Florida Senate - 2012 CS for CS for SB 1108 By the Committees on Community Affairs; and Commerce and Tourism; and Senator Altman 578-03301-12 20121108c2 1 A bill to be entitled 2 An act relating to taxation; amending s. 196.199, 3 F.S.; providing an exemption from intangible tax for 4 lessees performing a governmental, municipal, or 5 public purpose or function; providing for retroactive 6 application; amending s. 212.08, F.S.; exempting 7 certain items used to manufacture, produce, or modify 8 aircraft engines and gas turbine engines and parts 9 from the tax on sales, use, and other transactions; 10 providing effective dates. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Effective upon this act becoming a law, and 15 applying retroactively to all leases of governmental property in 16 existence as of January 1, 2012, paragraph (a) of subsection (2) 17 of section 196.199, Florida Statutes, is amended to read: 18 196.199 Government property exemption.— 19 (2) Property owned by the following governmental units but 20 used by nongovernmental lessees shall only be exempt from 21 taxation under the following conditions: 22 (a) Leasehold interests in property of the United States, 23 of the state or any of its several political subdivisions, or of 24 municipalities, agencies, authorities, and other public bodies 25 corporate of the state shall be exempt from ad valorem taxation 26 and the intangible tax referenced in paragraph (b) only when the 27 lessee serves or performs a governmental, municipal, or public 28 purpose or function, as defined in s. 196.012(6). In all such 29 cases, all other interests in the leased property shall also be 30 exempt from ad valorem taxation. However, a leasehold interest 31 in property of the state may not be exempted from ad valorem 32 taxation when a nongovernmental lessee uses such property for 33 the operation of a multipurpose hazardous waste treatment 34 facility. 35 Section 2. Paragraph (hhh) is added to subsection (7) of 36 section 212.08, Florida Statutes, to read: 37 212.08 Sales, rental, use, consumption, distribution, and 38 storage tax; specified exemptions.—The sale at retail, the 39 rental, the use, the consumption, the distribution, and the 40 storage to be used or consumed in this state of the following 41 are hereby specifically exempt from the tax imposed by this 42 chapter. 43 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 44 entity by this chapter do not inure to any transaction that is 45 otherwise taxable under this chapter when payment is made by a 46 representative or employee of the entity by any means, 47 including, but not limited to, cash, check, or credit card, even 48 when that representative or employee is subsequently reimbursed 49 by the entity. In addition, exemptions provided to any entity by 50 this subsection do not inure to any transaction that is 51 otherwise taxable under this chapter unless the entity has 52 obtained a sales tax exemption certificate from the department 53 or the entity obtains or provides other documentation as 54 required by the department. Eligible purchases or leases made 55 with such a certificate must be in strict compliance with this 56 subsection and departmental rules, and any person who makes an 57 exempt purchase with a certificate that is not in strict 58 compliance with this subsection and the rules is liable for and 59 shall pay the tax. The department may adopt rules to administer 60 this subsection. 61 (hhh) Items used in manufacturing and fabricating aircraft 62 and gas turbine engines.—Chemicals, machinery, parts, and 63 equipment used and consumed in the manufacture or fabrication of 64 aircraft engines and gas turbine engines, including cores, 65 electrical discharge machining (EDM) supplies, brass electrodes, 66 ceramic guides, reamers, grinding and deburring wheels, Norton 67 vortex wheels, argon, nitrogen, helium, fluid abrasive cutters, 68 solvents and soaps, boroscopes, penetrants, patterns, dies, and 69 molds consumed in the production of castings are exempt from the 70 tax imposed by this chapter. 71 Section 3. Except as otherwise expressly provided in this 72 act and except for this section, which shall take effect upon 73 this act becoming a law, this act shall take effect July 1, 74 2012.