HOUSE AMENDMENT
    hbd-38                                        Bill No. HB 1961
    Amendment No. ___ (for drafter's use only)
                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW
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11  Representative(s) Wallace offered the following:
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13         Amendment (with title amendment) 
14         On page 1, between lines 25 and 26 of the bill
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16  insert:  
17         Section 2.  Paragraph (b) of subsection (5) of section
18  212.08, Florida Statutes, is amended to read:
19         212.08  Sales, rental, use, consumption, distribution,
20  and storage tax; specified exemptions.--The sale at retail,
21  the rental, the use, the consumption, the distribution, and
22  the storage to be used or consumed in this state of the
23  following are hereby specifically exempt from the tax imposed
24  by this chapter.
25         (5)  EXEMPTIONS; ACCOUNT OF USE.--
26         (b)  Machinery and equipment used to increase
27  productive output.--
28         1.  Industrial machinery and equipment purchased for
29  exclusive use by a new business in spaceport activities as
30  defined by s. 212.02 or for use in new businesses which
31  manufacture, process, compound, or produce for sale items of
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    File original & 9 copies    04/27/01                          
    hbd0002                     04:49 pm         01961-0047-494845

HOUSE AMENDMENT hbd-38 Bill No. HB 1961 Amendment No. ___ (for drafter's use only) 1 tangible personal property at fixed locations are exempt from 2 the tax imposed by this chapter upon an affirmative showing by 3 the taxpayer to the satisfaction of the department that such 4 items are used in a new business in this state. Such purchases 5 must be made prior to the date the business first begins its 6 productive operations, and delivery of the purchased item must 7 be made within 12 months of that date. 8 2.a. Industrial machinery and equipment purchased for 9 exclusive use by a an expanding facility that which is engaged 10 in spaceport activities as defined by s. 212.02 or for use in 11 expanding manufacturing facilities or plant units which 12 manufacture, process, compound, or produce for sale items of 13 tangible personal property at fixed locations in this state 14 are exempt from the any amount of tax imposed by this chapter 15 in excess of $40,000 $50,000 per calendar year upon an 16 affirmative showing by the taxpayer to the satisfaction of the 17 department that such items are used to increase the productive 18 output of such expanded facility or business by not less than 19 10 percent. 20 b. Notwithstanding any other provision of this 21 section, industrial machinery and equipment purchased for use 22 in expanding printing manufacturing facilities or plant units 23 that manufacture, process, compound, or produce for sale items 24 of tangible personal property at fixed locations in this state 25 are exempt from any amount of tax imposed by this chapter upon 26 an affirmative showing by the taxpayer to the satisfaction of 27 the department that such items are used to increase the 28 productive output of such an expanded business by not less 29 than 10 percent. 30 3.a. To receive an exemption provided by subparagraph 31 1. or subparagraph 2.b. 2., a qualifying business entity shall 2 File original & 9 copies 04/27/01 hbd0002 04:49 pm 01961-0047-494845
HOUSE AMENDMENT hbd-38 Bill No. HB 1961 Amendment No. ___ (for drafter's use only) 1 apply to the department for a temporary tax exemption permit. 2 The application shall state that a new business exemption or 3 expanded business exemption is being sought. Upon a tentative 4 affirmative determination by the department pursuant to 5 subparagraph 1. or subparagraph 2.b. 2., the department shall 6 issue such permit. 7 b. The applicant shall be required to maintain all 8 necessary books and records to support the exemption. Upon 9 completion of purchases of qualified machinery and equipment 10 pursuant to subparagraph 1. or subparagraph 2.b. 2., the 11 temporary tax permit shall be delivered to the department or 12 returned to the department by certified or registered mail. 13 c. If, in a subsequent audit conducted by the 14 department, it is determined that the machinery and equipment 15 purchased as exempt under subparagraph 1. or subparagraph 2.b. 16 2. did not meet the criteria mandated by this paragraph or if 17 commencement of production did not occur, the amount of taxes 18 exempted at the time of purchase shall immediately be due and 19 payable to the department by the business entity, together 20 with the appropriate interest and penalty, computed from the 21 date of purchase, in the manner prescribed by this chapter. 22 d. In the event a qualifying business entity fails to 23 apply for a temporary exemption permit or if the tentative 24 determination by the department required to obtain a temporary 25 exemption permit is negative, a qualifying business entity 26 shall receive the exemption provided in subparagraph 1. or 27 subparagraph 2.b. 2. through a refund of previously paid 28 taxes. No refund may be made for such taxes unless the 29 criteria mandated by subparagraph 1. or subparagraph 2.b. 2. 30 have been met and commencement of production has occurred. 31 4. The department shall promulgate rules governing 3 File original & 9 copies 04/27/01 hbd0002 04:49 pm 01961-0047-494845
HOUSE AMENDMENT hbd-38 Bill No. HB 1961 Amendment No. ___ (for drafter's use only) 1 applications for, issuance of, and the form of temporary tax 2 exemption permits; provisions for recapture of taxes; and the 3 manner and form of refund applications and may establish 4 guidelines as to the requisites for an affirmative showing of 5 increased productive output, commencement of production, and 6 qualification for exemption. 7 5. The exemptions provided in subparagraphs 1. and 2. 8 do not apply to machinery or equipment purchased or used by 9 electric utility companies, communications companies, oil or 10 gas exploration or production operations, publishing firms 11 that do not export at least 50 percent of their finished 12 product out of the state, any firm subject to regulation by 13 the Division of Hotels and Restaurants of the Department of 14 Business and Professional Regulation, or any firm which does 15 not manufacture, process, compound, or produce for sale items 16 of tangible personal property or which does not use such 17 machinery and equipment in spaceport activities as required by 18 this paragraph. The exemptions provided in subparagraphs 1. 19 and 2. shall apply to machinery and equipment purchased for 20 use in phosphate or other solid minerals severance, mining, or 21 processing operations only by way of a prospective credit 22 against taxes due under chapter 211 for taxes paid under this 23 chapter on such machinery and equipment. 24 6. For the purposes of the exemptions provided in 25 subparagraphs 1. and 2., these terms have the following 26 meanings: 27 a. "Industrial machinery and equipment" means "section 28 38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the 29 Internal Revenue Code, provided "industrial machinery and 30 equipment" shall be construed by regulations adopted by the 31 Department of Revenue to mean tangible property used as an 4 File original & 9 copies 04/27/01 hbd0002 04:49 pm 01961-0047-494845
HOUSE AMENDMENT hbd-38 Bill No. HB 1961 Amendment No. ___ (for drafter's use only) 1 integral part of spaceport activities or of the manufacturing, 2 processing, compounding, or producing for sale of items of 3 tangible personal property. Such term includes parts and 4 accessories only to the extent that the exemption thereof is 5 consistent with the provisions of this paragraph. 6 b. "Productive output" means the number of units 7 actually produced by a single plant or operation in a single 8 continuous 12-month period, irrespective of sales. Increases 9 in productive output shall be measured by the output for 12 10 continuous months immediately following the completion of 11 installation of such machinery or equipment over the output 12 for the 12 continuous months immediately preceding such 13 installation. However, if a different 12-month continuous 14 period of time would more accurately reflect the increase in 15 productive output of machinery and equipment purchased to 16 facilitate an expansion, the increase in productive output may 17 be measured during that 12-month continuous period of time if 18 such time period is mutually agreed upon by the Department of 19 Revenue and the expanding business prior to the commencement 20 of production; provided, however, in no case may such time 21 period begin later than 2 years following the completion of 22 installation of the new machinery and equipment. The units 23 used to measure productive output shall be physically 24 comparable between the two periods, irrespective of sales. 25 26 27 ================ T I T L E A M E N D M E N T =============== 28 And the title is amended as follows: 29 On page 1, line 9, after the semicolon 30 31 insert: 5 File original & 9 copies 04/27/01 hbd0002 04:49 pm 01961-0047-494845
HOUSE AMENDMENT hbd-38 Bill No. HB 1961 Amendment No. ___ (for drafter's use only) 1 amending s. 212.08, F.S.; revising the 2 exemption for industrial machinery and 3 equipment; broadening the application of the 4 exemption; reducing the maximum amount of the 5 tax which is imposed on such machinery and 6 equipment; 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6 File original & 9 copies 04/27/01 hbd0002 04:49 pm 01961-0047-494845