HB 421

1
A bill to be entitled
2An act relating to the tax on sales, use, and other
3transactions; amending s. 212.031, F.S.; continuing an
4exemption from the tax on rental or license fees which is
5provided for certain property rented, leased, or licensed
6by a convention or exhibition hall, auditorium, stadium,
7theater, arena, civic center, performing arts center, or
8publicly owned recreational facility for a specified
9period; providing for future repeal; postponing the repeal
10of and reviving and readopting s. 212.031(10), F.S.,
11relating to an exemption provided for certain charges
12imposed by a convention or exhibition hall, auditorium,
13stadium, theater, arena, civic center, performing arts
14center, or publicly owned recreational facility upon a
15lessee or licensee; providing for future repeal; amending
16s. 212.04, F.S., relating to the tax on admissions;
17continuing in effect a provision that excludes certain
18service charges from the sale price or actual value of an
19admission; continuing an exemption from the tax which is
20provided for admission charges to an event sponsored by a
21governmental entity, sports authority, or sports
22commission; providing for future repeal; continuing in
23effect provisions governing the remitting of certain
24admission taxes to the Department of Revenue; providing an
25effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Paragraph (a) of subsection (1) of section
30212.031, Florida Statutes, as amended by section 3 of chapter
312000-345, as amended by section 55 of chapter 2002-218, and as
32amended by section 2 of chapter 2000-182, section 1 of chapter
332000-183, section 53 of chapter 2000-260, and section 27 of
34chapter 2001-140, Laws of Florida, and subsection (3) of said
35section, as amended by section 3 of chapter 2000-345, as amended
36by section 55 of chapter 2002-218, Laws of Florida, are amended
37to read:
38     212.031  Tax on rental or license fee for use of real
39property.--
40     (1)(a)  It is declared to be the legislative intent that
41every person is exercising a taxable privilege who engages in
42the business of renting, leasing, letting, or granting a license
43for the use of any real property unless such property is:
44     1.  Assessed as agricultural property under s. 193.461.
45     2.  Used exclusively as dwelling units.
46     3.  Property subject to tax on parking, docking, or storage
47spaces under s. 212.03(6).
48     4.  Recreational property or the common elements of a
49condominium when subject to a lease between the developer or
50owner thereof and the condominium association in its own right
51or as agent for the owners of individual condominium units or
52the owners of individual condominium units. However, only the
53lease payments on such property shall be exempt from the tax
54imposed by this chapter, and any other use made by the owner or
55the condominium association shall be fully taxable under this
56chapter.
57     5.  A public or private street or right-of-way and poles,
58conduits, fixtures, and similar improvements located on such
59streets or rights-of-way, occupied or used by a utility or
60provider of communications services, as defined by s. 202.11,
61for utility or communications or television purposes. For
62purposes of this subparagraph, the term "utility" means any
63person providing utility services as defined in s. 203.012. This
64exception also applies to property, wherever located, on which
65the following are placed: towers, antennas, cables, accessory
66structures, or equipment, not including switching equipment,
67used in the provision of mobile communications services as
68defined in s. 202.11. For purposes of this chapter, towers used
69in the provision of mobile communications services, as defined
70in s. 202.11, are considered to be fixtures.
71     6.  A public street or road which is used for
72transportation purposes.
73     7.  Property used at an airport exclusively for the purpose
74of aircraft landing or aircraft taxiing or property used by an
75airline for the purpose of loading or unloading passengers or
76property onto or from aircraft or for fueling aircraft.
77     8.a.  Property used at a port authority, as defined in s.
78315.02(2), exclusively for the purpose of oceangoing vessels or
79tugs docking, or such vessels mooring on property used by a port
80authority for the purpose of loading or unloading passengers or
81cargo onto or from such a vessel, or property used at a port
82authority for fueling such vessels, or to the extent that the
83amount paid for the use of any property at the port is based on
84the charge for the amount of tonnage actually imported or
85exported through the port by a tenant.
86     b.  The amount charged for the use of any property at the
87port in excess of the amount charged for tonnage actually
88imported or exported shall remain subject to tax except as
89provided in sub-subparagraph a.
90     9.  Property used as an integral part of the performance of
91qualified production services.  As used in this subparagraph,
92the term "qualified production services" means any activity or
93service performed directly in connection with the production of
94a qualified motion picture, as defined in s. 212.06(1)(b), and
95includes:
96     a.  Photography, sound and recording, casting, location
97managing and scouting, shooting, creation of special and optical
98effects, animation, adaptation (language, media, electronic, or
99otherwise), technological modifications, computer graphics, set
100and stage support (such as electricians, lighting designers and
101operators, greensmen, prop managers and assistants, and grips),
102wardrobe (design, preparation, and management), hair and makeup
103(design, production, and application), performing (such as
104acting, dancing, and playing), designing and executing stunts,
105coaching, consulting, writing, scoring, composing,
106choreographing, script supervising, directing, producing,
107transmitting dailies, dubbing, mixing, editing, cutting,
108looping, printing, processing, duplicating, storing, and
109distributing;
110     b.  The design, planning, engineering, construction,
111alteration, repair, and maintenance of real or personal property
112including stages, sets, props, models, paintings, and facilities
113principally required for the performance of those services
114listed in sub-subparagraph a.; and
115     c.  Property management services directly related to
116property used in connection with the services described in sub-
117subparagraphs a. and b.
118
119This exemption will inure to the taxpayer upon presentation of
120the certificate of exemption issued to the taxpayer under the
121provisions of s. 288.1258.
122     10.  Leased, subleased, licensed, or rented to a person
123providing food and drink concessionaire services within the
124premises of a convention hall, exhibition hall, auditorium,
125stadium, theater, arena, civic center, performing arts center,
126publicly owned recreational facility, or any business operated
127under a permit issued pursuant to chapter 550.  A person
128providing retail concessionaire services involving the sale of
129food and drink or other tangible personal property within the
130premises of an airport shall be subject to tax on the rental of
131real property used for that purpose, but shall not be subject to
132the tax on any license to use the property.  For purposes of
133this subparagraph, the term "sale" shall not include the leasing
134of tangible personal property.
135     11.  Property occupied pursuant to an instrument calling
136for payments which the department has declared, in a Technical
137Assistance Advisement issued on or before March 15, 1993, to be
138nontaxable pursuant to rule 12A-1.070(19)(c), Florida
139Administrative Code; provided that this subparagraph shall only
140apply to property occupied by the same person before and after
141the execution of the subject instrument and only to those
142payments made pursuant to such instrument, exclusive of renewals
143and extensions thereof occurring after March 15, 1993.
144     12.  Rented, leased, subleased, or licensed to a
145concessionaire by a convention hall, exhibition hall,
146auditorium, stadium, theater, arena, civic center, performing
147arts center, or publicly owned recreational facility, during an
148event at the facility, to be used by the concessionaire to sell
149souvenirs, novelties, or other event-related products. This
150subparagraph applies only to that portion of the rental, lease,
151or license payment which is based on a percentage of sales and
152not based on a fixed price. This subparagraph is repealed July
1531, 2009.
154     13.12.  Property used or occupied predominantly for space
155flight business purposes. As used in this subparagraph, "space
156flight business" means the manufacturing, processing, or
157assembly of a space facility, space propulsion system, space
158vehicle, satellite, or station of any kind possessing the
159capacity for space flight, as defined by s. 212.02(23), or
160components thereof, and also means the following activities
161supporting space flight: vehicle launch activities, flight
162operations, ground control or ground support, and all
163administrative activities directly related thereto. Property
164shall be deemed to be used or occupied predominantly for space
165flight business purposes if more than 50 percent of the
166property, or improvements thereon, is used for one or more space
167flight business purposes. Possession by a landlord, lessor, or
168licensor of a signed written statement from the tenant, lessee,
169or licensee claiming the exemption shall relieve the landlord,
170lessor, or licensor from the responsibility of collecting the
171tax, and the department shall look solely to the tenant, lessee,
172or licensee for recovery of such tax if it determines that the
173exemption was not applicable.
174     (3)  The tax imposed by this section shall be in addition
175to the total amount of the rental or license fee, shall be
176charged by the lessor or person receiving the rent or payment in
177and by a rental or license fee arrangement with the lessee or
178person paying the rental or license fee, and shall be due and
179payable at the time of the receipt of such rental or license fee
180payment by the lessor or other person who receives the rental or
181payment. Notwithstanding any other provision of this chapter,
182the tax imposed by this section on the rental, lease, or license
183for the use of a convention hall, exhibition hall, auditorium,
184stadium, theater, arena, civic center, performing arts center,
185or publicly owned recreational facility to hold an event of not
186more than 7 consecutive days' duration shall be collected at the
187time of the payment for that rental, lease, or license but is
188not due and payable to the department until the first day of the
189month following the last day that the event for which the
190payment is made is actually held, and becomes delinquent on the
19121st day of that month. The owner, lessor, or person receiving
192the rent or license fee shall remit the tax to the department at
193the times and in the manner hereinafter provided for dealers to
194remit taxes under this chapter. The same duties imposed by this
195chapter upon dealers in tangible personal property respecting
196the collection and remission of the tax; the making of returns;
197the keeping of books, records, and accounts; and the compliance
198with the rules and regulations of the department in the
199administration of this chapter shall apply to and be binding
200upon all persons who manage any leases or operate real property,
201hotels, apartment houses, roominghouses, or tourist and trailer
202camps and all persons who collect or receive rents or license
203fees taxable under this chapter on behalf of owners or lessors.
204     Section 2.  Notwithstanding the provisions of section 3 of
205chapter 2000-345, Laws of Florida, as amended by section 55 of
206chapter 2002-218, Laws of Florida, subsection (10) of s.
207212.031, Florida Statutes, shall not stand repealed on July 1,
2082006, as scheduled by such laws, but that subsection is revived
209and readopted. Subsection (10) of s. 212.031, Florida Statutes,
210is repealed July 1, 2009.
211     Section 3.  Paragraph (b) of subsection (1) and subsection
212(3) of section 212.04, Florida Statutes, as amended by section 4
213of chapter 2000-345, as amended by section 55 of chapter 2002-
214218, Laws of Florida, and paragraph (a) of subsection (2) of
215said section, as amended by section 4 of chapter 2000-345, as
216amended by section 55 of chapter 2002-218, as amended by section
217916 of chapter 2002-387, and as amended by section 24 of chapter
2182000-158, and section 11 of chapter 2000-210, Laws of Florida,
219are amended to read:
220     212.04  Admissions tax; rate, procedure, enforcement.--
221     (1)
222     (b)  For the exercise of such privilege, a tax is levied at
223the rate of 6 percent of sales price, or the actual value
224received from such admissions, which 6 percent shall be added to
225and collected with all such admissions from the purchaser
226thereof, and such tax shall be paid for the exercise of the
227privilege as defined in the preceding paragraph. Each ticket
228must show on its face the actual sales price of the admission,
229or each dealer selling the admission must prominently display at
230the box office or other place where the admission charge is made
231a notice disclosing the price of the admission, and the tax
232shall be computed and collected on the basis of the actual price
233of the admission charged by the dealer. The sale price or actual
234value of admission shall, for the purpose of this chapter, be
235that price remaining after deduction of federal taxes and state
236or locally imposed or authorized seat surcharges, taxes, or
237fees, if any, imposed upon such admission. The sale price or
238actual value does not include separately stated ticket service
239charges that are imposed by a facility ticket office or a
240ticketing service and added to a separately stated, established
241ticket price., and The rate of tax on each admission shall be
242according to the brackets established by s. 212.12(9).
243     (2)(a)1.  No tax shall be levied on admissions to athletic
244or other events sponsored by elementary schools, junior high
245schools, middle schools, high schools, community colleges,
246public or private colleges and universities, deaf and blind
247schools, facilities of the youth services programs of the
248Department of Children and Family Services, and state
249correctional institutions when only student, faculty, or inmate
250talent is used. However, this exemption shall not apply to
251admission to athletic events sponsored by a state university,
252and the proceeds of the tax collected on such admissions shall
253be retained and used by each institution to support women's
254athletics as provided in s. 1006.71(2)(c).
255     2.a.  No tax shall be levied on dues, membership fees, and
256admission charges imposed by not-for-profit sponsoring
257organizations. To receive this exemption, the sponsoring
258organization must qualify as a not-for-profit entity under the
259provisions of s. 501(c)(3) of the Internal Revenue Code of 1954,
260as amended.
261     b.  No tax shall be levied on admission charges to an event
262sponsored by a governmental entity, sports authority, or sports
263commission when held in a convention hall, exhibition hall,
264auditorium, stadium, theater, arena, civic center, performing
265arts center, or publicly owned recreational facility and when
266100 percent of the risk of success or failure lies with the
267sponsor of the event and 100 percent of the funds at risk for
268the event belong to the sponsor, and student or faculty talent
269is not exclusively used. As used in this sub-subparagraph, the
270terms "sports authority" and "sports commission" mean a
271nonprofit organization that is exempt from federal income tax
272under s. 501(c)(3) of the Internal Revenue Code and that
273contracts with a county or municipal government for the purpose
274of promoting and attracting sports-tourism events to the
275community with which it contracts. This sub-subparagraph is
276repealed July 1, 2009.
277     3.  No tax shall be levied on an admission paid by a
278student, or on the student's behalf, to any required place of
279sport or recreation if the student's participation in the sport
280or recreational activity is required as a part of a program or
281activity sponsored by, and under the jurisdiction of, the
282student's educational institution, provided his or her
283attendance is as a participant and not as a spectator.
284     4.  No tax shall be levied on admissions to the National
285Football League championship game, on admissions to any
286semifinal game or championship game of a national collegiate
287tournament, or on admissions to a Major League Baseball all-star
288game.
289     5.  A participation fee or sponsorship fee imposed by a
290governmental entity as described in s. 212.08(6) for an athletic
291or recreational program is exempt when the governmental entity
292by itself, or in conjunction with an organization exempt under
293s. 501(c)(3) of the Internal Revenue Code of 1954, as amended,
294sponsors, administers, plans, supervises, directs, and controls
295the athletic or recreational program.
296     6.  Also exempt from the tax imposed by this section to the
297extent provided in this subparagraph are admissions to live
298theater, live opera, or live ballet productions in this state
299which are sponsored by an organization that has received a
300determination from the Internal Revenue Service that the
301organization is exempt from federal income tax under s.
302501(c)(3) of the Internal Revenue Code of 1954, as amended, if
303the organization actively participates in planning and
304conducting the event, is responsible for the safety and success
305of the event, is organized for the purpose of sponsoring live
306theater, live opera, or live ballet productions in this state,
307has more than 10,000 subscribing members and has among the
308stated purposes in its charter the promotion of arts education
309in the communities which it serves, and will receive at least 20
310percent of the net profits, if any, of the events which the
311organization sponsors and will bear the risk of at least 20
312percent of the losses, if any, from the events which it sponsors
313if the organization employs other persons as agents to provide
314services in connection with a sponsored event. Prior to March 1
315of each year, such organization may apply to the department for
316a certificate of exemption for admissions to such events
317sponsored in this state by the organization during the
318immediately following state fiscal year. The application shall
319state the total dollar amount of admissions receipts collected
320by the organization or its agents from such events in this state
321sponsored by the organization or its agents in the year
322immediately preceding the year in which the organization applies
323for the exemption. Such organization shall receive the exemption
324only to the extent of $1.5 million multiplied by the ratio that
325such receipts bear to the total of such receipts of all
326organizations applying for the exemption in such year; however,
327in no event shall such exemption granted to any organization
328exceed 6 percent of such admissions receipts collected by the
329organization or its agents in the year immediately preceding the
330year in which the organization applies for the exemption. Each
331organization receiving the exemption shall report each month to
332the department the total admissions receipts collected from such
333events sponsored by the organization during the preceding month
334and shall remit to the department an amount equal to 6 percent
335of such receipts reduced by any amount remaining under the
336exemption. Tickets for such events sold by such organizations
337shall not reflect the tax otherwise imposed under this section.
338     7.  Also exempt from the tax imposed by this section are
339entry fees for participation in freshwater fishing tournaments.
340     8.  Also exempt from the tax imposed by this section are
341participation or entry fees charged to participants in a game,
342race, or other sport or recreational event if spectators are
343charged a taxable admission to such event.
344     9.  No tax shall be levied on admissions to any postseason
345collegiate football game sanctioned by the National Collegiate
346Athletic Association.
347     (3)  Such taxes shall be paid and remitted at the same time
348and in the same manner as provided for remitting taxes on sales
349of tangible personal property, as hereinafter provided.
350Notwithstanding any other provision of this chapter, the tax on
351admission to an event at a convention hall, exhibition hall,
352auditorium, stadium, theater, arena, civic center, performing
353arts center, or publicly owned recreational facility shall be
354collected at the time of payment for the admission but is not
355due to the department until the first day of the month following
356the actual date of the event for which the admission is sold and
357becomes delinquent on the 21st day of that month.
358     Section 4.  This act shall take effect July 1, 2006.


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