Senate Bill sb2436

    Florida Senate - 2002                                  SB 2436

    By Senator Campbell





    33-1669-02

  1                      A bill to be entitled

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

  3         other transactions; amending s. 212.05, F.S.;

  4         revising conditions on the postponement of the

  5         tax upon tangible personal property that has

  6         originally been purchased exempt from the tax

  7         for use exclusively for lease and that is

  8         subsequently converted to the owner's own use;

  9         providing an effective date.

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

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13         Section 1.  Paragraph (b) of subsection (1) of section

14  212.05, Florida Statutes, is amended to read:

15         212.05  Sales, storage, use tax.--It is hereby declared

16  to be the legislative intent that every person is exercising a

17  taxable privilege who engages in the business of selling

18  tangible personal property at retail in this state, including

19  the business of making mail order sales, or who rents or

20  furnishes any of the things or services taxable under this

21  chapter, or who stores for use or consumption in this state

22  any item or article of tangible personal property as defined

23  herein and who leases or rents such property within the state.

24         (b)  At the rate of 6 percent of the cost price of each

25  item or article of tangible personal property when the same is

26  not sold but is used, consumed, distributed, or stored for use

27  or consumption in this state; however, for tangible property

28  originally purchased exempt from tax for use exclusively for

29  lease while in this state and which is converted to the

30  owner's own use while in this state, tax may be paid on the

31  fair market value of the property at the time of conversion.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2002                                  SB 2436
    33-1669-02




  1  If the fair market value of the property cannot be determined,

  2  use tax at the time of conversion shall be based on the

  3  owner's acquisition cost. Under no circumstances may the

  4  aggregate amount of sales tax from leasing the property and

  5  use tax due at the time of conversion be less than the total

  6  sales tax that would have been due on the original acquisition

  7  cost paid by the owner.

  8         Section 2.  This act shall take effect July 1, 2002.

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11                          SENATE SUMMARY

12    Revises conditions on postponing the payment of the tax
      on sales, use, and other transactions which applies to
13    tangible personal property that is originally purchased
      exempt from tax for use exclusively for lease and that is
14    subsequently converted to the owner's own use.

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CODING: Words stricken are deletions; words underlined are additions.