House Bill hb0163e1

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                                           HB 163, First Engrossed



  1                      A bill to be entitled

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

  3         other transactions; amending s. 212.04, F.S.;

  4         providing an exemption for admissions to

  5         tournament games played for the purpose of

  6         qualifying for a national collegiate

  7         championship game or played in a collegiate

  8         athletic conference championship tournament;

  9         amending s. 212.08, F.S.; providing that

10         publicly owned facilities within certain

11         municipalities at which a collegiate football

12         team is based may use the proceeds of sales

13         taxes generated by the facility for the purpose

14         of renovating the facility; providing for

15         reporting and remitting of such taxes;

16         providing effective dates.

17  

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

19  

20         Section 1.  Paragraph (a) of subsection (2) of section

21  212.04, Florida Statutes, is amended to read:

22         212.04  Admissions tax; rate, procedure, enforcement.--

23         (2)

24         (a)1.  No tax shall be levied on admissions to athletic

25  or other events sponsored by elementary schools, junior high

26  schools, middle schools, high schools, community colleges,

27  public or private colleges and universities, deaf and blind

28  schools, facilities of the youth services programs of the

29  Department of Children and Family Services, and state

30  correctional institutions when only student, faculty, or

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


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                                           HB 163, First Engrossed



  1  to admission to athletic events sponsored by an institution

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

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

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

  5  s. 240.533(3)(c).

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

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

  8  organizations. To receive this exemption, the sponsoring

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

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

11  1954, as amended.

12         b.  No tax shall be levied on admission charges to an

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

14  sports commission when held in a convention hall, exhibition

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

16  performing arts center, or publicly owned recreational

17  facility and when 100 percent of the risk of success or

18  failure lies with the sponsor of the event and 100 percent of

19  the funds at risk for the event belong to the sponsor, and

20  student or faculty talent is not exclusively used.  As used in

21  this sub-subparagraph, the terms "sports authority" and

22  "sports commission" mean a nonprofit organization that is

23  exempt from federal income tax under s. 501(c)(3) of the

24  Internal Revenue Code and that contracts with a county or

25  municipal government for the purpose of promoting and

26  attracting sports-tourism events to the community with which

27  it contracts.

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

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

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

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


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                                           HB 163, First Engrossed



  1  program or activity sponsored by, and under the jurisdiction

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

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

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

  5  National Football League championship game, on admissions to

  6  any semifinal game or championship game of a national

  7  collegiate tournament, or on admissions to a Major League

  8  Baseball all-star game, on admissions to tournament games that

  9  are played for the purposes of qualifying for the championship

10  game of a national collegiate tournament, or on admissions to

11  tournament games that are played in any collegiate athletic

12  end-of-season tournament that determines a collegiate athletic

13  conference champion.

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

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

16  athletic or recreational program is exempt when the

17  governmental entity by itself, or in conjunction with an

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

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

20  supervises, directs, and controls the athletic or recreational

21  program.

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

23  the extent provided in this subparagraph are admissions to

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

25  state which are sponsored by an organization that has received

26  a determination from the Internal Revenue Service that the

27  organization is exempt from federal income tax under s.

28  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

29  the organization actively participates in planning and

30  conducting the event, is responsible for the safety and

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


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                                           HB 163, First Engrossed



  1  sponsoring live theater, live opera, or live ballet

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

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

  4  promotion of arts education in the communities which it

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

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

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

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

  9  employs other persons as agents to provide services in

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

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

12  certificate of exemption for admissions to such events

13  sponsored in this state by the organization during the

14  immediately following state fiscal year. The application shall

15  state the total dollar amount of admissions receipts collected

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

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

18  immediately preceding the year in which the organization

19  applies for the exemption. Such organization shall receive the

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

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

22  all organizations applying for the exemption in such year;

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

24  organization exceed 6 percent of such admissions receipts

25  collected by the organization or its agents in the year

26  immediately preceding the year in which the organization

27  applies for the exemption. Each organization receiving the

28  exemption shall report each month to the department the total

29  admissions receipts collected from such events sponsored by

30  the organization during the preceding month and shall remit to

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


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                                           HB 163, First Engrossed



  1  reduced by any amount remaining under the exemption. Tickets

  2  for such events sold by such organizations shall not reflect

  3  the tax otherwise imposed under this section.

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

  5  are entry fees for participation in freshwater fishing

  6  tournaments.

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

  8  are participation or entry fees charged to participants in a

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

10  are charged a taxable admission to such event.

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

12  postseason collegiate football game sanctioned by the National

13  Collegiate Athletic Association.

14         Section 2.  Effective July 1, 2003, paragraph (a) of

15  subsection (2) of section 212.04, Florida Statutes, as amended

16  by chapter 2000-345, Laws of Florida, is amended to read:

17         212.04  Admissions tax; rate, procedure, enforcement.--

18         (2)

19         (a)1.  No tax shall be levied on admissions to athletic

20  or other events sponsored by elementary schools, junior high

21  schools, middle schools, high schools, community colleges,

22  public or private colleges and universities, deaf and blind

23  schools, facilities of the youth services programs of the

24  Department of Children and Family Services, and state

25  correctional institutions when only student, faculty, or

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

27  to admission to athletic events sponsored by an institution

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

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

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

31  s. 240.533(3)(c).


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                                           HB 163, First Engrossed



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

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

  3  organizations. To receive this exemption, the sponsoring

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

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

  6  1954, as amended.

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

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

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

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

11  program or activity sponsored by, and under the jurisdiction

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

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

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

15  National Football League championship game, on admissions to

16  any semifinal game or championship game of a national

17  collegiate tournament, or on admissions to a Major League

18  Baseball all-star game, on admissions to tournament games that

19  are played for the purposes of qualifying for the championship

20  game of a national collegiate tournament, or on admissions to

21  tournament games that are played in any collegiate athletic

22  end-of-season tournament that determines a collegiate athletic

23  conference champion.

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

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

26  athletic or recreational program is exempt when the

27  governmental entity by itself, or in conjunction with an

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

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

30  supervises, directs, and controls the athletic or recreational

31  program.


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                                           HB 163, First Engrossed



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

  2  the extent provided in this subparagraph are admissions to

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

  4  state which are sponsored by an organization that has received

  5  a determination from the Internal Revenue Service that the

  6  organization is exempt from federal income tax under s.

  7  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

  8  the organization actively participates in planning and

  9  conducting the event, is responsible for the safety and

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

11  sponsoring live theater, live opera, or live ballet

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

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

14  promotion of arts education in the communities which it

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

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

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

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

19  employs other persons as agents to provide services in

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

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

22  certificate of exemption for admissions to such events

23  sponsored in this state by the organization during the

24  immediately following state fiscal year. The application shall

25  state the total dollar amount of admissions receipts collected

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

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

28  immediately preceding the year in which the organization

29  applies for the exemption. Such organization shall receive the

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

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


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                                           HB 163, First Engrossed



  1  all organizations applying for the exemption in such year;

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

  3  organization exceed 6 percent of such admissions receipts

  4  collected by the organization or its agents in the year

  5  immediately preceding the year in which the organization

  6  applies for the exemption. Each organization receiving the

  7  exemption shall report each month to the department the total

  8  admissions receipts collected from such events sponsored by

  9  the organization during the preceding month and shall remit to

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

11  reduced by any amount remaining under the exemption. Tickets

12  for such events sold by such organizations shall not reflect

13  the tax otherwise imposed under this section.

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

15  are entry fees for participation in freshwater fishing

16  tournaments.

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

18  are participation or entry fees charged to participants in a

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

20  are charged a taxable admission to such event.

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

22  postseason collegiate football game sanctioned by the National

23  Collegiate Athletic Association.

24         Section 3.  Paragraph (q) is added to subsection (5) of

25  section 212.08, Florida Statutes, to read:

26         212.08  Sales, rental, use, consumption, distribution,

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

28  the rental, the use, the consumption, the distribution, and

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

30  following are hereby specifically exempt from the tax imposed

31  by this chapter.


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                                           HB 163, First Engrossed



  1         (5)  EXEMPTIONS; ACCOUNT OF USE.--

  2         (q)  Publicly owned football facility at which a

  3  college football team is based.--

  4         1.  Any publicly owned football facility within a

  5  municipality that has within the 6 years preceding the

  6  effective date of this paragraph been declared in a state of

  7  financial emergency pursuant to s. 218.503 and that has had a

  8  financial emergencies board established, regardless of whether

  9  the board is currently in existence, at which facility the

10  football team of a private or public university or college is

11  based, may retain the proceeds of sales taxes generated by the

12  facility and shall use these tax proceeds for the purpose of

13  renovating, expanding, and modernizing the facility.  For

14  purposes of this paragraph, "sales taxes generated by the

15  facility" means taxes on ticket sales for events located at

16  the facility, ticket surcharges imposed by the local

17  government for events held at the facility, merchandise sales

18  and concession sales on the premises of the facility, charges

19  for services at the facility, and rental of the facility.

20         2.  Concessionaires, merchandisers, and other persons

21  collecting tax at the facility shall report the sales to the

22  department, but shall remit the tax directly to the facility,

23  in a manner prescribed by rules promulgated by the department.

24         3.  This paragraph shall expire on January 1, 2032.

25         4.  In the event that a property or facility retaining

26  sales taxes pursuant to this act is transferred, or title is

27  otherwise conveyed to another party, the amount of sales taxes

28  retained shall be reimbursed in full to the state.

29         Section 4.  Except as otherwise provided herein, this

30  act shall take effect January 1, 2002.

31  


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