House Bill hb1791

    Florida House of Representatives - 2002                HB 1791

        By Representative Detert






  1                      A bill to be entitled

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

  3         other transactions; providing for future repeal

  4         of s. 212.08(7), F.S., relating to

  5         miscellaneous exemptions from the tax on sales,

  6         use, and other transactions; providing for

  7         review of repealed exemptions and specifying

  8         requirements for reinstatement; providing for

  9         future repeal of new or reinstated exemptions;

10         providing effective dates.

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

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14         Section 1.  Effective July 1, 2004, subsection (7) of

15  section 212.08, Florida Statutes, is repealed.

16         Section 2.  (1)  The Legislature shall review all sales

17  tax exemptions repealed by this act to determine if the

18  exemptions should be reinstated.  Any sales tax exemption

19  repealed by this act shall only be reinstated if the

20  preponderance of factual evidence indicates it clearly and

21  demonstrably satisfies the following criteria, if applicable:

22         (a)  The exemption is required by the United States

23  Constitution, federal law, or the State Constitution.

24         (b)  The exemption supports other significant statutory

25  goals set forth in Florida law.

26         (c)  The exemption provides a documented incentive

27  necessary to sustain quality job formation and high

28  value-added economic activity in the affected industry, group,

29  or activity.

30         (d)  The exemption is necessary to ensure that tax

31  parity exists among similarly situated commercial activities.

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    Florida House of Representatives - 2002                HB 1791

    724-137-02






  1         (e)  The exemption does not place small firms at a

  2  significant competitive disadvantage.

  3         (f)  The exemption does not impose excessive

  4  administrative costs on the public or private sector.

  5         (g)  The exemption does not contribute materially to

  6  the size of the annual uncollected tax liability or "tax gap."

  7         (h)  The exemption significantly enhances efficiency in

  8  the delivery of public goods and services.

  9         (i)  The exemption does not materially affect the

10  lower-income and middle-income residents of the state by

11  contributing to the regressivity of the sales tax.

12         (2)  Additionally, any exemption to be reinstated

13  shall, as a whole, clearly and demonstrably satisfy the

14  following criteria:

15         (a)  It must recognize the limited options available

16  under the constraints imposed by Article VII of the State

17  Constitution.

18         (b)  It must ensure that the social benefits accrued

19  through reinstatement of the exemption, expenditure, or other

20  provision are greater than the social benefits that would have

21  been realized through collection of the foregone tax revenues.

22         (c)  It must ensure that reinstatement of the

23  exemption, expenditure, or other provision does not materially

24  diminish the long-term ability of Florida's revenue structure

25  to reflect economic growth.

26         Section 3.  Any sales tax exemption reinstated or any

27  new sales tax exemption enacted after the date this act

28  becomes a law shall be repealed 5 years after its

29  reinstatement or enactment in order for the Legislature to

30  determine whether the reasons for reinstating or enacting the

31  exemption are still valid.

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    Florida House of Representatives - 2002                HB 1791

    724-137-02






  1         Section 4.  Except as otherwise provided herein, this

  2  act shall take effect upon becoming a law.

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  5                          HOUSE SUMMARY

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      Provides for future repeal of miscellaneous exemptions
  7    from the tax on sales, use, and other transactions,
      provides for legislative review of the repealed
  8    exemptions for purposes of possible reinstatement,
      establishes criteria for such review, and imposes a
  9    5-year sunset for any exemption reinstated or enacted in
      the future.
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CODING: Words stricken are deletions; words underlined are additions.