HB 0607

1	A bill to be entitled
2	An act relating to the tax on sales, use, and other
3	transactions; amending s. 212.02, F.S.; redefining the
4	terms "lease," "let," "rental," "sales price," and
5	"tangible personal property" and defining the terms
6	"agent," "seller," "certified service provider," "direct
7	mail," "prewritten computer software," and "delivery
8	charges" for purposes of sales and use taxes; providing
9	applicability; amending s. 212.05, F.S.; deleting
10	provisions relating to the rental or lease of motor
11	vehicles; providing for determination of the location of
12	the sale or recharge of prepaid calling arrangements;
13	amending s. 212.054, F.S.; providing the time for applying
14	changes in local option tax rates; providing guidelines
15	for determining the situs of certain transactions;
16	providing for notice of a change in a local option sales
17	tax rate; providing for applicability of s. 202.22(2),
18	F.S., relating to determination of local tax situs, for
19	the purpose of providing and maintaining a database of
20	sales and use tax rates for local jurisdictions; amending
21	s. 212.0596, F.S.; deleting the exemption from collecting
22	and remitting any local option surtax for certain dealers
23	who make mail order sales; amending s. 212.06, F.S.;
24	defining terms; providing general rules for determining
25	the location of transactions involving the retail sale of
26	tangible personal property, digital goods, or services and
27	for the lease or rental of tangible personal property;
28	requiring certain business purchasers to obtain multiple
29	points of use exemption forms; providing for use of such
30	forms; requiring certain purchasers of direct mail to
31	obtain a direct mail form; providing for the use of such
32	form; amending s. 212.08, F.S., relating to exemptions
33	from the sales and use tax; defining and redefining terms
34	used with respect to the exemption for general groceries;
35	defining and redefining terms used with respect to the
36	exemption for medical products and supplies; revising that
37	exemption; amending s. 212.095, F.S.; revising provisions
38	relating to refunds; creating s. 212.094, F.S.; providing
39	that a purchaser seeking a refund or credit under ch. 212,
40	F.S., must submit a written request for the refund or
41	credit; providing a time period within which the dealer
42	shall respond to the written request; amending s. 212.17,
43	F.S.; prescribing additional guidelines and procedures
44	with respect to dealer credits for taxes paid on worthless
45	accounts; creating s. 213.052, F.S.; providing for notice
46	of state sales or use tax rate changes; creating s.
47	213.0521, F.S.; providing the effective date for state
48	sales and use tax rate changes; amending s. 213.21, F.S.;
49	providing for amnesty to certain sellers for uncollected
50	or unpaid sales and use taxes; amending s. 213.256, F.S.,
51	relating to simplified sales and use tax administration;
52	defining terms; providing that authority to administer the
53	Streamlined Sales and Use Tax Agreement rests with a
54	governing board comprised of representatives of member
55	states; providing for continuing effect of the agreement;
56	authorizing sanctions for noncompliance by a member state;
57	providing for annual recertification by member states;
58	creating s. 213.2567, F.S.; providing for the registration
59	of sellers, the certification of a person as a certified
60	service provider, and the certification of a software
61	program as a certified automated system by the governing
62	board under the Streamlined Sales and Use Tax Agreement;
63	amending ss. 212.055, 212.07, 212.15, and 212.183, F.S.;
64	conforming cross references; declaring legislative intent;
65	providing for the adoption of emergency rules; requiring
66	the Revenue Estimating Conference to determine net
67	increases in sales and use taxes under the agreement;
68	providing for deposit of such net increases into the
69	Working Capital Fund and appropriations of such funds;
70	specifying uses of such net increases under certain
71	circumstances; providing for reductions by the Legislature
72	in the sales and use tax under certain circumstances;
73	providing for subsequent transfers of net increases in the
74	sales and use tax, appropriations of such funds, and
75	further reductions in the sales and use tax under certain
76	circumstances; providing an effective date.
77
78	WHEREAS, it is the intent of the Legislature to ensure
79	fairness and equity in Florida's tax laws and policies, and
80	WHEREAS, joining the Streamlined Sales and Use Tax
81	Agreement will provide fairness and equity among taxpayers as
82	well as reduce the burden on businesses that must collect sales
83	tax for the state, and
84	WHEREAS, joining the Streamlined Sales and Use Tax
85	Agreement may provide the state with additional revenues, and
86	WHEREAS, the Legislature desires whenever possible to
87	reduce the tax burden of the citizens of the state by lowering
88	tax rates, and
89	WHEREAS, the Legislature desires to have economic stability
90	for the state's budget during economic cycles, and
91	WHEREAS, the Legislature desires that the revenue
92	implications of this act are intended to promote fairness by
93	broadening the tax base, increasing enforcement mechanisms, and
94	lowering the tax rate, NOW, THEREFORE,
95
96	Be It Enacted by the Legislature of the State of Florida:
97
98	Section 1.  Paragraph (g) of subsection (10) and
99	subsections (16) and (19) of section 212.02, Florida Statutes,
100	are amended, and subsections (35), (36), (37), (38), (39), and
101	(40) are added to said section,  to read:
102	212.02  Definitions.--The following terms and phrases when
103	used in this chapter have the meanings ascribed to them in this
104	section, except where the context clearly indicates a different
105	meaning:
106	(10)  "Lease," "let," or "rental" means leasing or renting
107	of living quarters or sleeping or housekeeping accommodations in
108	hotels, apartment houses, roominghouses, tourist or trailer
109	camps and real property, the same being defined as follows:
110	(g)1.  "Lease," "let," or "rental" also means any transfer
111	of possession or control of tangible personal property for a
112	fixed or indeterminate term for consideration. A clause for a
113	future option to purchase the equipment or to extend the
114	agreement does not preclude an agreement from being a lease or
115	rental. This definition shall be used for sales and use tax
116	purposes regardless of whether a transaction is characterized as
117	a lease or rental under generally accepted accounting
118	principles, the Internal Revenue Code, the Uniform Commercial
119	Code, or other provisions of federal, state, or local law. This
120	definition includes agreements covering motor vehicles and
121	trailers when the amount of consideration may be increased or
122	decreased by reference to the amount realized upon sale or
123	disposition of the property as defined in 26 U.S.C. s.
124	7701(h)(1). This definition does not include:
125	a.  A transfer of possession or control of property under a
126	security agreement or deferred payment plan that requires the
127	transfer of title upon completion of the required payments;
128	b.  A transfer of possession or control of property under
129	an agreement that requires the transfer of title upon completion
130	of required payments and payment of an option price that does
131	not exceed the greater of $100 or 1 percent of the total
132	required payments; or
133	c.  Providing tangible personal property along with an
134	operator for a fixed or indeterminate period of time. A
135	condition of this exclusion is that the operator is necessary
136	for the equipment to perform as designed. For the purpose of
137	this sub-subparagraph, an operator must do more than maintain,
138	inspect, or set up the tangible personal property the leasing or
139	rental of tangible personal property and the possession or use
140	thereof by the lessee or rentee for a consideration, without
141	transfer of the title of such property, except as expressly
142	provided to the contrary herein.
143	2.  The term "lease," "let," or "rental" does not mean
144	hourly, daily, or mileage charges, to the extent that such
145	charges are subject to the jurisdiction of the United States
146	Interstate Commerce Commission, when such charges are paid by
147	reason of the presence of railroad cars owned by another on the
148	tracks of the taxpayer, or charges made pursuant to car service
149	agreements. The term "lease," "let," "rental," or "license" does
150	not include payments made to an owner of high-voltage bulk
151	transmission facilities in connection with the possession or
152	control of such facilities by a regional transmission
153	organization, independent system operator, or similar entity
154	under the jurisdiction of the Federal Energy Regulatory
155	Commission. However, where two taxpayers, in connection with the
156	interchange of facilities, rent or lease property, each to the
157	other, for use in providing or furnishing any of the services
158	mentioned in s. 166.231, the term "lease or rental" means only
159	the net amount of rental involved.
160	(16)(a)  "Sales price" applies to the measure subject to
161	sales tax and means the total amount of consideration, including
162	cash, credit, property, and services, for which personal
163	property or services are sold, leased, or rented, valued in
164	money, whether received in money or otherwise, without any
165	deduction for the following:
166	1.  The seller's cost of the property sold.
167	2.  The cost of materials used, labor or service cost,
168	interest, losses, all costs of transportation to the seller, all
169	taxes imposed on the seller, and any other expense of the
170	seller.
171	3.  Charges by the seller for any services necessary to
172	complete the sale, other than delivery and installation charges.
173	4.  Delivery charges.
174	5.  Installation charges.
175	(b)  The term "sales price" does not include;
176	1.  Trade-ins allowed and taken at the time of sale if the
177	amount is separately stated on the invoice, bill of sale, or
178	similar document given to the purchaser.
179	2.  Discounts, including cash, term, or coupons, which are
180	not reimbursed by a third party, which are allowed by a seller,
181	and which are taken by a purchaser at the time of sale.
182	3.  Interest, financing, and carrying charges from credit
183	extended on the sale of personal property or services, if the
184	amount is separately stated on the invoice, bill of sale, or
185	similar document given to the purchaser.
186	4.  Any taxes legally imposed directly on the consumer
187	which are separately stated on the invoice, bill of sale, or
188	similar document given to the purchaser means the total amount
189	paid for tangible personal property, including any services that
190	are a part of the sale, valued in money, whether paid in money
191	or otherwise, and includes any amount for which credit is given
192	to the purchaser by the seller, without any deduction therefrom
193	on account of the cost of the property sold, the cost of
194	materials used, labor or service cost, interest charged, losses,
195	or any other expense whatsoever. "Sales price" also includes the
196	consideration for a transaction which requires both labor and
197	material to alter, remodel, maintain, adjust, or repair tangible
198	personal property. Trade-ins or discounts allowed and taken at
199	the time of sale shall not be included within the purview of
200	this subsection. "Sales price" also includes the full face value
201	of any coupon used by a purchaser to reduce the price paid to a
202	retailer for an item of tangible personal property; where the
203	retailer will be reimbursed for such coupon, in whole or in
204	part, by the manufacturer of the item of tangible personal
205	property; or whenever it is not practicable for the retailer to
206	determine, at the time of sale, the extent to which
207	reimbursement for the coupon will be made. The term "sales
208	price" does not include federal excise taxes imposed upon the
209	retailer on the sale of tangible personal property. The term
210	"sales price" does include federal manufacturers' excise taxes,
211	even if the federal tax is listed as a separate item on the
212	invoice.
213	(19)  "Tangible personal property" means and includes
214	personal property which may be seen, weighed, measured, or
215	touched or is in any manner perceptible to the senses, including
216	electric power or energy, water, gas, steam, prewritten computer
217	software, boats, motor vehicles and mobile homes as defined in
218	s. 320.01(1) and (2), aircraft as defined in s. 330.27, and all
219	other types of vehicles. The term "tangible personal property"
220	does not include stocks, bonds, notes, insurance, or other
221	obligations or securities; intangibles as defined by the
222	intangible tax law of the state; or pari-mutuel tickets sold or
223	issued under the racing laws of the state.
224	(35)  "Agent" means a person appointed by a principal or
225	authorized to act for the principal in a transaction involving
226	the sale of an item of tangible personal property. The term also
227	means a person appointed by a seller to represent the seller
228	before the states that are signatories to the Streamlined Sales
229	and Use Tax Agreement.
230	(36)  "Seller" means any person making sales, leases, or
231	rentals of personal property or services.
232	(37)  "Certified service provider" means an agent certified
233	under the Streamlined Sales and Use Tax Agreement to perform all
234	of the seller's sales tax functions, other than the seller's
235	obligation to remit tax on its own purchases.
236	(38)  "Direct mail" means printed material delivered or
237	distributed by United States mail or other delivery service to a
238	mass audience or to addressees on a mailing list provided by the
239	purchaser or at the direction of the purchaser when the cost of
240	the items is not billed directly to the recipients. The term
241	includes tangible personal property supplied directly or
242	indirectly by the purchaser to the direct mail seller for
243	inclusion in the package containing the printed material. The
244	term does not include multiple items of printed material
245	delivered to a single address.
246	(39)  "Prewritten computer software" means computer
247	software, including prewritten upgrades, which is not designed
248	and developed by the author or other creator to the
249	specifications of a specific purchaser. The combining of two or
250	more "prewritten computer software" programs or prewritten
251	portions thereof does not cause the combination to be other than
252	"prewritten computer software." The term includes software
253	designed and developed by the author or other creator to the
254	specifications of a specific purchaser when it is sold to a
255	person other than that purchaser. When a person modifies or
256	enhances computer software of which the person is not the author
257	or creator, the person shall be deemed to be the author or
258	creator only of such person's modifications or enhancements.
259	Prewritten computer software, or a prewritten portion thereof,
260	that is modified or enhanced to any degree, when such
261	modification or enhancement is designed and developed to the
262	specifications of a specific purchaser, remains "prewritten
263	computer software"; however, when there is a reasonable,
264	separately stated charge or an invoice or other statement of the
265	price given to the purchaser for such modification or
266	enhancement, such modification or enhancement does not
267	constitute "prewritten computer software."
268	(40)  "Delivery charges" means charges by the seller of
269	personal property or services for preparation and delivery to a
270	location designated by the purchaser of personal property or
271	services, including, but not limited to, transportation,
272	shipping, postage, handling, crating, and packing. The term does
273	not include the charges for delivery of "direct mail" as defined
274	by this section if the charges are separately stated on an
275	invoice or similar billing document given to the purchaser.
276	Section 2.  The amendment of the terms "lease," "let," and
277	"rental" in s. 212.02, Florida Statutes, made by this act
278	applies prospectively only, from January 1, 2006, and does not
279	apply retroactively to leases or rentals existing before that
280	date.
281	Section 3.  Paragraphs (a), (c), and (e) of subsection (1)
282	of section 212.05, Florida Statutes, are amended to read:
283	212.05  Sales, storage, use tax.--It is hereby declared to
284	be the legislative intent that every person is exercising a
285	taxable privilege who engages in the business of selling
286	tangible personal property at retail in this state, including
287	the business of making mail order sales, or who rents or
288	furnishes any of the things or services taxable under this
289	chapter, or who stores for use or consumption in this state any
290	item or article of tangible personal property as defined herein
291	and who leases or rents such property within the state.
292	(1)  For the exercise of such privilege, a tax is levied on
293	each taxable transaction or incident, which tax is due and
294	payable as follows:
295	(a)1.a.  Except as otherwise provided by law, at the rate
296	of 6 percent of the sales price of each item or article of
297	tangible personal property when sold at retail in this state,
298	computed on each taxable sale for the purpose of remitting the
299	amount of tax due the state, and including each and every retail
300	sale.
301	b.  Each occasional or isolated sale of an aircraft, boat,
302	mobile home, or motor vehicle of a class or type which is
303	required to be registered, licensed, titled, or documented in
304	this state or by the United States Government shall be subject
305	to tax at the rate provided in this paragraph. The department
306	shall by rule adopt any nationally recognized publication for
307	valuation of used motor vehicles as the reference price list for
308	any used motor vehicle which is required to be licensed pursuant
309	to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
310	party to an occasional or isolated sale of such a vehicle
311	reports to the tax collector a sales price which is less than 80
312	percent of the average loan price for the specified model and
313	year of such vehicle as listed in the most recent reference
314	price list, the tax levied under this paragraph shall be
315	computed by the department on such average loan price unless the
316	parties to the sale have provided to the tax collector an
317	affidavit signed by each party, or other substantial proof,
318	stating the actual sales price. Any party to such sale who
319	reports a sales price less than the actual sales price is guilty
320	of a misdemeanor of the first degree, punishable as provided in
321	s. 775.082 or s. 775.083. The department shall collect or
322	attempt to collect from such party any delinquent sales taxes.
323	In addition, such party shall pay any tax due and any penalty
324	and interest assessed plus a penalty equal to twice the amount
325	of the additional tax owed. Notwithstanding any other provision
326	of law, the Department of Revenue may waive or compromise any
327	penalty imposed pursuant to this subparagraph.
328	2.  This paragraph does not apply to the sale of a boat or
329	airplane by or through a registered dealer under this chapter to
330	a purchaser who, at the time of taking delivery, is a
331	nonresident of this state, does not make his or her permanent
332	place of abode in this state, and is not engaged in carrying on
333	in this state any employment, trade, business, or profession in
334	which the boat will be used in this state, or is a corporation
335	none of the officers or directors of which is a resident of, or
336	makes his or her permanent place of abode in, this state, or is
337	a noncorporate entity that has no individual vested with
338	authority to participate in the management, direction, or
339	control of the entity's affairs who is a resident of, or makes
340	his or her permanent abode in, this state. For purposes of this
341	exemption, either a registered dealer acting on his or her own
342	behalf as seller, a registered dealer acting as broker on behalf
343	of a seller, or a registered dealer acting as broker on behalf
344	of the purchaser may be deemed to be the selling dealer. This
345	exemption shall not be allowed unless:
346	a.  The purchaser removes a qualifying boat, as described
347	in sub-subparagraph f., from the state within 90 days after the
348	date of purchase or the purchaser removes a nonqualifying boat
349	or an airplane from this state within 10 days after the date of
350	purchase or, when the boat or airplane is repaired or altered,
351	within 20 days after completion of the repairs or alterations;
352	b.  The purchaser, within 30 days from the date of
353	departure, shall provide the department with written proof that
354	the purchaser licensed, registered, titled, or documented the
355	boat or airplane outside the state. If such written proof is
356	unavailable, within 30 days the purchaser shall provide proof
357	that the purchaser applied for such license, title,
358	registration, or documentation. The purchaser shall forward to
359	the department proof of title, license, registration, or
360	documentation upon receipt.
361	c.  The purchaser, within 10 days of removing the boat or
362	airplane from Florida, shall furnish the department with proof
363	of removal in the form of receipts for fuel, dockage, slippage,
364	tie-down, or hangaring from outside of Florida. The information
365	so provided must clearly and specifically identify the boat or
366	aircraft;
367	d.  The selling dealer, within 5 days of the date of sale,
368	shall provide to the department a copy of the sales invoice,
369	closing statement, bills of sale, and the original affidavit
370	signed by the purchaser attesting that he or she has read the
371	provisions of this section;
372	e.  The seller makes a copy of the affidavit a part of his
373	or her record for as long as required by s. 213.35; and
374	f.  Unless the nonresident purchaser of a boat of 5 net
375	tons of admeasurement or larger intends to remove the boat from
376	this state within 10 days after the date of purchase or when the
377	boat is repaired or altered, within 20 days after completion of
378	the repairs or alterations, the nonresident purchaser shall
379	apply to the selling dealer for a decal which authorizes 90 days
380	after the date of purchase for removal of the boat. The
381	department is authorized to issue decals in advance to dealers.
382	The number of decals issued in advance to a dealer shall be
383	consistent with the volume of the dealer's past sales of boats
384	which qualify under this sub-subparagraph. The selling dealer or
385	his or her agent shall mark and affix the decals to qualifying
386	boats in the manner prescribed by the department, prior to
387	delivery of the boat.
388	(I)  The department is hereby authorized to charge dealers
389	a fee sufficient to recover the costs of decals issued.
390	(II)  The proceeds from the sale of decals will be
391	deposited into the administrative trust fund.
392	(III)  Decals shall display information to identify the
393	boat as a qualifying boat under this sub-subparagraph,
394	including, but not limited to, the decal's date of expiration.
395	(IV)  The department is authorized to require dealers who
396	purchase decals to file reports with the department and may
397	prescribe all necessary records by rule. All such records are
398	subject to inspection by the department.
399	(V)  Any dealer or his or her agent who issues a decal
400	falsely, fails to affix a decal, mismarks the expiration date of
401	a decal, or fails to properly account for decals will be
402	considered prima facie to have committed a fraudulent act to
403	evade the tax and will be liable for payment of the tax plus a
404	mandatory penalty of 200 percent of the tax, and shall be liable
405	for fine and punishment as provided by law for a conviction of a
406	misdemeanor of the first degree, as provided in s. 775.082 or s.
407	775.083.
408	(VI)  Any nonresident purchaser of a boat who removes a
409	decal prior to permanently removing the boat from the state, or
410	defaces, changes, modifies, or alters a decal in a manner
411	affecting its expiration date prior to its expiration, or who
412	causes or allows the same to be done by another, will be
413	considered prima facie to have committed a fraudulent act to
414	evade the tax and will be liable for payment of the tax plus a
415	mandatory penalty of 200 percent of the tax, and shall be liable
416	for fine and punishment as provided by law for a conviction of a
417	misdemeanor of the first degree, as provided in s. 775.082 or s.
418	775.083.
419	(VII)  The department is authorized to adopt rules
420	necessary to administer and enforce this subparagraph and to
421	publish the necessary forms and instructions.
422	(VIII)  The department is hereby authorized to adopt
423	emergency rules pursuant to s. 120.54(4) to administer and
424	enforce the provisions of this subparagraph.
425
426	If the purchaser fails to remove the qualifying boat from this
427	state within 90 days after purchase or a nonqualifying boat or
428	an airplane from this state within 10 days after purchase or,
429	when the boat or airplane is repaired or altered, within 20 days
430	after completion of such repairs or alterations, or permits the
431	boat or airplane to return to this state within 6 months from
432	the date of departure, or if the purchaser fails to furnish the
433	department with any of the documentation required by this
434	subparagraph within the prescribed time period, the purchaser
435	shall be liable for use tax on the cost price of the boat or
436	airplane and, in addition thereto, payment of a penalty to the
437	Department of Revenue equal to the tax payable. This penalty
438	shall be in lieu of the penalty imposed by s. 212.12(2) and is
439	mandatory and shall not be waived by the department. The 90-day
440	period following the sale of a qualifying boat tax exempt to a
441	nonresident may not be tolled for any reason. Notwithstanding
442	other provisions of this paragraph to the contrary, an aircraft
443	purchased in this state under the provisions of this paragraph
444	may be returned to this state for repairs within 6 months after
445	the date of its departure without being in violation of the law
446	and without incurring liability for the payment of tax or
447	penalty on the purchase price of the aircraft if the aircraft is
448	removed from this state within 20 days after the completion of
449	the repairs and if such removal can be demonstrated by invoices
450	for fuel, tie-down, hangar charges issued by out-of-state
451	vendors or suppliers, or similar documentation.
452	(c)  At the rate of 6 percent of the gross proceeds derived
453	from the lease or rental of tangible personal property, as
454	defined herein; however, the following special provisions apply
455	to the lease or rental of motor vehicles:
456	1.  When a motor vehicle is leased or rented for a period
457	of less than 12 months:
458	a.  If the motor vehicle is rented in Florida, the entire
459	amount of such rental is taxable, even if the vehicle is dropped
460	off in another state.
461	b.  If the motor vehicle is rented in another state and
462	dropped off in Florida, the rental is exempt from Florida tax.
463	2.  Except as provided in subparagraph 3., for the lease or
464	rental of a motor vehicle for a period of not less than 12
465	months, sales tax is due on the lease or rental payments if the
466	vehicle is registered in this state; provided, however, that no
467	tax shall be due if the taxpayer documents use of the motor
468	vehicle outside this state and tax is being paid on the lease or
469	rental payments in another state.
470	3.  The tax imposed by this chapter does not apply to the
471	lease or rental of a commercial motor vehicle as defined in s.
472	316.003(66)(a) to one lessee or rentee for a period of not less
473	than 12 months when tax was paid on the purchase price of such
474	vehicle by the lessor. To the extent tax was paid with respect
475	to the purchase of such vehicle in another state, territory of
476	the United States, or the District of Columbia, the Florida tax
477	payable shall be reduced in accordance with the provisions of s.
478	212.06(7). This subparagraph shall only be available when the
479	lease or rental of such property is an established business or
480	part of an established business or the same is incidental or
481	germane to such business.
482	(e)1.  At the rate of 6 percent on charges for:
483	a.  Prepaid calling arrangements. The tax on charges for
484	prepaid calling arrangements shall be collected at the time of
485	sale and remitted by the selling dealer.
486	(I)  "Prepaid calling arrangement" means the separately
487	stated retail sale by advance payment of communications services
488	that consist exclusively of telephone calls originated by using
489	an access number, authorization code, or other means that may be
490	manually, electronically, or otherwise entered and that are sold
491	in predetermined units or dollars whose number declines with use
492	in a known amount.
493	(II)  The sale or recharge of the prepaid calling
494	arrangement is deemed to take place in accordance with paragraph
495	212.06(3)(d). In the case of a sale of a mobile communications
496	service that is a prepaid calling arrangement, the retail sale
497	is sourced at If the sale or recharge of the prepaid calling
498	arrangement does not take place at the dealer's place of
499	business, it shall be deemed to take place at the customer's
500	shipping address or, if no item is shipped, at the customer's
501	address or the location associated with the customer's mobile
502	telephone number.
503	(III)  The sale or recharge of a prepaid calling
504	arrangement shall be treated as a sale of tangible personal
505	property for purposes of this chapter, whether or not a tangible
506	item evidencing such arrangement is furnished to the purchaser,
507	and such sale within this state subjects the selling dealer to
508	the jurisdiction of this state for purposes of this subsection.
509	b.  The installation of telecommunication and telegraphic
510	equipment.
511	c.  Electrical power or energy, except that the tax rate
512	for charges for electrical power or energy is 7 percent.
513	2.  The provisions of s. 212.17(3), regarding credit for
514	tax paid on charges subsequently found to be worthless, shall be
515	equally applicable to any tax paid under the provisions of this
516	section on charges for prepaid calling arrangements,
517	telecommunication or telegraph services, or electric power
518	subsequently found to be uncollectible. The word "charges" in
519	this paragraph does not include any excise or similar tax levied
520	by the Federal Government, any political subdivision of the
521	state, or any municipality upon the purchase, sale, or recharge
522	of prepaid calling arrangements or upon the purchase or sale of
523	telecommunication, television system program, or telegraph
524	service or electric power, which tax is collected by the seller
525	from the purchaser.
526	Section 4.  Section 212.054, Florida Statutes, is amended
527	to read:
528	212.054  Discretionary sales surtax; limitations,
529	administration, and collection.--
530	(1)  No general excise tax on sales shall be levied by the
531	governing body of any county unless specifically authorized in
532	s. 212.055. Any general excise tax on sales authorized pursuant
533	to said section shall be administered and collected exclusively
534	as provided in this section.
535	(2)(a)  The tax imposed by the governing body of any county
536	authorized to so levy pursuant to s. 212.055 shall be a
537	discretionary surtax on all transactions occurring in the county
538	which transactions are subject to the state tax imposed on
539	sales, use, services, rentals, admissions, and other
540	transactions by this chapter and communications services as
541	defined for purposes of chapter 202. The surtax, if levied,
542	shall be computed as the applicable rate or rates authorized
543	pursuant to s. 212.055 times the amount of taxable sales and
544	taxable purchases representing such transactions. If the surtax
545	is levied on the sale of an item of tangible personal property
546	or on the sale of a service, the surtax shall be computed by
547	multiplying the rate imposed by the county within which the sale
548	occurs by the amount of the taxable sale. The sale of an item of
549	tangible personal property or the sale of a service is not
550	subject to the surtax if the property, the service, or the
551	tangible personal property representing the service is delivered
552	within a county that does not impose a discretionary sales
553	surtax.
554	(b)  However:
555	1.  The sales amount above $5,000 on any item of tangible
556	personal property shall not be subject to the surtax. However,
557	charges for prepaid calling arrangements, as defined in s.
558	212.05(1)(e)1.a., shall be subject to the surtax. For purposes
559	of administering the $5,000 limitation on an item of tangible
560	personal property, if two or more taxable items of tangible
561	personal property are sold to the same purchaser at the same
562	time and, under generally accepted business practice or industry
563	standards or usage, are normally sold in bulk or are items that,
564	when assembled, comprise a working unit or part of a working
565	unit, such items must be considered a single item for purposes
566	of the $5,000 limitation when supported by a charge ticket,
567	sales slip, invoice, or other tangible evidence of a single sale
568	or rental.
569	2.  In the case of utility services covering a period
570	starting before and ending after the effective date of the
571	surtax, the rate shall apply as follows:
572	a.  In the case of a rate adoption or increase, the new
573	rate shall apply to the first billing period starting on or
574	after the effective date of the surtax or increase.
575	b.  In the case of a rate decrease or termination, the new
576	rate shall apply to bills rendered on or after the effective
577	date of the rate change billed on or after the effective date of
578	any such surtax, the entire amount of the charge for utility
579	services shall be subject to the surtax. In the case of utility
580	services billed after the last day the surtax is in effect, the
581	entire amount of the charge on said items shall not be subject
582	to the surtax.
583
584	"Utility service," as used in this section, does not include any
585	communications services as defined in chapter 202.
586	3.  In the case of written contracts which are signed prior
587	to the effective date of any such surtax for the construction of
588	improvements to real property or for remodeling of existing
589	structures, the surtax shall be paid by the contractor
590	responsible for the performance of the contract. However, the
591	contractor may apply for one refund of any such surtax paid on
592	materials necessary for the completion of the contract. Any
593	application for refund shall be made no later than 15 months
594	following initial imposition of the surtax in that county. The
595	application for refund shall be in the manner prescribed by the
596	department by rule. A complete application shall include proof
597	of the written contract and of payment of the surtax. The
598	application shall contain a sworn statement, signed by the
599	applicant or its representative, attesting to the validity of
600	the application. The department shall, within 30 days after
601	approval of a complete application, certify to the county
602	information necessary for issuance of a refund to the applicant.
603	Counties are hereby authorized to issue refunds for this purpose
604	and shall set aside from the proceeds of the surtax a sum
605	sufficient to pay any refund lawfully due. Any person who
606	fraudulently obtains or attempts to obtain a refund pursuant to
607	this subparagraph, in addition to being liable for repayment of
608	any refund fraudulently obtained plus a mandatory penalty of 100
609	percent of the refund, is guilty of a felony of the third
610	degree, punishable as provided in s. 775.082, s. 775.083, or s.
611	775.084.
612	4.  In the case of any vessel, railroad, or motor vehicle
613	common carrier entitled to partial exemption from tax imposed
614	under this chapter pursuant to s. 212.08(4), (8), or (9), the
615	basis for imposition of surtax shall be the same as provided in
616	s. 212.08 and the ratio shall be applied each month to total
617	purchases in this state of property qualified for proration
618	which is delivered or sold in the taxing county to establish the
619	portion used and consumed in intracounty movement and subject to
620	surtax.
621	(3)  For purposes of this section, a retail sale, lease, or
622	rental of tangible personal property, a digital good, or a
623	service shall be deemed to have occurred in a county imposing
624	the surtax when the location where the sale is deemed to take
625	place in accordance with s. 212.06(3) is located in a county
626	that imposes a surtax.
627	(4)(3)  For the purpose of this section, a transaction
628	shall be deemed to have occurred in a county imposing the surtax
629	when:
630	(a)1.  Notwithstanding subsection (3), the retail sale that
631	is a modular home or manufactured home that is not a mobile home
632	includes an item of tangible personal property, a service, or
633	tangible personal property representing a service, and the item
634	of tangible personal property, the service, or the tangible
635	personal property representing the service is delivered within
636	the county. If there is no reasonable evidence of delivery of a
637	service, the sale of a service is deemed to occur in the county
638	in which the purchaser accepts the bill of sale.
639	(b)2.  Notwithstanding subsection (3), the retail sale,
640	excluding lease or rental, of any motor vehicle that does not
641	qualify as transportation equipment, as defined in s.
642	212.06(3)(g), or the retail sale of a mobile home of a class or
643	type which is required to be registered in this state or in any
644	other state occurs shall be deemed to have occurred only in the
645	county identified as the residence address of the purchaser on
646	the registration or title document for such property.
647	(c)  The real property that is leased or rented is located
648	in the county.
649	(d)  The transient rental transaction occurs in the county.
650	(e)(b)  The event for which an admission is charged is
651	located in the county.
652	(f)  The coin-operated amusement or vending machine is
653	located in the county.
654	(g)  The florist taking the original order to sell tangible
655	personal property is located in the county, notwithstanding any
656	other provision of this section.
657	(c)  The consumer of utility services is located in the
658	county.
659	(h)(d)1.  Notwithstanding subsection (3), the delivery
660	derived from the retail sale, excluding lease or rental, of any
661	aircraft that does not qualify as transportation equipment, as
662	defined in s. 212.06(3)(g), or of any boat of a class or type
663	that is required to be registered, licensed, titled, or
664	documented in this state or by the United States Government is
665	to a location in the county.
666	2.  The user of any aircraft or boat of a class or type
667	which is required to be registered, licensed, titled, or
668	documented in this state or by the United States Government
669	imported into the county for use, consumption, distribution, or
670	storage to be used or consumed in the county is located in the
671	county.
672	3.2.  However, it shall be presumed that such items used
673	outside the county for 6 months or longer before being imported
674	into the county were not purchased for use in the county, except
675	as provided in s. 212.06(9)(8)(b).
676	4.3.  This paragraph does not apply to the use or
677	consumption of items upon which a like tax of equal or greater
678	amount has been lawfully imposed and paid outside the county.
679	(i)(e)  The purchaser of any motor vehicle or mobile home
680	of a class or type which is required to be registered in this
681	state is a resident of the taxing county as determined by the
682	address appearing on or to be reflected on the registration
683	document for such property.
684	(j)(f)1.  Any motor vehicle or mobile home of a class or
685	type which is required to be registered in this state is
686	imported from another state into the taxing county by a user
687	residing therein for the purpose of use, consumption,
688	distribution, or storage in the taxing county.
689	2.  However, it shall be presumed that such items used
690	outside the taxing county for 6 months or longer before being
691	imported into the county were not purchased for use in the
692	county.
693	(g)  The real property which is leased or rented is located
694	in the county.
695	(h)  The transient rental transaction occurs in the county.
696	(i)  The delivery of any aircraft or boat of a class or
697	type which is required to be registered, licensed, titled, or
698	documented in this state or by the United States Government is
699	to a location in the county. However, this paragraph does not
700	apply to the use or consumption of items upon which a like tax
701	of equal or greater amount has been lawfully imposed and paid
702	outside the county.
703	(k)(j)  The dealer owing a use tax on purchases or leases
704	is located in the county.
705	(k)  The delivery of tangible personal property other than
706	that described in paragraph (d), paragraph (e), or paragraph (f)
707	is made to a location outside the county, but the property is
708	brought into the county within 6 months after delivery, in which
709	event, the owner must pay the surtax as a use tax.
710	(l)  The coin-operated amusement or vending machine is
711	located in the county.
712	(m)  The florist taking the original order to sell tangible
713	personal property is located in the county, notwithstanding any
714	other provision of this section.
715	(5)(4)(a)  The department shall administer, collect, and
716	enforce the tax authorized under s. 212.055 pursuant to the same
717	procedures used in the administration, collection, and
718	enforcement of the general state sales tax imposed under the
719	provisions of this chapter, except as provided in this section.
720	The provisions of this chapter regarding interest and penalties
721	on delinquent taxes shall apply to the surtax. Discretionary
722	sales surtaxes shall not be included in the computation of
723	estimated taxes pursuant to s. 212.11. Notwithstanding any other
724	provision of law, a dealer need not separately state the amount
725	of the surtax on the charge ticket, sales slip, invoice, or
726	other tangible evidence of sale. For the purposes of this
727	section and s. 212.055, the "proceeds" of any surtax means all
728	funds collected and received by the department pursuant to a
729	specific authorization and levy under s. 212.055, including any
730	interest and penalties on delinquent surtaxes.
731	(b)  The proceeds of a discretionary sales surtax collected
732	by the selling dealer located in a county which imposes the
733	surtax shall be returned, less the cost of administration, to
734	the county where the selling dealer is located. The proceeds
735	shall be transferred to the Discretionary Sales Surtax Clearing
736	Trust Fund. A separate account shall be established in such
737	trust fund for each county imposing a discretionary surtax. The
738	amount deducted for the costs of administration shall not exceed
739	3 percent of the total revenue generated for all counties
740	levying a surtax authorized in s. 212.055. The amount deducted
741	for the costs of administration shall be used only for those
742	costs which are solely and directly attributable to the surtax.
743	The total cost of administration shall be prorated among those
744	counties levying the surtax on the basis of the amount collected
745	for a particular county to the total amount collected for all
746	counties. No later than March 1 of each year, the department
747	shall submit a written report which details the expenses and
748	amounts deducted for the costs of administration to the
749	President of the Senate, the Speaker of the House of
750	Representatives, and the governing authority of each county
751	levying a surtax. The department shall distribute the moneys in
752	the trust fund each month to the appropriate counties, unless
753	otherwise provided in s. 212.055.
754	(c)1.  Any dealer located in a county that does not impose
755	a discretionary sales surtax but who collects the surtax due to
756	sales of tangible personal property or services delivered
757	outside the county shall remit monthly the proceeds of the
758	surtax to the department to be deposited into an account in the
759	Discretionary Sales Surtax Clearing Trust Fund which is separate
760	from the county surtax collection accounts. The department shall
761	distribute funds in this account using a distribution factor
762	determined for each county that levies a surtax and multiplied
763	by the amount of funds in the account and available for
764	distribution. The distribution factor for each county equals the
765	product of:
766	a.  The county's latest official population determined
767	pursuant to s. 186.901;
768	b.  The county's rate of surtax; and
769	c.  The number of months the county has levied a surtax
770	during the most recent distribution period;
771
772	divided by the sum of all such products of the counties levying
773	the surtax during the most recent distribution period.
774	2.  The department shall compute distribution factors for
775	eligible counties once each quarter and make appropriate
776	quarterly distributions.
777	3.  A county that fails to timely provide the information
778	required by this section to the department authorizes the
779	department, by such action, to use the best information
780	available to it in distributing surtax revenues to the county.
781	If this information is unavailable to the department, the
782	department may partially or entirely disqualify the county from
783	receiving surtax revenues under this paragraph. A county that
784	fails to provide timely information waives its right to
785	challenge the department's determination of the county's share,
786	if any, of revenues provided under this paragraph.
787	(5)  No discretionary sales surtax or increase or decrease
788	in the rate of any discretionary sales surtax shall take effect
789	on a date other than January 1. No discretionary sales surtax
790	shall terminate on a day other than December 31.
791	(6)  The governing body of any county levying a
792	discretionary sales surtax shall enact an ordinance levying the
793	surtax in accordance with the procedures described in s.
794	125.66(2).
795	(7)(a)  Any adoption, repeal, or rate change of the surtax
796	by the governing body of any county levying a discretionary
797	sales surtax or the school board of any county levying the
798	school capital outlay surtax authorized by s. 212.055(6) is
799	effective on April 1. A county or school board adopting,
800	repealing, or changing the rate of such tax shall notify the
801	department within 10 days after final adoption by ordinance or
802	referendum of an adoption, repeal imposition, termination, or
803	rate change of the surtax, but no later than November 16
804	immediately preceding such April 1 prior to the effective date.
805	The notice must specify the time period during which the surtax
806	will be in effect and the rate and must include a copy of the
807	ordinance and such other information as the department requires
808	by rule. Failure to timely provide such notification to the
809	department shall result in the delay of the effective date for a
810	period of 1 year.
811	(b)  In addition to the notification required by paragraph
812	(a), the governing body of any county proposing to levy a
813	discretionary sales surtax or the school board of any county
814	proposing to levy the school capital outlay surtax authorized by
815	s. 212.055(6) shall notify the department by October 1 if the
816	referendum or consideration of the ordinance that would result
817	in imposition, termination, or rate change of the surtax is
818	scheduled to occur on or after October 1 of that year. Failure
819	to timely provide such notification to the department shall
820	result in the delay of the effective date for a period of 1
821	year.
822	(8)  The department shall provide notice of such adoption,
823	repeal, or change to all affected sellers by the December 1
824	immediately preceding the April 1 effective date.
825	(9)(8)  With respect to any motor vehicle or mobile home of
826	a class or type which is required to be registered in this
827	state, the tax due on a transaction occurring in the taxing
828	county as herein provided shall be collected from the purchaser
829	or user incident to the titling and registration of such
830	property, irrespective of whether such titling or registration
831	occurs in the taxing county.
832	(10)  For the purpose of the state providing and
833	maintaining a database of all sales and use tax rates for all
834	local taxing jurisdictions in accordance with the Streamlined
835	Sales and Use Tax Agreement under s. 213.256, the provisions of
836	s. 202.22(2) shall apply.
837	(a)  A seller or certified service provider who collects
838	and remits the state and local sales and use tax imposed by this
839	chapter shall use the database provided under s. 202.22(2).
840	(b)  A seller or certified service provider that collects
841	and remits the state and local sales and use tax imposed under
842	this chapter shall be held harmless from tax, interest, and
843	penalties which would otherwise be due solely as a result of the
844	seller or certified service provider relying on an incorrect
845	taxing jurisdiction assignment made in the database provided
846	under s. 202.22(2).
847	(c)  The provisions of this subsection shall not apply when
848	the purchased product is received by the purchaser at the
849	business location of the seller.
850	Section 5.  Subsections (6) and (7) of section 212.0596,
851	Florida Statutes, are amended to read:
852	212.0596  Taxation of mail order sales.--
853	(6)  Notwithstanding other provisions of law, a dealer who
854	makes a mail order sale in this state is exempt from collecting
855	and remitting any local option surtax on the sale, unless the
856	dealer is located in a county that imposes a surtax within the
857	meaning of s. 212.054(3)(a), the order is placed through the
858	dealer's location in such county, and the property purchased is
859	delivered into such county or into another county in this state
860	that levies the surtax, in which case the provisions of s.
861	212.054(3)(a) are applicable.
862	(6)(7)  The department may establish by rule procedures for
863	collecting the use tax from unregistered persons who but for
864	their mail order purchases would not be required to remit sales
865	or use tax directly to the department. The procedures may
866	provide for waiver of registration and registration fees,
867	provisions for irregular remittance of tax, elimination of the
868	collection allowance, and nonapplication of local option
869	surtaxes.
870	Section 6.  Present subsections (3) through (16) of section
871	212.06, Florida Statutes, are renumbered as subsections (4)
872	through (17), respectively, a new subsection (3) is added to
873	said section, and present subsections (3) and (12) of said
874	section are amended, to read:
875	212.06  Sales, storage, use tax; collectible from dealers;
876	"dealer" defined; dealers to collect from purchasers;
877	legislative intent as to scope of tax.--
878	(3)  It is the intent of this chapter to apply this
879	subsection to determine the source of a transaction for purposes
880	of applying the tax imposed by this chapter. When the source of
881	the transaction is determined to be a Florida location, the tax
882	imposed by this chapter applies in accordance with this chapter.
883	(a)  For purposes of this subsection, the terms "receive"
884	and "receipt" mean:
885	1.  Taking possession of tangible personal property;
886	2.  Making first use of services; or
887	3.  Taking possession or making first use of digital goods,
888	whichever comes first.
889
890	The terms do not include possession by a shipping company on
891	behalf of the purchaser.
892	(b)  For purposes of this subsection, the term "product"
893	means tangible personal property, a digital good, or a service.
894	(c)  This section does not apply to the sales or use taxes
895	levied on the following:
896	1.  The retail sale or transfer of boats, modular homes,
897	manufactured homes, or mobile homes;
898	2.  The retail sale, excluding lease or rental, of motor
899	vehicles or aircraft that do not qualify as transportation
900	equipment as defined in paragraph (g). The lease or rental of
901	these items shall be deemed to have occurred in accordance with
902	paragraph (f).
903	3.  The retail sale of tangible personal property by a
904	florist.
905
906	Such retail sales are deemed to take place in accordance with s.
907	212.054(4).
908	(d)  The retail sale of a product, excluding a lease or
909	rental, shall be deemed to take place:
910	1.  When the product is received by the purchaser at a
911	business location of the seller, at that business location.
912	2.  When the product is not received by the purchaser at a
913	business location of the seller, at the location where receipt
914	by the purchaser, or the purchaser's donee, designated as such
915	by the purchaser, occurs, including the location indicated by
916	instructions for delivery to the purchaser or donee, known to
917	the seller.
918	3.  When subparagraphs 1. and 2. do not apply, at the
919	location indicated by an address for the purchaser which is
920	available from the business records of the seller which are
921	maintained in the ordinary course of the seller's business when
922	use of this address does not constitute bad faith.
923	4.  When subparagraphs 1., 2., and 3. do not apply, at the
924	location indicated by an address for the purchaser obtained
925	during the consummation of the sale, including the address of a
926	purchaser's payment instrument, if no other address is
927	available, when use of this address does not constitute bad
928	faith.
929	5.  When subparagraphs 1., 2., 3., and 4. do not apply,
930	including when the seller is without sufficient information to
931	apply the previous paragraphs, the address from which tangible
932	personal property was shipped, from which the digital good or
933	the computer software delivered electronically was first
934	available for transmission by the seller, or from which the
935	service was provided, disregarding any location that merely
936	provided the digital transfer of the product sold.
937	(e)  The lease or rental of tangible personal property,
938	other than property identified in paragraphs (f) and (g), shall
939	be deemed to have occurred as follows:
940	1.  For a lease or rental that requires recurring periodic
941	payments, the first periodic payment is deemed to take place in
942	accordance with paragraph (d), notwithstanding the exclusion of
943	lease or rental in paragraph (d). Subsequent periodic payments
944	are deemed to have occurred at the primary property location for
945	each period covered by the payment. The primary property
946	location is determined by an address for the property provided
947	by the lessee which is available to the lessor from its records
948	maintained in the ordinary course of business, when use of this
949	address does not constitute bad faith. The property location
950	shall not be altered by intermittent use of the property at
951	different locations, such as use of business property that
952	accompanies employees on business trips and service calls.
953	2.  For a lease or rental that does not require recurring
954	periodic payments, the payment is deemed to take place in
955	accordance with the provisions of paragraph (d), notwithstanding
956	the exclusion of lease or rental in paragraph (d).
957	3.  This paragraph does not affect the imposition or
958	computation of sales or use tax on leases or rentals based on a
959	lump-sum or accelerated basis or on the acquisition of property
960	for lease.
961	(f)  The lease or rental of motor vehicles or aircraft that
962	do not qualify as transportation equipment, as defined in
963	paragraph (g), shall be sourced as follows:
964	1.  For a lease or rental that requires recurring periodic
965	payments, each periodic payment is deemed to take place at the
966	primary property location. The primary property location shall
967	be determined by an address for the property provided by the
968	lessee which is available to the lessor from its records
969	maintained in the ordinary course of business, when use of this
970	address does not constitute bad faith. This location shall not
971	be altered by intermittent use at different locations.
972	2.  For a lease or rental that does not require recurring
973	periodic payments, the payment is deemed to take place in
974	accordance with paragraph (d), notwithstanding the exclusion of
975	lease or rental in paragraph (d).
976	3.  This paragraph does not affect the imposition or
977	computation of sales or use tax on leases or rentals based on a
978	lump-sum or accelerated basis or on the acquisition of property
979	for lease.
980	(g)  The retail sale, including lease or rental, of
981	transportation equipment shall be deemed to take place in
982	accordance with paragraph (d), notwithstanding the exclusion of
983	lease or rental in paragraph (d). The term "transportation
984	equipment" means:
985	1.  Locomotives and railcars that are used for the carriage
986	of persons or property in interstate commerce;
987	2.  Trucks and truck tractors with a Gross Vehicle Weight
988	Rating (GVWR) of 10,001 pounds or greater, trailers,
989	semitrailers, or passenger buses that are registered through the
990	International Registration Plan and operated under authority of
991	a carrier authorized and certificated by the United States
992	Department of Transportation or another federal authority to
993	engage in the carriage of persons or property in interstate
994	commerce;
995	3.  Aircraft that are operated by air carriers authorized
996	and certificated by the United States Department of
997	Transportation or another federal or a foreign authority to
998	engage in the carriage of persons or property in interstate or
999	foreign commerce; or
1000	4.  Containers designed for use on and component parts
1001	attached or secured on the items set forth in subparagraphs 1.
1002	through 3.
1003	(4)(3)(a)  Except as provided in paragraph (b), every
1004	dealer making sales, whether within or outside the state, of
1005	tangible personal property for distribution, storage, or use or
1006	other consumption, in this state, shall, at the time of making
1007	sales, collect the tax imposed by this chapter from the
1008	purchaser.
1009	(a)  Notwithstanding subsection (3), a business purchaser
1010	that is not a holder of a direct-pay permit and that knows at
1011	the time of purchase of a digital good, computer software
1012	delivered electronically, or service that the digital good,
1013	computer software delivered electronically, or service will be
1014	concurrently available for use in more than one jurisdiction
1015	shall deliver to the dealer a multiple points of use exemption
1016	form (MPU exemption form) at the time of purchase.
1017	1.  Upon receipt of the MPU exemption form, the seller is
1018	relieved of all obligation to collect, pay, or remit the
1019	applicable tax, and the purchaser shall be obligated to collect,
1020	pay, or remit the applicable tax on a direct-pay basis.
1021	2.  A purchaser delivering the MPU exemption form may use
1022	any reasonable, but consistent and uniform, method of
1023	apportionment that is supported by the purchaser's business
1024	records as they exist at the time of the consummation of the
1025	sale.
1026	3.  The MPU exemption form will remain in effect for all
1027	future sales by the seller to the purchaser, except as to the
1028	subsequent sale's specific apportionment that is governed by the
1029	principle of subparagraph 2. and the facts existing at the time
1030	of the sale, until the MPU exemption form is revoked in writing.
1031	4.  A holder of a direct-pay permit is not required to
1032	deliver an MPU exemption form to the seller. A direct-pay
1033	permitholder shall follow the provisions of subparagraph 2. in
1034	apportioning the tax due on a digital good or a service that
1035	will be concurrently available for use in more than one
1036	jurisdiction.
1037	(b)1.  Notwithstanding subsection (3), a purchaser of
1038	direct mail that is not a holder of a direct-pay permit shall
1039	provide to the seller in conjunction with the purchase either a
1040	direct mail form or information to show the jurisdictions to
1041	which the direct mail is delivered to recipients. Upon receipt
1042	of the direct mail form, the seller is relieved of all
1043	obligations to collect, pay, or remit the applicable tax, and
1044	the purchaser is obligated to pay or remit the applicable tax on
1045	a direct-pay basis. A direct mail form shall remain in effect
1046	for all future sales of direct mail by the seller to the
1047	purchaser until it is revoked in writing.
1048	2.  Upon receipt of information from the purchaser showing
1049	the jurisdictions to which the direct mail is delivered to
1050	recipients, the seller shall collect the tax according to the
1051	delivery information provided by the purchaser. In the absence
1052	of bad faith, the seller is relieved of any further obligation
1053	to collect tax on any transaction on which the seller has
1054	collected tax pursuant to the delivery information provided by
1055	the purchaser.
1056	3.  If the purchaser of direct mail does not have a direct-
1057	pay permit and does not provide the seller with either a direct
1058	mail form or delivery information as required by subparagraph
1059	1., the seller shall collect the tax according to subparagraph
1060	5. This paragraph does not limit a purchaser's obligation for
1061	sales or use tax to any state to which the direct mail is
1062	delivered.
1063	4.  If a purchaser of direct mail provides the seller with
1064	documentation of direct-pay authority, the purchaser is not
1065	required to provide a direct mail form or delivery information
1066	to the seller A purchaser of printed materials shall have sole
1067	responsibility for the taxes imposed by this chapter on those
1068	materials when the printer of the materials delivers them to the
1069	United States Postal Service for mailing to persons other than
1070	the purchaser located within and outside this state. Printers of
1071	materials delivered by mail to persons other than the purchaser
1072	located within and outside this state shall have no obligation
1073	or responsibility for the payment or collection of any taxes
1074	imposed under this chapter on those materials. However, printers
1075	are obligated to collect the taxes imposed by this chapter on
1076	printed materials when all, or substantially all, of the
1077	materials will be mailed to persons located within this state.
1078	For purposes of the printer's tax collection obligation, there
1079	is a rebuttable presumption that all materials printed at a
1080	facility are mailed to persons located within the same state as
1081	that in which the facility is located. A certificate provided by
1082	the purchaser to the printer concerning the delivery of the
1083	printed materials for that purchase or all purchases shall be
1084	sufficient for purposes of rebutting the presumption created
1085	herein.
1086	5.2.  The Department of Revenue is authorized to adopt
1087	rules and forms to implement the provisions of this paragraph.
1088	(13)(12)  In lieu of any other facts which may indicate
1089	commingling, any boat which remains in this state for more than
1090	an aggregate of 183 days in any 1-year period, except as
1091	provided in subsection (9) (8) or s. 212.08(7)(t), shall be
1092	presumed to be commingled with the general mass of property of
1093	this state.
1094	Section 7.  Subsections (1) and (2) and paragraph (t) of
1095	subsection (7) of section 212.08, Florida Statutes, are amended
1096	to read:
1097	212.08  Sales, rental, use, consumption, distribution, and
1098	storage tax; specified exemptions.--The sale at retail, the
1099	rental, the use, the consumption, the distribution, and the
1100	storage to be used or consumed in this state of the following
1101	are hereby specifically exempt from the tax imposed by this
1102	chapter.
1103	(1)  EXEMPTIONS; GENERAL GROCERIES.--
1104	(a)  Food and food ingredients products for human
1105	consumption are exempt from the tax imposed by this chapter.
1106	(b)  For the purpose of this chapter, as used in this
1107	subsection, the term "food and food ingredients products" means
1108	substances, whether in liquid, concentrated, solid, frozen,
1109	dried, or dehydrated form, which are sold for ingestion or
1110	chewing by humans and are consumed for their taste or
1111	nutritional value edible commodities, whether processed, cooked,
1112	raw, canned, or in any other form, which are generally regarded
1113	as food. This includes, but is not limited to, all of the
1114	following:
1115	1.  Cereals and cereal products, baked goods,
1116	oleomargarine, meat and meat products, fish and seafood
1117	products, frozen foods and dinners, poultry, eggs and egg
1118	products, vegetables and vegetable products, fruit and fruit
1119	products, spices, salt, sugar and sugar products, milk and dairy
1120	products, and products intended to be mixed with milk.
1121	2.  Natural fruit or vegetable juices or their concentrates
1122	or reconstituted natural concentrated fruit or vegetable juices,
1123	whether frozen or unfrozen, dehydrated, powdered, granulated,
1124	sweetened or unsweetened, seasoned with salt or spice, or
1125	unseasoned; coffee, coffee substitutes, or cocoa; and tea,
1126	unless it is sold in a liquid form.
1127	1.3.  Bakery products sold by bakeries, pastry shops, or
1128	like establishments, if sold without eating utensils. Bakery
1129	products for purposes of this subsection include bread, rolls,
1130	buns, biscuits, bagels, croissants, pastries, doughnuts, danish,
1131	cakes, tortes, pies, tarts, muffins, bars, cookies, and
1132	tortillas that do not have eating facilities.
1133	2.  Dietary supplements. The term "dietary supplements"
1134	means any product, other than tobacco, intended to supplement
1135	the diet that contains one or more of the following dietary
1136	ingredients: a vitamin; a mineral; an herb or other botanical;
1137	an amino acid; a dietary substance for use by humans to
1138	supplement the diet by increasing the total dietary intake; or a
1139	concentrate, metabolite, constituent, extract, or combination of
1140	any ingredient described in this subparagraph which is intended
1141	for ingestion in tablet, capsule, powder, softgel, gelcap, or
1142	liquid form or, if not intended for ingestion in such a form, is
1143	not represented as conventional food and is not represented for
1144	use as a sole item of a meal or of the diet; and which is
1145	required to be labeled as a dietary supplement, identifiable by
1146	the "supplemental facts" box found on the label and as required
1147	pursuant to 21 C.F.R. s. 101.36.
1148	(c)  The exemption provided by this subsection does not
1149	apply:
1150	1.  When the food products are sold as meals for
1151	consumption on or off the premises of the dealer.
1152	2.  When the food products are furnished, prepared, or
1153	served for consumption at tables, chairs, or counters or from
1154	trays, glasses, dishes, or other tableware, whether provided by
1155	the dealer or by a person with whom the dealer contracts to
1156	furnish, prepare, or serve food products to others.
1157	3.  When the food products are ordinarily sold for
1158	immediate consumption on the seller's premises or near a
1159	location at which parking facilities are provided primarily for
1160	the use of patrons in consuming the products purchased at the
1161	location, even though such products are sold on a "take out" or
1162	"to go" order and are actually packaged or wrapped and taken
1163	from the premises of the dealer.
1164	4.  To sandwiches sold ready for immediate consumption on
1165	or off the seller's premises.
1166	5.  When the food products are sold ready for immediate
1167	consumption within a place, the entrance to which is subject to
1168	an admission charge.
1169	1.6.  When the food and food ingredients products are sold
1170	as hot prepared food products.
1171	2.7.  To soft drinks, which include, but are not limited
1172	to, any nonalcoholic beverage, any preparation or beverage
1173	commonly referred to as a "soft drink," or any noncarbonated
1174	drink made from milk derivatives or tea, when sold in cans or
1175	similar containers. The term "soft drinks" means nonalcoholic
1176	beverages that contain natural or artificial sweeteners. Soft
1177	drinks do not include beverages that contain milk or milk
1178	products, soy, rice, or similar milk substitutes, or greater
1179	than 50 percent of vegetable or fruit juice by volume.
1180	8.  To ice cream, frozen yogurt, and similar frozen dairy
1181	or nondairy products in cones, small cups, or pints, popsicles,
1182	frozen fruit bars, or other novelty items, whether or not sold
1183	separately.
1184	9.  To food prepared, whether on or off the premises, and
1185	sold for immediate consumption. This does not apply to food
1186	prepared off the premises and sold in the original sealed
1187	container, or the slicing of products into smaller portions.
1188	3.10.  When the food and food ingredients products are sold
1189	through a vending machine, pushcart, motor vehicle, or any other
1190	form of vehicle.
1191	4.11.  To candy and any similar product regarded as candy
1192	or confection, based on its normal use, as indicated on the
1193	label or advertising thereof. The term "candy" means a
1194	preparation of sugar, honey, or other natural or artificial
1195	sweeteners in combination with chocolate, fruits, nuts, or other
1196	ingredients or flavorings in the form of bars, drops, or pieces.
1197	Candy does not include any preparation that contains flour and
1198	requires no refrigeration.
1199	5.  To tobacco.
1200	12.  To bakery products sold by bakeries, pastry shops, or
1201	like establishments that have eating facilities, except when
1202	sold for consumption off the seller's premises.
1203	13.  When food products are served, prepared, or sold in or
1204	by restaurants, lunch counters, cafeterias, hotels, taverns, or
1205	other like places of business.
1206	(d)  As used in this subsection, the term:
1207	1.  "For consumption off the seller's premises" means that
1208	the food or drink is intended by the customer to be consumed at
1209	a place away from the dealer's premises.
1210	2.  "For consumption on the seller's premises" means that
1211	the food or drink sold may be immediately consumed on the
1212	premises where the dealer conducts his or her business. In
1213	determining whether an item of food is sold for immediate
1214	consumption, there shall be considered the customary consumption
1215	practices prevailing at the selling facility.
1216	3.  "Premises" shall be construed broadly, and means, but
1217	is not limited to, the lobby, aisle, or auditorium of a theater;
1218	the seating, aisle, or parking area of an arena, rink, or
1219	stadium; or the parking area of a drive-in or outdoor theater.
1220	The premises of a caterer with respect to catered meals or
1221	beverages shall be the place where such meals or beverages are
1222	served.
1223	1.4.  "Hot Prepared food products" means food sold in a
1224	heated state or heated by the seller; two or more food
1225	ingredients mixed or combined by the seller for sale as a single
1226	item; or food sold with eating utensils provided by the seller,
1227	including plates, knives, forks, spoons, glasses, cups, napkins,
1228	or straws. A plate does not include a container or packaging
1229	used to transport the food. Prepared food does not include food
1230	that is only cut, repackaged, or pasteurized by the seller and
1231	eggs, fish, meat, poultry, and foods containing these raw animal
1232	foods requiring cooking by the consumer as recommended by the
1233	Food and Drug Administration in chapter 3, part 401.11 of its
1234	food code so as to prevent food-borne illnesses. "Prepared food"
1235	for purposes of this subsection includes sandwiches sold for
1236	immediate consumption, and those products, items, or components
1237	which have been prepared for sale in a heated condition and
1238	which are sold at any temperature that is higher than the air
1239	temperature of the room or place where they are sold. "Hot
1240	prepared food products," for the purposes of this subsection,
1241	includes a combination of hot and cold food items or components
1242	where a single price has been established for the combination
1243	and the food products are sold in such combination, such as a
1244	hot meal, a hot specialty dish or serving, or a hot sandwich or
1245	hot pizza, or ice cream cones or sundaes, or food sold in an
1246	unheated state by weight or volume as a single item, including
1247	cold components or side items.
1248	(e)1.  Food or drinks not exempt under paragraphs (a), (b),
1249	(c), and (d) shall be exempt, notwithstanding those paragraphs,
1250	when purchased with food coupons or Special Supplemental Food
1251	Program for Women, Infants, and Children vouchers issued under
1252	authority of federal law.
1253	2.  This paragraph is effective only while federal law
1254	prohibits a state's participation in the federal food coupon
1255	program or Special Supplemental Food Program for Women, Infants,
1256	and Children if there is an official determination that state or
1257	local sales taxes are collected within that state on purchases
1258	of food or drinks with such coupons.
1259	3.  This paragraph shall not apply to any food or drinks on
1260	which federal law shall permit sales taxes without penalty, such
1261	as termination of the state's participation.
1262	(f)  Dietary supplements that are sold as prepared food are
1263	not exempt.
1264	(2)  EXEMPTIONS; MEDICAL.--
1265	(a)  There shall be exempt from the tax imposed by this
1266	chapter:
1267	1.  Any drug;
1268	2.  Durable medical equipment, mobility enhancing
1269	equipment, or prosthetic device any medical products and
1270	supplies or medicine dispensed according to an individual
1271	prescription or prescriptions written by a prescriber authorized
1272	by law to prescribe medicinal drugs;
1273	3.  Hypodermic needles; hypodermic syringes;
1274	4.  Chemical compounds and test kits used for the diagnosis
1275	or treatment of human disease, illness, or injury intended for
1276	one-time use;
1277	5.  Over-the-counter drugs and common household remedies
1278	recommended and generally sold for internal or external use in
1279	the cure, mitigation, treatment, or prevention of illness or
1280	disease in human beings, but not including grooming and hygiene
1281	products;
1282	6.  Antiseptic adhesive strips, gauze, bandages, adhesive
1283	tape;
1284	7.  Hearing aids;
1285	8.  Dental prosthesis; or
1286	9.  Funerals.
1287
1288	Funeral directors shall pay tax on all tangible personal
1289	property used by them in their business cosmetics or toilet
1290	articles, notwithstanding the presence of medicinal ingredients
1291	therein, according to a list prescribed and approved by the
1292	Department of Health, which list shall be certified to the
1293	Department of Revenue from time to time and included in the
1294	rules promulgated by the Department of Revenue. There shall also
1295	be exempt from the tax imposed by this chapter artificial eyes
1296	and limbs; orthopedic shoes; prescription eyeglasses and items
1297	incidental thereto or which become a part thereof; dentures;
1298	hearing aids; crutches; prosthetic and orthopedic appliances;
1299	and funerals. In addition, any items intended for one-time use
1300	which transfer essential optical characteristics to contact
1301	lenses shall be exempt from the tax imposed by this chapter;
1302	however, this exemption shall apply only after $100,000 of the
1303	tax imposed by this chapter on such items has been paid in any
1304	calendar year by a taxpayer who claims the exemption in such
1305	year. Funeral directors shall pay tax on all tangible personal
1306	property used by them in their business.
1307	(b)  For the purposes of this subsection, the term:
1308	1.  "Drug" means a compound, substance, or preparation, and
1309	any component of a compound, substance, or preparation, other
1310	than food and food ingredients, dietary supplements, and
1311	alcoholic beverages, which is:
1312	a.  Recognized in the official United States Pharmacopoeia,
1313	official Homeopathic Pharmacopoeia of the United States, or
1314	official National Formulary, or the supplement to any of them;
1315	b.  Intended for use in the diagnosis, cure, mitigation,
1316	treatment, or prevention of disease; or
1317	c.  Intended to affect the structure or any function of the
1318	body.
1319	2.  "Durable medical equipment" means equipment, including
1320	repair and replacement parts to such equipment, but the term
1321	does not include mobility-enhancing equipment, which can
1322	withstand repeated use, is primarily and customarily used to
1323	serve a medical purpose, generally is not useful to a person in
1324	the absence of illness or injury, and is not worn on or in the
1325	body.
1326	3.  "Mobility-enhancing equipment" means equipment,
1327	including repair and replacement parts to such equipment, but
1328	the term does not include durable medical equipment, which:
1329	a.  Is primarily and customarily used to provide or
1330	increase the ability to move from one place to another and which
1331	is appropriate for use either in a home or a motor vehicle;
1332	b.  Is not generally used by persons with normal mobility;
1333	and
1334	c.  Does not include any motor vehicle or any equipment on
1335	a motor vehicle normally provided by a motor vehicle
1336	manufacturer.
1337	4.  "Prosthetic device" means a replacement, corrective, or
1338	supportive device, including repair or replacement parts to such
1339	equipment, other than a hearing aid or a dental prosthesis, that
1340	is worn on or in the body to:
1341	a.  Artificially replace a missing portion of the body;
1342	b.  Prevent or correct physical deformity or malfunction;
1343	or
1344	c.  Support a weak or deformed portion of the body.
1345	5.  "Grooming and hygiene products" are soaps and cleaning
1346	solutions, shampoo, toothpaste, mouthwash, antiperspirants, and
1347	suntan lotions and screens, regardless of whether the items meet
1348	the definition of over-the-counter drugs.
1349	6.  "Over-the-counter drug" means a drug the packaging for
1350	which contains a label that identifies the product as a drug as
1351	required by 21 C.F.R. s. 201.66. The over-the-counter drug label
1352	includes a "drug facts" panel or a statement of the active
1353	ingredients with a list of those ingredients contained in the
1354	compound, substance, or preparation "Prosthetic and orthopedic
1355	appliances" means any apparatus, instrument, device, or
1356	equipment used to replace or substitute for any missing part of
1357	the body, to alleviate the malfunction of any part of the body,
1358	or to assist any disabled person in leading a normal life by
1359	facilitating such person's mobility. Such apparatus, instrument,
1360	device, or equipment shall be exempted according to an
1361	individual prescription or prescriptions written by a physician
1362	licensed under chapter 458, chapter 459, chapter 460, chapter
1363	461, or chapter 466, or according to a list prescribed and
1364	approved by the Department of Health, which list shall be
1365	certified to the Department of Revenue from time to time and
1366	included in the rules promulgated by the Department of Revenue.
1367	2.  "Cosmetics" means articles intended to be rubbed,
1368	poured, sprinkled, or sprayed on, introduced into, or otherwise
1369	applied to the human body for cleansing, beautifying, promoting
1370	attractiveness, or altering the appearance and also means
1371	articles intended for use as a compound of any such articles,
1372	including, but not limited to, cold creams, suntan lotions,
1373	makeup, and body lotions.
1374	3.  "Toilet articles" means any article advertised or held
1375	out for sale for grooming purposes and those articles that are
1376	customarily used for grooming purposes, regardless of the name
1377	by which they may be known, including, but not limited to, soap,
1378	toothpaste, hair spray, shaving products, colognes, perfumes,
1379	shampoo, deodorant, and mouthwash.
1380	7.4.  "Prescription" means an order, formula, or recipe
1381	issued in any form of oral, written, electronic, or other means
1382	of transmission by a duly licensed practitioner authorized by
1383	chapter 458, chapter 459, chapter 460, chapter 461, or chapter
1384	466. The term also includes an orally transmitted order by the
1385	lawfully designated agent of such practitioner. The term also
1386	includes an order written or transmitted by a practitioner
1387	licensed to practice in a jurisdiction other than this state,
1388	but only if the pharmacist called upon to dispense such order
1389	determines, in the exercise of his or her professional judgment,
1390	that the order is valid and necessary for the treatment of a
1391	chronic or recurrent illness includes any order for drugs or
1392	medicinal supplies written or transmitted by any means of
1393	communication by a duly licensed practitioner authorized by the
1394	laws of the state to prescribe such drugs or medicinal supplies
1395	and intended to be dispensed by a pharmacist. The term also
1396	includes an orally transmitted order by the lawfully designated
1397	agent of such practitioner. The term also includes an order
1398	written or transmitted by a practitioner licensed to practice in
1399	a jurisdiction other than this state, but only if the pharmacist
1400	called upon to dispense such order determines, in the exercise
1401	of his or her professional judgment, that the order is valid and
1402	necessary for the treatment of a chronic or recurrent illness.
1403	The term also includes a pharmacist's order for a product
1404	selected from the formulary created pursuant to s. 465.186. A
1405	prescription may be retained in written form, or the pharmacist
1406	may cause it to be recorded in a data processing system,
1407	provided that such order can be produced in printed form upon
1408	lawful request.
1409	(c)  Chlorine shall not be exempt from the tax imposed by
1410	this chapter when used for the treatment of water in swimming
1411	pools.
1412	(d)  Lithotripters are exempt.
1413	(d)(e)  Human organs are exempt.
1414	(f)  Sales of drugs to or by physicians, dentists,
1415	veterinarians, and hospitals in connection with medical
1416	treatment are exempt.
1417	(g)  Medical products and supplies used in the cure,
1418	mitigation, alleviation, prevention, or treatment of injury,
1419	disease, or incapacity which are temporarily or permanently
1420	incorporated into a patient or client by a practitioner of the
1421	healing arts licensed in the state are exempt.
1422	(h)  The purchase by a veterinarian of commonly recognized
1423	substances possessing curative or remedial properties which are
1424	ordered and dispensed as treatment for a diagnosed health
1425	disorder by or on the prescription of a duly licensed
1426	veterinarian, and which are applied to or consumed by animals
1427	for alleviation of pain or the cure or prevention of sickness,
1428	disease, or suffering are exempt. Also exempt are the purchase
1429	by a veterinarian of antiseptics, absorbent cotton, gauze for
1430	bandages, lotions, vitamins, and worm remedies.
1431	(i)  X-ray opaques, also known as opaque drugs and
1432	radiopaque, such as the various opaque dyes and barium sulphate,
1433	when used in connection with medical X rays for treatment of
1434	bodies of humans and animals, are exempt.
1435	(e)(j)  Parts, special attachments, special lettering, and
1436	other like items that are added to or attached to tangible
1437	personal property so that a handicapped person can use them are
1438	exempt when such items are purchased by a person pursuant to an
1439	individual prescription.
1440	(f)(k)  This subsection shall be strictly construed and
1441	enforced.
1442	(7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
1443	entity by this chapter do not inure to any transaction that is
1444	otherwise taxable under this chapter when payment is made by a
1445	representative or employee of the entity by any means,
1446	including, but not limited to, cash, check, or credit card, even
1447	when that representative or employee is subsequently reimbursed
1448	by the entity. In addition, exemptions provided to any entity by
1449	this subsection do not inure to any transaction that is
1450	otherwise taxable under this chapter unless the entity has
1451	obtained a sales tax exemption certificate from the department
1452	or the entity obtains or provides other documentation as
1453	required by the department. Eligible purchases or leases made
1454	with such a certificate must be in strict compliance with this
1455	subsection and departmental rules, and any person who makes an
1456	exempt purchase with a certificate that is not in strict
1457	compliance with this subsection and the rules is liable for and
1458	shall pay the tax. The department may adopt rules to administer
1459	this subsection.
1460	(t)  Boats temporarily docked in state.--
1461	1.  Notwithstanding the provisions of chapter 328,
1462	pertaining to the registration of vessels, a boat upon which the
1463	state sales or use tax has not been paid is exempt from the use
1464	tax under this chapter if it enters and remains in this state
1465	for a period not to exceed a total of 20 days in any calendar
1466	year calculated from the date of first dockage or slippage at a
1467	facility, registered with the department, that rents dockage or
1468	slippage space in this state. If a boat brought into this state
1469	for use under this paragraph is placed in a facility, registered
1470	with the department, for repairs, alterations, refitting, or
1471	modifications and such repairs, alterations, refitting, or
1472	modifications are supported by written documentation, the 20-day
1473	period shall be tolled during the time the boat is physically in
1474	the care, custody, and control of the repair facility, including
1475	the time spent on sea trials conducted by the facility. The 20-
1476	day time period may be tolled only once within a calendar year
1477	when a boat is placed for the first time that year in the
1478	physical care, custody, and control of a registered repair
1479	facility; however, the owner may request and the department may
1480	grant an additional tolling of the 20-day period for purposes of
1481	repairs that arise from a written guarantee given by the
1482	registered repair facility, which guarantee covers only those
1483	repairs or modifications made during the first tolled period.
1484	Within 72 hours after the date upon which the registered repair
1485	facility took possession of the boat, the facility must have in
1486	its possession, on forms prescribed by the department, an
1487	affidavit which states that the boat is under its care, custody,
1488	and control and that the owner does not use the boat while in
1489	the facility. Upon completion of the repairs, alterations,
1490	refitting, or modifications, the registered repair facility
1491	must, within 72 hours after the date of release, have in its
1492	possession a copy of the release form which shows the date of
1493	release and any other information the department requires. The
1494	repair facility shall maintain a log that documents all
1495	alterations, additions, repairs, and sea trials during the time
1496	the boat is under the care, custody, and control of the
1497	facility. The affidavit shall be maintained by the registered
1498	repair facility as part of its records for as long as required
1499	by s. 213.35. When, within 6 months after the date of its
1500	purchase, a boat is brought into this state under this
1501	paragraph, the 6-month period provided in s. 212.05(1)(a)2. or
1502	s. 212.06(9)(8) shall be tolled.
1503	2.  During the period of repairs, alterations, refitting,
1504	or modifications and during the 20-day period referred to in
1505	subparagraph 1., the boat may be listed for sale, contracted for
1506	sale, or sold exclusively by a broker or dealer registered with
1507	the department without incurring a use tax under this chapter;
1508	however, the sales tax levied under this chapter applies to such
1509	sale.
1510	3.  The mere storage of a boat at a registered repair
1511	facility does not qualify as a tax-exempt use in this state.
1512	4.  As used in this paragraph, "registered repair facility"
1513	means:
1514	a.  A full-service facility that:
1515	(I)  Is located on a navigable body of water;
1516	(II)  Has haulout capability such as a dry dock, travel
1517	lift, railway, or similar equipment to service craft under the
1518	care, custody, and control of the facility;
1519	(III)  Has adequate piers and storage facilities to provide
1520	safe berthing of vessels in its care, custody, and control; and
1521	(IV)  Has necessary shops and equipment to provide repair
1522	or warranty work on vessels under the care, custody, and control
1523	of the facility;
1524	b.  A marina that:
1525	(I)  Is located on a navigable body of water;
1526	(II)  Has adequate piers and storage facilities to provide
1527	safe berthing of vessels in its care, custody, and control; and
1528	(III)  Has necessary shops and equipment to provide repairs
1529	or warranty work on vessels; or
1530	c.  A shoreside facility that:
1531	(I)  Is located on a navigable body of water;
1532	(II)  Has adequate piers and storage facilities to provide
1533	safe berthing of vessels in its care, custody, and control; and
1534	(III)  Has necessary shops and equipment to provide repairs
1535	or warranty work.
1536	Section 8.  Section 212.095, Florida Statutes, is amended
1537	to read:
1538	212.095  Refunds.--
1539	(1)  No exemption granted on a refund basis pursuant to
1540	this chapter is authorized except as provided in this section.
1541	(2)(a)  No person may secure a refund under this chapter
1542	unless such person is the holder of an unrevoked refund permit
1543	issued by the department before the purchase for which a refund
1544	is sought, which permit shall be numbered and issued annually.
1545	(b)  To procure a permit, a person must file with the
1546	department an application, on forms furnished by the department,
1547	stating that he or she is entitled to a refund according to the
1548	provisions of this chapter and that he or she intends to file an
1549	application for refund for the current calendar year, and must
1550	furnish the department such other information as the department
1551	requests.
1552	(c)  No person may in any event be allowed a refund unless
1553	he or she has filed the application provided for in paragraph
1554	(b) with the department. A permit shall be effective on the date
1555	issued by the department.
1556	(d)  If an applicant for a refund permit has violated any
1557	provision of this section or any regulation pursuant hereto, or
1558	has been convicted of bribery, theft, or false swearing within
1559	the period of 5 years preceding the application, or if the
1560	department has evidence of the financial irresponsibility of the
1561	applicant, the department may require the applicant to execute a
1562	corporate surety bond of $1,000 to be approved by the
1563	department, conditioned upon the payment of all taxes,
1564	penalties, and fines for which such applicant may become liable
1565	under this chapter.
1566	(2)(3)(a)  When a sale is made to a person who claims to be
1567	entitled to a refund under this section, the seller shall make
1568	out a sales invoice, which shall contain the following
1569	information:
1570	1.  The name and business address of the purchaser.
1571	2.  A description of the item or services sold.
1572	3.  The date on which the purchase was made.
1573	4.  The price and amount of tax paid for the item or
1574	services.
1575	5.  The name and place of business of the seller at which
1576	the sale was made.
1577	6.  The refund permit number of the purchaser.
1578	(b)  The sales invoice shall be retained by the purchaser
1579	for attachment to his or her application for a refund, as a part
1580	thereof. No refund will be allowed unless the seller has
1581	executed such an invoice and unless proof of payment of the
1582	taxes for which the refund is claimed is attached. The
1583	department may refuse to grant a refund if the invoice is
1584	incomplete and fails to contain the full information required in
1585	this subsection.
1586	(c)  No person may execute a sales invoice, as described in
1587	paragraph (a), except a dealer duly registered pursuant to this
1588	chapter, or an authorized agent thereof.
1589	(3)(4)(a)  No refund may be authorized unless a sworn
1590	application therefor containing the information required in this
1591	section is filed with the department not later than 30 days
1592	immediately following the quarter for which the refund is
1593	claimed. When a claim is filed after such 30 days and a
1594	justified excuse for late filing is presented to the department
1595	and the last preceding claim was filed on time, such late filing
1596	may be accepted through 60 days following the quarter. No refund
1597	will be authorized unless the amount due is for $5 or more in
1598	any quarter and unless application is made upon forms prescribed
1599	by the department.
1600	(b)  Claims shall be filed and paid for each calendar
1601	quarter. The department shall deduct a fee of $2 for each claim,
1602	which fee shall be deposited in the General Revenue Fund.
1603	(c)  Refund application forms shall include at a minimum
1604	the following information:
1605	1.  The name and address of the person claiming the refund.
1606	2.  The refund permit number of such person.
1607	2.3.  The location at which the items or services for which
1608	a refund is claimed are used.
1609	3.4.  A description of each such item or service and the
1610	purpose for which such item or service was acquired.
1611	4.5.  Copies of the sales invoices of items or services for
1612	which a refund is being claimed.
1613	(4)(5)  The right to receive any refund under the
1614	provisions of this section is not assignable, except to the
1615	executor or administrator, or to the receiver, trustee in
1616	bankruptcy, or assignee in an insolvency proceeding, of the
1617	person entitled to the refund.
1618	(5)(6)(a)  Each registered dealer shall, in accordance with
1619	the requirements of the department, keep at his or her principal
1620	place of business in this state or at the location where the
1621	sale is made a complete record or duplicate sales tickets of all
1622	items or services sold by the registered dealer for which a
1623	refund provided in this section may be claimed, which records
1624	shall contain the information required in paragraph (2)(3)(a).
1625	(b)  Every person applying for to whom a refund permit has
1626	been issued under this section shall, in accordance with the
1627	requirements of the department, keep at his or her residence or
1628	principal place of business in this state a record of each
1629	purchase for which a refund is claimed, including the
1630	information required in paragraph (2)(3)(a).
1631	(c)  The records required to be kept under this subsection
1632	shall at all reasonable hours be subject to audit or inspection
1633	by the department or by any person duly authorized by it. Such
1634	records shall be preserved and may not be destroyed until 3
1635	years after the date the item to which they relate was sold or
1636	purchased.
1637	(6)(7)  Agents of the department are authorized to go upon
1638	the premises of any refund permitholder, or duly authorized
1639	agent thereof, to make an inspection to ascertain any matter
1640	connected with the operation of this section or the enforcement
1641	hereof. However, no agent may enter the dwelling of any person
1642	without the consent of the occupant or authority from a court of
1643	competent jurisdiction.
1644	(7)(8)  If any taxes are refunded erroneously, the
1645	department shall advise the payee by registered mail of the
1646	erroneous refund. If the payee fails to reimburse the state
1647	within 15 days after the receipt of the letter, an action may be
1648	instituted by the department against such payee in the circuit
1649	court, and the department shall recover from the payee the
1650	amount of the erroneous refund plus a penalty of 25 percent.
1651	(8)(9)  No person shall:
1652	(a)  Knowingly make a false or fraudulent statement in an
1653	application for a refund permit or in an application for a
1654	refund of any taxes under this section;
1655	(b)  Fraudulently obtain a refund of such taxes; or
1656	(c)  Knowingly aid or assist in making any such false or
1657	fraudulent statement or claim.
1658	(10)  The refund permit of any person who violates any
1659	provision of this section shall be revoked by the department and
1660	may not be reissued until 2 years have elapsed from the date of
1661	such revocation. The refund permit of any person who violates
1662	any other provision of this chapter may be suspended by the
1663	department for any period, in its discretion, not exceeding 6
1664	months.
1665	(9)(11)  Refund permits and refund application forms shall
1666	include instructions for dealers and purchasers as to the
1667	relevant requirements of this section.
1668	Section 9.  Section 212.094, Florida Statutes, is created
1669	to read:
1670	212.094  Purchaser requests for refunds from dealers.--
1671	(1)  If a purchaser seeks a refund of or credit from a
1672	dealer for a tax collected under this chapter by that dealer,
1673	the purchaser must submit a written request for the refund or
1674	credit to the dealer in accordance with this section. The
1675	request must contain all the information necessary for the
1676	dealer to determine the validity of the purchaser's request.
1677	(2)  The purchaser may not take any other action against
1678	the dealer with respect to the requested refund or credit until
1679	the dealer has had 60 days following receipt of a completed
1680	request in which to respond.
1681	(3)  Nothing in this section is intended to change the law
1682	regarding standing to claim a refund.
1683	Section 10.  Subsection (3) of section 212.17, Florida
1684	Statutes, is amended to read:
1685	212.17  Credits for returned goods, rentals, or admissions;
1686	goods acquired for dealer's own use and subsequently resold;
1687	additional powers of department.--
1688	(3)  A dealer who has paid the tax imposed by this chapter
1689	on tangible personal property or services may take a credit or
1690	obtain a refund for any tax paid by the dealer on the unpaid
1691	balance due on worthless accounts within 12 months following the
1692	month in which the bad debt has been charged off for federal
1693	income tax purposes. A dealer who has paid the tax imposed by
1694	this chapter on tangible personal property or services and who
1695	is not required to file federal income tax returns may take a
1696	credit or obtain a refund for any tax paid by the dealer on the
1697	unpaid balance due on worthless accounts within 12 months
1698	following the month in which the bad debt is written off as
1699	uncollectible in the dealer's books and records and would be
1700	eligible for a bad debt deduction for federal income tax
1701	purposes if the dealer were required to file a federal income
1702	tax return.
1703	(a)  A dealer that is taking a credit or obtaining a refund
1704	on worthless accounts shall base the bad debt recovery
1705	calculation in accordance with 26 U.S.C. s. 166.
1706	(b)  Notwithstanding paragraph (a), the amount calculated
1707	pursuant to 26 U.S.C. s. 166 shall be adjusted to exclude
1708	financing charges or interest; sales or use taxes charged on the
1709	purchase price; uncollectible amounts on property that remain in
1710	the possession of the seller until the full purchase price is
1711	paid; expenses incurred in attempting to collect any debt; and
1712	repossessed property.
1713	(c)  When the amount of bad debt exceeds the amount of
1714	taxable sales for the period during which the bad debt is
1715	written off, a refund claim may be filed in accordance with the
1716	timing provisions of s. 215.26(2), except that the statute of
1717	limitations for filing the refund claim shall be measured from
1718	the due date of the return on which the bad debt could first be
1719	claimed.
1720	(d)  If any accounts so charged off for which a credit or
1721	refund has been obtained are thereafter in whole or in part paid
1722	to the dealer, the amount so paid shall be included in the first
1723	return filed after such collection and the tax paid accordingly.
1724	(e)  Where filing responsibilities have been assumed by a
1725	certified service provider, the certified service provider shall
1726	claim, on behalf of the seller, any bad debt allowance provided
1727	by this section. The certified service provider must credit or
1728	refund to the seller the full amount of any bad debt allowance
1729	or refund received.
1730	(f)  For the purposes of reporting a payment received on a
1731	previously claimed bad debt, any payments made on a debt or
1732	account are applied first proportionally to the taxable price of
1733	the property or service and the sales tax thereon, and secondly
1734	to interest, service charges, and any other charges.
1735	(g)  In situations in which the books and records of the
1736	party claiming the bad debt allowance support an allocation of
1737	the bad debts among states that are members of the Streamlined
1738	Sales and Use Tax Agreement, the allocation is permitted among
1739	those states.
1740	Section 11.  Section 213.052, Florida Statutes, is created
1741	to read:
1742	213.052  Notice of state rate changes.--
1743	(1)  A sales or use tax rate change imposed under chapter
1744	212 is effective on January 1, April 1, July 1, or October 1.
1745	The Department of Revenue shall provide notice of such rate
1746	change to all affected sellers 90 days before the effective date
1747	of the rate change.
1748	(2)  Failure of a seller to receive notice does not relieve
1749	the seller of its obligation to collect sales or use tax.
1750	Section 12.  Section 213.0521, Florida Statutes, is created
1751	to read:
1752	213.0521  Effective date of state rate changes.--The
1753	effective date for services covering a period starting before
1754	and ending after the statutory effective date shall be as
1755	follows:
1756	(1)  For a rate increase, the new rate shall apply to the
1757	first billing period starting on or after the effective date.
1758	(2)  For a rate decrease, the new rate shall apply to bills
1759	rendered on or after the effective date.
1760	Section 13.  Subsection (11) is added to section 213.21,
1761	Florida Statutes, to read:
1762	213.21  Informal conferences; compromises.--
1763	(11)  Amnesty shall be provided for uncollected or unpaid
1764	sales or use tax to a seller who registers to pay or to collect
1765	and remit applicable sales or use tax in accordance with the
1766	terms of the Streamlined Sales and Use Tax Agreement authorized
1767	under s. 213.256, if the seller was not registered with the
1768	Department of Revenue in the 12-month period preceding the
1769	effective date of participation in the agreement by this state.
1770	(a)  The amnesty precludes assessment for uncollected or
1771	unpaid sales or use tax together with penalty or interest for
1772	sales made during the period the seller was not registered with
1773	the Department of Revenue, if registration occurs within 12
1774	months after the effective date of this state's participation in
1775	the agreement.
1776	(b)  The amnesty is not available to a seller with respect
1777	to any matter or matters for which the seller received notice of
1778	the commencement of an audit and which audit is not yet finally
1779	resolved, including any related administrative and judicial
1780	processes.
1781	(c)  The amnesty is not available for sales or use taxes
1782	already paid or remitted to the state or to taxes collected by
1783	the seller.
1784	(d)  The amnesty is fully effective, absent the seller's
1785	fraud or intentional misrepresentation of a material fact, as
1786	long as the seller continues registration and continues payment
1787	or collection and remittance of applicable sales or use taxes
1788	for at least 36 months.
1789	(e)  The amnesty is applicable only to sales or use taxes
1790	due from a seller in its capacity as a seller and not to sales
1791	or use taxes due from a seller in its capacity as a buyer.
1792	Section 14.  Subsections (1) and (7) of section 213.256,
1793	Florida Statutes, are amended, present subsections (8), (9), and
1794	(10) of said section are renumbered as subsections (11), (12),
1795	and (13), respectively, and new subsections (8), (9), (10), and
1796	(14) are added to said section, to read:
1797	213.256  Simplified Sales and Use Tax Administration Act.--
1798	(1)  As used in this section and s. 213.2567, the term:
1799	(a)  "Agent" means a person appointed by a seller to
1800	represent the seller before the member states.
1801	(b)  "Agreement" means the Streamlined Sales and Use Tax
1802	Agreement as amended and adopted on November 12, 2002 January
1803	27, 2001, by the Executive Committee of the National Conference
1804	of State Legislatures.
1805	(c)  "Certified automated system" means software certified
1806	jointly by the states that are signatories to the agreement to
1807	calculate the tax imposed by each jurisdiction on a transaction,
1808	determine the amount of tax to remit to the appropriate state,
1809	and maintain a record of the transaction.
1810	(d)  "Certified service provider" means an agent certified
1811	under jointly by the states that are signatories to the
1812	agreement to perform all of the seller's sales tax functions
1813	other than the seller's obligation to remit tax on its own
1814	purchases.
1815	(e)(a)  "Department" means the Department of Revenue.
1816	(f)  "Model 1 seller" means a seller that has selected a
1817	certified service provider as its agent to perform all the
1818	seller's sales and use tax functions other than the seller's
1819	obligation to remit tax on its own purchases.
1820	(g)  "Model 2 seller" means a seller that has selected a
1821	certified automated system to perform part of its sales and use
1822	tax functions, but retains responsibility for remitting the tax.
1823	(h)  "Model 3 seller" means a seller that has sales in at
1824	least five member states, has total annual sales revenue of at
1825	least $500 million, has a proprietary system that calculates the
1826	amount of tax due each jurisdiction, and has entered into a
1827	performance agreement with the member states which establishes a
1828	tax performance standard for the seller. As used in this
1829	subsection, a seller includes an affiliated group of sellers
1830	using the same proprietary system.
1831	(i)(e)  "Person" means an individual, trust, estate,
1832	fiduciary, partnership, limited liability company, limited
1833	liability partnership, corporation, or any other legal entity.
1834	(j)  "Registered under this agreement" means registration
1835	by a seller with the member states under the central
1836	registration system.
1837	(k)(f)  "Sales tax" means the tax levied under chapter 212.
1838	(l)(g)  "Seller" means any person making sales, leases, or
1839	rentals of personal property or services.
1840	(m)(h)  "State" means any state of the United States and
1841	the District of Columbia.
1842	(n)(i)  "Use tax" means the tax levied under chapter 212.
1843	(7)(a)  The agreement authorized by this act binds and
1844	inures only to the benefit of this state and the other member
1845	states. No person, other than a member state, is an intended
1846	beneficiary of the agreement. Any benefit to a person other than
1847	a state is established by the laws of this state and of other
1848	member states and not by the terms of the agreement.
1849	(b)  Consistent with paragraph (a), no person has any cause
1850	of action or defense under the agreement or by virtue of this
1851	state's approval of the agreement. No person may challenge, in
1852	any action brought under any provision of law, any action or
1853	inaction by any department, agency, or other instrumentality of
1854	this state, or of any political subdivision of this state, on
1855	the ground that the action or inaction is inconsistent with the
1856	agreement.
1857	(c)  No law of this state, or the application thereof, may
1858	be declared invalid as to any person or circumstance on the
1859	ground that the provision or application is inconsistent with
1860	the agreement.
1861	(d)  The determinations pertaining to the agreement
1862	authorized by this act which are made by the member states are
1863	final when rendered and are not subject to any protest, appeal,
1864	or review.
1865	(8)  Authority to administer the agreement authorized under
1866	this act shall rest with the governing board comprised of
1867	representatives of each member state. Each member state may
1868	appoint up to four representatives to the governing board. This
1869	state shall be represented by three delegates, one appointed by
1870	the President of the Senate, one appointed by the Speaker of the
1871	House of Representatives, and the executive director of the
1872	department or his or her designee.
1873	(9)  With respect to each member state, the agreement
1874	authorized by this act shall continue in full force and effect
1875	until a member state withdraws its membership or is expelled. A
1876	member state's withdrawal or expulsion is not effective until
1877	the first day of a calendar quarter after a minimum of 60 days'
1878	notice. A member state shall submit notice of its intent to
1879	withdraw from the agreement to the governing board and the chief
1880	executive of each member state's tax agency. The member state
1881	shall provide public notice of its intent to withdraw and post
1882	its notice of intent to withdraw from the agreement to the
1883	governing board and the chief executive of each member state's
1884	tax agency. The member state shall provide public notice of its
1885	intent to withdraw and post its notice of intent to withdraw on
1886	its website. The withdrawal by or expulsion of a state does not
1887	affect the validity of the agreement among other member states.
1888	A state that withdraws or is expelled from the agreement remains
1889	liable for its share of any financial or contractual obligations
1890	that were incurred by the governing board before the effective
1891	date of that state's withdrawal or expulsion. The appropriate
1892	share of any financial or contractual obligation shall be
1893	determined by the state and the governing board in good faith
1894	based on the relative benefits received and burdens incurred by
1895	the parties.
1896	(10)  A member state that is found to be out of compliance
1897	with the agreement authorized by this act may be imposed with
1898	sanctions, which include expulsion or other penalties as
1899	determined by the governing board.
1900	(14)  Each member state shall annually recertify that such
1901	state is in compliance with the agreement authorized under this
1902	act. Each member state shall make a recertification to the
1903	governing board on or before August 1 of each year after the
1904	year of the state's entry. In its annual recertification, the
1905	state shall include any changes in its statutes, rules or
1906	regulations, or other authorities that could affect its
1907	compliance with the terms of the agreement. The recertification
1908	shall be signed by the executive director of the department. A
1909	member state that cannot recertify its compliance with the
1910	agreement shall submit a statement of noncompliance to the
1911	governing board. The statement of noncompliance shall include
1912	any action or decision that takes such state out of compliance
1913	with the agreement and the steps it will take to return to
1914	compliance. Each member state shall post its annual
1915	recertification or statement of noncompliance on that state's
1916	website.
1917	Section 15.  Section 213.2567, Florida Statutes, is created
1918	to read:
1919	213.2567  Simplified sales and use tax registration,
1920	certification, liability, audit.--
1921	(1)  A seller that registers pursuant to the agreement
1922	agrees to collect and remit sales and use taxes for all taxable
1923	sales into the member states, including member states joining
1924	after the seller's registration. Withdrawal or revocation of a
1925	member state shall not relieve a seller of its responsibility to
1926	remit taxes previously or subsequently collected on behalf of
1927	the state.
1928	(a)  When registering, the seller may select a model 1,
1929	model 2, or model 3 method of remittance or other method allowed
1930	by state law to remit the taxes collected.
1931	(b)  A seller may be registered by an agent. Such
1932	appointment shall be in writing and submitted to a member state.
1933	(2)(a)  A certified service provider is the agent of a
1934	model 1 seller with whom the certified service provider has
1935	contracted for the collection and remittance of sales and use
1936	taxes. As the model 1 seller's agent, the certified service
1937	provider is liable for sales and use tax due each member state
1938	on all sales transactions it processes for the model 1 seller
1939	except as set out in paragraph (b).
1940	(b)  A model 1 seller is not liable to the state for sales
1941	or use tax due on transactions processed by the certified
1942	service provider unless the model 1 seller has misrepresented
1943	the type of items it sells or has committed fraud. In the
1944	absence of probable cause to believe that the model 1 seller has
1945	committed fraud or made a material misrepresentation, the model
1946	1 seller is not subject to audit on the transactions processed
1947	by the certified service provider. A model 1 seller is subject
1948	to audit for transactions that have not been processed by the
1949	certified service provider. The member states acting jointly may
1950	perform a system check of the model 1 seller and review the
1951	model 1 seller's procedures to determine if the certified
1952	service provider's system is functioning properly and to
1953	determine the extent to which the model 1 seller's transactions
1954	are being processed by the certified service provider.
1955	(3)  A person that provides a certified automated system is
1956	responsible for the proper functioning of that system and is
1957	liable to the state for underpayments of tax attributable to
1958	errors in the functioning of the certified automated system. A
1959	model 2 seller that uses a certified automated system remains
1960	responsible and is liable to the state for reporting and
1961	remitting tax.
1962	(4)  A model 3 seller is liable for the failure of the
1963	proprietary system to meet the performance standard.
1964	(5)  The governing board may certify a person as a
1965	certified service provider if the person meets all of the
1966	following requirements:
1967	(a)  The person uses a certified automated system.
1968	(b)  The person integrates its certified automated system
1969	with the system of a seller for whom the person collects tax so
1970	that the tax due on a sale is determined at the time of the
1971	sale.
1972	(c)  The person agrees to remit the taxes it collects at
1973	the time and in the manner specified by the member states.
1974	(d)  The person agrees to file returns on behalf of the
1975	sellers for whom it collects tax.
1976	(e)  The person agrees to protect the privacy of tax
1977	information it obtains in accordance with s. 213.053.
1978	(f)  The person enters into a contract with the member
1979	states and agrees to comply with the terms of the contract.
1980	(6)  The governing board may certify a software program as
1981	a certified automated system if the governing board determines
1982	that the program meets all of the following requirements:
1983	(a)  The program determines the applicable state and local
1984	sales and use tax rate for a transaction in accordance with s.
1985	212.06(3) and (4).
1986	(b)  The program determines whether or not an item is
1987	exempt from tax.
1988	(c)  The program determines the amount of tax to be
1989	remitted for each taxpayer for a reporting period.
1990	(d)  The program can generate reports and returns as
1991	required by the governing board.
1992	(e)  The program meets any other requirement set by the
1993	governing board.
1994	(7)  The governing board may establish one or more sales
1995	tax performance standards for model 3 sellers that meet the
1996	eligibility criteria set by the governing board and that
1997	developed a proprietary system to determine the amount of sales
1998	and use tax due on transactions.
1999	(8)  Disclosure of information necessary under this section
2000	must be pursuant to a written agreement between the executive
2001	director of the department or his or her designee and the
2002	certified service provider. The certified service provider is
2003	bound by the same requirements of confidentiality as the
2004	department. Breach of confidentiality is a misdemeanor of the
2005	first degree, punishable as provided in s. 775.082 or s.
2006	775.083.
2007	Section 16.  Paragraph (c) of subsection (2) and paragraph
2008	(c) of subsection (3) of section 212.055, Florida Statutes, are
2009	amended to read:
2010	212.055  Discretionary sales surtaxes; legislative intent;
2011	authorization and use of proceeds.--It is the legislative intent
2012	that any authorization for imposition of a discretionary sales
2013	surtax shall be published in the Florida Statutes as a
2014	subsection of this section, irrespective of the duration of the
2015	levy. Each enactment shall specify the types of counties
2016	authorized to levy; the rate or rates which may be imposed; the
2017	maximum length of time the surtax may be imposed, if any; the
2018	procedure which must be followed to secure voter approval, if
2019	required; the purpose for which the proceeds may be expended;
2020	and such other requirements as the Legislature may provide.
2021	Taxable transactions and administrative procedures shall be as
2022	provided in s. 212.054.
2023	(2)  LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.--
2024	(c)  Pursuant to s. 212.054(5)(4), the proceeds of the
2025	surtax levied under this subsection shall be distributed to the
2026	county and the municipalities within such county in which the
2027	surtax was collected, according to:
2028	1.  An interlocal agreement between the county governing
2029	authority and the governing bodies of the municipalities
2030	representing a majority of the county's municipal population,
2031	which agreement may include a school district with the consent
2032	of the county governing authority and the governing bodies of
2033	the municipalities representing a majority of the county's
2034	municipal population; or
2035	2.  If there is no interlocal agreement, according to the
2036	formula provided in s. 218.62.
2037
2038	Any change in the distribution formula must take effect on the
2039	first day of any month that begins at least 60 days after
2040	written notification of that change has been made to the
2041	department.
2042	(3)  SMALL COUNTY SURTAX.--
2043	(c)  Pursuant to s. 212.054(5)(4), the proceeds of the
2044	surtax levied under this subsection shall be distributed to the
2045	county and the municipalities within the county in which the
2046	surtax was collected, according to:
2047	1.  An interlocal agreement between the county governing
2048	authority and the governing bodies of the municipalities
2049	representing a majority of the county's municipal population,
2050	which agreement may include a school district with the consent
2051	of the county governing authority and the governing bodies of
2052	the municipalities representing a majority of the county's
2053	municipal population; or
2054	2.  If there is no interlocal agreement, according to the
2055	formula provided in s. 218.62.
2056
2057	Any change in the distribution formula shall take effect on the
2058	first day of any month that begins at least 60 days after
2059	written notification of that change has been made to the
2060	department.
2061	Section 17.  Paragraph (c) of subsection (1) of section
2062	212.07, Florida Statutes, is amended to read:
2063	212.07  Sales, storage, use tax; tax added to purchase
2064	price; dealer not to absorb; liability of purchasers who cannot
2065	prove payment of the tax; penalties; general exemptions.--
2066	(1)
2067	(c)  Unless the purchaser of tangible personal property
2068	that is incorporated into tangible personal property
2069	manufactured, produced, compounded, processed, or fabricated for
2070	one's own use and subject to the tax imposed under s.
2071	212.06(1)(b) or is purchased for export under s.
2072	212.06(6)(5)(a)1. extends a certificate in compliance with the
2073	rules of the department, the dealer shall himself or herself be
2074	liable for and pay the tax.
2075	Section 18.  Subsection (1) of section 212.15, Florida
2076	Statutes, is amended to read:
2077	212.15  Taxes declared state funds; penalties for failure
2078	to remit taxes; due and delinquent dates; judicial review.--
2079	(1)  The taxes imposed by this chapter shall, except as
2080	provided in s. 212.06(6)(5)(a)2.e., become state funds at the
2081	moment of collection and shall for each month be due to the
2082	department on the first day of the succeeding month and be
2083	delinquent on the 21st day of such month. All returns postmarked
2084	after the 20th day of such month are delinquent.
2085	Section 19.  Subsection (6) of section 212.183, Florida
2086	Statutes, is amended to read:
2087	212.183  Rules for self-accrual of sales tax.--The
2088	Department of Revenue is authorized to provide by rule for
2089	self-accrual of the sales tax under one or more of the following
2090	circumstances:
2091	(6)  When the purchaser makes purchases of promotional
2092	materials as defined in s. 212.06(12)(11) and at the time of
2093	purchase, the purchaser does not know whether the materials will
2094	be exported outside this state.
2095	Section 20.  It is the intent of the Legislature to further
2096	amend chapter 212, Florida Statutes, to make the changes
2097	necessary to be in compliance with the provisions of the
2098	Streamlined Sales and Use Tax Agreement effective as of December
2099	31, 2005, and to address the prohibition on multiple state rates
2100	in a revenue-neutral manner.
2101	Section 21.  The executive director of the Department of
2102	Revenue is authorized, and all conditions are deemed met, to
2103	adopt emergency rules, under ss. 120.536(1) and 120.54(4),
2104	Florida Statutes, to implement this act. Notwithstanding any
2105	other provision of law, such emergency rules shall remain
2106	effective for 6 months after the date of adoption and may be
2107	renewed during the pendency of procedures to adopt rules
2108	addressing the subject of the emergency rules.
2109	Section 22.  Beginning with the 2005-2006 fiscal year, the
2110	Revenue Estimating Conference shall determine each year the net
2111	increase in sales and use taxes received by the state as a
2112	result of its participation in the Streamlined Sales and Use Tax
2113	Agreement. The net increase determined by the Revenue Estimating
2114	Conference shall be transferred to the Working Capital Fund. The
2115	amounts transferred to the Working Capital Fund pursuant to this
2116	section may be used by the Legislature to make appropriations
2117	only in a year where the growth in the General Revenue Fund
2118	receipts over the prior year is less than 2 percent. At such
2119	time as the Revenue Estimating Conference determines that the
2120	annual net increase in recurring revenue exceeds an amount equal
2121	to the tax revenues that would be received by the state from a
2122	0.25 percent sales and use tax rate, the Legislature shall
2123	reduce the then existing sales tax rate by 0.25 percent and the
2124	Legislature may appropriate the recurring revenues. Subsequent
2125	to such reduction, additional revenue increases attributable to
2126	the Streamlined Sales and Use Tax shall be transferred to the
2127	Working Capital Fund, to be appropriated as provided in this
2128	section, until such time as the Revenue Estimating Conference
2129	determines that the annual net increase in recurring revenue
2130	again exceeds an amount equal to the tax revenues that would be
2131	received by the state from a 0.25 percent sales and use tax
2132	rate, at which time the Legislature shall again reduce the sale
2133	and use tax rate by 0.25 percent. Such reductions shall continue
2134	until the earlier of the sales and use tax rate is reduced by 1
2135	percent or until 3 years after the first 0.25 percent reduction.
2136	Section 23.  This act shall take effect January 1, 2006.

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