| 1 | A bill to be entitled |
| 2 | An act relating to biodiesel fuel; amending s. 206.874, |
| 3 | F.S.; exempting biodiesel fuel manufactured by a public or |
| 4 | private secondary school from taxation under certain |
| 5 | circumstances; specifying the circumstances under which a |
| 6 | public or private secondary school that manufactures |
| 7 | biodiesel fuel is exempt from certain registration |
| 8 | requirements; providing an effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 12 | Section 1. Section 206.874, Florida Statutes, is amended |
| 13 | to read: |
| 14 | 206.874 Exemptions.- |
| 15 | (1) The provisions of this part requiring the payment of |
| 16 | taxes do not apply to any of the following: |
| 17 | (a) The removal from a terminal or refinery of, or the |
| 18 | entry or sale of, any diesel fuel if all of the following apply: |
| 19 | 1. The person otherwise liable for tax is a diesel fuel |
| 20 | registrant; |
| 21 | 2. In the case of a removal from a terminal, the terminal |
| 22 | is an approved terminal; and |
| 23 | 3. The diesel fuel satisfies the dyeing and marking |
| 24 | requirements of s. 206.8741. |
| 25 | (b) Any entry by a licensed importer into this state of |
| 26 | diesel fuel on which taxes have been imposed by this chapter on |
| 27 | a diesel fuel registrant pursuant to an agreement entered into |
| 28 | with the department as provided by s. 206.872. |
| 29 | (c) The removal of diesel fuel if all of the following |
| 30 | apply: |
| 31 | 1. The diesel fuel is removed by rail car from an approved |
| 32 | refinery or terminal and is received at an approved refinery or |
| 33 | terminal; and |
| 34 | 2. The refinery and the terminal are operated by the same |
| 35 | diesel fuel registrant. |
| 36 | (d) Diesel fuel which, pursuant to the contract of sale, |
| 37 | is required to be shipped and is shipped to a point outside of |
| 38 | this state by a supplier by means of any of the following: |
| 39 | 1. Facilities operated by the supplier. |
| 40 | 2. Delivery by the supplier to a carrier, customs broker, |
| 41 | or forwarding agent, whether hired by the purchaser or not, for |
| 42 | shipment to such out-of-state point. |
| 43 | 3. Delivery by the supplier to any vessel clearing from a |
| 44 | port of this state for a port outside of this state and actually |
| 45 | exported from this state in the vessel. |
| 46 | (e) Diesel fuel which is destined for delivery to a |
| 47 | location outside of this state on which the diesel fuel |
| 48 | registrant is required to collect the taxes of the destination |
| 49 | state pursuant to an agreement with the state of destination. |
| 50 | (2) Backup tax does not apply to delivery in this state of |
| 51 | diesel fuel into the fuel tank of a diesel-powered motor vehicle |
| 52 | as provided in s. 206.873 for use on a farm for farming |
| 53 | purposes. |
| 54 | (3) Dyed diesel fuel may be purchased and used only for |
| 55 | the following purposes: |
| 56 | (a) Use on a farm for farming purposes. |
| 57 | (b) Exclusive use of a local government. |
| 58 | (c) Use in a vehicle owned by an aircraft museum. |
| 59 | (d) Exclusive use of the American Red Cross. |
| 60 | (e) Use in a vessel employed in the business of commercial |
| 61 | transportation of persons or property or in commercial fishing. |
| 62 | (f) Use in a bus engaged in the transportation of students |
| 63 | and employees of schools. |
| 64 | (g) Use in a local bus service that is open to the public |
| 65 | and travels regular routes. |
| 66 | (h) Exclusive use of a nonprofit educational facility. |
| 67 | (i) Use in a motor vehicle owned by the United States |
| 68 | Government which that is not used on a highway. |
| 69 | (j) Use in a vessel of war. |
| 70 | (k) Use of diesel fuel for home heating. |
| 71 | (l) Use in self-propelled off-road equipment or stationary |
| 72 | equipment subject to tax under s. 212.0501. |
| 73 | (m) Use by a noncommercial vessel. |
| 74 | (4)(a) Notwithstanding the provisions of this section |
| 75 | allowing local governments and school districts to use dyed or |
| 76 | otherwise untaxed diesel fuel in motor vehicles, each county, |
| 77 | municipality, and school district, to qualify for such use, must |
| 78 | first register with the department as a local government user of |
| 79 | diesel fuel. |
| 80 | (b) Local government users of diesel fuel shall be |
| 81 | required to file a return accounting for diesel fuel |
| 82 | acquisitions, inventory, and use, and remit a tax equal to 3 |
| 83 | cents of the 4-cent tax required under s. 206.87(1)(a), plus the |
| 84 | taxes required under s. 206.87(1)(b), (c), and (d) each month to |
| 85 | the department. |
| 86 | (c) Any county, municipality, or school district not |
| 87 | licensed as a local government user of diesel fuel shall be |
| 88 | liable for the taxes imposed by s. 206.87(1) directly to the |
| 89 | department for any highway use of untaxed diesel fuels. |
| 90 | (d) Each county, municipality, or school district may |
| 91 | receive a credit for additional taxes paid under s. 206.87 for |
| 92 | the highway use of diesel fuel, provided the purchases of diesel |
| 93 | fuel meet the requirements relating to refunds for motor fuel |
| 94 | purchases under s. 206.41. |
| 95 | (5)(a) Notwithstanding the provisions of this section |
| 96 | allowing local bus transit systems to use dyed or otherwise |
| 97 | untaxed diesel fuel in qualifying motor vehicles providing local |
| 98 | public transportation over regular routes, each qualifying mass |
| 99 | transit provider, to qualify for such use, must first register |
| 100 | with the department as a mass transit system. |
| 101 | (b) Mass transit system providers shall be required to |
| 102 | file a return accounting for diesel fuel acquisitions, |
| 103 | inventory, and use, and remit a tax equal to the taxes required |
| 104 | under s. 206.87(1)(a) and (b) each month to the department. |
| 105 | (c) Any local provider not licensed as a mass transit |
| 106 | system shall be liable directly to the department for any |
| 107 | highway use of untaxed diesel fuels. |
| 108 | (d) Each licensed mass transit system may receive a credit |
| 109 | for additional taxes paid under s. 206.87 for the highway use of |
| 110 | diesel fuel, provided the purchases of diesel fuel meet the |
| 111 | requirements relating to refunds for motor fuel purchases under |
| 112 | s. 206.41. |
| 113 | (6) Diesel fuel contained in the fuel tanks of any motor |
| 114 | vehicle entering this state and used to propel such motor |
| 115 | vehicle into Florida from another state shall be exempt from the |
| 116 | taxes imposed by this part but may be taxed under the provisions |
| 117 | of chapter 207. Diesel fuel supplied by a vehicle manufacturer |
| 118 | and contained in the fuel tanks of a new and untitled motor |
| 119 | vehicle shall be exempt from the taxes imposed by this part. |
| 120 | "Fuel tanks" means the reservoir or receptacle attached to the |
| 121 | motor vehicle by the manufacturer as the container for fuel used |
| 122 | to propel the vehicle. |
| 123 | (7) Biodiesel fuel manufactured by a public or private |
| 124 | secondary school that produces less than 1,000 gallons annually |
| 125 | for the sole use of the school, its employees, or its students |
| 126 | is exempt from the tax imposed by this part. A public or private |
| 127 | secondary school that produces less than 1,000 gallons a year of |
| 128 | biodiesel is exempt from the registration requirements of this |
| 129 | chapter. |
| 130 | Section 2. This act shall take effect July 1, 2010. |