CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. CS for SB 1458

    Amendment No.    

                            CHAMBER ACTION
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11  Senator Childers moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 1, line 26,  through

15            page 6, line 12, delete those lines

16

17  insert:

18         Section 2.  Paragraph (b) of subsection (5) and

19  paragraphs (d) and (eee) of subsection (7) of section 212.08,

20  Florida Statutes, are amended to read:

21         212.08  Sales, rental, use, consumption, distribution,

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

23  the rental, the use, the consumption, the distribution, and

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

25  following are hereby specifically exempt from the tax imposed

26  by this chapter.

27         (5)  EXEMPTIONS; ACCOUNT OF USE.--

28         (b)  Machinery and equipment used to increase

29  productive output.--

30         1.  Industrial machinery and equipment purchased for

31  exclusive use by a new business in spaceport activities as

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1458

    Amendment No.    





 1  defined by s. 212.02 or for use in new businesses which

 2  manufacture, process, compound, or produce for sale items of

 3  tangible personal property at fixed locations are exempt from

 4  the tax imposed by this chapter upon an affirmative showing by

 5  the taxpayer to the satisfaction of the department that such

 6  items are used in a new business in this state. Such purchases

 7  must be made prior to the date the business first begins its

 8  productive operations, and delivery of the purchased item must

 9  be made within 12 months of that date.

10         2.a.  Industrial machinery and equipment purchased for

11  exclusive use by an expanding facility which is engaged in

12  spaceport activities as defined by s. 212.02 or for use in

13  expanding manufacturing facilities or plant units which

14  manufacture, process, compound, or produce for sale items of

15  tangible personal property at fixed locations in this state

16  are exempt from any amount of tax imposed by this chapter in

17  excess of $15,000 $50,000 per calendar year upon an

18  affirmative showing by the taxpayer to the satisfaction of the

19  department that such items are used to increase the productive

20  output of such expanded facility or business by not less than

21  10 percent.

22         b.  Notwithstanding any other provision of this

23  section, industrial machinery and equipment purchased for use

24  in expanding printing manufacturing facilities or plant units

25  that manufacture, process, compound, or produce for sale items

26  of tangible personal property at fixed locations in this state

27  are exempt from any amount of tax imposed by this chapter upon

28  an affirmative showing by the taxpayer to the satisfaction of

29  the department that such items are used to increase the

30  productive output of such an expanded business by not less

31  than 10 percent.

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1458

    Amendment No.    





 1         3.a.  To receive an exemption provided by subparagraph

 2  1. or subparagraph 2., a qualifying business entity shall

 3  apply to the department for a temporary tax exemption permit.

 4  The application shall state that a new business exemption or

 5  expanded business exemption is being sought. Upon a tentative

 6  affirmative determination by the department pursuant to

 7  subparagraph 1. or subparagraph 2., the department shall issue

 8  such permit.

 9         b.  The applicant shall be required to maintain all

10  necessary books and records to support the exemption. Upon

11  completion of purchases of qualified machinery and equipment

12  pursuant to subparagraph 1. or subparagraph 2., the temporary

13  tax permit shall be delivered to the department or returned to

14  the department by certified or registered mail.

15         c.  If, in a subsequent audit conducted by the

16  department, it is determined that the machinery and equipment

17  purchased as exempt under subparagraph 1. or subparagraph 2.

18  did not meet the criteria mandated by this paragraph or if

19  commencement of production did not occur, the amount of taxes

20  exempted at the time of purchase shall immediately be due and

21  payable to the department by the business entity, together

22  with the appropriate interest and penalty, computed from the

23  date of purchase, in the manner prescribed by this chapter.

24         d.  In the event a qualifying business entity fails to

25  apply for a temporary exemption permit or if the tentative

26  determination by the department required to obtain a temporary

27  exemption permit is negative, a qualifying business entity

28  shall receive the exemption provided in subparagraph 1. or

29  subparagraph 2. through a refund of previously paid taxes. No

30  refund may be made for such taxes unless the criteria mandated

31  by subparagraph 1. or subparagraph 2. have been met and

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1458

    Amendment No.    





 1  commencement of production has occurred.

 2         4.  The department shall promulgate rules governing

 3  applications for, issuance of, and the form of temporary tax

 4  exemption permits; provisions for recapture of taxes; and the

 5  manner and form of refund applications and may establish

 6  guidelines as to the requisites for an affirmative showing of

 7  increased productive output, commencement of production, and

 8  qualification for exemption.

 9         5.  The exemptions provided in subparagraphs 1. and 2.

10  do not apply to machinery or equipment purchased or used by

11  electric utility companies, communications companies, oil or

12  gas exploration or production operations, publishing firms

13  that do not export at least 50 percent of their finished

14  product out of the state, any firm subject to regulation by

15  the Division of Hotels and Restaurants of the Department of

16  Business and Professional Regulation, or any firm which does

17  not manufacture, process, compound, or produce for sale items

18  of tangible personal property or which does not use such

19  machinery and equipment in spaceport activities as required by

20  this paragraph. The exemptions provided in subparagraphs 1.

21  and 2. shall apply to machinery and equipment purchased for

22  use in phosphate or other solid minerals severance, mining, or

23  processing operations only by way of a prospective credit

24  against taxes due under chapter 211 for taxes paid under this

25  chapter on such machinery and equipment.

26         6.  For the purposes of the exemptions provided in

27  subparagraphs 1. and 2., these terms have the following

28  meanings:

29         a.  "Industrial machinery and equipment" means "section

30  38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the

31  Internal Revenue Code, provided "industrial machinery and

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1458

    Amendment No.    





 1  equipment" shall be construed by regulations adopted by the

 2  Department of Revenue to mean tangible property used as an

 3  integral part of spaceport activities or of the manufacturing,

 4  processing, compounding, or producing for sale of items of

 5  tangible personal property. Such term includes parts and

 6  accessories only to the extent that the exemption thereof is

 7  consistent with the provisions of this paragraph.

 8         b.  "Productive output" means the number of units

 9  actually produced by a single plant or operation in a single

10  continuous 12-month period, irrespective of sales. Increases

11  in productive output shall be measured by the output for 12

12  continuous months immediately following the completion of

13  installation of such machinery or equipment over the output

14  for the 12 continuous months immediately preceding such

15  installation. However, if a different 12-month continuous

16  period of time would more accurately reflect the increase in

17  productive output of machinery and equipment purchased to

18  facilitate an expansion, the increase in productive output may

19  be measured during that 12-month continuous period of time if

20  such time period is mutually agreed upon by the Department of

21  Revenue and the expanding business prior to the commencement

22  of production; provided, however, in no case may such time

23  period begin later than 2 years following the completion of

24  installation of the new machinery and equipment. The units

25  used to measure productive output shall be physically

26  comparable between the two periods, irrespective of sales.

27         7.  Notwithstanding any other provision in this

28  paragraph to the contrary, in order to receive the exemption

29  provided in this paragraph a taxpayer must register with the

30  WAGES Program Business Registry established by the local WAGES

31  coalition for the area in which the taxpayer is located.  Such

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 1458

    Amendment No.    





 1  registration establishes a commitment on the part of the

 2  taxpayer to hire WAGES program participants to the maximum

 3  extent possible consistent with the nature of their business.

 4         (7)  MISCELLANEOUS EXEMPTIONS.--

 5         (d)  Feeds.--Feeds for poultry, ostriches, and

 6  livestock, including racehorses, racing greyhounds, and dairy

 7  cows, are exempt.

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10  ================ T I T L E   A M E N D M E N T ===============

11  And the title is amended as follows:

12         On page 1, line 6, after the semicolon,

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14  insert:

15         providing an exemption for feeds for racing

16         greyhounds;

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