| 1 | A bill to be entitled |
| 2 | An act relating to the gross receipts tax; amending s. |
| 3 | 203.01, F.S.; specifying nonapplication of the tax to |
| 4 | certain sales, transportation, or use of electricity; |
| 5 | providing criteria; providing limitations; providing |
| 6 | definitions; specifying availability of the exemption only |
| 7 | by refund from the Department of Revenue; providing duties |
| 8 | and powers of the department relating to applications and |
| 9 | disbursements of refunds; providing for department rules; |
| 10 | providing for expiration of the exemption; providing for |
| 11 | retroactive application; providing an effective date. |
| 12 |
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| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
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| 15 | Section 1. Subsection (3) of section 203.01, Florida |
| 16 | Statutes, is amended to read: |
| 17 | 203.01 Tax on gross receipts for utility and |
| 18 | communications services.-- |
| 19 | (3) The tax imposed by subsection (1) does not apply to |
| 20 | any of the following: |
| 21 | (a)1. The sale or transportation of natural gas or |
| 22 | manufactured gas to a public or private utility, including a |
| 23 | municipal corporation or rural electric cooperative association, |
| 24 | either for resale or for use as fuel in the generation of |
| 25 | electricity; or |
| 26 | 2. The sale or delivery of electricity to a public or |
| 27 | private utility, including a municipal corporation or rural |
| 28 | electric cooperative association, for resale, or as part of an |
| 29 | electrical interchange agreement or contract between such |
| 30 | utilities for the purpose of transferring more economically |
| 31 | generated power; |
| 32 |
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| 33 | provided the person deriving gross receipts from such sale |
| 34 | demonstrates that a sale, transportation, or delivery for resale |
| 35 | in fact occurred and complies with the following requirements: A |
| 36 | sale, transportation, or delivery for resale must be in strict |
| 37 | compliance with the rules and regulations of the Department of |
| 38 | Revenue; and any sale subject to the tax imposed by this section |
| 39 | which is not in strict compliance with the rules and regulations |
| 40 | of the Department of Revenue shall be subject to the tax at the |
| 41 | appropriate rate imposed on utilities by paragraph (b) on the |
| 42 | person making the sale. Any person making a sale for resale may, |
| 43 | through an informal protest provided for in s. 213.21 and the |
| 44 | rules of the Department of Revenue, provide the department with |
| 45 | evidence of the exempt status of a sale. The department shall |
| 46 | adopt rules that provide that valid proof and documentation of |
| 47 | the resale by a person making the sale for resale will be |
| 48 | accepted by the department when submitted during the protest |
| 49 | period but will not be accepted when submitted in any proceeding |
| 50 | under chapter 120 or any circuit court action instituted under |
| 51 | chapter 72.; |
| 52 | (b) Wholesale sales of electric transmission service.; |
| 53 | (c) The use of natural gas in the production of oil or |
| 54 | gas, or the use of natural or manufactured gas by a person |
| 55 | transporting natural or manufactured gas, when used and consumed |
| 56 | in providing such services.; or |
| 57 | (d) The sale or transportation to, or use of, natural gas |
| 58 | or manufactured gas by a person eligible for an exemption under |
| 59 | s. 212.08(7)(ff)2. for use as an energy source or a raw |
| 60 | material. Possession by a seller of natural or manufactured gas |
| 61 | or by any person providing transportation or delivery of natural |
| 62 | or manufactured gas of a written certification by the purchaser, |
| 63 | certifying the purchaser's entitlement to the exclusion |
| 64 | permitted by this paragraph, relieves the seller or person |
| 65 | providing transportation or delivery from the responsibility of |
| 66 | remitting tax on the nontaxable amounts, and the department |
| 67 | shall look solely to the purchaser for recovery of such tax if |
| 68 | the department determines that the purchaser was not entitled to |
| 69 | the exclusion. The certification must include an acknowledgment |
| 70 | by the purchaser that it will be liable for tax pursuant to |
| 71 | paragraph (1)(f) if the requirements for exclusion are not met. |
| 72 | (e)1. The sale or transportation of electricity to, or the |
| 73 | use of electricity by, a person described in s. 212.08(7)(ff)3. |
| 74 | if such electricity is for use at a fixed location for which |
| 75 | $50,000 in gross receipts tax has been paid pursuant to |
| 76 | subsection (1) on electricity consumed at such location during |
| 77 | the calendar year and if such person can demonstrate that the |
| 78 | person has spent for energy conservation measures at that fixed |
| 79 | location the amount of tax savings allowed to such person as an |
| 80 | exemption by this paragraph. |
| 81 | 2. If the amount of taxes above $50,000 that otherwise |
| 82 | would be due by a person exceeds the amount of qualifying |
| 83 | expenditures for energy conservation measures by such person in |
| 84 | a calendar year, the exemption shall be capped in such calendar |
| 85 | year at the amount of qualifying expenditures for energy |
| 86 | conservation measures. However, if the amount of qualifying |
| 87 | expenditures for energy conservation measures by a person |
| 88 | exceeds the amount of taxes above $50,000 that otherwise would |
| 89 | be due in a calendar year by such person, the exemption shall be |
| 90 | capped for the year at the amount of taxes otherwise due, but |
| 91 | excess qualifying expenditures for energy conservation measures |
| 92 | may be carried forward and applied as qualifying expenditures |
| 93 | for up to 2 subsequent calendar years. |
| 94 | 3. For purposes of this exemption, the term: |
| 95 | a. "Fixed location" means one or more contiguous |
| 96 | manufacturing sites and functionally related contiguous parcels |
| 97 | owned or operated by the person eligible for the exemption. |
| 98 | b. "Energy conservation measure" includes any expenditure |
| 99 | for a measure that is certified by a professional engineer |
| 100 | licensed in this state to reduce electrical demand measured in |
| 101 | kilowatts, reduce fossil fuel demand, reduce the required energy |
| 102 | measured in kilowatt hours that would otherwise be needed absent |
| 103 | the conservation measures, or reduce expenses necessary to |
| 104 | provide renewable energy generation as defined by law, including |
| 105 | operation and maintenance expenses. |
| 106 | 4. This exemption shall be available by refund paid by the |
| 107 | Department of Revenue. An application for refund shall be made |
| 108 | to the department on or before May 1 for refunds earned during |
| 109 | the prior calendar year. The department may develop by rule the |
| 110 | refund application and refund application procedures. All |
| 111 | provisions related to challenging any denial of a refund shall |
| 112 | apply with respect to refunds authorized pursuant to this |
| 113 | paragraph. |
| 114 | 5. The exemption allowed pursuant to this paragraph shall |
| 115 | expire on December 31, 2015, except to the extent of any |
| 116 | remaining carryforward of qualifying expenditures for energy |
| 117 | conservation measures. |
| 118 | Section 2. This act shall take effect upon becoming a law |
| 119 | and shall apply retroactively to January 1, 2006, with regard to |
| 120 | taxes paid and expenditures for energy conservation measures |
| 121 | made in calendar year 2006 and for calendar years thereafter. |