HB 907

1
A bill to be entitled
2An act relating to review of exemptions and exclusions
3from the tax on sales, use, and other transactions;
4requiring the Senate and House of Representatives to
5appoint a Joint Legislative Review Committee to
6oversee the review of exemptions from the tax on
7sales, use, and other transactions and make
8recommendations regarding the review; creating s.
911.9035, F.S.; providing a short title; providing
10responsibilities of the Joint Legislative Review
11Committee for the purpose of reviewing exemptions from
12the general state sales and use tax and exclusions of
13sales of services from such taxation; providing for
14meetings and governance by joint rules; providing
15definitions; specifying powers and duties; providing
16for reports; requiring continuing periodic review of
17sales tax exemptions and exclusions; providing for
18legislative proposals; amending s. 212.08, F.S.;
19providing for future elimination of all sales, rental,
20use, consumption, distribution, and storage tax
21exemptions under the section except those for general
22groceries, medical, guide dogs for the blind, hospital
23meals and rooms, household fuels, meals delivered by
24nonprofit volunteer organizations as a charitable
25function, and certain books, lunches, and publications
26used or provided at schools for students grades K
27through 12; repealing s. 212.051, F.S., relating to
28exemption for equipment, machinery, and other
29materials for pollution control; repealing s. 212.052,
30F.S., relating to exemption for research or
31development costs; repealing s. 212.0598, F.S.,
32relating to partial exemption for air carriers'
33maintenance bases; repealing s. 212.0602, F.S.,
34relating to a limited exemption for education;
35repealing s. 212.0801, F.S., relating to an exemption
36for qualified aircraft; repealing s. 212.0821, F.S.,
37relating to legislative intent that political
38subdivisions and public libraries use sales tax
39exemption certificates for certain purchases;
40repealing s. 212.09, F.S., relating to trade-ins
41deducted; repealing s. 212.096, F.S., relating to
42credit for job creation in enterprise zones; repealing
43s. 212.097, F.S., relating to Urban High Crime area
44job tax credit; repealing s. 212.098, F.S., relating
45to rural job tax credit; providing for future repeal
46of certain provisions of ss. 212.02, 212.03, 212.031,
47212.04, 212.05, 212.0506, 212.06, 212.0601, 212.07,
48212.081, 212.12, 212.20, and 376.75, F.S., relating to
49various sales and use tax exemptions, exclusions, and
50credits; providing exceptions; providing effective
51dates.
52
53     WHEREAS, Florida's current budget difficulties require the
54state to consider innovative solutions in addressing the long-
55term viability of the state's tax structure, and
56     WHEREAS, the state's tax structure should treat individuals
57fairly and equitably, imposing similar tax burdens on people in
58similar circumstances, and
59     WHEREAS, exemptions to the state's sales tax should serve
60an important state interest and should be uniform in the effect
61on citizens of the state, and
62     WHEREAS, the Legislature finds that a periodic sunset and
63review of all sales tax exemptions will serve to restore
64fairness to the state's tax structure, NOW, THEREFORE,
65
66Be It Enacted by the Legislature of the State of Florida:
67
68     Section 1.  The Senate and the House of Representatives
69shall appoint a Joint Legislative Review Committee for the
70purposes of overseeing the review of exemptions from the tax on
71sales, use, and other transactions required by s. 11.9035,
72Florida Statutes, and making recommendations to the Legislature
73regarding the review of exemptions.
74     Section 2.  Section 11.9035, Florida Statutes, is created
75to read:
76     11.9035  Sales and use tax exemption and exclusion review.-
77     (1)  SHORT TITLE.-This section may be cited as the "Florida
78Sales Tax Fairness Restoration Act."
79     (2)  SALES TAX EXEMPTIONS REVIEW.-The Joint Legislative
80Review Committee shall conduct comprehensive, periodic reviews
81of all exemptions from the general state sales and use tax and
82exclusions of sales of services from such taxation as provided
83by this section.
84     (3)  PROCEDURES.-The committee for each review cycle shall
85have its initial meeting no later than September 1, 2012, and
86thereafter as necessary at the call of the chair at the time and
87place designated by the chair. A quorum shall consist of a
88majority of the committee members from each house. During the
89interim between regular sessions, the committee may conduct its
90meetings through teleconferences or other similar means.
91     (4)  RULES.-For purposes of this section, the committee
92shall be governed by joint rules adopted by the Legislature
93pursuant to the authority to adopt rules under s. 4, Art. III of
94the State Constitution.
95     (5)  DEFINITIONS.-As used in this section, the term:
96     (a)  "General state sales and use tax" means the sales and
97use tax imposed under chapter 212.
98     (b)  "Service" means a service within any of the following
99service categories under the North American Industry
100Classification System (NAICS):
101     1.  Personal services.
102     2.  Professional services.
103     3.  Business services.
104     4.  Financial services.
105     5.  Media services.
106     6.  Entertainment and sports services.
107     7.  Construction services.
108     8.  Institutional services.
109     9.  Transportation services.
110     10.  Health services.
111     (6)  POWERS AND DUTIES.-The committee shall have the power
112and duty to conduct a comprehensive review of all current and
113future exemptions from the general state sales and use tax and
114the exclusion of sales of services from such taxation. The
115committee shall establish criteria by which each exemption or
116exclusion shall be evaluated. In developing the evaluation
117criteria, the committee shall consider the following principles
118of taxation:
119     (a)  Equity.-The tax system should treat individuals
120equitably. It should impose similar tax burdens on people in
121similar circumstances and should minimize regressivity.
122     (b)  Simplicity, transparency, and compliance.-The tax
123system should facilitate taxpayer compliance. It should be
124simple and easy to understand and should provide visibility and
125awareness of the taxes being paid.
126     (c)  Neutrality.-The tax system should affect taxpayers
127uniformly and consistently. The primary purpose of any tax
128should be to raise revenue for appropriate governmental
129functions, rather than to influence business and personal
130decisions.
131     (d)  Stability.-The tax system should produce revenues in a
132stable and reliable manner that is sufficient to fund
133appropriate governmental functions and expenditures.
134     (e)  Integration.-The tax system should balance the need
135for integration of federal, state, and local taxation.
136     (f)  Public purpose.-Any sales and use tax exemption or
137exclusion under the tax system should be based upon a
138determination that the exemption or exclusion promotes an
139important state interest and should benefit citizens as equally
140as possible.
141     (7)  FINDINGS AND RECOMMENDATIONS.-In conducting its review
142of each exemption from the general state sales and use tax or
143the exclusion of the sale of a service from such taxation, the
144committee shall make findings of fact and recommend whether the
145exemption should be retained, modified, or repealed or whether
146the exclusion should be retained or eliminated. Each
147recommendation must be made by majority vote of the committee
148members from each house. If a majority vote of the committee
149members from each house cannot be achieved, the committee must
150recommend that the exemption or exclusion be repealed. The
151findings of fact and recommendations of the committee shall be
152made by reports to the President of the Senate and the Speaker
153of the House of Representatives.
154     (8)  EXEMPTIONS AND EXCLUSIONS REVIEW.-
155     (a)  The committee may use its discretion in determining
156the order in which it reviews the exemptions and exclusions. For
157the initial review, the committee shall submit, to the President
158of the Senate and the Speaker of the House of Representatives,
159its initial report on one-third of the exemptions and exclusions
160by November 1, 2012, its report on the second one-third of the
161exemptions and exclusions by March 1, 2013, and its report on
162the final one-third of the exemptions and exclusions by July 1,
1632013, with no duplication of exemptions or exclusions from one
164report to the next. Thereafter, the committee shall review every
1653 years approximately one-third of the exemptions and exclusions
166with no duplication of exemptions or exclusions reviewed from
167one 3-year period to the next 3-year period. The committee shall
168submit its 3-year period review reports no later than December 1
169of the year before the next regular session after the third year
170of each 3-year review cycle. The committee shall begin a new 9-
171year review cycle of all exemptions from the general state sales
172and use tax and all exclusions of sales of services from such
173taxation every 9 years after the termination of the previous
174review cycle.
175     (b)  Notwithstanding the provisions of this section,
176exemptions and exclusions for necessities, including, but not
177limited to, exemptions for general groceries as described in s.
178212.08(1), exemptions for medical products or supplies as
179described in s. 212.08(2), health services, residential housing,
180residential electricity, and home heating fuel, and sales of
181property or services that the state is prohibited from taxing
182under the Constitution or laws of the United States may not be
183subject to review by the committee or repeal in legislation
184proposed by the committee.
185     (9)  LEGISLATION.-At the regular session after submission
186of each annual report to the Speaker of the House of
187Representatives and the President of the Senate, the committee
188shall introduce in both houses of the Legislature bills
189presenting for reenactment, modification, or repeal those
190exemptions from the general state sales and use tax or any
191imposition of such taxation on sales of services that were
192recommended by the committee in the report submitted immediately
193before the session in which introduced. Each bill introduced
194must be restricted to a single exemption or the imposition of
195the tax on a single service and must be submitted to a vote of
196the members of each house of the Legislature no later than the
197eighth week of the session in which introduced, unless the
198substance of the bill has already been voted on by the members
199of that house of the Legislature in another bill during that
200session and either passed or defeated or the bill has already
201been submitted to the members of the other house and has been
202defeated.
203     (10)  REPEAL.-Any exemption from the state general sales
204and use tax or exemption from imposition of such tax on sales of
205services, that is not prohibited from review by the committee
206under the requirements of paragraph (8)(b) and is not modified
207or reenacted by the end of the regular session after any 9-year
208review period, stands repealed on July 1 after the end of the
209regular session immediately after the 9-year review period.
210     (11)  CONSTRUCTION.-This section does not preclude a
211legislator from filing for any legislative session a bill
212proposing to modify, repeal, or enact any exemption from the
213general state sales and use tax or the imposition of such
214taxation on the sales of any service.
215     Section 3.  Effective July 1, 2015, section 212.08, Florida
216Statutes, is amended to read:
217     212.08  Sales, rental, use, consumption, distribution, and
218storage tax; specified exemptions.-The sale at retail, the
219rental, the use, the consumption, the distribution, and the
220storage to be used or consumed in this state of the following
221are hereby specifically exempt from the tax imposed by this
222chapter.
223     (1)  EXEMPTIONS; GENERAL GROCERIES.-
224     (a)  Food products for human consumption are exempt from
225the tax imposed by this chapter.
226     (b)  For the purpose of this chapter, as used in this
227subsection, the term "food products" means edible commodities,
228whether processed, cooked, raw, canned, or in any other form,
229which are generally regarded as food. This includes, but is not
230limited to, all of the following:
231     1.  Cereals and cereal products, baked goods,
232oleomargarine, meat and meat products, fish and seafood
233products, frozen foods and dinners, poultry, eggs and egg
234products, vegetables and vegetable products, fruit and fruit
235products, spices, salt, sugar and sugar products, milk and dairy
236products, and products intended to be mixed with milk.
237     2.  Natural fruit or vegetable juices or their concentrates
238or reconstituted natural concentrated fruit or vegetable juices,
239whether frozen or unfrozen, dehydrated, powdered, granulated,
240sweetened or unsweetened, seasoned with salt or spice, or
241unseasoned; coffee, coffee substitutes, or cocoa; and tea,
242unless it is sold in a liquid form.
243     3.  Bakery products sold by bakeries, pastry shops, or like
244establishments that do not have eating facilities.
245     (c)  The exemption provided by this subsection does not
246apply to:
247     1.   Food products sold as meals for consumption on or off
248the premises of the dealer.
249     2.  Food products furnished, prepared, or served for
250consumption at tables, chairs, or counters or from trays,
251glasses, dishes, or other tableware, whether provided by the
252dealer or by a person with whom the dealer contracts to furnish,
253prepare, or serve food products to others.
254     3.  Food products ordinarily sold for immediate consumption
255on the seller's premises or near a location at which parking
256facilities are provided primarily for the use of patrons in
257consuming the products purchased at the location, even though
258such products are sold on a "take out" or "to go" order and are
259actually packaged or wrapped and taken from the premises of the
260dealer.
261     4.  Sandwiches sold ready for immediate consumption on or
262off the seller's premises.
263     5.  Food products sold ready for immediate consumption
264within a place, the entrance to which is subject to an admission
265charge.
266     6.  Food products sold as hot prepared food products.
267     7.  Soft drinks, including, but not limited to, any
268nonalcoholic beverage, any preparation or beverage commonly
269referred to as a "soft drink," or any noncarbonated drink made
270from milk derivatives or tea, if sold in cans or similar
271containers.
272     8.  Ice cream, frozen yogurt, and similar frozen dairy or
273nondairy products in cones, small cups, or pints, popsicles,
274frozen fruit bars, or other novelty items, whether or not sold
275separately.
276     9.  Food that is prepared, whether on or off the premises,
277and sold for immediate consumption. This does not apply to food
278prepared off the premises and sold in the original sealed
279container, or the slicing of products into smaller portions.
280     10.  Food products sold through a vending machine,
281pushcart, motor vehicle, or any other form of vehicle.
282     11.  Candy and any similar product regarded as candy or
283confection, based on its normal use, as indicated on the label
284or advertising thereof.
285     12.  Bakery products sold by bakeries, pastry shops, or
286like establishments having eating facilities, except when sold
287for consumption off the seller's premises.
288     13.  Food products served, prepared, or sold in or by
289restaurants, lunch counters, cafeterias, hotels, taverns, or
290other like places of business.
291     (d)  As used in this subsection, the term:
292     1.  "For consumption off the seller's premises" means that
293the food or drink is intended by the customer to be consumed at
294a place away from the dealer's premises.
295     2.  "For consumption on the seller's premises" means that
296the food or drink sold may be immediately consumed on the
297premises where the dealer conducts his or her business. In
298determining whether an item of food is sold for immediate
299consumption, the customary consumption practices prevailing at
300the selling facility shall be considered.
301     3.  "Premises" shall be construed broadly, and means, but
302is not limited to, the lobby, aisle, or auditorium of a theater;
303the seating, aisle, or parking area of an arena, rink, or
304stadium; or the parking area of a drive-in or outdoor theater.
305The premises of a caterer with respect to catered meals or
306beverages shall be the place where such meals or beverages are
307served.
308     4.  "Hot prepared food products" means those products,
309items, or components which have been prepared for sale in a
310heated condition and which are sold at any temperature that is
311higher than the air temperature of the room or place where they
312are sold. "Hot prepared food products," for the purposes of this
313subsection, includes a combination of hot and cold food items or
314components where a single price has been established for the
315combination and the food products are sold in such combination,
316such as a hot meal, a hot specialty dish or serving, or a hot
317sandwich or hot pizza, including cold components or side items.
318     (e)1.  Food or drinks not exempt under paragraphs (a), (b),
319(c), and (d) are exempt, notwithstanding those paragraphs, when
320purchased with food coupons or Special Supplemental Food Program
321for Women, Infants, and Children vouchers issued under authority
322of federal law.
323     2.  This paragraph is effective only while federal law
324prohibits a state's participation in the federal food coupon
325program or Special Supplemental Food Program for Women, Infants,
326and Children if there is an official determination that state or
327local sales taxes are collected within that state on purchases
328of food or drinks with such coupons.
329     3.  This paragraph shall not apply to any food or drinks on
330which federal law shall permit sales taxes without penalty, such
331as termination of the state's participation.
332     (f)  The application of the tax on a package that contains
333exempt food products and taxable nonfood products depends upon
334the essential character of the complete package.
335     1.  If the taxable items represent more than 25 percent of
336the cost of the complete package and a single charge is made,
337the entire sales price of the package is taxable. If the taxable
338items are separately stated, the separate charge for the taxable
339items is subject to tax.
340     2.  If the taxable items represent 25 percent or less of
341the cost of the complete package and a single charge is made,
342the entire sales price of the package is exempt from tax. The
343person preparing the package is liable for the tax on the cost
344of the taxable items going into the complete package. If the
345taxable items are separately stated, the separate charge is
346subject to tax.
347     (2)  EXEMPTIONS; MEDICAL.-
348     (a)  There shall be exempt from the tax imposed by this
349chapter any medical products and supplies or medicine dispensed
350according to an individual prescription or prescriptions written
351by a prescriber authorized by law to prescribe medicinal drugs;
352hypodermic needles; hypodermic syringes; chemical compounds and
353test kits used for the diagnosis or treatment of human disease,
354illness, or injury; and common household remedies recommended
355and generally sold for internal or external use in the cure,
356mitigation, treatment, or prevention of illness or disease in
357human beings, but not including cosmetics or toilet articles,
358notwithstanding the presence of medicinal ingredients therein,
359according to a list prescribed and approved by the Department of
360Health, which list shall be certified to the Department of
361Revenue from time to time and included in the rules promulgated
362by the Department of Revenue. There shall also be exempt from
363the tax imposed by this chapter artificial eyes and limbs;
364orthopedic shoes; prescription eyeglasses and items incidental
365thereto or which become a part thereof; dentures; hearing aids;
366crutches; prosthetic and orthopedic appliances; and funerals. In
367addition, any items intended for one-time use which transfer
368essential optical characteristics to contact lenses shall be
369exempt from the tax imposed by this chapter; however, this
370exemption shall apply only after $100,000 of the tax imposed by
371this chapter on such items has been paid in any calendar year by
372a taxpayer who claims the exemption in such year. Funeral
373directors shall pay tax on all tangible personal property used
374by them in their business.
375     (b)  For the purposes of this subsection:
376     1.  "Prosthetic and orthopedic appliances" means any
377apparatus, instrument, device, or equipment used to replace or
378substitute for any missing part of the body, to alleviate the
379malfunction of any part of the body, or to assist any disabled
380person in leading a normal life by facilitating such person's
381mobility. Such apparatus, instrument, device, or equipment shall
382be exempted according to an individual prescription or
383prescriptions written by a physician licensed under chapter 458,
384chapter 459, chapter 460, chapter 461, or chapter 466, or
385according to a list prescribed and approved by the Department of
386Health, which list shall be certified to the Department of
387Revenue from time to time and included in the rules promulgated
388by the Department of Revenue.
389     2.  "Cosmetics" means articles intended to be rubbed,
390poured, sprinkled, or sprayed on, introduced into, or otherwise
391applied to the human body for cleansing, beautifying, promoting
392attractiveness, or altering the appearance and also means
393articles intended for use as a compound of any such articles,
394including, but not limited to, cold creams, suntan lotions,
395makeup, and body lotions.
396     3.  "Toilet articles" means any article advertised or held
397out for sale for grooming purposes and those articles that are
398customarily used for grooming purposes, regardless of the name
399by which they may be known, including, but not limited to, soap,
400toothpaste, hair spray, shaving products, colognes, perfumes,
401shampoo, deodorant, and mouthwash.
402     4.  "Prescription" includes any order for drugs or
403medicinal supplies written or transmitted by any means of
404communication by a duly licensed practitioner authorized by the
405laws of the state to prescribe such drugs or medicinal supplies
406and intended to be dispensed by a pharmacist. The term also
407includes an orally transmitted order by the lawfully designated
408agent of such practitioner. The term also includes an order
409written or transmitted by a practitioner licensed to practice in
410a jurisdiction other than this state, but only if the pharmacist
411called upon to dispense such order determines, in the exercise
412of his or her professional judgment, that the order is valid and
413necessary for the treatment of a chronic or recurrent illness.
414The term also includes a pharmacist's order for a product
415selected from the formulary created pursuant to s. 465.186. A
416prescription may be retained in written form, or the pharmacist
417may cause it to be recorded in a data processing system,
418provided that such order can be produced in printed form upon
419lawful request.
420     (c)  Chlorine shall not be exempt from the tax imposed by
421this chapter when used for the treatment of water in swimming
422pools.
423     (d)  Lithotripters are exempt.
424     (e)  Human organs are exempt.
425     (f)  Sales of drugs to or by physicians, dentists,
426veterinarians, and hospitals in connection with medical
427treatment are exempt.
428     (g)  Medical products and supplies used in the cure,
429mitigation, alleviation, prevention, or treatment of injury,
430disease, or incapacity which are temporarily or permanently
431incorporated into a patient or client by a practitioner of the
432healing arts licensed in the state are exempt.
433     (h)  The purchase by a veterinarian of commonly recognized
434substances possessing curative or remedial properties which are
435ordered and dispensed as treatment for a diagnosed health
436disorder by or on the prescription of a duly licensed
437veterinarian, and which are applied to or consumed by animals
438for alleviation of pain or the cure or prevention of sickness,
439disease, or suffering are exempt. Also exempt are the purchase
440by a veterinarian of antiseptics, absorbent cotton, gauze for
441bandages, lotions, vitamins, and worm remedies.
442     (i)  X-ray opaques, also known as opaque drugs and
443radiopaque, such as the various opaque dyes and barium sulphate,
444when used in connection with medical X rays for treatment of
445bodies of humans and animals, are exempt.
446     (j)  Parts, special attachments, special lettering, and
447other like items that are added to or attached to tangible
448personal property so that a handicapped person can use them are
449exempt when such items are purchased by a person pursuant to an
450individual prescription.
451     (k)  This subsection shall be strictly construed and
452enforced.
453     (3)  EXEMPTIONS; CERTAIN FARM EQUIPMENT.-There shall be no
454tax on the sale, rental, lease, use, consumption, or storage for
455use in this state of power farm equipment used exclusively on a
456farm or in a forest in the agricultural production of crops or
457products as produced by those agricultural industries included
458in s. 570.02(1), or for fire prevention and suppression work
459with respect to such crops or products. Harvesting may not be
460construed to include processing activities. This exemption is
461not forfeited by moving farm equipment between farms or forests.
462However, this exemption shall not be allowed unless the
463purchaser, renter, or lessee signs a certificate stating that
464the farm equipment is to be used exclusively on a farm or in a
465forest for agricultural production or for fire prevention and
466suppression, as required by this subsection. Possession by a
467seller, lessor, or other dealer of a written certification by
468the purchaser, renter, or lessee certifying the purchaser's,
469renter's, or lessee's entitlement to an exemption permitted by
470this subsection relieves the seller from the responsibility of
471collecting the tax on the nontaxable amounts, and the department
472shall look solely to the purchaser for recovery of such tax if
473it determines that the purchaser was not entitled to the
474exemption.
475     (4)  EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.-
476     (a)  Also exempt are:
477     1.  Water delivered to the purchaser through pipes or
478conduits or delivered for irrigation purposes. The sale of
479drinking water in bottles, cans, or other containers, including
480water that contains minerals or carbonation in its natural state
481or water to which minerals have been added at a water treatment
482facility regulated by the Department of Environmental Protection
483or the Department of Health, is exempt. This exemption does not
484apply to the sale of drinking water in bottles, cans, or other
485containers if carbonation or flavorings, except those added at a
486water treatment facility, have been added. Water that has been
487enhanced by the addition of minerals and that does not contain
488any added carbonation or flavorings is also exempt.
489     2.  All fuels used by a public or private utility,
490including any municipal corporation or rural electric
491cooperative association, in the generation of electric power or
492energy for sale. Fuel other than motor fuel and diesel fuel is
493taxable as provided in this chapter with the exception of fuel
494expressly exempt herein. Motor fuels and diesel fuels are
495taxable as provided in chapter 206, with the exception of those
496motor fuels and diesel fuels used by railroad locomotives or
497vessels to transport persons or property in interstate or
498foreign commerce, which are taxable under this chapter only to
499the extent provided herein. The basis of the tax shall be the
500ratio of intrastate mileage to interstate or foreign mileage
501traveled by the carrier's railroad locomotives or vessels that
502were used in interstate or foreign commerce and that had at
503least some Florida mileage during the previous fiscal year of
504the carrier, such ratio to be determined at the close of the
505fiscal year of the carrier. However, during the fiscal year in
506which the carrier begins its initial operations in this state,
507the carrier's mileage apportionment factor may be determined on
508the basis of an estimated ratio of anticipated miles in this
509state to anticipated total miles for that year, and
510subsequently, additional tax shall be paid on the motor fuel and
511diesel fuels, or a refund may be applied for, on the basis of
512the actual ratio of the carrier's railroad locomotives' or
513vessels' miles in this state to its total miles for that year.
514This ratio shall be applied each month to the total Florida
515purchases made in this state of motor and diesel fuels to
516establish that portion of the total used and consumed in
517intrastate movement and subject to tax under this chapter. The
518basis for imposition of any discretionary surtax shall be set
519forth in s. 212.054. Fuels used exclusively in intrastate
520commerce do not qualify for the proration of tax.
521     3.  The transmission or wheeling of electricity.
522     (b)  Alcoholic beverages and malt beverages are not exempt.
523The terms "alcoholic beverages" and "malt beverages" as used in
524this paragraph have the same meanings ascribed to them in ss.
525561.01(4) and 563.01, respectively. It is determined by the
526Legislature that the classification of alcoholic beverages made
527in this paragraph for the purpose of extending the tax imposed
528by this chapter is reasonable and just, and it is intended that
529such tax be separate from, and in addition to, any other tax
530imposed on alcoholic beverages.
531     (5)  EXEMPTIONS; ACCOUNT OF USE.-
532     (a)  Items in agricultural use and certain nets.-There are
533exempt from the tax imposed by this chapter nets designed and
534used exclusively by commercial fisheries; disinfectants,
535fertilizers, insecticides, pesticides, herbicides, fungicides,
536and weed killers used for application on crops or groves,
537including commercial nurseries and home vegetable gardens, used
538in dairy barns or on poultry farms for the purpose of protecting
539poultry or livestock, or used directly on poultry or livestock;
540portable containers or movable receptacles in which portable
541containers are placed, used for processing farm products; field
542and garden seeds, including flower seeds; nursery stock,
543seedlings, cuttings, or other propagative material purchased for
544growing stock; seeds, seedlings, cuttings, and plants used to
545produce food for human consumption; cloth, plastic, and other
546similar materials used for shade, mulch, or protection from
547frost or insects on a farm; generators used on poultry farms;
548and liquefied petroleum gas or other fuel used to heat a
549structure in which started pullets or broilers are raised;
550however, such exemption shall not be allowed unless the
551purchaser or lessee signs a certificate stating that the item to
552be exempted is for the exclusive use designated herein. Also
553exempt are cellophane wrappers, glue for tin and glass
554(apiarists), mailing cases for honey, shipping cases, window
555cartons, and baling wire and twine used for baling hay, when
556used by a farmer to contain, produce, or process an agricultural
557commodity.
558     (b)  Machinery and equipment used to increase productive
559output.-
560     1.  Industrial machinery and equipment purchased for
561exclusive use by a new business in spaceport activities as
562defined by s. 212.02 or for use in new businesses that
563manufacture, process, compound, or produce for sale items of
564tangible personal property at fixed locations are exempt from
565the tax imposed by this chapter upon an affirmative showing by
566the taxpayer to the satisfaction of the department that such
567items are used in a new business in this state. Such purchases
568must be made prior to the date the business first begins its
569productive operations, and delivery of the purchased item must
570be made within 12 months after that date.
571     2.  Industrial machinery and equipment purchased for
572exclusive use by an expanding facility which is engaged in
573spaceport activities as defined by s. 212.02 or for use in
574expanding manufacturing facilities or plant units which
575manufacture, process, compound, or produce for sale items of
576tangible personal property at fixed locations in this state are
577exempt from any amount of tax imposed by this chapter upon an
578affirmative showing by the taxpayer to the satisfaction of the
579department that such items are used to increase the productive
580output of such expanded facility or business by not less than 10
581percent.
582     3.a.  To receive an exemption provided by subparagraph 1.
583or subparagraph 2., a qualifying business entity shall apply to
584the department for a temporary tax exemption permit. The
585application shall state that a new business exemption or
586expanded business exemption is being sought. Upon a tentative
587affirmative determination by the department pursuant to
588subparagraph 1. or subparagraph 2., the department shall issue
589such permit.
590     b.  The applicant shall maintain all necessary books and
591records to support the exemption. Upon completion of purchases
592of qualified machinery and equipment pursuant to subparagraph 1.
593or subparagraph 2., the temporary tax permit shall be delivered
594to the department or returned to the department by certified or
595registered mail.
596     c.  If, in a subsequent audit conducted by the department,
597it is determined that the machinery and equipment purchased as
598exempt under subparagraph 1. or subparagraph 2. did not meet the
599criteria mandated by this paragraph or if commencement of
600production did not occur, the amount of taxes exempted at the
601time of purchase shall immediately be due and payable to the
602department by the business entity, together with the appropriate
603interest and penalty, computed from the date of purchase, in the
604manner prescribed by this chapter.
605     d.  If a qualifying business entity fails to apply for a
606temporary exemption permit or if the tentative determination by
607the department required to obtain a temporary exemption permit
608is negative, a qualifying business entity shall receive the
609exemption provided in subparagraph 1. or subparagraph 2. through
610a refund of previously paid taxes. No refund may be made for
611such taxes unless the criteria mandated by subparagraph 1. or
612subparagraph 2. have been met and commencement of production has
613occurred.
614     4.  The department shall adopt rules governing applications
615for, issuance of, and the form of temporary tax exemption
616permits; provisions for recapture of taxes; and the manner and
617form of refund applications, and may establish guidelines as to
618the requisites for an affirmative showing of increased
619productive output, commencement of production, and qualification
620for exemption.
621     5.  The exemptions provided in subparagraphs 1. and 2. do
622not apply to machinery or equipment purchased or used by
623electric utility companies, communications companies, oil or gas
624exploration or production operations, publishing firms that do
625not export at least 50 percent of their finished product out of
626the state, any firm subject to regulation by the Division of
627Hotels and Restaurants of the Department of Business and
628Professional Regulation, or any firm that does not manufacture,
629process, compound, or produce for sale items of tangible
630personal property or that does not use such machinery and
631equipment in spaceport activities as required by this paragraph.
632The exemptions provided in subparagraphs 1. and 2. shall apply
633to machinery and equipment purchased for use in phosphate or
634other solid minerals severance, mining, or processing
635operations.
636     6.  For the purposes of the exemptions provided in
637subparagraphs 1. and 2., these terms have the following
638meanings:
639     a.  "Industrial machinery and equipment" means tangible
640personal property or other property that has a depreciable life
641of 3 years or more and that is used as an integral part in the
642manufacturing, processing, compounding, or production of
643tangible personal property for sale or is exclusively used in
644spaceport activities. A building and its structural components
645are not industrial machinery and equipment unless the building
646or structural component is so closely related to the industrial
647machinery and equipment that it houses or supports that the
648building or structural component can be expected to be replaced
649when the machinery and equipment are replaced. Heating and air-
650conditioning systems are not industrial machinery and equipment
651unless the sole justification for their installation is to meet
652the requirements of the production process, even though the
653system may provide incidental comfort to employees or serve, to
654an insubstantial degree, nonproduction activities. The term
655includes parts and accessories only to the extent that the
656exemption thereof is consistent with the provisions of this
657paragraph.
658     b.  "Productive output" means the number of units actually
659produced by a single plant, operation, or product line in a
660single continuous 12-month period, irrespective of sales.
661Increases in productive output shall be measured by the output
662for 12 continuous months selected by the expanding business
663following the completion of installation of such machinery or
664equipment over the output for the 12 continuous months
665immediately preceding such installation. However, in no case may
666such time period begin later than 2 years following the
667completion of installation of the new machinery and equipment.
668The units used to measure productive output shall be physically
669comparable between the two periods, irrespective of sales.
670     (c)  Machinery and equipment used in production of
671electrical or steam energy.-
672     1.  The purchase of machinery and equipment for use at a
673fixed location which machinery and equipment are necessary in
674the production of electrical or steam energy resulting from the
675burning of boiler fuels other than residual oil is exempt from
676the tax imposed by this chapter. Such electrical or steam energy
677must be primarily for use in manufacturing, processing,
678compounding, or producing for sale items of tangible personal
679property in this state. Use of a de minimis amount of residual
680fuel to facilitate the burning of nonresidual fuel shall not
681reduce the exemption otherwise available under this paragraph.
682     2.  In facilities where machinery and equipment are
683necessary to burn both residual and nonresidual fuels, the
684exemption shall be prorated. Such proration shall be based upon
685the production of electrical or steam energy from nonresidual
686fuels as a percentage of electrical or steam energy from all
687fuels. If it is determined that 15 percent or less of all
688electrical or steam energy generated was produced by burning
689residual fuel, the full exemption shall apply. Purchasers
690claiming a partial exemption shall obtain such exemption by
691refund of taxes paid, or as otherwise provided in the
692department's rules.
693     3.  The department may adopt rules that provide for
694implementation of this exemption. Purchasers of machinery and
695equipment qualifying for the exemption provided in this
696paragraph shall furnish the vendor with an affidavit stating
697that the item or items to be exempted are for the use designated
698herein. Any person furnishing a false affidavit to the vendor
699for the purpose of evading payment of any tax imposed under this
700chapter shall be subject to the penalty set forth in s. 212.085
701and as otherwise provided by law. Purchasers with self-accrual
702authority shall maintain all documentation necessary to prove
703the exempt status of purchases.
704     (d)  Machinery and equipment used under federal procurement
705contract.-
706     1.  Industrial machinery and equipment purchased by an
707expanding business which manufactures tangible personal property
708pursuant to federal procurement regulations at fixed locations
709in this state are exempt from the tax imposed in this chapter
710upon an affirmative showing by the taxpayer to the satisfaction
711of the department that such items are used to increase the
712implicit productive output of the expanded business by not less
713than 10 percent. The percentage of increase is measured as
714deflated implicit productive output for the calendar year during
715which the installation of the machinery or equipment is
716completed or during which commencement of production utilizing
717such items is begun divided by the implicit productive output
718for the preceding calendar year. In no case may the commencement
719of production begin later than 2 years following completion of
720installation of the machinery or equipment.
721     2.  The amount of the exemption allowed shall equal the
722taxes otherwise imposed by this chapter on qualifying industrial
723machinery or equipment reduced by the percentage of gross
724receipts from cost-reimbursement type contracts attributable to
725the plant or operation to total gross receipts so attributable,
726accrued for the year of completion or commencement.
727     3.  The exemption provided by this paragraph shall inure to
728the taxpayer only through refund of previously paid taxes. Such
729refund shall be made within 30 days of formal approval by the
730department of the taxpayer's application, which application may
731be made on an annual basis following installation of the
732machinery or equipment.
733     4.  For the purposes of this paragraph, the term:
734     a.  "Cost-reimbursement type contracts" has the same
735meaning as in 32 C.F.R. s. 3-405.
736     b.  "Deflated implicit productive output" means the product
737of implicit productive output times the quotient of the national
738defense implicit price deflator for the preceding calendar year
739divided by the deflator for the year of completion or
740commencement.
741     c.  "Eligible costs" means the total direct and indirect
742costs, as defined in 32 C.F.R. ss. 15-202 and 15-203, excluding
743general and administrative costs, selling expenses, and profit,
744defined by the uniform cost-accounting standards adopted by the
745Cost-Accounting Standards Board created pursuant to 50 U.S.C. s.
7462168.
747     d.  "Implicit productive output" means the annual eligible
748costs attributable to all contracts or subcontracts subject to
749federal procurement regulations of the single plant or operation
750at which the machinery or equipment is used.
751     e.  "Industrial machinery and equipment" means tangible
752personal property or other property that has a depreciable life
753of 3 years or more, that qualifies as an eligible cost under
754federal procurement regulations, and that is used as an integral
755part of the process of production of tangible personal property.
756A building and its structural components are not industrial
757machinery and equipment unless the building or structural
758component is so closely related to the industrial machinery and
759equipment that it houses or supports that the building or
760structural component can be expected to be replaced when the
761machinery and equipment are replaced. Heating and air-
762conditioning systems are not industrial machinery and equipment
763unless the sole justification for their installation is to meet
764the requirements of the production process, even though the
765system may provide incidental comfort to employees or serve, to
766an insubstantial degree, nonproduction activities. The term
767includes parts and accessories only to the extent that the
768exemption of such parts and accessories is consistent with the
769provisions of this paragraph.
770     f.  "National defense implicit price deflator" means the
771national defense implicit price deflator for the gross national
772product as determined by the Bureau of Economic Analysis of the
773United States Department of Commerce.
774     5.  The exclusions provided in subparagraph (b)5. apply to
775this exemption. This exemption applies only to machinery or
776equipment purchased pursuant to production contracts with the
777United States Department of Defense and Armed Forces, the
778National Aeronautics and Space Administration, and other federal
779agencies for which the contracts are classified for national
780security reasons. In no event shall the provisions of this
781paragraph apply to any expanding business the increase in
782productive output of which could be measured under the
783provisions of sub-subparagraph (b)6.b. as physically comparable
784between the two periods.
785     (e)  Gas or electricity used for certain agricultural
786purposes.-
787     1.  Butane gas, propane gas, natural gas, and all other
788forms of liquefied petroleum gases are exempt from the tax
789imposed by this chapter if used in any tractor, vehicle, or
790other farm equipment which is used exclusively on a farm or for
791processing farm products on the farm and no part of which gas is
792used in any vehicle or equipment driven or operated on the
793public highways of this state. This restriction does not apply
794to the movement of farm vehicles or farm equipment between
795farms. The transporting of bees by water and the operating of
796equipment used in the apiary of a beekeeper is also deemed an
797exempt use.
798     2.  Electricity used directly or indirectly for production
799or processing of agricultural products on the farm is exempt
800from the tax imposed by this chapter. This exemption applies
801only if the electricity used for the exempt purposes is
802separately metered. If the electricity is not separately
803metered, it is conclusively presumed that some portion of the
804electricity is used for a nonexempt purpose, and all of the
805electricity used for such purposes is taxable.
806     (f)  Motion picture or video equipment used in motion
807picture or television production activities and sound recording
808equipment used in the production of master tapes and master
809records.-
810     1.  Motion picture or video equipment and sound recording
811equipment purchased or leased for use in this state in
812production activities is exempt from the tax imposed by this
813chapter. The exemption provided by this paragraph shall inure to
814the taxpayer upon presentation of the certificate of exemption
815issued to the taxpayer under the provisions of s. 288.1258.
816     2.  For the purpose of the exemption provided in
817subparagraph 1.:
818     a.  "Motion picture or video equipment" and "sound
819recording equipment" includes only tangible personal property or
820other property that has a depreciable life of 3 years or more
821and that is used by the lessee or purchaser exclusively as an
822integral part of production activities; however, motion picture
823or video equipment and sound recording equipment does not
824include supplies, tape, records, film, or video tape used in
825productions or other similar items; vehicles or vessels; or
826general office equipment not specifically suited to production
827activities. In addition, the term does not include equipment
828purchased or leased by television or radio broadcasting or cable
829companies licensed by the Federal Communications Commission.
830Furthermore, a building and its structural components are not
831motion picture or video equipment and sound recording equipment
832unless the building or structural component is so closely
833related to the motion picture or video equipment and sound
834recording equipment that it houses or supports that the building
835or structural component can be expected to be replaced when the
836motion picture or video equipment and sound recording equipment
837are replaced. Heating and air-conditioning systems are not
838motion picture or video equipment and sound recording equipment
839unless the sole justification for their installation is to meet
840the requirements of the production activities, even though the
841system may provide incidental comfort to employees or serve, to
842an insubstantial degree, nonproduction activities.
843     b.  "Production activities" means activities directed
844toward the preparation of a:
845     (I)  Master tape or master record embodying sound; or
846     (II)  Motion picture or television production which is
847produced for theatrical, commercial, advertising, or educational
848purposes and utilizes live or animated actions or a combination
849of live and animated actions. The motion picture or television
850production shall be commercially produced for sale or for
851showing on screens or broadcasting on television and may be on
852film or video tape.
853     (g)  Building materials used in the rehabilitation of real
854property located in an enterprise zone.-
855     1.  Building materials used in the rehabilitation of real
856property located in an enterprise zone are exempt from the tax
857imposed by this chapter upon an affirmative showing to the
858satisfaction of the department that the items have been used for
859the rehabilitation of real property located in an enterprise
860zone. Except as provided in subparagraph 2., this exemption
861inures to the owner, lessee, or lessor at the time the real
862property is rehabilitated, but only through a refund of
863previously paid taxes. To receive a refund pursuant to this
864paragraph, the owner, lessee, or lessor of the rehabilitated
865real property must file an application under oath with the
866governing body or enterprise zone development agency having
867jurisdiction over the enterprise zone where the business is
868located, as applicable. A single application for a refund may be
869submitted for multiple, contiguous parcels that were part of a
870single parcel that was divided as part of the rehabilitation of
871the property. All other requirements of this paragraph apply to
872each parcel on an individual basis. The application must
873include:
874     a.  The name and address of the person claiming the refund.
875     b.  An address and assessment roll parcel number of the
876rehabilitated real property for which a refund of previously
877paid taxes is being sought.
878     c.  A description of the improvements made to accomplish
879the rehabilitation of the real property.
880     d.  A copy of a valid building permit issued by the county
881or municipal building department for the rehabilitation of the
882real property.
883     e.  A sworn statement, under penalty of perjury, from the
884general contractor licensed in this state with whom the
885applicant contracted to make the improvements necessary to
886rehabilitate the real property, which lists the building
887materials used to rehabilitate the real property, the actual
888cost of the building materials, and the amount of sales tax paid
889in this state on the building materials. If a general contractor
890was not used, the applicant, not a general contractor, shall
891make the sworn statement required by this sub-subparagraph.
892Copies of the invoices that evidence the purchase of the
893building materials used in the rehabilitation and the payment of
894sales tax on the building materials must be attached to the
895sworn statement provided by the general contractor or by the
896applicant. Unless the actual cost of building materials used in
897the rehabilitation of real property and the payment of sales
898taxes is documented by a general contractor or by the applicant
899in this manner, the cost of the building materials is deemed to
900be an amount equal to 40 percent of the increase in assessed
901value for ad valorem tax purposes.
902     f.  The identifying number assigned pursuant to s. 290.0065
903to the enterprise zone in which the rehabilitated real property
904is located.
905     g.  A certification by the local building code inspector
906that the improvements necessary to rehabilitate the real
907property are substantially completed.
908     h.  A statement of whether the business is a small business
909as defined by s. 288.703.
910     i.  If applicable, the name and address of each permanent
911employee of the business, including, for each employee who is a
912resident of an enterprise zone, the identifying number assigned
913pursuant to s. 290.0065 to the enterprise zone in which the
914employee resides.
915     2.  This exemption inures to a municipality, county, other
916governmental unit or agency, or nonprofit community-based
917organization through a refund of previously paid taxes if the
918building materials used in the rehabilitation are paid for from
919the funds of a community development block grant, State Housing
920Initiatives Partnership Program, or similar grant or loan
921program. To receive a refund, a municipality, county, other
922governmental unit or agency, or nonprofit community-based
923organization must file an application that includes the same
924information required in subparagraph 1. In addition, the
925application must include a sworn statement signed by the chief
926executive officer of the municipality, county, other
927governmental unit or agency, or nonprofit community-based
928organization seeking a refund which states that the building
929materials for which a refund is sought were funded by a
930community development block grant, State Housing Initiatives
931Partnership Program, or similar grant or loan program.
932     3.  Within 10 working days after receipt of an application,
933the governing body or enterprise zone development agency shall
934review the application to determine if it contains all the
935information required by subparagraph 1. or subparagraph 2. and
936meets the criteria set out in this paragraph. The governing body
937or agency shall certify all applications that contain the
938required information and are eligible to receive a refund. If
939applicable, the governing body or agency shall also certify if
94020 percent of the employees of the business are residents of an
941enterprise zone, excluding temporary and part-time employees.
942The certification must be in writing, and a copy of the
943certification shall be transmitted to the executive director of
944the department. The applicant is responsible for forwarding a
945certified application to the department within the time
946specified in subparagraph 4.
947     4.  An application for a refund must be submitted to the
948department within 6 months after the rehabilitation of the
949property is deemed to be substantially completed by the local
950building code inspector or by November 1 after the rehabilitated
951property is first subject to assessment.
952     5.  Only one exemption through a refund of previously paid
953taxes for the rehabilitation of real property is permitted for
954any single parcel of property unless there is a change in
955ownership, a new lessor, or a new lessee of the real property. A
956refund may not be granted unless the amount to be refunded
957exceeds $500. A refund may not exceed the lesser of 97 percent
958of the Florida sales or use tax paid on the cost of the building
959materials used in the rehabilitation of the real property as
960determined pursuant to sub-subparagraph 1.e. or $5,000, or, if
961at least 20 percent of the employees of the business are
962residents of an enterprise zone, excluding temporary and part-
963time employees, the amount of refund may not exceed the lesser
964of 97 percent of the sales tax paid on the cost of the building
965materials or $10,000. A refund shall be made within 30 days
966after formal approval by the department of the application for
967the refund.
968     6.  The department shall adopt rules governing the manner
969and form of refund applications and may establish guidelines as
970to the requisites for an affirmative showing of qualification
971for exemption under this paragraph.
972     7.  The department shall deduct an amount equal to 10
973percent of each refund granted under this paragraph from the
974amount transferred into the Local Government Half-cent Sales Tax
975Clearing Trust Fund pursuant to s. 212.20 for the county area in
976which the rehabilitated real property is located and shall
977transfer that amount to the General Revenue Fund.
978     8.  For the purposes of the exemption provided in this
979paragraph, the term:
980     a.  "Building materials" means tangible personal property
981that becomes a component part of improvements to real property.
982     b.  "Real property" has the same meaning as provided in s.
983192.001(12), except that the term does not include a condominium
984parcel or condominium property as defined in s. 718.103.
985     c.  "Rehabilitation of real property" means the
986reconstruction, renovation, restoration, rehabilitation,
987construction, or expansion of improvements to real property.
988     d.  "Substantially completed" has the same meaning as
989provided in s. 192.042(1).
990     9.  This paragraph expires on the date specified in s.
991290.016 for the expiration of the Florida Enterprise Zone Act.
992     (h)  Business property used in an enterprise zone.-
993     1.  Business property purchased for use by businesses
994located in an enterprise zone which is subsequently used in an
995enterprise zone shall be exempt from the tax imposed by this
996chapter. This exemption inures to the business only through a
997refund of previously paid taxes. A refund shall be authorized
998upon an affirmative showing by the taxpayer to the satisfaction
999of the department that the requirements of this paragraph have
1000been met.
1001     2.  To receive a refund, the business must file under oath
1002with the governing body or enterprise zone development agency
1003having jurisdiction over the enterprise zone where the business
1004is located, as applicable, an application which includes:
1005     a.  The name and address of the business claiming the
1006refund.
1007     b.  The identifying number assigned pursuant to s. 290.0065
1008to the enterprise zone in which the business is located.
1009     c.  A specific description of the property for which a
1010refund is sought, including its serial number or other permanent
1011identification number.
1012     d.  The location of the property.
1013     e.  The sales invoice or other proof of purchase of the
1014property, showing the amount of sales tax paid, the date of
1015purchase, and the name and address of the sales tax dealer from
1016whom the property was purchased.
1017     f.  Whether the business is a small business as defined by
1018s. 288.703.
1019     g.  If applicable, the name and address of each permanent
1020employee of the business, including, for each employee who is a
1021resident of an enterprise zone, the identifying number assigned
1022pursuant to s. 290.0065 to the enterprise zone in which the
1023employee resides.
1024     3.  Within 10 working days after receipt of an application,
1025the governing body or enterprise zone development agency shall
1026review the application to determine if it contains all the
1027information required pursuant to subparagraph 2. and meets the
1028criteria set out in this paragraph. The governing body or agency
1029shall certify all applications that contain the information
1030required pursuant to subparagraph 2. and meet the criteria set
1031out in this paragraph as eligible to receive a refund. If
1032applicable, the governing body or agency shall also certify if
103320 percent of the employees of the business are residents of an
1034enterprise zone, excluding temporary and part-time employees.
1035The certification shall be in writing, and a copy of the
1036certification shall be transmitted to the executive director of
1037the Department of Revenue. The business shall be responsible for
1038forwarding a certified application to the department within the
1039time specified in subparagraph 4.
1040     4.  An application for a refund pursuant to this paragraph
1041must be submitted to the department within 6 months after the
1042tax is due on the business property that is purchased.
1043     5.  The amount refunded on purchases of business property
1044under this paragraph shall be the lesser of 97 percent of the
1045sales tax paid on such business property or $5,000, or, if no
1046less than 20 percent of the employees of the business are
1047residents of an enterprise zone, excluding temporary and part-
1048time employees, the amount refunded on purchases of business
1049property under this paragraph shall be the lesser of 97 percent
1050of the sales tax paid on such business property or $10,000. A
1051refund approved pursuant to this paragraph shall be made within
105230 days after formal approval by the department of the
1053application for the refund. A refund may not be granted under
1054this paragraph unless the amount to be refunded exceeds $100 in
1055sales tax paid on purchases made within a 60-day time period.
1056     6.  The department shall adopt rules governing the manner
1057and form of refund applications and may establish guidelines as
1058to the requisites for an affirmative showing of qualification
1059for exemption under this paragraph.
1060     7.  If the department determines that the business property
1061is used outside an enterprise zone within 3 years from the date
1062of purchase, the amount of taxes refunded to the business
1063purchasing such business property shall immediately be due and
1064payable to the department by the business, together with the
1065appropriate interest and penalty, computed from the date of
1066purchase, in the manner provided by this chapter.
1067Notwithstanding this subparagraph, business property used
1068exclusively in:
1069     a.  Licensed commercial fishing vessels,
1070     b.  Fishing guide boats, or
1071     c.  Ecotourism guide boats
1072
1073that leave and return to a fixed location within an area
1074designated under s. 379.2353, Florida Statutes 2010, are
1075eligible for the exemption provided under this paragraph if all
1076requirements of this paragraph are met. Such vessels and boats
1077must be owned by a business that is eligible to receive the
1078exemption provided under this paragraph. This exemption does not
1079apply to the purchase of a vessel or boat.
1080     8.  The department shall deduct an amount equal to 10
1081percent of each refund granted under this paragraph from the
1082amount transferred into the Local Government Half-cent Sales Tax
1083Clearing Trust Fund pursuant to s. 212.20 for the county area in
1084which the business property is located and shall transfer that
1085amount to the General Revenue Fund.
1086     9.  For the purposes of this exemption, "business property"
1087means new or used property defined as "recovery property" in s.
1088168(c) of the Internal Revenue Code of 1954, as amended, except:
1089     a.  Property classified as 3-year property under s.
1090168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
1091     b.  Industrial machinery and equipment as defined in sub-
1092subparagraph (b)6.a. and eligible for exemption under paragraph
1093(b);
1094     c.  Building materials as defined in sub-subparagraph
1095(g)8.a.; and
1096     d.  Business property having a sales price of under $5,000
1097per unit.
1098     10.  This paragraph expires on the date specified in s.
1099290.016 for the expiration of the Florida Enterprise Zone Act.
1100     (i)  Aircraft modification services.-There shall be exempt
1101from the tax imposed by this chapter all charges for aircraft
1102modification services, including parts and equipment furnished
1103or installed in connection therewith, performed under authority
1104of a supplemental type certificate issued by the Federal
1105Aviation Administration.
1106     (j)  Machinery and equipment used in semiconductor,
1107defense, or space technology production.-
1108     1.a.  Industrial machinery and equipment used in
1109semiconductor technology facilities certified under subparagraph
11105. to manufacture, process, compound, or produce semiconductor
1111technology products for sale or for use by these facilities are
1112exempt from the tax imposed by this chapter. For purposes of
1113this paragraph, industrial machinery and equipment includes
1114molds, dies, machine tooling, other appurtenances or accessories
1115to machinery and equipment, testing equipment, test beds,
1116computers, and software, whether purchased or self-fabricated,
1117and, if self-fabricated, includes materials and labor for
1118design, fabrication, and assembly.
1119     b.  Industrial machinery and equipment used in defense or
1120space technology facilities certified under subparagraph 5. to
1121design, manufacture, assemble, process, compound, or produce
1122defense technology products or space technology products for
1123sale or for use by these facilities are exempt from the tax
1124imposed by this chapter.
1125     2.  Building materials purchased for use in manufacturing
1126or expanding clean rooms in semiconductor-manufacturing
1127facilities are exempt from the tax imposed by this chapter.
1128     3.  In addition to meeting the criteria mandated by
1129subparagraph 1. or subparagraph 2., a business must be certified
1130by the Department of Economic Opportunity in order to qualify
1131for exemption under this paragraph.
1132     4.  For items purchased tax-exempt pursuant to this
1133paragraph, possession of a written certification from the
1134purchaser, certifying the purchaser's entitlement to the
1135exemption, relieves the seller of the responsibility of
1136collecting the tax on the sale of such items, and the department
1137shall look solely to the purchaser for recovery of the tax if it
1138determines that the purchaser was not entitled to the exemption.
1139     5.a.  To be eligible to receive the exemption provided by
1140subparagraph 1. or subparagraph 2., a qualifying business entity
1141shall initially apply to Enterprise Florida, Inc. The original
1142certification is valid for a period of 2 years. In lieu of
1143submitting a new application, the original certification may be
1144renewed biennially by submitting to the Department of Economic
1145Opportunity a statement, certified under oath, that there has
1146not been a material change in the conditions or circumstances
1147entitling the business entity to the original certification. The
1148initial application and the certification renewal statement
1149shall be developed by the Department of Economic Opportunity.
1150     b.  The Division of Strategic Business Development of the
1151Department of Economic Opportunity shall review each submitted
1152initial application and determine whether or not the application
1153is complete within 5 working days. Once complete, the division
1154shall, within 10 working days, evaluate the application and
1155recommend approval or disapproval to the Department of Economic
1156Opportunity.
1157     c.  Upon receipt of the initial application and
1158recommendation from the division or upon receipt of a
1159certification renewal statement, the Department of Economic
1160Opportunity shall certify within 5 working days those applicants
1161who are found to meet the requirements of this section and
1162notify the applicant of the original certification or
1163certification renewal. If the Department of Economic Opportunity
1164finds that the applicant does not meet the requirements, it
1165shall notify the applicant and Enterprise Florida, Inc., within
116610 working days that the application for certification has been
1167denied and the reasons for denial. The Department of Economic
1168Opportunity has final approval authority for certification under
1169this section.
1170     d.  The initial application and certification renewal
1171statement must indicate, for program evaluation purposes only,
1172the average number of full-time equivalent employees at the
1173facility over the preceding calendar year, the average wage and
1174benefits paid to those employees over the preceding calendar
1175year, the total investment made in real and tangible personal
1176property over the preceding calendar year, and the total value
1177of tax-exempt purchases and taxes exempted during the previous
1178year. The department shall assist the Department of Economic
1179Opportunity in evaluating and verifying information provided in
1180the application for exemption.
1181     e.  The Department of Economic Opportunity may use the
1182information reported on the initial application and
1183certification renewal statement for evaluation purposes only.
1184     6.  A business certified to receive this exemption may
1185elect to designate one or more state universities or community
1186colleges as recipients of up to 100 percent of the amount of the
1187exemption. To receive these funds, the institution must agree to
1188match the funds with equivalent cash, programs, services, or
1189other in-kind support on a one-to-one basis for research and
1190development projects requested by the certified business. The
1191rights to any patents, royalties, or real or intellectual
1192property must be vested in the business unless otherwise agreed
1193to by the business and the university or community college.
1194     7.  As used in this paragraph, the term:
1195     a.  "Semiconductor technology products" means raw
1196semiconductor wafers or semiconductor thin films that are
1197transformed into semiconductor memory or logic wafers, including
1198wafers containing mixed memory and logic circuits; related
1199assembly and test operations; active-matrix flat panel displays;
1200semiconductor chips; semiconductor lasers; optoelectronic
1201elements; and related semiconductor technology products as
1202determined by the Department of Economic Opportunity.
1203     b.  "Clean rooms" means manufacturing facilities enclosed
1204in a manner that meets the clean manufacturing requirements
1205necessary for high-technology semiconductor-manufacturing
1206environments.
1207     c.  "Defense technology products" means products that have
1208a military application, including, but not limited to, weapons,
1209weapons systems, guidance systems, surveillance systems,
1210communications or information systems, munitions, aircraft,
1211vessels, or boats, or components thereof, which are intended for
1212military use and manufactured in performance of a contract with
1213the United States Department of Defense or the military branch
1214of a recognized foreign government or a subcontract thereunder
1215which relates to matters of national defense.
1216     d.  "Space technology products" means products that are
1217specifically designed or manufactured for application in space
1218activities, including, but not limited to, space launch
1219vehicles, space flight vehicles, missiles, satellites or
1220research payloads, avionics, and associated control systems and
1221processing systems and components of any of the foregoing. The
1222term does not include products that are designed or manufactured
1223for general commercial aviation or other uses even though those
1224products may also serve an incidental use in space applications.
1225     (k)  Samples.-Paint color card samples, flooring and wall
1226samples, fabric swatch samples, window covering samples, and
1227similar samples, when such samples serve no useful purpose other
1228than as a comparison of color, texture, or design; are provided
1229by the manufacturer to a dealer or ultimate consumer for no
1230charge; and are given away by the dealer to the ultimate
1231consumer for no charge, are exempt.
1232     (l)  Growth enhancers or performance enhancers for cattle.-
1233There is exempt from the tax imposed by this chapter the sale of
1234performance-enhancing or growth-enhancing products for cattle.
1235     (m)  Educational materials purchased by certain child care
1236facilities.-Educational materials, such as glue, paper, paints,
1237crayons, unique craft items, scissors, books, and educational
1238toys, purchased by a child care facility that meets the
1239standards delineated in s. 402.305, is licensed under s.
1240402.308, holds a current Gold Seal Quality Care designation
1241pursuant to s. 402.281, and provides basic health insurance to
1242all employees are exempt from the taxes imposed by this chapter.
1243For purposes of this paragraph, the term "basic health
1244insurance" shall be defined and promulgated in rules developed
1245jointly by the Department of Children and Family Services, the
1246Agency for Health Care Administration, and the Financial
1247Services Commission.
1248     (n)  Materials for construction of single-family homes in
1249certain areas.-
1250     1.  As used in this paragraph, the term:
1251     a.  "Building materials" means tangible personal property
1252that becomes a component part of a qualified home.
1253     b.  "Qualified home" means a single-family home having an
1254appraised value of no more than $160,000 which is located in an
1255enterprise zone, empowerment zone, or Front Porch Florida
1256Community and which is constructed and occupied by the owner
1257thereof for residential purposes.
1258     c.  "Substantially completed" has the same meaning as
1259provided in s. 192.042(1).
1260     2.  Building materials used in the construction of a
1261qualified home and the costs of labor associated with the
1262construction of a qualified home are exempt from the tax imposed
1263by this chapter upon an affirmative showing to the satisfaction
1264of the department that the requirements of this paragraph have
1265been met. This exemption inures to the owner through a refund of
1266previously paid taxes. To receive this refund, the owner must
1267file an application under oath with the department which
1268includes:
1269     a.  The name and address of the owner.
1270     b.  The address and assessment roll parcel number of the
1271home for which a refund is sought.
1272     c.  A copy of the building permit issued for the home.
1273     d.  A certification by the local building code inspector
1274that the home is substantially completed.
1275     e.  A sworn statement, under penalty of perjury, from the
1276general contractor licensed in this state with whom the owner
1277contracted to construct the home, which statement lists the
1278building materials used in the construction of the home and the
1279actual cost thereof, the labor costs associated with such
1280construction, and the amount of sales tax paid on these
1281materials and labor costs. If a general contractor was not used,
1282the owner shall provide this information in a sworn statement,
1283under penalty of perjury. Copies of invoices evidencing payment
1284of sales tax must be attached to the sworn statement.
1285     f.  A sworn statement, under penalty of perjury, from the
1286owner affirming that he or she is occupying the home for
1287residential purposes.
1288     3.  An application for a refund under this paragraph must
1289be submitted to the department within 6 months after the date
1290the home is deemed to be substantially completed by the local
1291building code inspector. Within 30 working days after receipt of
1292the application, the department shall determine if it meets the
1293requirements of this paragraph. A refund approved pursuant to
1294this paragraph shall be made within 30 days after formal
1295approval of the application by the department.
1296     4.  The department shall establish by rule an application
1297form and criteria for establishing eligibility for exemption
1298under this paragraph.
1299     5.  The exemption shall apply to purchases of materials on
1300or after July 1, 2000.
1301     (o)  Building materials in redevelopment projects.-
1302     1.  As used in this paragraph, the term:
1303     a.  "Building materials" means tangible personal property
1304that becomes a component part of a housing project or a mixed-
1305use project.
1306     b.  "Housing project" means the conversion of an existing
1307manufacturing or industrial building to housing units in an
1308urban high-crime area, enterprise zone, empowerment zone, Front
1309Porch Community, designated brownfield area, or urban infill
1310area and in which the developer agrees to set aside at least 20
1311percent of the housing units in the project for low-income and
1312moderate-income persons or the construction in a designated
1313brownfield area of affordable housing for persons described in
1314s. 420.0004(9), (11), (12), or (17) or in s. 159.603(7).
1315     c.  "Mixed-use project" means the conversion of an existing
1316manufacturing or industrial building to mixed-use units that
1317include artists' studios, art and entertainment services, or
1318other compatible uses. A mixed-use project must be located in an
1319urban high-crime area, enterprise zone, empowerment zone, Front
1320Porch Community, designated brownfield area, or urban infill
1321area, and the developer must agree to set aside at least 20
1322percent of the square footage of the project for low-income and
1323moderate-income housing.
1324     d.  "Substantially completed" has the same meaning as
1325provided in s. 192.042(1).
1326     2.  Building materials used in the construction of a
1327housing project or mixed-use project are exempt from the tax
1328imposed by this chapter upon an affirmative showing to the
1329satisfaction of the department that the requirements of this
1330paragraph have been met. This exemption inures to the owner
1331through a refund of previously paid taxes. To receive this
1332refund, the owner must file an application under oath with the
1333department which includes:
1334     a.  The name and address of the owner.
1335     b.  The address and assessment roll parcel number of the
1336project for which a refund is sought.
1337     c.  A copy of the building permit issued for the project.
1338     d.  A certification by the local building code inspector
1339that the project is substantially completed.
1340     e.  A sworn statement, under penalty of perjury, from the
1341general contractor licensed in this state with whom the owner
1342contracted to construct the project, which statement lists the
1343building materials used in the construction of the project and
1344the actual cost thereof, and the amount of sales tax paid on
1345these materials. If a general contractor was not used, the owner
1346shall provide this information in a sworn statement, under
1347penalty of perjury. Copies of invoices evidencing payment of
1348sales tax must be attached to the sworn statement.
1349     3.  An application for a refund under this paragraph must
1350be submitted to the department within 6 months after the date
1351the project is deemed to be substantially completed by the local
1352building code inspector. Within 30 working days after receipt of
1353the application, the department shall determine if it meets the
1354requirements of this paragraph. A refund approved pursuant to
1355this paragraph shall be made within 30 days after formal
1356approval of the application by the department.
1357     4.  The department shall establish by rule an application
1358form and criteria for establishing eligibility for exemption
1359under this paragraph.
1360     5.  The exemption shall apply to purchases of materials on
1361or after July 1, 2000.
1362     (p)  Community contribution tax credit for donations.-
1363     1.  Authorization.-Persons who are registered with the
1364department under s. 212.18 to collect or remit sales or use tax
1365and who make donations to eligible sponsors are eligible for tax
1366credits against their state sales and use tax liabilities as
1367provided in this paragraph:
1368     a.  The credit shall be computed as 50 percent of the
1369person's approved annual community contribution.
1370     b.  The credit shall be granted as a refund against state
1371sales and use taxes reported on returns and remitted in the 12
1372months preceding the date of application to the department for
1373the credit as required in sub-subparagraph 3.c. If the annual
1374credit is not fully used through such refund because of
1375insufficient tax payments during the applicable 12-month period,
1376the unused amount may be included in an application for a refund
1377made pursuant to sub-subparagraph 3.c. in subsequent years
1378against the total tax payments made for such year. Carryover
1379credits may be applied for a 3-year period without regard to any
1380time limitation that would otherwise apply under s. 215.26.
1381     c.  A person may not receive more than $200,000 in annual
1382tax credits for all approved community contributions made in any
1383one year.
1384     d.  All proposals for the granting of the tax credit
1385require the prior approval of the Department of Economic
1386Opportunity.
1387     e.  The total amount of tax credits which may be granted
1388for all programs approved under this paragraph, s. 220.183, and
1389s. 624.5105 is $10.5 million annually for projects that provide
1390homeownership opportunities for low-income or very-low-income
1391households as defined in s. 420.9071(19) and (28) and $3.5
1392million annually for all other projects.
1393     f.  A person who is eligible to receive the credit provided
1394for in this paragraph, s. 220.183, or s. 624.5105 may receive
1395the credit only under the one section of the person's choice.
1396     2.  Eligibility requirements.-
1397     a.  A community contribution by a person must be in the
1398following form:
1399     (I)  Cash or other liquid assets;
1400     (II)  Real property;
1401     (III)  Goods or inventory; or
1402     (IV)  Other physical resources as identified by the
1403Department of Economic Opportunity.
1404     b.  All community contributions must be reserved
1405exclusively for use in a project. As used in this sub-
1406subparagraph, the term "project" means any activity undertaken
1407by an eligible sponsor which is designed to construct, improve,
1408or substantially rehabilitate housing that is affordable to low-
1409income or very-low-income households as defined in s.
1410420.9071(19) and (28); designed to provide commercial,
1411industrial, or public resources and facilities; or designed to
1412improve entrepreneurial and job-development opportunities for
1413low-income persons. A project may be the investment necessary to
1414increase access to high-speed broadband capability in rural
1415communities with enterprise zones, including projects that
1416result in improvements to communications assets that are owned
1417by a business. A project may include the provision of museum
1418educational programs and materials that are directly related to
1419any project approved between January 1, 1996, and December 31,
14201999, and located in an enterprise zone designated pursuant to
1421s. 290.0065. This paragraph does not preclude projects that
1422propose to construct or rehabilitate housing for low-income or
1423very-low-income households on scattered sites. With respect to
1424housing, contributions may be used to pay the following eligible
1425low-income and very-low-income housing-related activities:
1426     (I)  Project development impact and management fees for
1427low-income or very-low-income housing projects;
1428     (II)  Down payment and closing costs for eligible persons,
1429as defined in s. 420.9071(19) and (28);
1430     (III)  Administrative costs, including housing counseling
1431and marketing fees, not to exceed 10 percent of the community
1432contribution, directly related to low-income or very-low-income
1433projects; and
1434     (IV)  Removal of liens recorded against residential
1435property by municipal, county, or special district local
1436governments when satisfaction of the lien is a necessary
1437precedent to the transfer of the property to an eligible person,
1438as defined in s. 420.9071(19) and (28), for the purpose of
1439promoting home ownership. Contributions for lien removal must be
1440received from a nonrelated third party.
1441     c.  The project must be undertaken by an "eligible
1442sponsor," which includes:
1443     (I)  A community action program;
1444     (II)  A nonprofit community-based development organization
1445whose mission is the provision of housing for low-income or
1446very-low-income households or increasing entrepreneurial and
1447job-development opportunities for low-income persons;
1448     (III)  A neighborhood housing services corporation;
1449     (IV)  A local housing authority created under chapter 421;
1450     (V)  A community redevelopment agency created under s.
1451163.356;
1452     (VI)  A historic preservation district agency or
1453organization;
1454     (VII)  A regional workforce board;
1455     (VIII)  A direct-support organization as provided in s.
14561009.983;
1457     (IX)  An enterprise zone development agency created under
1458s. 290.0056;
1459     (X)  A community-based organization incorporated under
1460chapter 617 which is recognized as educational, charitable, or
1461scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
1462and whose bylaws and articles of incorporation include
1463affordable housing, economic development, or community
1464development as the primary mission of the corporation;
1465     (XI)  Units of local government;
1466     (XII)  Units of state government; or
1467     (XIII)  Any other agency that the Department of Economic
1468Opportunity designates by rule.
1469
1470In no event may a contributing person have a financial interest
1471in the eligible sponsor.
1472     d.  The project must be located in an area designated an
1473enterprise zone or a Front Porch Florida Community, unless the
1474project increases access to high-speed broadband capability for
1475rural communities with enterprise zones but is physically
1476located outside the designated rural zone boundaries. Any
1477project designed to construct or rehabilitate housing for low-
1478income or very-low-income households as defined in s.
1479420.9071(19) and (28) is exempt from the area requirement of
1480this sub-subparagraph.
1481     e.(I)  If, during the first 10 business days of the state
1482fiscal year, eligible tax credit applications for projects that
1483provide homeownership opportunities for low-income or very-low-
1484income households as defined in s. 420.9071(19) and (28) are
1485received for less than the annual tax credits available for
1486those projects, the Department of Economic Opportunity shall
1487grant tax credits for those applications and shall grant
1488remaining tax credits on a first-come, first-served basis for
1489any subsequent eligible applications received before the end of
1490the state fiscal year. If, during the first 10 business days of
1491the state fiscal year, eligible tax credit applications for
1492projects that provide homeownership opportunities for low-income
1493or very-low-income households as defined in s. 420.9071(19) and
1494(28) are received for more than the annual tax credits available
1495for those projects, the Department of Economic Opportunity shall
1496grant the tax credits for those applications as follows:
1497     (A)  If tax credit applications submitted for approved
1498projects of an eligible sponsor do not exceed $200,000 in total,
1499the credits shall be granted in full if the tax credit
1500applications are approved.
1501     (B)  If tax credit applications submitted for approved
1502projects of an eligible sponsor exceed $200,000 in total, the
1503amount of tax credits granted pursuant to sub-sub-sub-
1504subparagraph (A) shall be subtracted from the amount of
1505available tax credits, and the remaining credits shall be
1506granted to each approved tax credit application on a pro rata
1507basis.
1508     (II)  If, during the first 10 business days of the state
1509fiscal year, eligible tax credit applications for projects other
1510than those that provide homeownership opportunities for low-
1511income or very-low-income households as defined in s.
1512420.9071(19) and (28) are received for less than the annual tax
1513credits available for those projects, the Department of Economic
1514Opportunity shall grant tax credits for those applications and
1515shall grant remaining tax credits on a first-come, first-served
1516basis for any subsequent eligible applications received before
1517the end of the state fiscal year. If, during the first 10
1518business days of the state fiscal year, eligible tax credit
1519applications for projects other than those that provide
1520homeownership opportunities for low-income or very-low-income
1521households as defined in s. 420.9071(19) and (28) are received
1522for more than the annual tax credits available for those
1523projects, the Department of Economic Opportunity shall grant the
1524tax credits for those applications on a pro rata basis.
1525     3.  Application requirements.-
1526     a.  Any eligible sponsor seeking to participate in this
1527program must submit a proposal to the Department of Economic
1528Opportunity which sets forth the name of the sponsor, a
1529description of the project, and the area in which the project is
1530located, together with such supporting information as is
1531prescribed by rule. The proposal must also contain a resolution
1532from the local governmental unit in which the project is located
1533certifying that the project is consistent with local plans and
1534regulations.
1535     b.  Any person seeking to participate in this program must
1536submit an application for tax credit to the Department of
1537Economic Opportunity which sets forth the name of the sponsor, a
1538description of the project, and the type, value, and purpose of
1539the contribution. The sponsor shall verify the terms of the
1540application and indicate its receipt of the contribution, which
1541verification must be in writing and accompany the application
1542for tax credit. The person must submit a separate tax credit
1543application to the Department of Economic Opportunity for each
1544individual contribution that it makes to each individual
1545project.
1546     c.  Any person who has received notification from the
1547Department of Economic Opportunity that a tax credit has been
1548approved must apply to the department to receive the refund.
1549Application must be made on the form prescribed for claiming
1550refunds of sales and use taxes and be accompanied by a copy of
1551the notification. A person may submit only one application for
1552refund to the department within any 12-month period.
1553     4.  Administration.-
1554     a.  The Department of Economic Opportunity may adopt rules
1555pursuant to ss. 120.536(1) and 120.54 necessary to administer
1556this paragraph, including rules for the approval or disapproval
1557of proposals by a person.
1558     b.  The decision of the Department of Economic Opportunity
1559must be in writing, and, if approved, the notification shall
1560state the maximum credit allowable to the person. Upon approval,
1561the Department of Economic Opportunity shall transmit a copy of
1562the decision to the Department of Revenue.
1563     c.  The Department of Economic Opportunity shall
1564periodically monitor all projects in a manner consistent with
1565available resources to ensure that resources are used in
1566accordance with this paragraph; however, each project must be
1567reviewed at least once every 2 years.
1568     d.  The Department of Economic Opportunity shall, in
1569consultation with the statewide and regional housing and
1570financial intermediaries, market the availability of the
1571community contribution tax credit program to community-based
1572organizations.
1573     5.  Expiration.-This paragraph expires June 30, 2015;
1574however, any accrued credit carryover that is unused on that
1575date may be used until the expiration of the 3-year carryover
1576period for such credit.
1577     (q)  Entertainment industry tax credit; authorization;
1578eligibility for credits.-The credits against the state sales tax
1579authorized pursuant to s. 288.1254 shall be deducted from any
1580sales and use tax remitted by the dealer to the department by
1581electronic funds transfer and may only be deducted on a sales
1582and use tax return initiated through electronic data
1583interchange. The dealer shall separately state the credit on the
1584electronic return. The net amount of tax due and payable must be
1585remitted by electronic funds transfer. If the credit for the
1586qualified expenditures is larger than the amount owed on the
1587sales and use tax return that is eligible for the credit, the
1588unused amount of the credit may be carried forward to a
1589succeeding reporting period as provided in s. 288.1254(4)(e). A
1590dealer may only obtain a credit using the method described in
1591this subparagraph. A dealer is not authorized to obtain a credit
1592by applying for a refund.
1593     (6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.-
1594     (a)  There are also exempt from the tax imposed by this
1595chapter sales made to the United States Government, a state, or
1596any county, municipality, or political subdivision of a state
1597when payment is made directly to the dealer by the governmental
1598entity. This exemption shall not inure to any transaction
1599otherwise taxable under this chapter when payment is made by a
1600government employee by any means, including, but not limited to,
1601cash, check, or credit card when that employee is subsequently
1602reimbursed by the governmental entity. This exemption does not
1603include sales, rental, use, consumption, or storage for use in
1604any political subdivision or municipality in this state of
1605machines and equipment and parts and accessories therefor used
1606in the generation, transmission, or distribution of electrical
1607energy by systems owned and operated by a political subdivision
1608in this state for transmission or distribution expansion.
1609Likewise exempt are charges for services rendered by radio and
1610television stations, including line charges, talent fees, or
1611license fees and charges for films, videotapes, and
1612transcriptions used in producing radio or television broadcasts.
1613The exemption provided in this subsection does not include
1614sales, rental, use, consumption, or storage for use in any
1615political subdivision or municipality in this state of machines
1616and equipment and parts and accessories therefor used in
1617providing two-way telecommunications services to the public for
1618hire by the use of a telecommunications facility, as defined in
1619s. 364.02(14), and for which a certificate is required under
1620chapter 364, which facility is owned and operated by any county,
1621municipality, or other political subdivision of the state. Any
1622immunity of any political subdivision of the state or other
1623entity of local government from taxation of the property used to
1624provide telecommunication services that is taxed as a result of
1625this section is hereby waived. However, the exemption provided
1626in this subsection includes transactions taxable under this
1627chapter which are for use by the operator of a public-use
1628airport, as defined in s. 332.004, in providing such
1629telecommunications services for the airport or its tenants,
1630concessionaires, or licensees, or which are for use by a public
1631hospital for the provision of such telecommunications services.
1632     (b)  The exemption provided under this subsection does not
1633include sales of tangible personal property made to contractors
1634employed directly to or as agents of any such government or
1635political subdivision when such tangible personal property goes
1636into or becomes a part of public works owned by such government
1637or political subdivision. A determination of whether a
1638particular transaction is properly characterized as an exempt
1639sale to a government entity or a taxable sale to a contractor
1640shall be based upon the substance of the transaction rather than
1641the form in which the transaction is cast. However, for sales of
1642tangible personal property that go into or become a part of
1643public works owned by a governmental entity, other than the
1644Federal Government, a governmental entity claiming the exemption
1645provided under this subsection shall certify to the dealer and
1646the contractor the entity's claim to the exemption by providing
1647the dealer and the contractor a certificate of entitlement to
1648the exemption for such sales. If the department later determines
1649that such sales, in which the governmental entity provided the
1650dealer and the contractor with a certificate of entitlement to
1651the exemption, were not exempt sales to the governmental entity,
1652the governmental entity shall be liable for any tax, penalty,
1653and interest determined to be owed on such transactions.
1654Possession by a dealer or contractor of a certificate of
1655entitlement to the exemption from the governmental entity
1656relieves the dealer from the responsibility of collecting tax on
1657the sale and the contractor for any liability for tax, penalty,
1658or interest related to the sale, and the department shall look
1659solely to the governmental entity for recovery of tax, penalty,
1660and interest if the department determines that the transaction
1661was not an exempt sale to the governmental entity. The
1662governmental entity may not transfer liability for such tax,
1663penalty, and interest to another party by contract or agreement.
1664     (c)  The department shall adopt rules for determining
1665whether a particular transaction is properly characterized as an
1666exempt sale to a governmental entity or a taxable sale to a
1667contractor which give special consideration to factors that
1668govern the status of the tangible personal property before being
1669affixed to real property. In developing such rules, assumption
1670of the risk of damage or loss is of paramount consideration in
1671the determination. The department shall also adopt, by rule, a
1672certificate of entitlement to exemption for use as provided in
1673paragraph (b). The certificate shall require the governmental
1674entity to affirm that it will comply with the requirements of
1675this subsection and the rules adopted under paragraph (b) in
1676order to qualify for the exemption and that it acknowledges its
1677liability for any tax, penalty, or interest later determined by
1678the department to be owed on such transactions.
1679     (3)(7)  MISCELLANEOUS EXEMPTIONS.-Exemptions provided to
1680any entity by this chapter do not inure to any transaction that
1681is otherwise taxable under this chapter when payment is made by
1682a representative or employee of the entity by any means,
1683including, but not limited to, cash, check, or credit card, even
1684when that representative or employee is subsequently reimbursed
1685by the entity. In addition, exemptions provided to any entity by
1686this subsection do not inure to any transaction that is
1687otherwise taxable under this chapter unless the entity has
1688obtained a sales tax exemption certificate from the department
1689or the entity obtains or provides other documentation as
1690required by the department. Eligible purchases or leases made
1691with such a certificate must be in strict compliance with this
1692subsection and departmental rules, and any person who makes an
1693exempt purchase with a certificate that is not in strict
1694compliance with this subsection and the rules is liable for and
1695shall pay the tax. The department may adopt rules to administer
1696this subsection.
1697     (a)  Artificial commemorative flowers.-Exempt from the tax
1698imposed by this chapter is the sale of artificial commemorative
1699flowers by bona fide nationally chartered veterans'
1700organizations.
1701     (b)  Boiler fuels.-When purchased for use as a combustible
1702fuel, purchases of natural gas, residual oil, recycled oil,
1703waste oil, solid waste material, coal, sulfur, wood, wood
1704residues or wood bark used in an industrial manufacturing,
1705processing, compounding, or production process at a fixed
1706location in this state are exempt from the taxes imposed by this
1707chapter; however, such exemption shall not be allowed unless the
1708purchaser signs a certificate stating that the fuel to be
1709exempted is for the exclusive use designated herein. This
1710exemption does not apply to the use of boiler fuels that are not
1711used in manufacturing, processing, compounding, or producing
1712items of tangible personal property for sale, or to the use of
1713boiler fuels used by any firm subject to regulation by the
1714Division of Hotels and Restaurants of the Department of Business
1715and Professional Regulation.
1716     (c)  Crustacea bait.-Also exempt from the tax imposed by
1717this chapter is the purchase by commercial fishers of bait
1718intended solely for use in the entrapment of Callinectes sapidus
1719and Menippe mercenaria.
1720     (d)  Feeds.-Feeds for poultry, ostriches, and livestock,
1721including racehorses and dairy cows, are exempt.
1722     (e)  Film rentals.-Film rentals are exempt when an
1723admission is charged for viewing such film, and license fees and
1724direct charges for films, videotapes, and transcriptions used by
1725television or radio stations or networks are exempt.
1726     (f)  Flags.-Also exempt are sales of the flag of the United
1727States and the official state flag of Florida.
1728     (g)  Florida Retired Educators Association and its local
1729chapters.-Also exempt from payment of the tax imposed by this
1730chapter are purchases of office supplies, equipment, and
1731publications made by the Florida Retired Educators Association
1732and its local chapters.
1733     (a)(h)  Guide dogs for the blind.-Also exempt are the sale
1734or rental of guide dogs for the blind, commonly referred to as
1735"seeing-eye dogs," and the sale of food or other items for such
1736guide dogs.
1737     1.  The department shall issue a consumer's certificate of
1738exemption to any blind person who holds an identification card
1739as provided for in s. 413.091 and who either owns or rents, or
1740contemplates the ownership or rental of, a guide dog for the
1741blind. The consumer's certificate of exemption shall be issued
1742without charge and shall be of such size as to be capable of
1743being carried in a wallet or billfold.
1744     2.  The department shall make such rules concerning items
1745exempt from tax under the provisions of this paragraph as may be
1746necessary to provide that any person authorized to have a
1747consumer's certificate of exemption need only present such a
1748certificate at the time of paying for exempt goods and shall not
1749be required to pay any tax thereon.
1750     (b)(i)  Hospital meals and rooms.-Also exempt from payment
1751of the tax imposed by this chapter on rentals and meals are
1752patients and inmates of any hospital or other physical plant or
1753facility designed and operated primarily for the care of persons
1754who are ill, aged, infirm, mentally or physically incapacitated,
1755or otherwise dependent on special care or attention. Residents
1756of a home for the aged are exempt from payment of taxes on meals
1757provided through the facility. A home for the aged is defined as
1758a facility that is licensed or certified in part or in whole
1759under chapter 400, chapter 429, or chapter 651, or that is
1760financed by a mortgage loan made or insured by the United States
1761Department of Housing and Urban Development under s. 202, s. 202
1762with a s. 8 subsidy, s. 221(d)(3) or (4), s. 232, or s. 236 of
1763the National Housing Act, or other such similar facility
1764designed and operated primarily for the care of the aged.
1765     (c)(j)  Household fuels.-Also exempt from payment of the
1766tax imposed by this chapter are sales of utilities to
1767residential households or owners of residential models in this
1768state by utility companies who pay the gross receipts tax
1769imposed under s. 203.01, and sales of fuel to residential
1770households or owners of residential models, including oil,
1771kerosene, liquefied petroleum gas, coal, wood, and other fuel
1772products used in the household or residential model for the
1773purposes of heating, cooking, lighting, and refrigeration,
1774regardless of whether such sales of utilities and fuels are
1775separately metered and billed direct to the residents or are
1776metered and billed to the landlord. If any part of the utility
1777or fuel is used for a nonexempt purpose, the entire sale is
1778taxable. The landlord shall provide a separate meter for
1779nonexempt utility or fuel consumption. For the purposes of this
1780paragraph, licensed family day care homes shall also be exempt.
1781     (d)(k)  Meals provided by certain nonprofit organizations.-
1782There is exempt from the tax imposed by this chapter the sale of
1783prepared meals by a nonprofit volunteer organization to
1784handicapped, elderly, or indigent persons when such meals are
1785delivered as a charitable function by the organization to such
1786persons at their places of residence.
1787     (l)  Organizations providing special educational, cultural,
1788recreational, and social benefits to minors.-Also exempt from
1789the tax imposed by this chapter are sales or leases to and sales
1790of donated property by nonprofit organizations which are
1791incorporated pursuant to chapter 617 the primary purpose of
1792which is providing activities that contribute to the development
1793of good character or good sportsmanship, or to the educational
1794or cultural development, of minors. This exemption is extended
1795only to that level of the organization that has a salaried
1796executive officer or an elected nonsalaried executive officer.
1797For the purpose of this paragraph, the term "donated property"
1798means any property transferred to such nonprofit organization
1799for less than 50 percent of its fair market value.
1800     (m)  Religious institutions.-
1801     1.  There are exempt from the tax imposed by this chapter
1802transactions involving sales or leases directly to religious
1803institutions when used in carrying on their customary nonprofit
1804religious activities or sales or leases of tangible personal
1805property by religious institutions having an established
1806physical place for worship at which nonprofit religious services
1807and activities are regularly conducted and carried on.
1808     2.  As used in this paragraph, the term "religious
1809institutions" means churches, synagogues, and established
1810physical places for worship at which nonprofit religious
1811services and activities are regularly conducted and carried on.
1812The term "religious institutions" includes nonprofit
1813corporations the sole purpose of which is to provide free
1814transportation services to church members, their families, and
1815other church attendees. The term "religious institutions" also
1816includes nonprofit state, nonprofit district, or other nonprofit
1817governing or administrative offices the function of which is to
1818assist or regulate the customary activities of religious
1819institutions. The term "religious institutions" also includes
1820any nonprofit corporation that is qualified as nonprofit under
1821s. 501(c)(3) of the Internal Revenue Code of 1986, as amended,
1822and that owns and operates a Florida television station, at
1823least 90 percent of the programming of which station consists of
1824programs of a religious nature and the financial support for
1825which, exclusive of receipts for broadcasting from other
1826nonprofit organizations, is predominantly from contributions
1827from the general public. The term "religious institutions" also
1828includes any nonprofit corporation that is qualified as
1829nonprofit under s. 501(c)(3) of the Internal Revenue Code of
18301986, as amended, the primary activity of which is making and
1831distributing audio recordings of religious scriptures and
1832teachings to blind or visually impaired persons at no charge.
1833The term "religious institutions" also includes any nonprofit
1834corporation that is qualified as nonprofit under s. 501(c)(3) of
1835the Internal Revenue Code of 1986, as amended, the sole or
1836primary function of which is to provide, upon invitation,
1837nonprofit religious services, evangelistic services, religious
1838education, administrative assistance, or missionary assistance
1839for a church, synagogue, or established physical place of
1840worship at which nonprofit religious services and activities are
1841regularly conducted.
1842     (n)  Veterans' organizations.-
1843     1.  There are exempt from the tax imposed by this chapter
1844transactions involving sales or leases to qualified veterans'
1845organizations and their auxiliaries when used in carrying on
1846their customary veterans' organization activities.
1847     2.  As used in this paragraph, the term "veterans'
1848organizations" means nationally chartered or recognized
1849veterans' organizations, including, but not limited to, Florida
1850chapters of the Paralyzed Veterans of America, Catholic War
1851Veterans of the U.S.A., Jewish War Veterans of the U.S.A., and
1852the Disabled American Veterans, Department of Florida, Inc.,
1853which hold current exemptions from federal income tax under s.
1854501(c)(4) or (19) of the Internal Revenue Code of 1986, as
1855amended.
1856     (o)  Schools, colleges, and universities.-Also exempt from
1857the tax imposed by this chapter are sales or leases to state
1858tax-supported schools, colleges, or universities.
1859     (p)  Section 501(c)(3) organizations.-Also exempt from the
1860tax imposed by this chapter are sales or leases to organizations
1861determined by the Internal Revenue Service to be currently
1862exempt from federal income tax pursuant to s. 501(c)(3) of the
1863Internal Revenue Code of 1986, as amended, when such leases or
1864purchases are used in carrying on their customary nonprofit
1865activities.
1866     (q)  Resource recovery equipment.-Also exempt is resource
1867recovery equipment which is owned and operated by or on behalf
1868of any county or municipality, certified by the Department of
1869Environmental Protection under the provisions of s. 403.715.
1870     (e)(r)  School books and school lunches.-This exemption
1871applies to school books used in regularly prescribed courses of
1872study, and to school lunches served in public, parochial, or
1873nonprofit schools operated for and attended by pupils of grades
1874K through 12. Yearbooks, magazines, newspapers, directories,
1875bulletins, and similar publications distributed by such
1876educational institutions to their students are also exempt.
1877School books and food sold or served at community colleges and
1878other institutions of higher learning are taxable.
1879     (s)  Tasting beverages.-Vinous and alcoholic beverages
1880provided by distributors or vendors for the purpose of "wine
1881tasting" and "spirituous beverage tasting" as contemplated under
1882the provisions of ss. 564.06 and 565.12, respectively, are
1883exempt from the tax imposed by this chapter.
1884     (t)  Boats temporarily docked in state.-
1885     1.  Notwithstanding the provisions of chapter 328,
1886pertaining to the registration of vessels, a boat upon which the
1887state sales or use tax has not been paid is exempt from the use
1888tax under this chapter if it enters and remains in this state
1889for a period not to exceed a total of 20 days in any calendar
1890year calculated from the date of first dockage or slippage at a
1891facility, registered with the department, that rents dockage or
1892slippage space in this state. If a boat brought into this state
1893for use under this paragraph is placed in a facility, registered
1894with the department, for repairs, alterations, refitting, or
1895modifications and such repairs, alterations, refitting, or
1896modifications are supported by written documentation, the 20-day
1897period shall be tolled during the time the boat is physically in
1898the care, custody, and control of the repair facility, including
1899the time spent on sea trials conducted by the facility. The 20-
1900day time period may be tolled only once within a calendar year
1901when a boat is placed for the first time that year in the
1902physical care, custody, and control of a registered repair
1903facility; however, the owner may request and the department may
1904grant an additional tolling of the 20-day period for purposes of
1905repairs that arise from a written guarantee given by the
1906registered repair facility, which guarantee covers only those
1907repairs or modifications made during the first tolled period.
1908Within 72 hours after the date upon which the registered repair
1909facility took possession of the boat, the facility must have in
1910its possession, on forms prescribed by the department, an
1911affidavit which states that the boat is under its care, custody,
1912and control and that the owner does not use the boat while in
1913the facility. Upon completion of the repairs, alterations,
1914refitting, or modifications, the registered repair facility
1915must, within 72 hours after the date of release, have in its
1916possession a copy of the release form which shows the date of
1917release and any other information the department requires. The
1918repair facility shall maintain a log that documents all
1919alterations, additions, repairs, and sea trials during the time
1920the boat is under the care, custody, and control of the
1921facility. The affidavit shall be maintained by the registered
1922repair facility as part of its records for as long as required
1923by s. 213.35. When, within 6 months after the date of its
1924purchase, a boat is brought into this state under this
1925paragraph, the 6-month period provided in s. 212.05(1)(a)2. or
1926s. 212.06(8) shall be tolled.
1927     2.  During the period of repairs, alterations, refitting,
1928or modifications and during the 20-day period referred to in
1929subparagraph 1., the boat may be listed for sale, contracted for
1930sale, or sold exclusively by a broker or dealer registered with
1931the department without incurring a use tax under this chapter;
1932however, the sales tax levied under this chapter applies to such
1933sale.
1934     3.  The mere storage of a boat at a registered repair
1935facility does not qualify as a tax-exempt use in this state.
1936     4.  As used in this paragraph, "registered repair facility"
1937means:
1938     a.  A full-service facility that:
1939     (I)  Is located on a navigable body of water;
1940     (II)  Has haulout capability such as a dry dock, travel
1941lift, railway, or similar equipment to service craft under the
1942care, custody, and control of the facility;
1943     (III)  Has adequate piers and storage facilities to provide
1944safe berthing of vessels in its care, custody, and control; and
1945     (IV)  Has necessary shops and equipment to provide repair
1946or warranty work on vessels under the care, custody, and control
1947of the facility;
1948     b.  A marina that:
1949     (I)  Is located on a navigable body of water;
1950     (II)  Has adequate piers and storage facilities to provide
1951safe berthing of vessels in its care, custody, and control; and
1952     (III)  Has necessary shops and equipment to provide repairs
1953or warranty work on vessels; or
1954     c.  A shoreside facility that:
1955     (I)  Is located on a navigable body of water;
1956     (II)  Has adequate piers and storage facilities to provide
1957safe berthing of vessels in its care, custody, and control; and
1958     (III)  Has necessary shops and equipment to provide repairs
1959or warranty work.
1960     (u)  Volunteer fire departments.-Also exempt are
1961firefighting and rescue service equipment and supplies purchased
1962by volunteer fire departments, duly chartered under the Florida
1963Statutes as corporations not for profit.
1964     (v)  Professional services.-
1965     1.  Also exempted are professional, insurance, or personal
1966service transactions that involve sales as inconsequential
1967elements for which no separate charges are made.
1968     2.  The personal service transactions exempted pursuant to
1969subparagraph 1. do not exempt the sale of information services
1970involving the furnishing of printed, mimeographed, or
1971multigraphed matter, or matter duplicating written or printed
1972matter in any other manner, other than professional services and
1973services of employees, agents, or other persons acting in a
1974representative or fiduciary capacity or information services
1975furnished to newspapers and radio and television stations. As
1976used in this subparagraph, the term "information services"
1977includes the services of collecting, compiling, or analyzing
1978information of any kind or nature and furnishing reports thereof
1979to other persons.
1980     3.  This exemption does not apply to any service warranty
1981transaction taxable under s. 212.0506.
1982     4.  This exemption does not apply to any service
1983transaction taxable under s. 212.05(1)(i).
1984     (w)  Certain newspaper, magazine, and newsletter
1985subscriptions, shoppers, and community newspapers.-Likewise
1986exempt are newspaper, magazine, and newsletter subscriptions in
1987which the product is delivered to the customer by mail. Also
1988exempt are free, circulated publications that are published on a
1989regular basis, the content of which is primarily advertising,
1990and that are distributed through the mail, home delivery, or
1991newsstands. The exemption for newspaper, magazine, and
1992newsletter subscriptions which is provided in this paragraph
1993applies only to subscriptions entered into after March 1, 1997.
1994     (x)  Sporting equipment brought into the state.-Sporting
1995equipment brought into Florida, for a period of not more than 4
1996months in any calendar year, used by an athletic team or an
1997individual athlete in a sporting event is exempt from the use
1998tax if such equipment is removed from the state within 7 days
1999after the completion of the event.
2000     (y)  Charter fishing vessels.-The charge for chartering any
2001boat or vessel, with the crew furnished, solely for the purpose
2002of fishing is exempt from the tax imposed under s. 212.04 or s.
2003212.05. This exemption does not apply to any charge to enter or
2004stay upon any "head-boat," party boat, or other boat or vessel.
2005Nothing in this paragraph shall be construed to exempt any boat
2006from sales or use tax upon the purchase thereof except as
2007provided in paragraph (t) and s. 212.05.
2008     (z)  Vending machines sponsored by nonprofit or charitable
2009organizations.-Also exempt are food or drinks for human
2010consumption sold for 25 cents or less through a coin-operated
2011vending machine sponsored by a nonprofit corporation qualified
2012as nonprofit pursuant to s. 501(c)(3) or (4) of the Internal
2013Revenue Code of 1986, as amended.
2014     (aa)  Certain commercial vehicles.-Also exempt is the sale,
2015lease, or rental of a commercial motor vehicle as defined in s.
2016207.002(2), when the following conditions are met:
2017     1.  The sale, lease, or rental occurs between two commonly
2018owned and controlled corporations;
2019     2.  Such vehicle was titled and registered in this state at
2020the time of the sale, lease, or rental; and
2021     3.  Florida sales tax was paid on the acquisition of such
2022vehicle by the seller, lessor, or renter.
2023     (bb)  Community cemeteries.-Also exempt are purchases by
2024any nonprofit corporation that has qualified under s. 501(c)(13)
2025of the Internal Revenue Code of 1986, as amended, and is
2026operated for the purpose of maintaining a cemetery that was
2027donated to the community by deed.
2028     (cc)  Works of art.-
2029     1.  Also exempt are works of art sold to or used by an
2030educational institution.
2031     2.  This exemption also applies to the sale to or use in
2032this state of any work of art by any person if it was purchased
2033or imported exclusively for the purpose of being donated to any
2034educational institution, or loaned to and made available for
2035display by any educational institution, provided that the term
2036of the loan agreement is for at least 10 years.
2037     3.  The exemption provided by this paragraph for donations
2038is allowed only if the person who purchased the work of art
2039transfers title to the donated work of art to an educational
2040institution. Such transfer of title shall be evidenced by an
2041affidavit meeting requirements established by rule to document
2042entitlement to the exemption. Nothing in this paragraph shall
2043preclude a work of art donated to an educational institution
2044from remaining in the possession of the donor or purchaser, as
2045long as title to the work of art lies with the educational
2046institution.
2047     4.  A work of art is presumed to have been purchased in or
2048imported into this state exclusively for loan as provided in
2049subparagraph 2., if it is so loaned or placed in storage in
2050preparation for such a loan within 90 days after purchase or
2051importation, whichever is later; but a work of art is not deemed
2052to be placed in storage in preparation for loan for purposes of
2053this exemption if it is displayed at any place other than an
2054educational institution.
2055     5.  The exemptions provided by this paragraph are allowed
2056only if the person who purchased the work of art gives to the
2057vendor an affidavit meeting the requirements, established by
2058rule, to document entitlement to the exemption. The person who
2059purchased the work of art shall forward a copy of such affidavit
2060to the Department of Revenue at the time it is issued to the
2061vendor.
2062     6.  The exemption for loans provided by subparagraph 2.
2063applies only for the period during which a work of art is in the
2064possession of the educational institution or is in storage
2065before transfer of possession to that institution; and when it
2066ceases to be so possessed or held, tax based upon the sales
2067price paid by the owner is payable, and the statute of
2068limitations provided in s. 95.091 shall begin to run at that
2069time. However, tax shall not become due if the work of art is
2070donated to an educational institution after the loan ceases.
2071     7.  Any educational institution to which a work of art has
2072been donated pursuant to this paragraph shall make available to
2073the department the title to the work of art and any other
2074relevant information. Any educational institution which has
2075received a work of art on loan pursuant to this paragraph shall
2076make available to the department information relating to the
2077work of art. Any educational institution that transfers from its
2078possession a work of art as defined by this paragraph which has
2079been loaned to it must notify the Department of Revenue within
208060 days after the transfer.
2081     8.  For purposes of the exemptions provided by this
2082paragraph, the term:
2083     a.  "Educational institutions" includes state tax-
2084supported, parochial, church, and nonprofit private schools,
2085colleges, or universities that conduct regular classes and
2086courses of study required for accreditation by or membership in
2087the Southern Association of Colleges and Schools, the Florida
2088Council of Independent Schools, or the Florida Association of
2089Christian Colleges and Schools, Inc.; nonprofit private schools
2090that conduct regular classes and courses of study accepted for
2091continuing education credit by a board of the Division of
2092Medical Quality Assurance of the Department of Health; or
2093nonprofit libraries, art galleries, performing arts centers that
2094provide educational programs to school children, which programs
2095involve performances or other educational activities at the
2096performing arts center and serve a minimum of 50,000 school
2097children a year, and museums open to the public.
2098     b.  "Work of art" includes pictorial representations,
2099sculpture, jewelry, antiques, stamp collections and coin
2100collections, and other tangible personal property, the value of
2101which is attributable predominantly to its artistic, historical,
2102political, cultural, or social importance.
2103     (dd)  Taxicab leases.-The lease of or license to use a
2104taxicab or taxicab-related equipment and services provided by a
2105taxicab company to an independent taxicab operator are exempt,
2106provided, however, the exemptions provided under this paragraph
2107only apply if sales or use tax has been paid on the acquisition
2108of the taxicab and its related equipment.
2109     (ee)  Aircraft repair and maintenance labor charges.-There
2110shall be exempt from the tax imposed by this chapter all labor
2111charges for the repair and maintenance of qualified aircraft,
2112aircraft of more than 15,000 pounds maximum certified takeoff
2113weight, and rotary wing aircraft of more than 10,000 pounds
2114maximum certified takeoff weight. Except as otherwise provided
2115in this chapter, charges for parts and equipment furnished in
2116connection with such labor charges are taxable.
2117     (ff)  Certain electricity or steam uses.-
2118     1.  Subject to the provisions of subparagraph 4., charges
2119for electricity or steam used to operate machinery and equipment
2120at a fixed location in this state when such machinery and
2121equipment is used to manufacture, process, compound, produce, or
2122prepare for shipment items of tangible personal property for
2123sale, or to operate pollution control equipment, recycling
2124equipment, maintenance equipment, or monitoring or control
2125equipment used in such operations are exempt to the extent
2126provided in this paragraph. If 75 percent or more of the
2127electricity or steam used at the fixed location is used to
2128operate qualifying machinery or equipment, 100 percent of the
2129charges for electricity or steam used at the fixed location are
2130exempt. If less than 75 percent but 50 percent or more of the
2131electricity or steam used at the fixed location is used to
2132operate qualifying machinery or equipment, 50 percent of the
2133charges for electricity or steam used at the fixed location are
2134exempt. If less than 50 percent of the electricity or steam used
2135at the fixed location is used to operate qualifying machinery or
2136equipment, none of the charges for electricity or steam used at
2137the fixed location are exempt.
2138     2.  This exemption applies only to industries classified
2139under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
214023, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2141and 39 and Industry Group Number 212. As used in this paragraph,
2142"SIC" means those classifications contained in the Standard
2143Industrial Classification Manual, 1987, as published by the
2144Office of Management and Budget, Executive Office of the
2145President.
2146     3.  Possession by a seller of a written certification by
2147the purchaser, certifying the purchaser's entitlement to an
2148exemption permitted by this subsection, relieves the seller from
2149the responsibility of collecting the tax on the nontaxable
2150amounts, and the department shall look solely to the purchaser
2151for recovery of such tax if it determines that the purchaser was
2152not entitled to the exemption.
2153     4.  Such exemption shall be applied as follows: beginning
2154July 1, 2000, 100 percent of the charges for such electricity or
2155steam shall be exempt.
2156     (gg)  Fair associations.-Also exempt from the tax imposed
2157by this chapter is the sale, use, lease, rental, or grant of a
2158license to use, made directly to or by a fair association, of
2159real or tangible personal property; any charge made by a fair
2160association, or its agents, for parking, admissions, or for
2161temporary parking of vehicles used for sleeping quarters;
2162rentals, subleases, and sublicenses of real or tangible personal
2163property between the owner of the central amusement attraction
2164and any owner of an amusement ride, as those terms are used in
2165ss. 616.15(1)(b) and 616.242(3)(a), for the furnishing of
2166amusement rides at a public fair or exposition; and other
2167transactions of a fair association which are incurred directly
2168by the fair association in the financing, construction, and
2169operation of a fair, exposition, or other event or facility that
2170is authorized by s. 616.08. As used in this paragraph, the terms
2171"fair association" and "public fair or exposition" have the same
2172meaning as those terms are defined in s. 616.001. This exemption
2173does not apply to the sale of tangible personal property made by
2174a fair association through an agent or independent contractor;
2175sales of admissions and tangible personal property by a
2176concessionaire, vendor, exhibitor, or licensee; or rentals and
2177subleases of tangible personal property or real property between
2178the owner of the central amusement attraction and a
2179concessionaire, vendor, exhibitor, or licensee, except for the
2180furnishing of amusement rides, which transactions are exempt.
2181     (hh)  Solar energy systems.-Also exempt are solar energy
2182systems or any component thereof. The Florida Solar Energy
2183Center shall from time to time certify to the department a list
2184of equipment and requisite hardware considered to be a solar
2185energy system or a component thereof.
2186     (ii)  Nonprofit cooperative hospital laundries.-Also exempt
2187are sales or leases to nonprofit organizations that are
2188incorporated under chapter 617 and which are treated, for
2189federal income tax purposes, as cooperatives under subchapter T
2190of the Internal Revenue Code, whose sole purpose is to offer
2191laundry supplies and services to their members who must all be
2192exempt from federal income tax pursuant to s. 501(c)(3) of the
2193Internal Revenue Code. A member of a nonprofit cooperative
2194hospital laundry whose Internal Revenue Code status changes
2195shall, within 90 days after such change, divest all
2196participation in the cooperative. The provision of laundry
2197supplies and services to a nonmember business pursuant to a
2198declaration of emergency under s. 252.36(2) and a written
2199emergency plan of operation executed by the members of the
2200cooperative does not invalidate or cause the denial of a
2201cooperative's certificate of exemption.
2202     (jj)  Complimentary meals.-Also exempt from the tax imposed
2203by this chapter are food or drinks that are furnished as part of
2204a packaged room rate by any person offering for rent or lease
2205any transient living accommodations as described in s.
2206509.013(4)(a) which are licensed under part I of chapter 509 and
2207which are subject to the tax under s. 212.03, if a separate
2208charge or specific amount for the food or drinks is not shown.
2209Such food or drinks are considered to be sold at retail as part
2210of the total charge for the transient living accommodations.
2211Moreover, the person offering the accommodations is not
2212considered to be the consumer of items purchased in furnishing
2213such food or drinks and may purchase those items under
2214conditions of a sale for resale.
2215     (kk)  Nonprofit corporation conducting the correctional
2216work programs.-Products sold pursuant to s. 946.515 by the
2217corporation organized pursuant to part II of chapter 946 are
2218exempt from the tax imposed by this chapter. This exemption
2219applies retroactively to July 1, 1983.
2220     (ll)  Parent-teacher organizations, parent-teacher
2221associations, and schools having grades K through 12.-
2222     1.  Sales or leases to parent-teacher organizations and
2223associations the purpose of which is to raise funds for schools
2224that teach grades K through 12 and that are associated with
2225schools having grades K through 12 are exempt from the tax
2226imposed by this chapter.
2227     2.  Parent-teacher organizations and associations described
2228in subparagraph 1., and schools having grades K through 12, may
2229pay tax to their suppliers on the cost price of school materials
2230and supplies purchased, rented, or leased for resale or rental
2231to students in grades K through 12, of items sold for
2232fundraising purposes, and of items sold through vending machines
2233located on the school premises, in lieu of collecting the tax
2234imposed by this chapter from the purchaser. This paragraph also
2235applies to food or beverages sold through vending machines
2236located in the student lunchroom or dining room of a school
2237having kindergarten through grade 12.
2238     (mm)  Mobile home lot improvements.-Items purchased by
2239developers for use in making improvements to a mobile home lot
2240owned by the developer may be purchased tax-exempt as a sale for
2241resale if made pursuant to a contract that requires the
2242developer to sell a mobile home to a purchaser, place the mobile
2243home on the lot, and make the improvements to the lot for a
2244single lump-sum price. The developer must collect and remit
2245sales tax on the entire lump-sum price.
2246     (nn)  Veterans Administration.-When a veteran of the armed
2247forces purchases an aircraft, boat, mobile home, motor vehicle,
2248or other vehicle from a dealer pursuant to the provisions of 38
2249U.S.C. s. 3902(a), or any successor provision of the United
2250States Code, the amount that is paid directly to the dealer by
2251the Veterans Administration is not taxable. However, any portion
2252of the purchase price which is paid directly to the dealer by
2253the veteran is taxable.
2254     (oo)  Complimentary items.-There is exempt from the tax
2255imposed by this chapter:
2256     1.  Any food or drink, whether or not cooked or prepared on
2257the premises, provided without charge as a sample or for the
2258convenience of customers by a dealer that primarily sells food
2259product items at retail.
2260     2.  Any item given to a customer as part of a price
2261guarantee plan related to point-of-sale errors by a dealer that
2262primarily sells food products at retail.
2263
2264The exemptions in this paragraph do not apply to businesses with
2265the primary activity of serving prepared meals or alcoholic
2266beverages for immediate consumption.
2267     (pp)  Donated foods or beverages.-Any food or beverage
2268donated by a dealer that sells food products at retail to a food
2269bank or an organization that holds a current exemption from
2270federal corporate income tax pursuant to s. 501(c) of the
2271Internal Revenue Code of 1986, as amended, is exempt from the
2272tax imposed by this chapter.
2273     (qq)  Racing dogs.-The sale of a racing dog by its owner is
2274exempt if the owner is also the breeder of the animal.
2275     (rr)  Equipment used in aircraft repair and maintenance.-
2276There shall be exempt from the tax imposed by this chapter
2277replacement engines, parts, and equipment used in the repair or
2278maintenance of qualified aircraft, aircraft of more than 15,000
2279pounds maximum certified takeoff weight, and rotary wing
2280aircraft of more than 10,300 pounds maximum certified takeoff
2281weight, when such parts or equipment are installed on such
2282aircraft that is being repaired or maintained in this state.
2283     (ss)  Aircraft sales or leases.-The sale or lease of a
2284qualified aircraft or an aircraft of more than 15,000 pounds
2285maximum certified takeoff weight for use by a common carrier is
2286exempt from the tax imposed by this chapter. As used in this
2287paragraph, "common carrier" means an airline operating under
2288Federal Aviation Administration regulations contained in Title
228914, chapter I, part 121 or part 129 of the Code of Federal
2290Regulations.
2291     (tt)  Nonprofit water systems.-Sales or leases to a not-
2292for-profit corporation which holds a current exemption from
2293federal income tax under s. 501(c)(4) or (12) of the Internal
2294Revenue Code, as amended, are exempt from the tax imposed by
2295this chapter if the sole or primary function of the corporation
2296is to construct, maintain, or operate a water system in this
2297state.
2298     (uu)  Library cooperatives.-Sales or leases to library
2299cooperatives certified under s. 257.41(2) are exempt from the
2300tax imposed by this chapter.
2301     (vv)  Advertising agencies.-
2302     1.  As used in this paragraph, the term "advertising
2303agency" means any firm that is primarily engaged in the business
2304of providing advertising materials and services to its clients.
2305     2.  The sale of advertising services by an advertising
2306agency to a client is exempt from the tax imposed by this
2307chapter. Also exempt from the tax imposed by this chapter are
2308items of tangible personal property such as photographic
2309negatives and positives, videos, films, galleys, mechanicals,
2310veloxes, illustrations, digital audiotapes, analog tapes,
2311printed advertisement copies, compact discs for the purpose of
2312recording, digital equipment, and artwork and the services used
2313to produce those items if the items are:
2314     a.  Sold to an advertising agency that is acting as an
2315agent for its clients pursuant to contract, and are created for
2316the performance of advertising services for the clients;
2317     b.  Produced, fabricated, manufactured, or otherwise
2318created by an advertising agency for its clients, and are used
2319in the performance of advertising services for the clients; or
2320     c.  Sold by an advertising agency to its clients in the
2321performance of advertising services for the clients, whether or
2322not the charges for these items are marked up or separately
2323stated.
2324
2325The exemption provided by this subparagraph does not apply when
2326tangible personal property such as film, paper, and videotapes
2327is purchased to create items such as photographic negatives and
2328positives, videos, films, galleys, mechanicals, veloxes,
2329illustrations, and artwork that are sold to an advertising
2330agency or produced in-house by an advertising agency on behalf
2331of its clients.
2332     3.  The items exempted from tax under subparagraph 2. and
2333the creative services used by an advertising agency to design
2334the advertising for promotional goods such as displays, display
2335containers, exhibits, newspaper inserts, brochures, catalogues,
2336direct mail letters or flats, shirts, hats, pens, pencils, key
2337chains, or other printed goods or materials are not subject to
2338tax. However, when such promotional goods are produced or
2339reproduced for distribution, tax applies to the sales price
2340charged to the client for such promotional goods.
2341     4.  For items purchased by an advertising agency and exempt
2342from tax under this paragraph, possession of an exemption
2343certificate from the advertising agency certifying the agency's
2344entitlement to exemption relieves the vendor of the
2345responsibility of collecting the tax on the sale of such items
2346to the advertising agency, and the department shall look solely
2347to the advertising agency for recovery of tax if it determines
2348that the advertising agency was not entitled to the exemption.
2349     5.  The exemptions provided by this paragraph apply
2350retroactively, except that all taxes that have been collected
2351must be remitted, and taxes that have been remitted before July
23521, 1999, on transactions that are subject to exemption under
2353this paragraph are not subject to refund.
2354     6.  The department may adopt rules that interpret or define
2355the provisions of these exemptions and provide examples
2356regarding the application of these exemptions.
2357     (ww)  Bullion.-The sale of gold, silver, or platinum
2358bullion, or any combination thereof, in a single transaction is
2359exempt if the sales price exceeds $500. The dealer must maintain
2360proper documentation, as prescribed by rule of the department,
2361to identify that portion of a transaction which involves the
2362sale of gold, silver, or platinum bullion and is exempt under
2363this paragraph.
2364     (xx)  Certain repair and labor charges.-
2365     1.  Subject to the provisions of subparagraphs 2. and 3.,
2366there is exempt from the tax imposed by this chapter all labor
2367charges for the repair of, and parts and materials used in the
2368repair of and incorporated into, industrial machinery and
2369equipment which is used for the manufacture, processing,
2370compounding, production, or preparation for shipping of items of
2371tangible personal property at a fixed location within this
2372state.
2373     2.  This exemption applies only to industries classified
2374under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
237523, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2376and 39 and Industry Group Number 212. As used in this
2377subparagraph, "SIC" means those classifications contained in the
2378Standard Industrial Classification Manual, 1987, as published by
2379the Office of Management and Budget, Executive Office of the
2380President.
2381     3.  This exemption shall be applied as follows:
2382     a.  Beginning July 1, 2000, 50 percent of such charges for
2383repair parts and labor shall be exempt.
2384     b.  Beginning July 1, 2001, 75 percent of such charges for
2385repair parts and labor shall be exempt.
2386     c.  Beginning July 1, 2002, 100 percent of such charges for
2387repair parts and labor shall be exempt.
2388     (yy)  Film and other printing supplies.-Also exempt are the
2389following materials purchased, produced, or created by
2390businesses classified under SIC Industry Numbers 275, 276, 277,
2391278, or 279 for use in producing graphic matter for sale: film,
2392photographic paper, dyes used for embossing and engraving,
2393artwork, typography, lithographic plates, and negatives. As used
2394in this paragraph, "SIC" means those classifications contained
2395in the Standard Industrial Classification Manual, 1987, as
2396published by the Office of Management and Budget, Executive
2397Office of the President.
2398     (zz)  People-mover systems.-People-mover systems, and parts
2399thereof, which are purchased or manufactured by contractors
2400employed either directly by or as agents for the United States
2401Government, the state, a county, a municipality, a political
2402subdivision of the state, or the public operator of a public-use
2403airport as defined by s. 332.004(14) are exempt from the tax
2404imposed by this chapter when the systems or parts go into or
2405become part of publicly owned facilities. In the case of
2406contractors who manufacture and install such systems and parts,
2407this exemption extends to the purchase of component parts and
2408all other manufacturing and fabrication costs. The department
2409may provide a form to be used by contractors to provide to
2410suppliers of people-mover systems or parts to certify the
2411contractors' eligibility for the exemption provided under this
2412paragraph. As used in this paragraph, "people-mover systems"
2413includes wheeled passenger vehicles and related control and
2414power distribution systems that are part of a transportation
2415system for use by the general public, regardless of whether such
2416vehicles are operator-controlled or driverless, self-propelled
2417or propelled by external power and control systems, or conducted
2418on roads, rails, guidebeams, or other permanent structures that
2419are an integral part of such transportation system. "Related
2420control and power distribution systems" includes any electrical
2421or electronic control or signaling equipment, but does not
2422include the embedded wiring, conduits, or cabling used to
2423transmit electrical or electronic signals among such control
2424equipment, power distribution equipment, signaling equipment,
2425and wheeled vehicles.
2426     (aaa)  Florida Fire and Emergency Services Foundation.-
2427Sales or leases to the Florida Fire and Emergency Services
2428Foundation are exempt from the tax imposed by this chapter.
2429     (bbb)  Railroad roadway materials.-Also exempt from the tax
2430imposed by this chapter are railroad roadway materials used in
2431the construction, repair, or maintenance of railways. Railroad
2432roadway materials shall include rails, ties, ballasts,
2433communication equipment, signal equipment, power transmission
2434equipment, and any other track materials.
2435     (ccc)  Advertising materials distributed free of charge by
2436mail in an envelope.-Likewise exempt are materials consisting
2437exclusively of advertisements, such as individual coupons or
2438other individual cards, sheets, or pages of printed advertising,
2439that are distributed free of charge by mail in an envelope for
244010 or more persons on a monthly, bimonthly, or other regular
2441basis.
2442     (ddd)  Certain delivery charges.-Separately stated charges
2443that can be avoided at the option of the purchaser for the
2444delivery, inspection, placement, or removal from packaging or
2445shipping materials of furniture or appliances by the selling
2446dealer at the premises of the purchaser or the removal of
2447similar items from the premises of the purchaser are exempt. If
2448any charge for delivery, inspection, placement, or removal of
2449furniture or appliances includes the modification, assembly, or
2450construction of such furniture or appliances, then all of the
2451charges are taxable.
2452     (eee)  Bookstore operations at a postsecondary educational
2453institution.-Also exempt from payment of the tax imposed by this
2454chapter on renting, leasing, letting, or granting a license for
2455the use of any real property are payments to a postsecondary
2456educational institution made by any person pursuant to a grant
2457of the right to conduct bookstore operations on real property
2458owned or leased by the postsecondary educational institution. As
2459used in this paragraph, the term "bookstore operations" means
2460activities consisting predominantly of sales, distribution, and
2461provision of textbooks, merchandise, and services traditionally
2462offered in college and university bookstores for the benefit of
2463the institution's students, faculty, and staff.
2464     (fff)  Aircraft temporarily in the state.-
2465     1.  An aircraft owned by a nonresident is exempt from the
2466use tax imposed under this chapter if the aircraft enters and
2467remains in this state for less than a total of 21 days during
2468the 6-month period after the date of purchase. The temporary use
2469of the aircraft and subsequent removal from this state may be
2470proven by invoices for fuel, tie-down, or hangar charges issued
2471by out-of-state vendors or suppliers or similar documentation
2472that clearly and specifically identifies the aircraft. The
2473exemption provided in this subparagraph is in addition to the
2474exemptions provided in subparagraph 2. and s. 212.05(1)(a).
2475     2.  An aircraft owned by a nonresident is exempt from the
2476use tax imposed under this chapter if the aircraft enters or
2477remains in this state exclusively for purposes of flight
2478training, repairs, alterations, refitting, or modification. Such
2479purposes shall be supported by written documentation issued by
2480in-state vendors or suppliers which clearly and specifically
2481identifies the aircraft. The exemption provided in this
2482subparagraph is in addition to the exemptions provided in
2483subparagraph 1. and s. 212.05(1)(a).
2484     (ggg)  Fractional aircraft ownership programs.-The sale or
2485use of aircraft primarily used in a fractional aircraft
2486ownership program or of any parts or labor used in the
2487completion, maintenance, repair, or overhaul of such aircraft is
2488exempt from the tax imposed by this chapter. The exemption is
2489not allowed unless the program manager of the fractional
2490aircraft ownership program furnishes the dealer with a
2491certificate stating that the lease, purchase, repair, or
2492maintenance is for aircraft primarily used in a fractional
2493aircraft ownership program and that the program manager
2494qualifies for the exemption. If a program manager makes tax-
2495exempt purchases on a continual basis, the program manager may
2496allow the dealer to keep the certificate on file. The program
2497manager must inform a dealer that keeps the certificate on file
2498if the program manager no longer qualifies for the exemption.
2499The department may adopt rules to administer this paragraph,
2500including rules determining the format of the certificate.
2501     (8)  PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE OR
2502FOREIGN COMMERCE.-
2503     (a)  The sale or use of vessels and parts thereof used to
2504transport persons or property in interstate or foreign commerce,
2505including commercial fishing vessels, is subject to the taxes
2506imposed in this chapter only to the extent provided herein. The
2507basis of the tax shall be the ratio of intrastate mileage to
2508interstate or foreign mileage traveled by the carrier's vessels
2509which were used in interstate or foreign commerce and which had
2510at least some Florida mileage during the previous fiscal year.
2511The ratio would be determined at the close of the carrier's
2512fiscal year. However, during the fiscal year in which the vessel
2513begins its initial operations in this state, the vessel's
2514mileage apportionment factor may be determined on the basis of
2515an estimated ratio of anticipated miles in this state to
2516anticipated total miles for that year and, subsequently,
2517additional tax shall be paid on the vessel, or a refund may be
2518applied for, on the basis of the actual ratio of the vessel's
2519miles in this state to its total miles for that year. This ratio
2520shall be applied each month to the total Florida purchases of
2521such vessels and parts thereof which are used in Florida to
2522establish that portion of the total used and consumed in
2523intrastate movement and subject to the tax at the applicable
2524rate. The basis for imposition of any discretionary surtax shall
2525be as set forth in s. 212.054. Items, appropriate to carry out
2526the purposes for which a vessel is designed or equipped and
2527used, purchased by the owner, operator, or agent of a vessel for
2528use on board such vessel shall be deemed to be parts of the
2529vessel upon which the same are used or consumed. Vessels and
2530parts thereof used to transport persons or property in
2531interstate and foreign commerce are hereby determined to be
2532susceptible to a distinct and separate classification for
2533taxation under the provisions of this chapter. Vessels and parts
2534thereof used exclusively in intrastate commerce do not qualify
2535for the proration of tax.
2536     (b)  The partial exemption provided for in this subsection
2537shall not be allowed unless the purchaser signs an affidavit
2538stating that the item or items to be partially exempted are for
2539the exclusive use designated herein and setting forth the extent
2540of such partial exemption. Any person furnishing a false
2541affidavit to such effect for the purpose of evading payment of
2542any tax imposed under this chapter is subject to the penalties
2543set forth in s. 212.12 and as otherwise provided by law.
2544     (c)  It is the intent of the Legislature that neither
2545subsection (4) nor this subsection shall be construed as
2546imposing the tax provided by this chapter on vessels used as
2547common carriers, contract carriers, or private carriers, engaged
2548in interstate or foreign commerce, except to the extent provided
2549by the pro rata formula provided in subsection (4) and in
2550paragraph (a).
2551     (9)  PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
2552ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.-
2553     (a)  Railroads that are licensed as common carriers by the
2554Surface Transportation Board and parts thereof used to transport
2555persons or property in interstate or foreign commerce are
2556subject to tax imposed in this chapter only to the extent
2557provided herein. The basis of the tax shall be the ratio of
2558intrastate mileage to interstate or foreign mileage traveled by
2559the carrier during the previous fiscal year of the carrier. Such
2560ratio is to be determined at the close of the carrier's fiscal
2561year. However, during the fiscal year in which the railroad
2562begins its initial operations in this state, the railroad's
2563mileage apportionment factor may be determined on the basis of
2564an estimated ratio of anticipated miles in this state to
2565anticipated total miles for that year and, subsequently,
2566additional tax shall be paid on the railroad, or a refund may be
2567applied for, on the basis of the actual ratio of the railroad's
2568miles in this state to its total miles for that year. This ratio
2569shall be applied each month to the purchases of the railroad in
2570this state which are used in this state to establish that
2571portion of the total used and consumed in intrastate movement
2572and subject to tax under this chapter. The basis for imposition
2573of any discretionary surtax is set forth in s. 212.054.
2574Railroads that are licensed as common carriers by the Surface
2575Transportation Board and parts thereof used to transport persons
2576or property in interstate and foreign commerce are hereby
2577determined to be susceptible to a distinct and separate
2578classification for taxation under the provisions of this
2579chapter.
2580     (b)  Motor vehicles that are engaged in interstate commerce
2581as common carriers, and parts thereof, used to transport persons
2582or property in interstate or foreign commerce are subject to tax
2583imposed in this chapter only to the extent provided herein. The
2584basis of the tax shall be the ratio of intrastate mileage to
2585interstate or foreign mileage traveled by the carrier's motor
2586vehicles which were used in interstate or foreign commerce and
2587which had at least some Florida mileage during the previous
2588fiscal year of the carrier. Such ratio is to be determined at
2589the close of the carrier's fiscal year. However, during the
2590fiscal year in which the carrier begins its initial operations
2591in this state, the carrier's mileage apportionment factor may be
2592determined on the basis of an estimated ratio of anticipated
2593miles in this state to anticipated total miles for that year
2594and, subsequently, additional tax shall be paid on the carrier,
2595or a refund may be applied for, on the basis of the actual ratio
2596of the carrier's miles in this state to its total miles for that
2597year. This ratio shall be applied each month to the purchases in
2598this state of such motor vehicles and parts thereof which are
2599used in this state to establish that portion of the total used
2600and consumed in intrastate movement and subject to tax under
2601this chapter. The basis for imposition of any discretionary
2602surtax is set forth in s. 212.054. Motor vehicles that are
2603engaged in interstate commerce, and parts thereof, used to
2604transport persons or property in interstate and foreign commerce
2605are hereby determined to be susceptible to a distinct and
2606separate classification for taxation under the provisions of
2607this chapter. Motor vehicles and parts thereof used exclusively
2608in intrastate commerce do not qualify for the proration of tax.
2609For purposes of this paragraph, parts of a motor vehicle engaged
2610in interstate commerce include a separate tank not connected to
2611the fuel supply system of the motor vehicle into which diesel
2612fuel is placed to operate a refrigeration unit or other
2613equipment.
2614     (10)  PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT OF
2615ANOTHER STATE.-
2616     (a)  The tax collected on the sale of a new or used motor
2617vehicle in this state to a resident of another state shall be an
2618amount equal to the sales tax which would be imposed on such
2619sale under the laws of the state of which the purchaser is a
2620resident, except that such tax shall not exceed the tax that
2621would otherwise be imposed under this chapter. At the time of
2622the sale, the purchaser shall execute a notarized statement of
2623his or her intent to license the vehicle in the state of which
2624the purchaser is a resident within 45 days of the sale and of
2625the fact of the payment to the State of Florida of a sales tax
2626in an amount equivalent to the sales tax of his or her state of
2627residence and shall submit the statement to the appropriate
2628sales tax collection agency in his or her state of residence.
2629Nothing in this subsection shall be construed to require the
2630removal of the vehicle from this state following the filing of
2631an intent to license the vehicle in the purchaser's home state
2632if the purchaser licenses the vehicle in his or her home state
2633within 45 days after the date of sale.
2634     (b)  Notwithstanding the partial exemption allowed in
2635paragraph (a), a vehicle is subject to this state's sales tax at
2636the applicable state sales tax rate plus authorized surtaxes
2637when the vehicle is purchased by a nonresident corporation or
2638partnership and:
2639     1.  An officer of the corporation is a resident of this
2640state;
2641     2.  A stockholder of the corporation who owns at least 10
2642percent of the corporation is a resident of this state; or
2643     3.  A partner in the partnership who has at least 10
2644percent ownership is a resident of this state.
2645
2646However, if the vehicle is removed from this state within 45
2647days after purchase and remains outside the state for a minimum
2648of 180 days, the vehicle may qualify for the partial exemption
2649allowed in paragraph (a) despite the residency of owners or
2650stockholders of the purchasing entity.
2651     (c)  Nothing herein shall require the payment of tax to the
2652State of Florida for assessments made prior to July 1, 2001, if
2653the tax imposed by this section has been paid to the state in
2654which the vehicle was licensed and the department has assessed a
2655like amount of tax on the same transactions. This provision
2656shall apply retroactively to assessments that have been
2657protested prior to August 1, 1999, and have not been paid on the
2658date this act takes effect.
2659     (11)  PARTIAL EXEMPTION; FLYABLE AIRCRAFT.-
2660     (a)  The tax imposed on the sale by a manufacturer of
2661flyable aircraft, who designs such aircraft, which sale may
2662include necessary equipment and modifications placed on such
2663flyable aircraft prior to delivery by the manufacturer, shall be
2664an amount equal to the sales tax which would be imposed on such
2665sale under the laws of the state in which the aircraft will be
2666domiciled.
2667     (b)  This partial exemption applies only if the purchaser
2668is a resident of another state who will not use the aircraft in
2669this state, or if the purchaser is a resident of another state
2670and uses the aircraft in interstate or foreign commerce, or if
2671the purchaser is a resident of a foreign country.
2672     (c)  The maximum tax collectible under this subsection may
2673not exceed 6 percent of the sales price of such aircraft. No
2674Florida tax may be imposed on the sale of such aircraft if the
2675state in which the aircraft will be domiciled does not allow
2676Florida sales or use tax to be credited against its sales or use
2677tax. Furthermore, no tax may be imposed on the sale of such
2678aircraft if the state in which the aircraft will be domiciled
2679has enacted a sales and use tax exemption for flyable aircraft
2680or if the aircraft will be domiciled outside the United States.
2681     (d)  The purchaser shall execute a sworn affidavit
2682attesting that he or she is not a resident of this state and
2683stating where the aircraft will be domiciled. If the aircraft is
2684subsequently used in this state within 6 months of the time of
2685purchase, in violation of the intent of this subsection, the
2686purchaser shall be liable for payment of the full use tax
2687imposed by this chapter and shall be subject to the penalty
2688imposed by s. 212.12(2), which penalty shall be mandatory.
2689Notwithstanding the provisions of this paragraph, the owner of
2690an aircraft purchased pursuant to this subsection may permit the
2691aircraft to be returned to this state for repairs within 6
2692months after the date of sale without the aircraft being in
2693violation of the law and without incurring liability for payment
2694of tax or penalty on the purchase price of the aircraft, so long
2695as the aircraft is removed from this state within 20 days after
2696the completion of the repairs and such removal can be proven by
2697invoices for fuel, tie-down, or hangar charges issued by out-of-
2698state vendors or suppliers or similar documentation.
2699     (12)  PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS, OR
2700VIDEO TAPES.-
2701     (a)  There are exempt from the taxes imposed by this
2702chapter the gross receipts from the sale or lease of, and the
2703storage, use, or other consumption in this state of, master
2704tapes or master records embodying sound, or master films or
2705master video tapes; except that amounts paid to recording
2706studios or motion picture or television studios for the tangible
2707elements of such master tapes, records, films, or video tapes
2708are taxable as otherwise provided in this chapter. This
2709exemption will inure to the taxpayer upon presentation of the
2710certificate of exemption issued to the taxpayer under the
2711provisions of s. 288.1258.
2712     (b)  For the purposes of this subsection, the term:
2713     1.  "Amounts paid for the tangible elements" does not
2714include any amounts paid for the copyrightable, artistic, or
2715other intangible elements of such master tapes, records, films,
2716or video tapes, whether designated as royalties or otherwise,
2717including, but not limited to, services rendered in producing,
2718fabricating, processing, or imprinting tangible personal
2719property or any other services or production expenses in
2720connection therewith which may otherwise be construed as
2721constituting a "sale" under s. 212.02.
2722     2.  "Master films or master video tapes" means films or
2723video tapes utilized by the motion picture and television
2724production industries in making visual images for reproduction.
2725     3.  "Master tapes or master records embodying sound" means
2726tapes, records, and other devices utilized by the recording
2727industry in making recordings embodying sound.
2728     4.  "Motion picture or television studio" means a facility
2729in which film or video tape productions or parts of productions
2730are made and which contains the necessary equipment and
2731personnel for this purpose and includes a mobile unit or vehicle
2732that is equipped in much the same manner as a stationary studio
2733and used in the making of film or video tape productions.
2734     5.  "Recording studio" means a place where, by means of
2735mechanical or electronic devices, voices, music, or other sounds
2736are transmitted to tapes, records, or other devices capable of
2737reproducing sound.
2738     6.  "Recording industry" means any person engaged in an
2739occupation or business of making recordings embodying sound for
2740a livelihood or for a profit.
2741     7.  "Motion picture or television production industry"
2742means any person engaged in an occupation or business for a
2743livelihood or for profit of making visual motion picture or
2744television visual images for showing on screen or television for
2745theatrical, commercial, advertising, or educational purposes.
2746     (13)  No transactions shall be exempt from the tax imposed
2747by this chapter except those expressly exempted herein. All laws
2748granting tax exemptions, to the extent they may be inconsistent
2749or in conflict with this chapter, including, but not limited to,
2750the following designated laws, shall yield to and be superseded
2751by the provisions of this subsection: ss. 125.019, 153.76,
2752154.2331, 159.15, 159.31, 159.50, 159.708, 163.385, 163.395,
2753215.76, 243.33, 315.11, 348.65, 348.762, 349.13, 403.1834,
2754616.07, and 623.09, and the following Laws of Florida, acts of
2755the year indicated: s. 31, chapter 30843, 1955; s. 19, chapter
275630845, 1955; s. 12, chapter 30927, 1955; s. 8, chapter 31179,
27571955; s. 15, chapter 31263, 1955; s. 13, chapter 31343, 1955; s.
275816, chapter 59-1653; s. 13, chapter 59-1356; s. 12, chapter 61-
27592261; s. 19, chapter 61-2754; s. 10, chapter 61-2686; s. 11,
2760chapter 63-1643; s. 11, chapter 65-1274; s. 16, chapter 67-1446;
2761and s. 10, chapter 67-1681. This subsection does not supersede
2762the authority of a local government to adopt financial and local
2763government incentives pursuant to s. 163.2517.
2764     (14)  TECHNICAL ASSISTANCE ADVISORY COMMITTEE.-The
2765department shall establish a technical assistance advisory
2766committee with public and private sector members, including
2767representatives of both manufacturers and retailers, to advise
2768the Department of Revenue and the Department of Health in
2769determining the taxability of specific products and product
2770lines pursuant to subsection (1) and paragraph (2)(a). In
2771determining taxability and in preparing a list of specific
2772products and product lines that are or are not taxable, the
2773committee shall not be subject to the provisions of chapter 120.
2774Private sector members shall not be compensated for serving on
2775the committee.
2776     (15)  ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.-
2777     (a)  Beginning July 1, 1995, charges for electrical energy
2778used by a qualified business at a fixed location in an
2779enterprise zone in a municipality which has enacted an ordinance
2780pursuant to s. 166.231(8) which provides for exemption of
2781municipal utility taxes on such businesses or in an enterprise
2782zone jointly authorized by a county and a municipality which has
2783enacted an ordinance pursuant to s. 166.231(8) which provides
2784for exemption of municipal utility taxes on such businesses
2785shall receive an exemption equal to 50 percent of the tax
2786imposed by this chapter, or, if no less than 20 percent of the
2787employees of the business are residents of an enterprise zone,
2788excluding temporary and part-time employees, the exemption shall
2789be equal to 100 percent of the tax imposed by this chapter. A
2790qualified business may receive such exemption for a period of 5
2791years from the billing period beginning not more than 30 days
2792following notification to the applicable utility company by the
2793department that an exemption has been authorized pursuant to
2794this subsection and s. 166.231(8).
2795     (b)  To receive this exemption, a business must file an
2796application, with the enterprise zone development agency having
2797jurisdiction over the enterprise zone where the business is
2798located, on a form provided by the department for the purposes
2799of this subsection and s. 166.231(8). The application shall be
2800made under oath and shall include:
2801     1.  The name and location of the business.
2802     2.  The identifying number assigned pursuant to s. 290.0065
2803to the enterprise zone in which the business is located.
2804     3.  The date on which electrical service is to be first
2805initiated to the business.
2806     4.  The name and mailing address of the entity from which
2807electrical energy is to be purchased.
2808     5.  The date of the application.
2809     6.  The name of the city in which the business is located.
2810     7.  If applicable, the name and address of each permanent
2811employee of the business including, for each employee who is a
2812resident of an enterprise zone, the identifying number assigned
2813pursuant to s. 290.0065 to the enterprise zone in which the
2814employee resides.
2815     8.  Whether the business is a small business as defined by
2816s. 288.703.
2817     (c)  Within 10 working days after receipt of an
2818application, the enterprise zone development agency shall review
2819the application to determine if it contains all information
2820required pursuant to paragraph (b) and meets the criteria set
2821out in this subsection. The agency shall certify all
2822applications that contain the information required pursuant to
2823paragraph (b) and meet the criteria set out in this subsection
2824as eligible to receive an exemption. If applicable, the agency
2825shall also certify if 20 percent of the employees of the
2826business are residents of an enterprise zone, excluding
2827temporary and part-time employees. The certification shall be in
2828writing, and a copy of the certification shall be transmitted to
2829the executive director of the Department of Revenue. The
2830applicant shall be responsible for forwarding a certified
2831application to the department within 6 months after the
2832occurrence of the appropriate qualifying provision set out in
2833paragraph (f).
2834     (d)  If, in a subsequent audit conducted by the department,
2835it is determined that the business did not meet the criteria
2836mandated in this subsection, the amount of taxes exempted shall
2837immediately be due and payable to the department by the
2838business, together with the appropriate interest and penalty,
2839computed from the due date of each bill for the electrical
2840energy purchased as exempt under this subsection, in the manner
2841prescribed by this chapter.
2842     (e)  The department shall adopt rules governing
2843applications for, issuance of, and the form of applications for
2844the exemption authorized in this subsection and provisions for
2845recapture of taxes exempted under this subsection, and the
2846department may establish guidelines as to qualifications for
2847exemption.
2848     (f)  For the purpose of the exemption provided in this
2849subsection, the term "qualified business" means a business which
2850is:
2851     1.  First occupying a new structure to which electrical
2852service, other than that used for construction purposes, has not
2853been previously provided or furnished;
2854     2.  Newly occupying an existing, remodeled, renovated, or
2855rehabilitated structure to which electrical service, other than
2856that used for remodeling, renovation, or rehabilitation of the
2857structure, has not been provided or furnished in the three
2858preceding billing periods; or
2859     3.  Occupying a new, remodeled, rebuilt, renovated, or
2860rehabilitated structure for which a refund has been granted
2861pursuant to paragraph (5)(g).
2862     (g)  This subsection expires on the date specified in s.
2863290.016 for the expiration of the Florida Enterprise Zone Act,
2864except that:
2865     1.  Paragraph (d) shall not expire; and
2866     2.  Any qualified business which has been granted an
2867exemption under this subsection prior to that date shall be
2868allowed the full benefit of this exemption as if this subsection
2869had not expired on that date.
2870     (16)  EXEMPTIONS; SPACE ACTIVITIES.-
2871     (a)  There shall be exempt from the tax imposed by this
2872chapter:
2873     1.  The sale, lease, use, storage, consumption, or
2874distribution in this state of any orbital space facility, space
2875propulsion system, or space vehicle, satellite, or station of
2876any kind possessing space flight capacity, including the
2877components thereof.
2878     2.  The sale, lease, use, storage, consumption, or
2879distribution in this state of tangible personal property placed
2880on or used aboard any orbital space facility, space propulsion
2881system, or space vehicle, satellite, or station of any kind,
2882irrespective of whether such tangible personal property is
2883returned to this state for subsequent use, storage, or
2884consumption in any manner. This exemption is not affected by the
2885failure of a launch to occur, or the destruction of a launch
2886vehicle or any components thereof.
2887     (b)  This subsection shall be strictly construed and
2888enforced.
2889     (17)  EXEMPTIONS; CERTAIN GOVERNMENT CONTRACTORS.-
2890     (a)  Subject to paragraph (d), the tax imposed by this
2891chapter does not apply to the sale to or use by a government
2892contractor of overhead materials. The term "government
2893contractor" includes prime contractors and subcontractors.
2894     (b)  As used in this subsection, the term "overhead
2895materials" means all tangible personal property, other than
2896qualifying property as defined in s. 212.02(14)(a) and
2897electricity, which is used or consumed in the performance of a
2898qualifying contract, title to which property vests in or passes
2899to the government under the contract.
2900     (c)  As used in this subsection and in s. 212.02(14)(a),
2901the term "qualifying contract" means a contract with the United
2902States Department of Defense or the National Aeronautics and
2903Space Administration, or a subcontract thereunder, but does not
2904include a contract or subcontract for the repair, alteration,
2905improvement, or construction of real property, except to the
2906extent that purchases under such a contract would otherwise be
2907exempt from the tax imposed by this chapter.
2908     (d)  The exemption provided in this subsection applies as
2909follows:
2910     1.  Beginning July 1, 2000, the tax imposed by this chapter
2911shall be applicable to 60 percent of the sales price or cost
2912price of such overhead materials.
2913     2.  Beginning July 1, 2001, the tax imposed by this chapter
2914shall be applicable to 40 percent of the sales price or cost
2915price of such overhead materials.
2916     3.  Beginning July 1, 2002, the tax imposed by this chapter
2917shall be applicable to 20 percent of the sales price or cost
2918price of such overhead materials.
2919     4.  Beginning July 1, 2003, the entire sales price or cost
2920price of such overhead materials is exempt from the tax imposed
2921by this chapter.
2922
2923The exemption provided in this subsection does not apply to any
2924part of the cost of overhead materials allocated to a contract
2925that is not a qualifying contract.
2926     (e)  Possession by a seller of a resale certificate or
2927direct-pay permit relieves the seller from the responsibility of
2928collecting the tax, and the department shall look solely to the
2929contractor for recovery of such tax if it determines that the
2930contractor was not entitled to the exemption. The contractor
2931shall self-accrue and remit any applicable sales or use tax due
2932with respect to overhead materials and with respect to costs
2933allocable to contracts that are not qualifying contracts. The
2934department may amend its rules to reflect the use of resale
2935certificates and direct-pay permits with respect to the
2936exemption provided for in this subsection.
2937     (f)  This subsection is not an expression of legislative
2938intent as to the applicability of any tax to any sale or use of
2939overhead materials prior to July 1, 1999. In addition, this
2940subsection does not imply that transactions or costs that are
2941not described in this subsection are taxable.
2942     (18)  MACHINERY AND EQUIPMENT USED PREDOMINANTLY FOR
2943RESEARCH AND DEVELOPMENT.-
2944     (a)  Machinery and equipment used predominantly for
2945research and development as defined in this subsection are
2946exempt from the tax imposed by this chapter.
2947     (b)  For purposes of this subsection:
2948     1.  "Machinery and equipment" includes, but is not limited
2949to, molds, dies, machine tooling, other appurtenances or
2950accessories to machinery and equipment, testing and measuring
2951equipment, test beds, computers, and software, whether purchased
2952or self-fabricated, and, if self-fabricated, includes materials
2953and labor for design, fabrication, and assembly.
2954     2.  "Predominantly" means at least 50 percent of the time.
2955     3.  "Research and development" means research that has one
2956of the following as its ultimate goal:
2957     a.  Basic research in a scientific field of endeavor;
2958     b.  Advancing knowledge or technology in a scientific or
2959technical field of endeavor;
2960     c.  The development of a new product, whether or not the
2961new product is offered for sale;
2962     d.  The improvement of an existing product, whether or not
2963the improved product is offered for sale;
2964     e.  The development of new uses of an existing product,
2965whether or not a new use is offered as a rationale to purchase
2966the product; or
2967     f.  The design and development of prototypes, whether or
2968not a resulting product is offered for sale.
2969
2970The term "research and development" does not include ordinary
2971testing or inspection of materials or products used for quality
2972control, market research, efficiency surveys, consumer surveys,
2973advertising and promotions, management studies, or research in
2974connection with literary, historical, social science,
2975psychological, or other similar nontechnical activities.
2976     (c)  The department may adopt rules pursuant to ss.
2977120.536(1) and 120.54 that provide for administering and
2978implementing this exemption.
2979     (d)  A person who claims the exemption provided in this
2980subsection shall furnish the vendor of the machinery or
2981equipment, including the vendor of materials and labor used in
2982self-fabrication of the machinery or equipment, an affidavit
2983stating that the item or items for which an exemption is claimed
2984are machinery and equipment that will be used predominantly for
2985research and development as required by this subsection. A
2986purchaser who claims the exemption by refund shall include the
2987affidavit with the refund application. The affidavit must
2988contain the purchaser's name, address, sales and use tax
2989registration number, and, if applicable, federal employer's
2990identification number. Any person fraudulently furnishing an
2991affidavit to the vendor for the purpose of evading payment of
2992any tax imposed under this chapter shall be subject to the
2993penalty set forth in s. 212.085 and as otherwise provided by
2994law.
2995     (e)  In lieu of furnishing an affidavit, a purchaser
2996claiming the exemption provided in this subsection who has a
2997direct-pay permit may furnish the vendor with a copy of the
2998direct-pay permit and shall maintain all documentation necessary
2999to prove the exempt status of the purchases and fabrication
3000activity.
3001     (f)  Purchasers shall maintain all documentation necessary
3002to prove the exempt status of purchases and fabrication activity
3003and make such documentation available for inspection pursuant to
3004the requirements of s. 212.13(2).
3005     Section 4.  (1)  Effective July 1, 2015, ss. 212.051,
3006212.052, 212.0598, 212.0602, 212.0801, 212.0821, 212.09,
3007212.096, 212.097, and 212.098, Florida Statutes, are repealed.
3008     (2)  Unless modified or reenacted as provided in s.
300911.9035, Florida Statutes, effective July 1, 2015, any
3010exemption, deduction, or credit from the state sales and use tax
3011or any exclusion of sales and services from such tax granted by
3012the following is repealed:
3013     (a)  Section 212.02, Florida Statutes, except rent on low-
3014income housing under s. 212.02(2), Florida Statutes.
3015     (b)  Section 212.03, Florida Statutes, except rent charges
3016paid by long-term residents under s. 212.03(4), Florida
3017Statutes; rent charges paid by full-time students, by active
3018military personnel, and by permanent residents under s.
3019212.03(7)(a); Florida Statutes; rent charges in mobile home
3020parks under s. 212.03(7)(c), Florida Statutes; and rent charges
3021for living accommodations in migrant labor camps under s.
3022212.03(7)(d), Florida Statutes.
3023     (c)  Section 212.031, Florida Statutes, except utility
3024charges under s. 212.031(7), Florida Statutes.
3025     (d)  Sections 212.04, 212.05, and 212.0506, Florida
3026Statutes.
3027     (e)  Sections 212.06 and 212.081, Florida Statutes, except
3028any sale exempted by federal law or the United States
3029Constitution.
3030     (f)  Sections 212.0601, 212.07, 212.12, 212.20, and 376.75,
3031Florida Statutes.
3032     Section 5.  Except as otherwise expressly provided in this
3033act, this act shall take effect July 1, 2012.


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