House Bill 0057

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







    Florida House of Representatives - 1999                  HB 57

        By Representative Starks






  1                      A bill to be entitled

  2         An act relating to taxation; amending s.

  3         212.08, F.S.; providing an exemption from the

  4         tax on sales, use, and other transactions for

  5         sales or leases to all organizations exempt

  6         from federal income tax under s. 501(c)(3) of

  7         the Internal Revenue Code; removing specific

  8         exemptions for military museums, homes for the

  9         aged, nursing homes, and hospices, religious,

10         charitable, and scientific institutions, state

11         theater contract organizations, Coast Guard

12         auxiliaries, athletic event sponsors, and the

13         Gasparilla Distance Classic Association, and

14         revising the exemptions for organizations

15         providing special benefits to minors, veterans'

16         organization headquarters, educational

17         institutions, works of art, and citizen support

18         organizations, to conform; amending s. 212.084,

19         F.S.; providing for application of provisions

20         relating to temporary exemption certificates to

21         newly organized organizations exempt under s.

22         501(c)(3); amending s. 196.195, F.S.; revising

23         application of provisions which specify that

24         certain nonprofit corporations which are exempt

25         from sales tax are nonprofit for purposes of

26         determining eligibility for the religious,

27         literary, scientific, or charitable ad valorem

28         tax exemption; amending s. 196.196, F.S.;

29         revising a criterion for use in determining

30         whether property is being used for a

31         charitable, religious, scientific, or literary

                                  1

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1         purpose, to conform; amending ss. 212.0821,

  2         403.715, 414.029, 496.404, and 564.02, F.S.;

  3         correcting references; providing an effective

  4         date.

  5

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

  7

  8         Section 1.  Subsection (7) of section 212.08, Florida

  9  Statutes, 1998 Supplement, is amended to read:

10         212.08  Sales, rental, use, consumption, distribution,

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

12  the rental, the use, the consumption, the distribution, and

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

14  following are hereby specifically exempt from the tax imposed

15  by this chapter.

16         (7)  MISCELLANEOUS EXEMPTIONS.--

17         (a)  Artificial commemorative flowers.--Exempt from the

18  tax imposed by this chapter is the sale of artificial

19  commemorative flowers by bona fide nationally chartered

20  veterans' organizations.

21         (b)  Boiler fuels.--When purchased for use as a

22  combustible fuel, purchases of natural gas, residual oil,

23  recycled oil, waste oil, solid waste material, coal, sulfur,

24  wood, wood residues or wood bark used in an industrial

25  manufacturing, processing, compounding, or production process

26  at a fixed location in this state are exempt from the taxes

27  imposed by this chapter; however, such exemption shall not be

28  allowed unless the purchaser signs a certificate stating that

29  the fuel to be exempted is for the exclusive use designated

30  herein. This exemption does not apply to the use of boiler

31  fuels that are not used in manufacturing, processing,

                                  2

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  compounding, or producing items of tangible personal property

  2  for sale, or to the use of boiler fuels used by any firm

  3  subject to regulation by the Division of Hotels and

  4  Restaurants of the Department of Business and Professional

  5  Regulation.

  6         (c)  Crustacea bait.--Also exempt from the tax imposed

  7  by this chapter is the purchase by commercial fishers of bait

  8  intended solely for use in the entrapment of Callinectes

  9  sapidus and Menippe mercenaria.

10         (d)  Feeds.--Feeds for poultry, ostriches, and

11  livestock, including racehorses and dairy cows, are exempt.

12         (e)  Film rentals.--Film rentals are exempt when an

13  admission is charged for viewing such film, and license fees

14  and direct charges for films, videotapes, and transcriptions

15  used by television or radio stations or networks are exempt.

16         (f)  Flags.--Also exempt are sales of the flag of the

17  United States and the official state flag of Florida.

18         (g)  Florida Retired Educators Association and its

19  local chapters.--Also exempt from payment of the tax imposed

20  by this chapter are purchases of office supplies, equipment,

21  and publications made by the Florida Retired Educators

22  Association and its local chapters.

23         (h)  Guide dogs for the blind.--Also exempt are the

24  sale or rental of guide dogs for the blind, commonly referred

25  to as "seeing-eye dogs," and the sale of food or other items

26  for such guide dogs.

27         1.  The department shall issue a consumer's certificate

28  of exemption to any blind person who holds an identification

29  card as provided for in s. 413.091 and who either owns or

30  rents, or contemplates the ownership or rental of, a guide dog

31  for the blind. The consumer's certificate of exemption shall

                                  3

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  be issued without charge and shall be of such size as to be

  2  capable of being carried in a wallet or billfold.

  3         2.  The department shall make such rules concerning

  4  items exempt from tax under the provisions of this paragraph

  5  as may be necessary to provide that any person authorized to

  6  have a consumer's certificate of exemption need only present

  7  such a certificate at the time of paying for exempt goods and

  8  shall not be required to pay any tax thereon.

  9         (i)  Hospital meals and rooms.--Also exempt from

10  payment of the tax imposed by this chapter on rentals and

11  meals are patients and inmates of any hospital or other

12  physical plant or facility designed and operated primarily for

13  the care of persons who are ill, aged, infirm, mentally or

14  physically incapacitated, or otherwise dependent on special

15  care or attention. Residents of a home for the aged are exempt

16  from payment of taxes on meals provided through the facility.

17  A home for the aged is defined as a facility that is licensed

18  or certified in part or in whole under chapter 400 or chapter

19  651, or that is financed by a mortgage loan made or insured by

20  the United States Department of Housing and Urban Development

21  under s. 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4),

22  s. 232, or s. 236 of the National Housing Act, or other such

23  similar facility designed and operated primarily for the care

24  of the aged.

25         (j)  Household fuels.--Also exempt from payment of the

26  tax imposed by this chapter are sales of utilities to

27  residential households or owners of residential models in this

28  state by utility companies who pay the gross receipts tax

29  imposed under s. 203.01, and sales of fuel to residential

30  households or owners of residential models, including oil,

31  kerosene, liquefied petroleum gas, coal, wood, and other fuel

                                  4

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  products used in the household or residential model for the

  2  purposes of heating, cooking, lighting, and refrigeration,

  3  regardless of whether such sales of utilities and fuels are

  4  separately metered and billed direct to the residents or are

  5  metered and billed to the landlord. If any part of the utility

  6  or fuel is used for a nonexempt purpose, the entire sale is

  7  taxable. The landlord shall provide a separate meter for

  8  nonexempt utility or fuel consumption.  For the purposes of

  9  this paragraph, licensed family day care homes shall also be

10  exempt.

11         (k)  Meals provided by certain nonprofit

12  organizations.--There is exempt from the tax imposed by this

13  chapter the sale of prepared meals by a nonprofit volunteer

14  organization to handicapped, elderly, or indigent persons when

15  such meals are delivered as a charitable function by the

16  organization to such persons at their places of residence.

17         (l)  Military museums.--Also exempt are sales to

18  nonprofit corporations which hold current exemptions from

19  federal corporate income tax pursuant to s. 501(c)(3),

20  Internal Revenue Code of 1954, as amended, and whose primary

21  purpose is to raise money for military museums.

22         (m)  Nonprofit corporations; homes for the aged,

23  nursing homes, or hospices.--Nonprofit corporations which hold

24  current exemptions from federal corporate income tax pursuant

25  to s. 501(c)(3), Internal Revenue Code of 1954, as amended,

26  and which either qualify as homes for the aged pursuant to s.

27  196.1975(2) or are licensed as a nursing home or hospice under

28  the provisions of chapter 400, are exempt from the tax imposed

29  by this chapter.

30         (l)(n)  Organizations providing special educational,

31  cultural, recreational, and social benefits to minors.--There

                                  5

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  shall be exempt from the tax imposed by this chapter nonprofit

  2  organizations which are incorporated pursuant to chapter 617

  3  or which hold a current exemption from federal corporate

  4  income tax pursuant to s. 501(c)(3) of the Internal Revenue

  5  Code the primary purpose of which is providing activities that

  6  contribute to the development of good character or good

  7  sportsmanship, or to the educational or cultural development,

  8  of minors.  This exemption is extended only to that level of

  9  the organization that has a salaried executive officer or an

10  elected nonsalaried executive officer.

11         (m)(o)  Churches Religious, charitable, scientific,

12  educational, and veterans' institutions and organizations.--

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

14  chapter transactions involving:

15         a.  sales or leases directly to churches or sales or

16  leases of tangible personal property by churches.;

17         b.  Sales or leases to nonprofit religious, nonprofit

18  charitable, nonprofit scientific, or nonprofit educational

19  institutions when used in carrying on their customary

20  nonprofit religious, nonprofit charitable, nonprofit

21  scientific, or nonprofit educational activities, including

22  church cemeteries; and

23         (n)c.  Veteran organization headquarters.--There are

24  exempt from the tax imposed by this chapter transactions

25  involving sales or leases to the state headquarters of

26  qualified veterans' organizations and the state headquarters

27  of their auxiliaries when used in carrying on their customary

28  veterans' organization activities. If a qualified veterans'

29  organization or its auxiliary does not maintain a permanent

30  state headquarters, then transactions involving sales or

31  leases to such organization and used to maintain the office of

                                  6

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  the highest ranking state official are exempt from the tax

  2  imposed by this chapter. As used in this paragraph, "veterans'

  3  organizations" means nationally chartered or recognized

  4  veterans' organizations, including, but not limited to,

  5  Florida chapters of the Paralyzed Veterans of America,

  6  Catholic War Veterans of the U.S.A., Jewish War Veterans of

  7  the U.S.A., and the Disabled American Veterans, Department of

  8  Florida, Inc., which hold current exemptions from federal

  9  income tax under s. 501(c)(4) or (19) of the Internal Revenue

10  Code.

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

                                  7

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  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

                                  8

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  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

                                  9

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  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         (o)d.  Schools, colleges, and universities.--Also

23  exempt from the tax imposed by this chapter are sales or

24  leases to "Educational institutions" means state tax-supported

25  or parochial, church and nonprofit private schools, colleges,

26  or universities. which conduct regular classes and courses of

27  study required for accreditation by, or membership in, the

28  Southern Association of Colleges and Schools, the Department

29  of Education, the Florida Council of Independent Schools, or

30  the Florida Association of Christian Colleges and Schools,

31  Inc., or nonprofit private schools which conduct regular

                                  10

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  classes and courses of study accepted for continuing education

  2  credit by a board of the Division of Medical Quality Assurance

  3  of the Department of Health or which conduct regular classes

  4  and courses of study accepted for continuing education credit

  5  by the American Medical Association. Nonprofit libraries, art

  6  galleries, performing arts centers that provide educational

  7  programs to school children, which programs involve

  8  performances or other educational activities at the performing

  9  arts center and serve a minimum of 50,000 school children a

10  year, and museums open to the public are defined as

11  educational institutions and are eligible for exemption. The

12  term "educational institutions" includes private nonprofit

13  organizations the purpose of which is to raise funds for

14  schools teaching grades kindergarten through high school,

15  colleges, and universities. The term "educational

16  institutions" includes any nonprofit newspaper of free or paid

17  circulation primarily on university or college campuses which

18  holds a current exemption from federal income tax under s.

19  501(c)(3) of the Internal Revenue Code, and any educational

20  television or radio network or system established pursuant to

21  s. 229.805 or s. 229.8051 and any nonprofit television or

22  radio station which is a part of such network or system and

23  which holds a current exemption from federal income tax under

24  s. 501(c)(3) of the Internal Revenue Code. The term

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

26  other governing or administrative offices the function of

27  which is to assist or regulate the customary activities of

28  educational organizations or members. The term "educational

29  institutions" also includes a nonprofit educational cable

30  consortium which holds a current exemption from federal income

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

                                  11

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  as amended, whose primary purpose is the delivery of

  2  educational and instructional cable television programming and

  3  whose members are composed exclusively of educational

  4  organizations which hold a valid consumer certificate of

  5  exemption and which are either an educational institution as

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

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

  8  Code of 1986, as amended.

  9         e.  "Veterans' organizations" means nationally

10  chartered or recognized veterans' organizations, including,

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

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

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

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

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

16  Internal Revenue Code.

17         (p)  Section 501(c)(3) organizations.--Also exempt from

18  the tax imposed by this chapter are sales or leases to

19  organizations holding an exemption from federal income tax

20  under s. 501(c)(3) of the Internal Revenue Code, as amended.

21         (q)(p)  Resource recovery equipment.--Also exempt is

22  resource recovery equipment which is owned and operated by or

23  on behalf of any county or municipality, certified by the

24  Department of Environmental Protection under the provisions of

25  s. 403.715.

26         (r)(q)  School books and school lunches.--This

27  exemption applies to school books used in regularly prescribed

28  courses of study, and to school lunches served in public,

29  parochial, or nonprofit schools operated for and attended by

30  pupils of grades K through 12.  Yearbooks, magazines,

31  newspapers, directories, bulletins, and similar publications

                                  12

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  distributed by such educational institutions to their students

  2  are also exempt. School books and food sold or served at

  3  community colleges and other institutions of higher learning

  4  are taxable.

  5         (r)  State theater contract organizations.--Nonprofit

  6  organizations incorporated in accordance with chapter 617

  7  which have qualified under s. 501(c)(3) of the Internal

  8  Revenue Code of 1954, as amended, and which have been

  9  designated as state theater contract organizations as provided

10  in s. 265.289 are exempt from the tax imposed by this chapter.

11         (s)  Tasting beverages.--Vinous and alcoholic beverages

12  provided by distributors or vendors for the purpose of "wine

13  tasting" and "spirituous beverage tasting" as contemplated

14  under the provisions of ss. 564.06 and 565.12, respectively,

15  are exempt from the tax imposed by this chapter.

16         (t)  Boats temporarily docked in state.--

17         1.  Notwithstanding the provisions of chapters 327 and

18  328, pertaining to the registration of vessels, a boat upon

19  which the state sales or use tax has not been paid is exempt

20  from the use tax under this chapter if it enters and remains

21  in this state for a period not to exceed a total of 20 days in

22  any calendar year calculated from the date of first dockage or

23  slippage at a facility, registered with the department, that

24  rents dockage or slippage space in this state.  If a boat

25  brought into this state for use under this paragraph is placed

26  in a facility, registered with the department, for repairs,

27  alterations, refitting, or modifications and such repairs,

28  alterations, refitting, or modifications are supported by

29  written documentation, the 20-day period shall be tolled

30  during the time the boat is physically in the care, custody,

31  and control of the repair facility, including the time spent

                                  13

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  on sea trials conducted by the facility.  The 20-day time

  2  period may be tolled only once within a calendar year when a

  3  boat is placed for the first time that year in the physical

  4  care, custody, and control of a registered repair facility;

  5  however, the owner may request and the department may grant an

  6  additional tolling of the 20-day period for purposes of

  7  repairs that arise from a written guarantee given by the

  8  registered repair facility, which guarantee covers only those

  9  repairs or modifications made during the first tolled period.

10  Within 72 hours after the date upon which the registered

11  repair facility took possession of the boat, the facility must

12  have in its possession, on forms prescribed by the department,

13  an affidavit which states that the boat is under its care,

14  custody, and control and that the owner does not use the boat

15  while in the facility.  Upon completion of the repairs,

16  alterations, refitting, or modifications, the registered

17  repair facility must, within 72 hours after the date of

18  release, have in its possession a copy of the release form

19  which shows the date of release and any other information the

20  department requires. The repair facility shall maintain a log

21  that documents all alterations, additions, repairs, and sea

22  trials during the time the boat is under the care, custody,

23  and control of the facility.  The affidavit shall be

24  maintained by the registered repair facility as part of its

25  records for as long as required by s. 213.35.  When, within 6

26  months after the date of its purchase, a boat is brought into

27  this state under this paragraph, the 6-month period provided

28  in s. 212.05(1)(a)2. or s. 212.06(8) shall be tolled.

29         2.  During the period of repairs, alterations,

30  refitting, or modifications and during the 20-day period

31  referred to in subparagraph 1., the boat may be listed for

                                  14

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  sale, contracted for sale, or sold exclusively by a broker or

  2  dealer registered with the department without incurring a use

  3  tax under this chapter; however, the sales tax levied under

  4  this chapter applies to such sale.

  5         3.  The mere storage of a boat at a registered repair

  6  facility does not qualify as a tax-exempt use in this state.

  7         4.  As used in this paragraph, "registered repair

  8  facility" means:

  9         a.  A full-service facility that:

10         (I)  Is located on a navigable body of water;

11         (II)  Has haulout capability such as a dry dock, travel

12  lift, railway, or similar equipment to service craft under the

13  care, custody, and control of the facility;

14         (III)  Has adequate piers and storage facilities to

15  provide safe berthing of vessels in its care, custody, and

16  control; and

17         (IV)  Has necessary shops and equipment to provide

18  repair or warranty work on vessels under the care, custody,

19  and control of the facility;

20         b.  A marina that:

21         (I)  Is located on a navigable body of water;

22         (II)  Has adequate piers and storage facilities to

23  provide safe berthing of vessels in its care, custody, and

24  control; and

25         (III)  Has necessary shops and equipment to provide

26  repairs or warranty work on vessels; or

27         c.  A shoreside facility that:

28         (I)  Is located on a navigable body of water;

29         (II)  Has adequate piers and storage facilities to

30  provide safe berthing of vessels in its care, custody, and

31  control; and

                                  15

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1         (III)  Has necessary shops and equipment to provide

  2  repairs or warranty work.

  3         (u)  Volunteer fire departments.--Also exempt are

  4  firefighting and rescue service equipment and supplies

  5  purchased by volunteer fire departments, duly chartered under

  6  the Florida Statutes as corporations not for profit.

  7         (v)  Professional services.--

  8         1.  Also exempted are professional, insurance, or

  9  personal service transactions that involve sales as

10  inconsequential elements for which no separate charges are

11  made.

12         2.  The personal service transactions exempted pursuant

13  to subparagraph 1. do not exempt the sale of information

14  services involving the furnishing of printed, mimeographed, or

15  multigraphed matter, or matter duplicating written or printed

16  matter in any other manner, other than professional services

17  and services of employees, agents, or other persons acting in

18  a representative or fiduciary capacity or information services

19  furnished to newspapers and radio and television stations.  As

20  used in this subparagraph, the term "information services"

21  includes the services of collecting, compiling, or analyzing

22  information of any kind or nature and furnishing reports

23  thereof to other persons.

24         3.  This exemption does not apply to any service

25  warranty transaction taxable under s. 212.0506.

26         4.  This exemption does not apply to any service

27  transaction taxable under s. 212.05(1)(k).

28         (w)  Certain newspaper, magazine, and newsletter

29  subscriptions, shoppers, and community newspapers.--Likewise

30  exempt are newspaper, magazine, and newsletter subscriptions

31  in which the product is delivered to the customer by mail.

                                  16

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  Also exempt are free, circulated publications that are

  2  published on a regular basis, the content of which is

  3  primarily advertising, and that are distributed through the

  4  mail, home delivery, or newsstands. The exemption for

  5  newspaper, magazine, and newsletter subscriptions which is

  6  provided in this paragraph applies only to subscriptions

  7  entered into after March 1, 1997.

  8         (x)  Sporting equipment brought into the

  9  state.--Sporting equipment brought into Florida, for a period

10  of not more than 4 months in any calendar year, used by an

11  athletic team or an individual athlete in a sporting event is

12  exempt from the use tax if such equipment is removed from the

13  state within 7 days after the completion of the event.

14         (y)  Charter fishing vessels.--The charge for

15  chartering any boat or vessel, with the crew furnished, solely

16  for the purpose of fishing is exempt from the tax imposed

17  under s. 212.04 or s. 212.05.  This exemption does not apply

18  to any charge to enter or stay upon any "head-boat," party

19  boat, or other boat or vessel.  Nothing in this paragraph

20  shall be construed to exempt any boat from sales or use tax

21  upon the purchase thereof except as provided in paragraph (t)

22  and s. 212.05.

23         (z)  Vending machines sponsored by nonprofit or

24  charitable organizations.--Also exempt are food or drinks for

25  human consumption sold for 25 cents or less through a

26  coin-operated vending machine sponsored by a nonprofit

27  corporation qualified as nonprofit pursuant to s. 501(c)(3) or

28  (4) of the Internal Revenue Code of 1986, as amended.

29         (aa)  Certain commercial vehicles.--Also exempt is the

30  sale, lease, or rental of a commercial motor vehicle as

31

                                  17

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  defined in s. 207.002(2), when the following conditions are

  2  met:

  3         1.  The sale, lease, or rental occurs between two

  4  commonly owned and controlled corporations;

  5         2.  Such vehicle was titled and registered in this

  6  state at the time of the sale, lease, or rental; and

  7         3.  Florida sales tax was paid on the acquisition of

  8  such vehicle by the seller, lessor, or renter.

  9         (bb)  Community cemeteries.--Also exempt are purchases

10  by any nonprofit corporation that has qualified under s.

11  501(c)(13) of the Internal Revenue Code of 1986, as amended,

12  and is operated for the purpose of maintaining a cemetery that

13  was donated to the community by deed.

14         (cc)  Coast Guard auxiliaries.--A nonprofit

15  organization that is affiliated with the Coast Guard, that is

16  exempt from federal income tax pursuant to s. 501(a) and

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

18  the primary purpose of which is to promote safe boating and to

19  conduct free public education classes in basic seamanship is

20  exempt from the tax imposed by this chapter.

21         (cc)(dd)  Works of art.--

22         1.  Also exempt are works of art sold to or used by an

23  educational institution, as defined in sub-subparagraph

24  (o)2.d.

25         2.  This exemption also applies to the sale to or use

26  in this state of any work of art by any person if it was

27  purchased or imported exclusively for the purpose of being

28  loaned to and made available for display by any educational

29  institution, provided that the term of the loan agreement is

30  for at least 10 years.

31

                                  18

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1         3.  A work of art is presumed to have been purchased in

  2  or imported into this state exclusively for loan as provided

  3  in subparagraph 2., if it is so loaned or placed in storage in

  4  preparation for such a loan within 90 days after purchase or

  5  importation, whichever is later; but a work of art is not

  6  deemed to be placed in storage for purposes of this exemption

  7  if it is displayed at any place other than an educational

  8  institution.

  9         4.  The exemptions provided by this paragraph are

10  allowed only if the person who purchased the work of art gives

11  to the vendor an affidavit meeting the requirements,

12  established by rule, to document entitlement to the exemption.

13  The person who purchased the work of art shall forward a copy

14  of such affidavit to the Department of Revenue at the time it

15  is issued to the vendor.

16         5.  The exemption provided by subparagraph 2. applies

17  only for the period during which a work of art is in the

18  possession of the educational institution or is in storage

19  before transfer of possession to that institution; and when it

20  ceases to be so possessed or held, tax based upon the sales

21  price paid by the owner is payable, and the statute of

22  limitations provided in s. 95.091 shall begin to run at that

23  time.  Any educational institution which has received a work

24  of art pursuant to this paragraph shall make available to the

25  department information relating to the work of art. Any

26  educational institution that transfers from its possession a

27  work of art as defined by this paragraph must notify the

28  Department of Revenue within 60 days after the transfer.

29         6.  For purposes of the exemptions provided by this

30  paragraph:,

31

                                  19

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1         a.  "Educational institutions" means state

  2  tax-supported or parochial, church and nonprofit private

  3  schools, colleges, or universities which conduct regular

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

  5  membership in, the Southern Association of Colleges and

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

  7  Independent Schools, or the Florida Association of Christian

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

  9  conduct regular classes and courses of study accepted for

10  continuing education credit by a board of the Division of

11  Medical Quality Assurance of the Department of Health or which

12  conduct regular classes and courses of study accepted for

13  continuing education credit by the American Medical

14  Association. Nonprofit libraries, art galleries, performing

15  arts centers that provide educational programs to school

16  children, which programs involve performances or other

17  educational activities at the performing arts center and serve

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

19  to the public are defined as educational institutions and are

20  eligible for exemption. The term "educational institutions"

21  includes private nonprofit organizations the purpose of which

22  is to raise funds for schools teaching grades kindergarten

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

24  "educational institutions" includes any nonprofit newspaper of

25  free or paid circulation primarily on university or college

26  campuses which holds a current exemption from federal income

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

28  educational television or radio network or system established

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

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

31  system and which holds a current exemption from federal income

                                  20

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






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

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

  3  other governing or administrative offices the function of

  4  which is to assist or regulate the customary activities of

  5  educational organizations or members. The term "educational

  6  institutions" also includes a nonprofit educational cable

  7  consortium which holds a current exemption from federal income

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

  9  as amended, whose primary purpose is the delivery of

10  educational and instructional cable television programming and

11  whose members are composed exclusively of educational

12  organizations which hold a valid consumer certificate of

13  exemption and which are either an educational institution as

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

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

16  Code of 1986, as amended.

17         b.  the term "Work of art" includes pictorial

18  representations, sculpture, jewelry, antiques, stamp

19  collections and coin collections, and other tangible personal

20  property, the value of which is attributable predominantly to

21  its artistic, historical, political, cultural, or social

22  importance.

23         7.  This paragraph is a remedial clarification of

24  legislative intent and applies to all taxes that remain open

25  to assessment or contest on July 1, 1992.

26         (dd)(ee)  Taxicab leases.--The lease of or license to

27  use a taxicab or taxicab-related equipment and services

28  provided by a taxicab company to an independent taxicab

29  operator are exempt, provided, however, the exemptions

30  provided under this paragraph only apply if sales or use tax

31

                                  21

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  has been paid on the acquisition of the taxicab and its

  2  related equipment.

  3         (ee)(ff)  Aircraft repair and maintenance labor

  4  charges.--There shall be exempt from the tax imposed by this

  5  chapter all labor charges for the repair and maintenance of

  6  aircraft of more than 15,000 pounds maximum certified  takeoff

  7  weight and rotary wing aircraft of more than 10,000 pounds

  8  maximum certified takeoff weight. Except as otherwise provided

  9  in this chapter, charges for parts and equipment furnished in

10  connection with such labor charges are taxable.

11         (gg)  Athletic event sponsors.--There shall be exempt

12  from the tax imposed by this chapter sales or leases to those

13  organizations which:

14         1.a.  Are incorporated pursuant to chapter 617; and

15         b.  Hold a current exemption from federal corporate

16  income tax liability pursuant to s. 501(c)(3) of the Internal

17  Revenue Code of 1986, as amended; and

18         2.  Sponsor golf tournaments sanctioned by the PGA

19  Tour, PGA of America, or the LPGA.

20         (ff)(hh)  Electric vehicles.--Effective July 1, 1995,

21  through June 30, 2000, the sale of an electric vehicle, as

22  defined in s. 320.01, is exempt from the tax imposed by this

23  chapter.

24         (gg)(ii)  Certain electricity or steam uses.--

25         1.  Charges for electricity or steam used to operate

26  machinery and equipment at a fixed location in this state when

27  such machinery and equipment is used to manufacture, process,

28  compound, produce, or prepare for shipment items of tangible

29  personal property for sale, or to operate pollution control

30  equipment, recycling equipment, maintenance equipment, or

31  monitoring or control equipment used in such operations are

                                  22

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  exempt to the extent provided in this paragraph. In order to

  2  qualify for this exemption, 75 percent or more of the

  3  electricity used at the fixed location must be used to operate

  4  qualifying machinery or equipment. If less than 75 percent but

  5  50 percent or more of the electricity is used at a fixed

  6  location to operate qualifying machinery or equipment, then it

  7  is presumed that 50 percent of the charge for electricity is

  8  for nonexempt purposes.

  9         2.  This exemption applies only to industries

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

11  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

12  35, 36, 37, 38, and 39. As used in this paragraph, "SIC" means

13  those classifications contained in the Standard Industrial

14  Classification Manual, 1987, as published by the Office of

15  Management and Budget, Executive Office of the President.

16         3.  Possession by a seller of a written certification

17  by the purchaser, certifying the purchaser's entitlement to an

18  exemption permitted by this subsection, relieves the seller

19  from the responsibility of collecting the tax on the

20  nontaxable amounts, and the department shall look solely to

21  the purchaser for recovery of such tax if it determines that

22  the purchaser was not entitled to the exemption.

23         4.  Such exemption shall be applied as follows:

24         a.  Beginning July 1, 1996, 20 percent of the charges

25  for such electricity shall be exempt.

26         b.  Beginning July 1, 1997, 40 percent of the charges

27  for such electricity shall be exempt.

28         c.  Beginning July 1, 1998, 60 percent of the charges

29  for such electricity or steam shall be exempt.

30         d.  Beginning July 1, 1999, 80 percent of the charges

31  for such electricity or steam shall be exempt.

                                  23

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1         e.  Beginning July 1, 2000, 100 percent of the charges

  2  for such electricity or steam shall be exempt.

  3         5.  Notwithstanding any other provision in this

  4  paragraph to the contrary, in order to receive the exemption

  5  provided in this paragraph a taxpayer must first register with

  6  the WAGES Program Business Registry established by the local

  7  WAGES coalition for the area in which the taxpayer is located.

  8  Such registration establishes a commitment on the part of the

  9  taxpayer to hire WAGES program participants to the maximum

10  extent possible consistent with the nature of their business.

11         6.a.  In order to determine whether the exemption

12  provided in this paragraph from the tax on charges for

13  electricity or steam has an effect on retaining or attracting

14  companies to this state, the Office of Program Policy Analysis

15  and Governmental Accountability shall periodically monitor and

16  report on the industries receiving the exemption.

17         b.  The first report shall be submitted no later than

18  January 1, 1997, and must be conducted in such a manner as to

19  specifically determine the number of companies within each SIC

20  Industry Major Group receiving the exemption as of September

21  1, 1996, and the number of individuals employed by companies

22  within each SIC Industry Major Group receiving the exemption

23  as of September 1, 1996.

24         c.  The second report shall be submitted no later than

25  January 1, 2001, and must be comprehensive in scope, but, at a

26  minimum, must be conducted in such a manner as to specifically

27  determine the number of companies within each SIC Industry

28  Major Group receiving the exemption as of September 1, 2000,

29  the number of individuals employed by companies within each

30  SIC Industry Major Group receiving the exemption as of

31  September 1, 2000, whether the change, if any, in such number

                                  24

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  of companies or employees is attributable to the exemption

  2  provided in this paragraph, whether it would be sound public

  3  policy to continue or discontinue the exemption, and the

  4  consequences of doing so.

  5         d.  Both reports shall be submitted to the President of

  6  the Senate, the Speaker of the House of Representatives, the

  7  Senate Minority Leader, and the House Minority Leader.

  8         (hh)(jj)  Fair associations.--Also exempt from the tax

  9  imposed by this chapter is the sale, use, lease, rental, or

10  grant of a license to use, made directly to or by a fair

11  association, of real or tangible personal property; any charge

12  made by a fair association, or its agents, for parking,

13  admissions, or for temporary parking of vehicles used for

14  sleeping quarters; rentals, subleases, and sublicenses of real

15  or tangible personal property between the owner of the central

16  amusement attraction and any owner of an amusement ride, as

17  those terms are used in ss. 616.15(1)(b) and 616.242(3)(a),

18  for the furnishing of amusement rides at a public fair or

19  exposition; and other transactions of a fair association which

20  are incurred directly by the fair association in the

21  financing, construction, and operation of a fair, exposition,

22  or other event or facility that is authorized by s. 616.08. As

23  used in this paragraph, the terms "fair association" and

24  "public fair or exposition" have the same meaning as those

25  terms are defined in s. 616.001. This exemption does not apply

26  to the sale of tangible personal property made by a fair

27  association through an agent or independent contractor; sales

28  of admissions and tangible personal property by a

29  concessionaire, vendor, exhibitor, or licensee; or rentals and

30  subleases of tangible personal property or real property

31  between the owner of the central amusement attraction and a

                                  25

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  concessionaire, vendor, exhibitor, or licensee, except for the

  2  furnishing of amusement rides, which transactions are exempt.

  3         (ii)(kk)  Citizen support organizations.--Beginning

  4  July 1, 1996, Nonprofit organizations that are incorporated

  5  under chapter 617 or hold a current exemption from federal

  6  corporate income tax under s. 501(c)(3) of the Internal

  7  Revenue Code, as amended, and that have been designated

  8  citizen support organizations in support of state-funded

  9  environmental programs or the management of state-owned lands

10  in accordance with s. 370.0205, or to support one or more

11  state parks in accordance with s. 258.015 are exempt from the

12  tax imposed by this chapter.

13         (jj)(ll)  Florida Folk Festival.--There shall be exempt

14  from the tax imposed by this chapter income of a revenue

15  nature received from admissions to the Florida Folk Festival

16  held pursuant to s. 267.16 at the Stephen Foster State Folk

17  Culture Center, a unit of the state park system.

18         (kk)(mm)  Solar energy systems.--Also exempt are solar

19  energy systems or any component thereof.  The Florida Solar

20  Energy Center shall from time to time certify to the

21  department a list of equipment and requisite hardware

22  considered to be a solar energy system or a component thereof.

23  This exemption is repealed July 1, 2002.

24         (ll)(nn)  Nonprofit cooperative hospital

25  laundries.--Nonprofit organizations that are incorporated

26  under chapter 617 and which are treated, for federal income

27  tax purposes, as cooperatives under subchapter T of the

28  Internal Revenue Code, whose sole purpose is to offer laundry

29  supplies and services to their members, which members must all

30  be exempt from federal income tax pursuant to s. 501(c)(3) of

31

                                  26

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  the Internal Revenue Code, are exempt from the tax imposed by

  2  this chapter.

  3         (mm)(oo)  Complimentary meals.--Also exempt from the

  4  tax imposed by this chapter part are food or drinks that are

  5  furnished as part of a packaged room rate by any person

  6  offering for rent or lease any transient living accommodations

  7  as described in s. 509.013(4)(a) which are licensed under part

  8  I of chapter 509 and which are subject to the tax under s.

  9  212.03, if a separate charge or specific amount for the food

10  or drinks is not shown. Such food or drinks are considered to

11  be sold at retail as part of the total charge for the

12  transient living accommodations. Moreover, the person offering

13  the accommodations is not considered to be the consumer of

14  items purchased in furnishing such food or drinks and may

15  purchase those items under conditions of a sale for resale.

16         (nn)(pp)  Nonprofit corporation conducting the

17  correctional work programs.--Products sold pursuant to s.

18  946.515 by the corporation organized pursuant to part II of

19  chapter 946 are exempt from the tax imposed by this chapter.

20  This exemption applies retroactively to July 1, 1983.

21         (oo)(qq)  Parent-teacher organizations, parent-teacher

22  associations, and schools having grades K through

23  12.--Parent-teacher organizations and associations qualified

24  as educational institutions as defined by sub-subparagraph

25  (cc)6.a. under paragraph (o) associated with schools having

26  grades K through 12, and schools having grades K through 12,

27  may pay tax to their suppliers on the cost price of school

28  materials and supplies purchased, rented, or leased for resale

29  or rental to students in grades K through 12, of items sold

30  for fundraising purposes, and of items sold through vending

31  machines located on the school premises, in lieu of collecting

                                  27

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  the tax imposed by this chapter from the purchaser. This

  2  paragraph also applies to food or beverages sold through

  3  vending machines located in the student lunchroom or dining

  4  room of a school having kindergarten through grade 12.

  5         (pp)(rr)  Mobile home lot improvements.--Items

  6  purchased by developers for use in making improvements to a

  7  mobile home lot owned by the developer may be purchased

  8  tax-exempt as a sale for resale if made pursuant to a contract

  9  that requires the developer to sell a mobile home to a

10  purchaser, place the mobile home on the lot, and make the

11  improvements to the lot for a single lump-sum price. The

12  developer must collect and remit sales tax on the entire

13  lump-sum price.

14         (qq)(ss)  Veterans Administration.--When a veteran of

15  the armed forces purchases an aircraft, boat, mobile home,

16  motor vehicle, or other vehicle from a dealer pursuant to the

17  provisions of 38 U.S.C. s. 3902(a), or any successor provision

18  of the United States Code, the amount that is paid directly to

19  the dealer by the Veterans Administration is not taxable.

20  However, any portion of the purchase price which is paid

21  directly to the dealer by the veteran is taxable.

22         (rr)(tt)  Complimentary items.--There is exempt from

23  the tax imposed by this chapter:

24         1.  Any food or drink, whether or not cooked or

25  prepared on the premises, provided without charge as a sample

26  or for the convenience of customers by a dealer that primarily

27  sells food product items at retail.

28         2.  Any item given to a customer as part of a price

29  guarantee plan related to point-of-sale errors by a dealer

30  that primarily sells food products at retail.

31

                                  28

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  The exemptions in this paragraph do not apply to businesses

  2  with the primary activity of serving prepared meals or

  3  alcoholic beverages for immediate consumption.

  4         (ss)(uu)  Donated foods or beverages.--Any food or

  5  beverage donated by a dealer that sells food products at

  6  retail to a food bank or an organization that holds a current

  7  exemption from federal corporate income tax pursuant to s.

  8  501(c) of the Internal Revenue Code of 1986, as amended, is

  9  exempt from the tax imposed by this chapter.

10         (tt)(vv)  Racing dogs.--The sale of a racing dog by its

11  owner is exempt if the owner is also the breeder of the

12  animal.

13         (uu)(ww)  Equipment used in aircraft repair and

14  maintenance.--There shall be exempt from the tax imposed by

15  this chapter replacement engines, parts, and equipment used in

16  the repair or maintenance of aircraft of more than 15,000

17  pounds maximum certified takeoff weight and rotary wing

18  aircraft of more than 10,300 pounds maximum certified takeoff

19  weight, when such parts or equipment are installed on such

20  aircraft that is being repaired or maintained in this state.

21         (vv)(xx)  Aircraft sales or leases.--The sale or lease

22  of an aircraft of more than 15,000 pounds maximum certified

23  takeoff weight for use by a common carrier is exempt from the

24  tax imposed by this chapter. As used in this paragraph,

25  "common carrier" means an airline operating under Federal

26  Aviation Administration regulations contained in Title 14,

27  chapter I, part 121 or part 129 of the Code of Federal

28  Regulations.

29         (yy)  Sales or leases to Gasparilla Distance Classic

30  Association, Inc.--Also exempt from the tax imposed by this

31  chapter are sales or leases to the Gasparilla Distance Classic

                                  29

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  Association, Inc., if that organization holds a current

  2  exemption from federal corporate income tax liability pursuant

  3  to s. 501(c)(3) of the Internal Revenue Code of 1986, as

  4  amended.

  5

  6  Exemptions provided to any entity by this subsection shall not

  7  inure to any transaction otherwise taxable under this chapter

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

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

10  check, or credit card even when that representative or

11  employee is subsequently reimbursed by such entity.

12         Section 2.  Subsection (6) of section 212.084, Florida

13  Statutes, is amended to read:

14         212.084  Review of exemption certificates; reissuance;

15  specified expiration date; temporary exemption certificates.--

16         (6)(a)  The Department of Revenue may issue temporary

17  exemption certificates to newly organized charitable

18  organizations applying for exemption under s.

19  212.08(7)(p)(o)2.b. when a lack of historical information

20  prevents the applicant from qualifying immediately for an

21  exemption certificate. The department may require the

22  applicant to submit the information necessary to demonstrate

23  that the organization's proposed activities will qualify for

24  exemption under this chapter. The application must include an

25  estimate of the organization's expenditures that would be

26  taxable except for the temporary exemption certificate. If at

27  any time the amount of actual expenditures otherwise subject

28  to tax exceeds the anticipated amount, the applicant must file

29  with the department a supplemental application stating the

30  actual expenditures and the estimated expenditures for the

31  duration of the period covered by the temporary certificate.

                                  30

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1         (b)  A recipient of a temporary certificate must

  2  qualify for a permanent certificate before the temporary

  3  certificate expires, or the recipient will be liable for the

  4  taxes and interest on all purchases for which the temporary

  5  exemption certificate was used. The executive director of the

  6  department may require the applicant for a temporary exemption

  7  certificate to file a cash or surety bond in an amount

  8  sufficient to satisfy the department's estimate of taxes and

  9  interest that would be due if the organization failed to

10  timely qualify for a regular exemption certificate.

11         (c)  A temporary exemption certificate expires 12

12  months after the date of issuance and may be renewed once for

13  an additional 12 months. If at any time the department

14  determines that the organization will not meet the criteria in

15  s. 212.08(7)(p)(o)2.b. for the issuance of a regular exemption

16  certificate, the temporary exemption certificate must be

17  canceled, and the taxes and interest on all purchases for

18  which the temporary exemption certificate was used are due

19  within 30 days after the cancellation. The department may

20  adopt rules governing the application for, the issuance of,

21  and the form of the temporary exemption certificate and

22  providing for the collection of back taxes and interest.

23         Section 3.  Subsection (4) of section 196.195, Florida

24  Statutes, 1998 Supplement, is amended to read:

25         196.195  Determining profit or nonprofit status of

26  applicant.--

27         (4)  Notwithstanding the provisions of subsections (2)

28  and (3), a corporation organized as nonprofit under chapter

29  617 which has a valid consumer certificate of exemption

30  pursuant to s. 212.08(7)(m), (n), (o), or (p) and which has a

31  valid exemption from federal income tax under s. 501(c)(3) of

                                  31

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  the Internal Revenue Code is nonprofit.  Proof provided by a

  2  corporation of its status as described in this subsection

  3  shall be sufficient to establish the organization's nonprofit

  4  status, and any corporation providing such proof is not

  5  required to provide any other information in order to

  6  establish its nonprofit status.

  7         Section 4.  Paragraph (c) of subsection (1) of section

  8  196.196, Florida Statutes, 1998 Supplement, is amended to

  9  read:

10         196.196  Determining whether property is entitled to

11  charitable, religious, scientific, or literary exemption.--

12         (1)  In the determination of whether an applicant is

13  actually using all or a portion of its property predominantly

14  for a charitable, religious, scientific, or literary purpose,

15  the following criteria shall be applied:

16         (c)  The extent to which the property is used to

17  conduct activities which cause a corporation to qualify for a

18  consumer certificate of exemption under s. 212.08(7)(m), (n),

19  (o), or (p). Such activities shall be considered as part of

20  the exempt purposes of the applicant.

21         Section 5.  Subsection (2) of section 212.0821, Florida

22  Statutes, is amended to read:

23         212.0821  Legislative intent that political

24  subdivisions and public libraries use their sales tax

25  exemption certificates for purchases on behalf of specified

26  groups.--It is the intent of the Legislature that the

27  political subdivisions of the state and the public libraries

28  utilize their sales tax exemption certificates to purchase,

29  with funds provided by the following groups, services,

30  equipment, supplies, and items necessary for the operation of

31

                                  32

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  such groups, in addition to the normal exempt purchases that

  2  political subdivisions and libraries are empowered to make:

  3         (2)  Counties and municipalities shall purchase

  4  necessary goods and services requested by REACT groups,

  5  neighborhood crime watch groups, and state or locally

  6  recognized organizations solely engaged in youth activities

  7  identical to those discussed in s. 212.08(7)(l)(n).

  8         Section 6.  Section 403.715, Florida Statutes, is

  9  amended to read:

10         403.715  Certification of resource recovery or

11  recycling equipment.--For purposes of implementing the tax

12  exemptions provided by s. 212.08(5)(e) and (7)(q)(p), the

13  department shall establish a system for the examination and

14  certification of resource recovery or recycling equipment.

15  Application for certification of equipment shall be submitted

16  to the department on forms prescribed by it which include such

17  pertinent information as the department may require.  The

18  department may require appropriate certification by a

19  certified public accountant or professional engineer that the

20  equipment for which these exemptions are being sought complies

21  with the exemption criteria set forth in s. 212.08(5)(e) and

22  (7)(q)(p). Within 30 days after receipt of an application by

23  the department, a representative of the department may inspect

24  the equipment. Within 30 days after such inspection, the

25  department shall issue a written decision granting or denying

26  certification.

27         Section 7.  Section 414.029, Florida Statutes, is

28  amended to read:

29         414.029  WAGES Program Business Registry.--Each local

30  WAGES coalition created pursuant to s. 414.028 must establish

31  a business registry for business firms committed to assist in

                                  33

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1  the effort of finding jobs for WAGES Program participants.

  2  Registered businesses agree to work with the coalition and to

  3  hire WAGES Program participants to the maximum extent possible

  4  consistent with the nature of their business.  Each quarter,

  5  the coalition must publish a list of businesses registered as

  6  a prerequisite for receiving a tax exemption provided under s.

  7  212.08(5)(b) or (7)(gg)(ii) and the number of jobs each has

  8  provided for program participants.

  9         Section 8.  Subsection (9) of section 496.404, Florida

10  Statutes, 1998 Supplement, is amended to read:

11         496.404  Definitions.--As used in ss. 496.401-496.424:

12         (9)  "Educational institutions" means those

13  institutions and organizations described in s.

14  212.08(7)(cc)6.(o)2.d.

15         Section 9.  Paragraph (b) of subsection (3) of section

16  564.02, Florida Statutes, is amended to read:

17         564.02  License fees; vendors; manufacturers and

18  distributors.--

19         (3)

20         (b)  A bona fide religious order, monastery, church, or

21  religious body that has a tax-exempt status as a religious

22  organization as provided by s. 212.08(7)(m) or (p)(o) may be

23  licensed as a distributor under this subsection if its sales

24  and distribution are limited to wines sold solely for

25  religious or sacramental purposes to holders of valid permits

26  obtained under s. 564.03; and such religious order, monastery,

27  church, or religious body shall pay a state license tax of $50

28  for each and every such distribution establishment to be

29  operated by the licensee.

30         Section 10.  This act shall take effect July 1, 1999.

31

                                  34

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






    Florida House of Representatives - 1999                  HB 57

    204-198-99






  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Provides a sales tax exemption for sales or leases to all
  4    organizations exempt from federal income tax under s.
      501(c)(3) of the Internal Revenue Code, and removes and
  5    revises various specific exemptions to conform. Revises
      application of provisions which specify that certain
  6    nonprofit corporations which are exempt from sales tax
      are nonprofit for purposes of determining eligibility for
  7    the religious, literary, scientific, or charitable ad
      valorem tax exemption, and provisions which specify a
  8    criterion to be used in determining if property is being
      used for a charitable, religious, scientific, or literary
  9    purpose.

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  35