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 for a
9specified period; providing for future repeal; postponing
10the repeal of and reviving and readopting s. 212.031(10),
11F.S., relating to an exemption provided for certain
12charges imposed by a convention or exhibition hall,
13auditorium, stadium, theater, arena, civic center,
14performing arts center, or publicly owned recreational
15facility upon a lessee or licensee; providing for future
16repeal; amending s. 212.04, F.S., relating to the tax on
17admissions; continuing in effect a provision that excludes
18certain service charges from the sale price or actual
19value of an admission; continuing in effect an exemption
20from the tax which is provided for admission charges to an
21event sponsored by a governmental entity, sports
22authority, or sports commission; providing for future
23repeal; continuing in effect provisions governing the
24remitting of certain admission taxes to the Department of
25Revenue; providing effective dates.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Effective July 1, 2006, paragraph (a) of
30subsection (1) of section 212.031, Florida Statutes, as amended
31by section 3 of chapter 2000-345, as amended by section 55 of
32chapter 2002-218, and as amended by section 2 of chapter 2000-
33182, section 1 of chapter 2000-183, section 53 of chapter 2000-
34260, and section 27 of chapter 2001-140, Laws of Florida, and
35subsection (3) of said section, as amended by section 3 of
36chapter 2000-345, as amended by section 55 of chapter 2002-218,
37Laws of Florida, are amended to read:
38     212.031  Tax on rental or license fee for use of real
39property.--
40     (1)(a)  It is declared to be the legislative intent that
41every person is exercising a taxable privilege who engages in
42the business of renting, leasing, letting, or granting a license
43for the use of any real property unless such property is:
44     1.  Assessed as agricultural property under s. 193.461.
45     2.  Used exclusively as dwelling units.
46     3.  Property subject to tax on parking, docking, or storage
47spaces under s. 212.03(6).
48     4.  Recreational property or the common elements of a
49condominium when subject to a lease between the developer or
50owner thereof and the condominium association in its own right
51or as agent for the owners of individual condominium units or
52the owners of individual condominium units. However, only the
53lease payments on such property shall be exempt from the tax
54imposed by this chapter, and any other use made by the owner or
55the condominium association shall be fully taxable under this
56chapter.
57     5.  A public or private street or right-of-way and poles,
58conduits, fixtures, and similar improvements located on such
59streets or rights-of-way, occupied or used by a utility or
60provider of communications services, as defined by s. 202.11,
61for utility or communications or television purposes. For
62purposes of this subparagraph, the term "utility" means any
63person providing utility services as defined in s. 203.012. This
64exception also applies to property, wherever located, on which
65the following are placed: towers, antennas, cables, accessory
66structures, or equipment, not including switching equipment,
67used in the provision of mobile communications services as
68defined in s. 202.11. For purposes of this chapter, towers used
69in the provision of mobile communications services, as defined
70in s. 202.11, are considered to be fixtures.
71     6.  A public street or road which is used for
72transportation purposes.
73     7.  Property used at an airport exclusively for the purpose
74of aircraft landing or aircraft taxiing or property used by an
75airline for the purpose of loading or unloading passengers or
76property onto or from aircraft or for fueling aircraft.
77     8.a.  Property used at a port authority, as defined in s.
78315.02(2), exclusively for the purpose of oceangoing vessels or
79tugs docking, or such vessels mooring on property used by a port
80authority for the purpose of loading or unloading passengers or
81cargo onto or from such a vessel, or property used at a port
82authority for fueling such vessels, or to the extent that the
83amount paid for the use of any property at the port is based on
84the charge for the amount of tonnage actually imported or
85exported through the port by a tenant.
86     b.  The amount charged for the use of any property at the
87port in excess of the amount charged for tonnage actually
88imported or exported shall remain subject to tax except as
89provided in sub-subparagraph a.
90     9.  Property used as an integral part of the performance of
91qualified production services.  As used in this subparagraph,
92the term "qualified production services" means any activity or
93service performed directly in connection with the production of
94a qualified motion picture, as defined in s. 212.06(1)(b), and
95includes:
96     a.  Photography, sound and recording, casting, location
97managing and scouting, shooting, creation of special and optical
98effects, animation, adaptation (language, media, electronic, or
99otherwise), technological modifications, computer graphics, set
100and stage support (such as electricians, lighting designers and
101operators, greensmen, prop managers and assistants, and grips),
102wardrobe (design, preparation, and management), hair and makeup
103(design, production, and application), performing (such as
104acting, dancing, and playing), designing and executing stunts,
105coaching, consulting, writing, scoring, composing,
106choreographing, script supervising, directing, producing,
107transmitting dailies, dubbing, mixing, editing, cutting,
108looping, printing, processing, duplicating, storing, and
109distributing;
110     b.  The design, planning, engineering, construction,
111alteration, repair, and maintenance of real or personal property
112including stages, sets, props, models, paintings, and facilities
113principally required for the performance of those services
114listed in sub-subparagraph a.; and
115     c.  Property management services directly related to
116property used in connection with the services described in sub-
117subparagraphs a. and b.
118
119This exemption will inure to the taxpayer upon presentation of
120the certificate of exemption issued to the taxpayer under the
121provisions of s. 288.1258.
122     10.  Leased, subleased, licensed, or rented to a person
123providing food and drink concessionaire services within the
124premises of a convention hall, exhibition hall, auditorium,
125stadium, theater, arena, civic center, performing arts center,
126publicly owned recreational facility, or any business operated
127under a permit issued pursuant to chapter 550.  A person
128providing retail concessionaire services involving the sale of
129food and drink or other tangible personal property within the
130premises of an airport shall be subject to tax on the rental of
131real property used for that purpose, but shall not be subject to
132the tax on any license to use the property.  For purposes of
133this subparagraph, the term "sale" shall not include the leasing
134of tangible personal property.
135     11.  Property occupied pursuant to an instrument calling
136for payments which the department has declared, in a Technical
137Assistance Advisement issued on or before March 15, 1993, to be
138nontaxable pursuant to rule 12A-1.070(19)(c), Florida
139Administrative Code; provided that this subparagraph shall only
140apply to property occupied by the same person before and after
141the execution of the subject instrument and only to those
142payments made pursuant to such instrument, exclusive of renewals
143and extensions thereof occurring after March 15, 1993.
144     12.  Rented, leased, subleased, or licensed to a
145concessionaire by a convention hall, exhibition hall,
146auditorium, stadium, theater, arena, civic center, performing
147arts center, or publicly owned recreational facility, during an
148event at the facility, to be used by the concessionaire to sell
149souvenirs, novelties, or other event-related products. This
150subparagraph applies only to that portion of the rental, lease,
151or license payment which is based on a percentage of sales and
152not based on a fixed price. This subparagraph is repealed July
1531, 2009.
154     13.12.  Property used or occupied predominantly for space
155flight business purposes. As used in this subparagraph, "space
156flight business" means the manufacturing, processing, or
157assembly of a space facility, space propulsion system, space
158vehicle, satellite, or station of any kind possessing the
159capacity for space flight, as defined by s. 212.02(23), or
160components thereof, and also means the following activities
161supporting space flight: vehicle launch activities, flight
162operations, ground control or ground support, and all
163administrative activities directly related thereto. Property
164shall be deemed to be used or occupied predominantly for space
165flight business purposes if more than 50 percent of the
166property, or improvements thereon, is used for one or more space
167flight business purposes. Possession by a landlord, lessor, or
168licensor of a signed written statement from the tenant, lessee,
169or licensee claiming the exemption shall relieve the landlord,
170lessor, or licensor from the responsibility of collecting the
171tax, and the department shall look solely to the tenant, lessee,
172or licensee for recovery of such tax if it determines that the
173exemption was not applicable.
174     (3)  The tax imposed by this section shall be in addition
175to the total amount of the rental or license fee, shall be
176charged by the lessor or person receiving the rent or payment in
177and by a rental or license fee arrangement with the lessee or
178person paying the rental or license fee, and shall be due and
179payable at the time of the receipt of such rental or license fee
180payment by the lessor or other person who receives the rental or
181payment. Notwithstanding any other provision of this chapter,
182the tax imposed by this section on the rental, lease, or license
183for the use of a convention hall, exhibition hall, auditorium,
184stadium, theater, arena, civic center, performing arts center,
185or publicly owned recreational facility to hold an event of not
186more than 7 consecutive days' duration shall be collected at the
187time of the payment for that rental, lease, or license but is
188not due and payable to the department until the first day of the
189month following the last day that the event for which the
190payment is made is actually held, and becomes delinquent on the
19121st day of that month. The owner, lessor, or person receiving
192the rent or license fee shall remit the tax to the department at
193the times and in the manner hereinafter provided for dealers to
194remit taxes under this chapter. The same duties imposed by this
195chapter upon dealers in tangible personal property respecting
196the collection and remission of the tax; the making of returns;
197the keeping of books, records, and accounts; and the compliance
198with the rules and regulations of the department in the
199administration of this chapter shall apply to and be binding
200upon all persons who manage any leases or operate real property,
201hotels, apartment houses, roominghouses, or tourist and trailer
202camps and all persons who collect or receive rents or license
203fees taxable under this chapter on behalf of owners or lessors.
204     Section 2.  Notwithstanding the provisions of section 3 of
205chapter 2000-345, Laws of Florida, as amended by section 55 of
206chapter 2002-218, Laws of Florida, subsection (10) of s.
207212.031, Florida Statutes, shall not stand repealed on July 1,
2082006, as scheduled by such laws, but that subsection is revived
209and readopted. Subsection (10) of s. 212.031, Florida Statutes,
210is repealed July 1, 2009.
211     Section 3.  Effective July 1, 2006, paragraph (b) of
212subsection (1) and subsection (3) of section 212.04, Florida
213Statutes, as amended by section 4 of chapter 2000-345, as
214amended by section 55 of chapter 2002-218, Laws of Florida, and
215paragraph (a) of subsection (2) of said section, as amended by
216section 4 of chapter 2000-345, as amended by section 55 of
217chapter 2002-218, as amended by section 916 of chapter 2002-387,
218and as amended by section 24 of chapter 2000-158, and section 11
219of chapter 2000-210, Laws of Florida, are amended to read:
220     212.04  Admissions tax; rate, procedure, enforcement.--
221     (1)
222     (b)  For the exercise of such privilege, a tax is levied at
223the rate of 6 percent of sales price, or the actual value
224received from such admissions, which 6 percent shall be added to
225and collected with all such admissions from the purchaser
226thereof, and such tax shall be paid for the exercise of the
227privilege as defined in the preceding paragraph.  Each ticket
228must show on its face the actual sales price of the admission,
229or each dealer selling the admission must prominently display at
230the box office or other place where the admission charge is made
231a notice disclosing the price of the admission, and the tax
232shall be computed and collected on the basis of the actual price
233of the admission charged by the dealer.  The sale price or
234actual value of admission shall, for the purpose of this
235chapter, be that price remaining after deduction of federal
236taxes and state or locally imposed or authorized seat
237surcharges, taxes, or fees, if any, imposed upon such admission.
238The sale price or actual value does not include separately
239stated ticket service charges that are imposed by a facility
240ticket office or a ticketing service and added to a separately
241stated, established ticket price., and The rate of tax on each
242admission shall be according to the brackets established by s.
243212.12(9).
244     (2)(a)1.  No tax shall be levied on admissions to athletic
245or other events sponsored by elementary schools, junior high
246schools, middle schools, high schools, community colleges,
247public or private colleges and universities, deaf and blind
248schools, facilities of the youth services programs of the
249Department of Children and Family Services, and state
250correctional institutions when only student, faculty, or inmate
251talent is used. However, this exemption shall not apply to
252admission to athletic events sponsored by a state university,
253and the proceeds of the tax collected on such admissions shall
254be retained and used by each institution to support women's
255athletics as provided in s. 1006.71(2)(c).
256     2.a.  No tax shall be levied on dues, membership fees, and
257admission charges imposed by not-for-profit sponsoring
258organizations. To receive this exemption, the sponsoring
259organization must qualify as a not-for-profit entity under the
260provisions of s. 501(c)(3) of the Internal Revenue Code of 1954,
261as amended.
262     b.  No tax shall be levied on admission charges to an event
263sponsored by a governmental entity, sports authority, or sports
264commission when held in a convention hall, exhibition hall,
265auditorium, stadium, theater, arena, civic center, performing
266arts center, or publicly owned recreational facility and when
267100 percent of the risk of success or failure lies with the
268sponsor of the event and 100 percent of the funds at risk for
269the event belong to the sponsor, and student or faculty talent
270is not exclusively used. As used in this sub-subparagraph, the
271terms "sports authority" and "sports commission" mean a
272nonprofit organization that is exempt from federal income tax
273under s. 501(c)(3) of the Internal Revenue Code and that
274contracts with a county or municipal government for the purpose
275of promoting and attracting sports-tourism events to the
276community with which it contracts. This sub-subparagraph is
277repealed July 1, 2009.
278     3.  No tax shall be levied on an admission paid by a
279student, or on the student's behalf, to any required place of
280sport or recreation if the student's participation in the sport
281or recreational activity is required as a part of a program or
282activity sponsored by, and under the jurisdiction of, the
283student's educational institution, provided his or her
284attendance is as a participant and not as a spectator.
285     4.  No tax shall be levied on admissions to the National
286Football League championship game, on admissions to any
287semifinal game or championship game of a national collegiate
288tournament, or on admissions to a Major League Baseball all-star
289game.
290     5.  A participation fee or sponsorship fee imposed by a
291governmental entity as described in s. 212.08(6) for an athletic
292or recreational program is exempt when the governmental entity
293by itself, or in conjunction with an organization exempt under
294s. 501(c)(3) of the Internal Revenue Code of 1954, as amended,
295sponsors, administers, plans, supervises, directs, and controls
296the athletic or recreational program.
297     6.  Also exempt from the tax imposed by this section to the
298extent provided in this subparagraph are admissions to live
299theater, live opera, or live ballet productions in this state
300which are sponsored by an organization that has received a
301determination from the Internal Revenue Service that the
302organization is exempt from federal income tax under s.
303501(c)(3) of the Internal Revenue Code of 1954, as amended, if
304the organization actively participates in planning and
305conducting the event, is responsible for the safety and success
306of the event, is organized for the purpose of sponsoring live
307theater, live opera, or live ballet productions in this state,
308has more than 10,000 subscribing members and has among the
309stated purposes in its charter the promotion of arts education
310in the communities which it serves, and will receive at least 20
311percent of the net profits, if any, of the events which the
312organization sponsors and will bear the risk of at least 20
313percent of the losses, if any, from the events which it sponsors
314if the organization employs other persons as agents to provide
315services in connection with a sponsored event. Prior to March 1
316of each year, such organization may apply to the department for
317a certificate of exemption for admissions to such events
318sponsored in this state by the organization during the
319immediately following state fiscal year. The application shall
320state the total dollar amount of admissions receipts collected
321by the organization or its agents from such events in this state
322sponsored by the organization or its agents in the year
323immediately preceding the year in which the organization applies
324for the exemption. Such organization shall receive the exemption
325only to the extent of $1.5 million multiplied by the ratio that
326such receipts bear to the total of such receipts of all
327organizations applying for the exemption in such year; however,
328in no event shall such exemption granted to any organization
329exceed 6 percent of such admissions receipts collected by the
330organization or its agents in the year immediately preceding the
331year in which the organization applies for the exemption. Each
332organization receiving the exemption shall report each month to
333the department the total admissions receipts collected from such
334events sponsored by the organization during the preceding month
335and shall remit to the department an amount equal to 6 percent
336of such receipts reduced by any amount remaining under the
337exemption. Tickets for such events sold by such organizations
338shall not reflect the tax otherwise imposed under this section.
339     7.  Also exempt from the tax imposed by this section are
340entry fees for participation in freshwater fishing tournaments.
341     8.  Also exempt from the tax imposed by this section are
342participation or entry fees charged to participants in a game,
343race, or other sport or recreational event if spectators are
344charged a taxable admission to such event.
345     9.  No tax shall be levied on admissions to any postseason
346collegiate football game sanctioned by the National Collegiate
347Athletic Association.
348     (3)  Such taxes shall be paid and remitted at the same time
349and in the same manner as provided for remitting taxes on sales
350of tangible personal property, as hereinafter provided.
351Notwithstanding any other provision of this chapter, the tax on
352admission to an event at a convention hall, exhibition hall,
353auditorium, stadium, theater, arena, civic center, performing
354arts center, or publicly owned recreational facility shall be
355collected at the time of payment for the admission but is not
356due to the department until the first day of the month following
357the actual date of the event for which the admission is sold and
358becomes delinquent on the 21st day of that month.
359     Section 4.  Except as otherwise provided by this act, this
360act shall take effect July 1, 2005.


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