Senate Bill 1868
CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2000                                  SB 1868
    By Senators Thomas, Bronson, Childers, Rossin, Saunders,
    Grant, Sebesta, Brown-Waite, Casas, Diaz-Balart, Cowin,
    Mitchell and Dawson
    3-1093-00
  1                      A bill to be entitled
  2         An act relating to tax on sales, use, and other
  3         transactions; amending s. 212.02, F.S.;
  4         defining "agricultural production"; amending s.
  5         212.08, F.S.; revising application of the
  6         partial exemption for self-propelled,
  7         power-drawn, or power-driven farm equipment
  8         used exclusively on a farm or in a forest in
  9         specified activities and including rental or
10         lease of such equipment in such exemption;
11         reducing the rate of tax on such equipment over
12         a specified period and exempting such equipment
13         beginning January 1, 2003; requiring that the
14         purchaser, renter, or lessee sign a certificate
15         regarding the use of such equipment; specifying
16         effect of possession of such certificate by a
17         seller or other dealer; amending s. 212.12,
18         F.S., relating to promulgation of tax brackets
19         by the Department of Revenue, to conform;
20         providing an effective date.
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22  Be It Enacted by the Legislature of the State of Florida:
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24         Section 1.  Subsection (34) is added to section 212.02,
25  Florida Statutes, to read:
26         212.02  Definitions.--The following terms and phrases
27  when used in this chapter have the meanings ascribed to them
28  in this section, except where the context clearly indicates a
29  different meaning:
30         (34)  "Agricultural production" means the production of
31  plants and animals useful to humans, including the
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    Florida Senate - 2000                                  SB 1868
    3-1093-00
  1  preparation, planting, cultivating, or harvesting of these
  2  products or any other practices necessary to accomplish
  3  production through the harvest phase, and includes
  4  aquaculture, horticulture, floriculture, viticulture,
  5  forestry, dairy, livestock, poultry, bees, and any and all
  6  forms of farm products and farm production.
  7         Section 2.  Subsection (3) of section 212.08, Florida
  8  Statutes, is amended to read:
  9         212.08  Sales, rental, use, consumption, distribution,
10  and storage tax; specified exemptions.--The sale at retail,
11  the rental, the use, the consumption, the distribution, and
12  the storage to be used or consumed in this state of the
13  following are hereby specifically exempt from the tax imposed
14  by this chapter.
15         (3)  EXEMPTIONS, PARTIAL; CERTAIN FARM
16  EQUIPMENT.--Until December 31, 2000, there shall be taxable at
17  the rate of 3 percent the sale, rental, lease, use,
18  consumption, or storage for use in this state of
19  self-propelled, power-drawn, or power-driven farm equipment
20  used exclusively on a farm or in a forest in the agricultural
21  production of plowing, planting, cultivating, or harvesting
22  crops or products as produced by those agricultural industries
23  included in s. 570.02(1), or for fire prevention and
24  suppression work with respect to such crops or products.
25  Harvesting may not be construed to include processing
26  activities. This exemption is not forfeited by moving farm
27  equipment between farms or forests. Beginning January 1, 2001,
28  the tax rate applicable to such equipment shall be 2 percent.
29  Beginning January 1, 2002, the tax rate applicable to such
30  equipment shall be 1 percent. Beginning January 1, 2003, and
31  thereafter, such equipment shall be exempt from the tax
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    Florida Senate - 2000                                  SB 1868
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  1  imposed by this chapter. However, this exemption shall not be
  2  allowed unless the purchaser, renter, or lessee signs a
  3  certificate stating that the farm equipment is to be used
  4  exclusively on a farm or in a forest for agricultural
  5  production or for fire prevention and suppression, as required
  6  by this subsection. Possession by a seller, lessor, or other
  7  dealer of a written certification by the purchaser, renter, or
  8  lessee certifying the purchaser's, renter's, or lessee's
  9  entitlement to an exemption permitted by this subsection
10  relieves the seller from the responsibility of collecting the
11  tax on the nontaxable amounts, and the department shall look
12  solely to the purchaser for recovery of such tax if it
13  determines that the purchaser was not entitled to the
14  exemption. The rental of self-propelled, power-drawn, or
15  power-driven farm equipment shall be taxed at the rate of 3
16  percent.
17         Section 3.  Subsection (11) of section 212.12, Florida
18  Statutes, is amended to read:
19         212.12  Dealer's credit for collecting tax; penalties
20  for noncompliance; powers of Department of Revenue in dealing
21  with delinquents; brackets applicable to taxable transactions;
22  records required.--
23         (11)  The department is authorized to provide by rule
24  the tax amounts and brackets applicable to all taxable
25  transactions that occur in counties that have a surtax at a
26  rate other than 1 percent which transactions would otherwise
27  have been transactions taxable at the rate of 6 percent.
28  Likewise, the department is authorized to promulgate by rule
29  the tax amounts and brackets applicable to transactions
30  taxable at 3, 2, or 1 percent pursuant to s. 212.08(3),
31  transactions taxable at 7 percent pursuant to s. 212.05(1)(e),
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    Florida Senate - 2000                                  SB 1868
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  1  and on transactions which would otherwise have been so taxable
  2  in counties which have adopted a discretionary sales surtax.
  3         Section 4.  This act shall take effect January 1, 2001.
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  6                          HOUSE SUMMARY
  7
      Revises application of the partial sales tax exemption
  8    for self-propelled, power-drawn, or power-driven farm
      equipment used exclusively on a farm or in a forest in
  9    specified activities and includes rental or lease of such
      equipment in such exemption. Reduces the rate of tax on
10    such equipment over a specified period and exempts such
      equipment beginning January 1, 2003. Requires that the
11    purchaser, renter, or lessee sign a certificate regarding
      the use of such equipment, and specifies effect of
12    possession of such certificate by a seller or other
      dealer.
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