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

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