House Bill 1105

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    Florida House of Representatives - 2000                HB 1105

        By Representative Putnam






  1                      A bill to be entitled

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

  3         transactions; amending s. 212.02, F.S.;

  4         defining "agricultural production"; amending s.

  5         212.08, F.S.; revising application of the

  6         partial exemption for self-propelled,

  7         power-drawn, or power-driven farm equipment

  8         used exclusively on a farm or in a forest in

  9         specified activities and including rental or

10         lease of such equipment in such exemption;

11         reducing the rate of tax on such equipment over

12         a specified period and exempting such equipment

13         beginning January 1, 2003; requiring that the

14         purchaser, renter, or lessee sign a certificate

15         regarding the use of such equipment; specifying

16         effect of possession of such certificate by a

17         seller or other dealer; amending s. 212.12,

18         F.S., relating to promulgation of tax brackets

19         by the Department of Revenue, to conform;

20         providing an effective date.

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

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24         Section 1.  Subsection (34) is added to section 212.02,

25  Florida Statutes, to read:

26         212.02  Definitions.--The following terms and phrases

27  when used in this chapter have the meanings ascribed to them

28  in this section, except where the context clearly indicates a

29  different meaning:

30         (34)  "Agricultural production" means the production of

31  plants and animals useful to humans, including the

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    Florida House of Representatives - 2000                HB 1105

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  1  preparation, planting, cultivating, or harvesting of these

  2  products or any other practices necessary to accomplish

  3  production through the harvest phase, and includes

  4  aquaculture, horticulture, floriculture, viticulture,

  5  forestry, dairy, livestock, poultry, bees, and any and all

  6  forms of farm products and farm production.

  7         Section 2.  Subsection (3) of section 212.08, Florida

  8  Statutes, is amended to read:

  9         212.08  Sales, rental, use, consumption, distribution,

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

11  the rental, the use, the consumption, the distribution, and

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

13  following are hereby specifically exempt from the tax imposed

14  by this chapter.

15         (3)  EXEMPTIONS, PARTIAL; CERTAIN FARM

16  EQUIPMENT.--Until December 31, 2000, there shall be taxable at

17  the rate of 3 percent the sale, rental, lease, use,

18  consumption, or storage for use in this state of

19  self-propelled, power-drawn, or power-driven farm equipment

20  used exclusively on a farm or in a forest in the agricultural

21  production of plowing, planting, cultivating, or harvesting

22  crops or products as produced by those agricultural industries

23  included in s. 570.02(1), or for fire prevention and

24  suppression work with respect to such crops or products.

25  Harvesting may not be construed to include processing

26  activities. This exemption is not forfeited by moving farm

27  equipment between farms or forests. Beginning January 1, 2001,

28  the tax rate applicable to such equipment shall be 2 percent.

29  Beginning January 1, 2002, the tax rate applicable to such

30  equipment shall be 1 percent. Beginning January 1, 2003, and

31  thereafter, such equipment shall be exempt from the tax

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    Florida House of Representatives - 2000                HB 1105

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  1  imposed by this chapter. However, this exemption shall not be

  2  allowed unless the purchaser, renter, or lessee signs a

  3  certificate stating that the farm equipment is to be used

  4  exclusively on a farm or in a forest for agricultural

  5  production or for fire prevention and suppression, as required

  6  by this subsection. Possession by a seller, lessor, or other

  7  dealer of a written certification by the purchaser, renter, or

  8  lessee certifying the purchaser's, renter's, or lessee's

  9  entitlement to an exemption permitted by this subsection

10  relieves the seller from the responsibility of collecting the

11  tax on the nontaxable amounts, and the department shall look

12  solely to the purchaser for recovery of such tax if it

13  determines that the purchaser was not entitled to the

14  exemption. The rental of self-propelled, power-drawn, or

15  power-driven farm equipment shall be taxed at the rate of 3

16  percent.

17         Section 3.  Subsection (11) of section 212.12, Florida

18  Statutes, is amended to read:

19         212.12  Dealer's credit for collecting tax; penalties

20  for noncompliance; powers of Department of Revenue in dealing

21  with delinquents; brackets applicable to taxable transactions;

22  records required.--

23         (11)  The department is authorized to provide by rule

24  the tax amounts and brackets applicable to all taxable

25  transactions that occur in counties that have a surtax at a

26  rate other than 1 percent which transactions would otherwise

27  have been transactions taxable at the rate of 6 percent.

28  Likewise, the department is authorized to promulgate by rule

29  the tax amounts and brackets applicable to transactions

30  taxable at 3, 2, or 1 percent pursuant to s. 212.08(3),

31  transactions taxable at 7 percent pursuant to s. 212.05(1)(e),

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    Florida House of Representatives - 2000                HB 1105

    584-148-00






  1  and on transactions which would otherwise have been so taxable

  2  in counties which have adopted a discretionary sales surtax.

  3         Section 4.  This act shall take effect January 1, 2001.

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  6                          HOUSE SUMMARY

  7
      Revises application of the partial sales tax exemption
  8    for self-propelled, power-drawn, or power-driven farm
      equipment used exclusively on a farm or in a forest in
  9    specified activities and includes rental or lease of such
      equipment in such exemption. Reduces the rate of tax on
10    such equipment over a specified period and exempts such
      equipment beginning January 1, 2003. Requires that the
11    purchaser, renter, or lessee sign a certificate regarding
      the use of such equipment, and specifies effect of
12    possession of such certificate by a seller or other
      dealer.
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