Senate Bill sb1978

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    Florida Senate - 2001                                  SB 1978

    By Senator Carlton





    24-631A-01

  1                      A bill to be entitled

  2         An act relating to tax administration;

  3         repealing s. 212.084(6), F.S.; eliminating

  4         provisions for temporary exemption

  5         certificates; repealing s. 212.08(7)(ccc),

  6         F.S.; eliminating the specific sales tax

  7         exemption for organizations providing crime

  8         prevention, drunk-driving prevention, and

  9         juvenile-delinquency-prevention services;

10         amending s. 212.08, F.S.; providing that a

11         qualifying entity is entitled to a refund for

12         taxes paid on items purchased by the entity

13         prior to receiving a consumer certificate of

14         exemption; providing for retroactive

15         application; reinstating retroactively the

16         sales tax exemption for parent-teacher

17         organizations and parent-teacher associations;

18         eliminating obsolete provisions; requiring a

19         purchaser to file an affidavit stating the

20         exempt nature of a purchase with the selling

21         vendor instead of the Department of Revenue;

22         providing for retroactive application;

23         replacing the definition of the term "section

24         38 property" with an express definition of the

25         terms "industrial machinery and equipment" and

26         "motion picture and video equipment"; imposing

27         certain requirements, for purposes of taxation,

28         on the removal of a motor vehicle from this

29         state; providing residency requirements of

30         corporate officers, corporate stockholders, and

31         partners in a partnership relating to the

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  1         taxable status of sales of motor vehicles;

  2         amending s. 212.06, F.S.; clarifying the

  3         definition of the term "fixtures"; eliminating

  4         reference to the term "trade fixture"; amending

  5         s. 212.08, F.S.; replacing the Interstate

  6         Commerce Commission with the Surface

  7         Transportation Board as the entity that

  8         licenses certain railroads as common carriers;

  9         providing that, for a vessel, railroad, or

10         motor carrier engaged in interstate or foreign

11         commerce, sales tax applies to taxable

12         purchases in this state and applies even if the

13         vessel, railroad, or motor carrier has operated

14         for less than a fiscal year; amending s.

15         220.22, F.S.; eliminating the initial year's

16         information return for certain corporations;

17         repealing s. 624.509(10), F.S., which provides

18         for an exemption from the insurance premium tax

19         for insurers who write monoline flood insurance

20         policies; amending s. 213.285, F.S.; delaying

21         the future repeal of the certified audit

22         project; amending s. 213.30, F.S.; clarifying

23         that the rewards program is the only available

24         means of obtaining compensation for information

25         regarding another person's failure to comply

26         with the state's tax laws; amending s. 11, ch.

27         2000-165, Laws of Florida; clarifying which

28         provisions of ch. 213, F.S., apply to the

29         collection of unemployment contributions;

30         amending s. 45.031, F.S.; requiring the clerk

31         of court to give notice to the Department of

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  1         Revenue if there is a surplus resulting from

  2         the foreclosure of an unemployment compensation

  3         tax lien; amending s. 69.041, F.S.; permitting

  4         the department to participate in the

  5         disbursement of unemployment compensation tax

  6         lien foreclosure funds; amending s. 213.053,

  7         F.S.; providing for confidentiality and

  8         information sharing; abrogating the expiration

  9         of s. 215.20(3), F.S., relating to service

10         charges against certain trust funds,

11         notwithstanding s. 10, ch. 90-110, Laws of

12         Florida; repealing s. 4 of ch. 96-395, Laws of

13         Florida, which provides for the repeal of

14         exemptions provided for certain citizen support

15         organizations and the Florida Folk Festival;

16         providing for retroactive applicability;

17         providing effective dates.

18

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

20

21         Section 1.  Subsection (6) of section 212.084, Florida

22  Statutes, is repealed.

23         Section 2.  Subsection (7) of section 212.08, Florida

24  Statutes, is amended to read:

25         212.08  Sales, rental, use, consumption, distribution,

26  and storage tax; specified exemptions.--The sale at retail,

27  the rental, the use, the consumption, the distribution, and

28  the storage to be used or consumed in this state of the

29  following are hereby specifically exempt from the tax imposed

30  by this chapter.

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  1         (7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to

  2  any entity by this chapter do not inure to any transaction

  3  that is otherwise taxable under this chapter when payment is

  4  made by a representative or employee of the entity by any

  5  means, including, but not limited to, cash, check, or credit

  6  card, even when that representative or employee is

  7  subsequently reimbursed by the entity. In addition, exemptions

  8  provided to any entity by this subsection do not inure to any

  9  transaction that is otherwise taxable under this chapter

10  unless the entity has obtained a sales tax exemption

11  certificate from the department or the entity obtains or

12  provides other documentation as required by the department.

13  Eligible purchases or leases made with such a certificate must

14  be in strict compliance with this subsection and departmental

15  rules, and any person who makes an exempt purchase with a

16  certificate that is not in strict compliance with this

17  subsection and the rules is liable for and must pay the tax.

18  The department may adopt rules to administer this subsection.

19         (a)  Artificial commemorative flowers.--Exempt from the

20  tax imposed by this chapter is the sale of artificial

21  commemorative flowers by bona fide nationally chartered

22  veterans' organizations.

23         (b)  Boiler fuels.--When purchased for use as a

24  combustible fuel, purchases of natural gas, residual oil,

25  recycled oil, waste oil, solid waste material, coal, sulfur,

26  wood, wood residues or wood bark used in an industrial

27  manufacturing, processing, compounding, or production process

28  at a fixed location in this state are exempt from the taxes

29  imposed by this chapter; however, such exemption shall not be

30  allowed unless the purchaser signs a certificate stating that

31  the fuel to be exempted is for the exclusive use designated

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  1  herein. This exemption does not apply to the use of boiler

  2  fuels that are not used in manufacturing, processing,

  3  compounding, or producing items of tangible personal property

  4  for sale, or to the use of boiler fuels used by any firm

  5  subject to regulation by the Division of Hotels and

  6  Restaurants of the Department of Business and Professional

  7  Regulation.

  8         (c)  Crustacea bait.--Also exempt from the tax imposed

  9  by this chapter is the purchase by commercial fishers of bait

10  intended solely for use in the entrapment of Callinectes

11  sapidus and Menippe mercenaria.

12         (d)  Feeds.--Feeds for poultry, ostriches, and

13  livestock, including racehorses and dairy cows, are exempt.

14         (e)  Film rentals.--Film rentals are exempt when an

15  admission is charged for viewing such film, and license fees

16  and direct charges for films, videotapes, and transcriptions

17  used by television or radio stations or networks are exempt.

18         (f)  Flags.--Also exempt are sales of the flag of the

19  United States and the official state flag of Florida.

20         (g)  Florida Retired Educators Association and its

21  local chapters.--Also exempt from payment of the tax imposed

22  by this chapter are purchases of office supplies, equipment,

23  and publications made by the Florida Retired Educators

24  Association and its local chapters.

25         (h)  Guide dogs for the blind.--Also exempt are the

26  sale or rental of guide dogs for the blind, commonly referred

27  to as "seeing-eye dogs," and the sale of food or other items

28  for such guide dogs.

29         1.  The department shall issue a consumer's certificate

30  of exemption to any blind person who holds an identification

31  card as provided for in s. 413.091 and who either owns or

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  1  rents, or contemplates the ownership or rental of, a guide dog

  2  for the blind. The consumer's certificate of exemption shall

  3  be issued without charge and shall be of such size as to be

  4  capable of being carried in a wallet or billfold.

  5         2.  The department shall make such rules concerning

  6  items exempt from tax under the provisions of this paragraph

  7  as may be necessary to provide that any person authorized to

  8  have a consumer's certificate of exemption need only present

  9  such a certificate at the time of paying for exempt goods and

10  shall not be required to pay any tax thereon.

11         (i)  Hospital meals and rooms.--Also exempt from

12  payment of the tax imposed by this chapter on rentals and

13  meals are patients and inmates of any hospital or other

14  physical plant or facility designed and operated primarily for

15  the care of persons who are ill, aged, infirm, mentally or

16  physically incapacitated, or otherwise dependent on special

17  care or attention. Residents of a home for the aged are exempt

18  from payment of taxes on meals provided through the facility.

19  A home for the aged is defined as a facility that is licensed

20  or certified in part or in whole under chapter 400 or chapter

21  651, or that is financed by a mortgage loan made or insured by

22  the United States Department of Housing and Urban Development

23  under s. 202, s. 202 with a s. 8 subsidy, s. 221(d)(3) or (4),

24  s. 232, or s. 236 of the National Housing Act, or other such

25  similar facility designed and operated primarily for the care

26  of the aged.

27         (j)  Household fuels.--Also exempt from payment of the

28  tax imposed by this chapter are sales of utilities to

29  residential households or owners of residential models in this

30  state by utility companies who pay the gross receipts tax

31  imposed under s. 203.01, and sales of fuel to residential

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  1  households or owners of residential models, including oil,

  2  kerosene, liquefied petroleum gas, coal, wood, and other fuel

  3  products used in the household or residential model for the

  4  purposes of heating, cooking, lighting, and refrigeration,

  5  regardless of whether such sales of utilities and fuels are

  6  separately metered and billed direct to the residents or are

  7  metered and billed to the landlord. If any part of the utility

  8  or fuel is used for a nonexempt purpose, the entire sale is

  9  taxable. The landlord shall provide a separate meter for

10  nonexempt utility or fuel consumption.  For the purposes of

11  this paragraph, licensed family day care homes shall also be

12  exempt.

13         (k)  Meals provided by certain nonprofit

14  organizations.--There is exempt from the tax imposed by this

15  chapter the sale of prepared meals by a nonprofit volunteer

16  organization to handicapped, elderly, or indigent persons when

17  such meals are delivered as a charitable function by the

18  organization to such persons at their places of residence.

19         (l)  Organizations providing special educational,

20  cultural, recreational, and social benefits to minors.--Also

21  exempt from the tax imposed by this chapter are sales or

22  leases to and sales of donated property by nonprofit

23  organizations which are incorporated pursuant to chapter 617

24  the primary purpose of which is providing activities that

25  contribute to the development of good character or good

26  sportsmanship, or to the educational or cultural development,

27  of minors.  This exemption is extended only to that level of

28  the organization that has a salaried executive officer or an

29  elected nonsalaried executive officer. For the purpose of this

30  paragraph, the term "donated property" means any property

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  1  transferred to such nonprofit organization for less than 50

  2  percent of its fair market value.

  3         (m)  Religious institutions.--

  4         1.  There are exempt from the tax imposed by this

  5  chapter transactions involving sales or leases directly to

  6  religious institutions when used in carrying on their

  7  customary nonprofit religious activities or sales or leases of

  8  tangible personal property by religious institutions having an

  9  established physical place for worship at which nonprofit

10  religious services and activities are regularly conducted and

11  carried on.

12         2.  As used in this paragraph, the term "religious

13  institutions" means churches, synagogues, and established

14  physical places for worship at which nonprofit religious

15  services and activities are regularly conducted and carried

16  on. The term "religious institutions" includes nonprofit

17  corporations the sole purpose of which is to provide free

18  transportation services to church members, their families, and

19  other church attendees. The term "religious institutions" also

20  includes nonprofit state, nonprofit district, or other

21  nonprofit governing or administrative offices the function of

22  which is to assist or regulate the customary activities of

23  religious institutions. The term "religious institutions" also

24  includes any nonprofit corporation that is qualified as

25  nonprofit under s. 501(c)(3) of the Internal Revenue Code of

26  1986, as amended, and that owns and operates a Florida

27  television station, at least 90 percent of the programming of

28  which station consists of programs of a religious nature and

29  the financial support for which, exclusive of receipts for

30  broadcasting from other nonprofit organizations, is

31  predominantly from contributions from the general public. The

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  1  term "religious institutions" also includes any nonprofit

  2  corporation that is qualified as nonprofit under s. 501(c)(3)

  3  of the Internal Revenue Code of 1986, as amended, the primary

  4  activity of which is making and distributing audio recordings

  5  of religious scriptures and teachings to blind or visually

  6  impaired persons at no charge. The term "religious

  7  institutions" also includes any nonprofit corporation that is

  8  qualified as nonprofit under s. 501(c)(3) of the Internal

  9  Revenue Code of 1986, as amended, the sole or primary function

10  of which is to provide, upon invitation, nonprofit religious

11  services, evangelistic services, religious education,

12  administrative assistance, or missionary assistance for a

13  church, synagogue, or established physical place of worship at

14  which nonprofit religious services and activities are

15  regularly conducted.

16         (n)  Veterans' organizations.--

17         1.  There are exempt from the tax imposed by this

18  chapter transactions involving sales or leases to qualified

19  veterans' organizations and their auxiliaries when used in

20  carrying on their customary veterans' organization activities.

21         2.  As used in this paragraph, the term "veterans'

22  organizations" means nationally chartered or recognized

23  veterans' organizations, including, but not limited to,

24  Florida chapters of the Paralyzed Veterans of America,

25  Catholic War Veterans of the U.S.A., Jewish War Veterans of

26  the U.S.A., and the Disabled American Veterans, Department of

27  Florida, Inc., which hold current exemptions from federal

28  income tax under s. 501(c)(4) or (19) of the Internal Revenue

29  Code of 1986, as amended.

30

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  1         (o)  Schools, colleges, and universities.--Also exempt

  2  from the tax imposed by this chapter are sales or leases to

  3  state tax-supported schools, colleges, or universities.

  4         (p)  Section 501(c)(3) organizations.--Also exempt from

  5  the tax imposed by this chapter are sales or leases to

  6  organizations determined by the Internal Revenue Service to be

  7  currently exempt from federal income tax pursuant to s.

  8  501(c)(3) of the Internal Revenue Code of 1986, as amended,

  9  when such leases or purchases are used in carrying on their

10  customary nonprofit activities. The effective date of the

11  sales tax exemption certificate issued by the department to

12  the organization must be the same as the effective date of the

13  organization's exemption from federal income tax as determined

14  by the Internal Revenue Service or January 1, 2000, whichever

15  is later. Upon receipt of the certificate, as provided in s.

16  215.26, the organization may apply to the department to obtain

17  a refund of taxes paid on eligible purchases or leases after

18  the effective date of the certificate but before receipt of

19  the certificate. The department shall authorize a refund upon

20  an affirmative showing by the taxpayer to the satisfaction of

21  the department that the requirements of s. 213.255 and this

22  paragraph have been met.

23         1.  To satisfy the requirements of s. 213.255(2)(b),

24  the following must be provided with the application:

25         a.  A copy of the exemption certificate issued to the

26  501(c)(3) organization.

27         b.  The sales invoices or other proofs of purchase or

28  lease showing the name and business address of the purchaser,

29  the price or rental payment and the amount of sales tax paid,

30  the date of purchase, and the names and addresses of the sales

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  1  tax dealers or lessors from whom the items or leases were

  2  purchased.

  3         c.  Proof that payment for the exempt items or leases

  4  was made directly from the funds of the 501(c)(3) organization

  5  claiming to be entitled to the refund. This proof must

  6  include, but is not limited to, copies of the front and back

  7  of any canceled check paid to a sales tax dealer or lessor.

  8         2.  Section 212.095 does not apply to any application

  9  for refund which is made under this paragraph.

10         (q)  Resource recovery equipment.--Also exempt is

11  resource recovery equipment which is owned and operated by or

12  on behalf of any county or municipality, certified by the

13  Department of Environmental Protection under the provisions of

14  s. 403.715.

15         (r)  School books and school lunches.--This exemption

16  applies to school books used in regularly prescribed courses

17  of study, and to school lunches served in public, parochial,

18  or nonprofit schools operated for and attended by pupils of

19  grades K through 12.  Yearbooks, magazines, newspapers,

20  directories, bulletins, and similar publications distributed

21  by such educational institutions to their students are also

22  exempt. School books and food sold or served at community

23  colleges and other institutions of higher learning are

24  taxable.

25         (s)  Tasting beverages.--Vinous and alcoholic beverages

26  provided by distributors or vendors for the purpose of "wine

27  tasting" and "spirituous beverage tasting" as contemplated

28  under the provisions of ss. 564.06 and 565.12, respectively,

29  are exempt from the tax imposed by this chapter.

30         (t)  Boats temporarily docked in state.--

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  1         1.  Notwithstanding the provisions of chapter 328,

  2  pertaining to the registration of vessels, a boat upon which

  3  the state sales or use tax has not been paid is exempt from

  4  the use tax under this chapter if it enters and remains in

  5  this state for a period not to exceed a total of 20 days in

  6  any calendar year calculated from the date of first dockage or

  7  slippage at a facility, registered with the department, that

  8  rents dockage or slippage space in this state.  If a boat

  9  brought into this state for use under this paragraph is placed

10  in a facility, registered with the department, for repairs,

11  alterations, refitting, or modifications and such repairs,

12  alterations, refitting, or modifications are supported by

13  written documentation, the 20-day period shall be tolled

14  during the time the boat is physically in the care, custody,

15  and control of the repair facility, including the time spent

16  on sea trials conducted by the facility.  The 20-day time

17  period may be tolled only once within a calendar year when a

18  boat is placed for the first time that year in the physical

19  care, custody, and control of a registered repair facility;

20  however, the owner may request and the department may grant an

21  additional tolling of the 20-day period for purposes of

22  repairs that arise from a written guarantee given by the

23  registered repair facility, which guarantee covers only those

24  repairs or modifications made during the first tolled period.

25  Within 72 hours after the date upon which the registered

26  repair facility took possession of the boat, the facility must

27  have in its possession, on forms prescribed by the department,

28  an affidavit which states that the boat is under its care,

29  custody, and control and that the owner does not use the boat

30  while in the facility.  Upon completion of the repairs,

31  alterations, refitting, or modifications, the registered

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  1  repair facility must, within 72 hours after the date of

  2  release, have in its possession a copy of the release form

  3  which shows the date of release and any other information the

  4  department requires. The repair facility shall maintain a log

  5  that documents all alterations, additions, repairs, and sea

  6  trials during the time the boat is under the care, custody,

  7  and control of the facility.  The affidavit shall be

  8  maintained by the registered repair facility as part of its

  9  records for as long as required by s. 213.35.  When, within 6

10  months after the date of its purchase, a boat is brought into

11  this state under this paragraph, the 6-month period provided

12  in s. 212.05(1)(a)2. or s. 212.06(8) shall be tolled.

13         2.  During the period of repairs, alterations,

14  refitting, or modifications and during the 20-day period

15  referred to in subparagraph 1., the boat may be listed for

16  sale, contracted for sale, or sold exclusively by a broker or

17  dealer registered with the department without incurring a use

18  tax under this chapter; however, the sales tax levied under

19  this chapter applies to such sale.

20         3.  The mere storage of a boat at a registered repair

21  facility does not qualify as a tax-exempt use in this state.

22         4.  As used in this paragraph, "registered repair

23  facility" means:

24         a.  A full-service facility that:

25         (I)  Is located on a navigable body of water;

26         (II)  Has haulout capability such as a dry dock, travel

27  lift, railway, or similar equipment to service craft under the

28  care, custody, and control of the facility;

29         (III)  Has adequate piers and storage facilities to

30  provide safe berthing of vessels in its care, custody, and

31  control; and

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  1         (IV)  Has necessary shops and equipment to provide

  2  repair or warranty work on vessels under the care, custody,

  3  and control of the facility;

  4         b.  A marina that:

  5         (I)  Is located on a navigable body of water;

  6         (II)  Has adequate piers and storage facilities to

  7  provide safe berthing of vessels in its care, custody, and

  8  control; and

  9         (III)  Has necessary shops and equipment to provide

10  repairs or warranty work on vessels; or

11         c.  A shoreside facility that:

12         (I)  Is located on a navigable body of water;

13         (II)  Has adequate piers and storage facilities to

14  provide safe berthing of vessels in its care, custody, and

15  control; and

16         (III)  Has necessary shops and equipment to provide

17  repairs or warranty work.

18         (u)  Volunteer fire departments.--Also exempt are

19  firefighting and rescue service equipment and supplies

20  purchased by volunteer fire departments, duly chartered under

21  the Florida Statutes as corporations not for profit.

22         (v)  Professional services.--

23         1.  Also exempted are professional, insurance, or

24  personal service transactions that involve sales as

25  inconsequential elements for which no separate charges are

26  made.

27         2.  The personal service transactions exempted pursuant

28  to subparagraph 1. do not exempt the sale of information

29  services involving the furnishing of printed, mimeographed, or

30  multigraphed matter, or matter duplicating written or printed

31  matter in any other manner, other than professional services

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  1  and services of employees, agents, or other persons acting in

  2  a representative or fiduciary capacity or information services

  3  furnished to newspapers and radio and television stations.  As

  4  used in this subparagraph, the term "information services"

  5  includes the services of collecting, compiling, or analyzing

  6  information of any kind or nature and furnishing reports

  7  thereof to other persons.

  8         3.  This exemption does not apply to any service

  9  warranty transaction taxable under s. 212.0506.

10         4.  This exemption does not apply to any service

11  transaction taxable under s. 212.05(1)(j).

12         (w)  Certain newspaper, magazine, and newsletter

13  subscriptions, shoppers, and community newspapers.--Likewise

14  exempt are newspaper, magazine, and newsletter subscriptions

15  in which the product is delivered to the customer by mail.

16  Also exempt are free, circulated publications that are

17  published on a regular basis, the content of which is

18  primarily advertising, and that are distributed through the

19  mail, home delivery, or newsstands. The exemption for

20  newspaper, magazine, and newsletter subscriptions which is

21  provided in this paragraph applies only to subscriptions

22  entered into after March 1, 1997.

23         (x)  Sporting equipment brought into the

24  state.--Sporting equipment brought into Florida, for a period

25  of not more than 4 months in any calendar year, used by an

26  athletic team or an individual athlete in a sporting event is

27  exempt from the use tax if such equipment is removed from the

28  state within 7 days after the completion of the event.

29         (y)  Charter fishing vessels.--The charge for

30  chartering any boat or vessel, with the crew furnished, solely

31  for the purpose of fishing is exempt from the tax imposed

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  1  under s. 212.04 or s. 212.05.  This exemption does not apply

  2  to any charge to enter or stay upon any "head-boat," party

  3  boat, or other boat or vessel.  Nothing in this paragraph

  4  shall be construed to exempt any boat from sales or use tax

  5  upon the purchase thereof except as provided in paragraph (t)

  6  and s. 212.05.

  7         (z)  Vending machines sponsored by nonprofit or

  8  charitable organizations.--Also exempt are food or drinks for

  9  human consumption sold for 25 cents or less through a

10  coin-operated vending machine sponsored by a nonprofit

11  corporation qualified as nonprofit pursuant to s. 501(c)(3) or

12  (4) of the Internal Revenue Code of 1986, as amended.

13         (aa)  Certain commercial vehicles.--Also exempt is the

14  sale, lease, or rental of a commercial motor vehicle as

15  defined in s. 207.002(2), when the following conditions are

16  met:

17         1.  The sale, lease, or rental occurs between two

18  commonly owned and controlled corporations;

19         2.  Such vehicle was titled and registered in this

20  state at the time of the sale, lease, or rental; and

21         3.  Florida sales tax was paid on the acquisition of

22  such vehicle by the seller, lessor, or renter.

23         (bb)  Community cemeteries.--Also exempt are purchases

24  by any nonprofit corporation that has qualified under s.

25  501(c)(13) of the Internal Revenue Code of 1986, as amended,

26  and is operated for the purpose of maintaining a cemetery that

27  was donated to the community by deed.

28         (cc)  Works of art.--

29         1.  Also exempt are works of art sold to or used by an

30  educational institution.

31

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  1         2.  This exemption also applies to the sale to or use

  2  in this state of any work of art by any person if it was

  3  purchased or imported exclusively for the purpose of being

  4  donated to any educational institution, or loaned to and made

  5  available for display by any educational institution, provided

  6  that the term of the loan agreement is for at least 10 years.

  7         3.  The exemption provided by this paragraph for

  8  donations is allowed only if the person who purchased the work

  9  of art transfers title to the donated work of art to an

10  educational institution. Such transfer of title shall be

11  evidenced by an affidavit meeting requirements established by

12  rule to document entitlement to the exemption. Nothing in this

13  paragraph shall preclude a work of art donated to an

14  educational institution from remaining in the possession of

15  the donor or purchaser, as long as title to the work of art

16  lies with the educational institution.

17         4.  A work of art is presumed to have been purchased in

18  or imported into this state exclusively for loan as provided

19  in subparagraph 2., if it is so loaned or placed in storage in

20  preparation for such a loan within 90 days after purchase or

21  importation, whichever is later; but a work of art is not

22  deemed to be placed in storage in preparation for loan for

23  purposes of this exemption if it is displayed at any place

24  other than an educational institution.

25         5.  The exemptions provided by this paragraph are

26  allowed only if the person who purchased the work of art gives

27  to the vendor an affidavit meeting the requirements,

28  established by rule, to document entitlement to the exemption.

29  The person who purchased the work of art shall forward a copy

30  of such affidavit to the Department of Revenue at the time it

31  is issued to the vendor.

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  1         6.  The exemption for loans provided by subparagraph 2.

  2  applies only for the period during which a work of art is in

  3  the possession of the educational institution or is in storage

  4  before transfer of possession to that institution; and when it

  5  ceases to be so possessed or held, tax based upon the sales

  6  price paid by the owner is payable, and the statute of

  7  limitations provided in s. 95.091 shall begin to run at that

  8  time. However, tax shall not become due if the work of art is

  9  donated to an educational institution after the loan ceases.

10         7.  Any educational institution to which a work of art

11  has been donated pursuant to this paragraph shall make

12  available to the department the title to the work of art and

13  any other relevant information. Any educational institution

14  which has received a work of art on loan pursuant to this

15  paragraph shall make available to the department information

16  relating to the work of art. Any educational institution that

17  transfers from its possession a work of art as defined by this

18  paragraph which has been loaned to it must notify the

19  Department of Revenue within 60 days after the transfer.

20         8.  For purposes of the exemptions provided by this

21  paragraph, the term:

22         a.  "Educational institutions" includes state

23  tax-supported, parochial, church, and nonprofit private

24  schools, colleges, or universities that conduct regular

25  classes and courses of study required for accreditation by or

26  membership in the Southern Association of Colleges and

27  Schools, the Florida Council of Independent Schools, or the

28  Florida Association of Christian Colleges and Schools, Inc.;

29  nonprofit private schools that conduct regular classes and

30  courses of study accepted for continuing education credit by a

31  board of the Division of Medical Quality Assurance of the

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  1  Department of Health; or nonprofit libraries, art galleries,

  2  performing arts centers that provide educational programs to

  3  school children, which programs involve performances or other

  4  educational activities at the performing arts center and serve

  5  a minimum of 50,000 school children a year, and museums open

  6  to the public.

  7         b.  "Work of art" includes pictorial representations,

  8  sculpture, jewelry, antiques, stamp collections and coin

  9  collections, and other tangible personal property, the value

10  of which is attributable predominantly to its artistic,

11  historical, political, cultural, or social importance.

12         (dd)  Taxicab leases.--The lease of or license to use a

13  taxicab or taxicab-related equipment and services provided by

14  a taxicab company to an independent taxicab operator are

15  exempt, provided, however, the exemptions provided under this

16  paragraph only apply if sales or use tax has been paid on the

17  acquisition of the taxicab and its related equipment.

18         (ee)  Aircraft repair and maintenance labor

19  charges.--There shall be exempt from the tax imposed by this

20  chapter all labor charges for the repair and maintenance of

21  aircraft of more than 15,000 pounds maximum certified takeoff

22  weight and rotary wing aircraft of more than 10,000 pounds

23  maximum certified takeoff weight. Except as otherwise provided

24  in this chapter, charges for parts and equipment furnished in

25  connection with such labor charges are taxable.

26         (ff)  Certain electricity or steam uses.--

27         1.  Subject to the provisions of subparagraph 4.,

28  charges for electricity or steam used to operate machinery and

29  equipment at a fixed location in this state when such

30  machinery and equipment is used to manufacture, process,

31  compound, produce, or prepare for shipment items of tangible

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  1  personal property for sale, or to operate pollution control

  2  equipment, recycling equipment, maintenance equipment, or

  3  monitoring or control equipment used in such operations are

  4  exempt to the extent provided in this paragraph. If 75 percent

  5  or more of the electricity or steam used at the fixed location

  6  is used to operate qualifying machinery or equipment, 100

  7  percent of the charges for electricity or steam used at the

  8  fixed location are exempt. If less than 75 percent but 50

  9  percent or more of the electricity or steam used at the fixed

10  location is used to operate qualifying machinery or equipment,

11  50 percent of the charges for electricity or steam used at the

12  fixed location are exempt. If less than 50 percent of the

13  electricity or steam used at the fixed location is used to

14  operate qualifying machinery or equipment, none of the charges

15  for electricity or steam used at the fixed location are

16  exempt.

17         2.  This exemption applies only to industries

18  classified under SIC Industry Major Group Numbers 10, 12, 13,

19  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

20  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

21  in this paragraph, "SIC" means those classifications contained

22  in the Standard Industrial Classification Manual, 1987, as

23  published by the Office of Management and Budget, Executive

24  Office of the President.

25         3.  Possession by a seller of a written certification

26  by the purchaser, certifying the purchaser's entitlement to an

27  exemption permitted by this subsection, relieves the seller

28  from the responsibility of collecting the tax on the

29  nontaxable amounts, and the department shall look solely to

30  the purchaser for recovery of such tax if it determines that

31  the purchaser was not entitled to the exemption.

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  1         4.  Such exemption shall be applied as follows:

  2         a.  Beginning July 1, 1996, 20 percent of the charges

  3  for such electricity shall be exempt.

  4         b.  Beginning July 1, 1997, 40 percent of the charges

  5  for such electricity shall be exempt.

  6         c.  Beginning July 1, 1998, 60 percent of the charges

  7  for such electricity or steam shall be exempt.

  8         d.  Beginning July 1, 1999, 80 percent of the charges

  9  for such electricity or steam shall be exempt.

10         e.  Beginning July 1, 2000, 100 percent of the charges

11  for such electricity or steam shall be exempt.

12         5.  Notwithstanding any other provision in this

13  paragraph to the contrary, in order to receive the exemption

14  provided in this paragraph a taxpayer must first register with

15  the WAGES Program Business Registry established by the local

16  WAGES coalition for the area in which the taxpayer is located.

17  Such registration establishes a commitment on the part of the

18  taxpayer to hire WAGES program participants to the maximum

19  extent possible consistent with the nature of their business.

20         5.6.a.  In order to determine whether the exemption

21  provided in this paragraph from the tax on charges for

22  electricity or steam has an effect on retaining or attracting

23  companies to this state, the Office of Program Policy Analysis

24  and Government Accountability shall monitor and report on the

25  industries receiving the exemption.

26         b.  The report shall be submitted no later than January

27  1, 2001, and must be comprehensive in scope, but, at a

28  minimum, must be conducted in such a manner as to specifically

29  determine the number of companies within each SIC Industry

30  Major Group receiving the exemption as of September 1, 2000,

31  the number of individuals employed by companies within each

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  1  SIC Industry Major Group receiving the exemption as of

  2  September 1, 2000, whether the change, if any, in such number

  3  of companies or employees is attributable to the exemption

  4  provided in this paragraph, whether it would be sound public

  5  policy to continue or discontinue the exemption, and the

  6  consequences of doing so.

  7         c.  The report shall be submitted to the President of

  8  the Senate, the Speaker of the House of Representatives, the

  9  Senate Minority Leader, and the House Minority Leader.

10         (gg)  Fair associations.--Also exempt from the tax

11  imposed by this chapter is the sale, use, lease, rental, or

12  grant of a license to use, made directly to or by a fair

13  association, of real or tangible personal property; any charge

14  made by a fair association, or its agents, for parking,

15  admissions, or for temporary parking of vehicles used for

16  sleeping quarters; rentals, subleases, and sublicenses of real

17  or tangible personal property between the owner of the central

18  amusement attraction and any owner of an amusement ride, as

19  those terms are used in ss. 616.15(1)(b) and 616.242(3)(a),

20  for the furnishing of amusement rides at a public fair or

21  exposition; and other transactions of a fair association which

22  are incurred directly by the fair association in the

23  financing, construction, and operation of a fair, exposition,

24  or other event or facility that is authorized by s. 616.08. As

25  used in this paragraph, the terms "fair association" and

26  "public fair or exposition" have the same meaning as those

27  terms are defined in s. 616.001. This exemption does not apply

28  to the sale of tangible personal property made by a fair

29  association through an agent or independent contractor; sales

30  of admissions and tangible personal property by a

31  concessionaire, vendor, exhibitor, or licensee; or rentals and

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  1  subleases of tangible personal property or real property

  2  between the owner of the central amusement attraction and a

  3  concessionaire, vendor, exhibitor, or licensee, except for the

  4  furnishing of amusement rides, which transactions are exempt.

  5         (hh)  Citizen support organizations.--Also exempt from

  6  the tax imposed by this chapter are sales or leases to

  7  nonprofit organizations that are incorporated under chapter

  8  617 and that have been designated citizen support

  9  organizations in support of state-funded environmental

10  programs or the management of state-owned lands in accordance

11  with s. 20.2551, or to support one or more state parks in

12  accordance with s. 258.015.

13         (ii)  Florida Folk Festival.--There shall be exempt

14  from the tax imposed by this chapter income of a revenue

15  nature received from admissions to the Florida Folk Festival

16  held pursuant to s. 267.16 at the Stephen Foster State Folk

17  Culture Center, a unit of the state park system.

18         (jj)  Solar energy systems.--Also exempt are solar

19  energy systems or any component thereof.  The Florida Solar

20  Energy Center shall from time to time certify to the

21  department a list of equipment and requisite hardware

22  considered to be a solar energy system or a component thereof.

23  This exemption is repealed July 1, 2005.

24         (kk)  Nonprofit cooperative hospital laundries.--Also

25  exempt from the tax imposed by this chapter are sales or

26  leases to nonprofit organizations that are incorporated under

27  chapter 617 and which are treated, for federal income tax

28  purposes, as cooperatives under subchapter T of the Internal

29  Revenue Code, whose sole purpose is to offer laundry supplies

30  and services to their members, which members must all be

31

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  1  exempt from federal income tax pursuant to s. 501(c)(3) of the

  2  Internal Revenue Code.

  3         (ll)  Complimentary meals.--Also exempt from the tax

  4  imposed by this chapter are food or drinks that are furnished

  5  as part of a packaged room rate by any person offering for

  6  rent or lease any transient living accommodations as described

  7  in s. 509.013(4)(a) which are licensed under part I of chapter

  8  509 and which are subject to the tax under s. 212.03, if a

  9  separate charge or specific amount for the food or drinks is

10  not shown. Such food or drinks are considered to be sold at

11  retail as part of the total charge for the transient living

12  accommodations. Moreover, the person offering the

13  accommodations is not considered to be the consumer of items

14  purchased in furnishing such food or drinks and may purchase

15  those items under conditions of a sale for resale.

16         (mm)  Nonprofit corporation conducting the correctional

17  work programs.--Products sold pursuant to s. 946.515 by the

18  corporation organized pursuant to part II of chapter 946 are

19  exempt from the tax imposed by this chapter. This exemption

20  applies retroactively to July 1, 1983.

21         (nn)  Parent-teacher organizations, parent-teacher

22  associations, and schools having grades K through

23  12.--Parent-teacher organizations and associations the purpose

24  of which is to raise funds for schools teaching grades K

25  through 12 and which are qualified as educational institutions

26  as defined by sub-subparagraph (cc)8.a. associated with

27  schools having grades K through 12, and schools having grades

28  K through 12, may pay tax to their suppliers on the cost price

29  of school materials and supplies purchased, rented, or leased

30  for resale or rental to students in grades K through 12, of

31  items sold for fundraising purposes, and of items sold through

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  1  vending machines located on the school premises, in lieu of

  2  collecting the tax imposed by this chapter from the purchaser.

  3  This paragraph also applies to food or beverages sold through

  4  vending machines located in the student lunchroom or dining

  5  room of a school having kindergarten through grade 12.

  6         (oo)  Mobile home lot improvements.--Items purchased by

  7  developers for use in making improvements to a mobile home lot

  8  owned by the developer may be purchased tax-exempt as a sale

  9  for resale if made pursuant to a contract that requires the

10  developer to sell a mobile home to a purchaser, place the

11  mobile home on the lot, and make the improvements to the lot

12  for a single lump-sum price. The developer must collect and

13  remit sales tax on the entire lump-sum price.

14         (pp)  Veterans Administration.--When a veteran of the

15  armed forces purchases an aircraft, boat, mobile home, motor

16  vehicle, or other vehicle from a dealer pursuant to the

17  provisions of 38 U.S.C. s. 3902(a), or any successor provision

18  of the United States Code, the amount that is paid directly to

19  the dealer by the Veterans Administration is not taxable.

20  However, any portion of the purchase price which is paid

21  directly to the dealer by the veteran is taxable.

22         (qq)  Complimentary items.--There is exempt from the

23  tax imposed by this chapter:

24         1.  Any food or drink, whether or not cooked or

25  prepared on the premises, provided without charge as a sample

26  or for the convenience of customers by a dealer that primarily

27  sells food product items at retail.

28         2.  Any item given to a customer as part of a price

29  guarantee plan related to point-of-sale errors by a dealer

30  that primarily sells food products at retail.

31

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  1  The exemptions in this paragraph do not apply to businesses

  2  with the primary activity of serving prepared meals or

  3  alcoholic beverages for immediate consumption.

  4         (rr)  Donated foods or beverages.--Any food or beverage

  5  donated by a dealer that sells food products at retail to a

  6  food bank or an organization that holds a current exemption

  7  from federal corporate income tax pursuant to s. 501(c) of the

  8  Internal Revenue Code of 1986, as amended, is exempt from the

  9  tax imposed by this chapter.

10         (ss)  Racing dogs.--The sale of a racing dog by its

11  owner is exempt if the owner is also the breeder of the

12  animal.

13         (tt)  Equipment used in aircraft repair and

14  maintenance.--There shall be exempt from the tax imposed by

15  this chapter replacement engines, parts, and equipment used in

16  the repair or maintenance of aircraft of more than 15,000

17  pounds maximum certified takeoff weight and rotary wing

18  aircraft of more than 10,300 pounds maximum certified takeoff

19  weight, when such parts or equipment are installed on such

20  aircraft that is being repaired or maintained in this state.

21         (uu)  Aircraft sales or leases.--The sale or lease of

22  an aircraft of more than 15,000 pounds maximum certified

23  takeoff weight for use by a common carrier is exempt from the

24  tax imposed by this chapter. As used in this paragraph,

25  "common carrier" means an airline operating under Federal

26  Aviation Administration regulations contained in Title 14,

27  chapter I, part 121 or part 129 of the Code of Federal

28  Regulations.

29         (vv)  Nonprofit water systems.--Sales or leases to a

30  not-for-profit corporation which holds a current exemption

31  from federal income tax under s. 501(c)(4) or (12) of the

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  1  Internal Revenue Code, as amended, are exempt from the tax

  2  imposed by this chapter if the sole or primary function of the

  3  corporation is to construct, maintain, or operate a water

  4  system in this state.

  5         (ww)  Library cooperatives.--Sales or leases to library

  6  cooperatives certified under s. 257.41(2) are exempt from the

  7  tax imposed by this chapter.

  8         (xx)  Advertising agencies.--

  9         1.  As used in this paragraph, the term "advertising

10  agency" means any firm that is primarily engaged in the

11  business of providing advertising materials and services to

12  its clients.

13         2.  The sale of advertising services by an advertising

14  agency to a client is exempt from the tax imposed by this

15  chapter. Also exempt from the tax imposed by this chapter are

16  items of tangible personal property such as photographic

17  negatives and positives, videos, films, galleys, mechanicals,

18  veloxes, illustrations, digital audiotapes, analog tapes,

19  printed advertisement copies, compact discs for the purpose of

20  recording, digital equipment, and artwork and the services

21  used to produce those items if the items are:

22         a.  Sold to an advertising agency that is acting as an

23  agent for its clients pursuant to contract, and are created

24  for the performance of advertising services for the clients;

25         b.  Produced, fabricated, manufactured, or otherwise

26  created by an advertising agency for its clients, and are used

27  in the performance of advertising services for the clients; or

28         c.  Sold by an advertising agency to its clients in the

29  performance of advertising services for the clients, whether

30  or not the charges for these items are marked up or separately

31  stated.

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  1

  2  The exemption provided by this subparagraph does not apply

  3  when tangible personal property such as film, paper, and

  4  videotapes is purchased to create items such as photographic

  5  negatives and positives, videos, films, galleys, mechanicals,

  6  veloxes, illustrations, and artwork that are sold to an

  7  advertising agency or produced in-house by an advertising

  8  agency on behalf of its clients.

  9         3.  The items exempted from tax under subparagraph 2.

10  and the creative services used by an advertising agency to

11  design the advertising for promotional goods such as displays,

12  display containers, exhibits, newspaper inserts, brochures,

13  catalogues, direct mail letters or flats, shirts, hats, pens,

14  pencils, key chains, or other printed goods or materials are

15  not subject to tax. However, when such promotional goods are

16  produced or reproduced for distribution, tax applies to the

17  sales price charged to the client for such promotional goods.

18         4.  For items purchased by an advertising agency and

19  exempt from tax under this paragraph, possession of an

20  exemption certificate from the advertising agency certifying

21  the agency's entitlement to exemption relieves the vendor of

22  the responsibility of collecting the tax on the sale of such

23  items to the advertising agency, and the department shall look

24  solely to the advertising agency for recovery of tax if it

25  determines that the advertising agency was not entitled to the

26  exemption.

27         5.  The exemptions provided by this paragraph apply

28  retroactively, except that all taxes that have been collected

29  must be remitted, and taxes that have been remitted before

30  July 1, 1999, on transactions that are subject to exemption

31  under this paragraph are not subject to refund.

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  1         6.  The department may adopt rules that interpret or

  2  define the provisions of these exemptions and provide examples

  3  regarding the application of these exemptions.

  4         (yy)  Bullion.--The sale of gold, silver, or platinum

  5  bullion, or any combination thereof, in a single transaction

  6  is exempt if the sales price exceeds $500. The dealer must

  7  maintain proper documentation, as prescribed by rule of the

  8  department, to identify that portion of a transaction which

  9  involves the sale of gold, silver, or platinum bullion and is

10  exempt under this paragraph.

11         (zz)  Certain repair and labor charges.--

12         1.  Subject to the provisions of subparagraphs 2. and

13  3., there is exempt from the tax imposed by this chapter all

14  labor charges for the repair of, and parts and materials used

15  in the repair of and incorporated into, industrial machinery

16  and equipment which is used for the manufacture, processing,

17  compounding, production, or preparation for shipping of items

18  of tangible personal property at a fixed location within this

19  state.

20         2.  This exemption applies only to industries

21  classified under SIC Industry Major Group Numbers 10, 12, 13,

22  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

23  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

24  in this subparagraph, "SIC" means those classifications

25  contained in the Standard Industrial Classification Manual,

26  1987, as published by the Office of Management and Budget,

27  Executive Office of the President.

28         3.  This exemption shall be applied as follows:

29         a.  Beginning July 1, 1999, 25 percent of such charges

30  for repair parts and labor shall be exempt.

31

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  1         b.  Beginning July 1, 2000, 50 percent of such charges

  2  for repair parts and labor shall be exempt.

  3         c.  Beginning July 1, 2001, 75 percent of such charges

  4  for repair parts and labor shall be exempt.

  5         d.  Beginning July 1, 2002, 100 percent of such charges

  6  for repair parts and labor shall be exempt.

  7         (aaa)  Film and other printing supplies.--Also exempt

  8  are the following materials purchased, produced, or created by

  9  businesses classified under SIC Industry Numbers 275, 276,

10  277, 278, or 279 for use in producing graphic matter for sale:

11  film, photographic paper, dyes used for embossing and

12  engraving, artwork, typography, lithographic plates, and

13  negatives.  As used in this paragraph, "SIC" means those

14  classifications contained in the Standard Industrial

15  Classification Manual, 1987, as published by the Office of

16  Management and Budget, Executive Office of the President.

17         (bbb)  People-mover systems.--People-mover systems, and

18  parts thereof, which are purchased or manufactured by

19  contractors employed either directly by or as agents for the

20  United States Government, the state, a county, a municipality,

21  a political subdivision of the state, or the public operator

22  of a public-use airport as defined by s. 332.004(14) are

23  exempt from the tax imposed by this chapter when the systems

24  or parts go into or become part of publicly owned facilities.

25  In the case of contractors who manufacture and install such

26  systems and parts, this exemption extends to the purchase of

27  component parts and all other manufacturing and fabrication

28  costs. The department may provide a form to be used by

29  contractors to provide to suppliers of people-mover systems or

30  parts to certify the contractors' eligibility for the

31  exemption provided under this paragraph. As used in this

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  1  paragraph, "people-mover systems" includes wheeled passenger

  2  vehicles and related control and power distribution systems

  3  that are part of a transportation system for use by the

  4  general public, regardless of whether such vehicles are

  5  operator-controlled or driverless, self-propelled or propelled

  6  by external power and control systems, or conducted on roads,

  7  rails, guidebeams, or other permanent structures that are an

  8  integral part of such transportation system. "Related control

  9  and power distribution systems" includes any electrical or

10  electronic control or signaling equipment, but does not

11  include the embedded wiring, conduits, or cabling used to

12  transmit electrical or electronic signals among such control

13  equipment, power distribution equipment, signaling equipment,

14  and wheeled vehicles.

15         (ccc)  Organizations providing crime prevention, drunk

16  driving prevention, or juvenile delinquency prevention

17  services.--Sales or leases to any nonprofit organization that

18  provides crime prevention services, drunk driving prevention

19  services, or juvenile delinquency prevention services that

20  benefit society as a whole are exempt from the tax imposed by

21  this chapter, if the organization holds a current exemption

22  from federal income tax under s. 501(c)(3) of the Internal

23  Revenue Code and the organization has as its sole or primary

24  purpose the provision of services that contribute to the

25  prevention of hardships caused by crime, drunk driving, or

26  juvenile delinquency.

27         (ccc)(ddd)  Florida Fire and Emergency Services

28  Foundation.--Sales or leases to the Florida Fire and Emergency

29  Services Foundation are exempt from the tax imposed by this

30  chapter.

31

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  1         (ddd)(eee)  Railroad roadway materials.--Also exempt

  2  from the tax imposed by this chapter are railroad roadway

  3  materials used in the construction, repair, or maintenance of

  4  railways. Railroad roadway materials shall include rails,

  5  ties, ballasts, communication equipment, signal equipment,

  6  power transmission equipment, and any other track materials.

  7

  8  Exemptions provided to any entity by this subsection shall not

  9  inure to any transaction otherwise taxable under this chapter

10  when payment is made by a representative or employee of such

11  entity by any means, including, but not limited to, cash,

12  check, or credit card even when that representative or

13  employee is subsequently reimbursed by such entity.

14         Section 3.  (1)  The amendments to paragraphs (ff) and

15  (nn) of subsection (7) of section 212.08, Florida Statutes,

16  which are made by section 2 of this act apply retroactively to

17  July 1, 2000.

18         (2)  The amendments to the introductory paragraph, to

19  paragraph (p), and to the final, flush-left passage of

20  subsection (7) of section 212.08, Florida Statutes, which are

21  made by section 2 of this act are made to clarify rather than

22  change existing law, and these amendments apply retroactively

23  to January 1, 2001.

24         Section 4.  Effective upon this act becoming a law and

25  applying retroactively to July 1, 1996, paragraph (c) of

26  subsection (5) of section 212.08, Florida Statutes, is amended

27  to read:

28         212.08  Sales, rental, use, consumption, distribution,

29  and storage tax; specified exemptions.--The sale at retail,

30  the rental, the use, the consumption, the distribution, and

31  the storage to be used or consumed in this state of the

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  1  following are hereby specifically exempt from the tax imposed

  2  by this chapter.

  3         (5)  EXEMPTIONS; ACCOUNT OF USE.--

  4         (c)  Machinery and equipment used in production of

  5  electrical or steam energy.--

  6         1.  The purchase of machinery and equipment for use at

  7  a fixed location which machinery and equipment are necessary

  8  in the production of electrical or steam energy resulting from

  9  the burning of boiler fuels other than residual oil is exempt

10  from the tax imposed by this chapter.  Such electrical or

11  steam energy must be primarily for use in manufacturing,

12  processing, compounding, or producing for sale items of

13  tangible personal property in this state. Use of a de minimis

14  amount of residual fuel to facilitate the burning of

15  nonresidual fuel shall not reduce the exemption otherwise

16  available under this paragraph.

17         2.  In facilities where machinery and equipment are

18  necessary to burn both residual and nonresidual fuels, the

19  exemption shall be prorated. Such proration shall be based

20  upon the production of electrical or steam energy from

21  nonresidual fuels as a percentage of electrical or steam

22  energy from all fuels. If it is determined that 15 percent or

23  less of all electrical or steam energy generated was produced

24  by burning residual fuel, the full exemption shall apply.

25  Purchasers claiming a partial exemption shall obtain such

26  exemption by refund of taxes paid, or as otherwise provided in

27  the department's rules.

28         3.  The department may adopt rules that provide for

29  implementation of this exemption. Purchasers of machinery and

30  equipment qualifying for the exemption provided in this

31  paragraph shall furnish the vendor department with an

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  1  affidavit stating that the item or items to be exempted are

  2  for the use designated herein. Any person furnishing a false

  3  affidavit to the vendor for the purpose of evading payment of

  4  any tax imposed under this chapter shall be subject to the

  5  penalty set forth in s. 212.085 and as otherwise provided by

  6  law. Purchasers with self-accrual authority shall maintain all

  7  documentation necessary to prove the exempt status of

  8  purchases.

  9         Section 5.  Effective July 1, 2001, paragraphs (b),

10  (d), and (f) of subsection (5) of section 212.08, Florida

11  Statutes, are amended to read:

12         212.08  Sales, rental, use, consumption, distribution,

13  and storage tax; specified exemptions.--The sale at retail,

14  the rental, the use, the consumption, the distribution, and

15  the storage to be used or consumed in this state of the

16  following are hereby specifically exempt from the tax imposed

17  by this chapter.

18         (5)  EXEMPTIONS; ACCOUNT OF USE.--

19         (b)  Machinery and equipment used to increase

20  productive output.--

21         1.  Industrial machinery and equipment purchased for

22  exclusive use by a new business in spaceport activities as

23  defined by s. 212.02 or for use in new businesses which

24  manufacture, process, compound, or produce for sale items of

25  tangible personal property at fixed locations are exempt from

26  the tax imposed by this chapter upon an affirmative showing by

27  the taxpayer to the satisfaction of the department that such

28  items are used in a new business in this state. Such purchases

29  must be made prior to the date the business first begins its

30  productive operations, and delivery of the purchased item must

31  be made within 12 months of that date.

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  1         2.a.  Industrial machinery and equipment purchased for

  2  exclusive use by an expanding facility which is engaged in

  3  spaceport activities as defined by s. 212.02 or for use in

  4  expanding manufacturing facilities or plant units which

  5  manufacture, process, compound, or produce for sale items of

  6  tangible personal property at fixed locations in this state

  7  are exempt from any amount of tax imposed by this chapter in

  8  excess of $50,000 per calendar year upon an affirmative

  9  showing by the taxpayer to the satisfaction of the department

10  that such items are used to increase the productive output of

11  such expanded facility or business by not less than 10

12  percent.

13         b.  Notwithstanding any other provision of this

14  section, industrial machinery and equipment purchased for use

15  in expanding printing manufacturing facilities or plant units

16  that manufacture, process, compound, or produce for sale items

17  of tangible personal property at fixed locations in this state

18  are exempt from any amount of tax imposed by this chapter upon

19  an affirmative showing by the taxpayer to the satisfaction of

20  the department that such items are used to increase the

21  productive output of such an expanded business by not less

22  than 10 percent.

23         3.a.  To receive an exemption provided by subparagraph

24  1. or subparagraph 2., a qualifying business entity shall

25  apply to the department for a temporary tax exemption permit.

26  The application shall state that a new business exemption or

27  expanded business exemption is being sought. Upon a tentative

28  affirmative determination by the department pursuant to

29  subparagraph 1. or subparagraph 2., the department shall issue

30  such permit.

31

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  1         b.  The applicant shall be required to maintain all

  2  necessary books and records to support the exemption. Upon

  3  completion of purchases of qualified machinery and equipment

  4  pursuant to subparagraph 1. or subparagraph 2., the temporary

  5  tax permit shall be delivered to the department or returned to

  6  the department by certified or registered mail.

  7         c.  If, in a subsequent audit conducted by the

  8  department, it is determined that the machinery and equipment

  9  purchased as exempt under subparagraph 1. or subparagraph 2.

10  did not meet the criteria mandated by this paragraph or if

11  commencement of production did not occur, the amount of taxes

12  exempted at the time of purchase shall immediately be due and

13  payable to the department by the business entity, together

14  with the appropriate interest and penalty, computed from the

15  date of purchase, in the manner prescribed by this chapter.

16         d.  In the event a qualifying business entity fails to

17  apply for a temporary exemption permit or if the tentative

18  determination by the department required to obtain a temporary

19  exemption permit is negative, a qualifying business entity

20  shall receive the exemption provided in subparagraph 1. or

21  subparagraph 2. through a refund of previously paid taxes. No

22  refund may be made for such taxes unless the criteria mandated

23  by subparagraph 1. or subparagraph 2. have been met and

24  commencement of production has occurred.

25         4.  The department shall promulgate rules governing

26  applications for, issuance of, and the form of temporary tax

27  exemption permits; provisions for recapture of taxes; and the

28  manner and form of refund applications and may establish

29  guidelines as to the requisites for an affirmative showing of

30  increased productive output, commencement of production, and

31  qualification for exemption.

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  1         5.  The exemptions provided in subparagraphs 1. and 2.

  2  do not apply to machinery or equipment purchased or used by

  3  electric utility companies, communications companies, oil or

  4  gas exploration or production operations, publishing firms

  5  that do not export at least 50 percent of their finished

  6  product out of the state, any firm subject to regulation by

  7  the Division of Hotels and Restaurants of the Department of

  8  Business and Professional Regulation, or any firm which does

  9  not manufacture, process, compound, or produce for sale items

10  of tangible personal property or which does not use such

11  machinery and equipment in spaceport activities as required by

12  this paragraph. The exemptions provided in subparagraphs 1.

13  and 2. shall apply to machinery and equipment purchased for

14  use in phosphate or other solid minerals severance, mining, or

15  processing operations only by way of a prospective credit

16  against taxes due under chapter 211 for taxes paid under this

17  chapter on such machinery and equipment.

18         6.  For the purposes of the exemptions provided in

19  subparagraphs 1. and 2., these terms have the following

20  meanings:

21         a.  "Industrial machinery and equipment" means tangible

22  personal property or other property that has a depreciable

23  life of 3 years or more and that is used as an integral part

24  in the manufacturing, processing, compounding, or production

25  of tangible personal property for sale or is exclusively used

26  in spaceport activities. A building and its structural

27  components are not industrial machinery and equipment unless

28  the building or structural component is so closely related to

29  the industrial machinery and equipment that it houses or

30  supports that the building or structural component can be

31  expected to be replaced when the machinery and equipment

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  1  itself is replaced. Heating and air conditioning systems are

  2  not industrial machinery and equipment, unless the sole

  3  justification for their installation is to meet the

  4  requirements of the production process, even though the system

  5  may provide incidental comfort to employees or serves, to an

  6  insubstantial degree, nonproduction activities. "section 38

  7  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 spaceport activities or of the manufacturing,

12  processing, compounding, or producing for sale of items of

13  tangible personal property. Such term includes parts and

14  accessories only to the extent that the exemption thereof is

15  consistent with the provisions of this paragraph.

16         b.  "Productive output" means the number of units

17  actually produced by a single plant or operation in a single

18  continuous 12-month period, irrespective of sales. Increases

19  in productive output shall be measured by the output for 12

20  continuous months immediately following the completion of

21  installation of such machinery or equipment over the output

22  for the 12 continuous months immediately preceding such

23  installation. However, if a different 12-month continuous

24  period of time would more accurately reflect the increase in

25  productive output of machinery and equipment purchased to

26  facilitate an expansion, the increase in productive output may

27  be measured during that 12-month continuous period of time if

28  such time period is mutually agreed upon by the Department of

29  Revenue and the expanding business prior to the commencement

30  of production; provided, however, in no case may such time

31  period begin later than 2 years following the completion of

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  1  installation of the new machinery and equipment. The units

  2  used to measure productive output shall be physically

  3  comparable between the two periods, irrespective of sales.

  4         (d)  Machinery and equipment used under federal

  5  procurement contract.--

  6         1.  Industrial machinery and equipment purchased by an

  7  expanding business which manufactures tangible personal

  8  property pursuant to federal procurement regulations at fixed

  9  locations in this state are partially exempt from the tax

10  imposed in this chapter on that portion of the tax which is in

11  excess of $100,000 per calendar year upon an affirmative

12  showing by the taxpayer to the satisfaction of the department

13  that such items are used to increase the implicit productive

14  output of the expanded business by not less than 10 percent.

15  The percentage of increase is measured as deflated implicit

16  productive output for the calendar year during which the

17  installation of the machinery or equipment is completed or

18  during which commencement of production utilizing such items

19  is begun divided by the implicit productive output for the

20  preceding calendar year.  In no case may the commencement of

21  production begin later than 2 years following completion of

22  installation of the machinery or equipment.

23         2.  The amount of the exemption allowed shall equal the

24  taxes otherwise imposed by this chapter in excess of $100,000

25  per calendar year on qualifying industrial machinery or

26  equipment reduced by the percentage of gross receipts from

27  cost-reimbursement type contracts attributable to the plant or

28  operation to total gross receipts so attributable, accrued for

29  the year of completion or commencement.

30         3.  The exemption provided by this paragraph shall

31  inure to the taxpayer only through refund of previously paid

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  1  taxes.  Such refund shall be made within 30 days of formal

  2  approval by the department of the taxpayer's application,

  3  which application may be made on an annual basis following

  4  installation of the machinery or equipment.

  5         4.  For the purposes of this paragraph, the term:

  6         a.  "Cost-reimbursement type contracts" has the same

  7  meaning as in 32 C.F.R. s. 3-405.

  8         b.  "Deflated implicit productive output" means the

  9  product of implicit productive output times the quotient of

10  the national defense implicit price deflator for the preceding

11  calendar year divided by the deflator for the year of

12  completion or commencement.

13         c.  "Eligible costs" means the total direct and

14  indirect costs, as defined in 32 C.F.R. ss. 15-202 and 15-203,

15  excluding general and administrative costs, selling expenses,

16  and profit, defined by the uniform cost-accounting standards

17  adopted by the Cost-Accounting Standards Board created

18  pursuant to 50 U.S.C. s. 2168.

19         d.  "Implicit productive output" means the annual

20  eligible costs attributable to all contracts or subcontracts

21  subject to federal procurement regulations of the single plant

22  or operation at which the machinery or equipment is used.

23         e.  "Industrial machinery and equipment" means tangible

24  personal property, or other property, that has a depreciable

25  life of 3 years or more, that qualifies as an eligible cost

26  under federal procurement regulations, and that is used as an

27  integral part of the process of production of tangible

28  personal property. A building and its structural components

29  are not industrial machinery and equipment unless the building

30  or structural component is so closely related to the

31  industrial machinery and equipment that it houses or supports

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  1  that the building or structural component can be expected to

  2  be replaced when the machinery and equipment itself is

  3  replaced. Heating and air conditioning systems are not

  4  industrial machinery and equipment, unless the sole

  5  justification for their installation is to meet the

  6  requirements of the production process, even though the system

  7  may provide incidental comfort to employees or serves, to an

  8  insubstantial degree, nonproduction activities. "section 38

  9  property" as defined in s. 48(a)(1)(A) and (B)(i) of the

10  Internal Revenue Code, provided such industrial machinery and

11  equipment qualified as an eligible cost under federal

12  procurement regulations and are used as an integral part of

13  the tangible personal property production process. Such term

14  includes parts and accessories only to the extent that the

15  exemption of such parts and accessories is consistent with the

16  provisions of this paragraph.

17         f.  "National defense implicit price deflator" means

18  the national defense implicit price deflator for the gross

19  national product as determined by the Bureau of Economic

20  Analysis of the United States Department of Commerce.

21         5.  The exclusions provided in subparagraph (b)5. apply

22  to this exemption.  This exemption applies only to machinery

23  or equipment purchased pursuant to production contracts with

24  the United States Department of Defense and Armed Forces, the

25  National Aeronautics and Space Administration, and other

26  federal agencies for which the contracts are classified for

27  national security reasons.  In no event shall the provisions

28  of this paragraph apply to any expanding business the increase

29  in productive output of which could be measured under the

30  provisions of sub-subparagraph (b)6.b. as physically

31  comparable between the two periods.

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  1         (f)  Motion picture or video equipment used in motion

  2  picture or television production activities and sound

  3  recording equipment used in the production of master tapes and

  4  master records.--

  5         1.  Motion picture or video equipment and sound

  6  recording equipment purchased or leased for use in this state

  7  in production activities is exempt from the tax imposed by

  8  this chapter. The exemption provided by this paragraph shall

  9  inure to the taxpayer upon presentation of the certificate of

10  exemption issued to the taxpayer under the provisions of s.

11  288.1258.

12         2.  For the purpose of the exemption provided in

13  subparagraph 1.:

14         a.  "Motion picture or video equipment" and "sound

15  recording equipment" includes only tangible personal property,

16  or other property, that has a depreciable life of 3 years or

17  more and equipment meeting the definition of "section 38

18  property" as defined in s. 48(a)(1)(A) and (B)(i) of the

19  Internal Revenue Code that is used by the lessee or purchaser

20  exclusively as an integral part of production activities;

21  however, motion picture or video equipment and sound recording

22  equipment does not include supplies, tape, records, film, or

23  video tape used in productions or other similar items;

24  vehicles or vessels; or general office equipment not

25  specifically suited to production activities.  In addition,

26  the term does not include equipment purchased or leased by

27  television or radio broadcasting or cable companies licensed

28  by the Federal Communications Commission. Furthermore, a

29  building and its structural components are not motion picture

30  or video equipment and sound recording equipment unless the

31  building or structural component is so closely related to the

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  1  motion picture or video equipment and sound recording

  2  equipment that it houses or supports that the building or

  3  structural component can be expected to be replaced when the

  4  motion picture or video equipment and sound recording

  5  equipment itself is replaced. Heating and air conditioning

  6  systems are not motion picture or video equipment and sound

  7  recording equipment, unless the sole justification for their

  8  installation is to meet the requirements of the production

  9  activities, even though the system may provide incidental

10  comfort to employees or serves, to an insubstantial degree,

11  nonproduction activities.

12         b.  "Production activities" means activities directed

13  toward the preparation of a:

14         (I)  Master tape or master record embodying sound; or

15         (II)  Motion picture or television production which is

16  produced for theatrical, commercial, advertising, or

17  educational purposes and utilizes live or animated actions or

18  a combination of live and animated actions. The motion picture

19  or television production shall be commercially produced for

20  sale or for showing on screens or broadcasting on television

21  and may be on film or video tape.

22         Section 6.  Effective July 1, 2001, subsection (10) of

23  section 212.08, Florida Statutes, is amended to read:

24         212.08  Sales, rental, use, consumption, distribution,

25  and storage tax; specified exemptions.--The sale at retail,

26  the rental, the use, the consumption, the distribution, and

27  the storage to be used or consumed in this state of the

28  following are hereby specifically exempt from the tax imposed

29  by this chapter.

30         (10)  PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT

31  OF ANOTHER STATE.--

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  1         (a)  The tax collected on the sale of a new or used

  2  motor vehicle in this state to a resident of another state

  3  shall be an amount equal to the sales tax which would be

  4  imposed on such sale under the laws of the state of which the

  5  purchaser is a resident, except that such tax shall not exceed

  6  the tax that would otherwise be imposed under this chapter.

  7  At the time of the sale, the purchaser shall execute a

  8  notarized statement of his or her intent to license the

  9  vehicle in the state of which the purchaser is a resident

10  within 45 days of the sale and of the fact of the payment to

11  the State of Florida of a sales tax in an amount equivalent to

12  the sales tax of his or her state of residence and shall

13  submit the statement to the appropriate sales tax collection

14  agency in his or her state of residence. Nothing in this

15  subsection shall be construed to require the removal of the

16  vehicle from this state following the filing of an intent to

17  license the vehicle in the purchaser's home state if the

18  purchaser licenses the vehicle in his or her home state within

19  45 days after the date of sale.

20         (b)  Notwithstanding the partial exemption allowed in

21  paragraph (a), a vehicle is subject to this state's sales tax

22  at the applicable state sales tax rate plus authorized

23  surtaxes when the vehicle is purchased by a nonresident

24  corporation or partnership and:

25         1.  An officer of the corporation is a resident of this

26  state;

27         2.  A stockholder of the corporation who owns at least

28  10 percent of the corporation is a resident of this state; or

29         3.  A partner in the partnership who has at least 10

30  percent ownership is a resident of this state.

31

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  1  However, if the vehicle is removed from this state within 45

  2  days after purchase and remains outside the state for a

  3  minimum of 180 days, the vehicle may qualify for the partial

  4  exemption allowed in paragraph (a) despite the residency of

  5  owners or stockholders of the purchasing entity.

  6         Section 7.  Effective July 1, 2001, paragraph (b) of

  7  subsection (14) of section 212.06, Florida Statutes, is

  8  amended to read:

  9         212.06  Sales, storage, use tax; collectible from

10  dealers; "dealer" defined; dealers to collect from purchasers;

11  legislative intent as to scope of tax.--

12         (14)  For the purpose of determining whether a person

13  is improving real property, the term:

14         (b)  "Fixtures" means items that are an accessory to a

15  building, other structure, or land and that do not lose their

16  identity as accessories when installed but that do become

17  permanently attached to realty. However, the term does not

18  include the following items, whether or not such items are

19  attached to real property in a permanent manner:  trade

20  fixtures; property of a type that is required to be

21  registered, licensed, titled, or documented by this state or

22  by the United States Government, including, but not limited

23  to, mobile homes, except mobile homes assessed as real

24  property; or industrial machinery or equipment. For purposes

25  of this paragraph, industrial machinery or equipment is not

26  limited to machinery and equipment used to manufacture,

27  process, compound, or produce tangible personal property. For

28  an item to be considered a fixture, it is not necessary that

29  the owner of the item also own the real property to which it

30  is attached.

31

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  1         Section 8.  It is the intent of the Legislature that

  2  the amendment to section 212.06(14)(b), Florida Statutes,

  3  relating to industrial machinery or equipment, which is made

  4  by section 7 of this act is remedial in nature and merely

  5  clarifies existing law.

  6         Section 9.  Paragraph (a) of subsection (8) and

  7  subsection (9) of section 212.08, Florida Statutes, are

  8  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         (8)  PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE

16  OR FOREIGN COMMERCE.--

17         (a)  The sale or use of vessels and parts thereof used

18  to transport persons or property in interstate or foreign

19  commerce, including commercial fishing vessels, is subject to

20  the taxes imposed in this chapter only to the extent provided

21  herein.  The basis of the tax shall be the ratio of intrastate

22  mileage to interstate or foreign mileage traveled by the

23  carrier's vessels which were used in interstate or foreign

24  commerce and which had at least some Florida mileage during

25  the previous fiscal year. The ratio would be determined at the

26  close of the carrier's fiscal year. However, during the fiscal

27  year in which the vessel begins its initial operations in this

28  state, the vessel's mileage apportionment factor may be

29  determined on the basis of an estimated ratio of anticipated

30  miles in this state to anticipated total miles for that year,

31  and, subsequently, additional tax must be paid on the vessel,

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  1  or a refund may be applied for, on the basis of the actual

  2  ratio of the vessel's miles in this state to its total miles

  3  for that year. This ratio shall be applied each month to the

  4  total Florida purchases of such vessels and parts thereof

  5  which are used in Florida to establish that portion of the

  6  total used and consumed in intrastate movement and subject to

  7  the tax at the applicable rate. The basis for imposition of

  8  any discretionary surtax shall be as set forth in s. 212.054.

  9  Items, appropriate to carry out the purposes for which a

10  vessel is designed or equipped and used, purchased by the

11  owner, operator, or agent of a vessel for use on board such

12  vessel shall be deemed to be parts of the vessel upon which

13  the same are used or consumed. Vessels and parts thereof used

14  to transport persons or property in interstate and foreign

15  commerce are hereby determined to be susceptible to a distinct

16  and separate classification for taxation under the provisions

17  of this chapter. Vessels and parts thereof used exclusively in

18  intrastate commerce do not qualify for the proration of tax.

19         (9)  PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES

20  ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.--

21         (a)  Railroads which are licensed as common carriers by

22  the Surface Transportation Board Interstate Commerce

23  Commission and parts thereof used to transport persons or

24  property in interstate or foreign commerce are subject to tax

25  imposed in this chapter only to the extent provided herein.

26  The basis of the tax shall be the ratio of intrastate mileage

27  to interstate or foreign mileage traveled by the carrier

28  during the previous fiscal year of the carrier. Such ratio is

29  to be determined at the close of the carrier's fiscal year.

30  However, during the fiscal year in which the railroad begins

31  its initial operations in this state, the railroad's mileage

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  1  apportionment factor may be determined on the basis of an

  2  estimated ratio of anticipated miles in this state to

  3  anticipated total miles for that year, and, subsequently,

  4  additional tax must be paid on the railroad, or a refund may

  5  be applied for, on the basis of the actual ratio of the

  6  railroad's miles in this state to its total miles for that

  7  year. This ratio shall be applied each month to the Florida

  8  total purchases of the railroad which are used in this state

  9  to establish that portion of the total used and consumed in

10  intrastate movement and subject to tax under this chapter. The

11  basis for imposition of any discretionary surtax is set forth

12  in s. 212.054. Railroads which are licensed as common carriers

13  by the Surface Transportation Board Interstate Commerce

14  Commission and parts thereof used to transport persons or

15  property in interstate and foreign commerce are hereby

16  determined to be susceptible to a distinct and separate

17  classification for taxation under the provisions of this

18  chapter.

19         (b)  Motor vehicles which are engaged in interstate

20  commerce as common carriers, and parts thereof, used to

21  transport persons or property in interstate or foreign

22  commerce are subject to tax imposed in this chapter only to

23  the extent provided herein. The basis of the tax shall be the

24  ratio of intrastate mileage to interstate or foreign mileage

25  traveled by the carrier's motor vehicles which were used in

26  interstate or foreign commerce and which had at least some

27  Florida mileage during the previous fiscal year of the

28  carrier. Such ratio is to be determined at the close of the

29  carrier's fiscal year. However, during the fiscal year in

30  which the carrier begins its initial operations in this state,

31  the carrier's mileage apportionment factor may be determined

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  1  on the basis of an estimated ratio of anticipated miles in

  2  this state to anticipated total miles for that year, and,

  3  subsequently, additional tax must be paid on the carrier, or a

  4  refund may be applied for, on the basis of the actual ratio of

  5  the carrier's miles in this state to its total miles for that

  6  year. This ratio shall be applied each month to the Florida

  7  total purchases of such motor vehicles and parts thereof which

  8  are used in this state to establish that portion of the total

  9  used and consumed in intrastate movement and subject to tax

10  under this chapter. The basis for imposition of any

11  discretionary surtax is set forth in s. 212.054. Motor

12  vehicles which are engaged in interstate commerce, and parts

13  thereof, used to transport persons or property in interstate

14  and foreign commerce are hereby determined to be susceptible

15  to a distinct and separate classification for taxation under

16  the provisions of this chapter. Motor vehicles and parts

17  thereof used exclusively in intrastate commerce do not qualify

18  for the proration of tax.  For purposes of this paragraph,

19  parts of a motor vehicle engaged in interstate commerce

20  include a separate tank not connected to the fuel supply

21  system of the motor vehicle into which diesel fuel is placed

22  to operate a refrigeration unit or other equipment.

23         Section 10.  Effective July 1, 2001, subsection (4) of

24  section 220.22, Florida Statutes, is amended to read:

25         220.22  Returns; filing requirement.--

26         (4)  The department shall designate by rule certain

27  not-for-profit entities and others that are not required to

28  file a return, including an initial information return, under

29  this code unless the entities have taxable income as defined

30  in s. 220.13(2). These entities must include subchapter S

31  corporations, tax-exempt entities, and others that do not

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  1  usually owe federal income tax. For the year in which an

  2  election is made pursuant to s. 1361(b)(3) of the Internal

  3  Revenue Code, the qualified subchapter S subsidiary shall file

  4  an informational return with the department, which return

  5  shall be restricted to information identifying the subsidiary,

  6  the electing S corporation parent, and the effective date of

  7  the election.

  8         Section 11.  Effective July 1, 2001, subsection (10) of

  9  section 624.509, Florida Statutes, is repealed.

10         Section 12.  Subsection (2) of section 213.285, Florida

11  Statutes, is amended to read:

12         213.285  Certified audits.--

13         (2)(a)  The department is authorized to initiate a

14  certified audits project to further enhance tax compliance

15  reviews performed by qualified practitioners and to encourage

16  taxpayers to hire qualified practitioners at their own expense

17  to review and report on their tax compliance.  The nature of

18  certified audit work performed by qualified practitioners

19  shall be agreed-upon procedures in which the department is the

20  specified user of the resulting report.

21         (b)  As an incentive for taxpayers to incur the costs

22  of a certified audit, the department shall compromise

23  penalties and abate interest due on any tax liabilities

24  revealed by a certified audit as provided in s. 213.21.  This

25  authority to compromise penalties or abate interest shall not

26  apply to any liability for taxes that were collected by the

27  participating taxpayer but that were not remitted to the

28  department.

29         (c)  The certified audits project is repealed on July

30  1, 2006 2002, or upon completion of the project as determined

31  by the department, whichever occurs first.

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  1         Section 13.  Subsection (3) is added to section 213.30,

  2  Florida Statutes, to read:

  3         213.30  Compensation for information relating to a

  4  violation of the tax laws.--

  5         (1)  The executive director of the department, pursuant

  6  to rules adopted by the department, is authorized to

  7  compensate persons providing information to the department

  8  leading to:

  9         (a)  The punishment of, or collection of taxes,

10  penalties, or interest from, any person with respect to the

11  taxes enumerated in s. 213.05.  The amount of any payment made

12  under this paragraph may not exceed 10 percent of any tax,

13  penalties, or interest collected as a result of such

14  information.

15         (b)  The identification and registration of a taxpayer

16  who is not in compliance with the registration requirements of

17  any tax statute that is listed in s. 213.05.  The amount of

18  the payment made to any person who provides information to the

19  department which results in the registration of a noncompliant

20  taxpayer shall be $100.  The reward authorized in this

21  paragraph shall be paid only if the noncompliant taxpayer:

22         1.  Conducts business from a permanent, fixed location;

23         2.  Is engaged in a bona fide taxable activity; and

24         3.  Is found by the department to have an unpaid tax

25  liability.

26         (2)  Any employee of the department or of any other

27  state or federal agency who comes into possession of

28  information relating to a violation of a revenue law while an

29  employee of such agency may provide information to the

30  department of the type described in subsection (1), but the

31  employee may not be compensated under this section.  Any

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  1  former employee of the department or any other state or

  2  federal agency who came into possession of information

  3  relating to a violation of a revenue law while an employee of

  4  such agency may provide information to the department of the

  5  type described in subsection (1), but the former employee may

  6  not receive compensation under this section.

  7         (3)  Notwithstanding the provisions of any other law,

  8  this section is the sole means by which any person may obtain

  9  any moneys as the result of or in relation to the failure by

10  another person to comply with the tax laws of this state. The

11  use of any other law to obtain moneys for such failure is in

12  derogation of this statute and conflicts with the state's duty

13  to administer the tax laws.

14         Section 14.  The amendment to section 213.30, Florida

15  Statutes, made by this act does not apply to any case in

16  litigation or under seal on the effective date of this act.

17         Section 15.  Paragraph (f) of subsection (4) of section

18  11 of chapter 2000-165, Laws of Florida, is amended to read:

19         (4)  Effective October 1, 2000, the following programs

20  and functions are transferred to the Agency for Workforce

21  Innovation:

22         (f)  The Division of Unemployment Compensation is

23  transferred by a type two transfer, as defined in section

24  20.06(2), Florida Statutes, from the Department of Labor and

25  Employment Security to the Agency for Workforce Innovation.

26  The resources, data, records, property, and unexpended

27  balances of appropriations, allocations, and other funds

28  within the Office of the Secretary or any other division,

29  office, bureau, or unit within the Department of Labor and

30  Employment Security that support the Division of Unemployment

31  Compensation are transferred by a type two transfer, as

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  1  defined in section 20.06(2), Florida Statutes, from the

  2  Department of Labor and Employment Security.  By January 1,

  3  2001, the Agency for Workforce Innovation shall enter into a

  4  contract with the Department of Revenue which shall provide

  5  for the Department of Revenue to provide unemployment tax

  6  collection services.  The Department of Revenue, in

  7  consultation with the Department of Labor and Employment

  8  Security, shall determine the number of positions needed to

  9  provide unemployment tax collection services within the

10  Department of Revenue.  The number of unemployment tax

11  collection service positions the Department of Revenue

12  determines are needed shall not exceed the number of positions

13  that, prior to the contract, were authorized to the Department

14  of Labor and Employment Security for this purpose.  Upon

15  entering into the contract with the Agency for Workforce

16  Innovation to provide unemployment tax collection services,

17  the number of required positions, as determined by the

18  Department of Revenue, shall be authorized within the

19  Department of Revenue.  Beginning January 1, 2002, the Office

20  of Program Policy Analysis and Government Accountability shall

21  conduct a feasibility study regarding privatization of

22  unemployment tax collection services.  A report on the

23  conclusions of this study shall be submitted to the Governor,

24  the President of the Senate, and the Speaker of the House of

25  Representatives. The Department of Revenue is considered to be

26  administering a revenue law of this state when it provides

27  unemployment compensation tax collection services pursuant to

28  its contract with the Agency for Workforce Innovation. The

29  following provisions of chapter 213, Florida Statutes, apply

30  to the collection of unemployment contributions by the

31  Department of Revenue unless prohibited by federal law: ss.

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  1  213.018, 213.025, 213.051, 213.053, 213.055, 213.071, 213.10,

  2  213.21(2), (3), (4), (5), (6), (7), and (8), 213.2201, 213.23,

  3  213.24, 213.25, 213.26, 213.27, 213.28, 213.285, 213.30,

  4  213.34, 213.37, 213.50, 213.67, 213.69, 213.73, 213.731,

  5  213.732, 213.733, 213.74, 213.755, and 213.757.

  6         Section 16.  Subsection (7) of section 45.031, Florida

  7  Statutes, is amended to read:

  8         45.031  Judicial sales procedure.--In any sale of real

  9  or personal property under an order or judgment, the following

10  procedure may be followed as an alternative to any other sale

11  procedure if so ordered by the court:

12         (7)  DISBURSEMENTS OF PROCEEDS.--On filing a

13  certificate of title the clerk shall disburse the proceeds of

14  the sale in accordance with the order or final judgment, and

15  shall file a report of such disbursements and serve a copy of

16  it on each party not in default, and on the Department of

17  Revenue, if it was named as a defendant in the action or if

18  the Agency for Workforce Innovation or the Florida Department

19  of Labor and Employment Security was named as a defendant

20  while the Department of Revenue was performing unemployment

21  compensation tax collection services pursuant to a contract

22  with the Agency for Workforce Innovation, in substantially the

23  following form:

24

25  (Caption of Action)

26

27                   CERTIFICATE OF DISBURSEMENTS

28

29         The undersigned clerk of the court certifies that he or

30  she disbursed the proceeds received from the sale of the

31

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  1  property as provided in the order or final judgment to the

  2  persons and in the amounts as follows:

  3  Name                                                    Amount

  4

  5                              Total

  6

  7  WITNESS my hand and the seal of the court on ....,

  8  ...(year)....

  9                                                   ...(Clerk)...

10                                         By ...(Deputy Clerk)...

11

12  If no objections to the report are served within 10 days after

13  it is filed, the disbursements by the clerk shall stand

14  approved as reported. If timely objections to the report are

15  served, they shall be heard by the court. Service of

16  objections to the report does not affect or cloud the title of

17  the purchaser of the property in any manner.

18         Section 17.  Paragraph (a) of subsection (4) of section

19  69.041, Florida Statutes, is amended to read:

20         69.041  State named party; lien foreclosure, suit to

21  quiet title.--

22         (4)(a)  The Department of Revenue has the right to

23  participate in the disbursement of funds remaining in the

24  registry of the court after distribution pursuant to s.

25  45.031(7). The department shall participate in accordance with

26  applicable procedures in any mortgage foreclosure action in

27  which the department has a duly filed tax warrant, or

28  interests under a lien arising from a judgment, order, or

29  decree for child support, or interest in an unemployment

30  compensation tax lien pursuant to a contract with the Agency

31  for Workforce Innovation, against the subject property and

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  1  with the same priority, regardless of whether a default

  2  against the department, the Agency for Workforce Innovation,

  3  or the Department of Labor and Employment Security has been

  4  entered for failure to file an answer or other responsive

  5  pleading.

  6         Section 18.  Subsection (1) of section 213.053, Florida

  7  Statutes, is amended to read:

  8         213.053  Confidentiality and information sharing.--

  9         (1)  The provisions of this section apply to s.

10  125.0104, county government; s. 125.0108, tourist impact tax;

11  chapter 175, municipal firefighters' pension trust funds;

12  chapter 185, municipal police officers' retirement trust

13  funds; chapter 198, estate taxes; chapter 199, intangible

14  personal property taxes; chapter 201, excise tax on documents;

15  chapter 203, gross receipts taxes; chapter 211, tax on

16  severance and production of minerals; chapter 212, tax on

17  sales, use, and other transactions; chapter 220, income tax

18  code; chapter 221, emergency excise tax; s. 252.372, emergency

19  management, preparedness, and assistance surcharge; s.

20  370.07(3), Apalachicola Bay oyster surcharge; chapter 376,

21  pollutant spill prevention and control; s. 403.718, waste tire

22  fees; s. 403.7185, lead-acid battery fees; s. 538.09,

23  registration of secondhand dealers; s. 538.25, registration of

24  secondary metals recyclers; ss. 624.501 and 624.509-624.515,

25  insurance code; s. 681.117, motor vehicle warranty

26  enforcement; and s. 896.102, reports of financial transactions

27  in trade or business. The provisions of this section, except

28  paragraph (7)(f), also apply to chapter 443 while the

29  department is performing tax collection services for the

30  Agency for Workforce Innovation pursuant to chapter 2000-165,

31  Laws of Florida; however, the exceptions to confidentiality

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  1  contained in ss. 443.171(7) and 443.1715 remain in full force

  2  and effect.

  3         Section 19.  Effective July 1, 2001, notwithstanding

  4  section 10 of chapter 90-110, Laws of Florida, subsection (3)

  5  of section 215.20, Florida Statutes, shall not expire on

  6  October 1, 2001, as scheduled by that law, but subsection (3)

  7  of section 215.20, Florida Statutes, is revived and readopted.

  8         Section 20.  Effective upon becoming a law, and

  9  applying retroactively to June 1, 2001, if this act does not

10  become a law by that date, section 4 of chapter 96-395, Laws

11  of Florida, is repealed.

12         Section 21.  Except as otherwise expressly provided in

13  this act, this act shall take effect upon becoming a law.

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

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  1            *****************************************

  2                          SENATE SUMMARY

  3    Repeals s. 212.084(6), F.S., thereby eliminating
      provisions for temporary tax exemption certificates.
  4    Repeals s. 212.08(7)(ccc), F.S., thereby eliminating the
      specific tax exemptions for organizations providing crime
  5    prevention, drunk driving prevention, and juvenile
      delinquency prevention services. Provides that a
  6    qualifying 501(c)(3) entity is entitled to a refund for
      taxes paid on items purchased by the entity prior to
  7    receiving a consumer certificate of exemption. Reinstates
      the sales tax exemption for parent-teacher organizations
  8    and parent-teacher associations. Requires a purchaser to
      file an affidavit stating the exempt nature of a purchase
  9    with the selling vendor instead of the Department of
      Revenue. Provides for retroactivity. Replaces the
10    definition of the term "section 38 property" with an
      express definition of the terms "industrial machinery and
11    equipment" and "motion picture and video equipment."
      Imposes certain requirements, for purposes of taxation,
12    on the removal of a motor vehicle from this state.
      Provides residency requirements of corporate officers and
13    stockholders relating to the taxable status of sales of
      motor vehicles. Clarifies the definition of the term
14    "fixtures." Eliminates a reference to the term "trade
      fixture." Replaces the Interstate Commerce Commission
15    with the Surface Transportation Board as the entity that
      licenses certain railroads as common carriers. Provides
16    that for a vessel, railroad, or motor carrier engaged in
      interstate or foreign commerce sales tax applies to
17    taxable purchases in this state and applies even if the
      vessel, railroad, or motor carrier has operated for less
18    than a fiscal year. Eliminates the initial year's
      information return for certain corporations. Repeals s.
19    624.509(10), F.S., which provides for an exemption from
      the insurance premium tax for insurers that write
20    monoline flood insurance policies. Delays the sunset of
      the certified audit project by 4 years. Clarifies that
21    the rewards program under s. 213.30, F.S., is the only
      available means of obtaining compensation for information
22    regarding another person's failure to comply with the
      state's tax laws. Clarifies which provisions of ch. 213,
23    F.S., apply to the collection of unemployment
      contributions. Requires the clerk of court to give notice
24    to the Department of Revenue if there is a surplus
      resulting from the foreclosure of an unemployment
25    compensation tax lien. Permits the department to
      participate in the disbursement of unemployment
26    compensation tax lien foreclosure funds. Provides for
      confidentiality and information sharing. Abrogates the
27    expiration of s. 215.20(3), F.S., relating to service
      charges against certain trust funds, notwithstanding s.
28    10, ch. 90-110, Laws of Florida. Repeals s. 4 of ch.
      96-395, Laws of Florida, which provides for the repeal of
29    exemptions provided for certain citizen support
      organizations and the Florida Folk Festival; provides for
30    retroactive applicability to June 1, 2001, if this act
      does not become a law by that date.
31

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