House Bill 0523
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Florida House of Representatives - 1999 HB 523
By Representatives Logan, Fasano, Cosgrove, Wiles, Brown,
Morroni and Heyman
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 personal or real
5 property purchased or leased for use in the
6 operation of a television broadcasting station
7 that meets specified criteria; requiring return
8 of tax refunds plus interest and penalties if
9 certain criteria are not met; providing
10 limitations; providing an effective date.
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12 Be It Enacted by the Legislature of the State of Florida:
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14 Section 1. Paragraph (f) of subsection (5) of section
15 212.08, Florida Statutes, 1998 Supplement, is amended 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 (5) EXEMPTIONS; ACCOUNT OF USE.--
23 (f) Motion picture or video equipment used in motion
24 picture or television production activities and sound
25 recording equipment used in the production of master tapes and
26 master records; property purchased or leased to operate
27 certain television broadcasting stations.--
28 1. Motion picture or video equipment and sound
29 recording equipment purchased or leased for use in this state
30 in production activities is exempt from the tax imposed by
31 this chapter upon an affirmative showing by the purchaser or
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Florida House of Representatives - 1999 HB 523
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1 lessee to the satisfaction of the department that the
2 equipment will be used for production activities.
3 2. There is exempt from the tax imposed by this
4 chapter all personal or real property purchased or leased for
5 use in the operation of any television broadcasting station
6 that meets all of the following requirements:
7 a. It has been acquired following the conclusion of
8 bankruptcy proceedings by a previously unrelated owner. The
9 station general manager of the acquiring station must submit
10 an affidavit stating that the acquiring station had no
11 ownership interest, or other business relationship, with the
12 previous owner that went through bankruptcy proceedings.
13 b. It submits an affidavit from its general manager
14 stating that the television broadcasting station or stations
15 under common ownership have established and maintained more
16 than 75 full-time jobs since acquisition.
17 c. The acquiring owner has invested more than $5
18 million in capital improvements since the acquisition of the
19 television broadcasting station or stations.
20 d. It is located within the boundaries of a
21 metropolitan statistical area and shares common ownership or
22 management with another television broadcasting station that
23 has been acquired following bankruptcy that is located in a
24 different metropolitan statistical area.
25 e. In the year following receipt of a tax refund
26 pursuant to this section, it broadcasts at no cost to the
27 state youth-oriented anti-tobacco public service announcements
28 and programming of a value equal to or greater than the tax
29 refund received by the television broadcasting station in the
30 previous year. If a television broadcasting station that has
31 received a refund fails to broadcast sufficient public service
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1 announcements and programming, the taxpayer must return the
2 refund to the state together with interest and penalties.
3 3. The exemptions exemption provided by this paragraph
4 shall inure to the taxpayer only through a refund of
5 previously paid taxes. With respect to the refund authorized
6 under subparagraph 2., the maximum refund allowed in any year
7 shall not exceed $350,000 for any television broadcasting
8 station or group of television broadcasting stations that
9 share common ownership or management, and no taxpayer may
10 receive a refund for more than 5 years. Notwithstanding the
11 provisions of s. 212.095, such refund shall be made within 30
12 days of formal application, which application may be made
13 after the completion of production activities or on a
14 quarterly basis with respect to the refund authorized under
15 subparagraph 1., and on a quarterly basis with respect to the
16 refund authorized under subparagraph 2. Notwithstanding the
17 provisions of chapter 213, the department shall provide the
18 Department of Commerce with a copy of each refund application
19 and the amount of such refund, if any.
20 4.2. For the purpose of the exemption provided in
21 subparagraph 1.:
22 a. "Motion picture or video equipment" and "sound
23 recording equipment" includes only equipment meeting the
24 definition of "section 38 property" as defined in s.
25 48(a)(1)(A) and (B)(i) of the Internal Revenue Code that is
26 used by the lessee or purchaser exclusively as an integral
27 part of production activities; however, motion picture or
28 video equipment and sound recording equipment does not include
29 supplies, tape, records, film, or video tape used in
30 productions or other similar items; vehicles or vessels; or
31 general office equipment not specifically suited to production
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Florida House of Representatives - 1999 HB 523
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1 activities. In addition, the term does not include equipment
2 purchased or leased by television or radio broadcasting or
3 cable companies licensed by the Federal Communications
4 Commission.
5 b. "Production activities" means activities directed
6 toward the preparation of a:
7 (I) Master tape or master record embodying sound; or
8 (II) Motion picture or television production which is
9 produced for theatrical, commercial, advertising, or
10 educational purposes and utilizes live or animated actions or
11 a combination of live and animated actions. The motion picture
12 or television production shall be commercially produced for
13 sale or for showing on screens or broadcasting on television
14 and may be on film or video tape.
15 Section 2. This act shall take effect July 1, 1999.
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18 HOUSE SUMMARY
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Provides a sales tax exemption for personal or real
20 property purchased or leased for use in the operation of
a television broadcasting station that meets specified
21 criteria. Requires return of tax refunds plus interest
and penalties if certain criteria are not met. Limits
22 the amount and duration of such refunds.
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