Senate Bill sb2302c1
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Florida Senate - 2002 CS for SB 2302
By the Committee on Finance and Taxation; and Senator Pruitt
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1 A bill to be entitled
2 An act relating to tax administration;
3 repealing s. 212.084(6), F.S.; eliminating
4 provisions for temporary exemption
5 certificates; repealing s. 212.08(7)(ccc),
6 F.S.; eliminating the specific sales tax
7 exemption for organizations providing crime
8 prevention, drunk-driving prevention, and
9 juvenile-delinquency-prevention services;
10 amending s. 212.08, F.S.; reinstating
11 retroactively the sales tax exemption for
12 parent-teacher organizations and parent-teacher
13 associations; eliminating obsolete provisions;
14 requiring a purchaser to file an affidavit
15 stating the exempt nature of a purchase with
16 the selling vendor instead of the Department of
17 Revenue; providing for retroactive application;
18 replacing the definition of the term "section
19 38 property" with an express definition of the
20 terms "industrial machinery and equipment" and
21 "motion picture and video equipment"; providing
22 intent and purpose; imposing certain
23 requirements, for purposes of taxation, on the
24 removal of a motor vehicle from this state;
25 providing residency requirements of corporate
26 officers, corporate stockholders, and partners
27 in a partnership relating to the taxable status
28 of sales of motor vehicles; amending s. 212.06,
29 F.S.; clarifying the definition of the term
30 "fixtures"; eliminating reference to the term
31 "trade fixture"; amending s. 212.08, F.S.;
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1 replacing the Interstate Commerce Commission
2 with the Surface Transportation Board as the
3 entity that licenses certain railroads as
4 common carriers; providing that, for a vessel,
5 railroad, or motor carrier engaged in
6 interstate or foreign commerce, sales tax
7 applies to taxable purchases in this state and
8 applies even if the vessel, railroad, or motor
9 carrier has operated for less than a fiscal
10 year; repealing s. 624.509(10), F.S., which
11 provides for an exemption from the insurance
12 premium tax for insurers who write monoline
13 flood insurance policies; amending s. 213.285,
14 F.S.; delaying the future repeal of the
15 certified audit project; amending ss. 213.053,
16 213.21, F.S.; conforming repeal dates; amending
17 s. 11, ch. 2000-165, Laws of Florida;
18 clarifying which provisions of ch. 213, F.S.,
19 apply to the collection of unemployment
20 contributions; amending s. 45.031, F.S.;
21 requiring the clerk of court to give notice to
22 the Department of Revenue if there is a surplus
23 resulting from the foreclosure of an
24 unemployment compensation tax lien; amending s.
25 69.041, F.S.; permitting the department to
26 participate in the disbursement of unemployment
27 compensation tax lien foreclosure funds;
28 amending s. 213.053, F.S.; providing for
29 confidentiality and information sharing;
30 creating s. 443.1315, F.S.; providing
31 definitions; providing for treatment of Indian
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1 tribes under the Unemployment Compensation Law;
2 providing that Indian tribes or tribal units
3 may elect to make payments in lieu of
4 contributions and providing requirements with
5 respect thereto; providing that such Indian
6 tribe or tribal unit may be required to file a
7 bond or deposit security at the discretion of
8 the director of the Agency for Workforce
9 Innovation; providing effect of failure of such
10 tribe or unit to make required payments;
11 providing requirements for notices; providing
12 responsibility for certain extended benefits;
13 providing for rules; providing for retroactive
14 application; amending ss. 443.163, 213.755,
15 F.S.; requiring certain employers to file
16 unemployment compensation reports and taxes
17 electronically; amending s. 213.21, F.S.;
18 allowing for the de novo review by a court of
19 penalty compromise determinations made by the
20 Department of Revenue; providing for an
21 automatic compromise of penalties under certain
22 circumstances; providing an exception to
23 confidentiality requirements; amending s.
24 212.07, F.S.; providing for a penalty structure
25 that limits liability for inadvertent
26 registration errors; encouraging voluntary
27 self-disclosure; amending s. 213.24, F.S.;
28 limiting the amount of automated refunds to the
29 cost of processing the refund; amending s.
30 55.202, F.S.; enabling a designee of the
31 Department of Revenue to enter lien information
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1 into the Secretary of State's database without
2 incurring a fee; amending ss. 213.235, 220.807,
3 F.S.; providing that the interest rate on tax
4 deficiencies shall be an adjusted prime rate
5 plus two percentage points; amending s.
6 213.255, F.S.; allowing interest to accrue on
7 certain refund claims on August 1 of the year
8 the tax was due; amending s. 681.117, F.S.;
9 allowing motor vehicle dealers to remit the
10 Lemon Law Fee for vehicles registered and
11 titled outside of Florida directly to the
12 Department of Revenue; amending s. 211.3103,
13 F.S.; clarifying that the county distributions
14 of the severance tax on phosphate rock are
15 calculated annually based on the production
16 information filed on the annual returns;
17 amending ss. 336.021, 336.025, F.S.; allowing
18 the imposition of local gas taxes to take
19 effect on January 1 and to be repealed on
20 December 31 of any year; amending s. 213.0535,
21 F.S.; allowing certain counties participating
22 in the RISE Program to share confidential
23 taxpayer information with other participating
24 counties; amending ss. 212.096, 212.098,
25 220.03, 220.181, 290.00677, F.S.; conforming
26 cross-references; clarifying definitions;
27 amending s. 212.031, F.S.; postponing the
28 effective date of provisions relating to
29 applicability of the tax on lease or rental of
30 certain property to property in publicly owned
31 facilities and used by concessionaires during
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1 events at those facilities; amending s. 212.04,
2 F.S.; postponing the effective date of
3 provisions relating to applicability of the tax
4 on admissions to certain events sponsored by
5 governmental entities, sports authorities, and
6 sports commissions; amending s. 212.02, F.S.,
7 excluding from the definition of "lease,"
8 "let," "rental," or "license" certain payments
9 made by a regional transmission organization to
10 an electric utility; amending s. 212.12, F.S.,
11 providing for an exception from additional tax,
12 interest, and penalties for dealers who
13 erroneously collect and remit sales tax by
14 rounding to the nearest whole cent; reenacting
15 and amending s. 206.9825(1)(b), F.S.,
16 authorizing the continuation of an aviation
17 fuel tax credit for certain wholesalers or
18 terminal suppliers; providing a revised
19 calculation for revenue sharing distributions
20 to municipalities; providing effective dates.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (6) of section 212.084, Florida
25 Statutes, is repealed.
26 Section 2. Effective July 1, 2002, subsection (7) of
27 section 212.08, Florida Statutes, is amended to read:
28 212.08 Sales, rental, use, consumption, distribution,
29 and storage tax; specified exemptions.--The sale at retail,
30 the rental, the use, the consumption, the distribution, and
31 the storage to be used or consumed in this state of the
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1 following are hereby specifically exempt from the tax imposed
2 by this chapter.
3 (7) MISCELLANEOUS EXEMPTIONS.--Exemptions provided to
4 any entity by this chapter do not inure to any transaction
5 that is otherwise taxable under this chapter when payment is
6 made by a representative or employee of the entity by any
7 means, including, but not limited to, cash, check, or credit
8 card, even when that representative or employee is
9 subsequently reimbursed by the entity. In addition, exemptions
10 provided to any entity by this subsection do not inure to any
11 transaction that is otherwise taxable under this chapter
12 unless the entity has obtained a sales tax exemption
13 certificate from the department or the entity obtains or
14 provides other documentation as required by the department.
15 Eligible purchases or leases made with such a certificate must
16 be in strict compliance with this subsection and departmental
17 rules, and any person who makes an exempt purchase with a
18 certificate that is not in strict compliance with this
19 subsection and the rules is liable for and must pay the tax.
20 The department may adopt rules to administer this subsection.
21 (a) Artificial commemorative flowers.--Exempt from the
22 tax imposed by this chapter is the sale of artificial
23 commemorative flowers by bona fide nationally chartered
24 veterans' organizations.
25 (b) Boiler fuels.--When purchased for use as a
26 combustible fuel, purchases of natural gas, residual oil,
27 recycled oil, waste oil, solid waste material, coal, sulfur,
28 wood, wood residues or wood bark used in an industrial
29 manufacturing, processing, compounding, or production process
30 at a fixed location in this state are exempt from the taxes
31 imposed by this chapter; however, such exemption shall not be
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1 allowed unless the purchaser signs a certificate stating that
2 the fuel to be exempted is for the exclusive use designated
3 herein. This exemption does not apply to the use of boiler
4 fuels that are not used in manufacturing, processing,
5 compounding, or producing items of tangible personal property
6 for sale, or to the use of boiler fuels used by any firm
7 subject to regulation by the Division of Hotels and
8 Restaurants of the Department of Business and Professional
9 Regulation.
10 (c) Crustacea bait.--Also exempt from the tax imposed
11 by this chapter is the purchase by commercial fishers of bait
12 intended solely for use in the entrapment of Callinectes
13 sapidus and Menippe mercenaria.
14 (d) Feeds.--Feeds for poultry, ostriches, and
15 livestock, including racehorses and dairy cows, are exempt.
16 (e) Film rentals.--Film rentals are exempt when an
17 admission is charged for viewing such film, and license fees
18 and direct charges for films, videotapes, and transcriptions
19 used by television or radio stations or networks are exempt.
20 (f) Flags.--Also exempt are sales of the flag of the
21 United States and the official state flag of Florida.
22 (g) Florida Retired Educators Association and its
23 local chapters.--Also exempt from payment of the tax imposed
24 by this chapter are purchases of office supplies, equipment,
25 and publications made by the Florida Retired Educators
26 Association and its local chapters.
27 (h) Guide dogs for the blind.--Also exempt are the
28 sale or rental of guide dogs for the blind, commonly referred
29 to as "seeing-eye dogs," and the sale of food or other items
30 for such guide dogs.
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1 1. The department shall issue a consumer's certificate
2 of exemption to any blind person who holds an identification
3 card as provided for in s. 413.091 and who either owns or
4 rents, or contemplates the ownership or rental of, a guide dog
5 for the blind. The consumer's certificate of exemption shall
6 be issued without charge and shall be of such size as to be
7 capable of being carried in a wallet or billfold.
8 2. The department shall make such rules concerning
9 items exempt from tax under the provisions of this paragraph
10 as may be necessary to provide that any person authorized to
11 have a consumer's certificate of exemption need only present
12 such a certificate at the time of paying for exempt goods and
13 shall not be required to pay any tax thereon.
14 (i) Hospital meals and rooms.--Also exempt from
15 payment of the tax imposed by this chapter on rentals and
16 meals are patients and inmates of any hospital or other
17 physical plant or facility designed and operated primarily for
18 the care of persons who are ill, aged, infirm, mentally or
19 physically incapacitated, or otherwise dependent on special
20 care or attention. Residents of a home for the aged are exempt
21 from payment of taxes on meals provided through the facility.
22 A home for the aged is defined as a facility that is licensed
23 or certified in part or in whole under chapter 400 or chapter
24 651, or that is financed by a mortgage loan made or insured by
25 the United States Department of Housing and Urban Development
26 under s. 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4),
27 s. 232, or s. 236 of the National Housing Act, or other such
28 similar facility designed and operated primarily for the care
29 of the aged.
30 (j) Household fuels.--Also exempt from payment of the
31 tax imposed by this chapter are sales of utilities to
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1 residential households or owners of residential models in this
2 state by utility companies who pay the gross receipts tax
3 imposed under s. 203.01, and sales of fuel to residential
4 households or owners of residential models, including oil,
5 kerosene, liquefied petroleum gas, coal, wood, and other fuel
6 products used in the household or residential model for the
7 purposes of heating, cooking, lighting, and refrigeration,
8 regardless of whether such sales of utilities and fuels are
9 separately metered and billed direct to the residents or are
10 metered and billed to the landlord. If any part of the utility
11 or fuel is used for a nonexempt purpose, the entire sale is
12 taxable. The landlord shall provide a separate meter for
13 nonexempt utility or fuel consumption. For the purposes of
14 this paragraph, licensed family day care homes shall also be
15 exempt.
16 (k) Meals provided by certain nonprofit
17 organizations.--There is exempt from the tax imposed by this
18 chapter the sale of prepared meals by a nonprofit volunteer
19 organization to handicapped, elderly, or indigent persons when
20 such meals are delivered as a charitable function by the
21 organization to such persons at their places of residence.
22 (l) Organizations providing special educational,
23 cultural, recreational, and social benefits to minors.--Also
24 exempt from the tax imposed by this chapter are sales or
25 leases to and sales of donated property by nonprofit
26 organizations which are incorporated pursuant to chapter 617
27 the primary purpose of which is providing activities that
28 contribute to the development of good character or good
29 sportsmanship, or to the educational or cultural development,
30 of minors. This exemption is extended only to that level of
31 the organization that has a salaried executive officer or an
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1 elected nonsalaried executive officer. For the purpose of this
2 paragraph, the term "donated property" means any property
3 transferred to such nonprofit organization for less than 50
4 percent of its fair market value.
5 (m) Religious institutions.--
6 1. There are exempt from the tax imposed by this
7 chapter transactions involving sales or leases directly to
8 religious institutions when used in carrying on their
9 customary nonprofit religious activities or sales or leases of
10 tangible personal property by religious institutions having an
11 established physical place for worship at which nonprofit
12 religious services and activities are regularly conducted and
13 carried on.
14 2. As used in this paragraph, the term "religious
15 institutions" means churches, synagogues, and established
16 physical places for worship at which nonprofit religious
17 services and activities are regularly conducted and carried
18 on. The term "religious institutions" includes nonprofit
19 corporations the sole purpose of which is to provide free
20 transportation services to church members, their families, and
21 other church attendees. The term "religious institutions" also
22 includes nonprofit state, nonprofit district, or other
23 nonprofit governing or administrative offices the function of
24 which is to assist or regulate the customary activities of
25 religious institutions. The term "religious institutions" also
26 includes any nonprofit corporation that is qualified as
27 nonprofit under s. 501(c)(3) of the Internal Revenue Code of
28 1986, as amended, and that owns and operates a Florida
29 television station, at least 90 percent of the programming of
30 which station consists of programs of a religious nature and
31 the financial support for which, exclusive of receipts for
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1 broadcasting from other nonprofit organizations, is
2 predominantly from contributions from the general public. The
3 term "religious institutions" also includes any nonprofit
4 corporation that is qualified as nonprofit under s. 501(c)(3)
5 of the Internal Revenue Code of 1986, as amended, the primary
6 activity of which is making and distributing audio recordings
7 of religious scriptures and teachings to blind or visually
8 impaired persons at no charge. The term "religious
9 institutions" also includes any nonprofit corporation that is
10 qualified as nonprofit under s. 501(c)(3) of the Internal
11 Revenue Code of 1986, as amended, the sole or primary function
12 of which is to provide, upon invitation, nonprofit religious
13 services, evangelistic services, religious education,
14 administrative assistance, or missionary assistance for a
15 church, synagogue, or established physical place of worship at
16 which nonprofit religious services and activities are
17 regularly conducted.
18 (n) Veterans' organizations.--
19 1. There are exempt from the tax imposed by this
20 chapter transactions involving sales or leases to qualified
21 veterans' organizations and their auxiliaries when used in
22 carrying on their customary veterans' organization activities.
23 2. As used in this paragraph, the term "veterans'
24 organizations" means nationally chartered or recognized
25 veterans' organizations, including, but not limited to,
26 Florida chapters of the Paralyzed Veterans of America,
27 Catholic War Veterans of the U.S.A., Jewish War Veterans of
28 the U.S.A., and the Disabled American Veterans, Department of
29 Florida, Inc., which hold current exemptions from federal
30 income tax under s. 501(c)(4) or (19) of the Internal Revenue
31 Code of 1986, as amended.
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1 (o) Schools, colleges, and universities.--Also exempt
2 from the tax imposed by this chapter are sales or leases to
3 state tax-supported schools, colleges, or universities.
4 (p) Section 501(c)(3) organizations.--Also exempt from
5 the tax imposed by this chapter are sales or leases to
6 organizations determined by the Internal Revenue Service to be
7 currently exempt from federal income tax pursuant to s.
8 501(c)(3) of the Internal Revenue Code of 1986, as amended,
9 when such leases or purchases are used in carrying on their
10 customary nonprofit activities.
11 (q) Resource recovery equipment.--Also exempt is
12 resource recovery equipment which is owned and operated by or
13 on behalf of any county or municipality, certified by the
14 Department of Environmental Protection under the provisions of
15 s. 403.715.
16 (r) School books and school lunches.--This exemption
17 applies to school books used in regularly prescribed courses
18 of study, and to school lunches served in public, parochial,
19 or nonprofit schools operated for and attended by pupils of
20 grades K through 12. Yearbooks, magazines, newspapers,
21 directories, bulletins, and similar publications distributed
22 by such educational institutions to their students are also
23 exempt. School books and food sold or served at community
24 colleges and other institutions of higher learning are
25 taxable.
26 (s) Tasting beverages.--Vinous and alcoholic beverages
27 provided by distributors or vendors for the purpose of "wine
28 tasting" and "spirituous beverage tasting" as contemplated
29 under the provisions of ss. 564.06 and 565.12, respectively,
30 are exempt from the tax imposed by this chapter.
31 (t) Boats temporarily docked in state.--
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1 1. Notwithstanding the provisions of chapter 328,
2 pertaining to the registration of vessels, a boat upon which
3 the state sales or use tax has not been paid is exempt from
4 the use tax under this chapter if it enters and remains in
5 this state for a period not to exceed a total of 20 days in
6 any calendar year calculated from the date of first dockage or
7 slippage at a facility, registered with the department, that
8 rents dockage or slippage space in this state. If a boat
9 brought into this state for use under this paragraph is placed
10 in a facility, registered with the department, for repairs,
11 alterations, refitting, or modifications and such repairs,
12 alterations, refitting, or modifications are supported by
13 written documentation, the 20-day period shall be tolled
14 during the time the boat is physically in the care, custody,
15 and control of the repair facility, including the time spent
16 on sea trials conducted by the facility. The 20-day time
17 period may be tolled only once within a calendar year when a
18 boat is placed for the first time that year in the physical
19 care, custody, and control of a registered repair facility;
20 however, the owner may request and the department may grant an
21 additional tolling of the 20-day period for purposes of
22 repairs that arise from a written guarantee given by the
23 registered repair facility, which guarantee covers only those
24 repairs or modifications made during the first tolled period.
25 Within 72 hours after the date upon which the registered
26 repair facility took possession of the boat, the facility must
27 have in its possession, on forms prescribed by the department,
28 an affidavit which states that the boat is under its care,
29 custody, and control and that the owner does not use the boat
30 while in the facility. Upon completion of the repairs,
31 alterations, refitting, or modifications, the registered
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1 repair facility must, within 72 hours after the date of
2 release, have in its possession a copy of the release form
3 which shows the date of release and any other information the
4 department requires. The repair facility shall maintain a log
5 that documents all alterations, additions, repairs, and sea
6 trials during the time the boat is under the care, custody,
7 and control of the facility. The affidavit shall be
8 maintained by the registered repair facility as part of its
9 records for as long as required by s. 213.35. When, within 6
10 months after the date of its purchase, a boat is brought into
11 this state under this paragraph, the 6-month period provided
12 in s. 212.05(1)(a)2. or s. 212.06(8) shall be tolled.
13 2. During the period of repairs, alterations,
14 refitting, or modifications and during the 20-day period
15 referred to in subparagraph 1., the boat may be listed for
16 sale, contracted for sale, or sold exclusively by a broker or
17 dealer registered with the department without incurring a use
18 tax under this chapter; however, the sales tax levied under
19 this chapter applies to such sale.
20 3. The mere storage of a boat at a registered repair
21 facility does not qualify as a tax-exempt use in this state.
22 4. As used in this paragraph, "registered repair
23 facility" means:
24 a. A full-service facility that:
25 (I) Is located on a navigable body of water;
26 (II) Has haulout capability such as a dry dock, travel
27 lift, railway, or similar equipment to service craft under the
28 care, custody, and control of the facility;
29 (III) Has adequate piers and storage facilities to
30 provide safe berthing of vessels in its care, custody, and
31 control; and
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1 (IV) Has necessary shops and equipment to provide
2 repair or warranty work on vessels under the care, custody,
3 and control of the facility;
4 b. A marina that:
5 (I) Is located on a navigable body of water;
6 (II) Has adequate piers and storage facilities to
7 provide safe berthing of vessels in its care, custody, and
8 control; and
9 (III) Has necessary shops and equipment to provide
10 repairs or warranty work on vessels; or
11 c. A shoreside facility that:
12 (I) Is located on a navigable body of water;
13 (II) Has adequate piers and storage facilities to
14 provide safe berthing of vessels in its care, custody, and
15 control; and
16 (III) Has necessary shops and equipment to provide
17 repairs or warranty work.
18 (u) Volunteer fire departments.--Also exempt are
19 firefighting and rescue service equipment and supplies
20 purchased by volunteer fire departments, duly chartered under
21 the Florida Statutes as corporations not for profit.
22 (v) Professional services.--
23 1. Also exempted are professional, insurance, or
24 personal service transactions that involve sales as
25 inconsequential elements for which no separate charges are
26 made.
27 2. The personal service transactions exempted pursuant
28 to subparagraph 1. do not exempt the sale of information
29 services involving the furnishing of printed, mimeographed, or
30 multigraphed matter, or matter duplicating written or printed
31 matter in any other manner, other than professional services
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1 and services of employees, agents, or other persons acting in
2 a representative or fiduciary capacity or information services
3 furnished to newspapers and radio and television stations. As
4 used in this subparagraph, the term "information services"
5 includes the services of collecting, compiling, or analyzing
6 information of any kind or nature and furnishing reports
7 thereof to other persons.
8 3. This exemption does not apply to any service
9 warranty transaction taxable under s. 212.0506.
10 4. This exemption does not apply to any service
11 transaction taxable under s. 212.05(1)(j).
12 (w) Certain newspaper, magazine, and newsletter
13 subscriptions, shoppers, and community newspapers.--Likewise
14 exempt are newspaper, magazine, and newsletter subscriptions
15 in which the product is delivered to the customer by mail.
16 Also exempt are free, circulated publications that are
17 published on a regular basis, the content of which is
18 primarily advertising, and that are distributed through the
19 mail, home delivery, or newsstands. The exemption for
20 newspaper, magazine, and newsletter subscriptions which is
21 provided in this paragraph applies only to subscriptions
22 entered into after March 1, 1997.
23 (x) Sporting equipment brought into the
24 state.--Sporting equipment brought into Florida, for a period
25 of not more than 4 months in any calendar year, used by an
26 athletic team or an individual athlete in a sporting event is
27 exempt from the use tax if such equipment is removed from the
28 state within 7 days after the completion of the event.
29 (y) Charter fishing vessels.--The charge for
30 chartering any boat or vessel, with the crew furnished, solely
31 for the purpose of fishing is exempt from the tax imposed
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1 under s. 212.04 or s. 212.05. This exemption does not apply
2 to any charge to enter or stay upon any "head-boat," party
3 boat, or other boat or vessel. Nothing in this paragraph
4 shall be construed to exempt any boat from sales or use tax
5 upon the purchase thereof except as provided in paragraph (t)
6 and s. 212.05.
7 (z) Vending machines sponsored by nonprofit or
8 charitable organizations.--Also exempt are food or drinks for
9 human consumption sold for 25 cents or less through a
10 coin-operated vending machine sponsored by a nonprofit
11 corporation qualified as nonprofit pursuant to s. 501(c)(3) or
12 (4) of the Internal Revenue Code of 1986, as amended.
13 (aa) Certain commercial vehicles.--Also exempt is the
14 sale, lease, or rental of a commercial motor vehicle as
15 defined in s. 207.002(2), when the following conditions are
16 met:
17 1. The sale, lease, or rental occurs between two
18 commonly owned and controlled corporations;
19 2. Such vehicle was titled and registered in this
20 state at the time of the sale, lease, or rental; and
21 3. Florida sales tax was paid on the acquisition of
22 such vehicle by the seller, lessor, or renter.
23 (bb) Community cemeteries.--Also exempt are purchases
24 by any nonprofit corporation that has qualified under s.
25 501(c)(13) of the Internal Revenue Code of 1986, as amended,
26 and is operated for the purpose of maintaining a cemetery that
27 was donated to the community by deed.
28 (cc) Works of art.--
29 1. Also exempt are works of art sold to or used by an
30 educational institution.
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1 2. This exemption also applies to the sale to or use
2 in this state of any work of art by any person if it was
3 purchased or imported exclusively for the purpose of being
4 donated to any educational institution, or loaned to and made
5 available for display by any educational institution, provided
6 that the term of the loan agreement is for at least 10 years.
7 3. The exemption provided by this paragraph for
8 donations is allowed only if the person who purchased the work
9 of art transfers title to the donated work of art to an
10 educational institution. Such transfer of title shall be
11 evidenced by an affidavit meeting requirements established by
12 rule to document entitlement to the exemption. Nothing in this
13 paragraph shall preclude a work of art donated to an
14 educational institution from remaining in the possession of
15 the donor or purchaser, as long as title to the work of art
16 lies with the educational institution.
17 4. A work of art is presumed to have been purchased in
18 or imported into this state exclusively for loan as provided
19 in subparagraph 2., if it is so loaned or placed in storage in
20 preparation for such a loan within 90 days after purchase or
21 importation, whichever is later; but a work of art is not
22 deemed to be placed in storage in preparation for loan for
23 purposes of this exemption if it is displayed at any place
24 other than an educational institution.
25 5. The exemptions provided by this paragraph are
26 allowed only if the person who purchased the work of art gives
27 to the vendor an affidavit meeting the requirements,
28 established by rule, to document entitlement to the exemption.
29 The person who purchased the work of art shall forward a copy
30 of such affidavit to the Department of Revenue at the time it
31 is issued to the vendor.
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1 6. The exemption for loans provided by subparagraph 2.
2 applies only for the period during which a work of art is in
3 the possession of the educational institution or is in storage
4 before transfer of possession to that institution; and when it
5 ceases to be so possessed or held, tax based upon the sales
6 price paid by the owner is payable, and the statute of
7 limitations provided in s. 95.091 shall begin to run at that
8 time. However, tax shall not become due if the work of art is
9 donated to an educational institution after the loan ceases.
10 7. Any educational institution to which a work of art
11 has been donated pursuant to this paragraph shall make
12 available to the department the title to the work of art and
13 any other relevant information. Any educational institution
14 which has received a work of art on loan pursuant to this
15 paragraph shall make available to the department information
16 relating to the work of art. Any educational institution that
17 transfers from its possession a work of art as defined by this
18 paragraph which has been loaned to it must notify the
19 Department of Revenue within 60 days after the transfer.
20 8. For purposes of the exemptions provided by this
21 paragraph, the term:
22 a. "Educational institutions" includes state
23 tax-supported, parochial, church, and nonprofit private
24 schools, colleges, or universities that conduct regular
25 classes and courses of study required for accreditation by or
26 membership in the Southern Association of Colleges and
27 Schools, the Florida Council of Independent Schools, or the
28 Florida Association of Christian Colleges and Schools, Inc.;
29 nonprofit private schools that conduct regular classes and
30 courses of study accepted for continuing education credit by a
31 board of the Division of Medical Quality Assurance of the
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1 Department of Health; or nonprofit libraries, art galleries,
2 performing arts centers that provide educational programs to
3 school children, which programs involve performances or other
4 educational activities at the performing arts center and serve
5 a minimum of 50,000 school children a year, and museums open
6 to the public.
7 b. "Work of art" includes pictorial representations,
8 sculpture, jewelry, antiques, stamp collections and coin
9 collections, and other tangible personal property, the value
10 of which is attributable predominantly to its artistic,
11 historical, political, cultural, or social importance.
12 (dd) Taxicab leases.--The lease of or license to use a
13 taxicab or taxicab-related equipment and services provided by
14 a taxicab company to an independent taxicab operator are
15 exempt, provided, however, the exemptions provided under this
16 paragraph only apply if sales or use tax has been paid on the
17 acquisition of the taxicab and its related equipment.
18 (ee) Aircraft repair and maintenance labor
19 charges.--There shall be exempt from the tax imposed by this
20 chapter all labor charges for the repair and maintenance of
21 aircraft of more than 15,000 pounds maximum certified takeoff
22 weight and rotary wing aircraft of more than 10,000 pounds
23 maximum certified takeoff weight. Except as otherwise provided
24 in this chapter, charges for parts and equipment furnished in
25 connection with such labor charges are taxable.
26 (ff) Certain electricity or steam uses.--
27 1. Subject to the provisions of subparagraph 4.,
28 charges for electricity or steam used to operate machinery and
29 equipment at a fixed location in this state when such
30 machinery and equipment is used to manufacture, process,
31 compound, produce, or prepare for shipment items of tangible
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1 personal property for sale, or to operate pollution control
2 equipment, recycling equipment, maintenance equipment, or
3 monitoring or control equipment used in such operations are
4 exempt to the extent provided in this paragraph. If 75 percent
5 or more of the electricity or steam used at the fixed location
6 is used to operate qualifying machinery or equipment, 100
7 percent of the charges for electricity or steam used at the
8 fixed location are exempt. If less than 75 percent but 50
9 percent or more of the electricity or steam used at the fixed
10 location is used to operate qualifying machinery or equipment,
11 50 percent of the charges for electricity or steam used at the
12 fixed location are exempt. If less than 50 percent of the
13 electricity or steam used at the fixed location is used to
14 operate qualifying machinery or equipment, none of the charges
15 for electricity or steam used at the fixed location are
16 exempt.
17 2. This exemption applies only to industries
18 classified under SIC Industry Major Group Numbers 10, 12, 13,
19 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,
20 35, 36, 37, 38, and 39 and Industry Group Number 212. As used
21 in this paragraph, "SIC" means those classifications contained
22 in the Standard Industrial Classification Manual, 1987, as
23 published by the Office of Management and Budget, Executive
24 Office of the President.
25 3. Possession by a seller of a written certification
26 by the purchaser, certifying the purchaser's entitlement to an
27 exemption permitted by this subsection, relieves the seller
28 from the responsibility of collecting the tax on the
29 nontaxable amounts, and the department shall look solely to
30 the purchaser for recovery of such tax if it determines that
31 the purchaser was not entitled to the exemption.
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1 4. Such exemption shall be applied as follows:
2 beginning July 1, 2000, 100 percent of the charges for such
3 electricity or steam shall be exempt.
4 5. Notwithstanding any other provision in this
5 paragraph to the contrary, in order to receive the exemption
6 provided in this paragraph a taxpayer must first register with
7 the WAGES Program Business Registry established by the local
8 WAGES coalition for the area in which the taxpayer is located.
9 Such registration establishes a commitment on the part of the
10 taxpayer to hire WAGES program participants to the maximum
11 extent possible consistent with the nature of their business.
12 (gg) Fair associations.--Also exempt from the tax
13 imposed by this chapter is the sale, use, lease, rental, or
14 grant of a license to use, made directly to or by a fair
15 association, of real or tangible personal property; any charge
16 made by a fair association, or its agents, for parking,
17 admissions, or for temporary parking of vehicles used for
18 sleeping quarters; rentals, subleases, and sublicenses of real
19 or tangible personal property between the owner of the central
20 amusement attraction and any owner of an amusement ride, as
21 those terms are used in ss. 616.15(1)(b) and 616.242(3)(a),
22 for the furnishing of amusement rides at a public fair or
23 exposition; and other transactions of a fair association which
24 are incurred directly by the fair association in the
25 financing, construction, and operation of a fair, exposition,
26 or other event or facility that is authorized by s. 616.08. As
27 used in this paragraph, the terms "fair association" and
28 "public fair or exposition" have the same meaning as those
29 terms are defined in s. 616.001. This exemption does not apply
30 to the sale of tangible personal property made by a fair
31 association through an agent or independent contractor; sales
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1 of admissions and tangible personal property by a
2 concessionaire, vendor, exhibitor, or licensee; or rentals and
3 subleases of tangible personal property or real property
4 between the owner of the central amusement attraction and a
5 concessionaire, vendor, exhibitor, or licensee, except for the
6 furnishing of amusement rides, which transactions are exempt.
7 (hh) Citizen support organizations.--Also exempt from
8 the tax imposed by this chapter are sales or leases to
9 nonprofit organizations that are incorporated under chapter
10 617 and that have been designated citizen support
11 organizations in support of state-funded environmental
12 programs or the management of state-owned lands in accordance
13 with s. 20.2551, or to support one or more state parks in
14 accordance with s. 258.015.
15 (ii) Florida Folk Festival.--There shall be exempt
16 from the tax imposed by this chapter income of a revenue
17 nature received from admissions to the Florida Folk Festival
18 held pursuant to s. 267.16 at the Stephen Foster State Folk
19 Culture Center, a unit of the state park system.
20 (jj) Solar energy systems.--Also exempt are solar
21 energy systems or any component thereof. The Florida Solar
22 Energy Center shall from time to time certify to the
23 department a list of equipment and requisite hardware
24 considered to be a solar energy system or a component thereof.
25 This exemption is repealed July 1, 2005.
26 (kk) Nonprofit cooperative hospital laundries.--Also
27 exempt from the tax imposed by this chapter are sales or
28 leases to nonprofit organizations that are incorporated under
29 chapter 617 and which are treated, for federal income tax
30 purposes, as cooperatives under subchapter T of the Internal
31 Revenue Code, whose sole purpose is to offer laundry supplies
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1 and services to their members, which members must all be
2 exempt from federal income tax pursuant to s. 501(c)(3) of the
3 Internal Revenue Code.
4 (ll) Complimentary meals.--Also exempt from the tax
5 imposed by this chapter are food or drinks that are furnished
6 as part of a packaged room rate by any person offering for
7 rent or lease any transient living accommodations as described
8 in s. 509.013(4)(a) which are licensed under part I of chapter
9 509 and which are subject to the tax under s. 212.03, if a
10 separate charge or specific amount for the food or drinks is
11 not shown. Such food or drinks are considered to be sold at
12 retail as part of the total charge for the transient living
13 accommodations. Moreover, the person offering the
14 accommodations is not considered to be the consumer of items
15 purchased in furnishing such food or drinks and may purchase
16 those items under conditions of a sale for resale.
17 (mm) Nonprofit corporation conducting the correctional
18 work programs.--Products sold pursuant to s. 946.515 by the
19 corporation organized pursuant to part II of chapter 946 are
20 exempt from the tax imposed by this chapter. This exemption
21 applies retroactively to July 1, 1983.
22 (nn) Parent-teacher organizations, parent-teacher
23 associations, and schools having grades K through 12.--
24 1. Sales or leases to parent-teacher organizations and
25 associations the purpose of which is to raise funds for
26 schools that teach grades K through 12 and that are associated
27 with schools having grades K through 12 are exempt from the
28 tax imposed by this chapter.
29 2. Parent-teacher organizations and associations
30 described in subparagraph 1. qualified as educational
31 institutions as defined by sub-subparagraph (cc)8.a.
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1 associated with schools having grades K through 12, and
2 schools having grades K through 12, may pay tax to their
3 suppliers on the cost price of school materials and supplies
4 purchased, rented, or leased for resale or rental to students
5 in grades K through 12, of items sold for fundraising
6 purposes, and of items sold through vending machines located
7 on the school premises, in lieu of collecting the tax imposed
8 by this chapter from the purchaser. This paragraph also
9 applies to food or beverages sold through vending machines
10 located in the student lunchroom or dining room of a school
11 having kindergarten through grade 12.
12 (oo) Mobile home lot improvements.--Items purchased by
13 developers for use in making improvements to a mobile home lot
14 owned by the developer may be purchased tax-exempt as a sale
15 for resale if made pursuant to a contract that requires the
16 developer to sell a mobile home to a purchaser, place the
17 mobile home on the lot, and make the improvements to the lot
18 for a single lump-sum price. The developer must collect and
19 remit sales tax on the entire lump-sum price.
20 (pp) Veterans Administration.--When a veteran of the
21 armed forces purchases an aircraft, boat, mobile home, motor
22 vehicle, or other vehicle from a dealer pursuant to the
23 provisions of 38 U.S.C. s. 3902(a), or any successor provision
24 of the United States Code, the amount that is paid directly to
25 the dealer by the Veterans Administration is not taxable.
26 However, any portion of the purchase price which is paid
27 directly to the dealer by the veteran is taxable.
28 (qq) Complimentary items.--There is exempt from the
29 tax imposed by this chapter:
30 1. Any food or drink, whether or not cooked or
31 prepared on the premises, provided without charge as a sample
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1 or for the convenience of customers by a dealer that primarily
2 sells food product items at retail.
3 2. Any item given to a customer as part of a price
4 guarantee plan related to point-of-sale errors by a dealer
5 that primarily sells food products at retail.
6
7 The exemptions in this paragraph do not apply to businesses
8 with the primary activity of serving prepared meals or
9 alcoholic beverages for immediate consumption.
10 (rr) Donated foods or beverages.--Any food or beverage
11 donated by a dealer that sells food products at retail to a
12 food bank or an organization that holds a current exemption
13 from federal corporate income tax pursuant to s. 501(c) of the
14 Internal Revenue Code of 1986, as amended, is exempt from the
15 tax imposed by this chapter.
16 (ss) Racing dogs.--The sale of a racing dog by its
17 owner is exempt if the owner is also the breeder of the
18 animal.
19 (tt) Equipment used in aircraft repair and
20 maintenance.--There shall be exempt from the tax imposed by
21 this chapter replacement engines, parts, and equipment used in
22 the repair or maintenance of aircraft of more than 15,000
23 pounds maximum certified takeoff weight and rotary wing
24 aircraft of more than 10,300 pounds maximum certified takeoff
25 weight, when such parts or equipment are installed on such
26 aircraft that is being repaired or maintained in this state.
27 (uu) Aircraft sales or leases.--The sale or lease of
28 an aircraft of more than 15,000 pounds maximum certified
29 takeoff weight for use by a common carrier is exempt from the
30 tax imposed by this chapter. As used in this paragraph,
31 "common carrier" means an airline operating under Federal
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1 Aviation Administration regulations contained in Title 14,
2 chapter I, part 121 or part 129 of the Code of Federal
3 Regulations.
4 (vv) Nonprofit water systems.--Sales or leases to a
5 not-for-profit corporation which holds a current exemption
6 from federal income tax under s. 501(c)(4) or (12) of the
7 Internal Revenue Code, as amended, are exempt from the tax
8 imposed by this chapter if the sole or primary function of the
9 corporation is to construct, maintain, or operate a water
10 system in this state.
11 (ww) Library cooperatives.--Sales or leases to library
12 cooperatives certified under s. 257.41(2) are exempt from the
13 tax imposed by this chapter.
14 (xx) Advertising agencies.--
15 1. As used in this paragraph, the term "advertising
16 agency" means any firm that is primarily engaged in the
17 business of providing advertising materials and services to
18 its clients.
19 2. The sale of advertising services by an advertising
20 agency to a client is exempt from the tax imposed by this
21 chapter. Also exempt from the tax imposed by this chapter are
22 items of tangible personal property such as photographic
23 negatives and positives, videos, films, galleys, mechanicals,
24 veloxes, illustrations, digital audiotapes, analog tapes,
25 printed advertisement copies, compact discs for the purpose of
26 recording, digital equipment, and artwork and the services
27 used to produce those items if the items are:
28 a. Sold to an advertising agency that is acting as an
29 agent for its clients pursuant to contract, and are created
30 for the performance of advertising services for the clients;
31
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1 b. Produced, fabricated, manufactured, or otherwise
2 created by an advertising agency for its clients, and are used
3 in the performance of advertising services for the clients; or
4 c. Sold by an advertising agency to its clients in the
5 performance of advertising services for the clients, whether
6 or not the charges for these items are marked up or separately
7 stated.
8
9 The exemption provided by this subparagraph does not apply
10 when tangible personal property such as film, paper, and
11 videotapes is purchased to create items such as photographic
12 negatives and positives, videos, films, galleys, mechanicals,
13 veloxes, illustrations, and artwork that are sold to an
14 advertising agency or produced in-house by an advertising
15 agency on behalf of its clients.
16 3. The items exempted from tax under subparagraph 2.
17 and the creative services used by an advertising agency to
18 design the advertising for promotional goods such as displays,
19 display containers, exhibits, newspaper inserts, brochures,
20 catalogues, direct mail letters or flats, shirts, hats, pens,
21 pencils, key chains, or other printed goods or materials are
22 not subject to tax. However, when such promotional goods are
23 produced or reproduced for distribution, tax applies to the
24 sales price charged to the client for such promotional goods.
25 4. For items purchased by an advertising agency and
26 exempt from tax under this paragraph, possession of an
27 exemption certificate from the advertising agency certifying
28 the agency's entitlement to exemption relieves the vendor of
29 the responsibility of collecting the tax on the sale of such
30 items to the advertising agency, and the department shall look
31 solely to the advertising agency for recovery of tax if it
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1 determines that the advertising agency was not entitled to the
2 exemption.
3 5. The exemptions provided by this paragraph apply
4 retroactively, except that all taxes that have been collected
5 must be remitted, and taxes that have been remitted before
6 July 1, 1999, on transactions that are subject to exemption
7 under this paragraph are not subject to refund.
8 6. The department may adopt rules that interpret or
9 define the provisions of these exemptions and provide examples
10 regarding the application of these exemptions.
11 (yy) Bullion.--The sale of gold, silver, or platinum
12 bullion, or any combination thereof, in a single transaction
13 is exempt if the sales price exceeds $500. The dealer must
14 maintain proper documentation, as prescribed by rule of the
15 department, to identify that portion of a transaction which
16 involves the sale of gold, silver, or platinum bullion and is
17 exempt under this paragraph.
18 (zz) Certain repair and labor charges.--
19 1. Subject to the provisions of subparagraphs 2. and
20 3., there is exempt from the tax imposed by this chapter all
21 labor charges for the repair of, and parts and materials used
22 in the repair of and incorporated into, industrial machinery
23 and equipment which is used for the manufacture, processing,
24 compounding, production, or preparation for shipping of items
25 of tangible personal property at a fixed location within this
26 state.
27 2. This exemption applies only to industries
28 classified under SIC Industry Major Group Numbers 10, 12, 13,
29 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,
30 35, 36, 37, 38, and 39 and Industry Group Number 212. As used
31 in this subparagraph, "SIC" means those classifications
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1 contained in the Standard Industrial Classification Manual,
2 1987, as published by the Office of Management and Budget,
3 Executive Office of the President.
4 3. This exemption shall be applied as follows:
5 a. Beginning July 1, 2000, 50 percent of such charges
6 for repair parts and labor shall be exempt.
7 b. Beginning July 1, 2001, 75 percent of such charges
8 for repair parts and labor shall be exempt.
9 c. Beginning July 1, 2002, 100 percent of such charges
10 for repair parts and labor shall be exempt.
11 (aaa) Film and other printing supplies.--Also exempt
12 are the following materials purchased, produced, or created by
13 businesses classified under SIC Industry Numbers 275, 276,
14 277, 278, or 279 for use in producing graphic matter for sale:
15 film, photographic paper, dyes used for embossing and
16 engraving, artwork, typography, lithographic plates, and
17 negatives. As used in this paragraph, "SIC" means those
18 classifications contained in the Standard Industrial
19 Classification Manual, 1987, as published by the Office of
20 Management and Budget, Executive Office of the President.
21 (bbb) People-mover systems.--People-mover systems, and
22 parts thereof, which are purchased or manufactured by
23 contractors employed either directly by or as agents for the
24 United States Government, the state, a county, a municipality,
25 a political subdivision of the state, or the public operator
26 of a public-use airport as defined by s. 332.004(14) are
27 exempt from the tax imposed by this chapter when the systems
28 or parts go into or become part of publicly owned facilities.
29 In the case of contractors who manufacture and install such
30 systems and parts, this exemption extends to the purchase of
31 component parts and all other manufacturing and fabrication
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1 costs. The department may provide a form to be used by
2 contractors to provide to suppliers of people-mover systems or
3 parts to certify the contractors' eligibility for the
4 exemption provided under this paragraph. As used in this
5 paragraph, "people-mover systems" includes wheeled passenger
6 vehicles and related control and power distribution systems
7 that are part of a transportation system for use by the
8 general public, regardless of whether such vehicles are
9 operator-controlled or driverless, self-propelled or propelled
10 by external power and control systems, or conducted on roads,
11 rails, guidebeams, or other permanent structures that are an
12 integral part of such transportation system. "Related control
13 and power distribution systems" includes any electrical or
14 electronic control or signaling equipment, but does not
15 include the embedded wiring, conduits, or cabling used to
16 transmit electrical or electronic signals among such control
17 equipment, power distribution equipment, signaling equipment,
18 and wheeled vehicles.
19 (ccc) Organizations providing crime prevention, drunk
20 driving prevention, or juvenile delinquency prevention
21 services.--Sales or leases to any nonprofit organization that
22 provides crime prevention services, drunk driving prevention
23 services, or juvenile delinquency prevention services that
24 benefit society as a whole are exempt from the tax imposed by
25 this chapter, if the organization holds a current exemption
26 from federal income tax under s. 501(c)(3) of the Internal
27 Revenue Code and the organization has as its sole or primary
28 purpose the provision of services that contribute to the
29 prevention of hardships caused by crime, drunk driving, or
30 juvenile delinquency.
31
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1 (ccc)(ddd) Florida Fire and Emergency Services
2 Foundation.--Sales or leases to the Florida Fire and Emergency
3 Services Foundation are exempt from the tax imposed by this
4 chapter.
5 (ddd)(eee) Railroad roadway materials.--Also exempt
6 from the tax imposed by this chapter are railroad roadway
7 materials used in the construction, repair, or maintenance of
8 railways. Railroad roadway materials shall include rails,
9 ties, ballasts, communication equipment, signal equipment,
10 power transmission equipment, and any other track materials.
11
12 Exemptions provided to any entity by this subsection shall not
13 inure to any transaction otherwise taxable under this chapter
14 when payment is made by a representative or employee of such
15 entity by any means, including, but not limited to, cash,
16 check, or credit card even when that representative or
17 employee is subsequently reimbursed by such entity.
18 Section 3. (1) The amendments to paragraphs (ff) and
19 (nn) of subsection (7) of section 212.08, Florida Statutes,
20 which are made by section 2 of this act apply retroactively to
21 July 1, 2000.
22 (2) No tax imposed by chapter 212, Florida Statutes,
23 on the transactions exempted by paragraph (nn) of subsection
24 (7) of section 212.08, Florida Statutes, by section 2 of this
25 act, and not actually paid or collected by a taxpayer before
26 the effective date of this act, shall be due from such
27 taxpayer. However, any tax actually paid or collected shall be
28 remitted to the Department of Revenue, and no refund shall be
29 due. Taxpayers must obtain a sales tax exemption certificate
30 from the department to secure the exemption granted by section
31 212.08(7)(nn)1., Florida Statutes.
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1 (3) The amendments to the introductory paragraph and
2 and to the final, flush-left passage of subsection (7) of
3 section 212.08, Florida Statutes, which are made by section 2
4 of this act are made to clarify rather than change existing
5 law, and these amendments apply retroactively to January 1,
6 2001.
7 Section 4. Effective upon this act becoming a law and
8 applying retroactively to July 1, 1996, paragraph (c) of
9 subsection (5) of section 212.08, Florida Statutes, is amended
10 to read:
11 212.08 Sales, rental, use, consumption, distribution,
12 and storage tax; specified exemptions.--The sale at retail,
13 the rental, the use, the consumption, the distribution, and
14 the storage to be used or consumed in this state of the
15 following are hereby specifically exempt from the tax imposed
16 by this chapter.
17 (5) EXEMPTIONS; ACCOUNT OF USE.--
18 (c) Machinery and equipment used in production of
19 electrical or steam energy.--
20 1. The purchase of machinery and equipment for use at
21 a fixed location which machinery and equipment are necessary
22 in the production of electrical or steam energy resulting from
23 the burning of boiler fuels other than residual oil is exempt
24 from the tax imposed by this chapter. Such electrical or
25 steam energy must be primarily for use in manufacturing,
26 processing, compounding, or producing for sale items of
27 tangible personal property in this state. Use of a de minimis
28 amount of residual fuel to facilitate the burning of
29 nonresidual fuel shall not reduce the exemption otherwise
30 available under this paragraph.
31
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1 2. In facilities where machinery and equipment are
2 necessary to burn both residual and nonresidual fuels, the
3 exemption shall be prorated. Such proration shall be based
4 upon the production of electrical or steam energy from
5 nonresidual fuels as a percentage of electrical or steam
6 energy from all fuels. If it is determined that 15 percent or
7 less of all electrical or steam energy generated was produced
8 by burning residual fuel, the full exemption shall apply.
9 Purchasers claiming a partial exemption shall obtain such
10 exemption by refund of taxes paid, or as otherwise provided in
11 the department's rules.
12 3. The department may adopt rules that provide for
13 implementation of this exemption. Purchasers of machinery and
14 equipment qualifying for the exemption provided in this
15 paragraph shall furnish the vendor department with an
16 affidavit stating that the item or items to be exempted are
17 for the use designated herein. Any person furnishing a false
18 affidavit to the vendor for the purpose of evading payment of
19 any tax imposed under this chapter shall be subject to the
20 penalty set forth in s. 212.085 and as otherwise provided by
21 law. Purchasers with self-accrual authority shall maintain all
22 documentation necessary to prove the exempt status of
23 purchases.
24 Section 5. Effective July 1, 2002, paragraphs (b),
25 (d), and (f) of subsection (5) of section 212.08, Florida
26 Statutes, are amended to read:
27 212.08 Sales, rental, use, consumption, distribution,
28 and storage tax; specified exemptions.--The sale at retail,
29 the rental, the use, the consumption, the distribution, and
30 the storage to be used or consumed in this state of the
31
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1 following are hereby specifically exempt from the tax imposed
2 by this chapter.
3 (5) EXEMPTIONS; ACCOUNT OF USE.--
4 (b) Machinery and equipment used to increase
5 productive output.--
6 1. Industrial machinery and equipment purchased for
7 exclusive use by a new business in spaceport activities as
8 defined by s. 212.02 or for use in new businesses which
9 manufacture, process, compound, or produce for sale items of
10 tangible personal property at fixed locations are exempt from
11 the tax imposed by this chapter upon an affirmative showing by
12 the taxpayer to the satisfaction of the department that such
13 items are used in a new business in this state. Such purchases
14 must be made prior to the date the business first begins its
15 productive operations, and delivery of the purchased item must
16 be made within 12 months of that date.
17 2.a. Industrial machinery and equipment purchased for
18 exclusive use by an expanding facility which is engaged in
19 spaceport activities as defined by s. 212.02 or for use in
20 expanding manufacturing facilities or plant units which
21 manufacture, process, compound, or produce for sale items of
22 tangible personal property at fixed locations in this state
23 are exempt from any amount of tax imposed by this chapter in
24 excess of $50,000 per calendar year upon an affirmative
25 showing by the taxpayer to the satisfaction of the department
26 that such items are used to increase the productive output of
27 such expanded facility or business by not less than 10
28 percent.
29 b. Notwithstanding any other provision of this
30 section, industrial machinery and equipment purchased for use
31 in expanding printing manufacturing facilities or plant units
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1 that manufacture, process, compound, or produce for sale items
2 of tangible personal property at fixed locations in this state
3 are exempt from any amount of tax imposed by this chapter upon
4 an affirmative showing by the taxpayer to the satisfaction of
5 the department that such items are used to increase the
6 productive output of such an expanded business by not less
7 than 10 percent.
8 3.a. To receive an exemption provided by subparagraph
9 1. or subparagraph 2., a qualifying business entity shall
10 apply to the department for a temporary tax exemption permit.
11 The application shall state that a new business exemption or
12 expanded business exemption is being sought. Upon a tentative
13 affirmative determination by the department pursuant to
14 subparagraph 1. or subparagraph 2., the department shall issue
15 such permit.
16 b. The applicant shall be required to maintain all
17 necessary books and records to support the exemption. Upon
18 completion of purchases of qualified machinery and equipment
19 pursuant to subparagraph 1. or subparagraph 2., the temporary
20 tax permit shall be delivered to the department or returned to
21 the department by certified or registered mail.
22 c. If, in a subsequent audit conducted by the
23 department, it is determined that the machinery and equipment
24 purchased as exempt under subparagraph 1. or subparagraph 2.
25 did not meet the criteria mandated by this paragraph or if
26 commencement of production did not occur, the amount of taxes
27 exempted at the time of purchase shall immediately be due and
28 payable to the department by the business entity, together
29 with the appropriate interest and penalty, computed from the
30 date of purchase, in the manner prescribed by this chapter.
31
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1 d. In the event a qualifying business entity fails to
2 apply for a temporary exemption permit or if the tentative
3 determination by the department required to obtain a temporary
4 exemption permit is negative, a qualifying business entity
5 shall receive the exemption provided in subparagraph 1. or
6 subparagraph 2. through a refund of previously paid taxes. No
7 refund may be made for such taxes unless the criteria mandated
8 by subparagraph 1. or subparagraph 2. have been met and
9 commencement of production has occurred.
10 4. The department shall adopt promulgate rules
11 governing applications for, issuance of, and the form of
12 temporary tax exemption permits; provisions for recapture of
13 taxes; and the manner and form of refund applications and may
14 establish guidelines as to the requisites for an affirmative
15 showing of increased productive output, commencement of
16 production, and qualification for exemption.
17 5. The exemptions provided in subparagraphs 1. and 2.
18 do not apply to machinery or equipment purchased or used by
19 electric utility companies, communications companies, oil or
20 gas exploration or production operations, publishing firms
21 that do not export at least 50 percent of their finished
22 product out of the state, any firm subject to regulation by
23 the Division of Hotels and Restaurants of the Department of
24 Business and Professional Regulation, or any firm which does
25 not manufacture, process, compound, or produce for sale items
26 of tangible personal property or which does not use such
27 machinery and equipment in spaceport activities as required by
28 this paragraph. The exemptions provided in subparagraphs 1.
29 and 2. shall apply to machinery and equipment purchased for
30 use in phosphate or other solid minerals severance, mining, or
31 processing operations only by way of a prospective credit
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1 against taxes due under chapter 211 for taxes paid under this
2 chapter on such machinery and equipment.
3 6. For the purposes of the exemptions provided in
4 subparagraphs 1. and 2., these terms have the following
5 meanings:
6 a. "Industrial machinery and equipment" means tangible
7 personal property or other property that has a depreciable
8 life of 3 years or more and that is used as an integral part
9 in the manufacturing, processing, compounding, or production
10 of tangible personal property for sale or is exclusively used
11 in spaceport activities. A building and its structural
12 components are not industrial machinery and equipment unless
13 the building or structural component is so closely related to
14 the industrial machinery and equipment that it houses or
15 supports that the building or structural component can be
16 expected to be replaced when the machinery and equipment
17 itself is replaced. Heating and air conditioning systems are
18 not industrial machinery and equipment, unless the sole
19 justification for their installation is to meet the
20 requirements of the production process, even though the system
21 may provide incidental comfort to employees or serve, to an
22 insubstantial degree, nonproduction activities. The "section
23 38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the
24 Internal Revenue Code, provided "industrial machinery and
25 equipment" shall be construed by regulations adopted by the
26 Department of Revenue to mean tangible property used as an
27 integral part of spaceport activities or of the manufacturing,
28 processing, compounding, or producing for sale of items of
29 tangible personal property. Such term includes parts and
30 accessories only to the extent that the exemption thereof is
31 consistent with the provisions of this paragraph.
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1 b. "Productive output" means the number of units
2 actually produced by a single plant or operation in a single
3 continuous 12-month period, irrespective of sales. Increases
4 in productive output shall be measured by the output for 12
5 continuous months immediately following the completion of
6 installation of such machinery or equipment over the output
7 for the 12 continuous months immediately preceding such
8 installation. However, if a different 12-month continuous
9 period of time would more accurately reflect the increase in
10 productive output of machinery and equipment purchased to
11 facilitate an expansion, the increase in productive output may
12 be measured during that 12-month continuous period of time if
13 such time period is mutually agreed upon by the Department of
14 Revenue and the expanding business prior to the commencement
15 of production; provided, however, in no case may such time
16 period begin later than 2 years following the completion of
17 installation of the new machinery and equipment. The units
18 used to measure productive output shall be physically
19 comparable between the two periods, irrespective of sales.
20 (d) Machinery and equipment used under federal
21 procurement contract.--
22 1. Industrial machinery and equipment purchased by an
23 expanding business which manufactures tangible personal
24 property pursuant to federal procurement regulations at fixed
25 locations in this state are partially exempt from the tax
26 imposed in this chapter on that portion of the tax which is in
27 excess of $100,000 per calendar year upon an affirmative
28 showing by the taxpayer to the satisfaction of the department
29 that such items are used to increase the implicit productive
30 output of the expanded business by not less than 10 percent.
31 The percentage of increase is measured as deflated implicit
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1 productive output for the calendar year during which the
2 installation of the machinery or equipment is completed or
3 during which commencement of production utilizing such items
4 is begun divided by the implicit productive output for the
5 preceding calendar year. In no case may the commencement of
6 production begin later than 2 years following completion of
7 installation of the machinery or equipment.
8 2. The amount of the exemption allowed shall equal the
9 taxes otherwise imposed by this chapter in excess of $100,000
10 per calendar year on qualifying industrial machinery or
11 equipment reduced by the percentage of gross receipts from
12 cost-reimbursement type contracts attributable to the plant or
13 operation to total gross receipts so attributable, accrued for
14 the year of completion or commencement.
15 3. The exemption provided by this paragraph shall
16 inure to the taxpayer only through refund of previously paid
17 taxes. Such refund shall be made within 30 days of formal
18 approval by the department of the taxpayer's application,
19 which application may be made on an annual basis following
20 installation of the machinery or equipment.
21 4. For the purposes of this paragraph, the term:
22 a. "Cost-reimbursement type contracts" has the same
23 meaning as in 32 C.F.R. s. 3-405.
24 b. "Deflated implicit productive output" means the
25 product of implicit productive output times the quotient of
26 the national defense implicit price deflator for the preceding
27 calendar year divided by the deflator for the year of
28 completion or commencement.
29 c. "Eligible costs" means the total direct and
30 indirect costs, as defined in 32 C.F.R. ss. 15-202 and 15-203,
31 excluding general and administrative costs, selling expenses,
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1 and profit, defined by the uniform cost-accounting standards
2 adopted by the Cost-Accounting Standards Board created
3 pursuant to 50 U.S.C. s. 2168.
4 d. "Implicit productive output" means the annual
5 eligible costs attributable to all contracts or subcontracts
6 subject to federal procurement regulations of the single plant
7 or operation at which the machinery or equipment is used.
8 e. "Industrial machinery and equipment" means tangible
9 personal property, or other property, that has a depreciable
10 life of 3 years or more, that qualifies as an eligible cost
11 under federal procurement regulations, and that is used as an
12 integral part of the process of production of tangible
13 personal property. A building and its structural components
14 are not industrial machinery and equipment unless the building
15 or structural component is so closely related to the
16 industrial machinery and equipment that it houses or supports
17 that the building or structural component can be expected to
18 be replaced when the machinery and equipment itself is
19 replaced. Heating and air conditioning systems are not
20 industrial machinery and equipment, unless the sole
21 justification for their installation is to meet the
22 requirements of the production process, even though the system
23 may provide incidental comfort to employees or serve, to an
24 insubstantial degree, nonproduction activities. "section 38
25 property" as defined in s. 48(a)(1)(A) and (B)(i) of the
26 Internal Revenue Code, provided such industrial machinery and
27 equipment qualified as an eligible cost under federal
28 procurement regulations and are used as an integral part of
29 the tangible personal property production process. The Such
30 term includes parts and accessories only to the extent that
31
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1 the exemption of such parts and accessories is consistent with
2 the provisions of this paragraph.
3 f. "National defense implicit price deflator" means
4 the national defense implicit price deflator for the gross
5 national product as determined by the Bureau of Economic
6 Analysis of the United States Department of Commerce.
7 5. The exclusions provided in subparagraph (b)5. apply
8 to this exemption. This exemption applies only to machinery
9 or equipment purchased pursuant to production contracts with
10 the United States Department of Defense and Armed Forces, the
11 National Aeronautics and Space Administration, and other
12 federal agencies for which the contracts are classified for
13 national security reasons. In no event shall the provisions
14 of this paragraph apply to any expanding business the increase
15 in productive output of which could be measured under the
16 provisions of sub-subparagraph (b)6.b. as physically
17 comparable between the two periods.
18 (f) Motion picture or video equipment used in motion
19 picture or television production activities and sound
20 recording equipment used in the production of master tapes and
21 master records.--
22 1. Motion picture or video equipment and sound
23 recording equipment purchased or leased for use in this state
24 in production activities is exempt from the tax imposed by
25 this chapter. The exemption provided by this paragraph shall
26 inure to the taxpayer upon presentation of the certificate of
27 exemption issued to the taxpayer under the provisions of s.
28 288.1258.
29 2. For the purpose of the exemption provided in
30 subparagraph 1.:
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1 a. "Motion picture or video equipment" and "sound
2 recording equipment" includes only tangible personal property,
3 or other property, that has a depreciable life of 3 years or
4 more and equipment meeting the definition of "section 38
5 property" as defined in s. 48(a)(1)(A) and (B)(i) of the
6 Internal Revenue Code that is used by the lessee or purchaser
7 exclusively as an integral part of production activities;
8 however, motion picture or video equipment and sound recording
9 equipment does not include supplies, tape, records, film, or
10 video tape used in productions or other similar items;
11 vehicles or vessels; or general office equipment not
12 specifically suited to production activities. In addition,
13 the term does not include equipment purchased or leased by
14 television or radio broadcasting or cable companies licensed
15 by the Federal Communications Commission. Furthermore, a
16 building and its structural components are not motion picture
17 or video equipment and sound recording equipment unless the
18 building or structural component is so closely related to the
19 motion picture or video equipment and sound recording
20 equipment that it houses or supports that the building or
21 structural component can be expected to be replaced when the
22 motion picture or video equipment and sound recording
23 equipment itself is replaced. Heating and air conditioning
24 systems are not motion picture or video equipment and sound
25 recording equipment, unless the sole justification for their
26 installation is to meet the requirements of the production
27 activities, even though the system may provide incidental
28 comfort to employees or serve, to an insubstantial degree,
29 nonproduction activities.
30 b. "Production activities" means activities directed
31 toward the preparation of a:
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1 (I) Master tape or master record embodying sound; or
2 (II) Motion picture or television production which is
3 produced for theatrical, commercial, advertising, or
4 educational purposes and utilizes live or animated actions or
5 a combination of live and animated actions. The motion picture
6 or television production shall be commercially produced for
7 sale or for showing on screens or broadcasting on television
8 and may be on film or video tape.
9 Section 6. (1) It is the intent of the Legislature to
10 provide guidance in tax matters which is current and useful.
11 Accordingly, the continued reference to a federal regulation
12 that no longer exists causes confusion and an undue burden on
13 persons affected by section 212.08, Florida Statutes.
14 (2) It is the purpose of the amendment to section
15 212.08(5)(b), (d), and (f), Florida Statutes, by this act to
16 replace specific references therein to "section 38 property"
17 as defined in s. 48(a)(1)(A) and (B)(i) of the Internal
18 Revenue Code with a general description of such property, and
19 such new description shall have the same meaning as the former
20 federal Internal Revenue Code regulation without limitation.
21 Section 7. Effective July 1, 2002, subsection (10) of
22 section 212.08, Florida Statutes, is amended to read:
23 212.08 Sales, rental, use, consumption, distribution,
24 and storage tax; specified exemptions.--The sale at retail,
25 the rental, the use, the consumption, the distribution, and
26 the storage to be used or consumed in this state of the
27 following are hereby specifically exempt from the tax imposed
28 by this chapter.
29 (10) PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT
30 OF ANOTHER STATE.--
31
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1 (a) The tax collected on the sale of a new or used
2 motor vehicle in this state to a resident of another state
3 shall be an amount equal to the sales tax which would be
4 imposed on such sale under the laws of the state of which the
5 purchaser is a resident, except that such tax shall not exceed
6 the tax that would otherwise be imposed under this chapter.
7 At the time of the sale, the purchaser shall execute a
8 notarized statement of his or her intent to license the
9 vehicle in the state of which the purchaser is a resident
10 within 45 days of the sale and of the fact of the payment to
11 the State of Florida of a sales tax in an amount equivalent to
12 the sales tax of his or her state of residence and shall
13 submit the statement to the appropriate sales tax collection
14 agency in his or her state of residence. Nothing in this
15 subsection shall be construed to require the removal of the
16 vehicle from this state following the filing of an intent to
17 license the vehicle in the purchaser's home state if the
18 purchaser licenses the vehicle in his or her home state within
19 45 days after the date of sale.
20 (b) Notwithstanding the partial exemption allowed in
21 paragraph (a), a vehicle is subject to this state's sales tax
22 at the applicable state sales tax rate plus authorized
23 surtaxes when the vehicle is purchased by a nonresident
24 corporation or partnership and:
25 1. An officer of the corporation is a resident of this
26 state;
27 2. A stockholder of the corporation who owns at least
28 10 percent of the corporation is a resident of this state; or
29 3. A partner in the partnership who has at least 10
30 percent ownership is a resident of this state.
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1 However, if the vehicle is removed from this state within 45
2 days after purchase and remains outside the state for a
3 minimum of 180 days, the vehicle may qualify for the partial
4 exemption allowed in paragraph (a) despite the residency of
5 owners or stockholders of the purchasing entity.
6 (c) Nothing herein shall require the payment of tax to
7 the State of Florida for assessments made prior to July 1,
8 2001, if the tax imposed by this section has been paid to the
9 state in which the vehicle was licensed and the department has
10 assessed a like amount of tax on the same transactions. This
11 provision shall apply retroactively to assessments that have
12 been protested prior to August 1, 1999, and have not been paid
13 on the date this act takes effect.
14 Section 8. Effective July 1, 2002, paragraph (b) of
15 subsection (14) of section 212.06, Florida Statutes, is
16 amended to read:
17 212.06 Sales, storage, use tax; collectible from
18 dealers; "dealer" defined; dealers to collect from purchasers;
19 legislative intent as to scope of tax.--
20 (14) For the purpose of determining whether a person
21 is improving real property, the term:
22 (b) "Fixtures" means items that are an accessory to a
23 building, other structure, or land and that do not lose their
24 identity as accessories when installed but that do become
25 permanently attached to realty. However, the term does not
26 include the following items, whether or not such items are
27 attached to real property in a permanent manner: trade
28 fixtures; property of a type that is required to be
29 registered, licensed, titled, or documented by this state or
30 by the United States Government, including, but not limited
31 to, mobile homes, except mobile homes assessed as real
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1 property; or industrial machinery or equipment. For purposes
2 of this paragraph, industrial machinery or equipment is not
3 limited to machinery and equipment used to manufacture,
4 process, compound, or produce tangible personal property. For
5 an item to be considered a fixture, it is not necessary that
6 the owner of the item also own the real property to which it
7 is attached.
8 Section 9. It is the intent of the Legislature that
9 the amendment to section 212.06(14)(b), Florida Statutes,
10 relating to trade fixtures and industrial machinery or
11 equipment, which is made by section 8 of this act, is remedial
12 in nature and merely clarifies existing law. However, section
13 212.06, Florida Statutes, does not authorize an assessment of
14 additional tax, penalty, or interest against any taxpayer that
15 complied with section 212.06(14)(b), Florida Statutes, as
16 amended by chapter 98-141, Laws of Florida, effective July 1,
17 1998, and a taxpayer is not entitled to a refund of taxes
18 previously paid due to the retroactive effect of this act.
19 Section 10. Paragraph (a) of subsection (8) and
20 subsection (9) of section 212.08, Florida Statutes, are
21 amended to read:
22 212.08 Sales, rental, use, consumption, distribution,
23 and storage tax; specified exemptions.--The sale at retail,
24 the rental, the use, the consumption, the distribution, and
25 the storage to be used or consumed in this state of the
26 following are hereby specifically exempt from the tax imposed
27 by this chapter.
28 (8) PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE
29 OR FOREIGN COMMERCE.--
30 (a) The sale or use of vessels and parts thereof used
31 to transport persons or property in interstate or foreign
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1 commerce, including commercial fishing vessels, is subject to
2 the taxes imposed in this chapter only to the extent provided
3 herein. The basis of the tax shall be the ratio of intrastate
4 mileage to interstate or foreign mileage traveled by the
5 carrier's vessels which were used in interstate or foreign
6 commerce and which had at least some Florida mileage during
7 the previous fiscal year. The ratio would be determined at
8 the close of the carrier's fiscal year. However, during the
9 fiscal year in which the vessel begins its initial operations
10 in this state, the vessel's mileage apportionment factor may
11 be determined on the basis of an estimated ratio of
12 anticipated miles in this state to anticipated total miles for
13 that year, and, subsequently, additional tax must be paid on
14 the vessel, or a refund may be applied for, on the basis of
15 the actual ratio of the vessel's miles in this state to its
16 total miles for that year. This ratio shall be applied each
17 month to the total Florida purchases of such vessels and parts
18 thereof which are used in Florida to establish that portion of
19 the total used and consumed in intrastate movement and subject
20 to the tax at the applicable rate. The basis for imposition
21 of any discretionary surtax shall be as set forth in s.
22 212.054. Items, appropriate to carry out the purposes for
23 which a vessel is designed or equipped and used, purchased by
24 the owner, operator, or agent of a vessel for use on board
25 such vessel shall be deemed to be parts of the vessel upon
26 which the same are used or consumed. Vessels and parts thereof
27 used to transport persons or property in interstate and
28 foreign commerce are hereby determined to be susceptible to a
29 distinct and separate classification for taxation under the
30 provisions of this chapter. Vessels and parts thereof used
31
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1 exclusively in intrastate commerce do not qualify for the
2 proration of tax.
3 (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
4 ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.--
5 (a) Railroads that which are licensed as common
6 carriers by the Surface Transportation Board Interstate
7 Commerce Commission and parts thereof used to transport
8 persons or property in interstate or foreign commerce are
9 subject to tax imposed in this chapter only to the extent
10 provided herein. The basis of the tax shall be the ratio of
11 intrastate mileage to interstate or foreign mileage traveled
12 by the carrier during the previous fiscal year of the carrier.
13 Such ratio is to be determined at the close of the carrier's
14 fiscal year. However, during the fiscal year in which the
15 railroad begins its initial operations in this state, the
16 railroad's mileage apportionment factor may be determined on
17 the basis of an estimated ratio of anticipated miles in this
18 state to anticipated total miles for that year, and,
19 subsequently, additional tax must be paid on the railroad, or
20 a refund may be applied for, on the basis of the actual ratio
21 of the railroad's miles in this state to its total miles for
22 that year. This ratio shall be applied each month to the
23 Florida total purchases of the railroad which are used in this
24 state to establish that portion of the total used and consumed
25 in intrastate movement and subject to tax under this chapter.
26 The basis for imposition of any discretionary surtax is set
27 forth in s. 212.054. Railroads that which are licensed as
28 common carriers by the Surface Transportation Board Interstate
29 Commerce Commission and parts thereof used to transport
30 persons or property in interstate and foreign commerce are
31 hereby determined to be susceptible to a distinct and separate
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1 classification for taxation under the provisions of this
2 chapter.
3 (b) Motor vehicles that which are engaged in
4 interstate commerce as common carriers, and parts thereof,
5 used to transport persons or property in interstate or foreign
6 commerce are subject to tax imposed in this chapter only to
7 the extent provided herein. The basis of the tax shall be the
8 ratio of intrastate mileage to interstate or foreign mileage
9 traveled by the carrier's motor vehicles which were used in
10 interstate or foreign commerce and which had at least some
11 Florida mileage during the previous fiscal year of the
12 carrier. Such ratio is to be determined at the close of the
13 carrier's fiscal year. However, during the fiscal year in
14 which the carrier begins its initial operations in this state,
15 the carrier's mileage apportionment factor may be determined
16 on the basis of an estimated ratio of anticipated miles in
17 this state to anticipated total miles for that year, and,
18 subsequently, additional tax must be paid on the carrier, or a
19 refund may be applied for, on the basis of the actual ratio of
20 the carrier's miles in this state to its total miles for that
21 year. This ratio shall be applied each month to the Florida
22 total purchases of such motor vehicles and parts thereof which
23 are used in this state to establish that portion of the total
24 used and consumed in intrastate movement and subject to tax
25 under this chapter. The basis for imposition of any
26 discretionary surtax is set forth in s. 212.054. Motor
27 vehicles that which are engaged in interstate commerce, and
28 parts thereof, used to transport persons or property in
29 interstate and foreign commerce are hereby determined to be
30 susceptible to a distinct and separate classification for
31 taxation under the provisions of this chapter. Motor vehicles
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1 and parts thereof used exclusively in intrastate commerce do
2 not qualify for the proration of tax. For purposes of this
3 paragraph, parts of a motor vehicle engaged in interstate
4 commerce include a separate tank not connected to the fuel
5 supply system of the motor vehicle into which diesel fuel is
6 placed to operate a refrigeration unit or other equipment.
7 Section 11. Effective July 1, 2002, subsection (10) of
8 section 624.509, Florida Statutes, is repealed.
9 Section 12. Subsection (2) of section 213.285, Florida
10 Statutes, is amended to read:
11 213.285 Certified audits.--
12 (2)(a) The department is authorized to initiate a
13 certified audits project to further enhance tax compliance
14 reviews performed by qualified practitioners and to encourage
15 taxpayers to hire qualified practitioners at their own expense
16 to review and report on their tax compliance. The nature of
17 certified audit work performed by qualified practitioners
18 shall be agreed-upon procedures in which the department is the
19 specified user of the resulting report.
20 (b) As an incentive for taxpayers to incur the costs
21 of a certified audit, the department shall compromise
22 penalties and abate interest due on any tax liabilities
23 revealed by a certified audit as provided in s. 213.21. This
24 authority to compromise penalties or abate interest shall not
25 apply to any liability for taxes that were collected by the
26 participating taxpayer but that were not remitted to the
27 department.
28 (c) The certified audits project is repealed on July
29 1, 2006 2002, or upon completion of the project as determined
30 by the department, whichever occurs first.
31
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1 Section 13. Subsections (1) and (3) and paragraph (n)
2 of subsection (7) of section 213.053, Florida Statutes, are
3 amended, and paragraph (w) is added to subsection (7) of that
4 section, to read:
5 213.053 Confidentiality and information sharing.--
6 (1)(a) The provisions of this section apply to s.
7 125.0104, county government; s. 125.0108, tourist impact tax;
8 chapter 175, municipal firefighters' pension trust funds;
9 chapter 185, municipal police officers' retirement trust
10 funds; chapter 198, estate taxes; chapter 199, intangible
11 personal property taxes; chapter 201, excise tax on documents;
12 chapter 203, gross receipts taxes; chapter 211, tax on
13 severance and production of minerals; chapter 212, tax on
14 sales, use, and other transactions; chapter 220, income tax
15 code; chapter 221, emergency excise tax; s. 252.372, emergency
16 management, preparedness, and assistance surcharge; s.
17 370.07(3), Apalachicola Bay oyster surcharge; chapter 376,
18 pollutant spill prevention and control; s. 403.718, waste tire
19 fees; s. 403.7185, lead-acid battery fees; s. 538.09,
20 registration of secondhand dealers; s. 538.25, registration of
21 secondary metals recyclers; ss. 624.501 and 624.509-624.515,
22 insurance code; s. 681.117, motor vehicle warranty
23 enforcement; and s. 896.102, reports of financial transactions
24 in trade or business.
25 (b) The provisions of this section also apply to
26 chapter 202, the Communications Services Tax Simplification
27 Law. This paragraph is subject to the Open Government Sunset
28 Review Act of 1995 in accordance with s. 119.15, and shall
29 stand repealed on October 2, 2006, unless reviewed and saved
30 from repeal through reenactment by the Legislature.
31
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1 (c) The provisions of this section, except paragraph
2 (7)(f), also apply to chapter 443 while the department is
3 performing tax collection services for the Agency for
4 Workforce Innovation pursuant to chapter 2000-165, Laws of
5 Florida; however, the exceptions to confidentiality set forth
6 in ss. 443.171(7) and 443.1715 remain in full force and
7 effect.
8 (3) The department shall permit a taxpayer, his or her
9 authorized representative, or the personal representative of
10 an estate to inspect the taxpayer's return and may furnish him
11 or her an abstract of such return. A taxpayer may authorize
12 the department in writing to divulge specific information
13 concerning the taxpayer's account. The department, while
14 performing unemployment-compensation tax-collection services
15 under a contract with the Agency for Workforce Innovation, may
16 release unemployment-tax-rate information to the agent of an
17 employer, which agent provides payroll services for more than
18 500 employers, pursuant to the terms of a memorandum of
19 understanding. The memorandum of understanding must state that
20 the agent affirms, subject to the criminal penalties contained
21 in ss. 443.171 and 443.1715, that the agent will retain the
22 confidentiality of the information, that the agent has in
23 effect a power of attorney from the employer which permits the
24 agent to obtain unemployment-tax-rate information, and that
25 the agent will provide to the department on request a copy of
26 the employer's power of attorney.
27 (7) Notwithstanding any other provision of this
28 section, the department may provide:
29 (n) Information contained in returns, reports,
30 accounts, or declarations to the Board of Accountancy in
31 connection with a disciplinary proceeding conducted pursuant
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1 to chapter 473 when related to a certified public accountant
2 participating in the certified audits project, or to the court
3 in connection with a civil proceeding brought by the
4 department relating to a claim for recovery of taxes due to
5 negligence on the part of a certified public accountant
6 participating in the certified audits project. In any
7 judicial proceeding brought by the department, upon motion for
8 protective order, the court shall limit disclosure of tax
9 information when necessary to effectuate the purposes of this
10 section. This paragraph is repealed on July 1, 2006 2002.
11 (w) Tax registration information to the Agency for
12 Workforce Innovation for use in the conduct of its official
13 duties, which information may not be redisclosed by the Agency
14 for Workforce Innovation.
15
16 Disclosure of information under this subsection shall be
17 pursuant to a written agreement between the executive director
18 and the agency. Such agencies, governmental or
19 nongovernmental, shall be bound by the same requirements of
20 confidentiality as the Department of Revenue. Breach of
21 confidentiality is a misdemeanor of the first degree,
22 punishable as provided by s. 775.082 or s. 775.083.
23 Section 14. Subsection (8) of section 213.21, Florida
24 Statutes, is amended to read:
25 213.21 Informal conferences; compromises.--
26 (8) In order to determine whether certified audits are
27 an effective tool in the overall state tax collection effort,
28 the executive director of the department or the executive
29 director's designee shall settle or compromise penalty
30 liabilities of taxpayers who participate in the certified
31 audits project. As further incentive for participating in the
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1 program, the department shall abate the first $25,000 of any
2 interest liability and 25 percent of any interest due in
3 excess of the first $25,000. A settlement or compromise of
4 penalties or interest pursuant to this subsection shall not be
5 subject to the provisions of paragraph (3)(a), except for the
6 requirement relating to confidentiality of records. The
7 department may consider an additional compromise of tax or
8 interest pursuant to the provisions of paragraph (3)(a). This
9 subsection does not apply to any liability related to taxes
10 collected but not remitted to the department. This subsection
11 is repealed on July 1, 2006 2002.
12 Section 15. Paragraph (f) of subsection (4) of section
13 11 of chapter 2000-165, Laws of Florida, is amended to read:
14 (4) Effective October 1, 2000, the following programs
15 and functions are transferred to the Agency for Workforce
16 Innovation:
17 (f) The Division of Unemployment Compensation is
18 transferred by a type two transfer, as defined in section
19 20.06(2), Florida Statutes, from the Department of Labor and
20 Employment Security to the Agency for Workforce Innovation.
21 The resources, data, records, property, and unexpended
22 balances of appropriations, allocations, and other funds
23 within the Office of the Secretary or any other division,
24 office, bureau, or unit within the Department of Labor and
25 Employment Security that support the Division of Unemployment
26 Compensation are transferred by a type two transfer, as
27 defined in section 20.06(2), Florida Statutes, from the
28 Department of Labor and Employment Security. By January 1,
29 2001, the Agency for Workforce Innovation shall enter into a
30 contract with the Department of Revenue which shall provide
31 for the Department of Revenue to provide unemployment tax
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1 collection services. The Department of Revenue, in
2 consultation with the Department of Labor and Employment
3 Security, shall determine the number of positions needed to
4 provide unemployment tax collection services within the
5 Department of Revenue. The number of unemployment tax
6 collection service positions the Department of Revenue
7 determines are needed shall not exceed the number of positions
8 that, prior to the contract, were authorized to the Department
9 of Labor and Employment Security for this purpose. Upon
10 entering into the contract with the Agency for Workforce
11 Innovation to provide unemployment tax collection services,
12 the number of required positions, as determined by the
13 Department of Revenue, shall be authorized within the
14 Department of Revenue. Beginning January 1, 2002, the Office
15 of Program Policy Analysis and Government Accountability shall
16 conduct a feasibility study regarding privatization of
17 unemployment tax collection services. A report on the
18 conclusions of this study shall be submitted to the Governor,
19 the President of the Senate, and the Speaker of the House of
20 Representatives. The Department of Revenue is considered to be
21 administering a revenue law of this state when it provides
22 unemployment compensation tax collection services pursuant to
23 its contract with the Agency for Workforce Innovation. The
24 following provisions of chapter 213, Florida Statutes, apply
25 to the collection of unemployment contributions by the
26 Department of Revenue unless prohibited by federal law: ss.
27 213.018, 213.025, 213.051, 213.053, 213.055, 213.071, 213.10,
28 213.2201, 213.23, 213.24(2), 213.27, 213.28, 213.285, 213.37,
29 213.50, 213.67, 213.69, 213.73, 213.733, 213.74, and 213.757.
30 Section 16. Subsection (7) of section 45.031, Florida
31 Statutes, is amended to read:
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1 45.031 Judicial sales procedure.--In any sale of real
2 or personal property under an order or judgment, the following
3 procedure may be followed as an alternative to any other sale
4 procedure if so ordered by the court:
5 (7) DISBURSEMENTS OF PROCEEDS.--On filing a
6 certificate of title the clerk shall disburse the proceeds of
7 the sale in accordance with the order or final judgment, and
8 shall file a report of such disbursements and serve a copy of
9 it on each party not in default, and on the Department of
10 Revenue, if it was named as a defendant in the action or if
11 the Agency for Workforce Innovation or the Florida Department
12 of Labor and Employment Security was named as a defendant
13 while the Department of Revenue was performing unemployment
14 compensation tax collection services pursuant to a contract
15 with the Agency for Workforce Innovation, in substantially the
16 following form:
17
18 (Caption of Action)
19
20 CERTIFICATE OF DISBURSEMENTS
21
22 The undersigned clerk of the court certifies that he or
23 she disbursed the proceeds received from the sale of the
24 property as provided in the order or final judgment to the
25 persons and in the amounts as follows:
26 Name Amount
27
28 Total
29
30 WITNESS my hand and the seal of the court on ....,
31 ...(year)....
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1 ...(Clerk)...
2 By ...(Deputy Clerk)...
3
4 If no objections to the report are served within 10 days after
5 it is filed, the disbursements by the clerk shall stand
6 approved as reported. If timely objections to the report are
7 served, they shall be heard by the court. Service of
8 objections to the report does not affect or cloud the title of
9 the purchaser of the property in any manner.
10 Section 17. Paragraph (a) of subsection (4) of section
11 69.041, Florida Statutes, is amended to read:
12 69.041 State named party; lien foreclosure, suit to
13 quiet title.--
14 (4)(a) The Department of Revenue has the right to
15 participate in the disbursement of funds remaining in the
16 registry of the court after distribution pursuant to s.
17 45.031(7). The department shall participate in accordance with
18 applicable procedures in any mortgage foreclosure action in
19 which the department has a duly filed tax warrant, or
20 interests under a lien arising from a judgment, order, or
21 decree for support, as defined in s. 409.2554, or interest in
22 an unemployment compensation tax lien pursuant to a contract
23 with the Agency for Workforce Innovation, against the subject
24 property and with the same priority, regardless of whether a
25 default against the department, the Agency for Workforce
26 Innovation, or the Department of Labor and Employment Security
27 has been entered for failure to file an answer or other
28 responsive pleading.
29 Section 18. Effective upon this act becoming a law and
30 applying retroactively to December 21, 2000, section 443.1315,
31 Florida Statutes, is created to read:
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1 443.1315 Treatment of Indian tribes.--
2 (1) As used in this section, the term:
3 (a) "Employer" includes any Indian tribe for which
4 service in employment as defined by this chapter is performed.
5 (b) "Employment" includes service performed in the
6 employ of an Indian tribe, as defined by s. 3306(u) of the
7 Federal Unemployment Tax Act, provided such service is
8 excluded from "employment," as defined by that act, solely by
9 reason of s. 3306(c)(7) of said act and is not otherwise
10 excluded from "employment" under this chapter. For purposes of
11 this section, the exclusions from employment under s.
12 443.036(21)(d) shall be applicable to services performed in
13 the employ of an Indian tribe.
14 (2) Benefits based on service in employment, as
15 defined by this section, shall be payable in the same amount,
16 on the same terms, and subject to the same conditions as
17 benefits payable on the basis of other service subject to this
18 chapter.
19 (3)(a) Indian tribes or tribal units, including
20 subdivisions, subsidiaries, or business enterprises wholly
21 owned by such Indian tribes, subject to this chapter shall pay
22 contributions under the same terms and conditions as all other
23 subject employers, unless they elect to pay into the
24 Unemployment Compensation Trust Fund amounts equal to the
25 amount of benefits attributable to service in the employ of
26 the Indian tribe.
27 (b) Indian tribes electing to make payments in lieu of
28 contributions must make such election in the same manner and
29 under the same conditions as provided by s. 443.131 for state
30 and local governments and nonprofit organizations subject to
31 this chapter. Indian tribes shall determine if reimbursement
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1 for benefits paid will be elected by the tribe as a whole, by
2 individual tribal units, or by combinations of individual
3 tribal units.
4 (c) Indian tribes or tribal units shall be billed for
5 the full amount of benefits attributable to service in the
6 employ of the Indian tribe or tribal unit on the same schedule
7 as other employing units that have elected to make payments in
8 lieu of contributions.
9 (d) At the discretion of the director of the Agency
10 for Workforce Innovation or his or her designee, any Indian
11 tribe or tribal unit that elects to become liable for payments
12 in lieu of contributions shall be required, within 90 days
13 after the effective date of its election, to:
14 1. Execute and file with the director or his or her
15 designee a surety bond approved by the director or his or her
16 designee; or
17 2. Deposit with the director or his or her designee
18 money or securities on the same basis as other employers with
19 the same election option.
20 (4)(a)1. Failure of the Indian tribe or tribal unit to
21 make required payments, including assessments of interest and
22 penalty, within 90 days after receipt of the bill, will cause
23 the Indian tribe to lose the option to make payments in lieu
24 of contributions, as described in subsection (3), for the
25 following tax year, unless payment in full is received before
26 contribution rates for the next tax year are computed.
27 2. Any Indian tribe that loses the option to make
28 payments in lieu of contributions due to late payment or
29 nonpayment, as described in subparagraph 1., shall have such
30 option reinstated if, after a period of 1 year, all
31 contributions have been made timely, provided no
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1 contributions, payments in lieu of contributions for benefits
2 paid, penalties, or interest remain outstanding.
3 (b)1. Failure of the Indian tribe or any tribal unit
4 thereof to make required payments, including assessments of
5 interest and penalty, after all collection activities deemed
6 necessary by the director of the Agency for Workforce
7 Innovation or his or her designee have been exhausted, will
8 cause services performed for such tribe to not be treated as
9 "employment" for purposes of paragraph (1)(b).
10 2. The director or his or her designee may determine
11 that any Indian tribe that loses coverage under subparagraph
12 1. may have services performed for such tribe again included
13 as "employment" for purposes of paragraph (1)(b) if all
14 contributions, payments in lieu of contributions, penalties,
15 and interest have been paid.
16 (c) If an Indian tribe fails to make payments required
17 under this section, including assessments of interest and
18 penalty, within 90 days after a final notice of delinquency,
19 the director of the Agency for Workforce Innovation shall
20 immediately notify the United States Internal Revenue Service
21 and the United States Department of Labor.
22 (5) Notices of payment and reporting delinquency to
23 Indian tribes or their tribal units shall include information
24 that failure to make full payment within the prescribed
25 timeframe:
26 (a) Will cause the Indian tribe to be liable for taxes
27 under the Federal Unemployment Tax Act.
28 (b) Will cause the Indian tribe to lose the option to
29 make payments in lieu of contributions.
30 (c) Could cause the Indian tribe to be excepted from
31 the definition of "employer," as provided in paragraph (1)(a),
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1 and services in the employ of the Indian tribe, as provided in
2 paragraph (1)(b), to be excepted from "employment."
3 (6) Extended benefits paid that are attributable to
4 service in the employ of an Indian tribe and not reimbursed by
5 the Federal Government shall be financed in their entirety by
6 such Indian tribe.
7 (7) The Agency for Workforce Innovation shall adopt
8 any rules necessary to administer this section.
9 Section 19. Effective January 1, 2003, section
10 443.163, Florida Statutes, is amended to read:
11 443.163 Electronic reporting and remitting of taxes.--
12 (1) An employer may choose to file any report and
13 remit any taxes required by this chapter by electronic means
14 in a form initiated through an electronic data interchange
15 using an advanced encrypted transmission by means of the
16 Internet or other suitable transmission. The Agency for
17 Workforce Innovation or its designee division shall prescribe
18 by rule the format and instructions necessary for such filing
19 of reports and remitting of taxes to ensure a full collection
20 of contributions due. The acceptable method of transfer, the
21 method, form, and content of the electronic means data
22 interchange, and the method means, if any, by which the
23 employer will be provided with an acknowledgment, shall be
24 prescribed by the agency or its designee division. However,
25 any employer who employed 10 or more employees in any quarter
26 during the preceding state fiscal year, or any person that
27 prepared and reported for 5 or more employers in the preceding
28 state fiscal year, must submit the Employers Quarterly Reports
29 (UCT-6) for the current calendar year and remit the taxes due
30 by electronic means approved by the agency or its designee.
31
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1 (2) Any employer or person who fails to file an
2 Employers Quarterly Report (UCT-6) by electronic means
3 required by law is liable for a penalty of 10 percent of the
4 tax due, but not less than $10 for each report, which is in
5 addition to any other penalty provided by this chapter which
6 may be applicable, unless the employer or person has first
7 obtained a waiver for such requirement from the agency or its
8 designee. Any employer or person who fails to remit tax by
9 electronic means as required by law is liable for a penalty of
10 $10 for each remittance submitted, which is in addition to any
11 other penalty provided by this chapter which may be
12 applicable.
13 (3) The agency or its designee may waive the
14 requirement to file an Employers Quarterly Report (UCT-6) by
15 electronic means for employers or persons that are unable to
16 comply despite good-faith efforts or due to circumstances
17 beyond the employer's or person's reasonable control.
18 (a) As prescribed by the agency or its designee,
19 grounds for approving the waiver include, but are not limited
20 to, circumstances in which the employer or person does not:
21 1. Currently file information or data electronically
22 with any business or government agency; or
23 2. Have a compatible computer that meets or exceeds
24 the standards prescribed by the agency or its designee.
25 (b) The agency or its designee shall accept other
26 reasons for requesting a waiver from the requirement to submit
27 the Employers Quarterly Report (UCT-6) by electronic means,
28 including, but not limited to:
29 1. The employer or person needs additional time to
30 program his or her computer;
31
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1 2. That complying with this requirement causes the
2 employer or person financial hardship; or
3 3. That complying with this requirement conflicts with
4 the employer's business procedures.
5 (c) The agency or its designee may establish by rule
6 the length of time a waiver is valid and may determine whether
7 subsequent waivers will be authorized, based on the provisions
8 of this subsection; however, the agency or its designee shall
9 only grant a waiver from electronic reporting if the employer
10 or person timely files the Employers Quarterly Report (UCT-6)
11 by telefile, unless the employer wage detail exceeds the
12 agency's or its designee's telefile system capabilities.
13 (4) For purposes of this section, the term "electronic
14 means" includes, but is not limited to, electronic data
15 interchange; electronic fund transfer; and use of the
16 Internet, telephone, or other technology specified by the
17 agency or its designee.
18 Section 20. Effective January 1, 2003, section
19 213.755, Florida Statutes, is amended to read:
20 213.755 Filing of returns and payment of taxes by
21 electronic means funds transfer.--
22 (1) The executive director of the Department of
23 Revenue shall have authority to require a taxpayer to file
24 returns and remit payments taxes by electronic means funds
25 transfer where the taxpayer, including consolidated filers, is
26 subject to tax and has paid that tax in the prior state fiscal
27 year in an amount of $30,000 $50,000 or more. Any taxpayer who
28 operates two or more places of business for which returns are
29 required to be filed with the department shall combine the tax
30 payments for all such locations in order to determine whether
31 they are obligated under this section. This subsection does
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1 not override additional requirements in any provision of a
2 revenue law which the department has the responsibility for
3 regulating, controlling, and administering.
4 (2) As used in any revenue law administered by the
5 department, the term:
6 (a) "Payment" means any payment or remittance required
7 to be made or paid within a prescribed period or on or before
8 a prescribed date under the authority of any provision of a
9 revenue law which the department has the responsibility for
10 regulating, controlling, and administering. The term does not
11 include any remittance unless the amount of the remittance is
12 actually received by the department.
13 (b) "Return" means any report, claim, statement,
14 notice, application, affidavit, or other document required to
15 be filed within a prescribed period or on or before a
16 prescribed date under the authority of any provision of a
17 revenue law which the department has the responsibility of
18 regulating, controlling, and administering.
19 (c) "Electronic means" includes, but is not limited
20 to, electronic data interchange; electronic fund transfer; or
21 use of the Internet, telephone, or other technology specified
22 by the department.
23 (3) Solely for the purposes of administering this
24 section:
25 (a) Taxes levied under parts I and II of chapter 206
26 shall be considered a single tax.
27 (b) A person required to remit a tax acting as a
28 collection agent or dealer for the state shall nonetheless be
29 considered the taxpayer.
30
31
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1 (4) The executive director may require a taxpayer to
2 file by electronic means returns for which no tax is due for
3 the specific taxing period.
4 (5) Beginning January 1, 2003, consolidated filers
5 shall file returns and remit taxes by electronic means.
6 (6) A taxpayer required to file returns by electronic
7 means shall also remit payments by electronic means. A
8 taxpayer who fails to file returns pursuant to this section is
9 liable for a penalty of $10 for each report submitted, which
10 is in addition to any other penalty that may be applicable,
11 unless the taxpayer has first obtained a waiver of such
12 requirement from the department. A taxpayer who fails to remit
13 payments pursuant to this section is liable for a penalty of
14 $10 for each remittance submitted, which is in addition to any
15 other penalty that may be applicable.
16 (7) The department shall give due regard to developing
17 uniform standards for formats as adopted by the American
18 National Standards Institute for encryption and taxpayer
19 authentication to ensure that the return and payment
20 information is kept confidential. The department shall also
21 provide several options for filing reports and remitting
22 payments by electronic means in order to make compliance with
23 the requirements of this section as simple as possible for the
24 taxpayer.
25 (8) The department shall prescribe by rule the format
26 and instructions necessary for filing returns and reports and
27 for remitting payments in accordance with this section to
28 ensure a full collection of taxes, interest, and penalties
29 due. The acceptable method of transfer; the method, form, and
30 content of the electronic filing of returns or remittance of
31 payments of tax, penalty, or interest; and the means, if any,
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1 by which the taxpayer will be provided with an acknowledgment
2 of receipt shall be prescribed by the department.
3 (9) The department may waive the requirement to file a
4 return by electronic means for taxpayers that are unable to
5 comply despite good-faith efforts or due to circumstances
6 beyond the taxpayer's reasonable control.
7 (a) As prescribed by the department, grounds for
8 approving the waiver include, but are not limited to,
9 circumstances in which the taxpayer, the owner, or an officer
10 of the business, or the taxpayer's accountant or bookkeeper,
11 does not:
12 1. Currently file information or data electronically
13 with any business or government agency; or
14 2. Have a compatible computer that meets or exceeds
15 the department's minimum standards.
16 (b) The department shall accept other reasons for
17 requesting a waiver from the requirement to submit a return by
18 electronic means, including, but not limited to:
19 1. The taxpayer needs additional time to program his
20 or her computer;
21 2. That complying with this requirement causes the
22 taxpayer financial hardship; or
23 3. That complying with this requirement conflicts with
24 the taxpayer's business procedures.
25 (c) The department may establish by rule the length of
26 time a waiver is valid and may determine whether subsequent
27 waivers will be authorized, based on the provisions of this
28 subsection.
29 Section 21. Paragraph (a) of subsection (3) of section
30 213.21, Florida Statutes, is amended to read:
31 213.21 Informal conferences; compromises.--
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1 (3)(a) A taxpayer's liability for any tax or interest
2 specified in s. 72.011(1) may be compromised by the department
3 upon the grounds of doubt as to liability for or
4 collectibility of such tax or interest. A taxpayer's liability
5 for penalties under any of the chapters specified in s.
6 72.011(1) may be settled or compromised if it is determined by
7 the department that the noncompliance is due to reasonable
8 cause and not to willful negligence, willful neglect, or
9 fraud. The facts and circumstances are subject to de novo
10 review to determine the existence of reasonable cause in any
11 administrative proceeding or judicial action challenging an
12 assessment of penalty under any of the chapters specified in
13 s. 72.011(1). A taxpayer who establishes reasonable reliance
14 on the written advice issued by the department to the taxpayer
15 will be deemed to have shown reasonable cause for the
16 noncompliance. In addition, a taxpayer's liability for
17 penalties under any of the chapters specified in s. 72.011(1)
18 in excess of 25 percent of the tax shall be settled or
19 compromised if the department determines that the
20 noncompliance is due to reasonable cause and not to willful
21 negligence, willful neglect, or fraud. The department shall
22 maintain records of all compromises, and the records shall
23 state the basis for the compromise. The records of compromise
24 under this paragraph shall not be subject to disclosure
25 pursuant to s. 119.07(1) and shall be considered confidential
26 information governed by the provisions of s. 213.053.
27 Section 22. Effective July 1, 2003, subsections (9)
28 and (10) are added to section 213.21, Florida Statutes, to
29 read:
30 213.21 Informal conferences; compromises.--
31
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1 (9)(a) Notwithstanding any other provision of law and
2 solely for the purpose of administering the tax imposed by
3 chapter 212, under the circumstances set forth in this
4 subsection, the department shall settle or compromise a
5 taxpayer's liability for penalty without requiring the
6 taxpayer to submit a written request for compromise or
7 settlement.
8 (b) For taxpayers that file returns and remit tax
9 monthly, the penalty related to a noncompliant filing event
10 shall be settled or compromised if the taxpayer has had:
11 1. No noncompliant filing event in the immediately
12 preceding 12-month period and no unresolved chapter 212
13 liability resulting from a noncompliant filing event; or
14 2. One noncompliant filing event in the immediately
15 preceding 12-month period, resolution of the current
16 noncompliant filing event through payment of tax and interest
17 and the filing of a return within 30 days after notification
18 by the department, and no unresolved liability under chapter
19 212 resulting from a noncompliant filing event.
20
21 If a taxpayer has two or more noncompliant filing events in
22 the immediately preceding 12-month period, the taxpayer is
23 liable, absent a showing by the taxpayer that the noncompliant
24 filing event was due to extraordinary circumstances, for the
25 penalties provided in s. 212.12, including loss of collection
26 allowance, and shall be reported to a credit bureau.
27 (c) For taxpayers that file returns and remit tax
28 quarterly, the penalty related to a noncompliant filing event
29 shall be settled or compromised if the taxpayer has no
30 noncompliant filing event in the immediately preceding
31
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1 12-month period and no unresolved liability under chapter 212
2 resulting from a noncompliant filing event.
3 (d) As used in this subsection, the term
4 "noncompliant filing event" means either the failure to timely
5 file a complete and accurate return required under chapter 212
6 or the failure to timely pay the amount of tax reported on a
7 return required by chapter 212.
8 (e) As used in this subsection, the term
9 "extraordinary circumstances" means the occurrence of events
10 beyond the control of the taxpayer, such as, but not limited
11 to, the death of the taxpayer, acts of war or terrorism,
12 natural disasters, fire or other casualty, or the nonfeasance
13 or misfeasance of the taxpayer's employees or representatives
14 who are responsible for compliance with chapter 212. With
15 respect to the acts of an employee or representative, the
16 taxpayer must show that the principals of the business lacked
17 actual knowledge of the noncompliance and that the
18 noncompliance was resolved within 30 days after the principals
19 acquired actual knowledge.
20 (10) The penalty shall be settled or compromised upon
21 payment of tax and interest if a taxpayer has failed to
22 collect the tax imposed by chapter 212 on a transaction due to
23 a good-faith belief that tax was not due on the transaction
24 and, because of that good-faith belief, the taxpayer is now
25 unable to charge and collect the tax from the taxpayer's
26 purchaser. The Department of Revenue shall adopt rules
27 necessary to administer this subsection and subsection (9),
28 including rules establishing procedures and forms.
29 Section 23. Effective July 1, 2002, paragraph (b) of
30 subsection (1) of section 212.07, Florida Statutes, is
31 amended, and subsection (9) is added to that section, to read:
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1 212.07 Sales, storage, use tax; tax added to purchase
2 price; dealer not to absorb; liability of purchasers who
3 cannot prove payment of the tax; penalties; general
4 exemptions.--
5 (1)
6 (b) A resale must be in strict compliance with s.
7 212.18 and the rules and regulations, and any dealer who makes
8 a sale for resale which is not in strict compliance with s.
9 212.18 and the rules and regulations shall himself or herself
10 be liable for and pay the tax. Any dealer who makes a sale for
11 resale shall document the exempt nature of the transaction, as
12 established by rules promulgated by the department, by
13 retaining a copy of the purchaser's resale certificate. In
14 lieu of maintaining a copy of the certificate, a dealer may
15 document, prior to the time of sale, an authorization number
16 provided telephonically or electronically by the department,
17 or by such other means established by rule of the department.
18 The department shall adopt rules that provide that, for
19 purchasers who purchase on account from a dealer on a
20 continual basis, The dealer may rely on a resale certificate
21 issued pursuant to s. 212.18(3)(c), valid at the time of
22 receipt from the purchaser, without seeking annual
23 verification of the resale certificate, if the dealer makes
24 recurring sales to a purchaser in the normal course of
25 business on a continual basis. For purposes of this paragraph,
26 "recurring sales to a purchaser in the normal course of
27 business" refers to a sale in which the dealer extends credit
28 to the purchaser and records the debt as an account
29 receivable, or a sale in which the dealer sells to a purchaser
30 who has an established cash or C.O.D. account, similar to an
31 "open credit account." For purposes of this paragraph,
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1 purchases are made from a selling dealer on a "continual
2 basis" if the selling dealer makes in the normal course of
3 business sales to the purchaser no less frequently than once
4 in every 12-month period. A dealer may, through the informal
5 protest provided for in s. 213.21 and the rules of the
6 Department of Revenue, provide the department with evidence of
7 the exempt status of a sale. Consumer certificates of
8 exemption executed by those exempt entities that were
9 registered with the department at the time of sale, resale
10 certificates provided by purchasers who were active dealers at
11 the time of sale, and verification by the department of a
12 purchaser's active dealer status at the time of sale in lieu
13 of a resale certificate shall be accepted by the department
14 when submitted during the protest period, but may not be
15 accepted in any proceeding under chapter 120 or any circuit
16 court action instituted under chapter 72.
17 (9)(a) If a purchaser engaging in transactions taxable
18 under this chapter did not pay tax to a vendor based on a
19 good-faith belief that either the transaction was a nontaxable
20 purchase for resale or the transaction was exempt as a
21 purchase by an organization exempt from tax under this
22 chapter, except as set forth below, neither the purchaser nor
23 the vendor is directly liable for any tax, interest, or
24 penalty that would otherwise be due if all of the following
25 conditions are met:
26 1. At the time of the purchase, the purchaser was not
27 registered as a dealer with the department or did not hold a
28 consumer's certificate of exemption from the department.
29 2. At the time of the purchase, the purchaser was
30 qualified to register with the department as a dealer or to
31
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1 receive a consumer's certificate of exemption from the
2 department.
3 3. Before applying for treatment under this
4 subsection, the purchaser has registered with the department
5 as a dealer or has applied for and received a consumer's
6 certificate of exemption from the department.
7 4. The purchaser establishes justifiable cause for
8 failure to register as a dealer or to obtain a consumer's
9 certificate of exemption before making the purchase. Whether a
10 purchaser has established justifiable cause for failure to
11 register depends on the facts and circumstances of each case,
12 including, but not limited to, such factors as the complexity
13 of the transaction, the purchaser's business experience and
14 history, whether the purchaser sought advice on its tax
15 obligations, whether any such advice was followed, and any
16 remedial action taken by the purchaser.
17 5. The transaction would otherwise qualify as exempt
18 under this chapter except for the fact that at the time of the
19 purchase the purchaser was not registered as a dealer with the
20 department or did not hold a consumer's certificate or
21 exemption from the department.
22 6. Relief pursuant to this subsection is applied for:
23 a. Before the department has initiated any audit or
24 other action or inquiry in regard to the purchaser or the
25 vendor; or
26 b. If any audit or other action or inquiry of the
27 purchaser or the vendor has already been initiated, within 7
28 days after being informed in writing by the department that
29 the purchaser was required to be registered or to hold a
30 consumer's certificate of exemption at the time the
31 transaction occurred.
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1 (b) In lieu of the tax, penalties, and interest that
2 would otherwise have been due, the department shall impose and
3 collect the following mandatory penalties, which the
4 department may not waive:
5 1. If a purchaser or vendor applies for relief before
6 the department initiates any audit or other action or inquiry,
7 the mandatory penalty is the lesser of $1,000 or 10 percent of
8 the total tax due on transactions that qualify for treatment
9 under this subsection.
10 2. If a purchaser or vendor applies for relief after
11 an audit or other action or inquiry has already been initiated
12 by the department, the mandatory penalty is the lesser of
13 $5,000 or 20 percent of the total tax due on transactions that
14 qualify for treatment under this subsection.
15
16 The department may impose and collect the mandatory penalties
17 from either the purchaser or the vendor that failed to obtain
18 proper documentation at the time of the transaction.
19 (c) The department may adopt forms and rules to
20 administer this subsection.
21 Section 24. It is the intent of the Legislature that
22 the amendments to section 212.07, Florida Statutes, which are
23 made by section 23 of this act apply to all pending sales and
24 use tax audits or other actions or inquires, including those
25 currently under protest or in litigation. Taxpayers in such
26 pending audits or other actions or inquires have until the
27 later of the date provided by section 212.07(9)(b), Florida
28 Statutes, as created by section 22 of this act, or 90 days
29 after the effective date of this act, to apply for the
30 treatment provided in that paragraph. This section does not
31 create any right to refund for taxes previously assessed and
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1 paid in regard to audits or other actions or inquires that are
2 no longer pending.
3 Section 25. Subsection (2) of section 213.24, Florida
4 Statutes, is amended to read:
5 213.24 Accrual of penalties and interest on
6 deficiencies; deficiency billing costs.--
7 (2)(a) Billings for deficiencies or automated refunds
8 of tax, penalty, or interest shall not be issued for any
9 amount less than the actual costs incurred by the department
10 to produce a billing or automated refund.
11 (b) The cost of issuing billings or automated refunds
12 for any tax enumerated in s. 213.05 shall be computed in a
13 study performed by the inspector general of the department.
14 The study shall be conducted every 3 years and at such other
15 times as deemed necessary by the inspector general. A minimum
16 billing and automated refund amount shall be established and
17 adjusted in accordance with the results of such study.
18 (c) Any change in minimum billing or automated refund
19 amounts amount shall be made effective on July 1 following the
20 completion of the study.
21 Section 26. Subsection (5) of section 55.202, Florida
22 Statutes, is amended to read:
23 55.202 Judgments, orders, and decrees; lien on
24 personal property.--
25 (5) Liens, assessments, warrants, or judgments filed
26 pursuant to paragraph (2)(b) may be filed directly into the
27 central database by the Department of Revenue, or its designee
28 as determined by its executive director, through electronic or
29 information data exchange programs approved by the Department
30 of State. Such filings must contain the information set forth
31 in s. 55.203(1).
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1 Section 27. Effective July 1, 2002, subsections (2)
2 and (3) of section 213.235, Florida Statutes, are amended to
3 read:
4 213.235 Determination of interest on deficiencies.--
5 (2) If the adjusted prime rate charged by banks,
6 rounded to the nearest full percent, plus 2 percentage points,
7 during either:
8 (a) The 6-month period ending on September 30 of any
9 calendar year, or
10 (b) The 6-month period ending on March 31 of any
11 calendar year
12
13 differs from the interest rate in effect on either such date,
14 the executive director of the department shall, within 20
15 days, establish an adjusted rate of interest equal to such
16 adjusted prime rate plus 2 percentage points.
17 (3) An adjusted rate of interest established under
18 this section becomes effective:
19 (a) On January 1 of the succeeding year, if based upon
20 the adjusted prime rate plus 2 percentage points for the
21 6-month period ending on September 30; or
22 (b) On July 1 of the same calendar year, if based upon
23 the adjusted prime rate plus 2 percentage points for the
24 6-month period ending on March 31.
25 Section 28. It is the intent of the Legislature that
26 the amendments to subsections (2) and (3) of section 213.235,
27 Florida Statutes, which are made by section 27 of this act,
28 apply to interest due on tax payment deficiencies that arise
29 on or after the effective date of that section and also apply
30 to interest due on tax payment deficiencies that arose on or
31
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1 after January 1, 2000, but remain unpaid on the effective date
2 of that section.
3 Section 29. Effective July 1, 2002, subsections (2)
4 and (3) of section 220.807, Florida Statutes, are amended to
5 read:
6 220.807 Determination of rate of interest.--
7 (2) If the adjusted prime rate charged by banks,
8 rounded to the nearest full percent, plus 2 percentage points,
9 during either:
10 (a) The 6-month period ending on September 30 of any
11 calendar year; or
12 (b) The 6-month period ending on March 31 of any
13 calendar year,
14
15 differs from the interest rate in effect on either such date,
16 the executive director of the Department of Revenue shall,
17 within 20 days, establish an adjusted rate of interest equal
18 to such adjusted prime rate plus 2 percentage points.
19 (3) An adjusted rate of interest established under
20 this section shall become effective:
21 (a) On January 1 of the succeeding year, if based upon
22 the adjusted prime rate plus 2 percentage points for the
23 6-month period ending on September 30; or
24 (b) On July 1 of the same calendar year, if based upon
25 the adjusted prime rate plus 2 percentage points for the
26 6-month period ending on March 31.
27 Section 30. It is the intent of the Legislature that
28 the amendments to subsections (2) and (3) of section 220.807,
29 Florida Statutes, which are made by section 29 of this act,
30 apply to interest due on tax payment deficiencies that arise
31 on or after the effective date of that section and also apply
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1 to interest due on tax payment deficiencies that arose before
2 the effective date of that section but remain unpaid on the
3 effective date of that section.
4 Section 31. Subsection (4) of section 213.255, Florida
5 Statutes, is amended to read:
6 213.255 Interest.--Interest shall be paid on
7 overpayments of taxes, payment of taxes not due, or taxes paid
8 in error, subject to the following conditions:
9 (4) Interest shall not commence until 90 days after a
10 complete refund application has been filed and the amount of
11 overpayment has not been refunded to the taxpayer or applied
12 as a credit to the taxpayer's account. However, if there is a
13 prohibition against refunding a tax overpayment before the
14 first day of the state fiscal year, interest on the tax
15 overpayment does not commence until August 1 of the year the
16 tax was due. If the department and the taxpayer mutually agree
17 that an audit or verification is necessary in order to
18 determine the taxpayer's entitlement to the refund, interest
19 shall not commence until the audit or verification of the
20 claim is final.
21 Section 32. Effective July 1, 2002, subsection (1) of
22 section 681.117, Florida Statutes, is amended to read:
23 681.117 Fee.--
24 (1) A $2 fee shall be collected by a motor vehicle
25 dealer, or by a person engaged in the business of leasing
26 motor vehicles, from the consumer at the consummation of the
27 sale of a motor vehicle or at the time of entry into a lease
28 agreement for a motor vehicle. Such fees shall be remitted to
29 the county tax collector or private tag agency acting as agent
30 for the Department of Revenue. If the purchaser or lessee
31 removes the motor vehicle from the state for titling and
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1 registration outside this state, the fee shall be remitted to
2 the Department of Revenue. All fees, less the cost of
3 administration, shall be transferred monthly to the Department
4 of Legal Affairs for deposit into the Motor Vehicle Warranty
5 Trust Fund. The Department of Legal Affairs shall distribute
6 monthly an amount not exceeding one-fourth of the fees
7 received to the Division of Consumer Services of the
8 Department of Agriculture and Consumer Services to carry out
9 the provisions of ss. 681.108 and 681.109. The Department of
10 Legal Affairs shall contract with the Division of Consumer
11 Services for payment of services performed by the division
12 pursuant to ss. 681.108 and 681.109.
13 Section 33. Paragraph (b) of subsection (2), paragraph
14 (b) of subsection (3), and paragraph (b) of subsection (4) of
15 section 211.3103, Florida Statutes, are amended to read:
16 211.3103 Levy of tax on severance of phosphate rock;
17 rate, basis, and distribution of tax.--
18 (2) The proceeds of all taxes, interest, and penalties
19 imposed under this section shall be paid into the State
20 Treasury through June 30, 1995, as follows:
21 (b) The remaining revenues collected from the tax
22 during that fiscal year, after the required payment under
23 paragraph (a), shall be paid into the State Treasury as
24 follows:
25 1. To the credit of the General Revenue Fund of the
26 state, 60 percent. However, from this amount the amounts of
27 $7.4 million, $8.2 million, and $8.1 million, respectively,
28 shall be transferred to the Nonmandatory Land Reclamation
29 Trust Fund on January 1, 1993, January 1, 1994, and January 1,
30 1995.
31
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1 2. To the credit of the Nonmandatory Land Reclamation
2 Trust Fund which is established for reclamation and
3 acquisition of unreclaimed lands disturbed by phosphate mining
4 and not subject to mandatory reclamation, 20 percent.
5 3. To the credit of the Phosphate Research Trust Fund
6 in the Department of Education, Division of Universities, to
7 carry out the purposes set forth in s. 378.101, 10 percent.
8 4. For payment to counties in proportion to the number
9 of tons of phosphate rock produced from a phosphate rock
10 matrix located within such political boundary, 10 percent. The
11 department shall distribute this portion of the proceeds
12 annually based on production information reported by producers
13 on the most recent annual returns for the taxable filed prior
14 to the beginning of the fiscal year. Any such proceeds
15 received by a county shall be used only for phosphate-related
16 expenses.
17 (3) Beginning July 1, 1995, the proceeds of all taxes,
18 interest, and penalties imposed under this section shall be
19 paid into the State Treasury as follows:
20 (b) The remaining revenues collected from the tax
21 during that fiscal year, after the required payment under
22 paragraph (a), shall be paid into the State Treasury as
23 follows:
24 1. To the credit of the General Revenue Fund of the
25 state, 58 percent.
26 2. To the credit of the Nonmandatory Land Reclamation
27 Trust Fund for reclamation and acquisition of unreclaimed
28 lands disturbed by phosphate mining and not subject to
29 mandatory reclamation, 14.5 percent.
30
31
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1 3. To the credit of the Phosphate Research Trust Fund
2 in the Department of Education, Division of Universities, to
3 carry out the purposes set forth in s. 378.101, 10 percent.
4 4. For payment to counties in proportion to the number
5 of tons of phosphate rock produced from a phosphate rock
6 matrix located within such political boundary, 10 percent. The
7 department shall distribute this portion of the proceeds
8 annually based on production information reported by producers
9 on the most recent annual returns for the taxable filed prior
10 to the beginning of the fiscal year. Any such proceeds
11 received by a county shall be used only for phosphate-related
12 expenses.
13 5. To the credit of the Minerals Trust Fund, 7.5
14 percent.
15 (4) If the base rate is reduced pursuant to paragraph
16 (5)(c), then the proceeds of the tax shall be paid into the
17 State Treasury as follows:
18 (b) The remaining revenues collected from the tax
19 during that fiscal year, after the required payment under
20 paragraph (a), shall be paid into the State Treasury as
21 follows:
22 1. To the credit of the General Revenue Fund of the
23 state, 55.15 percent.
24 2. To the credit of the Phosphate Research Trust Fund
25 in the Department of Education, Division of Universities, 12.5
26 percent.
27 3. For payment to counties in proportion to the number
28 of tons of phosphate rock produced from a phosphate rock
29 matrix located within such political boundary, 18 percent. The
30 department shall distribute this portion of the proceeds
31 annually based on production information reported by producers
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1 on the most recent annual returns for the taxable filed prior
2 to the beginning of the fiscal year. Any such proceeds
3 received by a county shall be used only for phosphate-related
4 expenses.
5 4. To the credit of the Minerals Trust Fund, 14.35
6 percent.
7 Section 34. Subsection (5) of section 336.021, Florida
8 Statutes, is amended to read:
9 336.021 County transportation system; levy of
10 ninth-cent fuel tax on motor fuel and diesel fuel.--
11 (5) All impositions of the tax shall be levied imposed
12 before November 1, 1993, to be effective January 1, 1994, and
13 before July 1 of each year thereafter to be effective January
14 1 of the following year. However, levies of the tax which were
15 in effect on July 1, 2002 1996, and which expire on August 31
16 of any year may be reimposed at the current authorized rate to
17 be effective September 1 of the year of expiration. All
18 impositions shall be required to end on December 31 of a year.
19 No decision to rescind the tax shall take effect on any date
20 other than December 31 and requires a minimum of 60 days'
21 notice to until at least 60 days after the county notifies the
22 department of such decision.
23 Section 35. Paragraphs (a) and (b) of subsection (1)
24 and paragraph (a) of subsection (5) of section 336.025,
25 Florida Statutes, are amended to read:
26 336.025 County transportation system; levy of local
27 option fuel tax on motor fuel and diesel fuel.--
28 (1)(a) In addition to other taxes allowed by law,
29 there may be levied as provided in ss. 206.41(1)(e) and
30 206.87(1)(c) a 1-cent, 2-cent, 3-cent, 4-cent, 5-cent, or
31 6-cent local option fuel tax upon every gallon of motor fuel
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1 and diesel fuel sold in a county and taxed under the
2 provisions of part I or part II of chapter 206.
3 1. All impositions and rate changes of the tax shall
4 be levied before July 1 to be effective January 1 of the
5 following year for a period not to exceed 30 years, and the
6 applicable method of distribution shall be established
7 pursuant to subsection (3) or subsection (4). However, levies
8 of the tax which were in effect on July 1, 2002 1996, and
9 which expire on August 31 of any year may be reimposed at the
10 current authorized rate effective September 1 of the year of
11 expiration. Upon expiration, the tax may be relevied provided
12 that a redetermination of the method of distribution is made
13 as provided in this section.
14 2. County and municipal governments shall utilize
15 moneys received pursuant to this paragraph only for
16 transportation expenditures.
17 3. Any tax levied pursuant to this paragraph may be
18 extended on a majority vote of the governing body of the
19 county. A redetermination of the method of distribution shall
20 be established pursuant to subsection (3) or subsection (4),
21 if, after July 1, 1986, the tax is extended or the tax rate
22 changed, for the period of extension or for the additional
23 tax.
24 (b) In addition to other taxes allowed by law, there
25 may be levied as provided in s. 206.41(1)(e) a 1-cent, 2-cent,
26 3-cent, 4-cent, or 5-cent local option fuel tax upon every
27 gallon of motor fuel sold in a county and taxed under the
28 provisions of part I of chapter 206. The tax shall be levied
29 by an ordinance adopted by a majority plus one vote of the
30 membership of the governing body of the county or by
31 referendum.
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1 1. All impositions and rate changes of the tax shall
2 be levied before July 1, to be effective January 1 of the
3 following year. However, levies of the tax which were in
4 effect on July 1, 2002 1996, and which expire on August 31 of
5 any year may be reimposed at the current authorized rate,
6 effective September 1 of the year of expiration.
7 2. The county may, prior to levy of the tax, establish
8 by interlocal agreement with one or more municipalities
9 located therein, representing a majority of the population of
10 the incorporated area within the county, a distribution
11 formula for dividing the entire proceeds of the tax among
12 county government and all eligible municipalities within the
13 county. If no interlocal agreement is adopted before the
14 effective date of the tax, tax revenues shall be distributed
15 pursuant to the provisions of subsection (4). If no
16 interlocal agreement exists, a new interlocal agreement may be
17 established prior to June 1 of any year pursuant to this
18 subparagraph. However, any interlocal agreement agreed to
19 under this subparagraph after the initial levy of the tax or
20 change in the tax rate authorized in this section shall under
21 no circumstances materially or adversely affect the rights of
22 holders of outstanding bonds which are backed by taxes
23 authorized by this paragraph, and the amounts distributed to
24 the county government and each municipality shall not be
25 reduced below the amount necessary for the payment of
26 principal and interest and reserves for principal and interest
27 as required under the covenants of any bond resolution
28 outstanding on the date of establishment of the new interlocal
29 agreement.
30 3. County and municipal governments shall utilize
31 moneys received pursuant to this paragraph only for
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1 transportation expenditures needed to meet the requirements of
2 the capital improvements element of an adopted comprehensive
3 plan. For purposes of this paragraph, expenditures for the
4 construction of new roads, the reconstruction or resurfacing
5 of existing paved roads, or the paving of existing graded
6 roads shall be deemed to increase capacity and such projects
7 shall be included in the capital improvements element of an
8 adopted comprehensive plan. Expenditures for purposes of this
9 paragraph shall not include routine maintenance of roads.
10 (5)(a) By July 1 of each year, the county shall notify
11 the Department of Revenue of the rate of the taxes tax levied
12 pursuant to paragraphs (1)(a) and (b), and of its decision to
13 rescind or change the rate of a the tax, if applicable, and
14 shall provide the department with a certified copy of the
15 interlocal agreement established under subparagraph (1)(b)2.
16 or subparagraph (3)(a)1. with distribution proportions
17 established by such agreement or pursuant to subsection (4),
18 if applicable. No decision to rescind a the tax shall take
19 effect on any date other than December 31 and requires a
20 minimum of 60 days' notice to until at least 60 days after the
21 county notifies the Department of Revenue of such decision.
22 Section 36. Effective July 1, 2002, paragraph (c) is
23 added to subsection (4) of section 213.0535, Florida Statutes,
24 to read:
25 213.0535 Registration Information Sharing and Exchange
26 Program.--
27 (4) There are two levels of participation:
28 (c) A level-two participant may disclose information
29 as provided in paragraph (b) in response to a request for such
30 information from any other level-two participant. Information
31 relative to specific taxpayers shall be requested or disclosed
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1 under this paragraph only to the extent necessary in the
2 administration of a tax or licensing provision as enumerated
3 in paragraph (a). When a disclosure made under this paragraph
4 involves confidential information provided to the participant
5 by the Department of Revenue, the participant who provides the
6 information must maintain records of the disclosures, and the
7 records are subject to review by the Department of Revenue for
8 a period of 5 years after the date of the disclosure.
9 Section 37. Paragraphs (a) and (d) of subsection (1)
10 and paragraph (i) of subsection (3) of section 212.096,
11 Florida Statutes, are amended to read:
12 212.096 Sales, rental, storage, use tax; enterprise
13 zone jobs credit against sales tax.--
14 (1) For the purposes of the credit provided in this
15 section:
16 (a) "Eligible business" means any sole proprietorship,
17 firm, partnership, corporation, bank, savings association,
18 estate, trust, business trust, receiver, syndicate, or other
19 group or combination, or successor business, located in an
20 enterprise zone. The business must demonstrate to the
21 department that the total number of full-time jobs defined
22 under paragraph (d) has increased from the average of the
23 previous 12 months. A business that created The term "eligible
24 business" includes a business that added a minimum of five new
25 full-time jobs in an enterprise zone between July 1, 2000, and
26 December 31, 2001, is also an "eligible business" for purposes
27 of the credit provided beginning January 1, 2002. An eligible
28 business does not include any business which has claimed the
29 credit permitted under s. 220.181 for any new business
30 employee first beginning employment with the business after
31 July 1, 1995.
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1 (d) "Jobs" means full-time positions, as consistent
2 with terms used by the Agency for Workforce Innovation and the
3 United States Department of Labor for purposes of unemployment
4 compensation tax administration and employment estimation
5 resulting directly from a business operation in this state.
6 These terms This number may not include temporary construction
7 jobs involved with the construction of facilities or any jobs
8 that have previously been included in any application for tax
9 credits under s. 220.181(1). The term "jobs" also includes
10 employment of an employee leased from an employee leasing
11 company licensed under chapter 468 if such employee has been
12 continuously leased to the employer for an average of at least
13 36 hours per week for more than 6 months.
14 (3) In order to claim this credit, an eligible
15 business must file under oath with the governing body or
16 enterprise zone development agency having jurisdiction over
17 the enterprise zone where the business is located, as
18 applicable, a statement which includes:
19 (i) All applications for a credit pursuant to this
20 section must be submitted to the department within 6 months
21 after the new employee is hired, except applications for
22 credit on leased employees. Applications for credit for leased
23 employees must be submitted to the department within 7 months
24 after the new employee is hired.
25 Section 38. Subsections (2) and (3) and paragraph (d)
26 of subsection (6) of section 212.098, Florida Statutes, are
27 amended to read:
28 212.098 Rural Job Tax Credit Program.--
29 (2) A new eligible business may apply for a tax credit
30 under this subsection once at any time during its first year
31 of operation. A new eligible business in a tier-one qualified
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1 area that has at least 10 qualified employees on the date of
2 application shall receive a $1,000 tax credit for each such
3 employee.
4 (3) An existing eligible business may apply for a tax
5 credit under this subsection at any time it is entitled to
6 such credit, except as restricted by this subsection. An
7 existing eligible business with fewer than 50 employees in a
8 qualified area that on the date of application has at least 20
9 percent more qualified employees than it had 1 year prior to
10 its date of application shall receive a $1,000 tax credit for
11 each such additional employee. An existing eligible business
12 that has 50 employees or more in a qualified area that, on the
13 date of application, has at least 10 more qualified employees
14 than it had 1 year prior to its date of application shall
15 receive a $1,000 tax credit for each additional employee. Any
16 existing eligible business that received a credit under
17 subsection (2) may not apply for the credit under this
18 subsection sooner than 12 months after the application date
19 for the credit under subsection (2).
20 (6)
21 (d) A business may not receive more than $500,000 of
22 tax credits under this section during any one calendar year
23 for its efforts in creating jobs.
24 Section 39. Paragraphs (q) and (gg) of subsection (1)
25 of section 220.03, Florida Statutes, are amended to read:
26 220.03 Definitions.--
27 (1) SPECIFIC TERMS.--When used in this code, and when
28 not otherwise distinctly expressed or manifestly incompatible
29 with the intent thereof, the following terms shall have the
30 following meanings:
31
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1 (q) "New employee," for the purposes of the enterprise
2 zone jobs credit, means a person residing in an enterprise
3 zone or a participant in the welfare transition program who is
4 employed at a business located in an enterprise zone who
5 begins employment in the operations of the business after July
6 1, 1995, and who has not been previously employed full-time
7 within the preceding 12 months by the business or a successor
8 business claiming the credit pursuant to s. 220.181. A person
9 shall be deemed to be employed by such a business if the
10 person performs duties in connection with the operations of
11 the business on a full-time basis, provided she or he is
12 performing such duties for an average of at least 36 hours per
13 week each month. The term "jobs" also includes employment of
14 an employee leased from an employee leasing company licensed
15 under chapter 468, if such employee has been continuously
16 leased to the employer for an average of at least 36 hours per
17 week for more than 6 months. The person must be performing
18 such duties at a business site located in an enterprise zone.
19 The provisions of this paragraph shall expire and be void on
20 June 30, 2005.
21 (gg) "Jobs" means full-time positions, as consistent
22 with terms used by the Agency for Workforce Innovation and the
23 United States Department of Labor for purposes of unemployment
24 compensation tax administration and employment estimation
25 resulting directly from business operations in this state.
26 These terms This number may not include temporary construction
27 jobs involved with the construction of facilities or any jobs
28 that have previously been included in any application for tax
29 credits under s. 212.096 s. 220.181(1). The term "jobs" also
30 includes employment of an employee leased from an employee
31 leasing company licensed under chapter 468, if the employee
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1 has been continuously leased to the employer for an average of
2 at least 36 hours per week for more than 6 months.
3 Section 40. Paragraph (a) of subsection (1) of section
4 220.181, Florida Statutes, is amended to read:
5 220.181 Enterprise zone jobs credit.--
6 (1)(a) Beginning January 1, 2002, there shall be
7 allowed a credit against the tax imposed by this chapter to
8 any business located in an enterprise zone which demonstrates
9 to the department that the total number of full-time jobs has
10 increased from the average of the previous 12 months. A
11 business that created This credit is also available for a
12 business that added a minimum of five new full-time jobs in an
13 enterprise zone between July 1, 2000, and December 31, 2001,
14 may also be eligible to claim the credit for eligible
15 employees under the provisions that took effect January 1,
16 2002. The credit shall be computed as 20 percent of the actual
17 monthly wages paid in this state to each new employee hired
18 when a new job has been created, as defined under s.
19 220.03(1)(ff), unless the business is located in a rural
20 enterprise zone, pursuant to s. 290.004(8), in which case the
21 credit shall be 30 percent of the actual monthly wages paid.
22 If no less than 20 percent of the employees of the business
23 are residents of an enterprise zone, excluding temporary and
24 part-time employees, the credit shall be computed as 30
25 percent of the actual monthly wages paid in this state to each
26 new employee hired when a new job has been created, unless the
27 business is located in a rural enterprise zone, in which case
28 the credit shall be 45 percent of the actual monthly wages
29 paid, for a period of up to 24 consecutive months. If the new
30 employee hired when a new job is created is a participant in
31 the welfare transition program, the following credit shall be
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1 a percent of the actual monthly wages paid: 40 percent for $4
2 above the hourly federal minimum wage rate; 41 percent for $5
3 above the hourly federal minimum wage rate; 42 percent for $6
4 above the hourly federal minimum wage rate; 43 percent for $7
5 above the hourly federal minimum wage rate; and 44 percent for
6 $8 above the hourly federal minimum wage rate.
7 Section 41. Subsection (2) of section 290.00677,
8 Florida Statutes, is amended to read:
9 290.00677 Rural enterprise zones; special
10 qualifications.--
11 (2) Notwithstanding the enterprise zone residency
12 requirements set out in s. 220.03(1)(q), eligible businesses
13 as defined by s. 220.03(1)(c) s. 212.096(1)(a), located in
14 rural enterprise zones as defined in s. 290.004, may receive
15 the basic minimum credit provided under s. 220.181 for
16 creating a new job and hiring a person residing within the
17 jurisdiction of a rural county, as defined by s.
18 288.106(1)(r). All other provisions of s. 220.181, including,
19 but not limited to, those relating to the award of enhanced
20 credits apply to such businesses.
21 Section 42. Effective July 1, 2003, paragraph (a) of
22 subsection (1) and subsection (3) of section 212.031, Florida
23 Statutes, are amended, and subsection (10) of that section is
24 reenacted, to read:
25 212.031 Lease or rental of or license in real
26 property.--
27 (1)
28 (a) It is declared to be the legislative intent that
29 every person is exercising a taxable privilege who engages in
30 the business of renting, leasing, letting, or granting a
31
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1 license for the use of any real property unless such property
2 is:
3 1. Assessed as agricultural property under s. 193.461.
4 2. Used exclusively as dwelling units.
5 3. Property subject to tax on parking, docking, or
6 storage spaces under s. 212.03(6).
7 4. Recreational property or the common elements of a
8 condominium when subject to a lease between the developer or
9 owner thereof and the condominium association in its own right
10 or as agent for the owners of individual condominium units or
11 the owners of individual condominium units. However, only the
12 lease payments on such property shall be exempt from the tax
13 imposed by this chapter, and any other use made by the owner
14 or the condominium association shall be fully taxable under
15 this chapter.
16 5. A public or private street or right-of-way and
17 poles, conduits, fixtures, and similar improvements located on
18 such streets or rights-of-way, occupied or used by a utility
19 or provider of communications services, as defined by s.
20 202.11, for utility or communications or television purposes.
21 For purposes of this subparagraph, the term "utility" means
22 any person providing utility services as defined in s.
23 203.012. This exception also applies to property, wherever
24 located, on which the following are placed: towers, antennas,
25 cables, accessory structures, or equipment, not including
26 switching equipment, used in the provision of mobile
27 communications services as defined in s. 202.11. For purposes
28 of this chapter, towers used in the provision of mobile
29 communications services, as defined in s. 202.11, are
30 considered to be fixtures.
31
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1 6. A public street or road which is used for
2 transportation purposes.
3 7. Property used at an airport exclusively for the
4 purpose of aircraft landing or aircraft taxiing or property
5 used by an airline for the purpose of loading or unloading
6 passengers or property onto or from aircraft or for fueling
7 aircraft.
8 8.a. Property used at a port authority, as defined in
9 s. 315.02(2), exclusively for the purpose of oceangoing
10 vessels or tugs docking, or such vessels mooring on property
11 used by a port authority for the purpose of loading or
12 unloading passengers or cargo onto or from such a vessel, or
13 property used at a port authority for fueling such vessels, or
14 to the extent that the amount paid for the use of any property
15 at the port is based on the charge for the amount of tonnage
16 actually imported or exported through the port by a tenant.
17 b. The amount charged for the use of any property at
18 the port in excess of the amount charged for tonnage actually
19 imported or exported shall remain subject to tax except as
20 provided in sub-subparagraph a.
21 9. Property used as an integral part of the
22 performance of qualified production services. As used in this
23 subparagraph, the term "qualified production services" means
24 any activity or service performed directly in connection with
25 the production of a qualified motion picture, as defined in s.
26 212.06(1)(b), and includes:
27 a. Photography, sound and recording, casting, location
28 managing and scouting, shooting, creation of special and
29 optical effects, animation, adaptation (language, media,
30 electronic, or otherwise), technological modifications,
31 computer graphics, set and stage support (such as
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1 electricians, lighting designers and operators, greensmen,
2 prop managers and assistants, and grips), wardrobe (design,
3 preparation, and management), hair and makeup (design,
4 production, and application), performing (such as acting,
5 dancing, and playing), designing and executing stunts,
6 coaching, consulting, writing, scoring, composing,
7 choreographing, script supervising, directing, producing,
8 transmitting dailies, dubbing, mixing, editing, cutting,
9 looping, printing, processing, duplicating, storing, and
10 distributing;
11 b. The design, planning, engineering, construction,
12 alteration, repair, and maintenance of real or personal
13 property including stages, sets, props, models, paintings, and
14 facilities principally required for the performance of those
15 services listed in sub-subparagraph a.; and
16 c. Property management services directly related to
17 property used in connection with the services described in
18 sub-subparagraphs a. and b.
19
20 This exemption will inure to the taxpayer upon presentation of
21 the certificate of exemption issued to the taxpayer under the
22 provisions of s. 288.1258.
23 10. Leased, subleased, licensed, or rented to a person
24 providing food and drink concessionaire services within the
25 premises of a convention hall, exhibition hall, auditorium,
26 stadium, theater, arena, civic center, performing arts center,
27 publicly owned recreational facility, or any business operated
28 under a permit issued pursuant to chapter 550. A person
29 providing retail concessionaire services involving the sale of
30 food and drink or other tangible personal property within the
31 premises of an airport shall be subject to tax on the rental
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1 of real property used for that purpose, but shall not be
2 subject to the tax on any license to use the property. For
3 purposes of this subparagraph, the term "sale" shall not
4 include the leasing of tangible personal property.
5 11. Property occupied pursuant to an instrument
6 calling for payments which the department has declared, in a
7 Technical Assistance Advisement issued on or before March 15,
8 1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),
9 Florida Administrative Code; provided that this subparagraph
10 shall only apply to property occupied by the same person
11 before and after the execution of the subject instrument and
12 only to those payments made pursuant to such instrument,
13 exclusive of renewals and extensions thereof occurring after
14 March 15, 1993.
15 12. Rented, leased, subleased, or licensed to a
16 concessionaire by a convention hall, exhibition hall,
17 auditorium, stadium, theater, arena, civic center, performing
18 arts center, or publicly owned recreational facility, during
19 an event at the facility, to be used by the concessionaire to
20 sell souvenirs, novelties, or other event-related products.
21 This subparagraph applies only to that portion of the rental,
22 lease, or license payment which is based on a percentage of
23 sales and not based on a fixed price.
24 13.12. Property used or occupied predominantly for
25 space flight business purposes. As used in this subparagraph,
26 "space flight business" means the manufacturing, processing,
27 or assembly of a space facility, space propulsion system,
28 space vehicle, satellite, or station of any kind possessing
29 the capacity for space flight, as defined by s. 212.02(23), or
30 components thereof, and also means the following activities
31 supporting space flight: vehicle launch activities, flight
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1 operations, ground control or ground support, and all
2 administrative activities directly related thereto. Property
3 shall be deemed to be used or occupied predominantly for space
4 flight business purposes if more than 50 percent of the
5 property, or improvements thereon, is used for one or more
6 space flight business purposes. Possession by a landlord,
7 lessor, or licensor of a signed written statement from the
8 tenant, lessee, or licensee claiming the exemption shall
9 relieve the landlord, lessor, or licensor from the
10 responsibility of collecting the tax, and the department shall
11 look solely to the tenant, lessee, or licensee for recovery of
12 such tax if it determines that the exemption was not
13 applicable.
14 (3) The tax imposed by this section shall be in
15 addition to the total amount of the rental or license fee,
16 shall be charged by the lessor or person receiving the rent or
17 payment in and by a rental or license fee arrangement with the
18 lessee or person paying the rental or license fee, and shall
19 be due and payable at the time of the receipt of such rental
20 or license fee payment by the lessor or other person who
21 receives the rental or payment. Notwithstanding any other
22 provision of this chapter, the tax imposed by this section on
23 the rental, lease, or license for the use of a convention
24 hall, exhibition hall, auditorium, stadium, theater, arena,
25 civic center, performing arts center, or publicly owned
26 recreational facility to hold an event of not more than 7
27 consecutive days' duration shall be collected at the time of
28 the payment for that rental, lease, or license but is not due
29 and payable to the department until the first day of the month
30 following the last day that the event for which the payment is
31 made is actually held, and becomes delinquent on the 21st day
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1 of that month. The owner, lessor, or person receiving the rent
2 or license fee shall remit the tax to the department at the
3 times and in the manner hereinafter provided for dealers to
4 remit taxes under this chapter. The same duties imposed by
5 this chapter upon dealers in tangible personal property
6 respecting the collection and remission of the tax; the making
7 of returns; the keeping of books, records, and accounts; and
8 the compliance with the rules and regulations of the
9 department in the administration of this chapter shall apply
10 to and be binding upon all persons who manage any leases or
11 operate real property, hotels, apartment houses,
12 roominghouses, or tourist and trailer camps and all persons
13 who collect or receive rents or license fees taxable under
14 this chapter on behalf of owners or lessors.
15 (10) Separately stated charges imposed by a convention
16 hall, exhibition hall, auditorium, stadium, theater, arena,
17 civic center, performing arts center, or publicly owned
18 recreational facility upon a lessee or licensee for food,
19 drink, or services required or available in connection with a
20 lease or license to use real property, including charges for
21 laborers, stagehands, ticket takers, event staff, security
22 personnel, cleaning staff, and other event-related personnel,
23 advertising, and credit card processing, are exempt from the
24 tax imposed by this section.
25 Section 43. Effective July 1, 2006, paragraph (a) of
26 subsection (1) and subsections (3) and (10) of section
27 212.031, Florida Statutes, as amended by this act, are amended
28 to read:
29 212.031 Lease or rental of or license in real
30 property.--
31 (1)
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1 (a) It is declared to be the legislative intent that
2 every person is exercising a taxable privilege who engages in
3 the business of renting, leasing, letting, or granting a
4 license for the use of any real property unless such property
5 is:
6 1. Assessed as agricultural property under s. 193.461.
7 2. Used exclusively as dwelling units.
8 3. Property subject to tax on parking, docking, or
9 storage spaces under s. 212.03(6).
10 4. Recreational property or the common elements of a
11 condominium when subject to a lease between the developer or
12 owner thereof and the condominium association in its own right
13 or as agent for the owners of individual condominium units or
14 the owners of individual condominium units. However, only the
15 lease payments on such property shall be exempt from the tax
16 imposed by this chapter, and any other use made by the owner
17 or the condominium association shall be fully taxable under
18 this chapter.
19 5. A public or private street or right-of-way and
20 poles, conduits, fixtures, and similar improvements located on
21 such streets or rights-of-way, occupied or used by a utility
22 or provider of communications services, as defined by s.
23 202.11, for utility or communications or television purposes.
24 For purposes of this subparagraph, the term "utility" means
25 any person providing utility services as defined in s.
26 203.012. This exception also applies to property, wherever
27 located, on which the following are placed: towers, antennas,
28 cables, accessory structures, or equipment, not including
29 switching equipment, used in the provision of mobile
30 communications services as defined in s. 202.11. For purposes
31 of this chapter, towers used in the provision of mobile
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1 communications services, as defined in s. 202.11, are
2 considered to be fixtures.
3 6. A public street or road which is used for
4 transportation purposes.
5 7. Property used at an airport exclusively for the
6 purpose of aircraft landing or aircraft taxiing or property
7 used by an airline for the purpose of loading or unloading
8 passengers or property onto or from aircraft or for fueling
9 aircraft.
10 8.a. Property used at a port authority, as defined in
11 s. 315.02(2), exclusively for the purpose of oceangoing
12 vessels or tugs docking, or such vessels mooring on property
13 used by a port authority for the purpose of loading or
14 unloading passengers or cargo onto or from such a vessel, or
15 property used at a port authority for fueling such vessels, or
16 to the extent that the amount paid for the use of any property
17 at the port is based on the charge for the amount of tonnage
18 actually imported or exported through the port by a tenant.
19 b. The amount charged for the use of any property at
20 the port in excess of the amount charged for tonnage actually
21 imported or exported shall remain subject to tax except as
22 provided in sub-subparagraph a.
23 9. Property used as an integral part of the
24 performance of qualified production services. As used in this
25 subparagraph, the term "qualified production services" means
26 any activity or service performed directly in connection with
27 the production of a qualified motion picture, as defined in s.
28 212.06(1)(b), and includes:
29 a. Photography, sound and recording, casting, location
30 managing and scouting, shooting, creation of special and
31 optical effects, animation, adaptation (language, media,
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1 electronic, or otherwise), technological modifications,
2 computer graphics, set and stage support (such as
3 electricians, lighting designers and operators, greensmen,
4 prop managers and assistants, and grips), wardrobe (design,
5 preparation, and management), hair and makeup (design,
6 production, and application), performing (such as acting,
7 dancing, and playing), designing and executing stunts,
8 coaching, consulting, writing, scoring, composing,
9 choreographing, script supervising, directing, producing,
10 transmitting dailies, dubbing, mixing, editing, cutting,
11 looping, printing, processing, duplicating, storing, and
12 distributing;
13 b. The design, planning, engineering, construction,
14 alteration, repair, and maintenance of real or personal
15 property including stages, sets, props, models, paintings, and
16 facilities principally required for the performance of those
17 services listed in sub-subparagraph a.; and
18 c. Property management services directly related to
19 property used in connection with the services described in
20 sub-subparagraphs a. and b.
21
22 This exemption will inure to the taxpayer upon presentation of
23 the certificate of exemption issued to the taxpayer under the
24 provisions of s. 288.1258.
25 10. Leased, subleased, licensed, or rented to a person
26 providing food and drink concessionaire services within the
27 premises of a convention hall, exhibition hall, auditorium,
28 stadium, theater, arena, civic center, performing arts center,
29 publicly owned recreational facility, or any business operated
30 under a permit issued pursuant to chapter 550. A person
31 providing retail concessionaire services involving the sale of
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1 food and drink or other tangible personal property within the
2 premises of an airport shall be subject to tax on the rental
3 of real property used for that purpose, but shall not be
4 subject to the tax on any license to use the property. For
5 purposes of this subparagraph, the term "sale" shall not
6 include the leasing of tangible personal property.
7 11. Property occupied pursuant to an instrument
8 calling for payments which the department has declared, in a
9 Technical Assistance Advisement issued on or before March 15,
10 1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),
11 Florida Administrative Code; provided that this subparagraph
12 shall only apply to property occupied by the same person
13 before and after the execution of the subject instrument and
14 only to those payments made pursuant to such instrument,
15 exclusive of renewals and extensions thereof occurring after
16 March 15, 1993.
17 12. Rented, leased, subleased, or licensed to a
18 concessionaire by a convention hall, exhibition hall,
19 auditorium, stadium, theater, arena, civic center, performing
20 arts center, or publicly owned recreational facility, during
21 an event at the facility, to be used by the concessionaire to
22 sell souvenirs, novelties, or other event-related products.
23 This subparagraph applies only to that portion of the rental,
24 lease, or license payment which is based on a percentage of
25 sales and not based on a fixed price.
26 12.13. Property used or occupied predominantly for
27 space flight business purposes. As used in this subparagraph,
28 "space flight business" means the manufacturing, processing,
29 or assembly of a space facility, space propulsion system,
30 space vehicle, satellite, or station of any kind possessing
31 the capacity for space flight, as defined by s. 212.02(23), or
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1 components thereof, and also means the following activities
2 supporting space flight: vehicle launch activities, flight
3 operations, ground control or ground support, and all
4 administrative activities directly related thereto. Property
5 shall be deemed to be used or occupied predominantly for space
6 flight business purposes if more than 50 percent of the
7 property, or improvements thereon, is used for one or more
8 space flight business purposes. Possession by a landlord,
9 lessor, or licensor of a signed written statement from the
10 tenant, lessee, or licensee claiming the exemption shall
11 relieve the landlord, lessor, or licensor from the
12 responsibility of collecting the tax, and the department shall
13 look solely to the tenant, lessee, or licensee for recovery of
14 such tax if it determines that the exemption was not
15 applicable.
16 (3) The tax imposed by this section shall be in
17 addition to the total amount of the rental or license fee,
18 shall be charged by the lessor or person receiving the rent or
19 payment in and by a rental or license fee arrangement with the
20 lessee or person paying the rental or license fee, and shall
21 be due and payable at the time of the receipt of such rental
22 or license fee payment by the lessor or other person who
23 receives the rental or payment. Notwithstanding any other
24 provision of this chapter, the tax imposed by this section on
25 the rental, lease, or license for the use of a convention
26 hall, exhibition hall, auditorium, stadium, theater, arena,
27 civic center, performing arts center, or publicly owned
28 recreational facility to hold an event of not more than 7
29 consecutive days' duration shall be collected at the time of
30 the payment for that rental, lease, or license but is not due
31 and payable to the department until the first day of the month
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1 following the last day that the event for which the payment is
2 made is actually held, and becomes delinquent on the 21st day
3 of that month. The owner, lessor, or person receiving the rent
4 or license fee shall remit the tax to the department at the
5 times and in the manner hereinafter provided for dealers to
6 remit taxes under this chapter. The same duties imposed by
7 this chapter upon dealers in tangible personal property
8 respecting the collection and remission of the tax; the making
9 of returns; the keeping of books, records, and accounts; and
10 the compliance with the rules and regulations of the
11 department in the administration of this chapter shall apply
12 to and be binding upon all persons who manage any leases or
13 operate real property, hotels, apartment houses,
14 roominghouses, or tourist and trailer camps and all persons
15 who collect or receive rents or license fees taxable under
16 this chapter on behalf of owners or lessors.
17 (10) Separately stated charges imposed by a convention
18 hall, exhibition hall, auditorium, stadium, theater, arena,
19 civic center, performing arts center, or publicly owned
20 recreational facility upon a lessee or licensee for food,
21 drink, or services required or available in connection with a
22 lease or license to use real property, including charges for
23 laborers, stagehands, ticket takers, event staff, security
24 personnel, cleaning staff, and other event-related personnel,
25 advertising, and credit card processing, are exempt from the
26 tax imposed by this section.
27 Section 44. Effective July 1, 2003, paragraph (b) of
28 subsection (1), paragraph (a) of subsection (2), and
29 subsection (3) of section 212.04, Florida Statutes, are
30 amended to read:
31 212.04 Admissions tax; rate, procedure, enforcement.--
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1 (1)
2 (b) For the exercise of such privilege, a tax is
3 levied at the rate of 6 percent of sales price, or the actual
4 value received from such admissions, which 6 percent shall be
5 added to and collected with all such admissions from the
6 purchaser thereof, and such tax shall be paid for the exercise
7 of the privilege as defined in the preceding paragraph. Each
8 ticket must show on its face the actual sales price of the
9 admission, or each dealer selling the admission must
10 prominently display at the box office or other place where the
11 admission charge is made a notice disclosing the price of the
12 admission, and the tax shall be computed and collected on the
13 basis of the actual price of the admission charged by the
14 dealer. The sale price or actual value of admission shall, for
15 the purpose of this chapter, be that price remaining after
16 deduction of federal taxes and state or locally imposed or
17 authorized seat surcharges, taxes, or fees, if any, imposed
18 upon such admission. The sale price or actual value does not
19 include separately stated ticket service charges that are
20 imposed by a facility ticket office or a ticketing service and
21 added to a separately stated, established ticket price., and
22 The rate of tax on each admission shall be according to the
23 brackets established by s. 212.12(9).
24 (2)
25 (a)1. No tax shall be levied on admissions to athletic
26 or other events sponsored by elementary schools, junior high
27 schools, middle schools, high schools, community colleges,
28 public or private colleges and universities, deaf and blind
29 schools, facilities of the youth services programs of the
30 Department of Children and Family Services, and state
31 correctional institutions when only student, faculty, or
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1 inmate talent is used. However, this exemption shall not apply
2 to admission to athletic events sponsored by an institution
3 within the State University System, and the proceeds of the
4 tax collected on such admissions shall be retained and used by
5 each institution to support women's athletics as provided in
6 s. 240.533(3)(c).
7 2.a. No tax shall be levied on dues, membership fees,
8 and admission charges imposed by not-for-profit sponsoring
9 organizations. To receive this exemption, the sponsoring
10 organization must qualify as a not-for-profit entity under the
11 provisions of s. 501(c)(3) of the Internal Revenue Code of
12 1954, as amended.
13 b. No tax shall be levied on admission charges to an
14 event sponsored by a governmental entity, sports authority, or
15 sports commission when held in a convention hall, exhibition
16 hall, auditorium, stadium, theater, arena, civic center,
17 performing arts center, or publicly owned recreational
18 facility and when 100 percent of the risk of success or
19 failure lies with the sponsor of the event and 100 percent of
20 the funds at risk for the event belong to the sponsor, and
21 student or faculty talent is not exclusively used. As used in
22 this sub-subparagraph, the terms "sports authority" and
23 "sports commission" mean a nonprofit organization that is
24 exempt from federal income tax under s. 501(c)(3) of the
25 Internal Revenue Code and that contracts with a county or
26 municipal government for the purpose of promoting and
27 attracting sports-tourism events to the community with which
28 it contracts.
29 3. No tax shall be levied on an admission paid by a
30 student, or on the student's behalf, to any required place of
31 sport or recreation if the student's participation in the
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1 sport or recreational activity is required as a part of a
2 program or activity sponsored by, and under the jurisdiction
3 of, the student's educational institution, provided his or her
4 attendance is as a participant and not as a spectator.
5 4. No tax shall be levied on admissions to the
6 National Football League championship game, on admissions to
7 any semifinal game or championship game of a national
8 collegiate tournament, or on admissions to a Major League
9 Baseball all-star game.
10 5. A participation fee or sponsorship fee imposed by a
11 governmental entity as described in s. 212.08(6) for an
12 athletic or recreational program is exempt when the
13 governmental entity by itself, or in conjunction with an
14 organization exempt under s. 501(c)(3) of the Internal Revenue
15 Code of 1954, as amended, sponsors, administers, plans,
16 supervises, directs, and controls the athletic or recreational
17 program.
18 6. Also exempt from the tax imposed by this section to
19 the extent provided in this subparagraph are admissions to
20 live theater, live opera, or live ballet productions in this
21 state which are sponsored by an organization that has received
22 a determination from the Internal Revenue Service that the
23 organization is exempt from federal income tax under s.
24 501(c)(3) of the Internal Revenue Code of 1954, as amended, if
25 the organization actively participates in planning and
26 conducting the event, is responsible for the safety and
27 success of the event, is organized for the purpose of
28 sponsoring live theater, live opera, or live ballet
29 productions in this state, has more than 10,000 subscribing
30 members and has among the stated purposes in its charter the
31 promotion of arts education in the communities which it
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1 serves, and will receive at least 20 percent of the net
2 profits, if any, of the events which the organization sponsors
3 and will bear the risk of at least 20 percent of the losses,
4 if any, from the events which it sponsors if the organization
5 employs other persons as agents to provide services in
6 connection with a sponsored event. Prior to March 1 of each
7 year, such organization may apply to the department for a
8 certificate of exemption for admissions to such events
9 sponsored in this state by the organization during the
10 immediately following state fiscal year. The application shall
11 state the total dollar amount of admissions receipts collected
12 by the organization or its agents from such events in this
13 state sponsored by the organization or its agents in the year
14 immediately preceding the year in which the organization
15 applies for the exemption. Such organization shall receive the
16 exemption only to the extent of $1.5 million multiplied by the
17 ratio that such receipts bear to the total of such receipts of
18 all organizations applying for the exemption in such year;
19 however, in no event shall such exemption granted to any
20 organization exceed 6 percent of such admissions receipts
21 collected by the organization or its agents in the year
22 immediately preceding the year in which the organization
23 applies for the exemption. Each organization receiving the
24 exemption shall report each month to the department the total
25 admissions receipts collected from such events sponsored by
26 the organization during the preceding month and shall remit to
27 the department an amount equal to 6 percent of such receipts
28 reduced by any amount remaining under the exemption. Tickets
29 for such events sold by such organizations shall not reflect
30 the tax otherwise imposed under this section.
31
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1 7. Also exempt from the tax imposed by this section
2 are entry fees for participation in freshwater fishing
3 tournaments.
4 8. Also exempt from the tax imposed by this section
5 are participation or entry fees charged to participants in a
6 game, race, or other sport or recreational event if spectators
7 are charged a taxable admission to such event.
8 9. No tax shall be levied on admissions to any
9 postseason collegiate football game sanctioned by the National
10 Collegiate Athletic Association.
11 (3) Such taxes shall be paid and remitted at the same
12 time and in the same manner as provided for remitting taxes on
13 sales of tangible personal property, as hereinafter provided.
14 Notwithstanding any other provision of this chapter, the tax
15 on admission to an event at a convention hall, exhibition
16 hall, auditorium, stadium, theater, arena, civic center,
17 performing arts center, or publicly owned recreational
18 facility shall be collected at the time of payment for the
19 admission but is not due to the department until the first day
20 of the month following the actual date of the event for which
21 the admission is sold and becomes delinquent on the 21st day
22 of that month.
23 Section 45. Effective July 1, 2006, paragraph (b) of
24 subsection (1), paragraph (a) of subsection (2), and
25 subsection (3) of section 212.04, Florida Statutes, as amended
26 by this act, are amended to read:
27 212.04 Admissions tax; rate, procedure, enforcement.--
28 (1)
29 (b) For the exercise of such privilege, a tax is
30 levied at the rate of 6 percent of sales price, or the actual
31 value received from such admissions, which 6 percent shall be
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1 added to and collected with all such admissions from the
2 purchaser thereof, and such tax shall be paid for the exercise
3 of the privilege as defined in the preceding paragraph. Each
4 ticket must show on its face the actual sales price of the
5 admission, or each dealer selling the admission must
6 prominently display at the box office or other place where the
7 admission charge is made a notice disclosing the price of the
8 admission, and the tax shall be computed and collected on the
9 basis of the actual price of the admission charged by the
10 dealer. The sale price or actual value of admission shall, for
11 the purpose of this chapter, be that price remaining after
12 deduction of federal taxes and state or locally imposed or
13 authorized seat surcharges, taxes, or fees, if any, imposed
14 upon such admission and. The sale price or actual value does
15 not include separately stated ticket service charges that are
16 imposed by a facility ticket office or a ticketing service and
17 added to a separately stated, established ticket price. the
18 rate of tax on each admission shall be according to the
19 brackets established by s. 212.12(9).
20 (2)
21 (a)1. No tax shall be levied on admissions to athletic
22 or other events sponsored by elementary schools, junior high
23 schools, middle schools, high schools, community colleges,
24 public or private colleges and universities, deaf and blind
25 schools, facilities of the youth services programs of the
26 Department of Children and Family Services, and state
27 correctional institutions when only student, faculty, or
28 inmate talent is used. However, this exemption shall not apply
29 to admission to athletic events sponsored by an institution
30 within the State University System, and the proceeds of the
31 tax collected on such admissions shall be retained and used by
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1 each institution to support women's athletics as provided in
2 s. 240.533(3)(c).
3 2.2.a. No tax shall be levied on dues, membership
4 fees, and admission charges imposed by not-for-profit
5 sponsoring organizations. To receive this exemption, the
6 sponsoring organization must qualify as a not-for-profit
7 entity under the provisions of s. 501(c)(3) of the Internal
8 Revenue Code of 1954, as amended.
9 b. No tax shall be levied on admission charges to an
10 event sponsored by a governmental entity, sports authority, or
11 sports commission when held in a convention hall, exhibition
12 hall, auditorium, stadium, theater, arena, civic center,
13 performing arts center, or publicly owned recreational
14 facility and when 100 percent of the risk of success or
15 failure lies with the sponsor of the event and 100 percent of
16 the funds at risk for the event belong to the sponsor, and
17 student or faculty talent is not exclusively used. As used in
18 this sub-subparagraph, the terms "sports authority" and
19 "sports commission" mean a nonprofit organization that is
20 exempt from federal income tax under s. 501(c)(3) of the
21 Internal Revenue Code and that contracts with a county or
22 municipal government for the purpose of promoting and
23 attracting sports-tourism events to the community with which
24 it contracts.
25 3. No tax shall be levied on an admission paid by a
26 student, or on the student's behalf, to any required place of
27 sport or recreation if the student's participation in the
28 sport or recreational activity is required as a part of a
29 program or activity sponsored by, and under the jurisdiction
30 of, the student's educational institution, provided his or her
31 attendance is as a participant and not as a spectator.
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1 4. No tax shall be levied on admissions to the
2 National Football League championship game, on admissions to
3 any semifinal game or championship game of a national
4 collegiate tournament, or on admissions to a Major League
5 Baseball all-star game.
6 5. A participation fee or sponsorship fee imposed by a
7 governmental entity as described in s. 212.08(6) for an
8 athletic or recreational program is exempt when the
9 governmental entity by itself, or in conjunction with an
10 organization exempt under s. 501(c)(3) of the Internal Revenue
11 Code of 1954, as amended, sponsors, administers, plans,
12 supervises, directs, and controls the athletic or recreational
13 program.
14 6. Also exempt from the tax imposed by this section to
15 the extent provided in this subparagraph are admissions to
16 live theater, live opera, or live ballet productions in this
17 state which are sponsored by an organization that has received
18 a determination from the Internal Revenue Service that the
19 organization is exempt from federal income tax under s.
20 501(c)(3) of the Internal Revenue Code of 1954, as amended, if
21 the organization actively participates in planning and
22 conducting the event, is responsible for the safety and
23 success of the event, is organized for the purpose of
24 sponsoring live theater, live opera, or live ballet
25 productions in this state, has more than 10,000 subscribing
26 members and has among the stated purposes in its charter the
27 promotion of arts education in the communities which it
28 serves, and will receive at least 20 percent of the net
29 profits, if any, of the events which the organization sponsors
30 and will bear the risk of at least 20 percent of the losses,
31 if any, from the events which it sponsors if the organization
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1 employs other persons as agents to provide services in
2 connection with a sponsored event. Prior to March 1 of each
3 year, such organization may apply to the department for a
4 certificate of exemption for admissions to such events
5 sponsored in this state by the organization during the
6 immediately following state fiscal year. The application shall
7 state the total dollar amount of admissions receipts collected
8 by the organization or its agents from such events in this
9 state sponsored by the organization or its agents in the year
10 immediately preceding the year in which the organization
11 applies for the exemption. Such organization shall receive the
12 exemption only to the extent of $1.5 million multiplied by the
13 ratio that such receipts bear to the total of such receipts of
14 all organizations applying for the exemption in such year;
15 however, in no event shall such exemption granted to any
16 organization exceed 6 percent of such admissions receipts
17 collected by the organization or its agents in the year
18 immediately preceding the year in which the organization
19 applies for the exemption. Each organization receiving the
20 exemption shall report each month to the department the total
21 admissions receipts collected from such events sponsored by
22 the organization during the preceding month and shall remit to
23 the department an amount equal to 6 percent of such receipts
24 reduced by any amount remaining under the exemption. Tickets
25 for such events sold by such organizations shall not reflect
26 the tax otherwise imposed under this section.
27 7. Also exempt from the tax imposed by this section
28 are entry fees for participation in freshwater fishing
29 tournaments.
30 8. Also exempt from the tax imposed by this section
31 are participation or entry fees charged to participants in a
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1 game, race, or other sport or recreational event if spectators
2 are charged a taxable admission to such event.
3 9. No tax shall be levied on admissions to any
4 postseason collegiate football game sanctioned by the National
5 Collegiate Athletic Association.
6 (3) Such taxes shall be paid and remitted at the same
7 time and in the same manner as provided for remitting taxes on
8 sales of tangible personal property, as hereinafter provided.
9 Notwithstanding any other provision of this chapter, the tax
10 on admission to an event at a convention hall, exhibition
11 hall, auditorium, stadium, theater, arena, civic center,
12 performing arts center, or publicly owned recreational
13 facility shall be collected at the time of payment for the
14 admission but is not due to the department until the first day
15 of the month following the actual date of the event for which
16 the admission is sold and becomes delinquent on the 21st day
17 of that month.
18 Section 46. Paragraph (g) of subsection (10) of
19 section 212.02, Florida Statutes, is amended to read:
20 212.02 Definitions.--The following terms and phrases
21 when used in this chapter have the meanings ascribed to them
22 in this section, except where the context clearly indicates a
23 different meaning:
24 (10) "Lease," "let," or "rental" means leasing or
25 renting of living quarters or sleeping or housekeeping
26 accommodations in hotels, apartment houses, roominghouses,
27 tourist or trailer camps and real property, the same being
28 defined as follows:
29 (g) "Lease," "let," or "rental" also means the leasing
30 or rental of tangible personal property and the possession or
31 use thereof by the lessee or rentee for a consideration,
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1 without transfer of the title of such property, except as
2 expressly provided to the contrary herein. The term "lease,"
3 "let," or "rental" does not mean hourly, daily, or mileage
4 charges, to the extent that such charges are subject to the
5 jurisdiction of the United States Interstate Commerce
6 Commission, when such charges are paid by reason of the
7 presence of railroad cars owned by another on the tracks of
8 the taxpayer, or charges made pursuant to car service
9 agreements. The term "lease," "let," "rental," or "license"
10 does not include payments made to an owner of high-voltage
11 bulk transmission facilities in connection with the possession
12 or control of such facilities by a regional transmission
13 organization, independent system operator, or similar entity
14 under the jurisdiction of the Federal Energy Regulatory
15 Commission. However, where two taxpayers, in connection with
16 the interchange of facilities, rent or lease property, each to
17 the other, for use in providing or furnishing any of the
18 services mentioned in s. 166.231, the term "lease or rental"
19 means only the net amount of rental involved.
20 Section 47. Present subsections (12) and (13) of
21 section 212.212, Florida Statutes, are redesignated as (13)
22 and (14), respectively, and a new subsection (12) is added to
23 that section, to read:
24 212.12 Dealer's credit for collecting tax; penalties
25 for noncompliance; powers of Department of Revenue in dealing
26 with delinquents; brackets applicable to taxable transactions;
27 records required.--
28 (12) If it is determined upon audit that a dealer has
29 collected and remitted taxes by applying the applicable tax
30 rate to each transaction as described in subsection (9) and
31 rounding the tax due to the nearest whole cent rather than
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1 applying the appropriate bracket system provided by statute or
2 department rule, the dealer may not be held liable for
3 additional tax, penalty, and interest resulting from such
4 failure if all of the following requirements are met:
5 (a) The dealer acted in a good-faith belief that
6 rounding to the nearest whole cent was the proper method of
7 determining the amount of tax due on each taxable transaction;
8 (b) The dealer timely reported and remitted all taxes
9 collected on each taxable transaction; and
10 (c) The dealer agrees in writing to future compliance
11 with the statutes and rules concerning brackets applicable to
12 the dealer's transactions.
13 Section 48. It is the intent of the Legislature that
14 the amendments to section 212.12, Florida Statutes, made by
15 this act apply to all pending sales and use tax audits or
16 other actions or inquiries, including those currently under
17 protest or in litigation. The amendments to section 212.12,
18 Florida Statutes, made by this act do not create any right to
19 refund for taxes previously assessed and paid in regard to
20 audits or other actions or inquiries that are no longer
21 pending.
22 Section 49. Paragraph (b) of subsection (1) of section
23 206.9825, Florida Statutes, is reenacted and amended to read:
24 206.9825 Aviation fuel tax.--
25 (1)
26 (b) Any licensed wholesaler or terminal supplier that
27 delivers aviation fuel to an air carrier offering
28 transcontinental jet service and that, after January 1, 1996,
29 increases the air carrier's Florida workforce by more than
30 1000 percent and by 250 or more full-time equivalent employee
31 positions, may receive a credit or refund as the ultimate
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1 vendor of the aviation fuel for the 6.9 cents excise tax
2 previously paid, provided that the air carrier has no facility
3 for fueling highway vehicles from the tank in which the
4 aviation fuel is stored. In calculating the new or additional
5 Florida full-time equivalent employee positions, any full-time
6 equivalent employee positions of parent or subsidiary
7 corporations which existed before January 1, 1996, shall not
8 be counted toward reaching the Florida employment increase
9 thresholds. The refund allowed under this paragraph is in
10 furtherance of the goals and policies of the State
11 Comprehensive Plan set forth in s. 187.201(17)(a), (b)1., 2.,
12 (18)(a), (b)1., 4., (20)(a), (b)5., (22)(a), (b)1., 2., 4.,
13 7., 9., and 12. This paragraph will expire on July 1, 2001.
14 Section 50. Notwithstanding the percentage increase
15 provided in section 218.21(6), Florida Statutes, for the
16 purpose of calculating distributions made under section
17 212.20(6)(d)6., Florida Statutes, for the 2001-2002 fiscal
18 year, the percentage increase for any government exercising
19 municipal powers under Section 6(f) of Article VIII of the
20 State Constitution shall be calculated as the revenues from
21 the Revenue Sharing Trust Fund for Municipalities for the
22 1999-2000 fiscal year and revenues from the Municipal
23 Financial Assistance Trust Fund for the 1999-2000 fiscal year,
24 minus one. Notwithstanding this section, actual payments
25 during fiscal year 2001-2002 shall not be affected by this
26 provision and such recalculated amount shall be used to
27 determine the percentage increase for the 2002-2003 fiscal
28 year, as provided in section 218.21(6)(b), Florida Statutes.
29 Any adjustment because of an overpayment during the 2001-2002
30 fiscal year shall be treated as a credit to the payment in
31 fiscal year 2002-2003.
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1 Section 51. Except as otherwise expressly provided in
2 this act, this act shall take effect upon becoming a law.
3
4 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
5 SB 2302
6
7 The Committee Substitute made the following changes to SB
2302:
8
1. Clarifies that payments to utility companies by a
9 regional transmission organization are not subject to
the rental tax.
10
2. Adds language taken from the Department of Revenue's
11 current rule, providing that in certain situations,
dealers are not required to obtain new resale
12 certificates from purchasers annually.
13 3. Provides for the forgiveness of tax, penalty and
interest resulting from failure to use the traditional
14 rounding of tax, under certain circumstances.
15 4. Extends for an additional 3 years, from 2003 to 2006,
the sales tax exemptions awarded to civic centers,
16 convention halls, stadiums, performing arts centers,
exhibition halls, auditoriums, stadiums, theaters,
17 arenas, or publicly-owned recreational facilities.
18 5. Adds to the electronic reporting requirements, the
requirement to file unemployment compensation taxes
19 electronically for certain employers. The bill also
lowers the electronic filing and payment threshold from
20 $50,000 to $30,000, instead of in $10,000 increments
over 4 years.
21
6. Reenacts the aviation fuel tax credit for certain
22 airlines. This provision expired July 1, 2001.
23 7. The bill cleans-up language to the Municipal Revenue
Sharing provisions in ss. 218.21(6) and 212.20(6)(d)6.,
24 in relation to Metro-Dade's annual growth increase.
25
26
27
28
29
30
31
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