Florida Senate - 2010 CS for SB 1070 By the Committee on Community Affairs; and Senator Altman 578-04909-10 20101070c1 1 A bill to be entitled 2 An act relating to sporting events; amending s. 3 125.0104, F.S.; authorizing a county to use certain 4 revenues from tourist development taxes to pay the 5 debt service on bonds issued to finance the 6 construction, reconstruction, or renovation of certain 7 football stadiums and to pay planning and design costs 8 incurred before the issuance of bonds; amending s. 9 212.04, F.S.; creating an exemption from the tax on 10 admissions for certain events sponsored by a 11 governmental entity, sports authority, or sports 12 commission; providing an effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Paragraphs (l) and (n) of subsection (3) of 17 section 125.0104, Florida Statutes, are amended to read: 18 125.0104 Tourist development tax; procedure for levying; 19 authorized uses; referendum; enforcement.— 20 (3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.— 21 (l) In addition to any other tax which is imposed pursuant 22 to this section, a county may impose up to an additional 1 23 percent tax on the exercise of the privilege described in 24 paragraph (a) by majority vote of the governing board of the 25 county in order to: 26 1. Pay the debt service on bonds issued to finance the 27 construction, reconstruction, or renovation of a professional 28 sports franchise facility, or the acquisition, construction, 29 reconstruction, or renovation of a retained spring training 30 franchise facility, either publicly owned and operated, or 31 publicly owned and operated by the owner of a professional 32 sports franchise or other lessee with sufficient expertise or 33 financial capability to operate such facility, and to pay the 34 planning and design costs incurred prior to the issuance of such 35 bonds. 36 2. Pay the debt service on bonds issued to finance the 37 construction, reconstruction, or renovation of a convention 38 center, and to pay the planning and design costs incurred prior 39 to the issuance of such bonds. 40 3. Pay the operation and maintenance costs of a convention 41 center for a period of up to 10 years. Only counties that have 42 elected to levy the tax for the purposes authorized in 43 subparagraph 2. may use the tax for the purposes enumerated in 44 this subparagraph. Any county that elects to levy the tax for 45 the purposes authorized in subparagraph 2. after July 1, 2000, 46 may use the proceeds of the tax to pay the operation and 47 maintenance costs of a convention center for the life of the 48 bonds. 49 4. Promote and advertise tourism in the State of Florida 50 and nationally and internationally; however, if tax revenues are 51 expended for an activity, service, venue, or event, the 52 activity, service, venue, or event shall have as one of its main 53 purposes the attraction of tourists as evidenced by the 54 promotion of the activity, service, venue, or event to tourists. 55 5. Pay the debt service on bonds issued to finance the 56 construction, reconstruction, or renovation of a county or 57 municipally owned or operated sports stadium having a capacity 58 of more than 65,000 seats which promotes tourism and attracts 59 tourists as one of its main purposes and annually hosts one or 60 more postseason collegiate football bowl games sanctioned by the 61 National Collegiate Athletic Association. The tax also may be 62 used to pay the planning and design costs incurred before the 63 issuance of the bonds. 64 65 The provision of paragraph (b) which prohibits any county 66 authorized to levy a convention development tax pursuant to s. 67 212.0305 from levying more than the 2-percent tax authorized by 68 this section, and the provisions of paragraphs (4)(a)-(d), shall 69 not apply to the additional tax authorized in this paragraph. 70 The effective date of the levy and imposition of the tax 71 authorized under this paragraph shall be the first day of the 72 second month following approval of the ordinance by the 73 governing board or the first day of any subsequent month as may 74 be specified in the ordinance. A certified copy of such 75 ordinance shall be furnished by the county to the Department of 76 Revenue within 10 days after approval of such ordinance. 77 (n) In addition to any other tax that is imposed under this 78 section, a county that has imposed the tax under paragraph (l) 79 may impose an additional tax that is no greater than 1 percent 80 on the exercise of the privilege described in paragraph (a) by a 81 majority plus one vote of the membership of the board of county 82 commissioners in order to: 83 1. Pay the debt service on bonds issued to finance: 84 a. The construction, reconstruction, or renovation of a 85 facility either publicly owned and operated, or publicly owned 86 and operated by the owner of a professional sports franchise or 87 other lessee with sufficient expertise or financial capability 88 to operate such facility, and to pay the planning and design 89 costs incurred prior to the issuance of such bonds for a new 90 professional sports franchise as defined in s. 288.1162. 91 b. The acquisition, construction, reconstruction, or 92 renovation of a facility either publicly owned and operated, or 93 publicly owned and operated by the owner of a professional 94 sports franchise or other lessee with sufficient expertise or 95 financial capability to operate such facility, and to pay the 96 planning and design costs incurred prior to the issuance of such 97 bonds for a retained spring training franchise. 98 c. The construction, reconstruction, or renovation of a 99 county or municipally owned or operated sports stadium having a 100 capacity of more than 65,000 seats which promotes tourism and 101 attracts tourists as one of its main purposes and annually hosts 102 one or more postseason collegiate football bowl games sanctioned 103 by the National Collegiate Athletic Association. The tax also 104 may be used to pay the planning and design costs incurred before 105 the issuance of the bonds. 106 2. Promote and advertise tourism in the State of Florida 107 and nationally and internationally; however, if tax revenues are 108 expended for an activity, service, venue, or event, the 109 activity, service, venue, or event shall have as one of its main 110 purposes the attraction of tourists as evidenced by the 111 promotion of the activity, service, venue, or event to tourists. 112 113 A county that imposes the tax authorized in this paragraph may 114 not expend any ad valorem tax revenues for the acquisition, 115 construction, reconstruction, or renovation of a facility for 116 which tax revenues are used pursuant to subparagraph 1. The 117 provision of paragraph (b) which prohibits any county authorized 118 to levy a convention development tax pursuant to s. 212.0305 119 from levying more than the 2-percent tax authorized by this 120 section shall not apply to the additional tax authorized by this 121 paragraph in counties which levy convention development taxes 122 pursuant to s. 212.0305(4)(a). Subsection (4) does not apply to 123 the adoption of the additional tax authorized in this paragraph. 124 The effective date of the levy and imposition of the tax 125 authorized under this paragraph is the first day of the second 126 month following approval of the ordinance by the board of county 127 commissioners or the first day of any subsequent month specified 128 in the ordinance. A certified copy of such ordinance shall be 129 furnished by the county to the Department of Revenue within 10 130 days after approval of the ordinance. 131 Section 2. Subsection (2) of section 212.04, Florida 132 Statutes, is amended to read: 133 212.04 Admissions tax; rate, procedure, enforcement.— 134 (2)(a)1. No tax shall be levied on admissions to athletic 135 or other events sponsored by elementary schools, junior high 136 schools, middle schools, high schools, community colleges, 137 public or private colleges and universities, deaf and blind 138 schools, facilities of the youth services programs of the 139 Department of Children and Family Services, and state 140 correctional institutions when only student, faculty, or inmate 141 talent is used. However, this exemption shall not apply to 142 admission to athletic events sponsored by a state university, 143 and the proceeds of the tax collected on such admissions shall 144 be retained and used by each institution to support women’s 145 athletics as provided in s. 1006.71(2)(c). 146 2.a. No tax shall be levied on dues, membership fees, and 147 admission charges imposed by not-for-profit sponsoring 148 organizations. To receive this exemption, the sponsoring 149 organization must qualify as a not-for-profit entity under the 150 provisions of s. 501(c)(3) of the Internal Revenue Code of 1954, 151 as amended. 152 b. A tax may not be levied on admission charges to an event 153 sponsored by a governmental entity, sports authority, or sports 154 commission if the event is held in a convention hall, exhibition 155 hall, auditorium, stadium, theater, arena, civic center, 156 performing arts center, or publicly owned recreational facility 157 and all of the risk of success or failure lies with the sponsor 158 of the event and all of the funds at risk for the event belong 159 to the sponsor. As used in this sub-subparagraph, the terms 160 “sports authority” and “sports commission” mean a nonprofit 161 organization that is exempt from federal income tax under s. 162 501(c)(3) of the Internal Revenue Code and that contracts with a 163 county or municipal government for the purpose of promoting and 164 attracting sports-tourism events to the community with which it 165 contracts.No tax shall be levied on admission charges to an166event sponsored by a governmental entity, sports authority, or167sports commission when held in a convention hall, exhibition168hall, auditorium, stadium, theater, arena, civic center,169performing arts center, or publicly owned recreational facility170and when 100 percent of the risk of success or failure lies with171the sponsor of the event and 100 percent of the funds at risk172for the event belong to the sponsor, and student or faculty173talent is not exclusively used. As used in this sub174subparagraph, the terms “sports authority” and “sports175commission” mean a nonprofit organization that is exempt from176federal income tax under s. 501(c)(3) of the Internal Revenue177Code and that contracts with a county or municipal government178for the purpose of promoting and attracting sports-tourism179events to the community with which it contracts. This sub180subparagraph is repealed July 1, 2009.181 3. No tax shall be levied on an admission paid by a 182 student, or on the student’s behalf, to any required place of 183 sport or recreation if the student’s participation in the sport 184 or recreational activity is required as a part of a program or 185 activity sponsored by, and under the jurisdiction of, the 186 student’s educational institution, provided his or her 187 attendance is as a participant and not as a spectator. 188 4. No tax shall be levied on admissions to the National 189 Football League championship game, on admissions to any 190 semifinal game or championship game of a national collegiate 191 tournament, or on admissions to a Major League Baseball all-star 192 game. 193 5. A participation fee or sponsorship fee imposed by a 194 governmental entity as described in s. 212.08(6) for an athletic 195 or recreational program is exempt when the governmental entity 196 by itself, or in conjunction with an organization exempt under 197 s. 501(c)(3) of the Internal Revenue Code of 1954, as amended, 198 sponsors, administers, plans, supervises, directs, and controls 199 the athletic or recreational program. 200 6. Also exempt from the tax imposed by this section to the 201 extent provided in this subparagraph are admissions to live 202 theater, live opera, or live ballet productions in this state 203 which are sponsored by an organization that has received a 204 determination from the Internal Revenue Service that the 205 organization is exempt from federal income tax under s. 206 501(c)(3) of the Internal Revenue Code of 1954, as amended, if 207 the organization actively participates in planning and 208 conducting the event, is responsible for the safety and success 209 of the event, is organized for the purpose of sponsoring live 210 theater, live opera, or live ballet productions in this state, 211 has more than 10,000 subscribing members and has among the 212 stated purposes in its charter the promotion of arts education 213 in the communities which it serves, and will receive at least 20 214 percent of the net profits, if any, of the events which the 215 organization sponsors and will bear the risk of at least 20 216 percent of the losses, if any, from the events which it sponsors 217 if the organization employs other persons as agents to provide 218 services in connection with a sponsored event. Prior to March 1 219 of each year, such organization may apply to the department for 220 a certificate of exemption for admissions to such events 221 sponsored in this state by the organization during the 222 immediately following state fiscal year. The application shall 223 state the total dollar amount of admissions receipts collected 224 by the organization or its agents from such events in this state 225 sponsored by the organization or its agents in the year 226 immediately preceding the year in which the organization applies 227 for the exemption. Such organization shall receive the exemption 228 only to the extent of $1.5 million multiplied by the ratio that 229 such receipts bear to the total of such receipts of all 230 organizations applying for the exemption in such year; however, 231 in no event shall such exemption granted to any organization 232 exceed 6 percent of such admissions receipts collected by the 233 organization or its agents in the year immediately preceding the 234 year in which the organization applies for the exemption. Each 235 organization receiving the exemption shall report each month to 236 the department the total admissions receipts collected from such 237 events sponsored by the organization during the preceding month 238 and shall remit to the department an amount equal to 6 percent 239 of such receipts reduced by any amount remaining under the 240 exemption. Tickets for such events sold by such organizations 241 shall not reflect the tax otherwise imposed under this section. 242 7. Also exempt from the tax imposed by this section are 243 entry fees for participation in freshwater fishing tournaments. 244 8. Also exempt from the tax imposed by this section are 245 participation or entry fees charged to participants in a game, 246 race, or other sport or recreational event if spectators are 247 charged a taxable admission to such event. 248 9. No tax shall be levied on admissions to any postseason 249 collegiate football game sanctioned by the National Collegiate 250 Athletic Association. 251 (b) No municipality of the state shall levy an excise tax 252 on admissions. 253 (c) The taxes imposed by this section shall be collected in 254 addition to the admission tax collected pursuant to s. 550.0951, 255 but the amount collected under s. 550.0951 shall not be subject 256 to taxation under this chapter. 257 Section 3. This act shall take effect July 1, 2010.