| 1 | The Commerce Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the tax on sales, use, and other |
| 7 | transactions; amending s. 212.031, F.S.; continuing in |
| 8 | effect an exemption from the tax on rental or license fees |
| 9 | which is provided for certain property rented, leased, or |
| 10 | licensed by a convention or exhibition hall, auditorium, |
| 11 | stadium, theater, arena, civic center, performing arts |
| 12 | center, or publicly owned recreational facility for a |
| 13 | specified period; providing for future repeal; postponing |
| 14 | the repeal of and reviving and readopting s. 212.031(10), |
| 15 | F.S., relating to an exemption provided for certain |
| 16 | charges imposed by a convention or exhibition hall, |
| 17 | auditorium, stadium, theater, arena, civic center, |
| 18 | performing arts center, or publicly owned recreational |
| 19 | facility upon a lessee or licensee; providing for future |
| 20 | repeal; amending s. 212.04, F.S., relating to the tax on |
| 21 | admissions; continuing in effect a provision that excludes |
| 22 | certain service charges from the sale price or actual |
| 23 | value of an admission; continuing in effect an exemption |
| 24 | from the tax which is provided for admission charges to an |
| 25 | event sponsored by a governmental entity, sports |
| 26 | authority, or sports commission; providing for future |
| 27 | repeal; continuing in effect provisions governing the |
| 28 | remitting of certain admission taxes to the Department of |
| 29 | Revenue; providing effective dates. |
| 30 |
|
| 31 | Be It Enacted by the Legislature of the State of Florida: |
| 32 |
|
| 33 | Section 1. Effective July 1, 2006, paragraph (a) of |
| 34 | subsection (1) of section 212.031, Florida Statutes, as amended |
| 35 | by section 3 of chapter 2000-345, as amended by section 55 of |
| 36 | chapter 2002-218, and as amended by section 2 of chapter 2000- |
| 37 | 182, section 1 of chapter 2000-183, section 53 of chapter 2000- |
| 38 | 260, and section 27 of chapter 2001-140, Laws of Florida, and |
| 39 | subsection (3) of said section, as amended by section 3 of |
| 40 | chapter 2000-345, as amended by section 55 of chapter 2002-218, |
| 41 | Laws of Florida, are amended to read: |
| 42 | 212.031 Tax on rental or license fee for use of real |
| 43 | property.-- |
| 44 | (1)(a) It is declared to be the legislative intent that |
| 45 | every person is exercising a taxable privilege who engages in |
| 46 | the business of renting, leasing, letting, or granting a license |
| 47 | for the use of any real property unless such property is: |
| 48 | 1. Assessed as agricultural property under s. 193.461. |
| 49 | 2. Used exclusively as dwelling units. |
| 50 | 3. Property subject to tax on parking, docking, or storage |
| 51 | spaces under s. 212.03(6). |
| 52 | 4. Recreational property or the common elements of a |
| 53 | condominium when subject to a lease between the developer or |
| 54 | owner thereof and the condominium association in its own right |
| 55 | or as agent for the owners of individual condominium units or |
| 56 | the owners of individual condominium units. However, only the |
| 57 | lease payments on such property shall be exempt from the tax |
| 58 | imposed by this chapter, and any other use made by the owner or |
| 59 | the condominium association shall be fully taxable under this |
| 60 | chapter. |
| 61 | 5. A public or private street or right-of-way and poles, |
| 62 | conduits, fixtures, and similar improvements located on such |
| 63 | streets or rights-of-way, occupied or used by a utility or |
| 64 | provider of communications services, as defined by s. 202.11, |
| 65 | for utility or communications or television purposes. For |
| 66 | purposes of this subparagraph, the term "utility" means any |
| 67 | person providing utility services as defined in s. 203.012. This |
| 68 | exception also applies to property, wherever located, on which |
| 69 | the following are placed: towers, antennas, cables, accessory |
| 70 | structures, or equipment, not including switching equipment, |
| 71 | used in the provision of mobile communications services as |
| 72 | defined in s. 202.11. For purposes of this chapter, towers used |
| 73 | in the provision of mobile communications services, as defined |
| 74 | in s. 202.11, are considered to be fixtures. |
| 75 | 6. A public street or road which is used for |
| 76 | transportation purposes. |
| 77 | 7. Property used at an airport exclusively for the purpose |
| 78 | of aircraft landing or aircraft taxiing or property used by an |
| 79 | airline for the purpose of loading or unloading passengers or |
| 80 | property onto or from aircraft or for fueling aircraft. |
| 81 | 8.a. Property used at a port authority, as defined in s. |
| 82 | 315.02(2), exclusively for the purpose of oceangoing vessels or |
| 83 | tugs docking, or such vessels mooring on property used by a port |
| 84 | authority for the purpose of loading or unloading passengers or |
| 85 | cargo onto or from such a vessel, or property used at a port |
| 86 | authority for fueling such vessels, or to the extent that the |
| 87 | amount paid for the use of any property at the port is based on |
| 88 | the charge for the amount of tonnage actually imported or |
| 89 | exported through the port by a tenant. |
| 90 | b. The amount charged for the use of any property at the |
| 91 | port in excess of the amount charged for tonnage actually |
| 92 | imported or exported shall remain subject to tax except as |
| 93 | provided in sub-subparagraph a. |
| 94 | 9. Property used as an integral part of the performance of |
| 95 | qualified production services. As used in this subparagraph, |
| 96 | the term "qualified production services" means any activity or |
| 97 | service performed directly in connection with the production of |
| 98 | a qualified motion picture, as defined in s. 212.06(1)(b), and |
| 99 | includes: |
| 100 | a. Photography, sound and recording, casting, location |
| 101 | managing and scouting, shooting, creation of special and optical |
| 102 | effects, animation, adaptation (language, media, electronic, or |
| 103 | otherwise), technological modifications, computer graphics, set |
| 104 | and stage support (such as electricians, lighting designers and |
| 105 | operators, greensmen, prop managers and assistants, and grips), |
| 106 | wardrobe (design, preparation, and management), hair and makeup |
| 107 | (design, production, and application), performing (such as |
| 108 | acting, dancing, and playing), designing and executing stunts, |
| 109 | coaching, consulting, writing, scoring, composing, |
| 110 | choreographing, script supervising, directing, producing, |
| 111 | transmitting dailies, dubbing, mixing, editing, cutting, |
| 112 | looping, printing, processing, duplicating, storing, and |
| 113 | distributing; |
| 114 | b. The design, planning, engineering, construction, |
| 115 | alteration, repair, and maintenance of real or personal property |
| 116 | including stages, sets, props, models, paintings, and facilities |
| 117 | principally required for the performance of those services |
| 118 | listed in sub-subparagraph a.; and |
| 119 | c. Property management services directly related to |
| 120 | property used in connection with the services described in sub- |
| 121 | subparagraphs a. and b. |
| 122 |
|
| 123 | This exemption will inure to the taxpayer upon presentation of |
| 124 | the certificate of exemption issued to the taxpayer under the |
| 125 | provisions of s. 288.1258. |
| 126 | 10. Leased, subleased, licensed, or rented to a person |
| 127 | providing food and drink concessionaire services within the |
| 128 | premises of a convention hall, exhibition hall, auditorium, |
| 129 | stadium, theater, arena, civic center, performing arts center, |
| 130 | publicly owned recreational facility, or any business operated |
| 131 | under a permit issued pursuant to chapter 550. A person |
| 132 | providing retail concessionaire services involving the sale of |
| 133 | food and drink or other tangible personal property within the |
| 134 | premises of an airport shall be subject to tax on the rental of |
| 135 | real property used for that purpose, but shall not be subject to |
| 136 | the tax on any license to use the property. For purposes of |
| 137 | this subparagraph, the term "sale" shall not include the leasing |
| 138 | of tangible personal property. |
| 139 | 11. Property occupied pursuant to an instrument calling |
| 140 | for payments which the department has declared, in a Technical |
| 141 | Assistance Advisement issued on or before March 15, 1993, to be |
| 142 | nontaxable pursuant to rule 12A-1.070(19)(c), Florida |
| 143 | Administrative Code; provided that this subparagraph shall only |
| 144 | apply to property occupied by the same person before and after |
| 145 | the execution of the subject instrument and only to those |
| 146 | payments made pursuant to such instrument, exclusive of renewals |
| 147 | and extensions thereof occurring after March 15, 1993. |
| 148 | 12. Rented, leased, subleased, or licensed to a |
| 149 | concessionaire by a convention hall, exhibition hall, |
| 150 | auditorium, stadium, theater, arena, civic center, performing |
| 151 | arts center, or publicly owned recreational facility, during an |
| 152 | event at the facility, to be used by the concessionaire to sell |
| 153 | souvenirs, novelties, or other event-related products. This |
| 154 | subparagraph applies only to that portion of the rental, lease, |
| 155 | or license payment which is based on a percentage of sales and |
| 156 | not based on a fixed price. This subparagraph is repealed July |
| 157 | 1, 2009. |
| 158 | 13.12. Property used or occupied predominantly for space |
| 159 | flight business purposes. As used in this subparagraph, "space |
| 160 | flight business" means the manufacturing, processing, or |
| 161 | assembly of a space facility, space propulsion system, space |
| 162 | vehicle, satellite, or station of any kind possessing the |
| 163 | capacity for space flight, as defined by s. 212.02(23), or |
| 164 | components thereof, and also means the following activities |
| 165 | supporting space flight: vehicle launch activities, flight |
| 166 | operations, ground control or ground support, and all |
| 167 | administrative activities directly related thereto. Property |
| 168 | shall be deemed to be used or occupied predominantly for space |
| 169 | flight business purposes if more than 50 percent of the |
| 170 | property, or improvements thereon, is used for one or more space |
| 171 | flight business purposes. Possession by a landlord, lessor, or |
| 172 | licensor of a signed written statement from the tenant, lessee, |
| 173 | or licensee claiming the exemption shall relieve the landlord, |
| 174 | lessor, or licensor from the responsibility of collecting the |
| 175 | tax, and the department shall look solely to the tenant, lessee, |
| 176 | or licensee for recovery of such tax if it determines that the |
| 177 | exemption was not applicable. |
| 178 | (3) The tax imposed by this section shall be in addition |
| 179 | to the total amount of the rental or license fee, shall be |
| 180 | charged by the lessor or person receiving the rent or payment in |
| 181 | and by a rental or license fee arrangement with the lessee or |
| 182 | person paying the rental or license fee, and shall be due and |
| 183 | payable at the time of the receipt of such rental or license fee |
| 184 | payment by the lessor or other person who receives the rental or |
| 185 | payment. Notwithstanding any other provision of this chapter, |
| 186 | the tax imposed by this section on the rental, lease, or license |
| 187 | for the use of a convention hall, exhibition hall, auditorium, |
| 188 | stadium, theater, arena, civic center, performing arts center, |
| 189 | or publicly owned recreational facility to hold an event of not |
| 190 | more than 7 consecutive days' duration shall be collected at the |
| 191 | time of the payment for that rental, lease, or license but is |
| 192 | not due and payable to the department until the first day of the |
| 193 | month following the last day that the event for which the |
| 194 | payment is made is actually held, and becomes delinquent on the |
| 195 | 21st day of that month. The owner, lessor, or person receiving |
| 196 | the rent or license fee shall remit the tax to the department at |
| 197 | the times and in the manner hereinafter provided for dealers to |
| 198 | remit taxes under this chapter. The same duties imposed by this |
| 199 | chapter upon dealers in tangible personal property respecting |
| 200 | the collection and remission of the tax; the making of returns; |
| 201 | the keeping of books, records, and accounts; and the compliance |
| 202 | with the rules and regulations of the department in the |
| 203 | administration of this chapter shall apply to and be binding |
| 204 | upon all persons who manage any leases or operate real property, |
| 205 | hotels, apartment houses, roominghouses, or tourist and trailer |
| 206 | camps and all persons who collect or receive rents or license |
| 207 | fees taxable under this chapter on behalf of owners or lessors. |
| 208 | Section 2. Notwithstanding the provisions of section 3 of |
| 209 | chapter 2000-345, Laws of Florida, as amended by section 55 of |
| 210 | chapter 2002-218, Laws of Florida, subsection (10) of s. |
| 211 | 212.031, Florida Statutes, shall not stand repealed on July 1, |
| 212 | 2006, as scheduled by such laws, but that subsection is revived |
| 213 | and readopted. Subsection (10) of s. 212.031, Florida Statutes, |
| 214 | is repealed July 1, 2009. |
| 215 | Section 3. Effective July 1, 2006, paragraph (b) of |
| 216 | subsection (1) and subsection (3) of section 212.04, Florida |
| 217 | Statutes, as amended by section 4 of chapter 2000-345, as |
| 218 | amended by section 55 of chapter 2002-218, Laws of Florida, and |
| 219 | paragraph (a) of subsection (2) of said section, as amended by |
| 220 | section 4 of chapter 2000-345, as amended by section 55 of |
| 221 | chapter 2002-218, as amended by section 916 of chapter 2002-387, |
| 222 | and as amended by section 24 of chapter 2000-158, and section 11 |
| 223 | of chapter 2000-210, Laws of Florida, are amended to read: |
| 224 | 212.04 Admissions tax; rate, procedure, enforcement.-- |
| 225 | (1) |
| 226 | (b) For the exercise of such privilege, a tax is levied at |
| 227 | the rate of 6 percent of sales price, or the actual value |
| 228 | received from such admissions, which 6 percent shall be added to |
| 229 | and collected with all such admissions from the purchaser |
| 230 | thereof, and such tax shall be paid for the exercise of the |
| 231 | privilege as defined in the preceding paragraph. Each ticket |
| 232 | must show on its face the actual sales price of the admission, |
| 233 | or each dealer selling the admission must prominently display at |
| 234 | the box office or other place where the admission charge is made |
| 235 | a notice disclosing the price of the admission, and the tax |
| 236 | shall be computed and collected on the basis of the actual price |
| 237 | of the admission charged by the dealer. The sale price or |
| 238 | actual value of admission shall, for the purpose of this |
| 239 | chapter, be that price remaining after deduction of federal |
| 240 | taxes and state or locally imposed or authorized seat |
| 241 | surcharges, taxes, or fees, if any, imposed upon such admission. |
| 242 | The sale price or actual value does not include separately |
| 243 | stated ticket service charges that are imposed by a facility |
| 244 | ticket office or a ticketing service and added to a separately |
| 245 | stated, established ticket price., and The rate of tax on each |
| 246 | admission shall be according to the brackets established by s. |
| 247 | 212.12(9). |
| 248 | (2)(a)1. No tax shall be levied on admissions to athletic |
| 249 | or other events sponsored by elementary schools, junior high |
| 250 | schools, middle schools, high schools, community colleges, |
| 251 | public or private colleges and universities, deaf and blind |
| 252 | schools, facilities of the youth services programs of the |
| 253 | Department of Children and Family Services, and state |
| 254 | correctional institutions when only student, faculty, or inmate |
| 255 | talent is used. However, this exemption shall not apply to |
| 256 | admission to athletic events sponsored by a state university, |
| 257 | and the proceeds of the tax collected on such admissions shall |
| 258 | be retained and used by each institution to support women's |
| 259 | athletics as provided in s. 1006.71(2)(c). |
| 260 | 2.a. No tax shall be levied on dues, membership fees, and |
| 261 | admission charges imposed by not-for-profit sponsoring |
| 262 | organizations. To receive this exemption, the sponsoring |
| 263 | organization must qualify as a not-for-profit entity under the |
| 264 | provisions of s. 501(c)(3) of the Internal Revenue Code of 1954, |
| 265 | as amended. |
| 266 | b. No tax shall be levied on admission charges to an event |
| 267 | sponsored by a governmental entity, sports authority, or sports |
| 268 | commission when held in a convention hall, exhibition hall, |
| 269 | auditorium, stadium, theater, arena, civic center, performing |
| 270 | arts center, or publicly owned recreational facility and when |
| 271 | 100 percent of the risk of success or failure lies with the |
| 272 | sponsor of the event and 100 percent of the funds at risk for |
| 273 | the event belong to the sponsor, and student or faculty talent |
| 274 | is not exclusively used. As used in this sub-subparagraph, the |
| 275 | terms "sports authority" and "sports commission" mean a |
| 276 | nonprofit organization that is exempt from federal income tax |
| 277 | under s. 501(c)(3) of the Internal Revenue Code and that |
| 278 | contracts with a county or municipal government for the purpose |
| 279 | of promoting and attracting sports-tourism events to the |
| 280 | community with which it contracts. This sub-subparagraph is |
| 281 | repealed July 1, 2009. |
| 282 | 3. No tax shall be levied on an admission paid by a |
| 283 | student, or on the student's behalf, to any required place of |
| 284 | sport or recreation if the student's participation in the sport |
| 285 | or recreational activity is required as a part of a program or |
| 286 | activity sponsored by, and under the jurisdiction of, the |
| 287 | student's educational institution, provided his or her |
| 288 | attendance is as a participant and not as a spectator. |
| 289 | 4. No tax shall be levied on admissions to the National |
| 290 | Football League championship game, on admissions to any |
| 291 | semifinal game or championship game of a national collegiate |
| 292 | tournament, or on admissions to a Major League Baseball all-star |
| 293 | game. |
| 294 | 5. A participation fee or sponsorship fee imposed by a |
| 295 | governmental entity as described in s. 212.08(6) for an athletic |
| 296 | or recreational program is exempt when the governmental entity |
| 297 | by itself, or in conjunction with an organization exempt under |
| 298 | s. 501(c)(3) of the Internal Revenue Code of 1954, as amended, |
| 299 | sponsors, administers, plans, supervises, directs, and controls |
| 300 | the athletic or recreational program. |
| 301 | 6. Also exempt from the tax imposed by this section to the |
| 302 | extent provided in this subparagraph are admissions to live |
| 303 | theater, live opera, or live ballet productions in this state |
| 304 | which are sponsored by an organization that has received a |
| 305 | determination from the Internal Revenue Service that the |
| 306 | organization is exempt from federal income tax under s. |
| 307 | 501(c)(3) of the Internal Revenue Code of 1954, as amended, if |
| 308 | the organization actively participates in planning and |
| 309 | conducting the event, is responsible for the safety and success |
| 310 | of the event, is organized for the purpose of sponsoring live |
| 311 | theater, live opera, or live ballet productions in this state, |
| 312 | has more than 10,000 subscribing members and has among the |
| 313 | stated purposes in its charter the promotion of arts education |
| 314 | in the communities which it serves, and will receive at least 20 |
| 315 | percent of the net profits, if any, of the events which the |
| 316 | organization sponsors and will bear the risk of at least 20 |
| 317 | percent of the losses, if any, from the events which it sponsors |
| 318 | if the organization employs other persons as agents to provide |
| 319 | services in connection with a sponsored event. Prior to March 1 |
| 320 | of each year, such organization may apply to the department for |
| 321 | a certificate of exemption for admissions to such events |
| 322 | sponsored in this state by the organization during the |
| 323 | immediately following state fiscal year. The application shall |
| 324 | state the total dollar amount of admissions receipts collected |
| 325 | by the organization or its agents from such events in this state |
| 326 | sponsored by the organization or its agents in the year |
| 327 | immediately preceding the year in which the organization applies |
| 328 | for the exemption. Such organization shall receive the exemption |
| 329 | only to the extent of $1.5 million multiplied by the ratio that |
| 330 | such receipts bear to the total of such receipts of all |
| 331 | organizations applying for the exemption in such year; however, |
| 332 | in no event shall such exemption granted to any organization |
| 333 | exceed 6 percent of such admissions receipts collected by the |
| 334 | organization or its agents in the year immediately preceding the |
| 335 | year in which the organization applies for the exemption. Each |
| 336 | organization receiving the exemption shall report each month to |
| 337 | the department the total admissions receipts collected from such |
| 338 | events sponsored by the organization during the preceding month |
| 339 | and shall remit to the department an amount equal to 6 percent |
| 340 | of such receipts reduced by any amount remaining under the |
| 341 | exemption. Tickets for such events sold by such organizations |
| 342 | shall not reflect the tax otherwise imposed under this section. |
| 343 | 7. Also exempt from the tax imposed by this section are |
| 344 | entry fees for participation in freshwater fishing tournaments. |
| 345 | 8. Also exempt from the tax imposed by this section are |
| 346 | participation or entry fees charged to participants in a game, |
| 347 | race, or other sport or recreational event if spectators are |
| 348 | charged a taxable admission to such event. |
| 349 | 9. No tax shall be levied on admissions to any postseason |
| 350 | collegiate football game sanctioned by the National Collegiate |
| 351 | Athletic Association. |
| 352 | (3) Such taxes shall be paid and remitted at the same time |
| 353 | and in the same manner as provided for remitting taxes on sales |
| 354 | of tangible personal property, as hereinafter provided. |
| 355 | Notwithstanding any other provision of this chapter, the tax on |
| 356 | admission to an event at a convention hall, exhibition hall, |
| 357 | auditorium, stadium, theater, arena, civic center, performing |
| 358 | arts center, or publicly owned recreational facility shall be |
| 359 | collected at the time of payment for the admission but is not |
| 360 | due to the department until the first day of the month following |
| 361 | the actual date of the event for which the admission is sold and |
| 362 | becomes delinquent on the 21st day of that month. |
| 363 | Section 4. Except as otherwise provided by this act, this |
| 364 | act shall take effect July 1, 2005. |