Senate Bill 0194

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    Florida Senate - 2000                                   SB 194

    By Senator Horne





    6-202-00

  1                      A bill to be entitled

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

  3         other transactions; amending s. 212.031, F.S.;

  4         providing exemptions from the tax on renting,

  5         leasing, letting, or granting a license for the

  6         use of real property; amending s. 212.04, F.S.;

  7         providing exemptions from the tax on

  8         admissions; providing for the due date of the

  9         tax on admissions for events at specified

10         facilities; providing retroactive relief to

11         certain taxpayers; providing an effective date.

12

13         WHEREAS, the promotion of business within the state

14  serves the interests of Florida generally, and

15         WHEREAS, enhanced business activity within the State of

16  Florida results in the generation of greater revenues to the

17  state, and

18         WHEREAS, government has a vested interest in assuring

19  that facilities are able to attract entertainment, the arts,

20  and cultural events for the general public, and

21         WHEREAS, the facilities to which this act applies

22  provide thousands of jobs and countless hours of leisure

23  relaxation to patrons and tourists, NOW, THEREFORE,

24

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

26

27         Section 1.  Paragraph (a) of subsection (1) and

28  subsection (3) of section 212.031, Florida Statutes, are

29  amended, and subsection (10) is added to that section, to

30  read:

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  1         212.031  Lease or rental of or license in real

  2  property.--

  3         (1)(a)  It is declared to be the legislative intent

  4  that every person is exercising a taxable privilege who

  5  engages in the business of renting, leasing, letting, or

  6  granting a license for the use of any real property unless

  7  such property is:

  8         1.  Assessed as agricultural property under s. 193.461.

  9         2.  Used exclusively as dwelling units.

10         3.  Property subject to tax on parking, docking, or

11  storage spaces under s. 212.03(6).

12         4.  Recreational property or the common elements of a

13  condominium when subject to a lease between the developer or

14  owner thereof and the condominium association in its own right

15  or as agent for the owners of individual condominium units or

16  the owners of individual condominium units. However, only the

17  lease payments on such property shall be exempt from the tax

18  imposed by this chapter, and any other use made by the owner

19  or the condominium association shall be fully taxable under

20  this chapter.

21         5.  A public or private street or right-of-way and

22  poles, conduits, fixtures, and similar improvements located on

23  such streets or rights-of-way, occupied or used by a utility

24  or franchised cable television company for utility or

25  communications or television purposes. For purposes of this

26  subparagraph, the term "utility" means any person providing

27  utility services as defined in s. 203.012. This exception also

28  applies to property, excluding buildings, wherever located, on

29  which antennas, cables, adjacent accessory structures, or

30  adjacent accessory equipment used in the provision of

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  1  cellular, enhanced specialized mobile radio, or personal

  2  communications services are placed.

  3         6.  A public street or road which is used for

  4  transportation purposes.

  5         7.  Property used at an airport exclusively for the

  6  purpose of aircraft landing or aircraft taxiing or property

  7  used by an airline for the purpose of loading or unloading

  8  passengers or property onto or from aircraft or for fueling

  9  aircraft.

10         8.a.  Property used at a port authority, as defined in

11  s. 315.02(2), exclusively for the purpose of oceangoing

12  vessels or tugs docking, or such vessels mooring on property

13  used by a port authority for the purpose of loading or

14  unloading passengers or cargo onto or from such a vessel, or

15  property used at a port authority for fueling such vessels, or

16  to the extent that the amount paid for the use of any property

17  at the port is based on the charge for the amount of tonnage

18  actually imported or exported through the port by a tenant.

19         b.  The amount charged for the use of any property at

20  the port in excess of the amount charged for tonnage actually

21  imported or exported shall remain subject to tax except as

22  provided in sub-subparagraph a.

23         9.  Property used as an integral part of the

24  performance of qualified production services.  As used in this

25  subparagraph, the term "qualified production services" means

26  any activity or service performed directly in connection with

27  the production of a qualified motion picture, as defined in s.

28  212.06(1)(b), and includes:

29         a.  Photography, sound and recording, casting, location

30  managing and scouting, shooting, creation of special and

31  optical effects, animation, adaptation (language, media,

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  1  electronic, or otherwise), technological modifications,

  2  computer graphics, set and stage support (such as

  3  electricians, lighting designers and operators, greensmen,

  4  prop managers and assistants, and grips), wardrobe (design,

  5  preparation, and management), hair and makeup (design,

  6  production, and application), performing (such as acting,

  7  dancing, and playing), designing and executing stunts,

  8  coaching, consulting, writing, scoring, composing,

  9  choreographing, script supervising, directing, producing,

10  transmitting dailies, dubbing, mixing, editing, cutting,

11  looping, printing, processing, duplicating, storing, and

12  distributing;

13         b.  The design, planning, engineering, construction,

14  alteration, repair, and maintenance of real or personal

15  property including stages, sets, props, models, paintings, and

16  facilities principally required for the performance of those

17  services listed in sub-subparagraph a.; and

18         c.  Property management services directly related to

19  property used in connection with the services described in

20  sub-subparagraphs a. and b.

21         10.  Leased, subleased, licensed, or rented to a person

22  providing food and drink concessionaire services within the

23  premises of a convention hall, exhibition hall, auditorium,

24  stadium, theater, arena, civic center, performing arts center,

25  recreational facility, or any business operated under a permit

26  issued pursuant to chapter 550.  A person providing retail

27  concessionaire services involving the sale of food and drink

28  or other tangible personal property within the premises of an

29  airport shall be subject to tax on the rental of real property

30  used for that purpose, but shall not be subject to the tax on

31  any license to use the property.  For purposes of this

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  1  subparagraph, the term "sale" shall not include the leasing of

  2  tangible personal property.

  3         11.  Property occupied pursuant to an instrument

  4  calling for payments which the department has declared, in a

  5  Technical Assistance Advisement issued on or before March 15,

  6  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

  7  Florida Administrative Code; provided that this subparagraph

  8  shall only apply to property occupied by the same person

  9  before and after the execution of the subject instrument and

10  only to those payments made pursuant to such instrument,

11  exclusive of renewals and extensions thereof occurring after

12  March 15, 1993.

13         12.  Rented, leased, subleased, or licensed to a

14  concessionaire by a convention hall, exhibition hall,

15  auditorium, stadium, theater, arena, civic center, performing

16  arts center, or recreational facility, during an event at the

17  facility, to be used by the concessionaire to sell souvenirs,

18  novelties, or other event-related products. This subparagraph

19  applies only to that portion of the rental, lease, or license

20  payment which is based on a percentage of sales and not based

21  on a fixed price.

22         (3)  The tax imposed by this section shall be in

23  addition to the total amount of the rental or license fee,

24  shall be charged by the lessor or person receiving the rent or

25  payment in and by a rental or license fee arrangement with the

26  lessee or person paying the rental or license fee, and shall

27  be due and payable at the time of the receipt of such rental

28  or license fee payment by the lessor or other person who

29  receives the rental or payment. Notwithstanding any other

30  provision of this chapter, the tax imposed by this section on

31  the rental, lease, or license for the use of a convention

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  1  hall, exhibition hall, auditorium, stadium, theater, arena,

  2  civic center, performing arts center, or recreational facility

  3  to hold an event of not more than 7 consecutive days' duration

  4  shall be collected at the time of the payment for that rental,

  5  lease, or license but is not due and payable to the department

  6  until the first day of the month following the actual date of

  7  the event for which the payment is made and becomes delinquent

  8  on the 21st day of that month. The owner, lessor, or person

  9  receiving the rent or license fee shall remit the tax to the

10  department at the times and in the manner hereinafter provided

11  for dealers to remit taxes under this chapter.  The same

12  duties imposed by this chapter upon dealers in tangible

13  personal property respecting the collection and remission of

14  the tax; the making of returns; the keeping of books, records,

15  and accounts; and the compliance with the rules and

16  regulations of the department in the administration of this

17  chapter shall apply to and be binding upon all persons who

18  manage any leases or operate real property, hotels, apartment

19  houses, roominghouses, or tourist and trailer camps and all

20  persons who collect or receive rents or license fees taxable

21  under this chapter on behalf of owners or lessors.

22         (10)  Separately stated charges imposed by a convention

23  hall, exhibition hall, auditorium, stadium, theater, arena,

24  civic center, performing arts center, or recreational facility

25  upon a lessee or licensee for food, drink, or services

26  required or available in connection with a lease or license to

27  use real property, including charges for laborers, stagehands,

28  ticket takers, event staff, security personnel, cleaning

29  staff, and other event-related personnel, advertising, and

30  credit card processing are exempt from the tax imposed by this

31  section.

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  1         Section 2.  Paragraph (b) of subsection (1), paragraph

  2  (a) of subsection (2), and subsection (3) or section 212.04,

  3  Florida Statutes, are amended to read:

  4         212.04  Admissions tax; rate, procedure, enforcement.--

  5         (1)

  6         (b)  For the exercise of such privilege, a tax is

  7  levied at the rate of 6 percent of sales price, or the actual

  8  value received from such admissions, which 6 percent shall be

  9  added to and collected with all such admissions from the

10  purchaser thereof, and such tax shall be paid for the exercise

11  of the privilege as defined in the preceding paragraph.  Each

12  ticket must show on its face the actual sales price of the

13  admission, or each dealer selling the admission must

14  prominently display at the box office or other place where the

15  admission charge is made a notice disclosing the price of the

16  admission, and the tax shall be computed and collected on the

17  basis of the actual price of the admission charged by the

18  dealer.  The sale price or actual value of admission shall,

19  for the purpose of this chapter, be that price remaining after

20  deduction of federal taxes and state or locally imposed or

21  authorized seat surcharges, taxes, or fees, if any, imposed

22  upon such admission. The sale price or actual value does not

23  include separately stated ticket-service charges that are

24  imposed by a facility ticket office or a ticketing service and

25  added to a separately stated, established ticket price., and

26  The rate of tax on each admission shall be according to the

27  brackets established by s. 212.12(9).

28         (2)(a)1.  No tax shall be levied on admissions to

29  athletic or other events sponsored by elementary schools,

30  junior high schools, middle schools, high schools, community

31  colleges, public or private colleges and universities, deaf

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  1  and blind schools, facilities of the youth services programs

  2  of the Department of Children and Family Services, and state

  3  correctional institutions when only student, faculty, or

  4  inmate talent is used. However, this exemption shall not apply

  5  to admission to athletic events sponsored by an institution

  6  within the State University System, and the proceeds of the

  7  tax collected on such admissions shall be retained and used by

  8  each institution to support women's athletics as provided in

  9  s. 240.533(3)(c).

10         2.a.  No tax shall be levied on dues, membership fees,

11  and admission charges imposed by not-for-profit sponsoring

12  organizations. To receive this exemption, the sponsoring

13  organization must qualify as a not-for-profit entity under the

14  provisions of s. 501(c)(3) of the Internal Revenue Code of

15  1954, as amended.

16         b.  No tax imposed by this section and not actually

17  collected before August 1, 1992, shall be due from any museum

18  or historic building owned by any political subdivision of the

19  state.

20         c.  A tax may not be levied on admission charges to an

21  event sponsored by a government-owned convention hall,

22  exhibition hall, auditorium, stadium, theater, arena, civic

23  center, performing arts center, or recreational facility when

24  100 percent of the risk of success or failure lies with the

25  governmental entity sponsoring the event and 100 percent of

26  the funds at risk for the event belong to the facility and

27  student or faculty talent is not exclusively used.

28         3.  No tax shall be levied on an admission paid by a

29  student, or on the student's behalf, to any required place of

30  sport or recreation if the student's participation in the

31  sport or recreational activity is required as a part of a

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  1  program or activity sponsored by, and under the jurisdiction

  2  of, the student's educational institution, provided his or her

  3  attendance is as a participant and not as a spectator.

  4         4.  No tax shall be levied on admissions to the

  5  National Football League championship game, on admissions to

  6  any semifinal game or championship game of a national

  7  collegiate tournament, or on admissions to a Major League

  8  Baseball all-star game.

  9         5.  A participation fee or sponsorship fee imposed by a

10  governmental entity as described in s. 212.08(6) for an

11  athletic or recreational program is exempt when the

12  governmental entity by itself, or in conjunction with an

13  organization exempt under s. 501(c)(3) of the Internal Revenue

14  Code of 1954, as amended, sponsors, administers, plans,

15  supervises, directs, and controls the athletic or recreational

16  program.

17         6.  Also exempt from the tax imposed by this section to

18  the extent provided in this subparagraph are admissions to

19  live theater, live opera, or live ballet productions in this

20  state which are sponsored by an organization that has received

21  a determination from the Internal Revenue Service that the

22  organization is exempt from federal income tax under s.

23  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

24  the organization actively participates in planning and

25  conducting the event, is responsible for the safety and

26  success of the event, is organized for the purpose of

27  sponsoring live theater, live opera, or live ballet

28  productions in this state, has more than 10,000 subscribing

29  members and has among the stated purposes in its charter the

30  promotion of arts education in the communities which it

31  serves, and will receive at least 20 percent of the net

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  1  profits, if any, of the events which the organization sponsors

  2  and will bear the risk of at least 20 percent of the losses,

  3  if any, from the events which it sponsors if the organization

  4  employs other persons as agents to provide services in

  5  connection with a sponsored event. Prior to March 1 of each

  6  year, such organization may apply to the department for a

  7  certificate of exemption for admissions to such events

  8  sponsored in this state by the organization during the

  9  immediately following state fiscal year. The application shall

10  state the total dollar amount of admissions receipts collected

11  by the organization or its agents from such events in this

12  state sponsored by the organization or its agents in the year

13  immediately preceding the year in which the organization

14  applies for the exemption. Such organization shall receive the

15  exemption only to the extent of $1.5 million multiplied by the

16  ratio that such receipts bear to the total of such receipts of

17  all organizations applying for the exemption in such year;

18  however, in no event shall such exemption granted to any

19  organization exceed 6 percent of such admissions receipts

20  collected by the organization or its agents in the year

21  immediately preceding the year in which the organization

22  applies for the exemption. Each organization receiving the

23  exemption shall report each month to the department the total

24  admissions receipts collected from such events sponsored by

25  the organization during the preceding month and shall remit to

26  the department an amount equal to 6 percent of such receipts

27  reduced by any amount remaining under the exemption. Tickets

28  for such events sold by such organizations shall not reflect

29  the tax otherwise imposed under this section.

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  1         7.  Also exempt from the tax imposed by this section

  2  are entry fees for participation in freshwater fishing

  3  tournaments.

  4         8.  Also exempt from the tax imposed by this section

  5  are participation or entry fees charged to participants in a

  6  game, race, or other sport or recreational event if spectators

  7  are charged a taxable admission to such event.

  8         9.  No tax shall be levied on admissions to any

  9  postseason collegiate football game sanctioned by the National

10  Collegiate Athletic Association.

11         (3)  Such taxes shall be paid and remitted at the same

12  time and in the same manner as provided for remitting taxes on

13  sales of tangible personal property, as hereinafter provided.

14  Notwithstanding any other provision of this chapter, the tax

15  on admission to an event at a convention hall, exhibition

16  hall, auditorium, stadium, theater, arena, civic center,

17  performing arts center, or recreational facility shall be

18  collected at the time of payment for the admission but is not

19  due to the department until the first day of the month

20  following the actual date of the event for which the admission

21  is sold and becomes delinquent on the 21st day of that month.

22         Section 3.  Any tax imposed under chapter 212, Florida

23  Statutes, on the transactions exempted under this act and not

24  actually paid or collected by a taxpayer before July 1, 2000,

25  is not due from the taxpayer. However, any tax actually

26  collected must be remitted to the Department of Revenue, and

27  no refund is due.

28         Section 4.  This act shall take effect July 1, 2000.

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  2                          SENATE SUMMARY

  3    Relates to the tax on sales, use, and other transactions.
      Provides exemptions from the tax on renting, leasing,
  4    letting, or granting a license for the use of real
      property. Provides exemptions from the tax on admissions.
  5    Provides the due date of the tax on admissions for events
      at specified facilities. Provides retroactive relief to
  6    certain taxpayers.

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