HB 173

1	A bill to be entitled
2	An act relating to the tax on sales, use, and other
3	transactions; amending s. 212.05, F.S.; providing an
4	alternative rate of taxation on sales of aircraft;
5	deleting a requirement that a certain penalty is mandatory
6	and not able to be waived by the Department of Revenue;
7	deleting authorization to return certain aircraft to the
8	state for repairs without liability for taxes and penalty
9	under certain circumstances; amending s. 212.08, F.S.;
10	exempting from the use tax aircraft owned by nonresidents
11	and entering and remaining in the state for certain
12	purposes under certain circumstances; providing an
13	effective date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1.  Paragraph (a) of subsection (1) of section
18	212.05, Florida Statutes, is amended to read:
19	212.05  Sales, storage, use tax.--It is hereby declared to
20	be the legislative intent that every person is exercising a
21	taxable privilege who engages in the business of selling
22	tangible personal property at retail in this state, including
23	the business of making mail order sales, or who rents or
24	furnishes any of the things or services taxable under this
25	chapter, or who stores for use or consumption in this state any
26	item or article of tangible personal property as defined herein
27	and who leases or rents such property within the state.
28	(1)  For the exercise of such privilege, a tax is levied on
29	each taxable transaction or incident, which tax is due and
30	payable as follows:
31	(a)1.a.  At the rate of 6 percent of the sales price of
32	each item or article of tangible personal property when sold at
33	retail in this state, computed on each taxable sale for the
34	purpose of remitting the amount of tax due the state, and
35	including each and every retail sale, except that the tax rate
36	on sales of aircraft shall be at the rate of 3 percent of the
37	sales price of the aircraft.
38	b.  Each occasional or isolated sale of an aircraft, boat,
39	mobile home, or motor vehicle of a class or type which is
40	required to be registered, licensed, titled, or documented in
41	this state or by the United States Government shall be subject
42	to tax at the rate provided in this paragraph. The department
43	shall by rule adopt any nationally recognized publication for
44	valuation of used motor vehicles as the reference price list for
45	any used motor vehicle which is required to be licensed pursuant
46	to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
47	party to an occasional or isolated sale of such a vehicle
48	reports to the tax collector a sales price which is less than 80
49	percent of the average loan price for the specified model and
50	year of such vehicle as listed in the most recent reference
51	price list, the tax levied under this paragraph shall be
52	computed by the department on such average loan price unless the
53	parties to the sale have provided to the tax collector an
54	affidavit signed by each party, or other substantial proof,
55	stating the actual sales price. Any party to such sale who
56	reports a sales price less than the actual sales price is guilty
57	of a misdemeanor of the first degree, punishable as provided in
58	s. 775.082 or s. 775.083. The department shall collect or
59	attempt to collect from such party any delinquent sales taxes.
60	In addition, such party shall pay any tax due and any penalty
61	and interest assessed plus a penalty equal to twice the amount
62	of the additional tax owed. Notwithstanding any other provision
63	of law, the Department of Revenue may waive or compromise any
64	penalty imposed pursuant to this subparagraph.
65	2.  This paragraph does not apply to the sale of a boat or
66	aircraft by or through a registered dealer under this chapter to
67	a purchaser who, at the time of taking delivery, is a
68	nonresident of this state, does not make his or her permanent
69	place of abode in this state, and is not engaged in carrying on
70	in this state any employment, trade, business, or profession in
71	which the boat or aircraft will be used in this state, or is a
72	corporation none of the officers or directors of which is a
73	resident of, or makes his or her permanent place of abode in,
74	this state, or is a noncorporate entity that has no individual
75	vested with authority to participate in the management,
76	direction, or control of the entity's affairs who is a resident
77	of, or makes his or her permanent abode in, this state. For
78	purposes of this exemption, either a registered dealer acting on
79	his or her own behalf as seller, a registered dealer acting as
80	broker on behalf of a seller, or a registered dealer acting as
81	broker on behalf of the purchaser may be deemed to be the
82	selling dealer. This exemption shall not be allowed unless:
83	a.  The purchaser removes a qualifying boat, as described
84	in sub-subparagraph f., from the state within 90 days after the
85	date of purchase or extension, or the purchaser removes a
86	nonqualifying boat or an aircraft from this state within 10 days
87	after the date of purchase or, when the boat or aircraft is
88	repaired or altered, within 20 days after completion of the
89	repairs or alterations;
90	b.  The purchaser, within 30 days from the date of
91	departure, shall provide the department with written proof that
92	the purchaser licensed, registered, titled, or documented the
93	boat or aircraft outside the state. If such written proof is
94	unavailable, within 30 days the purchaser shall provide proof
95	that the purchaser applied for such license, title,
96	registration, or documentation. The purchaser shall forward to
97	the department proof of title, license, registration, or
98	documentation upon receipt;
99	c.  The purchaser, within 10 days of removing the boat or
100	aircraft from Florida, shall furnish the department with proof
101	of removal in the form of receipts for fuel, dockage, slippage,
102	tie-down, or hangaring from outside of Florida. The information
103	so provided must clearly and specifically identify the boat or
104	aircraft;
105	d.  The selling dealer, within 5 days of the date of sale,
106	shall provide to the department a copy of the sales invoice,
107	closing statement, bills of sale, and the original affidavit
108	signed by the purchaser attesting that he or she has read the
109	provisions of this section;
110	e.  The seller makes a copy of the affidavit a part of his
111	or her record for as long as required by s. 213.35; and
112	f.  Unless the nonresident purchaser of a boat of 5 net
113	tons of admeasurement or larger intends to remove the boat from
114	this state within 10 days after the date of purchase or when the
115	boat is repaired or altered, within 20 days after completion of
116	the repairs or alterations, the nonresident purchaser shall
117	apply to the selling dealer for a decal which authorizes 90 days
118	after the date of purchase for removal of the boat. The
119	nonresident purchaser of a qualifying boat may apply to the
120	selling dealer within 60 days after the date of purchase for an
121	extension decal that authorizes the boat to remain in this state
122	for an additional 90 days, but not more than a total of 180
123	days, before the nonresident purchaser is required to pay the
124	tax imposed by this chapter. The department is authorized to
125	issue decals in advance to dealers. The number of decals issued
126	in advance to a dealer shall be consistent with the volume of
127	the dealer's past sales of boats which qualify under this sub-
128	subparagraph. The selling dealer or his or her agent shall mark
129	and affix the decals to qualifying boats in the manner
130	prescribed by the department, prior to delivery of the boat.
131	(I)  The department is hereby authorized to charge dealers
132	a fee sufficient to recover the costs of decals issued, except
133	the extension decal shall cost $425.
134	(II)  The proceeds from the sale of decals will be
135	deposited into the administrative trust fund.
136	(III)  Decals shall display information to identify the
137	boat as a qualifying boat under this sub-subparagraph,
138	including, but not limited to, the decal's date of expiration.
139	(IV)  The department is authorized to require dealers who
140	purchase decals to file reports with the department and may
141	prescribe all necessary records by rule. All such records are
142	subject to inspection by the department.
143	(V)  Any dealer or his or her agent who issues a decal
144	falsely, fails to affix a decal, mismarks the expiration date of
145	a decal, or fails to properly account for decals will be
146	considered prima facie to have committed a fraudulent act to
147	evade the tax and will be liable for payment of the tax plus a
148	mandatory penalty of 200 percent of the tax, and shall be liable
149	for fine and punishment as provided by law for a conviction of a
150	misdemeanor of the first degree, as provided in s. 775.082 or s.
151	775.083.
152	(VI)  Any nonresident purchaser of a boat who removes a
153	decal prior to permanently removing the boat from the state, or
154	defaces, changes, modifies, or alters a decal in a manner
155	affecting its expiration date prior to its expiration, or who
156	causes or allows the same to be done by another, will be
157	considered prima facie to have committed a fraudulent act to
158	evade the tax and will be liable for payment of the tax plus a
159	mandatory penalty of 200 percent of the tax, and shall be liable
160	for fine and punishment as provided by law for a conviction of a
161	misdemeanor of the first degree, as provided in s. 775.082 or s.
162	775.083.
163	(VII)  The department is authorized to adopt rules
164	necessary to administer and enforce this subparagraph and to
165	publish the necessary forms and instructions.
166	(VIII)  The department is hereby authorized to adopt
167	emergency rules pursuant to s. 120.54(4) to administer and
168	enforce the provisions of this subparagraph.
169
170	If the purchaser fails to remove the qualifying boat from this
171	state within the maximum 180 days after purchase or a
172	nonqualifying boat or an aircraft from this state within 10 days
173	after purchase or, when the boat or aircraft is repaired or
174	altered, within 20 days after completion of such repairs or
175	alterations, or permits the boat or aircraft to return to this
176	state within 6 months from the date of departure, except as
177	provided in s. 212.08(7)(ggg), or if the purchaser fails to
178	furnish the department with any of the documentation required by
179	this subparagraph within the prescribed time period, the
180	purchaser shall be liable for use tax on the cost price of the
181	boat or aircraft and, in addition thereto, payment of a penalty
182	to the Department of Revenue equal to the tax payable. This
183	penalty shall be in lieu of the penalty imposed by s. 212.12(2)
184	and is mandatory and shall not be waived by the department. The
185	maximum 180-day period following the sale of a qualifying boat
186	tax-exempt to a nonresident may not be tolled for any reason.
187	Notwithstanding other provisions of this paragraph to the
188	contrary, an aircraft purchased in this state under the
189	provisions of this paragraph may be returned to this state for
190	repairs within 6 months after the date of its departure without
191	being in violation of the law and without incurring liability
192	for the payment of tax or penalty on the purchase price of the
193	aircraft if the aircraft is removed from this state within 20
194	days after the completion of the repairs and if such removal can
195	be demonstrated by invoices for fuel, tie-down, hangar charges
196	issued by out-of-state vendors or suppliers, or similar
197	documentation.
198	Section 2.  Paragraph (ggg) is added to subsection (7) of
199	section 212.08, Florida Statutes, to read:
200	212.08  Sales, rental, use, consumption, distribution, and
201	storage tax; specified exemptions.--The sale at retail, the
202	rental, the use, the consumption, the distribution, and the
203	storage to be used or consumed in this state of the following
204	are hereby specifically exempt from the tax imposed by this
205	chapter.
206	(7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
207	entity by this chapter do not inure to any transaction that is
208	otherwise taxable under this chapter when payment is made by a
209	representative or employee of the entity by any means,
210	including, but not limited to, cash, check, or credit card, even
211	when that representative or employee is subsequently reimbursed
212	by the entity. In addition, exemptions provided to any entity by
213	this subsection do not inure to any transaction that is
214	otherwise taxable under this chapter unless the entity has
215	obtained a sales tax exemption certificate from the department
216	or the entity obtains or provides other documentation as
217	required by the department. Eligible purchases or leases made
218	with such a certificate must be in strict compliance with this
219	subsection and departmental rules, and any person who makes an
220	exempt purchase with a certificate that is not in strict
221	compliance with this subsection and the rules is liable for and
222	shall pay the tax. The department may adopt rules to administer
223	this subsection.
224	(ggg)  Aircraft temporarily in the state.--
225	1.  An aircraft owned by a person who is not a resident of
226	this state is exempt from the use tax imposed under this chapter
227	if the aircraft enters and remains in this state for less than a
228	total of 21 days during the 6-month period after the date of
229	purchase. The temporary use of the aircraft and subsequent
230	removal from this state may be proven by invoices for fuel or
231	tie-down or hangar charges issued by out-of-state vendors or
232	suppliers or similar documentation that clearly and specifically
233	identifies the aircraft. The exemption provided by this
234	subparagraph shall be in addition to the provisions of
235	subparagraph 2. and s. 212.05(1)(a).
236	2.  An aircraft owned by a person who is not a resident of
237	this state is exempt from the use tax imposed under this chapter
238	if the aircraft enters or remains in this state exclusively for
239	purposes of flight training, repairs, alterations, refitting, or
240	modification. Such flight training, repairs, alterations,
241	refitting, or modification shall be supported by written
242	documentation issued by in-state vendors or suppliers which
243	clearly and specifically identifies the aircraft. The exemption
244	provided by this subparagraph shall be in addition to the
245	provisions of subparagraph 1. and s. 212.05(1)(a).
246	Section 3.  This act shall take effect July 1, 2010.

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