HB 1163

1	A bill to be entitled
2	An act relating to review of exemptions and exclusions
3	from the tax on sales, use, and other transactions;
4	amending s. 11.903, F.S.; expanding purposes of the Joint
5	Legislative Sunset Committee to conform to changes made by
6	this act; creating s. 11.9035, F.S.; providing a short
7	title; providing additional responsibilities of the Joint
8	Legislative Sunset Committee for the purpose of reviewing
9	exemptions from the general state sales and use tax and
10	exclusions of sales of services from such taxation;
11	providing for meetings and governance by joint rules;
12	providing definitions; specifying powers and duties;
13	providing for reports; requiring continuing periodic
14	review of sales tax exemptions and exclusions; providing
15	for legislative proposals; amending s. 212.08, F.S.;
16	providing for future elimination of all sales, rental,
17	use, consumption, distribution, and storage tax exemptions
18	under the section except those for general groceries,
19	medical, guide dogs for the blind, and household fuels;
20	repealing s. 212.051, F.S., relating to exemption for
21	equipment, machinery, and other materials for pollution
22	control; repealing s. 212.052, F.S., relating to exemption
23	for research or development costs; repealing s. 212.0598,
24	F.S., relating to partial exemption for air carriers'
25	maintenance bases; repealing s. 212.0602, F.S., relating
26	to a limited exemption for education; repealing s.
27	212.0801, F.S., relating to an exemption for qualified
28	aircraft; repealing s. 212.0821, F.S., relating to
29	legislative intent that political subdivisions and public
30	libraries use sales tax exemption certificates for certain
31	purchases; repealing s. 212.09, F.S., relating to trade-
32	ins deducted; repealing s. 212.096, F.S., relating to
33	credit for job creation in enterprise zones; repealing s.
34	212.097, F.S., relating to Urban High Crime area job tax
35	credit; repealing s. 212.098, F.S., relating to rural job
36	tax credit; providing for future repeal of certain
37	provisions of ss. 212.02, 212.03, 212.031, 212.04, 212.05,
38	212.0506, 212.06, 212.0601, 212.07, 212.081, 212.12,
39	212.20, and 376.75, F.S., relating to various sales and
40	use tax exemptions, exclusions, and credits; providing
41	exceptions; providing effective dates.
42
43	WHEREAS, Florida's current budget difficulties require the
44	state to consider innovative solutions in addressing the long-
45	term viability of the state's tax structure, and
46	WHEREAS, the state's tax structure should treat individuals
47	fairly and equitably, imposing similar tax burdens on people in
48	similar circumstances, and
49	WHEREAS, exemptions to the state's sales tax should serve
50	an important state interest and should be uniform in the effect
51	on citizens of the state, and
52	WHEREAS, the Legislature finds that a periodic sunset and
53	review of all sales tax exemptions will serve to restore
54	fairness to the state's tax structure, NOW, THEREFORE,
55
56	Be It Enacted by the Legislature of the State of Florida:
57
58	Section 1.  Subsection (2) of section 11.903, Florida
59	Statutes, is amended to read:
60	11.903  Legislative Sunset Review Committees and the Joint
61	Legislative Sunset Committee.--
62	(2)  The Senate and House of Representatives shall appoint
63	a Joint Legislative Sunset Committee for the purposes of
64	overseeing the agency review process required by ss. 11.901-
65	11.920 and the review of exemptions from the tax on sales, use,
66	and other transactions required by s. 11.9035 and of making
67	recommendations to the Legislature regarding such reviews.
68	Section 2.  Section 11.9035, Florida Statutes, is created
69	to read:
70	11.9035  Sales and use tax exemption and exclusion
71	review.--
72	(1)  SHORT TITLE.--This section may be cited as the
73	"Florida Sales Tax Fairness Restoration Act."
74	(2)  SALES TAX EXEMPTIONS REVIEW.--In addition to the
75	review required under ss. 11.901-11.920, the Joint Legislative
76	Sunset Committee shall conduct comprehensive, periodic reviews
77	of all exemptions from the general state sales and use tax and
78	exclusions of sales of services from such taxation as provided
79	by this section.
80	(3)  PROCEDURES.--In addition to other meeting requirements
81	specified by ss. 11.901-11.920, the committee for each review
82	cycle shall have its initial meeting no later than September 1,
83	2009, and thereafter as necessary at the call of the chair at
84	the time and place designated by the chair. A quorum shall
85	consist of a majority of the committee members from each house.
86	During the interim between regular sessions, the committee may
87	conduct its meetings through teleconferences or other similar
88	means.
89	(4)  RULES.--For purposes of this section, the committee
90	shall be governed by joint rules adopted by the Legislature
91	pursuant to authority to adopt rules under s. 4, Art. III of the
92	State Constitution.
93	(5)  DEFINITIONS.--As used in this section, the term:
94	(a)  "General state sales and use tax" means the sales and
95	use tax imposed under chapter 212.
96	(b)  "Service" means a service within any of the following
97	service categories under the North American Industry
98	Classification System (NAICS):
99	1.  Personal services.
100	2.  Professional services.
101	3.  Business services.
102	4.  Financial services.
103	5.  Media services.
104	6.  Entertainment and sports services.
105	7.  Construction services.
106	8.  Institutional services.
107	9.  Transportation services.
108	10.  Health services.
109	(6)  POWERS AND DUTIES.--The committee shall have the power
110	and duty to conduct a comprehensive review of all current and
111	future exemptions from the general state sales and use tax and
112	the exclusion of sales of services from such taxation. The
113	committee shall establish criteria by which each exemption or
114	exclusion shall be evaluated. In developing the evaluation
115	criteria, the committee shall consider the following principles
116	of taxation:
117	(a)  Equity.--The Florida tax system should treat
118	individuals equitably. It should impose similar tax burdens on
119	people in similar circumstances and should minimize
120	regressivity.
121	(b)  Simplicity, transparency, and compliance.--The Florida
122	tax system should facilitate taxpayer compliance. It should be
123	simple and easy to understand and should provide visibility and
124	awareness of the taxes being paid.
125	(c)  Neutrality.--The Florida tax system should affect
126	taxpayers uniformly and consistently. The primary purpose of any
127	tax should be to raise revenue for appropriate governmental
128	functions, rather than to influence business and personal
129	decisions.
130	(d)  Stability.--The Florida tax system should produce
131	revenues in a stable and reliable manner that is sufficient to
132	fund appropriate governmental functions and expenditures.
133	(e)  Integration.--The Florida tax system should balance
134	the need for integration of federal, state, and local taxation.
135	(f)  Public purpose.--Any sales and use tax exemption or
136	exclusion under the Florida tax system should be based upon a
137	determination that the exemption or exclusion promotes an
138	important state interest and should benefit citizens as equally
139	as possible.
140	(7)  FINDINGS AND RECOMMENDATIONS.--In conducting its
141	review of each exemption from the general state sales and use
142	tax or the exclusion of the sale of a service from such
143	taxation, the committee shall make findings of fact and
144	recommend whether the exemption should be retained, modified, or
145	repealed or whether the exclusion should be retained or
146	eliminated. Each recommendation must be made by majority vote of
147	the committee members from each house. If a majority vote of the
148	committee members from each house cannot be achieved, the
149	committee must recommend that the exemption or exclusion be
150	repealed. The findings of fact and recommendations of the
151	committee shall be made by reports to the President of the
152	Senate and the Speaker of the House of Representatives.
153	(8)  EXEMPTIONS AND EXCLUSIONS REVIEW.--
154	(a)  The committee may use its discretion in determining
155	the order in which it reviews the exemptions and exclusions. For
156	the initial review, the committee shall submit, to the President
157	of the Senate and the Speaker of the House of Representatives,
158	its initial report on one-third of the exemptions and exclusions
159	by November 1, 2009, its report on the second one-third of the
160	exemptions and exclusions by March 1, 2010, and its report on
161	the final one-third of the exemptions and exclusions by July 1,
162	2010, with no duplication of exemptions or exclusions from one
163	report to the next. Thereafter, the committee shall review every
164	3 years approximately one-third of the exemptions and exclusions
165	with no duplication of exemptions or exclusions reviewed from
166	one 3-year period to the next 3-year period. The committee shall
167	submit its 3-year period review reports no later than December 1
168	of the year prior to the next regular session after the
169	expiration of the third year of each 3-year review cycle. The
170	committee shall begin a new 9-year review cycle of all
171	exemptions from the general state sales and use tax and all
172	exclusions of sales of services from such taxation every 9 years
173	after the termination of the previous review cycle.
174	(b)  Notwithstanding the provisions of this section,
175	exemptions and exclusions for necessities, including, but not
176	limited to, exemptions for general groceries as described in s.
177	212.08(1), exemptions for medical products or supplies as
178	described in s. 212.08(2), health services, residential housing,
179	residential electricity, and home heating fuel, and sales of
180	property or services that the state is prohibited from taxing
181	under the Constitution or laws of the United States may not be
182	subject to review by the committee or repeal in legislation
183	proposed by the committee.
184	(9)  LEGISLATION.--At the regular session after submission
185	of each annual report to the Speaker of the House of
186	Representatives and the President of the Senate, the committee
187	shall introduce in both houses of the Legislature bills
188	presenting for reenactment, modification, or repeal those
189	exemptions from the general state sales and use tax or any
190	imposition of such taxation on sales of services that were
191	recommended by the committee in the report submitted immediately
192	prior to the session in which introduced. Each bill introduced
193	must be restricted to a single exemption or the imposition of
194	the tax on a single service and must be submitted to a vote of
195	the members of each house of the Legislature no later than the
196	eighth week of the session in which introduced, unless the
197	substance of the bill has already been voted on by the members
198	of that house of the Legislature in another bill during that
199	session and either passed or defeated or the bill has already
200	been submitted to the members of the other house and has been
201	defeated.
202	(10)  REPEAL.--Any exemption from the state general sales
203	and use tax or exemption from imposition of such tax on sales of
204	services, that is not prohibited from review by the committee
205	under the requirements of paragraph (8)(b) and is not modified
206	or reenacted by the end of the regular session after any 9-year
207	review period, stands repealed on July 1 after the end of the
208	regular session immediately after the 9-year review period.
209	(11)  CONSTRUCTION.--This section does not preclude a
210	legislator from filing for any legislative session a bill
211	proposing to modify, repeal, or enact any exemption from the
212	general state sales and use tax or the imposition of such
213	taxation on the sales of any service.
214	Section 3.  Effective July 1, 2012, section 212.08, Florida
215	Statutes, is amended to read:
216	212.08  Sales, rental, use, consumption, distribution, and
217	storage tax; specified exemptions.--The sale at retail, the
218	rental, the use, the consumption, the distribution, and the
219	storage to be used or consumed in this state of the following
220	are hereby specifically exempt from the tax imposed by this
221	chapter.
222	(1)  EXEMPTIONS; GENERAL GROCERIES.--
223	(a)  Food products for human consumption are exempt from
224	the tax imposed by this chapter.
225	(b)  For the purpose of this chapter, as used in this
226	subsection, the term "food products" means edible commodities,
227	whether processed, cooked, raw, canned, or in any other form,
228	which are generally regarded as food. This includes, but is not
229	limited to, all of the following:
230	1.  Cereals and cereal products, baked goods,
231	oleomargarine, meat and meat products, fish and seafood
232	products, frozen foods and dinners, poultry, eggs and egg
233	products, vegetables and vegetable products, fruit and fruit
234	products, spices, salt, sugar and sugar products, milk and dairy
235	products, and products intended to be mixed with milk.
236	2.  Natural fruit or vegetable juices or their concentrates
237	or reconstituted natural concentrated fruit or vegetable juices,
238	whether frozen or unfrozen, dehydrated, powdered, granulated,
239	sweetened or unsweetened, seasoned with salt or spice, or
240	unseasoned; coffee, coffee substitutes, or cocoa; and tea,
241	unless it is sold in a liquid form.
242	3.  Bakery products sold by bakeries, pastry shops, or like
243	establishments that do not have eating facilities.
244	(c)  The exemption provided by this subsection does not
245	apply:
246	1.  When the food products are sold as meals for
247	consumption on or off the premises of the dealer.
248	2.  When the food products are furnished, prepared, or
249	served for consumption at tables, chairs, or counters or from
250	trays, glasses, dishes, or other tableware, whether provided by
251	the dealer or by a person with whom the dealer contracts to
252	furnish, prepare, or serve food products to others.
253	3.  When the food products are ordinarily sold for
254	immediate consumption on the seller's premises or near a
255	location at which parking facilities are provided primarily for
256	the use of patrons in consuming the products purchased at the
257	location, even though such products are sold on a "take out" or
258	"to go" order and are actually packaged or wrapped and taken
259	from the premises of the dealer.
260	4.  To sandwiches sold ready for immediate consumption on
261	or off the seller's premises.
262	5.  When the food products are sold ready for immediate
263	consumption within a place, the entrance to which is subject to
264	an admission charge.
265	6.  When the food products are sold as hot prepared food
266	products.
267	7.  To soft drinks, which include, but are not limited to,
268	any nonalcoholic beverage, any preparation or beverage commonly
269	referred to as a "soft drink," or any noncarbonated drink made
270	from milk derivatives or tea, when sold in cans or similar
271	containers.
272	8.  To ice cream, frozen yogurt, and similar frozen dairy
273	or nondairy products in cones, small cups, or pints, popsicles,
274	frozen fruit bars, or other novelty items, whether or not sold
275	separately.
276	9.  To food prepared, whether on or off the premises, and
277	sold for immediate consumption. This does not apply to food
278	prepared off the premises and sold in the original sealed
279	container, or the slicing of products into smaller portions.
280	10.  When the food products are sold through a vending
281	machine, pushcart, motor vehicle, or any other form of vehicle.
282	11.  To candy and any similar product regarded as candy or
283	confection, based on its normal use, as indicated on the label
284	or advertising thereof.
285	12.  To bakery products sold by bakeries, pastry shops, or
286	like establishments that have eating facilities, except when
287	sold for consumption off the seller's premises.
288	13.  When food products are served, prepared, or sold in or
289	by restaurants, lunch counters, cafeterias, hotels, taverns, or
290	other like places of business.
291	(d)  As used in this subsection, the term:
292	1.  "For consumption off the seller's premises" means that
293	the food or drink is intended by the customer to be consumed at
294	a place away from the dealer's premises.
295	2.  "For consumption on the seller's premises" means that
296	the food or drink sold may be immediately consumed on the
297	premises where the dealer conducts his or her business. In
298	determining whether an item of food is sold for immediate
299	consumption, there shall be considered the customary consumption
300	practices prevailing at the selling facility.
301	3.  "Premises" shall be construed broadly, and means, but
302	is not limited to, the lobby, aisle, or auditorium of a theater;
303	the seating, aisle, or parking area of an arena, rink, or
304	stadium; or the parking area of a drive-in or outdoor theater.
305	The premises of a caterer with respect to catered meals or
306	beverages shall be the place where such meals or beverages are
307	served.
308	4.  "Hot prepared food products" means those products,
309	items, or components which have been prepared for sale in a
310	heated condition and which are sold at any temperature that is
311	higher than the air temperature of the room or place where they
312	are sold. "Hot prepared food products," for the purposes of this
313	subsection, includes a combination of hot and cold food items or
314	components where a single price has been established for the
315	combination and the food products are sold in such combination,
316	such as a hot meal, a hot specialty dish or serving, or a hot
317	sandwich or hot pizza, including cold components or side items.
318	(e)1.  Food or drinks not exempt under paragraphs (a), (b),
319	(c), and (d) shall be exempt, notwithstanding those paragraphs,
320	when purchased with food coupons or Special Supplemental Food
321	Program for Women, Infants, and Children vouchers issued under
322	authority of federal law.
323	2.  This paragraph is effective only while federal law
324	prohibits a state's participation in the federal food coupon
325	program or Special Supplemental Food Program for Women, Infants,
326	and Children if there is an official determination that state or
327	local sales taxes are collected within that state on purchases
328	of food or drinks with such coupons.
329	3.  This paragraph shall not apply to any food or drinks on
330	which federal law shall permit sales taxes without penalty, such
331	as termination of the state's participation.
332	(2)  EXEMPTIONS; MEDICAL.--
333	(a)  There shall be exempt from the tax imposed by this
334	chapter any medical products and supplies or medicine dispensed
335	according to an individual prescription or prescriptions written
336	by a prescriber authorized by law to prescribe medicinal drugs;
337	hypodermic needles; hypodermic syringes; chemical compounds and
338	test kits used for the diagnosis or treatment of human disease,
339	illness, or injury; and common household remedies recommended
340	and generally sold for internal or external use in the cure,
341	mitigation, treatment, or prevention of illness or disease in
342	human beings, but not including cosmetics or toilet articles,
343	notwithstanding the presence of medicinal ingredients therein,
344	according to a list prescribed and approved by the Department of
345	Health, which list shall be certified to the Department of
346	Revenue from time to time and included in the rules promulgated
347	by the Department of Revenue. There shall also be exempt from
348	the tax imposed by this chapter artificial eyes and limbs;
349	orthopedic shoes; prescription eyeglasses and items incidental
350	thereto or which become a part thereof; dentures; hearing aids;
351	crutches; prosthetic and orthopedic appliances; and funerals. In
352	addition, any items intended for one-time use which transfer
353	essential optical characteristics to contact lenses shall be
354	exempt from the tax imposed by this chapter; however, this
355	exemption shall apply only after $100,000 of the tax imposed by
356	this chapter on such items has been paid in any calendar year by
357	a taxpayer who claims the exemption in such year. Funeral
358	directors shall pay tax on all tangible personal property used
359	by them in their business.
360	(b)  For the purposes of this subsection:
361	1.  "Prosthetic and orthopedic appliances" means any
362	apparatus, instrument, device, or equipment used to replace or
363	substitute for any missing part of the body, to alleviate the
364	malfunction of any part of the body, or to assist any disabled
365	person in leading a normal life by facilitating such person's
366	mobility. Such apparatus, instrument, device, or equipment shall
367	be exempted according to an individual prescription or
368	prescriptions written by a physician licensed under chapter 458,
369	chapter 459, chapter 460, chapter 461, or chapter 466, or
370	according to a list prescribed and approved by the Department of
371	Health, which list shall be certified to the Department of
372	Revenue from time to time and included in the rules promulgated
373	by the Department of Revenue.
374	2.  "Cosmetics" means articles intended to be rubbed,
375	poured, sprinkled, or sprayed on, introduced into, or otherwise
376	applied to the human body for cleansing, beautifying, promoting
377	attractiveness, or altering the appearance and also means
378	articles intended for use as a compound of any such articles,
379	including, but not limited to, cold creams, suntan lotions,
380	makeup, and body lotions.
381	3.  "Toilet articles" means any article advertised or held
382	out for sale for grooming purposes and those articles that are
383	customarily used for grooming purposes, regardless of the name
384	by which they may be known, including, but not limited to, soap,
385	toothpaste, hair spray, shaving products, colognes, perfumes,
386	shampoo, deodorant, and mouthwash.
387	4.  "Prescription" includes any order for drugs or
388	medicinal supplies written or transmitted by any means of
389	communication by a duly licensed practitioner authorized by the
390	laws of the state to prescribe such drugs or medicinal supplies
391	and intended to be dispensed by a pharmacist. The term also
392	includes an orally transmitted order by the lawfully designated
393	agent of such practitioner. The term also includes an order
394	written or transmitted by a practitioner licensed to practice in
395	a jurisdiction other than this state, but only if the pharmacist
396	called upon to dispense such order determines, in the exercise
397	of his or her professional judgment, that the order is valid and
398	necessary for the treatment of a chronic or recurrent illness.
399	The term also includes a pharmacist's order for a product
400	selected from the formulary created pursuant to s. 465.186. A
401	prescription may be retained in written form, or the pharmacist
402	may cause it to be recorded in a data processing system,
403	provided that such order can be produced in printed form upon
404	lawful request.
405	(c)  Chlorine shall not be exempt from the tax imposed by
406	this chapter when used for the treatment of water in swimming
407	pools.
408	(d)  Lithotripters are exempt.
409	(e)  Human organs are exempt.
410	(f)  Sales of drugs to or by physicians, dentists,
411	veterinarians, and hospitals in connection with medical
412	treatment are exempt.
413	(g)  Medical products and supplies used in the cure,
414	mitigation, alleviation, prevention, or treatment of injury,
415	disease, or incapacity which are temporarily or permanently
416	incorporated into a patient or client by a practitioner of the
417	healing arts licensed in the state are exempt.
418	(h)  The purchase by a veterinarian of commonly recognized
419	substances possessing curative or remedial properties which are
420	ordered and dispensed as treatment for a diagnosed health
421	disorder by or on the prescription of a duly licensed
422	veterinarian, and which are applied to or consumed by animals
423	for alleviation of pain or the cure or prevention of sickness,
424	disease, or suffering are exempt. Also exempt are the purchase
425	by a veterinarian of antiseptics, absorbent cotton, gauze for
426	bandages, lotions, vitamins, and worm remedies.
427	(i)  X-ray opaques, also known as opaque drugs and
428	radiopaque, such as the various opaque dyes and barium sulphate,
429	when used in connection with medical X rays for treatment of
430	bodies of humans and animals, are exempt.
431	(j)  Parts, special attachments, special lettering, and
432	other like items that are added to or attached to tangible
433	personal property so that a handicapped person can use them are
434	exempt when such items are purchased by a person pursuant to an
435	individual prescription.
436	(k)  This subsection shall be strictly construed and
437	enforced.
438	(3)  EXEMPTIONS; CERTAIN FARM EQUIPMENT.--There shall be no
439	tax on the sale, rental, lease, use, consumption, or storage for
440	use in this state of power farm equipment used exclusively on a
441	farm or in a forest in the agricultural production of crops or
442	products as produced by those agricultural industries included
443	in s. 570.02(1), or for fire prevention and suppression work
444	with respect to such crops or products. Harvesting may not be
445	construed to include processing activities. This exemption is
446	not forfeited by moving farm equipment between farms or forests.
447	However, this exemption shall not be allowed unless the
448	purchaser, renter, or lessee signs a certificate stating that
449	the farm equipment is to be used exclusively on a farm or in a
450	forest for agricultural production or for fire prevention and
451	suppression, as required by this subsection. Possession by a
452	seller, lessor, or other dealer of a written certification by
453	the purchaser, renter, or lessee certifying the purchaser's,
454	renter's, or lessee's entitlement to an exemption permitted by
455	this subsection relieves the seller from the responsibility of
456	collecting the tax on the nontaxable amounts, and the department
457	shall look solely to the purchaser for recovery of such tax if
458	it determines that the purchaser was not entitled to the
459	exemption.
460	(4)  EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.--
461	(a)  Also exempt are:
462	1.  Water delivered to the purchaser through pipes or
463	conduits or delivered for irrigation purposes. The sale of
464	drinking water in bottles, cans, or other containers, including
465	water that contains minerals or carbonation in its natural state
466	or water to which minerals have been added at a water treatment
467	facility regulated by the Department of Environmental Protection
468	or the Department of Health, is exempt. This exemption does not
469	apply to the sale of drinking water in bottles, cans, or other
470	containers if carbonation or flavorings, except those added at a
471	water treatment facility, have been added. Water that has been
472	enhanced by the addition of minerals and that does not contain
473	any added carbonation or flavorings is also exempt.
474	2.  All fuels used by a public or private utility,
475	including any municipal corporation or rural electric
476	cooperative association, in the generation of electric power or
477	energy for sale. Fuel other than motor fuel and diesel fuel is
478	taxable as provided in this chapter with the exception of fuel
479	expressly exempt herein. Motor fuels and diesel fuels are
480	taxable as provided in chapter 206, with the exception of those
481	motor fuels and diesel fuels used by railroad locomotives or
482	vessels to transport persons or property in interstate or
483	foreign commerce, which are taxable under this chapter only to
484	the extent provided herein. The basis of the tax shall be the
485	ratio of intrastate mileage to interstate or foreign mileage
486	traveled by the carrier's railroad locomotives or vessels that
487	were used in interstate or foreign commerce and that had at
488	least some Florida mileage during the previous fiscal year of
489	the carrier, such ratio to be determined at the close of the
490	fiscal year of the carrier. However, during the fiscal year in
491	which the carrier begins its initial operations in this state,
492	the carrier's mileage apportionment factor may be determined on
493	the basis of an estimated ratio of anticipated miles in this
494	state to anticipated total miles for that year, and
495	subsequently, additional tax shall be paid on the motor fuel and
496	diesel fuels, or a refund may be applied for, on the basis of
497	the actual ratio of the carrier's railroad locomotives' or
498	vessels' miles in this state to its total miles for that year.
499	This ratio shall be applied each month to the total Florida
500	purchases made in this state of motor and diesel fuels to
501	establish that portion of the total used and consumed in
502	intrastate movement and subject to tax under this chapter. The
503	basis for imposition of any discretionary surtax shall be set
504	forth in s. 212.054. Fuels used exclusively in intrastate
505	commerce do not qualify for the proration of tax.
506	3.  The transmission or wheeling of electricity.
507	(b)  Alcoholic beverages and malt beverages are not exempt.
508	The terms "alcoholic beverages" and "malt beverages" as used in
509	this paragraph have the same meanings ascribed to them in ss.
510	561.01(4) and 563.01, respectively. It is determined by the
511	Legislature that the classification of alcoholic beverages made
512	in this paragraph for the purpose of extending the tax imposed
513	by this chapter is reasonable and just, and it is intended that
514	such tax be separate from, and in addition to, any other tax
515	imposed on alcoholic beverages.
516	(5)  EXEMPTIONS; ACCOUNT OF USE.--
517	(a)  Items in agricultural use and certain nets.--There are
518	exempt from the tax imposed by this chapter nets designed and
519	used exclusively by commercial fisheries; disinfectants,
520	fertilizers, insecticides, pesticides, herbicides, fungicides,
521	and weed killers used for application on crops or groves,
522	including commercial nurseries and home vegetable gardens, used
523	in dairy barns or on poultry farms for the purpose of protecting
524	poultry or livestock, or used directly on poultry or livestock;
525	portable containers or movable receptacles in which portable
526	containers are placed, used for processing farm products; field
527	and garden seeds, including flower seeds; nursery stock,
528	seedlings, cuttings, or other propagative material purchased for
529	growing stock; seeds, seedlings, cuttings, and plants used to
530	produce food for human consumption; cloth, plastic, and other
531	similar materials used for shade, mulch, or protection from
532	frost or insects on a farm; generators used on poultry farms;
533	and liquefied petroleum gas or other fuel used to heat a
534	structure in which started pullets or broilers are raised;
535	however, such exemption shall not be allowed unless the
536	purchaser or lessee signs a certificate stating that the item to
537	be exempted is for the exclusive use designated herein. Also
538	exempt are cellophane wrappers, glue for tin and glass
539	(apiarists), mailing cases for honey, shipping cases, window
540	cartons, and baling wire and twine used for baling hay, when
541	used by a farmer to contain, produce, or process an agricultural
542	commodity.
543	(b)  Machinery and equipment used to increase productive
544	output.--
545	1.  Industrial machinery and equipment purchased for
546	exclusive use by a new business in spaceport activities as
547	defined by s. 212.02 or for use in new businesses which
548	manufacture, process, compound, or produce for sale items of
549	tangible personal property at fixed locations are exempt from
550	the tax imposed by this chapter upon an affirmative showing by
551	the taxpayer to the satisfaction of the department that such
552	items are used in a new business in this state. Such purchases
553	must be made prior to the date the business first begins its
554	productive operations, and delivery of the purchased item must
555	be made within 12 months of that date.
556	2.  Industrial machinery and equipment purchased for
557	exclusive use by an expanding facility which is engaged in
558	spaceport activities as defined by s. 212.02 or for use in
559	expanding manufacturing facilities or plant units which
560	manufacture, process, compound, or produce for sale items of
561	tangible personal property at fixed locations in this state are
562	exempt from any amount of tax imposed by this chapter upon an
563	affirmative showing by the taxpayer to the satisfaction of the
564	department that such items are used to increase the productive
565	output of such expanded facility or business by not less than 10
566	percent.
567	3.a.  To receive an exemption provided by subparagraph 1.
568	or subparagraph 2., a qualifying business entity shall apply to
569	the department for a temporary tax exemption permit. The
570	application shall state that a new business exemption or
571	expanded business exemption is being sought. Upon a tentative
572	affirmative determination by the department pursuant to
573	subparagraph 1. or subparagraph 2., the department shall issue
574	such permit.
575	b.  The applicant shall be required to maintain all
576	necessary books and records to support the exemption. Upon
577	completion of purchases of qualified machinery and equipment
578	pursuant to subparagraph 1. or subparagraph 2., the temporary
579	tax permit shall be delivered to the department or returned to
580	the department by certified or registered mail.
581	c.  If, in a subsequent audit conducted by the department,
582	it is determined that the machinery and equipment purchased as
583	exempt under subparagraph 1. or subparagraph 2. did not meet the
584	criteria mandated by this paragraph or if commencement of
585	production did not occur, the amount of taxes exempted at the
586	time of purchase shall immediately be due and payable to the
587	department by the business entity, together with the appropriate
588	interest and penalty, computed from the date of purchase, in the
589	manner prescribed by this chapter.
590	d.  In the event a qualifying business entity fails to
591	apply for a temporary exemption permit or if the tentative
592	determination by the department required to obtain a temporary
593	exemption permit is negative, a qualifying business entity shall
594	receive the exemption provided in subparagraph 1. or
595	subparagraph 2. through a refund of previously paid taxes. No
596	refund may be made for such taxes unless the criteria mandated
597	by subparagraph 1. or subparagraph 2. have been met and
598	commencement of production has occurred.
599	4.  The department shall adopt rules governing applications
600	for, issuance of, and the form of temporary tax exemption
601	permits; provisions for recapture of taxes; and the manner and
602	form of refund applications and may establish guidelines as to
603	the requisites for an affirmative showing of increased
604	productive output, commencement of production, and qualification
605	for exemption.
606	5.  The exemptions provided in subparagraphs 1. and 2. do
607	not apply to machinery or equipment purchased or used by
608	electric utility companies, communications companies, oil or gas
609	exploration or production operations, publishing firms that do
610	not export at least 50 percent of their finished product out of
611	the state, any firm subject to regulation by the Division of
612	Hotels and Restaurants of the Department of Business and
613	Professional Regulation, or any firm which does not manufacture,
614	process, compound, or produce for sale items of tangible
615	personal property or which does not use such machinery and
616	equipment in spaceport activities as required by this paragraph.
617	The exemptions provided in subparagraphs 1. and 2. shall apply
618	to machinery and equipment purchased for use in phosphate or
619	other solid minerals severance, mining, or processing
620	operations.
621	6.  For the purposes of the exemptions provided in
622	subparagraphs 1. and 2., these terms have the following
623	meanings:
624	a.  "Industrial machinery and equipment" means tangible
625	personal property or other property that has a depreciable life
626	of 3 years or more and that is used as an integral part in the
627	manufacturing, processing, compounding, or production of
628	tangible personal property for sale or is exclusively used in
629	spaceport activities. A building and its structural components
630	are not industrial machinery and equipment unless the building
631	or structural component is so closely related to the industrial
632	machinery and equipment that it houses or supports that the
633	building or structural component can be expected to be replaced
634	when the machinery and equipment are replaced. Heating and air-
635	conditioning systems are not industrial machinery and equipment
636	unless the sole justification for their installation is to meet
637	the requirements of the production process, even though the
638	system may provide incidental comfort to employees or serve, to
639	an insubstantial degree, nonproduction activities. The term
640	includes parts and accessories only to the extent that the
641	exemption thereof is consistent with the provisions of this
642	paragraph.
643	b.  "Productive output" means the number of units actually
644	produced by a single plant or operation in a single continuous
645	12-month period, irrespective of sales. Increases in productive
646	output shall be measured by the output for 12 continuous months
647	immediately following the completion of installation of such
648	machinery or equipment over the output for the 12 continuous
649	months immediately preceding such installation. However, if a
650	different 12-month continuous period of time would more
651	accurately reflect the increase in productive output of
652	machinery and equipment purchased to facilitate an expansion,
653	the increase in productive output may be measured during that
654	12-month continuous period of time if such time period is
655	mutually agreed upon by the Department of Revenue and the
656	expanding business prior to the commencement of production;
657	provided, however, in no case may such time period begin later
658	than 2 years following the completion of installation of the new
659	machinery and equipment. The units used to measure productive
660	output shall be physically comparable between the two periods,
661	irrespective of sales.
662	(c)  Machinery and equipment used in production of
663	electrical or steam energy.--
664	1.  The purchase of machinery and equipment for use at a
665	fixed location which machinery and equipment are necessary in
666	the production of electrical or steam energy resulting from the
667	burning of boiler fuels other than residual oil is exempt from
668	the tax imposed by this chapter. Such electrical or steam energy
669	must be primarily for use in manufacturing, processing,
670	compounding, or producing for sale items of tangible personal
671	property in this state. Use of a de minimis amount of residual
672	fuel to facilitate the burning of nonresidual fuel shall not
673	reduce the exemption otherwise available under this paragraph.
674	2.  In facilities where machinery and equipment are
675	necessary to burn both residual and nonresidual fuels, the
676	exemption shall be prorated. Such proration shall be based upon
677	the production of electrical or steam energy from nonresidual
678	fuels as a percentage of electrical or steam energy from all
679	fuels. If it is determined that 15 percent or less of all
680	electrical or steam energy generated was produced by burning
681	residual fuel, the full exemption shall apply. Purchasers
682	claiming a partial exemption shall obtain such exemption by
683	refund of taxes paid, or as otherwise provided in the
684	department's rules.
685	3.  The department may adopt rules that provide for
686	implementation of this exemption. Purchasers of machinery and
687	equipment qualifying for the exemption provided in this
688	paragraph shall furnish the vendor with an affidavit stating
689	that the item or items to be exempted are for the use designated
690	herein. Any person furnishing a false affidavit to the vendor
691	for the purpose of evading payment of any tax imposed under this
692	chapter shall be subject to the penalty set forth in s. 212.085
693	and as otherwise provided by law. Purchasers with self-accrual
694	authority shall maintain all documentation necessary to prove
695	the exempt status of purchases.
696	(d)  Machinery and equipment used under federal procurement
697	contract.--
698	1.  Industrial machinery and equipment purchased by an
699	expanding business which manufactures tangible personal property
700	pursuant to federal procurement regulations at fixed locations
701	in this state are exempt from the tax imposed in this chapter
702	upon an affirmative showing by the taxpayer to the satisfaction
703	of the department that such items are used to increase the
704	implicit productive output of the expanded business by not less
705	than 10 percent. The percentage of increase is measured as
706	deflated implicit productive output for the calendar year during
707	which the installation of the machinery or equipment is
708	completed or during which commencement of production utilizing
709	such items is begun divided by the implicit productive output
710	for the preceding calendar year. In no case may the commencement
711	of production begin later than 2 years following completion of
712	installation of the machinery or equipment.
713	2.  The amount of the exemption allowed shall equal the
714	taxes otherwise imposed by this chapter on qualifying industrial
715	machinery or equipment reduced by the percentage of gross
716	receipts from cost-reimbursement type contracts attributable to
717	the plant or operation to total gross receipts so attributable,
718	accrued for the year of completion or commencement.
719	3.  The exemption provided by this paragraph shall inure to
720	the taxpayer only through refund of previously paid taxes. Such
721	refund shall be made within 30 days of formal approval by the
722	department of the taxpayer's application, which application may
723	be made on an annual basis following installation of the
724	machinery or equipment.
725	4.  For the purposes of this paragraph, the term:
726	a.  "Cost-reimbursement type contracts" has the same
727	meaning as in 32 C.F.R. s. 3-405.
728	b.  "Deflated implicit productive output" means the product
729	of implicit productive output times the quotient of the national
730	defense implicit price deflator for the preceding calendar year
731	divided by the deflator for the year of completion or
732	commencement.
733	c.  "Eligible costs" means the total direct and indirect
734	costs, as defined in 32 C.F.R. ss. 15-202 and 15-203, excluding
735	general and administrative costs, selling expenses, and profit,
736	defined by the uniform cost-accounting standards adopted by the
737	Cost-Accounting Standards Board created pursuant to 50 U.S.C. s.
738	2168.
739	d.  "Implicit productive output" means the annual eligible
740	costs attributable to all contracts or subcontracts subject to
741	federal procurement regulations of the single plant or operation
742	at which the machinery or equipment is used.
743	e.  "Industrial machinery and equipment" means tangible
744	personal property or other property that has a depreciable life
745	of 3 years or more, that qualifies as an eligible cost under
746	federal procurement regulations, and that is used as an integral
747	part of the process of production of tangible personal property.
748	A building and its structural components are not industrial
749	machinery and equipment unless the building or structural
750	component is so closely related to the industrial machinery and
751	equipment that it houses or supports that the building or
752	structural component can be expected to be replaced when the
753	machinery and equipment are replaced. Heating and air-
754	conditioning systems are not industrial machinery and equipment
755	unless the sole justification for their installation is to meet
756	the requirements of the production process, even though the
757	system may provide incidental comfort to employees or serve, to
758	an insubstantial degree, nonproduction activities. The term
759	includes parts and accessories only to the extent that the
760	exemption of such parts and accessories is consistent with the
761	provisions of this paragraph.
762	f.  "National defense implicit price deflator" means the
763	national defense implicit price deflator for the gross national
764	product as determined by the Bureau of Economic Analysis of the
765	United States Department of Commerce.
766	5.  The exclusions provided in subparagraph (b)5. apply to
767	this exemption. This exemption applies only to machinery or
768	equipment purchased pursuant to production contracts with the
769	United States Department of Defense and Armed Forces, the
770	National Aeronautics and Space Administration, and other federal
771	agencies for which the contracts are classified for national
772	security reasons. In no event shall the provisions of this
773	paragraph apply to any expanding business the increase in
774	productive output of which could be measured under the
775	provisions of sub-subparagraph (b)6.b. as physically comparable
776	between the two periods.
777	(e)  Gas or electricity used for certain agricultural
778	purposes.--
779	1.  Butane gas, propane gas, natural gas, and all other
780	forms of liquefied petroleum gases are exempt from the tax
781	imposed by this chapter if used in any tractor, vehicle, or
782	other farm equipment which is used exclusively on a farm or for
783	processing farm products on the farm and no part of which gas is
784	used in any vehicle or equipment driven or operated on the
785	public highways of this state. This restriction does not apply
786	to the movement of farm vehicles or farm equipment between
787	farms. The transporting of bees by water and the operating of
788	equipment used in the apiary of a beekeeper is also deemed an
789	exempt use.
790	2.  Electricity used directly or indirectly for production
791	or processing of agricultural products on the farm is exempt
792	from the tax imposed by this chapter. This exemption applies
793	only if the electricity used for the exempt purposes is
794	separately metered. If the electricity is not separately
795	metered, it is conclusively presumed that some portion of the
796	electricity is used for a nonexempt purpose, and all of the
797	electricity used for such purposes is taxable.
798	(f)  Motion picture or video equipment used in motion
799	picture or television production activities and sound recording
800	equipment used in the production of master tapes and master
801	records.--
802	1.  Motion picture or video equipment and sound recording
803	equipment purchased or leased for use in this state in
804	production activities is exempt from the tax imposed by this
805	chapter. The exemption provided by this paragraph shall inure to
806	the taxpayer upon presentation of the certificate of exemption
807	issued to the taxpayer under the provisions of s. 288.1258.
808	2.  For the purpose of the exemption provided in
809	subparagraph 1.:
810	a.  "Motion picture or video equipment" and "sound
811	recording equipment" includes only tangible personal property or
812	other property that has a depreciable life of 3 years or more
813	and that is used by the lessee or purchaser exclusively as an
814	integral part of production activities; however, motion picture
815	or video equipment and sound recording equipment does not
816	include supplies, tape, records, film, or video tape used in
817	productions or other similar items; vehicles or vessels; or
818	general office equipment not specifically suited to production
819	activities. In addition, the term does not include equipment
820	purchased or leased by television or radio broadcasting or cable
821	companies licensed by the Federal Communications Commission.
822	Furthermore, a building and its structural components are not
823	motion picture or video equipment and sound recording equipment
824	unless the building or structural component is so closely
825	related to the motion picture or video equipment and sound
826	recording equipment that it houses or supports that the building
827	or structural component can be expected to be replaced when the
828	motion picture or video equipment and sound recording equipment
829	are replaced. Heating and air-conditioning systems are not
830	motion picture or video equipment and sound recording equipment
831	unless the sole justification for their installation is to meet
832	the requirements of the production activities, even though the
833	system may provide incidental comfort to employees or serve, to
834	an insubstantial degree, nonproduction activities.
835	b.  "Production activities" means activities directed
836	toward the preparation of a:
837	(I)  Master tape or master record embodying sound; or
838	(II)  Motion picture or television production which is
839	produced for theatrical, commercial, advertising, or educational
840	purposes and utilizes live or animated actions or a combination
841	of live and animated actions. The motion picture or television
842	production shall be commercially produced for sale or for
843	showing on screens or broadcasting on television and may be on
844	film or video tape.
845	(g)  Building materials used in the rehabilitation of real
846	property located in an enterprise zone.--
847	1.  Building materials used in the rehabilitation of real
848	property located in an enterprise zone shall be exempt from the
849	tax imposed by this chapter upon an affirmative showing to the
850	satisfaction of the department that the items have been used for
851	the rehabilitation of real property located in an enterprise
852	zone. Except as provided in subparagraph 2., this exemption
853	inures to the owner, lessee, or lessor of the rehabilitated real
854	property located in an enterprise zone only through a refund of
855	previously paid taxes. To receive a refund pursuant to this
856	paragraph, the owner, lessee, or lessor of the rehabilitated
857	real property located in an enterprise zone must file an
858	application under oath with the governing body or enterprise
859	zone development agency having jurisdiction over the enterprise
860	zone where the business is located, as applicable, which
861	includes:
862	a.  The name and address of the person claiming the refund.
863	b.  An address and assessment roll parcel number of the
864	rehabilitated real property in an enterprise zone for which a
865	refund of previously paid taxes is being sought.
866	c.  A description of the improvements made to accomplish
867	the rehabilitation of the real property.
868	d.  A copy of the building permit issued for the
869	rehabilitation of the real property.
870	e.  A sworn statement, under the penalty of perjury, from
871	the general contractor licensed in this state with whom the
872	applicant contracted to make the improvements necessary to
873	accomplish the rehabilitation of the real property, which
874	statement lists the building materials used in the
875	rehabilitation of the real property, the actual cost of the
876	building materials, and the amount of sales tax paid in this
877	state on the building materials. In the event that a general
878	contractor has not been used, the applicant shall provide this
879	information in a sworn statement, under the penalty of perjury.
880	Copies of the invoices which evidence the purchase of the
881	building materials used in such rehabilitation and the payment
882	of sales tax on the building materials shall be attached to the
883	sworn statement provided by the general contractor or by the
884	applicant. Unless the actual cost of building materials used in
885	the rehabilitation of real property and the payment of sales
886	taxes due thereon is documented by a general contractor or by
887	the applicant in this manner, the cost of such building
888	materials shall be an amount equal to 40 percent of the increase
889	in assessed value for ad valorem tax purposes.
890	f.  The identifying number assigned pursuant to s. 290.0065
891	to the enterprise zone in which the rehabilitated real property
892	is located.
893	g.  A certification by the local building code inspector
894	that the improvements necessary to accomplish the rehabilitation
895	of the real property are substantially completed.
896	h.  Whether the business is a small business as defined by
897	s. 288.703(1).
898	i.  If applicable, the name and address of each permanent
899	employee of the business, including, for each employee who is a
900	resident of an enterprise zone, the identifying number assigned
901	pursuant to s. 290.0065 to the enterprise zone in which the
902	employee resides.
903	2.  This exemption inures to a city, county, other
904	governmental agency, or nonprofit community-based organization
905	through a refund of previously paid taxes if the building
906	materials used in the rehabilitation of real property located in
907	an enterprise zone are paid for from the funds of a community
908	development block grant, State Housing Initiatives Partnership
909	Program, or similar grant or loan program. To receive a refund
910	pursuant to this paragraph, a city, county, other governmental
911	agency, or nonprofit community-based organization must file an
912	application which includes the same information required to be
913	provided in subparagraph 1. by an owner, lessee, or lessor of
914	rehabilitated real property. In addition, the application must
915	include a sworn statement signed by the chief executive officer
916	of the city, county, other governmental agency, or nonprofit
917	community-based organization seeking a refund which states that
918	the building materials for which a refund is sought were paid
919	for from the funds of a community development block grant, State
920	Housing Initiatives Partnership Program, or similar grant or
921	loan program.
922	3.  Within 10 working days after receipt of an application,
923	the governing body or enterprise zone development agency shall
924	review the application to determine if it contains all the
925	information required pursuant to subparagraph 1. or subparagraph
926	2. and meets the criteria set out in this paragraph. The
927	governing body or agency shall certify all applications that
928	contain the information required pursuant to subparagraph 1. or
929	subparagraph 2. and meet the criteria set out in this paragraph
930	as eligible to receive a refund. If applicable, the governing
931	body or agency shall also certify if 20 percent of the employees
932	of the business are residents of an enterprise zone, excluding
933	temporary and part-time employees. The certification shall be in
934	writing, and a copy of the certification shall be transmitted to
935	the executive director of the Department of Revenue. The
936	applicant shall be responsible for forwarding a certified
937	application to the department within the time specified in
938	subparagraph 4.
939	4.  An application for a refund pursuant to this paragraph
940	must be submitted to the department within 6 months after the
941	rehabilitation of the property is deemed to be substantially
942	completed by the local building code inspector or by September 1
943	after the rehabilitated property is first subject to assessment.
944	5.  Not more than one exemption through a refund of
945	previously paid taxes for the rehabilitation of real property
946	shall be permitted for any single parcel of property unless
947	there is a change in ownership, a new lessor, or a new lessee of
948	the real property. No refund shall be granted pursuant to this
949	paragraph unless the amount to be refunded exceeds $500. No
950	refund granted pursuant to this paragraph shall exceed the
951	lesser of 97 percent of the Florida sales or use tax paid on the
952	cost of the building materials used in the rehabilitation of the
953	real property as determined pursuant to sub-subparagraph 1.e. or
954	$5,000, or, if no less than 20 percent of the employees of the
955	business are residents of an enterprise zone, excluding
956	temporary and part-time employees, the amount of refund granted
957	pursuant to this paragraph shall not exceed the lesser of 97
958	percent of the sales tax paid on the cost of such building
959	materials or $10,000. A refund approved pursuant to this
960	paragraph shall be made within 30 days of formal approval by the
961	department of the application for the refund. This subparagraph
962	shall apply retroactively to July 1, 2005.
963	6.  The department shall adopt rules governing the manner
964	and form of refund applications and may establish guidelines as
965	to the requisites for an affirmative showing of qualification
966	for exemption under this paragraph.
967	7.  The department shall deduct an amount equal to 10
968	percent of each refund granted under the provisions of this
969	paragraph from the amount transferred into the Local Government
970	Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
971	for the county area in which the rehabilitated real property is
972	located and shall transfer that amount to the General Revenue
973	Fund.
974	8.  For the purposes of the exemption provided in this
975	paragraph:
976	a.  "Building materials" means tangible personal property
977	which becomes a component part of improvements to real property.
978	b.  "Real property" has the same meaning as provided in s.
979	192.001(12).
980	c.  "Rehabilitation of real property" means the
981	reconstruction, renovation, restoration, rehabilitation,
982	construction, or expansion of improvements to real property.
983	d.  "Substantially completed" has the same meaning as
984	provided in s. 192.042(1).
985	9.  This paragraph expires on the date specified in s.
986	290.016 for the expiration of the Florida Enterprise Zone Act.
987	(h)  Business property used in an enterprise zone.--
988	1.  Business property purchased for use by businesses
989	located in an enterprise zone which is subsequently used in an
990	enterprise zone shall be exempt from the tax imposed by this
991	chapter. This exemption inures to the business only through a
992	refund of previously paid taxes. A refund shall be authorized
993	upon an affirmative showing by the taxpayer to the satisfaction
994	of the department that the requirements of this paragraph have
995	been met.
996	2.  To receive a refund, the business must file under oath
997	with the governing body or enterprise zone development agency
998	having jurisdiction over the enterprise zone where the business
999	is located, as applicable, an application which includes:
1000	a.  The name and address of the business claiming the
1001	refund.
1002	b.  The identifying number assigned pursuant to s. 290.0065
1003	to the enterprise zone in which the business is located.
1004	c.  A specific description of the property for which a
1005	refund is sought, including its serial number or other permanent
1006	identification number.
1007	d.  The location of the property.
1008	e.  The sales invoice or other proof of purchase of the
1009	property, showing the amount of sales tax paid, the date of
1010	purchase, and the name and address of the sales tax dealer from
1011	whom the property was purchased.
1012	f.  Whether the business is a small business as defined by
1013	s. 288.703(1).
1014	g.  If applicable, the name and address of each permanent
1015	employee of the business, including, for each employee who is a
1016	resident of an enterprise zone, the identifying number assigned
1017	pursuant to s. 290.0065 to the enterprise zone in which the
1018	employee resides.
1019	3.  Within 10 working days after receipt of an application,
1020	the governing body or enterprise zone development agency shall
1021	review the application to determine if it contains all the
1022	information required pursuant to subparagraph 2. and meets the
1023	criteria set out in this paragraph. The governing body or agency
1024	shall certify all applications that contain the information
1025	required pursuant to subparagraph 2. and meet the criteria set
1026	out in this paragraph as eligible to receive a refund. If
1027	applicable, the governing body or agency shall also certify if
1028	20 percent of the employees of the business are residents of an
1029	enterprise zone, excluding temporary and part-time employees.
1030	The certification shall be in writing, and a copy of the
1031	certification shall be transmitted to the executive director of
1032	the Department of Revenue. The business shall be responsible for
1033	forwarding a certified application to the department within the
1034	time specified in subparagraph 4.
1035	4.  An application for a refund pursuant to this paragraph
1036	must be submitted to the department within 6 months after the
1037	tax is due on the business property that is purchased.
1038	5.  The amount refunded on purchases of business property
1039	under this paragraph shall be the lesser of 97 percent of the
1040	sales tax paid on such business property or $5,000, or, if no
1041	less than 20 percent of the employees of the business are
1042	residents of an enterprise zone, excluding temporary and part-
1043	time employees, the amount refunded on purchases of business
1044	property under this paragraph shall be the lesser of 97 percent
1045	of the sales tax paid on such business property or $10,000. A
1046	refund approved pursuant to this paragraph shall be made within
1047	30 days of formal approval by the department of the application
1048	for the refund. No refund shall be granted under this paragraph
1049	unless the amount to be refunded exceeds $100 in sales tax paid
1050	on purchases made within a 60-day time period.
1051	6.  The department shall adopt rules governing the manner
1052	and form of refund applications and may establish guidelines as
1053	to the requisites for an affirmative showing of qualification
1054	for exemption under this paragraph.
1055	7.  If the department determines that the business property
1056	is used outside an enterprise zone within 3 years from the date
1057	of purchase, the amount of taxes refunded to the business
1058	purchasing such business property shall immediately be due and
1059	payable to the department by the business, together with the
1060	appropriate interest and penalty, computed from the date of
1061	purchase, in the manner provided by this chapter.
1062	Notwithstanding this subparagraph, business property used
1063	exclusively in:
1064	a.  Licensed commercial fishing vessels,
1065	b.  Fishing guide boats, or
1066	c.  Ecotourism guide boats
1067
1068	that leave and return to a fixed location within an area
1069	designated under s. 379.2353 are eligible for the exemption
1070	provided under this paragraph if all requirements of this
1071	paragraph are met. Such vessels and boats must be owned by a
1072	business that is eligible to receive the exemption provided
1073	under this paragraph. This exemption does not apply to the
1074	purchase of a vessel or boat.
1075	8.  The department shall deduct an amount equal to 10
1076	percent of each refund granted under the provisions of this
1077	paragraph from the amount transferred into the Local Government
1078	Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
1079	for the county area in which the business property is located
1080	and shall transfer that amount to the General Revenue Fund.
1081	9.  For the purposes of this exemption, "business property"
1082	means new or used property defined as "recovery property" in s.
1083	168(c) of the Internal Revenue Code of 1954, as amended, except:
1084	a.  Property classified as 3-year property under s.
1085	168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
1086	b.  Industrial machinery and equipment as defined in sub-
1087	subparagraph (b)6.a. and eligible for exemption under paragraph
1088	(b);
1089	c.  Building materials as defined in sub-subparagraph
1090	(g)8.a.; and
1091	d.  Business property having a sales price of under $5,000
1092	per unit.
1093	10.  This paragraph expires on the date specified in s.
1094	290.016 for the expiration of the Florida Enterprise Zone Act.
1095	(i)  Aircraft modification services.--There shall be exempt
1096	from the tax imposed by this chapter all charges for aircraft
1097	modification services, including parts and equipment furnished
1098	or installed in connection therewith, performed under authority
1099	of a supplemental type certificate issued by the Federal
1100	Aviation Administration.
1101	(j)  Machinery and equipment used in semiconductor,
1102	defense, or space technology production.--
1103	1.a.  Industrial machinery and equipment used in
1104	semiconductor technology facilities certified under subparagraph
1105	5. to manufacture, process, compound, or produce semiconductor
1106	technology products for sale or for use by these facilities are
1107	exempt from the tax imposed by this chapter. For purposes of
1108	this paragraph, industrial machinery and equipment includes
1109	molds, dies, machine tooling, other appurtenances or accessories
1110	to machinery and equipment, testing equipment, test beds,
1111	computers, and software, whether purchased or self-fabricated,
1112	and, if self-fabricated, includes materials and labor for
1113	design, fabrication, and assembly.
1114	b.  Industrial machinery and equipment used in defense or
1115	space technology facilities certified under subparagraph 5. to
1116	design, manufacture, assemble, process, compound, or produce
1117	defense technology products or space technology products for
1118	sale or for use by these facilities are exempt from the tax
1119	imposed by this chapter.
1120	2.  Building materials purchased for use in manufacturing
1121	or expanding clean rooms in semiconductor-manufacturing
1122	facilities are exempt from the tax imposed by this chapter.
1123	3.  In addition to meeting the criteria mandated by
1124	subparagraph 1. or subparagraph 2., a business must be certified
1125	by the Office of Tourism, Trade, and Economic Development as
1126	authorized in this paragraph in order to qualify for exemption
1127	under this paragraph.
1128	4.  For items purchased tax-exempt pursuant to this
1129	paragraph, possession of a written certification from the
1130	purchaser, certifying the purchaser's entitlement to exemption
1131	pursuant to this paragraph, relieves the seller of the
1132	responsibility of collecting the tax on the sale of such items,
1133	and the department shall look solely to the purchaser for
1134	recovery of tax if it determines that the purchaser was not
1135	entitled to the exemption.
1136	5.a.  To be eligible to receive the exemption provided by
1137	subparagraph 1. or subparagraph 2., a qualifying business entity
1138	shall apply initially to Enterprise Florida, Inc. The original
1139	certification shall be valid for a period of 2 years. In lieu of
1140	submitting a new application, the original certification may be
1141	renewed biennially by submitting to the Office of Tourism,
1142	Trade, and Economic Development a statement, certified under
1143	oath, that there has been no material change in the conditions
1144	or circumstances entitling the business entity to the original
1145	certification. The initial application and the certification
1146	renewal statement shall be developed by the Office of Tourism,
1147	Trade, and Economic Development in consultation with Enterprise
1148	Florida, Inc.
1149	b.  Enterprise Florida, Inc., shall review each submitted
1150	initial application and information and determine whether or not
1151	the application is complete within 5 working days. Once an
1152	application is complete, Enterprise Florida, Inc., shall, within
1153	10 working days, evaluate the application and recommend approval
1154	or disapproval of the application to the Office of Tourism,
1155	Trade, and Economic Development.
1156	c.  Upon receipt of the initial application and
1157	recommendation from Enterprise Florida, Inc., or upon receipt of
1158	a certification renewal statement, the Office of Tourism, Trade,
1159	and Economic Development shall certify within 5 working days
1160	those applicants who are found to meet the requirements of this
1161	section and notify the applicant, Enterprise Florida, Inc., and
1162	the department of the original certification or certification
1163	renewal. If the Office of Tourism, Trade, and Economic
1164	Development finds that the applicant does not meet the
1165	requirements of this section, it shall notify the applicant and
1166	Enterprise Florida, Inc., within 10 working days that the
1167	application for certification has been denied and the reasons
1168	for denial. The Office of Tourism, Trade, and Economic
1169	Development has final approval authority for certification under
1170	this section.
1171	d.  The initial application and certification renewal
1172	statement must indicate, for program evaluation purposes only,
1173	the average number of full-time equivalent employees at the
1174	facility over the preceding calendar year, the average wage and
1175	benefits paid to those employees over the preceding calendar
1176	year, the total investment made in real and tangible personal
1177	property over the preceding calendar year, and the total value
1178	of tax-exempt purchases and taxes exempted during the previous
1179	year. The department shall assist the Office of Tourism, Trade,
1180	and Economic Development in evaluating and verifying information
1181	provided in the application for exemption.
1182	e.  The Office of Tourism, Trade, and Economic Development
1183	may use the information reported on the initial application and
1184	certification renewal statement for evaluation purposes only and
1185	shall prepare an annual report on the exemption program and its
1186	cost and impact. The annual report for the preceding fiscal year
1187	shall be submitted to the Governor, the President of the Senate,
1188	and the Speaker of the House of Representatives by September 30
1189	of each fiscal year.
1190	6.  A business certified to receive this exemption may
1191	elect to designate one or more state universities or community
1192	colleges as recipients of up to 100 percent of the amount of the
1193	exemption for which they may qualify. To receive these funds,
1194	the institution must agree to match the funds so earned with
1195	equivalent cash, programs, services, or other in-kind support on
1196	a one-to-one basis in the pursuit of research and development
1197	projects as requested by the certified business. The rights to
1198	any patents, royalties, or real or intellectual property must be
1199	vested in the business unless otherwise agreed to by the
1200	business and the university or community college.
1201	7.  As used in this paragraph, the term:
1202	a.  "Semiconductor technology products" means raw
1203	semiconductor wafers or semiconductor thin films that are
1204	transformed into semiconductor memory or logic wafers, including
1205	wafers containing mixed memory and logic circuits; related
1206	assembly and test operations; active-matrix flat panel displays;
1207	semiconductor chips; semiconductor lasers; optoelectronic
1208	elements; and related semiconductor technology products as
1209	determined by the Office of Tourism, Trade, and Economic
1210	Development.
1211	b.  "Clean rooms" means manufacturing facilities enclosed
1212	in a manner that meets the clean manufacturing requirements
1213	necessary for high-technology semiconductor-manufacturing
1214	environments.
1215	c.  "Defense technology products" means products that have
1216	a military application, including, but not limited to, weapons,
1217	weapons systems, guidance systems, surveillance systems,
1218	communications or information systems, munitions, aircraft,
1219	vessels, or boats, or components thereof, which are intended for
1220	military use and manufactured in performance of a contract with
1221	the United States Department of Defense or the military branch
1222	of a recognized foreign government or a subcontract thereunder
1223	which relates to matters of national defense.
1224	d.  "Space technology products" means products that are
1225	specifically designed or manufactured for application in space
1226	activities, including, but not limited to, space launch
1227	vehicles, space flight vehicles, missiles, satellites or
1228	research payloads, avionics, and associated control systems and
1229	processing systems and components of any of the foregoing. The
1230	term does not include products that are designed or manufactured
1231	for general commercial aviation or other uses even though those
1232	products may also serve an incidental use in space applications.
1233	(k)  Samples.--Paint color card samples, flooring and wall
1234	samples, fabric swatch samples, window covering samples, and
1235	similar samples, when such samples serve no useful purpose other
1236	than as a comparison of color, texture, or design; are provided
1237	by the manufacturer to a dealer or ultimate consumer for no
1238	charge; and are given away by the dealer to the ultimate
1239	consumer for no charge, are exempt.
1240	(l)  Growth enhancers or performance enhancers for
1241	cattle.--There is exempt from the tax imposed by this chapter
1242	the sale of performance-enhancing or growth-enhancing products
1243	for cattle.
1244	(m)  Educational materials purchased by certain child care
1245	facilities.--Educational materials, such as glue, paper, paints,
1246	crayons, unique craft items, scissors, books, and educational
1247	toys, purchased by a child care facility that meets the
1248	standards delineated in s. 402.305, is licensed under s.
1249	402.308, holds a current Gold Seal Quality Care designation
1250	pursuant to s. 402.281, and provides basic health insurance to
1251	all employees are exempt from the taxes imposed by this chapter.
1252	For purposes of this paragraph, the term "basic health
1253	insurance" shall be defined and promulgated in rules developed
1254	jointly by the Department of Children and Family Services, the
1255	Agency for Health Care Administration, and the Financial
1256	Services Commission.
1257	(n)  Materials for construction of single-family homes in
1258	certain areas.--
1259	1.  As used in this paragraph, the term:
1260	a.  "Building materials" means tangible personal property
1261	that becomes a component part of a qualified home.
1262	b.  "Qualified home" means a single-family home having an
1263	appraised value of no more than $160,000 which is located in an
1264	enterprise zone, empowerment zone, or Front Porch Florida
1265	Community and which is constructed and occupied by the owner
1266	thereof for residential purposes.
1267	c.  "Substantially completed" has the same meaning as
1268	provided in s. 192.042(1).
1269	2.  Building materials used in the construction of a
1270	qualified home and the costs of labor associated with the
1271	construction of a qualified home are exempt from the tax imposed
1272	by this chapter upon an affirmative showing to the satisfaction
1273	of the department that the requirements of this paragraph have
1274	been met. This exemption inures to the owner through a refund of
1275	previously paid taxes. To receive this refund, the owner must
1276	file an application under oath with the department which
1277	includes:
1278	a.  The name and address of the owner.
1279	b.  The address and assessment roll parcel number of the
1280	home for which a refund is sought.
1281	c.  A copy of the building permit issued for the home.
1282	d.  A certification by the local building code inspector
1283	that the home is substantially completed.
1284	e.  A sworn statement, under penalty of perjury, from the
1285	general contractor licensed in this state with whom the owner
1286	contracted to construct the home, which statement lists the
1287	building materials used in the construction of the home and the
1288	actual cost thereof, the labor costs associated with such
1289	construction, and the amount of sales tax paid on these
1290	materials and labor costs. If a general contractor was not used,
1291	the owner shall provide this information in a sworn statement,
1292	under penalty of perjury. Copies of invoices evidencing payment
1293	of sales tax must be attached to the sworn statement.
1294	f.  A sworn statement, under penalty of perjury, from the
1295	owner affirming that he or she is occupying the home for
1296	residential purposes.
1297	3.  An application for a refund under this paragraph must
1298	be submitted to the department within 6 months after the date
1299	the home is deemed to be substantially completed by the local
1300	building code inspector. Within 30 working days after receipt of
1301	the application, the department shall determine if it meets the
1302	requirements of this paragraph. A refund approved pursuant to
1303	this paragraph shall be made within 30 days after formal
1304	approval of the application by the department.
1305	4.  The department shall establish by rule an application
1306	form and criteria for establishing eligibility for exemption
1307	under this paragraph.
1308	5.  The exemption shall apply to purchases of materials on
1309	or after July 1, 2000.
1310	(o)  Building materials in redevelopment projects.--
1311	1.  As used in this paragraph, the term:
1312	a.  "Building materials" means tangible personal property
1313	that becomes a component part of a housing project or a mixed-
1314	use project.
1315	b.  "Housing project" means the conversion of an existing
1316	manufacturing or industrial building to housing units in an
1317	urban high-crime area, enterprise zone, empowerment zone, Front
1318	Porch Community, designated brownfield area, or urban infill
1319	area and in which the developer agrees to set aside at least 20
1320	percent of the housing units in the project for low-income and
1321	moderate-income persons or the construction in a designated
1322	brownfield area of affordable housing for persons described in
1323	s. 420.0004(8), (10), (11), or (15) or in s. 159.603(7).
1324	c.  "Mixed-use project" means the conversion of an existing
1325	manufacturing or industrial building to mixed-use units that
1326	include artists' studios, art and entertainment services, or
1327	other compatible uses. A mixed-use project must be located in an
1328	urban high-crime area, enterprise zone, empowerment zone, Front
1329	Porch Community, designated brownfield area, or urban infill
1330	area, and the developer must agree to set aside at least 20
1331	percent of the square footage of the project for low-income and
1332	moderate-income housing.
1333	d.  "Substantially completed" has the same meaning as
1334	provided in s. 192.042(1).
1335	2.  Building materials used in the construction of a
1336	housing project or mixed-use project are exempt from the tax
1337	imposed by this chapter upon an affirmative showing to the
1338	satisfaction of the department that the requirements of this
1339	paragraph have been met. This exemption inures to the owner
1340	through a refund of previously paid taxes. To receive this
1341	refund, the owner must file an application under oath with the
1342	department which includes:
1343	a.  The name and address of the owner.
1344	b.  The address and assessment roll parcel number of the
1345	project for which a refund is sought.
1346	c.  A copy of the building permit issued for the project.
1347	d.  A certification by the local building code inspector
1348	that the project is substantially completed.
1349	e.  A sworn statement, under penalty of perjury, from the
1350	general contractor licensed in this state with whom the owner
1351	contracted to construct the project, which statement lists the
1352	building materials used in the construction of the project and
1353	the actual cost thereof, and the amount of sales tax paid on
1354	these materials. If a general contractor was not used, the owner
1355	shall provide this information in a sworn statement, under
1356	penalty of perjury. Copies of invoices evidencing payment of
1357	sales tax must be attached to the sworn statement.
1358	3.  An application for a refund under this paragraph must
1359	be submitted to the department within 6 months after the date
1360	the project is deemed to be substantially completed by the local
1361	building code inspector. Within 30 working days after receipt of
1362	the application, the department shall determine if it meets the
1363	requirements of this paragraph. A refund approved pursuant to
1364	this paragraph shall be made within 30 days after formal
1365	approval of the application by the department.
1366	4.  The department shall establish by rule an application
1367	form and criteria for establishing eligibility for exemption
1368	under this paragraph.
1369	5.  The exemption shall apply to purchases of materials on
1370	or after July 1, 2000.
1371	(p)  Community contribution tax credit for donations.--
1372	1.  Authorization.--Persons who are registered with the
1373	department under s. 212.18 to collect or remit sales or use tax
1374	and who make donations to eligible sponsors are eligible for tax
1375	credits against their state sales and use tax liabilities as
1376	provided in this paragraph:
1377	a.  The credit shall be computed as 50 percent of the
1378	person's approved annual community contribution.
1379	b.  The credit shall be granted as a refund against state
1380	sales and use taxes reported on returns and remitted in the 12
1381	months preceding the date of application to the department for
1382	the credit as required in sub-subparagraph 3.c. If the annual
1383	credit is not fully used through such refund because of
1384	insufficient tax payments during the applicable 12-month period,
1385	the unused amount may be included in an application for a refund
1386	made pursuant to sub-subparagraph 3.c. in subsequent years
1387	against the total tax payments made for such year. Carryover
1388	credits may be applied for a 3-year period without regard to any
1389	time limitation that would otherwise apply under s. 215.26.
1390	c.  A person may not receive more than $200,000 in annual
1391	tax credits for all approved community contributions made in any
1392	one year.
1393	d.  All proposals for the granting of the tax credit
1394	require the prior approval of the Office of Tourism, Trade, and
1395	Economic Development.
1396	e.  The total amount of tax credits which may be granted
1397	for all programs approved under this paragraph, s. 220.183, and
1398	s. 624.5105 is $10.5 million annually for projects that provide
1399	homeownership opportunities for low-income or very-low-income
1400	households as defined in s. 420.9071(19) and (28) and $3.5
1401	million annually for all other projects.
1402	f.  A person who is eligible to receive the credit provided
1403	for in this paragraph, s. 220.183, or s. 624.5105 may receive
1404	the credit only under the one section of the person's choice.
1405	2.  Eligibility requirements.--
1406	a.  A community contribution by a person must be in the
1407	following form:
1408	(I)  Cash or other liquid assets;
1409	(II)  Real property;
1410	(III)  Goods or inventory; or
1411	(IV)  Other physical resources as identified by the Office
1412	of Tourism, Trade, and Economic Development.
1413	b.  All community contributions must be reserved
1414	exclusively for use in a project. As used in this sub-
1415	subparagraph, the term "project" means any activity undertaken
1416	by an eligible sponsor which is designed to construct, improve,
1417	or substantially rehabilitate housing that is affordable to low-
1418	income or very-low-income households as defined in s.
1419	420.9071(19) and (28); designed to provide commercial,
1420	industrial, or public resources and facilities; or designed to
1421	improve entrepreneurial and job-development opportunities for
1422	low-income persons. A project may be the investment necessary to
1423	increase access to high-speed broadband capability in rural
1424	communities with enterprise zones, including projects that
1425	result in improvements to communications assets that are owned
1426	by a business. A project may include the provision of museum
1427	educational programs and materials that are directly related to
1428	any project approved between January 1, 1996, and December 31,
1429	1999, and located in an enterprise zone designated pursuant to
1430	s. 290.0065. This paragraph does not preclude projects that
1431	propose to construct or rehabilitate housing for low-income or
1432	very-low-income households on scattered sites. With respect to
1433	housing, contributions may be used to pay the following eligible
1434	low-income and very-low-income housing-related activities:
1435	(I)  Project development impact and management fees for
1436	low-income or very-low-income housing projects;
1437	(II)  Down payment and closing costs for eligible persons,
1438	as defined in s. 420.9071(19) and (28);
1439	(III)  Administrative costs, including housing counseling
1440	and marketing fees, not to exceed 10 percent of the community
1441	contribution, directly related to low-income or very-low-income
1442	projects; and
1443	(IV)  Removal of liens recorded against residential
1444	property by municipal, county, or special district local
1445	governments when satisfaction of the lien is a necessary
1446	precedent to the transfer of the property to an eligible person,
1447	as defined in s. 420.9071(19) and (28), for the purpose of
1448	promoting home ownership. Contributions for lien removal must be
1449	received from a nonrelated third party.
1450	c.  The project must be undertaken by an "eligible
1451	sponsor," which includes:
1452	(I)  A community action program;
1453	(II)  A nonprofit community-based development organization
1454	whose mission is the provision of housing for low-income or
1455	very-low-income households or increasing entrepreneurial and
1456	job-development opportunities for low-income persons;
1457	(III)  A neighborhood housing services corporation;
1458	(IV)  A local housing authority created under chapter 421;
1459	(V)  A community redevelopment agency created under s.
1460	163.356;
1461	(VI)  The Florida Industrial Development Corporation;
1462	(VII)  A historic preservation district agency or
1463	organization;
1464	(VIII)  A regional workforce board;
1465	(IX)  A direct-support organization as provided in s.
1466	1009.983;
1467	(X)  An enterprise zone development agency created under s.
1468	290.0056;
1469	(XI)  A community-based organization incorporated under
1470	chapter 617 which is recognized as educational, charitable, or
1471	scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
1472	and whose bylaws and articles of incorporation include
1473	affordable housing, economic development, or community
1474	development as the primary mission of the corporation;
1475	(XII)  Units of local government;
1476	(XIII)  Units of state government; or
1477	(XIV)  Any other agency that the Office of Tourism, Trade,
1478	and Economic Development designates by rule.
1479
1480	In no event may a contributing person have a financial interest
1481	in the eligible sponsor.
1482	d.  The project must be located in an area designated an
1483	enterprise zone or a Front Porch Florida Community pursuant to
1484	s. 20.18(6), unless the project increases access to high-speed
1485	broadband capability for rural communities with enterprise zones
1486	but is physically located outside the designated rural zone
1487	boundaries. Any project designed to construct or rehabilitate
1488	housing for low-income or very-low-income households as defined
1489	in s. 420.9071(19) and (28) is exempt from the area requirement
1490	of this sub-subparagraph.
1491	e.(I)  If, during the first 10 business days of the state
1492	fiscal year, eligible tax credit applications for projects that
1493	provide homeownership opportunities for low-income or very-low-
1494	income households as defined in s. 420.9071(19) and (28) are
1495	received for less than the annual tax credits available for
1496	those projects, the Office of Tourism, Trade, and Economic
1497	Development shall grant tax credits for those applications and
1498	shall grant remaining tax credits on a first-come, first-served
1499	basis for any subsequent eligible applications received before
1500	the end of the state fiscal year. If, during the first 10
1501	business days of the state fiscal year, eligible tax credit
1502	applications for projects that provide homeownership
1503	opportunities for low-income or very-low-income households as
1504	defined in s. 420.9071(19) and (28) are received for more than
1505	the annual tax credits available for those projects, the office
1506	shall grant the tax credits for those applications as follows:
1507	(A)  If tax credit applications submitted for approved
1508	projects of an eligible sponsor do not exceed $200,000 in total,
1509	the credits shall be granted in full if the tax credit
1510	applications are approved.
1511	(B)  If tax credit applications submitted for approved
1512	projects of an eligible sponsor exceed $200,000 in total, the
1513	amount of tax credits granted pursuant to sub-sub-sub-
1514	subparagraph (A) shall be subtracted from the amount of
1515	available tax credits, and the remaining credits shall be
1516	granted to each approved tax credit application on a pro rata
1517	basis.
1518	(II)  If, during the first 10 business days of the state
1519	fiscal year, eligible tax credit applications for projects other
1520	than those that provide homeownership opportunities for low-
1521	income or very-low-income households as defined in s.
1522	420.9071(19) and (28) are received for less than the annual tax
1523	credits available for those projects, the office shall grant tax
1524	credits for those applications and shall grant remaining tax
1525	credits on a first-come, first-served basis for any subsequent
1526	eligible applications received before the end of the state
1527	fiscal year. If, during the first 10 business days of the state
1528	fiscal year, eligible tax credit applications for projects other
1529	than those that provide homeownership opportunities for low-
1530	income or very-low-income households as defined in s.
1531	420.9071(19) and (28) are received for more than the annual tax
1532	credits available for those projects, the office shall grant the
1533	tax credits for those applications on a pro rata basis.
1534	3.  Application requirements.--
1535	a.  Any eligible sponsor seeking to participate in this
1536	program must submit a proposal to the Office of Tourism, Trade,
1537	and Economic Development which sets forth the name of the
1538	sponsor, a description of the project, and the area in which the
1539	project is located, together with such supporting information as
1540	is prescribed by rule. The proposal must also contain a
1541	resolution from the local governmental unit in which the project
1542	is located certifying that the project is consistent with local
1543	plans and regulations.
1544	b.  Any person seeking to participate in this program must
1545	submit an application for tax credit to the office which sets
1546	forth the name of the sponsor, a description of the project, and
1547	the type, value, and purpose of the contribution. The sponsor
1548	shall verify the terms of the application and indicate its
1549	receipt of the contribution, which verification must be in
1550	writing and accompany the application for tax credit. The person
1551	must submit a separate tax credit application to the office for
1552	each individual contribution that it makes to each individual
1553	project.
1554	c.  Any person who has received notification from the
1555	office that a tax credit has been approved must apply to the
1556	department to receive the refund. Application must be made on
1557	the form prescribed for claiming refunds of sales and use taxes
1558	and be accompanied by a copy of the notification. A person may
1559	submit only one application for refund to the department within
1560	any 12-month period.
1561	4.  Administration.--
1562	a.  The Office of Tourism, Trade, and Economic Development
1563	may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
1564	to administer this paragraph, including rules for the approval
1565	or disapproval of proposals by a person.
1566	b.  The decision of the office must be in writing, and, if
1567	approved, the notification shall state the maximum credit
1568	allowable to the person. Upon approval, the office shall
1569	transmit a copy of the decision to the Department of Revenue.
1570	c.  The office shall periodically monitor all projects in a
1571	manner consistent with available resources to ensure that
1572	resources are used in accordance with this paragraph; however,
1573	each project must be reviewed at least once every 2 years.
1574	d.  The office shall, in consultation with the Department
1575	of Community Affairs and the statewide and regional housing and
1576	financial intermediaries, market the availability of the
1577	community contribution tax credit program to community-based
1578	organizations.
1579	5.  Notwithstanding sub-subparagraph 1.e., and for the
1580	2008-2009 fiscal year only, the total amount of tax credit which
1581	may be granted for all programs approved under this section and
1582	ss. 220.183 and 624.5105 is $13 million annually for projects
1583	that provide homeownership opportunities for low-income or very-
1584	low-income households as defined in s. 420.9071(19) and (28) and
1585	$3.5 million annually for all other projects. This subparagraph
1586	expires June 30, 2009.
1587	6.  Expiration.--This paragraph expires June 30, 2015;
1588	however, any accrued credit carryover that is unused on that
1589	date may be used until the expiration of the 3-year carryover
1590	period for such credit.
1591	(6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are also
1592	exempt from the tax imposed by this chapter sales made to the
1593	United States Government, a state, or any county, municipality,
1594	or political subdivision of a state when payment is made
1595	directly to the dealer by the governmental entity. This
1596	exemption shall not inure to any transaction otherwise taxable
1597	under this chapter when payment is made by a government employee
1598	by any means, including, but not limited to, cash, check, or
1599	credit card when that employee is subsequently reimbursed by the
1600	governmental entity. This exemption does not include sales of
1601	tangible personal property made to contractors employed either
1602	directly or as agents of any such government or political
1603	subdivision thereof when such tangible personal property goes
1604	into or becomes a part of public works owned by such government
1605	or political subdivision. A determination whether a particular
1606	transaction is properly characterized as an exempt sale to a
1607	government entity or a taxable sale to a contractor shall be
1608	based on the substance of the transaction rather than the form
1609	in which the transaction is cast. The department shall adopt
1610	rules that give special consideration to factors that govern the
1611	status of the tangible personal property before its affixation
1612	to real property. In developing these rules, assumption of the
1613	risk of damage or loss is of paramount consideration in the
1614	determination. This exemption does not include sales, rental,
1615	use, consumption, or storage for use in any political
1616	subdivision or municipality in this state of machines and
1617	equipment and parts and accessories therefor used in the
1618	generation, transmission, or distribution of electrical energy
1619	by systems owned and operated by a political subdivision in this
1620	state for transmission or distribution expansion. Likewise
1621	exempt are charges for services rendered by radio and television
1622	stations, including line charges, talent fees, or license fees
1623	and charges for films, videotapes, and transcriptions used in
1624	producing radio or television broadcasts. The exemption provided
1625	in this subsection does not include sales, rental, use,
1626	consumption, or storage for use in any political subdivision or
1627	municipality in this state of machines and equipment and parts
1628	and accessories therefor used in providing two-way
1629	telecommunications services to the public for hire by the use of
1630	a telecommunications facility, as defined in s. 364.02(15), and
1631	for which a certificate is required under chapter 364, which
1632	facility is owned and operated by any county, municipality, or
1633	other political subdivision of the state. Any immunity of any
1634	political subdivision of the state or other entity of local
1635	government from taxation of the property used to provide
1636	telecommunication services that is taxed as a result of this
1637	section is hereby waived. However, the exemption provided in
1638	this subsection includes transactions taxable under this chapter
1639	which are for use by the operator of a public-use airport, as
1640	defined in s. 332.004, in providing such telecommunications
1641	services for the airport or its tenants, concessionaires, or
1642	licensees, or which are for use by a public hospital for the
1643	provision of such telecommunications services.
1644	(3)(7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to
1645	any entity by this chapter do not inure to any transaction that
1646	is otherwise taxable under this chapter when payment is made by
1647	a representative or employee of the entity by any means,
1648	including, but not limited to, cash, check, or credit card, even
1649	when that representative or employee is subsequently reimbursed
1650	by the entity. In addition, exemptions provided to any entity by
1651	this subsection do not inure to any transaction that is
1652	otherwise taxable under this chapter unless the entity has
1653	obtained a sales tax exemption certificate from the department
1654	or the entity obtains or provides other documentation as
1655	required by the department. Eligible purchases or leases made
1656	with such a certificate must be in strict compliance with this
1657	subsection and departmental rules, and any person who makes an
1658	exempt purchase with a certificate that is not in strict
1659	compliance with this subsection and the rules is liable for and
1660	shall pay the tax. The department may adopt rules to administer
1661	this subsection.
1662	(a)  Artificial commemorative flowers.--Exempt from the tax
1663	imposed by this chapter is the sale of artificial commemorative
1664	flowers by bona fide nationally chartered veterans'
1665	organizations.
1666	(b)  Boiler fuels.--When purchased for use as a combustible
1667	fuel, purchases of natural gas, residual oil, recycled oil,
1668	waste oil, solid waste material, coal, sulfur, wood, wood
1669	residues or wood bark used in an industrial manufacturing,
1670	processing, compounding, or production process at a fixed
1671	location in this state are exempt from the taxes imposed by this
1672	chapter; however, such exemption shall not be allowed unless the
1673	purchaser signs a certificate stating that the fuel to be
1674	exempted is for the exclusive use designated herein. This
1675	exemption does not apply to the use of boiler fuels that are not
1676	used in manufacturing, processing, compounding, or producing
1677	items of tangible personal property for sale, or to the use of
1678	boiler fuels used by any firm subject to regulation by the
1679	Division of Hotels and Restaurants of the Department of Business
1680	and Professional Regulation.
1681	(c)  Crustacea bait.--Also exempt from the tax imposed by
1682	this chapter is the purchase by commercial fishers of bait
1683	intended solely for use in the entrapment of Callinectes sapidus
1684	and Menippe mercenaria.
1685	(d)  Feeds.--Feeds for poultry, ostriches, and livestock,
1686	including racehorses and dairy cows, are exempt.
1687	(e)  Film rentals.--Film rentals are exempt when an
1688	admission is charged for viewing such film, and license fees and
1689	direct charges for films, videotapes, and transcriptions used by
1690	television or radio stations or networks are exempt.
1691	(f)  Flags.--Also exempt are sales of the flag of the
1692	United States and the official state flag of Florida.
1693	(g)  Florida Retired Educators Association and its local
1694	chapters.--Also exempt from payment of the tax imposed by this
1695	chapter are purchases of office supplies, equipment, and
1696	publications made by the Florida Retired Educators Association
1697	and its local chapters.
1698	(a)(h)  Guide dogs for the blind.--Also exempt are the sale
1699	or rental of guide dogs for the blind, commonly referred to as
1700	"seeing-eye dogs," and the sale of food or other items for such
1701	guide dogs.
1702	1.  The department shall issue a consumer's certificate of
1703	exemption to any blind person who holds an identification card
1704	as provided for in s. 413.091 and who either owns or rents, or
1705	contemplates the ownership or rental of, a guide dog for the
1706	blind. The consumer's certificate of exemption shall be issued
1707	without charge and shall be of such size as to be capable of
1708	being carried in a wallet or billfold.
1709	2.  The department shall make such rules concerning items
1710	exempt from tax under the provisions of this paragraph as may be
1711	necessary to provide that any person authorized to have a
1712	consumer's certificate of exemption need only present such a
1713	certificate at the time of paying for exempt goods and shall not
1714	be required to pay any tax thereon.
1715	(i)  Hospital meals and rooms.--Also exempt from payment of
1716	the tax imposed by this chapter on rentals and meals are
1717	patients and inmates of any hospital or other physical plant or
1718	facility designed and operated primarily for the care of persons
1719	who are ill, aged, infirm, mentally or physically incapacitated,
1720	or otherwise dependent on special care or attention. Residents
1721	of a home for the aged are exempt from payment of taxes on meals
1722	provided through the facility. A home for the aged is defined as
1723	a facility that is licensed or certified in part or in whole
1724	under chapter 400, chapter 429, or chapter 651, or that is
1725	financed by a mortgage loan made or insured by the United States
1726	Department of Housing and Urban Development under s. 202, s. 202
1727	with a s. 8 subsidy, s. 221(d)(3) or (4), s. 232, or s. 236 of
1728	the National Housing Act, or other such similar facility
1729	designed and operated primarily for the care of the aged.
1730	(b)(j)  Household fuels.--Also exempt from payment of the
1731	tax imposed by this chapter are sales of utilities to
1732	residential households or owners of residential models in this
1733	state by utility companies who pay the gross receipts tax
1734	imposed under s. 203.01, and sales of fuel to residential
1735	households or owners of residential models, including oil,
1736	kerosene, liquefied petroleum gas, coal, wood, and other fuel
1737	products used in the household or residential model for the
1738	purposes of heating, cooking, lighting, and refrigeration,
1739	regardless of whether such sales of utilities and fuels are
1740	separately metered and billed direct to the residents or are
1741	metered and billed to the landlord. If any part of the utility
1742	or fuel is used for a nonexempt purpose, the entire sale is
1743	taxable. The landlord shall provide a separate meter for
1744	nonexempt utility or fuel consumption. For the purposes of this
1745	paragraph, licensed family day care homes shall also be exempt.
1746	(k)  Meals provided by certain nonprofit
1747	organizations.--There is exempt from the tax imposed by this
1748	chapter the sale of prepared meals by a nonprofit volunteer
1749	organization to handicapped, elderly, or indigent persons when
1750	such meals are delivered as a charitable function by the
1751	organization to such persons at their places of residence.
1752	(l)  Organizations providing special educational, cultural,
1753	recreational, and social benefits to minors.--Also exempt from
1754	the tax imposed by this chapter are sales or leases to and sales
1755	of donated property by nonprofit organizations which are
1756	incorporated pursuant to chapter 617 the primary purpose of
1757	which is providing activities that contribute to the development
1758	of good character or good sportsmanship, or to the educational
1759	or cultural development, of minors. This exemption is extended
1760	only to that level of the organization that has a salaried
1761	executive officer or an elected nonsalaried executive officer.
1762	For the purpose of this paragraph, the term "donated property"
1763	means any property transferred to such nonprofit organization
1764	for less than 50 percent of its fair market value.
1765	(m)  Religious institutions.--
1766	1.  There are exempt from the tax imposed by this chapter
1767	transactions involving sales or leases directly to religious
1768	institutions when used in carrying on their customary nonprofit
1769	religious activities or sales or leases of tangible personal
1770	property by religious institutions having an established
1771	physical place for worship at which nonprofit religious services
1772	and activities are regularly conducted and carried on.
1773	2.  As used in this paragraph, the term "religious
1774	institutions" means churches, synagogues, and established
1775	physical places for worship at which nonprofit religious
1776	services and activities are regularly conducted and carried on.
1777	The term "religious institutions" includes nonprofit
1778	corporations the sole purpose of which is to provide free
1779	transportation services to church members, their families, and
1780	other church attendees. The term "religious institutions" also
1781	includes nonprofit state, nonprofit district, or other nonprofit
1782	governing or administrative offices the function of which is to
1783	assist or regulate the customary activities of religious
1784	institutions. The term "religious institutions" also includes
1785	any nonprofit corporation that is qualified as nonprofit under
1786	s. 501(c)(3) of the Internal Revenue Code of 1986, as amended,
1787	and that owns and operates a Florida television station, at
1788	least 90 percent of the programming of which station consists of
1789	programs of a religious nature and the financial support for
1790	which, exclusive of receipts for broadcasting from other
1791	nonprofit organizations, is predominantly from contributions
1792	from the general public. The term "religious institutions" also
1793	includes any nonprofit corporation that is qualified as
1794	nonprofit under s. 501(c)(3) of the Internal Revenue Code of
1795	1986, as amended, the primary activity of which is making and
1796	distributing audio recordings of religious scriptures and
1797	teachings to blind or visually impaired persons at no charge.
1798	The term "religious institutions" also includes any nonprofit
1799	corporation that is qualified as nonprofit under s. 501(c)(3) of
1800	the Internal Revenue Code of 1986, as amended, the sole or
1801	primary function of which is to provide, upon invitation,
1802	nonprofit religious services, evangelistic services, religious
1803	education, administrative assistance, or missionary assistance
1804	for a church, synagogue, or established physical place of
1805	worship at which nonprofit religious services and activities are
1806	regularly conducted.
1807	(n)  Veterans' organizations.--
1808	1.  There are exempt from the tax imposed by this chapter
1809	transactions involving sales or leases to qualified veterans'
1810	organizations and their auxiliaries when used in carrying on
1811	their customary veterans' organization activities.
1812	2.  As used in this paragraph, the term "veterans'
1813	organizations" means nationally chartered or recognized
1814	veterans' organizations, including, but not limited to, Florida
1815	chapters of the Paralyzed Veterans of America, Catholic War
1816	Veterans of the U.S.A., Jewish War Veterans of the U.S.A., and
1817	the Disabled American Veterans, Department of Florida, Inc.,
1818	which hold current exemptions from federal income tax under s.
1819	501(c)(4) or (19) of the Internal Revenue Code of 1986, as
1820	amended.
1821	(o)  Schools, colleges, and universities.--Also exempt from
1822	the tax imposed by this chapter are sales or leases to state
1823	tax-supported schools, colleges, or universities.
1824	(p)  Section 501(c)(3) organizations.--Also exempt from the
1825	tax imposed by this chapter are sales or leases to organizations
1826	determined by the Internal Revenue Service to be currently
1827	exempt from federal income tax pursuant to s. 501(c)(3) of the
1828	Internal Revenue Code of 1986, as amended, when such leases or
1829	purchases are used in carrying on their customary nonprofit
1830	activities.
1831	(q)  Resource recovery equipment.--Also exempt is resource
1832	recovery equipment which is owned and operated by or on behalf
1833	of any county or municipality, certified by the Department of
1834	Environmental Protection under the provisions of s. 403.715.
1835	(r)  School books and school lunches.--This exemption
1836	applies to school books used in regularly prescribed courses of
1837	study, and to school lunches served in public, parochial, or
1838	nonprofit schools operated for and attended by pupils of grades
1839	K through 12. Yearbooks, magazines, newspapers, directories,
1840	bulletins, and similar publications distributed by such
1841	educational institutions to their students are also exempt.
1842	School books and food sold or served at community colleges and
1843	other institutions of higher learning are taxable.
1844	(s)  Tasting beverages.--Vinous and alcoholic beverages
1845	provided by distributors or vendors for the purpose of "wine
1846	tasting" and "spirituous beverage tasting" as contemplated under
1847	the provisions of ss. 564.06 and 565.12, respectively, are
1848	exempt from the tax imposed by this chapter.
1849	(t)  Boats temporarily docked in state.--
1850	1.  Notwithstanding the provisions of chapter 328,
1851	pertaining to the registration of vessels, a boat upon which the
1852	state sales or use tax has not been paid is exempt from the use
1853	tax under this chapter if it enters and remains in this state
1854	for a period not to exceed a total of 20 days in any calendar
1855	year calculated from the date of first dockage or slippage at a
1856	facility, registered with the department, that rents dockage or
1857	slippage space in this state. If a boat brought into this state
1858	for use under this paragraph is placed in a facility, registered
1859	with the department, for repairs, alterations, refitting, or
1860	modifications and such repairs, alterations, refitting, or
1861	modifications are supported by written documentation, the 20-day
1862	period shall be tolled during the time the boat is physically in
1863	the care, custody, and control of the repair facility, including
1864	the time spent on sea trials conducted by the facility. The 20-
1865	day time period may be tolled only once within a calendar year
1866	when a boat is placed for the first time that year in the
1867	physical care, custody, and control of a registered repair
1868	facility; however, the owner may request and the department may
1869	grant an additional tolling of the 20-day period for purposes of
1870	repairs that arise from a written guarantee given by the
1871	registered repair facility, which guarantee covers only those
1872	repairs or modifications made during the first tolled period.
1873	Within 72 hours after the date upon which the registered repair
1874	facility took possession of the boat, the facility must have in
1875	its possession, on forms prescribed by the department, an
1876	affidavit which states that the boat is under its care, custody,
1877	and control and that the owner does not use the boat while in
1878	the facility. Upon completion of the repairs, alterations,
1879	refitting, or modifications, the registered repair facility
1880	must, within 72 hours after the date of release, have in its
1881	possession a copy of the release form which shows the date of
1882	release and any other information the department requires. The
1883	repair facility shall maintain a log that documents all
1884	alterations, additions, repairs, and sea trials during the time
1885	the boat is under the care, custody, and control of the
1886	facility. The affidavit shall be maintained by the registered
1887	repair facility as part of its records for as long as required
1888	by s. 213.35. When, within 6 months after the date of its
1889	purchase, a boat is brought into this state under this
1890	paragraph, the 6-month period provided in s. 212.05(1)(a)2. or
1891	s. 212.06(8) shall be tolled.
1892	2.  During the period of repairs, alterations, refitting,
1893	or modifications and during the 20-day period referred to in
1894	subparagraph 1., the boat may be listed for sale, contracted for
1895	sale, or sold exclusively by a broker or dealer registered with
1896	the department without incurring a use tax under this chapter;
1897	however, the sales tax levied under this chapter applies to such
1898	sale.
1899	3.  The mere storage of a boat at a registered repair
1900	facility does not qualify as a tax-exempt use in this state.
1901	4.  As used in this paragraph, "registered repair facility"
1902	means:
1903	a.  A full-service facility that:
1904	(I)  Is located on a navigable body of water;
1905	(II)  Has haulout capability such as a dry dock, travel
1906	lift, railway, or similar equipment to service craft under the
1907	care, custody, and control of the facility;
1908	(III)  Has adequate piers and storage facilities to provide
1909	safe berthing of vessels in its care, custody, and control; and
1910	(IV)  Has necessary shops and equipment to provide repair
1911	or warranty work on vessels under the care, custody, and control
1912	of the facility;
1913	b.  A marina that:
1914	(I)  Is located on a navigable body of water;
1915	(II)  Has adequate piers and storage facilities to provide
1916	safe berthing of vessels in its care, custody, and control; and
1917	(III)  Has necessary shops and equipment to provide repairs
1918	or warranty work on vessels; or
1919	c.  A shoreside facility that:
1920	(I)  Is located on a navigable body of water;
1921	(II)  Has adequate piers and storage facilities to provide
1922	safe berthing of vessels in its care, custody, and control; and
1923	(III)  Has necessary shops and equipment to provide repairs
1924	or warranty work.
1925	(u)  Volunteer fire departments.--Also exempt are
1926	firefighting and rescue service equipment and supplies purchased
1927	by volunteer fire departments, duly chartered under the Florida
1928	Statutes as corporations not for profit.
1929	(v)  Professional services.--
1930	1.  Also exempted are professional, insurance, or personal
1931	service transactions that involve sales as inconsequential
1932	elements for which no separate charges are made.
1933	2.  The personal service transactions exempted pursuant to
1934	subparagraph 1. do not exempt the sale of information services
1935	involving the furnishing of printed, mimeographed, or
1936	multigraphed matter, or matter duplicating written or printed
1937	matter in any other manner, other than professional services and
1938	services of employees, agents, or other persons acting in a
1939	representative or fiduciary capacity or information services
1940	furnished to newspapers and radio and television stations. As
1941	used in this subparagraph, the term "information services"
1942	includes the services of collecting, compiling, or analyzing
1943	information of any kind or nature and furnishing reports thereof
1944	to other persons.
1945	3.  This exemption does not apply to any service warranty
1946	transaction taxable under s. 212.0506.
1947	4.  This exemption does not apply to any service
1948	transaction taxable under s. 212.05(1)(i).
1949	(w)  Certain newspaper, magazine, and newsletter
1950	subscriptions, shoppers, and community newspapers.--Likewise
1951	exempt are newspaper, magazine, and newsletter subscriptions in
1952	which the product is delivered to the customer by mail. Also
1953	exempt are free, circulated publications that are published on a
1954	regular basis, the content of which is primarily advertising,
1955	and that are distributed through the mail, home delivery, or
1956	newsstands. The exemption for newspaper, magazine, and
1957	newsletter subscriptions which is provided in this paragraph
1958	applies only to subscriptions entered into after March 1, 1997.
1959	(x)  Sporting equipment brought into the state.--Sporting
1960	equipment brought into Florida, for a period of not more than 4
1961	months in any calendar year, used by an athletic team or an
1962	individual athlete in a sporting event is exempt from the use
1963	tax if such equipment is removed from the state within 7 days
1964	after the completion of the event.
1965	(y)  Charter fishing vessels.--The charge for chartering
1966	any boat or vessel, with the crew furnished, solely for the
1967	purpose of fishing is exempt from the tax imposed under s.
1968	212.04 or s. 212.05. This exemption does not apply to any charge
1969	to enter or stay upon any "head-boat," party boat, or other boat
1970	or vessel. Nothing in this paragraph shall be construed to
1971	exempt any boat from sales or use tax upon the purchase thereof
1972	except as provided in paragraph (t) and s. 212.05.
1973	(z)  Vending machines sponsored by nonprofit or charitable
1974	organizations.--Also exempt are food or drinks for human
1975	consumption sold for 25 cents or less through a coin-operated
1976	vending machine sponsored by a nonprofit corporation qualified
1977	as nonprofit pursuant to s. 501(c)(3) or (4) of the Internal
1978	Revenue Code of 1986, as amended.
1979	(aa)  Certain commercial vehicles.--Also exempt is the
1980	sale, lease, or rental of a commercial motor vehicle as defined
1981	in s. 207.002(2), when the following conditions are met:
1982	1.  The sale, lease, or rental occurs between two commonly
1983	owned and controlled corporations;
1984	2.  Such vehicle was titled and registered in this state at
1985	the time of the sale, lease, or rental; and
1986	3.  Florida sales tax was paid on the acquisition of such
1987	vehicle by the seller, lessor, or renter.
1988	(bb)  Community cemeteries.--Also exempt are purchases by
1989	any nonprofit corporation that has qualified under s. 501(c)(13)
1990	of the Internal Revenue Code of 1986, as amended, and is
1991	operated for the purpose of maintaining a cemetery that was
1992	donated to the community by deed.
1993	(cc)  Works of art.--
1994	1.  Also exempt are works of art sold to or used by an
1995	educational institution.
1996	2.  This exemption also applies to the sale to or use in
1997	this state of any work of art by any person if it was purchased
1998	or imported exclusively for the purpose of being donated to any
1999	educational institution, or loaned to and made available for
2000	display by any educational institution, provided that the term
2001	of the loan agreement is for at least 10 years.
2002	3.  The exemption provided by this paragraph for donations
2003	is allowed only if the person who purchased the work of art
2004	transfers title to the donated work of art to an educational
2005	institution. Such transfer of title shall be evidenced by an
2006	affidavit meeting requirements established by rule to document
2007	entitlement to the exemption. Nothing in this paragraph shall
2008	preclude a work of art donated to an educational institution
2009	from remaining in the possession of the donor or purchaser, as
2010	long as title to the work of art lies with the educational
2011	institution.
2012	4.  A work of art is presumed to have been purchased in or
2013	imported into this state exclusively for loan as provided in
2014	subparagraph 2., if it is so loaned or placed in storage in
2015	preparation for such a loan within 90 days after purchase or
2016	importation, whichever is later; but a work of art is not deemed
2017	to be placed in storage in preparation for loan for purposes of
2018	this exemption if it is displayed at any place other than an
2019	educational institution.
2020	5.  The exemptions provided by this paragraph are allowed
2021	only if the person who purchased the work of art gives to the
2022	vendor an affidavit meeting the requirements, established by
2023	rule, to document entitlement to the exemption. The person who
2024	purchased the work of art shall forward a copy of such affidavit
2025	to the Department of Revenue at the time it is issued to the
2026	vendor.
2027	6.  The exemption for loans provided by subparagraph 2.
2028	applies only for the period during which a work of art is in the
2029	possession of the educational institution or is in storage
2030	before transfer of possession to that institution; and when it
2031	ceases to be so possessed or held, tax based upon the sales
2032	price paid by the owner is payable, and the statute of
2033	limitations provided in s. 95.091 shall begin to run at that
2034	time. However, tax shall not become due if the work of art is
2035	donated to an educational institution after the loan ceases.
2036	7.  Any educational institution to which a work of art has
2037	been donated pursuant to this paragraph shall make available to
2038	the department the title to the work of art and any other
2039	relevant information. Any educational institution which has
2040	received a work of art on loan pursuant to this paragraph shall
2041	make available to the department information relating to the
2042	work of art. Any educational institution that transfers from its
2043	possession a work of art as defined by this paragraph which has
2044	been loaned to it must notify the Department of Revenue within
2045	60 days after the transfer.
2046	8.  For purposes of the exemptions provided by this
2047	paragraph, the term:
2048	a.  "Educational institutions" includes state tax-
2049	supported, parochial, church, and nonprofit private schools,
2050	colleges, or universities that conduct regular classes and
2051	courses of study required for accreditation by or membership in
2052	the Southern Association of Colleges and Schools, the Florida
2053	Council of Independent Schools, or the Florida Association of
2054	Christian Colleges and Schools, Inc.; nonprofit private schools
2055	that conduct regular classes and courses of study accepted for
2056	continuing education credit by a board of the Division of
2057	Medical Quality Assurance of the Department of Health; or
2058	nonprofit libraries, art galleries, performing arts centers that
2059	provide educational programs to school children, which programs
2060	involve performances or other educational activities at the
2061	performing arts center and serve a minimum of 50,000 school
2062	children a year, and museums open to the public.
2063	b.  "Work of art" includes pictorial representations,
2064	sculpture, jewelry, antiques, stamp collections and coin
2065	collections, and other tangible personal property, the value of
2066	which is attributable predominantly to its artistic, historical,
2067	political, cultural, or social importance.
2068	(dd)  Taxicab leases.--The lease of or license to use a
2069	taxicab or taxicab-related equipment and services provided by a
2070	taxicab company to an independent taxicab operator are exempt,
2071	provided, however, the exemptions provided under this paragraph
2072	only apply if sales or use tax has been paid on the acquisition
2073	of the taxicab and its related equipment.
2074	(ee)  Aircraft repair and maintenance labor charges.--There
2075	shall be exempt from the tax imposed by this chapter all labor
2076	charges for the repair and maintenance of qualified aircraft,
2077	aircraft of more than 15,000 pounds maximum certified takeoff
2078	weight, and rotary wing aircraft of more than 10,000 pounds
2079	maximum certified takeoff weight. Except as otherwise provided
2080	in this chapter, charges for parts and equipment furnished in
2081	connection with such labor charges are taxable.
2082	(ff)  Certain electricity or steam uses.--
2083	1.  Subject to the provisions of subparagraph 4., charges
2084	for electricity or steam used to operate machinery and equipment
2085	at a fixed location in this state when such machinery and
2086	equipment is used to manufacture, process, compound, produce, or
2087	prepare for shipment items of tangible personal property for
2088	sale, or to operate pollution control equipment, recycling
2089	equipment, maintenance equipment, or monitoring or control
2090	equipment used in such operations are exempt to the extent
2091	provided in this paragraph. If 75 percent or more of the
2092	electricity or steam used at the fixed location is used to
2093	operate qualifying machinery or equipment, 100 percent of the
2094	charges for electricity or steam used at the fixed location are
2095	exempt. If less than 75 percent but 50 percent or more of the
2096	electricity or steam used at the fixed location is used to
2097	operate qualifying machinery or equipment, 50 percent of the
2098	charges for electricity or steam used at the fixed location are
2099	exempt. If less than 50 percent of the electricity or steam used
2100	at the fixed location is used to operate qualifying machinery or
2101	equipment, none of the charges for electricity or steam used at
2102	the fixed location are exempt.
2103	2.  This exemption applies only to industries classified
2104	under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2105	23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2106	and 39 and Industry Group Number 212. As used in this paragraph,
2107	"SIC" means those classifications contained in the Standard
2108	Industrial Classification Manual, 1987, as published by the
2109	Office of Management and Budget, Executive Office of the
2110	President.
2111	3.  Possession by a seller of a written certification by
2112	the purchaser, certifying the purchaser's entitlement to an
2113	exemption permitted by this subsection, relieves the seller from
2114	the responsibility of collecting the tax on the nontaxable
2115	amounts, and the department shall look solely to the purchaser
2116	for recovery of such tax if it determines that the purchaser was
2117	not entitled to the exemption.
2118	4.  Such exemption shall be applied as follows: beginning
2119	July 1, 2000, 100 percent of the charges for such electricity or
2120	steam shall be exempt.
2121	(gg)  Fair associations.--Also exempt from the tax imposed
2122	by this chapter is the sale, use, lease, rental, or grant of a
2123	license to use, made directly to or by a fair association, of
2124	real or tangible personal property; any charge made by a fair
2125	association, or its agents, for parking, admissions, or for
2126	temporary parking of vehicles used for sleeping quarters;
2127	rentals, subleases, and sublicenses of real or tangible personal
2128	property between the owner of the central amusement attraction
2129	and any owner of an amusement ride, as those terms are used in
2130	ss. 616.15(1)(b) and 616.242(3)(a), for the furnishing of
2131	amusement rides at a public fair or exposition; and other
2132	transactions of a fair association which are incurred directly
2133	by the fair association in the financing, construction, and
2134	operation of a fair, exposition, or other event or facility that
2135	is authorized by s. 616.08. As used in this paragraph, the terms
2136	"fair association" and "public fair or exposition" have the same
2137	meaning as those terms are defined in s. 616.001. This exemption
2138	does not apply to the sale of tangible personal property made by
2139	a fair association through an agent or independent contractor;
2140	sales of admissions and tangible personal property by a
2141	concessionaire, vendor, exhibitor, or licensee; or rentals and
2142	subleases of tangible personal property or real property between
2143	the owner of the central amusement attraction and a
2144	concessionaire, vendor, exhibitor, or licensee, except for the
2145	furnishing of amusement rides, which transactions are exempt.
2146	(hh)  Solar energy systems.--Also exempt are solar energy
2147	systems or any component thereof. The Florida Solar Energy
2148	Center shall from time to time certify to the department a list
2149	of equipment and requisite hardware considered to be a solar
2150	energy system or a component thereof.
2151	(ii)  Nonprofit cooperative hospital laundries.--Also
2152	exempt are sales or leases to nonprofit organizations that are
2153	incorporated under chapter 617 and which are treated, for
2154	federal income tax purposes, as cooperatives under subchapter T
2155	of the Internal Revenue Code, whose sole purpose is to offer
2156	laundry supplies and services to their members who must all be
2157	exempt from federal income tax pursuant to s. 501(c)(3) of the
2158	Internal Revenue Code. A member of a nonprofit cooperative
2159	hospital laundry whose Internal Revenue Code status changes
2160	shall, within 90 days after such change, divest all
2161	participation in the cooperative. The provision of laundry
2162	supplies and services to a nonmember business pursuant to a
2163	declaration of emergency under s. 252.36(2) and a written
2164	emergency plan of operation executed by the members of the
2165	cooperative does not invalidate or cause the denial of a
2166	cooperative's certificate of exemption.
2167	(jj)  Complimentary meals.--Also exempt from the tax
2168	imposed by this chapter are food or drinks that are furnished as
2169	part of a packaged room rate by any person offering for rent or
2170	lease any transient living accommodations as described in s.
2171	509.013(4)(a) which are licensed under part I of chapter 509 and
2172	which are subject to the tax under s. 212.03, if a separate
2173	charge or specific amount for the food or drinks is not shown.
2174	Such food or drinks are considered to be sold at retail as part
2175	of the total charge for the transient living accommodations.
2176	Moreover, the person offering the accommodations is not
2177	considered to be the consumer of items purchased in furnishing
2178	such food or drinks and may purchase those items under
2179	conditions of a sale for resale.
2180	(kk)  Nonprofit corporation conducting the correctional
2181	work programs.--Products sold pursuant to s. 946.515 by the
2182	corporation organized pursuant to part II of chapter 946 are
2183	exempt from the tax imposed by this chapter. This exemption
2184	applies retroactively to July 1, 1983.
2185	(ll)  Parent-teacher organizations, parent-teacher
2186	associations, and schools having grades K through 12.--
2187	1.  Sales or leases to parent-teacher organizations and
2188	associations the purpose of which is to raise funds for schools
2189	that teach grades K through 12 and that are associated with
2190	schools having grades K through 12 are exempt from the tax
2191	imposed by this chapter.
2192	2.  Parent-teacher organizations and associations described
2193	in subparagraph 1., and schools having grades K through 12, may
2194	pay tax to their suppliers on the cost price of school materials
2195	and supplies purchased, rented, or leased for resale or rental
2196	to students in grades K through 12, of items sold for
2197	fundraising purposes, and of items sold through vending machines
2198	located on the school premises, in lieu of collecting the tax
2199	imposed by this chapter from the purchaser. This paragraph also
2200	applies to food or beverages sold through vending machines
2201	located in the student lunchroom or dining room of a school
2202	having kindergarten through grade 12.
2203	(mm)  Mobile home lot improvements.--Items purchased by
2204	developers for use in making improvements to a mobile home lot
2205	owned by the developer may be purchased tax-exempt as a sale for
2206	resale if made pursuant to a contract that requires the
2207	developer to sell a mobile home to a purchaser, place the mobile
2208	home on the lot, and make the improvements to the lot for a
2209	single lump-sum price. The developer must collect and remit
2210	sales tax on the entire lump-sum price.
2211	(nn)  Veterans Administration.--When a veteran of the armed
2212	forces purchases an aircraft, boat, mobile home, motor vehicle,
2213	or other vehicle from a dealer pursuant to the provisions of 38
2214	U.S.C. s. 3902(a), or any successor provision of the United
2215	States Code, the amount that is paid directly to the dealer by
2216	the Veterans Administration is not taxable. However, any portion
2217	of the purchase price which is paid directly to the dealer by
2218	the veteran is taxable.
2219	(oo)  Complimentary items.--There is exempt from the tax
2220	imposed by this chapter:
2221	1.  Any food or drink, whether or not cooked or prepared on
2222	the premises, provided without charge as a sample or for the
2223	convenience of customers by a dealer that primarily sells food
2224	product items at retail.
2225	2.  Any item given to a customer as part of a price
2226	guarantee plan related to point-of-sale errors by a dealer that
2227	primarily sells food products at retail.
2228
2229	The exemptions in this paragraph do not apply to businesses with
2230	the primary activity of serving prepared meals or alcoholic
2231	beverages for immediate consumption.
2232	(pp)  Donated foods or beverages.--Any food or beverage
2233	donated by a dealer that sells food products at retail to a food
2234	bank or an organization that holds a current exemption from
2235	federal corporate income tax pursuant to s. 501(c) of the
2236	Internal Revenue Code of 1986, as amended, is exempt from the
2237	tax imposed by this chapter.
2238	(qq)  Racing dogs.--The sale of a racing dog by its owner
2239	is exempt if the owner is also the breeder of the animal.
2240	(rr)  Equipment used in aircraft repair and
2241	maintenance.--There shall be exempt from the tax imposed by this
2242	chapter replacement engines, parts, and equipment used in the
2243	repair or maintenance of qualified aircraft, aircraft of more
2244	than 15,000 pounds maximum certified takeoff weight, and rotary
2245	wing aircraft of more than 10,300 pounds maximum certified
2246	takeoff weight, when such parts or equipment are installed on
2247	such aircraft that is being repaired or maintained in this
2248	state.
2249	(ss)  Aircraft sales or leases.--The sale or lease of a
2250	qualified aircraft or an aircraft of more than 15,000 pounds
2251	maximum certified takeoff weight for use by a common carrier is
2252	exempt from the tax imposed by this chapter. As used in this
2253	paragraph, "common carrier" means an airline operating under
2254	Federal Aviation Administration regulations contained in Title
2255	14, chapter I, part 121 or part 129 of the Code of Federal
2256	Regulations.
2257	(tt)  Nonprofit water systems.--Sales or leases to a not-
2258	for-profit corporation which holds a current exemption from
2259	federal income tax under s. 501(c)(4) or (12) of the Internal
2260	Revenue Code, as amended, are exempt from the tax imposed by
2261	this chapter if the sole or primary function of the corporation
2262	is to construct, maintain, or operate a water system in this
2263	state.
2264	(uu)  Library cooperatives.--Sales or leases to library
2265	cooperatives certified under s. 257.41(2) are exempt from the
2266	tax imposed by this chapter.
2267	(vv)  Advertising agencies.--
2268	1.  As used in this paragraph, the term "advertising
2269	agency" means any firm that is primarily engaged in the business
2270	of providing advertising materials and services to its clients.
2271	2.  The sale of advertising services by an advertising
2272	agency to a client is exempt from the tax imposed by this
2273	chapter. Also exempt from the tax imposed by this chapter are
2274	items of tangible personal property such as photographic
2275	negatives and positives, videos, films, galleys, mechanicals,
2276	veloxes, illustrations, digital audiotapes, analog tapes,
2277	printed advertisement copies, compact discs for the purpose of
2278	recording, digital equipment, and artwork and the services used
2279	to produce those items if the items are:
2280	a.  Sold to an advertising agency that is acting as an
2281	agent for its clients pursuant to contract, and are created for
2282	the performance of advertising services for the clients;
2283	b.  Produced, fabricated, manufactured, or otherwise
2284	created by an advertising agency for its clients, and are used
2285	in the performance of advertising services for the clients; or
2286	c.  Sold by an advertising agency to its clients in the
2287	performance of advertising services for the clients, whether or
2288	not the charges for these items are marked up or separately
2289	stated.
2290
2291	The exemption provided by this subparagraph does not apply when
2292	tangible personal property such as film, paper, and videotapes
2293	is purchased to create items such as photographic negatives and
2294	positives, videos, films, galleys, mechanicals, veloxes,
2295	illustrations, and artwork that are sold to an advertising
2296	agency or produced in-house by an advertising agency on behalf
2297	of its clients.
2298	3.  The items exempted from tax under subparagraph 2. and
2299	the creative services used by an advertising agency to design
2300	the advertising for promotional goods such as displays, display
2301	containers, exhibits, newspaper inserts, brochures, catalogues,
2302	direct mail letters or flats, shirts, hats, pens, pencils, key
2303	chains, or other printed goods or materials are not subject to
2304	tax. However, when such promotional goods are produced or
2305	reproduced for distribution, tax applies to the sales price
2306	charged to the client for such promotional goods.
2307	4.  For items purchased by an advertising agency and exempt
2308	from tax under this paragraph, possession of an exemption
2309	certificate from the advertising agency certifying the agency's
2310	entitlement to exemption relieves the vendor of the
2311	responsibility of collecting the tax on the sale of such items
2312	to the advertising agency, and the department shall look solely
2313	to the advertising agency for recovery of tax if it determines
2314	that the advertising agency was not entitled to the exemption.
2315	5.  The exemptions provided by this paragraph apply
2316	retroactively, except that all taxes that have been collected
2317	must be remitted, and taxes that have been remitted before July
2318	1, 1999, on transactions that are subject to exemption under
2319	this paragraph are not subject to refund.
2320	6.  The department may adopt rules that interpret or define
2321	the provisions of these exemptions and provide examples
2322	regarding the application of these exemptions.
2323	(ww)  Bullion.--The sale of gold, silver, or platinum
2324	bullion, or any combination thereof, in a single transaction is
2325	exempt if the sales price exceeds $500. The dealer must maintain
2326	proper documentation, as prescribed by rule of the department,
2327	to identify that portion of a transaction which involves the
2328	sale of gold, silver, or platinum bullion and is exempt under
2329	this paragraph.
2330	(xx)  Certain repair and labor charges.--
2331	1.  Subject to the provisions of subparagraphs 2. and 3.,
2332	there is exempt from the tax imposed by this chapter all labor
2333	charges for the repair of, and parts and materials used in the
2334	repair of and incorporated into, industrial machinery and
2335	equipment which is used for the manufacture, processing,
2336	compounding, production, or preparation for shipping of items of
2337	tangible personal property at a fixed location within this
2338	state.
2339	2.  This exemption applies only to industries classified
2340	under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2341	23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2342	and 39 and Industry Group Number 212. As used in this
2343	subparagraph, "SIC" means those classifications contained in the
2344	Standard Industrial Classification Manual, 1987, as published by
2345	the Office of Management and Budget, Executive Office of the
2346	President.
2347	3.  This exemption shall be applied as follows:
2348	a.  Beginning July 1, 2000, 50 percent of such charges for
2349	repair parts and labor shall be exempt.
2350	b.  Beginning July 1, 2001, 75 percent of such charges for
2351	repair parts and labor shall be exempt.
2352	c.  Beginning July 1, 2002, 100 percent of such charges for
2353	repair parts and labor shall be exempt.
2354	(yy)  Film and other printing supplies.--Also exempt are
2355	the following materials purchased, produced, or created by
2356	businesses classified under SIC Industry Numbers 275, 276, 277,
2357	278, or 279 for use in producing graphic matter for sale: film,
2358	photographic paper, dyes used for embossing and engraving,
2359	artwork, typography, lithographic plates, and negatives. As used
2360	in this paragraph, "SIC" means those classifications contained
2361	in the Standard Industrial Classification Manual, 1987, as
2362	published by the Office of Management and Budget, Executive
2363	Office of the President.
2364	(zz)  People-mover systems.--People-mover systems, and
2365	parts thereof, which are purchased or manufactured by
2366	contractors employed either directly by or as agents for the
2367	United States Government, the state, a county, a municipality, a
2368	political subdivision of the state, or the public operator of a
2369	public-use airport as defined by s. 332.004(14) are exempt from
2370	the tax imposed by this chapter when the systems or parts go
2371	into or become part of publicly owned facilities. In the case of
2372	contractors who manufacture and install such systems and parts,
2373	this exemption extends to the purchase of component parts and
2374	all other manufacturing and fabrication costs. The department
2375	may provide a form to be used by contractors to provide to
2376	suppliers of people-mover systems or parts to certify the
2377	contractors' eligibility for the exemption provided under this
2378	paragraph. As used in this paragraph, "people-mover systems"
2379	includes wheeled passenger vehicles and related control and
2380	power distribution systems that are part of a transportation
2381	system for use by the general public, regardless of whether such
2382	vehicles are operator-controlled or driverless, self-propelled
2383	or propelled by external power and control systems, or conducted
2384	on roads, rails, guidebeams, or other permanent structures that
2385	are an integral part of such transportation system. "Related
2386	control and power distribution systems" includes any electrical
2387	or electronic control or signaling equipment, but does not
2388	include the embedded wiring, conduits, or cabling used to
2389	transmit electrical or electronic signals among such control
2390	equipment, power distribution equipment, signaling equipment,
2391	and wheeled vehicles.
2392	(aaa)  Florida Fire and Emergency Services
2393	Foundation.--Sales or leases to the Florida Fire and Emergency
2394	Services Foundation are exempt from the tax imposed by this
2395	chapter.
2396	(bbb)  Railroad roadway materials.--Also exempt from the
2397	tax imposed by this chapter are railroad roadway materials used
2398	in the construction, repair, or maintenance of railways.
2399	Railroad roadway materials shall include rails, ties, ballasts,
2400	communication equipment, signal equipment, power transmission
2401	equipment, and any other track materials.
2402	(ccc)  Equipment, machinery, and other materials for
2403	renewable energy technologies.--
2404	1.  As used in this paragraph, the term:
2405	a.  "Biodiesel" means the mono-alkyl esters of long-chain
2406	fatty acids derived from plant or animal matter for use as a
2407	source of energy and meeting the specifications for biodiesel
2408	and biodiesel blends with petroleum products as adopted by the
2409	Department of Agriculture and Consumer Services. Biodiesel may
2410	refer to biodiesel blends designated BXX, where XX represents
2411	the volume percentage of biodiesel fuel in the blend.
2412	b.  "Ethanol" means an anhydrous denatured alcohol produced
2413	by the conversion of carbohydrates meeting the specifications
2414	for fuel ethanol and fuel ethanol blends with petroleum products
2415	as adopted by the Department of Agriculture and Consumer
2416	Services. Ethanol may refer to fuel ethanol blends designated
2417	EXX, where XX represents the volume percentage of fuel ethanol
2418	in the blend.
2419	c.  "Hydrogen fuel cells" means equipment using hydrogen or
2420	a hydrogen-rich fuel in an electrochemical process to generate
2421	energy, electricity, or the transfer of heat.
2422	2.  The sale or use of the following in the state is exempt
2423	from the tax imposed by this chapter:
2424	a.  Hydrogen-powered vehicles, materials incorporated into
2425	hydrogen-powered vehicles, and hydrogen-fueling stations, up to
2426	a limit of $2 million in tax each state fiscal year for all
2427	taxpayers.
2428	b.  Commercial stationary hydrogen fuel cells, up to a
2429	limit of $1 million in tax each state fiscal year for all
2430	taxpayers.
2431	c.  Materials used in the distribution of biodiesel (B10-
2432	B100) and ethanol (E10-E100), including fueling infrastructure,
2433	transportation, and storage, up to a limit of $1 million in tax
2434	each state fiscal year for all taxpayers. Gasoline fueling
2435	station pump retrofits for ethanol (E10-E100) distribution
2436	qualify for the exemption provided in this sub-subparagraph.
2437	3.  The Florida Energy and Climate Commission shall provide
2438	to the department a list of items eligible for the exemption
2439	provided in this paragraph.
2440	4.a.  The exemption provided in this paragraph shall be
2441	available to a purchaser only through a refund of previously
2442	paid taxes. An eligible item is subject to refund one time. A
2443	person who has received a refund on an eligible item shall
2444	notify the next purchaser of the item that such item is no
2445	longer eligible for a refund of paid taxes. This notification
2446	shall be provided to each subsequent purchaser on the sales
2447	invoice or other proof of purchase.
2448	b.  To be eligible to receive the exemption provided in
2449	this paragraph, a purchaser shall file an application with the
2450	Florida Energy and Climate Commission. The application shall be
2451	developed by the Florida Energy and Climate Commission, in
2452	consultation with the department, and shall require:
2453	(I)  The name and address of the person claiming the
2454	refund.
2455	(II)  A specific description of the purchase for which a
2456	refund is sought, including, when applicable, a serial number or
2457	other permanent identification number.
2458	(III)  The sales invoice or other proof of purchase showing
2459	the amount of sales tax paid, the date of purchase, and the name
2460	and address of the sales tax dealer from whom the property was
2461	purchased.
2462	(IV)  A sworn statement that the information provided is
2463	accurate and that the requirements of this paragraph have been
2464	met.
2465	c.  Within 30 days after receipt of an application, the
2466	Florida Energy and Climate Commission shall review the
2467	application and shall notify the applicant of any deficiencies.
2468	Upon receipt of a completed application, the Florida Energy and
2469	Climate Commission shall evaluate the application for exemption
2470	and issue a written certification that the applicant is eligible
2471	for a refund or issue a written denial of such certification
2472	within 60 days after receipt of the application. The Florida
2473	Energy and Climate Commission shall provide the department with
2474	a copy of each certification issued upon approval of an
2475	application.
2476	d.  Each certified applicant shall be responsible for
2477	forwarding a certified copy of the application and copies of all
2478	required documentation to the department within 6 months after
2479	certification by the Florida Energy and Climate Commission.
2480	e.  A refund approved pursuant to this paragraph shall be
2481	made within 30 days after formal approval by the department.
2482	f.  The Florida Energy and Climate Commission may adopt the
2483	form for the application for a certificate, requirements for the
2484	content and format of information submitted to the Florida
2485	Energy and Climate Commission in support of the application,
2486	other procedural requirements, and criteria by which the
2487	application will be determined by rule. The department may adopt
2488	all other rules pursuant to ss. 120.536(1) and 120.54 to
2489	administer this paragraph, including rules establishing
2490	additional forms and procedures for claiming this exemption.
2491	g.  The Florida Energy and Climate Commission shall be
2492	responsible for ensuring that the total amounts of the
2493	exemptions authorized do not exceed the limits as specified in
2494	subparagraph 2.
2495	5.  The Florida Energy and Climate Commission shall
2496	determine and publish on a regular basis the amount of sales tax
2497	funds remaining in each fiscal year.
2498	6.  This paragraph expires July 1, 2010.
2499	(ddd)  Advertising materials distributed free of charge by
2500	mail in an envelope.--Likewise exempt are materials consisting
2501	exclusively of advertisements, such as individual coupons or
2502	other individual cards, sheets, or pages of printed advertising,
2503	that are distributed free of charge by mail in an envelope for
2504	10 or more persons on a monthly, bimonthly, or other regular
2505	basis.
2506	(eee)  Certain delivery charges.--Separately stated charges
2507	that can be avoided at the option of the purchaser for the
2508	delivery, inspection, placement, or removal from packaging or
2509	shipping materials of furniture or appliances by the selling
2510	dealer at the premises of the purchaser or the removal of
2511	similar items from the premises of the purchaser are exempt. If
2512	any charge for delivery, inspection, placement, or removal of
2513	furniture or appliances includes the modification, assembly, or
2514	construction of such furniture or appliances, then all of the
2515	charges are taxable.
2516	(fff)  Bookstore operations at a postsecondary educational
2517	institution.--Also exempt from payment of the tax imposed by
2518	this chapter on renting, leasing, letting, or granting a license
2519	for the use of any real property are payments to a postsecondary
2520	educational institution made by any person pursuant to a grant
2521	of the right to conduct bookstore operations on real property
2522	owned or leased by the postsecondary educational institution. As
2523	used in this paragraph, the term "bookstore operations" means
2524	activities consisting predominantly of sales, distribution, and
2525	provision of textbooks, merchandise, and services traditionally
2526	offered in college and university bookstores for the benefit of
2527	the institution's students, faculty, and staff.
2528	(8)  PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE OR
2529	FOREIGN COMMERCE.--
2530	(a)  The sale or use of vessels and parts thereof used to
2531	transport persons or property in interstate or foreign commerce,
2532	including commercial fishing vessels, is subject to the taxes
2533	imposed in this chapter only to the extent provided herein. The
2534	basis of the tax shall be the ratio of intrastate mileage to
2535	interstate or foreign mileage traveled by the carrier's vessels
2536	which were used in interstate or foreign commerce and which had
2537	at least some Florida mileage during the previous fiscal year.
2538	The ratio would be determined at the close of the carrier's
2539	fiscal year. However, during the fiscal year in which the vessel
2540	begins its initial operations in this state, the vessel's
2541	mileage apportionment factor may be determined on the basis of
2542	an estimated ratio of anticipated miles in this state to
2543	anticipated total miles for that year and, subsequently,
2544	additional tax shall be paid on the vessel, or a refund may be
2545	applied for, on the basis of the actual ratio of the vessel's
2546	miles in this state to its total miles for that year. This ratio
2547	shall be applied each month to the total Florida purchases of
2548	such vessels and parts thereof which are used in Florida to
2549	establish that portion of the total used and consumed in
2550	intrastate movement and subject to the tax at the applicable
2551	rate. The basis for imposition of any discretionary surtax shall
2552	be as set forth in s. 212.054. Items, appropriate to carry out
2553	the purposes for which a vessel is designed or equipped and
2554	used, purchased by the owner, operator, or agent of a vessel for
2555	use on board such vessel shall be deemed to be parts of the
2556	vessel upon which the same are used or consumed. Vessels and
2557	parts thereof used to transport persons or property in
2558	interstate and foreign commerce are hereby determined to be
2559	susceptible to a distinct and separate classification for
2560	taxation under the provisions of this chapter. Vessels and parts
2561	thereof used exclusively in intrastate commerce do not qualify
2562	for the proration of tax.
2563	(b)  The partial exemption provided for in this subsection
2564	shall not be allowed unless the purchaser signs an affidavit
2565	stating that the item or items to be partially exempted are for
2566	the exclusive use designated herein and setting forth the extent
2567	of such partial exemption. Any person furnishing a false
2568	affidavit to such effect for the purpose of evading payment of
2569	any tax imposed under this chapter is subject to the penalties
2570	set forth in s. 212.12 and as otherwise provided by law.
2571	(c)  It is the intent of the Legislature that neither
2572	subsection (4) nor this subsection shall be construed as
2573	imposing the tax provided by this chapter on vessels used as
2574	common carriers, contract carriers, or private carriers, engaged
2575	in interstate or foreign commerce, except to the extent provided
2576	by the pro rata formula provided in subsection (4) and in
2577	paragraph (a).
2578	(9)  PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
2579	ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.--
2580	(a)  Railroads that are licensed as common carriers by the
2581	Surface Transportation Board and parts thereof used to transport
2582	persons or property in interstate or foreign commerce are
2583	subject to tax imposed in this chapter only to the extent
2584	provided herein. The basis of the tax shall be the ratio of
2585	intrastate mileage to interstate or foreign mileage traveled by
2586	the carrier during the previous fiscal year of the carrier. Such
2587	ratio is to be determined at the close of the carrier's fiscal
2588	year. However, during the fiscal year in which the railroad
2589	begins its initial operations in this state, the railroad's
2590	mileage apportionment factor may be determined on the basis of
2591	an estimated ratio of anticipated miles in this state to
2592	anticipated total miles for that year and, subsequently,
2593	additional tax shall be paid on the railroad, or a refund may be
2594	applied for, on the basis of the actual ratio of the railroad's
2595	miles in this state to its total miles for that year. This ratio
2596	shall be applied each month to the purchases of the railroad in
2597	this state which are used in this state to establish that
2598	portion of the total used and consumed in intrastate movement
2599	and subject to tax under this chapter. The basis for imposition
2600	of any discretionary surtax is set forth in s. 212.054.
2601	Railroads that are licensed as common carriers by the Surface
2602	Transportation Board and parts thereof used to transport persons
2603	or property in interstate and foreign commerce are hereby
2604	determined to be susceptible to a distinct and separate
2605	classification for taxation under the provisions of this
2606	chapter.
2607	(b)  Motor vehicles that are engaged in interstate commerce
2608	as common carriers, and parts thereof, used to transport persons
2609	or property in interstate or foreign commerce are subject to tax
2610	imposed in this chapter only to the extent provided herein. The
2611	basis of the tax shall be the ratio of intrastate mileage to
2612	interstate or foreign mileage traveled by the carrier's motor
2613	vehicles which were used in interstate or foreign commerce and
2614	which had at least some Florida mileage during the previous
2615	fiscal year of the carrier. Such ratio is to be determined at
2616	the close of the carrier's fiscal year. However, during the
2617	fiscal year in which the carrier begins its initial operations
2618	in this state, the carrier's mileage apportionment factor may be
2619	determined on the basis of an estimated ratio of anticipated
2620	miles in this state to anticipated total miles for that year
2621	and, subsequently, additional tax shall be paid on the carrier,
2622	or a refund may be applied for, on the basis of the actual ratio
2623	of the carrier's miles in this state to its total miles for that
2624	year. This ratio shall be applied each month to the purchases in
2625	this state of such motor vehicles and parts thereof which are
2626	used in this state to establish that portion of the total used
2627	and consumed in intrastate movement and subject to tax under
2628	this chapter. The basis for imposition of any discretionary
2629	surtax is set forth in s. 212.054. Motor vehicles that are
2630	engaged in interstate commerce, and parts thereof, used to
2631	transport persons or property in interstate and foreign commerce
2632	are hereby determined to be susceptible to a distinct and
2633	separate classification for taxation under the provisions of
2634	this chapter. Motor vehicles and parts thereof used exclusively
2635	in intrastate commerce do not qualify for the proration of tax.
2636	For purposes of this paragraph, parts of a motor vehicle engaged
2637	in interstate commerce include a separate tank not connected to
2638	the fuel supply system of the motor vehicle into which diesel
2639	fuel is placed to operate a refrigeration unit or other
2640	equipment.
2641	(10)  PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT OF
2642	ANOTHER STATE.--
2643	(a)  The tax collected on the sale of a new or used motor
2644	vehicle in this state to a resident of another state shall be an
2645	amount equal to the sales tax which would be imposed on such
2646	sale under the laws of the state of which the purchaser is a
2647	resident, except that such tax shall not exceed the tax that
2648	would otherwise be imposed under this chapter. At the time of
2649	the sale, the purchaser shall execute a notarized statement of
2650	his or her intent to license the vehicle in the state of which
2651	the purchaser is a resident within 45 days of the sale and of
2652	the fact of the payment to the State of Florida of a sales tax
2653	in an amount equivalent to the sales tax of his or her state of
2654	residence and shall submit the statement to the appropriate
2655	sales tax collection agency in his or her state of residence.
2656	Nothing in this subsection shall be construed to require the
2657	removal of the vehicle from this state following the filing of
2658	an intent to license the vehicle in the purchaser's home state
2659	if the purchaser licenses the vehicle in his or her home state
2660	within 45 days after the date of sale.
2661	(b)  Notwithstanding the partial exemption allowed in
2662	paragraph (a), a vehicle is subject to this state's sales tax at
2663	the applicable state sales tax rate plus authorized surtaxes
2664	when the vehicle is purchased by a nonresident corporation or
2665	partnership and:
2666	1.  An officer of the corporation is a resident of this
2667	state;
2668	2.  A stockholder of the corporation who owns at least 10
2669	percent of the corporation is a resident of this state; or
2670	3.  A partner in the partnership who has at least 10
2671	percent ownership is a resident of this state.
2672
2673	However, if the vehicle is removed from this state within 45
2674	days after purchase and remains outside the state for a minimum
2675	of 180 days, the vehicle may qualify for the partial exemption
2676	allowed in paragraph (a) despite the residency of owners or
2677	stockholders of the purchasing entity.
2678	(c)  Nothing herein shall require the payment of tax to the
2679	State of Florida for assessments made prior to July 1, 2001, if
2680	the tax imposed by this section has been paid to the state in
2681	which the vehicle was licensed and the department has assessed a
2682	like amount of tax on the same transactions. This provision
2683	shall apply retroactively to assessments that have been
2684	protested prior to August 1, 1999, and have not been paid on the
2685	date this act takes effect.
2686	(11)  PARTIAL EXEMPTION; FLYABLE AIRCRAFT.--
2687	(a)  The tax imposed on the sale by a manufacturer of
2688	flyable aircraft, who designs such aircraft, which sale may
2689	include necessary equipment and modifications placed on such
2690	flyable aircraft prior to delivery by the manufacturer, shall be
2691	an amount equal to the sales tax which would be imposed on such
2692	sale under the laws of the state in which the aircraft will be
2693	domiciled.
2694	(b)  This partial exemption applies only if the purchaser
2695	is a resident of another state who will not use the aircraft in
2696	this state, or if the purchaser is a resident of another state
2697	and uses the aircraft in interstate or foreign commerce, or if
2698	the purchaser is a resident of a foreign country.
2699	(c)  The maximum tax collectible under this subsection may
2700	not exceed 6 percent of the sales price of such aircraft. No
2701	Florida tax may be imposed on the sale of such aircraft if the
2702	state in which the aircraft will be domiciled does not allow
2703	Florida sales or use tax to be credited against its sales or use
2704	tax. Furthermore, no tax may be imposed on the sale of such
2705	aircraft if the state in which the aircraft will be domiciled
2706	has enacted a sales and use tax exemption for flyable aircraft
2707	or if the aircraft will be domiciled outside the United States.
2708	(d)  The purchaser shall execute a sworn affidavit
2709	attesting that he or she is not a resident of this state and
2710	stating where the aircraft will be domiciled. If the aircraft is
2711	subsequently used in this state within 6 months of the time of
2712	purchase, in violation of the intent of this subsection, the
2713	purchaser shall be liable for payment of the full use tax
2714	imposed by this chapter and shall be subject to the penalty
2715	imposed by s. 212.12(2), which penalty shall be mandatory.
2716	Notwithstanding the provisions of this paragraph, the owner of
2717	an aircraft purchased pursuant to this subsection may permit the
2718	aircraft to be returned to this state for repairs within 6
2719	months after the date of sale without the aircraft being in
2720	violation of the law and without incurring liability for payment
2721	of tax or penalty on the purchase price of the aircraft, so long
2722	as the aircraft is removed from this state within 20 days after
2723	the completion of the repairs and such removal can be proven by
2724	invoices for fuel, tie-down, or hangar charges issued by out-of-
2725	state vendors or suppliers or similar documentation.
2726	(12)  PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS, OR
2727	VIDEO TAPES.--
2728	(a)  There are exempt from the taxes imposed by this
2729	chapter the gross receipts from the sale or lease of, and the
2730	storage, use, or other consumption in this state of, master
2731	tapes or master records embodying sound, or master films or
2732	master video tapes; except that amounts paid to recording
2733	studios or motion picture or television studios for the tangible
2734	elements of such master tapes, records, films, or video tapes
2735	are taxable as otherwise provided in this chapter. This
2736	exemption will inure to the taxpayer upon presentation of the
2737	certificate of exemption issued to the taxpayer under the
2738	provisions of s. 288.1258.
2739	(b)  For the purposes of this subsection, the term:
2740	1.  "Amounts paid for the tangible elements" does not
2741	include any amounts paid for the copyrightable, artistic, or
2742	other intangible elements of such master tapes, records, films,
2743	or video tapes, whether designated as royalties or otherwise,
2744	including, but not limited to, services rendered in producing,
2745	fabricating, processing, or imprinting tangible personal
2746	property or any other services or production expenses in
2747	connection therewith which may otherwise be construed as
2748	constituting a "sale" under s. 212.02.
2749	2.  "Master films or master video tapes" means films or
2750	video tapes utilized by the motion picture and television
2751	production industries in making visual images for reproduction.
2752	3.  "Master tapes or master records embodying sound" means
2753	tapes, records, and other devices utilized by the recording
2754	industry in making recordings embodying sound.
2755	4.  "Motion picture or television studio" means a facility
2756	in which film or video tape productions or parts of productions
2757	are made and which contains the necessary equipment and
2758	personnel for this purpose and includes a mobile unit or vehicle
2759	that is equipped in much the same manner as a stationary studio
2760	and used in the making of film or video tape productions.
2761	5.  "Recording studio" means a place where, by means of
2762	mechanical or electronic devices, voices, music, or other sounds
2763	are transmitted to tapes, records, or other devices capable of
2764	reproducing sound.
2765	6.  "Recording industry" means any person engaged in an
2766	occupation or business of making recordings embodying sound for
2767	a livelihood or for a profit.
2768	7.  "Motion picture or television production industry"
2769	means any person engaged in an occupation or business for a
2770	livelihood or for profit of making visual motion picture or
2771	television visual images for showing on screen or television for
2772	theatrical, commercial, advertising, or educational purposes.
2773	(13)  No transactions shall be exempt from the tax imposed
2774	by this chapter except those expressly exempted herein. All laws
2775	granting tax exemptions, to the extent they may be inconsistent
2776	or in conflict with this chapter, including, but not limited to,
2777	the following designated laws, shall yield to and be superseded
2778	by the provisions of this subsection: ss. 125.019, 153.76,
2779	154.2331, 159.15, 159.31, 159.50, 159.708, 163.385, 163.395,
2780	215.76, 243.33, 315.11, 348.65, 348.762, 349.13, 403.1834,
2781	616.07, and 623.09, and the following Laws of Florida, acts of
2782	the year indicated: s. 31, chapter 30843, 1955; s. 19, chapter
2783	30845, 1955; s. 12, chapter 30927, 1955; s. 8, chapter 31179,
2784	1955; s. 15, chapter 31263, 1955; s. 13, chapter 31343, 1955; s.
2785	16, chapter 59-1653; s. 13, chapter 59-1356; s. 12, chapter 61-
2786	2261; s. 19, chapter 61-2754; s. 10, chapter 61-2686; s. 11,
2787	chapter 63-1643; s. 11, chapter 65-1274; s. 16, chapter 67-1446;
2788	and s. 10, chapter 67-1681. This subsection does not supersede
2789	the authority of a local government to adopt financial and local
2790	government incentives pursuant to s. 163.2517.
2791	(14)  TECHNICAL ASSISTANCE ADVISORY COMMITTEE.--The
2792	department shall establish a technical assistance advisory
2793	committee with public and private sector members, including
2794	representatives of both manufacturers and retailers, to advise
2795	the Department of Revenue and the Department of Health in
2796	determining the taxability of specific products and product
2797	lines pursuant to subsection (1) and paragraph (2)(a). In
2798	determining taxability and in preparing a list of specific
2799	products and product lines that are or are not taxable, the
2800	committee shall not be subject to the provisions of chapter 120.
2801	Private sector members shall not be compensated for serving on
2802	the committee.
2803	(15)  ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.--
2804	(a)  Beginning July 1, 1995, charges for electrical energy
2805	used by a qualified business at a fixed location in an
2806	enterprise zone in a municipality which has enacted an ordinance
2807	pursuant to s. 166.231(8) which provides for exemption of
2808	municipal utility taxes on such businesses or in an enterprise
2809	zone jointly authorized by a county and a municipality which has
2810	enacted an ordinance pursuant to s. 166.231(8) which provides
2811	for exemption of municipal utility taxes on such businesses
2812	shall receive an exemption equal to 50 percent of the tax
2813	imposed by this chapter, or, if no less than 20 percent of the
2814	employees of the business are residents of an enterprise zone,
2815	excluding temporary and part-time employees, the exemption shall
2816	be equal to 100 percent of the tax imposed by this chapter. A
2817	qualified business may receive such exemption for a period of 5
2818	years from the billing period beginning not more than 30 days
2819	following notification to the applicable utility company by the
2820	department that an exemption has been authorized pursuant to
2821	this subsection and s. 166.231(8).
2822	(b)  To receive this exemption, a business must file an
2823	application, with the enterprise zone development agency having
2824	jurisdiction over the enterprise zone where the business is
2825	located, on a form provided by the department for the purposes
2826	of this subsection and s. 166.231(8). The application shall be
2827	made under oath and shall include:
2828	1.  The name and location of the business.
2829	2.  The identifying number assigned pursuant to s. 290.0065
2830	to the enterprise zone in which the business is located.
2831	3.  The date on which electrical service is to be first
2832	initiated to the business.
2833	4.  The name and mailing address of the entity from which
2834	electrical energy is to be purchased.
2835	5.  The date of the application.
2836	6.  The name of the city in which the business is located.
2837	7.  If applicable, the name and address of each permanent
2838	employee of the business including, for each employee who is a
2839	resident of an enterprise zone, the identifying number assigned
2840	pursuant to s. 290.0065 to the enterprise zone in which the
2841	employee resides.
2842	8.  Whether the business is a small business as defined by
2843	s. 288.703(1).
2844	(c)  Within 10 working days after receipt of an
2845	application, the enterprise zone development agency shall review
2846	the application to determine if it contains all information
2847	required pursuant to paragraph (b) and meets the criteria set
2848	out in this subsection. The agency shall certify all
2849	applications that contain the information required pursuant to
2850	paragraph (b) and meet the criteria set out in this subsection
2851	as eligible to receive an exemption. If applicable, the agency
2852	shall also certify if 20 percent of the employees of the
2853	business are residents of an enterprise zone, excluding
2854	temporary and part-time employees. The certification shall be in
2855	writing, and a copy of the certification shall be transmitted to
2856	the executive director of the Department of Revenue. The
2857	applicant shall be responsible for forwarding a certified
2858	application to the department within 6 months after the
2859	occurrence of the appropriate qualifying provision set out in
2860	paragraph (f).
2861	(d)  If, in a subsequent audit conducted by the department,
2862	it is determined that the business did not meet the criteria
2863	mandated in this subsection, the amount of taxes exempted shall
2864	immediately be due and payable to the department by the
2865	business, together with the appropriate interest and penalty,
2866	computed from the due date of each bill for the electrical
2867	energy purchased as exempt under this subsection, in the manner
2868	prescribed by this chapter.
2869	(e)  The department shall adopt rules governing
2870	applications for, issuance of, and the form of applications for
2871	the exemption authorized in this subsection and provisions for
2872	recapture of taxes exempted under this subsection, and the
2873	department may establish guidelines as to qualifications for
2874	exemption.
2875	(f)  For the purpose of the exemption provided in this
2876	subsection, the term "qualified business" means a business which
2877	is:
2878	1.  First occupying a new structure to which electrical
2879	service, other than that used for construction purposes, has not
2880	been previously provided or furnished;
2881	2.  Newly occupying an existing, remodeled, renovated, or
2882	rehabilitated structure to which electrical service, other than
2883	that used for remodeling, renovation, or rehabilitation of the
2884	structure, has not been provided or furnished in the three
2885	preceding billing periods; or
2886	3.  Occupying a new, remodeled, rebuilt, renovated, or
2887	rehabilitated structure for which a refund has been granted
2888	pursuant to paragraph (5)(g).
2889	(g)  This subsection expires on the date specified in s.
2890	290.016 for the expiration of the Florida Enterprise Zone Act,
2891	except that:
2892	1.  Paragraph (d) shall not expire; and
2893	2.  Any qualified business which has been granted an
2894	exemption under this subsection prior to that date shall be
2895	allowed the full benefit of this exemption as if this subsection
2896	had not expired on that date.
2897	(16)  EXEMPTIONS; SPACE ACTIVITIES.--
2898	(a)  There shall be exempt from the tax imposed by this
2899	chapter:
2900	1.  The sale, lease, use, storage, consumption, or
2901	distribution in this state of any orbital space facility, space
2902	propulsion system, or space vehicle, satellite, or station of
2903	any kind possessing space flight capacity, including the
2904	components thereof.
2905	2.  The sale, lease, use, storage, consumption, or
2906	distribution in this state of tangible personal property placed
2907	on or used aboard any orbital space facility, space propulsion
2908	system, or space vehicle, satellite, or station of any kind,
2909	irrespective of whether such tangible personal property is
2910	returned to this state for subsequent use, storage, or
2911	consumption in any manner. This exemption is not affected by the
2912	failure of a launch to occur, or the destruction of a launch
2913	vehicle or any components thereof.
2914	(b)  This subsection shall be strictly construed and
2915	enforced.
2916	(17)  EXEMPTIONS; CERTAIN GOVERNMENT CONTRACTORS.--
2917	(a)  Subject to paragraph (d), the tax imposed by this
2918	chapter does not apply to the sale to or use by a government
2919	contractor of overhead materials. The term "government
2920	contractor" includes prime contractors and subcontractors.
2921	(b)  As used in this subsection, the term "overhead
2922	materials" means all tangible personal property, other than
2923	qualifying property as defined in s. 212.02(14)(a) and
2924	electricity, which is used or consumed in the performance of a
2925	qualifying contract, title to which property vests in or passes
2926	to the government under the contract.
2927	(c)  As used in this subsection and in s. 212.02(14)(a),
2928	the term "qualifying contract" means a contract with the United
2929	States Department of Defense or the National Aeronautics and
2930	Space Administration, or a subcontract thereunder, but does not
2931	include a contract or subcontract for the repair, alteration,
2932	improvement, or construction of real property, except to the
2933	extent that purchases under such a contract would otherwise be
2934	exempt from the tax imposed by this chapter.
2935	(d)  The exemption provided in this subsection applies as
2936	follows:
2937	1.  Beginning July 1, 2000, the tax imposed by this chapter
2938	shall be applicable to 60 percent of the sales price or cost
2939	price of such overhead materials.
2940	2.  Beginning July 1, 2001, the tax imposed by this chapter
2941	shall be applicable to 40 percent of the sales price or cost
2942	price of such overhead materials.
2943	3.  Beginning July 1, 2002, the tax imposed by this chapter
2944	shall be applicable to 20 percent of the sales price or cost
2945	price of such overhead materials.
2946	4.  Beginning July 1, 2003, the entire sales price or cost
2947	price of such overhead materials is exempt from the tax imposed
2948	by this chapter.
2949
2950	The exemption provided in this subsection does not apply to any
2951	part of the cost of overhead materials allocated to a contract
2952	that is not a qualifying contract.
2953	(e)  Possession by a seller of a resale certificate or
2954	direct-pay permit relieves the seller from the responsibility of
2955	collecting the tax, and the department shall look solely to the
2956	contractor for recovery of such tax if it determines that the
2957	contractor was not entitled to the exemption. The contractor
2958	shall self-accrue and remit any applicable sales or use tax due
2959	with respect to overhead materials and with respect to costs
2960	allocable to contracts that are not qualifying contracts. The
2961	department may amend its rules to reflect the use of resale
2962	certificates and direct-pay permits with respect to the
2963	exemption provided for in this subsection.
2964	(f)  This subsection is not an expression of legislative
2965	intent as to the applicability of any tax to any sale or use of
2966	overhead materials prior to July 1, 1999. In addition, this
2967	subsection does not imply that transactions or costs that are
2968	not described in this subsection are taxable.
2969	(18)  MACHINERY AND EQUIPMENT USED PREDOMINANTLY FOR
2970	RESEARCH AND DEVELOPMENT.--
2971	(a)  Machinery and equipment used predominantly for
2972	research and development as defined in this subsection are
2973	exempt from the tax imposed by this chapter.
2974	(b)  For purposes of this subsection:
2975	1.  "Machinery and equipment" includes, but is not limited
2976	to, molds, dies, machine tooling, other appurtenances or
2977	accessories to machinery and equipment, testing and measuring
2978	equipment, test beds, computers, and software, whether purchased
2979	or self-fabricated, and, if self-fabricated, includes materials
2980	and labor for design, fabrication, and assembly.
2981	2.  "Predominantly" means at least 50 percent of the time.
2982	3.  "Research and development" means research that has one
2983	of the following as its ultimate goal:
2984	a.  Basic research in a scientific field of endeavor;
2985	b.  Advancing knowledge or technology in a scientific or
2986	technical field of endeavor;
2987	c.  The development of a new product, whether or not the
2988	new product is offered for sale;
2989	d.  The improvement of an existing product, whether or not
2990	the improved product is offered for sale;
2991	e.  The development of new uses of an existing product,
2992	whether or not a new use is offered as a rationale to purchase
2993	the product; or
2994	f.  The design and development of prototypes, whether or
2995	not a resulting product is offered for sale.
2996
2997	The term "research and development" does not include ordinary
2998	testing or inspection of materials or products used for quality
2999	control, market research, efficiency surveys, consumer surveys,
3000	advertising and promotions, management studies, or research in
3001	connection with literary, historical, social science,
3002	psychological, or other similar nontechnical activities.
3003	(c)  The department may adopt rules pursuant to ss.
3004	120.536(1) and 120.54 that provide for administering and
3005	implementing this exemption.
3006	(d)  A person who claims the exemption provided in this
3007	subsection shall furnish the vendor of the machinery or
3008	equipment, including the vendor of materials and labor used in
3009	self-fabrication of the machinery or equipment, an affidavit
3010	stating that the item or items for which an exemption is claimed
3011	are machinery and equipment that will be used predominantly for
3012	research and development as required by this subsection. A
3013	purchaser who claims the exemption by refund shall include the
3014	affidavit with the refund application. The affidavit must
3015	contain the purchaser's name, address, sales and use tax
3016	registration number, and, if applicable, federal employer's
3017	identification number. Any person fraudulently furnishing an
3018	affidavit to the vendor for the purpose of evading payment of
3019	any tax imposed under this chapter shall be subject to the
3020	penalty set forth in s. 212.085 and as otherwise provided by
3021	law.
3022	(e)  In lieu of furnishing an affidavit, a purchaser
3023	claiming the exemption provided in this subsection who has a
3024	direct-pay permit may furnish the vendor with a copy of the
3025	direct-pay permit and shall maintain all documentation necessary
3026	to prove the exempt status of the purchases and fabrication
3027	activity.
3028	(f)  Purchasers shall maintain all documentation necessary
3029	to prove the exempt status of purchases and fabrication activity
3030	and make such documentation available for inspection pursuant to
3031	the requirements of s. 212.13(2).
3032	Section 4.  (1)  Effective July 1, 2012, ss. 212.051,
3033	212.052, 212.0598, 212.0602, 212.0801, 212.0821, 212.09,
3034	212.096, 212.097, and 212.098, Florida Statutes, are repealed.
3035	(2)  Unless modified or reenacted as provided in s.
3036	11.9035, Florida Statutes, effective July 1, 2012, any
3037	exemption, deduction, or credit from the state sales and use tax
3038	or any exclusion of sales and services from such tax granted by:
3039	(a)  Section 212.02, Florida Statutes, except rent on low
3040	income housing under s. 212.02(2), Florida Statutes;
3041	(b)  Section 212.03, Florida Statutes, except rent charges
3042	paid by long-term residents under s. 212.03(4), Florida
3043	Statutes; rent charges paid by full-time students, by active
3044	military personnel, and by permanent residents under s.
3045	212.03(7)(a); Florida Statutes; rent charges in mobile home
3046	parks under s. 212.03(7)(c), Florida Statutes; and rent charges
3047	for living accommodations in migrant labor camps under s.
3048	212.03(7)(d), Florida Statutes;
3049	(c)  Section 212.031, Florida Statutes, except utility
3050	charges under s. 212.031(7), Florida Statutes;
3051	(d)  Sections 212.04, 212.05, and 212.0506, Florida
3052	Statutes;
3053	(e)  Sections 212.06 and 212.081, Florida Statutes, except
3054	any sale exempted by federal law or the United States
3055	Constitution; and
3056	(f)  Sections 212.0601, 212.07, 212.12, 212.20, and 376.75,
3057	Florida Statutes,
3058
3059	are repealed.
3060	Section 5.  Except as otherwise expressly provided in this
3061	act, this act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.