Florida Senate - 2017 COMMITTEE AMENDMENT Bill No. SB 378 Ì728458QÎ728458 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/21/2017 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Appropriations Subcommittee on Finance and Tax (Stargel) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 32 - 274 4 and insert: 5 Section 1. Effective January 1, 2018, paragraphs (c) and 6 (d) of subsection (1) of section 212.031, Florida Statutes, are 7 amended to read: 8 212.031 Tax on rental or license fee for use of real 9 property.— 10 (1) 11 (c) For the exercise of such privilege, a tax is levied in 12 an amount equal to 56percent of and on the total rent or 13 license fee charged for such real property by the person 14 charging or collecting the rental or license fee. The total rent 15 or license fee charged for such real property shall include 16 payments for the granting of a privilege to use or occupy real 17 property for any purpose and shall include base rent, percentage 18 rents, or similar charges. Such charges shall be included in the 19 total rent or license fee subject to tax under this section 20 whether or not they can be attributed to the ability of the 21 lessor’s or licensor’s property as used or operated to attract 22 customers. Payments for intrinsically valuable personal property 23 such as franchises, trademarks, service marks, logos, or patents 24 are not subject to tax under this section. In the case of a 25 contractual arrangement that provides for both payments taxable 26 as total rent or license fee and payments not subject to tax, 27 the tax shall be based on a reasonable allocation of such 28 payments and shall not apply to that portion which is for the 29 nontaxable payments. 30 (d) When the rental or license fee of any such real 31 property is paid by way of property, goods, wares, merchandise, 32 services, or other thing of value, the tax shall be at the rate 33 of 56percent of the value of the property, goods, wares, 34 merchandise, services, or other thing of value. 35 Section 2. The amendments made by this act to s. 212.031, 36 Florida Statutes, apply to payments due on or after January 1, 37 2018, for taxable leases and licenses to use real property. The 38 tax rate in effect at the time that the tenant or licensee 39 occupies, uses, or is entitled to the occupancy or use of the 40 real property is the tax rate applicable to a transaction 41 taxable under s. 212.031, Florida Statutes, regardless of when 42 the rent or license fee is paid. The applicable tax rate may not 43 be avoided by delaying rent or license fee payments. 44 Section 3. Effective February 1, 2018, paragraph (d) of 45 subsection (6) of section 212.20, Florida Statutes, is amended 46 to read: 47 212.20 Funds collected, disposition; additional powers of 48 department; operational expense; refund of taxes adjudicated 49 unconstitutionally collected.— 50 (6) Distribution of all proceeds under this chapter and ss. 51 202.18(1)(b) and (2)(b) and 203.01(1)(a)3. is as follows: 52 (d) The proceeds of all other taxes and fees imposed 53 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b) 54 and (2)(b) shall be distributed as follows: 55 1. In any fiscal year, the greater of $500 million, minus 56 an amount equal to 4.6 percent of the proceeds of the taxes 57 collected pursuant to chapter 201, or 5.2 percent of all other 58 taxes and fees imposed pursuant to this chapter or remitted 59 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in 60 monthly installments into the General Revenue Fund. 61 2. After the distribution under subparagraph 1., 9.0720 628.9744percent of the amount remitted by a sales tax dealer 63 located within a participating county pursuant to s. 218.61 64 shall be transferred into the Local Government Half-cent Sales 65 Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to 66 be transferred shall be reduced by 0.1 percent, and the 67 department shall distribute this amount to the Public Employees 68 Relations Commission Trust Fund less $5,000 each month, which 69 shall be added to the amount calculated in subparagraph 3. and 70 distributed accordingly. 71 3. After the distribution under subparagraphs 1. and 2., 72 0.09750.0966percent shall be transferred to the Local 73 Government Half-cent Sales Tax Clearing Trust Fund and 74 distributed pursuant to s. 218.65. 75 4. After the distributions under subparagraphs 1., 2., and 76 3., 2.10602.0810percent of the available proceeds shall be 77 transferred monthly to the Revenue Sharing Trust Fund for 78 Counties pursuant to s. 218.215. 79 5. After the distributions under subparagraphs 1., 2., and 80 3., 1.38101.3653percent of the available proceeds shall be 81 transferred monthly to the Revenue Sharing Trust Fund for 82 Municipalities pursuant to s. 218.215. If the total revenue to 83 be distributed pursuant to this subparagraph is at least as 84 great as the amount due from the Revenue Sharing Trust Fund for 85 Municipalities and the former Municipal Financial Assistance 86 Trust Fund in state fiscal year 1999-2000, no municipality shall 87 receive less than the amount due from the Revenue Sharing Trust 88 Fund for Municipalities and the former Municipal Financial 89 Assistance Trust Fund in state fiscal year 1999-2000. If the 90 total proceeds to be distributed are less than the amount 91 received in combination from the Revenue Sharing Trust Fund for 92 Municipalities and the former Municipal Financial Assistance 93 Trust Fund in state fiscal year 1999-2000, each municipality 94 shall receive an amount proportionate to the amount it was due 95 in state fiscal year 1999-2000. 96 6. Of the remaining proceeds: 97 a. In each fiscal year, the sum of $29,915,500 shall be 98 divided into as many equal parts as there are counties in the 99 state, and one part shall be distributed to each county. The 100 distribution among the several counties must begin each fiscal 101 year on or before January 5th and continue monthly for a total 102 of 4 months. If a local or special law required that any moneys 103 accruing to a county in fiscal year 1999-2000 under the then 104 existing provisions of s. 550.135 be paid directly to the 105 district school board, special district, or a municipal 106 government, such payment must continue until the local or 107 special law is amended or repealed. The state covenants with 108 holders of bonds or other instruments of indebtedness issued by 109 local governments, special districts, or district school boards 110 before July 1, 2000, that it is not the intent of this 111 subparagraph to adversely affect the rights of those holders or 112 relieve local governments, special districts, or district school 113 boards of the duty to meet their obligations as a result of 114 previous pledges or assignments or trusts entered into which 115 obligated funds received from the distribution to county 116 governments under then-existing s. 550.135. This distribution 117 specifically is in lieu of funds distributed under s. 550.135 118 before July 1, 2000. 119 b. The department shall distribute $166,667 monthly to each 120 applicant certified as a facility for a new or retained 121 professional sports franchise pursuant to s. 288.1162. Up to 122 $41,667 shall be distributed monthly by the department to each 123 certified applicant as defined in s. 288.11621 for a facility 124 for a spring training franchise. However, not more than $416,670 125 may be distributed monthly in the aggregate to all certified 126 applicants for facilities for spring training franchises. 127 Distributions begin 60 days after such certification and 128 continue for not more than 30 years, except as otherwise 129 provided in s. 288.11621. A certified applicant identified in 130 this sub-subparagraph may not receive more in distributions than 131 expended by the applicant for the public purposes provided in s. 132 288.1162(5) or s. 288.11621(3). 133 c. Beginning 30 days after notice by the Department of 134 Economic Opportunity to the Department of Revenue that an 135 applicant has been certified as the professional golf hall of 136 fame pursuant to s. 288.1168 and is open to the public, $166,667 137 shall be distributed monthly, for up to 300 months, to the 138 applicant. 139 d. Beginning 30 days after notice by the Department of 140 Economic Opportunity to the Department of Revenue that the 141 applicant has been certified as the International Game Fish 142 Association World Center facility pursuant to s. 288.1169, and 143 the facility is open to the public, $83,333 shall be distributed 144 monthly, for up to 168 months, to the applicant. This 145 distribution is subject to reduction pursuant to s. 288.1169. A 146 lump sum payment of $999,996 shall be made after certification 147 and before July 1, 2000. 148 e. The department shall distribute up to $83,333 monthly to 149 each certified applicant as defined in s. 288.11631 for a 150 facility used by a single spring training franchise, or up to 151 $166,667 monthly to each certified applicant as defined in s. 152 288.11631 for a facility used by more than one spring training 153 franchise. Monthly distributions begin 60 days after such 154 certification or July 1, 2016, whichever is later, and continue 155 for not more than 20 years to each certified applicant as 156 defined in s. 288.11631 for a facility used by a single spring 157 training franchise or not more than 25 years to each certified 158 applicant as defined in s. 288.11631 for a facility used by more 159 than one spring training franchise. A certified applicant 160 identified in this sub-subparagraph may not receive more in 161 distributions than expended by the applicant for the public 162 purposes provided in s. 288.11631(3). 163 f. Beginning 45 days after notice by the Department of 164 Economic Opportunity to the Department of Revenue that an 165 applicant has been approved by the Legislature and certified by 166 the Department of Economic Opportunity under s. 288.11625 or 167 upon a date specified by the Department of Economic Opportunity 168 as provided under s. 288.11625(6)(d), the department shall 169 distribute each month an amount equal to one-twelfth of the 170 annual distribution amount certified by the Department of 171 Economic Opportunity for the applicant. The department may not 172 distribute more than $7 million in the 2014-2015 fiscal year or 173 more than $13 million annually thereafter under this sub 174 subparagraph. 175 g. Beginning December 1, 2015, and ending June 30, 2016, 176 the department shall distribute $26,286 monthly to the State 177 Transportation Trust Fund. Beginning July 1, 2016, the 178 department shall distribute $15,333 monthly to the State 179 Transportation Trust Fund. 180 7. All other proceeds must remain in the General Revenue 181 Fund. 182 183 ================= T I T L E A M E N D M E N T ================ 184 And the title is amended as follows: 185 Delete lines 2 - 21 186 and insert: 187 An act relating to taxation; amending s. 212.031, 188 F.S.; revising the tax rate applicable to the rental 189 or granting of a license to use real property; 190 providing applicability; amending s. 212.20, F.S.; 191 revising the distribution of proceeds from certain 192 taxes to specified trust funds;