Senate Bill 0194c1

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    Florida Senate - 2000                            CS for SB 194

    By the Committee on Fiscal Resource and Senators Horne, Cowin,
    Geller, Hargrett, King, Grant and Diaz-Balart




    314-1732-00

  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; including a sports authority or a

  9         sports commission as sponsors of an event;

10         providing a definition; providing for the due

11         date of the tax on admissions for events at

12         specified facilities; specifying that the

13         exemptions are provided to publicly owned

14         facilities; providing retroactive relief to

15         certain taxpayers; providing an effective date.

16

17         WHEREAS, the promotion of business within the state

18  serves the interests of Florida generally, and

19         WHEREAS, enhanced business activity within the State of

20  Florida results in the generation of greater revenues to the

21  state, and

22         WHEREAS, government has a vested interest in assuring

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

24  and cultural events for the general public, and

25         WHEREAS, the facilities to which this act applies

26  provide thousands of jobs and countless hours of leisure

27  relaxation to patrons and tourists, NOW, THEREFORE,

28

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

30

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    Florida Senate - 2000                            CS for SB 194
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  1         Section 1.  Paragraph (a) of subsection (1) and

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

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

  4  read:

  5         212.031  Lease or rental of or license in real

  6  property.--

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

  8  that every person is exercising a taxable privilege who

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

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

11  such property is:

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

13         2.  Used exclusively as dwelling units.

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

15  storage spaces under s. 212.03(6).

16         4.  Recreational property or the common elements of a

17  condominium when subject to a lease between the developer or

18  owner thereof and the condominium association in its own right

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

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

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

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

23  or the condominium association shall be fully taxable under

24  this chapter.

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

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

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

28  or franchised cable television company for utility or

29  communications or television purposes. For purposes of this

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

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

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    Florida Senate - 2000                            CS for SB 194
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  1  applies to property, excluding buildings, wherever located, on

  2  which antennas, cables, adjacent accessory structures, or

  3  adjacent accessory equipment used in the provision of

  4  cellular, enhanced specialized mobile radio, or personal

  5  communications services are placed.

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

  7  transportation purposes.

  8         7.  Property used at an airport exclusively for the

  9  purpose of aircraft landing or aircraft taxiing or property

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

11  passengers or property onto or from aircraft or for fueling

12  aircraft.

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

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

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

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

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

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

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

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

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

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

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

24  imported or exported shall remain subject to tax except as

25  provided in sub-subparagraph a.

26         9.  Property used as an integral part of the

27  performance of qualified production services.  As used in this

28  subparagraph, the term "qualified production services" means

29  any activity or service performed directly in connection with

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

31  212.06(1)(b), and includes:

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    Florida Senate - 2000                            CS for SB 194
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  1         a.  Photography, sound and recording, casting, location

  2  managing and scouting, shooting, creation of special and

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

  4  electronic, or otherwise), technological modifications,

  5  computer graphics, set and stage support (such as

  6  electricians, lighting designers and operators, greensmen,

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

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

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

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

11  coaching, consulting, writing, scoring, composing,

12  choreographing, script supervising, directing, producing,

13  transmitting dailies, dubbing, mixing, editing, cutting,

14  looping, printing, processing, duplicating, storing, and

15  distributing;

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

17  alteration, repair, and maintenance of real or personal

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

19  facilities principally required for the performance of those

20  services listed in sub-subparagraph a.; and

21         c.  Property management services directly related to

22  property used in connection with the services described in

23  sub-subparagraphs a. and b.

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

25  providing food and drink concessionaire services within the

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

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

28  publicly owned recreational facility, or any business operated

29  under a permit issued pursuant to chapter 550.  A person

30  providing retail concessionaire services involving the sale of

31  food and drink or other tangible personal property within the

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    Florida Senate - 2000                            CS for SB 194
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  1  premises of an airport shall be subject to tax on the rental

  2  of real property used for that purpose, but shall not be

  3  subject to the tax on any license to use the property.  For

  4  purposes of this subparagraph, the term "sale" shall not

  5  include the leasing of tangible personal property.

  6         11.  Property occupied pursuant to an instrument

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

  8  Technical Assistance Advisement issued on or before March 15,

  9  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

10  Florida Administrative Code; provided that this subparagraph

11  shall only apply to property occupied by the same person

12  before and after the execution of the subject instrument and

13  only to those payments made pursuant to such instrument,

14  exclusive of renewals and extensions thereof occurring after

15  March 15, 1993.

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

17  concessionaire by a convention hall, exhibition hall,

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

19  arts center, or publicly owned recreational facility, during

20  an event at the facility, to be used by the concessionaire to

21  sell souvenirs, novelties, or other event-related products.

22  This subparagraph applies only to that portion of the rental,

23  lease, or license payment which is based on a percentage of

24  sales and not based on a fixed price.

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

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

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

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

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

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

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

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    Florida Senate - 2000                            CS for SB 194
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  1  receives the rental or payment. Notwithstanding any other

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

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

  4  hall, exhibition hall, auditorium, stadium, theater, arena,

  5  civic center, performing arts center, or publicly owned

  6  recreational facility for not more than 7 consecutive days

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

  8  lease, or license. The tax is not due and payable to the

  9  department until the first day of the month following the

10  actual date of the event for which the payment is made and is

11  actually held, and the tax becomes delinquent on the 21st day

12  of that month. The owner, lessor, or person receiving the rent

13  or license fee shall remit the tax to the department at the

14  times and in the manner hereinafter provided for dealers to

15  remit taxes under this chapter.  The same duties imposed by

16  this chapter upon dealers in tangible personal property

17  respecting the collection and remission of the tax; the making

18  of returns; the keeping of books, records, and accounts; and

19  the compliance with the rules and regulations of the

20  department in the administration of this chapter shall apply

21  to and be binding upon all persons who manage any leases or

22  operate real property, hotels, apartment houses,

23  roominghouses, or tourist and trailer camps and all persons

24  who collect or receive rents or license fees taxable under

25  this chapter on behalf of owners or lessors.

26         (10)  Separately stated charges imposed by a convention

27  hall, exhibition hall, auditorium, stadium, theater, arena,

28  civic center, performing arts center, or publicly owned

29  recreational facility upon a lessee or licensee for food,

30  drink, or services required or available in connection with a

31  lease or license to use real property, including charges for

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    Florida Senate - 2000                            CS for SB 194
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  1  laborers, stagehands, ticket takers, event staff, security

  2  personnel, cleaning staff, and other event-related personnel,

  3  advertising, and credit card processing are exempt from the

  4  tax imposed by this section.

  5         Section 2.  No tax imposed by chapter 212, Florida

  6  Statutes, on the transactions exempted under section 1 of this

  7  act, and not actually paid or collected by a taxpayer before

  8  the effective date of this act, shall be due from such

  9  taxpayer. However, any tax actually collected shall be

10  remitted to the Department of Revenue, and no refund shall be

11  due.

12         Section 3.  Paragraph (b) of subsection (1), paragraph

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

14  Florida Statutes, are amended to read:

15         212.04  Admissions tax; rate, procedure, enforcement.--

16         (1)

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

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

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

20  added to and collected with all such admissions from the

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

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

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

24  admission, or each dealer selling the admission must

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

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

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

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

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

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

31  deduction of federal taxes and state or locally imposed or

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    Florida Senate - 2000                            CS for SB 194
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  1  authorized seat surcharges, taxes, or fees, if any, imposed

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

  3  include separately stated ticket service charges that are

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

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

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

  7  brackets established by s. 212.12(9).

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

  9  athletic or other events sponsored by elementary schools,

10  junior high schools, middle schools, high schools, community

11  colleges, public or private colleges and universities, deaf

12  and blind schools, facilities of the youth services programs

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

14  correctional institutions when only student, faculty, or

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

16  to admission to athletic events sponsored by an institution

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

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

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

20  s. 240.533(3)(c).

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

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

23  organizations. To receive this exemption, the sponsoring

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

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

26  1954, as amended.

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

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

29  or historic building owned by any political subdivision of the

30  state.

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    Florida Senate - 2000                            CS for SB 194
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  1         c.  A tax may not be levied on admission charges to an

  2  event sponsored by a governmental entity, a sports authority,

  3  or a sports commission when held in a convention hall,

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

  5  center, performing arts center, or publicly owned recreational

  6  facility and when 100 percent of the risk of success or

  7  failure lies with the sponsor of the event and 100 percent of

  8  the funds at risk for the event belong to the sponsor, and

  9  student or faculty talent is not exclusively used. As used in

10  this sub-subparagraph, the terms "sports authority" and

11  "sports commission" mean a nonprofit organization that is

12  exempt from federal income tax under s. 501(c)(3) of the

13  Internal Revenue Code and that contracts with a county or

14  municipal government for the purpose of promoting and

15  attracting sports-tourism events to the community with which

16  it contracts.

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

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

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

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

21  program or activity sponsored by, and under the jurisdiction

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

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

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

25  National Football League championship game, on admissions to

26  any semifinal game or championship game of a national

27  collegiate tournament, or on admissions to a Major League

28  Baseball all-star game.

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

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

31  athletic or recreational program is exempt when the

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    Florida Senate - 2000                            CS for SB 194
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  1  governmental entity by itself, or in conjunction with an

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

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

  4  supervises, directs, and controls the athletic or recreational

  5  program.

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

  7  the extent provided in this subparagraph are admissions to

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

  9  state which are sponsored by an organization that has received

10  a determination from the Internal Revenue Service that the

11  organization is exempt from federal income tax under s.

12  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

13  the organization actively participates in planning and

14  conducting the event, is responsible for the safety and

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

16  sponsoring live theater, live opera, or live ballet

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

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

19  promotion of arts education in the communities which it

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

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

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

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

24  employs other persons as agents to provide services in

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

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

27  certificate of exemption for admissions to such events

28  sponsored in this state by the organization during the

29  immediately following state fiscal year. The application shall

30  state the total dollar amount of admissions receipts collected

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

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    Florida Senate - 2000                            CS for SB 194
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  1  state sponsored by the organization or its agents in the year

  2  immediately preceding the year in which the organization

  3  applies for the exemption. Such organization shall receive the

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

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

  6  all organizations applying for the exemption in such year;

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

  8  organization exceed 6 percent of such admissions receipts

  9  collected by the organization or its agents in the year

10  immediately preceding the year in which the organization

11  applies for the exemption. Each organization receiving the

12  exemption shall report each month to the department the total

13  admissions receipts collected from such events sponsored by

14  the organization during the preceding month and shall remit to

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

16  reduced by any amount remaining under the exemption. Tickets

17  for such events sold by such organizations shall not reflect

18  the tax otherwise imposed under this section.

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

20  are entry fees for participation in freshwater fishing

21  tournaments.

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

23  are participation or entry fees charged to participants in a

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

25  are charged a taxable admission to such event.

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

27  postseason collegiate football game sanctioned by the National

28  Collegiate Athletic Association.

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

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

31  sales of tangible personal property, as hereinafter provided.

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    Florida Senate - 2000                            CS for SB 194
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  1  Notwithstanding any other provision of this chapter, the tax

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

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

  4  performing arts center, or publicly owned recreational

  5  facility shall be collected at the time of payment for the

  6  admission but is not due to the department until the first day

  7  of the month following the actual date of the event for which

  8  the admission is sold and becomes delinquent on the 21st day

  9  of that month.

10         Section 4.  No tax imposed under chapter 212, Florida

11  Statutes, on the transactions exempted under section 3 of this

12  act and not actually paid or collected by a taxpayer before

13  the effective date of this act shall be due from the taxpayer.

14  However, any tax actually collected shall be remitted to the

15  Department of Revenue, and no refund shall be due.

16         Section 5.  This act shall take effect July 1, 2000.

17

18          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
19                              SB 194

20

21  The Committee Substitute made the following changes to SB 194:

22  1)    Clarifies that "recreational facilities" mean "publicly
          owned recreational facilities".
23
    2)    Adds to the tax exemption on admission charges to events
24        sponsored by certain government-owned facilities when
          100% of the risk lies with such facility, an event
25        sponsored by a "sports authority" or "sports
          commission". Provides definitions for "sports authority"
26        and "sports commission".

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