Florida Senate - 2009 SB 2576
By Senator Lynn
7-01552A-09 20092576__
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
5 Joint Legislative Sunset Committee to conform to
6 changes made by this act; creating s. 11.9035, F.S.;
7 providing a short title; providing additional
8 responsibilities of the Joint Legislative Sunset
9 Committee for the purpose of reviewing exemptions from
10 the general state sales and use tax and exclusions of
11 sales of services from such taxation; providing for
12 meetings and governance by joint rules; providing
13 definitions; specifying powers and duties; providing
14 for reports; requiring continuing periodic review of
15 sales tax exemptions and exclusions; providing for
16 legislative proposals; amending s. 212.08, F.S.;
17 providing for future elimination of all sales, rental,
18 use, consumption, distribution, and storage tax
19 exemptions under the section except those for general
20 groceries, medical, guide dogs for the blind, and
21 household fuels; repealing s. 212.051, F.S., relating
22 to exemption for equipment, machinery, and other
23 materials for pollution control; repealing s. 212.052,
24 F.S., relating to exemption for research or
25 development costs; repealing s. 212.0598, F.S.,
26 relating to partial exemption for air carriers’
27 maintenance bases; repealing s. 212.0602, F.S.,
28 relating to a limited exemption for education;
29 repealing s. 212.0801, F.S., relating to an exemption
30 for qualified aircraft; repealing s. 212.0821, F.S.,
31 relating to legislative intent that political
32 subdivisions and public libraries use sales tax
33 exemption certificates for certain purchases;
34 repealing s. 212.09, F.S., relating to trade-ins
35 deducted; repealing s. 212.096, F.S., relating to
36 credit for job creation in enterprise zones; repealing
37 s. 212.097, F.S., relating to Urban High Crime area
38 job tax credit; repealing s. 212.098, F.S., relating
39 to rural job tax credit; providing for future repeal
40 of certain provisions of ss. 212.02, 212.03, 212.031,
41 212.04, 212.05, 212.0506, 212.06, 212.0601, 212.07,
42 212.081, 212.12, 212.20, and 376.75, F.S., relating to
43 various sales and use tax exemptions, exclusions, and
44 credits; providing exceptions; providing effective
45 dates.
46
47 WHEREAS, Florida’s current budget difficulties require the
48 state to consider innovative solutions in addressing the long
49 term viability of the state’s tax structure, and
50 WHEREAS, the state’s tax structure should treat individuals
51 fairly and equitably, imposing similar tax burdens on people in
52 similar circumstances, and
53 WHEREAS, exemptions to the state’s sales tax should serve
54 an important state interest and should be uniform in the effect
55 on citizens of the state, and
56 WHEREAS, the Legislature finds that a periodic sunset and
57 review of all sales tax exemptions will serve to restore
58 fairness to the state’s tax structure, NOW, THEREFORE,
59
60 Be It Enacted by the Legislature of the State of Florida:
61
62 Section 1. Subsection (2) of section 11.903, Florida
63 Statutes, is amended to read:
64 11.903 Legislative Sunset Review Committees and the Joint
65 Legislative Sunset Committee.—
66 (2) The Senate and House of Representatives shall appoint a
67 Joint Legislative Sunset Committee for the purposes of
68 overseeing the agency review process required by ss. 11.901
69 11.920 and the review of exemptions from the tax on sales, use,
70 and other transactions required by s. 11.9035 and of making
71 recommendations to the Legislature regarding such reviews.
72 Section 2. Section 11.9035, Florida Statutes, is created to
73 read:
74 11.9035 Sales and use tax exemption and exclusion review.—
75 (1) SHORT TITLE.—This section may be cited as the “Florida
76 Sales Tax Fairness Restoration Act.”
77 (2) SALES TAX EXEMPTIONS REVIEW.—In addition to the review
78 required under ss. 11.901-11.920, the Joint Legislative Sunset
79 Committee shall conduct comprehensive, periodic reviews of all
80 exemptions from the general state sales and use tax and
81 exclusions of sales of services from such taxation as provided
82 by this section.
83 (3) PROCEDURES.—In addition to other meeting requirements
84 specified by ss. 11.901-11.920, the committee for each review
85 cycle shall have its initial meeting no later than September 1,
86 2009, and thereafter as necessary at the call of the chair at
87 the time and place designated by the chair. A quorum shall
88 consist of a majority of the committee members from each house.
89 During the interim between regular sessions, the committee may
90 conduct its meetings through teleconferences or other similar
91 means.
92 (4) RULES.—For purposes of this section, the committee
93 shall be governed by joint rules adopted by the Legislature
94 pursuant to authority to adopt rules under s. 4, Art. III of the
95 State Constitution.
96 (5) DEFINITIONS.—As used in this section, the term:
97 (a) “General state sales and use tax” means the sales and
98 use tax imposed under chapter 212.
99 (b) “Service” means a service within any of the following
100 service categories under the North American Industry
101 Classification System (NAICS):
102 1. Personal services.
103 2. Professional services.
104 3. Business services.
105 4. Financial services.
106 5. Media services.
107 6. Entertainment and sports services.
108 7. Construction services.
109 8. Institutional services.
110 9. Transportation services.
111 10. Health services.
112 (6) POWERS AND DUTIES.—The committee shall have the power
113 and duty to conduct a comprehensive review of all current and
114 future exemptions from the general state sales and use tax and
115 the exclusion of sales of services from such taxation. The
116 committee shall establish criteria by which each exemption or
117 exclusion shall be evaluated. In developing the evaluation
118 criteria, the committee shall consider the following principles
119 of taxation:
120 (a) Equity.—The Florida tax system should treat individuals
121 equitably. It should impose similar tax burdens on people in
122 similar circumstances and should minimize regressivity.
123 (b) Simplicity, transparency, and compliance.—The Florida
124 tax system should facilitate taxpayer compliance. It should be
125 simple and easy to understand and should provide visibility and
126 awareness of the taxes being paid.
127 (c) Neutrality.—The Florida tax system should affect
128 taxpayers uniformly and consistently. The primary purpose of any
129 tax should be to raise revenue for appropriate governmental
130 functions, rather than to influence business and personal
131 decisions.
132 (d) Stability.—The Florida tax system should produce
133 revenues in a stable and reliable manner that is sufficient to
134 fund appropriate governmental functions and expenditures.
135 (e) Integration.—The Florida tax system should balance the
136 need for integration of federal, state, and local taxation.
137 (f) Public purpose.—Any sales and use tax exemption or
138 exclusion under the Florida tax system should be based upon a
139 determination that the exemption or exclusion promotes an
140 important state interest and should benefit citizens as equally
141 as possible.
142 (7) FINDINGS AND RECOMMENDATIONS.—In conducting its review
143 of each exemption from the general state sales and use tax or
144 the exclusion of the sale of a service from such taxation, the
145 committee shall make findings of fact and recommend whether the
146 exemption should be retained, modified, or repealed or whether
147 the exclusion should be retained or eliminated. Each
148 recommendation must be made by majority vote of the committee
149 members from each house. If a majority vote of the committee
150 members from each house cannot be achieved, the committee must
151 recommend that the exemption or exclusion be repealed. The
152 findings of fact and recommendations of the committee shall be
153 made by reports to the President of the Senate and the Speaker
154 of the House of Representatives.
155 (8) EXEMPTIONS AND EXCLUSIONS REVIEW.—
156 (a) The committee may use its discretion in determining the
157 order in which it reviews the exemptions and exclusions. For the
158 initial review, the committee shall submit, to the President of
159 the Senate and the Speaker of the House of Representatives, its
160 initial report on one-third of the exemptions and exclusions by
161 November 1, 2009, its report on the second one-third of the
162 exemptions and exclusions by March 1, 2010, and its report on
163 the final one-third of the exemptions and exclusions by July 1,
164 2010, with no duplication of exemptions or exclusions from one
165 report to the next. Thereafter, the committee shall review every
166 3 years approximately one-third of the exemptions and exclusions
167 with no duplication of exemptions or exclusions reviewed from
168 one 3-year period to the next 3-year period. The committee shall
169 submit its 3-year period review reports no later than December 1
170 of the year prior to the next regular session after the
171 expiration of the third year of each 3-year review cycle. The
172 committee shall begin a new 9-year review cycle of all
173 exemptions from the general state sales and use tax and all
174 exclusions of sales of services from such taxation every 9 years
175 after the termination of the previous review cycle.
176 (b) Notwithstanding the provisions of this section,
177 exemptions and exclusions for necessities, including, but not
178 limited to, exemptions for general groceries as described in s.
179 212.08(1), exemptions for medical products or supplies as
180 described in s. 212.08(2), health services, residential housing,
181 residential electricity, and home heating fuel, and sales of
182 property or services that the state is prohibited from taxing
183 under the Constitution or laws of the United States may not be
184 subject to review by the committee or repeal in legislation
185 proposed by the committee.
186 (9) LEGISLATION.—At the regular session after submission of
187 each annual report to the Speaker of the House of
188 Representatives and the President of the Senate, the committee
189 shall introduce in both houses of the Legislature bills
190 presenting for reenactment, modification, or repeal those
191 exemptions from the general state sales and use tax or any
192 imposition of such taxation on sales of services that were
193 recommended by the committee in the report submitted immediately
194 prior to the session in which introduced. Each bill introduced
195 must be restricted to a single exemption or the imposition of
196 the tax on a single service and must be submitted to a vote of
197 the members of each house of the Legislature no later than the
198 eighth week of the session in which introduced, unless the
199 substance of the bill has already been voted on by the members
200 of that house of the Legislature in another bill during that
201 session and either passed or defeated or the bill has already
202 been submitted to the members of the other house and has been
203 defeated.
204 (10) REPEAL.—Any exemption from the state general sales and
205 use tax or exemption from imposition of such tax on sales of
206 services, that is not prohibited from review by the committee
207 under the requirements of paragraph (8)(b) and is not modified
208 or reenacted by the end of the regular session after any 9-year
209 review period, stands repealed on July 1 after the end of the
210 regular session immediately after the 9-year review period.
211 (11) CONSTRUCTION.—This section does not preclude a
212 legislator from filing for any legislative session a bill
213 proposing to modify, repeal, or enact any exemption from the
214 general state sales and use tax or the imposition of such
215 taxation on the sales of any service.
216 Section 3. Effective July 1, 2012, section 212.08, Florida
217 Statutes, is amended to read:
218 212.08 Sales, rental, use, consumption, distribution, and
219 storage tax; specified exemptions.—The sale at retail, the
220 rental, the use, the consumption, the distribution, and the
221 storage to be used or consumed in this state of the following
222 are hereby specifically exempt from the tax imposed by this
223 chapter.
224 (1) EXEMPTIONS; GENERAL GROCERIES.—
225 (a) Food products for human consumption are exempt from the
226 tax imposed by this chapter.
227 (b) For the purpose of this chapter, as used in this
228 subsection, the term “food products” means edible commodities,
229 whether processed, cooked, raw, canned, or in any other form,
230 which are generally regarded as food. This includes, but is not
231 limited to, all of the following:
232 1. Cereals and cereal products, baked goods, oleomargarine,
233 meat and meat products, fish and seafood products, frozen foods
234 and dinners, poultry, eggs and egg products, vegetables and
235 vegetable products, fruit and fruit products, spices, salt,
236 sugar and sugar products, milk and dairy products, and products
237 intended to be mixed with milk.
238 2. Natural fruit or vegetable juices or their concentrates
239 or reconstituted natural concentrated fruit or vegetable juices,
240 whether frozen or unfrozen, dehydrated, powdered, granulated,
241 sweetened or unsweetened, seasoned with salt or spice, or
242 unseasoned; coffee, coffee substitutes, or cocoa; and tea,
243 unless it is sold in a liquid form.
244 3. Bakery products sold by bakeries, pastry shops, or like
245 establishments that do not have eating facilities.
246 (c) The exemption provided by this subsection does not
247 apply:
248 1. When the food products are sold as meals for consumption
249 on or off the premises of the dealer.
250 2. When the food products are furnished, prepared, or
251 served for consumption at tables, chairs, or counters or from
252 trays, glasses, dishes, or other tableware, whether provided by
253 the dealer or by a person with whom the dealer contracts to
254 furnish, prepare, or serve food products to others.
255 3. When the food products are ordinarily sold for immediate
256 consumption on the seller’s premises or near a location at which
257 parking facilities are provided primarily for the use of patrons
258 in consuming the products purchased at the location, even though
259 such products are sold on a “take out” or “to go” order and are
260 actually packaged or wrapped and taken from the premises of the
261 dealer.
262 4. To sandwiches sold ready for immediate consumption on or
263 off the seller’s premises.
264 5. When the food products are sold ready for immediate
265 consumption within a place, the entrance to which is subject to
266 an admission charge.
267 6. When the food products are sold as hot prepared food
268 products.
269 7. To soft drinks, which include, but are not limited to,
270 any nonalcoholic beverage, any preparation or beverage commonly
271 referred to as a “soft drink,” or any noncarbonated drink made
272 from milk derivatives or tea, when sold in cans or similar
273 containers.
274 8. To ice cream, frozen yogurt, and similar frozen dairy or
275 nondairy products in cones, small cups, or pints, popsicles,
276 frozen fruit bars, or other novelty items, whether or not sold
277 separately.
278 9. To food prepared, whether on or off the premises, and
279 sold for immediate consumption. This does not apply to food
280 prepared off the premises and sold in the original sealed
281 container, or the slicing of products into smaller portions.
282 10. When the food products are sold through a vending
283 machine, pushcart, motor vehicle, or any other form of vehicle.
284 11. To candy and any similar product regarded as candy or
285 confection, based on its normal use, as indicated on the label
286 or advertising thereof.
287 12. To bakery products sold by bakeries, pastry shops, or
288 like establishments that have eating facilities, except when
289 sold for consumption off the seller’s premises.
290 13. When food products are served, prepared, or sold in or
291 by restaurants, lunch counters, cafeterias, hotels, taverns, or
292 other like places of business.
293 (d) As used in this subsection, the term:
294 1. “For consumption off the seller’s premises” means that
295 the food or drink is intended by the customer to be consumed at
296 a place away from the dealer’s premises.
297 2. “For consumption on the seller’s premises” means that
298 the food or drink sold may be immediately consumed on the
299 premises where the dealer conducts his or her business. In
300 determining whether an item of food is sold for immediate
301 consumption, there shall be considered the customary consumption
302 practices prevailing at the selling facility.
303 3. “Premises” shall be construed broadly, and means, but is
304 not limited to, the lobby, aisle, or auditorium of a theater;
305 the seating, aisle, or parking area of an arena, rink, or
306 stadium; or the parking area of a drive-in or outdoor theater.
307 The premises of a caterer with respect to catered meals or
308 beverages shall be the place where such meals or beverages are
309 served.
310 4. “Hot prepared food products” means those products,
311 items, or components which have been prepared for sale in a
312 heated condition and which are sold at any temperature that is
313 higher than the air temperature of the room or place where they
314 are sold. “Hot prepared food products,” for the purposes of this
315 subsection, includes a combination of hot and cold food items or
316 components where a single price has been established for the
317 combination and the food products are sold in such combination,
318 such as a hot meal, a hot specialty dish or serving, or a hot
319 sandwich or hot pizza, including cold components or side items.
320 (e)1. Food or drinks not exempt under paragraphs (a), (b),
321 (c), and (d) shall be exempt, notwithstanding those paragraphs,
322 when purchased with food coupons or Special Supplemental Food
323 Program for Women, Infants, and Children vouchers issued under
324 authority of federal law.
325 2. This paragraph is effective only while federal law
326 prohibits a state’s participation in the federal food coupon
327 program or Special Supplemental Food Program for Women, Infants,
328 and Children if there is an official determination that state or
329 local sales taxes are collected within that state on purchases
330 of food or drinks with such coupons.
331 3. This paragraph shall not apply to any food or drinks on
332 which federal law shall permit sales taxes without penalty, such
333 as termination of the state’s participation.
334 (2) EXEMPTIONS; MEDICAL.—
335 (a) There shall be exempt from the tax imposed by this
336 chapter any medical products and supplies or medicine dispensed
337 according to an individual prescription or prescriptions written
338 by a prescriber authorized by law to prescribe medicinal drugs;
339 hypodermic needles; hypodermic syringes; chemical compounds and
340 test kits used for the diagnosis or treatment of human disease,
341 illness, or injury; and common household remedies recommended
342 and generally sold for internal or external use in the cure,
343 mitigation, treatment, or prevention of illness or disease in
344 human beings, but not including cosmetics or toilet articles,
345 notwithstanding the presence of medicinal ingredients therein,
346 according to a list prescribed and approved by the Department of
347 Health, which list shall be certified to the Department of
348 Revenue from time to time and included in the rules promulgated
349 by the Department of Revenue. There shall also be exempt from
350 the tax imposed by this chapter artificial eyes and limbs;
351 orthopedic shoes; prescription eyeglasses and items incidental
352 thereto or which become a part thereof; dentures; hearing aids;
353 crutches; prosthetic and orthopedic appliances; and funerals. In
354 addition, any items intended for one-time use which transfer
355 essential optical characteristics to contact lenses shall be
356 exempt from the tax imposed by this chapter; however, this
357 exemption shall apply only after $100,000 of the tax imposed by
358 this chapter on such items has been paid in any calendar year by
359 a taxpayer who claims the exemption in such year. Funeral
360 directors shall pay tax on all tangible personal property used
361 by them in their business.
362 (b) For the purposes of this subsection:
363 1. “Prosthetic and orthopedic appliances” means any
364 apparatus, instrument, device, or equipment used to replace or
365 substitute for any missing part of the body, to alleviate the
366 malfunction of any part of the body, or to assist any disabled
367 person in leading a normal life by facilitating such person’s
368 mobility. Such apparatus, instrument, device, or equipment shall
369 be exempted according to an individual prescription or
370 prescriptions written by a physician licensed under chapter 458,
371 chapter 459, chapter 460, chapter 461, or chapter 466, or
372 according to a list prescribed and approved by the Department of
373 Health, which list shall be certified to the Department of
374 Revenue from time to time and included in the rules promulgated
375 by the Department of Revenue.
376 2. “Cosmetics” means articles intended to be rubbed,
377 poured, sprinkled, or sprayed on, introduced into, or otherwise
378 applied to the human body for cleansing, beautifying, promoting
379 attractiveness, or altering the appearance and also means
380 articles intended for use as a compound of any such articles,
381 including, but not limited to, cold creams, suntan lotions,
382 makeup, and body lotions.
383 3. “Toilet articles” means any article advertised or held
384 out for sale for grooming purposes and those articles that are
385 customarily used for grooming purposes, regardless of the name
386 by which they may be known, including, but not limited to, soap,
387 toothpaste, hair spray, shaving products, colognes, perfumes,
388 shampoo, deodorant, and mouthwash.
389 4. “Prescription” includes any order for drugs or medicinal
390 supplies written or transmitted by any means of communication by
391 a duly licensed practitioner authorized by the laws of the state
392 to prescribe such drugs or medicinal supplies and intended to be
393 dispensed by a pharmacist. The term also includes an orally
394 transmitted order by the lawfully designated agent of such
395 practitioner. The term also includes an order written or
396 transmitted by a practitioner licensed to practice in a
397 jurisdiction other than this state, but only if the pharmacist
398 called upon to dispense such order determines, in the exercise
399 of his or her professional judgment, that the order is valid and
400 necessary for the treatment of a chronic or recurrent illness.
401 The term also includes a pharmacist’s order for a product
402 selected from the formulary created pursuant to s. 465.186. A
403 prescription may be retained in written form, or the pharmacist
404 may cause it to be recorded in a data processing system,
405 provided that such order can be produced in printed form upon
406 lawful request.
407 (c) Chlorine shall not be exempt from the tax imposed by
408 this chapter when used for the treatment of water in swimming
409 pools.
410 (d) Lithotripters are exempt.
411 (e) Human organs are exempt.
412 (f) Sales of drugs to or by physicians, dentists,
413 veterinarians, and hospitals in connection with medical
414 treatment are exempt.
415 (g) Medical products and supplies used in the cure,
416 mitigation, alleviation, prevention, or treatment of injury,
417 disease, or incapacity which are temporarily or permanently
418 incorporated into a patient or client by a practitioner of the
419 healing arts licensed in the state are exempt.
420 (h) The purchase by a veterinarian of commonly recognized
421 substances possessing curative or remedial properties which are
422 ordered and dispensed as treatment for a diagnosed health
423 disorder by or on the prescription of a duly licensed
424 veterinarian, and which are applied to or consumed by animals
425 for alleviation of pain or the cure or prevention of sickness,
426 disease, or suffering are exempt. Also exempt are the purchase
427 by a veterinarian of antiseptics, absorbent cotton, gauze for
428 bandages, lotions, vitamins, and worm remedies.
429 (i) X-ray opaques, also known as opaque drugs and
430 radiopaque, such as the various opaque dyes and barium sulphate,
431 when used in connection with medical X rays for treatment of
432 bodies of humans and animals, are exempt.
433 (j) Parts, special attachments, special lettering, and
434 other like items that are added to or attached to tangible
435 personal property so that a handicapped person can use them are
436 exempt when such items are purchased by a person pursuant to an
437 individual prescription.
438 (k) This subsection shall be strictly construed and
439 enforced.
440 (3) EXEMPTIONS; CERTAIN FARM EQUIPMENT.—There shall be no
441 tax on the sale, rental, lease, use, consumption, or storage for
442 use in this state of power farm equipment used exclusively on a
443 farm or in a forest in the agricultural production of crops or
444 products as produced by those agricultural industries included
445 in s. 570.02(1), or for fire prevention and suppression work
446 with respect to such crops or products. Harvesting may not be
447 construed to include processing activities. This exemption is
448 not forfeited by moving farm equipment between farms or forests.
449 However, this exemption shall not be allowed unless the
450 purchaser, renter, or lessee signs a certificate stating that
451 the farm equipment is to be used exclusively on a farm or in a
452 forest for agricultural production or for fire prevention and
453 suppression, as required by this subsection. Possession by a
454 seller, lessor, or other dealer of a written certification by
455 the purchaser, renter, or lessee certifying the purchaser’s,
456 renter’s, or lessee’s entitlement to an exemption permitted by
457 this subsection relieves the seller from the responsibility of
458 collecting the tax on the nontaxable amounts, and the department
459 shall look solely to the purchaser for recovery of such tax if
460 it determines that the purchaser was not entitled to the
461 exemption.
462 (4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.—
463 (a) Also exempt are:
464 1. Water delivered to the purchaser through pipes or
465 conduits or delivered for irrigation purposes. The sale of
466 drinking water in bottles, cans, or other containers, including
467 water that contains minerals or carbonation in its natural state
468 or water to which minerals have been added at a water treatment
469 facility regulated by the Department of Environmental Protection
470 or the Department of Health, is exempt. This exemption does not
471 apply to the sale of drinking water in bottles, cans, or other
472 containers if carbonation or flavorings, except those added at a
473 water treatment facility, have been added. Water that has been
474 enhanced by the addition of minerals and that does not contain
475 any added carbonation or flavorings is also exempt.
476 2. All fuels used by a public or private utility, including
477 any municipal corporation or rural electric cooperative
478 association, in the generation of electric power or energy for
479 sale. Fuel other than motor fuel and diesel fuel is taxable as
480 provided in this chapter with the exception of fuel expressly
481 exempt herein. Motor fuels and diesel fuels are taxable as
482 provided in chapter 206, with the exception of those motor fuels
483 and diesel fuels used by railroad locomotives or vessels to
484 transport persons or property in interstate or foreign commerce,
485 which are taxable under this chapter only to the extent provided
486 herein. The basis of the tax shall be the ratio of intrastate
487 mileage to interstate or foreign mileage traveled by the
488 carrier’s railroad locomotives or vessels that were used in
489 interstate or foreign commerce and that had at least some
490 Florida mileage during the previous fiscal year of the carrier,
491 such ratio to be determined at the close of the fiscal year of
492 the carrier. However, during the fiscal year in which the
493 carrier begins its initial operations in this state, the
494 carrier’s mileage apportionment factor may be determined on the
495 basis of an estimated ratio of anticipated miles in this state
496 to anticipated total miles for that year, and subsequently,
497 additional tax shall be paid on the motor fuel and diesel fuels,
498 or a refund may be applied for, on the basis of the actual ratio
499 of the carrier’s railroad locomotives’ or vessels’ miles in this
500 state to its total miles for that year. This ratio shall be
501 applied each month to the total Florida purchases made in this
502 state of motor and diesel fuels to establish that portion of the
503 total used and consumed in intrastate movement and subject to
504 tax under this chapter. The basis for imposition of any
505 discretionary surtax shall be set forth in s. 212.054. Fuels
506 used exclusively in intrastate commerce do not qualify for the
507 proration of tax.
508 3. The transmission or wheeling of electricity.
509 (b) Alcoholic beverages and malt beverages are not exempt.
510 The terms “alcoholic beverages” and “malt beverages” as used in
511 this paragraph have the same meanings ascribed to them in ss.
512 561.01(4) and 563.01, respectively. It is determined by the
513 Legislature that the classification of alcoholic beverages made
514 in this paragraph for the purpose of extending the tax imposed
515 by this chapter is reasonable and just, and it is intended that
516 such tax be separate from, and in addition to, any other tax
517 imposed on alcoholic beverages.
518 (5) EXEMPTIONS; ACCOUNT OF USE.—
519 (a) Items in agricultural use and certain nets.—There are
520 exempt from the tax imposed by this chapter nets designed and
521 used exclusively by commercial fisheries; disinfectants,
522 fertilizers, insecticides, pesticides, herbicides, fungicides,
523 and weed killers used for application on crops or groves,
524 including commercial nurseries and home vegetable gardens, used
525 in dairy barns or on poultry farms for the purpose of protecting
526 poultry or livestock, or used directly on poultry or livestock;
527 portable containers or movable receptacles in which portable
528 containers are placed, used for processing farm products; field
529 and garden seeds, including flower seeds; nursery stock,
530 seedlings, cuttings, or other propagative material purchased for
531 growing stock; seeds, seedlings, cuttings, and plants used to
532 produce food for human consumption; cloth, plastic, and other
533 similar materials used for shade, mulch, or protection from
534 frost or insects on a farm; generators used on poultry farms;
535 and liquefied petroleum gas or other fuel used to heat a
536 structure in which started pullets or broilers are raised;
537 however, such exemption shall not be allowed unless the
538 purchaser or lessee signs a certificate stating that the item to
539 be exempted is for the exclusive use designated herein. Also
540 exempt are cellophane wrappers, glue for tin and glass
541 (apiarists), mailing cases for honey, shipping cases, window
542 cartons, and baling wire and twine used for baling hay, when
543 used by a farmer to contain, produce, or process an agricultural
544 commodity.
545 (b) Machinery and equipment used to increase productive
546 output.—
547 1. Industrial machinery and equipment purchased for
548 exclusive use by a new business in spaceport activities as
549 defined by s. 212.02 or for use in new businesses which
550 manufacture, process, compound, or produce for sale items of
551 tangible personal property at fixed locations are exempt from
552 the tax imposed by this chapter upon an affirmative showing by
553 the taxpayer to the satisfaction of the department that such
554 items are used in a new business in this state. Such purchases
555 must be made prior to the date the business first begins its
556 productive operations, and delivery of the purchased item must
557 be made within 12 months of that date.
558 2. Industrial machinery and equipment purchased for
559 exclusive use by an expanding facility which is engaged in
560 spaceport activities as defined by s. 212.02 or for use in
561 expanding manufacturing facilities or plant units which
562 manufacture, process, compound, or produce for sale items of
563 tangible personal property at fixed locations in this state are
564 exempt from any amount of tax imposed by this chapter upon an
565 affirmative showing by the taxpayer to the satisfaction of the
566 department that such items are used to increase the productive
567 output of such expanded facility or business by not less than 10
568 percent.
569 3.a. To receive an exemption provided by subparagraph 1. or
570 subparagraph 2., a qualifying business entity shall apply to the
571 department for a temporary tax exemption permit. The application
572 shall state that a new business exemption or expanded business
573 exemption is being sought. Upon a tentative affirmative
574 determination by the department pursuant to subparagraph 1. or
575 subparagraph 2., the department shall issue such permit.
576 b. The applicant shall be required to maintain all
577 necessary books and records to support the exemption. Upon
578 completion of purchases of qualified machinery and equipment
579 pursuant to subparagraph 1. or subparagraph 2., the temporary
580 tax permit shall be delivered to the department or returned to
581 the department by certified or registered mail.
582 c. If, in a subsequent audit conducted by the department,
583 it is determined that the machinery and equipment purchased as
584 exempt under subparagraph 1. or subparagraph 2. did not meet the
585 criteria mandated by this paragraph or if commencement of
586 production did not occur, the amount of taxes exempted at the
587 time of purchase shall immediately be due and payable to the
588 department by the business entity, together with the appropriate
589 interest and penalty, computed from the date of purchase, in the
590 manner prescribed by this chapter.
591 d. In the event a qualifying business entity fails to apply
592 for a temporary exemption permit or if the tentative
593 determination by the department required to obtain a temporary
594 exemption permit is negative, a qualifying business entity shall
595 receive the exemption provided in subparagraph 1. or
596 subparagraph 2. through a refund of previously paid taxes. No
597 refund may be made for such taxes unless the criteria mandated
598 by subparagraph 1. or subparagraph 2. have been met and
599 commencement of production has occurred.
600 4. The department shall adopt rules governing applications
601 for, issuance of, and the form of temporary tax exemption
602 permits; provisions for recapture of taxes; and the manner and
603 form of refund applications and may establish guidelines as to
604 the requisites for an affirmative showing of increased
605 productive output, commencement of production, and qualification
606 for exemption.
607 5. The exemptions provided in subparagraphs 1. and 2. do
608 not apply to machinery or equipment purchased or used by
609 electric utility companies, communications companies, oil or gas
610 exploration or production operations, publishing firms that do
611 not export at least 50 percent of their finished product out of
612 the state, any firm subject to regulation by the Division of
613 Hotels and Restaurants of the Department of Business and
614 Professional Regulation, or any firm which does not manufacture,
615 process, compound, or produce for sale items of tangible
616 personal property or which does not use such machinery and
617 equipment in spaceport activities as required by this paragraph.
618 The exemptions provided in subparagraphs 1. and 2. shall apply
619 to machinery and equipment purchased for use in phosphate or
620 other solid minerals severance, mining, or processing
621 operations.
622 6. For the purposes of the exemptions provided in
623 subparagraphs 1. and 2., these terms have the following
624 meanings:
625 a. “Industrial machinery and equipment” means tangible
626 personal property or other property that has a depreciable life
627 of 3 years or more and that is used as an integral part in the
628 manufacturing, processing, compounding, or production of
629 tangible personal property for sale or is exclusively used in
630 spaceport activities. A building and its structural components
631 are not industrial machinery and equipment unless the building
632 or structural component is so closely related to the industrial
633 machinery and equipment that it houses or supports that the
634 building or structural component can be expected to be replaced
635 when the machinery and equipment are replaced. Heating and air
636 conditioning systems are not industrial machinery and equipment
637 unless the sole justification for their installation is to meet
638 the requirements of the production process, even though the
639 system may provide incidental comfort to employees or serve, to
640 an insubstantial degree, nonproduction activities. The term
641 includes parts and accessories only to the extent that the
642 exemption thereof is consistent with the provisions of this
643 paragraph.
644 b. “Productive output” means the number of units actually
645 produced by a single plant or operation in a single continuous
646 12-month period, irrespective of sales. Increases in productive
647 output shall be measured by the output for 12 continuous months
648 immediately following the completion of installation of such
649 machinery or equipment over the output for the 12 continuous
650 months immediately preceding such installation. However, if a
651 different 12-month continuous period of time would more
652 accurately reflect the increase in productive output of
653 machinery and equipment purchased to facilitate an expansion,
654 the increase in productive output may be measured during that
655 12-month continuous period of time if such time period is
656 mutually agreed upon by the Department of Revenue and the
657 expanding business prior to the commencement of production;
658 provided, however, in no case may such time period begin later
659 than 2 years following the completion of installation of the new
660 machinery and equipment. The units used to measure productive
661 output shall be physically comparable between the two periods,
662 irrespective of sales.
663 (c) Machinery and equipment used in production of
664 electrical or steam energy.—
665 1. The purchase of machinery and equipment for use at a
666 fixed location which machinery and equipment are necessary in
667 the production of electrical or steam energy resulting from the
668 burning of boiler fuels other than residual oil is exempt from
669 the tax imposed by this chapter. Such electrical or steam energy
670 must be primarily for use in manufacturing, processing,
671 compounding, or producing for sale items of tangible personal
672 property in this state. Use of a de minimis amount of residual
673 fuel to facilitate the burning of nonresidual fuel shall not
674 reduce the exemption otherwise available under this paragraph.
675 2. In facilities where machinery and equipment are
676 necessary to burn both residual and nonresidual fuels, the
677 exemption shall be prorated. Such proration shall be based upon
678 the production of electrical or steam energy from nonresidual
679 fuels as a percentage of electrical or steam energy from all
680 fuels. If it is determined that 15 percent or less of all
681 electrical or steam energy generated was produced by burning
682 residual fuel, the full exemption shall apply. Purchasers
683 claiming a partial exemption shall obtain such exemption by
684 refund of taxes paid, or as otherwise provided in the
685 department’s rules.
686 3. The department may adopt rules that provide for
687 implementation of this exemption. Purchasers of machinery and
688 equipment qualifying for the exemption provided in this
689 paragraph shall furnish the vendor with an affidavit stating
690 that the item or items to be exempted are for the use designated
691 herein. Any person furnishing a false affidavit to the vendor
692 for the purpose of evading payment of any tax imposed under this
693 chapter shall be subject to the penalty set forth in s. 212.085
694 and as otherwise provided by law. Purchasers with self-accrual
695 authority shall maintain all documentation necessary to prove
696 the exempt status of purchases.
697 (d) Machinery and equipment used under federal procurement
698 contract.—
699 1. Industrial machinery and equipment purchased by an
700 expanding business which manufactures tangible personal property
701 pursuant to federal procurement regulations at fixed locations
702 in this state are exempt from the tax imposed in this chapter
703 upon an affirmative showing by the taxpayer to the satisfaction
704 of the department that such items are used to increase the
705 implicit productive output of the expanded business by not less
706 than 10 percent. The percentage of increase is measured as
707 deflated implicit productive output for the calendar year during
708 which the installation of the machinery or equipment is
709 completed or during which commencement of production utilizing
710 such items is begun divided by the implicit productive output
711 for the preceding calendar year. In no case may the commencement
712 of production begin later than 2 years following completion of
713 installation of the machinery or equipment.
714 2. The amount of the exemption allowed shall equal the
715 taxes otherwise imposed by this chapter on qualifying industrial
716 machinery or equipment reduced by the percentage of gross
717 receipts from cost-reimbursement type contracts attributable to
718 the plant or operation to total gross receipts so attributable,
719 accrued for the year of completion or commencement.
720 3. The exemption provided by this paragraph shall inure to
721 the taxpayer only through refund of previously paid taxes. Such
722 refund shall be made within 30 days of formal approval by the
723 department of the taxpayer’s application, which application may
724 be made on an annual basis following installation of the
725 machinery or equipment.
726 4. For the purposes of this paragraph, the term:
727 a. “Cost-reimbursement type contracts” has the same meaning
728 as in 32 C.F.R. s. 3-405.
729 b. “Deflated implicit productive output” means the product
730 of implicit productive output times the quotient of the national
731 defense implicit price deflator for the preceding calendar year
732 divided by the deflator for the year of completion or
733 commencement.
734 c. “Eligible costs” means the total direct and indirect
735 costs, as defined in 32 C.F.R. ss. 15-202 and 15-203, excluding
736 general and administrative costs, selling expenses, and profit,
737 defined by the uniform cost-accounting standards adopted by the
738 Cost-Accounting Standards Board created pursuant to 50 U.S.C. s.
739 2168.
740 d. “Implicit productive output” means the annual eligible
741 costs attributable to all contracts or subcontracts subject to
742 federal procurement regulations of the single plant or operation
743 at which the machinery or equipment is used.
744 e. “Industrial machinery and equipment” means tangible
745 personal property or other property that has a depreciable life
746 of 3 years or more, that qualifies as an eligible cost under
747 federal procurement regulations, and that is used as an integral
748 part of the process of production of tangible personal property.
749 A building and its structural components are not industrial
750 machinery and equipment unless the building or structural
751 component is so closely related to the industrial machinery and
752 equipment that it houses or supports that the building or
753 structural component can be expected to be replaced when the
754 machinery and equipment are replaced. Heating and air
755 conditioning systems are not industrial machinery and equipment
756 unless the sole justification for their installation is to meet
757 the requirements of the production process, even though the
758 system may provide incidental comfort to employees or serve, to
759 an insubstantial degree, nonproduction activities. The term
760 includes parts and accessories only to the extent that the
761 exemption of such parts and accessories is consistent with the
762 provisions of this paragraph.
763 f. “National defense implicit price deflator” means the
764 national defense implicit price deflator for the gross national
765 product as determined by the Bureau of Economic Analysis of the
766 United States Department of Commerce.
767 5. The exclusions provided in subparagraph (b)5. apply to
768 this exemption. This exemption applies only to machinery or
769 equipment purchased pursuant to production contracts with the
770 United States Department of Defense and Armed Forces, the
771 National Aeronautics and Space Administration, and other federal
772 agencies for which the contracts are classified for national
773 security reasons. In no event shall the provisions of this
774 paragraph apply to any expanding business the increase in
775 productive output of which could be measured under the
776 provisions of sub-subparagraph (b)6.b. as physically comparable
777 between the two periods.
778 (e) Gas or electricity used for certain agricultural
779 purposes.—
780 1. Butane gas, propane gas, natural gas, and all other
781 forms of liquefied petroleum gases are exempt from the tax
782 imposed by this chapter if used in any tractor, vehicle, or
783 other farm equipment which is used exclusively on a farm or for
784 processing farm products on the farm and no part of which gas is
785 used in any vehicle or equipment driven or operated on the
786 public highways of this state. This restriction does not apply
787 to the movement of farm vehicles or farm equipment between
788 farms. The transporting of bees by water and the operating of
789 equipment used in the apiary of a beekeeper is also deemed an
790 exempt use.
791 2. Electricity used directly or indirectly for production
792 or processing of agricultural products on the farm is exempt
793 from the tax imposed by this chapter. This exemption applies
794 only if the electricity used for the exempt purposes is
795 separately metered. If the electricity is not separately
796 metered, it is conclusively presumed that some portion of the
797 electricity is used for a nonexempt purpose, and all of the
798 electricity used for such purposes is taxable.
799 (f) Motion picture or video equipment used in motion
800 picture or television production activities and sound recording
801 equipment used in the production of master tapes and master
802 records.—
803 1. Motion picture or video equipment and sound recording
804 equipment purchased or leased for use in this state in
805 production activities is exempt from the tax imposed by this
806 chapter. The exemption provided by this paragraph shall inure to
807 the taxpayer upon presentation of the certificate of exemption
808 issued to the taxpayer under the provisions of s. 288.1258.
809 2. For the purpose of the exemption provided in
810 subparagraph 1.:
811 a. “Motion picture or video equipment” and “sound recording
812 equipment” includes only tangible personal property or other
813 property that has a depreciable life of 3 years or more and that
814 is used by the lessee or purchaser exclusively as an integral
815 part of production activities; however, motion picture or video
816 equipment and sound recording equipment does not include
817 supplies, tape, records, film, or video tape used in productions
818 or other similar items; vehicles or vessels; or general office
819 equipment not specifically suited to production activities. In
820 addition, the term does not include equipment purchased or
821 leased by television or radio broadcasting or cable companies
822 licensed by the Federal Communications Commission. Furthermore,
823 a building and its structural components are not motion picture
824 or video equipment and sound recording equipment unless the
825 building or structural component is so closely related to the
826 motion picture or video equipment and sound recording equipment
827 that it houses or supports that the building or structural
828 component can be expected to be replaced when the motion picture
829 or video equipment and sound recording equipment are replaced.
830 Heating and air-conditioning systems are not motion picture or
831 video equipment and sound recording equipment unless the sole
832 justification for their installation is to meet the requirements
833 of the production activities, even though the system may provide
834 incidental comfort to employees or serve, to an insubstantial
835 degree, nonproduction activities.
836 b. “Production activities” means activities directed toward
837 the preparation of a:
838 (I) Master tape or master record embodying sound; or
839 (II) Motion picture or television production which is
840 produced for theatrical, commercial, advertising, or educational
841 purposes and utilizes live or animated actions or a combination
842 of live and animated actions. The motion picture or television
843 production shall be commercially produced for sale or for
844 showing on screens or broadcasting on television and may be on
845 film or video tape.
846 (g) Building materials used in the rehabilitation of real
847 property located in an enterprise zone.—
848 1. Building materials used in the rehabilitation of real
849 property located in an enterprise zone shall be exempt from the
850 tax imposed by this chapter upon an affirmative showing to the
851 satisfaction of the department that the items have been used for
852 the rehabilitation of real property located in an enterprise
853 zone. Except as provided in subparagraph 2., this exemption
854 inures to the owner, lessee, or lessor of the rehabilitated real
855 property located in an enterprise zone only through a refund of
856 previously paid taxes. To receive a refund pursuant to this
857 paragraph, the owner, lessee, or lessor of the rehabilitated
858 real property located in an enterprise zone must file an
859 application under oath with the governing body or enterprise
860 zone development agency having jurisdiction over the enterprise
861 zone where the business is located, as applicable, which
862 includes:
863 a. The name and address of the person claiming the refund.
864 b. An address and assessment roll parcel number of the
865 rehabilitated real property in an enterprise zone for which a
866 refund of previously paid taxes is being sought.
867 c. A description of the improvements made to accomplish the
868 rehabilitation of the real property.
869 d. A copy of the building permit issued for the
870 rehabilitation of the real property.
871 e. A sworn statement, under the penalty of perjury, from
872 the general contractor licensed in this state with whom the
873 applicant contracted to make the improvements necessary to
874 accomplish the rehabilitation of the real property, which
875 statement lists the building materials used in the
876 rehabilitation of the real property, the actual cost of the
877 building materials, and the amount of sales tax paid in this
878 state on the building materials. In the event that a general
879 contractor has not been used, the applicant shall provide this
880 information in a sworn statement, under the penalty of perjury.
881 Copies of the invoices which evidence the purchase of the
882 building materials used in such rehabilitation and the payment
883 of sales tax on the building materials shall be attached to the
884 sworn statement provided by the general contractor or by the
885 applicant. Unless the actual cost of building materials used in
886 the rehabilitation of real property and the payment of sales
887 taxes due thereon is documented by a general contractor or by
888 the applicant in this manner, the cost of such building
889 materials shall be an amount equal to 40 percent of the increase
890 in assessed value for ad valorem tax purposes.
891 f. The identifying number assigned pursuant to s. 290.0065
892 to the enterprise zone in which the rehabilitated real property
893 is located.
894 g. A certification by the local building code inspector
895 that the improvements necessary to accomplish the rehabilitation
896 of the real property are substantially completed.
897 h. Whether the business is a small business as defined by
898 s. 288.703(1).
899 i. If applicable, the name and address of each permanent
900 employee of the business, including, for each employee who is a
901 resident of an enterprise zone, the identifying number assigned
902 pursuant to s. 290.0065 to the enterprise zone in which the
903 employee resides.
904 2. This exemption inures to a city, county, other
905 governmental agency, or nonprofit community-based organization
906 through a refund of previously paid taxes if the building
907 materials used in the rehabilitation of real property located in
908 an enterprise zone are paid for from the funds of a community
909 development block grant, State Housing Initiatives Partnership
910 Program, or similar grant or loan program. To receive a refund
911 pursuant to this paragraph, a city, county, other governmental
912 agency, or nonprofit community-based organization must file an
913 application which includes the same information required to be
914 provided in subparagraph 1. by an owner, lessee, or lessor of
915 rehabilitated real property. In addition, the application must
916 include a sworn statement signed by the chief executive officer
917 of the city, county, other governmental agency, or nonprofit
918 community-based organization seeking a refund which states that
919 the building materials for which a refund is sought were paid
920 for from the funds of a community development block grant, State
921 Housing Initiatives Partnership Program, or similar grant or
922 loan program.
923 3. Within 10 working days after receipt of an application,
924 the governing body or enterprise zone development agency shall
925 review the application to determine if it contains all the
926 information required pursuant to subparagraph 1. or subparagraph
927 2. and meets the criteria set out in this paragraph. The
928 governing body or agency shall certify all applications that
929 contain the information required pursuant to subparagraph 1. or
930 subparagraph 2. and meet the criteria set out in this paragraph
931 as eligible to receive a refund. If applicable, the governing
932 body or agency shall also certify if 20 percent of the employees
933 of the business are residents of an enterprise zone, excluding
934 temporary and part-time employees. The certification shall be in
935 writing, and a copy of the certification shall be transmitted to
936 the executive director of the Department of Revenue. The
937 applicant shall be responsible for forwarding a certified
938 application to the department within the time specified in
939 subparagraph 4.
940 4. An application for a refund pursuant to this paragraph
941 must be submitted to the department within 6 months after the
942 rehabilitation of the property is deemed to be substantially
943 completed by the local building code inspector or by September 1
944 after the rehabilitated property is first subject to assessment.
945 5. Not more than one exemption through a refund of
946 previously paid taxes for the rehabilitation of real property
947 shall be permitted for any single parcel of property unless
948 there is a change in ownership, a new lessor, or a new lessee of
949 the real property. No refund shall be granted pursuant to this
950 paragraph unless the amount to be refunded exceeds $500. No
951 refund granted pursuant to this paragraph shall exceed the
952 lesser of 97 percent of the Florida sales or use tax paid on the
953 cost of the building materials used in the rehabilitation of the
954 real property as determined pursuant to sub-subparagraph 1.e. or
955 $5,000, or, if no less than 20 percent of the employees of the
956 business are residents of an enterprise zone, excluding
957 temporary and part-time employees, the amount of refund granted
958 pursuant to this paragraph shall not exceed the lesser of 97
959 percent of the sales tax paid on the cost of such building
960 materials or $10,000. A refund approved pursuant to this
961 paragraph shall be made within 30 days of formal approval by the
962 department of the application for the refund. This subparagraph
963 shall apply retroactively to July 1, 2005.
964 6. The department shall adopt rules governing the manner
965 and form of refund applications and may establish guidelines as
966 to the requisites for an affirmative showing of qualification
967 for exemption under this paragraph.
968 7. The department shall deduct an amount equal to 10
969 percent of each refund granted under the provisions of this
970 paragraph from the amount transferred into the Local Government
971 Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
972 for the county area in which the rehabilitated real property is
973 located and shall transfer that amount to the General Revenue
974 Fund.
975 8. For the purposes of the exemption provided in this
976 paragraph:
977 a. “Building materials” means tangible personal property
978 which becomes a component part of improvements to real property.
979 b. “Real property” has the same meaning as provided in s.
980 192.001(12).
981 c. “Rehabilitation of real property” means the
982 reconstruction, renovation, restoration, rehabilitation,
983 construction, or expansion of improvements to real property.
984 d. “Substantially completed” has the same meaning as
985 provided in s. 192.042(1).
986 9. This paragraph expires on the date specified in s.
987 290.016 for the expiration of the Florida Enterprise Zone Act.
988 (h) Business property used in an enterprise zone.—
989 1. Business property purchased for use by businesses
990 located in an enterprise zone which is subsequently used in an
991 enterprise zone shall be exempt from the tax imposed by this
992 chapter. This exemption inures to the business only through a
993 refund of previously paid taxes. A refund shall be authorized
994 upon an affirmative showing by the taxpayer to the satisfaction
995 of the department that the requirements of this paragraph have
996 been met.
997 2. To receive a refund, the business must file under oath
998 with the governing body or enterprise zone development agency
999 having jurisdiction over the enterprise zone where the business
1000 is located, as applicable, an application which includes:
1001 a. The name and address of the business claiming the
1002 refund.
1003 b. The identifying number assigned pursuant to s. 290.0065
1004 to the enterprise zone in which the business is located.
1005 c. A specific description of the property for which a
1006 refund is sought, including its serial number or other permanent
1007 identification number.
1008 d. The location of the property.
1009 e. The sales invoice or other proof of purchase of the
1010 property, showing the amount of sales tax paid, the date of
1011 purchase, and the name and address of the sales tax dealer from
1012 whom the property was purchased.
1013 f. Whether the business is a small business as defined by
1014 s. 288.703(1).
1015 g. If applicable, the name and address of each permanent
1016 employee of the business, including, for each employee who is a
1017 resident of an enterprise zone, the identifying number assigned
1018 pursuant to s. 290.0065 to the enterprise zone in which the
1019 employee resides.
1020 3. Within 10 working days after receipt of an application,
1021 the governing body or enterprise zone development agency shall
1022 review the application to determine if it contains all the
1023 information required pursuant to subparagraph 2. and meets the
1024 criteria set out in this paragraph. The governing body or agency
1025 shall certify all applications that contain the information
1026 required pursuant to subparagraph 2. and meet the criteria set
1027 out in this paragraph as eligible to receive a refund. If
1028 applicable, the governing body or agency shall also certify if
1029 20 percent of the employees of the business are residents of an
1030 enterprise zone, excluding temporary and part-time employees.
1031 The certification shall be in writing, and a copy of the
1032 certification shall be transmitted to the executive director of
1033 the Department of Revenue. The business shall be responsible for
1034 forwarding a certified application to the department within the
1035 time specified in subparagraph 4.
1036 4. An application for a refund pursuant to this paragraph
1037 must be submitted to the department within 6 months after the
1038 tax is due on the business property that is purchased.
1039 5. The amount refunded on purchases of business property
1040 under this paragraph shall be the lesser of 97 percent of the
1041 sales tax paid on such business property or $5,000, or, if no
1042 less than 20 percent of the employees of the business are
1043 residents of an enterprise zone, excluding temporary and part
1044 time employees, the amount refunded on purchases of business
1045 property under this paragraph shall be the lesser of 97 percent
1046 of the sales tax paid on such business property or $10,000. A
1047 refund approved pursuant to this paragraph shall be made within
1048 30 days of formal approval by the department of the application
1049 for the refund. No refund shall be granted under this paragraph
1050 unless the amount to be refunded exceeds $100 in sales tax paid
1051 on purchases made within a 60-day time period.
1052 6. The department shall adopt rules governing the manner
1053 and form of refund applications and may establish guidelines as
1054 to the requisites for an affirmative showing of qualification
1055 for exemption under this paragraph.
1056 7. If the department determines that the business property
1057 is used outside an enterprise zone within 3 years from the date
1058 of purchase, the amount of taxes refunded to the business
1059 purchasing such business property shall immediately be due and
1060 payable to the department by the business, together with the
1061 appropriate interest and penalty, computed from the date of
1062 purchase, in the manner provided by this chapter.
1063 Notwithstanding this subparagraph, business property used
1064 exclusively in:
1065 a. Licensed commercial fishing vessels,
1066 b. Fishing guide boats, or
1067 c. Ecotourism guide boats
1068
1069 that leave and return to a fixed location within an area
1070 designated under s. 379.2353 are eligible for the exemption
1071 provided under this paragraph if all requirements of this
1072 paragraph are met. Such vessels and boats must be owned by a
1073 business that is eligible to receive the exemption provided
1074 under this paragraph. This exemption does not apply to the
1075 purchase of a vessel or boat.
1076 8. The department shall deduct an amount equal to 10
1077 percent of each refund granted under the provisions of this
1078 paragraph from the amount transferred into the Local Government
1079 Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
1080 for the county area in which the business property is located
1081 and shall transfer that amount to the General Revenue Fund.
1082 9. For the purposes of this exemption, “business property”
1083 means new or used property defined as “recovery property” in s.
1084 168(c) of the Internal Revenue Code of 1954, as amended, except:
1085 a. Property classified as 3-year property under s.
1086 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
1087 b. Industrial machinery and equipment as defined in sub
1088 subparagraph (b)6.a. and eligible for exemption under paragraph
1089 (b);
1090 c. Building materials as defined in sub-subparagraph
1091 (g)8.a.; and
1092 d. Business property having a sales price of under $5,000
1093 per unit.
1094 10. This paragraph expires on the date specified in s.
1095 290.016 for the expiration of the Florida Enterprise Zone Act.
1096 (i) Aircraft modification services.—There shall be exempt
1097 from the tax imposed by this chapter all charges for aircraft
1098 modification services, including parts and equipment furnished
1099 or installed in connection therewith, performed under authority
1100 of a supplemental type certificate issued by the Federal
1101 Aviation Administration.
1102 (j) Machinery and equipment used in semiconductor, defense,
1103 or space technology production.—
1104 1.a. Industrial machinery and equipment used in
1105 semiconductor technology facilities certified under subparagraph
1106 5. to manufacture, process, compound, or produce semiconductor
1107 technology products for sale or for use by these facilities are
1108 exempt from the tax imposed by this chapter. For purposes of
1109 this paragraph, industrial machinery and equipment includes
1110 molds, dies, machine tooling, other appurtenances or accessories
1111 to machinery and equipment, testing equipment, test beds,
1112 computers, and software, whether purchased or self-fabricated,
1113 and, if self-fabricated, includes materials and labor for
1114 design, fabrication, and assembly.
1115 b. Industrial machinery and equipment used in defense or
1116 space technology facilities certified under subparagraph 5. to
1117 design, manufacture, assemble, process, compound, or produce
1118 defense technology products or space technology products for
1119 sale or for use by these facilities are exempt from the tax
1120 imposed by this chapter.
1121 2. Building materials purchased for use in manufacturing or
1122 expanding clean rooms in semiconductor-manufacturing facilities
1123 are exempt from the tax imposed by this chapter.
1124 3. In addition to meeting the criteria mandated by
1125 subparagraph 1. or subparagraph 2., a business must be certified
1126 by the Office of Tourism, Trade, and Economic Development as
1127 authorized in this paragraph in order to qualify for exemption
1128 under this paragraph.
1129 4. For items purchased tax-exempt pursuant to this
1130 paragraph, possession of a written certification from the
1131 purchaser, certifying the purchaser’s entitlement to exemption
1132 pursuant to this paragraph, relieves the seller of the
1133 responsibility of collecting the tax on the sale of such items,
1134 and the department shall look solely to the purchaser for
1135 recovery of tax if it determines that the purchaser was not
1136 entitled to the exemption.
1137 5.a. To be eligible to receive the exemption provided by
1138 subparagraph 1. or subparagraph 2., a qualifying business entity
1139 shall apply initially to Enterprise Florida, Inc. The original
1140 certification shall be valid for a period of 2 years. In lieu of
1141 submitting a new application, the original certification may be
1142 renewed biennially by submitting to the Office of Tourism,
1143 Trade, and Economic Development a statement, certified under
1144 oath, that there has been no material change in the conditions
1145 or circumstances entitling the business entity to the original
1146 certification. The initial application and the certification
1147 renewal statement shall be developed by the Office of Tourism,
1148 Trade, and Economic Development in consultation with Enterprise
1149 Florida, Inc.
1150 b. Enterprise Florida, Inc., shall review each submitted
1151 initial application and information and determine whether or not
1152 the application is complete within 5 working days. Once an
1153 application is complete, Enterprise Florida, Inc., shall, within
1154 10 working days, evaluate the application and recommend approval
1155 or disapproval of the application to the Office of Tourism,
1156 Trade, and Economic Development.
1157 c. Upon receipt of the initial application and
1158 recommendation from Enterprise Florida, Inc., or upon receipt of
1159 a certification renewal statement, the Office of Tourism, Trade,
1160 and Economic Development shall certify within 5 working days
1161 those applicants who are found to meet the requirements of this
1162 section and notify the applicant, Enterprise Florida, Inc., and
1163 the department of the original certification or certification
1164 renewal. If the Office of Tourism, Trade, and Economic
1165 Development finds that the applicant does not meet the
1166 requirements of this section, it shall notify the applicant and
1167 Enterprise Florida, Inc., within 10 working days that the
1168 application for certification has been denied and the reasons
1169 for denial. The Office of Tourism, Trade, and Economic
1170 Development has final approval authority for certification under
1171 this section.
1172 d. The initial application and certification renewal
1173 statement must indicate, for program evaluation purposes only,
1174 the average number of full-time equivalent employees at the
1175 facility over the preceding calendar year, the average wage and
1176 benefits paid to those employees over the preceding calendar
1177 year, the total investment made in real and tangible personal
1178 property over the preceding calendar year, and the total value
1179 of tax-exempt purchases and taxes exempted during the previous
1180 year. The department shall assist the Office of Tourism, Trade,
1181 and Economic Development in evaluating and verifying information
1182 provided in the application for exemption.
1183 e. The Office of Tourism, Trade, and Economic Development
1184 may use the information reported on the initial application and
1185 certification renewal statement for evaluation purposes only and
1186 shall prepare an annual report on the exemption program and its
1187 cost and impact. The annual report for the preceding fiscal year
1188 shall be submitted to the Governor, the President of the Senate,
1189 and the Speaker of the House of Representatives by September 30
1190 of each fiscal year.
1191 6. A business certified to receive this exemption may elect
1192 to designate one or more state universities or community
1193 colleges as recipients of up to 100 percent of the amount of the
1194 exemption for which they may qualify. To receive these funds,
1195 the institution must agree to match the funds so earned with
1196 equivalent cash, programs, services, or other in-kind support on
1197 a one-to-one basis in the pursuit of research and development
1198 projects as requested by the certified business. The rights to
1199 any patents, royalties, or real or intellectual property must be
1200 vested in the business unless otherwise agreed to by the
1201 business and the university or community college.
1202 7. As used in this paragraph, the term:
1203 a. “Semiconductor technology products” means raw
1204 semiconductor wafers or semiconductor thin films that are
1205 transformed into semiconductor memory or logic wafers, including
1206 wafers containing mixed memory and logic circuits; related
1207 assembly and test operations; active-matrix flat panel displays;
1208 semiconductor chips; semiconductor lasers; optoelectronic
1209 elements; and related semiconductor technology products as
1210 determined by the Office of Tourism, Trade, and Economic
1211 Development.
1212 b. “Clean rooms” means manufacturing facilities enclosed in
1213 a manner that meets the clean manufacturing requirements
1214 necessary for high-technology semiconductor-manufacturing
1215 environments.
1216 c. “Defense technology products” means products that have a
1217 military application, including, but not limited to, weapons,
1218 weapons systems, guidance systems, surveillance systems,
1219 communications or information systems, munitions, aircraft,
1220 vessels, or boats, or components thereof, which are intended for
1221 military use and manufactured in performance of a contract with
1222 the United States Department of Defense or the military branch
1223 of a recognized foreign government or a subcontract thereunder
1224 which relates to matters of national defense.
1225 d. “Space technology products” means products that are
1226 specifically designed or manufactured for application in space
1227 activities, including, but not limited to, space launch
1228 vehicles, space flight vehicles, missiles, satellites or
1229 research payloads, avionics, and associated control systems and
1230 processing systems and components of any of the foregoing. The
1231 term does not include products that are designed or manufactured
1232 for general commercial aviation or other uses even though those
1233 products may also serve an incidental use in space applications.
1234 (k) Samples.—Paint color card samples, flooring and wall
1235 samples, fabric swatch samples, window covering samples, and
1236 similar samples, when such samples serve no useful purpose other
1237 than as a comparison of color, texture, or design; are provided
1238 by the manufacturer to a dealer or ultimate consumer for no
1239 charge; and are given away by the dealer to the ultimate
1240 consumer for no charge, are exempt.
1241 (l) Growth enhancers or performance enhancers for cattle.
1242 There is exempt from the tax imposed by this chapter the sale of
1243 performance-enhancing or growth-enhancing products 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 be
1298 submitted to the department within 6 months after the date the
1299 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 housing
1336 project or mixed-use project are exempt from the tax imposed by
1337 this chapter upon an affirmative showing to the satisfaction of
1338 the department that the requirements of this paragraph have been
1339 met. This exemption inures to the owner through a refund of
1340 previously paid taxes. To receive this refund, the owner must
1341 file an application under oath with the department which
1342 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 be
1359 submitted to the department within 6 months after the date the
1360 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 require
1394 the prior approval of the Office of Tourism, Trade, and Economic
1395 Development.
1396 e. The total amount of tax credits which may be granted for
1397 all programs approved under this paragraph, s. 220.183, and s.
1398 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 exclusively
1414 for use in a project. As used in this sub-subparagraph, the term
1415 “project” means any activity undertaken by an eligible sponsor
1416 which is designed to construct, improve, or substantially
1417 rehabilitate housing that is affordable to low-income or very
1418 low-income households as defined in s. 420.9071(19) and (28);
1419 designed to provide commercial, industrial, or public resources
1420 and facilities; or designed to improve entrepreneurial and job
1421 development opportunities for low-income persons. A project may
1422 be the investment necessary to increase access to high-speed
1423 broadband capability in rural communities with enterprise zones,
1424 including projects that result in improvements to communications
1425 assets that are owned by a business. A project may include the
1426 provision of museum educational programs and materials that are
1427 directly related to any project approved between January 1,
1428 1996, and December 31, 1999, and located in an enterprise zone
1429 designated pursuant to s. 290.0065. This paragraph does not
1430 preclude projects that propose to construct or rehabilitate
1431 housing for low-income or very-low-income households on
1432 scattered sites. With respect to housing, contributions may be
1433 used to pay the following eligible low-income and very-low
1434 income housing-related activities:
1435 (I) Project development impact and management fees for low
1436 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 property
1444 by municipal, county, or special district local governments when
1445 satisfaction of the lien is a necessary precedent to the
1446 transfer of the property to an eligible person, as defined in s.
1447 420.9071(19) and (28), for the purpose of promoting home
1448 ownership. Contributions for lien removal must be received from
1449 a nonrelated third party.
1450 c. The project must be undertaken by an “eligible sponsor,”
1451 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 office
1555 that a tax credit has been approved must apply to the department
1556 to receive the refund. Application must be made on the form
1557 prescribed for claiming refunds of sales and use taxes and be
1558 accompanied by a copy of the notification. A person may submit
1559 only one application for refund to the department within any 12
1560 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 of
1575 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 2008
1580 2009 fiscal year only, the total amount of tax credit which may
1581 be granted for all programs approved under this section and ss.
1582 220.183 and 624.5105 is $13 million annually for projects that
1583 provide homeownership opportunities for low-income or very-low
1584 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 any
1645 entity by this chapter do not inure to any transaction that is
1646 otherwise taxable under this chapter when payment is made by a
1647 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 admission
1688 is charged for viewing such film, and license fees and direct
1689 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 United
1692 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 tax
1731 imposed by this chapter are sales of utilities to residential
1732 households or owners of residential models in this state by
1733 utility companies who pay the gross receipts tax imposed under
1734 s. 203.01, and sales of fuel to residential households or owners
1735 of residential models, including oil, kerosene, liquefied
1736 petroleum gas, coal, wood, and other fuel products used in the
1737 household or residential model for the purposes of heating,
1738 cooking, lighting, and refrigeration, regardless of whether such
1739 sales of utilities and fuels are separately metered and billed
1740 direct to the residents or are metered and billed to the
1741 landlord. If any part of the utility or fuel is used for a
1742 nonexempt purpose, the entire sale is taxable. The landlord
1743 shall provide a separate meter for nonexempt utility or fuel
1744 consumption. For the purposes of this paragraph, licensed family
1745 day care homes shall also be exempt.
1746 (k) Meals provided by certain nonprofit organizations.
1747 There is exempt from the tax imposed by this chapter the sale of
1748 prepared meals by a nonprofit volunteer organization to
1749 handicapped, elderly, or indigent persons when such meals are
1750 delivered as a charitable function by the organization to such
1751 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 applies
1836 to school books used in regularly prescribed courses of study,
1837 and to school lunches served in public, parochial, or nonprofit
1838 schools operated for and attended by pupils of grades K through
1839 12. Yearbooks, magazines, newspapers, directories, bulletins,
1840 and similar publications distributed by such educational
1841 institutions to their students are also exempt. School books and
1842 food sold or served at community colleges and other institutions
1843 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, or
1893 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 or
1911 warranty work on vessels under the care, custody, and control of
1912 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 transaction
1948 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 any
1966 boat or vessel, with the crew furnished, solely for the purpose
1967 of fishing is exempt from the tax imposed under s. 212.04 or s.
1968 212.05. This exemption does not apply to any charge to enter or
1969 stay upon any “head-boat,” party boat, or other boat or vessel.
1970 Nothing in this paragraph shall be construed to exempt any boat
1971 from sales or use tax upon the purchase thereof except as
1972 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 sale,
1980 lease, or rental of a commercial motor vehicle as defined in s.
1981 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 any
1989 nonprofit corporation that has qualified under s. 501(c)(13) of
1990 the Internal Revenue Code of 1986, as amended, and is operated
1991 for the purpose of maintaining a cemetery that was donated to
1992 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-supported,
2049 parochial, church, and nonprofit private schools, colleges, or
2050 universities that conduct regular classes and courses of study
2051 required for accreditation by or membership in the Southern
2052 Association of Colleges and Schools, the Florida Council of
2053 Independent Schools, or the Florida Association of Christian
2054 Colleges and Schools, Inc.; nonprofit private schools that
2055 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 the
2112 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 by
2122 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 exempt
2152 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 imposed
2168 by this chapter are food or drinks that are furnished as part of
2169 a packaged room rate by any person offering for rent or lease
2170 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 work
2181 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 is
2239 exempt if the owner is also the breeder of the animal.
2240 (rr) Equipment used in aircraft repair and maintenance.
2241 There shall be exempt from the tax imposed by this chapter
2242 replacement engines, parts, and equipment used in the repair or
2243 maintenance of qualified aircraft, aircraft of more than 15,000
2244 pounds maximum certified takeoff weight, and rotary wing
2245 aircraft of more than 10,300 pounds maximum certified takeoff
2246 weight, when such parts or equipment are installed on such
2247 aircraft that is being repaired or maintained in this state.
2248 (ss) Aircraft sales or leases.—The sale or lease of a
2249 qualified aircraft or an aircraft of more than 15,000 pounds
2250 maximum certified takeoff weight for use by a common carrier is
2251 exempt from the tax imposed by this chapter. As used in this
2252 paragraph, “common carrier” means an airline operating under
2253 Federal Aviation Administration regulations contained in Title
2254 14, chapter I, part 121 or part 129 of the Code of Federal
2255 Regulations.
2256 (tt) Nonprofit water systems.—Sales or leases to a not-for
2257 profit corporation which holds a current exemption from federal
2258 income tax under s. 501(c)(4) or (12) of the Internal Revenue
2259 Code, as amended, are exempt from the tax imposed by this
2260 chapter if the sole or primary function of the corporation is to
2261 construct, maintain, or operate a water system in this state.
2262 (uu) Library cooperatives.—Sales or leases to library
2263 cooperatives certified under s. 257.41(2) are exempt from the
2264 tax imposed by this chapter.
2265 (vv) Advertising agencies.—
2266 1. As used in this paragraph, the term “advertising agency”
2267 means any firm that is primarily engaged in the business of
2268 providing advertising materials and services to its clients.
2269 2. The sale of advertising services by an advertising
2270 agency to a client is exempt from the tax imposed by this
2271 chapter. Also exempt from the tax imposed by this chapter are
2272 items of tangible personal property such as photographic
2273 negatives and positives, videos, films, galleys, mechanicals,
2274 veloxes, illustrations, digital audiotapes, analog tapes,
2275 printed advertisement copies, compact discs for the purpose of
2276 recording, digital equipment, and artwork and the services used
2277 to produce those items if the items are:
2278 a. Sold to an advertising agency that is acting as an agent
2279 for its clients pursuant to contract, and are created for the
2280 performance of advertising services for the clients;
2281 b. Produced, fabricated, manufactured, or otherwise created
2282 by an advertising agency for its clients, and are used in the
2283 performance of advertising services for the clients; or
2284 c. Sold by an advertising agency to its clients in the
2285 performance of advertising services for the clients, whether or
2286 not the charges for these items are marked up or separately
2287 stated.
2288
2289 The exemption provided by this subparagraph does not apply when
2290 tangible personal property such as film, paper, and videotapes
2291 is purchased to create items such as photographic negatives and
2292 positives, videos, films, galleys, mechanicals, veloxes,
2293 illustrations, and artwork that are sold to an advertising
2294 agency or produced in-house by an advertising agency on behalf
2295 of its clients.
2296 3. The items exempted from tax under subparagraph 2. and
2297 the creative services used by an advertising agency to design
2298 the advertising for promotional goods such as displays, display
2299 containers, exhibits, newspaper inserts, brochures, catalogues,
2300 direct mail letters or flats, shirts, hats, pens, pencils, key
2301 chains, or other printed goods or materials are not subject to
2302 tax. However, when such promotional goods are produced or
2303 reproduced for distribution, tax applies to the sales price
2304 charged to the client for such promotional goods.
2305 4. For items purchased by an advertising agency and exempt
2306 from tax under this paragraph, possession of an exemption
2307 certificate from the advertising agency certifying the agency’s
2308 entitlement to exemption relieves the vendor of the
2309 responsibility of collecting the tax on the sale of such items
2310 to the advertising agency, and the department shall look solely
2311 to the advertising agency for recovery of tax if it determines
2312 that the advertising agency was not entitled to the exemption.
2313 5. The exemptions provided by this paragraph apply
2314 retroactively, except that all taxes that have been collected
2315 must be remitted, and taxes that have been remitted before July
2316 1, 1999, on transactions that are subject to exemption under
2317 this paragraph are not subject to refund.
2318 6. The department may adopt rules that interpret or define
2319 the provisions of these exemptions and provide examples
2320 regarding the application of these exemptions.
2321 (ww) Bullion.—The sale of gold, silver, or platinum
2322 bullion, or any combination thereof, in a single transaction is
2323 exempt if the sales price exceeds $500. The dealer must maintain
2324 proper documentation, as prescribed by rule of the department,
2325 to identify that portion of a transaction which involves the
2326 sale of gold, silver, or platinum bullion and is exempt under
2327 this paragraph.
2328 (xx) Certain repair and labor charges.—
2329 1. Subject to the provisions of subparagraphs 2. and 3.,
2330 there is exempt from the tax imposed by this chapter all labor
2331 charges for the repair of, and parts and materials used in the
2332 repair of and incorporated into, industrial machinery and
2333 equipment which is used for the manufacture, processing,
2334 compounding, production, or preparation for shipping of items of
2335 tangible personal property at a fixed location within this
2336 state.
2337 2. This exemption applies only to industries classified
2338 under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2339 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2340 and 39 and Industry Group Number 212. As used in this
2341 subparagraph, “SIC” means those classifications contained in the
2342 Standard Industrial Classification Manual, 1987, as published by
2343 the Office of Management and Budget, Executive Office of the
2344 President.
2345 3. This exemption shall be applied as follows:
2346 a. Beginning July 1, 2000, 50 percent of such charges for
2347 repair parts and labor shall be exempt.
2348 b. Beginning July 1, 2001, 75 percent of such charges for
2349 repair parts and labor shall be exempt.
2350 c. Beginning July 1, 2002, 100 percent of such charges for
2351 repair parts and labor shall be exempt.
2352 (yy) Film and other printing supplies.—Also exempt are the
2353 following materials purchased, produced, or created by
2354 businesses classified under SIC Industry Numbers 275, 276, 277,
2355 278, or 279 for use in producing graphic matter for sale: film,
2356 photographic paper, dyes used for embossing and engraving,
2357 artwork, typography, lithographic plates, and negatives. As used
2358 in this paragraph, “SIC” means those classifications contained
2359 in the Standard Industrial Classification Manual, 1987, as
2360 published by the Office of Management and Budget, Executive
2361 Office of the President.
2362 (zz) People-mover systems.—People-mover systems, and parts
2363 thereof, which are purchased or manufactured by contractors
2364 employed either directly by or as agents for the United States
2365 Government, the state, a county, a municipality, a political
2366 subdivision of the state, or the public operator of a public-use
2367 airport as defined by s. 332.004(14) are exempt from the tax
2368 imposed by this chapter when the systems or parts go into or
2369 become part of publicly owned facilities. In the case of
2370 contractors who manufacture and install such systems and parts,
2371 this exemption extends to the purchase of component parts and
2372 all other manufacturing and fabrication costs. The department
2373 may provide a form to be used by contractors to provide to
2374 suppliers of people-mover systems or parts to certify the
2375 contractors’ eligibility for the exemption provided under this
2376 paragraph. As used in this paragraph, “people-mover systems”
2377 includes wheeled passenger vehicles and related control and
2378 power distribution systems that are part of a transportation
2379 system for use by the general public, regardless of whether such
2380 vehicles are operator-controlled or driverless, self-propelled
2381 or propelled by external power and control systems, or conducted
2382 on roads, rails, guidebeams, or other permanent structures that
2383 are an integral part of such transportation system. “Related
2384 control and power distribution systems” includes any electrical
2385 or electronic control or signaling equipment, but does not
2386 include the embedded wiring, conduits, or cabling used to
2387 transmit electrical or electronic signals among such control
2388 equipment, power distribution equipment, signaling equipment,
2389 and wheeled vehicles.
2390 (aaa) Florida Fire and Emergency Services Foundation.—Sales
2391 or leases to the Florida Fire and Emergency Services Foundation
2392 are exempt from the tax imposed by this chapter.
2393 (bbb) Railroad roadway materials.—Also exempt from the tax
2394 imposed by this chapter are railroad roadway materials used in
2395 the construction, repair, or maintenance of railways. Railroad
2396 roadway materials shall include rails, ties, ballasts,
2397 communication equipment, signal equipment, power transmission
2398 equipment, and any other track materials.
2399 (ccc) Equipment, machinery, and other materials for
2400 renewable energy technologies.—
2401 1. As used in this paragraph, the term:
2402 a. “Biodiesel” means the mono-alkyl esters of long-chain
2403 fatty acids derived from plant or animal matter for use as a
2404 source of energy and meeting the specifications for biodiesel
2405 and biodiesel blends with petroleum products as adopted by the
2406 Department of Agriculture and Consumer Services. Biodiesel may
2407 refer to biodiesel blends designated BXX, where XX represents
2408 the volume percentage of biodiesel fuel in the blend.
2409 b. “Ethanol” means an anhydrous denatured alcohol produced
2410 by the conversion of carbohydrates meeting the specifications
2411 for fuel ethanol and fuel ethanol blends with petroleum products
2412 as adopted by the Department of Agriculture and Consumer
2413 Services. Ethanol may refer to fuel ethanol blends designated
2414 EXX, where XX represents the volume percentage of fuel ethanol
2415 in the blend.
2416 c. “Hydrogen fuel cells” means equipment using hydrogen or
2417 a hydrogen-rich fuel in an electrochemical process to generate
2418 energy, electricity, or the transfer of heat.
2419 2. The sale or use of the following in the state is exempt
2420 from the tax imposed by this chapter:
2421 a. Hydrogen-powered vehicles, materials incorporated into
2422 hydrogen-powered vehicles, and hydrogen-fueling stations, up to
2423 a limit of $2 million in tax each state fiscal year for all
2424 taxpayers.
2425 b. Commercial stationary hydrogen fuel cells, up to a limit
2426 of $1 million in tax each state fiscal year for all taxpayers.
2427 c. Materials used in the distribution of biodiesel (B10
2428 B100) and ethanol (E10-E100), including fueling infrastructure,
2429 transportation, and storage, up to a limit of $1 million in tax
2430 each state fiscal year for all taxpayers. Gasoline fueling
2431 station pump retrofits for ethanol (E10-E100) distribution
2432 qualify for the exemption provided in this sub-subparagraph.
2433 3. The Florida Energy and Climate Commission shall provide
2434 to the department a list of items eligible for the exemption
2435 provided in this paragraph.
2436 4.a. The exemption provided in this paragraph shall be
2437 available to a purchaser only through a refund of previously
2438 paid taxes. An eligible item is subject to refund one time. A
2439 person who has received a refund on an eligible item shall
2440 notify the next purchaser of the item that such item is no
2441 longer eligible for a refund of paid taxes. This notification
2442 shall be provided to each subsequent purchaser on the sales
2443 invoice or other proof of purchase.
2444 b. To be eligible to receive the exemption provided in this
2445 paragraph, a purchaser shall file an application with the
2446 Florida Energy and Climate Commission. The application shall be
2447 developed by the Florida Energy and Climate Commission, in
2448 consultation with the department, and shall require:
2449 (I) The name and address of the person claiming the refund.
2450 (II) A specific description of the purchase for which a
2451 refund is sought, including, when applicable, a serial number or
2452 other permanent identification number.
2453 (III) The sales invoice or other proof of purchase showing
2454 the amount of sales tax paid, the date of purchase, and the name
2455 and address of the sales tax dealer from whom the property was
2456 purchased.
2457 (IV) A sworn statement that the information provided is
2458 accurate and that the requirements of this paragraph have been
2459 met.
2460 c. Within 30 days after receipt of an application, the
2461 Florida Energy and Climate Commission shall review the
2462 application and shall notify the applicant of any deficiencies.
2463 Upon receipt of a completed application, the Florida Energy and
2464 Climate Commission shall evaluate the application for exemption
2465 and issue a written certification that the applicant is eligible
2466 for a refund or issue a written denial of such certification
2467 within 60 days after receipt of the application. The Florida
2468 Energy and Climate Commission shall provide the department with
2469 a copy of each certification issued upon approval of an
2470 application.
2471 d. Each certified applicant shall be responsible for
2472 forwarding a certified copy of the application and copies of all
2473 required documentation to the department within 6 months after
2474 certification by the Florida Energy and Climate Commission.
2475 e. A refund approved pursuant to this paragraph shall be
2476 made within 30 days after formal approval by the department.
2477 f. The Florida Energy and Climate Commission may adopt the
2478 form for the application for a certificate, requirements for the
2479 content and format of information submitted to the Florida
2480 Energy and Climate Commission in support of the application,
2481 other procedural requirements, and criteria by which the
2482 application will be determined by rule. The department may adopt
2483 all other rules pursuant to ss. 120.536(1) and 120.54 to
2484 administer this paragraph, including rules establishing
2485 additional forms and procedures for claiming this exemption.
2486 g. The Florida Energy and Climate Commission shall be
2487 responsible for ensuring that the total amounts of the
2488 exemptions authorized do not exceed the limits as specified in
2489 subparagraph 2.
2490 5. The Florida Energy and Climate Commission shall
2491 determine and publish on a regular basis the amount of sales tax
2492 funds remaining in each fiscal year.
2493 6. This paragraph expires July 1, 2010.
2494 (ddd) Advertising materials distributed free of charge by
2495 mail in an envelope.—Likewise exempt are materials consisting
2496 exclusively of advertisements, such as individual coupons or
2497 other individual cards, sheets, or pages of printed advertising,
2498 that are distributed free of charge by mail in an envelope for
2499 10 or more persons on a monthly, bimonthly, or other regular
2500 basis.
2501 (eee) Certain delivery charges.—Separately stated charges
2502 that can be avoided at the option of the purchaser for the
2503 delivery, inspection, placement, or removal from packaging or
2504 shipping materials of furniture or appliances by the selling
2505 dealer at the premises of the purchaser or the removal of
2506 similar items from the premises of the purchaser are exempt. If
2507 any charge for delivery, inspection, placement, or removal of
2508 furniture or appliances includes the modification, assembly, or
2509 construction of such furniture or appliances, then all of the
2510 charges are taxable.
2511 (fff) Bookstore operations at a postsecondary educational
2512 institution.—Also exempt from payment of the tax imposed by this
2513 chapter on renting, leasing, letting, or granting a license for
2514 the use of any real property are payments to a postsecondary
2515 educational institution made by any person pursuant to a grant
2516 of the right to conduct bookstore operations on real property
2517 owned or leased by the postsecondary educational institution. As
2518 used in this paragraph, the term “bookstore operations” means
2519 activities consisting predominantly of sales, distribution, and
2520 provision of textbooks, merchandise, and services traditionally
2521 offered in college and university bookstores for the benefit of
2522 the institution’s students, faculty, and staff.
2523 (8) PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE OR
2524 FOREIGN COMMERCE.—
2525 (a) The sale or use of vessels and parts thereof used to
2526 transport persons or property in interstate or foreign commerce,
2527 including commercial fishing vessels, is subject to the taxes
2528 imposed in this chapter only to the extent provided herein. The
2529 basis of the tax shall be the ratio of intrastate mileage to
2530 interstate or foreign mileage traveled by the carrier’s vessels
2531 which were used in interstate or foreign commerce and which had
2532 at least some Florida mileage during the previous fiscal year.
2533 The ratio would be determined at the close of the carrier’s
2534 fiscal year. However, during the fiscal year in which the vessel
2535 begins its initial operations in this state, the vessel’s
2536 mileage apportionment factor may be determined on the basis of
2537 an estimated ratio of anticipated miles in this state to
2538 anticipated total miles for that year and, subsequently,
2539 additional tax shall be paid on the vessel, or a refund may be
2540 applied for, on the basis of the actual ratio of the vessel’s
2541 miles in this state to its total miles for that year. This ratio
2542 shall be applied each month to the total Florida purchases of
2543 such vessels and parts thereof which are used in Florida to
2544 establish that portion of the total used and consumed in
2545 intrastate movement and subject to the tax at the applicable
2546 rate. The basis for imposition of any discretionary surtax shall
2547 be as set forth in s. 212.054. Items, appropriate to carry out
2548 the purposes for which a vessel is designed or equipped and
2549 used, purchased by the owner, operator, or agent of a vessel for
2550 use on board such vessel shall be deemed to be parts of the
2551 vessel upon which the same are used or consumed. Vessels and
2552 parts thereof used to transport persons or property in
2553 interstate and foreign commerce are hereby determined to be
2554 susceptible to a distinct and separate classification for
2555 taxation under the provisions of this chapter. Vessels and parts
2556 thereof used exclusively in intrastate commerce do not qualify
2557 for the proration of tax.
2558 (b) The partial exemption provided for in this subsection
2559 shall not be allowed unless the purchaser signs an affidavit
2560 stating that the item or items to be partially exempted are for
2561 the exclusive use designated herein and setting forth the extent
2562 of such partial exemption. Any person furnishing a false
2563 affidavit to such effect for the purpose of evading payment of
2564 any tax imposed under this chapter is subject to the penalties
2565 set forth in s. 212.12 and as otherwise provided by law.
2566 (c) It is the intent of the Legislature that neither
2567 subsection (4) nor this subsection shall be construed as
2568 imposing the tax provided by this chapter on vessels used as
2569 common carriers, contract carriers, or private carriers, engaged
2570 in interstate or foreign commerce, except to the extent provided
2571 by the pro rata formula provided in subsection (4) and in
2572 paragraph (a).
2573 (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
2574 ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.—
2575 (a) Railroads that are licensed as common carriers by the
2576 Surface Transportation Board and parts thereof used to transport
2577 persons or property in interstate or foreign commerce are
2578 subject to tax imposed in this chapter only to the extent
2579 provided herein. The basis of the tax shall be the ratio of
2580 intrastate mileage to interstate or foreign mileage traveled by
2581 the carrier during the previous fiscal year of the carrier. Such
2582 ratio is to be determined at the close of the carrier’s fiscal
2583 year. However, during the fiscal year in which the railroad
2584 begins its initial operations in this state, the railroad’s
2585 mileage apportionment factor may be determined on the basis of
2586 an estimated ratio of anticipated miles in this state to
2587 anticipated total miles for that year and, subsequently,
2588 additional tax shall be paid on the railroad, or a refund may be
2589 applied for, on the basis of the actual ratio of the railroad’s
2590 miles in this state to its total miles for that year. This ratio
2591 shall be applied each month to the purchases of the railroad in
2592 this state which are used in this state to establish that
2593 portion of the total used and consumed in intrastate movement
2594 and subject to tax under this chapter. The basis for imposition
2595 of any discretionary surtax is set forth in s. 212.054.
2596 Railroads that are licensed as common carriers by the Surface
2597 Transportation Board and parts thereof used to transport persons
2598 or property in interstate and foreign commerce are hereby
2599 determined to be susceptible to a distinct and separate
2600 classification for taxation under the provisions of this
2601 chapter.
2602 (b) Motor vehicles that are engaged in interstate commerce
2603 as common carriers, and parts thereof, used to transport persons
2604 or property in interstate or foreign commerce are subject to tax
2605 imposed in this chapter only to the extent provided herein. The
2606 basis of the tax shall be the ratio of intrastate mileage to
2607 interstate or foreign mileage traveled by the carrier’s motor
2608 vehicles which were used in interstate or foreign commerce and
2609 which had at least some Florida mileage during the previous
2610 fiscal year of the carrier. Such ratio is to be determined at
2611 the close of the carrier’s fiscal year. However, during the
2612 fiscal year in which the carrier begins its initial operations
2613 in this state, the carrier’s mileage apportionment factor may be
2614 determined on the basis of an estimated ratio of anticipated
2615 miles in this state to anticipated total miles for that year
2616 and, subsequently, additional tax shall be paid on the carrier,
2617 or a refund may be applied for, on the basis of the actual ratio
2618 of the carrier’s miles in this state to its total miles for that
2619 year. This ratio shall be applied each month to the purchases in
2620 this state of such motor vehicles and parts thereof which are
2621 used in this state to establish that portion of the total used
2622 and consumed in intrastate movement and subject to tax under
2623 this chapter. The basis for imposition of any discretionary
2624 surtax is set forth in s. 212.054. Motor vehicles that are
2625 engaged in interstate commerce, and parts thereof, used to
2626 transport persons or property in interstate and foreign commerce
2627 are hereby determined to be susceptible to a distinct and
2628 separate classification for taxation under the provisions of
2629 this chapter. Motor vehicles and parts thereof used exclusively
2630 in intrastate commerce do not qualify for the proration of tax.
2631 For purposes of this paragraph, parts of a motor vehicle engaged
2632 in interstate commerce include a separate tank not connected to
2633 the fuel supply system of the motor vehicle into which diesel
2634 fuel is placed to operate a refrigeration unit or other
2635 equipment.
2636 (10) PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT OF
2637 ANOTHER STATE.—
2638 (a) The tax collected on the sale of a new or used motor
2639 vehicle in this state to a resident of another state shall be an
2640 amount equal to the sales tax which would be imposed on such
2641 sale under the laws of the state of which the purchaser is a
2642 resident, except that such tax shall not exceed the tax that
2643 would otherwise be imposed under this chapter. At the time of
2644 the sale, the purchaser shall execute a notarized statement of
2645 his or her intent to license the vehicle in the state of which
2646 the purchaser is a resident within 45 days of the sale and of
2647 the fact of the payment to the State of Florida of a sales tax
2648 in an amount equivalent to the sales tax of his or her state of
2649 residence and shall submit the statement to the appropriate
2650 sales tax collection agency in his or her state of residence.
2651 Nothing in this subsection shall be construed to require the
2652 removal of the vehicle from this state following the filing of
2653 an intent to license the vehicle in the purchaser’s home state
2654 if the purchaser licenses the vehicle in his or her home state
2655 within 45 days after the date of sale.
2656 (b) Notwithstanding the partial exemption allowed in
2657 paragraph (a), a vehicle is subject to this state’s sales tax at
2658 the applicable state sales tax rate plus authorized surtaxes
2659 when the vehicle is purchased by a nonresident corporation or
2660 partnership and:
2661 1. An officer of the corporation is a resident of this
2662 state;
2663 2. A stockholder of the corporation who owns at least 10
2664 percent of the corporation is a resident of this state; or
2665 3. A partner in the partnership who has at least 10 percent
2666 ownership is a resident of this state.
2667
2668 However, if the vehicle is removed from this state within 45
2669 days after purchase and remains outside the state for a minimum
2670 of 180 days, the vehicle may qualify for the partial exemption
2671 allowed in paragraph (a) despite the residency of owners or
2672 stockholders of the purchasing entity.
2673 (c) Nothing herein shall require the payment of tax to the
2674 State of Florida for assessments made prior to July 1, 2001, if
2675 the tax imposed by this section has been paid to the state in
2676 which the vehicle was licensed and the department has assessed a
2677 like amount of tax on the same transactions. This provision
2678 shall apply retroactively to assessments that have been
2679 protested prior to August 1, 1999, and have not been paid on the
2680 date this act takes effect.
2681 (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.—
2682 (a) The tax imposed on the sale by a manufacturer of
2683 flyable aircraft, who designs such aircraft, which sale may
2684 include necessary equipment and modifications placed on such
2685 flyable aircraft prior to delivery by the manufacturer, shall be
2686 an amount equal to the sales tax which would be imposed on such
2687 sale under the laws of the state in which the aircraft will be
2688 domiciled.
2689 (b) This partial exemption applies only if the purchaser is
2690 a resident of another state who will not use the aircraft in
2691 this state, or if the purchaser is a resident of another state
2692 and uses the aircraft in interstate or foreign commerce, or if
2693 the purchaser is a resident of a foreign country.
2694 (c) The maximum tax collectible under this subsection may
2695 not exceed 6 percent of the sales price of such aircraft. No
2696 Florida tax may be imposed on the sale of such aircraft if the
2697 state in which the aircraft will be domiciled does not allow
2698 Florida sales or use tax to be credited against its sales or use
2699 tax. Furthermore, no tax may be imposed on the sale of such
2700 aircraft if the state in which the aircraft will be domiciled
2701 has enacted a sales and use tax exemption for flyable aircraft
2702 or if the aircraft will be domiciled outside the United States.
2703 (d) The purchaser shall execute a sworn affidavit attesting
2704 that he or she is not a resident of this state and stating where
2705 the aircraft will be domiciled. If the aircraft is subsequently
2706 used in this state within 6 months of the time of purchase, in
2707 violation of the intent of this subsection, the purchaser shall
2708 be liable for payment of the full use tax imposed by this
2709 chapter and shall be subject to the penalty imposed by s.
2710 212.12(2), which penalty shall be mandatory. Notwithstanding the
2711 provisions of this paragraph, the owner of an aircraft purchased
2712 pursuant to this subsection may permit the aircraft to be
2713 returned to this state for repairs within 6 months after the
2714 date of sale without the aircraft being in violation of the law
2715 and without incurring liability for payment of tax or penalty on
2716 the purchase price of the aircraft, so long as the aircraft is
2717 removed from this state within 20 days after the completion of
2718 the repairs and such removal can be proven by invoices for fuel,
2719 tie-down, or hangar charges issued by out-of-state vendors or
2720 suppliers or similar documentation.
2721 (12) PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS, OR
2722 VIDEO TAPES.—
2723 (a) There are exempt from the taxes imposed by this chapter
2724 the gross receipts from the sale or lease of, and the storage,
2725 use, or other consumption in this state of, master tapes or
2726 master records embodying sound, or master films or master video
2727 tapes; except that amounts paid to recording studios or motion
2728 picture or television studios for the tangible elements of such
2729 master tapes, records, films, or video tapes are taxable as
2730 otherwise provided in this chapter. This exemption will inure to
2731 the taxpayer upon presentation of the certificate of exemption
2732 issued to the taxpayer under the provisions of s. 288.1258.
2733 (b) For the purposes of this subsection, the term:
2734 1. “Amounts paid for the tangible elements” does not
2735 include any amounts paid for the copyrightable, artistic, or
2736 other intangible elements of such master tapes, records, films,
2737 or video tapes, whether designated as royalties or otherwise,
2738 including, but not limited to, services rendered in producing,
2739 fabricating, processing, or imprinting tangible personal
2740 property or any other services or production expenses in
2741 connection therewith which may otherwise be construed as
2742 constituting a “sale” under s. 212.02.
2743 2. “Master films or master video tapes” means films or
2744 video tapes utilized by the motion picture and television
2745 production industries in making visual images for reproduction.
2746 3. “Master tapes or master records embodying sound” means
2747 tapes, records, and other devices utilized by the recording
2748 industry in making recordings embodying sound.
2749 4. “Motion picture or television studio” means a facility
2750 in which film or video tape productions or parts of productions
2751 are made and which contains the necessary equipment and
2752 personnel for this purpose and includes a mobile unit or vehicle
2753 that is equipped in much the same manner as a stationary studio
2754 and used in the making of film or video tape productions.
2755 5. “Recording studio” means a place where, by means of
2756 mechanical or electronic devices, voices, music, or other sounds
2757 are transmitted to tapes, records, or other devices capable of
2758 reproducing sound.
2759 6. “Recording industry” means any person engaged in an
2760 occupation or business of making recordings embodying sound for
2761 a livelihood or for a profit.
2762 7. “Motion picture or television production industry” means
2763 any person engaged in an occupation or business for a livelihood
2764 or for profit of making visual motion picture or television
2765 visual images for showing on screen or television for
2766 theatrical, commercial, advertising, or educational purposes.
2767 (13) No transactions shall be exempt from the tax imposed
2768 by this chapter except those expressly exempted herein. All laws
2769 granting tax exemptions, to the extent they may be inconsistent
2770 or in conflict with this chapter, including, but not limited to,
2771 the following designated laws, shall yield to and be superseded
2772 by the provisions of this subsection: ss. 125.019, 153.76,
2773 154.2331, 159.15, 159.31, 159.50, 159.708, 163.385, 163.395,
2774 215.76, 243.33, 315.11, 348.65, 348.762, 349.13, 403.1834,
2775 616.07, and 623.09, and the following Laws of Florida, acts of
2776 the year indicated: s. 31, chapter 30843, 1955; s. 19, chapter
2777 30845, 1955; s. 12, chapter 30927, 1955; s. 8, chapter 31179,
2778 1955; s. 15, chapter 31263, 1955; s. 13, chapter 31343, 1955; s.
2779 16, chapter 59-1653; s. 13, chapter 59-1356; s. 12, chapter 61
2780 2261; s. 19, chapter 61-2754; s. 10, chapter 61-2686; s. 11,
2781 chapter 63-1643; s. 11, chapter 65-1274; s. 16, chapter 67-1446;
2782 and s. 10, chapter 67-1681. This subsection does not supersede
2783 the authority of a local government to adopt financial and local
2784 government incentives pursuant to s. 163.2517.
2785 (14) TECHNICAL ASSISTANCE ADVISORY COMMITTEE.—The
2786 department shall establish a technical assistance advisory
2787 committee with public and private sector members, including
2788 representatives of both manufacturers and retailers, to advise
2789 the Department of Revenue and the Department of Health in
2790 determining the taxability of specific products and product
2791 lines pursuant to subsection (1) and paragraph (2)(a). In
2792 determining taxability and in preparing a list of specific
2793 products and product lines that are or are not taxable, the
2794 committee shall not be subject to the provisions of chapter 120.
2795 Private sector members shall not be compensated for serving on
2796 the committee.
2797 (15) ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.—
2798 (a) Beginning July 1, 1995, charges for electrical energy
2799 used by a qualified business at a fixed location in an
2800 enterprise zone in a municipality which has enacted an ordinance
2801 pursuant to s. 166.231(8) which provides for exemption of
2802 municipal utility taxes on such businesses or in an enterprise
2803 zone jointly authorized by a county and a municipality which has
2804 enacted an ordinance pursuant to s. 166.231(8) which provides
2805 for exemption of municipal utility taxes on such businesses
2806 shall receive an exemption equal to 50 percent of the tax
2807 imposed by this chapter, or, if no less than 20 percent of the
2808 employees of the business are residents of an enterprise zone,
2809 excluding temporary and part-time employees, the exemption shall
2810 be equal to 100 percent of the tax imposed by this chapter. A
2811 qualified business may receive such exemption for a period of 5
2812 years from the billing period beginning not more than 30 days
2813 following notification to the applicable utility company by the
2814 department that an exemption has been authorized pursuant to
2815 this subsection and s. 166.231(8).
2816 (b) To receive this exemption, a business must file an
2817 application, with the enterprise zone development agency having
2818 jurisdiction over the enterprise zone where the business is
2819 located, on a form provided by the department for the purposes
2820 of this subsection and s. 166.231(8). The application shall be
2821 made under oath and shall include:
2822 1. The name and location of the business.
2823 2. The identifying number assigned pursuant to s. 290.0065
2824 to the enterprise zone in which the business is located.
2825 3. The date on which electrical service is to be first
2826 initiated to the business.
2827 4. The name and mailing address of the entity from which
2828 electrical energy is to be purchased.
2829 5. The date of the application.
2830 6. The name of the city in which the business is located.
2831 7. If applicable, the name and address of each permanent
2832 employee of the business including, for each employee who is a
2833 resident of an enterprise zone, the identifying number assigned
2834 pursuant to s. 290.0065 to the enterprise zone in which the
2835 employee resides.
2836 8. Whether the business is a small business as defined by
2837 s. 288.703(1).
2838 (c) Within 10 working days after receipt of an application,
2839 the enterprise zone development agency shall review the
2840 application to determine if it contains all information required
2841 pursuant to paragraph (b) and meets the criteria set out in this
2842 subsection. The agency shall certify all applications that
2843 contain the information required pursuant to paragraph (b) and
2844 meet the criteria set out in this subsection as eligible to
2845 receive an exemption. If applicable, the agency shall also
2846 certify if 20 percent of the employees of the business are
2847 residents of an enterprise zone, excluding temporary and part
2848 time employees. The certification shall be in writing, and a
2849 copy of the certification shall be transmitted to the executive
2850 director of the Department of Revenue. The applicant shall be
2851 responsible for forwarding a certified application to the
2852 department within 6 months after the occurrence of the
2853 appropriate qualifying provision set out in paragraph (f).
2854 (d) If, in a subsequent audit conducted by the department,
2855 it is determined that the business did not meet the criteria
2856 mandated in this subsection, the amount of taxes exempted shall
2857 immediately be due and payable to the department by the
2858 business, together with the appropriate interest and penalty,
2859 computed from the due date of each bill for the electrical
2860 energy purchased as exempt under this subsection, in the manner
2861 prescribed by this chapter.
2862 (e) The department shall adopt rules governing applications
2863 for, issuance of, and the form of applications for the exemption
2864 authorized in this subsection and provisions for recapture of
2865 taxes exempted under this subsection, and the department may
2866 establish guidelines as to qualifications for exemption.
2867 (f) For the purpose of the exemption provided in this
2868 subsection, the term “qualified business” means a business which
2869 is:
2870 1. First occupying a new structure to which electrical
2871 service, other than that used for construction purposes, has not
2872 been previously provided or furnished;
2873 2. Newly occupying an existing, remodeled, renovated, or
2874 rehabilitated structure to which electrical service, other than
2875 that used for remodeling, renovation, or rehabilitation of the
2876 structure, has not been provided or furnished in the three
2877 preceding billing periods; or
2878 3. Occupying a new, remodeled, rebuilt, renovated, or
2879 rehabilitated structure for which a refund has been granted
2880 pursuant to paragraph (5)(g).
2881 (g) This subsection expires on the date specified in s.
2882 290.016 for the expiration of the Florida Enterprise Zone Act,
2883 except that:
2884 1. Paragraph (d) shall not expire; and
2885 2. Any qualified business which has been granted an
2886 exemption under this subsection prior to that date shall be
2887 allowed the full benefit of this exemption as if this subsection
2888 had not expired on that date.
2889 (16) EXEMPTIONS; SPACE ACTIVITIES.—
2890 (a) There shall be exempt from the tax imposed by this
2891 chapter:
2892 1. The sale, lease, use, storage, consumption, or
2893 distribution in this state of any orbital space facility, space
2894 propulsion system, or space vehicle, satellite, or station of
2895 any kind possessing space flight capacity, including the
2896 components thereof.
2897 2. The sale, lease, use, storage, consumption, or
2898 distribution in this state of tangible personal property placed
2899 on or used aboard any orbital space facility, space propulsion
2900 system, or space vehicle, satellite, or station of any kind,
2901 irrespective of whether such tangible personal property is
2902 returned to this state for subsequent use, storage, or
2903 consumption in any manner. This exemption is not affected by the
2904 failure of a launch to occur, or the destruction of a launch
2905 vehicle or any components thereof.
2906 (b) This subsection shall be strictly construed and
2907 enforced.
2908 (17) EXEMPTIONS; CERTAIN GOVERNMENT CONTRACTORS.—
2909 (a) Subject to paragraph (d), the tax imposed by this
2910 chapter does not apply to the sale to or use by a government
2911 contractor of overhead materials. The term “government
2912 contractor” includes prime contractors and subcontractors.
2913 (b) As used in this subsection, the term “overhead
2914 materials” means all tangible personal property, other than
2915 qualifying property as defined in s. 212.02(14)(a) and
2916 electricity, which is used or consumed in the performance of a
2917 qualifying contract, title to which property vests in or passes
2918 to the government under the contract.
2919 (c) As used in this subsection and in s. 212.02(14)(a), the
2920 term “qualifying contract” means a contract with the United
2921 States Department of Defense or the National Aeronautics and
2922 Space Administration, or a subcontract thereunder, but does not
2923 include a contract or subcontract for the repair, alteration,
2924 improvement, or construction of real property, except to the
2925 extent that purchases under such a contract would otherwise be
2926 exempt from the tax imposed by this chapter.
2927 (d) The exemption provided in this subsection applies as
2928 follows:
2929 1. Beginning July 1, 2000, the tax imposed by this chapter
2930 shall be applicable to 60 percent of the sales price or cost
2931 price of such overhead materials.
2932 2. Beginning July 1, 2001, the tax imposed by this chapter
2933 shall be applicable to 40 percent of the sales price or cost
2934 price of such overhead materials.
2935 3. Beginning July 1, 2002, the tax imposed by this chapter
2936 shall be applicable to 20 percent of the sales price or cost
2937 price of such overhead materials.
2938 4. Beginning July 1, 2003, the entire sales price or cost
2939 price of such overhead materials is exempt from the tax imposed
2940 by this chapter.
2941
2942 The exemption provided in this subsection does not apply to any
2943 part of the cost of overhead materials allocated to a contract
2944 that is not a qualifying contract.
2945 (e) Possession by a seller of a resale certificate or
2946 direct-pay permit relieves the seller from the responsibility of
2947 collecting the tax, and the department shall look solely to the
2948 contractor for recovery of such tax if it determines that the
2949 contractor was not entitled to the exemption. The contractor
2950 shall self-accrue and remit any applicable sales or use tax due
2951 with respect to overhead materials and with respect to costs
2952 allocable to contracts that are not qualifying contracts. The
2953 department may amend its rules to reflect the use of resale
2954 certificates and direct-pay permits with respect to the
2955 exemption provided for in this subsection.
2956 (f) This subsection is not an expression of legislative
2957 intent as to the applicability of any tax to any sale or use of
2958 overhead materials prior to July 1, 1999. In addition, this
2959 subsection does not imply that transactions or costs that are
2960 not described in this subsection are taxable.
2961 (18) MACHINERY AND EQUIPMENT USED PREDOMINANTLY FOR
2962 RESEARCH AND DEVELOPMENT.—
2963 (a) Machinery and equipment used predominantly for research
2964 and development as defined in this subsection are exempt from
2965 the tax imposed by this chapter.
2966 (b) For purposes of this subsection:
2967 1. “Machinery and equipment” includes, but is not limited
2968 to, molds, dies, machine tooling, other appurtenances or
2969 accessories to machinery and equipment, testing and measuring
2970 equipment, test beds, computers, and software, whether purchased
2971 or self-fabricated, and, if self-fabricated, includes materials
2972 and labor for design, fabrication, and assembly.
2973 2. “Predominantly” means at least 50 percent of the time.
2974 3. “Research and development” means research that has one
2975 of the following as its ultimate goal:
2976 a. Basic research in a scientific field of endeavor;
2977 b. Advancing knowledge or technology in a scientific or
2978 technical field of endeavor;
2979 c. The development of a new product, whether or not the new
2980 product is offered for sale;
2981 d. The improvement of an existing product, whether or not
2982 the improved product is offered for sale;
2983 e. The development of new uses of an existing product,
2984 whether or not a new use is offered as a rationale to purchase
2985 the product; or
2986 f. The design and development of prototypes, whether or not
2987 a resulting product is offered for sale.
2988
2989 The term “research and development” does not include ordinary
2990 testing or inspection of materials or products used for quality
2991 control, market research, efficiency surveys, consumer surveys,
2992 advertising and promotions, management studies, or research in
2993 connection with literary, historical, social science,
2994 psychological, or other similar nontechnical activities.
2995 (c) The department may adopt rules pursuant to ss.
2996 120.536(1) and 120.54 that provide for administering and
2997 implementing this exemption.
2998 (d) A person who claims the exemption provided in this
2999 subsection shall furnish the vendor of the machinery or
3000 equipment, including the vendor of materials and labor used in
3001 self-fabrication of the machinery or equipment, an affidavit
3002 stating that the item or items for which an exemption is claimed
3003 are machinery and equipment that will be used predominantly for
3004 research and development as required by this subsection. A
3005 purchaser who claims the exemption by refund shall include the
3006 affidavit with the refund application. The affidavit must
3007 contain the purchaser’s name, address, sales and use tax
3008 registration number, and, if applicable, federal employer’s
3009 identification number. Any person fraudulently furnishing an
3010 affidavit to the vendor for the purpose of evading payment of
3011 any tax imposed under this chapter shall be subject to the
3012 penalty set forth in s. 212.085 and as otherwise provided by
3013 law.
3014 (e) In lieu of furnishing an affidavit, a purchaser
3015 claiming the exemption provided in this subsection who has a
3016 direct-pay permit may furnish the vendor with a copy of the
3017 direct-pay permit and shall maintain all documentation necessary
3018 to prove the exempt status of the purchases and fabrication
3019 activity.
3020 (f) Purchasers shall maintain all documentation necessary
3021 to prove the exempt status of purchases and fabrication activity
3022 and make such documentation available for inspection pursuant to
3023 the requirements of s. 212.13(2).
3024 Section 4. (1) Effective July 1, 2012, ss. 212.051,
3025 212.052, 212.0598, 212.0602, 212.0801, 212.0821, 212.09,
3026 212.096, 212.097, and 212.098, Florida Statutes, are repealed.
3027 (2) Unless modified or reenacted as provided in s. 11.9035,
3028 Florida Statutes, effective July 1, 2012, any exemption,
3029 deduction, or credit from the state sales and use tax or any
3030 exclusion of sales and services from such tax granted by:
3031 (a) Section 212.02, Florida Statutes, except rent on low
3032 income housing under s. 212.02(2), Florida Statutes;
3033 (b) Section 212.03, Florida Statutes, except rent charges
3034 paid by long-term residents under s. 212.03(4), Florida
3035 Statutes; rent charges paid by full-time students, by active
3036 military personnel, and by permanent residents under s.
3037 212.03(7)(a); Florida Statutes; rent charges in mobile home
3038 parks under s. 212.03(7)(c), Florida Statutes; and rent charges
3039 for living accommodations in migrant labor camps under s.
3040 212.03(7)(d), Florida Statutes;
3041 (c) Section 212.031, Florida Statutes, except utility
3042 charges under s. 212.031(7), Florida Statutes;
3043 (d) Sections 212.04, 212.05, and 212.0506, Florida
3044 Statutes;
3045 (e) Sections 212.06 and 212.081, Florida Statutes, except
3046 any sale exempted by federal law or the United States
3047 Constitution; and
3048 (f) Sections 212.0601, 212.07, 212.12, 212.20, and 376.75,
3049 Florida Statutes, are repealed.
3050 Section 5. Except as otherwise expressly provided in this
3051 act, this act shall take effect July 1, 2009.