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A bill to be entitled

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An act relating to tax exemptions for nonprofit

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cooperative hospital laundries; amending s. 212.08, F.S.;

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requiring a member of a nonprofit cooperative to

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immediately divest itself of interest in the cooperative

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if it looses its nonprofit status; providing that the

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provision of emergency services to a nonmember hospital

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does not invalidate the certificate of tax exemption;

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providing an effective date.

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

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     Section 1.  Paragraph (ii) of subsection (7) of section

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212.08, Florida Statutes, is amended to read:

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     212.08  Sales, rental, use, consumption, distribution, and

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

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

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storage to be used or consumed in this state of the following are

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hereby specifically exempt from the tax imposed by this chapter.

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

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entity by this chapter do not inure to any transaction that is

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otherwise taxable under this chapter when payment is made by a

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representative or employee of the entity by any means, including,

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but not limited to, cash, check, or credit card, even when that

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representative or employee is subsequently reimbursed by the

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entity. In addition, exemptions provided to any entity by this

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subsection do not inure to any transaction that is otherwise

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taxable under this chapter unless the entity has obtained a sales

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tax exemption certificate from the department or the entity

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obtains or provides other documentation as required by the

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department. Eligible purchases or leases made with such a

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certificate must be in strict compliance with this subsection and

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departmental rules, and any person who makes an exempt purchase

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with a certificate that is not in strict compliance with this

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

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department may adopt rules to administer this subsection.

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     (ii)  Nonprofit cooperative hospital laundries.--Also exempt

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from the tax imposed by this chapter are sales or leases to

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nonprofit organizations that are incorporated under chapter 617

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and which are treated, for federal income tax purposes, as

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cooperatives under subchapter T of the Internal Revenue Code,

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whose sole purpose is to offer laundry supplies and services to

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their members who, which members must all be exempt from federal

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income tax pursuant to s. 501(c)(3) of the Internal Revenue Code.

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A member of a nonprofit cooperative hospital laundry whose

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Internal Revenue Code status changes must, within 90 days after

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such change, divest all interest or participation in the

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cooperative. The provision of laundry supplies and services to a

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nonmember hospital pursuant to a declaration of an emergency

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under s. 252.36(2) and a written emergency plan of operation

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executed by the members of the cooperative does not invalidate or

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cause the denial of the cooperative's certificate of exemption.

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     Section 2.  This act shall take effect July 1, 2008.