Senate Bill sb1646c1

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    Florida Senate - 2006                           CS for SB 1646

    By the Committee on Agriculture; and Senator Atwater





    575-1810-06

  1                      A bill to be entitled

  2         An act relating to agricultural usage sales and

  3         use tax exemptions; amending s. 212.0501, F.S.;

  4         excluding from application of the sales and use

  5         tax diesel fuel used in certain farming

  6         vehicles or for certain farming purposes;

  7         amending s. 212.08, F.S.; exempting from the

  8         sales and use tax electricity used for

  9         specified agricultural purposes; providing

10         application; providing a conclusive presumption

11         of taxable use under certain circumstances;

12         providing an effective date.

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14  Be It Enacted by the Legislature of the State of Florida:

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16         Section 1.  Subsection (3) of section 212.0501, Florida

17  Statutes, is amended to read:

18         212.0501  Tax on diesel fuel for business purposes;

19  purchase, storage, and use.--

20         (3)  For purposes of this section, "consumption, use,

21  or storage by a trade or business" does not include those uses

22  of diesel fuel specifically exempt on account of residential

23  purposes, or in any tractor, vehicle, or other equipment used

24  exclusively on a farm or for processing farm products on the

25  farm, no part of which diesel fuel is used in any licensed

26  motor vehicle on the public highways of this state on account

27  of agricultural purposes as defined in s. 212.08(5), or the

28  purchase or storage of diesel fuel held for resale.

29         Section 2.  Paragraph (e) of subsection (5) of section

30  212.08, Florida Statutes, is amended to read:

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    Florida Senate - 2006                           CS for SB 1646
    575-1810-06




 1         212.08  Sales, rental, use, consumption, distribution,

 2  and storage tax; specified exemptions.--The sale at retail,

 3  the rental, the use, the consumption, the distribution, and

 4  the storage to be used or consumed in this state of the

 5  following are hereby specifically exempt from the tax imposed

 6  by this chapter.

 7         (5)  EXEMPTIONS; ACCOUNT OF USE.--

 8         (e)1.  Gas used for certain agricultural

 9  purposes.--Butane gas, propane gas, natural gas, and all other

10  forms of liquefied petroleum gases are exempt from the tax

11  imposed by this chapter if used in any tractor, vehicle, or

12  other farm equipment which is used exclusively on a farm or

13  for processing farm products on the farm and no part of which

14  gas is used in any vehicle or equipment driven or operated on

15  the public highways of this state. This restriction does not

16  apply to the movement of farm vehicles or farm equipment

17  between farms. The transporting of bees by water and the

18  operating of equipment used in the apiary of a beekeeper is

19  also deemed an exempt use.

20         2.  Electricity used for certain agricultural

21  purposes.--Electricity used directly and exclusively for

22  production or processing of agricultural products on the farm

23  is exempt from the tax imposed by this chapter. This exemption

24  applies only if the electricity used for the exempt purposes

25  is separately metered. If the electricity is not separately

26  metered, it is conclusively presumed that some portion of the

27  electricity is used for a nonexempt purpose, and all of the

28  electricity used for such purposes is taxable.

29         Section 3.  This act shall take effect July 1, 2006.

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    Florida Senate - 2006                           CS for SB 1646
    575-1810-06




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1646

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 4  Clarifies that the electricity must be used directly and
    exclusively in agricultural production or processing in order
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