HB 863

1
A bill to be entitled
2An act relating to the tax on property rental fees and the
3tax on admissions; amending s. 212.031, F.S.; abrogating
4the repeal of the tax exemption on rental or license fees
5provided for certain property rented, leased, or licensed
6by a convention or exhibition hall, auditorium, stadium,
7theater, arena, civic center, performing arts center, or
8publicly owned recreational facility; amending s. 2, ch.
92006-101, Laws of Florida; abrogating the repeal of the
10tax exemption provided for certain charges imposed by a
11convention or exhibition hall, auditorium, stadium,
12theater, arena, civic center, performing arts center, or
13publicly owned recreational facility upon a lessee or
14licensee; amending s. 212.04, F.S.; abrogating the repeal
15of the tax exemption for admission charges to events
16sponsored by governmental entities, sports authorities,
17and sports commissions; providing an effective date.
18
19Be It Enacted by the Legislature of the State of Florida:
20
21     Section 1.  Paragraph (a) of subsection (1) of section
22212.031, Florida Statutes, is amended to read:
23     212.031  Tax on rental or license fee for use of real
24property.--
25     (1)(a)  It is declared to be the legislative intent that
26every person is exercising a taxable privilege who engages in
27the business of renting, leasing, letting, or granting a license
28for the use of any real property unless such property is:
29     1.  Assessed as agricultural property under s. 193.461.
30     2.  Used exclusively as dwelling units.
31     3.  Property subject to tax on parking, docking, or storage
32spaces under s. 212.03(6).
33     4.  Recreational property or the common elements of a
34condominium when subject to a lease between the developer or
35owner thereof and the condominium association in its own right
36or as agent for the owners of individual condominium units or
37the owners of individual condominium units. However, only the
38lease payments on such property shall be exempt from the tax
39imposed by this chapter, and any other use made by the owner or
40the condominium association shall be fully taxable under this
41chapter.
42     5.  A public or private street or right-of-way and poles,
43conduits, fixtures, and similar improvements located on such
44streets or rights-of-way, occupied or used by a utility or
45provider of communications services, as defined by s. 202.11,
46for utility or communications or television purposes. For
47purposes of this subparagraph, the term "utility" means any
48person providing utility services as defined in s. 203.012. This
49exception also applies to property, wherever located, on which
50the following are placed: towers, antennas, cables, accessory
51structures, or equipment, not including switching equipment,
52used in the provision of mobile communications services as
53defined in s. 202.11. For purposes of this chapter, towers used
54in the provision of mobile communications services, as defined
55in s. 202.11, are considered to be fixtures.
56     6.  A public street or road which is used for
57transportation purposes.
58     7.  Property used at an airport exclusively for the purpose
59of aircraft landing or aircraft taxiing or property used by an
60airline for the purpose of loading or unloading passengers or
61property onto or from aircraft or for fueling aircraft.
62     8.a.  Property used at a port authority, as defined in s.
63315.02(2), exclusively for the purpose of oceangoing vessels or
64tugs docking, or such vessels mooring on property used by a port
65authority for the purpose of loading or unloading passengers or
66cargo onto or from such a vessel, or property used at a port
67authority for fueling such vessels, or to the extent that the
68amount paid for the use of any property at the port is based on
69the charge for the amount of tonnage actually imported or
70exported through the port by a tenant.
71     b.  The amount charged for the use of any property at the
72port in excess of the amount charged for tonnage actually
73imported or exported shall remain subject to tax except as
74provided in sub-subparagraph a.
75     9.  Property used as an integral part of the performance of
76qualified production services. As used in this subparagraph, the
77term "qualified production services" means any activity or
78service performed directly in connection with the production of
79a qualified motion picture, as defined in s. 212.06(1)(b), and
80includes:
81     a.  Photography, sound and recording, casting, location
82managing and scouting, shooting, creation of special and optical
83effects, animation, adaptation (language, media, electronic, or
84otherwise), technological modifications, computer graphics, set
85and stage support (such as electricians, lighting designers and
86operators, greensmen, prop managers and assistants, and grips),
87wardrobe (design, preparation, and management), hair and makeup
88(design, production, and application), performing (such as
89acting, dancing, and playing), designing and executing stunts,
90coaching, consulting, writing, scoring, composing,
91choreographing, script supervising, directing, producing,
92transmitting dailies, dubbing, mixing, editing, cutting,
93looping, printing, processing, duplicating, storing, and
94distributing;
95     b.  The design, planning, engineering, construction,
96alteration, repair, and maintenance of real or personal property
97including stages, sets, props, models, paintings, and facilities
98principally required for the performance of those services
99listed in sub-subparagraph a.; and
100     c.  Property management services directly related to
101property used in connection with the services described in sub-
102subparagraphs a. and b.
103
104This exemption will inure to the taxpayer upon presentation of
105the certificate of exemption issued to the taxpayer under the
106provisions of s. 288.1258.
107     10.  Leased, subleased, licensed, or rented to a person
108providing food and drink concessionaire services within the
109premises of a convention hall, exhibition hall, auditorium,
110stadium, theater, arena, civic center, performing arts center,
111publicly owned recreational facility, or any business operated
112under a permit issued pursuant to chapter 550. A person
113providing retail concessionaire services involving the sale of
114food and drink or other tangible personal property within the
115premises of an airport shall be subject to tax on the rental of
116real property used for that purpose, but shall not be subject to
117the tax on any license to use the property. For purposes of this
118subparagraph, the term "sale" shall not include the leasing of
119tangible personal property.
120     11.  Property occupied pursuant to an instrument calling
121for payments which the department has declared, in a Technical
122Assistance Advisement issued on or before March 15, 1993, to be
123nontaxable pursuant to rule 12A-1.070(19)(c), Florida
124Administrative Code; provided that this subparagraph shall only
125apply to property occupied by the same person before and after
126the execution of the subject instrument and only to those
127payments made pursuant to such instrument, exclusive of renewals
128and extensions thereof occurring after March 15, 1993.
129     12.  Rented, leased, subleased, or licensed to a
130concessionaire by a convention hall, exhibition hall,
131auditorium, stadium, theater, arena, civic center, performing
132arts center, or publicly owned recreational facility, during an
133event at the facility, to be used by the concessionaire to sell
134souvenirs, novelties, or other event-related products. This
135subparagraph applies only to that portion of the rental, lease,
136or license payment which is based on a percentage of sales and
137not based on a fixed price. This subparagraph is repealed July
1381, 2009.
139     13.  Property used or occupied predominantly for space
140flight business purposes. As used in this subparagraph, "space
141flight business" means the manufacturing, processing, or
142assembly of a space facility, space propulsion system, space
143vehicle, satellite, or station of any kind possessing the
144capacity for space flight, as defined by s. 212.02(23), or
145components thereof, and also means the following activities
146supporting space flight: vehicle launch activities, flight
147operations, ground control or ground support, and all
148administrative activities directly related thereto. Property
149shall be deemed to be used or occupied predominantly for space
150flight business purposes if more than 50 percent of the
151property, or improvements thereon, is used for one or more space
152flight business purposes. Possession by a landlord, lessor, or
153licensor of a signed written statement from the tenant, lessee,
154or licensee claiming the exemption shall relieve the landlord,
155lessor, or licensor from the responsibility of collecting the
156tax, and the department shall look solely to the tenant, lessee,
157or licensee for recovery of such tax if it determines that the
158exemption was not applicable.
159     Section 2.  Section 2 of chapter 2006-101, Laws of Florida,
160is amended to read:
161     Section 2.  Notwithstanding the provisions of section 3 of
162chapter 2000-345, Laws of Florida, as amended by section 55 of
163chapter 2002-218, Laws of Florida, subsection (10) of s.
164212.031, Florida Statutes, shall not stand repealed on July 1,
1652006, as scheduled by such laws, but that subsection is revived
166and readopted. Subsection (10) of s. 212.031, Florida Statutes,
167is repealed July 1, 2009.
168     Section 3.  Paragraph (a) of subsection (2) of section
169212.04, Florida Statutes, is amended to read:
170     212.04  Admissions tax; rate, procedure, enforcement.--
171     (2)(a)1.  No tax shall be levied on admissions to athletic
172or other events sponsored by elementary schools, junior high
173schools, middle schools, high schools, community colleges,
174public or private colleges and universities, deaf and blind
175schools, facilities of the youth services programs of the
176Department of Children and Family Services, and state
177correctional institutions when only student, faculty, or inmate
178talent is used. However, this exemption shall not apply to
179admission to athletic events sponsored by a state university,
180and the proceeds of the tax collected on such admissions shall
181be retained and used by each institution to support women's
182athletics as provided in s. 1006.71(2)(c).
183     2.a.  No tax shall be levied on dues, membership fees, and
184admission charges imposed by not-for-profit sponsoring
185organizations. To receive this exemption, the sponsoring
186organization must qualify as a not-for-profit entity under the
187provisions of s. 501(c)(3) of the Internal Revenue Code of 1954,
188as amended.
189     b.  No tax shall be levied on admission charges to an event
190sponsored by a governmental entity, sports authority, or sports
191commission when held in a convention hall, exhibition hall,
192auditorium, stadium, theater, arena, civic center, performing
193arts center, or publicly owned recreational facility and when
194100 percent of the risk of success or failure lies with the
195sponsor of the event and 100 percent of the funds at risk for
196the event belong to the sponsor, and student or faculty talent
197is not exclusively used. As used in this sub-subparagraph, the
198terms "sports authority" and "sports commission" mean a
199nonprofit organization that is exempt from federal income tax
200under s. 501(c)(3) of the Internal Revenue Code and that
201contracts with a county or municipal government for the purpose
202of promoting and attracting sports-tourism events to the
203community with which it contracts. This sub-subparagraph is
204repealed July 1, 2009.
205     3.  No tax shall be levied on an admission paid by a
206student, or on the student's behalf, to any required place of
207sport or recreation if the student's participation in the sport
208or recreational activity is required as a part of a program or
209activity sponsored by, and under the jurisdiction of, the
210student's educational institution, provided his or her
211attendance is as a participant and not as a spectator.
212     4.  No tax shall be levied on admissions to the National
213Football League championship game, on admissions to any
214semifinal game or championship game of a national collegiate
215tournament, or on admissions to a Major League Baseball all-star
216game.
217     5.  A participation fee or sponsorship fee imposed by a
218governmental entity as described in s. 212.08(6) for an athletic
219or recreational program is exempt when the governmental entity
220by itself, or in conjunction with an organization exempt under
221s. 501(c)(3) of the Internal Revenue Code of 1954, as amended,
222sponsors, administers, plans, supervises, directs, and controls
223the athletic or recreational program.
224     6.  Also exempt from the tax imposed by this section to the
225extent provided in this subparagraph are admissions to live
226theater, live opera, or live ballet productions in this state
227which are sponsored by an organization that has received a
228determination from the Internal Revenue Service that the
229organization is exempt from federal income tax under s.
230501(c)(3) of the Internal Revenue Code of 1954, as amended, if
231the organization actively participates in planning and
232conducting the event, is responsible for the safety and success
233of the event, is organized for the purpose of sponsoring live
234theater, live opera, or live ballet productions in this state,
235has more than 10,000 subscribing members and has among the
236stated purposes in its charter the promotion of arts education
237in the communities which it serves, and will receive at least 20
238percent of the net profits, if any, of the events which the
239organization sponsors and will bear the risk of at least 20
240percent of the losses, if any, from the events which it sponsors
241if the organization employs other persons as agents to provide
242services in connection with a sponsored event. Prior to March 1
243of each year, such organization may apply to the department for
244a certificate of exemption for admissions to such events
245sponsored in this state by the organization during the
246immediately following state fiscal year. The application shall
247state the total dollar amount of admissions receipts collected
248by the organization or its agents from such events in this state
249sponsored by the organization or its agents in the year
250immediately preceding the year in which the organization applies
251for the exemption. Such organization shall receive the exemption
252only to the extent of $1.5 million multiplied by the ratio that
253such receipts bear to the total of such receipts of all
254organizations applying for the exemption in such year; however,
255in no event shall such exemption granted to any organization
256exceed 6 percent of such admissions receipts collected by the
257organization or its agents in the year immediately preceding the
258year in which the organization applies for the exemption. Each
259organization receiving the exemption shall report each month to
260the department the total admissions receipts collected from such
261events sponsored by the organization during the preceding month
262and shall remit to the department an amount equal to 6 percent
263of such receipts reduced by any amount remaining under the
264exemption. Tickets for such events sold by such organizations
265shall not reflect the tax otherwise imposed under this section.
266     7.  Also exempt from the tax imposed by this section are
267entry fees for participation in freshwater fishing tournaments.
268     8.  Also exempt from the tax imposed by this section are
269participation or entry fees charged to participants in a game,
270race, or other sport or recreational event if spectators are
271charged a taxable admission to such event.
272     9.  No tax shall be levied on admissions to any postseason
273collegiate football game sanctioned by the National Collegiate
274Athletic Association.
275     Section 4.  This act shall take effect upon becoming a law.


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