House Bill 0099
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 99
By Representative Dockery
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 defining "advertising agency"; exempting the
5 sale of advertising services by an advertising
6 agency and certain items sold to, produced by,
7 or sold by advertising agencies and related
8 services from the tax; providing for
9 administration; providing for retroactive
10 applicability in certain circumstances;
11 providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (zz) is added to subsection (7)
16 of section 212.08, Florida Statutes, 1998 Supplement, to read:
17 212.08 Sales, rental, use, consumption, distribution,
18 and storage tax; specified exemptions.--The sale at retail,
19 the rental, the use, the consumption, the distribution, and
20 the storage to be used or consumed in this state of the
21 following are hereby specifically exempt from the tax imposed
22 by this chapter.
23 (7) MISCELLANEOUS EXEMPTIONS.--
24 (zz) Advertising agencies.--
25 1. As used in this paragraph, "advertising agency"
26 means any firm that is regularly engaged in the business of
27 providing advertising materials and services to its clients.
28 2. The sale of advertising services by an advertising
29 agency to a client is exempt from the tax imposed by this
30 chapter. Also exempt from the tax imposed by this chapter are
31 items of tangible personal property such as photographic
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Florida House of Representatives - 1999 HB 99
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1 negatives and positives, videos, films, galleys, mechanicals,
2 veloxes, illustrations, digital audiotapes, analog tapes,
3 printed advertisement copies, compact discs for the purpose of
4 recording, digital equipment, digital photographic discs,
5 floppy discs, analog tape equipment, and artwork and the
6 services used to produce those items if the items are:
7 a. Sold to an advertising agency that is acting as an
8 agent for its clients pursuant to contract, and are created
9 for the performance of advertising services for the clients;
10 b. Produced, fabricated, manufactured, or otherwise
11 created by an advertising agency for its clients, and are used
12 in the performance of advertising services for the clients; or
13 c. Sold by an advertising agency to its clients in the
14 performance of advertising services for the clients, whether
15 or not the charges for these items are marked up or separately
16 stated.
17
18 The exemption provided by this subparagraph does not apply
19 when tangible personal property such as film, paper, and
20 videotapes is purchased to create items such as photographic
21 negatives and positives, videos, films, galleys, mechanicals,
22 veloxes, illustrations, and artwork that are sold to an
23 advertising agency or produced in house by an advertising
24 agency on behalf of its clients.
25 3. The items exempted from tax under subparagraph 2.
26 and the creative services used by an advertising agency to
27 design the advertising for promotional goods such as displays,
28 display containers, exhibits, newspaper inserts, brochures,
29 catalogues, direct mail letters or flats, shirts, hats, pens,
30 pencils, key chains, or other printed goods or materials are
31 not subject to tax. However, when such promotional goods are
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Florida House of Representatives - 1999 HB 99
578-107Y-99
1 produced or reproduced for distribution, tax applies to the
2 cost price.
3 4. For items purchased by an advertising agency and
4 exempt from tax under this paragraph, possession of an
5 exemption certificate from the advertising agency certifying
6 the agency's entitlement to exemption relieves the vendor of
7 the responsibility of collecting the tax on the sale of such
8 items to the advertising agency, and the department shall look
9 solely to the advertising agency for recovery of tax if it
10 determines that the advertising agency was not entitled to the
11 exemption.
12 5. The exemptions provided by this paragraph apply
13 retroactively, except that all taxes that have been collected
14 must be remitted, and taxes that have been remitted before
15 July 1, 1999, on transactions that are subject to exemption
16 under this paragraph are not subject to refund.
17
18 Exemptions provided to any entity by this subsection shall not
19 inure to any transaction otherwise taxable under this chapter
20 when payment is made by a representative or employee of such
21 entity by any means, including, but not limited to, cash,
22 check, or credit card even when that representative or
23 employee is subsequently reimbursed by such entity.
24 Section 2. This act shall take effect July 1, 1999.
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27 HOUSE SUMMARY
28
Exempts the sale of advertising services by an
29 advertising agency and certain items sold to, produced
by, or sold by advertising agencies and related services
30 from sales tax. Provides for administration and for
retroactive applicability in certain circumstances.
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