House Bill 2435

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    Florida House of Representatives - 2000                HB 2435

        By Representatives Sobel, Greenstein, Rayson, Stafford,
    Ritchie and Wilson





  1                      A bill to be entitled

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

  3         other transactions; amending s. 212.08, F.S.;

  4         providing criteria that the Department of

  5         Revenue must follow in assessing the sole or

  6         primary function of a nonprofit organization

  7         that raises funds for or makes grants to

  8         organizations holding consumer's certificates

  9         of exemption; providing prerequisites to

10         departmental rejection of an exemption applied

11         for by such an organization under s.

12         212.08(7)(zz), F.S.; providing an effective

13         date.

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

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17         Section 1.  Paragraph (zz) of subsection (7) of section

18  212.08, Florida Statutes, is amended to read:

19         212.08  Sales, rental, use, consumption, distribution,

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

21  the rental, the use, the consumption, the distribution, and

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

23  following are hereby specifically exempt from the tax imposed

24  by this chapter.

25         (7)  MISCELLANEOUS EXEMPTIONS.--

26         (zz)  Nonprofit organizations raising funds for or

27  making grants to organizations holding consumer's certificate

28  of exemption.--Sales or leases to an organization that which

29  holds current exemption from federal income tax pursuant to s.

30  501(c)(3) of the Internal Revenue Code, as amended, the sole

31  or primary function of which is to raise funds for or make

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






    Florida House of Representatives - 2000                HB 2435

    710-118-00






  1  grants to another organization or organizations currently

  2  holding a consumer's certificate of exemption issued by the

  3  department are exempt from the tax imposed by this chapter. In

  4  assessing an organization's sole or primary function for

  5  purposes of this paragraph, the department may not reject the

  6  organization's application for a consumer certificate of sales

  7  tax exemption solely because the applicant expends in excess

  8  of 50 percent of its operating expenditures towards

  9  nonqualified charitable services. If the department intends to

10  reject an application under this paragraph based upon a

11  finding that the applicant has not demonstrated that its sole

12  or primary function is to raise funds or make grants to

13  organizations that hold consumer's certificates of exemption,

14  the department must articulate and inform the applicant of

15  what sole or primary function it has determined the applicant

16  actually performs and must provide to the applicant an

17  opportunity to rebut that finding.

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19  Exemptions provided to any entity by this subsection shall not

20  inure to any transaction otherwise taxable under this chapter

21  when payment is made by a representative or employee of such

22  entity by any means, including, but not limited to, cash,

23  check, or credit card even when that representative or

24  employee is subsequently reimbursed by such entity.

25         Section 2.  This act shall take effect July 1, 2000.

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    Florida House of Representatives - 2000                HB 2435

    710-118-00






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  2                          SENATE SUMMARY

  3    Provides criteria that the Department of Revenue must
      follow in assessing the sole or primary function of an
  4    organization for purposes of granting or denying an
      exemption from the tax on sales, use, or other
  5    transactions to a nonprofit organization that raises
      funds for or makes grants to organizations holding
  6    consumer's certificates of exemption. If the department
      denies the exemption on the grounds that the applicant's
  7    sole or primary function disqualifies it, the department
      must inform the applicant of what sole or primary
  8    function it has determined the applicant performs and
      must allow the applicant an opportunity to rebut the
  9    finding.

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