CODING: Words stricken are deletions; words underlined are additions.House Bill 2109e1
HB 2109, First Engrossed
1 A bill to be entitled
2 An act relating to taxation; amending s.
3 196.198, F.S.; specifying conditions under
4 which property is deemed owned by an
5 educational institution for purposes of ad
6 valorem tax exemption; providing that no tax on
7 certain purchases by, and revenues of, a
8 chamber of commerce not actually paid or
9 collected before a specified date shall be due
10 from that chamber of commerce; providing for
11 refund of certain taxes paid; amending s.
12 199.103, F.S.; revising language with respect
13 to the basis of assessment for evaluation of
14 stocks or shares of a savings association or
15 middle tier stock holding company; amending s.
16 201.09, F.S.; specifying conditions under which
17 a renewal note evidencing a revolving
18 obligation is exempt from the excise tax on
19 documents; amending s. 212.02, F.S., relating
20 to sales, use, and other transactions; defining
21 the terms "self-propelled farm equipment,"
22 "power-drawn farm equipment," and "power-driven
23 farm equipment" for purposes of ch. 212, F.S.;
24 amending s. 212.05, F.S.; exempting
25 transactions in excess of $500 from the tax on
26 the sale of coins or currency; providing for
27 emergency rules; amending s. 212.054, F.S.;
28 exempting from newly enacted discretionary
29 sales surtaxes levied by a high tourism impact
30 county transactions that are subject to
31 specified tourist development taxes in an
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HB 2109, First Engrossed
1 aggregate rate that exceeds a specified
2 maximum; amending ss. 212.04 and 212.12, F.S.;
3 exempting admissions to certain collegiate
4 tournament games, baseball all-star games, and
5 postseason collegiate football games from the
6 tax on admissions; increasing the maximum
7 amount of sales and use tax remitted by a
8 dealer to which the dealer's credit applies;
9 amending s. 212.08, F.S.; revising the sales
10 tax exemption for food and drinks; providing
11 definitions; revising application of the
12 partial sales tax exemption for self-propelled
13 or power-drawn farm equipment; including
14 power-driven farm equipment within such
15 exemption; providing an exemption for
16 industrial machinery and equipment purchased
17 for use in expanding certain printing or
18 publishing facilities; removing a provision
19 that prevents the exemption for industrial
20 machinery and equipment purchased for use in
21 new or expanding businesses from applying to
22 certain publishing firms; including within the
23 definition of "religious institutions" for
24 exemption purposes certain radio stations,
25 certain nonprofit corporations which distribute
26 audio recordings to blind or visually impaired
27 persons, and certain nonprofit corporations
28 which provide religious services for or with
29 established places of worship; including within
30 the definition of "educational institutions"
31 for exemption purposes certain performing arts
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HB 2109, First Engrossed
1 centers; revising the exemption for electricity
2 used in certain manufacturing and related
3 operations; revising the uses that qualify for
4 exemption and requiring that a specified
5 percentage of the electricity must be used
6 therefor to qualify for exemption; removing the
7 requirement that such electricity be separately
8 metered to qualify for full exemption;
9 providing an exemption for replacement engines,
10 parts, and equipment used in the repair or
11 maintenance of certain aircraft; providing an
12 exemption for the sale or lease of certain
13 aircraft for use by a common carrier; providing
14 an exemption for certain foods, drinks, and
15 other items provided to customers on a
16 complimentary basis by a dealer who sells food
17 products at retail; providing an exemption for
18 foods and beverages donated by such dealers to
19 certain organizations; providing that certain
20 persons who provide food or drinks as part of a
21 packaged room rate without separately stating a
22 charge for such items are not considered
23 consumers of such items; defining "advertising
24 agency"; providing an exemption for certain
25 items and services sold to or by or created by
26 an advertising agency under certain conditions;
27 providing for retroactive application;
28 providing an exemption for certain nonprofit
29 cooperative hospital laundries; providing an
30 exemption for sales of gold, silver, or
31 platinum bullion in excess of $500; revising
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HB 2109, First Engrossed
1 provisions relating to the technical assistance
2 advisory committee established to provide
3 advice in determining taxability of foods and
4 medicines; providing membership requirements;
5 directing the Department of Revenue to develop
6 guidelines for such determination and providing
7 requirements with respect thereto; providing
8 for use of the guidelines by the committee;
9 providing for determination of the taxability
10 of specific products by the department;
11 authorizing the department to develop a central
12 database with respect thereto; amending s.
13 220.15, F.S., which provides for apportionment
14 of adjusted federal income for corporate income
15 tax purposes; providing that the property
16 factor fraction shall not include property
17 certified as dedicated to research and
18 development pursuant to sponsored research
19 conducted through a state university; providing
20 that the payroll factor shall not include
21 compensation paid to employees certified as
22 dedicated to such activities; providing that,
23 for purposes of determining the sales factor,
24 no such activities shall cause a corporation
25 not otherwise subject to corporate income tax
26 to be subject to said tax; providing
27 limitations; providing for rules; requiring a
28 report; amending s. 221.02, F.S.; providing
29 that credits against the emergency excise tax
30 that would have expired on or after July 1,
31 1996, may be carried over until fully utilized;
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HB 2109, First Engrossed
1 amending s. 212.08, F.S., relating to sales,
2 rental, use, consumption, distribution, and
3 storage tax; providing an exemption for sales
4 to certain health systems for a specified
5 period; amending s. 95.091, F.S.; revising time
6 periods within which the Department of Revenue
7 and Department of Business and Professional
8 Regulation may determine and assess the amount
9 of any tax, penalty, or interest due under
10 taxes which they have authority to administer;
11 amending s. 213.015, F.S.; specifying
12 additional taxpayer's rights; creating s.
13 213.235, F.S.; providing for determination of
14 the annual rate of interest applicable to tax
15 payment deficiencies; creating s. 213.255,
16 F.S.; providing for payment of interest on
17 overpayments of taxes, payment of taxes not
18 due, or taxes paid in error with respect to
19 taxes administered by the Department of Revenue
20 if refund is not made within a specified
21 period; providing requirements for refund
22 applications; requiring a bond or other
23 security under certain conditions; amending s.
24 213.34, F.S.; providing that no part of the
25 compensation of an employee or agent of the
26 state performing a tax audit shall be based on
27 amounts assessed or collected as a result of
28 the audit; amending s. 215.26, F.S.; revising
29 the time period within which application for
30 refund of taxes must be made; amending s.
31 198.18, F.S., relating to the rate of interest
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HB 2109, First Engrossed
1 on delinquent estate taxes, s. 199.282, F.S.,
2 relating to the rate of interest on delinquent
3 intangible personal property taxes, s. 201.17,
4 F.S., relating to the rate of interest on
5 delinquent excise taxes on documents, and s.
6 203.06, F.S., relating to the rate of interest
7 on delinquent gross receipts taxes, to conform;
8 reenacting s. 203.62, F.S., relating to the
9 gross receipts tax on interstate and
10 international telecommunications services, to
11 incorporate the amendment to s. 203.06, F.S.,
12 in a reference thereto; amending s. 206.44,
13 F.S., relating to the rate of interest on
14 delinquent motor fuel taxes, to conform;
15 reenacting ss. 206.06(1), 206.94, 206.97,
16 206.9915(3), 336.021(2)(a), and 336.025(2)(a),
17 F.S., relating to estimated fuel taxes, tax on
18 diesel fuel, tax on fuel and other pollutants,
19 the ninth-cent fuel tax on motor and diesel
20 fuel, and the local option tax on motor and
21 diesel fuel for county transportation systems,
22 to incorporate the amendment to s. 206.44,
23 F.S., in references thereto; amending s.
24 207.007, F.S., relating to the rate of interest
25 on delinquent tax on the operation of
26 commercial motor vehicles, ss. 211.076 and
27 211.33, F.S., relating to the rate of interest
28 on delinquent taxes on oil and gas production
29 and severance of minerals, and s. 212.12, F.S.,
30 relating to the rate of interest on delinquent
31 taxes on sales, use, and other transactions, to
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HB 2109, First Engrossed
1 conform; reenacting ss. 193.501(6)(e) and
2 193.505(8), F.S., relating to the interest on a
3 deferred tax liability due upon a change in
4 assessment status of certain conservation or
5 recreation land or historically significant
6 property, and s. 196.1997(7), F.S., relating to
7 the interest on taxes which become due when
8 property is no longer eligible for a historic
9 property tax exemption, to incorporate the
10 amendment to s. 212.12, F.S., in references
11 thereto; amending s. 220.807, F.S., relating to
12 the interest rate applicable to the corporate
13 income tax code, and s. 624.5092, F.S.,
14 relating to the rate of interest on delinquent
15 insurance premium taxes, to conform; directing
16 the Department of Revenue to examine and report
17 on the impact of the act; providing effective
18 dates.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Section 196.198, Florida Statutes, is
23 amended to read:
24 196.198 Educational property exemption.--Educational
25 institutions within this state and their property used by them
26 or by any other exempt entity or educational institution
27 exclusively for educational purposes shall be exempt from
28 taxation. Sheltered workshops providing rehabilitation and
29 retraining of disabled individuals and exempted by a
30 certificate under s. (d) of the federal Fair Labor Standards
31 Act of 1938, as amended, are declared wholly educational in
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HB 2109, First Engrossed
1 purpose and shall be exempted from certification,
2 accreditation, and membership requirements set forth in s.
3 196.012. Those portions of property of college fraternities
4 and sororities certified by the president of the college or
5 university to the appropriate property appraiser as being
6 essential to the educational process, shall be exempt from ad
7 valorem taxation. The use of property by public fairs and
8 expositions chartered by chapter 616 is presumed to be an
9 educational use of such property and shall be exempt from ad
10 valorem taxation to the extent of such use. Property used
11 exclusively for educational purposes shall be deemed owned by
12 an educational institution if the entity owning 100 percent of
13 the educational institution is owned by the identical persons
14 who own the property. If the title to land is held by the
15 trustee of an irrevocable inter vivos trust and if the trust
16 grantor is 100 percent owner of the corporation which operates
17 the educational institution, then the property shall be deemed
18 owned by the educational institution. Property owned by an
19 educational institution shall be deemed to be used for an
20 educational purpose if the institution has taken affirmative
21 steps to prepare the property for educational use.
22 Affirmative steps means environmental or land use permitting
23 activities, creation of architectural plans or schematic
24 drawings, land clearing or site preparation, construction or
25 renovation activities, or other similar activities that
26 demonstrate commitment of the property to an educational use.
27 Section 2. (1) As used in this section, "chamber of
28 commerce" means an organization whose operations and
29 membership are defined without regard to any specific industry
30 or industries, and which is qualified as a "chamber of
31 commerce" under s. 501(c)(6) of the Internal Revenue Code of
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HB 2109, First Engrossed
1 1986, as amended, and which is organized as a not-for-profit
2 corporation.
3 (2) No tax imposed by chapter 212, Florida Statutes,
4 on the following transactions, and not actually paid or
5 collected by a chamber of commerce before December 31, 1994,
6 shall be due from that chamber of commerce:
7 (a) Purchases by a chamber of commerce for use in its
8 operations to foster business intended to occur within the
9 state.
10 (b) Revenues of a chamber of commerce derived from
11 activities of the chamber of commerce that are intended to
12 foster business within the state for its members and the
13 general business community, including dues and fees to
14 members, the conduct of events for admission, charges to
15 businesses for participation in trade shows and similar
16 events, circulation of printed materials, including newspapers
17 and newsletters regardless of the quantity of advertising
18 content and regardless of the frequency of distribution, and
19 business seminars and events to assist businesses with their
20 operations, with compliance with laws, or with activities
21 within their communities. Any revenues derived by a chamber
22 of commerce from resales by the chamber of commerce of
23 materials routinely and directly available to any person
24 without the participation of the chamber of commerce, and
25 which would occur without participation, addition, or
26 modification in any material way by the chamber of commerce,
27 are not qualified as an exempt transaction of the chamber of
28 commerce under this section.
29 (3) Any chamber of commerce that has paid taxes that
30 have been imposed by this chapter and that would be exempted
31 from such taxes according to paragraph (2)(a) shall be
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HB 2109, First Engrossed
1 entitled to a refund of the taxes paid. The claim for this
2 refund must be filed on or before July 1, 1998.
3 Section 3. Subsection (1) of section 201.09, Florida
4 Statutes, 1996 Supplement, as amended by chapter 96-395, Laws
5 of Florida, is amended to read:
6 201.09 Renewal of existing promissory notes and
7 mortgages; exemption.--
8 (1) When any promissory note is given in renewal of
9 any existing promissory note, which renewal note only extends
10 or continues the identical contractual obligations of the
11 original promissory note and evidences part or all of the
12 original indebtedness evidenced thereby, not including any
13 accumulated interest thereon and without enlargement in any
14 way of the original contract and obligation, such renewal note
15 shall not be subject to taxation under this chapter if such
16 renewal note has attached to it the original promissory note
17 with the proper notation thereon as required by s. 201.133.
18 In order to be exempt from taxation under this section, a
19 renewal note evidencing a term obligation shall not be
20 executed by any person other than the original obligor and
21 must renew and extend only the unpaid balance of the original
22 contract and obligation. In order to be exempt from taxation
23 under this section, a renewal note evidencing a revolving
24 obligation shall not be executed by any person other than the
25 original obligor and must renew and extend no more than the
26 original face amount of the original contract and obligation.
27 Section 4. Subsection (8) of section 199.103, Florida
28 Statutes, is amended to read:
29 199.103 Basis of assessment; valuation.--All
30 intangible personal property shall be subject to the annual
31
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HB 2109, First Engrossed
1 tax at its just valuation as of January 1 of each year. Such
2 property shall be valued in the following manner:
3 (8) Stocks or shares of a savings association or
4 middle tier stock holding company, held by a parent mutual
5 holding company, whose depositors are members of the mutual
6 holding company, which converted from a mutual savings
7 association to a mutual holding company pursuant to 12 U.S.C.
8 s. 1467a.(o) 1567(a)(o), shall be valued as of January 1 each
9 year on the same basis as ownership in the mutual savings
10 association was valued for intangible tax purposes prior to
11 the conversion. Stocks or shares of such a converted
12 association which are held by individuals or entities other
13 than the parent mutual holding company shall be valued
14 pursuant to subsection (1) or subsection (4).
15 Section 5. Subsections (27), (28), and (29) are added
16 to section 212.02, Florida Statutes, 1996 Supplement, to read:
17 212.02 Definitions.--The following terms and phrases
18 when used in this chapter have the meanings ascribed to them
19 in this section, except where the context clearly indicates a
20 different meaning:
21 (27) "Self-propelled farm equipment" means equipment
22 that contains within itself the means for its own propulsion,
23 including, but not limited to, tractors.
24 (28) "Power-drawn farm equipment" means equipment that
25 is pulled, dragged, or otherwise attached to self-propelled
26 equipment, including, but not limited to, discs, harrows, hay
27 balers, and mowers.
28 (29) "Power-driven farm equipment" means moving or
29 stationary equipment that is dependent upon an external power
30 source in order to perform its function, including, but not
31
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HB 2109, First Engrossed
1 limited to, conveyors, augers, feeding systems, and vacuum
2 pumps.
3 Section 6. Paragraph (l) of subsection (1) of section
4 212.05, Florida Statutes, 1996 Supplement, is amended to read:
5 212.05 Sales, storage, use tax.--It is hereby declared
6 to be the legislative intent that every person is exercising a
7 taxable privilege who engages in the business of selling
8 tangible personal property at retail in this state, including
9 the business of making mail order sales, or who rents or
10 furnishes any of the things or services taxable under this
11 chapter, or who stores for use or consumption in this state
12 any item or article of tangible personal property as defined
13 herein and who leases or rents such property within the state.
14 (1) For the exercise of such privilege, a tax is
15 levied on each taxable transaction or incident, which tax is
16 due and payable as follows:
17 (l)1. Notwithstanding any other provision of this
18 part, there is hereby levied a tax on the sale, use,
19 consumption, or storage for use in this state of any coin or
20 currency, whether in circulation or not, when such coin or
21 currency:
22 a. Is not legal tender;
23 b. If legal tender, is sold, exchanged, or traded at a
24 rate in excess of its face value; or
25 c. Is sold, exchanged, or traded at a rate based on
26 its precious metal content.
27 2. Such tax shall be at a rate of 6 percent of the
28 price at which the coin or currency is sold, exchanged, or
29 traded, except that, with respect to a coin or currency which
30 is legal tender of the United States and which is sold,
31 exchanged, or traded at a rate in excess of its face value,
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HB 2109, First Engrossed
1 the tax shall be at a rate of 6 percent of the difference
2 between the price at which it is sold, exchanged, or traded
3 and its face value.
4 3. There are exempt from this tax exchanges of coins
5 or currency which are in general circulation in, and legal
6 tender of, one nation for coins or currency which are in
7 general circulation in, and legal tender of, another nation
8 when exchanged solely for use as legal tender and at an
9 exchange rate based on the relative value of each as a medium
10 of exchange.
11 4. With respect to any transaction that involves the
12 sale of coins or currency taxable under this paragraph in
13 which the taxable amount represented by the sale of such coins
14 or currency exceeds $500, the entire amount represented by the
15 sale of such coins or currency shall be exempt from the tax
16 imposed by this paragraph. The dealer must maintain proper
17 documentation, as prescribed by rule of the department, to
18 identify that portion of a transaction which involves the sale
19 of coins or currency and is exempt under this subparagraph.
20 Section 7. The executive director of the Department of
21 Revenue is authorized to adopt emergency rules pursuant to s.
22 120.54(4), Florida Statutes, for purposes of implementing the
23 amendment to s. 212.05(1)(l), Florida Statutes, and the
24 creation of s. 212.08(7)(uu), Florida Statutes, by this act.
25 Notwithstanding any other provision of law, such emergency
26 rules shall remain effective for 6 months from the date of
27 adoption. This section shall take effect upon this act
28 becoming a law.
29 Section 8. Paragraph (b) of subsection (2) of section
30 212.054, Florida Statutes, 1996 Supplement, is amended to
31 read:
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HB 2109, First Engrossed
1 212.054 Discretionary sales surtax; limitations,
2 administration, and collection.--
3 (2)
4 (b) However:
5 1. The tax on any sales amount above $5,000 on any
6 item of tangible personal property and on long-distance
7 telephone service shall not be subject to the surtax. For
8 purposes of administering the $5,000 limitation on an item of
9 tangible personal property, if two or more taxable items of
10 tangible personal property are sold to the same purchaser at
11 the same time and, under generally accepted business practice
12 or industry standards or usage, are normally sold in bulk or
13 are items that, when assembled, comprise a working unit or
14 part of a working unit, such items must be considered a single
15 item for purposes of the $5,000 limitation when supported by a
16 charge ticket, sales slip, invoice, or other tangible evidence
17 of a single sale or rental. The limitation provided in this
18 subparagraph does not apply to the sale of any other service.
19 2. In the case of utility, telecommunication, or
20 television system program services billed on or after the
21 effective date of any such surtax, the entire amount of the
22 tax for utility, telecommunication, or television system
23 program services shall be subject to the surtax. In the case
24 of utility, telecommunication, or television system program
25 services billed after the last day the surtax is in effect,
26 the entire amount of the tax on said items shall not be
27 subject to the surtax.
28 3. In the case of written contracts which are signed
29 prior to the effective date of any such surtax for the
30 construction of improvements to real property or for
31 remodeling of existing structures, the surtax shall be paid by
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HB 2109, First Engrossed
1 the contractor responsible for the performance of the
2 contract. However, the contractor may apply for one refund of
3 any such surtax paid on materials necessary for the completion
4 of the contract. Any application for refund shall be made no
5 later than 15 months following initial imposition of the
6 surtax in that county. The application for refund shall be in
7 the manner prescribed by the department by rule. A complete
8 application shall include proof of the written contract and of
9 payment of the surtax. The application shall contain a sworn
10 statement, signed by the applicant or its representative,
11 attesting to the validity of the application. The department
12 shall, within 30 days after approval of a complete
13 application, certify to the county information necessary for
14 issuance of a refund to the applicant. Counties are hereby
15 authorized to issue refunds for this purpose and shall set
16 aside from the proceeds of the surtax a sum sufficient to pay
17 any refund lawfully due. Any person who fraudulently obtains
18 or attempts to obtain a refund pursuant to this subparagraph,
19 in addition to being liable for repayment of any refund
20 fraudulently obtained plus a mandatory penalty of 100 percent
21 of the refund, is guilty of a felony of the third degree,
22 punishable as provided in s. 775.082, s. 775.083, or s.
23 775.084.
24 4. Transactions that are subject to the tourist
25 development tax levied and imposed under s. 125.0104(3) are
26 not subject to the discretionary surtax levied under s.
27 212.055 by the governing body of a high tourism impact county
28 if:
29 a. The aggregate rate of the tourist development tax
30 levied and imposed on such transactions within the county
31 equals or exceeds 5 percent; and
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HB 2109, First Engrossed
1 b. The discretionary surtax that is initially levied
2 by the governing body of the county has an effective date of
3 January 1, 1998, or later.
4
5 If the tourist development tax is levied and imposed only in a
6 subcounty special district and not in the entire county, the
7 exemption provided under this subparagraph applies only in the
8 subcounty special district. If the aggregate rate of the
9 tourist development tax levied and imposed within the county
10 or subcounty special district is reduced to less than 5
11 percent, the exemption provided under this subparagraph no
12 longer applies within the county or subcounty special
13 district.
14 Section 9. Paragraph (a) of subsection (2) of section
15 212.04, Florida Statutes, 1996 Supplement, is amended, and,
16 effective January 1, 1998, subsection (5) of said section is
17 amended, to read:
18 212.04 Admissions tax; rate, procedure, enforcement.--
19 (2)(a)1. No tax shall be levied on admissions to
20 athletic or other events sponsored by elementary schools,
21 junior high schools, middle schools, high schools, community
22 colleges, public or private colleges and universities, deaf
23 and blind schools, facilities of the youth services programs
24 of the Department of Health and Rehabilitative Services, and
25 state correctional institutions when only student, faculty, or
26 inmate talent is used. However, this exemption shall not apply
27 to admission to athletic events sponsored by an institution
28 within the State University System, and the proceeds of the
29 tax collected on such admissions shall be retained and used by
30 each institution to support women's athletics as provided in
31 s. 240.533(3)(c).
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HB 2109, First Engrossed
1 2.a. No tax shall be levied on dues, membership fees,
2 and admission charges imposed by not-for-profit sponsoring
3 organizations. To receive this exemption, the sponsoring
4 organization must qualify as a not-for-profit entity under the
5 provisions of s. 501(c)(3) of the United States Internal
6 Revenue Code of 1954, as amended.
7 b. No tax imposed by this section and not actually
8 collected before August 1, 1992, shall be due from any museum
9 or historic building owned by any political subdivision of the
10 state.
11 3. No tax shall be levied on an admission paid by a
12 student, or on the student's behalf, to any required place of
13 sport or recreation if the student's participation in the
14 sport or recreational activity is required as a part of a
15 program or activity sponsored by, and under the jurisdiction
16 of, the student's educational institution, provided his or her
17 attendance is as a participant and not as a spectator.
18 4. No tax shall be levied on admissions to the
19 National Football League championship game, on admissions to
20 any semifinal game or championship game of a national
21 collegiate tournament, or on admissions to a Major League
22 Baseball all-star game.
23 5. A participation fee or sponsorship fee imposed by a
24 governmental entity as described in s. 212.08(6) for an
25 athletic or recreational program is exempt when the
26 governmental entity by itself, or in conjunction with an
27 organization exempt under s. 501(c)(3) of the United States
28 Internal Revenue Code of 1954, as amended, sponsors,
29 administers, plans, supervises, directs, and controls the
30 athletic or recreational program.
31
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HB 2109, First Engrossed
1 6. Also exempt from the tax imposed by this section to
2 the extent provided in this subparagraph are admissions to
3 live theater, live opera, or live ballet productions in this
4 state which are sponsored by an organization that has received
5 a determination from the Internal Revenue Service that the
6 organization is exempt from federal income tax under s.
7 501(c)(3) of the United States Internal Revenue Code of 1954,
8 as amended, if the organization actively participates in
9 planning and conducting the event, is responsible for the
10 safety and success of the event, is organized for the purpose
11 of sponsoring live theater, live opera, or live ballet
12 productions in this state, has more than 10,000 subscribing
13 members and has among the stated purposes in its charter the
14 promotion of arts education in the communities which it
15 serves, and will receive at least 20 percent of the net
16 profits, if any, of the events which the organization sponsors
17 and will bear the risk of at least 20 percent of the losses,
18 if any, from the events which it sponsors if the organization
19 employs other persons as agents to provide services in
20 connection with a sponsored event. Prior to March 1 of each
21 year, such organization may apply to the department for a
22 certificate of exemption for admissions to such events
23 sponsored in this state by the organization during the
24 immediately following state fiscal year. The application shall
25 state the total dollar amount of admissions receipts collected
26 by the organization or its agents from such events in this
27 state sponsored by the organization or its agents in the year
28 immediately preceding the year in which the organization
29 applies for the exemption. Such organization shall receive the
30 exemption only to the extent of $1.5 million multiplied by the
31 ratio that such receipts bear to the total of such receipts of
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HB 2109, First Engrossed
1 all organizations applying for the exemption in such year;
2 however, in no event shall such exemption granted to any
3 organization exceed 6 percent of such admissions receipts
4 collected by the organization or its agents in the year
5 immediately preceding the year in which the organization
6 applies for the exemption. Each organization receiving the
7 exemption shall report each month to the department the total
8 admissions receipts collected from such events sponsored by
9 the organization during the preceding month and shall remit to
10 the department an amount equal to 6 percent of such receipts
11 reduced by any amount remaining under the exemption. Tickets
12 for such events sold by such organizations shall not reflect
13 the tax otherwise imposed under this section.
14 7. No tax shall be levied on admissions to any
15 postseason collegiate football game sanctioned by the National
16 Collegiate Athletic Association.
17 (5) All of the provisions of this chapter relating to
18 collection, investigation, discovery, and aids to collection
19 of taxes upon sales of tangible personal property shall
20 likewise apply to all privileges described or referred to in
21 this section, and the obligations imposed in this chapter upon
22 retailers are hereby imposed upon the seller of such
23 admissions. When tickets or admissions are sold and not used
24 but returned and credited by the seller, the seller may apply
25 to the department for a credit allowance for such returned
26 tickets or admissions if advance payments have been made by
27 the buyer and have been returned by the seller, upon such form
28 and in such manner as the department may from time to time
29 prescribe. The department may, upon obtaining satisfactory
30 proof of the refunds on the part of the seller, credit the
31 seller for taxes paid upon admissions that have been returned
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HB 2109, First Engrossed
1 unused to the purchaser of those admissions. The seller of
2 admissions, upon the payment of the taxes before they become
3 delinquent and the rendering of the returns in accordance with
4 the requirement of the department and as provided in this law,
5 shall be entitled to a discount of 2.5 percent of the amount
6 of taxes upon the payment thereof before such taxes become
7 delinquent, in the same manner as permitted the sellers of
8 tangible personal property in this chapter. However, if the
9 amount of the tax due and remitted to the department for the
10 reporting period exceeds $2,000 $1,200, no discount shall be
11 allowed for all amounts in excess of $2,000 $1,200.
12 Section 10. Effective January 1, 1998, subsection (1)
13 of section 212.12, Florida Statutes, 1996 Supplement, is
14 amended to read:
15 212.12 Dealer's credit for collecting tax; penalties
16 for noncompliance; powers of Department of Revenue in dealing
17 with delinquents; brackets applicable to taxable transactions;
18 records required.--
19 (1) Notwithstanding any other provision of law and for
20 the purpose of compensating persons granting licenses for and
21 the lessors of real and personal property taxed hereunder, for
22 the purpose of compensating dealers in tangible personal
23 property, for the purpose of compensating dealers providing
24 communication services and taxable services, for the purpose
25 of compensating owners of places where admissions are
26 collected, and for the purpose of compensating remitters of
27 any taxes or fees reported on the same documents utilized for
28 the sales and use tax, as compensation for the keeping of
29 prescribed records and the proper accounting and remitting of
30 taxes by them, such seller, person, lessor, dealer, owner, and
31 remitter (except dealers who make mail order sales) shall be
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HB 2109, First Engrossed
1 allowed 2.5 percent of the amount of the tax due and accounted
2 for and remitted to the department, in the form of a deduction
3 in submitting his or her report and paying the amount due by
4 him or her; the department shall allow such deduction of 2.5
5 percent of the amount of the tax to the person paying the same
6 for remitting the tax in the manner herein provided, for
7 paying the amount due to be paid by him or her, and as further
8 compensation to dealers in tangible personal property for the
9 keeping of prescribed records and for collection of taxes and
10 remitting the same. However, if the amount of the tax due and
11 remitted to the department for the reporting period exceeds
12 $2,000 $1,200, no allowance shall be allowed for all amounts
13 in excess of $2,000 $1,200. The executive director of the
14 department is authorized to negotiate a collection allowance,
15 pursuant to rules promulgated by the department, with a dealer
16 who makes mail order sales. The rules of the department shall
17 provide guidelines for establishing the collection allowance
18 based upon the dealer's estimated costs of collecting the tax,
19 the volume and value of the dealer's mail order sales to
20 purchasers in this state, and the administrative and legal
21 costs and likelihood of achieving collection of the tax absent
22 the cooperation of the dealer. However, in no event shall the
23 collection allowance negotiated by the executive director
24 exceed 10 percent of the tax remitted for a reporting period.
25 (a) The collection allowance may not be granted, nor
26 may any deduction be permitted, if the tax is delinquent at
27 the time of payment.
28 (b) The Department of Revenue may reduce the
29 collection allowance by 10 percent or $50, whichever is less,
30 if a taxpayer files an incomplete return.
31
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HB 2109, First Engrossed
1 1. An "incomplete return" is, for purposes of this
2 chapter, a return which is lacking such uniformity,
3 completeness, and arrangement that the physical handling,
4 verification, or review of the return may not be readily
5 accomplished.
6 2. The department shall adopt rules requiring such
7 information as it may deem necessary to ensure that the tax
8 levied hereunder is properly collected, reviewed, compiled,
9 and enforced, including, but not limited to: the amount of
10 gross sales; the amount of taxable sales; the amount of tax
11 collected or due; the amount of lawful refunds, deductions, or
12 credits claimed; the amount claimed as the dealer's collection
13 allowance; the amount of penalty and interest; the amount due
14 with the return; and such other information as the Department
15 of Revenue may specify. The department shall require that
16 transient rentals and agricultural equipment transactions be
17 separately shown. For returns remitted on or after February 1,
18 1992, the department shall also require that sales made
19 through vending machines as defined in s. 212.0515 be
20 separately shown. For returns remitted on or after February 1,
21 1995, sales made through coin-operated amusement machines as
22 defined by s. 212.02 and the number of machines operated must
23 be separately shown on the return or on a form prescribed by
24 the department. If a separate form is required, the same
25 penalties for late filing, incomplete filing, or failure to
26 file as provided for the sales tax return shall apply to said
27 form.
28 (c) The collection allowance and other credits or
29 deductions provided in this part shall be applied
30 proportionally to any taxes or fees reported on the same
31 documents used for the sales and use tax.
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HB 2109, First Engrossed
1 Section 11. Subsections (1), (3), and (14), paragraph
2 (b) of subsection (5), and paragraphs (o), (ff), and (ii) of
3 subsection (7) of section 212.08, Florida Statutes, 1996
4 Supplement, are amended, and paragraphs (nn), (oo), (pp),
5 (qq), (rr), (ss), (tt), and (uu) are added to subsection (7)
6 of said section, to read:
7 212.08 Sales, rental, use, consumption, distribution,
8 and storage tax; specified exemptions.--The sale at retail,
9 the rental, the use, the consumption, the distribution, and
10 the storage to be used or consumed in this state of the
11 following are hereby specifically exempt from the tax imposed
12 by this part.
13 (1) EXEMPTIONS; GENERAL GROCERIES.--
14 (a) There are exempted from the tax imposed by this
15 chapter food products for human consumption.
16 (b) For the purpose of this chapter, "food products"
17 means edible commodities, whether processed, cooked, raw,
18 canned, or in any other form, which are generally regarded as
19 food. This includes, but is not limited to, all of the
20 following:
21 1. Cereals and cereal products, baked goods,
22 oleomargarine, meat and meat products, fish and seafood
23 products, frozen foods and dinners, poultry, eggs and egg
24 products, vegetables and vegetable products, fruit and fruit
25 products, spices, salt, sugar and sugar products, milk and
26 dairy products, and products intended to be mixed with milk.
27 2. Natural fruit or vegetable juices or their
28 concentrates or reconstituted natural concentrated fruit or
29 vegetable juices, whether frozen or unfrozen, dehydrated,
30 powdered, granulated, sweetened or unsweetened, seasoned with
31
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HB 2109, First Engrossed
1 salt or spice, or unseasoned; coffee, coffee substitutes, or
2 cocoa; and tea, unless sold in a liquid form.
3 3. Bakery products sold by bakeries, pastry shops, or
4 like establishments which do not have eating facilities.
5 (c) None of the exemptions provided in paragraph (b)
6 applies to any of the following:
7 1. When the food products are sold as meals for
8 consumption on or off the seller's premises.
9 2. When the food products are furnished, prepared, or
10 served for consumption at tables, chairs, or counters or from
11 trays, glasses, dishes, or other tableware, whether provided
12 by the seller or by a person with whom the seller contracts to
13 furnish, prepare, or serve food products to others.
14 3. When the food products are ordinarily sold for
15 immediate consumption on the seller's premises or near a
16 location at which parking facilities are provided primarily
17 for the use of patrons in consuming the products purchased at
18 the location, even though such products are sold on a "take
19 out" or "to go" order and are actually packaged or wrapped and
20 taken from the seller's premises.
21 4. Sandwiches sold ready for immediate consumption on
22 or off the seller's premises.
23 5. When the food products are sold ready for immediate
24 consumption within a place, the entrance to which is subject
25 to an admission charge.
26 6. Soft drinks, which include, but are not limited to,
27 any nonalcoholic beverage, any preparation or beverage
28 commonly referred to as a "soft drink," or any noncarbonated
29 drink made from milk derivatives or tea, when sold in a liquid
30 form.
31
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HB 2109, First Engrossed
1 7. Ice cream, frozen yogurt, and similar frozen dairy
2 or nondairy products in cones, small cups, or pints,
3 popsicles, frozen fruit bars, or other novelty items, whether
4 or not sold separately.
5 8. Food prepared, whether on or off the premises, and
6 sold for immediate consumption. This does not apply to food
7 prepared off the premises and sold in the original sealed
8 container, or the slicing of products into smaller portions.
9 9. When the food products are sold through a vending
10 machine, pushcart, motor vehicle, or any other form of
11 vehicle.
12 10. Candy and any similar product regarded as candy or
13 confection, based on its normal use, as indicated on the label
14 or advertising thereof.
15 11. Bakery products sold by bakeries, pastry shops, or
16 like establishments which have eating facilities, except when
17 sold for consumption off the seller's premises.
18 12. When food products are served, prepared, or sold
19 in or by restaurants, lunch counters, cafeterias, hotels,
20 taverns, or other like places of business.
21 13. Food products sold as hot prepared food products.
22 (d) For purposes of this subsection:
23 1. "For consumption off the seller's premises" means
24 that the food or drink is intended by the customer to be
25 consumed at a place away from the seller's premises.
26 2. "For consumption on the seller's premises" means
27 that the food or drink sold may be immediately consumed on the
28 premises where the seller conducts his or her business. In
29 determining whether an item of food is sold for immediate
30 consumption, there shall be considered the customary
31 consumption practices prevailing at the selling facility.
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HB 2109, First Engrossed
1 3. "Premises" shall be construed broadly, and means,
2 but is not limited to, the lobby, aisle, or auditorium of a
3 theater; the seating, aisle, or parking area of an arena,
4 rink, or stadium; or the parking area of a drive-in or outdoor
5 theater. The premises of a caterer with respect to catered
6 meals or beverages shall be the place where such meals or
7 beverages are served.
8 4. "Hot prepared food products" means those products,
9 items, or components which have been prepared for sale in a
10 heated condition and which are sold at any temperature which
11 is higher than the air temperature of the room or place where
12 they are sold. "Hot prepared food products," for the purposes
13 of this subsection, includes a combination of hot and cold
14 food items or components where a single price has been
15 established for the combination and the food products are sold
16 in such combination, such as a hot meal, a hot specialty dish
17 or serving, or a hot sandwich or hot pizza, including cold
18 components or side items.
19 (a) There are exempt from the tax imposed by this
20 chapter food and drinks for human consumption except candy.
21 Unless the exemption provided by paragraph (7)(q) for school
22 lunches, paragraph (7)(i) for meals to certain patients or
23 inmates, paragraph (7)(k) for meals provided by certain
24 nonprofit organizations, or paragraph (7)(z) for food or
25 drinks sold through vending machines pertains, none of such
26 items of food or drinks means:
27 1. Food or drinks served, prepared, or sold in or by
28 restaurants; drugstores; lunch counters; cafeterias; hotels;
29 amusement parks; racetracks; taverns; concession stands at
30 arenas, auditoriums, carnivals, fairs, stadiums, theaters, or
31 other like places of business; or by any business or place
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HB 2109, First Engrossed
1 required by law to be licensed by the Division of Hotels and
2 Restaurants of the Department of Business and Professional
3 Regulation, except bakery products sold in or by pastry shops,
4 doughnut shops, or like establishments for consumption off the
5 premises;
6 2. Foods and drinks sold ready for immediate
7 consumption from vending machines, pushcarts, motor vehicles,
8 or any other form of vehicle;
9 3. Soft drinks, which include, but are not limited to,
10 any nonalcoholic beverage, any preparation or beverage
11 commonly referred to as a "soft drink," or any noncarbonated
12 drink made from milk derivatives or tea, when sold in cans or
13 similar containers. The term "soft drink" does not include:
14 natural fruit or vegetable juices or their concentrates or
15 reconstituted natural concentrated fruit or vegetable juices,
16 whether frozen or unfrozen, dehydrated, powdered, granulated,
17 sweetened or unsweetened, seasoned with salt or spice, or
18 unseasoned; coffee or coffee substitutes; tea except when sold
19 in containers as provided herein; cocoa; products intended to
20 be mixed with milk; or natural fluid milk;
21 4. Foods or drinks cooked or prepared on the seller's
22 premises and sold ready for immediate consumption either on or
23 off the premises, excluding bakery products for off-premises
24 consumption unless such foods are taxed under subparagraph 1.
25 or subparagraph 2.; or
26 5. Sandwiches sold ready for immediate consumption.
27
28 For the purposes of this paragraph, "seller's premises" shall
29 be construed broadly, and means, but is not limited to, the
30 lobby, aisle, or auditorium of a theater; the seating, aisle,
31 or parking area of an arena, rink, or stadium; or the parking
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HB 2109, First Engrossed
1 area of a drive-in or outdoor theater. The premises of a
2 caterer with respect to catered meals or beverages shall be
3 the place where such meals or beverages are served.
4 (e)(b)1. Food or drinks not exempt under paragraphs
5 (a), (b), (c), and (d) paragraph (a) shall be exempt,
6 notwithstanding those paragraphs that paragraph, when
7 purchased with food coupons or Special Supplemental Food
8 Program for Women, Infants, and Children vouchers issued under
9 authority of federal law.
10 2. This paragraph is effective only while federal law
11 prohibits a state's participation in the federal food coupon
12 program or Special Supplemental Food Program for Women,
13 Infants, and Children if there is an official determination
14 that state or local sales taxes are collected within that
15 state on purchases of food or drinks with such coupons.
16 3. This paragraph shall not apply to any food or
17 drinks on which federal law shall permit sales taxes without
18 penalty, such as termination of the state's participation.
19 4. Notwithstanding any other provision of law, the
20 department shall make refunds or allow credits to a
21 distributor equal to the fee imposed and paid under s.
22 403.7197 on containers purchased by consumers with food
23 coupons or Special Supplemental Food Program for Women,
24 Infants, and Children vouchers issued under authority of
25 federal law.
26 (3) EXEMPTIONS, PARTIAL; CERTAIN FARM
27 EQUIPMENT.--There shall be taxable at the rate of 3 percent
28 the sale, use, consumption, or storage for use in this state
29 of self-propelled, or power-drawn, or power-driven farm
30 equipment used exclusively on a farm or in a forest by a
31 farmer on a farm owned, leased, or sharecropped by the farmer
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HB 2109, First Engrossed
1 in plowing, planting, cultivating, or harvesting crops or
2 products as produced by those agricultural industries included
3 in s. 570.02(1). Harvesting is not to be construed to include
4 processing activities. This partial exemption is not
5 forfeited by the act of moving farm equipment between farms or
6 forests. The rental of self-propelled, or power-drawn, or
7 power-driven farm equipment shall be taxed at the rate of 6
8 percent.
9 (5) EXEMPTIONS; ACCOUNT OF USE.--
10 (b) Machinery and equipment used to increase
11 productive output.--
12 1. Industrial machinery and equipment purchased for
13 use in new businesses which manufacture, process, compound, or
14 produce for sale, or for exclusive use in spaceport activities
15 as defined in s. 212.02, items of tangible personal property
16 at fixed locations are exempt from the tax imposed by this
17 chapter upon an affirmative showing by the taxpayer to the
18 satisfaction of the department that such items are used in a
19 new business in this state. Such purchases must be made prior
20 to the date the business first begins its productive
21 operations, and delivery of the purchased item must be made
22 within 12 months of that date.
23 2.a. Industrial machinery and equipment purchased for
24 use in expanding manufacturing facilities or plant units which
25 manufacture, process, compound, or produce for sale, or for
26 exclusive use in spaceport activities as defined in s. 212.02,
27 items of tangible personal property at fixed locations in this
28 state are exempt from any amount of tax imposed by this
29 chapter in excess of $50,000 per calendar year upon an
30 affirmative showing by the taxpayer to the satisfaction of the
31
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HB 2109, First Engrossed
1 department that such items are used to increase the productive
2 output of such expanded business by not less than 10 percent.
3 b. Notwithstanding any other provision of this
4 section, industrial machinery and equipment purchased for use
5 in expanding printing or publishing manufacturing facilities
6 or plant units that manufacture, process, compound, or produce
7 for sale items of tangible personal property at fixed
8 locations in this state are exempt from any amount of tax
9 imposed by this chapter upon an affirmative showing by the
10 taxpayer to the satisfaction of the department that such items
11 are used to increase the productive output of such expanded
12 business by not less than 10 percent.
13 3.a. To receive an exemption provided by subparagraph
14 1. or subparagraph 2., a qualifying business entity shall
15 apply to the department for a temporary tax exemption permit.
16 The application shall state that a new business exemption or
17 expanded business exemption is being sought. Upon a tentative
18 affirmative determination by the department pursuant to
19 subparagraph 1. or subparagraph 2., the department shall issue
20 such permit.
21 b. The applicant shall be required to maintain all
22 necessary books and records to support the exemption. Upon
23 completion of purchases of qualified machinery and equipment
24 pursuant to subparagraph 1. or subparagraph 2., the temporary
25 tax permit shall be delivered to the department or returned to
26 the department by certified or registered mail.
27 c. If, in a subsequent audit conducted by the
28 department, it is determined that the machinery and equipment
29 purchased as exempt under subparagraph 1. or subparagraph 2.
30 did not meet the criteria mandated by this paragraph or if
31 commencement of production did not occur, the amount of taxes
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HB 2109, First Engrossed
1 exempted at the time of purchase shall immediately be due and
2 payable to the department by the business entity, together
3 with the appropriate interest and penalty, computed from the
4 date of purchase, in the manner prescribed by this chapter.
5 d. In the event a qualifying business entity fails to
6 apply for a temporary exemption permit or if the tentative
7 determination by the department required to obtain a temporary
8 exemption permit is negative, a qualifying business entity
9 shall receive the exemption provided in subparagraph 1. or
10 subparagraph 2. through a refund of previously paid taxes. No
11 refund may be made for such taxes unless the criteria mandated
12 by subparagraph 1. or subparagraph 2. have been met and
13 commencement of production has occurred.
14 4. The department shall promulgate rules governing
15 applications for, issuance of, and the form of temporary tax
16 exemption permits; provisions for recapture of taxes; and the
17 manner and form of refund applications and may establish
18 guidelines as to the requisites for an affirmative showing of
19 increased productive output, commencement of production, and
20 qualification for exemption.
21 5. The exemptions provided in subparagraphs 1. and 2.
22 do not apply to machinery or equipment purchased or used by
23 electric utility companies, communications companies,
24 phosphate or other solid minerals severance, mining, or
25 processing operations, oil or gas exploration or production
26 operations, publishing firms that do not export at least 50
27 percent of their finished product out of the state, any firm
28 subject to regulation by the Division of Hotels and
29 Restaurants of the Department of Business and Professional
30 Regulation, or any firm which does not manufacture, process,
31 compound, or produce for sale, or for exclusive use in
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HB 2109, First Engrossed
1 spaceport activities as defined in s. 212.02, items of
2 tangible personal property.
3 6. For the purposes of the exemptions provided in
4 subparagraphs 1. and 2., these terms have the following
5 meanings:
6 a. "Industrial machinery and equipment" means "section
7 38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the
8 Internal Revenue Code, provided "industrial machinery and
9 equipment" shall be construed by regulations adopted by the
10 Department of Revenue to mean tangible property used as an
11 integral part of the manufacturing, processing, compounding,
12 or producing for sale, or for exclusive use in spaceport
13 activities as defined in s. 212.02, of items of tangible
14 personal property. Such term includes parts and accessories
15 only to the extent that the exemption thereof is consistent
16 with the provisions of this paragraph.
17 b. "Productive output" means the number of units
18 actually produced by a single plant or operation in a single
19 continuous 12-month period, irrespective of sales. Increases
20 in productive output shall be measured by the output for 12
21 continuous months immediately following the completion of
22 installation of such machinery or equipment over the output
23 for the 12 continuous months immediately preceding such
24 installation. However, if a different 12-month continuous
25 period of time would more accurately reflect the increase in
26 productive output of machinery and equipment purchased to
27 facilitate an expansion, the increase in productive output may
28 be measured during that 12-month continuous period of time if
29 such time period is mutually agreed upon by the Department of
30 Revenue and the expanding business prior to the commencement
31 of production; provided, however, in no case may such time
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HB 2109, First Engrossed
1 period begin later than 2 years following the completion of
2 installation of the new machinery and equipment. The units
3 used to measure productive output shall be physically
4 comparable between the two periods, irrespective of sales.
5 7. Notwithstanding any other provision in this
6 paragraph to the contrary, in order to receive the exemption
7 provided in this paragraph a taxpayer must register with the
8 WAGES Program Business Registry established by the local WAGES
9 coalition for the area in which the taxpayer is located. Such
10 registration establishes a commitment on the part of the
11 taxpayer to hire WAGES program participants to the maximum
12 extent possible consistent with the nature of their business.
13 (7) MISCELLANEOUS EXEMPTIONS.--
14 (o) Religious, charitable, scientific, educational,
15 and veterans' institutions and organizations.--
16 1. There are exempt from the tax imposed by this part
17 transactions involving:
18 a. Sales or leases directly to churches or sales or
19 leases of tangible personal property by churches;
20 b. Sales or leases to nonprofit religious, nonprofit
21 charitable, nonprofit scientific, or nonprofit educational
22 institutions when used in carrying on their customary
23 nonprofit religious, nonprofit charitable, nonprofit
24 scientific, or nonprofit educational activities, including
25 church cemeteries; and
26 c. Sales or leases to the state headquarters of
27 qualified veterans' organizations and the state headquarters
28 of their auxiliaries when used in carrying on their customary
29 veterans' organization activities. If a qualified veterans'
30 organization or its auxiliary does not maintain a permanent
31 state headquarters, then transactions involving sales or
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HB 2109, First Engrossed
1 leases to such organization and used to maintain the office of
2 the highest ranking state official are exempt from the tax
3 imposed by this part.
4 2. The provisions of this section authorizing
5 exemptions from tax shall be strictly defined, limited, and
6 applied in each category as follows:
7 a. "Religious institutions" means churches,
8 synagogues, and established physical places for worship at
9 which nonprofit religious services and activities are
10 regularly conducted and carried on. The term "religious
11 institutions" includes nonprofit corporations the sole purpose
12 of which is to provide free transportation services to church
13 members, their families, and other church attendees. The term
14 "religious institutions" also includes state, district, or
15 other governing or administrative offices the function of
16 which is to assist or regulate the customary activities of
17 religious organizations or members. The term "religious
18 institutions" also includes any nonprofit corporation which is
19 qualified as nonprofit pursuant to s. 501(c)(3), United States
20 Internal Revenue Code of 1986, as amended, which owns and
21 operates a Florida radio or television station, at least 90
22 percent of the programming of which station consists of
23 programs of a religious nature, and the financial support for
24 which, exclusive of receipts for broadcasting from other
25 nonprofit organizations, is predominantly from contributions
26 from the general public. The term "religious institutions"
27 also includes any nonprofit corporation which is qualified as
28 nonprofit pursuant to s. 501(c)(3), United States Internal
29 Revenue Code of 1986, as amended, which provides regular
30 religious services to Florida state prisoners and which from
31 its own established physical place of worship, operates a
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HB 2109, First Engrossed
1 ministry providing worship and services of a charitable nature
2 to the community on a weekly basis. The term "religious
3 institutions" also includes any nonprofit corporation which is
4 qualified as nonprofit pursuant to s. 501(c)(3), United States
5 Internal Revenue Code of 1986, as amended, the primary
6 activity of which is distribution of audio recordings of
7 religious scriptures to blind or visually impaired persons at
8 no charge. The term "religious institutions" also includes any
9 nonprofit corporation which is qualified as nonprofit pursuant
10 to s. 501(c)(3), United States Internal Revenue Code of 1986,
11 as amended, the sole or primary function of which is to
12 provide, at any location, nonprofit religious services,
13 evangelistic services, religious education, or missionary
14 activities for, or in direct participation with, one or more
15 churches, synagogues, or established places of worship at
16 which nonprofit religious services and activities are
17 regularly conducted.
18 b. "Charitable institutions" means only nonprofit
19 corporations qualified as nonprofit pursuant to s. 501(c)(3),
20 United States Internal Revenue Code of 1954, as amended, and
21 other nonprofit entities, the sole or primary function of
22 which is to provide, or to raise funds for organizations which
23 provide, one or more of the following services if a reasonable
24 percentage of such service is provided free of charge, or at a
25 substantially reduced cost, to persons, animals, or
26 organizations that are unable to pay for such service:
27 (I) Medical aid for the relief of disease, injury, or
28 disability;
29 (II) Regular provision of physical necessities such as
30 food, clothing, or shelter;
31
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HB 2109, First Engrossed
1 (III) Services for the prevention of or rehabilitation
2 of persons from alcoholism or drug abuse; the prevention of
3 suicide; or the alleviation of mental, physical, or sensory
4 health problems;
5 (IV) Social welfare services including adoption
6 placement, child care, community care for the elderly, and
7 other social welfare services which clearly and substantially
8 benefit a client population which is disadvantaged or suffers
9 a hardship;
10 (V) Medical research for the relief of disease,
11 injury, or disability;
12 (VI) Legal services; or
13 (VII) Food, shelter, or medical care for animals or
14 adoption services, cruelty investigations, or education
15 programs concerning animals;
16
17 and the term includes groups providing volunteer staff to
18 organizations designated as charitable institutions under this
19 sub-subparagraph; nonprofit organizations the sole or primary
20 purpose of which is to coordinate, network, or link other
21 institutions designated as charitable institutions under this
22 sub-subparagraph with those persons, animals, or organizations
23 in need of their services; and nonprofit national, state,
24 district, or other governing, coordinating, or administrative
25 organizations the sole or primary purpose of which is to
26 represent or regulate the customary activities of other
27 institutions designated as charitable institutions under this
28 sub-subparagraph. Notwithstanding any other requirement of
29 this section, any blood bank that relies solely upon volunteer
30 donations of blood and tissue, that is licensed under chapter
31 483, and that qualifies as tax exempt under s. 501(c)(3) of
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HB 2109, First Engrossed
1 the Internal Revenue Code constitutes a charitable institution
2 and is exempt from the tax imposed by this part.
3 c. "Scientific organizations" means scientific
4 organizations which hold current exemptions from federal
5 income tax under s. 501(c)(3) of the Internal Revenue Code and
6 also means organizations the purpose of which is to protect
7 air and water quality or the purpose of which is to protect
8 wildlife and which hold current exemptions from the federal
9 income tax under s. 501(c)(3) of the Internal Revenue Code.
10 d. "Educational institutions" means state
11 tax-supported or parochial, church and nonprofit private
12 schools, colleges, or universities which conduct regular
13 classes and courses of study required for accreditation by, or
14 membership in, the Southern Association of Colleges and
15 Schools, the Department of Education, the Florida Council of
16 Independent Schools, or the Florida Association of Christian
17 Colleges and Schools, Inc., or nonprofit private schools which
18 conduct regular classes and courses of study accepted for
19 continuing education credit by a Board of the Division of
20 Medical Quality Assurance of the Department of Business and
21 Professional Regulation or which conduct regular classes and
22 courses of study accepted for continuing education credit by
23 the American Medical Association. Nonprofit libraries, art
24 galleries, performing arts centers that provide educational
25 programs exclusively to school children when such programs
26 involve performances or other educational activities at the
27 performing arts center and serve a minimum of 50,000 school
28 children per year, performing arts organizations that receive
29 funding from the Florida Cultural Institutions Program, and
30 museums open to the public are defined as educational
31 institutions and are eligible for exemption. The term
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1 "educational institutions" includes private nonprofit
2 organizations the purpose of which is to raise funds for
3 schools teaching grades kindergarten through high school,
4 colleges, and universities. The term "educational
5 institutions" includes any nonprofit newspaper of free or paid
6 circulation primarily on university or college campuses which
7 holds a current exemption from federal income tax under s.
8 501(c)(3) of the Internal Revenue Code, and any educational
9 television or radio network or system established pursuant to
10 s. 229.805 or s. 229.8051 and any nonprofit television or
11 radio station which is a part of such network or system and
12 which holds a current exemption from federal income tax under
13 s. 501(c)(3) of the Internal Revenue Code. The term
14 "educational institutions" also includes state, district, or
15 other governing or administrative offices the function of
16 which is to assist or regulate the customary activities of
17 educational organizations or members. The term "educational
18 institutions" also includes a nonprofit educational cable
19 consortium which holds a current exemption from federal income
20 tax under s. 501(c)(3) of the Internal Revenue Code of 1986,
21 as amended, whose primary purpose is the delivery of
22 educational and instructional cable television programming and
23 whose members are composed exclusively of educational
24 organizations which hold a valid consumer certificate of
25 exemption and which are either an educational institution as
26 defined in this sub-subparagraph, or qualified as a nonprofit
27 organization pursuant to s. 501(c)(3) of the Internal Revenue
28 Code of 1986, as amended.
29 e. "Veterans' organizations" means nationally
30 chartered or recognized veterans' organizations, including,
31 but not limited to, Florida chapters of the Paralyzed Veterans
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1 of America, Catholic War Veterans of the U.S.A., Jewish War
2 Veterans of the U.S.A., and the Disabled American Veterans,
3 Department of Florida, Inc., which hold current exemptions
4 from federal income tax under s. 501(c)(4) or (19) of the
5 Internal Revenue Code.
6 (ff) Aircraft repair and maintenance labor
7 charges.--There shall be exempt from the tax imposed by this
8 part all labor charges for the repair and maintenance of
9 aircraft of more than 20,000 pounds maximum certified takeoff
10 weight. Except as otherwise provided in this chapter, charges
11 for parts and equipment furnished in connection with such
12 labor charges are taxable.
13 (ii) Certain electricity uses.--
14 1. Charges for electricity used to operate machinery
15 and equipment directly and exclusively at a fixed location in
16 this state when such to operate machinery and equipment that
17 is used to manufacture, process, compound, or produce, or
18 prepare for shipment items of tangible personal property for
19 sale, or to operate pollution control equipment, recycling
20 equipment, maintenance equipment, or monitoring or control
21 equipment used in such operations are exempt to the extent
22 provided in this paragraph from the tax imposed by this part
23 as provided in subparagraph 2. In order to qualify for this
24 exemption, 75 percent or more of the electricity used at the
25 fixed location must be used to operate qualifying machinery or
26 equipment. The exemption provided for herein is applicable if
27 the electricity that is used for the exempt purposes is
28 separately metered, or if it is not separately metered, it is
29 irrevocably presumed that 50 percent of the charge for
30 electricity is for nonexempt purposes.
31
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1 2. This exemption only applies only to industries
2 classified under SIC Industry Major Group Numbers 10, 12, 13,
3 14, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33,
4 34, 35, 36, 37, 38, and 39. As used in this paragraph, "SIC"
5 means those classifications contained in the Standard
6 Industrial Classification Manual, 1987, as published by the
7 Office of Management and Budget, Executive Office of the
8 President.
9 3. Possession by a seller of a written certification
10 by the purchaser, certifying the purchaser's entitlement to an
11 exemption permitted by this subsection, relieves the seller
12 from the responsibility of collecting the tax on the
13 nontaxable amounts, and the department shall look solely to
14 the purchaser for recovery of such tax if it determines that
15 the purchaser was not entitled to the exemption.
16 4. Such exemption shall be applied as follows:
17 a.1. Beginning July 1, 1996, 20 percent of the charges
18 for such electricity shall be exempt.
19 b.2. Beginning July 1, 1997, 40 percent of the charges
20 for such electricity shall be exempt.
21 c.3. Beginning July 1, 1998, 60 percent of the charges
22 for such electricity shall be exempt.
23 d.4. Beginning July 1, 1999, 80 percent of the charges
24 for such electricity shall be exempt.
25 e.5. Beginning July 1, 2000, 100 percent of the
26 charges for such electricity shall be exempt.
27 5. Notwithstanding any other provision in this
28 paragraph to the contrary, in order to receive the exemption
29 provided in this paragraph a taxpayer must first register with
30 the WAGES Program Business Registry established by the local
31 WAGES coalition for the area in which the taxpayer is located.
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1 Such registration establishes a commitment on the part of the
2 taxpayer to hire WAGES program participants to the maximum
3 extent possible consistent with the nature of their business.
4 6.a. In order to determine whether the exemption
5 provided in this paragraph from the tax on charges for
6 electricity has an effect on retaining or attracting companies
7 to this state, the Office of Program Policy Analysis and
8 Governmental Accountability shall periodically monitor and
9 report on the industries receiving the exemption.
10 b. The first report shall be submitted no later than
11 January 1, 1997, and must be conducted in such a manner as to
12 specifically determine the number of companies within each SIC
13 Industry Major Group receiving the exemption as of September
14 1, 1996, and the number of individuals employed by companies
15 within each SIC Industry Major Group receiving the exemption
16 as of September 1, 1996.
17 c. The second report shall be submitted no later than
18 January 1, 2001, and must be comprehensive in scope, but, at a
19 minimum, must be conducted in such a manner as to specifically
20 determine the number of companies within each SIC Industry
21 Major Group receiving the exemption as of September 1, 2000,
22 the number of individuals employed by companies within each
23 SIC Industry Major Group receiving the exemption as of
24 September 1, 2000, whether the change, if any, in such number
25 of companies or employees is attributable to the exemption
26 provided in this paragraph, whether it would be sound public
27 policy to continue or discontinue the exemption, and the
28 consequences of doing so.
29 d. Both reports shall be submitted to the President of
30 the Senate, the Speaker of the House of Representatives, the
31 Senate Minority Leader, and the House Minority Leader.
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1 (nn) Equipment used in aircraft repair and
2 maintenance.--There shall be exempt from the tax imposed by
3 this chapter replacement engines, parts, and equipment used in
4 the repair or maintenance of aircraft of more than 20,000
5 pounds maximum certified takeoff weight, when such parts or
6 equipment are installed on such aircraft that is being
7 repaired or maintained in this state.
8 (oo) Aircraft sales or leases.--The sale or lease of
9 an aircraft of more than 20,000 pounds maximum certified
10 takeoff weight for use by a common carrier is exempt from the
11 tax imposed by this chapter. As used in this paragraph,
12 "common carrier" means an airline operating under part 121 or
13 part 129 of the federal aviation regulations.
14 (pp) Complimentary items.--There is exempt from the
15 tax imposed by this chapter:
16 1. Any food or drink, whether or not cooked or
17 prepared on the premises, provided without charge as a sample
18 or for the convenience of customers by a dealer that primarily
19 sells food product items at retail.
20 2. Any item given to a customer as part of a price
21 guarantee plan related to point-of-sale errors by a dealer
22 that primarily sells food products at retail.
23 (gg) Donated goods, foods or beverages.--Any goods,
24 food or beverages donated by a dealer that sells goods, or
25 food products at retail to a food bank or an organization
26 which holds current exemption from federal corporate income
27 tax pursuant to s. 501(c) of the Internal Revenue Code of
28 1986, as amended, is exempt from the tax imposed by this
29 chapter.
30 (rr) Complimentary meals.--Where no separate charge or
31 specific amount is shown for food or drinks furnished as part
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HB 2109, First Engrossed
1 of a packaged room rate by any person offering for rent or
2 lease any transient living accommodations as described in s.
3 509.013(4)(a) which are licensed under part I of chapter 509
4 and which are subject to the tax under s. 212.03, such drinks
5 or food are considered sold at retail as a part of the total
6 charge for the transient living accommodations. The person
7 offering the accommodations is not considered the consumer of
8 items purchased in furnishing such food or drinks and may
9 purchase such items under conditions of a sale for resale.
10 (ss) Advertising agencies.--
11 1. As used in this paragraph, the term "advertising
12 agency" means any firm that is regularly engaged in the
13 business of providing advertising materials and services to
14 its clients.
15 2. Exempt from the tax imposed by this chapter are
16 advertising services provided by an advertising agency to its
17 clients and items of tangible personal property such as
18 photographic negatives and positives, videos, films, galleys,
19 mechanicals, veloxes, illustrations, and artwork and the
20 services used to produce those items if the items are:
21 a. Sold to an advertising agency that is acting as an
22 agent for its clients pursuant to contract, and are created
23 for the performance of advertising services for the clients;
24 b. Produced, fabricated, manufactured, or otherwise
25 created by an advertising agency for its clients, and are used
26 in the performance of advertising services for the clients; or
27 c. Sold by an advertising agency to its clients in the
28 performance of advertising services for the clients, whether
29 or not the charges for these items are marked up or separately
30 stated.
31
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1 3. The items exempted from tax under subparagraph 2.
2 and the creative services used by an advertising agency to
3 design the advertising for promotional goods such as displays,
4 display containers, exhibits, newspaper inserts, brochures,
5 catalogues, direct mail letters or flats, shirts, hats, pens,
6 pencils, key chains, or other printed goods or materials are
7 not subject to tax. However, when such promotional goods are
8 produced or reproduced for distribution, tax applies only to
9 the cost price of such production or reproduction for
10 distribution.
11 4. The exemptions provided by this paragraph apply
12 retroactively, except that taxes that have been remitted
13 before July 1, 1997, on transactions that are subject to
14 exemption under this paragraph are not subject to refund.
15 (tt) Nonprofit cooperative hospital
16 laundries.--Nonprofit organizations which are incorporated
17 under chapter 617 and which are treated, for federal income
18 tax purposes, as cooperatives under subchapter T of the
19 Internal Revenue Code, whose sole purpose is to offer laundry
20 supplies and services to its members, which members must all
21 be exempt from federal income tax pursuant to s. 501(c)(3) of
22 the Internal Revenue Code, are exempt from the tax imposed by
23 this chapter.
24 (uu) Bullion.--The sale of gold, silver, or platinum
25 bullion, or any combination thereof in a single transaction,
26 is exempt if the sales price exceeds $500. The dealer must
27 maintain proper documentation, as prescribed by rule of the
28 department, to identify that portion of a transaction which
29 involves the sale of gold, silver, or platinum bullion and is
30 exempt under this paragraph.
31
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HB 2109, First Engrossed
1 (14)(a) The department shall establish a technical
2 assistance advisory committee with public and private sector
3 members, including representatives of both manufacturers and
4 retailers, to advise the Department of Revenue and the
5 Department of Children and Family Health and Rehabilitative
6 Services in determining the taxability of specific products
7 and product lines pursuant to subsection (1) and paragraph
8 (2)(a). In determining taxability and in preparing a list of
9 specific products and product lines which are or are not
10 taxable, the committee shall not be subject to the provisions
11 of chapter 120. Private sector members shall not be
12 compensated for serving on the committee.
13 (b) The department, with the advice of the committee,
14 shall develop guidelines for determining the taxability of
15 specific products. The guidelines shall not be subject to the
16 provisions of chapter 120 and shall be a public record. In
17 developing the guidelines, if the department determines that a
18 proposed guideline substantially affects a particular person,
19 it shall notify the person of the development of the proposed
20 guideline. The guidelines shall be submitted to the
21 Administrative Procedures Committee and the department shall
22 respond to any comments made by the committee or to any person
23 substantially affected by the guidelines.
24 (c) The advisory committee shall use guidelines
25 determined by the department in making its recommendations.
26 The committee shall forward its recommendations to the
27 department, which shall determine the taxability of specific
28 products. The determination shall be a public record and shall
29 be final upon its publication and shall remain effective
30 unless a change of determination is published. The
31 determination shall not be subject to the provisions of
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HB 2109, First Engrossed
1 chapter 120 except that the determination may be challenged
2 pursuant to a proceeding conducted under ss. 120.569 and
3 120.57.
4 (d) The department is authorized to develop a central
5 database and to publish the determination as to the taxability
6 of specific products in a manner which generally provides
7 retailers with information to properly tax products based on
8 their universal product codes. To assure maximum benefit to
9 the retail community, the committee shall help in identifying
10 the scope of information that should be included in the
11 central database and the appropriate methods to assure
12 efficient and effective communication. Information contained
13 in the central database shall not be subject to the provisions
14 of chapter 120 and shall be a public record.
15 Section 12. (1) Paragraph (c) is added to subsection
16 (2) and paragraph (c) is added to subsection (4) of section
17 220.15, Florida Statutes, and paragraph (c) of subsection (5)
18 of said section is amended, to read:
19 220.15 Apportionment of adjusted federal income.--
20 (2) The property factor is a fraction the numerator of
21 which is the average value of the taxpayer's real and tangible
22 personal property owned or rented and used in this state
23 during the taxable year or period and the denominator of which
24 is the average value of such property owned or rented and used
25 everywhere.
26 (c) The property factor fraction shall not include any
27 real or tangible personal property located in this state with
28 respect to which it is certified to the Department of Revenue
29 by the Board of Regents that such property is dedicated
30 exclusively to research and development activities performed
31
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HB 2109, First Engrossed
1 pursuant to sponsored research contracts conducted in
2 conjunction with and through a state university.
3 (4) The payroll factor is a fraction the numerator of
4 which is the total amount paid in this state during the
5 taxable year or period by the taxpayer for compensation and
6 the denominator of which is the total compensation paid
7 everywhere during the taxable year or period.
8 (c) The payroll factor fraction shall not include any
9 compensation paid to any employee located in this state when
10 it is certified to the Department of Revenue by the Board of
11 Regents that such compensation was paid to employees dedicated
12 exclusively to research and development activities performed
13 pursuant to sponsored research contracts conducted in
14 conjunction with and through a state university.
15 (5) The sales factor is a fraction the numerator of
16 which is the total sales of the taxpayer in this state during
17 the taxable year or period and the denominator of which is the
18 total sales of the taxpayer everywhere during the taxable year
19 or period.
20 (c) Sales of a financial organization, including, but
21 not limited to, banking and savings institutions, investment
22 companies, real estate investment trusts, and brokerage
23 companies, occur in this state if derived from:
24 1. Fees, commissions, or other compensation for
25 financial services rendered within this state;
26 2. Gross profits from trading in stocks, bonds, or
27 other securities managed within this state;
28 3. Interest received within this state, other than
29 interest from loans secured by mortgages, deeds of trust, or
30 other liens upon real or tangible personal property located
31 without this state, and dividends received within this state;
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HB 2109, First Engrossed
1 4. Interest charged to customers at places of business
2 maintained within this state for carrying debit balances of
3 margin accounts, without deduction of any costs incurred in
4 carrying such accounts;
5 5. Interest, fees, commissions, or other charges or
6 gains from loans secured by mortgages, deeds of trust, or
7 other liens upon real or tangible personal property located in
8 this state or from installment sale agreements originally
9 executed by a taxpayer or the taxpayer's agent to sell real or
10 tangible personal property located in this state;
11 6. Rents from real or tangible personal property
12 located in this state; or
13 7. Any other gross income, including other interest,
14 resulting from the operation as a financial organization
15 within this state.
16
17 In computing the amounts under this paragraph, any amount
18 received by a member of an affiliated group (determined under
19 s. 1504(a) of the Internal Revenue Code, but without reference
20 to whether any such corporation is an "includable corporation"
21 under s. 1504(b) of the Internal Revenue Code) from another
22 member of such group shall be included only to the extent such
23 amount exceeds expenses of the recipient directly related
24 thereto. No research and development activities certified by
25 the Board of Regents as being conducted in conjunction with
26 and through a state university within this state shall cause
27 any corporation to become subject to the taxes imposed by this
28 chapter if the corporation would otherwise not be subject to
29 the tax levied under this chapter. The property and payroll
30 eliminated from the apportionment formula pursuant to the
31 provisions of paragraphs (2)(c) and (4)(c) shall be eliminated
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HB 2109, First Engrossed
1 only for the duration of the contractual period specified in
2 the contracts for the conduct of the sponsored research. The
3 reduction in tax due as a result of the property and payroll
4 eliminated from the apportionment formula pursuant to the
5 provisions of paragraphs (2)(c) and (4)(c) shall not exceed
6 the amount paid to the state university for the conduct of the
7 sponsored research. No sponsored research contracts in
8 existence prior to July 1, 1997, shall be eligible to
9 participate in the provisions of paragraphs (2)(c) and (4)(c).
10 (2) The Department of Revenue is directed to adopt any
11 rules necessary to administer the amendment to s. 220.15,
12 Florida Statutes, by this section. The Board of Regents shall
13 monitor the various sponsored research contracts and make a
14 report to the Speaker of the House of Representatives and to
15 the President of the Senate by February 1, 1999, which shall
16 provide any necessary information which indicates if the
17 provisions of this section have been successful in attracting
18 additional sponsored research contracts.
19 Section 13. Section 221.02, Florida Statutes, is
20 amended to read:
21 221.02 Credit for emergency excise tax paid.--The
22 emergency excise tax paid pursuant to s. 221.01 plus any
23 credit or carryover properly applied to reduce the amount of
24 the emergency excise tax due for the taxable year shall be
25 allowed as a credit against the emergency excise tax, if any,
26 to be charged and collected pursuant to this chapter for the
27 return filed for the fifth taxable year following the taxable
28 year for which the tax was paid or, if earlier, the taxable
29 year for which a final return is required. To the extent that
30 the credit exceeds the emergency excise tax, if any, for the
31 return filed for the fifth taxable year following the taxable
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HB 2109, First Engrossed
1 year for which the tax was paid or, if earlier, the taxable
2 year for which a final return is required, such excess shall
3 be allowed as a reduction of, and credit against, any tax
4 imposed by chapter 220 upon the taxpayer for the fifth taxable
5 year following the taxable year for which the tax was paid or,
6 if earlier, the taxable year for which a final return is
7 required. If the taxpayer is unable to fully utilize the
8 credit in the year in which it is first allowed, it may be
9 carried over to each of the 5 taxable years immediately
10 thereafter; however, any such credit which would have expired
11 on or after July 1, 1996, may be carried over until such
12 credit is fully utilized.
13 Section 14. Paragraph (o) of subsection (7) of section
14 212.08, Florida Statutes, 1996 Supplement, is amended to read:
15 212.08 Sales, rental, use, consumption, distribution,
16 and storage tax; specified exemptions.--The sale at retail,
17 the rental, the use, the consumption, the distribution, and
18 the storage to be used or consumed in this state of the
19 following are hereby specifically exempt from the tax imposed
20 by this part.
21 (7) MISCELLANEOUS EXEMPTIONS.--
22 (o) Religious, charitable, scientific, educational,
23 and veterans' institutions and organizations.--
24 1. There are exempt from the tax imposed by this part
25 transactions involving:
26 a. Sales or leases directly to churches or sales or
27 leases of tangible personal property by churches;
28 b. Sales or leases to nonprofit religious, nonprofit
29 charitable, nonprofit scientific, or nonprofit educational
30 institutions when used in carrying on their customary
31 nonprofit religious, nonprofit charitable, nonprofit
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1 scientific, or nonprofit educational activities, including
2 church cemeteries; and
3 c. Sales or leases to the state headquarters of
4 qualified veterans' organizations and the state headquarters
5 of their auxiliaries when used in carrying on their customary
6 veterans' organization activities. If a qualified veterans'
7 organization or its auxiliary does not maintain a permanent
8 state headquarters, then transactions involving sales or
9 leases to such organization and used to maintain the office of
10 the highest ranking state official are exempt from the tax
11 imposed by this part.
12 2. The provisions of this section authorizing
13 exemptions from tax shall be strictly defined, limited, and
14 applied in each category as follows:
15 a. "Religious institutions" means churches,
16 synagogues, and established physical places for worship at
17 which nonprofit religious services and activities are
18 regularly conducted and carried on. The term "religious
19 institutions" includes nonprofit corporations the sole purpose
20 of which is to provide free transportation services to church
21 members, their families, and other church attendees. The term
22 "religious institutions" also includes state, district, or
23 other governing or administrative offices the function of
24 which is to assist or regulate the customary activities of
25 religious organizations or members. The term "religious
26 institutions" also includes any nonprofit corporation which is
27 qualified as nonprofit pursuant to s. 501(c)(3), United States
28 Internal Revenue Code of 1986, as amended, which owns and
29 operates a Florida television station, at least 90 percent of
30 the programming of which station consists of programs of a
31 religious nature, and the financial support for which,
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HB 2109, First Engrossed
1 exclusive of receipts for broadcasting from other nonprofit
2 organizations, is predominantly from contributions from the
3 general public. The term "religious institutions" also
4 includes any nonprofit corporation which is qualified as
5 nonprofit pursuant to s. 501(c)(3), United States Internal
6 Revenue Code of 1986, as amended, which provides regular
7 religious services to Florida state prisoners and which from
8 its own established physical place of worship, operates a
9 ministry providing worship and services of a charitable nature
10 to the community on a weekly basis.
11 b. "Charitable institutions" means only nonprofit
12 corporations qualified as nonprofit pursuant to s. 501(c)(3),
13 United States Internal Revenue Code of 1954, as amended, and
14 other nonprofit entities, the sole or primary function of
15 which is to provide, or to raise funds for organizations which
16 provide, one or more of the following services if a reasonable
17 percentage of such service is provided free of charge, or at a
18 substantially reduced cost, to persons, animals, or
19 organizations that are unable to pay for such service:
20 (I) Medical aid for the relief of disease, injury, or
21 disability;
22 (II) Regular provision of physical necessities such as
23 food, clothing, or shelter;
24 (III) Services for the prevention of or rehabilitation
25 of persons from alcoholism or drug abuse; the prevention of
26 suicide; or the alleviation of mental, physical, or sensory
27 health problems;
28 (IV) Social welfare services including adoption
29 placement, child care, community care for the elderly, and
30 other social welfare services which clearly and substantially
31
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HB 2109, First Engrossed
1 benefit a client population which is disadvantaged or suffers
2 a hardship;
3 (V) Medical research for the relief of disease,
4 injury, or disability;
5 (VI) Legal services; or
6 (VII) Food, shelter, or medical care for animals or
7 adoption services, cruelty investigations, or education
8 programs concerning animals;
9
10 and the term includes groups providing volunteer staff to
11 organizations designated as charitable institutions under this
12 sub-subparagraph; nonprofit organizations the sole or primary
13 purpose of which is to coordinate, network, or link other
14 institutions designated as charitable institutions under this
15 sub-subparagraph with those persons, animals, or organizations
16 in need of their services; and nonprofit national, state,
17 district, or other governing, coordinating, or administrative
18 organizations the sole or primary purpose of which is to
19 represent or regulate the customary activities of other
20 institutions designated as charitable institutions under this
21 sub-subparagraph. Notwithstanding any other requirement of
22 this section, any blood bank that relies solely upon volunteer
23 donations of blood and tissue, that is licensed under chapter
24 483, and that qualifies as tax exempt under s. 501(c)(3) of
25 the Internal Revenue Code constitutes a charitable institution
26 and is exempt from the tax imposed by this part. Sales to a
27 health system, qualified as nonprofit pursuant to s.
28 501(c)(3), United States Internal Revenue Code of 1986, as
29 amended, which filed an application for exemption with the
30 department prior to April 5, 1997, and which application is
31
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HB 2109, First Engrossed
1 subsequently approved, shall be exempt as to any unpaid taxes
2 on purchases made from January 1, 1994, to June 1, 1997.
3 c. "Scientific organizations" means scientific
4 organizations which hold current exemptions from federal
5 income tax under s. 501(c)(3) of the Internal Revenue Code and
6 also means organizations the purpose of which is to protect
7 air and water quality or the purpose of which is to protect
8 wildlife and which hold current exemptions from the federal
9 income tax under s. 501(c)(3) of the Internal Revenue Code.
10 d. "Educational institutions" means state
11 tax-supported or parochial, church and nonprofit private
12 schools, colleges, or universities which conduct regular
13 classes and courses of study required for accreditation by, or
14 membership in, the Southern Association of Colleges and
15 Schools, the Department of Education, the Florida Council of
16 Independent Schools, or the Florida Association of Christian
17 Colleges and Schools, Inc., or nonprofit private schools which
18 conduct regular classes and courses of study accepted for
19 continuing education credit by a Board of the Division of
20 Medical Quality Assurance of the Department of Business and
21 Professional Regulation or which conduct regular classes and
22 courses of study accepted for continuing education credit by
23 the American Medical Association. Nonprofit libraries, art
24 galleries, and museums open to the public are defined as
25 educational institutions and are eligible for exemption. The
26 term "educational institutions" includes private nonprofit
27 organizations the purpose of which is to raise funds for
28 schools teaching grades kindergarten through high school,
29 colleges, and universities. The term "educational
30 institutions" includes any nonprofit newspaper of free or paid
31 circulation primarily on university or college campuses which
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HB 2109, First Engrossed
1 holds a current exemption from federal income tax under s.
2 501(c)(3) of the Internal Revenue Code, and any educational
3 television or radio network or system established pursuant to
4 s. 229.805 or s. 229.8051 and any nonprofit television or
5 radio station which is a part of such network or system and
6 which holds a current exemption from federal income tax under
7 s. 501(c)(3) of the Internal Revenue Code. The term
8 "educational institutions" also includes state, district, or
9 other governing or administrative offices the function of
10 which is to assist or regulate the customary activities of
11 educational organizations or members. The term "educational
12 institutions" also includes a nonprofit educational cable
13 consortium which holds a current exemption from federal income
14 tax under s. 501(c)(3) of the Internal Revenue Code of 1986,
15 as amended, whose primary purpose is the delivery of
16 educational and instructional cable television programming and
17 whose members are composed exclusively of educational
18 organizations which hold a valid consumer certificate of
19 exemption and which are either an educational institution as
20 defined in this sub-subparagraph, or qualified as a nonprofit
21 organization pursuant to s. 501(c)(3) of the Internal Revenue
22 Code of 1986, as amended.
23 e. "Veterans' organizations" means nationally
24 chartered or recognized veterans' organizations, including,
25 but not limited to, Florida chapters of the Paralyzed Veterans
26 of America, Catholic War Veterans of the U.S.A., Jewish War
27 Veterans of the U.S.A., and the Disabled American Veterans,
28 Department of Florida, Inc., which hold current exemptions
29 from federal income tax under s. 501(c)(4) or (19) of the
30 Internal Revenue Code.
31
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HB 2109, First Engrossed
1 Section 15. Effective January 1, 1999, and applicable
2 to taxes due, taxes paid, or returns filed after the effective
3 date, paragraph (a) of subsection (3) of section 95.091,
4 Florida Statutes, is amended to read:
5 95.091 Limitation on actions to collect taxes.--
6 (3)(a)1. With the exception of taxes levied under
7 chapter 198 and tax adjustments made pursuant to s. 220.23,
8 the Department of Revenue may determine and assess the amount
9 of any tax, penalty, or interest due under any tax enumerated
10 in s. 72.011 which it has authority to administer and the
11 Department of Business and Professional Regulation may
12 determine and assess the amount of any tax, penalty, or
13 interest due under any tax enumerated in s. 72.011 which it
14 has authority to administer:
15 a. Within 3 5 years after the date the tax is due, any
16 return with respect to the tax is due, or such return is
17 filed, whichever occurs later;
18 b. Within 4 6 years after the date the taxpayer either
19 makes a substantial underpayment of tax, or files a
20 substantially incorrect return;
21 c. At any time while the right to a refund or credit
22 of the tax is available to the taxpayer;
23 d. At any time after the taxpayer has failed to make
24 any required payment of the tax, has failed to file a required
25 return, or has filed a grossly false or fraudulent return; or
26 e. In any case in which there has been a refund of tax
27 erroneously made for any reason, within 5 years after making
28 such refund, or at any time after making such refund if it
29 appears that any part of the refund was induced by fraud or
30 the misrepresentation of a material fact.
31
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1 2. For the purpose of this paragraph, a tax return
2 filed before the last day prescribed by law, including any
3 extension thereof, shall be deemed to have been filed on such
4 last day, and payments made prior to the last day prescribed
5 by law shall be deemed to have been paid on such last day.
6 Section 16. Effective July 1, 1997, subsection (16) is
7 added to section 213.015, Florida Statutes, 1996 Supplement,
8 and, effective January 1, 1999, subsections (17), (18), and
9 (19) are added to said section, to read:
10 213.015 Taxpayer rights.--There is created a Florida
11 Taxpayer's Bill of Rights to guarantee that the rights,
12 privacy, and property of Florida taxpayers are adequately
13 safeguarded and protected during tax assessment, collection,
14 and enforcement processes administered under the revenue laws
15 of this state. The Taxpayer's Bill of Rights compiles, in one
16 document, brief but comprehensive statements which explain, in
17 simple, nontechnical terms, the rights and obligations of the
18 Department of Revenue and taxpayers. The rights afforded
19 taxpayers to assure that their privacy and property are
20 safeguarded and protected during tax assessment and collection
21 are available only insofar as they are implemented in other
22 parts of the Florida Statutes or rules of the Department of
23 Revenue. The rights so guaranteed Florida taxpayers in the
24 Florida Statutes and the departmental rules are:
25 (16) The right to assurance that no part of the
26 compensation of employees or agents of any governmental entity
27 in Florida, when performing tax audits, will be based on the
28 amount of tax assessed or collected as a result of the audit
29 (see ss. 213.28 and 213.34).
30 (17) The right to receive interest when a refund is
31 not paid within 90 days after receipt of a complete
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1 application for refund for overpayments, payment of taxes not
2 due, or taxes paid in error (see ss. 213.255 and 220.723).
3 (18) The right to market interest rates on delinquent
4 taxes (see s. 213.235).
5 (19) The right to the same statute of limitations on
6 assessments and refunds (see ss. 95.091, 213.25, 215.26, and
7 220.727).
8 Section 17. Effective January 1, 1999, and applicable
9 to taxes unpaid after the effective date, section 213.235,
10 Florida Statutes, is created to read:
11 213.235 Determination of interest on deficiencies.--
12 (1) The annual rate of interest applicable to tax
13 payment deficiencies shall be two percentage points greater
14 than the adjusted rate established by the executive director
15 of the department under subsection (2). This annual rate of
16 interest is applicable to all taxes enumerated in s. 213.05,
17 except those taxes imposed in chapters 192 through 197 and
18 chapter 200.
19 (2) If the adjusted prime rate charged by banks,
20 rounded to the nearest full percent, during either:
21 (a) The 6-month period ending on September 30 of any
22 calendar year; or
23 (b) The 6-month period ending on March 31 of any
24 calendar year,
25
26 differs from the interest rate in effect on such date, the
27 executive director of the department shall, within 20 days,
28 establish an adjusted rate of interest equal to such adjusted
29 prime rate.
30 (3) An adjusted rate of interest established under
31 this section shall become effective:
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1 (a) On January 1 of the succeeding year, if based upon
2 the adjusted prime rate for the 6-month period ending on
3 September 30; or
4 (b) On July 1 of the same calendar year, if based upon
5 the adjusted prime rate for the 6-month period ending on March
6 31.
7 (4) For the purposes of this section, "adjusted prime
8 rate charged by banks" means the average predominant prime
9 rate quoted by commercial banks to large businesses, as
10 determined by the Board of Governors of the Federal Reserve
11 System.
12 (5) Once established, an adjusted rate of interest
13 shall remain in effect until an adjustment is made under
14 subsection (2).
15 Section 18. Effective January 1, 1999, and applicable
16 to amounts paid after the effective date, section 213.255,
17 Florida Statutes, is created to read:
18 213.255 Interest.--Interest shall be paid on
19 overpayments of taxes, payment of taxes not due, or taxes paid
20 in error, subject to the following conditions:
21 (1) A refund application must be filed with the
22 department within the time specified by s. 215.26.
23 (2) A refund application shall not be processed until
24 it is determined complete. A refund application is complete
25 if it is filed on a permitted form and contains:
26 (a) The taxpayer's name, address, identifying number,
27 and signature.
28 (b) Sufficient information, whether on the application
29 or attachments, to permit mathematical verification of the
30 amount of the refund.
31
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1 (c) The amount claimed and proof that such amount was
2 paid to the state.
3 (d) The specific grounds upon which the refund is
4 claimed.
5 (e) The taxable years or periods involved.
6 (f) A completed audit, if an audit is required by the
7 department.
8 (g) In the case of taxes collected and remitted to the
9 state, proof that such monies have first been refunded to the
10 party from whom they were collected.
11 (h) Any other statutory requirement regarding such
12 refund, including restrictions requiring a delay in such
13 refund have been met.
14 (3) If the refund application is not complete, the
15 department shall return the application to the taxpayer with
16 instructions to include any documents needed to complete the
17 application.
18 (4) Interest shall not commence until 90 days after a
19 complete refund application has been filed and the amount of
20 overpayment has not been refunded to the taxpayer or applied
21 as a credit to the taxpayer's account. If the department and
22 the taxpayer mutually agree that an audit of the claim is
23 necessary, interest shall not commence until the audit of the
24 claim is final.
25 (5) If a refund claim is denied and such denial is
26 reversed by a court of last resort or if a tax is adjudicated
27 unconstitutional by the Supreme Court of Florida or higher
28 court, and a refund of the tax is ordered, interest shall not
29 commence on complete applications until 90 days after the
30 adjudication becomes final and unappealable or 90 days after a
31 complete application has been filed, whichever is later.
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1 (6) Interest shall be paid until a date determined by
2 the department which shall be no more than 7 days prior to the
3 date of the issuance of the refund warrant by the Comptroller.
4 (7) No interest shall be paid if the department has
5 reasonable cause to believe that it could not recover the
6 amount of any refund paid in error from the person claiming
7 the refund, unless such person files a cash bond or a surety
8 bond in the amount of the refund claimed or such person makes
9 other security arrangements satisfactory to the department.
10 The cash or surety bond shall be endorsed by a surety company
11 authorized to do business in this state and shall be
12 conditioned upon payment in full of the amount of any refund
13 paid in error for any reason. The department shall provide a
14 written notice of its determination that a cash or surety bond
15 is required, in which event interest shall not commence until
16 the person filing the claim satisfies this requirement.
17 (8) The rate of interest shall be 1 percentage point
18 lower than the adjusted rate established pursuant to s.
19 213.235, except that the annual rate of interest shall never
20 be greater than 11 percent. This annual rate of interest
21 shall be applied to all refunds of taxes administered by the
22 department except for corporate income taxes and emergency
23 excise taxes governed by ss. 220.721 and 220.723.
24 (9) The provisions of this section are not applicable
25 to refunds where the amount refunded is based on a statutory
26 exemption given by way of refund.
27 (10) The interest provisions of this section shall be
28 tolled, if at the request of the taxpayer, the Department
29 holds an application for refund pending the outcome of a court
30 proceeding challenging the validity of a previously denied
31 refund claim or assessment.
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1 Section 19. Effective July 1, 1997, subsection (1) of
2 section 213.34, Florida Statutes, is amended to read:
3 213.34 Authority to audit.--
4 (1) The Department of Revenue shall have the authority
5 to audit and examine the accounts, books, or records of all
6 persons who are subject to a revenue law made applicable to
7 this chapter, or otherwise placed under the control and
8 administration of the department, for the purpose of
9 ascertaining the correctness of any return which has been
10 filed or payment which has been made, or for the purpose of
11 making a return where none has been made. No part of the
12 compensation of any employee or agent of the state performing
13 a tax audit shall be based on the amount of tax assessed or
14 collected as a result of the audit.
15 Section 20. Effective January 1, 1999, and applicable
16 to taxes paid on or after September 30, 1994, subsection (2)
17 of section 215.26, Florida Statutes, 1996 Supplement, is
18 amended to read:
19 215.26 Repayment of funds paid into State Treasury
20 through error.--
21 (2) Application for refunds as provided by this
22 section must be filed with the Comptroller, except as
23 otherwise provided in this subsection, within 3 years after
24 the right to the refund has accrued or else the right is
25 barred. Except as provided in chapter 198 and s. 220.23, an
26 application for a refund of a tax enumerated in s. 72.011,
27 which tax was paid after September 30, 1994, must be filed
28 with the Comptroller within 5 years after the date the tax is
29 paid. The Comptroller may delegate the authority to accept an
30 application for refund to any state agency, or the judicial
31 branch, vested by law with the responsibility for the
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1 collection of any tax, license, or account due. The
2 application for refund must be on a form approved by the
3 Comptroller and must be supplemented with additional proof the
4 Comptroller deems necessary to establish the claim; provided,
5 the claim is not otherwise barred under the laws of this
6 state. Upon receipt of an application for refund, the judicial
7 branch or the state agency to which the funds were paid shall
8 make a determination of the amount due. If an application for
9 refund is denied, in whole or in part, the judicial branch or
10 such state agency shall notify the applicant stating the
11 reasons therefor. Upon approval of an application for refund,
12 the judicial branch or such state agency shall furnish the
13 Comptroller with a properly executed voucher authorizing
14 payment.
15 Section 21. Subsection (2) of section 198.18, Florida
16 Statutes, is amended to read:
17 198.18 Failure to pay tax; penalties; delinquent or
18 deficient taxes, interest.--
19 (2) Any deficiency in tax or any tax payment not
20 received by the department on or before the due date as
21 provided in s. 198.15, in addition to any other penalties,
22 shall bear interest at the adjusted rate established pursuant
23 to s. 213.235 of 1 percent per month of the amount due from
24 the due date until paid. The department may settle or
25 compromise such interest pursuant to s. 213.21.
26 Section 22. Subsection (2) of section 199.282, Florida
27 Statutes, is amended to read:
28 199.282 Penalties for violation of this chapter.--
29 (2) If any annual or nonrecurring tax is not paid by
30 the statutory due date, then despite any extension granted
31 under s. 199.232(6), interest shall run on the unpaid balance
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1 from such due date until paid at the adjusted rate established
2 pursuant to s. 213.235 of 12 percent per year.
3 Section 23. Paragraph (c) of subsection (2) of section
4 201.17, Florida Statutes, 1996 Supplement, as amended by
5 chapter 96-395, Laws of Florida, is amended to read:
6 201.17 Penalties for failure to pay tax required.--
7 (2) If any document, instrument, or paper upon which
8 the tax under this chapter is imposed, upon audit or at time
9 of recordation, does not show the proper amount of tax paid,
10 or if the tax imposed by this chapter on any document,
11 instrument, or paper is not timely reported and paid as
12 required by s. 201.133, the person or persons liable for the
13 tax upon the document, instrument, or paper shall be subject
14 to:
15 (c) Payment of interest to the Department of Revenue,
16 accruing from the date the tax is due until paid, at the
17 adjusted rate established pursuant to s. 213.235 of 1 percent
18 per month, based on the amount of tax not paid.
19 Section 24. Section 203.06, Florida Statutes, is
20 amended to read:
21 203.06 Interest on delinquent payments.--Any payments
22 as imposed in this chapter, if not received by the Department
23 of Revenue on or before the due date as provided by law, shall
24 include, as an additional part of such amount due, interest at
25 the adjusted rate established pursuant to s. 213.235 of 1
26 percent per month, accruing from the date due until paid.
27 Section 25. For the purpose of incorporating the
28 amendment to section 203.06, Florida Statutes, in a reference
29 thereto, section 203.62, Florida Statutes, is reenacted to
30 read:
31
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1 203.62 Applicability of specified sections of part
2 I.--The provisions of ss. 203.01, 203.012, 203.013, 203.02,
3 203.03, 203.04, 203.06, and 203.07 shall be applicable to the
4 levy and collection of taxes imposed pursuant to this part as
5 if fully set out in this part.
6 Section 26. Subsection (2) of section 206.44, Florida
7 Statutes, is amended to read:
8 206.44 Penalty and interest for failure to report on
9 time; penalty and interest on tax deficiencies.--
10 (2) Any payment that is not received by the department
11 on or before the due date as provided in s. 206.43 shall bear
12 interest at the adjusted rate established pursuant to s.
13 213.235 of 1 percent per month, from the date due until paid.
14 Interest on any delinquent tax shall be calculated beginning
15 on the 21st day of the month for which the tax is due, except
16 as otherwise provided in this part.
17 Section 27. For the purpose of incorporating the
18 amendment to section 206.44, Florida Statutes, in a reference
19 thereto, subsection (1) of section 206.06, Florida Statutes,
20 as amended by chapter 95-417, Laws of Florida, is reenacted to
21 read:
22 206.06 Estimate of amount of fuel taxes due and
23 unpaid.--
24 (1) Whenever any terminal supplier, importer,
25 exporter, or wholesaler neglects or refuses to make and file
26 any report for any calendar month, as required by the fuel tax
27 laws of this state, or files an incorrect or fraudulent
28 report, or is in default in the payment of any fuel taxes and
29 penalties thereon payable under the laws of this state, the
30 department shall, from any information it may be able to
31 obtain from its office or elsewhere, estimate the number of
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HB 2109, First Engrossed
1 gallons of motor fuel with respect to which the terminal
2 supplier, importer, exporter, or wholesaler has become liable
3 for taxes under the fuel tax laws of this state and the amount
4 of taxes due and payable thereon, to which sum shall be added
5 a penalty and interest as provided in s. 206.44.
6 Section 28. For the purpose of incorporating the
7 amendment to section 206.44, Florida Statutes, in a reference
8 thereto, section 206.94, Florida Statutes, as amended by
9 chapter 95-417, Laws of Florida, is reenacted to read:
10 206.94 Department may estimate diesel fuels sold or
11 used.--When any person neglects or refuses to file any report
12 as required by s. 206.91 or files an incorrect or fraudulent
13 report, the department shall determine, after investigation,
14 the number of gallons of diesel fuels with respect to which
15 the person has incurred liability under this part for any
16 particular period and fix the amount of taxes due and payable
17 thereon, to which taxes due shall be added the penalties and
18 interest imposed by s. 206.44 as a penalty for the default of
19 such person. The department may settle or compromise such
20 penalties pursuant to s. 213.21.
21 Section 29. For the purpose of incorporating the
22 amendment to section 206.44, Florida Statutes, in a reference
23 thereto, section 206.97, Florida Statutes, as amended by
24 chapter 95-417, Laws of Florida, is reenacted to read:
25 206.97 Applicability of specified sections of part
26 I.--The provisions of ss. 206.01, 206.02, 206.026, 206.027,
27 206.028, 206.04, 206.051, 206.052, 206.054, 206.055, 206.07,
28 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12,
29 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18,
30 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22,
31 206.23, 206.24, 206.25, 206.27, 206.28, 206.41, 206.415,
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1 206.416, 206.43, 206.435, 206.44, 206.48, 206.49, 206.56,
2 206.59, 206.606, 206.608, 206.61, and 206.62 of part I of this
3 chapter shall, as far as lawful or practicable, be applicable
4 to the tax herein levied and imposed and to the collection
5 thereof as if fully set out in this part. However, no
6 provision of any such section shall apply if it conflicts with
7 any provision of this part.
8 Section 30. For the purpose of incorporating the
9 amendment to section 206.44, Florida Statutes, in a reference
10 thereto, subsection (3) of section 206.9915, Florida Statutes,
11 1996 Supplement, is reenacted to read:
12 206.9915 Legislative intent and general provisions.--
13 (3) The provisions of ss. 206.01, 206.02, 206.026,
14 206.027, 206.028, 206.051, 206.052, 206.054, 206.055, 206.06,
15 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 206.11,
16 206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 206.175,
17 206.18, 206.199, 206.20, 206.204, 206.205, 206.21, 206.215,
18 206.22, 206.24, 206.27, 206.28, 206.416, 206.42, 206.425,
19 206.44, 206.48, 206.49, 206.56, 206.59, 206.86, 206.87,
20 206.872, 206.873, 206.8735, 206.874, 206.8741, 206.8745,
21 206.94, 206.945, and 206.9815 shall, as far as lawful or
22 practicable, be applicable to the levy and collection of taxes
23 imposed pursuant to this part as if fully set out in this part
24 and made expressly applicable to the taxes imposed herein.
25 Section 31. For the purpose of incorporating the
26 amendment to section 206.44, Florida Statutes, in a reference
27 thereto, paragraph (a) of subsection (2) of section 336.021,
28 Florida Statutes, 1996 Supplement, is reenacted to read:
29 336.021 County transportation system; levy of
30 ninth-cent fuel tax on motor fuel and diesel fuel.--
31
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1 (2)(a) The tax collected by the department pursuant to
2 subsection (1) shall be transferred to the Ninth-cent Fuel Tax
3 Trust Fund, which fund is created for distribution to the
4 counties pursuant to paragraph (1)(d). The department has the
5 authority to prescribe and publish all forms upon which
6 reports shall be made to it and other forms and records deemed
7 to be necessary for proper administration and collection of
8 the tax levied by any county and shall adopt rules necessary
9 to enforce this section, which rules shall have the full force
10 and effect of law. The provisions of ss. 206.026, 206.027,
11 206.028, 206.051, 206.052, 206.054, 206.055, 206.06, 206.07,
12 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12,
13 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18,
14 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22,
15 206.24, 206.27, 206.28, 206.41, 206.416, 206.44, 206.48,
16 206.49, 206.56, 206.59, 206.626, 206.87, 206.872, 206.873,
17 206.8735, 206.874, 206.8741, 206.8745, 206.94, and 206.945
18 shall, as far as practicable, be applicable to the levy and
19 collection of the tax imposed pursuant to this section as if
20 fully set out in this section.
21 Section 32. Effective July 1, 1999, for the purpose of
22 incorporating the amendment to section 206.44, Florida
23 Statutes, in a reference thereto, paragraph (a) of subsection
24 (2) of section 336.021, Florida Statutes, 1996 Supplement, as
25 amended by section 17 of chapter 96-397, Laws of Florida, is
26 reenacted to read:
27 336.021 County transportation system; levy of
28 ninth-cent fuel tax on motor fuel and diesel fuel.--
29 (2)(a) The tax collected by the department pursuant to
30 subsection (1) shall be transferred to the Ninth-cent Fuel Tax
31 Trust Fund, which fund is created for distribution to the
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1 counties pursuant to paragraph (1)(d). The department shall
2 deduct the administrative costs incurred by it in collecting,
3 administering, enforcing, and distributing back to the
4 counties the tax, which administrative costs may not exceed 2
5 percent of collections authorized by this section. The total
6 administrative cost shall be prorated among those counties
7 levying the tax according to the following formula, which
8 shall be revised on July 1 of each year: Two-thirds of the
9 amount deducted shall be based on the county's proportional
10 share of the number of taxpayers who are registered and
11 required to file tax returns on June 30th of the preceding
12 state fiscal year, and one-third of the amount deducted shall
13 be based on the county's share of the total amount of the tax
14 collected during the preceding state fiscal year. The
15 department has the authority to prescribe and publish all
16 forms upon which reports shall be made to it and other forms
17 and records deemed to be necessary for proper administration
18 and collection of the tax levied by any county and shall adopt
19 rules necessary to enforce this section, which rules shall
20 have the full force and effect of law. The provisions of ss.
21 206.026, 206.027, 206.028, 206.051, 206.052, 206.054, 206.055,
22 206.06, 206.07, 206.075, 206.08, 206.09, 206.095, 206.10,
23 206.11, 206.12, 206.13, 206.14, 206.15, 206.16, 206.17,
24 206.175, 206.18, 206.199, 206.20, 206.204, 206.205, 206.21,
25 206.215, 206.22, 206.24, 206.27, 206.28, 206.41, 206.416,
26 206.44, 206.45, 206.48, 206.49, 206.56, 206.59, 206.626,
27 206.87, 206.872, 206.873, 206.8735, 206.874, 206.8741,
28 206.8745, 206.94, and 206.945 shall, as far as practicable, be
29 applicable to the levy and collection of the tax imposed
30 pursuant to this section as if fully set out in this section.
31
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1 Section 33. For the purpose of incorporating the
2 amendment to section 206.44, Florida Statutes, in a reference
3 thereto, paragraph (a) of subsection (2) of section 336.025,
4 Florida Statutes, 1996 Supplement, is reenacted to read:
5 336.025 County transportation system; levy of local
6 option fuel tax on motor fuel and diesel fuel.--
7 (2)(a) The tax levied pursuant to paragraph (1)(a)
8 shall be collected and remitted in the same manner provided by
9 ss. 206.41(1)(e) and 206.87(1)(c). The tax levied pursuant to
10 paragraph (1)(b) shall be collected and remitted in the same
11 manner provided by s. 206.41(1)(e). The taxes remitted
12 pursuant to this section shall be transferred to the Local
13 Option Fuel Tax Trust Fund, which fund is created for
14 distribution to the county and eligible municipal governments
15 within the county in which the tax was collected and which
16 fund is subject to the service charge imposed in chapter 215.
17 The tax shall be distributed monthly by the department in the
18 same manner provided by s. 336.021(1)(c) and (d). The
19 department has the authority to prescribe and publish all
20 forms upon which reports shall be made to it and other forms
21 and records deemed to be necessary for proper administration
22 and collection of the taxes levied by any county and shall
23 promulgate such rules as may be necessary for the enforcement
24 of this section, which rules shall have the full force and
25 effect of law. The provisions of ss. 206.026, 206.027,
26 206.028, 206.051, 206.052, 206.054, 206.055, 206.06, 206.07,
27 206.075, 206.08, 206.09, 206.095, 206.10, 206.11, 206.12,
28 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18,
29 206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22,
30 206.24, 206.27, 206.28, 206.41, 206.416, 206.44, 206.48,
31 206.49, 206.56, 206.59, 206.626, 206.87, 206.872, 206.873,
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1 206.8735, 206.874, 206.8741, 206.94, and 206.945 shall, as far
2 as practicable, be applicable to the levy and collection of
3 taxes imposed pursuant to this section as if fully set out in
4 this section.
5 Section 34. Effective July 1, 1999, for the purpose of
6 incorporating the amendment to section 206.44, Florida
7 Statutes, in a reference thereto, paragraph (a) of subsection
8 (2) of section 336.025, Florida Statutes, 1996 Supplement, is
9 reenacted to read:
10 336.025 County transportation system; levy of local
11 option fuel tax on motor fuel and diesel fuel.--
12 (2)(a) The tax levied pursuant to paragraph (1)(a)
13 shall be collected and remitted in the same manner provided by
14 ss. 206.41(1)(e) and 206.87(1)(c). The tax levied pursuant to
15 paragraph (1)(b) shall be collected and remitted in the same
16 manner provided by s. 206.41(1)(e). The taxes remitted
17 pursuant to this section shall be transferred to the Local
18 Option Fuel Tax Trust Fund, which fund is created for
19 distribution to the county and eligible municipal governments
20 within the county in which the tax was collected and which
21 fund is subject to the service charge imposed in chapter 215.
22 The tax shall be distributed monthly by the department in the
23 same manner provided by s. 336.021(1)(c) and (d). The
24 department shall deduct the administrative costs incurred by
25 it in collecting, administering, enforcing, and distributing
26 back to the counties the tax, which administrative costs may
27 not exceed 2 percent of collections authorized by this
28 section. The total administrative costs shall be prorated
29 among those counties levying the tax according to the
30 following formula, which shall be revised on July 1 of each
31 year: Two-thirds of the amount deducted shall be based on the
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1 county's proportional share of the number of taxpayers who are
2 registered and required to file tax returns on June 30 of the
3 preceding state fiscal year, and one-third of the amount
4 deducted shall be based on the county's share of the total
5 amount of the tax collected during the preceding state fiscal
6 year. The department has the authority to prescribe and
7 publish all forms upon which reports shall be made to it and
8 other forms and records deemed to be necessary for proper
9 administration and collection of the taxes levied by any
10 county and shall promulgate such rules as may be necessary for
11 the enforcement of this section, which rules shall have the
12 full force and effect of law. The provisions of ss. 206.026,
13 206.027, 206.028, 206.051, 206.052, 206.054, 206.055, 206.06,
14 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 206.11,
15 206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 206.175,
16 206.18, 206.199, 206.20, 206.204, 206.205, 206.21, 206.215,
17 206.22, 206.24, 206.27, 206.28, 206.41, 206.416, 206.44,
18 206.45, 206.48, 206.49, 206.56, 206.59, 206.626, 206.87,
19 206.872, 206.873, 206.8735, 206.874, 206.8741, 206.94, and
20 206.945 shall, as far as practicable, be applicable to the
21 levy and collection of taxes imposed pursuant to this section
22 as if fully set out in this section.
23 Section 35. Subsection (2) of section 207.007, Florida
24 Statutes, is amended to read:
25 207.007 Offenses; penalties and interest.--
26 (2) In addition to any other penalties, any delinquent
27 tax shall bear interest at the adjusted rate established
28 pursuant to s. 213.235 of 1 percent per month, or fraction
29 thereof, calculated from the date the tax was due. If the
30 department enters into a cooperative reciprocal agreement
31 under the provisions of s. 207.0281, the department shall
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1 collect and distribute all interest due to other jurisdictions
2 at the same rate as if such interest were due to the state.
3 Section 36. Subsection (1) of section 211.076, Florida
4 Statutes, as amended to read:
5 211.076 Interest and penalties; failure to pay tax or
6 file return; estimated tax underpayments.--
7 (1) If any part of the tax imposed by this part is not
8 paid on or before the due date, interest shall be added to the
9 amount due at the adjusted rate established pursuant to s.
10 213.235 of 12 percent per year from the due date until the
11 date of payment.
12 Section 37. Paragraph (d) of subsection (2) of section
13 211.33, Florida Statutes, 1996 Supplement, is amended to read:
14 211.33 Administration of the tax; returns; delinquency
15 penalties and interest; departmental inspections of records.--
16 (2)
17 (d) In addition to the delinquency penalty provided in
18 paragraph (c), the department shall assess interest on the
19 unpaid balance of any such tax which becomes delinquent,
20 without regard to any extensions, at the adjusted rate
21 established pursuant to s. 213.235 of 12 percent per year,
22 from April 1 to the date of payment. Interest prescribed by
23 this paragraph shall be deemed assessed upon the assessment of
24 the tax and shall be collected and paid in the same manner.
25 Section 38. Subsection (3) of section 212.12, Florida
26 Statutes, 1996 Supplement, is amended to read:
27 212.12 Dealer's credit for collecting tax; penalties
28 for noncompliance; powers of Department of Revenue in dealing
29 with delinquents; brackets applicable to taxable transactions;
30 records required.--
31
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1 (3) When any dealer, or other person charged herein,
2 fails to remit the tax, or any portion thereof, on or before
3 the day when such tax is required by law to be paid, there
4 shall be added to the amount due interest on at the rate of 1
5 percent per month of the amount due from the date due until
6 paid at the adjusted rate established pursuant to s. 213.235.
7 Interest on the delinquent tax shall be calculated beginning
8 on the 21st day of the month following the month for which the
9 tax is due, except as otherwise provided in this part.
10 Section 39. For the purpose of incorporating the
11 amendment to section 212.12, Florida Statutes, 1996
12 Supplement, in a reference thereto, paragraph (e) of
13 subsection (6) of section 193.501, Florida Statutes, is
14 reenacted to read:
15 193.501 Assessment of lands subject to a conservation
16 easement, environmentally endangered lands, or lands used for
17 outdoor recreational or park purposes when land development
18 rights have been conveyed or conservation restrictions have
19 been covenanted.--
20 (6) The following terms whenever used as referred to
21 in this section have the following meanings unless a different
22 meaning is clearly indicated by the context:
23 (e) "Deferred tax liability" means an amount equal to
24 the difference between the total amount of taxes that would
25 have been due in March in each of the previous years in which
26 the conveyance or covenant was in effect if the property had
27 been assessed under the provisions of s. 193.011 and the total
28 amount of taxes actually paid in those years when the property
29 was assessed under the provisions of this section, plus
30 interest on that difference computed as provided in s.
31 212.12(3).
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1 Section 40. For the purpose of incorporating the
2 amendment to section 212.12, Florida Statutes, 1996
3 Supplement, in a reference thereto, subsection (8) of section
4 193.505, Florida Statutes, is reenacted to read:
5 193.505 Assessment of historically significant
6 property when development rights have been conveyed or
7 historic preservation restrictions have been covenanted.--
8 (8) For the purposes of this section, the term
9 "deferred tax liability" means an amount equal to the
10 difference between the total amount of taxes which would have
11 been due in March in each of the previous years in which a
12 covenant executed and accepted pursuant to this section was in
13 effect if the property had been assessed under the provisions
14 of s. 193.011 irrespective of any negative impact on fair
15 market value that restrictions imposed pursuant to this
16 section may have caused and the total amount of taxes actually
17 paid in those years, plus interest on that difference computed
18 as provided in s. 212.12(3).
19 Section 41. For the purpose of incorporating the
20 amendment to section 212.12, Florida Statutes, 1996
21 Supplement, in a reference thereto, subsection (7) of section
22 196.1997, Florida Statutes, is reenacted to read:
23 196.1997 Ad valorem tax exemptions for historic
24 properties.--
25 (7) To qualify for an exemption, the property owner
26 must enter into a covenant or agreement with the governing
27 body for the term for which the exemption is granted. The
28 form of the covenant or agreement must be established by the
29 Department of State and must require that the character of the
30 property, and the qualifying improvements to the property, be
31 maintained during the period that the exemption is granted.
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HB 2109, First Engrossed
1 The covenant or agreement shall be binding on the current
2 property owner, transferees, and their heirs, successors, or
3 assigns. Violation of the covenant or agreement results in
4 the property owner being subject to the payment of the
5 differences between the total amount of taxes which would have
6 been due in March in each of the previous years in which the
7 covenant or agreement was in effect had the property not
8 received the exemption and the total amount of taxes actually
9 paid in those years, plus interest on the difference
10 calculated as provided in s. 212.12(3).
11 Section 42. Section 220.807, Florida Statutes, is
12 amended to read:
13 220.807 Determination of Rate of interest.--
14 (1) The annual rate of interest applicable to this
15 chapter shall be the adjusted rate established pursuant to s.
16 213.235 by the Executive Director of the Department of Revenue
17 under subsection (2).
18 (2) If the adjusted prime rate charged by banks,
19 rounded to the nearest full percent, during either:
20 (a) The 6-month period ending on September 30 of any
21 calendar year; or
22 (b) The 6-month period ending on March 31 of any
23 calendar year,
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25 differs from the interest rate in effect on either such date,
26 the Executive Director of the Department of Revenue shall,
27 within 20 days, establish an adjusted rate of interest equal
28 to such adjusted prime rate.
29 (3) An adjusted rate of interest established under
30 this section shall become effective:
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HB 2109, First Engrossed
1 (a) On January 1 of the succeeding year, if based upon
2 the adjusted prime rate for the 6-month period ending on
3 September 30; or
4 (b) On July 1 of the same calendar year, if based upon
5 the adjusted prime rate for the 6-month period ending on March
6 31.
7 (4) For the purposes of this section, "adjusted prime
8 rate charged by banks" means the average predominant prime
9 rate quoted by commercial banks to large business, as
10 determined by the Board of Governors of the Federal Reserve
11 System.
12 (5) Once established, an adjusted rate of interest
13 shall remain in effect until an adjustment is made under
14 subsection (2).
15 Section 43. Paragraph (c) of subsection (2) of section
16 624.5092, Florida Statutes, is amended to read:
17 624.5092 Administration of taxes; payments.--
18 (2)
19 (c) When any taxpayer fails to pay any amount due
20 under this section, or any portion thereof, on or before the
21 day when such tax or installment of tax is required by law to
22 be paid, there shall be added to the amount due interest at
23 the adjusted rate established pursuant to s. 213.235 of 12
24 percent per year from the date due until paid.
25 Section 44. (1) The Department of Revenue shall
26 examine the impact of this act and, by January 1, 1998, the
27 executive director of the Department of Revenue shall submit
28 to the Speaker of the House of Representatives, the President
29 of the Senate, and the chairs of the finance and taxation
30 committees of the Legislature a report containing
31 recommendations for the effective and efficient implementation
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HB 2109, First Engrossed
1 of this act and methods to minimize its fiscal impact. These
2 may include ways to increase voluntary compliance with the
3 state's tax laws.
4 (2) This section shall take effect July 1, 1997.
5 Section 45. Except as otherwise provided herein, this
6 act shall take effect July 1, 1997.
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