Florida Senate - 2011                                    SB 1406
       
       
       
       By Senator Bogdanoff
       
       
       
       
       25-01483-11                                           20111406__
    1                        A bill to be entitled                      
    2         An act relating to replacing revenue from the required
    3         local effort school property tax with revenue from a
    4         state sales tax increase; providing legislative intent
    5         and findings; amending ss. 212.03, 212.031, 212.04,
    6         212.05, 212.0501, 212.0506, 212.06, and 212.08, F.S.;
    7         providing for a 2.5 cent increase in the tax on sales,
    8         use, and other transactions; amending s. 212.12, F.S.;
    9         revising brackets for calculating sales tax amounts;
   10         amending s. 212.20, F.S.; providing for reservation
   11         and allocation of revenues from the additional 2.5
   12         cent increase in the tax rate; amending ss. 11.45,
   13         202.18, 218.245, 218.65, 288.11621, and 288.1169,
   14         F.S.; conforming cross-references; amending s.
   15         1011.62, F.S.; conforming provisions relating to
   16         calculating the required local effort for school
   17         funding; amending s. 1011.71, F.S.; deleting a
   18         requirement that a district school board levy the
   19         minimum millage rate necessary to provide the
   20         district’s required local effort; amending s. 218.67,
   21         F.S.; conforming provisions relating to funding for
   22         fiscally constrained counties; amending s. 1002.32,
   23         F.S.; conforming provisions relating to funding for
   24         developmental research schools; amending s. 1011.02,
   25         F.S.; conforming provisions relating to the adoption
   26         of a district school board budget; amending s.
   27         200.065, F.S.; revising the notice form relating to a
   28         district school board’s proposed tax increase for
   29         required local effort; providing effective dates.
   30  
   31         WHEREAS, job creation is the number-one goal of Florida
   32  residents, and
   33         WHEREAS, in addition to tourism and agriculture, growth is
   34  one of the three pillars of Florida’s economy, and
   35         WHEREAS, although Florida does not levy a state income tax,
   36  it is widely known that property taxes are often a barrier to
   37  growth and business expansion of existing Florida businesses and
   38  expansion and relocation to Florida for businesses currently
   39  located outside of Florida, and
   40         WHEREAS, decreases in fixed-cost asset taxes, including,
   41  but not limited to, property taxes, that must be paid whether or
   42  not a profit is made and revenue-neutral replacement of the
   43  fixed-cost asset taxes with variable cost transaction and
   44  consumption taxes will benefit businesses that are considering
   45  expansion in and relocation to Florida, and
   46         WHEREAS, decreases in property taxes will allow Florida
   47  homeowners and renters to choose where to direct the money they
   48  save through reduced property taxes and rent, and
   49         WHEREAS, approximately 25 percent of sales taxes are paid
   50  by Florida visitors, and
   51         WHEREAS, the required local effort school property tax that
   52  is required by the state to be levied by the local governments
   53  to fund public education is approximately $8 billion and is
   54  often 30 percent or more of the overall property tax levied by
   55  most Florida local governments, and
   56         WHEREAS, there is no statutory provision that requires
   57  public education to be funded by property taxes rather than by
   58  other methods of taxation, NOW, THEREFORE,
   59  
   60  Be It Enacted by the Legislature of the State of Florida:
   61  
   62         Section 1. Legislative intent and findings.—
   63         (1) The Legislature intends to stimulate growth, business
   64  expansion, and job creation through revenue-neutral tax reform.
   65  Therefore, the Legislature finds that:
   66         (a) The required local effort school property tax shall be
   67  replaced in a revenue-neutral manner by a 2.5 cent sales tax
   68  increase.
   69         (b) The required local effort school property tax shall be
   70  eliminated from the local property tax levy beginning in
   71  November 2012, and a 2.5 cent sales tax increase shall become
   72  effective beginning January 1, 2012, in order to build up funds
   73  for replacing the required local effort dollar for dollar.
   74         (c) The formulas currently used for determining required
   75  local effort shall be maintained, but future monetary increases
   76  or decreases required by such formulas shall be generated on a
   77  dollar-for-dollar basis from a 2.5 cent sales tax increase
   78  rather than from the adjustment of property tax millage.
   79         (d) It is financially prudent to allow the buildup of a
   80  revenue reserve from the increase in the sales tax to shield
   81  against any potential economic downturn and to ensure that
   82  sufficient funds are available for replacing the currently
   83  required local effort school property tax. However, if the
   84  reserve exceeds 50 percent of the estimated annual amount that
   85  would otherwise have to come from the required local effort, the
   86  Legislature intends to distribute the excess reserve to local
   87  school boards on a dollar-for-dollar basis to reduce local
   88  option school property taxes.
   89         (2) The Legislature intends for the specific sales tax
   90  increase provided for in this act to be a replacement for the
   91  required local effort school property tax and for such tax to be
   92  known and referred to as the “Specified Education Sales Tax.”
   93         Section 2. Subsections (1), (3), and (6) of section 212.03,
   94  Florida Statutes, are amended to read:
   95         212.03 Transient rentals tax; rate, procedure, enforcement,
   96  exemptions.—
   97         (1)(a) It is hereby declared to be the legislative intent
   98  that every person is exercising a taxable privilege who engages
   99  in the business of renting, leasing, letting, or granting a
  100  license to use any living quarters or sleeping or housekeeping
  101  accommodations in, from, or a part of, or in connection with any
  102  hotel, apartment house, roominghouse, tourist or trailer camp,
  103  mobile home park, recreational vehicle park, condominium, or
  104  timeshare resort. However, any person who rents, leases, lets,
  105  or grants a license to others to use, occupy, or enter upon any
  106  living quarters or sleeping or housekeeping accommodations in
  107  any apartment house, roominghouse, tourist camp, trailer camp,
  108  mobile home park, recreational vehicle park, condominium, or
  109  timeshare resort and who exclusively enters into a bona fide
  110  written agreement for continuous residence for longer than 6
  111  months in duration at such property is not exercising a taxable
  112  privilege. For the exercise of such taxable privilege, a tax is
  113  hereby levied in an amount equal to 8.5 6 percent of and on the
  114  total rental charged for such living quarters or sleeping or
  115  housekeeping accommodations by the person charging or collecting
  116  the rental. Such tax shall apply to hotels, apartment houses,
  117  roominghouses, tourist or trailer camps, mobile home parks,
  118  recreational vehicle parks, condominiums, or timeshare resorts,
  119  whether or not these facilities have dining rooms, cafes, or
  120  other places where meals or lunches are sold or served to
  121  guests.
  122         (b)1. Tax shall be due on the consideration paid for
  123  occupancy in the county pursuant to a regulated short-term
  124  product, as defined in s. 721.05, or occupancy in the county
  125  pursuant to a product that would be deemed a regulated short
  126  term product if the agreement to purchase the short-term right
  127  was executed in this state. Such tax shall be collected on the
  128  last day of occupancy within the county unless such
  129  consideration is applied to the purchase of a timeshare estate.
  130  The occupancy of an accommodation of a timeshare resort pursuant
  131  to a timeshare plan, a multisite timeshare plan, or an exchange
  132  transaction in an exchange program, as defined in s. 721.05, by
  133  the owner of a timeshare interest or such owner’s guest, which
  134  guest is not paying monetary consideration to the owner or to a
  135  third party for the benefit of the owner, is not a privilege
  136  subject to taxation under this section. A membership or
  137  transaction fee paid by a timeshare owner that does not provide
  138  the timeshare owner with the right to occupy any specific
  139  timeshare unit but merely provides the timeshare owner with the
  140  opportunity to exchange a timeshare interest through an exchange
  141  program is a service charge and not subject to taxation under
  142  this section.
  143         2. Consideration paid for the purchase of a timeshare
  144  license in a timeshare plan, as defined in s. 721.05, is rent
  145  subject to taxation under this section.
  146         (3) When rentals are received by way of property, goods,
  147  wares, merchandise, services, or other things of value, the tax
  148  shall be at the rate of 8.5 6 percent of the value of the
  149  property, goods, wares, merchandise, services, or other things
  150  of value.
  151         (6) It is the legislative intent that every person is
  152  engaging in a taxable privilege who leases or rents parking or
  153  storage spaces for motor vehicles in parking lots or garages,
  154  who leases or rents docking or storage spaces for boats in boat
  155  docks or marinas, or who leases or rents tie-down or storage
  156  space for aircraft at airports. For the exercise of this
  157  privilege, a tax is hereby levied at the rate of 8.5 6 percent
  158  on the total rental charged.
  159         Section 3. Paragraphs (c) and (d) of subsection (1) of
  160  section 212.031, Florida Statutes, are amended to read:
  161         212.031 Tax on rental or license fee for use of real
  162  property.—
  163         (1)
  164         (c) For the exercise of such privilege, a tax is levied in
  165  an amount equal to 8.5 6 percent of and on the total rent or
  166  license fee charged for such real property by the person
  167  charging or collecting the rental or license fee. The total rent
  168  or license fee charged for such real property shall include
  169  payments for the granting of a privilege to use or occupy real
  170  property for any purpose and shall include base rent, percentage
  171  rents, or similar charges. Such charges shall be included in the
  172  total rent or license fee subject to tax under this section
  173  whether or not they can be attributed to the ability of the
  174  lessor’s or licensor’s property as used or operated to attract
  175  customers. Payments for intrinsically valuable personal property
  176  such as franchises, trademarks, service marks, logos, or patents
  177  are not subject to tax under this section. In the case of a
  178  contractual arrangement that provides for both payments taxable
  179  as total rent or license fee and payments not subject to tax,
  180  the tax shall be based on a reasonable allocation of such
  181  payments and shall not apply to that portion which is for the
  182  nontaxable payments.
  183         (d) When the rental or license fee of any such real
  184  property is paid by way of property, goods, wares, merchandise,
  185  services, or other thing of value, the tax shall be at the rate
  186  of 8.5 6 percent of the value of the property, goods, wares,
  187  merchandise, services, or other thing of value.
  188         Section 4. Paragraph (b) of subsection (1) and paragraph
  189  (a) of subsection (2) of section 212.04, Florida Statutes, are
  190  amended to read:
  191         212.04 Admissions tax; rate, procedure, enforcement.—
  192         (1)
  193         (b) For the exercise of such privilege, a tax is levied at
  194  the rate of 8.5 6 percent of sales price, or the actual value
  195  received from such admissions, which 8.5 6 percent shall be
  196  added to and collected with all such admissions from the
  197  purchaser thereof, and such tax shall be paid for the exercise
  198  of the privilege as defined in the preceding paragraph. Each
  199  ticket must show on its face the actual sales price of the
  200  admission, or each dealer selling the admission must prominently
  201  display at the box office or other place where the admission
  202  charge is made a notice disclosing the price of the admission,
  203  and the tax shall be computed and collected on the basis of the
  204  actual price of the admission charged by the dealer. The sale
  205  price or actual value of admission shall, for the purpose of
  206  this chapter, be that price remaining after deduction of federal
  207  taxes and state or locally imposed or authorized seat
  208  surcharges, taxes, or fees, if any, imposed upon such admission.
  209  The sale price or actual value does not include separately
  210  stated ticket service charges that are imposed by a facility
  211  ticket office or a ticketing service and added to a separately
  212  stated, established ticket price. The rate of tax on each
  213  admission shall be according to the brackets established by s.
  214  212.12(9).
  215         (2)(a)1. No tax shall be levied on admissions to athletic
  216  or other events sponsored by elementary schools, junior high
  217  schools, middle schools, high schools, community colleges,
  218  public or private colleges and universities, deaf and blind
  219  schools, facilities of the youth services programs of the
  220  Department of Children and Family Services, and state
  221  correctional institutions when only student, faculty, or inmate
  222  talent is used. However, this exemption shall not apply to
  223  admission to athletic events sponsored by a state university,
  224  and the proceeds of the tax collected on such admissions shall
  225  be retained and used by each institution to support women’s
  226  athletics as provided in s. 1006.71(2)(c).
  227         2.a. No tax shall be levied on dues, membership fees, and
  228  admission charges imposed by not-for-profit sponsoring
  229  organizations. To receive this exemption, the sponsoring
  230  organization must qualify as a not-for-profit entity under the
  231  provisions of s. 501(c)(3) of the Internal Revenue Code of 1954,
  232  as amended.
  233         b. No tax shall be levied on admission charges to an event
  234  sponsored by a governmental entity, sports authority, or sports
  235  commission when held in a convention hall, exhibition hall,
  236  auditorium, stadium, theater, arena, civic center, performing
  237  arts center, or publicly owned recreational facility and when
  238  100 percent of the risk of success or failure lies with the
  239  sponsor of the event and 100 percent of the funds at risk for
  240  the event belong to the sponsor, and student or faculty talent
  241  is not exclusively used. As used in this sub-subparagraph, the
  242  terms “sports authority” and “sports commission” mean a
  243  nonprofit organization that is exempt from federal income tax
  244  under s. 501(c)(3) of the Internal Revenue Code and that
  245  contracts with a county or municipal government for the purpose
  246  of promoting and attracting sports-tourism events to the
  247  community with which it contracts.
  248         3. No tax shall be levied on an admission paid by a
  249  student, or on the student’s behalf, to any required place of
  250  sport or recreation if the student’s participation in the sport
  251  or recreational activity is required as a part of a program or
  252  activity sponsored by, and under the jurisdiction of, the
  253  student’s educational institution, provided his or her
  254  attendance is as a participant and not as a spectator.
  255         4. No tax shall be levied on admissions to the National
  256  Football League championship game or Pro Bowl; on admissions to
  257  any semifinal game or championship game of a national collegiate
  258  tournament; on admissions to a Major League Baseball, National
  259  Basketball Association, or National Hockey League all-star game;
  260  on admissions to the Major League Baseball Home Run Derby held
  261  before the Major League Baseball All-Star Game; or on admissions
  262  to the National Basketball Association Rookie Challenge,
  263  Celebrity Game, 3-Point Shooting Contest, or Slam Dunk
  264  Challenge.
  265         5. A participation fee or sponsorship fee imposed by a
  266  governmental entity as described in s. 212.08(6) for an athletic
  267  or recreational program is exempt when the governmental entity
  268  by itself, or in conjunction with an organization exempt under
  269  s. 501(c)(3) of the Internal Revenue Code of 1954, as amended,
  270  sponsors, administers, plans, supervises, directs, and controls
  271  the athletic or recreational program.
  272         6. Also exempt from the tax imposed by this section to the
  273  extent provided in this subparagraph are admissions to live
  274  theater, live opera, or live ballet productions in this state
  275  which are sponsored by an organization that has received a
  276  determination from the Internal Revenue Service that the
  277  organization is exempt from federal income tax under s.
  278  501(c)(3) of the Internal Revenue Code of 1954, as amended, if
  279  the organization actively participates in planning and
  280  conducting the event, is responsible for the safety and success
  281  of the event, is organized for the purpose of sponsoring live
  282  theater, live opera, or live ballet productions in this state,
  283  has more than 10,000 subscribing members and has among the
  284  stated purposes in its charter the promotion of arts education
  285  in the communities which it serves, and will receive at least 20
  286  percent of the net profits, if any, of the events which the
  287  organization sponsors and will bear the risk of at least 20
  288  percent of the losses, if any, from the events which it sponsors
  289  if the organization employs other persons as agents to provide
  290  services in connection with a sponsored event. Prior to March 1
  291  of each year, such organization may apply to the department for
  292  a certificate of exemption for admissions to such events
  293  sponsored in this state by the organization during the
  294  immediately following state fiscal year. The application shall
  295  state the total dollar amount of admissions receipts collected
  296  by the organization or its agents from such events in this state
  297  sponsored by the organization or its agents in the year
  298  immediately preceding the year in which the organization applies
  299  for the exemption. Such organization shall receive the exemption
  300  only to the extent of $1.5 million multiplied by the ratio that
  301  such receipts bear to the total of such receipts of all
  302  organizations applying for the exemption in such year; however,
  303  in no event shall such exemption granted to any organization
  304  exceed 8.5 6 percent of such admissions receipts collected by
  305  the organization or its agents in the year immediately preceding
  306  the year in which the organization applies for the exemption.
  307  Each organization receiving the exemption shall report each
  308  month to the department the total admissions receipts collected
  309  from such events sponsored by the organization during the
  310  preceding month and shall remit to the department an amount
  311  equal to 8.5 6 percent of such receipts reduced by any amount
  312  remaining under the exemption. Tickets for such events sold by
  313  such organizations shall not reflect the tax otherwise imposed
  314  under this section.
  315         7. Also exempt from the tax imposed by this section are
  316  entry fees for participation in freshwater fishing tournaments.
  317         8. Also exempt from the tax imposed by this section are
  318  participation or entry fees charged to participants in a game,
  319  race, or other sport or recreational event if spectators are
  320  charged a taxable admission to such event.
  321         9. No tax shall be levied on admissions to any postseason
  322  collegiate football game sanctioned by the National Collegiate
  323  Athletic Association.
  324         Section 5. Subsection (1) of section 212.05, Florida
  325  Statutes, is amended to read:
  326         212.05 Sales, storage, use tax.—It is hereby declared to be
  327  the legislative intent that every person is exercising a taxable
  328  privilege who engages in the business of selling tangible
  329  personal property at retail in this state, including the
  330  business of making mail order sales, or who rents or furnishes
  331  any of the things or services taxable under this chapter, or who
  332  stores for use or consumption in this state any item or article
  333  of tangible personal property as defined herein and who leases
  334  or rents such property within the state.
  335         (1) For the exercise of such privilege, a tax is levied on
  336  each taxable transaction or incident, which tax is due and
  337  payable as follows:
  338         (a)1.a. At the rate of 8.5 6 percent of the sales price of
  339  each item or article of tangible personal property when sold at
  340  retail in this state, computed on each taxable sale for the
  341  purpose of remitting the amount of tax due the state, and
  342  including each and every retail sale.
  343         b. Each occasional or isolated sale of an aircraft, boat,
  344  mobile home, or motor vehicle of a class or type which is
  345  required to be registered, licensed, titled, or documented in
  346  this state or by the United States Government shall be subject
  347  to tax at the rate provided in this paragraph. The department
  348  shall by rule adopt any nationally recognized publication for
  349  valuation of used motor vehicles as the reference price list for
  350  any used motor vehicle which is required to be licensed pursuant
  351  to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
  352  party to an occasional or isolated sale of such a vehicle
  353  reports to the tax collector a sales price which is less than 80
  354  percent of the average loan price for the specified model and
  355  year of such vehicle as listed in the most recent reference
  356  price list, the tax levied under this paragraph shall be
  357  computed by the department on such average loan price unless the
  358  parties to the sale have provided to the tax collector an
  359  affidavit signed by each party, or other substantial proof,
  360  stating the actual sales price. Any party to such sale who
  361  reports a sales price less than the actual sales price is guilty
  362  of a misdemeanor of the first degree, punishable as provided in
  363  s. 775.082 or s. 775.083. The department shall collect or
  364  attempt to collect from such party any delinquent sales taxes.
  365  In addition, such party shall pay any tax due and any penalty
  366  and interest assessed plus a penalty equal to twice the amount
  367  of the additional tax owed. Notwithstanding any other provision
  368  of law, the Department of Revenue may waive or compromise any
  369  penalty imposed pursuant to this subparagraph.
  370         2. This paragraph does not apply to the sale of a boat or
  371  aircraft by or through a registered dealer under this chapter to
  372  a purchaser who, at the time of taking delivery, is a
  373  nonresident of this state, does not make his or her permanent
  374  place of abode in this state, and is not engaged in carrying on
  375  in this state any employment, trade, business, or profession in
  376  which the boat or aircraft will be used in this state, or is a
  377  corporation none of the officers or directors of which is a
  378  resident of, or makes his or her permanent place of abode in,
  379  this state, or is a noncorporate entity that has no individual
  380  vested with authority to participate in the management,
  381  direction, or control of the entity’s affairs who is a resident
  382  of, or makes his or her permanent abode in, this state. For
  383  purposes of this exemption, either a registered dealer acting on
  384  his or her own behalf as seller, a registered dealer acting as
  385  broker on behalf of a seller, or a registered dealer acting as
  386  broker on behalf of the purchaser may be deemed to be the
  387  selling dealer. This exemption shall not be allowed unless:
  388         a. The purchaser removes a qualifying boat, as described in
  389  sub-subparagraph f., from the state within 90 days after the
  390  date of purchase or extension, or the purchaser removes a
  391  nonqualifying boat or an aircraft from this state within 10 days
  392  after the date of purchase or, when the boat or aircraft is
  393  repaired or altered, within 20 days after completion of the
  394  repairs or alterations;
  395         b. The purchaser, within 30 days from the date of
  396  departure, shall provide the department with written proof that
  397  the purchaser licensed, registered, titled, or documented the
  398  boat or aircraft outside the state. If such written proof is
  399  unavailable, within 30 days the purchaser shall provide proof
  400  that the purchaser applied for such license, title,
  401  registration, or documentation. The purchaser shall forward to
  402  the department proof of title, license, registration, or
  403  documentation upon receipt;
  404         c. The purchaser, within 10 days of removing the boat or
  405  aircraft from Florida, shall furnish the department with proof
  406  of removal in the form of receipts for fuel, dockage, slippage,
  407  tie-down, or hangaring from outside of Florida. The information
  408  so provided must clearly and specifically identify the boat or
  409  aircraft;
  410         d. The selling dealer, within 5 days of the date of sale,
  411  shall provide to the department a copy of the sales invoice,
  412  closing statement, bills of sale, and the original affidavit
  413  signed by the purchaser attesting that he or she has read the
  414  provisions of this section;
  415         e. The seller makes a copy of the affidavit a part of his
  416  or her record for as long as required by s. 213.35; and
  417         f. Unless the nonresident purchaser of a boat of 5 net tons
  418  of admeasurement or larger intends to remove the boat from this
  419  state within 10 days after the date of purchase or when the boat
  420  is repaired or altered, within 20 days after completion of the
  421  repairs or alterations, the nonresident purchaser shall apply to
  422  the selling dealer for a decal which authorizes 90 days after
  423  the date of purchase for removal of the boat. The nonresident
  424  purchaser of a qualifying boat may apply to the selling dealer
  425  within 60 days after the date of purchase for an extension decal
  426  that authorizes the boat to remain in this state for an
  427  additional 90 days, but not more than a total of 180 days,
  428  before the nonresident purchaser is required to pay the tax
  429  imposed by this chapter. The department is authorized to issue
  430  decals in advance to dealers. The number of decals issued in
  431  advance to a dealer shall be consistent with the volume of the
  432  dealer’s past sales of boats which qualify under this sub
  433  subparagraph. The selling dealer or his or her agent shall mark
  434  and affix the decals to qualifying boats in the manner
  435  prescribed by the department, prior to delivery of the boat.
  436         (I) The department is hereby authorized to charge dealers a
  437  fee sufficient to recover the costs of decals issued, except the
  438  extension decal shall cost $425.
  439         (II) The proceeds from the sale of decals will be deposited
  440  into the administrative trust fund.
  441         (III) Decals shall display information to identify the boat
  442  as a qualifying boat under this sub-subparagraph, including, but
  443  not limited to, the decal’s date of expiration.
  444         (IV) The department is authorized to require dealers who
  445  purchase decals to file reports with the department and may
  446  prescribe all necessary records by rule. All such records are
  447  subject to inspection by the department.
  448         (V) Any dealer or his or her agent who issues a decal
  449  falsely, fails to affix a decal, mismarks the expiration date of
  450  a decal, or fails to properly account for decals will be
  451  considered prima facie to have committed a fraudulent act to
  452  evade the tax and will be liable for payment of the tax plus a
  453  mandatory penalty of 200 percent of the tax, and shall be liable
  454  for fine and punishment as provided by law for a conviction of a
  455  misdemeanor of the first degree, as provided in s. 775.082 or s.
  456  775.083.
  457         (VI) Any nonresident purchaser of a boat who removes a
  458  decal prior to permanently removing the boat from the state, or
  459  defaces, changes, modifies, or alters a decal in a manner
  460  affecting its expiration date prior to its expiration, or who
  461  causes or allows the same to be done by another, will be
  462  considered prima facie to have committed a fraudulent act to
  463  evade the tax and will be liable for payment of the tax plus a
  464  mandatory penalty of 200 percent of the tax, and shall be liable
  465  for fine and punishment as provided by law for a conviction of a
  466  misdemeanor of the first degree, as provided in s. 775.082 or s.
  467  775.083.
  468         (VII) The department is authorized to adopt rules necessary
  469  to administer and enforce this subparagraph and to publish the
  470  necessary forms and instructions.
  471         (VIII) The department is hereby authorized to adopt
  472  emergency rules pursuant to s. 120.54(4) to administer and
  473  enforce the provisions of this subparagraph.
  474  
  475  If the purchaser fails to remove the qualifying boat from this
  476  state within the maximum 180 days after purchase or a
  477  nonqualifying boat or an aircraft from this state within 10 days
  478  after purchase or, when the boat or aircraft is repaired or
  479  altered, within 20 days after completion of such repairs or
  480  alterations, or permits the boat or aircraft to return to this
  481  state within 6 months from the date of departure, except as
  482  provided in s. 212.08(7)(ggg), or if the purchaser fails to
  483  furnish the department with any of the documentation required by
  484  this subparagraph within the prescribed time period, the
  485  purchaser shall be liable for use tax on the cost price of the
  486  boat or aircraft and, in addition thereto, payment of a penalty
  487  to the Department of Revenue equal to the tax payable. This
  488  penalty shall be in lieu of the penalty imposed by s. 212.12(2).
  489  The maximum 180-day period following the sale of a qualifying
  490  boat tax-exempt to a nonresident may not be tolled for any
  491  reason.
  492         (b) At the rate of 8.5 6 percent of the cost price of each
  493  item or article of tangible personal property when the same is
  494  not sold but is used, consumed, distributed, or stored for use
  495  or consumption in this state; however, for tangible property
  496  originally purchased exempt from tax for use exclusively for
  497  lease and which is converted to the owner’s own use, tax may be
  498  paid on the fair market value of the property at the time of
  499  conversion. If the fair market value of the property cannot be
  500  determined, use tax at the time of conversion shall be based on
  501  the owner’s acquisition cost. Under no circumstances may the
  502  aggregate amount of sales tax from leasing the property and use
  503  tax due at the time of conversion be less than the total sales
  504  tax that would have been due on the original acquisition cost
  505  paid by the owner.
  506         (c) At the rate of 8.5 6 percent of the gross proceeds
  507  derived from the lease or rental of tangible personal property,
  508  as defined herein; however, the following special provisions
  509  apply to the lease or rental of motor vehicles:
  510         1. When a motor vehicle is leased or rented for a period of
  511  less than 12 months:
  512         a. If the motor vehicle is rented in Florida, the entire
  513  amount of such rental is taxable, even if the vehicle is dropped
  514  off in another state.
  515         b. If the motor vehicle is rented in another state and
  516  dropped off in Florida, the rental is exempt from Florida tax.
  517         2. Except as provided in subparagraph 3., for the lease or
  518  rental of a motor vehicle for a period of not less than 12
  519  months, sales tax is due on the lease or rental payments if the
  520  vehicle is registered in this state; provided, however, that no
  521  tax shall be due if the taxpayer documents use of the motor
  522  vehicle outside this state and tax is being paid on the lease or
  523  rental payments in another state.
  524         3. The tax imposed by this chapter does not apply to the
  525  lease or rental of a commercial motor vehicle as defined in s.
  526  316.003(66)(a) to one lessee or rentee for a period of not less
  527  than 12 months when tax was paid on the purchase price of such
  528  vehicle by the lessor. To the extent tax was paid with respect
  529  to the purchase of such vehicle in another state, territory of
  530  the United States, or the District of Columbia, the Florida tax
  531  payable shall be reduced in accordance with the provisions of s.
  532  212.06(7). This subparagraph shall only be available when the
  533  lease or rental of such property is an established business or
  534  part of an established business or the same is incidental or
  535  germane to such business.
  536         (d) At the rate of 8.5 6 percent of the lease or rental
  537  price paid by a lessee or rentee, or contracted or agreed to be
  538  paid by a lessee or rentee, to the owner of the tangible
  539  personal property.
  540         (e)1. At the rate of 8.5 6 percent on charges for:
  541         a. Prepaid calling arrangements. The tax on charges for
  542  prepaid calling arrangements shall be collected at the time of
  543  sale and remitted by the selling dealer.
  544         (I) “Prepaid calling arrangement” means the separately
  545  stated retail sale by advance payment of communications services
  546  that consist exclusively of telephone calls originated by using
  547  an access number, authorization code, or other means that may be
  548  manually, electronically, or otherwise entered and that are sold
  549  in predetermined units or dollars whose number declines with use
  550  in a known amount.
  551         (II) If the sale or recharge of the prepaid calling
  552  arrangement does not take place at the dealer’s place of
  553  business, it shall be deemed to take place at the customer’s
  554  shipping address or, if no item is shipped, at the customer’s
  555  address or the location associated with the customer’s mobile
  556  telephone number.
  557         (III) The sale or recharge of a prepaid calling arrangement
  558  shall be treated as a sale of tangible personal property for
  559  purposes of this chapter, whether or not a tangible item
  560  evidencing such arrangement is furnished to the purchaser, and
  561  such sale within this state subjects the selling dealer to the
  562  jurisdiction of this state for purposes of this subsection.
  563         b. The installation of telecommunication and telegraphic
  564  equipment.
  565         c. Electrical power or energy, except that the tax rate for
  566  charges for electrical power or energy is 9.5 7 percent.
  567         2. The provisions of s. 212.17(3), regarding credit for tax
  568  paid on charges subsequently found to be worthless, shall be
  569  equally applicable to any tax paid under the provisions of this
  570  section on charges for prepaid calling arrangements,
  571  telecommunication or telegraph services, or electric power
  572  subsequently found to be uncollectible. The word “charges” in
  573  this paragraph does not include any excise or similar tax levied
  574  by the Federal Government, any political subdivision of the
  575  state, or any municipality upon the purchase, sale, or recharge
  576  of prepaid calling arrangements or upon the purchase or sale of
  577  telecommunication, television system program, or telegraph
  578  service or electric power, which tax is collected by the seller
  579  from the purchaser.
  580         (f) At the rate of 8.5 6 percent on the sale, rental, use,
  581  consumption, or storage for use in this state of machines and
  582  equipment, and parts and accessories therefor, used in
  583  manufacturing, processing, compounding, producing, mining, or
  584  quarrying personal property for sale or to be used in furnishing
  585  communications, transportation, or public utility services.
  586         (g)1. At the rate of 8.5 6 percent on the retail price of
  587  newspapers and magazines sold or used in Florida.
  588         2. Notwithstanding other provisions of this chapter,
  589  inserts of printed materials which are distributed with a
  590  newspaper or magazine are a component part of the newspaper or
  591  magazine, and neither the sale nor use of such inserts is
  592  subject to tax when:
  593         a. Printed by a newspaper or magazine publisher or
  594  commercial printer and distributed as a component part of a
  595  newspaper or magazine, which means that the items after being
  596  printed are delivered directly to a newspaper or magazine
  597  publisher by the printer for inclusion in editions of the
  598  distributed newspaper or magazine;
  599         b. Such publications are labeled as part of the designated
  600  newspaper or magazine publication into which they are to be
  601  inserted; and
  602         c. The purchaser of the insert presents a resale
  603  certificate to the vendor stating that the inserts are to be
  604  distributed as a component part of a newspaper or magazine.
  605         (h)1. A tax is imposed at the rate of 6.5 4 percent on the
  606  charges for the use of coin-operated amusement machines. The tax
  607  shall be calculated by dividing the gross receipts from such
  608  charges for the applicable reporting period by a divisor,
  609  determined as provided in this subparagraph, to compute gross
  610  taxable sales, and then subtracting gross taxable sales from
  611  gross receipts to arrive at the amount of tax due. For counties
  612  that do not impose a discretionary sales surtax, the divisor is
  613  equal to 1.065 1.04; for counties that impose a 0.5 percent
  614  discretionary sales surtax, the divisor is equal to 1.07 1.045;
  615  for counties that impose a 1 percent discretionary sales surtax,
  616  the divisor is equal to 1.075 1.050; and for counties that
  617  impose a 2 percent sales surtax, the divisor is equal to 1.085
  618  1.060. If a county imposes a discretionary sales surtax that is
  619  not listed in this subparagraph, the department shall make the
  620  applicable divisor available in an electronic format or
  621  otherwise. Additional divisors shall bear the same mathematical
  622  relationship to the next higher and next lower divisors as the
  623  new surtax rate bears to the next higher and next lower surtax
  624  rates for which divisors have been established. When a machine
  625  is activated by a slug, token, coupon, or any similar device
  626  which has been purchased, the tax is on the price paid by the
  627  user of the device for such device.
  628         2. As used in this paragraph, the term “operator” means any
  629  person who possesses a coin-operated amusement machine for the
  630  purpose of generating sales through that machine and who is
  631  responsible for removing the receipts from the machine.
  632         a. If the owner of the machine is also the operator of it,
  633  he or she shall be liable for payment of the tax without any
  634  deduction for rent or a license fee paid to a location owner for
  635  the use of any real property on which the machine is located.
  636         b. If the owner or lessee of the machine is also its
  637  operator, he or she shall be liable for payment of the tax on
  638  the purchase or lease of the machine, as well as the tax on
  639  sales generated through the machine.
  640         c. If the proprietor of the business where the machine is
  641  located does not own the machine, he or she shall be deemed to
  642  be the lessee and operator of the machine and is responsible for
  643  the payment of the tax on sales, unless such responsibility is
  644  otherwise provided for in a written agreement between him or her
  645  and the machine owner.
  646         3.a. An operator of a coin-operated amusement machine may
  647  not operate or cause to be operated in this state any such
  648  machine until the operator has registered with the department
  649  and has conspicuously displayed an identifying certificate
  650  issued by the department. The identifying certificate shall be
  651  issued by the department upon application from the operator. The
  652  identifying certificate shall include a unique number, and the
  653  certificate shall be permanently marked with the operator’s
  654  name, the operator’s sales tax number, and the maximum number of
  655  machines to be operated under the certificate. An identifying
  656  certificate shall not be transferred from one operator to
  657  another. The identifying certificate must be conspicuously
  658  displayed on the premises where the coin-operated amusement
  659  machines are being operated.
  660         b. The operator of the machine must obtain an identifying
  661  certificate before the machine is first operated in the state
  662  and by July 1 of each year thereafter. The annual fee for each
  663  certificate shall be based on the number of machines identified
  664  on the application times $30 and is due and payable upon
  665  application for the identifying device. The application shall
  666  contain the operator’s name, sales tax number, business address
  667  where the machines are being operated, and the number of
  668  machines in operation at that place of business by the operator.
  669  No operator may operate more machines than are listed on the
  670  certificate. A new certificate is required if more machines are
  671  being operated at that location than are listed on the
  672  certificate. The fee for the new certificate shall be based on
  673  the number of additional machines identified on the application
  674  form times $30.
  675         c. A penalty of $250 per machine is imposed on the operator
  676  for failing to properly obtain and display the required
  677  identifying certificate. A penalty of $250 is imposed on the
  678  lessee of any machine placed in a place of business without a
  679  proper current identifying certificate. Such penalties shall
  680  apply in addition to all other applicable taxes, interest, and
  681  penalties.
  682         d. Operators of coin-operated amusement machines must
  683  obtain a separate sales and use tax certificate of registration
  684  for each county in which such machines are located. One sales
  685  and use tax certificate of registration is sufficient for all of
  686  the operator’s machines within a single county.
  687         4. The provisions of this paragraph do not apply to coin
  688  operated amusement machines owned and operated by churches or
  689  synagogues.
  690         5. In addition to any other penalties imposed by this
  691  chapter, a person who knowingly and willfully violates any
  692  provision of this paragraph commits a misdemeanor of the second
  693  degree, punishable as provided in s. 775.082 or s. 775.083.
  694         6. The department may adopt rules necessary to administer
  695  the provisions of this paragraph.
  696         (i)1. At the rate of 8.5 6 percent on charges for all:
  697         a. Detective, burglar protection, and other protection
  698  services (NAICS National Numbers 561611, 561612, 561613, and
  699  561621). Any law enforcement officer, as defined in s. 943.10,
  700  who is performing approved duties as determined by his or her
  701  local law enforcement agency in his or her capacity as a law
  702  enforcement officer, and who is subject to the direct and
  703  immediate command of his or her law enforcement agency, and in
  704  the law enforcement officer’s uniform as authorized by his or
  705  her law enforcement agency, is performing law enforcement and
  706  public safety services and is not performing detective, burglar
  707  protection, or other protective services, if the law enforcement
  708  officer is performing his or her approved duties in a
  709  geographical area in which the law enforcement officer has
  710  arrest jurisdiction. Such law enforcement and public safety
  711  services are not subject to tax irrespective of whether the duty
  712  is characterized as “extra duty,” “off-duty,” or “secondary
  713  employment,” and irrespective of whether the officer is paid
  714  directly or through the officer’s agency by an outside source.
  715  The term “law enforcement officer” includes full-time or part
  716  time law enforcement officers, and any auxiliary law enforcement
  717  officer, when such auxiliary law enforcement officer is working
  718  under the direct supervision of a full-time or part-time law
  719  enforcement officer.
  720         b. Nonresidential cleaning, excluding cleaning of the
  721  interiors of transportation equipment, and nonresidential
  722  building pest control services (NAICS National Numbers 561710
  723  and 561720).
  724         2. As used in this paragraph, “NAICS” means those
  725  classifications contained in the North American Industry
  726  Classification System, as published in 2007 by the Office of
  727  Management and Budget, Executive Office of the President.
  728         3. Charges for detective, burglar protection, and other
  729  protection security services performed in this state but used
  730  outside this state are exempt from taxation. Charges for
  731  detective, burglar protection, and other protection security
  732  services performed outside this state and used in this state are
  733  subject to tax.
  734         4. If a transaction involves both the sale or use of a
  735  service taxable under this paragraph and the sale or use of a
  736  service or any other item not taxable under this chapter, the
  737  consideration paid must be separately identified and stated with
  738  respect to the taxable and exempt portions of the transaction or
  739  the entire transaction shall be presumed taxable. The burden
  740  shall be on the seller of the service or the purchaser of the
  741  service, whichever applicable, to overcome this presumption by
  742  providing documentary evidence as to which portion of the
  743  transaction is exempt from tax. The department is authorized to
  744  adjust the amount of consideration identified as the taxable and
  745  exempt portions of the transaction; however, a determination
  746  that the taxable and exempt portions are inaccurately stated and
  747  that the adjustment is applicable must be supported by
  748  substantial competent evidence.
  749         5. Each seller of services subject to sales tax pursuant to
  750  this paragraph shall maintain a monthly log showing each
  751  transaction for which sales tax was not collected because the
  752  services meet the requirements of subparagraph 3. for out-of
  753  state use. The log must identify the purchaser’s name, location
  754  and mailing address, and federal employer identification number,
  755  if a business, or the social security number, if an individual,
  756  the service sold, the price of the service, the date of sale,
  757  the reason for the exemption, and the sales invoice number. The
  758  monthly log shall be maintained pursuant to the same
  759  requirements and subject to the same penalties imposed for the
  760  keeping of similar records pursuant to this chapter.
  761         (j)1. Notwithstanding any other provision of this chapter,
  762  there is hereby levied a tax on the sale, use, consumption, or
  763  storage for use in this state of any coin or currency, whether
  764  in circulation or not, when such coin or currency:
  765         a. Is not legal tender;
  766         b. If legal tender, is sold, exchanged, or traded at a rate
  767  in excess of its face value; or
  768         c. Is sold, exchanged, or traded at a rate based on its
  769  precious metal content.
  770         2. Such tax shall be at a rate of 8.5 6 percent of the
  771  price at which the coin or currency is sold, exchanged, or
  772  traded, except that, with respect to a coin or currency which is
  773  legal tender of the United States and which is sold, exchanged,
  774  or traded, such tax shall not be levied.
  775         3. There are exempt from this tax exchanges of coins or
  776  currency which are in general circulation in, and legal tender
  777  of, one nation for coins or currency which are in general
  778  circulation in, and legal tender of, another nation when
  779  exchanged solely for use as legal tender and at an exchange rate
  780  based on the relative value of each as a medium of exchange.
  781         4. With respect to any transaction that involves the sale
  782  of coins or currency taxable under this paragraph in which the
  783  taxable amount represented by the sale of such coins or currency
  784  exceeds $500, the entire amount represented by the sale of such
  785  coins or currency is exempt from the tax imposed under this
  786  paragraph. The dealer must maintain proper documentation, as
  787  prescribed by rule of the department, to identify that portion
  788  of a transaction which involves the sale of coins or currency
  789  and is exempt under this subparagraph.
  790         (k) At the rate of 8.5 6 percent of the sales price of each
  791  gallon of diesel fuel not taxed under chapter 206 purchased for
  792  use in a vessel.
  793         (l) Florists located in this state are liable for sales tax
  794  on sales to retail customers regardless of where or by whom the
  795  items sold are to be delivered. Florists located in this state
  796  are not liable for sales tax on payments received from other
  797  florists for items delivered to customers in this state.
  798         (m) Operators of game concessions or other concessionaires
  799  who customarily award tangible personal property as prizes may,
  800  in lieu of paying tax on the cost price of such property, pay
  801  tax on 25 percent of the gross receipts from such concession
  802  activity.
  803         Section 6. Subsection (2) of section 212.0501, Florida
  804  Statutes, is amended to read:
  805         212.0501 Tax on diesel fuel for business purposes;
  806  purchase, storage, and use.—
  807         (2) Each person who purchases diesel fuel for consumption,
  808  use, or storage by a trade or business shall register as a
  809  dealer and remit a use tax, at the rate of 8.5 6 percent, on the
  810  total cost price of diesel fuel consumed.
  811         Section 7. Subsection (2) of section 212.0506, Florida
  812  Statutes, is amended to read:
  813         212.0506 Taxation of service warranties.—
  814         (2) For exercising such privilege, a tax is levied on each
  815  taxable transaction or incident, which tax is due and payable at
  816  the rate of 8.5 6 percent on the total consideration received or
  817  to be received by any person for issuing and delivering any
  818  service warranty.
  819         Section 8. Paragraph (a) of subsection (1) of section
  820  212.06, Florida Statutes, is amended to read:
  821         212.06 Sales, storage, use tax; collectible from dealers;
  822  “dealer” defined; dealers to collect from purchasers;
  823  legislative intent as to scope of tax.—
  824         (1)(a) The aforesaid tax at the rate of 8.5 6 percent of
  825  the retail sales price as of the moment of sale, 8.5 6 percent
  826  of the cost price as of the moment of purchase, or 8.5 6 percent
  827  of the cost price as of the moment of commingling with the
  828  general mass of property in this state, as the case may be,
  829  shall be collectible from all dealers as herein defined on the
  830  sale at retail, the use, the consumption, the distribution, and
  831  the storage for use or consumption in this state of tangible
  832  personal property or services taxable under this chapter. The
  833  full amount of the tax on a credit sale, installment sale, or
  834  sale made on any kind of deferred payment plan shall be due at
  835  the moment of the transaction in the same manner as on a cash
  836  sale.
  837         Section 9. Paragraph (c) of subsection (11) of section
  838  212.08, Florida Statutes, is amended to read:
  839         212.08 Sales, rental, use, consumption, distribution, and
  840  storage tax; specified exemptions.—The sale at retail, the
  841  rental, the use, the consumption, the distribution, and the
  842  storage to be used or consumed in this state of the following
  843  are hereby specifically exempt from the tax imposed by this
  844  chapter.
  845         (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.—
  846         (c) The maximum tax collectible under this subsection may
  847  not exceed 8.5 6 percent of the sales price of such aircraft. No
  848  Florida tax may be imposed on the sale of such aircraft if the
  849  state in which the aircraft will be domiciled does not allow
  850  Florida sales or use tax to be credited against its sales or use
  851  tax. Furthermore, no tax may be imposed on the sale of such
  852  aircraft if the state in which the aircraft will be domiciled
  853  has enacted a sales and use tax exemption for flyable aircraft
  854  or if the aircraft will be domiciled outside the United States.
  855         Section 10. Subsections (9), (10), and (11) of section
  856  212.12, Florida Statutes, are amended to read:
  857         212.12 Dealer’s credit for collecting tax; penalties for
  858  noncompliance; powers of Department of Revenue in dealing with
  859  delinquents; brackets applicable to taxable transactions;
  860  records required.—
  861         (9) Taxes imposed by this chapter upon the privilege of the
  862  use, consumption, storage for consumption, or sale of tangible
  863  personal property, admissions, license fees, rentals,
  864  communication services, and upon the sale or use of services as
  865  herein taxed shall be collected upon the basis of an addition of
  866  the tax imposed by this chapter to the total price of such
  867  admissions, license fees, rentals, communication or other
  868  services, or sale price of such article or articles that are
  869  purchased, sold, or leased at any one time by or to a customer
  870  or buyer; the dealer, or person charged herein, is required to
  871  pay a privilege tax in the amount of the tax imposed by this
  872  chapter on the total of his or her gross sales of tangible
  873  personal property, admissions, license fees, rentals, and
  874  communication services or to collect a tax upon the sale or use
  875  of services, and such person or dealer shall add the tax imposed
  876  by this chapter to the price, license fee, rental, or
  877  admissions, and communication or other services and collect the
  878  total sum from the purchaser, admittee, licensee, lessee, or
  879  consumer. The department shall make available in an electronic
  880  format or otherwise the tax amounts and the following brackets
  881  applicable to all transactions taxable at the rate of 8.5 6
  882  percent:
  883         (a) On single sales of less than 10 cents, no tax shall be
  884  added.
  885         (b) On single sales in amounts from 10 cents to 11 16
  886  cents, both inclusive, 1 cent shall be added for taxes.
  887         (c) On sales in amounts from 12 17 cents to 23 33 cents,
  888  both inclusive, 2 cents shall be added for taxes.
  889         (d) On sales in amounts from 24 34 cents to 35 50 cents,
  890  both inclusive, 3 cents shall be added for taxes.
  891         (e) On sales in amounts from 36 51 cents to 47 66 cents,
  892  both inclusive, 4 cents shall be added for taxes.
  893         (f) On sales in amounts from 48 67 cents to 59 83 cents,
  894  both inclusive, 5 cents shall be added for taxes.
  895         (g) On sales in amounts from 60 84 cents to 71 cents $1,
  896  both inclusive, 6 cents shall be added for taxes.
  897         (h) On sales in amounts from 72 cents to 83 cents, both
  898  inclusive, 7 cents shall be added for taxes.
  899         (i) On sales in amounts from 84 cents to $1, both
  900  inclusive, 8 cents shall be added for taxes.
  901         (j)(h) On sales in amounts of more than $1, 8.5 6 percent
  902  shall be charged upon each dollar of price, plus the appropriate
  903  bracket charge upon any fractional part of a dollar.
  904         (10) In counties which have adopted a discretionary sales
  905  surtax at the rate of 1 percent, the department shall make
  906  available in an electronic format or otherwise the tax amounts
  907  and the following brackets applicable to all taxable
  908  transactions that would otherwise have been transactions taxable
  909  at the rate of 8.5 6 percent:
  910         (a) On single sales of less than 10 cents, no tax shall be
  911  added.
  912         (b) On single sales in amounts from 10 cents to 11 14
  913  cents, both inclusive, 1 cent shall be added for taxes.
  914         (c) On sales in amounts from 12 15 cents to 22 28 cents,
  915  both inclusive, 2 cents shall be added for taxes.
  916         (d) On sales in amounts from 23 29 cents to 33 42 cents,
  917  both inclusive, 3 cents shall be added for taxes.
  918         (e) On sales in amounts from 34 43 cents to 44 57 cents,
  919  both inclusive, 4 cents shall be added for taxes.
  920         (f) On sales in amounts from 45 58 cents to 55 71 cents,
  921  both inclusive, 5 cents shall be added for taxes.
  922         (g) On sales in amounts from 56 72 cents to 66 85 cents,
  923  both inclusive, 6 cents shall be added for taxes.
  924         (h) On sales in amounts from 67 86 cents to 77 cents $1,
  925  both inclusive, 7 cents shall be added for taxes.
  926         (i) On sales in amounts from 78 cents to 88 cents, both
  927  inclusive, 8 cents shall be added for taxes.
  928         (j) On sales in amounts from 89 cents to $1, both
  929  inclusive, 9 cents shall be added for taxes.
  930         (k)(i) On sales in amounts from $1 up to, and including,
  931  the first $5,000 in price, 9.5 7 percent shall be charged upon
  932  each dollar of price, plus the appropriate bracket charge upon
  933  any fractional part of a dollar.
  934         (l)(j) On sales in amounts of more than $5,000 in price,
  935  9.5 7 percent shall be added upon the first $5,000 in price, and
  936  8.5 6 percent shall be added upon each dollar of price in excess
  937  of the first $5,000 in price, plus the bracket charges upon any
  938  fractional part of a dollar as provided for in subsection (9).
  939         (11) The department shall make available in an electronic
  940  format or otherwise the tax amounts and brackets applicable to
  941  all taxable transactions that occur in counties that have a
  942  surtax at a rate other than 1 percent which transactions would
  943  otherwise have been transactions taxable at the rate of 8.5 6
  944  percent. Likewise, the department shall make available in an
  945  electronic format or otherwise the tax amounts and brackets
  946  applicable to transactions taxable at 9.5 7 percent pursuant to
  947  s. 212.05(1)(e) and on transactions which would otherwise have
  948  been so taxable in counties which have adopted a discretionary
  949  sales surtax.
  950         Section 11. Subsection (6) of section 212.20, Florida
  951  Statutes, is amended to read:
  952         212.20 Funds collected, disposition; additional powers of
  953  department; operational expense; refund of taxes adjudicated
  954  unconstitutionally collected.—
  955         (6) Distribution of all proceeds under this chapter and s.
  956  202.18(1)(b) and (2)(b) shall be as follows:
  957         (a) Proceeds from the convention development taxes
  958  authorized under s. 212.0305 shall be reallocated to the
  959  Convention Development Tax Clearing Trust Fund.
  960         (b) Proceeds from discretionary sales surtaxes imposed
  961  pursuant to ss. 212.054 and 212.055 shall be reallocated to the
  962  Discretionary Sales Surtax Clearing Trust Fund.
  963         (c) Proceeds from the fees imposed under ss. 212.05(1)(h)3.
  964  and 212.18(3) shall remain with the General Revenue Fund.
  965         (d) Twenty-nine percent of the proceeds of all other taxes
  966  and fees imposed pursuant to this chapter shall be reserved in
  967  the General Revenue Fund exclusively as a replacement for funds
  968  previously generated by the required local effort for all school
  969  districts and shall be allocated for school district funding in
  970  accordance with the formula provided in s. 1011.62(4).
  971         (e)(d) The proceeds of all other taxes and fees imposed
  972  pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
  973  and (2)(b) shall be distributed as follows:
  974         1. In any fiscal year, the greater of $500 million, minus
  975  an amount equal to 4.6 percent of the proceeds of the taxes
  976  collected pursuant to chapter 201, or 5.2 percent of all other
  977  taxes and fees imposed pursuant to this chapter or remitted
  978  pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
  979  monthly installments into the General Revenue Fund.
  980         2. After the distribution under subparagraph 1., 8.814
  981  percent of the amount remitted by a sales tax dealer located
  982  within a participating county pursuant to s. 218.61 shall be
  983  transferred into the Local Government Half-cent Sales Tax
  984  Clearing Trust Fund. Beginning July 1, 2003, the amount to be
  985  transferred shall be reduced by 0.1 percent, and the department
  986  shall distribute this amount to the Public Employees Relations
  987  Commission Trust Fund less $5,000 each month, which shall be
  988  added to the amount calculated in subparagraph 3. and
  989  distributed accordingly.
  990         3. After the distribution under subparagraphs 1. and 2.,
  991  0.095 percent shall be transferred to the Local Government Half
  992  cent Sales Tax Clearing Trust Fund and distributed pursuant to
  993  s. 218.65.
  994         4. After the distributions under subparagraphs 1., 2., and
  995  3., 2.0440 percent of the available proceeds shall be
  996  transferred monthly to the Revenue Sharing Trust Fund for
  997  Counties pursuant to s. 218.215.
  998         5. After the distributions under subparagraphs 1., 2., and
  999  3., 1.3409 percent of the available proceeds shall be
 1000  transferred monthly to the Revenue Sharing Trust Fund for
 1001  Municipalities pursuant to s. 218.215. If the total revenue to
 1002  be distributed pursuant to this subparagraph is at least as
 1003  great as the amount due from the Revenue Sharing Trust Fund for
 1004  Municipalities and the former Municipal Financial Assistance
 1005  Trust Fund in state fiscal year 1999-2000, no municipality shall
 1006  receive less than the amount due from the Revenue Sharing Trust
 1007  Fund for Municipalities and the former Municipal Financial
 1008  Assistance Trust Fund in state fiscal year 1999-2000. If the
 1009  total proceeds to be distributed are less than the amount
 1010  received in combination from the Revenue Sharing Trust Fund for
 1011  Municipalities and the former Municipal Financial Assistance
 1012  Trust Fund in state fiscal year 1999-2000, each municipality
 1013  shall receive an amount proportionate to the amount it was due
 1014  in state fiscal year 1999-2000.
 1015         6. Of the remaining proceeds:
 1016         a. In each fiscal year, the sum of $29,915,500 shall be
 1017  divided into as many equal parts as there are counties in the
 1018  state, and one part shall be distributed to each county. The
 1019  distribution among the several counties must begin each fiscal
 1020  year on or before January 5th and continue monthly for a total
 1021  of 4 months. If a local or special law required that any moneys
 1022  accruing to a county in fiscal year 1999-2000 under the then
 1023  existing provisions of s. 550.135 be paid directly to the
 1024  district school board, special district, or a municipal
 1025  government, such payment must continue until the local or
 1026  special law is amended or repealed. The state covenants with
 1027  holders of bonds or other instruments of indebtedness issued by
 1028  local governments, special districts, or district school boards
 1029  before July 1, 2000, that it is not the intent of this
 1030  subparagraph to adversely affect the rights of those holders or
 1031  relieve local governments, special districts, or district school
 1032  boards of the duty to meet their obligations as a result of
 1033  previous pledges or assignments or trusts entered into which
 1034  obligated funds received from the distribution to county
 1035  governments under then-existing s. 550.135. This distribution
 1036  specifically is in lieu of funds distributed under s. 550.135
 1037  before July 1, 2000.
 1038         b. The department shall distribute $166,667 monthly
 1039  pursuant to s. 288.1162 to each applicant certified as a
 1040  facility for a new or retained professional sports franchise
 1041  pursuant to s. 288.1162. Up to $41,667 shall be distributed
 1042  monthly by the department to each certified applicant as defined
 1043  in s. 288.11621 for a facility for a spring training franchise.
 1044  However, not more than $416,670 may be distributed monthly in
 1045  the aggregate to all certified applicants for facilities for
 1046  spring training franchises. Distributions begin 60 days after
 1047  such certification and continue for not more than 30 years,
 1048  except as otherwise provided in s. 288.11621. A certified
 1049  applicant identified in this sub-subparagraph may not receive
 1050  more in distributions than expended by the applicant for the
 1051  public purposes provided for in s. 288.1162(5) or s.
 1052  288.11621(3).
 1053         c. Beginning 30 days after notice by the Office of Tourism,
 1054  Trade, and Economic Development to the Department of Revenue
 1055  that an applicant has been certified as the professional golf
 1056  hall of fame pursuant to s. 288.1168 and is open to the public,
 1057  $166,667 shall be distributed monthly, for up to 300 months, to
 1058  the applicant.
 1059         d. Beginning 30 days after notice by the Office of Tourism,
 1060  Trade, and Economic Development to the Department of Revenue
 1061  that the applicant has been certified as the International Game
 1062  Fish Association World Center facility pursuant to s. 288.1169,
 1063  and the facility is open to the public, $83,333 shall be
 1064  distributed monthly, for up to 168 months, to the applicant.
 1065  This distribution is subject to reduction pursuant to s.
 1066  288.1169. A lump sum payment of $999,996 shall be made, after
 1067  certification and before July 1, 2000.
 1068         7. All other proceeds must remain in the General Revenue
 1069  Fund.
 1070         Section 12. Paragraph (a) of subsection (5) of section
 1071  11.45, Florida Statutes, is amended to read:
 1072         11.45 Definitions; duties; authorities; reports; rules.—
 1073         (5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.—
 1074         (a) The Legislative Auditing Committee shall direct the
 1075  Auditor General to make an audit of any municipality whenever
 1076  petitioned to do so by at least 20 percent of the registered
 1077  electors in the last general election of that municipality
 1078  pursuant to this subsection. The supervisor of elections of the
 1079  county in which the municipality is located shall certify
 1080  whether or not the petition contains the signatures of at least
 1081  20 percent of the registered electors of the municipality. After
 1082  the completion of the audit, the Auditor General shall determine
 1083  whether the municipality has the fiscal resources necessary to
 1084  pay the cost of the audit. The municipality shall pay the cost
 1085  of the audit within 90 days after the Auditor General’s
 1086  determination that the municipality has the available resources.
 1087  If the municipality fails to pay the cost of the audit, the
 1088  Department of Revenue shall, upon certification of the Auditor
 1089  General, withhold from that portion of the distribution pursuant
 1090  to s. 212.20(6)(e)(d)5. which is distributable to such
 1091  municipality, a sum sufficient to pay the cost of the audit and
 1092  shall deposit that sum into the General Revenue Fund of the
 1093  state.
 1094         Section 13. Paragraph (b) of subsection (2) of section
 1095  202.18, Florida Statutes, is amended to read:
 1096         202.18 Allocation and disposition of tax proceeds.—The
 1097  proceeds of the communications services taxes remitted under
 1098  this chapter shall be treated as follows:
 1099         (2) The proceeds of the taxes remitted under s.
 1100  202.12(1)(b) shall be divided as follows:
 1101         (b) Sixty-three percent of the remainder shall be allocated
 1102  to the state and distributed pursuant to s. 212.20(6), except
 1103  that the proceeds allocated pursuant to s. 212.20(6)(e)(d)2.
 1104  shall be prorated to the participating counties in the same
 1105  proportion as that month’s collection of the taxes and fees
 1106  imposed pursuant to chapter 212 and paragraph (1)(b).
 1107         Section 14. Subsection (3) of section 218.245, Florida
 1108  Statutes, is amended to read:
 1109         218.245 Revenue sharing; apportionment.—
 1110         (3) Revenues attributed to the increase in distribution to
 1111  the Revenue Sharing Trust Fund for Municipalities pursuant to s.
 1112  212.20(6)(e)(d)5. from 1.0715 percent to 1.3409 percent provided
 1113  in chapter 2003-402, Laws of Florida, shall be distributed to
 1114  each eligible municipality and any unit of local government that
 1115  is consolidated as provided by s. 9, Art. VIII of the State
 1116  Constitution of 1885, as preserved by s. 6(e), Art. VIII, 1968
 1117  revised constitution, as follows: each eligible local
 1118  government’s allocation shall be based on the amount it received
 1119  from the half-cent sales tax under s. 218.61 in the prior state
 1120  fiscal year divided by the total receipts under s. 218.61 in the
 1121  prior state fiscal year for all eligible local governments.
 1122  However, for the purpose of calculating this distribution, the
 1123  amount received from the half-cent sales tax under s. 218.61 in
 1124  the prior state fiscal year by a unit of local government which
 1125  is consolidated as provided by s. 9, Art. VIII of the State
 1126  Constitution of 1885, as amended, and as preserved by s. 6(e),
 1127  Art. VIII, of the Constitution as revised in 1968, shall be
 1128  reduced by 50 percent for such local government and for the
 1129  total receipts. For eligible municipalities that began
 1130  participating in the allocation of half-cent sales tax under s.
 1131  218.61 in the previous state fiscal year, their annual receipts
 1132  shall be calculated by dividing their actual receipts by the
 1133  number of months they participated, and the result multiplied by
 1134  12.
 1135         Section 15. Subsections (5), (6), and (7) of section
 1136  218.65, Florida Statutes, are amended to read:
 1137         218.65 Emergency distribution.—
 1138         (5) At the beginning of each fiscal year, the Department of
 1139  Revenue shall calculate a base allocation for each eligible
 1140  county equal to the difference between the current per capita
 1141  limitation times the county’s population, minus prior year
 1142  ordinary distributions to the county pursuant to ss.
 1143  212.20(6)(e)(d)2., 218.61, and 218.62. If moneys deposited into
 1144  the Local Government Half-cent Sales Tax Clearing Trust Fund
 1145  pursuant to s. 212.20(6)(e)(d)3., excluding moneys appropriated
 1146  for supplemental distributions pursuant to subsection (8), for
 1147  the current year are less than or equal to the sum of the base
 1148  allocations, each eligible county shall receive a share of the
 1149  appropriated amount proportional to its base allocation. If the
 1150  deposited amount exceeds the sum of the base allocations, each
 1151  county shall receive its base allocation, and the excess
 1152  appropriated amount, less any amounts distributed under
 1153  subsection (6), shall be distributed equally on a per capita
 1154  basis among the eligible counties.
 1155         (6) If moneys deposited in the Local Government Half-cent
 1156  Sales Tax Clearing Trust Fund pursuant to s. 212.20(6)(e)(d)3.
 1157  exceed the amount necessary to provide the base allocation to
 1158  each eligible county, the moneys in the trust fund may be used
 1159  to provide a transitional distribution, as specified in this
 1160  subsection, to certain counties whose population has increased.
 1161  The transitional distribution shall be made available to each
 1162  county that qualified for a distribution under subsection (2) in
 1163  the prior year but does not, because of the requirements of
 1164  paragraph (2)(a), qualify for a distribution in the current
 1165  year. Beginning on July 1 of the year following the year in
 1166  which the county no longer qualifies for a distribution under
 1167  subsection (2), the county shall receive two-thirds of the
 1168  amount received in the prior year, and beginning July 1 of the
 1169  second year following the year in which the county no longer
 1170  qualifies for a distribution under subsection (2), the county
 1171  shall receive one-third of the amount it received in the last
 1172  year it qualified for the distribution under subsection (2). If
 1173  insufficient moneys are available in the Local Government Half
 1174  cent Sales Tax Clearing Trust Fund to fully provide such a
 1175  transitional distribution to each county that meets the
 1176  eligibility criteria in this section, each eligible county shall
 1177  receive a share of the available moneys proportional to the
 1178  amount it would have received had moneys been sufficient to
 1179  fully provide such a transitional distribution to each eligible
 1180  county.
 1181         (7) There is hereby annually appropriated from the Local
 1182  Government Half-cent Sales Tax Clearing Trust Fund the
 1183  distribution provided in s. 212.20(6)(e)(d)3. to be used for
 1184  emergency and supplemental distributions pursuant to this
 1185  section.
 1186         Section 16. Subsection (3) of section 288.11621, Florida
 1187  Statutes, is amended to read:
 1188         288.11621 Spring training baseball franchises.—
 1189         (3) USE OF FUNDS.—
 1190         (a) A certified applicant may use funds provided under s.
 1191  212.20(6)(e)(d)6.b. only to:
 1192         1. Serve the public purpose of acquiring, constructing,
 1193  reconstructing, or renovating a facility for a spring training
 1194  franchise.
 1195         2. Pay or pledge for the payment of debt service on, or to
 1196  fund debt service reserve funds, arbitrage rebate obligations,
 1197  or other amounts payable with respect thereto, bonds issued for
 1198  the acquisition, construction, reconstruction, or renovation of
 1199  such facility, or for the reimbursement of such costs or the
 1200  refinancing of bonds issued for such purposes.
 1201         3. Assist in the relocation of a spring training franchise
 1202  from one unit of local government to another only if the
 1203  governing board of the current host local government by a
 1204  majority vote agrees to relocation.
 1205         (b) State funds awarded to a certified applicant for a
 1206  facility for a spring training franchise may not be used to
 1207  subsidize facilities that are privately owned, maintained, and
 1208  used only by a spring training franchise.
 1209         (c) The Department of Revenue may not distribute funds to
 1210  an applicant certified on or after July 1, 2010, until it
 1211  receives notice from the office that the certified applicant has
 1212  encumbered funds under subparagraph (a)2.
 1213         (d)1. All certified applicants must place unexpended state
 1214  funds received pursuant to s. 212.20(6)(e)(d)6.b. in a trust
 1215  fund or separate account for use only as authorized in this
 1216  section.
 1217         2. A certified applicant may request that the Department of
 1218  Revenue suspend further distributions of state funds made
 1219  available under s. 212.20(6)(e)(d)6.b. for 12 months after
 1220  expiration of an existing agreement with a spring training
 1221  franchise to provide the certified applicant with an opportunity
 1222  to enter into a new agreement with a spring training franchise,
 1223  at which time the distributions shall resume.
 1224         3. The expenditure of state funds distributed to an
 1225  applicant certified before July 1, 2010, must begin within 48
 1226  months after the initial receipt of the state funds. In
 1227  addition, the construction of, or capital improvements to, a
 1228  spring training facility must be completed within 24 months
 1229  after the project’s commencement.
 1230         Section 17. Subsection (6) of section 288.1169, Florida
 1231  Statutes, is amended to read:
 1232         288.1169 International Game Fish Association World Center
 1233  facility.—
 1234         (6) The Department of Commerce must recertify every 10
 1235  years that the facility is open, that the International Game
 1236  Fish Association World Center continues to be the only
 1237  international administrative headquarters, fishing museum, and
 1238  Hall of Fame in the United States recognized by the
 1239  International Game Fish Association, and that the project is
 1240  meeting the minimum projections for attendance or sales tax
 1241  revenues as required at the time of original certification. If
 1242  the facility is not recertified during this 10-year review as
 1243  meeting the minimum projections, then funding shall be abated
 1244  until certification criteria are met. If the project fails to
 1245  generate $1 million of annual revenues pursuant to paragraph
 1246  (2)(e), the distribution of revenues pursuant to s. 212.20(6)(e)
 1247  (d)6.d. shall be reduced to an amount equal to $83,333
 1248  multiplied by a fraction, the numerator of which is the actual
 1249  revenues generated and the denominator of which is $1 million.
 1250  Such reduction remains in effect until revenues generated by the
 1251  project in a 12-month period equal or exceed $1 million.
 1252         Section 18. Effective November 1, 2012, subsection (4) of
 1253  section 1011.62, Florida Statutes, is amended to read:
 1254         1011.62 Funds for operation of schools.—If the annual
 1255  allocation from the Florida Education Finance Program to each
 1256  district for operation of schools is not determined in the
 1257  annual appropriations act or the substantive bill implementing
 1258  the annual appropriations act, it shall be determined as
 1259  follows:
 1260         (4) COMPUTATION FOR ALLOCATING SPECIFIED EDUCATION SALES
 1261  TAX PROCEEDS OF DISTRICT REQUIRED LOCAL EFFORT.—The Legislature
 1262  shall prescribe the aggregate amount of revenue from property
 1263  taxes that would otherwise be required local effort for all
 1264  school districts collectively if proceeds of the specified
 1265  education sales tax were not available as an item in the General
 1266  Appropriations Act for each fiscal year. The amount that shall
 1267  be appropriated to each district shall be provided provide
 1268  annually from funds reserved in the General Revenue Fund under
 1269  s. 212.20(6)(d), and shall replace revenue that would otherwise
 1270  have to be raised by local property taxes, toward the cost of
 1271  the Florida Education Finance Program for kindergarten through
 1272  grade 12 programs using the following calculations shall be
 1273  calculated as follows:
 1274         (a) Estimated taxable value calculations.—
 1275         1.a. Not later than 2 working days prior to July 19, the
 1276  Department of Revenue shall certify to the Commissioner of
 1277  Education its most recent estimate of the taxable value for
 1278  school purposes in each school district and the total for all
 1279  school districts in the state for the current calendar year
 1280  based on the latest available data obtained from the local
 1281  property appraisers. The value certified shall be the taxable
 1282  value for school purposes for that year, and no further
 1283  adjustments shall be made, except those made pursuant to
 1284  paragraphs (c) and (d), or an assessment roll change required by
 1285  final judicial decisions as specified in paragraph (12)(b). Not
 1286  later than July 19, the Commissioner of Education shall compute
 1287  a millage rate, rounded to the next highest one one-thousandth
 1288  of a mill, which, if when applied to 96 percent of the estimated
 1289  state total taxable value for school purposes, would generate
 1290  the prescribed aggregate amount of revenue from property taxes
 1291  that would otherwise be required local effort for that year for
 1292  all districts if proceeds of the specified education sales tax
 1293  were not available. The Commissioner of Education shall certify
 1294  to each district school board the millage rate, computed as
 1295  prescribed in this subparagraph, as the minimum millage rate
 1296  necessary to provide the district required local effort for that
 1297  year.
 1298         b. The General Appropriations Act shall direct the
 1299  computation of the statewide adjusted aggregate amount for
 1300  required local effort for all school districts collectively from
 1301  ad valorem taxes to ensure that no school district’s allocation
 1302  revenue from proceeds of the specified education sales tax
 1303  required local effort millage will produce more than 90 percent
 1304  of the district’s total Florida Education Finance Program
 1305  calculation as calculated and adopted by the Legislature, and
 1306  the estimated adjustment of the required local effort millage
 1307  rate of each district that would produce produces more than 90
 1308  percent of its total Florida Education Finance Program
 1309  entitlement to a level that would be required to will produce
 1310  only 90 percent of its total Florida Education Finance Program
 1311  entitlement in the July calculation if proceeds of the specified
 1312  education sales tax were not available.
 1313         2. On the same date as the certification in sub
 1314  subparagraph 1.a., the Department of Revenue shall certify to
 1315  the Commissioner of Education for each district:
 1316         a. Each year for which the property appraiser has certified
 1317  the taxable value pursuant to s. 193.122(2) or (3), if
 1318  applicable, since the prior certification under sub-subparagraph
 1319  1.a.
 1320         b. For each year identified in sub-subparagraph a., the
 1321  taxable value certified by the appraiser pursuant to s.
 1322  193.122(2) or (3), if applicable, since the prior certification
 1323  under sub-subparagraph 1.a. This is the certification that
 1324  reflects all final administrative actions of the value
 1325  adjustment board.
 1326         (b) Equalization of proceeds from the specified education
 1327  sales tax required local effort.—
 1328         1. The Department of Revenue shall include with its
 1329  certifications provided pursuant to paragraph (a) its most
 1330  recent determination of the assessment level of the prior year’s
 1331  assessment roll for each county and for the state as a whole.
 1332         2. The Commissioner of Education shall adjust the estimated
 1333  required local effort millage that would otherwise be required
 1334  of each district for the current year if proceeds from the
 1335  specified education sales tax were not available, computed
 1336  pursuant to paragraph (a), as follows:
 1337         a. The equalization factor for the prior year’s assessment
 1338  roll of each district shall be multiplied by 96 percent of the
 1339  taxable value for school purposes shown on that roll and by the
 1340  prior year’s estimate of required local-effort millage under
 1341  this subsection, exclusive of any equalization adjustment made
 1342  pursuant to this paragraph. The dollar amount so computed shall
 1343  be the additional amount required from the proceeds of the
 1344  specified education sales tax required local effort for
 1345  equalization for the current year.
 1346         b. Such equalization factor shall be computed as the
 1347  quotient of the prior year’s assessment level of the state as a
 1348  whole divided by the prior year’s assessment level of the
 1349  county, from which quotient shall be subtracted 1.
 1350         c. The dollar amount of additional proceeds required from
 1351  the specified education sales tax local effort for equalization
 1352  for each district shall be converted to an estimated a millage
 1353  rate that would otherwise be required if proceeds from the
 1354  specified education sales tax were not available, based on 96
 1355  percent of the current year’s taxable value for that district,
 1356  and added to the estimated required local effort millage
 1357  determined pursuant to paragraph (a) that would otherwise be
 1358  required if proceeds from the specified education sales tax were
 1359  not available.
 1360         3. Notwithstanding the limitations imposed pursuant to s.
 1361  1011.71(1), The total estimated required local-effort millage,
 1362  including additional proceeds required local effort for
 1363  equalization, shall be an amount not to exceed 10 minus the
 1364  maximum millage allowed as nonvoted discretionary millage,
 1365  exclusive of millage authorized pursuant to s. 1011.71(2).
 1366  Nothing herein shall be construed to allow a millage in excess
 1367  of that authorized in s. 9, Art. VII of the State Constitution.
 1368         4. For the purposes of this chapter, the term “assessment
 1369  level” means the value-weighted mean assessment ratio for the
 1370  county or state as a whole, as determined pursuant to s.
 1371  195.096, or as subsequently adjusted. However, for those parcels
 1372  studied pursuant to s. 195.096(3)(a)1. which are receiving the
 1373  assessment limitation set forth in s. 193.155, and for which the
 1374  assessed value is less than the just value, the department shall
 1375  use the assessed value in the numerator and the denominator of
 1376  such assessment ratio. In the event a court has adjudicated that
 1377  the department failed to establish an accurate estimate of an
 1378  assessment level of a county and recomputation resulting in an
 1379  accurate estimate based upon the evidence before the court was
 1380  not possible, that county shall be presumed to have an
 1381  assessment level equal to that of the state as a whole.
 1382         5. If, in the prior year, taxes were levied against an
 1383  interim assessment roll pursuant to s. 193.1145, the assessment
 1384  level and prior year’s nonexempt assessed valuation used for the
 1385  purposes of this paragraph shall be those of the interim
 1386  assessment roll.
 1387         (c) Exclusion.—
 1388         1. In those instances in which:
 1389         a. There is litigation either attacking the authority of
 1390  the property appraiser to include certain property on the tax
 1391  assessment roll as taxable property or contesting the assessed
 1392  value of certain property on the tax assessment roll, and
 1393         b. The assessed value of the property in contest involves
 1394  more than 6 percent of the total nonexempt assessment roll, the
 1395  plaintiff shall provide to the district school board of the
 1396  county in which the property is located and to the Department of
 1397  Education a certified copy of the petition and receipt for the
 1398  good faith payment at the time they are filed with the court.
 1399         2. For purposes of computing the amount of revenue from
 1400  property taxes that would otherwise be required if proceeds from
 1401  the specified education sales tax were not available local
 1402  effort for each district affected by such petition, the
 1403  Department of Education shall exclude from the district’s total
 1404  nonexempt assessment roll the assessed value of the property in
 1405  contest and shall add an appropriate the amount for allocation
 1406  to the district from the proceeds of the specified education
 1407  sales tax of the good faith payment to the district’s required
 1408  local effort.
 1409         (d) Recomputation.—Following final adjudication of any
 1410  litigation on the basis of which an adjustment in taxable value
 1411  was made pursuant to paragraph (c), the department shall
 1412  recompute the amount of revenue from property taxes that would
 1413  otherwise have been required from local effort for each district
 1414  for each year affected by such adjustments, utilizing taxable
 1415  values approved by the court, and shall adjust subsequent
 1416  allocations from the proceeds of the specified education sales
 1417  tax to such districts accordingly.
 1418         (e) Prior period funding adjustment millage.
 1419         1. There shall be an additional millage to be known as the
 1420  Prior Period Funding Adjustment Millage levied by a school
 1421  district if the prior period unrealized required local effort
 1422  funds are greater than zero. The Commissioner of Education shall
 1423  calculate the amount of the prior period unrealized required
 1424  local effort funds as specified in subparagraph 2. and the
 1425  millage required to generate that amount as specified in this
 1426  subparagraph. The Prior Period Funding Adjustment Millage shall
 1427  be the quotient of the prior period unrealized required local
 1428  effort funds divided by the current year taxable value certified
 1429  to the Commissioner of Education pursuant to sub-subparagraph
 1430  (a)1.a. This levy shall be in addition to the required local
 1431  effort millage certified pursuant to this subsection. Such
 1432  millage shall not affect the calculation of the current year’s
 1433  required local effort, and the funds generated by such levy
 1434  shall not be included in the district’s Florida Education
 1435  Finance Program allocation for that fiscal year. For purposes of
 1436  the millage to be included on the Notice of Proposed Taxes, the
 1437  Commissioner of Education shall adjust the required local effort
 1438  millage computed pursuant to paragraph (a) as adjusted by
 1439  paragraph (b) for the current year for any district that levies
 1440  a Prior Period Funding Adjustment Millage to include all Prior
 1441  Period Funding Adjustment Millage. For the purpose of this
 1442  paragraph, there shall be a Prior Period Funding Adjustment
 1443  Millage levied for each year certified by the Department of
 1444  Revenue pursuant to sub-subparagraph (a)2.a. since the previous
 1445  year certification and for which the calculation in sub
 1446  subparagraph 2.b. is greater than zero.
 1447         2.a. As used in this subparagraph, the term:
 1448         (I) “Prior year” means a year certified under sub
 1449  subparagraph (a)2.a.
 1450         (II) “Preliminary taxable value” means:
 1451         (A) If the prior year is the 2009-2010 fiscal year or
 1452  later, the taxable value certified to the Commissioner of
 1453  Education pursuant to sub-subparagraph (a)1.a.
 1454         (B) If the prior year is the 2008-2009 fiscal year or
 1455  earlier, the taxable value certified pursuant to the final
 1456  calculation as specified in former paragraph (b) as that
 1457  paragraph existed in the prior year.
 1458         (III) “Final taxable value” means the district’s taxable
 1459  value as certified by the property appraiser pursuant to s.
 1460  193.122(2) or (3), if applicable. This is the certification that
 1461  reflects all final administrative actions of the value
 1462  adjustment board.
 1463         b. For purposes of this subsection and with respect to each
 1464  year certified pursuant to sub-subparagraph (a)2.a., if the
 1465  district’s prior year preliminary taxable value is greater than
 1466  the district’s prior year final taxable value, the prior period
 1467  unrealized required local effort funds are the difference
 1468  between the district’s prior year preliminary taxable value and
 1469  the district’s prior year final taxable value, multiplied by the
 1470  prior year district required local effort millage. If the
 1471  district’s prior year preliminary taxable value is less than the
 1472  district’s prior year final taxable value, the prior period
 1473  unrealized required local effort funds are zero.
 1474         Section 19. Effective November 1, 2012, subsection (1) of
 1475  section 1011.71, Florida Statutes, is amended to read:
 1476         1011.71 District school tax.—
 1477         (1) If the district school tax is not provided in the
 1478  General Appropriations Act or the substantive bill implementing
 1479  the General Appropriations Act, each district school board
 1480  desiring to participate in the state allocation of funds for
 1481  current operation as prescribed by s. 1011.62(12) shall levy on
 1482  the taxable value for school purposes of the district, exclusive
 1483  of millage voted under the provisions of s. 9(b) or s. 12, Art.
 1484  VII of the State Constitution, a millage rate not to exceed the
 1485  amount certified by the commissioner as the minimum millage rate
 1486  necessary to provide the district required local effort for the
 1487  current year, pursuant to s. 1011.62(4)(a)1. In addition to the
 1488  required local effort millage levy, Each district school board
 1489  may levy a nonvoted current operating discretionary millage. The
 1490  Legislature shall prescribe annually in the appropriations act
 1491  the maximum amount of millage a district may levy.
 1492         Section 20. Effective November 1, 2012, section 218.67,
 1493  Florida Statutes, is amended to read:
 1494         218.67 Distribution for fiscally constrained counties.—
 1495         (1) Each county that is entirely within a rural area of
 1496  critical economic concern as designated by the Governor pursuant
 1497  to s. 288.0656 or each county for which the value of a mill will
 1498  raise no more than $5 million in revenue, based on the taxable
 1499  value certified pursuant to s. 1011.62(4)(a)1.a., from the
 1500  previous July 1, shall be considered a fiscally constrained
 1501  county.
 1502         (2) Each fiscally constrained county government that
 1503  participates in the local government half-cent sales tax shall
 1504  be eligible to receive an additional distribution from the Local
 1505  Government Half-cent Sales Tax Clearing Trust Fund, as provided
 1506  in s. 202.18(2)(c)1., in addition to its regular monthly
 1507  distribution provided under this part and any emergency or
 1508  supplemental distribution under s. 218.65.
 1509         (3) The amount to be distributed to each fiscally
 1510  constrained county shall be determined by the Department of
 1511  Revenue at the beginning of the fiscal year, using the prior
 1512  fiscal year’s July 1 taxable value certified pursuant to s.
 1513  1011.62(4)(a)1.a., tax data, population as defined in s. 218.21,
 1514  and millage rate levied for the prior fiscal year. The amount
 1515  distributed shall be allocated based upon the following factors:
 1516         (a) The relative revenue-raising-capacity factor shall be
 1517  the ability of the eligible county to generate ad valorem
 1518  revenues from 1 mill of taxation on a per capita basis. A county
 1519  that raises no more than $25 per capita from 1 mill shall be
 1520  assigned a value of 1; a county that raises more than $25 but no
 1521  more than $30 per capita from 1 mill shall be assigned a value
 1522  of 0.75; and a county that raises more than $30 but no more than
 1523  $50 per capita from 1 mill shall be assigned a value of 0.5. No
 1524  value shall be assigned to counties that raise more than $50 per
 1525  capita from 1 mill of ad valorem taxation.
 1526         (b) The local-effort factor shall be a measure of the
 1527  relative level of property tax revenues that would otherwise
 1528  have been required local effort of the eligible county if
 1529  proceeds from the specified education sales tax were not
 1530  available as indicated by the estimated millage rate levied for
 1531  the prior fiscal year. The local-effort factor shall be the most
 1532  recently adopted countywide operating millage rate plus an
 1533  estimated amount of millage that would have been required if
 1534  proceeds from the specified education sales tax were not
 1535  available for each eligible county multiplied by 0.1.
 1536         (c) Each eligible county’s proportional allocation of the
 1537  total amount available to be distributed to all of the eligible
 1538  counties shall be in the same proportion as the sum of the
 1539  county’s two factors is to the sum of the two factors for all
 1540  eligible counties. The counties that are eligible to receive an
 1541  allocation under this subsection and the amount available to be
 1542  distributed to such counties shall not include counties
 1543  participating in the phaseout period under subsection (4) or the
 1544  amounts they remain eligible to receive during the phaseout.
 1545         (4) For those counties that no longer qualify under the
 1546  requirements of subsection (1) after the effective date of this
 1547  act, there shall be a 2-year phaseout period. Beginning on July
 1548  1 of the year following the year in which the value of a mill
 1549  for that county exceeds $5 million in revenue, the county shall
 1550  receive two-thirds of the amount received in the prior year, and
 1551  beginning on July 1 of the second year following the year in
 1552  which the value of a mill for that county exceeds $5 million in
 1553  revenue, the county shall receive one-third of the amount
 1554  received in the last year that the county qualified as a
 1555  fiscally constrained county. Following the 2-year phaseout
 1556  period, the county shall no longer be eligible to receive any
 1557  distributions under this section unless the county can be
 1558  considered a fiscally constrained county as provided in
 1559  subsection (1).
 1560         (5) The revenues received under this section may be used by
 1561  a county for any public purpose, except that such revenues may
 1562  not be used to pay debt service on bonds, notes, certificates of
 1563  participation, or any other forms of indebtedness.
 1564         Section 21. Effective November 1, 2012, paragraph (a) of
 1565  subsection (9) of section 1002.32, Florida Statutes, is amended
 1566  to read:
 1567         1002.32 Developmental research (laboratory) schools.—
 1568         (9) FUNDING.—Funding for a lab school, including a charter
 1569  lab school, shall be provided as follows:
 1570         (a) Each lab school shall be allocated its proportional
 1571  share of operating funds from the Florida Education Finance
 1572  Program as provided in s. 1011.62 based on the county in which
 1573  the lab school is located and the General Appropriations Act.
 1574  The nonvoted ad valorem millage that would otherwise be required
 1575  for lab schools shall be allocated from state funds. The
 1576  required local effort funds calculated pursuant to s. 1011.62
 1577  shall be allocated from state funds to the schools as a part of
 1578  the allocation of operating funds pursuant to s. 1011.62. Each
 1579  eligible lab school in operation as of September 1, 2002, shall
 1580  also receive a proportional share of the sparsity supplement as
 1581  calculated pursuant to s. 1011.62. In addition, each lab school
 1582  shall receive its proportional share of all categorical funds,
 1583  with the exception of s. 1011.68, and new categorical funds
 1584  enacted after July 1, 1994, for the purpose of elementary or
 1585  secondary academic program enhancement. The sum of funds
 1586  available as provided in this paragraph shall be included
 1587  annually in the Florida Education Finance Program and
 1588  appropriate categorical programs funded in the General
 1589  Appropriations Act.
 1590         Section 22. Effective November 1, 2012, section 1011.02,
 1591  Florida Statutes, is amended to read:
 1592         1011.02 District school boards to adopt tentative budget.—
 1593         (1) On or before the date prescribed in rules of the State
 1594  Board of Education, each district school board shall receive and
 1595  examine the tentative budget submitted by the district school
 1596  superintendent, and shall require such changes to be made, in
 1597  keeping with the purposes of the school code, as may be to the
 1598  best interest of the school program in the district.
 1599         (2) The district school board shall determine, within
 1600  prescribed limits, the reserves to be allotted for
 1601  contingencies, and the cash balance to be carried forward at the
 1602  end of the year. If the district school board shall require any
 1603  changes to be made in receipts, in the reserves for
 1604  contingencies, or in the cash balance to be carried forward at
 1605  the end of the year, it shall also require necessary changes to
 1606  be made in the appropriations for expenditures so that the
 1607  budget, as changed, will not contain appropriations for
 1608  expenditures and reserves in excess of, or less than, estimated
 1609  receipts and balances.
 1610         (3) The proposed budget shall include the anticipated an
 1611  amount of proceeds from the specified education sales tax that
 1612  the district school board expects to receive for local required
 1613  effort for current operation, in accordance with the
 1614  requirements of s. 1011.62(4).
 1615         (4) When a tentative budget has been prepared in accordance
 1616  with rules of the State Board of Education, the proposed
 1617  expenditures, plus transfers, and balances shall not exceed the
 1618  estimated income, transfers, and balances. The budget and each
 1619  of the parts thereof shall balance.
 1620         (5) The district school board shall adopt a tentative
 1621  budget.
 1622         Section 23. Effective November 1, 2012, paragraph (c) of
 1623  subsection (3) of section 200.065, Florida Statutes, is amended
 1624  to read:
 1625         200.065 Method of fixing millage.—
 1626         (3) The advertisement shall be no less than one-quarter
 1627  page in size of a standard size or a tabloid size newspaper, and
 1628  the headline in the advertisement shall be in a type no smaller
 1629  than 18 point. The advertisement shall not be placed in that
 1630  portion of the newspaper where legal notices and classified
 1631  advertisements appear. The advertisement shall be published in a
 1632  newspaper of general paid circulation in the county or in a
 1633  geographically limited insert of such newspaper. The geographic
 1634  boundaries in which such insert is circulated shall include the
 1635  geographic boundaries of the taxing authority. It is the
 1636  legislative intent that, whenever possible, the advertisement
 1637  appear in a newspaper that is published at least 5 days a week
 1638  unless the only newspaper in the county is published less than 5
 1639  days a week, or that the advertisement appear in a
 1640  geographically limited insert of such newspaper which insert is
 1641  published throughout the taxing authority’s jurisdiction at
 1642  least twice each week. It is further the legislative intent that
 1643  the newspaper selected be one of general interest and readership
 1644  in the community and not one of limited subject matter, pursuant
 1645  to chapter 50.
 1646         (c) For school districts which have proposed a millage rate
 1647  in excess of 100 percent of the rolled-back rate computed
 1648  pursuant to subsection (1) and which propose to levy nonvoted
 1649  millage in excess of the minimum amount required pursuant to s.
 1650  1011.60(6), the advertisement shall be in the following form:
 1651                   NOTICE OF PROPOSED TAX INCREASE                 
 1652         The ...(name of school district)... will soon consider a
 1653  measure to increase its property tax levy.
 1654  Last year’s property tax levy:
 1655         A. Initially proposed tax levy	$XX,XXX,XXX
 1656         B. Less tax reductions due to Value Adjustment Board and
 1657  other assessment changes	($XX,XXX,XXX)
 1658         C. Actual property tax levy	$XX,XXX,XXX
 1659  This year’s proposed tax levy	$XX,XXX,XXX
 1660         A portion of the tax levy is required under state law in
 1661  order for the school board to receive $...(amount A)... in state
 1662  education grants. The required portion has ...(increased or
 1663  decreased)... by ...(amount B)... percent and represents
 1664  approximately ...(amount C)... of the total proposed taxes.
 1665         The remainder of the taxes is proposed solely at the
 1666  discretion of the school board.
 1667         All concerned citizens are invited to a public hearing on
 1668  the tax increase to be held on ...(date and time)... at
 1669  ...(meeting place)....
 1670         A DECISION on the proposed tax increase and the budget will
 1671  be made at this hearing.
 1672  
 1673         1. AMOUNT A shall be an estimate, provided by the
 1674  Department of Education, of the amount to be received in the
 1675  current fiscal year by the district from state appropriations
 1676  for the Florida Education Finance Program.
 1677         2. AMOUNT B shall be the percent increase over the rolled
 1678  back rate necessary to levy only the required local effort in
 1679  the current fiscal year, computed as though in the preceding
 1680  fiscal year only the required local effort was levied.
 1681         3. AMOUNT C shall be the quotient of required local-effort
 1682  millage divided by the total proposed nonvoted millage, rounded
 1683  to the nearest tenth and stated in words; however, the stated
 1684  amount shall not exceed nine-tenths.
 1685         Section 24. Except as otherwise expressly provided in this
 1686  act, and except for this section, which shall take effect upon
 1687  this act becoming a law, this act shall take effect January 1,
 1688  2012.