House Bill 0349

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    Florida House of Representatives - 2000                 HB 349

        By Representative Johnson






  1                      A bill to be entitled

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

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

  4         relating to the tax on the lease or rental of

  5         or license in real property; providing an

  6         exemption for property rented, leased,

  7         subleased, or licensed by certain facilities to

  8         a concessionaire selling event-related products

  9         during an event at the facility; specifying

10         when the tax on the rental, lease, or license

11         to use certain facilities for certain events

12         shall be collected and when it is due to the

13         Department of Revenue; providing that

14         separately stated charges by certain facilities

15         for certain food, drink, or services in

16         connection with use of their property are

17         exempt from said tax; amending s. 212.04, F.S.,

18         relating to the tax on admissions; providing

19         that the value of an admission does not include

20         state or local seat surcharges, taxes, or fees,

21         or certain ticket service charges under certain

22         conditions; providing an exemption for

23         admission charges to events sponsored by

24         governmental entities, sports authorities, or

25         sports commissions under certain conditions;

26         specifying when the tax on admissions to events

27         at certain facilities shall be collected and

28         when it is due to the department; providing

29         that no tax imposed on the transactions

30         exempted by the act and not actually paid or

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  1         collected prior to the effective date of the

  2         act shall be due; providing an effective date.

  3

  4         WHEREAS, the promotion of business within the state

  5  serves the interests of Florida generally, and

  6         WHEREAS, enhanced business activity within the State of

  7  Florida results in the generation of greater revenues to the

  8  state, and

  9         WHEREAS, government has a vested interest in assuring

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

11  and cultural events for the general public, and

12         WHEREAS, the facilities to which this act applies

13  provide thousands of jobs and countless hours of leisure

14  relaxation to patrons and tourists, NOW, THEREFORE,

15

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

17

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

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

20  amended, and subsection (10) is added to said section, to

21  read:

22         212.031  Lease or rental of or license in real

23  property.--

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

25  that every person is exercising a taxable privilege who

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

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

28  such property is:

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

30         2.  Used exclusively as dwelling units.

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

  2  storage spaces under s. 212.03(6).

  3         4.  Recreational property or the common elements of a

  4  condominium when subject to a lease between the developer or

  5  owner thereof and the condominium association in its own right

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

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

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

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

10  or the condominium association shall be fully taxable under

11  this chapter.

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

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

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

15  or franchised cable television company for utility or

16  communications or television purposes. For purposes of this

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

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

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

20  which antennas, cables, adjacent accessory structures, or

21  adjacent accessory equipment used in the provision of

22  cellular, enhanced specialized mobile radio, or personal

23  communications services are placed.

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

25  transportation purposes.

26         7.  Property used at an airport exclusively for the

27  purpose of aircraft landing or aircraft taxiing or property

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

29  passengers or property onto or from aircraft or for fueling

30  aircraft.

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

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

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

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

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

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

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

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

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

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

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

12  imported or exported shall remain subject to tax except as

13  provided in sub-subparagraph a.

14         9.  Property used as an integral part of the

15  performance of qualified production services.  As used in this

16  subparagraph, the term "qualified production services" means

17  any activity or service performed directly in connection with

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

19  212.06(1)(b), and includes:

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

21  managing and scouting, shooting, creation of special and

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

23  electronic, or otherwise), technological modifications,

24  computer graphics, set and stage support (such as

25  electricians, lighting designers and operators, greensmen,

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

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

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

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

30  coaching, consulting, writing, scoring, composing,

31  choreographing, script supervising, directing, producing,

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  1  transmitting dailies, dubbing, mixing, editing, cutting,

  2  looping, printing, processing, duplicating, storing, and

  3  distributing;

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

  5  alteration, repair, and maintenance of real or personal

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

  7  facilities principally required for the performance of those

  8  services listed in sub-subparagraph a.; and

  9         c.  Property management services directly related to

10  property used in connection with the services described in

11  sub-subparagraphs a. and b.

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

13  providing food and drink concessionaire services within the

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

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

16  recreational facility, or any business operated under a permit

17  issued pursuant to chapter 550.  A person providing retail

18  concessionaire services involving the sale of food and drink

19  or other tangible personal property within the premises of an

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

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

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

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

24  tangible personal property.

25         11.  Property occupied pursuant to an instrument

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

27  Technical Assistance Advisement issued on or before March 15,

28  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

29  Florida Administrative Code; provided that this subparagraph

30  shall only apply to property occupied by the same person

31  before and after the execution of the subject instrument and

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  1  only to those payments made pursuant to such instrument,

  2  exclusive of renewals and extensions thereof occurring after

  3  March 15, 1993.

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

  5  concessionaire by a convention hall, exhibition hall,

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

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

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

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

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

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

12  on a fixed price.

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

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

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

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

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

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

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

20  receives the rental or payment. Notwithstanding any other

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

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

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

24  civic center, performing arts center, or recreational facility

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

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

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

28  until the first day of the month following the last day that

29  the event for which the payment is made is actually held, and

30  becomes delinquent on the 21st day of that month. The owner,

31  lessor, or person receiving the rent or license fee shall

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  1  remit the tax to the department at the times and in the manner

  2  hereinafter provided for dealers to remit taxes under this

  3  chapter.  The same duties imposed by this chapter upon dealers

  4  in tangible personal property respecting the collection and

  5  remission of the tax; the making of returns; the keeping of

  6  books, records, and accounts; and the compliance with the

  7  rules and regulations of the department in the administration

  8  of this chapter shall apply to and be binding upon all persons

  9  who manage any leases or operate real property, hotels,

10  apartment houses, roominghouses, or tourist and trailer camps

11  and all persons who collect or receive rents or license fees

12  taxable under this chapter on behalf of owners or lessors.

13         (10)  Separately stated charges imposed by a convention

14  hall, exhibition hall, auditorium, stadium, theater, arena,

15  civic center, performing arts center, or recreational facility

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

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

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

19  ticket takers, event staff, security personnel, cleaning

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

21  credit card processing, are exempt from the tax imposed by

22  this section.

23         (2)  No tax imposed by chapter 212, Florida Statutes,

24  on the transactions exempted under this section, and not

25  actually paid or collected by a taxpayer before the effective

26  date of this act, shall be due from such taxpayer. However,

27  any tax actually collected shall be remitted to the Department

28  of Revenue, and no refund shall be due.

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

30  paragraph (a) of subsection (2), and subsection (3) of section

31  212.04, Florida Statutes, are amended to read:

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  1         212.04  Admissions tax; rate, procedure, enforcement.--

  2         (1)

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

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

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

  6  added to and collected with all such admissions from the

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

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

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

10  admission, or each dealer selling the admission must

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

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

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

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

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

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

17  deduction of federal taxes and state or locally imposed or

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

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

20  include separately stated ticket service charges that are

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

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

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

24  brackets established by s. 212.12(9).

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

26  athletic or other events sponsored by elementary schools,

27  junior high schools, middle schools, high schools, community

28  colleges, public or private colleges and universities, deaf

29  and blind schools, facilities of the youth services programs

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

31  correctional institutions when only student, faculty, or

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

  2  to admission to athletic events sponsored by an institution

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

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

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

  6  s. 240.533(3)(c).

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

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

  9  organizations. To receive this exemption, the sponsoring

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

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

12  1954, as amended.

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

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

15  or historic building owned by any political subdivision of the

16  state.

17         c.  No tax shall be levied on admission charges to an

18  event sponsored by a governmental entity, sports authority, or

19  sports commission when held in a convention hall, exhibition

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

21  performing arts center, or recreational facility and when 100

22  percent of the risk of success or failure lies with the

23  sponsor of the event and 100 percent of the funds at risk for

24  the event belong to the sponsor, and student or faculty talent

25  is not exclusively used.

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

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

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

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

30  program or activity sponsored by, and under the jurisdiction

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

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

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

  4  National Football League championship game, on admissions to

  5  any semifinal game or championship game of a national

  6  collegiate tournament, or on admissions to a Major League

  7  Baseball all-star game.

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

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

10  athletic or recreational program is exempt when the

11  governmental entity by itself, or in conjunction with an

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

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

14  supervises, directs, and controls the athletic or recreational

15  program.

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

17  the extent provided in this subparagraph are admissions to

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

19  state which are sponsored by an organization that has received

20  a determination from the Internal Revenue Service that the

21  organization is exempt from federal income tax under s.

22  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

23  the organization actively participates in planning and

24  conducting the event, is responsible for the safety and

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

26  sponsoring live theater, live opera, or live ballet

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

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

29  promotion of arts education in the communities which it

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

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

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

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

  3  employs other persons as agents to provide services in

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

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

  6  certificate of exemption for admissions to such events

  7  sponsored in this state by the organization during the

  8  immediately following state fiscal year. The application shall

  9  state the total dollar amount of admissions receipts collected

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

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

12  immediately preceding the year in which the organization

13  applies for the exemption. Such organization shall receive the

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

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

16  all organizations applying for the exemption in such year;

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

18  organization exceed 6 percent of such admissions receipts

19  collected by the organization or its agents in the year

20  immediately preceding the year in which the organization

21  applies for the exemption. Each organization receiving the

22  exemption shall report each month to the department the total

23  admissions receipts collected from such events sponsored by

24  the organization during the preceding month and shall remit to

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

26  reduced by any amount remaining under the exemption. Tickets

27  for such events sold by such organizations shall not reflect

28  the tax otherwise imposed under this section.

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

30  are entry fees for participation in freshwater fishing

31  tournaments.

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

  2  are participation or entry fees charged to participants in a

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

  4  are charged a taxable admission to such event.

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

  6  postseason collegiate football game sanctioned by the National

  7  Collegiate Athletic Association.

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

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

10  sales of tangible personal property, as hereinafter provided.

11  Notwithstanding any other provision of this chapter, the tax

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

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

14  performing arts center, or recreational facility shall be

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

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

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

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

19         (2)  No tax imposed by chapter 212, Florida Statutes,

20  on the transactions exempted under this section, and not

21  actually paid or collected by a taxpayer before the effective

22  date of this act, shall be due from such taxpayer. However,

23  any tax actually collected shall be remitted to the Department

24  of Revenue, and no refund shall be due.

25         Section 3.  This act shall take effect July 1, 2000.

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  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Revises provisions relating to the tax on the lease or
  4    rental of or license in real property. Provides an
      exemption for property rented, leased, subleased, or
  5    licensed by a convention hall, auditorium, stadium,
      exhibition hall, recreational facility, theater, arena,
  6    civic center, or performing arts center to a
      concessionaire selling event-related products during an
  7    event at the facility. Specifies when the tax on the
      rental, lease, or license to use such facilities for
  8    certain events shall be collected and when it is due to
      the Department of Revenue. Provides that separately
  9    stated charges by such facilities for food, drink, or
      services in connection with a lease or license to use
10    their property are exempt from said tax.

11
      Revises provisions relating to the tax on admissions.
12    Provides that the value of an admission does not include
      state or local seat surcharges, taxes, or fees, or
13    certain ticket service charges under certain conditions.
      Provides an exemption for admission charges to events
14    sponsored by a governmental entity, sports authority, or
      sports commission and held in such facilities, under
15    certain conditions. Specifies when the tax on admissions
      to events at such facilities shall be collected and when
16    it is due to the department.

17
      Provides that no tax imposed on the transactions exempted
18    by the act and not actually paid or collected prior to
      the effective date of the act shall be due.
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