House Bill 2435
CODING: Words stricken are deletions; words underlined are additions.
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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CODING: Words stricken are deletions; words underlined are additions.
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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