| 1 | A bill to be entitled |
| 2 | An act relating to the tax on sales, use, and other |
| 3 | transactions; repealing s. 212.031, F.S., relating to |
| 4 | imposition of a tax on the rental or license fee |
| 5 | charged for the use of commercial real property; |
| 6 | amending ss. 212.0598, 212.0602, 288.1258, 338.234, |
| 7 | and 341.840, F.S.; conforming cross-references; |
| 8 | 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 Section 212.031, Florida Statutes, is repealed. |
| 13 | Section 2. Subsection (2) of section 212.0598, Florida |
| 14 | Statutes, is amended to read: |
| 15 | 212.0598 Special provisions; air carriers.- |
| 16 | (2) The basis of the tax shall be the ratio of Florida |
| 17 | mileage to total mileage as determined pursuant to chapter 220 |
| 18 | and this section. The ratio shall be determined at the close of |
| 19 | the carrier's preceding fiscal year. However, during the fiscal |
| 20 | year in which the air carrier begins initial operations in this |
| 21 | state, the carrier may determine its mileage apportionment |
| 22 | factor based on an estimated ratio of anticipated revenue miles |
| 23 | in this state to anticipated total revenue miles. In such cases, |
| 24 | the air carrier shall pay additional tax or apply for a refund |
| 25 | based on the actual ratio for that year. The applicable ratio |
| 26 | shall be applied each month to the carrier's total systemwide |
| 27 | gross purchases of tangible personal property and services |
| 28 | otherwise taxable in Florida. Additionally, the ratio shall be |
| 29 | applied each month to the carrier's total systemwide payments |
| 30 | for the lease or rental of, or license in, real property used by |
| 31 | the carrier substantially for aircraft maintenance if that |
| 32 | carrier employed, on average, during the previous calendar |
| 33 | quarter in excess of 3,000 full-time equivalent maintenance or |
| 34 | repair employees at one maintenance base that it leases, rents, |
| 35 | or has a license in, in this state. In all other instances, the |
| 36 | tax on real property leased, rented, or licensed by the carrier |
| 37 | shall be as provided in s. 212.031. |
| 38 | Section 3. Section 212.0602, Florida Statutes, is amended |
| 39 | to read: |
| 40 | 212.0602 Education; limited exemption.-To facilitate |
| 41 | investment in education and job training, there is also exempt |
| 42 | from the taxes levied under this chapter, subject to the |
| 43 | provisions of this section, the purchase or lease of materials, |
| 44 | equipment, and other items or the license in or lease of real |
| 45 | property by any entity, institution, or organization that is |
| 46 | primarily engaged in teaching students to perform any of the |
| 47 | activities or services described in former s. 212.031(1)(a)9., |
| 48 | that conducts classes at a fixed location located in this state, |
| 49 | that is licensed under chapter 1005, and that has at least 500 |
| 50 | enrolled students. Any entity, institution, or organization |
| 51 | meeting the requirements of this section shall be deemed to |
| 52 | qualify for the exemptions in former s. ss. 212.031(1)(a)9. and |
| 53 | s. 212.08(5)(f) and (12), and to qualify for an exemption for |
| 54 | its purchase or lease of materials, equipment, and other items |
| 55 | used for education or demonstration of the school's curriculum, |
| 56 | including supporting operations. Nothing in this section shall |
| 57 | preclude an entity described in this section from qualifying for |
| 58 | any other exemption provided for in this chapter. |
| 59 | Section 4. Subsections (2) and (3) of section 288.1258, |
| 60 | Florida Statutes, are amended to read: |
| 61 | 288.1258 Entertainment industry qualified production |
| 62 | companies; application procedure; categories; duties of the |
| 63 | Department of Revenue; records and reports.- |
| 64 | (2) APPLICATION PROCEDURE.- |
| 65 | (a) The Department of Revenue will review all submitted |
| 66 | applications for the required information. Within 10 working |
| 67 | days after the receipt of a properly completed application, the |
| 68 | Department of Revenue will forward the completed application to |
| 69 | the Office of Film and Entertainment for approval. |
| 70 | (b)1. The Office of Film and Entertainment shall establish |
| 71 | a process by which an entertainment industry production company |
| 72 | may be approved by the office as a qualified production company |
| 73 | and may receive a certificate of exemption from the Department |
| 74 | of Revenue for the sales and use tax exemptions under ss. |
| 75 | 212.031, 212.06, and 212.08. |
| 76 | 2. Upon determination by the Office of Film and |
| 77 | Entertainment that a production company meets the established |
| 78 | approval criteria and qualifies for exemption, the Office of |
| 79 | Film and Entertainment shall return the approved application or |
| 80 | application renewal or extension to the Department of Revenue, |
| 81 | which shall issue a certificate of exemption. |
| 82 | 3. The Office of Film and Entertainment shall deny an |
| 83 | application or application for renewal or extension from a |
| 84 | production company if it determines that the production company |
| 85 | does not meet the established approval criteria. |
| 86 | (c) The Office of Film and Entertainment shall develop, |
| 87 | with the cooperation of the Department of Revenue and local |
| 88 | government entertainment industry promotion agencies, a |
| 89 | standardized application form for use in approving qualified |
| 90 | production companies. |
| 91 | 1. The application form shall include, but not be limited |
| 92 | to, production-related information on employment, proposed |
| 93 | budgets, planned purchases of items exempted from sales and use |
| 94 | taxes under ss. 212.031, 212.06, and 212.08, a signed |
| 95 | affirmation from the applicant that any items purchased for |
| 96 | which the applicant is seeking a tax exemption are intended for |
| 97 | use exclusively as an integral part of entertainment industry |
| 98 | preproduction, production, or postproduction activities engaged |
| 99 | in primarily in this state, and a signed affirmation from the |
| 100 | Office of Film and Entertainment that the information on the |
| 101 | application form has been verified and is correct. In lieu of |
| 102 | information on projected employment, proposed budgets, or |
| 103 | planned purchases of exempted items, a production company |
| 104 | seeking a 1-year certificate of exemption may submit summary |
| 105 | historical data on employment, production budgets, and purchases |
| 106 | of exempted items related to production activities in this |
| 107 | state. Any information gathered from production companies for |
| 108 | the purposes of this section shall be considered confidential |
| 109 | taxpayer information and shall be disclosed only as provided in |
| 110 | s. 213.053. |
| 111 | 2. The application form may be distributed to applicants |
| 112 | by the Office of Film and Entertainment or local film |
| 113 | commissions. |
| 114 | (d) All applications, renewals, and extensions for |
| 115 | designation as a qualified production company shall be processed |
| 116 | by the Office of Film and Entertainment. |
| 117 | (e) In the event that the Department of Revenue determines |
| 118 | that a production company no longer qualifies for a certificate |
| 119 | of exemption, or has used a certificate of exemption for |
| 120 | purposes other than those authorized by this section and chapter |
| 121 | 212, the Department of Revenue shall revoke the certificate of |
| 122 | exemption of that production company, and any sales or use taxes |
| 123 | exempted on items purchased or leased by the production company |
| 124 | during the time such company did not qualify for a certificate |
| 125 | of exemption or improperly used a certificate of exemption shall |
| 126 | become immediately due to the Department of Revenue, along with |
| 127 | interest and penalty as provided by s. 212.12. In addition to |
| 128 | the other penalties imposed by law, any person who knowingly and |
| 129 | willfully falsifies an application, or uses a certificate of |
| 130 | exemption for purposes other than those authorized by this |
| 131 | section and chapter 212, commits a felony of the third degree, |
| 132 | punishable as provided in ss. 775.082, 775.083, and 775.084. |
| 133 | (3) CATEGORIES.- |
| 134 | (a)1. A production company may be qualified for |
| 135 | designation as a qualified production company for a period of 1 |
| 136 | year if the company has operated a business in Florida at a |
| 137 | permanent address for a period of 12 consecutive months. Such a |
| 138 | qualified production company shall receive a single 1-year |
| 139 | certificate of exemption from the Department of Revenue for the |
| 140 | sales and use tax exemptions under ss. 212.031, 212.06, and |
| 141 | 212.08, which certificate shall expire 1 year after issuance or |
| 142 | upon the cessation of business operations in the state, at which |
| 143 | time the certificate shall be surrendered to the Department of |
| 144 | Revenue. |
| 145 | 2. The Office of Film and Entertainment shall develop a |
| 146 | method by which a qualified production company may annually |
| 147 | renew a 1-year certificate of exemption for a period of up to 5 |
| 148 | years without requiring the production company to resubmit a new |
| 149 | application during that 5-year period. |
| 150 | 3. Any qualified production company may submit a new |
| 151 | application for a 1-year certificate of exemption upon the |
| 152 | expiration of that company's certificate of exemption. |
| 153 | (b)1. A production company may be qualified for |
| 154 | designation as a qualified production company for a period of 90 |
| 155 | days. Such production company shall receive a single 90-day |
| 156 | certificate of exemption from the Department of Revenue for the |
| 157 | sales and use tax exemptions under ss. 212.031, 212.06, and |
| 158 | 212.08, which certificate shall expire 90 days after issuance, |
| 159 | with extensions contingent upon approval of the Office of Film |
| 160 | and Entertainment. The certificate shall be surrendered to the |
| 161 | Department of Revenue upon its expiration. |
| 162 | 2. Any production company may submit a new application for |
| 163 | a 90-day certificate of exemption upon the expiration of that |
| 164 | company's certificate of exemption. |
| 165 | Section 5. Section 338.234, Florida Statutes, is amended |
| 166 | to read: |
| 167 | 338.234 Granting concessions or selling along the turnpike |
| 168 | system; immunity from taxation.- |
| 169 | (1) The department may enter into contracts or licenses |
| 170 | with any person for the sale of services or products or business |
| 171 | opportunities on the turnpike system, or the turnpike enterprise |
| 172 | may sell services, products, or business opportunities on the |
| 173 | turnpike system, which benefit the traveling public or provide |
| 174 | additional revenue to the turnpike system. Services, business |
| 175 | opportunities, and products authorized to be sold include, but |
| 176 | are not limited to, motor fuel, vehicle towing, and vehicle |
| 177 | maintenance services; food with attendant nonalcoholic |
| 178 | beverages; lodging, meeting rooms, and other business services |
| 179 | opportunities; advertising and other promotional opportunities, |
| 180 | which advertising and promotions must be consistent with the |
| 181 | dignity and integrity of the state; state lottery tickets sold |
| 182 | by authorized retailers; games and amusements that operate by |
| 183 | the application of skill, not including games of chance as |
| 184 | defined in s. 849.16 or other illegal gambling games; Florida |
| 185 | citrus, goods promoting the state, or handmade goods produced |
| 186 | within the state; and travel information, tickets, reservations, |
| 187 | or other related services. However, the department, pursuant to |
| 188 | the grants of authority to the turnpike enterprise under this |
| 189 | section, shall not exercise the power of eminent domain solely |
| 190 | for the purpose of acquiring real property in order to provide |
| 191 | business services or opportunities, such as lodging and meeting- |
| 192 | room space on the turnpike system. |
| 193 | (2) The effectuation of the authorized purposes of the |
| 194 | Florida Intrastate Highway System and Florida Turnpike |
| 195 | Enterprise, created under this chapter, is for the benefit of |
| 196 | the people of the state, for the increase of their commerce and |
| 197 | prosperity, and for the improvement of their health and living |
| 198 | conditions; and, because the system and enterprise perform |
| 199 | essential government functions in effectuating such purposes, |
| 200 | neither the turnpike enterprise nor any nongovernment lessee or |
| 201 | licensee renting, leasing, or licensing real property from the |
| 202 | turnpike enterprise, pursuant to an agreement authorized by this |
| 203 | section, are required to pay any commercial rental tax imposed |
| 204 | under s. 212.031 on any capital improvements constructed, |
| 205 | improved, acquired, installed, or used for such purposes. |
| 206 | Section 6. Paragraph (a) of subsection (3) of section |
| 207 | 341.840, Florida Statutes, is amended to read: |
| 208 | 341.840 Tax exemption.- |
| 209 | (3)(a) Purchases or leases of tangible personal property |
| 210 | or real property by the authority, excluding agents of the |
| 211 | authority, are exempt from taxes imposed by chapter 212 as |
| 212 | provided in s. 212.08(6). Purchases or leases of tangible |
| 213 | personal property that is incorporated into the high-speed rail |
| 214 | system as a component part thereof, as determined by the |
| 215 | authority, by agents of the authority or the owner of the high- |
| 216 | speed rail system are exempt from sales or use taxes imposed by |
| 217 | chapter 212. Leases, rentals, or licenses to use real property |
| 218 | granted to agents of the authority or the owner of the high- |
| 219 | speed rail system are exempt from taxes imposed by s. 212.031 if |
| 220 | the real property becomes part of such system. The exemptions |
| 221 | granted in this subsection do not apply to sales, leases, or |
| 222 | licenses by the authority, agents of the authority, or the owner |
| 223 | of the high-speed rail system. |
| 224 | Section 7. This act shall take effect July 1, 2012. |