Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. CS/HB 7097, 1st Eng.
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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       The Committee on Appropriations (Brandes) recommended the
       following:
       
    1         Senate Amendment to Amendment (864620) (with title
    2  amendment)
    3  
    4         Between lines 2162 and 2163
    5  insert:
    6         Section 34. Paragraph (fff) of subsection (7) of section
    7  212.08, Florida Statutes, is amended, and paragraph (u) is added
    8  to subsection (5) of that section, to read:
    9         212.08 Sales, rental, use, consumption, distribution, and
   10  storage tax; specified exemptions.—The sale at retail, the
   11  rental, the use, the consumption, the distribution, and the
   12  storage to be used or consumed in this state of the following
   13  are hereby specifically exempt from the tax imposed by this
   14  chapter.
   15         (5) EXEMPTIONS; ACCOUNT OF USE.—
   16         (u)Aircraft equipment used in governmental contracts.
   17  Equipment, including electric and hydraulic ground power units,
   18  jet starter units, oxygen servicing and test equipment, engine
   19  trim boxes, and communications and avionics test sets, which is
   20  used to service, test, operate, upgrade, or configure aircraft
   21  for advanced training purposes as part of any contract with the
   22  United States Department of Defense or with a military branch of
   23  a recognized foreign government is exempt from the tax imposed
   24  by this chapter.
   25         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   26  entity by this chapter do not inure to any transaction that is
   27  otherwise taxable under this chapter when payment is made by a
   28  representative or employee of the entity by any means,
   29  including, but not limited to, cash, check, or credit card, even
   30  when that representative or employee is subsequently reimbursed
   31  by the entity. In addition, exemptions provided to any entity by
   32  this subsection do not inure to any transaction that is
   33  otherwise taxable under this chapter unless the entity has
   34  obtained a sales tax exemption certificate from the department
   35  or the entity obtains or provides other documentation as
   36  required by the department. Eligible purchases or leases made
   37  with such a certificate must be in strict compliance with this
   38  subsection and departmental rules, and any person who makes an
   39  exempt purchase with a certificate that is not in strict
   40  compliance with this subsection and the rules is liable for and
   41  shall pay the tax. The department may adopt rules to administer
   42  this subsection.
   43         (fff) Aircraft temporarily in the state.—
   44         1. An aircraft owned by a nonresident is exempt from the
   45  use tax imposed under this chapter if the aircraft enters and
   46  remains in this state for less than a total of 21 days during
   47  the 6-month period after the date of purchase. The temporary use
   48  of the aircraft and subsequent removal from this state may be
   49  proven by invoices for fuel, tie-down, or hangar charges issued
   50  by out-of-state vendors or suppliers or similar documentation
   51  that clearly and specifically identifies the aircraft. The
   52  exemption provided in this subparagraph is in addition to the
   53  exemptions provided in subparagraphs 2. and 3. subparagraph 2.
   54  and s. 212.05(1)(a).
   55         2. An aircraft owned by a nonresident is exempt from the
   56  use tax imposed under this chapter if the aircraft enters or
   57  remains in this state exclusively for purposes of flight
   58  training, repairs, alterations, refitting, or modification. Such
   59  purposes shall be supported by written documentation issued by
   60  in-state vendors or suppliers which clearly and specifically
   61  identifies the aircraft. The exemption provided in this
   62  subparagraph is in addition to the exemptions provided in
   63  subparagraph 1. and s. 212.05(1)(a).
   64         3.An aircraft owned by a nonresident is exempt from the
   65  use tax imposed under this chapter if the aircraft enters or
   66  remains in this state exclusively to be used in service of a
   67  contract with the United States Department of Defense or with a
   68  military branch of a recognized foreign government. The
   69  exemption provided in this subparagraph is in addition to the
   70  exemptions provided in subparagraph 1. and s. 212.05(1)(a).
   71         Section 35. Effective October 1, 2020, paragraph (jjj) of
   72  subsection (7) of section 212.08, Florida Statutes, is amended
   73  to read:
   74         212.08 Sales, rental, use, consumption, distribution, and
   75  storage tax; specified exemptions.—The sale at retail, the
   76  rental, the use, the consumption, the distribution, and the
   77  storage to be used or consumed in this state of the following
   78  are hereby specifically exempt from the tax imposed by this
   79  chapter.
   80         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   81  entity by this chapter do not inure to any transaction that is
   82  otherwise taxable under this chapter when payment is made by a
   83  representative or employee of the entity by any means,
   84  including, but not limited to, cash, check, or credit card, even
   85  when that representative or employee is subsequently reimbursed
   86  by the entity. In addition, exemptions provided to any entity by
   87  this subsection do not inure to any transaction that is
   88  otherwise taxable under this chapter unless the entity has
   89  obtained a sales tax exemption certificate from the department
   90  or the entity obtains or provides other documentation as
   91  required by the department. Eligible purchases or leases made
   92  with such a certificate must be in strict compliance with this
   93  subsection and departmental rules, and any person who makes an
   94  exempt purchase with a certificate that is not in strict
   95  compliance with this subsection and the rules is liable for and
   96  shall pay the tax. The department may adopt rules to administer
   97  this subsection.
   98         (jjj) Certain machinery and equipment.—
   99         1. Industrial machinery and equipment purchased by eligible
  100  manufacturing businesses which is used at a fixed location in
  101  this state for the manufacture, processing, compounding, or
  102  production of items of tangible personal property for sale is
  103  exempt from the tax imposed by this chapter. If, at the time of
  104  purchase, the purchaser furnishes the seller with a signed
  105  certificate certifying the purchaser’s entitlement to exemption
  106  pursuant to this paragraph, the seller is not required to
  107  collect the tax on the sale of such items, and the department
  108  shall look solely to the purchaser for recovery of the tax if it
  109  determines that the purchaser was not entitled to the exemption.
  110         2. For purposes of this paragraph, the term:
  111         a. “Eligible manufacturing business” means any business
  112  whose primary business activity at the location where the
  113  industrial machinery and equipment is located is within the
  114  industries classified under NAICS codes 31, 32, 33, 112511, and
  115  423930.
  116         b. “Eligible postharvest activity business” means a
  117  business whose primary business activity, at the location where
  118  the postharvest machinery and equipment is located, is within
  119  the industries classified under NAICS code 115114.
  120         c. “NAICS” means those classifications contained in the
  121  North American Industry Classification System, as published in
  122  2007 by the Office of Management and Budget, Executive Office of
  123  the President.
  124         d. “Primary business activity” means an activity
  125  representing more than 50 percent of the activities conducted at
  126  the location where the industrial machinery and equipment or
  127  postharvest machinery and equipment is located.
  128         e. “Industrial machinery and equipment” means tangible
  129  personal property or other property that has a depreciable life
  130  of 3 years or more and that is used as an integral part in the
  131  manufacturing, processing, compounding, or production of
  132  tangible personal property for sale. The term includes tangible
  133  personal property or other property that has a depreciable life
  134  of 3 years or more which is used as an integral part in the
  135  recycling of metals for sale. A building and its structural
  136  components are not industrial machinery and equipment unless the
  137  building or structural component is so closely related to the
  138  industrial machinery and equipment that it houses or supports
  139  that the building or structural component can be expected to be
  140  replaced when the machinery and equipment are replaced. Heating
  141  and air conditioning systems are not industrial machinery and
  142  equipment unless the sole justification for their installation
  143  is to meet the requirements of the production process, even
  144  though the system may provide incidental comfort to employees or
  145  serve, to an insubstantial degree, nonproduction activities. The
  146  term includes parts and accessories for industrial machinery and
  147  equipment only to the extent that the parts and accessories are
  148  necessary for the continued operation of the industrial
  149  machinery or equipment or were purchased before the date the
  150  machinery and equipment were are placed in service.
  151         f. “Postharvest activities” means services performed on
  152  crops, after their harvest, with the intent of preparing them
  153  for market or further processing. Postharvest activities
  154  include, but are not limited to, crop cleaning, sun drying,
  155  shelling, fumigating, curing, sorting, grading, packing, and
  156  cooling.
  157         g. “Postharvest machinery and equipment” means tangible
  158  personal property or other property with a depreciable life of 3
  159  years or more which is used primarily for postharvest
  160  activities. A building and its structural components are not
  161  postharvest industrial machinery and equipment unless the
  162  building or structural component is so closely related to the
  163  postharvest machinery and equipment that it houses or supports
  164  that the building or structural component can be expected to be
  165  replaced when the postharvest machinery and equipment is
  166  replaced. Heating and air conditioning systems are not
  167  postharvest machinery and equipment unless the sole
  168  justification for their installation is to meet the requirements
  169  of the postharvest activities process, even though the system
  170  may provide incidental comfort to employees or serve, to an
  171  insubstantial degree, nonpostharvest activities.
  172         3. Postharvest machinery and equipment purchased by an
  173  eligible postharvest activity business which is used at a fixed
  174  location in this state is exempt from the tax imposed by this
  175  chapter. All labor charges for the repair of, and parts and
  176  materials used in the repair of and incorporated into, such
  177  postharvest machinery and equipment are also exempt. If, at the
  178  time of purchase, the purchaser furnishes the seller with a
  179  signed certificate certifying the purchaser’s entitlement to
  180  exemption pursuant to this subparagraph, the seller is not
  181  required to collect the tax on the sale of such items, and the
  182  department shall look solely to the purchaser for recovery of
  183  the tax if it determines that the purchaser was not entitled to
  184  the exemption.
  185  
  186  ================= T I T L E  A M E N D M E N T ================
  187  And the title is amended as follows:
  188         Delete line 3832
  189  and insert:
  190         circumstances; providing applicability; amending s.
  191         212.08, F.S.; providing a sales tax exemption for
  192         certain aircraft equipment used as part of certain
  193         governmental contracts; providing a use tax exemption
  194         for certain aircraft owned by nonresidents and used in
  195         service of certain governmental contracts; providing
  196         construction; providing a sales tax exemption for
  197         parts and accessories necessary for the continued
  198         operation of certain industrial machinery or
  199         equipment; creating s.