| 1 | A bill to be entitled |
| 2 | An act relating to the tax on sales, use, and other |
| 3 | transactions; amending s. 212.05, F.S.; reducing the tax |
| 4 | rate for sales and use of aircraft; revising the criteria |
| 5 | for the sales and use tax exemption for sales of aircraft |
| 6 | removed from the state; deleting a provision authorizing a |
| 7 | return of certain aircraft to the state for repairs |
| 8 | without violating any law or incurring any tax liability |
| 9 | under certain circumstances; amending s. 212.06, F.S.; |
| 10 | providing a presumption that certain aircraft are not |
| 11 | purchased for use in this state under certain |
| 12 | circumstances; providing an effective date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Paragraph (a) of subsection (1) of section |
| 17 | 212.05, Florida Statutes, is amended to read: |
| 18 | 212.05 Sales, storage, use tax.--It is hereby declared to |
| 19 | be the legislative intent that every person is exercising a |
| 20 | taxable privilege who engages in the business of selling |
| 21 | tangible personal property at retail in this state, including |
| 22 | the business of making mail order sales, or who rents or |
| 23 | furnishes any of the things or services taxable under this |
| 24 | chapter, or who stores for use or consumption in this state any |
| 25 | item or article of tangible personal property as defined herein |
| 26 | and who leases or rents such property within the state. |
| 27 | (1) For the exercise of such privilege, a tax is levied on |
| 28 | each taxable transaction or incident, which tax is due and |
| 29 | payable as follows: |
| 30 | (a)1.a. At the rate of 6 percent of the sales price of |
| 31 | each item or article of tangible personal property, except that |
| 32 | the tax rate on sales of aircraft shall be 3 percent of the |
| 33 | sales price of the aircraft, when sold at retail in this state, |
| 34 | computed on each taxable sale for the purpose of remitting the |
| 35 | amount of tax due the state, and including each and every retail |
| 36 | sale. |
| 37 | b. Each occasional or isolated sale of an aircraft, boat, |
| 38 | mobile home, or motor vehicle of a class or type which is |
| 39 | required to be registered, licensed, titled, or documented in |
| 40 | this state or by the United States Government shall be subject |
| 41 | to tax at the rate provided in this paragraph. The department |
| 42 | shall by rule adopt any nationally recognized publication for |
| 43 | valuation of used motor vehicles as the reference price list for |
| 44 | any used motor vehicle which is required to be licensed pursuant |
| 45 | to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any |
| 46 | party to an occasional or isolated sale of such a vehicle |
| 47 | reports to the tax collector a sales price which is less than 80 |
| 48 | percent of the average loan price for the specified model and |
| 49 | year of such vehicle as listed in the most recent reference |
| 50 | price list, the tax levied under this paragraph shall be |
| 51 | computed by the department on such average loan price unless the |
| 52 | parties to the sale have provided to the tax collector an |
| 53 | affidavit signed by each party, or other substantial proof, |
| 54 | stating the actual sales price. Any party to such sale who |
| 55 | reports a sales price less than the actual sales price commits |
| 56 | is guilty of a misdemeanor of the first degree, punishable as |
| 57 | provided in s. 775.082 or s. 775.083. The department shall |
| 58 | collect or attempt to collect from such party any delinquent |
| 59 | sales taxes. In addition, such party shall pay any tax due and |
| 60 | any penalty and interest assessed plus a penalty equal to twice |
| 61 | the amount of the additional tax owed. Notwithstanding any other |
| 62 | provision of law, the Department of Revenue may waive or |
| 63 | compromise any penalty imposed pursuant to this subparagraph. |
| 64 | 2. This paragraph does not apply to the sale of a boat or |
| 65 | aircraft by or through a registered dealer under this chapter to |
| 66 | a purchaser who, at the time of taking delivery, is a |
| 67 | nonresident of this state, does not make his or her permanent |
| 68 | place of abode in this state, and is not engaged in carrying on |
| 69 | in this state any employment, trade, business, or profession in |
| 70 | which the boat or aircraft will be used in this state, or is a |
| 71 | corporation none of the officers or directors of which is a |
| 72 | resident of, or makes his or her permanent place of abode in, |
| 73 | this state, or is a noncorporate entity that has no individual |
| 74 | vested with authority to participate in the management, |
| 75 | direction, or control of the entity's affairs who is a resident |
| 76 | of, or makes his or her permanent abode in, this state. For |
| 77 | purposes of this exemption, either a registered dealer acting on |
| 78 | his or her own behalf as seller, a registered dealer acting as |
| 79 | broker on behalf of a seller, or a registered dealer acting as |
| 80 | broker on behalf of the purchaser may be deemed to be the |
| 81 | selling dealer. This exemption shall not be allowed unless: |
| 82 | a. The purchaser removes a qualifying boat, as described |
| 83 | in sub-subparagraph f., from the state within 90 days after the |
| 84 | date of purchase or the purchaser removes a nonqualifying boat |
| 85 | or an aircraft from this state within 10 days after the date of |
| 86 | purchase or, when the boat or aircraft is repaired or altered, |
| 87 | within 20 days after completion of the repairs or alterations; |
| 88 | b. The purchaser, within 30 days from the date of |
| 89 | departure, or in the case of an aircraft purchase within 30 days |
| 90 | after the date of purchase, shall provide the department with |
| 91 | written proof that the purchaser licensed, registered, titled, |
| 92 | or documented the boat or aircraft outside the state. If such |
| 93 | written proof is unavailable, within 30 days the purchaser shall |
| 94 | provide proof that the purchaser applied for such license, |
| 95 | title, registration, or documentation. The purchaser shall |
| 96 | forward to the department proof of title, license, registration, |
| 97 | or documentation upon receipt. |
| 98 | c. The purchaser, within 10 days of removing the boat or |
| 99 | aircraft from the state Florida, shall furnish the department |
| 100 | with proof of removal in the form of receipts for fuel, dockage, |
| 101 | or slippage, tie-down, or hangaring from outside the state of |
| 102 | Florida. The information so provided must clearly and |
| 103 | specifically identify the boat or aircraft; |
| 104 | d. The selling dealer, within 5 days of the date of sale, |
| 105 | shall provide to the department a copy of the sales invoice, |
| 106 | closing statement, bills of sale, and the original affidavit |
| 107 | signed by the purchaser attesting that he or she has read the |
| 108 | provisions of this section; |
| 109 | e. The seller makes a copy of the affidavit a part of his |
| 110 | or her record for as long as required by s. 213.35; and |
| 111 | f. Unless the nonresident purchaser of a boat of 5 net |
| 112 | tons of admeasurement or larger intends to remove the boat from |
| 113 | this state within 10 days after the date of purchase or when the |
| 114 | boat is repaired or altered, within 20 days after completion of |
| 115 | the repairs or alterations, the nonresident purchaser shall |
| 116 | apply to the selling dealer for a decal which authorizes 90 days |
| 117 | after the date of purchase for removal of the boat. The |
| 118 | department is authorized to issue decals in advance to dealers. |
| 119 | The number of decals issued in advance to a dealer shall be |
| 120 | consistent with the volume of the dealer's past sales of boats |
| 121 | which qualify under this sub-subparagraph. The selling dealer or |
| 122 | his or her agent shall mark and affix the decals to qualifying |
| 123 | boats in the manner prescribed by the department, prior to |
| 124 | delivery of the boat. |
| 125 | (I) The department is hereby authorized to charge dealers |
| 126 | a fee sufficient to recover the costs of decals issued. |
| 127 | (II) The proceeds from the sale of decals shall will be |
| 128 | deposited into the Administrative Trust Fund administrative |
| 129 | trust fund. |
| 130 | (III) Decals shall display information to identify the |
| 131 | boat as a qualifying boat under this sub-subparagraph, |
| 132 | including, but not limited to, the decal's date of expiration. |
| 133 | (IV) The department is authorized to require dealers who |
| 134 | purchase decals to file reports with the department and may |
| 135 | prescribe all necessary records by rule. All such records are |
| 136 | subject to inspection by the department. |
| 137 | (V) Any dealer or his or her agent who issues a decal |
| 138 | falsely, fails to affix a decal, mismarks the expiration date of |
| 139 | a decal, or fails to properly account for decals shall will be |
| 140 | considered prima facie to have committed a fraudulent act to |
| 141 | evade the tax and shall will be liable for payment of the tax |
| 142 | plus a mandatory penalty of 200 percent of the tax, and shall be |
| 143 | liable for fine and punishment as provided by law for a |
| 144 | conviction of a misdemeanor of the first degree, as provided in |
| 145 | s. 775.082 or s. 775.083. |
| 146 | (VI) Any nonresident purchaser of a boat who removes a |
| 147 | decal prior to permanently removing the boat from the state, or |
| 148 | defaces, changes, modifies, or alters a decal in a manner |
| 149 | affecting its expiration date prior to its expiration, or who |
| 150 | causes or allows the same to be done by another, shall will be |
| 151 | considered prima facie to have committed a fraudulent act to |
| 152 | evade the tax and shall will be liable for payment of the tax |
| 153 | plus a mandatory penalty of 200 percent of the tax, and shall be |
| 154 | liable for fine and punishment as provided by law for a |
| 155 | conviction of a misdemeanor of the first degree, as provided in |
| 156 | s. 775.082 or s. 775.083. |
| 157 | (VII) The department is authorized to adopt rules |
| 158 | necessary to administer and enforce this subparagraph and to |
| 159 | publish the necessary forms and instructions. |
| 160 | (VIII) The department is hereby authorized to adopt |
| 161 | emergency rules pursuant to s. 120.54(4) to administer and |
| 162 | enforce the provisions of this subparagraph. |
| 163 |
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| 164 | If the purchaser fails to remove the qualifying boat from this |
| 165 | state within 90 days after purchase or a nonqualifying boat or |
| 166 | an aircraft from this state within 10 days after purchase or, |
| 167 | when the boat or aircraft is repaired or altered, within 20 days |
| 168 | after completion of such repairs or alterations, or permits the |
| 169 | boat or aircraft to return to this state within 6 months from |
| 170 | the date of departure, or if the purchaser fails to furnish the |
| 171 | department with any of the documentation required by this |
| 172 | subparagraph within the prescribed time period, the purchaser |
| 173 | shall be liable for use tax on the cost price of the boat or |
| 174 | aircraft and, in addition thereto, payment of a penalty to the |
| 175 | Department of Revenue equal to the tax payable. This penalty |
| 176 | shall be in lieu of the penalty imposed by s. 212.12(2) and is |
| 177 | mandatory and shall not be waived by the department. The 90-day |
| 178 | period following the sale of a qualifying boat tax-exempt to a |
| 179 | nonresident may not be tolled for any reason. Notwithstanding |
| 180 | other provisions of this paragraph to the contrary, an aircraft |
| 181 | purchased in this state under the provisions of this paragraph |
| 182 | may be returned to this state for repairs within 6 months after |
| 183 | the date of its departure without being in violation of the law |
| 184 | and without incurring liability for the payment of tax or |
| 185 | penalty on the purchase price of the aircraft if the aircraft is |
| 186 | removed from this state within 20 days after the completion of |
| 187 | the repairs and if such removal can be demonstrated by invoices |
| 188 | for fuel, tie-down, hangar charges issued by out-of-state |
| 189 | vendors or suppliers, or similar documentation. |
| 190 | Section 2. Subsection (8) of section 212.06, Florida |
| 191 | Statutes, is amended to read: |
| 192 | 212.06 Sales, storage, use tax; collectible from dealers; |
| 193 | "dealer" defined; dealers to collect from purchasers; |
| 194 | legislative intent as to scope of tax.-- |
| 195 | (8)(a) Use tax shall will apply and be due on tangible |
| 196 | personal property imported or caused to be imported into this |
| 197 | state for use, consumption, distribution, or storage to be used |
| 198 | or consumed in this state; provided, however, that, except as |
| 199 | provided in paragraph (b), it shall be presumed that tangible |
| 200 | personal property used in another state, territory of the United |
| 201 | States, or the District of Columbia for 6 months or longer |
| 202 | before being imported into this state was not purchased for use |
| 203 | in this state. It shall also be presumed that an aircraft used |
| 204 | in another state, territory of the United States, or the |
| 205 | District of Columbia for less than 6 months before being |
| 206 | imported into this state was not purchased for use in this state |
| 207 | if the aircraft is licensed, registered, titled, or documented |
| 208 | outside the state. The rental or lease of tangible personal |
| 209 | property which is used or stored in this state shall be taxable |
| 210 | without regard to its prior use or tax paid on purchase outside |
| 211 | this state. |
| 212 | (b) The presumption that tangible personal property used |
| 213 | in another state, territory of the United States, or the |
| 214 | District of Columbia for 6 months or longer before being |
| 215 | imported into this state was not purchased for use in this state |
| 216 | does not apply to any boat for which a saltwater fishing license |
| 217 | fee is required to be paid pursuant to s. 372.57(7), either |
| 218 | directly or indirectly, for the purpose of taking, attempting to |
| 219 | take, or possessing any saltwater fish for noncommercial |
| 220 | purposes. Use tax shall apply and be due on such a boat as |
| 221 | provided in this paragraph, and proof of payment of such tax |
| 222 | must be presented prior to the first such licensure of the boat, |
| 223 | registration of the boat pursuant to chapter 328, and titling of |
| 224 | the boat pursuant to chapter 328. A boat that is first licensed |
| 225 | within 1 year after purchase shall be subject to use tax on the |
| 226 | full amount of the purchase price; a boat that is first licensed |
| 227 | in the second year after purchase shall be subject to use tax on |
| 228 | 90 percent of the purchase price; a boat that is first licensed |
| 229 | in the third year after purchase shall be subject to use tax on |
| 230 | 80 percent of the purchase price; a boat that is first licensed |
| 231 | in the fourth year after purchase shall be subject to use tax on |
| 232 | 70 percent of the purchase price; a boat that is first licensed |
| 233 | in the fifth year after purchase shall be subject to use tax on |
| 234 | 60 percent of the purchase price; and a boat that is first |
| 235 | licensed in the sixth year after purchase, or later, shall be |
| 236 | subject to use tax on 50 percent of the purchase price. If the |
| 237 | purchaser fails to provide the purchase invoice on such boat, |
| 238 | the fair market value of the boat at the time of importation |
| 239 | into this state shall be used to compute the tax. |
| 240 | Section 3. This act shall take effect July 1, 2008. |