House Bill 0265

    Florida House of Representatives - 2000                 HB 265

        By Representative Wallace






  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         excluding certain pass-through charges on

  5         commercial real property leases from such tax;

  6         providing an effective date.

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

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10         Section 1.  Paragraph (c) of subsection (1) of section

11  212.031, Florida Statutes, is amended to read:

12         212.031  Lease or rental of or license in real

13  property.--

14         (1)

15         (c)  For the exercise of such privilege, a as tax is

16  levied in an amount equal to 6 percent of and on the total

17  rent or license fee charged for such real property by the

18  person charging or collecting the rental or license fee. The

19  total rent or license fee charged for such real property shall

20  include payments for the granting of a privilege to use or

21  occupy real property for any purpose and shall include base

22  rent, percentage rents, or similar charges. Such charges shall

23  be included in the total rent or license fee subject to tax

24  under this section whether or not they can be attributed to

25  the ability of the lessor's or licensor's property as used or

26  operated to attract customers. For purposes of this paragraph,

27  the term "total rent or license fee" does not include ad

28  valorem taxes, maintenance charges, or insurance premiums paid

29  for the benefit and protection of the landlord when the

30  proportionate share of each of those items is separately

31  billed on an invoice by the landlord as pass-through charges.

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






    Florida House of Representatives - 2000                 HB 265

    567-159A-00






  1  Payments for intrinsically valuable personal property such as

  2  franchises, trademarks, service marks, logos, or patents are

  3  not subject to tax under this section.  In the case of a

  4  contractual arrangement that provides for both payments

  5  taxable as total rent or license fee and payments not subject

  6  to tax, the tax shall be based on a reasonable allocation of

  7  such payments and shall not apply to that portion which is for

  8  the nontaxable payments.

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

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12                          HOUSE SUMMARY

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      Provides that the total rent or license fee for a
14    commercial real property lease subject to the sales tax
      does not include pass-through charges comprised of a
15    proportionate share of ad valorem taxes, maintenance
      charges, and certain insurance premiums.
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