Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
CHAMBER ACTION
Senate House
.
.
1 Comm: 22/RCS .
04/19/2007 06:44 PM .
2 .
.
3 .
.
4 ______________________________________________________________
5
6
7
8
9
10 ______________________________________________________________
11 The Committee on Finance and Tax (Haridopolos) recommended the
12 following amendment:
13
14 Senate Amendment (with directory and title amendments)
15 On page 38, between lines 9 and 10,
16
17 insert:
18 (7) MISCELLANEOUS EXEMPTIONS.--Exemptions provided to
19 any entity by this chapter do not inure to any transaction
20 that is otherwise taxable under this chapter when payment is
21 made by a representative or employee of the entity by any
22 means, including, but not limited to, cash, check, or credit
23 card, even when that representative or employee is
24 subsequently reimbursed by the entity. In addition, exemptions
25 provided to any entity by this subsection do not inure to any
26 transaction that is otherwise taxable under this chapter
27 unless the entity has obtained a sales tax exemption
28 certificate from the department or the entity obtains or
29 provides other documentation as required by the department.
30 Eligible purchases or leases made with such a certificate must
31 be in strict compliance with this subsection and departmental
1
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 rules, and any person who makes an exempt purchase with a
2 certificate that is not in strict compliance with this
3 subsection and the rules is liable for and shall pay the tax.
4 The department may adopt rules to administer this subsection.
5 (a) Artificial commemorative flowers.--Exempt from the
6 tax imposed by this chapter is the sale of artificial
7 commemorative flowers by bona fide nationally chartered
8 veterans' organizations.
9 (b) Boiler fuels.--When purchased for use as a
10 combustible fuel, purchases of natural gas, residual oil,
11 recycled oil, waste oil, solid waste material, coal, sulfur,
12 wood, wood residues or wood bark used in an industrial
13 manufacturing, processing, compounding, or production process
14 at a fixed location in this state are exempt from the taxes
15 imposed by this chapter; however, such exemption shall not be
16 allowed unless the purchaser signs a certificate stating that
17 the fuel to be exempted is for the exclusive use designated
18 herein. This exemption does not apply to the use of boiler
19 fuels that are not used in manufacturing, processing,
20 compounding, or producing items of tangible personal property
21 for sale, or to the use of boiler fuels used by any firm
22 subject to regulation by the Division of Hotels and
23 Restaurants of the Department of Business and Professional
24 Regulation.
25 (c) Crustacea bait.--Also exempt from the tax imposed
26 by this chapter is the purchase by commercial fishers of bait
27 intended solely for use in the entrapment of Callinectes
28 sapidus and Menippe mercenaria.
29 (d) Feeds.--Feeds for poultry, ostriches, and
30 livestock, including racehorses and dairy cows, are exempt.
31 (e) Film rentals.--Film rentals are exempt when an
2
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 admission is charged for viewing such film, and license fees
2 and direct charges for films, videotapes, and transcriptions
3 used by television or radio stations or networks are exempt.
4 (f) Flags.--Also exempt are sales of the flag of the
5 United States and the official state flag of Florida.
6 (g) Florida Retired Educators Association and its
7 local chapters.--Also exempt from payment of the tax imposed
8 by this chapter are purchases of office supplies, equipment,
9 and publications made by the Florida Retired Educators
10 Association and its local chapters.
11 (h) Guide dogs for the blind.--Also exempt are the
12 sale or rental of guide dogs for the blind, commonly referred
13 to as "seeing-eye dogs," and the sale of food or other items
14 for such guide dogs.
15 1. The department shall issue a consumer's certificate
16 of exemption to any blind person who holds an identification
17 card as provided for in s. 413.091 and who either owns or
18 rents, or contemplates the ownership or rental of, a guide dog
19 for the blind. The consumer's certificate of exemption shall
20 be issued without charge and shall be of such size as to be
21 capable of being carried in a wallet or billfold.
22 2. The department shall make such rules concerning
23 items exempt from tax under the provisions of this paragraph
24 as may be necessary to provide that any person authorized to
25 have a consumer's certificate of exemption need only present
26 such a certificate at the time of paying for exempt goods and
27 shall not be required to pay any tax thereon.
28 (i) Hospital meals and rooms.--Also exempt from
29 payment of the tax imposed by this chapter on rentals and
30 meals are patients and inmates of any hospital or other
31 physical plant or facility designed and operated primarily for
3
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 the care of persons who are ill, aged, infirm, mentally or
2 physically incapacitated, or otherwise dependent on special
3 care or attention. Residents of a home for the aged are exempt
4 from payment of taxes on meals provided through the facility.
5 A home for the aged is defined as a facility that is licensed
6 or certified in part or in whole under chapter 400, chapter
7 429, or chapter 651, or that is financed by a mortgage loan
8 made or insured by the United States Department of Housing and
9 Urban Development under s. 202, s. 202 with a s. 8 subsidy, s.
10 221(d)(3) or (4), s. 232, or s. 236 of the National Housing
11 Act, or other such similar facility designed and operated
12 primarily for the care of the aged.
13 (j) Household fuels.--Also exempt from payment of the
14 tax imposed by this chapter are sales of utilities to
15 residential households or owners of residential models in this
16 state by utility companies who pay the gross receipts tax
17 imposed under s. 203.01, and sales of fuel to residential
18 households or owners of residential models, including oil,
19 kerosene, liquefied petroleum gas, coal, wood, and other fuel
20 products used in the household or residential model for the
21 purposes of heating, cooking, lighting, and refrigeration,
22 regardless of whether such sales of utilities and fuels are
23 separately metered and billed direct to the residents or are
24 metered and billed to the landlord. If any part of the utility
25 or fuel is used for a nonexempt purpose, the entire sale is
26 taxable. The landlord shall provide a separate meter for
27 nonexempt utility or fuel consumption. For the purposes of
28 this paragraph, licensed family day care homes shall also be
29 exempt.
30 (k) Meals provided by certain nonprofit
31 organizations.--There is exempt from the tax imposed by this
4
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 chapter the sale of prepared meals by a nonprofit volunteer
2 organization to handicapped, elderly, or indigent persons when
3 such meals are delivered as a charitable function by the
4 organization to such persons at their places of residence.
5 (l) Organizations providing special educational,
6 cultural, recreational, and social benefits to minors.--Also
7 exempt from the tax imposed by this chapter are sales or
8 leases to and sales of donated property by nonprofit
9 organizations which are incorporated pursuant to chapter 617
10 the primary purpose of which is providing activities that
11 contribute to the development of good character or good
12 sportsmanship, or to the educational or cultural development,
13 of minors. This exemption is extended only to that level of
14 the organization that has a salaried executive officer or an
15 elected nonsalaried executive officer. For the purpose of this
16 paragraph, the term "donated property" means any property
17 transferred to such nonprofit organization for less than 50
18 percent of its fair market value.
19 (m) Religious institutions.--
20 1. There are exempt from the tax imposed by this
21 chapter transactions involving sales or leases directly to
22 religious institutions when used in carrying on their
23 customary nonprofit religious activities or sales or leases of
24 tangible personal property by religious institutions having an
25 established physical place for worship at which nonprofit
26 religious services and activities are regularly conducted and
27 carried on.
28 2. As used in this paragraph, the term "religious
29 institutions" means churches, synagogues, and established
30 physical places for worship at which nonprofit religious
31 services and activities are regularly conducted and carried
5
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 on. The term "religious institutions" includes nonprofit
2 corporations the sole purpose of which is to provide free
3 transportation services to church members, their families, and
4 other church attendees. The term "religious institutions" also
5 includes nonprofit state, nonprofit district, or other
6 nonprofit governing or administrative offices the function of
7 which is to assist or regulate the customary activities of
8 religious institutions. The term "religious institutions" also
9 includes any nonprofit corporation that is qualified as
10 nonprofit under s. 501(c)(3) of the Internal Revenue Code of
11 1986, as amended, and that owns and operates a Florida
12 television station, at least 90 percent of the programming of
13 which station consists of programs of a religious nature and
14 the financial support for which, exclusive of receipts for
15 broadcasting from other nonprofit organizations, is
16 predominantly from contributions from the general public. The
17 term "religious institutions" also includes any nonprofit
18 corporation that is qualified as nonprofit under s. 501(c)(3)
19 of the Internal Revenue Code of 1986, as amended, the primary
20 activity of which is making and distributing audio recordings
21 of religious scriptures and teachings to blind or visually
22 impaired persons at no charge. The term "religious
23 institutions" also includes any nonprofit corporation that is
24 qualified as nonprofit under s. 501(c)(3) of the Internal
25 Revenue Code of 1986, as amended, the sole or primary function
26 of which is to provide, upon invitation, nonprofit religious
27 services, evangelistic services, religious education,
28 administrative assistance, or missionary assistance for a
29 church, synagogue, or established physical place of worship at
30 which nonprofit religious services and activities are
31 regularly conducted.
6
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 (n) Veterans' organizations.--
2 1. There are exempt from the tax imposed by this
3 chapter transactions involving sales or leases to qualified
4 veterans' organizations and their auxiliaries when used in
5 carrying on their customary veterans' organization activities.
6 2. As used in this paragraph, the term "veterans'
7 organizations" means nationally chartered or recognized
8 veterans' organizations, including, but not limited to,
9 Florida chapters of the Paralyzed Veterans of America,
10 Catholic War Veterans of the U.S.A., Jewish War Veterans of
11 the U.S.A., and the Disabled American Veterans, Department of
12 Florida, Inc., which hold current exemptions from federal
13 income tax under s. 501(c)(4) or (19) of the Internal Revenue
14 Code of 1986, as amended.
15 (o) Schools, colleges, and universities.--Also exempt
16 from the tax imposed by this chapter are sales or leases to
17 state tax-supported schools, colleges, or universities.
18 (p) Section 501(c)(3) organizations.--Also exempt from
19 the tax imposed by this chapter are sales or leases to
20 organizations determined by the Internal Revenue Service to be
21 currently exempt from federal income tax pursuant to s.
22 501(c)(3) of the Internal Revenue Code of 1986, as amended,
23 when such leases or purchases are used in carrying on their
24 customary nonprofit activities.
25 (q) Resource recovery equipment.--Also exempt is
26 resource recovery equipment which is owned and operated by or
27 on behalf of any county or municipality, certified by the
28 Department of Environmental Protection under the provisions of
29 s. 403.715.
30 (r) School books and school lunches.--This exemption
31 applies to school books used in regularly prescribed courses
7
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 of study, and to school lunches served in public, parochial,
2 or nonprofit schools operated for and attended by pupils of
3 grades K through 12. Yearbooks, magazines, newspapers,
4 directories, bulletins, and similar publications distributed
5 by such educational institutions to their students are also
6 exempt. School books and food sold or served at community
7 colleges and other institutions of higher learning are
8 taxable.
9 (s) Tasting beverages.--Vinous and alcoholic beverages
10 provided by distributors or vendors for the purpose of "wine
11 tasting" and "spirituous beverage tasting" as contemplated
12 under the provisions of ss. 564.06 and 565.12, respectively,
13 are exempt from the tax imposed by this chapter.
14 (t) Boats temporarily docked in state.--
15 1. Notwithstanding the provisions of chapter 328,
16 pertaining to the registration of vessels, a boat upon which
17 the state sales or use tax has not been paid is exempt from
18 the use tax under this chapter if it enters and remains in
19 this state for a period not to exceed a total of 20 days in
20 any calendar year calculated from the date of first dockage or
21 slippage at a facility, registered with the department, that
22 rents dockage or slippage space in this state. If a boat
23 brought into this state for use under this paragraph is placed
24 in a facility, registered with the department, for repairs,
25 alterations, refitting, or modifications and such repairs,
26 alterations, refitting, or modifications are supported by
27 written documentation, the 20-day period shall be tolled
28 during the time the boat is physically in the care, custody,
29 and control of the repair facility, including the time spent
30 on sea trials conducted by the facility. The 20-day time
31 period may be tolled only once within a calendar year when a
8
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 boat is placed for the first time that year in the physical
2 care, custody, and control of a registered repair facility;
3 however, the owner may request and the department may grant an
4 additional tolling of the 20-day period for purposes of
5 repairs that arise from a written guarantee given by the
6 registered repair facility, which guarantee covers only those
7 repairs or modifications made during the first tolled period.
8 Within 72 hours after the date upon which the registered
9 repair facility took possession of the boat, the facility must
10 have in its possession, on forms prescribed by the department,
11 an affidavit which states that the boat is under its care,
12 custody, and control and that the owner does not use the boat
13 while in the facility. Upon completion of the repairs,
14 alterations, refitting, or modifications, the registered
15 repair facility must, within 72 hours after the date of
16 release, have in its possession a copy of the release form
17 which shows the date of release and any other information the
18 department requires. The repair facility shall maintain a log
19 that documents all alterations, additions, repairs, and sea
20 trials during the time the boat is under the care, custody,
21 and control of the facility. The affidavit shall be
22 maintained by the registered repair facility as part of its
23 records for as long as required by s. 213.35. When, within 6
24 months after the date of its purchase, a boat is brought into
25 this state under this paragraph, the 6-month period provided
26 in s. 212.05(1)(a)2. or s. 212.06(8) shall be tolled.
27 2. During the period of repairs, alterations,
28 refitting, or modifications and during the 20-day period
29 referred to in subparagraph 1., the boat may be listed for
30 sale, contracted for sale, or sold exclusively by a broker or
31 dealer registered with the department without incurring a use
9
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 tax under this chapter; however, the sales tax levied under
2 this chapter applies to such sale.
3 3. The mere storage of a boat at a registered repair
4 facility does not qualify as a tax-exempt use in this state.
5 4. As used in this paragraph, "registered repair
6 facility" means:
7 a. A full-service facility that:
8 (I) Is located on a navigable body of water;
9 (II) Has haulout capability such as a dry dock, travel
10 lift, railway, or similar equipment to service craft under the
11 care, custody, and control of the facility;
12 (III) Has adequate piers and storage facilities to
13 provide safe berthing of vessels in its care, custody, and
14 control; and
15 (IV) Has necessary shops and equipment to provide
16 repair or warranty work on vessels under the care, custody,
17 and control of the facility;
18 b. A marina that:
19 (I) Is located on a navigable body of water;
20 (II) Has adequate piers and storage facilities to
21 provide safe berthing of vessels in its care, custody, and
22 control; and
23 (III) Has necessary shops and equipment to provide
24 repairs or warranty work on vessels; or
25 c. A shoreside facility that:
26 (I) Is located on a navigable body of water;
27 (II) Has adequate piers and storage facilities to
28 provide safe berthing of vessels in its care, custody, and
29 control; and
30 (III) Has necessary shops and equipment to provide
31 repairs or warranty work.
10
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 (u) Volunteer fire departments.--Also exempt are
2 firefighting and rescue service equipment and supplies
3 purchased by volunteer fire departments, duly chartered under
4 the Florida Statutes as corporations not for profit.
5 (v) Professional services.--
6 1. Also exempted are professional, insurance, or
7 personal service transactions that involve sales as
8 inconsequential elements for which no separate charges are
9 made.
10 2. The personal service transactions exempted pursuant
11 to subparagraph 1. do not exempt the sale of information
12 services involving the furnishing of printed, mimeographed, or
13 multigraphed matter, or matter duplicating written or printed
14 matter in any other manner, other than professional services
15 and services of employees, agents, or other persons acting in
16 a representative or fiduciary capacity or information services
17 furnished to newspapers and radio and television stations. As
18 used in this subparagraph, the term "information services"
19 includes the services of collecting, compiling, or analyzing
20 information of any kind or nature and furnishing reports
21 thereof to other persons.
22 3. This exemption does not apply to any service
23 warranty transaction taxable under s. 212.0506.
24 4. This exemption does not apply to any service
25 transaction taxable under s. 212.05(1)(i).
26 (w) Certain newspaper, magazine, and newsletter
27 subscriptions, shoppers, and community newspapers.--Likewise
28 exempt are newspaper, magazine, and newsletter subscriptions
29 in which the product is delivered to the customer by mail.
30 Also exempt are free, circulated publications that are
31 published on a regular basis, the content of which is
11
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 primarily advertising, and that are distributed through the
2 mail, home delivery, or newsstands. The exemption for
3 newspaper, magazine, and newsletter subscriptions which is
4 provided in this paragraph applies only to subscriptions
5 entered into after March 1, 1997.
6 (x) Sporting equipment brought into the
7 state.--Sporting equipment brought into Florida, for a period
8 of not more than 4 months in any calendar year, used by an
9 athletic team or an individual athlete in a sporting event is
10 exempt from the use tax if such equipment is removed from the
11 state within 7 days after the completion of the event.
12 (y) Charter fishing vessels.--The charge for
13 chartering any boat or vessel, with the crew furnished, solely
14 for the purpose of fishing is exempt from the tax imposed
15 under s. 212.04 or s. 212.05. This exemption does not apply
16 to any charge to enter or stay upon any "head-boat," party
17 boat, or other boat or vessel. Nothing in this paragraph
18 shall be construed to exempt any boat from sales or use tax
19 upon the purchase thereof except as provided in paragraph (t)
20 and s. 212.05.
21 (z) Vending machines sponsored by nonprofit or
22 charitable organizations.--Also exempt are food or drinks for
23 human consumption sold for 25 cents or less through a
24 coin-operated vending machine sponsored by a nonprofit
25 corporation qualified as nonprofit pursuant to s. 501(c)(3) or
26 (4) of the Internal Revenue Code of 1986, as amended.
27 (aa) Certain commercial vehicles.--Also exempt is the
28 sale, lease, or rental of a commercial motor vehicle as
29 defined in s. 207.002(2), when the following conditions are
30 met:
31 1. The sale, lease, or rental occurs between two
12
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 commonly owned and controlled corporations;
2 2. Such vehicle was titled and registered in this
3 state at the time of the sale, lease, or rental; and
4 3. Florida sales tax was paid on the acquisition of
5 such vehicle by the seller, lessor, or renter.
6 (bb) Community cemeteries.--Also exempt are purchases
7 by any nonprofit corporation that has qualified under s.
8 501(c)(13) of the Internal Revenue Code of 1986, as amended,
9 and is operated for the purpose of maintaining a cemetery that
10 was donated to the community by deed.
11 (cc) Works of art.--
12 1. Also exempt are works of art sold to or used by an
13 educational institution.
14 2. This exemption also applies to the sale to or use
15 in this state of any work of art by any person if it was
16 purchased or imported exclusively for the purpose of being
17 donated to any educational institution, or loaned to and made
18 available for display by any educational institution, provided
19 that the term of the loan agreement is for at least 10 years.
20 3. The exemption provided by this paragraph for
21 donations is allowed only if the person who purchased the work
22 of art transfers title to the donated work of art to an
23 educational institution. Such transfer of title shall be
24 evidenced by an affidavit meeting requirements established by
25 rule to document entitlement to the exemption. Nothing in this
26 paragraph shall preclude a work of art donated to an
27 educational institution from remaining in the possession of
28 the donor or purchaser, as long as title to the work of art
29 lies with the educational institution.
30 4. A work of art is presumed to have been purchased in
31 or imported into this state exclusively for loan as provided
13
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 in subparagraph 2., if it is so loaned or placed in storage in
2 preparation for such a loan within 90 days after purchase or
3 importation, whichever is later; but a work of art is not
4 deemed to be placed in storage in preparation for loan for
5 purposes of this exemption if it is displayed at any place
6 other than an educational institution.
7 5. The exemptions provided by this paragraph are
8 allowed only if the person who purchased the work of art gives
9 to the vendor an affidavit meeting the requirements,
10 established by rule, to document entitlement to the exemption.
11 The person who purchased the work of art shall forward a copy
12 of such affidavit to the Department of Revenue at the time it
13 is issued to the vendor.
14 6. The exemption for loans provided by subparagraph 2.
15 applies only for the period during which a work of art is in
16 the possession of the educational institution or is in storage
17 before transfer of possession to that institution; and when it
18 ceases to be so possessed or held, tax based upon the sales
19 price paid by the owner is payable, and the statute of
20 limitations provided in s. 95.091 shall begin to run at that
21 time. However, tax shall not become due if the work of art is
22 donated to an educational institution after the loan ceases.
23 7. Any educational institution to which a work of art
24 has been donated pursuant to this paragraph shall make
25 available to the department the title to the work of art and
26 any other relevant information. Any educational institution
27 which has received a work of art on loan pursuant to this
28 paragraph shall make available to the department information
29 relating to the work of art. Any educational institution that
30 transfers from its possession a work of art as defined by this
31 paragraph which has been loaned to it must notify the
14
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 Department of Revenue within 60 days after the transfer.
2 8. For purposes of the exemptions provided by this
3 paragraph, the term:
4 a. "Educational institutions" includes state
5 tax-supported, parochial, church, and nonprofit private
6 schools, colleges, or universities that conduct regular
7 classes and courses of study required for accreditation by or
8 membership in the Southern Association of Colleges and
9 Schools, the Florida Council of Independent Schools, or the
10 Florida Association of Christian Colleges and Schools, Inc.;
11 nonprofit private schools that conduct regular classes and
12 courses of study accepted for continuing education credit by a
13 board of the Division of Medical Quality Assurance of the
14 Department of Health; or nonprofit libraries, art galleries,
15 performing arts centers that provide educational programs to
16 school children, which programs involve performances or other
17 educational activities at the performing arts center and serve
18 a minimum of 50,000 school children a year, and museums open
19 to the public.
20 b. "Work of art" includes pictorial representations,
21 sculpture, jewelry, antiques, stamp collections and coin
22 collections, and other tangible personal property, the value
23 of which is attributable predominantly to its artistic,
24 historical, political, cultural, or social importance.
25 (dd) Taxicab leases.--The lease of or license to use a
26 taxicab or taxicab-related equipment and services provided by
27 a taxicab company to an independent taxicab operator are
28 exempt, provided, however, the exemptions provided under this
29 paragraph only apply if sales or use tax has been paid on the
30 acquisition of the taxicab and its related equipment.
31 (ee) Aircraft repair and maintenance labor
15
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 charges.--There shall be exempt from the tax imposed by this
2 chapter all labor charges for the repair and maintenance of
3 qualified aircraft, aircraft of more than 15,000 pounds
4 maximum certified takeoff weight, and rotary wing aircraft of
5 more than 10,000 pounds maximum certified takeoff weight.
6 Except as otherwise provided in this chapter, charges for
7 parts and equipment furnished in connection with such labor
8 charges are taxable.
9 (ff) Certain electricity or steam uses.--
10 1. Subject to the provisions of subparagraph 4.,
11 charges for electricity or steam used to operate machinery and
12 equipment at a fixed location in this state when such
13 machinery and equipment is used to manufacture, process,
14 compound, produce, or prepare for shipment items of tangible
15 personal property for sale, or to operate pollution control
16 equipment, recycling equipment, maintenance equipment, or
17 monitoring or control equipment used in such operations are
18 exempt to the extent provided in this paragraph. If 75 percent
19 or more of the electricity or steam used at the fixed location
20 is used to operate qualifying machinery or equipment, 100
21 percent of the charges for electricity or steam used at the
22 fixed location are exempt. If less than 75 percent but 50
23 percent or more of the electricity or steam used at the fixed
24 location is used to operate qualifying machinery or equipment,
25 50 percent of the charges for electricity or steam used at the
26 fixed location are exempt. If less than 50 percent of the
27 electricity or steam used at the fixed location is used to
28 operate qualifying machinery or equipment, none of the charges
29 for electricity or steam used at the fixed location are
30 exempt.
31 2. This exemption applies only to industries
16
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 classified under SIC Industry Major Group Numbers 10, 12, 13,
2 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,
3 35, 36, 37, 38, and 39 and Industry Group Number 212. As used
4 in this paragraph, "SIC" means those classifications contained
5 in the Standard Industrial Classification Manual, 1987, as
6 published by the Office of Management and Budget, Executive
7 Office of the President.
8 3. Possession by a seller of a written certification
9 by the purchaser, certifying the purchaser's entitlement to an
10 exemption permitted by this subsection, relieves the seller
11 from the responsibility of collecting the tax on the
12 nontaxable amounts, and the department shall look solely to
13 the purchaser for recovery of such tax if it determines that
14 the purchaser was not entitled to the exemption.
15 4. Such exemption shall be applied as follows:
16 beginning July 1, 2000, 100 percent of the charges for such
17 electricity or steam shall be exempt.
18 (gg) Fair associations.--Also exempt from the tax
19 imposed by this chapter is the sale, use, lease, rental, or
20 grant of a license to use, made directly to or by a fair
21 association, of real or tangible personal property; any charge
22 made by a fair association, or its agents, for parking,
23 admissions, or for temporary parking of vehicles used for
24 sleeping quarters; rentals, subleases, and sublicenses of real
25 or tangible personal property between the owner of the central
26 amusement attraction and any owner of an amusement ride, as
27 those terms are used in ss. 616.15(1)(b) and 616.242(3)(a),
28 for the furnishing of amusement rides at a public fair or
29 exposition; and other transactions of a fair association which
30 are incurred directly by the fair association in the
31 financing, construction, and operation of a fair, exposition,
17
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 or other event or facility that is authorized by s. 616.08. As
2 used in this paragraph, the terms "fair association" and
3 "public fair or exposition" have the same meaning as those
4 terms are defined in s. 616.001. This exemption does not apply
5 to the sale of tangible personal property made by a fair
6 association through an agent or independent contractor; sales
7 of admissions and tangible personal property by a
8 concessionaire, vendor, exhibitor, or licensee; or rentals and
9 subleases of tangible personal property or real property
10 between the owner of the central amusement attraction and a
11 concessionaire, vendor, exhibitor, or licensee, except for the
12 furnishing of amusement rides, which transactions are exempt.
13 (hh) Solar energy systems.--Also exempt are solar
14 energy systems or any component thereof. The Florida Solar
15 Energy Center shall from time to time certify to the
16 department a list of equipment and requisite hardware
17 considered to be a solar energy system or a component thereof.
18 (ii) Nonprofit cooperative hospital laundries.--Also
19 exempt from the tax imposed by this chapter are sales or
20 leases to nonprofit organizations that are incorporated under
21 chapter 617 and which are treated, for federal income tax
22 purposes, as cooperatives under subchapter T of the Internal
23 Revenue Code, whose sole purpose is to offer laundry supplies
24 and services to their members, which members must all be
25 exempt from federal income tax pursuant to s. 501(c)(3) of the
26 Internal Revenue Code.
27 (jj) Complimentary meals.--Also exempt from the tax
28 imposed by this chapter are food or drinks that are furnished
29 as part of a packaged room rate by any person offering for
30 rent or lease any transient living accommodations as described
31 in s. 509.013(4)(a) which are licensed under part I of chapter
18
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 509 and which are subject to the tax under s. 212.03, if a
2 separate charge or specific amount for the food or drinks is
3 not shown. Such food or drinks are considered to be sold at
4 retail as part of the total charge for the transient living
5 accommodations. Moreover, the person offering the
6 accommodations is not considered to be the consumer of items
7 purchased in furnishing such food or drinks and may purchase
8 those items under conditions of a sale for resale.
9 (kk) Nonprofit corporation conducting the correctional
10 work programs.--Products sold pursuant to s. 946.515 by the
11 corporation organized pursuant to part II of chapter 946 are
12 exempt from the tax imposed by this chapter. This exemption
13 applies retroactively to July 1, 1983.
14 (ll) Parent-teacher organizations, parent-teacher
15 associations, and schools having grades K through 12.--
16 1. Sales or leases to parent-teacher organizations and
17 associations the purpose of which is to raise funds for
18 schools that teach grades K through 12 and that are associated
19 with schools having grades K through 12 are exempt from the
20 tax imposed by this chapter.
21 2. Parent-teacher organizations and associations
22 described in subparagraph 1., and schools having grades K
23 through 12, may pay tax to their suppliers on the cost price
24 of school materials and supplies purchased, rented, or leased
25 for resale or rental to students in grades K through 12, of
26 items sold for fundraising purposes, and of items sold through
27 vending machines located on the school premises, in lieu of
28 collecting the tax imposed by this chapter from the purchaser.
29 This paragraph also applies to food or beverages sold through
30 vending machines located in the student lunchroom or dining
31 room of a school having kindergarten through grade 12.
19
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 (mm) Mobile home lot improvements.--Items purchased by
2 developers for use in making improvements to a mobile home lot
3 owned by the developer may be purchased tax-exempt as a sale
4 for resale if made pursuant to a contract that requires the
5 developer to sell a mobile home to a purchaser, place the
6 mobile home on the lot, and make the improvements to the lot
7 for a single lump-sum price. The developer must collect and
8 remit sales tax on the entire lump-sum price.
9 (nn) Veterans Administration.--When a veteran of the
10 armed forces purchases an aircraft, boat, mobile home, motor
11 vehicle, or other vehicle from a dealer pursuant to the
12 provisions of 38 U.S.C. s. 3902(a), or any successor provision
13 of the United States Code, the amount that is paid directly to
14 the dealer by the Veterans Administration is not taxable.
15 However, any portion of the purchase price which is paid
16 directly to the dealer by the veteran is taxable.
17 (oo) Complimentary items.--There is exempt from the
18 tax imposed by this chapter:
19 1. Any food or drink, whether or not cooked or
20 prepared on the premises, provided without charge as a sample
21 or for the convenience of customers by a dealer that primarily
22 sells food product items at retail.
23 2. Any item given to a customer as part of a price
24 guarantee plan related to point-of-sale errors by a dealer
25 that primarily sells food products at retail.
26
27 The exemptions in this paragraph do not apply to businesses
28 with the primary activity of serving prepared meals or
29 alcoholic beverages for immediate consumption.
30 (pp) Donated foods or beverages.--Any food or beverage
31 donated by a dealer that sells food products at retail to a
20
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 food bank or an organization that holds a current exemption
2 from federal corporate income tax pursuant to s. 501(c) of the
3 Internal Revenue Code of 1986, as amended, is exempt from the
4 tax imposed by this chapter.
5 (qq) Racing dogs.--The sale of a racing dog by its
6 owner is exempt if the owner is also the breeder of the
7 animal.
8 (rr) Equipment used in aircraft repair and
9 maintenance.--There shall be exempt from the tax imposed by
10 this chapter replacement engines, parts, and equipment used in
11 the repair or maintenance of qualified aircraft, aircraft of
12 more than 15,000 pounds maximum certified takeoff weight, and
13 rotary wing aircraft of more than 10,300 pounds maximum
14 certified takeoff weight, when such parts or equipment are
15 installed on such aircraft that is being repaired or
16 maintained in this state.
17 (ss) Aircraft sales or leases.--The sale or lease of a
18 qualified aircraft or an aircraft of more than 15,000 pounds
19 maximum certified takeoff weight for use by a common carrier
20 is exempt from the tax imposed by this chapter. As used in
21 this paragraph, "common carrier" means an airline operating
22 under Federal Aviation Administration regulations contained in
23 Title 14, chapter I, part 121 or part 129 of the Code of
24 Federal Regulations.
25 (tt) Nonprofit water systems.--Sales or leases to a
26 not-for-profit corporation which holds a current exemption
27 from federal income tax under s. 501(c)(4) or (12) of the
28 Internal Revenue Code, as amended, are exempt from the tax
29 imposed by this chapter if the sole or primary function of the
30 corporation is to construct, maintain, or operate a water
31 system in this state.
21
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 (uu) Library cooperatives.--Sales or leases to library
2 cooperatives certified under s. 257.41(2) are exempt from the
3 tax imposed by this chapter.
4 (vv) Advertising agencies.--
5 1. As used in this paragraph, the term "advertising
6 agency" means any firm that is primarily engaged in the
7 business of providing advertising materials and services to
8 its clients.
9 2. The sale of advertising services by an advertising
10 agency to a client is exempt from the tax imposed by this
11 chapter. Also exempt from the tax imposed by this chapter are
12 items of tangible personal property such as photographic
13 negatives and positives, videos, films, galleys, mechanicals,
14 veloxes, illustrations, digital audiotapes, analog tapes,
15 printed advertisement copies, compact discs for the purpose of
16 recording, digital equipment, and artwork and the services
17 used to produce those items if the items are:
18 a. Sold to an advertising agency that is acting as an
19 agent for its clients pursuant to contract, and are created
20 for the performance of advertising services for the clients;
21 b. Produced, fabricated, manufactured, or otherwise
22 created by an advertising agency for its clients, and are used
23 in the performance of advertising services for the clients; or
24 c. Sold by an advertising agency to its clients in the
25 performance of advertising services for the clients, whether
26 or not the charges for these items are marked up or separately
27 stated.
28
29 The exemption provided by this subparagraph does not apply
30 when tangible personal property such as film, paper, and
31 videotapes is purchased to create items such as photographic
22
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 negatives and positives, videos, films, galleys, mechanicals,
2 veloxes, illustrations, and artwork that are sold to an
3 advertising agency or produced in-house by an advertising
4 agency on behalf of its clients.
5 3. The items exempted from tax under subparagraph 2.
6 and the creative services used by an advertising agency to
7 design the advertising for promotional goods such as displays,
8 display containers, exhibits, newspaper inserts, brochures,
9 catalogues, direct mail letters or flats, shirts, hats, pens,
10 pencils, key chains, or other printed goods or materials are
11 not subject to tax. However, when such promotional goods are
12 produced or reproduced for distribution, tax applies to the
13 sales price charged to the client for such promotional goods.
14 4. For items purchased by an advertising agency and
15 exempt from tax under this paragraph, possession of an
16 exemption certificate from the advertising agency certifying
17 the agency's entitlement to exemption relieves the vendor of
18 the responsibility of collecting the tax on the sale of such
19 items to the advertising agency, and the department shall look
20 solely to the advertising agency for recovery of tax if it
21 determines that the advertising agency was not entitled to the
22 exemption.
23 5. The exemptions provided by this paragraph apply
24 retroactively, except that all taxes that have been collected
25 must be remitted, and taxes that have been remitted before
26 July 1, 1999, on transactions that are subject to exemption
27 under this paragraph are not subject to refund.
28 6. The department may adopt rules that interpret or
29 define the provisions of these exemptions and provide examples
30 regarding the application of these exemptions.
31 (ww) Bullion.--The sale of gold, silver, or platinum
23
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 bullion, or any combination thereof, in a single transaction
2 is exempt if the sales price exceeds $500. The dealer must
3 maintain proper documentation, as prescribed by rule of the
4 department, to identify that portion of a transaction which
5 involves the sale of gold, silver, or platinum bullion and is
6 exempt under this paragraph.
7 (xx) Certain repair and labor charges.--
8 1. Subject to the provisions of subparagraphs 2. and
9 3., there is exempt from the tax imposed by this chapter all
10 labor charges for the repair of, and parts and materials used
11 in the repair of and incorporated into, industrial machinery
12 and equipment which is used for the manufacture, processing,
13 compounding, production, or preparation for shipping of items
14 of tangible personal property at a fixed location within this
15 state.
16 2. This exemption applies only to industries
17 classified under SIC Industry Major Group Numbers 10, 12, 13,
18 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,
19 35, 36, 37, 38, and 39 and Industry Group Number 212. As used
20 in this subparagraph, "SIC" means those classifications
21 contained in the Standard Industrial Classification Manual,
22 1987, as published by the Office of Management and Budget,
23 Executive Office of the President.
24 3. This exemption shall be applied as follows:
25 a. Beginning July 1, 2000, 50 percent of such charges
26 for repair parts and labor shall be exempt.
27 b. Beginning July 1, 2001, 75 percent of such charges
28 for repair parts and labor shall be exempt.
29 c. Beginning July 1, 2002, 100 percent of such charges
30 for repair parts and labor shall be exempt.
31 (yy) Film and other printing supplies.--Also exempt
24
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 are the following materials purchased, produced, or created by
2 businesses classified under SIC Industry Numbers 275, 276,
3 277, 278, or 279 for use in producing graphic matter for sale:
4 film, photographic paper, dyes used for embossing and
5 engraving, artwork, typography, lithographic plates, and
6 negatives. As used in this paragraph, "SIC" means those
7 classifications contained in the Standard Industrial
8 Classification Manual, 1987, as published by the Office of
9 Management and Budget, Executive Office of the President.
10 (zz) People-mover systems.--People-mover systems, and
11 parts thereof, which are purchased or manufactured by
12 contractors employed either directly by or as agents for the
13 United States Government, the state, a county, a municipality,
14 a political subdivision of the state, or the public operator
15 of a public-use airport as defined by s. 332.004(14) are
16 exempt from the tax imposed by this chapter when the systems
17 or parts go into or become part of publicly owned facilities.
18 In the case of contractors who manufacture and install such
19 systems and parts, this exemption extends to the purchase of
20 component parts and all other manufacturing and fabrication
21 costs. The department may provide a form to be used by
22 contractors to provide to suppliers of people-mover systems or
23 parts to certify the contractors' eligibility for the
24 exemption provided under this paragraph. As used in this
25 paragraph, "people-mover systems" includes wheeled passenger
26 vehicles and related control and power distribution systems
27 that are part of a transportation system for use by the
28 general public, regardless of whether such vehicles are
29 operator-controlled or driverless, self-propelled or propelled
30 by external power and control systems, or conducted on roads,
31 rails, guidebeams, or other permanent structures that are an
25
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 integral part of such transportation system. "Related control
2 and power distribution systems" includes any electrical or
3 electronic control or signaling equipment, but does not
4 include the embedded wiring, conduits, or cabling used to
5 transmit electrical or electronic signals among such control
6 equipment, power distribution equipment, signaling equipment,
7 and wheeled vehicles.
8 (aaa) Florida Fire and Emergency Services
9 Foundation.--Sales or leases to the Florida Fire and Emergency
10 Services Foundation are exempt from the tax imposed by this
11 chapter.
12 (bbb) Railroad roadway materials.--Also exempt from
13 the tax imposed by this chapter are railroad roadway materials
14 used in the construction, repair, or maintenance of railways.
15 Railroad roadway materials shall include rails, ties,
16 ballasts, communication equipment, signal equipment, power
17 transmission equipment, and any other track materials.
18 (ccc) Equipment, machinery, and other materials for
19 renewable energy technologies.--
20 1. As used in this paragraph, the term:
21 a. "Biodiesel" means the mono-alkyl esters of
22 long-chain fatty acids derived from plant or animal matter for
23 use as a source of energy and meeting the specifications for
24 biodiesel and biodiesel blends with petroleum products as
25 adopted by the Department of Agriculture and Consumer
26 Services. Biodiesel may refer to biodiesel blends designated
27 BXX, where XX represents the volume percentage of biodiesel
28 fuel in the blend.
29 b. "Ethanol" means nominally anhydrous denatured
30 alcohol produced by the fermentation of plant sugars meeting
31 the specifications for fuel ethanol and fuel ethanol blends
26
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 with petroleum products as adopted by the Department of
2 Agriculture and Consumer Services. Ethanol may refer to fuel
3 ethanol blends designated EXX, where XX represents the volume
4 percentage of fuel ethanol in the blend.
5 c. "Hydrogen fuel cells" means equipment using
6 hydrogen or a hydrogen-rich fuel in an electrochemical process
7 to generate energy, electricity, or the transfer of heat.
8 2. The sale or use of the following in the state is
9 exempt from the tax imposed by this chapter:
10 a. Hydrogen-powered vehicles, materials incorporated
11 into hydrogen-powered vehicles, and hydrogen-fueling stations,
12 up to a limit of $2 million in tax each state fiscal year for
13 all taxpayers.
14 b. Commercial stationary hydrogen fuel cells, up to a
15 limit of $1 million in tax each state fiscal year for all
16 taxpayers.
17 c. Materials used in the distribution of biodiesel
18 (B10-B100) and ethanol (E10-100), including fueling
19 infrastructure, transportation, and storage, up to a limit of
20 $1 million in tax each state fiscal year for all taxpayers.
21 Gasoline fueling station pump retrofits for ethanol (E10-E100)
22 distribution qualify for the exemption provided in this
23 sub-subparagraph.
24 3. The Department of Environmental Protection shall
25 provide to the department a list of items eligible for the
26 exemption provided in this paragraph.
27 4.a. The exemption provided in this paragraph shall be
28 available to a purchaser only through a refund of previously
29 paid taxes.
30 b. To be eligible to receive the exemption provided in
31 this paragraph, a purchaser shall file an application with the
27
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 Department of Environmental Protection. The application shall
2 be developed by the Department of Environmental Protection, in
3 consultation with the department, and shall require:
4 (I) The name and address of the person claiming the
5 refund.
6 (II) A specific description of the purchase for which
7 a refund is sought, including, when applicable, a serial
8 number or other permanent identification number.
9 (III) The sales invoice or other proof of purchase
10 showing the amount of sales tax paid, the date of purchase,
11 and the name and address of the sales tax dealer from whom the
12 property was purchased.
13 (IV) A sworn statement that the information provided
14 is accurate and that the requirements of this paragraph have
15 been met.
16 c. Within 30 days after receipt of an application, the
17 Department of Environmental Protection shall review the
18 application and shall notify the applicant of any
19 deficiencies. Upon receipt of a completed application, the
20 Department of Environmental Protection shall evaluate the
21 application for exemption and issue a written certification
22 that the applicant is eligible for a refund or issue a written
23 denial of such certification within 60 days after receipt of
24 the application. The Department of Environmental Protection
25 shall provide the department with a copy of each certification
26 issued upon approval of an application.
27 d. Each certified applicant shall be responsible for
28 forwarding a certified copy of the application and copies of
29 all required documentation to the department within 6 months
30 after certification by the Department of Environmental
31 Protection.
28
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 e. The provisions of s. 212.095 do not apply to any
2 refund application made pursuant to this paragraph. A refund
3 approved pursuant to this paragraph shall be made within 30
4 days after formal approval by the department.
5 f. The department may adopt all rules pursuant to ss.
6 120.536(1) and 120.54 to administer this paragraph, including
7 rules establishing forms and procedures for claiming this
8 exemption.
9 g. The Department of Environmental Protection shall be
10 responsible for ensuring that the total amounts of the
11 exemptions authorized do not exceed the limits as specified in
12 subparagraph 2.
13 5. The Department of Environmental Protection shall
14 determine and publish on a regular basis the amount of sales
15 tax funds remaining in each fiscal year.
16 6. This paragraph expires July 1, 2010.
17 (ddd) Advertising materials distributed free of charge
18 by mail in an envelope.--Likewise exempt are materials
19 consisting exclusively of advertisements, such as individual
20 coupons or other individual cards, sheets, or pages of printed
21 advertising, that are distributed free of charge by mail in an
22 envelope for 10 or more persons on a monthly, bimonthly, or
23 other regular basis.
24 (eee) Certain delivery charges.--Separately stated
25 charges that can be avoided at the option of the purchaser for
26 the delivery, inspection, placement, or removal from packaging
27 or shipping materials of furniture or appliances by the
28 selling dealer at the premises of the purchaser or the removal
29 of similar items from the premises of the purchaser are
30 exempt. If any charge for delivery, inspection, placement, or
31 removal of furniture or appliances includes the modification,
29
1:13 PM 04/19/07 s2482c-ft26-r3t
Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2482
Barcode 735490
1 assembly, or construction of such furniture or appliances,
2 then all of the charges are taxable.
3
4
5 ==== D I R E C T O R Y C L A U S E A M E N D M E N T ====
6 And the directory clause is amended as follows:
7 On page 25, lines 10 and 11, delete those lines
8
9 and insert: subsection (5) of section 212.08, Florida
10 Statutes, are amended, and paragraph (eee) is added to
11 subsection (7) of that section, to read:
12
13
14 ================ T I T L E A M E N D M E N T ===============
15 And the title is amended as follows:
16 On page 2, line 22, after the semicolon,
17
18 insert:
19 providing a sales tax exemption for certain
20 delivery charges;
21
22
23
24
25
26
27
28
29
30
31
30
1:13 PM 04/19/07 s2482c-ft26-r3t