1

A bill to be entitled

2

An act relating to the tax exemption for nonprofit

3

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

4

requiring a member of a nonprofit cooperative to

5

immediately divest itself of participation in the

6

cooperative if it loses its nonprofit status; providing

7

that the provision of emergency services to a nonmember

8

business does not invalidate the certificate of tax

9

exemption; providing an effective date.

10

11

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

12

13

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

14

212.08, Florida Statutes, is amended to read:

15

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

16

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

17

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

18

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

19

hereby specifically exempt from the tax imposed by this chapter.

20

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

21

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

22

otherwise taxable under this chapter when payment is made by a

23

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

24

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

25

representative or employee is subsequently reimbursed by the

26

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

27

subsection do not inure to any transaction that is otherwise

28

taxable under this chapter unless the entity has obtained a sales

29

tax exemption certificate from the department or the entity

30

obtains or provides other documentation as required by the

31

department. Eligible purchases or leases made with such a

32

certificate must be in strict compliance with this subsection and

33

departmental rules, and any person who makes an exempt purchase

34

with a certificate that is not in strict compliance with this

35

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

36

department may adopt rules to administer this subsection.

37

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

38

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

39

nonprofit organizations that are incorporated under chapter 617

40

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

41

cooperatives under subchapter T of the Internal Revenue Code,

42

whose sole purpose is to offer laundry supplies and services to

43

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

44

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

45

A member of a nonprofit cooperative hospital laundry whose

46

Internal Revenue Code status changes must, within 90 days after

47

such change, divest all participation in the cooperative. The

48

provision of laundry supplies and services to a nonmember

49

business pursuant to a declaration of an emergency under s.

50

252.36(2) and a written emergency plan of operation executed by

51

the members of the cooperative does not invalidate or cause the

52

denial of the cooperative's certificate of exemption.

53

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