Florida Senate - 2013 SENATOR AMENDMENT Bill No. CS/CS/HB 7007, 2nd Eng. Barcode 735928 LEGISLATIVE ACTION Senate . House . . . Floor: 1a/RE/3R . 05/01/2013 06:36 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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