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House Bill 3375




    Florida House of Representatives - 1998                HB 3375

        By Representative Tamargo






  1                      A bill to be entitled

  2         An act relating to the tax on sales, use, and

  3         other transactions; amending s. 212.031, F.S.;

  4         excluding certain pass-through charges on

  5         commercial real estate leases from such taxes;

  6         providing an effective date.

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  8  Be It Enacted by the Legislature of the State of Florida:

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10         Section 1.  Paragraph (c) of subsection (1) of section

11  212.031, Florida Statutes, is amended to read:

12         212.031  Lease or rental of or license in real

13  property.--

14         (1)

15         (c)  For the exercise of such privilege, as tax is

16  levied in an amount equal to 6 percent of and on the total

17  rent or license fee charged for such real property by the

18  person charging or collecting the rental or license fee. The

19  total rent or license fee charged for such real property shall

20  include payments for the granting of a privilege to use or

21  occupy real property for any purpose and shall include base

22  rent, percentage rents, or similar charges. Such charges shall

23  be included in the total rent or license fee subject to tax

24  under this section whether or not they can be attributed to

25  the ability of the lessor's or licensor's property as used or

26  operated to attract customers. For purposes of this paragraph,

27  the term "total rent or license fee" does not include ad

28  valorem taxes, maintenance charges, or insurance premiums paid

29  for the benefit and protection of the landlord when the

30  proportionate share of each of those items is separately

31  billed on an invoice by the landlord. Payments for

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1998                HB 3375

    591-002-98






  1  intrinsically valuable personal property such as franchises,

  2  trademarks, service marks, logos, or patents are not subject

  3  to tax under this section.  In the case of a contractual

  4  arrangement that provides for both payments taxable as total

  5  rent or license fee and payments not subject to tax, the tax

  6  shall be based on a reasonable allocation of such payments and

  7  shall not apply to that portion which is for the nontaxable

  8  payments.

  9         Section 2.  This act shall take effect July 1, 1998.

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12                          SENATE SUMMARY

13    Provides that the total rent and license fee for a
      commercial real estate lease subject to the sales tax
14    does not include a proportionate share of pass-through
      charges comprised of ad valorem taxes, maintenance
15    charges, and certain insurance premiums.

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