CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS for SB 1844
Amendment No. ___ Barcode 954736
CHAMBER ACTION
Senate House
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11 Senator Pruitt moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 3, line 2,
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16 insert:
17 Section 1. Effective upon this act becoming a law,
18 section 11.35, Florida Statutes, is created to read:
19 11.35 Joint Legislative Committee on Tax Exemptions;
20 membership; duties.--
21 (1) The Joint Legislative Committee on Tax Exemptions
22 is created as a joint standing committee of the Legislature
23 composed of 12 members, 6 of whom are members of the Senate
24 appointed by the President of the Senate and 6 of whom are
25 members of the House of Representatives appointed by the
26 Speaker of the House of Representatives. The terms of members
27 are 2 years and run from one organization session of the
28 Legislature to the following organization session. In each
29 even-numbered year, the President of the Senate shall appoint
30 a member of the Senate to serve as chair for a term of 1 year;
31 and, in each odd-numbered year, the Speaker of the House of
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SENATE AMENDMENT
Bill No. CS for SB 1844
Amendment No. ___ Barcode 954736
1 Representatives shall appoint a member of the House of
2 Representatives to serve as chair for a term of 1 year. A
3 vacancy is to be filled for the unexpired portion of the term
4 in the same manner as the original appointment.
5 (2) The committee shall conduct a periodic review of
6 all exemptions from taxation under chapter 212, except those
7 specified in s. 212.25(3). The committee must complete the
8 first of its reviews by December 1, 2004, and its initial
9 review of all exemptions by December 1, 2009. For purposes of
10 the review, the committee shall:
11 (a) Assign each exemption to a discrete category of
12 exemptions, placing, to the extent practicable, similar and
13 related exemptions within the same category. The committee
14 shall identify discrete classes of transactions exempted by s.
15 212.25(2) and assign the exemption of each class to the
16 appropriate category.
17 (b) Schedule, for each year, one or more of the
18 categories to be reviewed before the following regular session
19 of the Legislature. Each category must be reviewed once by
20 December 1, 2009. By December 1, 2003, the committee shall
21 prepare, and submit to the President of the Senate and the
22 Speaker of the House of Representatives for introduction at
23 the 2004 regular session of the Legislature, a proposed bill
24 that amends the statutes to set the expiration date for each
25 exemption 18 months after the year in which it is scheduled
26 for review. The proposed bill shall set July 1, 2006, as the
27 expiration date for those exemptions which are scheduled to be
28 reviewed by December 1, 2004.
29 (c) Adopt standards and criteria that it will use for
30 its review of exemptions and upon which it will base its
31 recommendation to reauthorize an exemption. In developing
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SENATE AMENDMENT
Bill No. CS for SB 1844
Amendment No. ___ Barcode 954736
1 these standards and criteria, the committee should consider
2 the following principles of taxation:
3 1. Equity.--The Florida tax system should treat
4 individuals equitably. It should impose similar tax burdens on
5 people in similar circumstances and should minimize
6 regressivity.
7 2. Compliance.--The Florida tax system should
8 facilitate taxpayer compliance. It should be simple and easy
9 to understand so as to minimize compliance costs and increase
10 the visibility and awareness of the taxes being paid.
11 Enforcement and collection of tax revenues should be done in a
12 fair, consistent, professional, predictable, and
13 cost-effective manner.
14 3. Promotion of competition.--The Florida tax system
15 should be responsive to interstate and international
16 competition in order to encourage savings and investment in
17 plant, equipment, people, and technology.
18 4. Neutrality.--The Florida tax system should affect
19 competitors uniformly and not become a tool for "social
20 engineering." It should minimize government involvement in
21 investment decisions, making any such involvement explicit,
22 and should minimize pyramiding.
23 5. Stability.--The Florida tax system should produce
24 revenues in a stable and reliable manner which are sufficient
25 to fund appropriate governmental functions and expenditures.
26 6. Integration.--The Florida tax system should balance
27 the need for integration of federal, state, and local
28 taxation.
29 7. Public purpose.--Any sales tax exemption should be
30 based upon a determination that the exemption promotes an
31 important state interest, including, but not limited to,
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SENATE AMENDMENT
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Amendment No. ___ Barcode 954736
1 economic development, job creation and retention, economic
2 diversification, and community revitalization.
3 (3) By December 1 of each year, the committee shall
4 submit to the President of the Senate and the Speaker of the
5 House of Representatives a separate report for each category
6 of exemptions reviewed during that year. Each report must
7 contain the committee's recommendations with respect to each
8 exemption assigned to that category and include, for
9 consideration at the next regular session of the Legislature,
10 a proposed bill to reauthorize, for a period not to exceed 10
11 years, those exemptions that the committee recommends be
12 reauthorized and to cleanse the statutes of those exemptions
13 that the committee recommends be allowed to expire. Each
14 report must also include, for each exemption for which the
15 committee makes no recommendation, a separate bill to
16 reauthorize that exemption for a period not to exceed 10
17 years. Each proposed bill must provide that each reauthorized
18 exemption expires on a specified date occurring no more than
19 10 years after the effective date of the bill and is to be
20 reviewed pursuant to this section at least 18 months prior to
21 its expiration.
22 Section 2. Effective upon this act becoming a law,
23 section 212.25, Florida Statutes, is created to read:
24 212.25 Expiration and review of tax exemptions; status
25 of transactions neither expressly taxable nor exempt.--
26 (1) Effective July 1, 2011, and on July 1 of every
27 10th year thereafter, each exemption from taxation under this
28 chapter expires, except those specified in subsection (3) and
29 those specifically set by law to expire on another date. Prior
30 to its expiration, each such exemption shall be reviewed by
31 the Joint Legislative Committee on Tax Exemptions in
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Amendment No. ___ Barcode 954736
1 accordance with the law governing such reviews.
2 (2) Until July 1, 2011, any sale of goods or services
3 that is neither expressly taxable nor expressly exempt from
4 taxation under this chapter is exempt from such taxation, and
5 the exemptions provided by this subsection are subject to
6 review under s. 11.35. Effective July 1, 2011, any sale of
7 goods or services that is neither expressly taxable nor
8 expressly exempt from taxation under this chapter is subject
9 to tax at the same rate as the general tax rate prescribed by
10 this chapter for the retail sale of items of tangible personal
11 property.
12 (3) Notwithstanding the other provisions of this
13 section, the following transactions remain exempt from
14 taxation under this chapter and are not subject to expiration
15 or review under this section or s. 11.35: the sale of
16 groceries, prescription drugs, health services, real property,
17 intangible personal property, or communications services; the
18 sale of tangible personal property purchased for resale or
19 imported, produced, or manufactured in this state for export;
20 and the payment of residential rent or employee salaries or
21 benefits.
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23 (Redesignate subsequent sections.)
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27 And the title is amended as follows:
28 On page 1, lines 2 through 27, delete those lines,
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30 and insert:
31 An act relating to economic development;
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SENATE AMENDMENT
Bill No. CS for SB 1844
Amendment No. ___ Barcode 954736
1 creating s. 11.35, F.S.; creating the Joint
2 Legislative Committee on Tax Exemptions;
3 providing for its membership and prescribing
4 its duties; requiring it to periodically review
5 and make recommendations concerning tax
6 exemptions prescribed in ch. 212, F.S.;
7 creating s. 212.25, F.S.; providing for the
8 periodic expiration and review of tax
9 exemptions under ch. 212, F.S.; providing that
10 sales of goods or services that are neither
11 expressly taxable nor expressly exempt from
12 taxation by a specified date become taxable;
13 exempting specified transactions from taxation
14 and from the the expiration and review
15 requirements of the act; creating the "Florida
16 Technology Development Act"; defining terms;
17 creating the Emerging Technology Commission;
18 providing for membership, powers, and duties of
19 the commission; providing for Florida Research
20 Consortium, Inc., to report to the commission
21 regarding factors contributing to the success
22 of the creation of a center of excellence;
23 requiring the commission to develop and approve
24 criteria for evaluating proposals related to
25 the creation of centers of excellence;
26 requiring the commission to solicit such
27 proposals from state universities; requiring
28 the commission to submit recommended plans to
29 the State Board of Education for establishing
30 centers of excellence in the state; providing
31 for the State Board of Education to develop and
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SENATE AMENDMENT
Bill No. CS for SB 1844
Amendment No. ___ Barcode 954736
1 approve a final plan for establishing centers
2 of excellence in the state and authorize
3 expenditures for plan implementation; providing
4 commission reporting requirements; providing an
5 expiration date; providing an appropriation for
6 commission staff support and certain
7 administrative expenses; providing an effective
8 date.
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10 WHEREAS, the Legislature has identified a crisis in the
11 economy which compels the Legislature to take a broad and
12 comprehensive approach to economic development, addressing its
13 many facets, including both economic stimulus for emerging
14 technologies and the state's tax policy, and
15 WHEREAS, the Legislature recognizes the obvious natural
16 and logical connection between economic development and the
17 distribution of the tax burden among the diverse segments of
18 the economy, and
19 WHEREAS, the Legislature seeks by this legislation to
20 accomplish goals that are not separate or disassociated
21 objects of legislative effort, but that are integrated and
22 dependent elements of a comprehensive approach to a rational
23 economic policy that will fairly and equitably promote
24 economic development throughout the diverse segments of the
25 economy, and
26 WHEREAS, the Legislature, as part of this comprehensive
27 approach to a rational economic policy, seeks to create a
28 process by which the Legislature will periodically review, on
29 an orderly schedule, the array of tax exemptions and identify
30 those that serve as a widespread stimulus to the economy and
31 those that hamper economic development by unfairly
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SENATE AMENDMENT
Bill No. CS for SB 1844
Amendment No. ___ Barcode 954736
1 distributing the tax burden or giving an undue competitive
2 advantage to a business over others similarly situated, and
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