Florida Senate - 2016                                      SB 98
       
       
        
       By Senator Hukill
       
       
       
       
       
       8-00055-16                                              201698__
    1                        A bill to be entitled                      
    2         An act relating to the exemption from the sales and
    3         use tax for certain machinery and equipment; amending
    4         s. 212.08, F.S.; providing that the exemption for
    5         certain mixer drums and the parts and labor required
    6         to affix such mixer drums to mixer trucks is repealed
    7         on a specified date; deleting the expiration date for
    8         the exemption for certain industrial machinery and
    9         equipment; providing an effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Paragraph (kkk) of subsection (7) of section
   14  212.08, Florida Statutes, is amended to read:
   15         212.08 Sales, rental, use, consumption, distribution, and
   16  storage tax; specified exemptions.—The sale at retail, the
   17  rental, the use, the consumption, the distribution, and the
   18  storage to be used or consumed in this state of the following
   19  are hereby specifically exempt from the tax imposed by this
   20  chapter.
   21         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   22  entity by this chapter do not inure to any transaction that is
   23  otherwise taxable under this chapter when payment is made by a
   24  representative or employee of the entity by any means,
   25  including, but not limited to, cash, check, or credit card, even
   26  when that representative or employee is subsequently reimbursed
   27  by the entity. In addition, exemptions provided to any entity by
   28  this subsection do not inure to any transaction that is
   29  otherwise taxable under this chapter unless the entity has
   30  obtained a sales tax exemption certificate from the department
   31  or the entity obtains or provides other documentation as
   32  required by the department. Eligible purchases or leases made
   33  with such a certificate must be in strict compliance with this
   34  subsection and departmental rules, and any person who makes an
   35  exempt purchase with a certificate that is not in strict
   36  compliance with this subsection and the rules is liable for and
   37  shall pay the tax. The department may adopt rules to administer
   38  this subsection.
   39         (kkk) Certain machinery and equipment.—
   40         1. Industrial machinery and equipment purchased by eligible
   41  manufacturing businesses which is used at a fixed location in
   42  within this state, or a mixer drum affixed to a mixer truck
   43  which is used at any location within this state to mix, agitate,
   44  and transport freshly mixed concrete in a plastic state, for the
   45  manufacture, processing, compounding, or production of items of
   46  tangible personal property for sale shall be exempt from the tax
   47  imposed by this chapter. Parts and labor required to affix a
   48  mixer drum exempt under this paragraph to a mixer truck are also
   49  exempt. If, at the time of purchase, the purchaser furnishes the
   50  seller with a signed certificate certifying the purchaser’s
   51  entitlement to exemption pursuant to this subparagraph
   52  paragraph, the seller is relieved of the responsibility for
   53  collecting the tax on the sale of such items, and the department
   54  shall look solely to the purchaser for recovery of the tax if it
   55  determines that the purchaser was not entitled to the exemption.
   56         2. For purposes of this paragraph, the term:
   57         a. “Eligible manufacturing business” means any business
   58  whose primary business activity at the location where the
   59  industrial machinery and equipment is located is within the
   60  industries classified under NAICS codes 31, 32, and 33. As used
   61  in this subparagraph, “NAICS” means those classifications
   62  contained in the North American Industry Classification System,
   63  as published in 2007 by the Office of Management and Budget,
   64  Executive Office of the President.
   65         b. “Primary business activity” means an activity
   66  representing more than 50 percent of the activities conducted at
   67  the location where the industrial machinery and equipment is
   68  located.
   69         c. “Industrial machinery and equipment” means tangible
   70  personal property or other property that has a depreciable life
   71  of 3 years or more and that is used as an integral part in the
   72  manufacturing, processing, compounding, or production of
   73  tangible personal property for sale. A building and its
   74  structural components are not industrial machinery and equipment
   75  unless the building or structural component is so closely
   76  related to the industrial machinery and equipment that it houses
   77  or supports that the building or structural component can be
   78  expected to be replaced when the machinery and equipment are
   79  replaced. Heating and air conditioning systems are not
   80  industrial machinery and equipment unless the sole justification
   81  for their installation is to meet the requirements of the
   82  production process, even though the system may provide
   83  incidental comfort to employees or serve, to an insubstantial
   84  degree, nonproduction activities. The term includes parts and
   85  accessories for industrial machinery and equipment only to the
   86  extent that the parts and accessories are purchased prior to the
   87  date the machinery and equipment are placed in service.
   88         3. A mixer drum affixed to a mixer truck which is used at
   89  any location in this state to mix, agitate, and transport
   90  freshly mixed concrete in a plastic state for the manufacture,
   91  processing, compounding, or production of items of tangible
   92  personal property for sale shall be exempt from the tax imposed
   93  by this chapter. Parts and labor required to affix a mixer drum
   94  exempt under this subparagraph to a mixer truck are also exempt.
   95  If, at the time of purchase, the purchaser furnishes the seller
   96  with a signed certificate certifying the purchaser’s entitlement
   97  to exemption pursuant to this subparagraph, the seller is
   98  relieved of the responsibility for collecting the tax on the
   99  sale of such items, and the department shall look solely to the
  100  purchaser for recovery of the tax if it determines that the
  101  purchaser was not entitled to the exemption. This subparagraph
  102  paragraph is repealed April 30, 2017.
  103         Section 2. This act shall take effect July 1, 2016.