Senate Bill 0992c1
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Florida Senate - 1999 CS for SB 992
By the Committee on Fiscal Resource and Senator Horne
314-2149-99
1 A bill to be entitled
2 An act relating to tax on sales, use, and other
3 transactions; amending s. 212.08, F.S.;
4 providing an exemption for works of art
5 purchased or imported for the purpose of
6 donation to an educational institution;
7 providing requirements with respect thereto;
8 revising the industries to which the exemption
9 for electricity or steam used in certain
10 manufacturing and related operations applies;
11 providing an exemption for labor charges for,
12 and parts and materials used in, the repair of
13 machinery and equipment used to produce
14 tangible personal property at a fixed location
15 by specified industries; providing a schedule
16 for implementing the exemption; providing an
17 effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Paragraphs (dd) and (ii) of subsection (7)
22 of section 212.08, Florida Statutes, 1998 Supplement, are
23 amended, and paragraph (zz) is added to that subsection, to
24 read:
25 212.08 Sales, rental, use, consumption, distribution,
26 and storage tax; specified exemptions.--The sale at retail,
27 the rental, the use, the consumption, the distribution, and
28 the storage to be used or consumed in this state of the
29 following are hereby specifically exempt from the tax imposed
30 by this chapter.
31 (7) MISCELLANEOUS EXEMPTIONS.--
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Florida Senate - 1999 CS for SB 992
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1 (dd) Works of art.--
2 1. Also exempt are works of art sold to or used by an
3 educational institution, as defined in sub-subparagraph
4 (o)2.d.
5 2. This exemption also applies to the sale to or use
6 in this state of any work of art by any person if it was
7 purchased or imported exclusively for the purpose of being
8 donated to any educational institution or loaned to and made
9 available for display by any educational institution, provided
10 that the term of the loan agreement is for at least 10 years.
11 3. The exemption provided by this paragraph for
12 donations is allowed only if the person who purchased the work
13 of art transfers title to the donated work of art to an
14 educational institution. Such transfer of title shall be
15 evidenced by an affidavit meeting requirements established by
16 rule to document entitlement to the exemption. Nothing in this
17 paragraph shall preclude a work of art donated to an
18 educational institution from remaining in the possession of
19 the donor or purchaser, as long as title to the work of art
20 lies with the educational institution.
21 4.3. A work of art is presumed to have been purchased
22 in or imported into this state exclusively for loan as
23 provided in subparagraph 2., if it is so loaned or placed in
24 storage in preparation for such a loan within 90 days after
25 purchase or importation, whichever is later; but a work of art
26 is not deemed to be placed in storage in preparation for loan
27 for purposes of this exemption if it is displayed at any place
28 other than an educational institution.
29 5.4. The exemptions provided by this paragraph are
30 allowed only if the person who purchased the work of art gives
31 to the vendor an affidavit meeting the requirements,
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Florida Senate - 1999 CS for SB 992
314-2149-99
1 established by rule, to document entitlement to the exemption.
2 The person who purchased the work of art shall forward a copy
3 of such affidavit to the Department of Revenue at the time it
4 is issued to the vendor.
5 6.5. The exemption for loans provided by subparagraph
6 2. applies only for the period during which a work of art is
7 in the possession of the educational institution or is in
8 storage before transfer of possession to that institution; and
9 when it ceases to be so possessed or held, tax based upon the
10 sales price paid by the owner is payable, and the statute of
11 limitations provided in s. 95.091 shall begin to run at that
12 time. However, tax shall not become due if the work of art is
13 donated to an educational institution after the loan ceases.
14 7. Any educational institution to which a work of art
15 has been donated pursuant to this paragraph shall make
16 available to the department the title to the work of art and
17 any other relevant information. Any educational institution
18 which has received a work of art on loan pursuant to this
19 paragraph shall make available to the department information
20 relating to the work of art. Any educational institution that
21 transfers from its possession a work of art as defined by this
22 paragraph which has been loaned to it must notify the
23 Department of Revenue within 60 days after the transfer.
24 8.6. For purposes of the exemptions provided by this
25 paragraph, the term "work of art" includes pictorial
26 representations, sculpture, jewelry, antiques, stamp
27 collections and coin collections, and other tangible personal
28 property, the value of which is attributable predominantly to
29 its artistic, historical, political, cultural, or social
30 importance.
31
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Florida Senate - 1999 CS for SB 992
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1 7. This paragraph is a remedial clarification of
2 legislative intent and applies to all taxes that remain open
3 to assessment or contest on July 1, 1992.
4 (ii) Certain electricity or steam uses.--
5 1. Charges for electricity or steam used to operate
6 machinery and equipment at a fixed location in this state when
7 such machinery and equipment is used to manufacture, process,
8 compound, produce, or prepare for shipment items of tangible
9 personal property for sale, or to operate pollution control
10 equipment, recycling equipment, maintenance equipment, or
11 monitoring or control equipment used in such operations are
12 exempt to the extent provided in this paragraph. In order to
13 qualify for this exemption, 75 percent or more of the
14 electricity used at the fixed location must be used to operate
15 qualifying machinery or equipment. If less than 75 percent but
16 50 percent or more of the electricity is used at a fixed
17 location to operate qualifying machinery or equipment, then it
18 is presumed that 50 percent of the charge for electricity is
19 for nonexempt purposes.
20 2. This exemption applies only to industries
21 classified under SIC Industry Major Group Numbers 10, 12, 13,
22 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,
23 35, 36, 37, 38, and 39 and Industry Group Number 212. As used
24 in this paragraph, "SIC" means those classifications contained
25 in the Standard Industrial Classification Manual, 1987, as
26 published by the Office of Management and Budget, Executive
27 Office of the President.
28 3. Possession by a seller of a written certification
29 by the purchaser, certifying the purchaser's entitlement to an
30 exemption permitted by this subsection, relieves the seller
31 from the responsibility of collecting the tax on the
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Florida Senate - 1999 CS for SB 992
314-2149-99
1 nontaxable amounts, and the department shall look solely to
2 the purchaser for recovery of such tax if it determines that
3 the purchaser was not entitled to the exemption.
4 4. Such exemption shall be applied as follows:
5 a. Beginning July 1, 1996, 20 percent of the charges
6 for such electricity shall be exempt.
7 b. Beginning July 1, 1997, 40 percent of the charges
8 for such electricity shall be exempt.
9 c. Beginning July 1, 1998, 60 percent of the charges
10 for such electricity or steam shall be exempt.
11 d. Beginning July 1, 1999, 80 percent of the charges
12 for such electricity or steam shall be exempt.
13 e. Beginning July 1, 2000, 100 percent of the charges
14 for such electricity or steam shall be exempt.
15 5. Notwithstanding any other provision in this
16 paragraph to the contrary, in order to receive the exemption
17 provided in this paragraph a taxpayer must first register with
18 the WAGES Program Business Registry established by the local
19 WAGES coalition for the area in which the taxpayer is located.
20 Such registration establishes a commitment on the part of the
21 taxpayer to hire WAGES program participants to the maximum
22 extent possible consistent with the nature of their business.
23 6.a. In order to determine whether the exemption
24 provided in this paragraph from the tax on charges for
25 electricity or steam has an effect on retaining or attracting
26 companies to this state, the Office of Program Policy Analysis
27 and Governmental Accountability shall periodically monitor and
28 report on the industries receiving the exemption.
29 b. The first report shall be submitted no later than
30 January 1, 1997, and must be conducted in such a manner as to
31 specifically determine the number of companies within each SIC
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1 Industry Major Group receiving the exemption as of September
2 1, 1996, and the number of individuals employed by companies
3 within each SIC Industry Major Group receiving the exemption
4 as of September 1, 1996.
5 c. The second report shall be submitted no later than
6 January 1, 2001, and must be comprehensive in scope, but, at a
7 minimum, must be conducted in such a manner as to specifically
8 determine the number of companies within each SIC Industry
9 Major Group receiving the exemption as of September 1, 2000,
10 the number of individuals employed by companies within each
11 SIC Industry Major Group receiving the exemption as of
12 September 1, 2000, whether the change, if any, in such number
13 of companies or employees is attributable to the exemption
14 provided in this paragraph, whether it would be sound public
15 policy to continue or discontinue the exemption, and the
16 consequences of doing so.
17 d. Both reports shall be submitted to the President of
18 the Senate, the Speaker of the House of Representatives, the
19 Senate Minority Leader, and the House Minority Leader.
20 (zz) Certain repair and labor charges.--
21 1. Subject to the provisions of subparagraphs 2. and
22 3., there is exempt from the tax imposed by this chapter all
23 labor charges for the repair of, and parts and materials used
24 in the repair of and incorporated into, industrial machinery
25 and equipment which is used for the manufacture, processing,
26 compounding, or production of items of tangible personal
27 property at a fixed location within this state.
28 2. This exemption applies only to industries
29 classified under SIC Industry Major Group Numbers 10, 12, 13,
30 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,
31 36, 37, 38, and 39 and Industry Group Number 212. As used in
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Florida Senate - 1999 CS for SB 992
314-2149-99
1 this subparagraph, "SIC" means those classifications contained
2 in the Standard Industrial Classification Manual, 1987, as
3 published by the Office of Management and Budget, Executive
4 Office of the President.
5 3. This exemption shall be applied as follows:
6 a. Beginning July 1, 1999, 25 percent of such charges
7 for repair parts and labor shall be exempt.
8 b. Beginning July 1, 2000, 50 percent of such charges
9 for repair parts and labor shall be exempt.
10 c. Beginning July 1, 2001, 75 percent of such charges
11 for repair parts and labor shall be exempt.
12 d. Beginning July 1, 2002, 100 percent of such charges
13 for repair parts and labor shall be exempt.
14
15 Exemptions provided to any entity by this subsection shall not
16 inure to any transaction otherwise taxable under this chapter
17 when payment is made by a representative or employee of such
18 entity by any means, including, but not limited to, cash,
19 check, or credit card even when that representative or
20 employee is subsequently reimbursed by such entity.
21 Section 2. This act shall take effect July 1, 1999.
22
23 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
24 SB 992
25
26 The committee substitute makes the following changes to SB
992:
27
Adds to the exemption on the sales tax for electricity and
28 steam used to operate machinery and equipment pursuant to s.
212.08(7)(ii), F.S., the cigar manufacturing industry.
29
Provides a sales tax exemption for donations of works of art
30 to an educational institution where the title to the work of
art is transferred to the educational institution.
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