Florida Senate - 2016                               CS for SB 98
       
       
        
       By the Committee on Finance and Tax; and Senators Hukill,
       Latvala, Hays, and Simpson
       
       593-02547-16                                            201698c1
    1                        A bill to be entitled                      
    2         An act relating to the exemption from the sales and
    3         use tax for certain machinery and equipment; amending
    4         s. 212.08, F.S.; providing that the exemption for
    5         certain mixer drums and the parts and labor required
    6         to affix such mixer drums to mixer trucks is repealed
    7         on a specified date; deleting the expiration date for
    8         the exemption for certain industrial machinery and
    9         equipment; providing an effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Paragraph (kkk) of subsection (7) of section
   14  212.08, Florida Statutes, is amended to read:
   15         212.08 Sales, rental, use, consumption, distribution, and
   16  storage tax; specified exemptions.—The sale at retail, the
   17  rental, the use, the consumption, the distribution, and the
   18  storage to be used or consumed in this state of the following
   19  are hereby specifically exempt from the tax imposed by this
   20  chapter.
   21         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   22  entity by this chapter do not inure to any transaction that is
   23  otherwise taxable under this chapter when payment is made by a
   24  representative or employee of the entity by any means,
   25  including, but not limited to, cash, check, or credit card, even
   26  when that representative or employee is subsequently reimbursed
   27  by the entity. In addition, exemptions provided to any entity by
   28  this subsection do not inure to any transaction that is
   29  otherwise taxable under this chapter unless the entity has
   30  obtained a sales tax exemption certificate from the department
   31  or the entity obtains or provides other documentation as
   32  required by the department. Eligible purchases or leases made
   33  with such a certificate must be in strict compliance with this
   34  subsection and departmental rules, and any person who makes an
   35  exempt purchase with a certificate that is not in strict
   36  compliance with this subsection and the rules is liable for and
   37  shall pay the tax. The department may adopt rules to administer
   38  this subsection.
   39         (kkk) Certain machinery and equipment.—
   40         1. Industrial machinery and equipment purchased by eligible
   41  manufacturing businesses which is used at a fixed location in
   42  within this state, or a mixer drum affixed to a mixer truck
   43  which is used at any location within this state to mix, agitate,
   44  and transport freshly mixed concrete in a plastic state, for the
   45  manufacture, processing, compounding, or production of items of
   46  tangible personal property for sale shall be exempt from the tax
   47  imposed by this chapter. Parts and labor required to affix a
   48  mixer drum exempt under this paragraph to a mixer truck are also
   49  exempt. If, at the time of purchase, the purchaser furnishes the
   50  seller with a signed certificate certifying the purchaser’s
   51  entitlement to exemption pursuant to this subparagraph and
   52  subparagraph 2. paragraph, the seller is relieved of the
   53  responsibility for collecting the tax on the sale of such items,
   54  and the department shall look solely to the purchaser for
   55  recovery of the tax if it determines that the purchaser was not
   56  entitled to the exemption.
   57         2. For purposes of this paragraph, the term:
   58         a. “Eligible manufacturing business” means any business
   59  whose primary business activity at the location where the
   60  industrial machinery and equipment is located is within the
   61  industries classified under NAICS codes 31, 32, and 33. As used
   62  in this subparagraph, “NAICS” means those classifications
   63  contained in the North American Industry Classification System,
   64  as published in 2007 by the Office of Management and Budget,
   65  Executive Office of the President.
   66         b. “Primary business activity” means an activity
   67  representing more than 50 percent of the activities conducted at
   68  the location where the industrial machinery and equipment is
   69  located.
   70         c. “Industrial machinery and equipment” means tangible
   71  personal property or other property that has a depreciable life
   72  of 3 years or more and that is used as an integral part in the
   73  manufacturing, processing, compounding, or production of
   74  tangible personal property for sale. A building and its
   75  structural components are not industrial machinery and equipment
   76  unless the building or structural component is so closely
   77  related to the industrial machinery and equipment that it houses
   78  or supports that the building or structural component can be
   79  expected to be replaced when the machinery and equipment are
   80  replaced. Heating and air conditioning systems are not
   81  industrial machinery and equipment unless the sole justification
   82  for their installation is to meet the requirements of the
   83  production process, even though the system may provide
   84  incidental comfort to employees or serve, to an insubstantial
   85  degree, nonproduction activities. The term includes parts and
   86  accessories for industrial machinery and equipment only to the
   87  extent that the parts and accessories are purchased prior to the
   88  date the machinery and equipment are placed in service.
   89         3. A mixer drum affixed to a mixer truck which is used at
   90  any location in this state to mix, agitate, and transport
   91  freshly mixed concrete in a plastic state for the manufacture,
   92  processing, compounding, or production of items of tangible
   93  personal property for sale shall be exempt from the tax imposed
   94  by this chapter. Parts and labor required to affix a mixer drum
   95  exempt under this subparagraph to a mixer truck are also exempt.
   96  If, at the time of purchase, the purchaser furnishes the seller
   97  with a signed certificate certifying the purchaser’s entitlement
   98  to exemption pursuant to this subparagraph, the seller is
   99  relieved of the responsibility for collecting the tax on the
  100  sale of such items, and the department shall look solely to the
  101  purchaser for recovery of the tax if it determines that the
  102  purchaser was not entitled to the exemption. This subparagraph
  103  paragraph is repealed April 30, 2017.
  104         Section 2. This act shall take effect July 1, 2016.