Senate Bill 0700

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    Florida Senate - 1999                                   SB 700

    By Senator Forman





    32-533-99

  1                      A bill to be entitled

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

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

  4         expanding the exemption for veterans' groups;

  5         providing an effective date.

  6

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

  8

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

10  212.08, Florida Statutes, 1998 Supplement, is amended to read:

11         212.08  Sales, rental, use, consumption, distribution,

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

13  the rental, the use, the consumption, the distribution, and

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

15  following are hereby specifically exempt from the tax imposed

16  by this chapter.

17         (7)  MISCELLANEOUS EXEMPTIONS.--

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

19  and veterans' institutions and organizations.--

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

21  chapter transactions involving:

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

23  leases of tangible personal property by churches;

24         b.  Sales or leases to nonprofit religious, nonprofit

25  charitable, nonprofit scientific, or nonprofit educational

26  institutions when used in carrying on their customary

27  nonprofit religious, nonprofit charitable, nonprofit

28  scientific, or nonprofit educational activities, including

29  church cemeteries; and

30         c.  Sales or leases to the state headquarters of

31  qualified veterans' organizations and the state headquarters

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    Florida Senate - 1999                                   SB 700
    32-533-99




  1  of their auxiliaries when used in carrying on their customary

  2  veterans' organization activities. If a qualified veterans'

  3  organization or its auxiliary does not maintain a permanent

  4  state headquarters, then transactions involving sales or

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

  6  the highest ranking state official are exempt from the tax

  7  imposed by this chapter.

  8         2.  The provisions of this section authorizing

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

10  applied in each category as follows:

11         a.  "Religious institutions" means churches,

12  synagogues, and established physical places for worship at

13  which nonprofit religious services and activities are

14  regularly conducted and carried on. The term "religious

15  institutions" includes nonprofit corporations the sole purpose

16  of which is to provide free transportation services to church

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

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

19  other governing or administrative offices the function of

20  which is to assist or regulate the customary activities of

21  religious organizations or members. The term "religious

22  institutions" also includes any nonprofit corporation which is

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

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

25  Florida television station, at least 90 percent of the

26  programming of which station consists of programs of a

27  religious nature, and the financial support for which,

28  exclusive of receipts for broadcasting from other nonprofit

29  organizations, is predominantly from contributions from the

30  general public. The term "religious institutions" also

31  includes any nonprofit corporation which is qualified as

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    Florida Senate - 1999                                   SB 700
    32-533-99




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

  2  1986, as amended, which provides regular religious services to

  3  Florida state prisoners and which from its own established

  4  physical place of worship, operates a ministry providing

  5  worship and services of a charitable nature to the community

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

  7  includes any nonprofit corporation which is qualified as

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

  9  1986, as amended, the primary activity of which is making and

10  distributing audio recordings of religious scriptures and

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

12  The term "religious institutions" also includes any nonprofit

13  corporation that is qualified as nonprofit pursuant to s.

14  501(c)(3), Internal Revenue Code of 1986, as amended, the sole

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

16  nonprofit religious services, evangelistic services, religious

17  education, administration assistance, or missionary assistance

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

19  worship at which nonprofit religious services and activities

20  are regularly conducted.

21         b.  "Charitable institutions" means only nonprofit

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

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

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

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

26  of the following services if a reasonable percentage of such

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

28  reduced cost, to persons, animals, or organizations that are

29  unable to pay for such service:

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

31  disability;

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    Florida Senate - 1999                                   SB 700
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  1         (II)  Regular provision of physical necessities such as

  2  food, clothing, or shelter;

  3         (III)  Services for the prevention of or rehabilitation

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

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

  6  health problems;

  7         (IV)  Social welfare services including adoption

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

  9  other social welfare services which clearly and substantially

10  benefit a client population which is disadvantaged or suffers

11  a hardship;

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

13  injury, or disability;

14         (VI)  Legal services; or

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

16  adoption services, cruelty investigations, or education

17  programs concerning animals;

18

19  and the term includes groups providing volunteer staff to

20  organizations designated as charitable institutions under this

21  sub-subparagraph; nonprofit organizations the sole or primary

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

23  institutions designated as charitable institutions under this

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

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

26  district, or other governing, coordinating, or administrative

27  organizations the sole or primary purpose of which is to

28  represent or regulate the customary activities of other

29  institutions designated as charitable institutions under this

30  sub-subparagraph.  Notwithstanding any other requirement of

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

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    Florida Senate - 1999                                   SB 700
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  1  donations of blood and tissue, that is licensed under chapter

  2  483, and that qualifies as tax exempt under s. 501(c)(3) of

  3  the Internal Revenue Code constitutes a charitable institution

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

  5  health system foundation, qualified as nonprofit pursuant to

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

  7  filed an application for exemption with the department prior

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

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

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

11         c.  "Scientific organizations" means scientific

12  organizations which hold current exemptions from federal

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

14  also means organizations the purpose of which is to protect

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

16  wildlife and which hold current exemptions from the federal

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

18         d.  "Educational institutions" means state

19  tax-supported or parochial, church and nonprofit private

20  schools, colleges, or universities which conduct regular

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

22  membership in, the Southern Association of Colleges and

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

24  Independent Schools, or the Florida Association of Christian

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

26  conduct regular classes and courses of study accepted for

27  continuing education credit by a board of the Division of

28  Medical Quality Assurance of the Department of Health or which

29  conduct regular classes and courses of study accepted for

30  continuing education credit by the American Medical

31  Association. Nonprofit libraries, art galleries, performing

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    Florida Senate - 1999                                   SB 700
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  1  arts centers that provide educational programs to school

  2  children, which programs involve performances or other

  3  educational activities at the performing arts center and serve

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

  5  to the public are defined as educational institutions and are

  6  eligible for exemption. The term "educational institutions"

  7  includes private nonprofit organizations the purpose of which

  8  is to raise funds for schools teaching grades kindergarten

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

10  "educational institutions" includes any nonprofit newspaper of

11  free or paid circulation primarily on university or college

12  campuses which holds a current exemption from federal income

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

14  educational television or radio network or system established

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

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

17  system and which holds a current exemption from federal income

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

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

20  other governing or administrative offices the function of

21  which is to assist or regulate the customary activities of

22  educational organizations or members. The term "educational

23  institutions" also includes a nonprofit educational cable

24  consortium which holds a current exemption from federal income

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

26  as amended, whose primary purpose is the delivery of

27  educational and instructional cable television programming and

28  whose members are composed exclusively of educational

29  organizations which hold a valid consumer certificate of

30  exemption and which are either an educational institution as

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

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    Florida Senate - 1999                                   SB 700
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  1  organization pursuant to s. 501(c)(3) of the Internal Revenue

  2  Code of 1986, as amended.

  3         e.  "Veterans' organizations" means nationally

  4  chartered or recognized veterans' organizations, including,

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

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

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

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

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

10  Internal Revenue Code.

11

12  Exemptions provided to any entity by this subsection shall not

13  inure to any transaction otherwise taxable under this chapter

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

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

16  check, or credit card even when that representative or

17  employee is subsequently reimbursed by such entity.

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

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20            *****************************************

21                          SENATE SUMMARY

22    Expands the exemption from the tax on sales, use, and
      other transactions which is provided to veterans' groups,
23    so that the exemption applies to all qualified veterans'
      organizations, as defined in s. 212.08, F.S., and not
24    just to the state headquarters.

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