Senate Bill sb2550

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    Florida Senate - 2006                                  SB 2550

    By Senator Posey





    24-997A-06

  1                      A bill to be entitled

  2         An act relating to the tax on sales, use, and

  3         other transactions; creating the "Common Sense

  4         Tax Reform Act of 2006"; amending s. 212.08,

  5         F.S.; providing an exemption from the tax for

  6         alcoholic beverages and malt beverages sold by

  7         the drink for consumption on the vendor's

  8         licensed premises; deleting ostriches from the

  9         list of animals for which feed is specifically

10         exempted; repealing s. 212.031(9), F.S.,

11         relating to the exemption from the tax on

12         rental or license fees for the use of real

13         property which applies to charges for the

14         rental, lease, sublease, or license for the use

15         of a skybox, luxury box, or other box seats

16         during a high school or college football game;

17         providing that the repeal is inapplicable to

18         contracts entered into before a specified date;

19         providing that the exempt status of charges

20         imposed under any such contract ends after a

21         specified date; providing an effective date.

22  

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

24  

25         Section 1.  This act may be cited as the "Common Sense

26  Tax Reform Act of 2006."

27         Section 2.  Subsection (4) and paragraph (d) of

28  subsection (7) of section 212.08, Florida Statutes, are

29  amended to read:

30         212.08  Sales, rental, use, consumption, distribution,

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

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    Florida Senate - 2006                                  SB 2550
    24-997A-06




 1  the rental, the use, the consumption, the distribution, and

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

 3  following are hereby specifically exempt from the tax imposed

 4  by this chapter.

 5         (4)  EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES,

 6  ETC.--

 7         (a)  Also exempt are:

 8         1.  Water delivered to the purchaser through pipes or

 9  conduits or delivered for irrigation purposes. The sale of

10  drinking water in bottles, cans, or other containers,

11  including water that contains minerals or carbonation in its

12  natural state or water to which minerals have been added at a

13  water treatment facility regulated by the Department of

14  Environmental Protection or the Department of Health, is

15  exempt. This exemption does not apply to the sale of drinking

16  water in bottles, cans, or other containers if carbonation or

17  flavorings, except those added at a water treatment facility,

18  have been added. Water that has been enhanced by the addition

19  of minerals and that does not contain any added carbonation or

20  flavorings is also exempt.

21         2.  All fuels used by a public or private utility,

22  including any municipal corporation or rural electric

23  cooperative association, in the generation of electric power

24  or energy for sale.  Fuel other than motor fuel and diesel

25  fuel is taxable as provided in this chapter with the exception

26  of fuel expressly exempt herein.  Motor fuels and diesel fuels

27  are taxable as provided in chapter 206, with the exception of

28  those motor fuels and diesel fuels used by railroad

29  locomotives or vessels to transport persons or property in

30  interstate or foreign commerce, which are taxable under this

31  chapter only to the extent provided herein.  The basis of the

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    Florida Senate - 2006                                  SB 2550
    24-997A-06




 1  tax shall be the ratio of intrastate mileage to interstate or

 2  foreign mileage traveled by the carrier's railroad locomotives

 3  or vessels that were used in interstate or foreign commerce

 4  and that had at least some Florida mileage during the previous

 5  fiscal year of the carrier, such ratio to be determined at the

 6  close of the fiscal year of the carrier. However, during the

 7  fiscal year in which the carrier begins its initial operations

 8  in this state, the carrier's mileage apportionment factor may

 9  be determined on the basis of an estimated ratio of

10  anticipated miles in this state to anticipated total miles for

11  that year, and subsequently, additional tax shall be paid on

12  the motor fuel and diesel fuels, or a refund may be applied

13  for, on the basis of the actual ratio of the carrier's

14  railroad locomotives' or vessels' miles in this state to its

15  total miles for that year. This ratio shall be applied each

16  month to the total Florida purchases made in this state of

17  motor and diesel fuels to establish that portion of the total

18  used and consumed in intrastate movement and subject to tax

19  under this chapter. The basis for imposition of any

20  discretionary surtax shall be set forth in s. 212.054. Fuels

21  used exclusively in intrastate commerce do not qualify for the

22  proration of tax.

23         3.  The transmission or wheeling of electricity.

24         4.  Alcoholic beverages and malt beverages that are

25  sold by the drink for consumption on the vendor's licensed

26  premises.

27         (b)  Except as provided in subparagraph (a)4.,

28  alcoholic beverages and malt beverages are not exempt. The

29  terms "alcoholic beverages" and "malt beverages" as used in

30  this paragraph have the same meanings ascribed to them in ss.

31  561.01(4) and 563.01, respectively.  It is determined by the

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    Florida Senate - 2006                                  SB 2550
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 1  Legislature that the classification of alcoholic beverages

 2  made in this paragraph for the purpose of extending the tax

 3  imposed by this chapter is reasonable and just, and it is

 4  intended that such tax be separate from, and in addition to,

 5  any other tax imposed on alcoholic beverages.

 6         (7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to

 7  any entity by this chapter do not inure to any transaction

 8  that is otherwise taxable under this chapter when payment is

 9  made by a representative or employee of the entity by any

10  means, including, but not limited to, cash, check, or credit

11  card, even when that representative or employee is

12  subsequently reimbursed by the entity. In addition, exemptions

13  provided to any entity by this subsection do not inure to any

14  transaction that is otherwise taxable under this chapter

15  unless the entity has obtained a sales tax exemption

16  certificate from the department or the entity obtains or

17  provides other documentation as required by the department.

18  Eligible purchases or leases made with such a certificate must

19  be in strict compliance with this subsection and departmental

20  rules, and any person who makes an exempt purchase with a

21  certificate that is not in strict compliance with this

22  subsection and the rules is liable for and shall pay the tax.

23  The department may adopt rules to administer this subsection.

24         (d)  Feeds.--Feeds for poultry, ostriches, and

25  livestock, including racehorses and dairy cows, are exempt.

26         Section 3.  Subsection (9) of section 212.031, Florida

27  Statutes, is repealed. This repeal does not affect contracts

28  entered into before January 1, 2006; however, the exempt

29  status of charges imposed under such a contract terminates no

30  later than January 1, 2010. In addition, this repeal does not

31  affect any exemption granted under chapter 212, Florida

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    Florida Senate - 2006                                  SB 2550
    24-997A-06




 1  Statutes, to a nonprofit organization that is qualified under

 2  s. 501(c)(3) of the Internal Revenue Code of 1986, as amended.

 3         Section 4.  This act shall take effect July 1, 2006.

 4  

 5            *****************************************

 6                          SENATE SUMMARY

 7    Creates the "Common Sense Tax Reform Act of 2006."
      Relates to specified exemptions from the tax on sales,
 8    use, and other transactions. Provides an exemption for
      alcoholic beverages and malt beverages sold by the drink
 9    for consumption on the vendor's licensed premises.
      Deletes ostriches from the list of animals for which feed
10    is specifically exempted. Repeals s. 212.031(9), F.S.,
      relating to the exemption from the tax on rental or
11    license fees for the use of real property which applies
      to charges for the rental, lease, sublease, or license
12    for the use of a skybox, luxury box, or other box seats
      during a high school or college football game. Provides
13    that the repeal is inapplicable to contracts entered into
      before a specified date. Provides that the exempt status
14    of charges imposed under any such contract ends after a
      specified date.
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