Senate Bill sb1556

    Florida Senate - 2001                                  SB 1556

    By Senator Sullivan





    22-705-01

  1                      A bill to be entitled

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

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

  4         excluding certain pass-through charges on

  5         commercial real property leases from the tax;

  6         providing an effective date.

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

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

11  212.031, Florida Statutes, is amended to read:

12         212.031  Lease or rental of or license in real

13  property.--

14         (1)

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

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

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

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

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

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

21  occupy real property for any purpose and shall include base

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

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

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

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

26  operated to attract customers. As used in this paragraph, the

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

28  taxes, maintenance charges, or insurance premiums paid for the

29  benefit and protection of the landlord if the proportionate

30  share of each of those items is separately billed on an

31  invoice by the landlord as pass-through charges. Payments for

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    Florida Senate - 2001                                  SB 1556
    22-705-01




  1  intrinsically valuable personal property such as franchises,

  2  trademarks, service marks, logos, or patents are not subject

  3  to tax under this section.  In the case of a contractual

  4  arrangement that provides for both payments taxable as total

  5  rent or license fee and payments not subject to tax, the tax

  6  shall be based on a reasonable allocation of such payments and

  7  shall not apply to that portion which is for the nontaxable

  8  payments.

  9         Section 2.  This act shall take effect July 1, 2001.

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12                          SENATE SUMMARY

13    Provides that the total rent or license fee for a
      commercial real property lease which is subject to the
14    sales tax does not include pass-through charges
      consisting of a separately billed proportionate share of
15    ad valorem taxes, maintenance charges, and certain
      insurance premiums.
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CODING: Words stricken are deletions; words underlined are additions.