HB 1063

1
A bill to be entitled
2An act relating to the tax on sales, use, and other
3transactions; amending s. 212.031, F.S.; continuing in
4effect an exemption from the tax on rental or license fees
5which is provided for certain property rented, leased, or
6licensed by a convention or exhibition hall, auditorium,
7stadium, theater, arena, civic center, performing arts
8center, or publicly owned recreational facility;
9abrogating the repeal of and reviving and readopting s.
10212.031(10), F.S., relating to an exemption provided for
11certain charges imposed by a convention or exhibition
12hall, auditorium, stadium, theater, arena, civic center,
13performing arts center, or publicly owned recreational
14facility upon a lessee or licensee; amending s. 212.04,
15F.S., relating to the tax on admissions; continuing in
16effect a provision that excludes certain service charges
17from the sale price or actual value of an admission;
18continuing in effect an exemption from the tax which is
19provided for admission charges to an event sponsored by a
20governmental entity, sports authority, or sports
21commission; continuing in effect provisions governing the
22remitting of certain admission taxes to the Department of
23Revenue; providing effective dates.
24
25Be It Enacted by the Legislature of the State of Florida:
26
27     Section 1.  Effective July 1, 2006, paragraph (a) of
28subsection (1) of section 212.031, Florida Statutes, as amended
29by section 3 of chapter 2000-345, as amended by section 55 of
30chapter 2002-218, and as amended by section 2 of chapter 2000-
31182, section 1 of chapter 2000-183, section 53 of chapter 2000-
32260, and section 27 of chapter 2001-140, Laws of Florida, and
33subsection (3) of said section, as amended by section 3 of
34chapter 2000-345, as amended by section 55 of chapter 2002-218,
35Laws of Florida, are amended to read:
36     212.031  Tax on rental or license fee for use of real
37property.--
38     (1)(a)  It is declared to be the legislative intent that
39every person is exercising a taxable privilege who engages in
40the business of renting, leasing, letting, or granting a license
41for the use of any real property unless such property is:
42     1.  Assessed as agricultural property under s. 193.461.
43     2.  Used exclusively as dwelling units.
44     3.  Property subject to tax on parking, docking, or storage
45spaces under s. 212.03(6).
46     4.  Recreational property or the common elements of a
47condominium when subject to a lease between the developer or
48owner thereof and the condominium association in its own right
49or as agent for the owners of individual condominium units or
50the owners of individual condominium units. However, only the
51lease payments on such property shall be exempt from the tax
52imposed by this chapter, and any other use made by the owner or
53the condominium association shall be fully taxable under this
54chapter.
55     5.  A public or private street or right-of-way and poles,
56conduits, fixtures, and similar improvements located on such
57streets or rights-of-way, occupied or used by a utility or
58provider of communications services, as defined by s. 202.11,
59for utility or communications or television purposes. For
60purposes of this subparagraph, the term "utility" means any
61person providing utility services as defined in s. 203.012. This
62exception also applies to property, wherever located, on which
63the following are placed: towers, antennas, cables, accessory
64structures, or equipment, not including switching equipment,
65used in the provision of mobile communications services as
66defined in s. 202.11. For purposes of this chapter, towers used
67in the provision of mobile communications services, as defined
68in s. 202.11, are considered to be fixtures.
69     6.  A public street or road which is used for
70transportation purposes.
71     7.  Property used at an airport exclusively for the purpose
72of aircraft landing or aircraft taxiing or property used by an
73airline for the purpose of loading or unloading passengers or
74property onto or from aircraft or for fueling aircraft.
75     8.a.  Property used at a port authority, as defined in s.
76315.02(2), exclusively for the purpose of oceangoing vessels or
77tugs docking, or such vessels mooring on property used by a port
78authority for the purpose of loading or unloading passengers or
79cargo onto or from such a vessel, or property used at a port
80authority for fueling such vessels, or to the extent that the
81amount paid for the use of any property at the port is based on
82the charge for the amount of tonnage actually imported or
83exported through the port by a tenant.
84     b.  The amount charged for the use of any property at the
85port in excess of the amount charged for tonnage actually
86imported or exported shall remain subject to tax except as
87provided in sub-subparagraph a.
88     9.  Property used as an integral part of the performance of
89qualified production services.  As used in this subparagraph,
90the term "qualified production services" means any activity or
91service performed directly in connection with the production of
92a qualified motion picture, as defined in s. 212.06(1)(b), and
93includes:
94     a.  Photography, sound and recording, casting, location
95managing and scouting, shooting, creation of special and optical
96effects, animation, adaptation (language, media, electronic, or
97otherwise), technological modifications, computer graphics, set
98and stage support (such as electricians, lighting designers and
99operators, greensmen, prop managers and assistants, and grips),
100wardrobe (design, preparation, and management), hair and makeup
101(design, production, and application), performing (such as
102acting, dancing, and playing), designing and executing stunts,
103coaching, consulting, writing, scoring, composing,
104choreographing, script supervising, directing, producing,
105transmitting dailies, dubbing, mixing, editing, cutting,
106looping, printing, processing, duplicating, storing, and
107distributing;
108     b.  The design, planning, engineering, construction,
109alteration, repair, and maintenance of real or personal property
110including stages, sets, props, models, paintings, and facilities
111principally required for the performance of those services
112listed in sub-subparagraph a.; and
113     c.  Property management services directly related to
114property used in connection with the services described in sub-
115subparagraphs a. and b.
116
117This exemption will inure to the taxpayer upon presentation of
118the certificate of exemption issued to the taxpayer under the
119provisions of s. 288.1258.
120     10.  Leased, subleased, licensed, or rented to a person
121providing food and drink concessionaire services within the
122premises of a convention hall, exhibition hall, auditorium,
123stadium, theater, arena, civic center, performing arts center,
124publicly owned recreational facility, or any business operated
125under a permit issued pursuant to chapter 550.  A person
126providing retail concessionaire services involving the sale of
127food and drink or other tangible personal property within the
128premises of an airport shall be subject to tax on the rental of
129real property used for that purpose, but shall not be subject to
130the tax on any license to use the property.  For purposes of
131this subparagraph, the term "sale" shall not include the leasing
132of tangible personal property.
133     11.  Property occupied pursuant to an instrument calling
134for payments which the department has declared, in a Technical
135Assistance Advisement issued on or before March 15, 1993, to be
136nontaxable pursuant to rule 12A-1.070(19)(c), Florida
137Administrative Code; provided that this subparagraph shall only
138apply to property occupied by the same person before and after
139the execution of the subject instrument and only to those
140payments made pursuant to such instrument, exclusive of renewals
141and extensions thereof occurring after March 15, 1993.
142     12.  Rented, leased, subleased, or licensed to a
143concessionaire by a convention hall, exhibition hall,
144auditorium, stadium, theater, arena, civic center, performing
145arts center, or publicly owned recreational facility, during an
146event at the facility, to be used by the concessionaire to sell
147souvenirs, novelties, or other event-related products. This
148subparagraph applies only to that portion of the rental, lease,
149or license payment which is based on a percentage of sales and
150not based on a fixed price.
151     13.12.  Property used or occupied predominantly for space
152flight business purposes. As used in this subparagraph, "space
153flight business" means the manufacturing, processing, or
154assembly of a space facility, space propulsion system, space
155vehicle, satellite, or station of any kind possessing the
156capacity for space flight, as defined by s. 212.02(23), or
157components thereof, and also means the following activities
158supporting space flight: vehicle launch activities, flight
159operations, ground control or ground support, and all
160administrative activities directly related thereto. Property
161shall be deemed to be used or occupied predominantly for space
162flight business purposes if more than 50 percent of the
163property, or improvements thereon, is used for one or more space
164flight business purposes. Possession by a landlord, lessor, or
165licensor of a signed written statement from the tenant, lessee,
166or licensee claiming the exemption shall relieve the landlord,
167lessor, or licensor from the responsibility of collecting the
168tax, and the department shall look solely to the tenant, lessee,
169or licensee for recovery of such tax if it determines that the
170exemption was not applicable.
171     (3)  The tax imposed by this section shall be in addition
172to the total amount of the rental or license fee, shall be
173charged by the lessor or person receiving the rent or payment in
174and by a rental or license fee arrangement with the lessee or
175person paying the rental or license fee, and shall be due and
176payable at the time of the receipt of such rental or license fee
177payment by the lessor or other person who receives the rental or
178payment. Notwithstanding any other provision of this chapter,
179the tax imposed by this section on the rental, lease, or license
180for the use of a convention hall, exhibition hall, auditorium,
181stadium, theater, arena, civic center, performing arts center,
182or publicly owned recreational facility to hold an event of not
183more than 7 consecutive days' duration shall be collected at the
184time of the payment for that rental, lease, or license but is
185not due and payable to the department until the first day of the
186month following the last day that the event for which the
187payment is made is actually held, and becomes delinquent on the
18821st day of that month. The owner, lessor, or person receiving
189the rent or license fee shall remit the tax to the department at
190the times and in the manner hereinafter provided for dealers to
191remit taxes under this chapter. The same duties imposed by this
192chapter upon dealers in tangible personal property respecting
193the collection and remission of the tax; the making of returns;
194the keeping of books, records, and accounts; and the compliance
195with the rules and regulations of the department in the
196administration of this chapter shall apply to and be binding
197upon all persons who manage any leases or operate real property,
198hotels, apartment houses, roominghouses, or tourist and trailer
199camps and all persons who collect or receive rents or license
200fees taxable under this chapter on behalf of owners or lessors.
201     Section 2.  Notwithstanding the provisions of section 3 of
202chapter 2000-345, Laws of Florida, as amended by section 55 of
203chapter 2002-218, Laws of Florida, subsection (10) of section
204212.031, Florida Statutes, shall not stand repealed on July 1,
2052006, as scheduled by such laws, but that subsection is revived
206and readopted.
207     Section 3.  Effective July 1, 2006, paragraph (b) of
208subsection (1) and subsection (3) of section 212.04, Florida
209Statutes, as amended by section 4 of chapter 2000-345, as
210amended by section 55 of chapter 2002-218, Laws of Florida, and
211paragraph (a) of subsection (2) of said section, as amended by
212section 4 of chapter 2000-345, as amended by section 55 of
213chapter 2002-218, as amended by section 916 of chapter 2002-387,
214and as amended by section 24 of chapter 2000-158, and section 11
215of chapter 2000-210, Laws of Florida, are amended to read:
216     212.04  Admissions tax; rate, procedure, enforcement.--
217     (1)
218     (b)  For the exercise of such privilege, a tax is levied at
219the rate of 6 percent of sales price, or the actual value
220received from such admissions, which 6 percent shall be added to
221and collected with all such admissions from the purchaser
222thereof, and such tax shall be paid for the exercise of the
223privilege as defined in the preceding paragraph.  Each ticket
224must show on its face the actual sales price of the admission,
225or each dealer selling the admission must prominently display at
226the box office or other place where the admission charge is made
227a notice disclosing the price of the admission, and the tax
228shall be computed and collected on the basis of the actual price
229of the admission charged by the dealer.  The sale price or
230actual value of admission shall, for the purpose of this
231chapter, be that price remaining after deduction of federal
232taxes and state or locally imposed or authorized seat
233surcharges, taxes, or fees, if any, imposed upon such admission.
234The sale price or actual value does not include separately
235stated ticket service charges that are imposed by a facility
236ticket office or a ticketing service and added to a separately
237stated, established ticket price., and The rate of tax on each
238admission shall be according to the brackets established by s.
239212.12(9).
240     (2)(a)1.  No tax shall be levied on admissions to athletic
241or other events sponsored by elementary schools, junior high
242schools, middle schools, high schools, community colleges,
243public or private colleges and universities, deaf and blind
244schools, facilities of the youth services programs of the
245Department of Children and Family Services, and state
246correctional institutions when only student, faculty, or inmate
247talent is used. However, this exemption shall not apply to
248admission to athletic events sponsored by a state university,
249and the proceeds of the tax collected on such admissions shall
250be retained and used by each institution to support women's
251athletics as provided in s. 1006.71(2)(c).
252     2.a.  No tax shall be levied on dues, membership fees, and
253admission charges imposed by not-for-profit sponsoring
254organizations. To receive this exemption, the sponsoring
255organization must qualify as a not-for-profit entity under the
256provisions of s. 501(c)(3) of the Internal Revenue Code of 1954,
257as amended.
258     b.  No tax shall be levied on admission charges to an event
259sponsored by a governmental entity, sports authority, or sports
260commission when held in a convention hall, exhibition hall,
261auditorium, stadium, theater, arena, civic center, performing
262arts center, or publicly owned recreational facility and when
263100 percent of the risk of success or failure lies with the
264sponsor of the event and 100 percent of the funds at risk for
265the event belong to the sponsor, and student or faculty talent
266is not exclusively used. As used in this sub-subparagraph, the
267terms "sports authority" and "sports commission" mean a
268nonprofit organization that is exempt from federal income tax
269under s. 501(c)(3) of the Internal Revenue Code and that
270contracts with a county or municipal government for the purpose
271of promoting and attracting sports-tourism events to the
272community with which it contracts.
273     3.  No tax shall be levied on an admission paid by a
274student, or on the student's behalf, to any required place of
275sport or recreation if the student's participation in the sport
276or recreational activity is required as a part of a program or
277activity sponsored by, and under the jurisdiction of, the
278student's educational institution, provided his or her
279attendance is as a participant and not as a spectator.
280     4.  No tax shall be levied on admissions to the National
281Football League championship game, on admissions to any
282semifinal game or championship game of a national collegiate
283tournament, or on admissions to a Major League Baseball all-star
284game.
285     5.  A participation fee or sponsorship fee imposed by a
286governmental entity as described in s. 212.08(6) for an athletic
287or recreational program is exempt when the governmental entity
288by itself, or in conjunction with an organization exempt under
289s. 501(c)(3) of the Internal Revenue Code of 1954, as amended,
290sponsors, administers, plans, supervises, directs, and controls
291the athletic or recreational program.
292     6.  Also exempt from the tax imposed by this section to the
293extent provided in this subparagraph are admissions to live
294theater, live opera, or live ballet productions in this state
295which are sponsored by an organization that has received a
296determination from the Internal Revenue Service that the
297organization is exempt from federal income tax under s.
298501(c)(3) of the Internal Revenue Code of 1954, as amended, if
299the organization actively participates in planning and
300conducting the event, is responsible for the safety and success
301of the event, is organized for the purpose of sponsoring live
302theater, live opera, or live ballet productions in this state,
303has more than 10,000 subscribing members and has among the
304stated purposes in its charter the promotion of arts education
305in the communities which it serves, and will receive at least 20
306percent of the net profits, if any, of the events which the
307organization sponsors and will bear the risk of at least 20
308percent of the losses, if any, from the events which it sponsors
309if the organization employs other persons as agents to provide
310services in connection with a sponsored event. Prior to March 1
311of each year, such organization may apply to the department for
312a certificate of exemption for admissions to such events
313sponsored in this state by the organization during the
314immediately following state fiscal year. The application shall
315state the total dollar amount of admissions receipts collected
316by the organization or its agents from such events in this state
317sponsored by the organization or its agents in the year
318immediately preceding the year in which the organization applies
319for the exemption. Such organization shall receive the exemption
320only to the extent of $1.5 million multiplied by the ratio that
321such receipts bear to the total of such receipts of all
322organizations applying for the exemption in such year; however,
323in no event shall such exemption granted to any organization
324exceed 6 percent of such admissions receipts collected by the
325organization or its agents in the year immediately preceding the
326year in which the organization applies for the exemption. Each
327organization receiving the exemption shall report each month to
328the department the total admissions receipts collected from such
329events sponsored by the organization during the preceding month
330and shall remit to the department an amount equal to 6 percent
331of such receipts reduced by any amount remaining under the
332exemption. Tickets for such events sold by such organizations
333shall not reflect the tax otherwise imposed under this section.
334     7.  Also exempt from the tax imposed by this section are
335entry fees for participation in freshwater fishing tournaments.
336     8.  Also exempt from the tax imposed by this section are
337participation or entry fees charged to participants in a game,
338race, or other sport or recreational event if spectators are
339charged a taxable admission to such event.
340     9.  No tax shall be levied on admissions to any postseason
341collegiate football game sanctioned by the National Collegiate
342Athletic Association.
343     (3)  Such taxes shall be paid and remitted at the same time
344and in the same manner as provided for remitting taxes on sales
345of tangible personal property, as hereinafter provided.
346Notwithstanding any other provision of this chapter, the tax on
347admission to an event at a convention hall, exhibition hall,
348auditorium, stadium, theater, arena, civic center, performing
349arts center, or publicly owned recreational facility shall be
350collected at the time of payment for the admission but is not
351due to the department until the first day of the month following
352the actual date of the event for which the admission is sold and
353becomes delinquent on the 21st day of that month.
354     Section 4.  Except as otherwise provided by this act, this
355act shall take effect July 1, 2005.


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