Florida Senate - 2023                                     SB 396
       By Senator Rodriguez
       40-00678A-23                                           2023396__
    1                        A bill to be entitled                      
    2         An act relating to the sales tax on motor vehicle
    3         leases and rentals; amending s. 212.05, F.S.;
    4         providing that sales tax does not apply to certain
    5         leases or rentals of motor vehicles used primarily in
    6         the trade or established business of the lessee or
    7         rentee; making a technical change; providing an
    8         effective date.
   10  Be It Enacted by the Legislature of the State of Florida:
   12         Section 1. Paragraph (c) of subsection (1) of section
   13  212.05, Florida Statutes, is amended to read:
   14         212.05 Sales, storage, use tax.—It is hereby declared to be
   15  the legislative intent that every person is exercising a taxable
   16  privilege who engages in the business of selling tangible
   17  personal property at retail in this state, including the
   18  business of making or facilitating remote sales; who rents or
   19  furnishes any of the things or services taxable under this
   20  chapter; or who stores for use or consumption in this state any
   21  item or article of tangible personal property as defined herein
   22  and who leases or rents such property within the state.
   23         (1) For the exercise of such privilege, a tax is levied on
   24  each taxable transaction or incident, which tax is due and
   25  payable as follows:
   26         (c) At the rate of 6 percent of the gross proceeds derived
   27  from the lease or rental of tangible personal property, as
   28  defined herein; however, the following special provisions apply
   29  to the lease or rental of motor vehicles and to peer-to-peer
   30  car-sharing programs:
   31         1. When a motor vehicle is leased or rented by a motor
   32  vehicle rental company or through a peer-to-peer car-sharing
   33  program as those terms are defined in s. 212.0606(1) for a
   34  period of less than 12 months:
   35         a. If the motor vehicle is rented in Florida, the entire
   36  amount of such rental is taxable, even if the vehicle is dropped
   37  off in another state.
   38         b. If the motor vehicle is rented in another state and
   39  dropped off in Florida, the rental is exempt from Florida tax.
   40         c. If the motor vehicle is rented through a peer-to-peer
   41  car-sharing program, the peer-to-peer car-sharing program shall
   42  collect and remit the applicable tax due in connection with the
   43  rental.
   44         2. Except as provided in subparagraph 3., for the lease or
   45  rental of a motor vehicle for a period of not less than 12
   46  months, sales tax is due on the lease or rental payments if the
   47  vehicle is registered in this state; provided, however, that no
   48  tax shall be due if the taxpayer documents use of the motor
   49  vehicle outside this state and tax is being paid on the lease or
   50  rental payments in another state.
   51         3. The tax imposed by this chapter does not apply to the
   52  lease or rental of a commercial motor vehicle as defined in s.
   53  316.003(14)(a) to one lessee or rentee, or of a motor vehicle as
   54  defined in s. 316.003 which is to be used primarily in the trade
   55  or established business of the lessee or rentee, for a period of
   56  not less than 12 months when tax was paid on the sales purchase
   57  price of such vehicle by the lessor. To the extent tax was paid
   58  with respect to the purchase of such vehicle in another state,
   59  territory of the United States, or the District of Columbia, the
   60  Florida tax payable shall be reduced in accordance with s.
   61  212.06(7). This subparagraph shall only be available when the
   62  lease or rental of such property is an established business or
   63  part of an established business or the same is incidental or
   64  germane to such business.
   65         Section 2. This act shall take effect July 1, 2023.