House Bill hb0163e2

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                                          HB 163, Second 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 shall use the proceeds of sales

13         taxes generated by the facility for the purpose

14         of renovating and expanding the facility;

15         providing for reporting and remitting of such

16         taxes; providing for expiration; providing for

17         reimbursement of retained sales taxes to the

18         state under certain conditions; providing

19         effective dates.

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

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

24  212.04, Florida Statutes, is amended to read:

25         212.04  Admissions tax; rate, procedure, enforcement.--

26         (2)

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

28  or other events sponsored by elementary schools, junior high

29  schools, middle schools, high schools, community colleges,

30  public or private colleges and universities, deaf and blind

31  schools, facilities of the youth services programs of the


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                                          HB 163, Second Engrossed



  1  Department of Children and Family Services, and state

  2  correctional institutions when only student, faculty, or

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

  4  to admission to athletic events sponsored by an institution

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

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

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

  8  s. 240.533(3)(c).

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

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

11  organizations. To receive this exemption, the sponsoring

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

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

14  1954, as amended.

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

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

17  sports commission when held in a convention hall, exhibition

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

19  performing arts center, or publicly owned recreational

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

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

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

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

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

25  "sports commission" mean a nonprofit organization that is

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

27  Internal Revenue Code and that contracts with a county or

28  municipal government for the purpose of promoting and

29  attracting sports-tourism events to the community with which

30  it contracts.

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                                          HB 163, Second Engrossed



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

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

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

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

  5  program or activity sponsored by, and under the jurisdiction

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

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

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

  9  National Football League championship game, on admissions to

10  any semifinal game or championship game of a national

11  collegiate tournament, or on admissions to a Major League

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

13  are played for the purposes of qualifying for the championship

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

15  tournament games that are played in any collegiate athletic

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

17  conference champion.

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

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

20  athletic or recreational program is exempt when the

21  governmental entity by itself, or in conjunction with an

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

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

24  supervises, directs, and controls the athletic or recreational

25  program.

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

27  the extent provided in this subparagraph are admissions to

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

29  state which are sponsored by an organization that has received

30  a determination from the Internal Revenue Service that the

31  organization is exempt from federal income tax under s.


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                                          HB 163, Second Engrossed



  1  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

  2  the organization actively participates in planning and

  3  conducting the event, is responsible for the safety and

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

  5  sponsoring live theater, live opera, or live ballet

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

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

  8  promotion of arts education in the communities which it

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

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

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

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

13  employs other persons as agents to provide services in

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

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

16  certificate of exemption for admissions to such events

17  sponsored in this state by the organization during the

18  immediately following state fiscal year. The application shall

19  state the total dollar amount of admissions receipts collected

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

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

22  immediately preceding the year in which the organization

23  applies for the exemption. Such organization shall receive the

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

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

26  all organizations applying for the exemption in such year;

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

28  organization exceed 6 percent of such admissions receipts

29  collected by the organization or its agents in the year

30  immediately preceding the year in which the organization

31  applies for the exemption. Each organization receiving the


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                                          HB 163, Second Engrossed



  1  exemption shall report each month to the department the total

  2  admissions receipts collected from such events sponsored by

  3  the organization during the preceding month and shall remit to

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

  5  reduced by any amount remaining under the exemption. Tickets

  6  for such events sold by such organizations shall not reflect

  7  the tax otherwise imposed under this section.

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

  9  are entry fees for participation in freshwater fishing

10  tournaments.

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

12  are participation or entry fees charged to participants in a

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

14  are charged a taxable admission to such event.

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

16  postseason collegiate football game sanctioned by the National

17  Collegiate Athletic Association.

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

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

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

21         212.04  Admissions tax; rate, procedure, enforcement.--

22         (2)

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

24  or other events sponsored by elementary schools, junior high

25  schools, middle schools, high schools, community colleges,

26  public or private colleges and universities, deaf and blind

27  schools, facilities of the youth services programs of the

28  Department of Children and Family Services, and state

29  correctional institutions when only student, faculty, or

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

31  to admission to athletic events sponsored by an institution


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                                          HB 163, Second Engrossed



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

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

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

  4  s. 240.533(3)(c).

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

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

  7  organizations. To receive this exemption, the sponsoring

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

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

10  1954, as amended.

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

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

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

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

15  program or activity sponsored by, and under the jurisdiction

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

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

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

19  National Football League championship game, on admissions to

20  any semifinal game or championship game of a national

21  collegiate tournament, or on admissions to a Major League

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

23  are played for the purposes of qualifying for the championship

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

25  tournament games that are played in any collegiate athletic

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

27  conference champion.

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

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

30  athletic or recreational program is exempt when the

31  governmental entity by itself, or in conjunction with an


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                                          HB 163, Second Engrossed



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

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

  3  supervises, directs, and controls the athletic or recreational

  4  program.

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

  6  the extent provided in this subparagraph are admissions to

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

  8  state which are sponsored by an organization that has received

  9  a determination from the Internal Revenue Service that the

10  organization is exempt from federal income tax under s.

11  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

12  the organization actively participates in planning and

13  conducting the event, is responsible for the safety and

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

15  sponsoring live theater, live opera, or live ballet

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

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

18  promotion of arts education in the communities which it

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

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

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

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

23  employs other persons as agents to provide services in

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

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

26  certificate of exemption for admissions to such events

27  sponsored in this state by the organization during the

28  immediately following state fiscal year. The application shall

29  state the total dollar amount of admissions receipts collected

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

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


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                                          HB 163, Second Engrossed



  1  immediately preceding the year in which the organization

  2  applies for the exemption. Such organization shall receive the

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

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

  5  all organizations applying for the exemption in such year;

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

  7  organization exceed 6 percent of such admissions receipts

  8  collected by the organization or its agents in the year

  9  immediately preceding the year in which the organization

10  applies for the exemption. Each organization receiving the

11  exemption shall report each month to the department the total

12  admissions receipts collected from such events sponsored by

13  the organization during the preceding month and shall remit to

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

15  reduced by any amount remaining under the exemption. Tickets

16  for such events sold by such organizations shall not reflect

17  the tax otherwise imposed under this section.

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

19  are entry fees for participation in freshwater fishing

20  tournaments.

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

22  are participation or entry fees charged to participants in a

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

24  are charged a taxable admission to such event.

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

26  postseason collegiate football game sanctioned by the National

27  Collegiate Athletic Association.

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

29  section 212.08, Florida Statutes, to read:

30         212.08  Sales, rental, use, consumption, distribution,

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


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                                          HB 163, Second Engrossed



  1  the rental, the use, the consumption, the distribution, and

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

  3  following are hereby specifically exempt from the tax imposed

  4  by this chapter.

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

  6         (q)  Publicly owned football facility at which a

  7  college football team is based.--

  8         1.  Any publicly owned football facility within a

  9  municipality that has within the 6 years preceding the

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

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

12  financial emergencies board established, regardless of whether

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

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

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

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

17  renovating, expanding, and modernizing the facility.  For

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

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

20  the facility, ticket surcharges imposed by the local

21  government for events held at the facility, merchandise sales

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

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

24         2.  Concessionaires, merchandisers, and other persons

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

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

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

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

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

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

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                                          HB 163, Second Engrossed



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

  2  retained shall be reimbursed in full to the state.

  3         Section 4.  Except as otherwise provided herein, this

  4  act shall take effect January 1, 2002.

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