HB 1355

1	A bill to be entitled
2	An act relating to the Streamlined Sales and Use Tax
3	Agreement; amending s. 212.02, F.S.; redefining the terms
4	"lease," "let," "rental," "sales price," and "tangible
5	personal property" and defining the terms "agent,"
6	"seller," "certified service provider," "direct mail,"
7	"prewritten computer software," and "delivery charges" for
8	purposes of sales and use taxes; providing applicability;
9	amending s. 212.05, F.S.; deleting provisions relating to
10	the rental or lease of motor vehicles; providing for
11	determination of the location of the sale or recharge of
12	prepaid calling arrangements; amending s. 212.054, F.S.;
13	providing the time for applying changes in local option
14	tax rates; providing guidelines for determining the situs
15	of certain transactions; providing for notice of a change
16	in a local option sales tax rate; providing for
17	applicability of s. 202.22(2), F.S., relating to
18	determination of local tax situs, for the purpose of
19	providing and maintaining a database of sales and use tax
20	rates for local jurisdictions; amending s. 212.06, F.S.;
21	defining terms; providing general rules for determining
22	the location of transactions involving the retail sale of
23	tangible personal property, digital goods, or services and
24	for the lease or rental of tangible personal property;
25	requiring certain business purchasers to obtain multiple
26	points of use exemption forms; providing for use of such
27	forms; requiring certain purchasers of direct mail to
28	obtain a direct mail form; providing for the use of such
29	form; amending s. 212.08, F.S., relating to exemptions
30	from the sales and use tax; defining and redefining terms
31	used with respect to the exemption for general groceries;
32	defining and redefining terms used with respect to the
33	exemption for medical products and supplies; revising that
34	exemption; amending s. 212.095, F.S.; revising provisions
35	relating to refunds; creating s. 212.094, F.S.; providing
36	that a purchaser seeking a refund or credit under ch. 212,
37	F.S., must submit a written request for the refund or
38	credit; providing a time period within which the dealer
39	must respond to the written request; amending s. 212.17,
40	F.S.; prescribing additional guidelines and procedures
41	with respect to dealer credits for taxes paid on worthless
42	accounts; creating s. 213.052, F.S.; providing for notice
43	of state sales or use tax rate changes; creating s.
44	213.0521, F.S.; providing the effective date for state
45	sales and use tax rate changes; amending s. 213.21, F.S.;
46	providing for amnesty to certain sellers for uncollected
47	or unpaid sales and use taxes; amending s. 213.256, F.S.,
48	relating to simplified sales and use tax administration;
49	defining terms; providing that authority to administer the
50	Streamlined Sales and Use Tax Agreement rests with a
51	governing board comprised of representatives of member
52	states; providing for continuing effect of the agreement;
53	providing for annual recertification by member states;
54	creating s. 213.2567, F.S.; providing for the registration
55	of sellers, the certification of a person as a certified
56	service provider, and the certification of a software
57	program as a certified automated system by the governing
58	board under the Streamlined Sales and Use Tax Agreement;
59	amending ss. 212.055, 212.07, 212.15, and 212.183, F.S.;
60	conforming cross references; repealing s. 212.0596(6),
61	F.S., relating to the exemption from collecting and
62	remitting any local option surtax for certain dealers who
63	make mail order sales; declaring legislative intent;
64	providing for the adoption of emergency rules; providing
65	an effective date.
66
67	Be It Enacted by the Legislature of the State of Florida:
68
69	Section 1.  Paragraph (g) of subsection (10) and
70	subsections (16) and (19) of section 212.02, Florida Statutes,
71	are amended, and subsections (35), (36), (37), (38),(39), and
72	(40) are added to said section, to read:
73	212.02  Definitions.--The following terms and phrases when
74	used in this chapter have the meanings ascribed to them in this
75	section, except where the context clearly indicates a different
76	meaning:
77	(10)  "Lease," "let," or "rental" means leasing or renting
78	of living quarters or sleeping or housekeeping accommodations in
79	hotels, apartment houses, roominghouses, tourist or trailer
80	camps and real property, the same being defined as follows:
81	(g)1.  "Lease," "let," or "rental" also means any transfer
82	of possession or control of tangible personal property for a
83	fixed or indeterminate term for consideration. A clause for a
84	future option to purchase or to extend the agreement does not
85	preclude an agreement from being a lease or rental. This
86	definition shall be used for purposes of the sales and use tax
87	regardless of whether a transaction is characterized as a lease
88	or rental under generally accepted accounting principles, the
89	Internal Revenue Code, the Uniform Commercial Code, or other
90	provisions of federal, state, or local law. This definition
91	includes agreements covering motor vehicles and trailers if the
92	amount of consideration may be increased or decreased by
93	reference to the amount realized upon sale or disposition of the
94	property as defined in 26 U.S.C. s. 7701(h)(1). This definition
95	does not include:
96	a.  A transfer of possession or control of property under a
97	security agreement or deferred payment plan that requires the
98	transfer of title upon completion of the required payments;
99	b.  A transfer of possession or control of property under
100	an agreement that requires the transfer of title upon completion
101	of required payments and payment of an option price that does
102	not exceed the greater of $100 or 1 percent of the total
103	required payments; or
104	c.  A provision of tangible personal property along with an
105	operator for a fixed or indeterminate period of time. A
106	condition of this exclusion is that the operator is necessary
107	for the equipment to perform as designed. For the purpose of
108	this sub-subparagraph, an operator must do more than maintain,
109	inspect, or set up the tangible personal property. the leasing
110	or rental of tangible personal property and the possession or
111	use thereof by the lessee or rentee for a consideration, without
112	transfer of the title of such property, except as expressly
113	provided to the contrary herein.
114	2.  The term "lease," "let," or "rental" does not mean
115	hourly, daily, or mileage charges, to the extent that such
116	charges are subject to the jurisdiction of the United States
117	Interstate Commerce Commission, when such charges are paid by
118	reason of the presence of railroad cars owned by another on the
119	tracks of the taxpayer, or charges made pursuant to car service
120	agreements. The term "lease," "let," "rental," or "license" does
121	not include payments made to an owner of high-voltage bulk
122	transmission facilities in connection with the possession or
123	control of such facilities by a regional transmission
124	organization, independent system operator, or similar entity
125	under the jurisdiction of the Federal Energy Regulatory
126	Commission. However, where two taxpayers, in connection with the
127	interchange of facilities, rent or lease property, each to the
128	other, for use in providing or furnishing any of the services
129	mentioned in s. 166.231, the term "lease or rental" means only
130	the net amount of rental involved.
131	(16)(a)  "Sales price" applies to the measure subject to
132	sales tax and means the total amount of consideration, including
133	cash, credit, property, and services, for which personal
134	property or services are sold, leased, or rented, valued in
135	money, whether received in money or otherwise, without any
136	deduction for the following:
137	1.  The seller's cost of the property sold;
138	2.  The cost of materials used, labor or service cost,
139	interest, losses, all costs of transportation to the seller, all
140	taxes imposed on the seller, and any other expense of the
141	seller;
142	3.  Charges by the seller for any services necessary to
143	complete the sale, other than delivery and installation charges;
144	4.  Delivery charges; or
145	5.  Installation charges.
146	(b)  The term "sales price" does not include:
147	1.  Trade-ins allowed and taken at the time of sale if the
148	amount is separately stated on the invoice, bill of sale, or
149	similar document given to the purchaser;
150	2.  Discounts, including cash, term, or coupons, which are
151	not reimbursed by a third party, which are allowed by a seller,
152	and which are taken by a purchaser at the time of sale;
153	3.  Interest, financing, and carrying charges from credit
154	extended on the sale of personal property or services, if the
155	amount is separately stated on the invoice, bill of sale, or
156	similar document given to the purchaser; or
157	4.  Any taxes legally imposed directly on the consumer
158	which are separately stated on the invoice, bill of sale, or
159	similar document given to the purchaser.
160	(16)  "Sales price" means the total amount paid for
161	tangible personal property, including any services that are a
162	part of the sale, valued in money, whether paid in money or
163	otherwise, and includes any amount for which credit is given to
164	the purchaser by the seller, without any deduction therefrom on
165	account of the cost of the property sold, the cost of materials
166	used, labor or service cost, interest charged, losses, or any
167	other expense whatsoever. "Sales price" also includes the
168	consideration for a transaction which requires both labor and
169	material to alter, remodel, maintain, adjust, or repair tangible
170	personal property. Trade-ins or discounts allowed and taken at
171	the time of sale shall not be included within the purview of
172	this subsection. "Sales price" also includes the full face value
173	of any coupon used by a purchaser to reduce the price paid to a
174	retailer for an item of tangible personal property; where the
175	retailer will be reimbursed for such coupon, in whole or in
176	part, by the manufacturer of the item of tangible personal
177	property; or whenever it is not practicable for the retailer to
178	determine, at the time of sale, the extent to which
179	reimbursement for the coupon will be made. The term "sales
180	price" does not include federal excise taxes imposed upon the
181	retailer on the sale of tangible personal property. The term
182	"sales price" does include federal manufacturers' excise taxes,
183	even if the federal tax is listed as a separate item on the
184	invoice.
185	(19)  "Tangible personal property" means and includes
186	personal property which may be seen, weighed, measured, or
187	touched or is in any manner perceptible to the senses, including
188	electric power or energy, water, gas, steam, prewritten computer
189	software, boats, motor vehicles and mobile homes as defined in
190	s. 320.01(1) and (2), aircraft as defined in s. 330.27, and all
191	other types of vehicles.  The term "tangible personal property"
192	does not include stocks, bonds, notes, insurance, or other
193	obligations or securities; intangibles as defined by the
194	intangible tax law of the state; or pari-mutuel tickets sold or
195	issued under the racing laws of the state.
196	(35)  "Agent" means a person appointed by a principal or
197	authorized to act for the principal in a transaction involving
198	the sale of an item of tangible personal property. The term also
199	means a person appointed by a seller to represent the seller
200	before the states that are signatories to the Streamlined Sales
201	and Use Tax Agreement.
202	(36)  "Seller" means any person making sales, leases, or
203	rentals of personal property or services.
204	(37)  "Certified service provider" means an agent certified
205	under the Streamlined Sales and Use Tax Agreement to perform all
206	of the seller's sales tax functions, other than the seller's
207	obligation to remit tax on its own purchases.
208	(38)  "Direct mail" means printed material delivered or
209	distributed by United States mail or other delivery service to a
210	mass audience or to addressees on a mailing list provided by the
211	purchaser or at the direction of the purchaser when the cost of
212	the items is not billed directly to the recipients. The term
213	includes tangible personal property supplied directly or
214	indirectly by the purchaser to the direct mail seller for
215	inclusion in the package containing the printed material. The
216	term does not include multiple items of printed material
217	delivered to a single address.
218	(39)  "Prewritten computer software" means computer
219	software, including prewritten upgrades, which is not designed
220	and developed by the author or other creator to the
221	specifications of a specific purchaser. The combining of two or
222	more "prewritten computer software" programs or prewritten
223	portions thereof does not cause the combination to be other than
224	"prewritten computer software." The term includes software
225	designed and developed by the author or other creator to the
226	specifications of a specific purchaser when it is sold to a
227	person other than that purchaser. When a person modifies or
228	enhances computer software of which the person is not the author
229	or creator, the person shall be deemed to be the author or
230	creator only of such person's modifications or enhancements.
231	Prewritten computer software, or a prewritten portion thereof,
232	which is modified or enhanced to any degree, when such
233	modification or enhancement is designed and developed to the
234	specifications of a specific purchaser, remains "prewritten
235	computer software"; however, when there is a reasonable,
236	separately stated charge or an invoice or other statement of the
237	price given to the purchaser for such modification or
238	enhancement, such modification or enhancement does not
239	constitute "prewritten computer software."
240	(40)  "Delivery charges" means charges by the seller of
241	personal property or services for preparation and delivery to a
242	location designated by the purchaser of personal property or
243	services, including, but not limited to, transportation,
244	shipping, postage, handling, crating, and packing. The term does
245	not include the charges for delivery of "direct mail" as defined
246	by this section if the charges are separately stated on an
247	invoice or similar billing document given to the purchaser.
248	Section 2.  The amendment of the terms "lease," "let," and
249	"rental" in s. 212.02, Florida Statutes, made by this act
250	applies prospectively only, from January 1, 2005, and does not
251	apply retroactively to leases or rentals existing before that
252	date.
253	Section 3.  Paragraphs (c) and (e) of subsection (1) of
254	section 212.05, Florida Statutes, are amended to read:
255	212.05  Sales, storage, use tax.--It is hereby declared to
256	be the legislative intent that every person is exercising a
257	taxable privilege who engages in the business of selling
258	tangible personal property at retail in this state, including
259	the business of making mail order sales, or who rents or
260	furnishes any of the things or services taxable under this
261	chapter, or who stores for use or consumption in this state any
262	item or article of tangible personal property as defined herein
263	and who leases or rents such property within the state.
264	(1)  For the exercise of such privilege, a tax is levied on
265	each taxable transaction or incident, which tax is due and
266	payable as follows:
267	(c)  At the rate of 6 percent of the gross proceeds derived
268	from the lease or rental of tangible personal property, as
269	defined herein.; however, the following special provisions apply
270	to the lease or rental of motor vehicles:
271	1.  When a motor vehicle is leased or rented for a period
272	of less than 12 months:
273	a.  If the motor vehicle is rented in Florida, the entire
274	amount of such rental is taxable, even if the vehicle is dropped
275	off in another state.
276	b.  If the motor vehicle is rented in another state and
277	dropped off in Florida, the rental is exempt from Florida tax.
278	2.  Except as provided in subparagraph 3., for the lease or
279	rental of a motor vehicle for a period of not less than 12
280	months, sales tax is due on the lease or rental payments if the
281	vehicle is registered in this state; provided, however, that no
282	tax shall be due if the taxpayer documents use of the motor
283	vehicle outside this state and tax is being paid on the lease or
284	rental payments in another state.
285	3.  The tax imposed by this chapter does not apply to the
286	lease or rental of a commercial motor vehicle as defined in s.
287	316.003(66)(a) to one lessee or rentee for a period of not less
288	than 12 months when tax was paid on the purchase price of such
289	vehicle by the lessor. To the extent tax was paid with respect
290	to the purchase of such vehicle in another state, territory of
291	the United States, or the District of Columbia, the Florida tax
292	payable shall be reduced in accordance with the provisions of s.
293	212.06(7). This subparagraph shall only be available when the
294	lease or rental of such property is an established business or
295	part of an established business or the same is incidental or
296	germane to such business.
297	(e)1.  At the rate of 6 percent on charges for:
298	a.  Prepaid calling arrangements. The tax on charges for
299	prepaid calling arrangements shall be collected at the time of
300	sale and remitted by the selling dealer.
301	(I)  "Prepaid calling arrangement" means the separately
302	stated retail sale by advance payment of communications services
303	that consist exclusively of telephone calls originated by using
304	an access number, authorization code, or other means that may be
305	manually, electronically, or otherwise entered and that are sold
306	in predetermined units or dollars whose number declines with use
307	in a known amount.
308	(II)  The sale or recharge of the prepaid calling
309	arrangement is deemed to take place in accordance with paragraph
310	212.06(3)(d). In the case of a sale of a mobile communications
311	service that is a prepaid calling arrangement, the retail sale
312	is sourced at If the sale or recharge of the prepaid calling
313	arrangement does not take place at the dealer's place of
314	business, it shall be deemed to take place at the customer's
315	shipping address or, if no item is shipped, at the customer's
316	address or the location associated with the customer's mobile
317	telephone number.
318	(III)  The sale or recharge of a prepaid calling
319	arrangement shall be treated as a sale of tangible personal
320	property for purposes of this chapter, whether or not a tangible
321	item evidencing such arrangement is furnished to the purchaser,
322	and such sale within this state subjects the selling dealer to
323	the jurisdiction of this state for purposes of this subsection.
324	b.  The installation of telecommunication and telegraphic
325	equipment.
326	c.  Electrical power or energy, except that the tax rate
327	for charges for electrical power or energy is 7 percent.
328	2.  The provisions of s. 212.17(3), regarding credit for
329	tax paid on charges subsequently found to be worthless, shall be
330	equally applicable to any tax paid under the provisions of this
331	section on charges for prepaid calling arrangements,
332	telecommunication or telegraph services, or electric power
333	subsequently found to be uncollectible. The word "charges" in
334	this paragraph does not include any excise or similar tax levied
335	by the Federal Government, any political subdivision of the
336	state, or any municipality upon the purchase, sale, or recharge
337	of prepaid calling arrangements or upon the purchase or sale of
338	telecommunication, television system program, or telegraph
339	service or electric power, which tax is collected by the seller
340	from the purchaser.
341	Section 4.  Section 212.054, Florida Statutes, is amended
342	to read:
343	212.054  Discretionary sales surtax; limitations,
344	administration, and collection.--
345	(1)  No general excise tax on sales shall be levied by the
346	governing body of any county unless specifically authorized in
347	s. 212.055. Any general excise tax on sales authorized pursuant
348	to said section shall be administered and collected exclusively
349	as provided in this section.
350	(2)(a)  The tax imposed by the governing body of any county
351	authorized to so levy pursuant to s. 212.055 shall be a
352	discretionary surtax on all transactions occurring in the county
353	which transactions are subject to the state tax imposed on
354	sales, use, services, rentals, admissions, and other
355	transactions by this chapter and communications services as
356	defined for purposes of chapter 202. The surtax, if levied,
357	shall be computed as the applicable rate or rates authorized
358	pursuant to s. 212.055 times the amount of taxable sales and
359	taxable purchases representing such transactions.  If the surtax
360	is levied on the sale of an item of tangible personal property
361	or on the sale of a service, the surtax shall be computed by
362	multiplying the rate imposed by the county within which the sale
363	occurs by the amount of the taxable sale. The sale of an item of
364	tangible personal property or the sale of a service is not
365	subject to the surtax if the property, the service, or the
366	tangible personal property representing the service is delivered
367	within a county that does not impose a discretionary sales
368	surtax.
369	(b)  However:
370	1.  The sales amount above $5,000 on any item of tangible
371	personal property shall not be subject to the surtax. However,
372	charges for prepaid calling arrangements, as defined in s.
373	212.05(1)(e)1.a., shall be subject to the surtax. For purposes
374	of administering the $5,000 limitation on an item of tangible
375	personal property, if two or more taxable items of tangible
376	personal property are sold to the same purchaser at the same
377	time and, under generally accepted business practice or industry
378	standards or usage, are normally sold in bulk or are items that,
379	when assembled, comprise a working unit or part of a working
380	unit, such items must be considered a single item for purposes
381	of the $5,000 limitation when supported by a charge ticket,
382	sales slip, invoice, or other tangible evidence of a single sale
383	or rental.
384	2.  In the case of utility services covering a period
385	starting before and ending after the effective date of the
386	surtax, the rate shall apply as follows:
387	a.  In the case of a rate adoption or increase, the new
388	rate shall apply to the first billing period starting on or
389	after the effective date of the surtax or increase.
390	b.  In the case of a rate decrease or termination, the new
391	rate shall apply to bills rendered on or after the effective
392	date of the rate change. billed on or after the effective date
393	of any such surtax, the entire amount of the charge for utility
394	services shall be subject to the surtax. In the case of utility
395	services billed after the last day the surtax is in effect, the
396	entire amount of the charge on said items shall not be subject
397	to the surtax.
398
399	"Utility service," as used in this section, does not include any
400	communications services as defined in chapter 202.
401	3.  In the case of written contracts which are signed prior
402	to the effective date of any such surtax for the construction of
403	improvements to real property or for remodeling of existing
404	structures, the surtax shall be paid by the contractor
405	responsible for the performance of the contract.  However, the
406	contractor may apply for one refund of any such surtax paid on
407	materials necessary for the completion of the contract.  Any
408	application for refund shall be made no later than 15 months
409	following initial imposition of the surtax in that county.  The
410	application for refund shall be in the manner prescribed by the
411	department by rule.  A complete application shall include proof
412	of the written contract and of payment of the surtax.  The
413	application shall contain a sworn statement, signed by the
414	applicant or its representative, attesting to the validity of
415	the application.  The department shall, within 30 days after
416	approval of a complete application, certify to the county
417	information necessary for issuance of a refund to the applicant.
418	Counties are hereby authorized to issue refunds for this purpose
419	and shall set aside from the proceeds of the surtax a sum
420	sufficient to pay any refund lawfully due.  Any person who
421	fraudulently obtains or attempts to obtain a refund pursuant to
422	this subparagraph, in addition to being liable for repayment of
423	any refund fraudulently obtained plus a mandatory penalty of 100
424	percent of the refund, is guilty of a felony of the third
425	degree, punishable as provided in s. 775.082, s. 775.083, or s.
426	775.084.
427	4.  In the case of any vessel, railroad, or motor vehicle
428	common carrier entitled to partial exemption from tax imposed
429	under this chapter pursuant to s. 212.08(4), (8), or (9), the
430	basis for imposition of surtax shall be the same as provided in
431	s. 212.08 and the ratio shall be applied each month to total
432	purchases in this state of property qualified for proration
433	which is delivered or sold in the taxing county to establish the
434	portion used and consumed in intracounty movement and subject to
435	surtax.
436	(3)  For purposes of this section, a retail sale, lease, or
437	rental of tangible personal property, a digital good, or a
438	service shall be deemed to have occurred in a county imposing
439	the surtax when the location where the sale is deemed to take
440	place in accordance with s. 212.06(3) is located in a county
441	that imposes a surtax.
442	(4)(3)  For the purpose of this section, a transaction
443	shall be deemed to have occurred in a county imposing the surtax
444	when:
445	(a)1.  Notwithstanding subsection (3), the retail sale that
446	is a modular home or manufactured home that is not a mobile home
447	includes an item of tangible personal property, a service, or
448	tangible personal property representing a service, and the item
449	of tangible personal property, the service, or the tangible
450	personal property representing the service is delivered within
451	the county.  If there is no reasonable evidence of delivery of a
452	service, the sale of a service is deemed to occur in the county
453	in which the purchaser accepts the bill of sale.
454	(b)2.  Notwithstanding subsection (3), the retail sale,
455	excluding a lease or rental, of any motor vehicle that does not
456	qualify as "transportation equipment," as defined in s.
457	212.06(3)(g), or the retail sale of a mobile home of a class or
458	type which is required to be registered in this state or in any
459	other state shall be deemed to have occurred only in the county
460	identified as the residence address of the purchaser on the
461	registration or title document for such property.
462	(c)  The real property that is leased or rented is located
463	in the county.
464	(d)  The transient rental transaction occurs in the county.
465	(e)(b)  The event for which an admission is charged is
466	located in the county.
467	(f)  The coin-operated amusement or vending machine is
468	located in the county.
469	(g)  The florist taking the original order to sell tangible
470	personal property is located in the county, notwithstanding any
471	other provision of this section.
472	(c)  The consumer of utility services is located in the
473	county.
474	(h)(d)1.  Notwithstanding subsection (3), the delivery
475	derived from the retail sale, excluding lease or rental, of any
476	aircraft that does not qualify as "transportation equipment" as
477	defined in s. 212.06(3)(g) or of any boat of a class or type
478	that is required to be registered, licensed, titled, or
479	documented in this state or by the United States Government to a
480	location in the county.
481	2.  The user of any aircraft or boat of a class or type
482	which is required to be registered, licensed, titled, or
483	documented in this state or by the United States Government
484	imported into the county for use, consumption, distribution, or
485	storage to be used or consumed in the county is located in the
486	county.
487	3.2.  However, it shall be presumed that such items used
488	outside the county for 6 months or longer before being imported
489	into the county were not purchased for use in the county, except
490	as provided in s. 212.06(7)(8)(b).
491	4.3.  This paragraph does not apply to the use or
492	consumption of items upon which a like tax of equal or greater
493	amount has been lawfully imposed and paid outside the county.
494	(i)(e)  The purchaser of any motor vehicle or mobile home
495	of a class or type which is required to be registered in this
496	state is a resident of the taxing county as determined by the
497	address appearing on or to be reflected on the registration
498	document for such property.
499	(j)(f)1.  Any motor vehicle or mobile home of a class or
500	type which is required to be registered in this state is
501	imported from another state into the taxing county by a user
502	residing therein for the purpose of use, consumption,
503	distribution, or storage in the taxing county.
504	2.  However, it shall be presumed that such items used
505	outside the taxing county for 6 months or longer before being
506	imported into the county were not purchased for use in the
507	county.
508	(g)  The real property which is leased or rented is located
509	in the county.
510	(h)  The transient rental transaction occurs in the county.
511	(i)  The delivery of any aircraft or boat of a class or
512	type which is required to be registered, licensed, titled, or
513	documented in this state or by the United States Government is
514	to a location in the county. However, this paragraph does not
515	apply to the use or consumption of items upon which a like tax
516	of equal or greater amount has been lawfully imposed and paid
517	outside the county.
518	(k)(j)  The dealer owing a use tax on purchases or leases
519	is located in the county.
520	(k)  The delivery of tangible personal property other than
521	that described in paragraph (d), paragraph (e), or paragraph (f)
522	is made to a location outside the county, but the property is
523	brought into the county within 6 months after delivery, in which
524	event, the owner must pay the surtax as a use tax.
525	(l)  The coin-operated amusement or vending machine is
526	located in the county.
527	(m)  The florist taking the original order to sell tangible
528	personal property is located in the county, notwithstanding any
529	other provision of this section.
530	(5)(4)(a)  The department shall administer, collect, and
531	enforce the tax authorized under s. 212.055 pursuant to the same
532	procedures used in the administration, collection, and
533	enforcement of the general state sales tax imposed under the
534	provisions of this chapter, except as provided in this section.
535	The provisions of this chapter regarding interest and penalties
536	on delinquent taxes shall apply to the surtax.  Discretionary
537	sales surtaxes shall not be included in the computation of
538	estimated taxes pursuant to s. 212.11. Notwithstanding any other
539	provision of law, a dealer need not separately state the amount
540	of the surtax on the charge ticket, sales slip, invoice, or
541	other tangible evidence of sale.  For the purposes of this
542	section and s. 212.055, the "proceeds" of any surtax means all
543	funds collected and received by the department pursuant to a
544	specific authorization and levy under s. 212.055, including any
545	interest and penalties on delinquent surtaxes.
546	(b)  The proceeds of a discretionary sales surtax collected
547	by the selling dealer located in a county which imposes the
548	surtax shall be returned, less the cost of administration, to
549	the county where the selling dealer is located. The proceeds
550	shall be transferred to the Discretionary Sales Surtax Clearing
551	Trust Fund. A separate account shall be established in such
552	trust fund for each county imposing a discretionary surtax.  The
553	amount deducted for the costs of administration shall not exceed
554	3 percent of the total revenue generated for all counties
555	levying a surtax authorized in s. 212.055.  The amount deducted
556	for the costs of administration shall be used only for those
557	costs which are solely and directly attributable to the surtax.
558	The total cost of administration shall be prorated among those
559	counties levying the surtax on the basis of the amount collected
560	for a particular county to the total amount collected for all
561	counties.  No later than March 1 of each year, the department
562	shall submit a written report which details the expenses and
563	amounts deducted for the costs of administration to the
564	President of the Senate, the Speaker of the House of
565	Representatives, and the governing authority of each county
566	levying a surtax.  The department shall distribute the moneys in
567	the trust fund each month to the appropriate counties, unless
568	otherwise provided in s. 212.055.
569	(c)1.  Any dealer located in a county that does not impose
570	a discretionary sales surtax but who collects the surtax due to
571	sales of tangible personal property or services delivered
572	outside the county shall remit monthly the proceeds of the
573	surtax to the department to be deposited into an account in the
574	Discretionary Sales Surtax Clearing Trust Fund which is separate
575	from the county surtax collection accounts.  The department
576	shall distribute funds in this account using a distribution
577	factor determined for each county that levies a surtax and
578	multiplied by the amount of funds in the account and available
579	for distribution.  The distribution factor for each county
580	equals the product of:
581	a.  The county's latest official population determined
582	pursuant to s. 186.901;
583	b.  The county's rate of surtax; and
584	c.  The number of months the county has levied a surtax
585	during the most recent distribution period;
586
587	divided by the sum of all such products of the counties levying
588	the surtax during the most recent distribution period.
589	2.  The department shall compute distribution factors for
590	eligible counties once each quarter and make appropriate
591	quarterly distributions.
592	3.  A county that fails to timely provide the information
593	required by this section to the department authorizes the
594	department, by such action, to use the best information
595	available to it in distributing surtax revenues to the county.
596	If this information is unavailable to the department, the
597	department may partially or entirely disqualify the county from
598	receiving surtax revenues under this paragraph.  A county that
599	fails to provide timely information waives its right to
600	challenge the department's determination of the county's share,
601	if any, of revenues provided under this paragraph.
602	(5)  No discretionary sales surtax or increase or decrease
603	in the rate of any discretionary sales surtax shall take effect
604	on a date other than January 1.  No discretionary sales surtax
605	shall terminate on a day other than December 31.
606	(6)  The governing body of any county levying a
607	discretionary sales surtax shall enact an ordinance levying the
608	surtax in accordance with the procedures described in s.
609	125.66(2).
610	(7)(a)  Any adoption, repeal, or rate change of the surtax
611	by the governing body of any county levying a discretionary
612	sales surtax or the school board of any county levying the
613	school capital outlay surtax authorized by s. 212.055(6) is
614	effective on April 1. A county or school board adopting,
615	repealing, or changing the rate of such tax shall notify the
616	department within 10 days after final adoption by ordinance or
617	referendum of an adoption, repeal imposition, termination, or
618	rate change of the surtax, but no later than November 16
619	immediately preceding such April 1 November 16 prior to the
620	effective date. The notice must specify the time period during
621	which the surtax will be in effect and the rate and must include
622	a copy of the ordinance and such other information as the
623	department requires by rule. Failure to timely provide such
624	notification to the department shall result in the delay of the
625	effective date for a period of 1 year.
626	(b)  In addition to the notification required by paragraph
627	(a), the governing body of any county proposing to levy a
628	discretionary sales surtax or the school board of any county
629	proposing to levy the school capital outlay surtax authorized by
630	s. 212.055(6) shall notify the department by October 1 if the
631	referendum or consideration of the ordinance that would result
632	in imposition, termination, or rate change of the surtax is
633	scheduled to occur on or after October 1 of that year. Failure
634	to timely provide such notification to the department shall
635	result in the delay of the effective date for a period of 1
636	year.
637	(8)  The department shall provide notice of such adoption,
638	repeal, or change to all affected sellers by the December 1
639	immediately preceding the April 1 effective date.
640	(9)(8)  With respect to any motor vehicle or mobile home of
641	a class or type which is required to be registered in this
642	state, the tax due on a transaction occurring in the taxing
643	county as herein provided shall be collected from the purchaser
644	or user incident to the titling and registration of such
645	property, irrespective of whether such titling or registration
646	occurs in the taxing county.
647	(10)  For the purpose of the state providing and
648	maintaining a database of all sales and use tax rates for all
649	local taxing jurisdictions in accordance with the Streamlined
650	Sales and Use Tax Agreement under s. 213.256, the provisions of
651	s. 202.22(2) shall apply.
652	(a)  A seller or certified service provider who collects
653	and remits the state and local sales and use tax imposed by this
654	chapter shall use the database provided under s. 202.22(2).
655	(b)  A seller or certified service provider who collects
656	and remits the state and local sales and use tax imposed under
657	this chapter shall be held harmless from tax, interest, and
658	penalties that would otherwise be due solely as a result of the
659	seller or certified service provider relying on an incorrect
660	taxing jurisdiction assignment made in the database provided
661	under s. 202.22(2).
662	(c)  The provisions of this subsection shall not apply when
663	the purchased product is received by the purchaser at the
664	business location of the seller.
665	Section 5.  Present subsections (3) through (16) of section
666	212.06, Florida Statutes, are renumbered as subsections (4)
667	through (17), respectively, a new subsection (3) is added to
668	said section, and present subsection (3) of said section is
669	amended, to read:
670	212.06  Sales, storage, use tax; collectible from dealers;
671	"dealer" defined; dealers to collect from purchasers;
672	legislative intent as to scope of tax.--
673	(3)  It is the intent of this chapter to apply this
674	subsection to determine the source of a transaction for purposes
675	of applying the tax imposed by this chapter. When the source of
676	the transaction is determined to be a Florida location, the tax
677	imposed by this chapter applies in accordance with this chapter.
678	(a)  For purposes of this subsection, the terms "receive"
679	and "receipt" mean:
680	1.  Taking possession of tangible personal property;
681	2.  Making first use of services; or
682	3.  Taking possession or making first use of digital goods,
683	whichever occurs first.
684
685	The terms do not include possession by a shipping company on
686	behalf of the purchaser.
687	(b)  For purposes of this subsection, the term "product"
688	means tangible personal property, a digital good, or a service.
689	(c)  This section does not apply to the sales or use taxes
690	levied on the following:
691	1.  The retail sale or transfer of boats, modular homes,
692	manufactured homes, or mobile homes.
693	2.  The retail sale, excluding a lease or rental, of motor
694	vehicles or aircraft that do not qualify as transportation
695	equipment, as defined in paragraph (g). The lease or rental of
696	these items shall be deemed to have occurred in accordance with
697	paragraph (f).
698	3.  The retail sale of tangible personal property by a
699	florist.
700
701	Such retail sales are deemed to take place in accordance with s.
702	212.054(4).
703	(d)  The retail sale of a product, excluding a lease or
704	rental, shall be deemed to take place:
705	1.  When the product is received by the purchaser at a
706	business location of the seller, at that business location.
707	2.  When the product is not received by the purchaser at a
708	business location of the seller, at the location where receipt
709	by the purchaser, or the purchaser's donee, designated as such
710	by the purchaser, occurs, including the location indicated by
711	instructions for delivery to the purchaser or donee, known to
712	the seller.
713	3.  When subparagraphs 1. and 2. do not apply, at the
714	location indicated by an address for the purchaser which is
715	available from the business records of the seller which are
716	maintained in the ordinary course of the seller's business, when
717	use of this address does not constitute bad faith.
718	4.  When subparagraphs 1., 2., and 3. do not apply, at the
719	location indicated by an address for the purchaser obtained
720	during the consummation of the sale, including the address of a
721	purchaser's payment instrument, if no other address is
722	available, when use of this address does not constitute bad
723	faith.
724	5.  When subparagraphs 1., 2., 3., and 4. do not apply,
725	including when the seller is without sufficient information to
726	apply the previous paragraphs, the address from which tangible
727	personal property was shipped, from which the digital good or
728	the computer software delivered electronically was first
729	available for transmission by the seller, or from which the
730	service was provided, disregarding any location that merely
731	provided the digital transfer of the product sold.
732	(e)  The lease or rental of tangible personal property,
733	other than property identified in paragraphs (f) and (g), shall
734	be deemed to have occurred as follows:
735	1.  For a lease or rental that requires recurring periodic
736	payments, the first periodic payment is deemed to take place in
737	accordance with paragraph (d), notwithstanding the exclusion of
738	lease or rental in paragraph (d). Subsequent periodic payments
739	are deemed to have occurred at the primary property location for
740	each period covered by the payment. The primary property
741	location is determined by an address for the property provided
742	by the lessee which is available to the lessor from its records
743	maintained in the ordinary course of business, when use of this
744	address does not constitute bad faith. The property location
745	shall not be altered by intermittent use of the property at
746	different locations, such as use of business property that
747	accompanies employees on business trips and service calls.
748	2.  For a lease or rental that does not require recurring
749	periodic payments, the payment is deemed to take place in
750	accordance with the provisions of paragraph (d), notwithstanding
751	the exclusion of a lease or rental in paragraph (d).
752	3.  This paragraph does not affect the imposition or
753	computation of sales or use tax on leases or rentals based on a
754	lump sum or accelerated basis or on the acquisition of property
755	for lease.
756	(f)  The lease or rental of motor vehicles or aircraft that
757	do not qualify as transportation equipment, as defined in
758	paragraph (g), shall be sourced as follows:
759	1.  For a lease or rental that requires recurring periodic
760	payments, each periodic payment is deemed to take place at the
761	primary property location. The primary property location shall
762	be determined by an address for the property provided by the
763	lessee which is available to the lessor from its records
764	maintained in the ordinary course of business, when use of this
765	address does not constitute bad faith. This location shall not
766	be altered by intermittent use at different locations.
767	2.  For a lease or rental that does not require recurring
768	periodic payments, the payment is deemed to take place in
769	accordance with paragraph (d), notwithstanding the exclusion of
770	a lease or rental in paragraph (d).
771	3.  This paragraph does not affect the imposition or
772	computation of sales or use tax on leases or rentals based on a
773	lump sum or accelerated basis or on the acquisition of property
774	for lease.
775	(g)  The retail sale, including lease or rental, of
776	transportation equipment shall be deemed to take place in
777	accordance with paragraph (d), notwithstanding the exclusion of
778	a lease or rental in paragraph (d). The term "transportation
779	equipment" means:
780	1.  Locomotives and rail cars that are used for the
781	carriage of persons or property in interstate commerce;
782	2.  Trucks and truck tractors with a Gross Vehicle Weight
783	Rating (GVWR) of 10,001 pounds or greater, trailers,
784	semitrailers, or passenger buses that are registered through the
785	International Registration Plan and operated under the authority
786	of a carrier authorized and certificated by the United States
787	Department of Transportation or another federal authority to
788	engage in the carriage of persons or property in interstate
789	commerce;
790	3.  Aircraft that are operated by air carriers authorized
791	and certificated by the United States Department of
792	Transportation or another federal or a foreign authority to
793	engage in the carriage of persons or property in interstate or
794	foreign commerce; or
795	4.  Containers designed for use on and component parts
796	attached or secured on the items set forth in subparagraphs 1.
797	through 3.
798	(4)(3)(a)  Except as provided in paragraphs (a) and
799	paragraph (b), every dealer making retail sales, whether within
800	or outside the state, of tangible personal property for
801	distribution, storage, or use or other consumption, in this
802	state, shall, at the time of making sales, collect the tax
803	imposed by this chapter from the purchaser.
804	(a)  Notwithstanding subsection (3), a business purchaser
805	that is not a holder of a direct-pay permit and that knows at
806	the time of purchase of a digital good, computer software
807	delivered electronically, or a service that the digital good,
808	computer software delivered electronically, or service will be
809	concurrently available for use in more than one jurisdiction
810	shall deliver to the dealer a multiple points of use exemption
811	form (MPU exemption form) at the time of purchase.
812	1.  Upon receipt of the MPU exemption form, the seller is
813	relieved of all obligation to collect, pay, or remit the
814	applicable tax, and the purchaser shall be obligated to collect,
815	pay, or remit the applicable tax on a direct-pay basis.
816	2.  A purchaser delivering the MPU exemption form may use
817	any reasonable, but consistent and uniform, method of
818	apportionment that is supported by the purchaser's business
819	records as they exist at the time of the consummation of the
820	sale.
821	3.  The MPU exemption form remains in effect for all future
822	sales by the seller to the purchaser, except as to the
823	subsequent sale's specific apportionment that is governed by the
824	principle of subparagraph 2. and the facts existing at the time
825	of the sale, until the MPU exemption form is revoked in writing.
826	4.  A holder of a direct-pay permit is not required to
827	deliver an MPU exemption form to the seller. A direct-pay
828	permitholder shall follow the provisions of subparagraph 2. in
829	apportioning the tax due on a digital good or a service that
830	will be concurrently available for use in more than one
831	jurisdiction.
832	(b)1.  Notwithstanding subsection (3), a purchaser of
833	direct mail which is not a holder of a direct-pay permit shall
834	provide to the seller in conjunction with the purchase a direct
835	mail form or information to show the jurisdictions to which the
836	direct mail is delivered to recipients. Upon receipt of the
837	direct mail form, the seller is relieved of all obligations to
838	collect, pay, or remit the applicable tax, and the purchaser is
839	obligated to pay or remit the applicable tax on a direct-pay
840	basis. A direct mail form remains in effect for all future sales
841	of direct mail by the seller to the purchaser until it is
842	revoked in writing.
843	2.  Upon receipt of information from the purchaser showing
844	the jurisdictions to which the direct mail is delivered to
845	recipients, the seller shall collect the tax according to the
846	delivery information provided by the purchaser. In the absence
847	of bad faith, the seller is relieved of any further obligation
848	to collect tax on any transaction for which the seller has
849	collected tax pursuant to the delivery information provided by
850	the purchaser.
851	3.  If the purchaser of direct mail does not have a direct-
852	pay permit and does not provide the seller with a direct mail
853	form or delivery information as required by subparagraph 1., the
854	seller shall collect the tax according to subparagraph 5. This
855	paragraph does not limit a purchaser's obligation for sales or
856	use tax to any state to which the direct mail is delivered.
857	4.  If a purchaser of direct mail provides the seller with
858	documentation of direct-pay authority, the purchaser is not
859	required to provide a direct mail form or delivery information
860	to the seller. A purchaser of printed materials shall have sole
861	responsibility for the taxes imposed by this chapter on those
862	materials when the printer of the materials delivers them to the
863	United States Postal Service for mailing to persons other than
864	the purchaser located within and outside this state. Printers of
865	materials delivered by mail to persons other than the purchaser
866	located within and outside this state shall have no obligation
867	or responsibility for the payment or collection of any taxes
868	imposed under this chapter on those materials. However, printers
869	are obligated to collect the taxes imposed by this chapter on
870	printed materials when all, or substantially all, of the
871	materials will be mailed to persons located within this state.
872	For purposes of the printer's tax collection obligation, there
873	is a rebuttable presumption that all materials printed at a
874	facility are mailed to persons located within the same state as
875	that in which the facility is located.  A certificate provided
876	by the purchaser to the printer concerning the delivery of the
877	printed materials for that purchase or all purchases shall be
878	sufficient for purposes of rebutting the presumption created
879	herein.
880	5.2.  The Department of Revenue is authorized to adopt
881	rules and forms to implement the provisions of this paragraph.
882	Section 6.  Subsections (1) and (2) and paragraph (t) of
883	subsection (7) of section 212.08, Florida Statutes, are amended
884	to read:
885	212.08  Sales, rental, use, consumption, distribution, and
886	storage tax; specified exemptions.--The sale at retail, the
887	rental, the use, the consumption, the distribution, and the
888	storage to be used or consumed in this state of the following
889	are hereby specifically exempt from the tax imposed by this
890	chapter.
891	(1)  EXEMPTIONS; GENERAL GROCERIES.--
892	(a)  Food and food ingredients products for human
893	consumption are exempt from the tax imposed by this chapter.
894	(b)  For the purpose of this chapter, as used in this
895	subsection, the term "food and food ingredients products" means
896	substances, whether in liquid, concentrated, solid, frozen,
897	dried, or dehydrated form, which are sold for ingestion or
898	chewing by humans and are consumed for their taste or
899	nutritional value edible commodities, whether processed, cooked,
900	raw, canned, or in any other form, which are generally regarded
901	as food. This includes, but is not limited to, all of the
902	following:
903	1.  Cereals and cereal products, baked goods,
904	oleomargarine, meat and meat products, fish and seafood
905	products, frozen foods and dinners, poultry, eggs and egg
906	products, vegetables and vegetable products, fruit and fruit
907	products, spices, salt, sugar and sugar products, milk and dairy
908	products, and products intended to be mixed with milk.
909	2.  Natural fruit or vegetable juices or their concentrates
910	or reconstituted natural concentrated fruit or vegetable juices,
911	whether frozen or unfrozen, dehydrated, powdered, granulated,
912	sweetened or unsweetened, seasoned with salt or spice, or
913	unseasoned; coffee, coffee substitutes, or cocoa; and tea,
914	unless it is sold in a liquid form.
915	1.3.  Bakery products sold by bakeries, pastry shops, or
916	like establishments, if sold without eating utensils. Bakery
917	products for purposes of this subsection include bread, rolls,
918	buns, biscuits, bagels, croissants, pastries, doughnuts, danish,
919	cakes, tortes, pies, tarts, muffins, bars, cookies, and
920	tortillas that do not have eating facilities.
921	2.  Dietary supplements. The term "dietary supplements"
922	means any product, other than tobacco, intended to supplement
923	the diet which contains one or more of the following dietary
924	ingredients: a vitamin; a mineral; an herb or other botanical;
925	an amino acid; a dietary substance for use by humans to
926	supplement the diet by increasing the total dietary intake; or a
927	concentrate, metabolite, constituent, extract, or combination of
928	any ingredient described in this subparagraph which is intended
929	for ingestion in tablet, capsule, powder, softgel, gelcap, or
930	liquid form or, if not intended for ingestion in such a form, is
931	not represented as conventional food and is not represented for
932	use as a sole item of a meal or of the diet; and which is
933	required to be labeled as a dietary supplement, identifiable by
934	the "supplemental facts" box found on the label and as required
935	pursuant to 21 C.F.R. s. 101.36.
936	(c)  The exemption provided by this subsection does not
937	apply:
938	1.  When the food products are sold as meals for
939	consumption on or off the premises of the dealer.
940	2.  When the food products are furnished, prepared, or
941	served for consumption at tables, chairs, or counters or from
942	trays, glasses, dishes, or other tableware, whether provided by
943	the dealer or by a person with whom the dealer contracts to
944	furnish, prepare, or serve food products to others.
945	3.  When the food products are ordinarily sold for
946	immediate consumption on the seller's premises or near a
947	location at which parking facilities are provided primarily for
948	the use of patrons in consuming the products purchased at the
949	location, even though such products are sold on a "take out" or
950	"to go" order and are actually packaged or wrapped and taken
951	from the premises of the dealer.
952	4.  To sandwiches sold ready for immediate consumption on
953	or off the seller's premises.
954	5.  When the food products are sold ready for immediate
955	consumption within a place, the entrance to which is subject to
956	an admission charge.
957	1.6.  When the food and food ingredients products are sold
958	as hot prepared food products. As used in this subparagraph, the
959	term "prepared food" means food sold in a heated state or heated
960	by the seller; two or more food ingredients mixed or combined by
961	the seller for sale as a single item; or food sold with eating
962	utensils provided by the seller, including plates, knives,
963	forks, spoons, glasses, cups, napkins, or straws. A plate does
964	not include a container or packaging used to transport the food.
965	Prepared food does not include food that is only cut,
966	repackaged, or pasteurized by the seller and eggs, fish, meat,
967	poultry, and foods containing these raw animal foods requiring
968	cooking by the consumer as recommended by the Food and Drug
969	Administration in chapter 3, part 401.11 of its food code so as
970	to prevent food-borne illnesses. "Prepared food," for purposes
971	of this subparagraph, includes sandwiches sold for immediate
972	consumption, and a combination of hot and cold food items or
973	components when a single price has been established for the
974	combination and the food products are sold in such combination,
975	such as a meal; a specialty dish or serving; a sandwich or
976	pizza; an ice cream cone, sundae, or banana split; or food sold
977	in an unheated state by weight or volume as a single item,
978	including cold components or side items.
979	2.7.  To soft drinks, which include, but are not limited
980	to, any nonalcoholic beverage, any preparation or beverage
981	commonly referred to as a "soft drink," or any noncarbonated
982	drink made from milk derivatives or tea, when sold in cans or
983	similar containers. The term "soft drinks" means nonalcoholic
984	beverages that contain natural or artificial sweeteners. Soft
985	drinks do not include beverages that contain milk or milk
986	products, soy, rice, or similar milk substitutes, or greater
987	than 50 percent of vegetable or fruit juice by volume.
988	8.  To ice cream, frozen yogurt, and similar frozen dairy
989	or nondairy products in cones, small cups, or pints, popsicles,
990	frozen fruit bars, or other novelty items, whether or not sold
991	separately.
992	9.  To food prepared, whether on or off the premises, and
993	sold for immediate consumption. This does not apply to food
994	prepared off the premises and sold in the original sealed
995	container, or the slicing of products into smaller portions.
996	3.10.  When the food and food ingredients products are sold
997	through a vending machine, pushcart, motor vehicle, or any other
998	form of vehicle.
999	4.11.  To candy and any similar product regarded as candy
1000	or confection, based on its normal use, as indicated on the
1001	label or advertising thereof. The term "candy" means a
1002	preparation of sugar, honey, or other natural or artificial
1003	sweeteners in combination with chocolate, fruits, nuts, or other
1004	ingredients or flavorings in the form of bars, drops, or pieces.
1005	Candy does not include any preparation that contains flour and
1006	requires no refrigeration.
1007	12.  To bakery products sold by bakeries, pastry shops, or
1008	like establishments that have eating facilities, except when
1009	sold for consumption off the seller's premises.
1010	13.  When food products are served, prepared, or sold in or
1011	by restaurants, lunch counters, cafeterias, hotels, taverns, or
1012	other like places of business.
1013	5.  To tobacco.
1014	(d)  As used in this subsection, the term:
1015	1.  "For consumption off the seller's premises" means that
1016	the food or drink is intended by the customer to be consumed at
1017	a place away from the dealer's premises.
1018	2.  "For consumption on the seller's premises" means that
1019	the food or drink sold may be immediately consumed on the
1020	premises where the dealer conducts his or her business. In
1021	determining whether an item of food is sold for immediate
1022	consumption, there shall be considered the customary consumption
1023	practices prevailing at the selling facility.
1024	3.  "Premises" shall be construed broadly, and means, but
1025	is not limited to, the lobby, aisle, or auditorium of a theater;
1026	the seating, aisle, or parking area of an arena, rink, or
1027	stadium; or the parking area of a drive-in or outdoor theater.
1028	The premises of a caterer with respect to catered meals or
1029	beverages shall be the place where such meals or beverages are
1030	served.
1031	4.  "Hot Prepared food products" means those products,
1032	items, or components which have been prepared for sale in a
1033	heated condition and which are sold at any temperature that is
1034	higher than the air temperature of the room or place where they
1035	are sold. "Hot prepared food products," for the purposes of this
1036	subsection, includes a combination of hot and cold food items or
1037	components where a single price has been established for the
1038	combination and the food products are sold in such combination,
1039	such as a hot meal, a hot specialty dish or serving, or a hot
1040	sandwich or hot pizza, including cold components or side items.
1041	(d)(e)1.  Food or drinks not exempt under paragraphs (a),
1042	(b), and (c), and this paragraph (d) shall be exempt,
1043	notwithstanding those paragraphs, when purchased with food
1044	coupons or Special Supplemental Food Program for Women, Infants,
1045	and Children vouchers issued under authority of federal law.
1046	2.  This paragraph is effective only while federal law
1047	prohibits a state's participation in the federal food coupon
1048	program or Special Supplemental Food Program for Women, Infants,
1049	and Children if there is an official determination that state or
1050	local sales taxes are collected within that state on purchases
1051	of food or drinks with such coupons.
1052	3.  This paragraph shall not apply to any food or drinks on
1053	which federal law shall permit sales taxes without penalty, such
1054	as termination of the state's participation.
1055	(e)  "Dietary supplements" that are sold as prepared food
1056	are not exempt.
1057	(2)  EXEMPTIONS; MEDICAL.--
1058	(a)  There shall be exempt from the tax imposed by this
1059	chapter:
1060	1.  Any drug;
1061	2.  Durable medical equipment, mobility enhancing
1062	equipment, or prosthetic device any medical products and
1063	supplies or medicine dispensed according to an individual
1064	prescription or prescriptions written by a prescriber authorized
1065	by law to prescribe medicinal drugs;
1066	3.  Hypodermic needles; hypodermic syringes;
1067	4.  Chemical compounds and test kits used for the diagnosis
1068	or treatment of human disease, illness, or injury intended for
1069	one-time use;
1070	5.  Over-the-counter drugs and common household remedies
1071	recommended and generally sold for internal or external use in
1072	the cure, mitigation, treatment, or prevention of illness or
1073	disease in human beings, but not including grooming and hygiene
1074	products;
1075	6.  Antiseptic adhesive strips, gauze, bandages, adhesive
1076	tape;
1077	7.  Hearing aids;
1078	8.  Dental prostheses; or
1079	9.  Funerals.
1080
1081	Funeral directors shall pay tax on all tangible personal
1082	property used by them in their business. cosmetics or toilet
1083	articles, notwithstanding the presence of medicinal ingredients
1084	therein, according to a list prescribed and approved by the
1085	Department of Health, which list shall be certified to the
1086	Department of Revenue from time to time and included in the
1087	rules promulgated by the Department of Revenue. There shall also
1088	be exempt from the tax imposed by this chapter artificial eyes
1089	and limbs; orthopedic shoes; prescription eyeglasses and items
1090	incidental thereto or which become a part thereof; dentures;
1091	hearing aids; crutches; prosthetic and orthopedic appliances;
1092	and funerals. In addition, any items intended for one-time use
1093	which transfer essential optical characteristics to contact
1094	lenses shall be exempt from the tax imposed by this chapter;
1095	however, this exemption shall apply only after $100,000 of the
1096	tax imposed by this chapter on such items has been paid in any
1097	calendar year by a taxpayer who claims the exemption in such
1098	year. Funeral directors shall pay tax on all tangible personal
1099	property used by them in their business.
1100	(b)  For the purposes of this subsection, the term:
1101	1.  "Drug" means a compound, substance, or preparation, and
1102	any component of a compound, substance, or preparation, other
1103	than food and food ingredients, dietary supplements, and
1104	alcoholic beverages, which is:
1105	a.  Recognized in the official United States Pharmacopoeia,
1106	official Homeopathic Pharmacopoeia of the United States, or
1107	official National Formulary, or the supplement to any of them;
1108	b.  Intended for use in the diagnosis, cure, mitigation,
1109	treatment, or prevention of disease; or
1110	c.  Intended to affect the structure or any function of the
1111	body.
1112	2.  "Durable medical equipment" means equipment, including
1113	repair and replacement parts to such equipment, but excluding
1114	mobility-enhancing equipment, which can withstand repeated use,
1115	is primarily and customarily used to serve a medical purpose,
1116	generally is not useful to a person in the absence of illness or
1117	injury, and is not worn on or in the body.
1118	3.  "Mobility-enhancing equipment" means equipment,
1119	including repair and replacement parts to such equipment, but
1120	excluding durable medical equipment, which:
1121	a.  Is primarily and customarily used to provide or
1122	increase the ability to move from one place to another and which
1123	is appropriate for use either in a home or a motor vehicle;
1124	b.  Is not generally used by persons with normal mobility;
1125	and
1126	c.  Does not include any motor vehicle or any equipment on
1127	a motor vehicle normally provided by a motor vehicle
1128	manufacturer.
1129	4.  "Prosthetic device" means a replacement, corrective, or
1130	supportive device, including repair or replacement parts to such
1131	equipment, other than a hearing aid or a dental prosthesis,
1132	which is worn on or in the body to:
1133	a.  Artificially replace a missing portion of the body;
1134	b.  Prevent or correct physical deformity or malfunction;
1135	or
1136	c.  Support a weak or deformed portion of the body.
1137	5.  "Grooming and hygiene products" are soaps and cleaning
1138	solutions, shampoo, toothpaste, mouthwash, antiperspirants, and
1139	suntan lotions and screens, regardless of whether the items meet
1140	the definition of over-the-counter drugs.
1141	6.  "Over-the-counter drug" means a drug the packaging for
1142	which contains a label that identifies the product as a drug as
1143	required by 21 C.F.R. s. 201.66. The over-the-counter drug label
1144	includes a "drug facts" panel or a statement of the active
1145	ingredients with a list of those ingredients contained in the
1146	compound, substance, or preparation. "Prosthetic and orthopedic
1147	appliances" means any apparatus, instrument, device, or
1148	equipment used to replace or substitute for any missing part of
1149	the body, to alleviate the malfunction of any part of the body,
1150	or to assist any disabled person in leading a normal life by
1151	facilitating such person's mobility.  Such apparatus,
1152	instrument, device, or equipment shall be exempted according to
1153	an individual prescription or prescriptions written by a
1154	physician licensed under chapter 458, chapter 459, chapter 460,
1155	chapter 461, or chapter 466, or according to a list prescribed
1156	and approved by the Department of Health, which list shall be
1157	certified to the Department of Revenue from time to time and
1158	included in the rules promulgated by the Department of Revenue.
1159	2.  "Cosmetics" means articles intended to be rubbed,
1160	poured, sprinkled, or sprayed on, introduced into, or otherwise
1161	applied to the human body for cleansing, beautifying, promoting
1162	attractiveness, or altering the appearance and also means
1163	articles intended for use as a compound of any such articles,
1164	including, but not limited to, cold creams, suntan lotions,
1165	makeup, and body lotions.
1166	3.  "Toilet articles" means any article advertised or held
1167	out for sale for grooming purposes and those articles that are
1168	customarily used for grooming purposes, regardless of the name
1169	by which they may be known, including, but not limited to, soap,
1170	toothpaste, hair spray, shaving products, colognes, perfumes,
1171	shampoo, deodorant, and mouthwash.
1172	7.4.  "Prescription" means an order, formula, or recipe
1173	issued in any form of oral, written, electronic, or other means
1174	of transmission by a duly licensed practitioner authorized by
1175	chapter 458, chapter 459, chapter 460, chapter 461, or chapter
1176	466. The term also includes an orally transmitted order by the
1177	lawfully designated agent of such practitioner. The term also
1178	includes an order written or transmitted by a practitioner
1179	licensed to practice in a jurisdiction other than this state,
1180	but only if the pharmacist called upon to dispense such order
1181	determines, in the exercise of his or her professional judgment,
1182	that the order is valid and necessary for the treatment of a
1183	chronic or recurrent illness. includes any order for drugs or
1184	medicinal supplies written or transmitted by any means of
1185	communication by a duly licensed practitioner authorized by the
1186	laws of the state to prescribe such drugs or medicinal supplies
1187	and intended to be dispensed by a pharmacist. The term also
1188	includes an orally transmitted order by the lawfully designated
1189	agent of such practitioner. The term also includes an order
1190	written or transmitted by a practitioner licensed to practice in
1191	a jurisdiction other than this state, but only if the pharmacist
1192	called upon to dispense such order determines, in the exercise
1193	of his or her professional judgment, that the order is valid and
1194	necessary for the treatment of a chronic or recurrent illness.
1195	The term also includes a pharmacist's order for a product
1196	selected from the formulary created pursuant to s. 465.186. A
1197	prescription may be retained in written form, or the pharmacist
1198	may cause it to be recorded in a data processing system,
1199	provided that such order can be produced in printed form upon
1200	lawful request.
1201	(c)  Chlorine shall not be exempt from the tax imposed by
1202	this chapter when used for the treatment of water in swimming
1203	pools.
1204	(d)  Lithotripters are exempt.
1205	(d)(e)  Human organs are exempt.
1206	(f)  Sales of drugs to or by physicians, dentists,
1207	veterinarians, and hospitals in connection with medical
1208	treatment are exempt.
1209	(g)  Medical products and supplies used in the cure,
1210	mitigation, alleviation, prevention, or treatment of injury,
1211	disease, or incapacity which are temporarily or permanently
1212	incorporated into a patient or client by a practitioner of the
1213	healing arts licensed in the state are exempt.
1214	(h)  The purchase by a veterinarian of commonly recognized
1215	substances possessing curative or remedial properties which are
1216	ordered and dispensed as treatment for a diagnosed health
1217	disorder by or on the prescription of a duly licensed
1218	veterinarian, and which are applied to or consumed by animals
1219	for alleviation of pain or the cure or prevention of sickness,
1220	disease, or suffering are exempt. Also exempt are the purchase
1221	by a veterinarian of antiseptics, absorbent cotton, gauze for
1222	bandages, lotions, vitamins, and worm remedies.
1223	(i)  X-ray opaques, also known as opaque drugs and
1224	radiopaque, such as the various opaque dyes and barium sulphate,
1225	when used in connection with medical X rays for treatment of
1226	bodies of humans and animals, are exempt.
1227	(e)(j)  Parts, special attachments, special lettering, and
1228	other like items that are added to or attached to tangible
1229	personal property so that a handicapped person can use them are
1230	exempt when such items are purchased by a person pursuant to an
1231	individual prescription.
1232	(f)(k)  This subsection shall be strictly construed and
1233	enforced.
1234	(7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
1235	entity by this chapter do not inure to any transaction that is
1236	otherwise taxable under this chapter when payment is made by a
1237	representative or employee of the entity by any means,
1238	including, but not limited to, cash, check, or credit card, even
1239	when that representative or employee is subsequently reimbursed
1240	by the entity. In addition, exemptions provided to any entity by
1241	this subsection do not inure to any transaction that is
1242	otherwise taxable under this chapter unless the entity has
1243	obtained a sales tax exemption certificate from the department
1244	or the entity obtains or provides other documentation as
1245	required by the department. Eligible purchases or leases made
1246	with such a certificate must be in strict compliance with this
1247	subsection and departmental rules, and any person who makes an
1248	exempt purchase with a certificate that is not in strict
1249	compliance with this subsection and the rules is liable for and
1250	shall pay the tax. The department may adopt rules to administer
1251	this subsection.
1252	(t)  Boats temporarily docked in state.--
1253	1.  Notwithstanding the provisions of chapter 328,
1254	pertaining to the registration of vessels, a boat upon which the
1255	state sales or use tax has not been paid is exempt from the use
1256	tax under this chapter if it enters and remains in this state
1257	for a period not to exceed a total of 20 days in any calendar
1258	year calculated from the date of first dockage or slippage at a
1259	facility, registered with the department, that rents dockage or
1260	slippage space in this state. If a boat brought into this state
1261	for use under this paragraph is placed in a facility, registered
1262	with the department, for repairs, alterations, refitting, or
1263	modifications and such repairs, alterations, refitting, or
1264	modifications are supported by written documentation, the 20-day
1265	period shall be tolled during the time the boat is physically in
1266	the care, custody, and control of the repair facility, including
1267	the time spent on sea trials conducted by the facility. The 20-
1268	day time period may be tolled only once within a calendar year
1269	when a boat is placed for the first time that year in the
1270	physical care, custody, and control of a registered repair
1271	facility; however, the owner may request and the department may
1272	grant an additional tolling of the 20-day period for purposes of
1273	repairs that arise from a written guarantee given by the
1274	registered repair facility, which guarantee covers only those
1275	repairs or modifications made during the first tolled period.
1276	Within 72 hours after the date upon which the registered repair
1277	facility took possession of the boat, the facility must have in
1278	its possession, on forms prescribed by the department, an
1279	affidavit which states that the boat is under its care, custody,
1280	and control and that the owner does not use the boat while in
1281	the facility. Upon completion of the repairs, alterations,
1282	refitting, or modifications, the registered repair facility
1283	must, within 72 hours after the date of release, have in its
1284	possession a copy of the release form which shows the date of
1285	release and any other information the department requires. The
1286	repair facility shall maintain a log that documents all
1287	alterations, additions, repairs, and sea trials during the time
1288	the boat is under the care, custody, and control of the
1289	facility. The affidavit shall be maintained by the registered
1290	repair facility as part of its records for as long as required
1291	by s. 213.35. When, within 6 months after the date of its
1292	purchase, a boat is brought into this state under this
1293	paragraph, the 6-month period provided in s. 212.05(1)(a)2. or
1294	s. 212.06(7)(8) shall be tolled.
1295	2.  During the period of repairs, alterations, refitting,
1296	or modifications and during the 20-day period referred to in
1297	subparagraph 1., the boat may be listed for sale, contracted for
1298	sale, or sold exclusively by a broker or dealer registered with
1299	the department without incurring a use tax under this chapter;
1300	however, the sales tax levied under this chapter applies to such
1301	sale.
1302	3.  The mere storage of a boat at a registered repair
1303	facility does not qualify as a tax-exempt use in this state.
1304	4.  As used in this paragraph, "registered repair facility"
1305	means:
1306	a.  A full-service facility that:
1307	(I)  Is located on a navigable body of water;
1308	(II)  Has haulout capability such as a dry dock, travel
1309	lift, railway, or similar equipment to service craft under the
1310	care, custody, and control of the facility;
1311	(III)  Has adequate piers and storage facilities to provide
1312	safe berthing of vessels in its care, custody, and control; and
1313	(IV)  Has necessary shops and equipment to provide repair
1314	or warranty work on vessels under the care, custody, and control
1315	of the facility;
1316	b.  A marina that:
1317	(I)  Is located on a navigable body of water;
1318	(II)  Has adequate piers and storage facilities to provide
1319	safe berthing of vessels in its care, custody, and control; and
1320	(III)  Has necessary shops and equipment to provide repairs
1321	or warranty work on vessels; or
1322	c.  A shoreside facility that:
1323	(I)  Is located on a navigable body of water;
1324	(II)  Has adequate piers and storage facilities to provide
1325	safe berthing of vessels in its care, custody, and control; and
1326	(III)  Has necessary shops and equipment to provide repairs
1327	or warranty work.
1328	Section 7.  Section 212.095, Florida Statutes, is amended
1329	to read:
1330	212.095  Refunds.--
1331	(1)  No exemption granted on a refund basis pursuant to
1332	this chapter is authorized except as provided in this section.
1333	(2)(a)  No person may secure a refund under this chapter
1334	unless such person is the holder of an unrevoked refund permit
1335	issued by the department before the purchase for which a refund
1336	is sought, which permit shall be numbered and issued annually.
1337	(b)  To procure a permit, a person must file with the
1338	department an application, on forms furnished by the department,
1339	stating that he or she is entitled to a refund according to the
1340	provisions of this chapter and that he or she intends to file an
1341	application for refund for the current calendar year, and must
1342	furnish the department such other information as the department
1343	requests.
1344	(c)  No person may in any event be allowed a refund unless
1345	he or she has filed the application provided for in paragraph
1346	(b) with the department. A permit shall be effective on the date
1347	issued by the department.
1348	(d)  If an applicant for a refund permit has violated any
1349	provision of this section or any regulation pursuant hereto, or
1350	has been convicted of bribery, theft, or false swearing within
1351	the period of 5 years preceding the application, or if the
1352	department has evidence of the financial irresponsibility of the
1353	applicant, the department may require the applicant to execute a
1354	corporate surety bond of $1,000 to be approved by the
1355	department, conditioned upon the payment of all taxes,
1356	penalties, and fines for which such applicant may become liable
1357	under this chapter.
1358	(2)(3)(a)  When a sale is made to a person who claims to be
1359	entitled to a refund under this section, the seller shall make
1360	out a sales invoice, which shall contain the following
1361	information:
1362	1.  The name and business address of the purchaser.
1363	2.  A description of the item or services sold.
1364	3.  The date on which the purchase was made.
1365	4.  The price and amount of tax paid for the item or
1366	services.
1367	5.  The name and place of business of the seller at which
1368	the sale was made.
1369	6.  The refund permit number of the purchaser.
1370	(b)  The sales invoice shall be retained by the purchaser
1371	for attachment to his or her application for a refund, as a part
1372	thereof. No refund will be allowed unless the seller has
1373	executed such an invoice and unless proof of payment of the
1374	taxes for which the refund is claimed is attached.  The
1375	department may refuse to grant a refund if the invoice is
1376	incomplete and fails to contain the full information required in
1377	this subsection.
1378	(c)  No person may execute a sales invoice, as described in
1379	paragraph (a), except a dealer duly registered pursuant to this
1380	chapter, or an authorized agent thereof.
1381	(3)(4)(a)  No refund may be authorized unless a sworn
1382	application therefor containing the information required in this
1383	section is filed with the department not later than 30 days
1384	immediately following the quarter for which the refund is
1385	claimed.  When a claim is filed after such 30 days and a
1386	justified excuse for late filing is presented to the department
1387	and the last preceding claim was filed on time, such late filing
1388	may be accepted through 60 days following the quarter.  No
1389	refund will be authorized unless the amount due is for $5 or
1390	more in any quarter and unless application is made upon forms
1391	prescribed by the department.
1392	(b)  Claims shall be filed and paid for each calendar
1393	quarter.  The department shall deduct a fee of $2 for each
1394	claim, which fee shall be deposited in the General Revenue Fund.
1395	(c)  Refund application forms shall include at a minimum
1396	the following information:
1397	1.  The name and address of the person claiming the refund.
1398	2.  The refund permit number of such person.
1399	2.3.  The location at which the items or services for which
1400	a refund is claimed are used.
1401	3.4.  A description of each such item or service and the
1402	purpose for which such item or service was acquired.
1403	4.5.  Copies of the sales invoices of items or services for
1404	which a refund is being claimed.
1405	(4)(5)  The right to receive any refund under the
1406	provisions of this section is not assignable, except to the
1407	executor or administrator, or to the receiver, trustee in
1408	bankruptcy, or assignee in an insolvency proceeding, of the
1409	person entitled to the refund.
1410	(5)(6)(a)  Each registered dealer shall, in accordance with
1411	the requirements of the department, keep at his or her principal
1412	place of business in this state or at the location where the
1413	sale is made a complete record or duplicate sales tickets of all
1414	items or services sold by the registered dealer for which a
1415	refund provided in this section may be claimed, which records
1416	shall contain the information required in paragraph (2) (3)(a).
1417	(b)  Every person applying for to whom a refund permit has
1418	been issued under this section shall, in accordance with the
1419	requirements of the department, keep at his or her residence or
1420	principal place of business in this state a record of each
1421	purchase for which a refund is claimed, including the
1422	information required in paragraph (2) (3)(a).
1423	(c)  The records required to be kept under this subsection
1424	shall at all reasonable hours be subject to audit or inspection
1425	by the department or by any person duly authorized by it.  Such
1426	records shall be preserved and may not be destroyed until 3
1427	years after the date the item to which they relate was sold or
1428	purchased.
1429	(d)  The department shall keep a permanent record of the
1430	amount of refund claimed and paid to each claimant.  Such
1431	records shall be open to public inspection.
1432	(6)(7)  Agents of the department are authorized to go upon
1433	the premises of any refund applicant permitholder, or duly
1434	authorized agent thereof, to make an inspection to ascertain any
1435	matter connected with the operation of this section or the
1436	enforcement hereof. However, no agent may enter the dwelling of
1437	any person without the consent of the occupant or authority from
1438	a court of competent jurisdiction.
1439	(7)(8)  If any taxes are refunded erroneously, the
1440	department shall advise the payee by registered mail of the
1441	erroneous refund.  If the payee fails to reimburse the state
1442	within 15 days after the receipt of the letter, an action may be
1443	instituted by the department against such payee in the circuit
1444	court, and the department shall recover from the payee the
1445	amount of the erroneous refund plus a penalty of 25 percent.
1446	(8)(9)  No person shall:
1447	(a)  Knowingly make a false or fraudulent statement in an
1448	application for a refund permit or in an application for a
1449	refund of any taxes under this section;
1450	(b)  Fraudulently obtain a refund of such taxes; or
1451	(c)  Knowingly aid or assist in making any such false or
1452	fraudulent statement or claim.
1453	(10)  The refund permit of any person who violates any
1454	provision of this section shall be revoked by the department and
1455	may not be reissued until 2 years have elapsed from the date of
1456	such revocation.  The refund permit of any person who violates
1457	any other provision of this chapter may be suspended by the
1458	department for any period, in its discretion, not exceeding 6
1459	months.
1460	(9)(11)  Refund permits and refund application forms shall
1461	include instructions for dealers and purchasers as to the
1462	relevant requirements of this section.
1463	Section 8.  Section 212.094, Florida Statutes, is created
1464	to read:
1465	212.094  Purchaser requests for refunds from dealers.--
1466	(1)  If a purchaser seeks a refund of or credit from a
1467	dealer for a tax collected under this chapter by that dealer,
1468	the purchaser must submit a written request for the refund or
1469	credit to the dealer in accordance with this section. The
1470	request must contain all the information necessary for the
1471	dealer to determine the validity of the purchaser's request.
1472	(2)  The purchaser may not take any other action against
1473	the dealer with respect to the requested refund or credit until
1474	the dealer has had 60 days following receipt of a completed
1475	request in which to respond.
1476	(3)  This section does not change the law regarding
1477	standing to claim a refund.
1478	Section 9.  Subsection (3) of section 212.17, Florida
1479	Statutes, is amended to read:
1480	212.17  Credits for returned goods, rentals, or admissions;
1481	goods acquired for dealer's own use and subsequently resold;
1482	additional powers of department.--
1483	(3)  A dealer who has paid the tax imposed by this chapter
1484	on tangible personal property or services may take a credit or
1485	obtain a refund for any tax paid by the dealer on the unpaid
1486	balance due on worthless accounts within 12 months following the
1487	month in which the bad debt has been charged off for federal
1488	income tax purposes. A dealer who has paid the tax imposed by
1489	this chapter on tangible personal property or services and who
1490	is not required to file federal income tax returns may take a
1491	credit or obtain a refund for any tax paid by the dealer on the
1492	unpaid balance due on worthless accounts within 12 months
1493	following the month in which the bad debt is written off as
1494	uncollectible in the dealer's books and records and would be
1495	eligible for a bad debt deduction for federal income tax
1496	purposes if the dealer were required to file a federal income
1497	tax return.
1498	(a)  A dealer that is taking a credit or obtaining a refund
1499	on worthless accounts shall base the bad debt recovery
1500	calculation in accordance with 26 U.S.C. s. 166.
1501	(b)  Notwithstanding paragraph (a), the amount calculated
1502	pursuant to 26 U.S.C. s. 166 shall be adjusted to exclude
1503	financing charges or interest; sales or use taxes charged on the
1504	purchase price; uncollectible amounts on property that remain in
1505	the possession of the seller until the full purchase price is
1506	paid; expenses incurred in attempting to collect any debt; and
1507	repossessed property.
1508	(c)  When the amount of bad debt exceeds the amount of
1509	taxable sales for the period during which the bad debt is
1510	written off, a refund claim may be filed in accordance with the
1511	timing provisions of s. 215.26(2), except that the statute of
1512	limitations for filing the refund claim shall be measured from
1513	the due date of the return on which the bad debt could first be
1514	claimed.
1515	(d)  If any accounts so charged off for which a credit or
1516	refund has been obtained are thereafter in whole or in part paid
1517	to the dealer, the amount so paid shall be included in the first
1518	return filed after such collection and the tax paid accordingly.
1519	(e)  When filing responsibilities have been assumed by a
1520	certified service provider, the certified service provider shall
1521	claim, on behalf of the seller, any bad debt allowance provided
1522	by this section. The certified service provider must credit or
1523	refund to the seller the full amount of any bad debt allowance
1524	or refund received.
1525	(f)  For the purposes of reporting a payment received on a
1526	previously claimed bad debt, any payments made on a debt or
1527	account are applied first proportionally to the taxable price of
1528	the property or service and the sales tax thereon, and secondly
1529	to interest, service charges, and any other charges.
1530	(g)  In situations in which the books and records of the
1531	party claiming the bad debt allowance support an allocation of
1532	the bad debts among states that are members of the Streamlined
1533	Sales and Use Tax Agreement, the allocation is permitted among
1534	those states.
1535	Section 10.  Section 213.052, Florida Statutes, is created
1536	to read:
1537	213.052  Notice of state rate changes.--
1538	(1)  A sales or use tax rate change imposed under chapter
1539	212 is effective on January 1, April 1, July 1, or October 1.
1540	The Department of Revenue shall provide notice of such rate
1541	change to all affected sellers 90 days before the effective date
1542	of the rate change.
1543	(2)  Failure of a seller to receive notice does not relieve
1544	the seller of its obligation to collect sales or use tax.
1545	Section 11.  Section 213.0521, Florida Statutes, is created
1546	to read:
1547	213.0521  Effective date of state rate changes.--The
1548	effective date for services covering a period starting before
1549	and ending after the statutory effective date shall be as
1550	follows:
1551	(1)  For a rate increase, the new rate shall apply to the
1552	first billing period starting on or after the effective date.
1553	(2)  For a rate decrease, the new rate shall apply to bills
1554	rendered on or after the effective date.
1555	Section 12.  Subsection (11) is added to section 213.21,
1556	Florida Statutes, to read:
1557	213.21  Informal conferences; compromises.--
1558	(11)  Amnesty shall be provided for uncollected or unpaid
1559	sales or use tax to a seller who registers to pay or to collect
1560	and remit applicable sales or use tax in accordance with the
1561	terms of the Streamlined Sales and Use Tax Agreement authorized
1562	under s. 213.256, if the seller was not registered with the
1563	Department of Revenue in the 12-month period preceding the
1564	effective date of participation in the agreement by this state.
1565	(a)  The amnesty precludes assessment for uncollected or
1566	unpaid sales or use tax together with penalty or interest for
1567	sales made during the period the seller was not registered with
1568	the Department of Revenue, if registration occurs within 12
1569	months after the effective date of this state's participation in
1570	the agreement.
1571	(b)  The amnesty is not available to a seller with respect
1572	to any matter or matters for which the seller received notice of
1573	the commencement of an audit and which audit is not yet finally
1574	resolved, including any related administrative and judicial
1575	processes.
1576	(c)  The amnesty is not available for sales or use taxes
1577	already paid or remitted to the state or to taxes collected by
1578	the seller.
1579	(d)  The amnesty is fully effective, absent the seller's
1580	fraud or intentional misrepresentation of a material fact, as
1581	long as the seller continues registration and continues payment
1582	or collection and remittance of applicable sales or use taxes
1583	for at least 36 months.
1584	(e)  The amnesty is applicable only to sales or use taxes
1585	due from a seller in its capacity as a seller and not to sales
1586	or use taxes due from a seller in its capacity as a buyer.
1587	Section 13.  Subsections (1) and (7) of section 213.256,
1588	Florida Statutes, are amended, present subsections (8), (9), and
1589	(10) of said section are renumbered as subsections (11), (12),
1590	and (13), respectively, and new subsections (8), (9),(10), and
1591	(14) are added to said section, to read:
1592	213.256  Simplified Sales and Use Tax Administration Act.--
1593	(1)  As used in ss. 213.256 and 213.2567 this section, the
1594	term:
1595	(a)  "Department" means the Department of Revenue.
1596	(b)  "Agent" means a person appointed by a seller to
1597	represent the seller before the member states.
1598	(c)(b)  "Agreement" means the Streamlined Sales and Use Tax
1599	Agreement as amended and adopted on November 12, 2002 January
1600	27, 2001, by the Executive Committee of the National Conference
1601	of State Legislatures.
1602	(d)(c)  "Certified automated system" means software
1603	certified jointly by the states that are signatories to the
1604	agreement to calculate the tax imposed by each jurisdiction on a
1605	transaction, determine the amount of tax to remit to the
1606	appropriate state, and maintain a record of the transaction.
1607	(e)(d)  "Certified service provider" means an agent
1608	certified under jointly by the states that are signatories to
1609	the agreement to perform all of the seller's sales tax functions
1610	other than the seller's obligation to remit tax on its own
1611	purchases.
1612	(f)  "Model 1 seller" means a seller that has selected a
1613	certified service provider as its agent to perform all the
1614	seller's sales and use tax functions other than the seller's
1615	obligation to remit tax on its own purchases.
1616	(g)  "Model 2 seller" means a seller that has selected a
1617	certified automated system to perform part of its sales and use
1618	tax functions, but retains responsibility for remitting the tax.
1619	(h)  "Model 3 seller" means a seller that has sales in at
1620	least five member states, has total annual sales revenue of at
1621	least $500 million, has a proprietary system that calculates the
1622	amount of tax due each jurisdiction, and has entered into a
1623	performance agreement with the member states which establishes a
1624	tax performance standard for the seller. As used in this
1625	subsection, a seller includes an affiliated group of sellers
1626	using the same proprietary system.
1627	(i)(e)  "Person" means an individual, trust, estate,
1628	fiduciary, partnership, limited liability company, limited
1629	liability partnership, corporation, or any other legal entity.
1630	(j)  "Registered under this agreement" means registration
1631	by a seller with the member states under the central
1632	registration system.
1633	(k)(f)  "Sales tax" means the tax levied under chapter 212.
1634	(l)(g)  "Seller" means any person making sales, leases, or
1635	rentals of personal property or services.
1636	(m)(h)  "State" means any state of the United States and
1637	the District of Columbia.
1638	(n)(i)  "Use tax" means the tax levied under chapter 212.
1639	(7)(a)  The agreement authorized by this act binds and
1640	inures only to the benefit of this state and the other member
1641	states. No person, other than a member state, is an intended
1642	beneficiary of the agreement. Any benefit to a person other than
1643	a state is established by the laws of this state and of other
1644	member states and not by the terms of the agreement.
1645	(b)  Consistent with paragraph (a), no person has any cause
1646	of action or defense under the agreement or by virtue of this
1647	state's approval of the agreement. No person may challenge, in
1648	any action brought under any provision of law, any action or
1649	inaction by any department, agency, or other instrumentality of
1650	this state, or of any political subdivision of this state, on
1651	the ground that the action or inaction is inconsistent with the
1652	agreement.
1653	(c)  No law of this state, or the application thereof, may
1654	be declared invalid as to any person or circumstance on the
1655	ground that the provision or application is inconsistent with
1656	the agreement.
1657	(d)  The determinations pertaining to the agreement
1658	authorized by this act which are made by the member states are
1659	final when rendered and are not subject to any protest, appeal,
1660	or review.
1661	(8)  Authority to administer the agreement authorized under
1662	this act shall rest with the governing board comprised of
1663	representatives of each member state. Each member state may
1664	appoint up to four representatives to the governing board. This
1665	state shall be represented by three delegates, one appointed by
1666	the President of the Senate, one appointed by the Speaker of the
1667	House of Representatives, and the executive director of the
1668	department or his or her designee.
1669	(9)  With respect to each member state, the agreement
1670	authorized by this act shall continue in full force and effect
1671	until a member state withdraws its membership or is expelled. A
1672	member state's withdrawal or expulsion is not effective until
1673	the first day of a calendar quarter after a minimum of 60 days'
1674	notice. A member state shall submit notice of its intent to
1675	withdraw from the agreement to the governing board and the chief
1676	executive of each member state's tax agency. The member state
1677	shall provide public notice of its intent to withdraw and post
1678	its notice of intent to withdraw from the agreement to the
1679	governing board and the chief executive of each member state's
1680	tax agency. The member state shall provide public notice of its
1681	intent to withdraw and post its notice of intent to withdraw on
1682	its Internet website. The withdrawal by or expulsion of a state
1683	does not affect the validity of the agreement among other member
1684	states. A state that withdraws or is expelled from the agreement
1685	remains liable for its share of any financial or contractual
1686	obligations that were incurred by the governing board before the
1687	effective date of that state's withdrawal or expulsion. The
1688	appropriate share of any financial or contractual obligation
1689	shall be determined by the state and the governing board in good
1690	faith based on the relative benefits received and burdens
1691	incurred by the parties.
1692	(10)  A member state that is found to be out of compliance
1693	with the agreement authorized by this act may be imposed with
1694	sanctions, which include expulsion or other penalties as
1695	determined by the governing board.
1696	(14)  Each member state shall annually recertify that such
1697	state is in compliance with the agreement authorized under this
1698	act. Each member state shall make a recertification to the
1699	governing board on or before August 1 of each year after the
1700	year of the state's entry. In its annual recertification, the
1701	state shall include any changes in its statutes, rules, or
1702	regulations or other authorities that could affect its
1703	compliance with the terms of the agreement. The recertification
1704	shall be signed by the executive director of the department. A
1705	member state that cannot recertify its compliance with the
1706	agreement shall submit a statement of noncompliance to the
1707	governing board. The statement of noncompliance shall include
1708	any action or decision that takes such state out of compliance
1709	with the agreement and the steps it will take to return to
1710	compliance. Each member state shall post its annual
1711	recertification or statement of noncompliance on that state's
1712	Internet website.
1713	Section 14.  Section 213.2567, Florida Statutes, is created
1714	to read:
1715	213.2567  Simplified sales and use tax registration,
1716	certification, liability, audit.--
1717	(1)  A seller that registers pursuant to the agreement
1718	agrees to collect and remit sales and use taxes for all taxable
1719	sales into the member states, including member states joining
1720	after the seller's registration. Withdrawal or revocation of a
1721	member state does not relieve a seller of its responsibility to
1722	remit taxes previously or subsequently collected on behalf of
1723	the state.
1724	(a)  When registering, the seller may select a model 1,
1725	model 2, or model 3 method of remittance or other method allowed
1726	by state law to remit the taxes collected.
1727	(b)  A seller may be registered by an agent. Such an
1728	appointment must be in writing and submitted to a member state.
1729	(2)(a)  A certified service provider is the agent of a
1730	model 1 seller with whom the certified service provider has
1731	contracted for the collection and remittance of sales and use
1732	taxes. As the model 1 seller's agent, the certified service
1733	provider is liable for sales and use tax due each member state
1734	on all sales transactions it processes for the model 1 seller,
1735	except as set out in paragraph (b).
1736	(b)  A model 1 seller is not liable to the state for sales
1737	or use tax due on transactions processed by the certified
1738	service provider unless the model 1 seller has misrepresented
1739	the type of items it sells or has committed fraud. In the
1740	absence of probable cause to believe that the model 1 seller has
1741	committed fraud or made a material misrepresentation, the model
1742	1 seller is not subject to audit on the transactions processed
1743	by the certified service provider. A model 1 seller is subject
1744	to audit for transactions that have not been processed by the
1745	certified service provider. The member states acting jointly may
1746	perform a system check of the model 1 seller and review the
1747	model 1 seller's procedures to determine if the certified
1748	service provider's system is functioning properly and to
1749	determine the extent to which the model 1 seller's transactions
1750	are being processed by the certified service provider.
1751	(3)  A person that provides a certified automated system is
1752	responsible for the proper functioning of that system and is
1753	liable to the state for underpayments of tax attributable to
1754	errors in the functioning of the certified automated system. A
1755	model 2 seller that uses a certified automated system remains
1756	responsible and is liable to the state for reporting and
1757	remitting tax.
1758	(4)  A model 3 seller is liable for the failure of the
1759	proprietary system to meet the performance standard.
1760	(5)  The governing board may certify a person as a
1761	certified service provider if the person meets all of the
1762	following requirements:
1763	(a)  The person uses a certified automated system;
1764	(b)  The person integrates its certified automated system
1765	with the system of a seller for whom the person collects tax so
1766	that the tax due on a sale is determined at the time of the
1767	sale;
1768	(c)  The person agrees to remit the taxes it collects at
1769	the time and in the manner specified by the member states;
1770	(d)  The person agrees to file returns on behalf of the
1771	sellers for whom it collects tax;
1772	(e)  The person agrees to protect the privacy of tax
1773	information it obtains in accordance with s. 213.053; and
1774	(f)  The person enters into a contract with the member
1775	states and agrees to comply with the terms of the contract.
1776	(6)  The governing board may certify a software program as
1777	a certified automated system if the governing board determines
1778	that the program meets all of the following requirements:
1779	(a)  The program determines the applicable state and local
1780	sales and use tax rate for a transaction in accordance with s.
1781	212.06(3) and (4);
1782	(b)  The program determines whether or not an item is
1783	exempt from tax;
1784	(c)  The program determines the amount of tax to be
1785	remitted for each taxpayer for a reporting period;
1786	(d)  The program can generate reports and returns as
1787	required by the governing board; and
1788	(e)  The program meets any other requirement set by the
1789	governing board.
1790	(7)  The governing board may establish one or more sales
1791	tax performance standards for model 3 sellers that meet the
1792	eligibility criteria set by the governing board and that
1793	developed a proprietary system to determine the amount of sales
1794	and use tax due on transactions.
1795	(8)  Disclosure of information necessary under this section
1796	must be pursuant to a written agreement between the executive
1797	director of the department or his or her designee and the
1798	certified service provider. The certified service provider is
1799	bound by the same requirements of confidentiality as the
1800	department. Breach of confidentiality is a misdemeanor of the
1801	first degree, punishable as provided in s. 775.082 or s.
1802	775.083.
1803	Section 15.  Paragraph (c) of subsection (2) and paragraph
1804	(c) of subsection (3) of section 212.055, Florida Statutes, are
1805	amended to read:
1806	212.055  Discretionary sales surtaxes; legislative intent;
1807	authorization and use of proceeds.--It is the legislative intent
1808	that any authorization for imposition of a discretionary sales
1809	surtax shall be published in the Florida Statutes as a
1810	subsection of this section, irrespective of the duration of the
1811	levy.  Each enactment shall specify the types of counties
1812	authorized to levy; the rate or rates which may be imposed; the
1813	maximum length of time the surtax may be imposed, if any; the
1814	procedure which must be followed to secure voter approval, if
1815	required; the purpose for which the proceeds may be expended;
1816	and such other requirements as the Legislature may provide.
1817	Taxable transactions and administrative procedures shall be as
1818	provided in s. 212.054.
1819	(2)  LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.--
1820	(c)  Pursuant to s. 212.054(6)(4), the proceeds of the
1821	surtax levied under this subsection shall be distributed to the
1822	county and the municipalities within such county in which the
1823	surtax was collected, according to:
1824	1.  An interlocal agreement between the county governing
1825	authority and the governing bodies of the municipalities
1826	representing a majority of the county's municipal population,
1827	which agreement may include a school district with the consent
1828	of the county governing authority and the governing bodies of
1829	the municipalities representing a majority of the county's
1830	municipal population; or
1831	2.  If there is no interlocal agreement, according to the
1832	formula provided in s. 218.62.
1833
1834	Any change in the distribution formula must take effect on the
1835	first day of any month that begins at least 60 days after
1836	written notification of that change has been made to the
1837	department.
1838	(3)  SMALL COUNTY SURTAX.--
1839	(c)  Pursuant to s. 212.054(6)(4), the proceeds of the
1840	surtax levied under this subsection shall be distributed to the
1841	county and the municipalities within the county in which the
1842	surtax was collected, according to:
1843	1.  An interlocal agreement between the county governing
1844	authority and the governing bodies of the municipalities
1845	representing a majority of the county's municipal population,
1846	which agreement may include a school district with the consent
1847	of the county governing authority and the governing bodies of
1848	the municipalities representing a majority of the county's
1849	municipal population; or
1850	2.  If there is no interlocal agreement, according to the
1851	formula provided in s. 218.62.
1852
1853	Any change in the distribution formula shall take effect on the
1854	first day of any month that begins at least 60 days after
1855	written notification of that change has been made to the
1856	department.
1857	Section 16.  Paragraph (c) of subsection (1) of section
1858	212.07, Florida Statutes, is amended to read:
1859	212.07  Sales, storage, use tax; tax added to purchase
1860	price; dealer not to absorb; liability of purchasers who cannot
1861	prove payment of the tax; penalties; general exemptions.--
1862	(1)
1863	(c)  Unless the purchaser of tangible personal property
1864	that is incorporated into tangible personal property
1865	manufactured, produced, compounded, processed, or fabricated for
1866	one's own use and subject to the tax imposed under s.
1867	212.06(1)(b) or is purchased for export under s.
1868	212.06(4)(5)(a)1. extends a certificate in compliance with the
1869	rules of the department, the dealer shall himself or herself be
1870	liable for and pay the tax.
1871	Section 17.  Subsection (1) of section 212.15, Florida
1872	Statutes, is amended to read:
1873	212.15  Taxes declared state funds; penalties for failure
1874	to remit taxes; due and delinquent dates; judicial review.--
1875	(1)  The taxes imposed by this chapter shall, except as
1876	provided in s. 212.06(4)(5)(a)2.e., become state funds at the
1877	moment of collection and shall for each month be due to the
1878	department on the first day of the succeeding month and be
1879	delinquent on the 21st day of such month. All returns postmarked
1880	after the 20th day of such month are delinquent.
1881	Section 18.  Subsection (6) of section 212.183, Florida
1882	Statutes, is amended to read:
1883	212.183  Rules for self-accrual of sales tax.--The
1884	Department of Revenue is authorized to provide by rule for self-
1885	accrual of the sales tax under one or more of the following
1886	circumstances:
1887	(6)  When the purchaser makes purchases of promotional
1888	materials as defined in s. 212.06(10)(11) and at the time of
1889	purchase, the purchaser does not know whether the materials will
1890	be exported outside this state.
1891	Section 19.  Subsection (6) of section 212.0596, Florida
1892	Statutes, is repealed.
1893	Section 20.  It is the intent of the Legislature to further
1894	amend chapter 212, Florida Statutes, to make the changes
1895	necessary to be in compliance with the provisions of the
1896	Streamlined Sales and Use Tax Agreement which take effect on
1897	December 31, 2005, and to address the prohibition on multiple
1898	state rates in a revenue-neutral manner.
1899	Section 21.  Emergency rules.--The executive director of
1900	the Department of Revenue is authorized, and all conditions are
1901	deemed met, to adopt emergency rules, under ss. 120.536(1) and
1902	120.54(4), Florida Statutes, to implement this act.
1903	Notwithstanding any other provision of law, such emergency rules
1904	shall remain effective for 6 months after the date of adoption
1905	and may be renewed during the pendency of procedures to adopt
1906	rules addressing the subject of the emergency rules.
1907	Section 22.  This act shall take effect January 1, 2005.

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