Senate Bill 0970c1
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Florida Senate - 1999 CS for SB 970
By the Committee on Fiscal Resource and Senator Myers
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1 A bill to be entitled
2 An act relating to the tax on sales, use, and
3 other transactions; amending s. 212.04, F.S.;
4 providing an exemption for moneys paid for the
5 privilege of joining certain private clubs;
6 providing an exemption for contributions or
7 assessments levied by private clubs for capital
8 expenditures; providing an effective date.
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10 Be It Enacted by the Legislature of the State of Florida:
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12 Section 1. Paragraph (a) of subsection (2) of section
13 212.04, Florida Statutes, 1998 Supplement, is amended to read:
14 212.04 Admissions tax; rate, procedure, enforcement.--
15 (2)(a)1. No tax shall be levied on admissions to
16 athletic or other events sponsored by elementary schools,
17 junior high schools, middle schools, high schools, community
18 colleges, public or private colleges and universities, deaf
19 and blind schools, facilities of the youth services programs
20 of the Department of Children and Family Services, and state
21 correctional institutions when only student, faculty, or
22 inmate talent is used. However, this exemption shall not apply
23 to admission to athletic events sponsored by an institution
24 within the State University System, and the proceeds of the
25 tax collected on such admissions shall be retained and used by
26 each institution to support women's athletics as provided in
27 s. 240.533(3)(c).
28 2.a. No tax shall be levied on dues, membership fees,
29 and admission charges imposed by not-for-profit sponsoring
30 organizations. To receive this exemption, the sponsoring
31 organization must qualify as a not-for-profit entity under the
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Florida Senate - 1999 CS for SB 970
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1 provisions of s. 501(c)(3) of the Internal Revenue Code of
2 1954, as amended.
3 b. No tax imposed by this section and not actually
4 collected before August 1, 1992, shall be due from any museum
5 or historic building owned by any political subdivision of the
6 state.
7 3. No tax shall be levied on an admission paid by a
8 student, or on the student's behalf, to any required place of
9 sport or recreation if the student's participation in the
10 sport or recreational activity is required as a part of a
11 program or activity sponsored by, and under the jurisdiction
12 of, the student's educational institution, provided his or her
13 attendance is as a participant and not as a spectator.
14 4. No tax shall be levied on admissions to the
15 National Football League championship game, on admissions to
16 any semifinal game or championship game of a national
17 collegiate tournament, or on admissions to a Major League
18 Baseball all-star game.
19 5. A participation fee or sponsorship fee imposed by a
20 governmental entity as described in s. 212.08(6) for an
21 athletic or recreational program is exempt when the
22 governmental entity by itself, or in conjunction with an
23 organization exempt under s. 501(c)(3) of the Internal Revenue
24 Code of 1954, as amended, sponsors, administers, plans,
25 supervises, directs, and controls the athletic or recreational
26 program.
27 6. Also exempt from the tax imposed by this section to
28 the extent provided in this subparagraph are admissions to
29 live theater, live opera, or live ballet productions in this
30 state which are sponsored by an organization that has received
31 a determination from the Internal Revenue Service that the
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Florida Senate - 1999 CS for SB 970
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1 organization is exempt from federal income tax under s.
2 501(c)(3) of the Internal Revenue Code of 1954, as amended, if
3 the organization actively participates in planning and
4 conducting the event, is responsible for the safety and
5 success of the event, is organized for the purpose of
6 sponsoring live theater, live opera, or live ballet
7 productions in this state, has more than 10,000 subscribing
8 members and has among the stated purposes in its charter the
9 promotion of arts education in the communities which it
10 serves, and will receive at least 20 percent of the net
11 profits, if any, of the events which the organization sponsors
12 and will bear the risk of at least 20 percent of the losses,
13 if any, from the events which it sponsors if the organization
14 employs other persons as agents to provide services in
15 connection with a sponsored event. Prior to March 1 of each
16 year, such organization may apply to the department for a
17 certificate of exemption for admissions to such events
18 sponsored in this state by the organization during the
19 immediately following state fiscal year. The application shall
20 state the total dollar amount of admissions receipts collected
21 by the organization or its agents from such events in this
22 state sponsored by the organization or its agents in the year
23 immediately preceding the year in which the organization
24 applies for the exemption. Such organization shall receive the
25 exemption only to the extent of $1.5 million multiplied by the
26 ratio that such receipts bear to the total of such receipts of
27 all organizations applying for the exemption in such year;
28 however, in no event shall such exemption granted to any
29 organization exceed 6 percent of such admissions receipts
30 collected by the organization or its agents in the year
31 immediately preceding the year in which the organization
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Florida Senate - 1999 CS for SB 970
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1 applies for the exemption. Each organization receiving the
2 exemption shall report each month to the department the total
3 admissions receipts collected from such events sponsored by
4 the organization during the preceding month and shall remit to
5 the department an amount equal to 6 percent of such receipts
6 reduced by any amount remaining under the exemption. Tickets
7 for such events sold by such organizations shall not reflect
8 the tax otherwise imposed under this section.
9 7. Also exempt from the tax imposed by this section
10 are entry fees for participation in freshwater fishing
11 tournaments.
12 8. Also exempt from the tax imposed by this section
13 are participation or entry fees charged to participants in a
14 game, race, or other sport or recreational event if spectators
15 are charged a taxable admission to such event.
16 9. No tax shall be levied on admissions to any
17 postseason collegiate football game sanctioned by the National
18 Collegiate Athletic Association.
19 10. No tax shall be levied on moneys paid on a
20 one-time-only basis for the privilege of joining and acquiring
21 ownership interest in private clubs, regardless of whether
22 such moneys are refundable and regardless of the purposes for
23 which such moneys are used. As used in this subparagraph, the
24 term "ownership interest" means the acquisition by a member of
25 an equitable residual right to the net assets of the club upon
26 its dissolution, regardless of whether the interest is
27 refundable or whether the member acquires voting rights.
28 11. No tax shall be levied on capital contributions or
29 assessments for capital expenditures levied by private clubs,
30 regardless of whether such capital contributions or
31 assessments are recurring or nonrecurring, however, such
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Florida Senate - 1999 CS for SB 970
314-2151-99
1 assessments may not result in a reduction of dues or fees. As
2 used in this subparagraph, the term "capital expenditures"
3 means the acquisition of capital assets and payments for
4 capital improvements, including repairs or maintenance to
5 existing capital assets which add to the value of or prolong
6 the useful life of the capital asset according to generally
7 accepted accounting principles.
8 Section 2. This act shall take effect July 1, 1999.
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10 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
11 SB 970
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13 The committee substitute did not change the content of the
bill. It did however, tighten up the exemption for joining
14 fees and capital contribution assessments paid to certain
private clubs. It also provided definitions for "ownership
15 interest" and "capital expenditures".
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