Senate Bill 0388er

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





    ENROLLED

    2000 Legislature                                 CS for SB 388



  1

  2         An act relating to taxation; amending s.

  3         212.08, F.S.; providing an exemption from the

  4         tax on sales, use, and other transactions for

  5         sales or leases to all organizations exempt

  6         from federal income tax under s. 501(c)(3) of

  7         the Internal Revenue Code; removing specific

  8         exemptions for military museums, homes for the

  9         aged, nursing homes, and hospices, religious,

10         charitable, and scientific institutions, state

11         theater contract organizations, Coast Guard

12         auxiliaries, athletic event sponsors, and the

13         Gasparilla Distance Classic Association, and

14         revising the exemptions for religious

15         organizations, organizations providing special

16         benefits to minors, veterans' organization

17         headquarters, educational institutions, works

18         of art, and citizen support organizations, to

19         conform; amending s. 212.084, F.S.; providing

20         for application of provisions relating to

21         temporary exemption certificates to newly

22         organized organizations exempt under s.

23         501(c)(3); repealing s. 196.195(4), F.S.,

24         relating to proof of nonprofit status;

25         repealing s. 196.196(1)(c), F.S., relating to

26         determining whether property is being used for

27         a charitable, religious, scientific, or

28         literary purpose; amending ss. 212.0821,

29         212.084, 376.3072, 403.715, 414.029, 496.404,

30         and 564.02, F.S.; conforming cross-references;

31         providing an effective date.


                                  1

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



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

  2

  3         Section 1.  Subsection (7) of section 212.08, Florida

  4  Statutes, is amended to read:

  5         212.08  Sales, rental, use, consumption, distribution,

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

  7  the rental, the use, the consumption, the distribution, and

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

  9  following are hereby specifically exempt from the tax imposed

10  by this chapter.

11         (7)  MISCELLANEOUS EXEMPTIONS.--

12         (a)  Artificial commemorative flowers.--Exempt from the

13  tax imposed by this chapter is the sale of artificial

14  commemorative flowers by bona fide nationally chartered

15  veterans' organizations.

16         (b)  Boiler fuels.--When purchased for use as a

17  combustible fuel, purchases of natural gas, residual oil,

18  recycled oil, waste oil, solid waste material, coal, sulfur,

19  wood, wood residues or wood bark used in an industrial

20  manufacturing, processing, compounding, or production process

21  at a fixed location in this state are exempt from the taxes

22  imposed by this chapter; however, such exemption shall not be

23  allowed unless the purchaser signs a certificate stating that

24  the fuel to be exempted is for the exclusive use designated

25  herein. This exemption does not apply to the use of boiler

26  fuels that are not used in manufacturing, processing,

27  compounding, or producing items of tangible personal property

28  for sale, or to the use of boiler fuels used by any firm

29  subject to regulation by the Division of Hotels and

30  Restaurants of the Department of Business and Professional

31  Regulation.


                                  2

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         (c)  Crustacea bait.--Also exempt from the tax imposed

  2  by this chapter is the purchase by commercial fishers of bait

  3  intended solely for use in the entrapment of Callinectes

  4  sapidus and Menippe mercenaria.

  5         (d)  Feeds.--Feeds for poultry, ostriches, and

  6  livestock, including racehorses and dairy cows, are exempt.

  7         (e)  Film rentals.--Film rentals are exempt when an

  8  admission is charged for viewing such film, and license fees

  9  and direct charges for films, videotapes, and transcriptions

10  used by television or radio stations or networks are exempt.

11         (f)  Flags.--Also exempt are sales of the flag of the

12  United States and the official state flag of Florida.

13         (g)  Florida Retired Educators Association and its

14  local chapters.--Also exempt from payment of the tax imposed

15  by this chapter are purchases of office supplies, equipment,

16  and publications made by the Florida Retired Educators

17  Association and its local chapters.

18         (h)  Guide dogs for the blind.--Also exempt are the

19  sale or rental of guide dogs for the blind, commonly referred

20  to as "seeing-eye dogs," and the sale of food or other items

21  for such guide dogs.

22         1.  The department shall issue a consumer's certificate

23  of exemption to any blind person who holds an identification

24  card as provided for in s. 413.091 and who either owns or

25  rents, or contemplates the ownership or rental of, a guide dog

26  for the blind. The consumer's certificate of exemption shall

27  be issued without charge and shall be of such size as to be

28  capable of being carried in a wallet or billfold.

29         2.  The department shall make such rules concerning

30  items exempt from tax under the provisions of this paragraph

31  as may be necessary to provide that any person authorized to


                                  3

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  have a consumer's certificate of exemption need only present

  2  such a certificate at the time of paying for exempt goods and

  3  shall not be required to pay any tax thereon.

  4         (i)  Hospital meals and rooms.--Also exempt from

  5  payment of the tax imposed by this chapter on rentals and

  6  meals are patients and inmates of any hospital or other

  7  physical plant or facility designed and operated primarily for

  8  the care of persons who are ill, aged, infirm, mentally or

  9  physically incapacitated, or otherwise dependent on special

10  care or attention. Residents of a home for the aged are exempt

11  from payment of taxes on meals provided through the facility.

12  A home for the aged is defined as a facility that is licensed

13  or certified in part or in whole under chapter 400 or chapter

14  651, or that is financed by a mortgage loan made or insured by

15  the United States Department of Housing and Urban Development

16  under s. 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4),

17  s. 232, or s. 236 of the National Housing Act, or other such

18  similar facility designed and operated primarily for the care

19  of the aged.

20         (j)  Household fuels.--Also exempt from payment of the

21  tax imposed by this chapter are sales of utilities to

22  residential households or owners of residential models in this

23  state by utility companies who pay the gross receipts tax

24  imposed under s. 203.01, and sales of fuel to residential

25  households or owners of residential models, including oil,

26  kerosene, liquefied petroleum gas, coal, wood, and other fuel

27  products used in the household or residential model for the

28  purposes of heating, cooking, lighting, and refrigeration,

29  regardless of whether such sales of utilities and fuels are

30  separately metered and billed direct to the residents or are

31  metered and billed to the landlord. If any part of the utility


                                  4

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  or fuel is used for a nonexempt purpose, the entire sale is

  2  taxable. The landlord shall provide a separate meter for

  3  nonexempt utility or fuel consumption.  For the purposes of

  4  this paragraph, licensed family day care homes shall also be

  5  exempt.

  6         (k)  Meals provided by certain nonprofit

  7  organizations.--There is exempt from the tax imposed by this

  8  chapter the sale of prepared meals by a nonprofit volunteer

  9  organization to handicapped, elderly, or indigent persons when

10  such meals are delivered as a charitable function by the

11  organization to such persons at their places of residence.

12         (l)  Military museums.--Also exempt are sales to

13  nonprofit corporations which hold current exemptions from

14  federal corporate income tax pursuant to s. 501(c)(3),

15  Internal Revenue Code of 1954, as amended, and whose primary

16  purpose is to raise money for military museums.

17         (m)  Nonprofit corporations; homes for the aged,

18  nursing homes, or hospices.--Nonprofit corporations which hold

19  current exemptions from federal corporate income tax pursuant

20  to s. 501(c)(3), Internal Revenue Code of 1954, as amended,

21  and which either qualify as homes for the aged pursuant to s.

22  196.1975(2) or are licensed as a nursing home or hospice under

23  the provisions of chapter 400, are exempt from the tax imposed

24  by this chapter.

25         (l)(n)  Organizations providing special educational,

26  cultural, recreational, and social benefits to minors.--Also

27  There shall be exempt from the tax imposed by this chapter are

28  sales or leases to and sales of donated property by nonprofit

29  organizations which are incorporated pursuant to chapter 617

30  or which hold a current exemption from federal corporate

31  income tax pursuant to s. 501(c)(3) of the Internal Revenue


                                  5

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  Code the primary purpose of which is providing activities that

  2  contribute to the development of good character or good

  3  sportsmanship, or to the educational or cultural development,

  4  of minors.  This exemption is extended only to that level of

  5  the organization that has a salaried executive officer or an

  6  elected nonsalaried executive officer. For the purpose of this

  7  paragraph, the term "donated property" means any property

  8  transferred to such nonprofit organization for less than 50

  9  percent of its fair market value.

10         (m)(o)  Religious institutions Religious, charitable,

11  scientific, educational, and veterans' institutions and

12  organizations.--

13         1.  There are exempt from the tax imposed by this

14  chapter transactions involving:

15         a.  sales or leases directly to religious institutions

16  when used in carrying on their customary nonprofit religious

17  activities churches or sales or leases of tangible personal

18  property by religious institutions having an established

19  physical place for worship at which nonprofit religious

20  services and activities are regularly conducted and carried

21  on. churches;

22         2.  As used in this paragraph, the term:

23         a.  "Religious institutions" means churches,

24  synagogues, and established physical places for worship at

25  which nonprofit religious services and activities are

26  regularly conducted and carried on. The term "religious

27  institutions" includes nonprofit corporations the sole purpose

28  of which is to provide free transportation services to church

29  members, their families, and other church attendees. The term

30  "religious institutions" also includes nonprofit state,

31  nonprofit district, or other nonprofit governing or


                                  6

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  administrative offices the function of which is to assist or

  2  regulate the customary activities of religious institutions.

  3  The term "religious institutions" also includes any nonprofit

  4  corporation that is qualified as nonprofit under s. 501(c)(3)

  5  of the Internal Revenue Code of 1986, as amended, and that

  6  owns and operates a Florida television station, at least 90

  7  percent of the programming of which station consists of

  8  programs of a religious nature and the financial support for

  9  which, exclusive of receipts for broadcasting from other

10  nonprofit organizations, is predominantly from contributions

11  from the general public. The term "religious institutions"

12  also includes any nonprofit corporation that is qualified as

13  nonprofit under s. 501(c)(3) of the Internal Revenue Code of

14  1986, as amended, the primary activity of which is making and

15  distributing audio recordings of religious scriptures and

16  teachings to blind or visually impaired persons at no charge.

17  The term "religious institutions" also includes any nonprofit

18  corporation that is qualified as nonprofit under s. 501(c)(3)

19  of the Internal Revenue Code of 1986, as amended, the sole or

20  primary function of which is to provide, upon invitation,

21  nonprofit religious services, evangelistic services, religious

22  education, administrative assistance, or missionary assistance

23  for a church, synagogue, or established physical place of

24  worship at which nonprofit religious services and activities

25  are regularly conducted.

26         b.  Sales or leases to nonprofit religious, nonprofit

27  charitable, nonprofit scientific, or nonprofit educational

28  institutions when used in carrying on their customary

29  nonprofit religious, nonprofit charitable, nonprofit

30  scientific, or nonprofit educational activities, including

31  church cemeteries; and


                                  7

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         (n)c.  Veteran organizations.--

  2         1.  There are exempt from the tax imposed by this

  3  chapter transactions involving sales or leases to qualified

  4  veterans' organizations and their auxiliaries when used in

  5  carrying on their customary veterans' organization activities.

  6         2.  As used in this paragraph, the term "veterans'

  7  organizations" means nationally chartered or recognized

  8  veterans' organizations, including, but not limited to,

  9  Florida chapters of the Paralyzed Veterans of America,

10  Catholic War Veterans of the U.S.A., Jewish War Veterans of

11  the U.S.A., and the Disabled American Veterans, Department of

12  Florida, Inc., which hold current exemptions from federal

13  income tax under s. 501(c)(4) or (19) of the Internal Revenue

14  Code of 1986, as amended.

15         2.  The provisions of this section authorizing

16  exemptions from tax shall be strictly defined, limited, and

17  applied in each category as follows:

18         a.  "Religious institutions" means churches,

19  synagogues, and established physical places for worship at

20  which nonprofit religious services and activities are

21  regularly conducted and carried on. The term "religious

22  institutions" includes nonprofit corporations the sole purpose

23  of which is to provide free transportation services to church

24  members, their families, and other church attendees. The term

25  "religious institutions" also includes state, district, or

26  other governing or administrative offices the function of

27  which is to assist or regulate the customary activities of

28  religious organizations or members. The term "religious

29  institutions" also includes any nonprofit corporation which is

30  qualified as nonprofit pursuant to s. 501(c)(3), Internal

31  Revenue Code of 1986, as amended, which owns and operates a


                                  8

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  Florida television station, at least 90 percent of the

  2  programming of which station consists of programs of a

  3  religious nature, and the financial support for which,

  4  exclusive of receipts for broadcasting from other nonprofit

  5  organizations, is predominantly from contributions from the

  6  general public. The term "religious institutions" also

  7  includes any nonprofit corporation which is qualified as

  8  nonprofit pursuant to s. 501(c)(3), Internal Revenue Code of

  9  1986, as amended, which provides regular religious services to

10  Florida state prisoners and which from its own established

11  physical place of worship, operates a ministry providing

12  worship and services of a charitable nature to the community

13  on a weekly basis.  The term "religious institutions" also

14  includes any nonprofit corporation which is qualified as

15  nonprofit pursuant to s. 501(c)(3), Internal Revenue Code of

16  1986, as amended, the primary activity of which is making and

17  distributing audio recordings of religious scriptures and

18  teachings to blind or visually impaired persons at no charge.

19  The term "religious institutions" also includes any nonprofit

20  corporation that is qualified as nonprofit pursuant to s.

21  501(c)(3), Internal Revenue Code of 1986, as amended, the sole

22  or primary function of which is to provide, upon invitation,

23  nonprofit religious services, evangelistic services, religious

24  education, administration assistance, or missionary assistance

25  for a church, synagogue, or established physical place of

26  worship at which nonprofit religious services and activities

27  are regularly conducted.

28         b.  "Charitable institutions" means only nonprofit

29  corporations qualified as nonprofit pursuant to s. 501(c)(3),

30  Internal Revenue Code of 1954, as amended, and other nonprofit

31  entities, the sole or primary function of which is to provide,


                                  9

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  or to raise funds for organizations which provide, one or more

  2  of the following services if a reasonable percentage of such

  3  service is provided free of charge, or at a substantially

  4  reduced cost, to persons, animals, or organizations that are

  5  unable to pay for such service:

  6         (I)  Medical aid for the relief of disease, injury, or

  7  disability;

  8         (II)  Regular provision of physical necessities such as

  9  food, clothing, or shelter;

10         (III)  Services for the prevention of or rehabilitation

11  of persons from alcoholism or drug abuse; the prevention of

12  suicide; or the alleviation of mental, physical, or sensory

13  health problems;

14         (IV)  Social welfare services including adoption

15  placement, child care, community care for the elderly,

16  consumer credit counseling, and other social welfare services

17  which clearly and substantially benefit a client population

18  which is disadvantaged or suffers a hardship;

19         (V)  Medical research for the relief of disease,

20  injury, or disability;

21         (VI)  Legal services; or

22         (VII)  Food, shelter, or medical care for animals or

23  adoption services, cruelty investigations, or education

24  programs concerning animals;

25

26  and the term includes groups providing volunteer staff to

27  organizations designated as charitable institutions under this

28  sub-subparagraph; nonprofit organizations the sole or primary

29  purpose of which is to coordinate, network, or link other

30  institutions designated as charitable institutions under this

31  sub-subparagraph with those persons, animals, or organizations


                                  10

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  in need of their services; and nonprofit national, state,

  2  district, or other governing, coordinating, or administrative

  3  organizations the sole or primary purpose of which is to

  4  represent or regulate the customary activities of other

  5  institutions designated as charitable institutions under this

  6  sub-subparagraph.  Notwithstanding any other requirement of

  7  this section, any blood bank that relies solely upon volunteer

  8  donations of blood and tissue, that is licensed under chapter

  9  483, and that qualifies as tax exempt under s. 501(c)(3) of

10  the Internal Revenue Code constitutes a charitable institution

11  and is exempt from the tax imposed by this chapter. Sales to a

12  health system foundation, qualified as nonprofit pursuant to

13  s. 501(c)(3), Internal Revenue Code of 1986, as amended, which

14  filed an application for exemption with the department prior

15  to November 15, 1997, and which application is subsequently

16  approved, shall be exempt as to any unpaid taxes on purchases

17  made from November 14, 1990, to December 31, 1997.

18         c.  "Scientific organizations" means scientific

19  organizations which hold current exemptions from federal

20  income tax under s. 501(c)(3) of the Internal Revenue Code and

21  also means organizations the purpose of which is to protect

22  air and water quality or the purpose of which is to protect

23  wildlife and which hold current exemptions from the federal

24  income tax under s. 501(c)(3) of the Internal Revenue Code.

25         (o)d.  Schools, colleges, and universities.--Also

26  exempt from the tax imposed by this chapter are sales or

27  leases to "Educational institutions" means state tax-supported

28  or parochial, church and nonprofit private schools, colleges,

29  or universities. which conduct regular classes and courses of

30  study required for accreditation by, or membership in, the

31  Southern Association of Colleges and Schools, the Department


                                  11

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  of Education, the Florida Council of Independent Schools, or

  2  the Florida Association of Christian Colleges and Schools,

  3  Inc., or nonprofit private schools which conduct regular

  4  classes and courses of study accepted for continuing education

  5  credit by a board of the Division of Medical Quality Assurance

  6  of the Department of Health or which conduct regular classes

  7  and courses of study accepted for continuing education credit

  8  by the American Medical Association. Nonprofit libraries, art

  9  galleries, performing arts centers that provide educational

10  programs to school children, which programs involve

11  performances or other educational activities at the performing

12  arts center and serve a minimum of 50,000 school children a

13  year, and museums open to the public are defined as

14  educational institutions and are eligible for exemption. The

15  term "educational institutions" includes private nonprofit

16  organizations the purpose of which is to raise funds for

17  schools teaching grades kindergarten through high school,

18  colleges, and universities. The term "educational

19  institutions" includes any nonprofit newspaper of free or paid

20  circulation primarily on university or college campuses which

21  holds a current exemption from federal income tax under s.

22  501(c)(3) of the Internal Revenue Code, and any educational

23  television or radio network or system established pursuant to

24  s. 229.805 or s. 229.8051 and any nonprofit television or

25  radio station which is a part of such network or system and

26  which holds a current exemption from federal income tax under

27  s. 501(c)(3) of the Internal Revenue Code. The term

28  "educational institutions" also includes state, district, or

29  other governing or administrative offices the function of

30  which is to assist or regulate the customary activities of

31  educational organizations or members. The term "educational


                                  12

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  institutions" also includes a nonprofit educational cable

  2  consortium which holds a current exemption from federal income

  3  tax under s. 501(c)(3) of the Internal Revenue Code of 1986,

  4  as amended, whose primary purpose is the delivery of

  5  educational and instructional cable television programming and

  6  whose members are composed exclusively of educational

  7  organizations which hold a valid consumer certificate of

  8  exemption and which are either an educational institution as

  9  defined in this sub-subparagraph, or qualified as a nonprofit

10  organization pursuant to s. 501(c)(3) of the Internal Revenue

11  Code of 1986, as amended.

12         e.  "Veterans' organizations" means nationally

13  chartered or recognized veterans' organizations, including,

14  but not limited to, Florida chapters of the Paralyzed Veterans

15  of America, Catholic War Veterans of the U.S.A., Jewish War

16  Veterans of the U.S.A., and the Disabled American Veterans,

17  Department of Florida, Inc., which hold current exemptions

18  from federal income tax under s. 501(c)(3), (4), or (19) of

19  the Internal Revenue Code.

20         (p)  Section 501(c)(3) organizations.--Also exempt from

21  the tax imposed by this chapter are sales or leases to

22  organizations determined by the Internal Revenue Service to be

23  currently exempt from federal income tax pursuant to s.

24  501(c)(3) of the Internal Revenue Code of 1986, as amended,

25  when such leases or purchases are used in carrying on their

26  customary nonprofit activities.

27         (q)(p)  Resource recovery equipment.--Also exempt is

28  resource recovery equipment which is owned and operated by or

29  on behalf of any county or municipality, certified by the

30  Department of Environmental Protection under the provisions of

31  s. 403.715.


                                  13

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         (r)(q)  School books and school lunches.--This

  2  exemption applies to school books used in regularly prescribed

  3  courses of study, and to school lunches served in public,

  4  parochial, or nonprofit schools operated for and attended by

  5  pupils of grades K through 12.  Yearbooks, magazines,

  6  newspapers, directories, bulletins, and similar publications

  7  distributed by such educational institutions to their students

  8  are also exempt. School books and food sold or served at

  9  community colleges and other institutions of higher learning

10  are taxable.

11         (r)  State theater contract organizations.--Nonprofit

12  organizations incorporated in accordance with chapter 617

13  which have qualified under s. 501(c)(3) of the Internal

14  Revenue Code of 1954, as amended, and which have been

15  designated as state theater contract organizations as provided

16  in s. 265.289 are exempt from the tax imposed by this chapter.

17         (s)  Tasting beverages.--Vinous and alcoholic beverages

18  provided by distributors or vendors for the purpose of "wine

19  tasting" and "spirituous beverage tasting" as contemplated

20  under the provisions of ss. 564.06 and 565.12, respectively,

21  are exempt from the tax imposed by this chapter.

22         (t)  Boats temporarily docked in state.--

23         1.  Notwithstanding the provisions of chapters 327 and

24  328, pertaining to the registration of vessels, a boat upon

25  which the state sales or use tax has not been paid is exempt

26  from the use tax under this chapter if it enters and remains

27  in this state for a period not to exceed a total of 20 days in

28  any calendar year calculated from the date of first dockage or

29  slippage at a facility, registered with the department, that

30  rents dockage or slippage space in this state.  If a boat

31  brought into this state for use under this paragraph is placed


                                  14

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  in a facility, registered with the department, for repairs,

  2  alterations, refitting, or modifications and such repairs,

  3  alterations, refitting, or modifications are supported by

  4  written documentation, the 20-day period shall be tolled

  5  during the time the boat is physically in the care, custody,

  6  and control of the repair facility, including the time spent

  7  on sea trials conducted by the facility.  The 20-day time

  8  period may be tolled only once within a calendar year when a

  9  boat is placed for the first time that year in the physical

10  care, custody, and control of a registered repair facility;

11  however, the owner may request and the department may grant an

12  additional tolling of the 20-day period for purposes of

13  repairs that arise from a written guarantee given by the

14  registered repair facility, which guarantee covers only those

15  repairs or modifications made during the first tolled period.

16  Within 72 hours after the date upon which the registered

17  repair facility took possession of the boat, the facility must

18  have in its possession, on forms prescribed by the department,

19  an affidavit which states that the boat is under its care,

20  custody, and control and that the owner does not use the boat

21  while in the facility.  Upon completion of the repairs,

22  alterations, refitting, or modifications, the registered

23  repair facility must, within 72 hours after the date of

24  release, have in its possession a copy of the release form

25  which shows the date of release and any other information the

26  department requires. The repair facility shall maintain a log

27  that documents all alterations, additions, repairs, and sea

28  trials during the time the boat is under the care, custody,

29  and control of the facility.  The affidavit shall be

30  maintained by the registered repair facility as part of its

31  records for as long as required by s. 213.35.  When, within 6


                                  15

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  months after the date of its purchase, a boat is brought into

  2  this state under this paragraph, the 6-month period provided

  3  in s. 212.05(1)(a)2. or s. 212.06(8) shall be tolled.

  4         2.  During the period of repairs, alterations,

  5  refitting, or modifications and during the 20-day period

  6  referred to in subparagraph 1., the boat may be listed for

  7  sale, contracted for sale, or sold exclusively by a broker or

  8  dealer registered with the department without incurring a use

  9  tax under this chapter; however, the sales tax levied under

10  this chapter applies to such sale.

11         3.  The mere storage of a boat at a registered repair

12  facility does not qualify as a tax-exempt use in this state.

13         4.  As used in this paragraph, "registered repair

14  facility" means:

15         a.  A full-service facility that:

16         (I)  Is located on a navigable body of water;

17         (II)  Has haulout capability such as a dry dock, travel

18  lift, railway, or similar equipment to service craft under the

19  care, custody, and control of the facility;

20         (III)  Has adequate piers and storage facilities to

21  provide safe berthing of vessels in its care, custody, and

22  control; and

23         (IV)  Has necessary shops and equipment to provide

24  repair or warranty work on vessels under the care, custody,

25  and control of the facility;

26         b.  A marina that:

27         (I)  Is located on a navigable body of water;

28         (II)  Has adequate piers and storage facilities to

29  provide safe berthing of vessels in its care, custody, and

30  control; and

31


                                  16

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         (III)  Has necessary shops and equipment to provide

  2  repairs or warranty work on vessels; or

  3         c.  A shoreside facility that:

  4         (I)  Is located on a navigable body of water;

  5         (II)  Has adequate piers and storage facilities to

  6  provide safe berthing of vessels in its care, custody, and

  7  control; and

  8         (III)  Has necessary shops and equipment to provide

  9  repairs or warranty work.

10         (u)  Volunteer fire departments.--Also exempt are

11  firefighting and rescue service equipment and supplies

12  purchased by volunteer fire departments, duly chartered under

13  the Florida Statutes as corporations not for profit.

14         (v)  Professional services.--

15         1.  Also exempted are professional, insurance, or

16  personal service transactions that involve sales as

17  inconsequential elements for which no separate charges are

18  made.

19         2.  The personal service transactions exempted pursuant

20  to subparagraph 1. do not exempt the sale of information

21  services involving the furnishing of printed, mimeographed, or

22  multigraphed matter, or matter duplicating written or printed

23  matter in any other manner, other than professional services

24  and services of employees, agents, or other persons acting in

25  a representative or fiduciary capacity or information services

26  furnished to newspapers and radio and television stations.  As

27  used in this subparagraph, the term "information services"

28  includes the services of collecting, compiling, or analyzing

29  information of any kind or nature and furnishing reports

30  thereof to other persons.

31


                                  17

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         3.  This exemption does not apply to any service

  2  warranty transaction taxable under s. 212.0506.

  3         4.  This exemption does not apply to any service

  4  transaction taxable under s. 212.05(1)(j).

  5         (w)  Certain newspaper, magazine, and newsletter

  6  subscriptions, shoppers, and community newspapers.--Likewise

  7  exempt are newspaper, magazine, and newsletter subscriptions

  8  in which the product is delivered to the customer by mail.

  9  Also exempt are free, circulated publications that are

10  published on a regular basis, the content of which is

11  primarily advertising, and that are distributed through the

12  mail, home delivery, or newsstands. The exemption for

13  newspaper, magazine, and newsletter subscriptions which is

14  provided in this paragraph applies only to subscriptions

15  entered into after March 1, 1997.

16         (x)  Sporting equipment brought into the

17  state.--Sporting equipment brought into Florida, for a period

18  of not more than 4 months in any calendar year, used by an

19  athletic team or an individual athlete in a sporting event is

20  exempt from the use tax if such equipment is removed from the

21  state within 7 days after the completion of the event.

22         (y)  Charter fishing vessels.--The charge for

23  chartering any boat or vessel, with the crew furnished, solely

24  for the purpose of fishing is exempt from the tax imposed

25  under s. 212.04 or s. 212.05.  This exemption does not apply

26  to any charge to enter or stay upon any "head-boat," party

27  boat, or other boat or vessel.  Nothing in this paragraph

28  shall be construed to exempt any boat from sales or use tax

29  upon the purchase thereof except as provided in paragraph (t)

30  and s. 212.05.

31


                                  18

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         (z)  Vending machines sponsored by nonprofit or

  2  charitable organizations.--Also exempt are food or drinks for

  3  human consumption sold for 25 cents or less through a

  4  coin-operated vending machine sponsored by a nonprofit

  5  corporation qualified as nonprofit pursuant to s. 501(c)(3) or

  6  (4) of the Internal Revenue Code of 1986, as amended.

  7         (aa)  Certain commercial vehicles.--Also exempt is the

  8  sale, lease, or rental of a commercial motor vehicle as

  9  defined in s. 207.002(2), when the following conditions are

10  met:

11         1.  The sale, lease, or rental occurs between two

12  commonly owned and controlled corporations;

13         2.  Such vehicle was titled and registered in this

14  state at the time of the sale, lease, or rental; and

15         3.  Florida sales tax was paid on the acquisition of

16  such vehicle by the seller, lessor, or renter.

17         (bb)  Community cemeteries.--Also exempt are purchases

18  by any nonprofit corporation that has qualified under s.

19  501(c)(13) of the Internal Revenue Code of 1986, as amended,

20  and is operated for the purpose of maintaining a cemetery that

21  was donated to the community by deed.

22         (cc)  Coast Guard auxiliaries.--A nonprofit

23  organization that is affiliated with the Coast Guard, that is

24  exempt from federal income tax pursuant to s. 501(a) and

25  (c)(3) of the Internal Revenue Code of 1986, as amended, and

26  the primary purpose of which is to promote safe boating and to

27  conduct free public education classes in basic seamanship is

28  exempt from the tax imposed by this chapter.

29         (cc)(dd)  Works of art.--

30

31


                                  19

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         1.  Also exempt are works of art sold to or used by an

  2  educational institution, as defined in sub-subparagraph

  3  (o)2.d.

  4         2.  This exemption also applies to the sale to or use

  5  in this state of any work of art by any person if it was

  6  purchased or imported exclusively for the purpose of being

  7  donated to any educational institution, or loaned to and made

  8  available for display by any educational institution, provided

  9  that the term of the loan agreement is for at least 10 years.

10         3.  The exemption provided by this paragraph for

11  donations is allowed only if the person who purchased the work

12  of art transfers title to the donated work of art to an

13  educational institution. Such transfer of title shall be

14  evidenced by an affidavit meeting requirements established by

15  rule to document entitlement to the exemption. Nothing in this

16  paragraph shall preclude a work of art donated to an

17  educational institution from remaining in the possession of

18  the donor or purchaser, as long as title to the work of art

19  lies with the educational institution.

20         4.  A work of art is presumed to have been purchased in

21  or imported into this state exclusively for loan as provided

22  in subparagraph 2., if it is so loaned or placed in storage in

23  preparation for such a loan within 90 days after purchase or

24  importation, whichever is later; but a work of art is not

25  deemed to be placed in storage in preparation for loan for

26  purposes of this exemption if it is displayed at any place

27  other than an educational institution.

28         5.  The exemptions provided by this paragraph are

29  allowed only if the person who purchased the work of art gives

30  to the vendor an affidavit meeting the requirements,

31  established by rule, to document entitlement to the exemption.


                                  20

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  The person who purchased the work of art shall forward a copy

  2  of such affidavit to the Department of Revenue at the time it

  3  is issued to the vendor.

  4         6.  The exemption for loans provided by subparagraph 2.

  5  applies only for the period during which a work of art is in

  6  the possession of the educational institution or is in storage

  7  before transfer of possession to that institution; and when it

  8  ceases to be so possessed or held, tax based upon the sales

  9  price paid by the owner is payable, and the statute of

10  limitations provided in s. 95.091 shall begin to run at that

11  time. However, tax shall not become due if the work of art is

12  donated to an educational institution after the loan ceases.

13         7.  Any educational institution to which a work of art

14  has been donated pursuant to this paragraph shall make

15  available to the department the title to the work of art and

16  any other relevant information. Any educational institution

17  which has received a work of art on loan pursuant to this

18  paragraph shall make available to the department information

19  relating to the work of art. Any educational institution that

20  transfers from its possession a work of art as defined by this

21  paragraph which has been loaned to it must notify the

22  Department of Revenue within 60 days after the transfer.

23         8.  For purposes of the exemptions provided by this

24  paragraph, the term:

25         a.  "Educational institutions" includes state

26  tax-supported, parochial, church, and nonprofit private

27  schools, colleges, or universities that conduct regular

28  classes and courses of study required for accreditation by or

29  membership in the Southern Association of Colleges and

30  Schools, the Florida Council of Independent Schools, or the

31  Florida Association of Christian Colleges and Schools, Inc.;


                                  21

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  nonprofit private schools that conduct regular classes and

  2  courses of study accepted for continuing education credit by a

  3  board of the Division of Medical Quality Assurance of the

  4  Department of Health; or nonprofit libraries, art galleries,

  5  performing arts centers that provide educational programs to

  6  school children, which programs involve performances or other

  7  educational activities at the performing arts center and serve

  8  a minimum of 50,000 schoolchildren a year, and museums open to

  9  the public.

10         b.  "Work of art" includes pictorial representations,

11  sculpture, jewelry, antiques, stamp collections and coin

12  collections, and other tangible personal property, the value

13  of which is attributable predominantly to its artistic,

14  historical, political, cultural, or social importance.

15         (dd)(ee)  Taxicab leases.--The lease of or license to

16  use a taxicab or taxicab-related equipment and services

17  provided by a taxicab company to an independent taxicab

18  operator are exempt, provided, however, the exemptions

19  provided under this paragraph only apply if sales or use tax

20  has been paid on the acquisition of the taxicab and its

21  related equipment.

22         (ee)(ff)  Aircraft repair and maintenance labor

23  charges.--There shall be exempt from the tax imposed by this

24  chapter all labor charges for the repair and maintenance of

25  aircraft of more than 15,000 pounds maximum certified takeoff

26  weight and rotary wing aircraft of more than 10,000 pounds

27  maximum certified takeoff weight. Except as otherwise provided

28  in this chapter, charges for parts and equipment furnished in

29  connection with such labor charges are taxable.

30

31


                                  22

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         (gg)  Athletic event sponsors.--There shall be exempt

  2  from the tax imposed by this chapter sales or leases to

  3  organizations that:

  4         1.  Are incorporated pursuant to chapter 617;

  5         2.  Hold a current exemption from federal corporate

  6  income tax liability pursuant to s. 501(c)(3) of the Internal

  7  Revenue Code of 1986, as amended; and

  8         3.a.  Sponsor golf tournaments sanctioned by the PGA

  9  Tour, PGA of America, or the LPGA; or

10         b.  Are funded primarily by county or municipal

11  governments and have as their primary purpose the

12  encouragement and facilitation of the use of certain locations

13  within this state as venues for sporting events.

14         (ff)(hh)  Electric vehicles.--Effective July 1, 1995,

15  through June 30, 2000, the sale of an electric vehicle, as

16  defined in s. 320.01, is exempt from the tax imposed by this

17  chapter.

18         (gg)(ii)  Certain electricity or steam uses.--

19         1.  Subject to the provisions of subparagraph 4.,

20  charges for electricity or steam used to operate machinery and

21  equipment at a fixed location in this state when such

22  machinery and equipment is used to manufacture, process,

23  compound, produce, or prepare for shipment items of tangible

24  personal property for sale, or to operate pollution control

25  equipment, recycling equipment, maintenance equipment, or

26  monitoring or control equipment used in such operations are

27  exempt to the extent provided in this paragraph. If 75 percent

28  or more of the electricity or steam used at the fixed location

29  is used to operate qualifying machinery or equipment, 100

30  percent of the charges for electricity or steam used at the

31  fixed location are exempt. If less than 75 percent but 50


                                  23

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  percent or more of the electricity or steam used at the fixed

  2  location is used to operate qualifying machinery or equipment,

  3  50 percent of the charges for electricity or steam used at the

  4  fixed location are exempt. If less than 50 percent of the

  5  electricity or steam used at the fixed location is used to

  6  operate qualifying machinery or equipment, none of the charges

  7  for electricity or steam used at the fixed location are

  8  exempt.

  9         2.  This exemption applies only to industries

10  classified under SIC Industry Major Group Numbers 10, 12, 13,

11  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

12  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

13  in this paragraph, "SIC" means those classifications contained

14  in the Standard Industrial Classification Manual, 1987, as

15  published by the Office of Management and Budget, Executive

16  Office of the President.

17         3.  Possession by a seller of a written certification

18  by the purchaser, certifying the purchaser's entitlement to an

19  exemption permitted by this subsection, relieves the seller

20  from the responsibility of collecting the tax on the

21  nontaxable amounts, and the department shall look solely to

22  the purchaser for recovery of such tax if it determines that

23  the purchaser was not entitled to the exemption.

24         4.  Such exemption shall be applied as follows:

25         a.  Beginning July 1, 1996, 20 percent of the charges

26  for such electricity shall be exempt.

27         b.  Beginning July 1, 1997, 40 percent of the charges

28  for such electricity shall be exempt.

29         c.  Beginning July 1, 1998, 60 percent of the charges

30  for such electricity or steam shall be exempt.

31


                                  24

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         d.  Beginning July 1, 1999, 80 percent of the charges

  2  for such electricity or steam shall be exempt.

  3         e.  Beginning July 1, 2000, 100 percent of the charges

  4  for such electricity or steam shall be exempt.

  5         5.  Notwithstanding any other provision in this

  6  paragraph to the contrary, in order to receive the exemption

  7  provided in this paragraph a taxpayer must first register with

  8  the WAGES Program Business Registry established by the local

  9  WAGES coalition for the area in which the taxpayer is located.

10  Such registration establishes a commitment on the part of the

11  taxpayer to hire WAGES program participants to the maximum

12  extent possible consistent with the nature of their business.

13         6.a.  In order to determine whether the exemption

14  provided in this paragraph from the tax on charges for

15  electricity or steam has an effect on retaining or attracting

16  companies to this state, the Office of Program Policy Analysis

17  and Government Accountability shall periodically monitor and

18  report on the industries receiving the exemption.

19         b.  The first report shall be submitted no later than

20  January 1, 1997, and must be conducted in such a manner as to

21  specifically determine the number of companies within each SIC

22  Industry Major Group receiving the exemption as of September

23  1, 1996, and the number of individuals employed by companies

24  within each SIC Industry Major Group receiving the exemption

25  as of September 1, 1996.

26         c.  The second report shall be submitted no later than

27  January 1, 2001, and must be comprehensive in scope, but, at a

28  minimum, must be conducted in such a manner as to specifically

29  determine the number of companies within each SIC Industry

30  Major Group receiving the exemption as of September 1, 2000,

31  the number of individuals employed by companies within each


                                  25

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  SIC Industry Major Group receiving the exemption as of

  2  September 1, 2000, whether the change, if any, in such number

  3  of companies or employees is attributable to the exemption

  4  provided in this paragraph, whether it would be sound public

  5  policy to continue or discontinue the exemption, and the

  6  consequences of doing so.

  7         d.  Both reports shall be submitted to the President of

  8  the Senate, the Speaker of the House of Representatives, the

  9  Senate Minority Leader, and the House Minority Leader.

10         (hh)(jj)  Fair associations.--Also exempt from the tax

11  imposed by this chapter is the sale, use, lease, rental, or

12  grant of a license to use, made directly to or by a fair

13  association, of real or tangible personal property; any charge

14  made by a fair association, or its agents, for parking,

15  admissions, or for temporary parking of vehicles used for

16  sleeping quarters; rentals, subleases, and sublicenses of real

17  or tangible personal property between the owner of the central

18  amusement attraction and any owner of an amusement ride, as

19  those terms are used in ss. 616.15(1)(b) and 616.242(3)(a),

20  for the furnishing of amusement rides at a public fair or

21  exposition; and other transactions of a fair association which

22  are incurred directly by the fair association in the

23  financing, construction, and operation of a fair, exposition,

24  or other event or facility that is authorized by s. 616.08. As

25  used in this paragraph, the terms "fair association" and

26  "public fair or exposition" have the same meaning as those

27  terms are defined in s. 616.001. This exemption does not apply

28  to the sale of tangible personal property made by a fair

29  association through an agent or independent contractor; sales

30  of admissions and tangible personal property by a

31  concessionaire, vendor, exhibitor, or licensee; or rentals and


                                  26

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  subleases of tangible personal property or real property

  2  between the owner of the central amusement attraction and a

  3  concessionaire, vendor, exhibitor, or licensee, except for the

  4  furnishing of amusement rides, which transactions are exempt.

  5         (ii)(kk)  Citizen support organizations.--Also exempt

  6  from the tax imposed by this chapter are sales or leases to

  7  Beginning July 1, 1996, nonprofit organizations that are

  8  incorporated under chapter 617 or hold a current exemption

  9  from federal corporate income tax under s. 501(c)(3) of the

10  Internal Revenue Code, as amended, and that have been

11  designated citizen support organizations in support of

12  state-funded environmental programs or the management of

13  state-owned lands in accordance with s. 370.0205, or to

14  support one or more state parks in accordance with s. 258.015

15  are exempt from the tax imposed by this chapter.

16         (jj)(ll)  Florida Folk Festival.--There shall be exempt

17  from the tax imposed by this chapter income of a revenue

18  nature received from admissions to the Florida Folk Festival

19  held pursuant to s. 267.16 at the Stephen Foster State Folk

20  Culture Center, a unit of the state park system.

21         (kk)(mm)  Solar energy systems.--Also exempt are solar

22  energy systems or any component thereof.  The Florida Solar

23  Energy Center shall from time to time certify to the

24  department a list of equipment and requisite hardware

25  considered to be a solar energy system or a component thereof.

26  This exemption is repealed July 1, 2002.

27         (ll)(nn)  Nonprofit cooperative hospital

28  laundries.--Also exempt from the tax imposed by this chapter

29  are sales or leases to nonprofit organizations that are

30  incorporated under chapter 617 and which are treated, for

31  federal income tax purposes, as cooperatives under subchapter


                                  27

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  T of the Internal Revenue Code, whose sole purpose is to offer

  2  laundry supplies and services to their members, which members

  3  must all be exempt from federal income tax pursuant to s.

  4  501(c)(3) of the Internal Revenue Code, are exempt from the

  5  tax imposed by this chapter.

  6         (mm)(oo)  Complimentary meals.--Also exempt from the

  7  tax imposed by this chapter are food or drinks that are

  8  furnished as part of a packaged room rate by any person

  9  offering for rent or lease any transient living accommodations

10  as described in s. 509.013(4)(a) which are licensed under part

11  I of chapter 509 and which are subject to the tax under s.

12  212.03, if a separate charge or specific amount for the food

13  or drinks is not shown. Such food or drinks are considered to

14  be sold at retail as part of the total charge for the

15  transient living accommodations. Moreover, the person offering

16  the accommodations is not considered to be the consumer of

17  items purchased in furnishing such food or drinks and may

18  purchase those items under conditions of a sale for resale.

19         (nn)(pp)  Nonprofit corporation conducting the

20  correctional work programs.--Products sold pursuant to s.

21  946.515 by the corporation organized pursuant to part II of

22  chapter 946 are exempt from the tax imposed by this chapter.

23  This exemption applies retroactively to July 1, 1983.

24         (oo)(qq)  Parent-teacher organizations, parent-teacher

25  associations, and schools having grades K through

26  12.--Parent-teacher organizations and associations qualified

27  as educational institutions as defined by sub-subparagraph

28  (cc)8.a. under paragraph (o) associated with schools having

29  grades K through 12, and schools having grades K through 12,

30  may pay tax to their suppliers on the cost price of school

31  materials and supplies purchased, rented, or leased for resale


                                  28

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  or rental to students in grades K through 12, of items sold

  2  for fundraising purposes, and of items sold through vending

  3  machines located on the school premises, in lieu of collecting

  4  the tax imposed by this chapter from the purchaser. This

  5  paragraph also applies to food or beverages sold through

  6  vending machines located in the student lunchroom or dining

  7  room of a school having kindergarten through grade 12.

  8         (pp)(rr)  Mobile home lot improvements.--Items

  9  purchased by developers for use in making improvements to a

10  mobile home lot owned by the developer may be purchased

11  tax-exempt as a sale for resale if made pursuant to a contract

12  that requires the developer to sell a mobile home to a

13  purchaser, place the mobile home on the lot, and make the

14  improvements to the lot for a single lump-sum price. The

15  developer must collect and remit sales tax on the entire

16  lump-sum price.

17         (qq)(ss)  Veterans Administration.--When a veteran of

18  the armed forces purchases an aircraft, boat, mobile home,

19  motor vehicle, or other vehicle from a dealer pursuant to the

20  provisions of 38 U.S.C. s. 3902(a), or any successor provision

21  of the United States Code, the amount that is paid directly to

22  the dealer by the Veterans Administration is not taxable.

23  However, any portion of the purchase price which is paid

24  directly to the dealer by the veteran is taxable.

25         (rr)(tt)  Complimentary items.--There is exempt from

26  the tax imposed by this chapter:

27         1.  Any food or drink, whether or not cooked or

28  prepared on the premises, provided without charge as a sample

29  or for the convenience of customers by a dealer that primarily

30  sells food product items at retail.

31


                                  29

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         2.  Any item given to a customer as part of a price

  2  guarantee plan related to point-of-sale errors by a dealer

  3  that primarily sells food products at retail.

  4

  5  The exemptions in this paragraph do not apply to businesses

  6  with the primary activity of serving prepared meals or

  7  alcoholic beverages for immediate consumption.

  8         (ss)(uu)  Donated foods or beverages.--Any food or

  9  beverage donated by a dealer that sells food products at

10  retail to a food bank or an organization that holds a current

11  exemption from federal corporate income tax pursuant to s.

12  501(c) of the Internal Revenue Code of 1986, as amended, is

13  exempt from the tax imposed by this chapter.

14         (tt)(vv)  Racing dogs.--The sale of a racing dog by its

15  owner is exempt if the owner is also the breeder of the

16  animal.

17         (uu)(ww)  Equipment used in aircraft repair and

18  maintenance.--There shall be exempt from the tax imposed by

19  this chapter replacement engines, parts, and equipment used in

20  the repair or maintenance of aircraft of more than 15,000

21  pounds maximum certified takeoff weight and rotary wing

22  aircraft of more than 10,300 pounds maximum certified takeoff

23  weight, when such parts or equipment are installed on such

24  aircraft that is being repaired or maintained in this state.

25  are installed on such aircraft that is being repaired or

26  maintained in this state.

27         (vv)(xx)  Aircraft sales or leases.--The sale or lease

28  of an aircraft of more than 15,000 pounds maximum certified

29  takeoff weight for use by a common carrier is exempt from the

30  tax imposed by this chapter. As used in this paragraph,

31  "common carrier" means an airline operating under Federal


                                  30

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  Aviation Administration regulations contained in Title 14,

  2  chapter I, part 121 or part 129 of the Code of Federal

  3  Regulations.

  4         (yy)  Sales or leases to Gasparilla Distance Classic

  5  Association, Inc.--Also exempt from the tax imposed by this

  6  chapter are sales or leases to the Gasparilla Distance Classic

  7  Association, Inc., if that organization holds a current

  8  exemption from federal corporate income tax liability pursuant

  9  to s. 501(c)(3) of the Internal Revenue Code of 1986, as

10  amended.

11         (zz)  Nonprofit organizations raising funds for or

12  making grants to organizations holding consumer's certificate

13  of exemption.--Sales or leases to an organization which holds

14  current exemption from federal income tax pursuant to s.

15  501(c)(3) of the Internal Revenue Code, as amended, the sole

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

17  grants to another organization or organizations currently

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

19  department are exempt from the tax imposed by this chapter.

20         (ww)(aaa)  Nonprofit water systems.--Sales or leases to

21  a not-for-profit corporation which holds a current exemption

22  from federal income tax under s. 501(c)(12) of the Internal

23  Revenue Code, as amended, are exempt from the tax imposed by

24  this chapter if the sole or primary function of the

25  corporation is to construct, maintain, or operate a water

26  system in this state.

27         (xx)(bbb)  Library cooperatives.--Sales or leases to

28  library cooperatives certified under s. 257.41(2) are exempt

29  from the tax imposed by this chapter.

30         (yy)(ccc)  Advertising agencies.--

31


                                  31

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         1.  As used in this paragraph, the term "advertising

  2  agency" means any firm that is primarily engaged in the

  3  business of providing advertising materials and services to

  4  its clients.

  5         2.  The sale of advertising services by an advertising

  6  agency to a client is exempt from the tax imposed by this

  7  chapter. Also exempt from the tax imposed by this chapter are

  8  items of tangible personal property such as photographic

  9  negatives and positives, videos, films, galleys, mechanicals,

10  veloxes, illustrations, digital audiotapes, analog tapes,

11  printed advertisement copies, compact discs for the purpose of

12  recording, digital equipment, and artwork and the services

13  used to produce those items if the items are:

14         a.  Sold to an advertising agency that is acting as an

15  agent for its clients pursuant to contract, and are created

16  for the performance of advertising services for the clients;

17         b.  Produced, fabricated, manufactured, or otherwise

18  created by an advertising agency for its clients, and are used

19  in the performance of advertising services for the clients; or

20         c.  Sold by an advertising agency to its clients in the

21  performance of advertising services for the clients, whether

22  or not the charges for these items are marked up or separately

23  stated.

24

25  The exemption provided by this subparagraph does not apply

26  when tangible personal property such as film, paper, and

27  videotapes is purchased to create items such as photographic

28  negatives and positives, videos, films, galleys, mechanicals,

29  veloxes, illustrations, and artwork that are sold to an

30  advertising agency or produced in-house by an advertising

31  agency on behalf of its clients.


                                  32

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         3.  The items exempted from tax under subparagraph 2.

  2  and the creative services used by an advertising agency to

  3  design the advertising for promotional goods such as displays,

  4  display containers, exhibits, newspaper inserts, brochures,

  5  catalogues, direct mail letters or flats, shirts, hats, pens,

  6  pencils, key chains, or other printed goods or materials are

  7  not subject to tax. However, when such promotional goods are

  8  produced or reproduced for distribution, tax applies to the

  9  sales price charged to the client for such promotional goods.

10         4.  For items purchased by an advertising agency and

11  exempt from tax under this paragraph, possession of an

12  exemption certificate from the advertising agency certifying

13  the agency's entitlement to exemption relieves the vendor of

14  the responsibility of collecting the tax on the sale of such

15  items to the advertising agency, and the department shall look

16  solely to the advertising agency for recovery of tax if it

17  determines that the advertising agency was not entitled to the

18  exemption.

19         5.  The exemptions provided by this paragraph apply

20  retroactively, except that all taxes that have been collected

21  must be remitted, and taxes that have been remitted before

22  July 1, 1999, on transactions that are subject to exemption

23  under this paragraph are not subject to refund.

24         6.  The department may adopt rules that interpret or

25  define the provisions of these exemptions and provide examples

26  regarding the application of these exemptions.

27         (zz)(ddd)  Bullion.--The sale of gold, silver, or

28  platinum bullion, or any combination thereof, in a single

29  transaction is exempt if the sales price exceeds $500. The

30  dealer must maintain proper documentation, as prescribed by

31  rule of the department, to identify that portion of a


                                  33

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  transaction which involves the sale of gold, silver, or

  2  platinum bullion and is exempt under this paragraph.

  3         (aaa)(eee)  Certain repair and labor charges.--

  4         1.  Subject to the provisions of subparagraphs 2. and

  5  3., there is exempt from the tax imposed by this chapter all

  6  labor charges for the repair of, and parts and materials used

  7  in the repair of and incorporated into, industrial machinery

  8  and equipment which is used for the manufacture, processing,

  9  compounding, or production of items of tangible personal

10  property at a fixed location within this state.

11         2.  This exemption applies only to industries

12  classified under SIC Industry Major Group Numbers 10, 12, 13,

13  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

14  36, 37, 38, and 39 and Industry Group Number 212. As used in

15  this subparagraph, "SIC" means those classifications contained

16  in the Standard Industrial Classification Manual, 1987, as

17  published by the Office of Management and Budget, Executive

18  Office of the President.

19         3.  This exemption shall be applied as follows:

20         a.  Beginning July 1, 1999, 25 percent of such charges

21  for repair parts and labor shall be exempt.

22         b.  Beginning July 1, 2000, 50 percent of such charges

23  for repair parts and labor shall be exempt.

24         c.  Beginning July 1, 2001, 75 percent of such charges

25  for repair parts and labor shall be exempt.

26         d.  Beginning July 1, 2002, 100 percent of such charges

27  for repair parts and labor shall be exempt.

28         (bbb)(fff)  Film and other printing supplies.--Also

29  exempt are the following materials purchased, produced, or

30  created by businesses classified under SIC Industry Numbers

31  275, 276, 277, 278, or 279 for use in producing graphic matter


                                  34

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  for sale: film, photographic paper, dyes used for embossing

  2  and engraving, artwork, typography, lithographic plates, and

  3  negatives.  As used in this paragraph, "SIC" means those

  4  classifications contained in the Standard Industrial

  5  Classification Manual, 1987, as published by the Office of

  6  Management and Budget, Executive Office of the President.

  7

  8  Exemptions provided to any entity by this subsection shall not

  9  inure to any transaction otherwise taxable under this chapter

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

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

12  check, or credit card even when that representative or

13  employee is subsequently reimbursed by such entity.

14         Section 2.  Subsection (6) of section 212.084, Florida

15  Statutes, is amended to read:

16         212.084  Review of exemption certificates; reissuance;

17  specified expiration date; temporary exemption certificates.--

18         (6)(a)  The Department of Revenue may issue temporary

19  exemption certificates to newly organized charitable

20  organizations applying for exemption under s. 212.08(7)(p) s.

21  212.08(7)(o)2.b. when a lack of historical information

22  prevents the applicant from qualifying immediately for an

23  exemption certificate. The department may require the

24  applicant to submit the information necessary to demonstrate

25  that the organization's proposed activities will qualify for

26  exemption under this chapter. The application must include an

27  estimate of the organization's expenditures that would be

28  taxable except for the temporary exemption certificate. If at

29  any time the amount of actual expenditures otherwise subject

30  to tax exceeds the anticipated amount, the applicant must file

31  with the department a supplemental application stating the


                                  35

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  actual expenditures and the estimated expenditures for the

  2  duration of the period covered by the temporary certificate.

  3         (b)  A recipient of a temporary certificate must

  4  qualify for a permanent certificate before the temporary

  5  certificate expires, or the recipient will be liable for the

  6  taxes and interest on all purchases for which the temporary

  7  exemption certificate was used. The executive director of the

  8  department may require the applicant for a temporary exemption

  9  certificate to file a cash or surety bond in an amount

10  sufficient to satisfy the department's estimate of taxes and

11  interest that would be due if the organization failed to

12  timely qualify for a regular exemption certificate.

13         (c)  A temporary exemption certificate expires 12

14  months after the date of issuance and may be renewed once for

15  an additional 12 months. If at any time the department

16  determines that the organization will not meet the criteria in

17  s. 212.08(7)(p) s. 212.08(7)(o)2.b. for the issuance of a

18  regular exemption certificate, the temporary exemption

19  certificate must be canceled, and the taxes and interest on

20  all purchases for which the temporary exemption certificate

21  was used are due within 30 days after the cancellation. The

22  department may adopt rules governing the application for, the

23  issuance of, and the form of the temporary exemption

24  certificate and providing for the collection of back taxes and

25  interest.

26         Section 3.  Subsection (4) of section 196.195 and

27  paragraph (c) of subsection (1) of section 196.196, Florida

28  Statutes, are repealed.

29         Section 4.  Subsection (2) of section 212.0821, Florida

30  Statutes, is amended to read:

31


                                  36

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         212.0821  Legislative intent that political

  2  subdivisions and public libraries use their sales tax

  3  exemption certificates for purchases on behalf of specified

  4  groups.--It is the intent of the Legislature that the

  5  political subdivisions of the state and the public libraries

  6  utilize their sales tax exemption certificates to purchase,

  7  with funds provided by the following groups, services,

  8  equipment, supplies, and items necessary for the operation of

  9  such groups, in addition to the normal exempt purchases that

10  political subdivisions and libraries are empowered to make:

11         (2)  Counties and municipalities shall purchase

12  necessary goods and services requested by REACT groups,

13  neighborhood crime watch groups, and state or locally

14  recognized organizations solely engaged in youth activities

15  identical to those discussed in s. 212.08(7)(l) s.

16  212.08(7)(n).

17         Section 5.  Paragraph (a) of subsection (2) of section

18  376.3072, Florida Statutes, is amended to read:

19         376.3072  Florida Petroleum Liability and Restoration

20  Insurance Program.--

21         (2)(a)  Any owner or operator of a petroleum storage

22  system may become an insured in the restoration insurance

23  program at a facility provided:

24         1.  A site at which an incident has occurred shall be

25  eligible for restoration if the insured is a participant in

26  the third-party liability insurance program or otherwise meets

27  applicable financial responsibility requirements. After July

28  1, 1993, the insured must also provide the required excess

29  insurance coverage or self-insurance for restoration to

30  achieve the financial responsibility requirements of 40 C.F.R.

31  s. 280.97, subpart H, not covered by paragraph (d).


                                  37

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         2.  A site which had a discharge reported prior to

  2  January 1, 1989, for which notice was given pursuant to s.

  3  376.3071(9) or (12), and which is ineligible for the

  4  third-party liability insurance program solely due to that

  5  discharge shall be eligible for participation in the

  6  restoration program for any incident occurring on or after

  7  January 1, 1989, in accordance with subsection (3).

  8  Restoration funding for an eligible contaminated site will be

  9  provided without participation in the third-party liability

10  insurance program until the site is restored as required by

11  the department or until the department determines that the

12  site does not require restoration.

13         3.  Notwithstanding paragraph (b), a site where an

14  application is filed with the department prior to January 1,

15  1995, where the owner is a small business under s. 288.703(1),

16  a state community college with less than 2,500 FTE, a

17  religious institution as defined by s. 212.08(7)(m) s.

18  212.08(7)(o)2.a., a charitable institution as defined by s.

19  212.08(7)(p) s. 212.08(7)(o)2.b., or a county or municipality

20  with a population of less than 50,000, shall be eligible for

21  up to $300,000 of eligible restoration costs, less a

22  deductible of $10,000 for small businesses, eligible community

23  colleges, and religious or charitable institutions, and

24  $30,000 for eligible counties and municipalities, provided

25  that:

26         a.  Except as provided in sub-subparagraph e., the

27  facility was in compliance with department rules at the time

28  of the discharge.

29         b.  The owner or operator has, upon discovery of a

30  discharge, promptly reported the discharge to the department,

31  and drained and removed the system from service, if necessary.


                                  38

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         c.  The owner or operator has not intentionally caused

  2  or concealed a discharge or disabled leak detection equipment.

  3         d.  The owner or operator proceeds to complete initial

  4  remedial action as defined by department rules.

  5         e.  The owner or operator, if required and if it has

  6  not already done so, applies for third-party liability

  7  coverage for the facility within 30 days of receipt of an

  8  eligibility order issued by the department pursuant to this

  9  provision.

10

11  However, the department may consider in-kind services from

12  eligible counties and municipalities in lieu of the $30,000

13  deductible. The cost of conducting initial remedial action as

14  defined by department rules shall be an eligible restoration

15  cost pursuant to this provision.

16         4.a.  By January 1, 1997, facilities at sites with

17  existing contamination shall be required to have methods of

18  release detection to be eligible for restoration insurance

19  coverage for new discharges subject to department rules for

20  secondary containment.  Annual storage system testing, in

21  conjunction with inventory control, shall be considered to be

22  a method of release detection until the later of December 22,

23  1998, or 10 years after the date of installation or the last

24  upgrade.  Other methods of release detection for storage tanks

25  which meet such requirement are:

26         (I)  Interstitial monitoring of tank and integral

27  piping secondary containment systems;

28         (II)  Automatic tank gauging systems; or

29         (III)  A statistical inventory reconciliation system

30  with a tank test every 3 years.

31


                                  39

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         b.  For pressurized integral piping systems, the owner

  2  or operator must use:

  3         (I)  An automatic in-line leak detector with flow

  4  restriction meeting the requirements of department rules used

  5  in conjunction with an annual tightness or pressure test; or

  6         (II)  An automatic in-line leak detector with

  7  electronic flow shut-off meeting the requirements of

  8  department rules.

  9         c.  For suction integral piping systems, the owner or

10  operator must use:

11         (I)  A single check valve installed directly below the

12  suction pump, provided there are no other valves between the

13  dispenser and the tank; or

14         (II)  An annual tightness test or other approved test.

15         d.  Owners of facilities with existing contamination

16  that install internal release detection systems in accordance

17  with sub-subparagraph a. shall permanently close their

18  external groundwater and vapor monitoring wells in accordance

19  with department rules by December 31, 1998.  Upon installation

20  of the internal release detection system, these wells shall be

21  secured and taken out of service until permanent closure.

22         e.  Facilities with vapor levels of contamination

23  meeting the requirements of or below the concentrations

24  specified in the performance standards for release detection

25  methods specified in department rules may continue to use

26  vapor monitoring wells for release detection.

27         f.  The department may approve other methods of release

28  detection for storage tanks and integral piping which have at

29  least the same capability to detect a new release as the

30  methods specified in this subparagraph.

31


                                  40

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1         Section 6.  Section 403.715, Florida Statutes, is

  2  amended to read:

  3         403.715  Certification of resource recovery or

  4  recycling equipment.--For purposes of implementing the tax

  5  exemptions provided by s. 212.08(5)(e) and (7)(q) (7)(p), the

  6  department shall establish a system for the examination and

  7  certification of resource recovery or recycling equipment.

  8  Application for certification of equipment shall be submitted

  9  to the department on forms prescribed by it which include such

10  pertinent information as the department may require.  The

11  department may require appropriate certification by a

12  certified public accountant or professional engineer that the

13  equipment for which these exemptions are being sought complies

14  with the exemption criteria set forth in s. 212.08(5)(e) and

15  (7)(q) (7)(p). Within 30 days after receipt of an application

16  by the department, a representative of the department may

17  inspect the equipment. Within 30 days after such inspection,

18  the department shall issue a written decision granting or

19  denying certification.

20         Section 7.  Section 414.029, Florida Statutes, is

21  amended to read:

22         414.029  WAGES Program Business Registry.--Each local

23  WAGES coalition created pursuant to s. 414.028 must establish

24  a business registry for business firms committed to assist in

25  the effort of finding jobs for WAGES Program participants.

26  Registered businesses agree to work with the coalition and to

27  hire WAGES Program participants to the maximum extent possible

28  consistent with the nature of their business.  Each quarter,

29  the coalition must publish a list of businesses registered as

30  a prerequisite for receiving a tax exemption provided under s.

31


                                  41

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




    ENROLLED

    2000 Legislature                                 CS for SB 388



  1  212.08(5)(b) or (7)(gg) (7)(ii) and the number of jobs each

  2  has provided for program participants.

  3         Section 8.  Subsection (8) of section 496.404, Florida

  4  Statutes, is amended to read:

  5         496.404  Definitions.--As used in ss. 496.401-496.424:

  6         (8)  "Educational institutions" means those

  7  institutions and organizations described in s.

  8  212.08(7)(cc)8.a. s. 212.08(7)(o)2.d.

  9         Section 9.  Paragraph (b) of subsection (3) of section

10  564.02, Florida Statutes, is amended to read:

11         564.02  License fees; vendors; manufacturers and

12  distributors.--

13         (3)

14         (b)  A bona fide religious order, monastery, church, or

15  religious body that has a tax-exempt status as a religious

16  organization as provided by s. 212.08(7)(m) or (p) s.

17  212.08(7)(o) may be licensed as a distributor under this

18  subsection if its sales and distribution are limited to wines

19  sold solely for religious or sacramental purposes to holders

20  of valid permits obtained under s. 564.03; and such religious

21  order, monastery, church, or religious body shall pay a state

22  license tax of $50 for each and every such distribution

23  establishment to be operated by the licensee.

24         Section 10.  This act shall take effect January 1,

25  2001.

26

27

28

29

30

31


                                  42