Florida Senate - 2013                          SENATOR AMENDMENT
       Bill No. CS/CS/HB 7007, 2nd Eng.
       
       
       
       
       
       
                                Barcode 735928                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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               Floor: 1a/RE/3R         .                                
             05/01/2013 06:36 PM       .                                
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       Senator Hukill moved the following:
       
    1         Senate Amendment to Amendment (969426) (with title
    2  amendment)
    3  
    4         Between lines 291 and 292
    5  insert:
    6         Section 6. Effective April 30, 2014, paragraph (kkk) is
    7  added to subsection (7) of section 212.08, Florida Statutes, to
    8  read:
    9         212.08 Sales, rental, use, consumption, distribution, and
   10  storage tax; specified exemptions.—The sale at retail, the
   11  rental, the use, the consumption, the distribution, and the
   12  storage to be used or consumed in this state of the following
   13  are hereby specifically exempt from the tax imposed by this
   14  chapter.
   15         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   16  entity by this chapter do not inure to any transaction that is
   17  otherwise taxable under this chapter when payment is made by a
   18  representative or employee of the entity by any means,
   19  including, but not limited to, cash, check, or credit card, even
   20  when that representative or employee is subsequently reimbursed
   21  by the entity. In addition, exemptions provided to any entity by
   22  this subsection do not inure to any transaction that is
   23  otherwise taxable under this chapter unless the entity has
   24  obtained a sales tax exemption certificate from the department
   25  or the entity obtains or provides other documentation as
   26  required by the department. Eligible purchases or leases made
   27  with such a certificate must be in strict compliance with this
   28  subsection and departmental rules, and any person who makes an
   29  exempt purchase with a certificate that is not in strict
   30  compliance with this subsection and the rules is liable for and
   31  shall pay the tax. The department may adopt rules to administer
   32  this subsection.
   33         (kkk) Certain machinery and equipment.
   34         1. Industrial machinery and equipment purchased by eligible
   35  manufacturing businesses which is used at a fixed location
   36  within this state for the manufacture, processing, compounding,
   37  or production of items of tangible personal property for sale
   38  shall be exempt from the tax imposed by this chapter. If at the
   39  time of purchase the purchaser furnishes the seller with a
   40  signed certificate certifying the purchaser’s entitlement to
   41  exemption pursuant to this paragraph, the seller is relieved of
   42  the responsibility for collecting the tax on the sale of such
   43  items, and the department shall look solely to the purchaser for
   44  recovery of the tax if it determines that the purchaser was not
   45  entitled to the exemption.
   46         2. For purposes of this paragraph, the term:
   47         a. “Eligible manufacturing business” means any business
   48  whose primary business activity at the location where the
   49  industrial machinery and equipment is located is within the
   50  industries classified under NAICS codes 31, 32, and 33. As used
   51  in this subparagraph, “NAICS” means those classifications
   52  contained in the North American Industry Classification System,
   53  as published in 2007 by the Office of Management and Budget,
   54  Executive Office of the President.
   55         b. “Primary business activity” means an activity
   56  representing more than fifty percent of the activities conducted
   57  at the location where the industrial machinery and equipment is
   58  located.
   59         c. “Industrial machinery and equipment” means tangible
   60  personal property or other property that has a depreciable life
   61  of 3 years or more and that is used as an integral part in the
   62  manufacturing, processing, compounding, or production of
   63  tangible personal property for sale. A building and its
   64  structural components are not industrial machinery and equipment
   65  unless the building or structural component is so closely
   66  related to the industrial machinery and equipment that it houses
   67  or supports that the building or structural component can be
   68  expected to be replaced when the machinery and equipment are
   69  replaced. Heating and air conditioning systems are not
   70  industrial machinery and equipment unless the sole justification
   71  for their installation is to meet the requirements of the
   72  production process, even though the system may provide
   73  incidental comfort to employees or serve, to an insubstantial
   74  degree, nonproduction activities. The term includes parts and
   75  accessories for industrial machinery and equipment only to the
   76  extent that the parts and accessories are purchased prior to the
   77  date the machinery and equipment are placed in service.
   78         3. This paragraph is repealed effective April 30, 2017.
   79  
   80  ================= T I T L E  A M E N D M E N T ================
   81         And the title is amended as follows:
   82         Delete line 2459
   83  and insert:
   84         amendments; providing for an exemption from the tax
   85         imposed under ch. 212, F.S., for certain machinery and
   86         equipment; providing for repeal; amending s. 213.053,
   87         F.S.; authorizing the