House Bill 1105er

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    2000 Legislature                   CS/HB 1105, First Engrossed



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  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;

12         requiring that the purchaser, renter, or lessee

13         sign a certificate regarding the use of such

14         equipment; specifying effect of possession of

15         such certificate by a seller or other dealer;

16         amending s. 212.12, F.S., relating to

17         promulgation of tax brackets by the Department

18         of Revenue, to conform; amending s. 212.06,

19         F.S.; revising the application of provisions

20         which exempt from use tax a person who secures

21         rock, fill dirt, or similar materials from a

22         location he or she owns for use on his or her

23         own property, to include corporations and

24         affiliated groups; providing effective dates.

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

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

29  Florida Statutes, to read:

30         212.02  Definitions.--The following terms and phrases

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


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

  2  different meaning:

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

  4  plants and animals useful to humans, including the

  5  preparation, planting, cultivating, or harvesting of these

  6  products or any other practices necessary to accomplish

  7  production through the harvest phase, and includes

  8  aquaculture, horticulture, floriculture, viticulture,

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

10  forms of farm products and farm production.

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

12  Statutes, is amended to read:

13         212.08  Sales, rental, use, consumption, distribution,

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

15  the rental, the use, the consumption, the distribution, and

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

17  following are hereby specifically exempt from the tax imposed

18  by this chapter.

19         (3)  EXEMPTIONS, PARTIAL; CERTAIN FARM

20  EQUIPMENT.--There shall be taxable at the rate of 2.5 3

21  percent the sale, rental, lease, use, consumption, or storage

22  for use in this state of self-propelled, power-drawn, or

23  power-driven farm equipment used exclusively on a farm or in a

24  forest in the agricultural production of plowing, planting,

25  cultivating, or harvesting crops or products as produced by

26  those agricultural industries included in s. 570.02(1), or for

27  fire prevention and suppression work with respect to such

28  crops or products. Harvesting may not be construed to include

29  processing activities. This exemption is not forfeited by

30  moving farm equipment between farms or forests. However, this

31  exemption shall not be allowed unless the purchaser, renter,


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  1  or lessee signs a certificate stating that the farm equipment

  2  is to be used exclusively on a farm or in a forest for

  3  agricultural production or for fire prevention and

  4  suppression, as required by this subsection. Possession by a

  5  seller, lessor, or other dealer of a written certification by

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

  7  renter's, or lessee's entitlement to an exemption permitted by

  8  this subsection relieves the seller from the responsibility of

  9  collecting the tax on the nontaxable amounts, and the

10  department shall look solely to the purchaser for recovery of

11  such tax if it determines that the purchaser was not entitled

12  to the exemption. The rental of self-propelled, power-drawn,

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

14  percent.

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

16  Statutes, is amended to read:

17         212.12  Dealer's credit for collecting tax; penalties

18  for noncompliance; powers of Department of Revenue in dealing

19  with delinquents; brackets applicable to taxable transactions;

20  records required.--

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

22  the tax amounts and brackets applicable to all taxable

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

24  rate other than 1 percent which transactions would otherwise

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

26  Likewise, the department is authorized to promulgate by rule

27  the tax amounts and brackets applicable to transactions

28  taxable at 2.5 or 3 percent pursuant to s. 212.08(3),

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

30  and on transactions which would otherwise have been so taxable

31  in counties which have adopted a discretionary sales surtax.


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    2000 Legislature                   CS/HB 1105, First Engrossed



  1         Section 4.  Effective July 1, 2000, paragraph (a) of

  2  subsection (15) of section 212.06, Florida Statutes, is

  3  amended to read:

  4         212.06  Sales, storage, use tax; collectible from

  5  dealers; "dealer" defined; dealers to collect from purchasers;

  6  legislative intent as to scope of tax.--

  7         (15)(a)  When a contractor secures rock, shell, fill

  8  dirt, or similar materials from a location that he or she owns

  9  or leases and uses such materials to fulfill a real property

10  contract on the property of another person, the contractor is

11  the ultimate consumer of such materials and is liable for use

12  tax thereon. This paragraph does not apply to a person or a

13  corporation or affiliated group as defined by s. 220.03(1)(b)

14  or (e) that who secures such materials from a location that

15  he, or she, or it owns for use on his, or her, or its own

16  property. The basis upon which the contractor shall remit the

17  tax is the fair retail market value determined by establishing

18  either the price he or she would have to pay for it on the

19  open market or the price he or she would regularly charge if

20  he or she sold it to other contractors or users.

21         Section 5.  Except as otherwise provided herein, this

22  act shall take effect January 1, 2001.

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