to any entity by this subsection shall not

20  inure to any transaction otherwise taxable under this chapter

21  when payment is made by a representative or employee of such

22  entity by any means, including, but not limited to, cash,

23  check, or credit card even when that representative or

24  employee is subsequently reimbursed by such entity.

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

26

27            *****************************************

28                          HOUSE SUMMARY

29
      Provides a sales tax exemption for labor charges for, and
30    parts and materials used in, the repair of machinery and
      equipment used to produce tangible personal property at a
31    fixed location by specified industries, to be phased in
      over a 4-year period.
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