Florida Senate - 2019 CS for SB 576 By the Committee on Finance and Tax; and Senators Perry and Flores 593-03897-19 2019576c1 1 A bill to be entitled 2 An act relating to a back-to-school sales tax holiday; 3 providing exemptions from the sales and use tax on the 4 retail sale of certain clothing, school supplies, 5 personal computers, and personal computer-related 6 accessories during a specified timeframe; defining 7 terms; specifying locations where the exemptions do 8 not apply; authorizing certain dealers to opt out of 9 participating in the tax holiday, subject to certain 10 requirements; authorizing the Department of Revenue to 11 adopt emergency rules; providing an appropriation; 12 providing an effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Clothing, school supplies, personal computers, 17 and personal computer-related accessories; sales tax holiday.— 18 (1) The tax levied under chapter 212, Florida Statutes, may 19 not be collected during the period from 12:01 a.m. on August 2, 20 2019, through 11:59 p.m. on August 11, 2019, on the retail sale 21 of: 22 (a) Clothing, wallets, or bags, including handbags, 23 backpacks, fanny packs, and diaper bags, but excluding 24 briefcases, suitcases, and other garment bags, having a sales 25 price of $100 or less per item. As used in this paragraph, the 26 term “clothing” means: 27 1. Any article of wearing apparel intended to be worn on or 28 about the human body, excluding watches, watchbands, jewelry, 29 umbrellas, and handkerchiefs; and 30 2. All footwear, excluding skis, swim fins, roller blades, 31 and skates. 32 (b) School supplies having a sales price of $15 or less per 33 item. As used in this paragraph, the term “school supplies” 34 means pens, pencils, erasers, crayons, notebooks, notebook 35 filler paper, legal pads, binders, lunch boxes, construction 36 paper, markers, folders, poster board, composition books, poster 37 paper, scissors, cellophane tape, glue or paste, rulers, 38 computer disks, protractors, compasses, and calculators. 39 (c) Personal computers and related accessories that have a 40 sales price of $1,000 or less per item and that are purchased 41 for noncommercial home or personal use. As used in this 42 paragraph, the term: 43 1. “Personal computer” means an electronic device that 44 accepts information in digital or a similar form and manipulates 45 such information for a result based on a sequence of 46 instructions. The term includes an electronic book reader and a 47 laptop, desktop, handheld, tablet, or tower computer, but does 48 not include a cellular telephone, video game console, digital 49 media receiver, or device that is not primarily designed to 50 process data. 51 2. “Related accessories” includes keyboards, mice, personal 52 digital assistants, monitors, other peripheral devices, modems, 53 routers, and nonrecreational software, regardless of whether the 54 accessories are used in association with a personal computer 55 base unit. The term does not include furniture or systems, 56 devices, software, monitors with a television tuner, or other 57 peripherals that are designed or intended primarily for 58 recreational use. 59 (2) The tax exemptions provided in this section do not 60 apply to sales within a theme park or entertainment complex as 61 defined in s. 509.013(9), Florida Statutes, within a public 62 lodging establishment as defined in s. 509.013(4), Florida 63 Statutes, or within an airport as defined in s. 330.27(2), 64 Florida Statutes. 65 (3) The tax exemptions provided in this section may apply 66 at the option of a dealer if less than 5 percent of the dealer’s 67 gross sales of tangible personal property in the prior calendar 68 year consist of items that would be exempt under this section. 69 If a qualifying dealer chooses not to participate in the tax 70 holiday, by August 1, 2019, the dealer must notify the 71 Department of Revenue in writing of its election to collect 72 sales tax during the holiday and must post a copy of that notice 73 in a conspicuous location at its place of business. 74 (4) The Department of Revenue may, and all conditions are 75 deemed met to, adopt emergency rules pursuant to s. 120.54(4), 76 Florida Statutes, to implement this section. 77 (5) For the 2018-2019 fiscal year, the sum of $237,000 in 78 nonrecurring funds is appropriated from the General Revenue Fund 79 to the Department of Revenue for the purpose of implementing 80 this section. Funds remaining unexpended or unencumbered from 81 this appropriation as of June 30, 2019, shall revert and be 82 reappropriated for the same purpose in the 2019-2020 fiscal 83 year. 84 Section 2. This act shall take effect upon becoming a law.