Senate Bill sb0426er

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  1

  2         An act relating to taxation; amending s.

  3         45.031, F.S.; requiring the clerk of court to

  4         give notice to the Department of Revenue if

  5         there is a surplus resulting from the

  6         foreclosure of an unemployment compensation tax

  7         lien; amending s. 55.202, F.S.; enabling a

  8         designee of the Department of Revenue to enter

  9         lien information into the Secretary of State's

10         database without incurring a fee; amending s.

11         69.041, F.S.; permitting the department to

12         participate in the disbursement of unemployment

13         compensation tax lien foreclosure funds;

14         amending s. 72.011, F.S.; providing for the

15         venue and jurisdiction of taxpayer actions in

16         circuit court; amending s. 199.052, F.S.;

17         eliminating the requirement that a corporation

18         file an intangibles tax return when no tax is

19         due; amending s. 199.218, F.S.; eliminating the

20         requirement that a corporation maintain records

21         relating to certain information; amending s.

22         199.282, F.S.; eliminating the penalty imposed

23         upon a corporation for failure to file a

24         certain required notice; amending s. 201.02,

25         F.S.; specifying nonapplication of the tax on

26         deeds and other instruments relating to real

27         property to contracts to sell certain

28         residences under certain circumstances;

29         amending s. 201.08, F.S.; specifying a maximum

30         tax on unsecured obligations; specifying

31         payment of tax on certain excess aggregate


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  1         amounts; conforming cross references;

  2         reenacting and amending s. 206.9825(1)(b),

  3         F.S.; authorizing the continuation of an

  4         aviation fuel tax credit for certain

  5         wholesalers or terminal suppliers; amending s.

  6         211.3103, F.S.; specifying the basis for annual

  7         calculations of county distributions of the

  8         severance tax on phosphate rock; amending s.

  9         212.02, F.S.; revising definitions; amending s.

10         212.06, F.S.; revising a definition; providing

11         legislative intent; prohibiting certain

12         assessments or refunds under certain

13         circumstances; amending s. 212.07, F.S.;

14         providing for dealer reliance on resale

15         certificates without seeking certain

16         verification; specifying vendor nonliability

17         for certain taxes, interest, or penalties under

18         certain circumstances; requiring the Department

19         of Revenue to impose certain mandatory,

20         nonwaivable penalties in lieu of certain taxes,

21         interest, and penalties under certain

22         circumstances; authorizing the department to

23         adopt certain rules and forms; providing

24         legislative intent as to application; amending

25         s. 212.08, F.S.; requiring a purchaser to file

26         an affidavit stating the exempt nature of a

27         purchase with the selling vendor instead of the

28         department; providing for retroactive

29         application; revising definitions of industrial

30         machinery and equipment, motion picture or

31         video equipment, and sound recording equipment;


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  1         providing legislative intent; providing

  2         purposes; clarifying application of exemptions

  3         to taxable transactions; specifying

  4         requirements for eligibility for exemptions;

  5         specifying tax liability for noncompliance;

  6         authorizing the department to adopt rules;

  7         reinstating the sales tax exemption for

  8         parent-teacher organizations and parent-teacher

  9         associations; eliminating obsolete provisions;

10         eliminating the specific sales tax exemption

11         for organizations providing crime prevention,

12         drunk-driving prevention, and

13         juvenile-delinquency-prevention services;

14         imposing certain requirements, for purposes of

15         taxation, on the removal of a motor vehicle

16         from this state; providing residency

17         requirements of corporate officers, corporate

18         stockholders, and partners in a partnership

19         relating to the taxable status of sales of

20         motor vehicles; providing for retroactive

21         operation of certain provisions; providing for

22         nonliability of tax on certain transactions;

23         providing an exception; providing requirements

24         for a specified exemption; replacing the

25         Interstate Commerce Commission with the Surface

26         Transportation Board as the entity that

27         licenses certain railroads as common carriers;

28         providing that, for a vessel, railroad, or

29         motor carrier engaged in interstate or foreign

30         commerce, sales tax applies to taxable

31         purchases in this state and applies even if the


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  1         vessel, railroad, or motor carrier has operated

  2         for less than a fiscal year; amending s.

  3         212.096, F.S.; clarifying definitions;

  4         specifying a time requirement for applications

  5         for an enterprise zone jobs credit for leased

  6         employees; amending s. 212.098, F.S.;

  7         clarifying Rural Job Tax Credit Program

  8         provisions; amending s. 212.11, F.S.;

  9         authorizing the Department of Revenue to

10         require a report to be submitted when filing a

11         sales and use tax return that claims certain

12         credits; requiring the department to adopt

13         rules regarding the forms and documentation

14         required to verify these credits; requiring the

15         department to disallow any credit not supported

16         by the required report and to impose penalties

17         and interest; amending s. 212.12, F.S.;

18         limiting liability of dealers for certain

19         additional tax, penalty, and interest under

20         certain circumstances; providing legislative

21         intent relating to application; providing for

22         methods of determining overpayments by persons

23         paying the tax on sales, use, and other

24         transactions; amending ss. 212.18 and 376.70,

25         F.S.; authorizing the Department of Revenue to

26         waive registration fees for applications made

27         using the department's Internet registration

28         process; amending s. 213.015, F.S.; specifying

29         additional taxpayer rights; amending s.

30         213.053, F.S.; authorizing the Department of

31         Revenue and the Department of Management


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  1         Services to release certain unemployment tax

  2         rate information under certain circumstances;

  3         amending s. 213.0535, F.S.; providing for

  4         additional disclosures of certain tax

  5         information under the Registration Information

  6         Sharing and Exchange Program; requiring

  7         maintenance of confidentiality of certain

  8         information under certain circumstances;

  9         amending s. 213.21, F.S.; requiring settlement

10         or compromise of a taxpayer's liability for

11         certain interest under certain circumstances;

12         providing for de novo review of certain facts

13         and circumstances in certain proceedings;

14         extending a future repeal of department

15         authority to settle or compromise certain

16         penalty liabilities; specifying additional

17         circumstances for settling or compromising

18         certain penalties; providing prospective

19         operation; providing requirements, criteria,

20         and procedures; requiring the Department of

21         Revenue to adopt rules; amending s. 213.24,

22         F.S.; including automated refunds in provisions

23         for certain billing cost limitations; amending

24         s. 213.255, F.S.; clarifying application of

25         certain interest determination limitations;

26         amending s. 213.285, F.S.; extending a future

27         repeal of a certified audits project; amending

28         s. 213.30, F.S.; specifying preemption for

29         seeking or obtaining compensation for certain

30         tax law violation information; amending s.

31         213.755, F.S.; requiring certain taxpayers to


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  1         file returns and pay taxes electronically;

  2         amending s. 220.03, F.S.; revising definitions;

  3         amending s. 220.15, F.S., which provides for

  4         apportionment of adjusted federal income to

  5         this state; revising the conditions for

  6         determining when sales of tangible personal

  7         property occur in this state for certain

  8         industries; providing for retroactive effect;

  9         amending s. 220.181, F.S.; clarifying

10         eligibility for claiming an enterprise zone

11         jobs credit; amending s. 220.187, F.S.;

12         providing for an additional class of "qualified

13         student"; providing application; amending s.

14         220.22, F.S.; requiring the Department of

15         Revenue to designate certain entities not

16         required to file certain returns; amending s.

17         220.23, F.S.; specifying determination of

18         interest on deficiencies; amending s. 220.809,

19         F.S.; providing an exception to certain

20         determinations of interest on deficiencies;

21         amending s. 290.00677, F.S.; correcting a cross

22         reference; amending ss. 336.021 and 336.025,

23         F.S.; revising time limitations on imposition

24         and rate changes of certain local option fuel

25         taxes; amending s. 443.131, F.S.; providing for

26         payment of employer contributions to the Agency

27         for Workforce Innovation instead of the

28         Division of Unemployment Compensation of the

29         Department of Labor and Employment Security;

30         revising procedures and requirements for such

31         payments by employers of employees providing


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  1         domestic services; reducing trust fund balance

  2         thresholds used in computing contribution rate

  3         adjustment factors; creating s. 443.1315, F.S.;

  4         providing definitions; providing for treatment

  5         of Indian tribes under the Unemployment

  6         Compensation Law; providing that Indian tribes

  7         or tribal units thereof may elect to make

  8         payments in lieu of contributions and providing

  9         requirements with respect thereto; providing

10         that such Indian tribe or tribal unit may be

11         required to file a bond or deposit security at

12         the discretion of the director of the Agency

13         for Workforce Innovation; providing effect of

14         failure of such tribe or unit to make required

15         payments; providing requirements for notices;

16         providing responsibility for certain extended

17         benefits; requiring the agency to adopt rules;

18         providing for retroactive application; amending

19         s. 443.163, F.S.; requiring certain employers

20         to file unemployment compensation reports and

21         taxes electronically; amending s. 608.471,

22         F.S.; providing for the tax treatment of

23         certain types of limited liability companies;

24         amending s. 681.117, F.S.; requiring motor

25         vehicle dealers to remit directly to the

26         Department of Revenue the Lemon Law Fee for

27         vehicles registered and titled outside of

28         Florida; amending ss. 3 and 4 of ch. 2000-345,

29         Laws of Florida; extending the effective date

30         of such sections; amending s. 11(4)(f) of ch.

31         2000-165, Laws of Florida; revising application


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  1         of certain sections to collections of

  2         unemployment compensation contributions by the

  3         Department of Revenue; providing a revised

  4         calculation for revenue sharing distributions

  5         to municipalities; repealing s. 9 of ch.

  6         2001-225, Laws of Florida, relating to an

  7         incorrect statutory reference; providing

  8         application; repealing s. 220.331, F.S.,

  9         relating to application of certain credits to

10         certain estimated payments; providing

11         application; repealing s. 199.062(1) and (2),

12         F.S., relating to a requirement that a

13         corporation file an annual information return

14         regarding stock value; repealing s. 201.05,

15         F.S., relating to tax on stock certificates;

16         repealing s. 212.084(6), F.S., relating to

17         temporary exemption certificates; repealing s.

18         624.509(10), F.S., relating to an exemption

19         from the insurance premium tax for insurers who

20         write monoline flood insurance policies;

21         providing effective dates.

22

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

24

25         Section 1.  Subsection (7) of section 45.031, Florida

26  Statutes, is amended to read:

27         45.031  Judicial sales procedure.--In any sale of real

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

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

30  procedure if so ordered by the court:

31


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

  2  certificate of title, the clerk shall disburse the proceeds of

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

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

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

  6  Revenue if the department it was named as a defendant in the

  7  action or if the Agency for Workforce Innovation or the

  8  Department of Labor and Employment Security was named as a

  9  defendant while the Department of Revenue was performing

10  unemployment compensation tax collection services pursuant to

11  a contract with the Agency for Workforce Innovation, in

12  substantially the following form:

13

14  (Caption of Action)

15

16                   CERTIFICATE OF DISBURSEMENTS

17

18         The undersigned clerk of the court certifies that he or

19  she disbursed the proceeds received from the sale of the

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

21  persons and in the amounts as follows:

22  Name                                                    Amount

23

24                              Total

25

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

27  ...(year)....

28                                                   ...(Clerk)...

29                                         By ...(Deputy Clerk)...

30

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

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

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

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

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

  6  the purchaser of the property in any manner.

  7         Section 2.  Subsection (5) of section 55.202, Florida

  8  Statutes, is amended to read:

  9         55.202  Judgments, orders, and decrees; lien on

10  personal property.--

11         (5)  Liens, assessments, warrants, or judgments filed

12  pursuant to paragraph (2)(b) may be filed directly into the

13  central database by the Department of Revenue, or its designee

14  as determined by its executive director, through electronic or

15  information data exchange programs approved by the Department

16  of State. Such filings must contain the information set forth

17  in s. 55.203(1).

18         Section 3.  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 support, as defined in s. 409.2554, or interest in

30  an unemployment compensation tax lien pursuant to a contract

31  with the Agency for Workforce Innovation, against the subject


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  1  property and with the same priority, regardless of whether a

  2  default against the department, the Agency for Workforce

  3  Innovation, or the Department of Labor and Employment Security

  4  has been entered for failure to file an answer or other

  5  responsive pleading.

  6         Section 4.  Effective January 1, 2003, paragraph (a) of

  7  subsection (4) and subsection (5) of section 72.011, Florida

  8  Statutes, are amended to read:

  9         72.011  Jurisdiction of circuit courts in specific tax

10  matters; administrative hearings and appeals; time for

11  commencing action; parties; deposits.--

12         (4)(a)  Except as provided in paragraph (b), an action

13  initiated in circuit court pursuant to subsection (1) shall be

14  filed in the Second Judicial Circuit Court in and for Leon

15  County or in the circuit court in the county where the

16  taxpayer resides, or maintains its principal commercial

17  domicile in this state, or, in the ordinary course of

18  business, regularly maintains its books and records in this

19  state.

20         (5)  The requirements of subsections (1), (2), and (3)

21  this section are jurisdictional.

22         Section 5.  Subsection (2) of section 199.052, Florida

23  Statutes, is amended to read:

24         199.052  Annual tax returns; payment of annual tax.--

25         (2)  No person, corporation, agent, or fiduciary shall

26  be required to pay the annual tax in any year when the

27  aggregate annual tax upon the person's intangible personal

28  property, after exemptions but before application of any

29  discount for early filing, would be less than $60.  In such

30  case, an annual return is not required unless the taxpayer is

31  a corporation or an agent or fiduciary of whom the department


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  1  requires an informational return. Agents and fiduciaries shall

  2  report for each person for whom they hold intangible personal

  3  property if the aggregate annual tax on such person is $60 or

  4  more.

  5         Section 6.  Subsection (2) of section 199.218, Florida

  6  Statutes, is amended to read:

  7         199.218  Books and records.--

  8         (2)  Each corporation and broker subject to the

  9  provisions of s. 199.062 shall preserve all books and other

10  records relating to the information reported under s. 199.062

11  or otherwise required by rule of the department for a period

12  of 3 years from the due date of the report.

13         Section 7.  Paragraph (a) of subsection (6) of section

14  199.282, Florida Statutes, is amended to read:

15         199.282  Penalties for violation of this chapter.--

16         (6)  Late reporting penalties shall be imposed as

17  follows:

18         (a)  A penalty of $100 upon any corporation that which

19  does not timely file a written notice required under s.

20  199.057(2)(c) or s. 199.062(2).

21         Section 8.  Subsection (8) is added to section 201.02,

22  Florida Statutes, to read:

23         201.02  Tax on deeds and other instruments relating to

24  real property or interests in real property.--

25         (8)  Taxes imposed by this section do not apply to a

26  contract to sell the residence of an employee relocating at

27  his or her employer's direction or to documents related to the

28  contract, which contract is between the employee and the

29  employer or between the employee and a person in the business

30  of providing employee relocation services.  In the case of

31  such transactions, taxes apply only to the transfer of the


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  1  real property comprising the residence by deed that vests

  2  legal title in a named grantee.

  3         Section 9.  Subsections (1), (2), (4), and (5) of

  4  section 201.08, Florida Statutes, are amended to read:

  5         201.08  Tax on promissory or nonnegotiable notes,

  6  written obligations to pay money, or assignments of wages or

  7  other compensation; exception.--

  8         (1)(a)  On promissory notes, nonnegotiable notes,

  9  written obligations to pay money, or assignments of salaries,

10  wages, or other compensation made, executed, delivered, sold,

11  transferred, or assigned in the state, and for each renewal of

12  the same, the tax shall be 35 cents on each $100 or fraction

13  thereof of the indebtedness or obligation evidenced thereby.

14  The tax on any document described in this paragraph shall not

15  exceed $2,450.

16         (b)  On mortgages, trust deeds, security agreements, or

17  other evidences of indebtedness filed or recorded in this

18  state, and for each renewal of the same, the tax shall be 35

19  cents on each $100 or fraction thereof of the indebtedness or

20  obligation evidenced thereby.  Mortgages, including, but not

21  limited to, mortgages executed without the state and recorded

22  in the state, which incorporate the certificate of

23  indebtedness, not otherwise shown in separate instruments, are

24  subject to the same tax at the same rate.  When there is both

25  a mortgage, trust deed, or security agreement and a note,

26  certificate of indebtedness, or obligation, the tax shall be

27  paid on the mortgage, trust deed, or security agreement at the

28  time of recordation.  A notation shall be made on the note,

29  certificate of indebtedness, or obligation that the tax has

30  been paid on the mortgage, trust deed, or security agreement.

31  Where a mortgage, trust deed, security agreement, or other


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  1  evidence of indebtedness is subsequently filed or recorded in

  2  this state to evidence an indebtedness or obligation upon

  3  which tax was paid pursuant to paragraph (a) or paragraph

  4  (2)(a), tax shall be paid on the mortgage, trust deed,

  5  security agreement, or other evidence of indebtedness on the

  6  amount of the indebtedness or obligation evidenced which

  7  exceeds the aggregate amount upon which tax was previously

  8  paid pursuant to this paragraph and paragraph (a) or paragraph

  9  (2)(a). If the mortgage, trust deed, security agreement, or

10  other evidence of indebtedness subject to the tax levied by

11  this section secures future advances, as provided in s.

12  697.04, the tax shall be paid at the time of recordation on

13  the initial debt or obligation secured, excluding future

14  advances; at the time and so often as any future advance is

15  made, the tax shall be paid on all sums then advanced

16  regardless of where such advance is made. Notwithstanding the

17  aforestated general rule, any increase in the amount of

18  original indebtedness caused by interest accruing under an

19  adjustable rate note or mortgage having an initial interest

20  rate adjustment interval of not less than 6 months shall be

21  taxable as a future advance only to the extent such increase

22  is a computable sum certain when the document is executed.

23  Failure to pay the tax shall not affect the lien for any such

24  future advance given by s. 697.04, but any person who fails or

25  refuses to pay such tax due by him or her is guilty of a

26  misdemeanor of the first degree.  The mortgage, trust deed, or

27  other instrument shall not be enforceable in any court of this

28  state as to any such advance unless and until the tax due

29  thereon upon each advance that may have been made thereunder

30  has been paid.

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  1         (2)(a)  On promissory notes, nonnegotiable notes,

  2  written obligations to pay money, or other compensation, made,

  3  executed, delivered, sold, transferred, or assigned in the

  4  state, in connection with sales made under retail charge

  5  account services, incident to sales which are not conditional

  6  in character and which are not secured by mortgage or other

  7  pledge of purchaser, the tax shall be 35 cents on each $100 or

  8  fraction thereof of the gross amount of the indebtedness

  9  evidenced by such instruments, payable quarterly on such forms

10  and under such rules and regulations as may be promulgated by

11  the Department of Revenue. The tax on any document described

12  in this paragraph shall not exceed $2,450.

13         (b)  Any receipt, charge slip, or other record of a

14  transaction effected with the use of a credit card, charge

15  card, or debit card shall be exempt from the tax imposed by

16  this section.

17         (4)  Notwithstanding paragraph (1)(b) subsection (1), a

18  supplement or an amendment to a mortgage, deed of trust,

19  indenture, or security agreement, which supplement or

20  amendment is filed or recorded in this state in connection

21  with a new issue of bonds, shall be subject to the tax imposed

22  by paragraph (1)(b) subsection (1) only to the extent of the

23  aggregate amount of the new issue of bonds or other evidence

24  of indebtedness and not to the extent of the aggregate amount

25  of bonds or other evidence of indebtedness previously issued

26  under the instrument being supplemented or amended.  In order

27  to qualify for the tax treatment provided for in this

28  subsection, the document which evidences the increase in

29  indebtedness must show the official records book and page

30  number in which, and the county in which, the original

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  1  obligation and any prior increase in that obligation were

  2  recorded.

  3         (5)  For purposes of this section, a renewal shall only

  4  include modifications of an original document which change the

  5  terms of the indebtedness evidenced by the original document

  6  by adding one or more obligors, increasing the principal

  7  balance, or changing the interest rate, maturity date, or

  8  payment terms.  Modifications to documents which do not modify

  9  the terms of the indebtedness evidenced such as those given or

10  recorded to correct error; modify covenants, conditions, or

11  terms unrelated to the debt; sever a lien into separate liens;

12  provide for additional, substitute, or further security for

13  the indebtedness; consolidate indebtedness or collateral; add,

14  change, or delete guarantors; or which substitute a new

15  mortgagee or payee are not renewals and are not subject to tax

16  pursuant to this section. If the taxable amount of a mortgage

17  is limited by language contained in the mortgage or by the

18  application of rules limiting the tax base when there is

19  collateral in more than one state, then a modification which

20  changes such limitation or tax base shall be taxable only to

21  the extent of any increase in the limitation or tax base

22  attributable to such modification.  This subsection shall not

23  be interpreted to exempt from taxation an original mortgage

24  that which would otherwise be subject to tax pursuant to

25  paragraph (1)(b) subsection (1).

26         Section 10.  Paragraph (b) of subsection (1) of section

27  206.9825, Florida Statutes, is reenacted and amended to read:

28         206.9825  Aviation fuel tax.--

29         (1)

30         (b)  Any licensed wholesaler or terminal supplier that

31  delivers aviation fuel to an air carrier offering


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  1  transcontinental jet service and that, after January 1, 1996,

  2  increases the air carrier's Florida workforce by more than

  3  1000 percent and by 250 or more full-time equivalent employee

  4  positions, may receive a credit or refund as the ultimate

  5  vendor of the aviation fuel for the 6.9 cents excise tax

  6  previously paid, provided that the air carrier has no facility

  7  for fueling highway vehicles from the tank in which the

  8  aviation fuel is stored.  In calculating the new or additional

  9  Florida full-time equivalent employee positions, any full-time

10  equivalent employee positions of parent or subsidiary

11  corporations which existed before January 1, 1996, shall not

12  be counted toward reaching the Florida employment increase

13  thresholds.  The refund allowed under this paragraph is in

14  furtherance of the goals and policies of the State

15  Comprehensive Plan set forth in s. 187.201(17)(a), (b)1., 2.,

16  (18)(a), (b)1., 4., (20)(a), (b)5., (22)(a), (b)1., 2., 4.,

17  7., 9., and 12.  This paragraph will expire on July 1, 2001.

18         Section 11.  Paragraph (b) of subsection (2), paragraph

19  (b) of subsection (3), and paragraph (b) of subsection (4) of

20  section 211.3103, Florida Statutes, are amended to read:

21         211.3103  Levy of tax on severance of phosphate rock;

22  rate, basis, and distribution of tax.--

23         (2)  The proceeds of all taxes, interest, and penalties

24  imposed under this section shall be paid into the State

25  Treasury through June 30, 1995, as follows:

26         (b)  The remaining revenues collected from the tax

27  during that fiscal year, after the required payment under

28  paragraph (a), shall be paid into the State Treasury as

29  follows:

30         1.  To the credit of the General Revenue Fund of the

31  state, 60 percent. However, from this amount the amounts of


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  1  $7.4 million, $8.2 million, and $8.1 million, respectively,

  2  shall be transferred to the Nonmandatory Land Reclamation

  3  Trust Fund on January 1, 1993, January 1, 1994, and January 1,

  4  1995.

  5         2.  To the credit of the Nonmandatory Land Reclamation

  6  Trust Fund which is established for reclamation and

  7  acquisition of unreclaimed lands disturbed by phosphate mining

  8  and not subject to mandatory reclamation, 20 percent.

  9         3.  To the credit of the Phosphate Research Trust Fund

10  in the Department of Education, Division of Universities, to

11  carry out the purposes set forth in s. 378.101, 10 percent.

12         4.  For payment to counties in proportion to the number

13  of tons of phosphate rock produced from a phosphate rock

14  matrix located within such political boundary, 10 percent. The

15  department shall distribute this portion of the proceeds

16  annually based on production information reported by producers

17  on the most recent annual returns for the taxable filed prior

18  to the beginning of the fiscal year. Any such proceeds

19  received by a county shall be used only for phosphate-related

20  expenses.

21         (3)  Beginning July 1, 1995, the proceeds of all taxes,

22  interest, and penalties imposed under this section shall be

23  paid into the State Treasury as follows:

24         (b)  The remaining revenues collected from the tax

25  during that fiscal year, after the required payment under

26  paragraph (a), shall be paid into the State Treasury as

27  follows:

28         1.  To the credit of the General Revenue Fund of the

29  state, 58 percent.

30         2.  To the credit of the Nonmandatory Land Reclamation

31  Trust Fund for reclamation and acquisition of unreclaimed


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  1  lands disturbed by phosphate mining and not subject to

  2  mandatory reclamation, 14.5 percent.

  3         3.  To the credit of the Phosphate Research Trust Fund

  4  in the Department of Education, Division of Universities, to

  5  carry out the purposes set forth in s. 378.101, 10 percent.

  6         4.  For payment to counties in proportion to the number

  7  of tons of phosphate rock produced from a phosphate rock

  8  matrix located within such political boundary, 10 percent. The

  9  department shall distribute this portion of the proceeds

10  annually based on production information reported by producers

11  on the most recent annual returns for the taxable filed prior

12  to the beginning of the fiscal year. Any such proceeds

13  received by a county shall be used only for phosphate-related

14  expenses.

15         5.  To the credit of the Minerals Trust Fund, 7.5

16  percent.

17         (4)  If the base rate is reduced pursuant to paragraph

18  (5)(c), then the proceeds of the tax shall be paid into the

19  State Treasury as follows:

20         (b)  The remaining revenues collected from the tax

21  during that fiscal year, after the required payment under

22  paragraph (a), shall be paid into the State Treasury as

23  follows:

24         1.  To the credit of the General Revenue Fund of the

25  state, 55.15 percent.

26         2.  To the credit of the Phosphate Research Trust Fund

27  in the Department of Education, Division of Universities, 12.5

28  percent.

29         3.  For payment to counties in proportion to the number

30  of tons of phosphate rock produced from a phosphate rock

31  matrix located within such political boundary, 18 percent. The


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  1  department shall distribute this portion of the proceeds

  2  annually based on production information reported by producers

  3  on the most recent annual returns for the taxable filed prior

  4  to the beginning of the fiscal year. Any such proceeds

  5  received by a county shall be used only for phosphate-related

  6  expenses.

  7         4.  To the credit of the Minerals Trust Fund, 14.35

  8  percent.

  9         Section 12.  Paragraph (g) of subsection (10) of

10  section 212.02, Florida Statutes, is amended to read:

11         212.02  Definitions.--The following terms and phrases

12  when used in this chapter have the meanings ascribed to them

13  in this section, except where the context clearly indicates a

14  different meaning:

15         (10)  "Lease," "let," or "rental" means leasing or

16  renting of living quarters or sleeping or housekeeping

17  accommodations in hotels, apartment houses, roominghouses,

18  tourist or trailer camps and real property, the same being

19  defined as follows:

20         (g)  "Lease," "let," or "rental" also means the leasing

21  or rental of tangible personal property and the possession or

22  use thereof by the lessee or rentee for a consideration,

23  without transfer of the title of such property, except as

24  expressly provided to the contrary herein.  The term "lease,"

25  "let," or "rental" does not mean hourly, daily, or mileage

26  charges, to the extent that such charges are subject to the

27  jurisdiction of the United States Interstate Commerce

28  Commission, when such charges are paid by reason of the

29  presence of railroad cars owned by another on the tracks of

30  the taxpayer, or charges made pursuant to car service

31  agreements. The term "lease," "let," "rental," or "license"


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  1  does not include payments made to an owner of high-voltage

  2  bulk transmission facilities in connection with the possession

  3  or control of such facilities by a regional transmission

  4  organization, independent system operator, or similar entity

  5  under the jurisdiction of the Federal Energy Regulatory

  6  Commission. However, where two taxpayers, in connection with

  7  the interchange of facilities, rent or lease property, each to

  8  the other, for use in providing or furnishing any of the

  9  services mentioned in s. 166.231, the term "lease or rental"

10  means only the net amount of rental involved.

11         Section 13.  Effective July 1, 2002, paragraph (b) of

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

13  amended to read:

14         212.06  Sales, storage, use tax; collectible from

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

16  legislative intent as to scope of tax.--

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

18  is improving real property, the term:

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

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

21  identity as accessories when installed but that do become

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

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

24  attached to real property in a permanent manner: trade

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

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

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

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

29  property,; or industrial machinery or equipment. For purposes

30  of this paragraph, industrial machinery or equipment is not

31  limited to machinery and equipment used to manufacture,


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

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

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

  4  is attached.

  5         Section 14.  It is the intent of the Legislature that

  6  the amendment made by this act to section 212.06(14)(b),

  7  Florida Statutes, relating to industrial machinery or

  8  equipment, is remedial in nature and merely clarifies existing

  9  law. However, nothing contained in this act shall authorize an

10  assessment of additional tax, penalty, or interest against any

11  taxpayer that complied with section 212.06(14)(b), Florida

12  Statutes, as amended by chapter 98-141, Laws of Florida,

13  effective July 1, 1998, nor shall any taxpayer be entitled to

14  a refund of taxes previously paid due to the retroactive

15  effect of this act.

16         Section 15.  Effective July 1, 2002, paragraph (b) of

17  subsection (1) of section 212.07, Florida Statutes, is

18  amended, and subsection (9) is added to said section, to read:

19         212.07  Sales, storage, use tax; tax added to purchase

20  price; dealer not to absorb; liability of purchasers who

21  cannot prove payment of the tax; penalties; general

22  exemptions.--

23         (1)

24         (b)  A resale must be in strict compliance with s.

25  212.18 and the rules and regulations, and any dealer who makes

26  a sale for resale which is not in strict compliance with s.

27  212.18 and the rules and regulations shall himself or herself

28  be liable for and pay the tax. Any dealer who makes a sale for

29  resale shall document the exempt nature of the transaction, as

30  established by rules promulgated by the department, by

31  retaining a copy of the purchaser's resale certificate.  In


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  1  lieu of maintaining a copy of the certificate, a dealer may

  2  document, prior to the time of sale, an authorization number

  3  provided telephonically or electronically by the department,

  4  or by such other means established by rule of the department.

  5  The department shall adopt rules that provide that, for

  6  purchasers who purchase on account from a dealer on a

  7  continual basis, The dealer may rely on a resale certificate

  8  issued pursuant to s. 212.18(3)(c), valid at the time of

  9  receipt from the purchaser, without seeking annual

10  verification of the resale certificate if the dealer makes

11  recurring sales to a purchaser in the normal course of

12  business on a continual basis. For purposes of this paragraph,

13  "recurring sales to a purchaser in the normal course of

14  business" refers to a sale in which the dealer extends credit

15  to the purchaser and records the debt as an account

16  receivable, or in which the dealer sells to a purchaser who

17  has an established cash or C.O.D. account, similar to an open

18  credit account.  For purposes of this paragraph, purchases are

19  made from a selling dealer on a continual basis if the selling

20  dealer makes, in the normal course of business, sales to the

21  purchaser no less frequently than once in every 12-month

22  period.  A dealer may, through the informal protest provided

23  for in s. 213.21 and the rules of the Department of Revenue,

24  provide the department with evidence of the exempt status of a

25  sale. Consumer certificates of exemption executed by those

26  exempt entities that were registered with the department at

27  the time of sale, resale certificates provided by purchasers

28  who were active dealers at the time of sale, and verification

29  by the department of a purchaser's active dealer status at the

30  time of sale in lieu of a resale certificate shall be accepted

31  by the department when submitted during the protest period,


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  1  but may not be accepted in any proceeding under chapter 120 or

  2  any circuit court action instituted under chapter 72.

  3         (9)(a)  If a purchaser engaging in transactions taxable

  4  under this chapter did not pay tax to a vendor based on a good

  5  faith belief that the transaction was a nontaxable purchase

  6  for resale or the transaction was exempt as a purchase by an

  7  organization exempt from tax under this chapter, except as

  8  provided in paragraph (b), neither the purchaser nor the

  9  vendor is directly liable for any tax, interest, or penalty

10  that would otherwise be due if the following conditions are

11  met:

12         1.  At the time of the purchase, the purchaser was not

13  registered as a dealer with the department or did not hold a

14  consumer's certificate of exemption from the department.

15         2.  At the time of the purchase, the purchaser was

16  qualified to register with the department as a dealer or to

17  receive a consumer's certificate of exemption from the

18  department.

19         3.  Before applying for treatment under this

20  subsection, the purchaser has registered with the department

21  as a dealer or has applied for and received a consumer's

22  certificate of exemption from the department.

23         4.  The purchaser establishes justifiable cause for

24  failure to register as a dealer or to obtain a consumer's

25  certificate of exemption before making the purchase. Whether a

26  purchaser has established justifiable cause for failure to

27  register depends on the facts and circumstances of each case,

28  including, but not limited to, such factors as the complexity

29  of the transaction, the purchaser's business experience and

30  history, whether the purchaser sought advice on its tax

31


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  1  obligations, whether any such advice was followed, and any

  2  remedial action taken by the purchaser.

  3         5.  The transaction would otherwise qualify as exempt

  4  under this chapter except for the fact that at the time of the

  5  purchase the purchaser was not registered as a dealer with the

  6  department or did not hold a consumer's certificate of

  7  exemption from the department.

  8         6.  Relief pursuant to this subsection is applied for:

  9         a.  Before the department has initiated any audit or

10  other action or inquiry in regard to the purchaser or the

11  vendor; or

12         b.  If any audit or other action or inquiry of the

13  purchaser or the vendor has already been initiated, within 7

14  days after being informed in writing by the department that

15  the purchaser was required to be registered or to hold a

16  consumer's certificate of exemption at the time the

17  transaction occurred.

18         (b)  In lieu of the tax, penalties, and interest that

19  would otherwise have been due, the department shall impose and

20  collect the following mandatory penalties, which the

21  department may not waive:

22         1.  If a purchaser or vendor applies for relief before

23  the department initiates any audit or other action or inquiry,

24  the mandatory penalty is the lesser of $1,000 or 10 percent of

25  the total tax due on transactions that qualify for treatment

26  under this subsection.

27         2.  If a purchaser or vendor applies for relief after

28  an audit or other action or inquiry has already been initiated

29  by the department, the mandatory penalty is the lesser of

30  $5,000 or 20 percent of the total tax due on transactions that

31  qualify for treatment under this subsection.


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  1

  2  The department may impose and collect the mandatory penalties

  3  from either the purchaser or the vendor that failed to obtain

  4  proper documentation at the time of the transaction.

  5         (c)  The department may adopt forms and rules to

  6  administer this subsection.

  7         Section 16.  It is the intent of the Legislature that

  8  section 212.07(9), Florida Statutes, created by this act,

  9  applies to all pending sales and use tax audits or other

10  actions or inquiries, including those currently under protest

11  or in litigation. Taxpayers in such pending audits or other

12  actions or inquiries have until the later of the date provided

13  by section 212.07(9)(b), Florida Statutes, or 90 days after

14  the effective date of this act to apply for the treatment

15  provided in such paragraph. This section does not create any

16  right to refund for taxes previously assessed and paid in

17  regard to audits or other actions or inquires that are no

18  longer pending.

19         Section 17.  Effective upon this act becoming a law and

20  operating retroactively to July 1, 1996, paragraph (c) of

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

22  to read:

23         212.08  Sales, rental, use, consumption, distribution,

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

25  the rental, the use, the consumption, the distribution, and

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

27  following are hereby specifically exempt from the tax imposed

28  by this chapter.

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

30         (c)  Machinery and equipment used in production of

31  electrical or steam energy.--


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

  2  a fixed location which machinery and equipment are necessary

  3  in the production of electrical or steam energy resulting from

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

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

  6  steam energy must be primarily for use in manufacturing,

  7  processing, compounding, or producing for sale items of

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

  9  amount of residual fuel to facilitate the burning of

10  nonresidual fuel shall not reduce the exemption otherwise

11  available under this paragraph.

12         2.  In facilities where machinery and equipment are

13  necessary to burn both residual and nonresidual fuels, the

14  exemption shall be prorated. Such proration shall be based

15  upon the production of electrical or steam energy from

16  nonresidual fuels as a percentage of electrical or steam

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

18  less of all electrical or steam energy generated was produced

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

20  Purchasers claiming a partial exemption shall obtain such

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

22  the department's rules.

23         3.  The department may adopt rules that provide for

24  implementation of this exemption. Purchasers of machinery and

25  equipment qualifying for the exemption provided in this

26  paragraph shall furnish the vendor department with an

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

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

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

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

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


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

  2  documentation necessary to prove the exempt status of

  3  purchases.

  4         Section 18.  Effective July 1, 2002, paragraphs (b),

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

  6  Statutes, are amended to read:

  7         212.08  Sales, rental, use, consumption, distribution,

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

  9  the rental, the use, the consumption, the distribution, and

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

11  following are hereby specifically exempt from the tax imposed

12  by this chapter.

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

14         (b)  Machinery and equipment used to increase

15  productive output.--

16         1.  Industrial machinery and equipment purchased for

17  exclusive use by a new business in spaceport activities as

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

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

20  tangible personal property at fixed locations are exempt from

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

22  the taxpayer to the satisfaction of the department that such

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

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

25  productive operations, and delivery of the purchased item must

26  be made within 12 months of that date.

27         2.a.  Industrial machinery and equipment purchased for

28  exclusive use by an expanding facility which is engaged in

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

30  expanding manufacturing facilities or plant units which

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


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  1  tangible personal property at fixed locations in this state

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

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

  4  showing by the taxpayer to the satisfaction of the department

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

  6  such expanded facility or business by not less than 10

  7  percent.

  8         b.  Notwithstanding any other provision of this

  9  section, industrial machinery and equipment purchased for use

10  in expanding printing manufacturing facilities or plant units

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

12  of tangible personal property at fixed locations in this state

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

14  an affirmative showing by the taxpayer to the satisfaction of

15  the department that such items are used to increase the

16  productive output of such an expanded business by not less

17  than 10 percent.

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

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

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

21  The application shall state that a new business exemption or

22  expanded business exemption is being sought. Upon a tentative

23  affirmative determination by the department pursuant to

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

25  such permit.

26         b.  The applicant shall be required to maintain all

27  necessary books and records to support the exemption. Upon

28  completion of purchases of qualified machinery and equipment

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

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

31  the department by certified or registered mail.


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

  2  department, it is determined that the machinery and equipment

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

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

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

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

  7  payable to the department by the business entity, together

  8  with the appropriate interest and penalty, computed from the

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

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

11  apply for a temporary exemption permit or if the tentative

12  determination by the department required to obtain a temporary

13  exemption permit is negative, a qualifying business entity

14  shall receive the exemption provided in subparagraph 1. or

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

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

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

18  commencement of production has occurred.

19         4.  The department shall adopt promulgate rules

20  governing applications for, issuance of, and the form of

21  temporary tax exemption permits; provisions for recapture of

22  taxes; and the manner and form of refund applications and may

23  establish guidelines as to the requisites for an affirmative

24  showing of increased productive output, commencement of

25  production, and qualification for exemption.

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

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

28  electric utility companies, communications companies, oil or

29  gas exploration or production operations, publishing firms

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

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


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  1  the Division of Hotels and Restaurants of the Department of

  2  Business and Professional Regulation, or any firm which does

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

  4  of tangible personal property or which does not use such

  5  machinery and equipment in spaceport activities as required by

  6  this paragraph. The exemptions provided in subparagraphs 1.

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

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

  9  processing operations only by way of a prospective credit

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

11  chapter on such machinery and equipment.

12         6.  For the purposes of the exemptions provided in

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

14  meanings:

15         a.  "Industrial machinery and equipment" means tangible

16  personal property or other property that has a depreciable

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

18  in the manufacturing, processing, compounding, or production

19  of tangible personal property for sale or is exclusively used

20  in spaceport activities. A building and its structural

21  components are not industrial machinery and equipment unless

22  the building or structural component is so closely related to

23  the industrial machinery and equipment that it houses or

24  supports that the building or structural component can be

25  expected to be replaced when the machinery and equipment are

26  replaced. Heating and air conditioning systems are not

27  industrial machinery and equipment unless the sole

28  justification for their installation is to meet the

29  requirements of the production process, even though the system

30  may provide incidental comfort to employees or serve, to an

31  insubstantial degree, nonproduction activities "section 38


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

  2  Internal Revenue Code, provided "industrial machinery and

  3  equipment" shall be construed by regulations adopted by the

  4  Department of Revenue to mean tangible property used as an

  5  integral part of spaceport activities or of the manufacturing,

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

  7  tangible personal property. The Such term includes parts and

  8  accessories only to the extent that the exemption thereof is

  9  consistent with the provisions of this paragraph.

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

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

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

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

14  continuous months immediately following the completion of

15  installation of such machinery or equipment over the output

16  for the 12 continuous months immediately preceding such

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

18  period of time would more accurately reflect the increase in

19  productive output of machinery and equipment purchased to

20  facilitate an expansion, the increase in productive output may

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

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

23  Revenue and the expanding business prior to the commencement

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

25  period begin later than 2 years following the completion of

26  installation of the new machinery and equipment. The units

27  used to measure productive output shall be physically

28  comparable between the two periods, irrespective of sales.

29         (d)  Machinery and equipment used under federal

30  procurement contract.--

31


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  1         1.  Industrial machinery and equipment purchased by an

  2  expanding business which manufactures tangible personal

  3  property pursuant to federal procurement regulations at fixed

  4  locations in this state are partially exempt from the tax

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

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

  7  showing by the taxpayer to the satisfaction of the department

  8  that such items are used to increase the implicit productive

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

10  The percentage of increase is measured as deflated implicit

11  productive output for the calendar year during which the

12  installation of the machinery or equipment is completed or

13  during which commencement of production utilizing such items

14  is begun divided by the implicit productive output for the

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

16  production begin later than 2 years following completion of

17  installation of the machinery or equipment.

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

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

20  per calendar year on qualifying industrial machinery or

21  equipment reduced by the percentage of gross receipts from

22  cost-reimbursement type contracts attributable to the plant or

23  operation to total gross receipts so attributable, accrued for

24  the year of completion or commencement.

25         3.  The exemption provided by this paragraph shall

26  inure to the taxpayer only through refund of previously paid

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

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

29  which application may be made on an annual basis following

30  installation of the machinery or equipment.

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


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

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

  3         b.  "Deflated implicit productive output" means the

  4  product of implicit productive output times the quotient of

  5  the national defense implicit price deflator for the preceding

  6  calendar year divided by the deflator for the year of

  7  completion or commencement.

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

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

10  excluding general and administrative costs, selling expenses,

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

12  adopted by the Cost-Accounting Standards Board created

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

14         d.  "Implicit productive output" means the annual

15  eligible costs attributable to all contracts or subcontracts

16  subject to federal procurement regulations of the single plant

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

18         e.  "Industrial machinery and equipment" means tangible

19  personal property or other property that has a depreciable

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

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

22  integral part of the process of production of tangible

23  personal property. A building and its structural components

24  are not industrial machinery and equipment unless the building

25  or structural component is so closely related to the

26  industrial machinery and equipment that it houses or supports

27  that the building or structural component can be expected to

28  be replaced when the machinery and equipment are replaced.

29  Heating and air conditioning systems are not industrial

30  machinery and equipment unless the sole justification for

31  their installation is to meet the requirements of the


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  1  production process, even though the system may provide

  2  incidental comfort to employees or serve, to an insubstantial

  3  degree, nonproduction activities "section 38 property" as

  4  defined in s. 48(a)(1)(A) and (B)(i) of the Internal Revenue

  5  Code, provided such industrial machinery and equipment

  6  qualified as an eligible cost under federal procurement

  7  regulations and are used as an integral part of the tangible

  8  personal property production process.  The Such term includes

  9  parts and accessories only to the extent that the exemption of

10  such parts and accessories is consistent with the provisions

11  of this paragraph.

12         f.  "National defense implicit price deflator" means

13  the national defense implicit price deflator for the gross

14  national product as determined by the Bureau of Economic

15  Analysis of the United States Department of Commerce.

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

17  to this exemption.  This exemption applies only to machinery

18  or equipment purchased pursuant to production contracts with

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

20  National Aeronautics and Space Administration, and other

21  federal agencies for which the contracts are classified for

22  national security reasons.  In no event shall the provisions

23  of this paragraph apply to any expanding business the increase

24  in productive output of which could be measured under the

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

26  comparable between the two periods.

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

28  picture or television production activities and sound

29  recording equipment used in the production of master tapes and

30  master records.--

31


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  1         1.  Motion picture or video equipment and sound

  2  recording equipment purchased or leased for use in this state

  3  in production activities is exempt from the tax imposed by

  4  this chapter. The exemption provided by this paragraph shall

  5  inure to the taxpayer upon presentation of the certificate of

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

  7  288.1258.

  8         2.  For the purpose of the exemption provided in

  9  subparagraph 1.:

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

11  recording equipment" includes only tangible personal property

12  or other property that has a depreciable life of 3 years or

13  more and equipment meeting the definition of "section 38

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

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

16  exclusively as an integral part of production activities;

17  however, motion picture or video equipment and sound recording

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

19  video tape used in productions or other similar items;

20  vehicles or vessels; or general office equipment not

21  specifically suited to production activities.  In addition,

22  the term does not include equipment purchased or leased by

23  television or radio broadcasting or cable companies licensed

24  by the Federal Communications Commission. Furthermore, a

25  building and its structural components are not motion picture

26  or video equipment and sound recording equipment unless the

27  building or structural component is so closely related to the

28  motion picture or video equipment and sound recording

29  equipment that it houses or supports that the building or

30  structural component can be expected to be replaced when the

31  motion picture or video equipment and sound recording


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  1  equipment are replaced. Heating and air conditioning systems

  2  are not motion picture or video equipment and sound recording

  3  equipment unless the sole justification for their installation

  4  is to meet the requirements of the production activities, even

  5  though the system may provide incidental comfort to employees

  6  or serve, to an insubstantial degree, nonproduction

  7  activities.

  8         b.  "Production activities" means activities directed

  9  toward the preparation of a:

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

11         (II)  Motion picture or television production which is

12  produced for theatrical, commercial, advertising, or

13  educational purposes and utilizes live or animated actions or

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

15  or television production shall be commercially produced for

16  sale or for showing on screens or broadcasting on television

17  and may be on film or video tape.

18         Section 19.  (1)  It is the intent of the Legislature

19  to provide guidance in tax matters which is current and

20  useful. Accordingly, the Legislature finds that continued

21  reference to a federal regulation that no longer exists causes

22  confusion and an undue burden on persons affected by section

23  212.08, Florida Statutes.

24         (2)  It is the purpose of the amendments made by this

25  act to section 212.08(5)(b), (d), and (f), Florida Statutes,

26  to replace specific references in such paragraphs to "section

27  38 property" as defined in s. 48(a)(1)(A) and (B)(i) of the

28  Internal Revenue Code with a general description of such

29  property, and such new description shall have the same meaning

30  as the former federal Internal Revenue Code regulation without

31  limitation.


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  1         Section 20.  Effective July 1, 2002, subsections (7)

  2  and (10) of section 212.08, Florida Statutes, are amended to

  3  read:

  4         212.08  Sales, rental, use, consumption, distribution,

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

  6  the rental, the use, the consumption, the distribution, and

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

  8  following are hereby specifically exempt from the tax imposed

  9  by this chapter.

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

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

12  that is otherwise taxable under this chapter when payment is

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

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

15  card, even when that representative or employee is

16  subsequently reimbursed by the entity. In addition, exemptions

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

18  transaction that is otherwise taxable under this chapter

19  unless the entity has obtained a sales tax exemption

20  certificate from the department or the entity obtains or

21  provides other documentation as required by the department.

22  Eligible purchases or leases made with such a certificate must

23  be in strict compliance with this subsection and departmental

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

25  certificate that is not in strict compliance with this

26  subsection and the rules is liable for and shall pay the tax.

27  The department may adopt rules to administer this subsection.

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

29  tax imposed by this chapter is the sale of artificial

30  commemorative flowers by bona fide nationally chartered

31  veterans' organizations.


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

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

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

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

  5  manufacturing, processing, compounding, or production process

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

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

  8  allowed unless the purchaser signs a certificate stating that

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

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

11  fuels that are not used in manufacturing, processing,

12  compounding, or producing items of tangible personal property

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

14  subject to regulation by the Division of Hotels and

15  Restaurants of the Department of Business and Professional

16  Regulation.

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

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

19  intended solely for use in the entrapment of Callinectes

20  sapidus and Menippe mercenaria.

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

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

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

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

25  and direct charges for films, videotapes, and transcriptions

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

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

28  United States and the official state flag of Florida.

29         (g)  Florida Retired Educators Association and its

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

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


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  1  and publications made by the Florida Retired Educators

  2  Association and its local chapters.

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

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

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

  6  for such guide dogs.

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

  8  of exemption to any blind person who holds an identification

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

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

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

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

13  capable of being carried in a wallet or billfold.

14         2.  The department shall make such rules concerning

15  items exempt from tax under the provisions of this paragraph

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

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

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

19  shall not be required to pay any tax thereon.

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

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

22  meals are patients and inmates of any hospital or other

23  physical plant or facility designed and operated primarily for

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

25  physically incapacitated, or otherwise dependent on special

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

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

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

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

30  651, or that is financed by a mortgage loan made or insured by

31  the United States Department of Housing and Urban Development


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

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

  3  similar facility designed and operated primarily for the care

  4  of the aged.

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

  6  tax imposed by this chapter are sales of utilities to

  7  residential households or owners of residential models in this

  8  state by utility companies who pay the gross receipts tax

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

10  households or owners of residential models, including oil,

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

12  products used in the household or residential model for the

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

14  regardless of whether such sales of utilities and fuels are

15  separately metered and billed direct to the residents or are

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

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

18  taxable. The landlord shall provide a separate meter for

19  nonexempt utility or fuel consumption.  For the purposes of

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

21  exempt.

22         (k)  Meals provided by certain nonprofit

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

24  chapter the sale of prepared meals by a nonprofit volunteer

25  organization to handicapped, elderly, or indigent persons when

26  such meals are delivered as a charitable function by the

27  organization to such persons at their places of residence.

28         (l)  Organizations providing special educational,

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

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

31  leases to and sales of donated property by nonprofit


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  1  organizations which are incorporated pursuant to chapter 617

  2  the primary purpose of which is providing activities that

  3  contribute to the development of good character or good

  4  sportsmanship, or to the educational or cultural development,

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

  6  the organization that has a salaried executive officer or an

  7  elected nonsalaried executive officer. For the purpose of this

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

  9  transferred to such nonprofit organization for less than 50

10  percent of its fair market value.

11         (m)  Religious institutions.--

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

13  chapter transactions involving sales or leases directly to

14  religious institutions when used in carrying on their

15  customary nonprofit religious activities or sales or leases of

16  tangible personal property by religious institutions having an

17  established physical place for worship at which nonprofit

18  religious services and activities are regularly conducted and

19  carried on.

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

21  institutions" means churches, synagogues, and established

22  physical places for worship at which nonprofit religious

23  services and activities are regularly conducted and carried

24  on. The term "religious institutions" includes nonprofit

25  corporations the sole purpose of which is to provide free

26  transportation services to church members, their families, and

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

28  includes nonprofit state, nonprofit district, or other

29  nonprofit governing or administrative offices the function of

30  which is to assist or regulate the customary activities of

31  religious institutions. The term "religious institutions" also


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  1  includes any nonprofit corporation that is qualified as

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

  3  1986, as amended, and that owns and operates a Florida

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

  5  which station consists of programs of a religious nature and

  6  the financial support for which, exclusive of receipts for

  7  broadcasting from other nonprofit organizations, is

  8  predominantly from contributions from the general public. The

  9  term "religious institutions" also includes any nonprofit

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

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

12  activity of which is making and distributing audio recordings

13  of religious scriptures and teachings to blind or visually

14  impaired persons at no charge. The term "religious

15  institutions" also includes any nonprofit corporation that is

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

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

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

19  services, evangelistic services, religious education,

20  administrative assistance, or missionary assistance for a

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

22  which nonprofit religious services and activities are

23  regularly conducted.

24         (n)  Veterans' organizations.--

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

26  chapter transactions involving sales or leases to qualified

27  veterans' organizations and their auxiliaries when used in

28  carrying on their customary veterans' organization activities.

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

30  organizations" means nationally chartered or recognized

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


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  1  Florida chapters of the Paralyzed Veterans of America,

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

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

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

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

  6  Code of 1986, as amended.

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

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

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

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

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

12  organizations determined by the Internal Revenue Service to be

13  currently exempt from federal income tax pursuant to s.

14  501(c)(3) of the Internal Revenue Code of 1986, as amended,

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

16  customary nonprofit activities.

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

18  resource recovery equipment which is owned and operated by or

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

20  Department of Environmental Protection under the provisions of

21  s. 403.715.

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

23  applies to school books used in regularly prescribed courses

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

25  or nonprofit schools operated for and attended by pupils of

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

27  directories, bulletins, and similar publications distributed

28  by such educational institutions to their students are also

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

30  colleges and other institutions of higher learning are

31  taxable.


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

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

  3  tasting" and "spirituous beverage tasting" as contemplated

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

  5  are exempt from the tax imposed by this chapter.

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

  7         1.  Notwithstanding the provisions of chapter 328,

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

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

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

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

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

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

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

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

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

17  alterations, refitting, or modifications and such repairs,

18  alterations, refitting, or modifications are supported by

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

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

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

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

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

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

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

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

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

28  repairs that arise from a written guarantee given by the

29  registered repair facility, which guarantee covers only those

30  repairs or modifications made during the first tolled period.

31  Within 72 hours after the date upon which the registered


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

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

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

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

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

  6  alterations, refitting, or modifications, the registered

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

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

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

10  department requires. The repair facility shall maintain a log

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

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

13  and control of the facility.  The affidavit shall be

14  maintained by the registered repair facility as part of its

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

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

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

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

19         2.  During the period of repairs, alterations,

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

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

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

23  dealer registered with the department without incurring a use

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

25  this chapter applies to such sale.

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

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

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

29  facility" means:

30         a.  A full-service facility that:

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


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

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

  3  care, custody, and control of the facility;

  4         (III)  Has adequate piers and storage facilities to

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

  6  control; and

  7         (IV)  Has necessary shops and equipment to provide

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

  9  and control of the facility;

10         b.  A marina that:

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

12         (II)  Has adequate piers and storage facilities to

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

14  control; and

15         (III)  Has necessary shops and equipment to provide

16  repairs or warranty work on vessels; or

17         c.  A shoreside facility that:

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

19         (II)  Has adequate piers and storage facilities to

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

21  control; and

22         (III)  Has necessary shops and equipment to provide

23  repairs or warranty work.

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

25  firefighting and rescue service equipment and supplies

26  purchased by volunteer fire departments, duly chartered under

27  the Florida Statutes as corporations not for profit.

28         (v)  Professional services.--

29         1.  Also exempted are professional, insurance, or

30  personal service transactions that involve sales as

31


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  1  inconsequential elements for which no separate charges are

  2  made.

  3         2.  The personal service transactions exempted pursuant

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

  5  services involving the furnishing of printed, mimeographed, or

  6  multigraphed matter, or matter duplicating written or printed

  7  matter in any other manner, other than professional services

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

  9  a representative or fiduciary capacity or information services

10  furnished to newspapers and radio and television stations.  As

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

12  includes the services of collecting, compiling, or analyzing

13  information of any kind or nature and furnishing reports

14  thereof to other persons.

15         3.  This exemption does not apply to any service

16  warranty transaction taxable under s. 212.0506.

17         4.  This exemption does not apply to any service

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

19         (w)  Certain newspaper, magazine, and newsletter

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

21  exempt are newspaper, magazine, and newsletter subscriptions

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

23  Also exempt are free, circulated publications that are

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

25  primarily advertising, and that are distributed through the

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

27  newspaper, magazine, and newsletter subscriptions which is

28  provided in this paragraph applies only to subscriptions

29  entered into after March 1, 1997.

30         (x)  Sporting equipment brought into the

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


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

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

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

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

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

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

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

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

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

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

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

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

13  and s. 212.05.

14         (z)  Vending machines sponsored by nonprofit or

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

16  human consumption sold for 25 cents or less through a

17  coin-operated vending machine sponsored by a nonprofit

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

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

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

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

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

23  met:

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

25  commonly owned and controlled corporations;

26         2.  Such vehicle was titled and registered in this

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

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

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

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

31  by any nonprofit corporation that has qualified under s.


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  1  501(c)(13) of the Internal Revenue Code of 1986, as amended,

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

  3  was donated to the community by deed.

  4         (cc)  Works of art.--

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

  6  educational institution.

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

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

  9  purchased or imported exclusively for the purpose of being

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

11  available for display by any educational institution, provided

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

13         3.  The exemption provided by this paragraph for

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

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

16  educational institution. Such transfer of title shall be

17  evidenced by an affidavit meeting requirements established by

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

19  paragraph shall preclude a work of art donated to an

20  educational institution from remaining in the possession of

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

22  lies with the educational institution.

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

24  or imported into this state exclusively for loan as provided

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

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

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

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

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

30  other than an educational institution.

31


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  1         5.  The exemptions provided by this paragraph are

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

  3  to the vendor an affidavit meeting the requirements,

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

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

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

  7  is issued to the vendor.

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

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

10  the possession of the educational institution or is in storage

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

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

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

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

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

16  donated to an educational institution after the loan ceases.

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

18  has been donated pursuant to this paragraph shall make

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

20  any other relevant information. Any educational institution

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

22  paragraph shall make available to the department information

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

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

25  paragraph which has been loaned to it must notify the

26  Department of Revenue within 60 days after the transfer.

27         8.  For purposes of the exemptions provided by this

28  paragraph, the term:

29         a.  "Educational institutions" includes state

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

31  schools, colleges, or universities that conduct regular


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  1  classes and courses of study required for accreditation by or

  2  membership in the Southern Association of Colleges and

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

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

  5  nonprofit private schools that conduct regular classes and

  6  courses of study accepted for continuing education credit by a

  7  board of the Division of Medical Quality Assurance of the

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

  9  performing arts centers that provide educational programs to

10  school children, which programs involve performances or other

11  educational activities at the performing arts center and serve

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

13  to the public.

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

15  sculpture, jewelry, antiques, stamp collections and coin

16  collections, and other tangible personal property, the value

17  of which is attributable predominantly to its artistic,

18  historical, political, cultural, or social importance.

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

20  taxicab or taxicab-related equipment and services provided by

21  a taxicab company to an independent taxicab operator are

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

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

24  acquisition of the taxicab and its related equipment.

25         (ee)  Aircraft repair and maintenance labor

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

27  chapter all labor charges for the repair and maintenance of

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

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

30  maximum certified takeoff weight. Except as otherwise provided

31


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

  2  connection with such labor charges are taxable.

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

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

  5  charges for electricity or steam used to operate machinery and

  6  equipment at a fixed location in this state when such

  7  machinery and equipment is used to manufacture, process,

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

  9  personal property for sale, or to operate pollution control

10  equipment, recycling equipment, maintenance equipment, or

11  monitoring or control equipment used in such operations are

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

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

14  is used to operate qualifying machinery or equipment, 100

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

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

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

18  location is used to operate qualifying machinery or equipment,

19  50 percent of the charges for electricity or steam used at the

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

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

22  operate qualifying machinery or equipment, none of the charges

23  for electricity or steam used at the fixed location are

24  exempt.

25         2.  This exemption applies only to industries

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

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

28  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

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

30  in the Standard Industrial Classification Manual, 1987, as

31


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  1  published by the Office of Management and Budget, Executive

  2  Office of the President.

  3         3.  Possession by a seller of a written certification

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

  5  exemption permitted by this subsection, relieves the seller

  6  from the responsibility of collecting the tax on the

  7  nontaxable amounts, and the department shall look solely to

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

  9  the purchaser was not entitled to the exemption.

10         4.  Such exemption shall be applied as follows:

11  beginning July 1, 2000, 100 percent of the charges for such

12  electricity or steam shall be exempt.

13         5.  Notwithstanding any other provision in this

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

15  provided in this paragraph a taxpayer must first register with

16  the WAGES Program Business Registry established by the local

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

18  Such registration establishes a commitment on the part of the

19  taxpayer to hire WAGES program participants to the maximum

20  extent possible consistent with the nature of their business.

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

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

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

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

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

26  admissions, or for temporary parking of vehicles used for

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

28  or tangible personal property between the owner of the central

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

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

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


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  1  exposition; and other transactions of a fair association which

  2  are incurred directly by the fair association in the

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

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

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

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

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

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

  9  association through an agent or independent contractor; sales

10  of admissions and tangible personal property by a

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

12  subleases of tangible personal property or real property

13  between the owner of the central amusement attraction and a

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

15  furnishing of amusement rides, which transactions are exempt.

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

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

18  nonprofit organizations that are incorporated under chapter

19  617 and that have been designated citizen support

20  organizations in support of state-funded environmental

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

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

23  accordance with s. 258.015.

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

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

26  nature received from admissions to the Florida Folk Festival

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

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

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

30  energy systems or any component thereof.  The Florida Solar

31  Energy Center shall from time to time certify to the


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  1  department a list of equipment and requisite hardware

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

  3  This exemption is repealed July 1, 2005.

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

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

  6  leases to nonprofit organizations that are incorporated under

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

  8  purposes, as cooperatives under subchapter T of the Internal

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

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

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

12  Internal Revenue Code.

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

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

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

16  rent or lease any transient living accommodations as described

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

18  509 and which are subject to the tax under s. 212.03, if a

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

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

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

22  accommodations. Moreover, the person offering the

23  accommodations is not considered to be the consumer of items

24  purchased in furnishing such food or drinks and may purchase

25  those items under conditions of a sale for resale.

26         (mm)  Nonprofit corporation conducting the correctional

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

28  corporation organized pursuant to part II of chapter 946 are

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

30  applies retroactively to July 1, 1983.

31


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

  2  associations, and schools having grades K through 12.--

  3         1.  Sales or leases to parent-teacher organizations and

  4  associations the purpose of which is to raise funds for

  5  schools that teach grades K through 12 and that are associated

  6  with schools having grades K through 12 are exempt from the

  7  tax imposed by this chapter.

  8         2.  Parent-teacher organizations and associations

  9  described in subparagraph 1. qualified as educational

10  institutions as defined by sub-subparagraph (cc)8.a.

11  associated with schools having grades K through 12, and

12  schools having grades K through 12, may pay tax to their

13  suppliers on the cost price of school materials and supplies

14  purchased, rented, or leased for resale or rental to students

15  in grades K through 12, of items sold for fundraising

16  purposes, and of items sold through vending machines located

17  on the school premises, in lieu of collecting the tax imposed

18  by this chapter from the purchaser. This paragraph also

19  applies to food or beverages sold through vending machines

20  located in the student lunchroom or dining room of a school

21  having kindergarten through grade 12.

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

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

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

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

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

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

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

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

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

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


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

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

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

  4  the dealer by the Veterans Administration is not taxable.

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

  6  directly to the dealer by the veteran is taxable.

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

  8  tax imposed by this chapter:

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

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

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

12  sells food product items at retail.

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

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

15  that primarily sells food products at retail.

16

17  The exemptions in this paragraph do not apply to businesses

18  with the primary activity of serving prepared meals or

19  alcoholic beverages for immediate consumption.

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

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

22  food bank or an organization that holds a current exemption

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

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

25  tax imposed by this chapter.

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

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

28  animal.

29         (tt)  Equipment used in aircraft repair and

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

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


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

  2  pounds maximum certified takeoff weight and rotary wing

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

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

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

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

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

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

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

10  "common carrier" means an airline operating under Federal

11  Aviation Administration regulations contained in Title 14,

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

13  Regulations.

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

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

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

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

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

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

20  system in this state.

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

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

23  tax imposed by this chapter.

24         (xx)  Advertising agencies.--

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

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

27  business of providing advertising materials and services to

28  its clients.

29         2.  The sale of advertising services by an advertising

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

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


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  1  items of tangible personal property such as photographic

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

  3  veloxes, illustrations, digital audiotapes, analog tapes,

  4  printed advertisement copies, compact discs for the purpose of

  5  recording, digital equipment, and artwork and the services

  6  used to produce those items if the items are:

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

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

  9  for the performance of advertising services for the clients;

10         b.  Produced, fabricated, manufactured, or otherwise

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

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

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

14  performance of advertising services for the clients, whether

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

16  stated.

17

18  The exemption provided by this subparagraph does not apply

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

20  videotapes is purchased to create items such as photographic

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

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

23  advertising agency or produced in-house by an advertising

24  agency on behalf of its clients.

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

26  and the creative services used by an advertising agency to

27  design the advertising for promotional goods such as displays,

28  display containers, exhibits, newspaper inserts, brochures,

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

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

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


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  1  produced or reproduced for distribution, tax applies to the

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

  3         4.  For items purchased by an advertising agency and

  4  exempt from tax under this paragraph, possession of an

  5  exemption certificate from the advertising agency certifying

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

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

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

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

10  determines that the advertising agency was not entitled to the

11  exemption.

12         5.  The exemptions provided by this paragraph apply

13  retroactively, except that all taxes that have been collected

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

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

16  under this paragraph are not subject to refund.

17         6.  The department may adopt rules that interpret or

18  define the provisions of these exemptions and provide examples

19  regarding the application of these exemptions.

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

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

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

23  maintain proper documentation, as prescribed by rule of the

24  department, to identify that portion of a transaction which

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

26  exempt under this paragraph.

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

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

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

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

31  in the repair of and incorporated into, industrial machinery


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

  2  compounding, production, or preparation for shipping of items

  3  of tangible personal property at a fixed location within this

  4  state.

  5         2.  This exemption applies only to industries

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

  7  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

  8  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

  9  in this subparagraph, "SIC" means those classifications

10  contained in the Standard Industrial Classification Manual,

11  1987, as published by the Office of Management and Budget,

12  Executive Office of the President.

13         3.  This exemption shall be applied as follows:

14         a.  Beginning July 1, 2000, 50 percent of such charges

15  for repair parts and labor shall be exempt.

16         b.  Beginning July 1, 2001, 75 percent of such charges

17  for repair parts and labor shall be exempt.

18         c.  Beginning July 1, 2002, 100 percent of such charges

19  for repair parts and labor shall be exempt.

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

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

22  businesses classified under SIC Industry Numbers 275, 276,

23  277, 278, or 279 for use in producing graphic matter for sale:

24  film, photographic paper, dyes used for embossing and

25  engraving, artwork, typography, lithographic plates, and

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

27  classifications contained in the Standard Industrial

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

29  Management and Budget, Executive Office of the President.

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

31  parts thereof, which are purchased or manufactured by


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  1  contractors employed either directly by or as agents for the

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

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

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

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

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

  7  In the case of contractors who manufacture and install such

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

  9  component parts and all other manufacturing and fabrication

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

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

12  parts to certify the contractors' eligibility for the

13  exemption provided under this paragraph. As used in this

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

15  vehicles and related control and power distribution systems

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

17  general public, regardless of whether such vehicles are

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

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

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

21  integral part of such transportation system. "Related control

22  and power distribution systems" includes any electrical or

23  electronic control or signaling equipment, but does not

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

25  transmit electrical or electronic signals among such control

26  equipment, power distribution equipment, signaling equipment,

27  and wheeled vehicles.

28         (ccc)  Organizations providing crime prevention, drunk

29  driving prevention, or juvenile delinquency prevention

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

31  provides crime prevention services, drunk driving prevention


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  1  services, or juvenile delinquency prevention services that

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

  3  this chapter, if the organization holds a current exemption

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

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

  6  purpose the provision of services that contribute to the

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

  8  juvenile delinquency.

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

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

11  Services Foundation are exempt from the tax imposed by this

12  chapter.

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

14  from the tax imposed by this chapter are railroad roadway

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

16  railways. Railroad roadway materials shall include rails,

17  ties, ballasts, communication equipment, signal equipment,

18  power transmission equipment, and any other track materials.

19

20  Exemptions provided to any entity by this subsection shall not

21  inure to any transaction otherwise taxable under this chapter

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

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

24  check, or credit card even when that representative or

25  employee is subsequently reimbursed by such entity.

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

27  OF ANOTHER STATE.--

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

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

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

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


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

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

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

  4  notarized statement of his or her intent to license the

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

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

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

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

  9  submit the statement to the appropriate sales tax collection

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

11  subsection shall be construed to require the removal of the

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

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

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

15  45 days after the date of sale.

16         (b)  Notwithstanding the partial exemption allowed in

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

18  at the applicable state sales tax rate plus authorized

19  surtaxes when the vehicle is purchased by a nonresident

20  corporation or partnership and:

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

22  state;

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

24  10 percent of the corporation is a resident of this state; or

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

26  percent ownership is a resident of this state.

27

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

29  days after purchase and remains outside the state for a

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

31


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

  2  owners or stockholders of the purchasing entity.

  3         (c)  Nothing herein shall require the payment of tax to

  4  the State of Florida for assessments made prior to July 1,

  5  2001, if the tax imposed by this section has been paid to the

  6  state in which the vehicle was licensed and the department has

  7  assessed a like amount of tax on the same transactions. This

  8  provision shall apply retroactively to assessments that have

  9  been protested prior to August 1, 1999, and have not been paid

10  on the date this act takes effect.

11         Section 21.  (1)  The amendments made by this act to

12  section 212.08(7)(ff) and (nn), Florida Statutes, shall

13  operate retroactively to July 1, 2000.

14         (2)  No tax imposed by chapter 212, Florida Statutes,

15  on the transactions exempted by section 212.08(7)(nn), Florida

16  Statutes, by this act, and not actually paid or collected by a

17  taxpayer before the effective date of this act, shall be due

18  from such taxpayer. However, any tax actually paid or

19  collected shall be remitted to the Department of Revenue and

20  no refund shall be due. Taxpayers must obtain a sales tax

21  exemption certificate from the department to secure the

22  exemption granted by section 212.08(7)(nn)1., Florida

23  Statutes.

24         (3)  The amendments made by this act to the

25  introductory paragraph and to the final, flush-left passage of

26  section 212.08(7), Florida Statutes, are made to clarify

27  rather than change existing law and shall operate

28  retroactively to January 1, 2001.

29         Section 22.  Paragraph (a) of subsection (8) and

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

31  amended to read:


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  1         212.08  Sales, rental, use, consumption, distribution,

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

  3  the rental, the use, the consumption, the distribution, and

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

  5  following are hereby specifically exempt from the tax imposed

  6  by this chapter.

  7         (8)  PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE

  8  OR FOREIGN COMMERCE.--

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

10  to transport persons or property in interstate or foreign

11  commerce, including commercial fishing vessels, is subject to

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

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

14  mileage to interstate or foreign mileage traveled by the

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

16  commerce and which had at least some Florida mileage during

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

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

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

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

21  determined on the basis of an estimated ratio of anticipated

22  miles in this state to anticipated total miles for that year

23  and, subsequently, additional tax shall be paid on the vessel,

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

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

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

27  total Florida purchases of such vessels and parts thereof

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

29  total used and consumed in intrastate movement and subject to

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

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


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

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

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

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

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

  6  to transport persons or property in interstate and foreign

  7  commerce are hereby determined to be susceptible to a distinct

  8  and separate classification for taxation under the provisions

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

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

11         (9)  PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES

12  ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.--

13         (a)  Railroads that which are licensed as common

14  carriers by the Surface Transportation Board Interstate

15  Commerce Commission and parts thereof used to transport

16  persons or property in interstate or foreign commerce are

17  subject to tax imposed in this chapter only to the extent

18  provided herein. The basis of the tax shall be the ratio of

19  intrastate mileage to interstate or foreign mileage traveled

20  by the carrier during the previous fiscal year of the carrier.

21  Such ratio is to be determined at the close of the carrier's

22  fiscal year.  However, during the fiscal year in which the

23  railroad begins its initial operations in this state, the

24  railroad's mileage apportionment factor may be determined on

25  the basis of an estimated ratio of anticipated miles in this

26  state to anticipated total miles for that year and,

27  subsequently, additional tax shall be paid on the railroad, or

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

29  of the railroad's miles in this state to its total miles for

30  that year. This ratio shall be applied each month to the total

31  purchases of the railroad in this state which are used in this


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  1  state to establish that portion of the total used and consumed

  2  in intrastate movement and subject to tax under this chapter.

  3  The basis for imposition of any discretionary surtax is set

  4  forth in s. 212.054. Railroads that which are licensed as

  5  common carriers by the Surface Transportation Board Interstate

  6  Commerce Commission and parts thereof used to transport

  7  persons or property in interstate and foreign commerce are

  8  hereby determined to be susceptible to a distinct and separate

  9  classification for taxation under the provisions of this

10  chapter.

11         (b)  Motor vehicles that which are engaged in

12  interstate commerce as common carriers, and parts thereof,

13  used to transport persons or property in interstate or foreign

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

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

16  ratio of intrastate mileage to interstate or foreign mileage

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

18  interstate or foreign commerce and which had at least some

19  Florida mileage during the previous fiscal year of the

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

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

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

23  the carrier's mileage apportionment factor may be determined

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

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

26  subsequently, additional tax shall be paid on the carrier, or

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

28  of the carrier's miles in this state to its total miles for

29  that year. This ratio shall be applied each month to the total

30  purchases in this state of such motor vehicles and parts

31  thereof which are used in this state to establish that portion


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  1  of the total used and consumed in intrastate movement and

  2  subject to tax under this chapter. The basis for imposition of

  3  any discretionary surtax is set forth in s. 212.054. Motor

  4  vehicles that which are engaged in interstate commerce, and

  5  parts thereof, used to transport persons or property in

  6  interstate and foreign commerce are hereby determined to be

  7  susceptible to a distinct and separate classification for

  8  taxation under the provisions of this chapter. Motor vehicles

  9  and parts thereof used exclusively in intrastate commerce do

10  not qualify for the proration of tax.  For purposes of this

11  paragraph, parts of a motor vehicle engaged in interstate

12  commerce include a separate tank not connected to the fuel

13  supply system of the motor vehicle into which diesel fuel is

14  placed to operate a refrigeration unit or other equipment.

15         Section 23.  Paragraphs (a) and (d) of subsection (1)

16  and paragraph (i) of subsection (3) of section 212.096,

17  Florida Statutes, are amended to read:

18         212.096  Sales, rental, storage, use tax; enterprise

19  zone jobs credit against sales tax.--

20         (1)  For the purposes of the credit provided in this

21  section:

22         (a)  "Eligible business" means any sole proprietorship,

23  firm, partnership, corporation, bank, savings association,

24  estate, trust, business trust, receiver, syndicate, or other

25  group or combination, or successor business, located in an

26  enterprise zone. The business must demonstrate to the

27  department that the total number of full-time jobs defined

28  under paragraph (d) has increased from the average of the

29  previous 12 months. The term "eligible business" includes A

30  business that created added a minimum of five new full-time

31  jobs in an enterprise zone between July 1, 2000, and December


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  1  31, 2001, is also an eligible business for purposes of the

  2  credit provided beginning January 1, 2002. An eligible

  3  business does not include any business which has claimed the

  4  credit permitted under s. 220.181 for any new business

  5  employee first beginning employment with the business after

  6  July 1, 1995.

  7         (d)  "Jobs" means full-time positions, as consistent

  8  with terms used by the Agency for Workforce Innovation and the

  9  United States Department of Labor for purposes of unemployment

10  compensation tax administration and employment estimation

11  resulting directly from a business operation in this state.

12  These terms This number may not include temporary construction

13  jobs involved with the construction of facilities or any jobs

14  that have previously been included in any application for tax

15  credits under s. 220.181(1). The term "jobs" also includes

16  employment of an employee leased from an employee leasing

17  company licensed under chapter 468 if such employee has been

18  continuously leased to the employer for an average of at least

19  36 hours per week for more than 6 months.

20

21  A person shall be deemed to be employed if the person performs

22  duties in connection with the operations of the business on a

23  regular, full-time basis, provided the person is performing

24  such duties for an average of at least 36 hours per week each

25  month. The person must be performing such duties at a business

26  site located in the enterprise zone.

27         (3)  In order to claim this credit, an eligible

28  business must file under oath with the governing body or

29  enterprise zone development agency having jurisdiction over

30  the enterprise zone where the business is located, as

31  applicable, a statement which includes:


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  1         (i)  All applications for a credit pursuant to this

  2  section must be submitted to the department within 6 months

  3  after the new employee is hired, except applications for

  4  credit for leased employees. Applications for credit for

  5  leased employees must be submitted to the department within 7

  6  months after the employee is leased.

  7         Section 24.  Subsections (2) and (3) and paragraph (d)

  8  of subsection (6) of section 212.098, Florida Statutes, are

  9  amended to read:

10         212.098  Rural Job Tax Credit Program.--

11         (2)  A new eligible business may apply for a tax credit

12  under this subsection once at any time during its first year

13  of operation. A new eligible business in a tier-one qualified

14  area that has at least 10 qualified employees on the date of

15  application shall receive a $1,000 tax credit for each such

16  employee.

17         (3)  An existing eligible business may apply for a tax

18  credit under this subsection at any time it is entitled to

19  such credit, except as restricted by this subsection. An

20  existing eligible business with fewer than 50 employees in a

21  qualified area that on the date of application has at least 20

22  percent more qualified employees than it had 1 year prior to

23  its date of application shall receive a $1,000 tax credit for

24  each such additional employee. An existing eligible business

25  that has 50 employees or more in a qualified area that, on the

26  date of application, has at least 10 more qualified employees

27  than it had 1 year prior to its date of application shall

28  receive a $1,000 tax credit for each additional employee. Any

29  existing eligible business that received a credit under

30  subsection (2) may not apply for the credit under this

31


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  1  subsection sooner than 12 months after the application date

  2  for the credit under subsection (2).

  3         (6)

  4         (d)  A business may not receive more than $500,000 of

  5  tax credits under this section during any one calendar year

  6  for its efforts in creating jobs.

  7         Section 25.  Subsection (5) is added to section 212.11,

  8  Florida Statutes, to read:

  9         212.11  Tax returns and regulations.--

10         (5)(a)  Each dealer that claims any credits granted in

11  this chapter against that dealer's sales and use tax

12  liabilities shall submit to the department, upon request,

13  documentation that provides all of the information required to

14  verify the dealer's entitlement to such credits, excluding

15  credits authorized pursuant to the provisions of s. 212.17.

16  All information must be broken down as prescribed by the

17  department and shall be submitted in a manner that enables the

18  department to verify that the credits are allowable by law.

19  With respect to any credit that is granted in the form of a

20  refund of previously paid taxes, supporting documentation must

21  be provided with the application for refund and the penalty

22  provisions of paragraph (c) do not apply.

23         (b)  The department shall adopt rules regarding the

24  forms and documentation required to verify credits against

25  sales and use tax liabilities and the format in which

26  documentation is to be submitted, which format may include

27  magnetic tape or other means of electronic transmission.

28         (c)  The department shall disallow any credit that is

29  not supported by the information required under this

30  subsection. In addition, the disallowed credit or any part of

31  the credit disallowed is subject to a mandatory penalty of 25


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  1  percent and interest as provided for in s. 212.12. A specific

  2  penalty of 25 percent of the otherwise available credit shall

  3  be applied to any credit for which the required information

  4  report is not received within 30 days after a written request

  5  from the department.

  6         Section 26.  Subsection (14) is added to section

  7  212.12, Florida Statutes, to read:

  8         212.12  Dealer's credit for collecting tax; penalties

  9  for noncompliance; powers of Department of Revenue in dealing

10  with delinquents; brackets applicable to taxable transactions;

11  records required.--

12         (14)  If it is determined upon audit that a dealer has

13  collected and remitted taxes by applying the applicable tax

14  rate to each transaction as described in subsection (9) and

15  rounding the tax due to the nearest whole cent rather than

16  applying the appropriate bracket system provided by law or

17  department rule, the dealer shall not be held liable for

18  additional tax, penalty, and interest resulting from such

19  failure if:

20         (a)  The dealer acted in a good faith belief that

21  rounding to the nearest whole cent was the proper method of

22  determining the amount of tax due on each taxable transaction.

23         (b)  The dealer timely reported and remitted all taxes

24  collected on each taxable transaction.

25         (c)  The dealer agrees in writing to future compliance

26  with the laws and rules concerning brackets applicable to the

27  dealer's transactions.

28         Section 27.  It is the intent of the Legislature that

29  the amendment made by this act to add subsection (14) to

30  section 212.12, Florida Statutes, applies to all pending sales

31  and use tax audits or other actions or inquiries, including


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  1  those currently under protest or in litigation. The amendment

  2  made by this act to add subsection (14) to section 212.12,

  3  Florida Statutes, does not create any right to refund for

  4  taxes previously assessed and paid in regard to audits or

  5  other actions or inquiries that are no longer pending.

  6         Section 28.  Effective January 1, 2003, paragraph (c)

  7  of subsection (6) of section 212.12, Florida Statutes, is

  8  amended to read:

  9         212.12  Dealer's credit for collecting tax; penalties

10  for noncompliance; powers of Department of Revenue in dealing

11  with delinquents; brackets applicable to taxable transactions;

12  records required.--

13         (6)

14         (c)1.  If the records of a dealer are adequate but

15  voluminous in nature and substance, the department may sample

16  such records, except for fixed assets, and project the audit

17  findings derived therefrom over the entire audit period to

18  determine the proportion that taxable retail sales bear to

19  total retail sales or the proportion that taxable purchases

20  bear to total purchases. In order to conduct such a sample,

21  the department must first make a good faith effort to reach an

22  agreement with the dealer, which agreement provides for the

23  means and methods to be used in the sampling process.  In the

24  event that no agreement is reached, the dealer is entitled to

25  a review by the executive director.

26         2.  For the purposes of sampling pursuant to

27  subparagraph 1., the department shall project any deficiencies

28  and overpayments derived therefrom over the entire audit

29  period. In determining the dealer's compliance, the department

30  shall reduce any tax deficiency as derived from the sample by

31  the amount of any overpayment derived from the sample. In the


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  1  event the department determines from the sample results that

  2  the dealer has a net tax overpayment, the department shall

  3  provide the findings of this overpayment to the Comptroller

  4  for repayment of funds paid into the State Treasury through

  5  error pursuant to s. 215.26.

  6         3.a.  A taxpayer is entitled, both in connection with

  7  an audit and in connection with an application for refund

  8  filed independently of any audit, to establish the amount of

  9  any refund or deficiency through statistical sampling when the

10  taxpayer's records, other than those regarding fixed assets,

11  are adequate but voluminous. Alternatively, a taxpayer is

12  entitled to establish any refund or deficiency through any

13  other sampling method agreed upon by the taxpayer and the

14  department when the taxpayer's records, other than those

15  regarding fixed assets, are adequate but voluminous. Whether

16  done through statistical sampling or any other sampling method

17  agreed upon by the taxpayer and the department, the completed

18  sample must reflect both overpayments and underpayments of

19  taxes due. The sample shall be conducted through:

20         (I)  A taxpayer request to perform the sampling through

21  the certified audit program pursuant to s. 213.285;

22         (II)  Attestation by a certified public accountant as

23  to the adequacy of the sampling method utilized and the

24  results reached using such sampling method; or

25         (III)  A sampling method that has been submitted by the

26  taxpayer and approved by the department before a refund claim

27  is submitted. This sub-sub-subparagraph does not prohibit a

28  taxpayer from filing a refund claim prior to approval by the

29  department of the sampling method; however, a refund claim

30  submitted before the sampling method has been approved by the

31  department cannot be a complete refund application pursuant to


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  1  s. 213.255 until the sampling method has been approved by the

  2  department.

  3         b.  The department shall prescribe by rule the

  4  procedures to be followed under each method of sampling. Such

  5  procedures shall follow generally accepted auditing procedures

  6  for sampling. The rule shall also set forth other criteria

  7  regarding the use of sampling, including, but not limited to,

  8  training requirements that must be met before a sampling

  9  method may be utilized and the steps necessary for the

10  department and the taxpayer to reach agreement on a sampling

11  method submitted by the taxpayer for approval by the

12  department.

13         Section 29.  Paragraph (a) of subsection (3) of section

14  212.18, Florida Statutes, is amended to read:

15         212.18  Administration of law; registration of dealers;

16  rules.--

17         (3)(a)  Every person desiring to engage in or conduct

18  business in this state as a dealer, as defined in this

19  chapter, or to lease, rent, or let or grant licenses in living

20  quarters or sleeping or housekeeping accommodations in hotels,

21  apartment houses, roominghouses, or tourist or trailer camps

22  that are subject to tax under s. 212.03, or to lease, rent, or

23  let or grant licenses in real property, as defined in this

24  chapter, and every person who sells or receives anything of

25  value by way of admissions, must file with the department an

26  application for a certificate of registration for each place

27  of business, showing the names of the persons who have

28  interests in such business and their residences, the address

29  of the business, and such other data as the department may

30  reasonably require. However, owners and operators of vending

31  machines or newspaper rack machines are required to obtain


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  1  only one certificate of registration for each county in which

  2  such machines are located. The department, by rule, may

  3  authorize a dealer that uses independent sellers to sell its

  4  merchandise to remit tax on the retail sales price charged to

  5  the ultimate consumer in lieu of having the independent seller

  6  register as a dealer and remit the tax. The department may

  7  appoint the county tax collector as the department's agent to

  8  accept applications for registrations. The application must be

  9  made to the department before the person, firm, copartnership,

10  or corporation may engage in such business, and it must be

11  accompanied by a registration fee of $5. However, a

12  registration fee is not required to accompany an application

13  to engage in or conduct business to make mail order sales. The

14  department may waive the registration fee for applications

15  submitted through the department's Internet registration

16  process.

17         Section 30.  Section 213.015, Florida Statutes, is

18  amended to read:

19         213.015  Taxpayer rights.--There is created a Florida

20  Taxpayer's Bill of Rights to guarantee that the rights,

21  privacy, and property of Florida taxpayers are adequately

22  safeguarded and protected during tax assessment, collection,

23  and enforcement processes administered under the revenue laws

24  of this state.  The Taxpayer's Bill of Rights compiles, in one

25  document, brief but comprehensive statements which explain, in

26  simple, nontechnical terms, the rights and obligations of the

27  Department of Revenue and taxpayers. Section 192.0105 provides

28  additional rights afforded to payors of property taxes and

29  assessments. The rights afforded taxpayers to ensure assure

30  that their privacy and property are safeguarded and protected

31  during tax assessment and collection are available only


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  1  insofar as they are implemented in other parts of the Florida

  2  Statutes or rules of the Department of Revenue. The rights so

  3  guaranteed Florida taxpayers in the Florida Statutes and the

  4  departmental rules are:

  5         (1)  The right to available information and prompt,

  6  accurate responses to questions and requests for tax

  7  assistance.

  8         (2)  The right to request assistance from a taxpayers'

  9  rights advocate of the department, who shall be responsible

10  for facilitating the resolution of taxpayer complaints and

11  problems not resolved through the normal administrative

12  channels within the department, including any taxpayer

13  complaints regarding unsatisfactory treatment by department

14  employees.  The taxpayers' rights advocate may issue a stay

15  order if a taxpayer has suffered or is about to suffer

16  irreparable loss as a result of an action by the department

17  (see ss. 20.21(3) and 213.018).

18         (3)  The right to be represented or advised by counsel

19  or other qualified representatives at any time in

20  administrative interactions with the department, the right to

21  procedural safeguards with respect to recording of interviews

22  during tax determination or collection processes conducted by

23  the department, the right to be treated in a professional

24  manner by department personnel, and the right to have audits,

25  inspections of records, and interviews conducted at a

26  reasonable time and place except in criminal and internal

27  investigations (see ss. 198.06, 199.218, 201.11(1), 203.02,

28  206.14, 211.125(3), 211.33(3), 212.0305(3), 212.12(5)(a),

29  (6)(a), and (13), 212.13(5), 213.05, 213.21(1)(a) and (c), and

30  213.34).

31


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  1         (4)  The right to freedom from penalty attributable to

  2  any taxes administered by the Department of Revenue; freedom

  3  from payment of uncollected sales, use, motor or diesel fuel,

  4  or other transaction-based excise taxes administered by the

  5  Department of Revenue; and to abatement of interest

  6  attributable to any taxes administered by the Department of

  7  Revenue, when the taxpayer reasonably relies upon binding

  8  written advice furnished to the taxpayer by the department

  9  through authorized representatives in response to the

10  taxpayer's specific written request which provided adequate

11  and accurate information (see ss. 120.565 and 213.22).

12         (5)  The right to obtain simple, nontechnical

13  statements which explain the reason for audit selection and

14  the procedures, remedies, and rights available during audit,

15  appeals, and collection proceedings, including, but not

16  limited to, the rights pursuant to this Taxpayer's Bill of

17  Rights and the right to be provided with a narrative

18  description which explains the basis of audit changes,

19  proposed assessments, assessments, and denials of refunds;

20  identifies any amount of tax, interest, or penalty due; and

21  states the consequences of the taxpayer's failure to comply

22  with the notice.

23         (6)  The right to be informed of impending collection

24  actions which require sale or seizure of property or freezing

25  of assets, except jeopardy assessments, and the right to at

26  least 30 days' notice in which to pay the liability or seek

27  further review (see ss. 198.20, 199.262, 201.16, 206.075,

28  206.24, 211.125(5), 212.03(5), 212.0305(3)(j), 212.04(7),

29  212.14(1), 213.73(3), 213.731, and 220.739).

30         (7)  The right to have all other collection actions

31  attempted before a jeopardy assessment unless delay will


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  1  endanger collection and, after a jeopardy assessment, the

  2  right to have an immediate review of the jeopardy assessment

  3  (see ss. 212.15, 213.73(3), 213.732, and 220.719(2)).

  4         (8)  The right to seek review, through formal or

  5  informal proceedings, of any adverse decisions relating to

  6  determinations in the audit or collections processes and the

  7  right to seek a reasonable administrative stay of enforcement

  8  actions while the taxpayer pursues other administrative

  9  remedies available under Florida law (see ss. 120.80(14)(b),

10  213.21(1), 220.717, and 220.719(2)).

11         (9)  The right to have the taxpayer's tax information

12  kept confidential unless otherwise specified by law (see s.

13  213.053).

14         (10)  The right to procedures for retirement of tax

15  obligations by installment payment agreements which recognize

16  both the taxpayer's financial condition and the best interests

17  of the state, provided that the taxpayer gives accurate,

18  current information and meets all other tax obligations on

19  schedule (see s. 213.21(4)).

20         (11)  The right to procedures for requesting

21  cancellation, release, or modification of liens filed by the

22  department and for requesting that any lien which is filed in

23  error be so noted on the lien cancellation filed by the

24  department, in public notice, and in notice to any credit

25  agency at the taxpayer's request (see ss. 198.22, 199.262,

26  212.15(4), 213.733, and 220.819).

27         (12)  The right to procedures which assure that the

28  individual employees of the department are not paid,

29  evaluated, or promoted on the basis of the amount of

30  assessments or collections from taxpayers (see s. 213.30(2)).

31


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  1         (13)  The right to an action at law within the

  2  limitations of s. 768.28, relating to sovereign immunity, to

  3  recover damages against the state or the Department of Revenue

  4  for injury caused by the wrongful or negligent act or omission

  5  of a department officer or employee (see s. 768.28).

  6         (14)  The right of the taxpayer or the department, as

  7  the prevailing party in a judicial or administrative action

  8  brought or maintained without the support of justiciable

  9  issues of fact or law, to recover all costs of the

10  administrative or judicial action, including reasonable

11  attorney's fees, and of the department and taxpayer to settle

12  such claims through negotiations (see ss. 57.105 and 57.111).

13         (15)  The right to have the department begin and

14  complete its audits in a timely and expeditious manner after

15  notification of intent to audit (see s. 95.091).

16         (16)  The right to have the department actively

17  identify and review multistate proposals that offer more

18  efficient and effective methods for administering the revenue

19  sources of this state (see s. 213.256).

20         (17)  The right to have the department actively

21  investigate and, where appropriate, implement automated or

22  electronic business methods that enable the department to more

23  efficiently and effectively administer the revenue sources of

24  this state at less cost and effort for taxpayers.

25         (18)  The right to waiver of interest that accrues as

26  the result of errors or delays caused by a department employee

27  (see s. 213.21(3)).

28         (19)  The right to participate in free educational

29  activities that help the taxpayer successfully comply with the

30  revenue laws of this state.

31


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  1         (20)  The right to pay a reasonable fine or percentage

  2  of tax, whichever is less, to reinstate an exemption from any

  3  tax which a taxpayer would have been entitled to receive but

  4  which was lost because the taxpayer failed to properly

  5  register as a tax dealer in this state or obtain the necessary

  6  certificates entitling the taxpayer to the exemption (see s.

  7  212.07(9)).

  8         (21)  The right to fair and consistent application of

  9  the tax laws of this state by the Department of Revenue.

10         Section 31.  Subsection (3) and paragraphs (n) and (r)

11  of subsection (7) of section 213.053, Florida Statutes, are

12  amended, and paragraph (w) is added to subsection (7) of said

13  section, to read:

14         213.053  Confidentiality and information sharing.--

15         (3)  The department shall permit a taxpayer, his or her

16  authorized representative, or the personal representative of

17  an estate to inspect the taxpayer's return and may furnish him

18  or her an abstract of such return.  A taxpayer may authorize

19  the department in writing to divulge specific information

20  concerning the taxpayer's account. The department, while

21  performing unemployment compensation tax collection services

22  pursuant to a contract with the Agency for Workforce

23  Innovation, may release unemployment tax rate information to

24  the agent of an employer, which agent provides payroll

25  services for more than 500 employers, pursuant to the terms of

26  a memorandum of understanding.  The memorandum of

27  understanding shall state that the agent affirms, subject to

28  the criminal penalties contained in ss. 443.171 and 443.1715,

29  that the agent will retain the confidentiality of the

30  information, that the agent has in effect a power of attorney

31  from the employer which permits the agent to obtain


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  1  unemployment tax rate information, and that the agent shall

  2  provide the department with a copy of the employer's power of

  3  attorney upon request.

  4         (7)  Notwithstanding any other provision of this

  5  section, the department may provide:

  6         (n)  Information contained in returns, reports,

  7  accounts, or declarations to the Board of Accountancy in

  8  connection with a disciplinary proceeding conducted pursuant

  9  to chapter 473 when related to a certified public accountant

10  participating in the certified audits project, or to the court

11  in connection with a civil proceeding brought by the

12  department relating to a claim for recovery of taxes due to

13  negligence on the part of a certified public accountant

14  participating in the certified audits project.  In any

15  judicial proceeding brought by the department, upon motion for

16  protective order, the court shall limit disclosure of tax

17  information when necessary to effectuate the purposes of this

18  section.  This paragraph is repealed on July 1, 2006 2002.

19         (r)  Information relative to the returns required by

20  ss. 175.111 and 185.09 to the Department of Management

21  Services in the conduct of its official duties. The Department

22  of Management Services is, in turn, authorized to disclose

23  payment information to a governmental agency or the agency's

24  agent for purposes related to budget preparation, auditing,

25  revenue or financial administration, or as necessary in the

26  administration of chapters 175 and 185.

27         (w)  Tax registration information to the Agency for

28  Workforce Innovation for use in the conduct of its official

29  duties, which information may not be redisclosed by the Agency

30  for Workforce Innovation.

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  1  Disclosure of information under this subsection shall be

  2  pursuant to a written agreement between the executive director

  3  and the agency.  Such agencies, governmental or

  4  nongovernmental, shall be bound by the same requirements of

  5  confidentiality as the Department of Revenue.  Breach of

  6  confidentiality is a misdemeanor of the first degree,

  7  punishable as provided by s. 775.082 or s. 775.083.

  8         Section 32.  Effective July 1, 2002, paragraph (c) is

  9  added to subsection (4) of section 213.0535, Florida Statutes,

10  to read:

11         213.0535  Registration Information Sharing and Exchange

12  Program.--

13         (4)  There are two levels of participation:

14         (c)  A level-two participant may disclose information

15  as provided in paragraph (b) in response to a request for such

16  information from any other level-two participant. Information

17  relative to specific taxpayers shall be requested or disclosed

18  under this paragraph only to the extent necessary in the

19  administration of a tax or licensing provision as enumerated

20  in paragraph (a). When a disclosure made under this paragraph

21  involves confidential information provided to the participant

22  by the Department of Revenue, the participant who provides the

23  information shall maintain records of the disclosures, which

24  records shall be subject to review by the Department of

25  Revenue for a period of 5 years after the date of the

26  disclosure.

27         Section 33.  Paragraph (a) of subsection (3) and

28  subsection (8) of section 213.21, Florida Statutes, are

29  amended, and subsections (9) and (10) are added to said

30  section, to read:

31         213.21  Informal conferences; compromises.--


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  1         (3)(a)  A taxpayer's liability for any tax or interest

  2  specified in s. 72.011(1) may be compromised by the department

  3  upon the grounds of doubt as to liability for or

  4  collectibility of such tax or interest. A taxpayer's liability

  5  for interest under any of the chapters specified in s.

  6  72.011(1) shall be settled or compromised in whole or in part

  7  whenever or to the extent that the department determines that

  8  the delay in the determination of the amount due is

  9  attributable to the action or inaction of the department. A

10  taxpayer's liability for penalties under any of the chapters

11  specified in s. 72.011(1) may be settled or compromised if it

12  is determined by the department that the noncompliance is due

13  to reasonable cause and not to willful negligence, willful

14  neglect, or fraud. The facts and circumstances are subject to

15  de novo review to determine the existence of reasonable cause

16  in any administrative proceeding or judicial action

17  challenging an assessment of penalty under any of the chapters

18  specified in s. 72.011(1). A taxpayer who establishes

19  reasonable reliance on the written advice issued by the

20  department to the taxpayer will be deemed to have shown

21  reasonable cause for the noncompliance. In addition, a

22  taxpayer's liability for penalties under any of the chapters

23  specified in s. 72.011(1) in excess of 25 percent of the tax

24  shall be settled or compromised if the department determines

25  that the noncompliance is due to reasonable cause and not to

26  willful negligence, willful neglect, or fraud. The department

27  shall maintain records of all compromises, and the records

28  shall state the basis for the compromise. The records of

29  compromise under this paragraph shall not be subject to

30  disclosure pursuant to s. 119.07(1) and shall be considered

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  1  confidential information governed by the provisions of s.

  2  213.053.

  3         (8)  In order to determine whether certified audits are

  4  an effective tool in the overall state tax collection effort,

  5  the executive director of the department or the executive

  6  director's designee shall settle or compromise penalty

  7  liabilities of taxpayers who participate in the certified

  8  audits project.  As further incentive for participating in the

  9  program, the department shall abate the first $25,000 of any

10  interest liability and 25 percent of any interest due in

11  excess of the first $25,000. A settlement or compromise of

12  penalties or interest pursuant to this subsection shall not be

13  subject to the provisions of paragraph (3)(a), except for the

14  requirement relating to confidentiality of records.  The

15  department may consider an additional compromise of tax or

16  interest pursuant to the provisions of paragraph (3)(a).  This

17  subsection does not apply to any liability related to taxes

18  collected but not remitted to the department.  This subsection

19  is repealed on July 1, 2006 2002.

20         (9)  A penalty for failing to collect a tax imposed by

21  chapter 212 shall be settled or compromised upon payment of

22  tax and interest if a taxpayer failed to collect the tax due

23  to a good faith belief that tax was not due on the transaction

24  and, because of that good faith belief, the taxpayer is now

25  unable to charge and collect the tax from the taxpayer's

26  purchaser. The Department of Revenue shall adopt rules

27  necessary to implement and administer this subsection,

28  including rules establishing procedures and forms.

29         (10)(a)  Effective July 1, 2003, notwithstanding any

30  other provision of law and solely for the purpose of

31  administering the tax imposed by chapter 212, under the


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  1  circumstances set forth in this subsection, the department

  2  shall settle or compromise a taxpayer's liability for penalty

  3  without requiring the taxpayer to submit a written request for

  4  compromise or settlement.

  5         (b)  For taxpayers who file returns and remit tax on a

  6  monthly basis:

  7         1.  Any penalty related to a noncompliant filing event

  8  shall be settled or compromised if the taxpayer has:

  9         a.  No noncompliant filing event in the immediately

10  preceding 12-month period and no unresolved chapter 212

11  liability resulting from a noncompliant filing event; or

12         b.  One noncompliant filing event in the immediately

13  preceding 12-month period, resolution of the current

14  noncompliant filing event through payment of tax and interest

15  and the filing of a return within 30 days after notification

16  by the department, and no unresolved chapter 212 liability

17  resulting from a noncompliant filing event.

18         2.  If a taxpayer has two or more noncompliant filing

19  events in the immediately preceding 12-month period, the

20  taxpayer shall be liable, absent a showing by the taxpayer

21  that the noncompliant filing event was due to extraordinary

22  circumstances, for the penalties provided in s. 212.12,

23  including loss of collection allowance, and shall be reported

24  to a credit bureau.

25         (c)  For taxpayers who file returns and remit tax on a

26  quarterly basis, any penalty related to a noncompliant filing

27  event shall be settled or compromised if the taxpayer has no

28  noncompliant filing event in the immediately preceding

29  12-month period and no unresolved chapter 212 liability

30  resulting from a noncompliant filing event.

31         (d)  For purposes of this subsection:


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  1         1.  "Noncompliant filing event" means a failure to

  2  timely file a complete and accurate return required under

  3  chapter 212 or a failure to timely pay the amount of tax

  4  reported on a return required by chapter 212.

  5         2.  "Extraordinary circumstances" means the occurrence

  6  of events beyond the control of the taxpayer, such as, but not

  7  limited to, the death of the taxpayer, acts of war or

  8  terrorism, natural disasters, fire, or other casualty, or the

  9  nonfeasance or misfeasance of the taxpayer's employees or

10  representatives responsible for compliance with the provisions

11  of chapter 212.  With respect to the acts of an employee or

12  representative, the taxpayer must show that the principals of

13  the business lacked actual knowledge of the noncompliance and

14  that the noncompliance was resolved within 30 days after

15  actual knowledge.

16         Section 34.  Subsection (2) of section 213.24, Florida

17  Statutes, is amended to read:

18         213.24  Accrual of penalties and interest on

19  deficiencies; deficiency billing costs.--

20         (2)(a)  Billings for deficiencies or automated refunds

21  of tax, penalty, or interest shall not be issued for any

22  amount less than the actual costs incurred by the department

23  to produce a billing or automated refund.

24         (b)  The cost of issuing billings or automated refunds

25  for any tax enumerated in s. 213.05 shall be computed in a

26  study performed by the inspector general of the department.

27  The study shall be conducted every 3 years and at such other

28  times as deemed necessary by the inspector general.  A minimum

29  billing and automated refund amount shall be established and

30  adjusted in accordance with the results of such study.

31


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  1         (c)  Any change in minimum billing or automated refund

  2  amounts amount shall be made effective on July 1 following the

  3  completion of the study.

  4         Section 35.  Subsection (4) of section 213.255, Florida

  5  Statutes, is amended to read:

  6         213.255  Interest.--Interest shall be paid on

  7  overpayments of taxes, payment of taxes not due, or taxes paid

  8  in error, subject to the following conditions:

  9         (4)  Interest shall not commence until 90 days after a

10  complete refund application has been filed and the amount of

11  overpayment has not been refunded to the taxpayer or applied

12  as a credit to the taxpayer's account. However, if there is a

13  prohibition against refunding a tax overpayment before the

14  first day of the state fiscal year, interest on the tax

15  overpayment shall not commence until August 1 of the year the

16  tax was due. If the department and the taxpayer mutually agree

17  that an audit or verification is necessary in order to

18  determine the taxpayer's entitlement to the refund, interest

19  shall not commence until the audit or verification of the

20  claim is final.

21         Section 36.  Paragraph (c) of subsection (2) of section

22  213.285, Florida Statutes, is amended to read:

23         213.285  Certified audits.--

24         (2)

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

26  1, 2006 2002, or upon completion of the project as determined

27  by the department, whichever occurs first.

28         Section 37.  Subsection (3) is added to section 213.30,

29  Florida Statutes, to read:

30         213.30  Compensation for information relating to a

31  violation of the tax laws.--


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  1         (3)  Notwithstanding any other provision of law, this

  2  section is the sole means by which any person may seek or

  3  obtain any moneys as the result of, in relation to, or founded

  4  upon the failure by another person to comply with the tax laws

  5  of this state.  A person's use of any other law to seek or

  6  obtain moneys for such failure is in derogation of this

  7  section and conflicts with the state's duty to administer the

  8  tax laws.

  9         Section 38.  Effective January 1, 2003, section

10  213.755, Florida Statutes, is amended to read:

11         213.755  Filing of returns and payment of taxes by

12  electronic means funds transfer.--

13         (1)  The executive director of the Department of

14  Revenue shall have authority to require a taxpayer to file

15  returns and remit payments taxes by electronic means funds

16  transfer where the taxpayer, including consolidated filers, is

17  subject to tax and has paid that tax in the prior state fiscal

18  year in an amount of $30,000 $50,000 or more. Any taxpayer who

19  operates two or more places of business for which returns are

20  required to be filed with the department shall combine the tax

21  payments for all such locations in order to determine whether

22  they are obligated under this section. This subsection does

23  not override additional requirements in any provision of a

24  revenue law which the department has the responsibility for

25  regulating, controlling, and administering.

26         (2)  As used in any revenue law administered by the

27  department, the term:

28         (a)  "Payment" means any payment or remittance required

29  to be made or paid within a prescribed period or on or before

30  a prescribed date under the authority of any provision of a

31  revenue law which the department has the responsibility for


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  1  regulating, controlling, and administering. The term does not

  2  include any remittance unless the amount of the remittance is

  3  actually received by the department.

  4         (b)  "Return" means any report, claim, statement,

  5  notice, application, affidavit, or other document required to

  6  be filed within a prescribed period or on or before a

  7  prescribed date under the authority of any provision of a

  8  revenue law which the department has the responsibility of

  9  regulating, controlling, and administering.

10         (c)  "Electronic means" includes, but is not limited

11  to, electronic data interchange; electronic funds transfer; or

12  use of the Internet, telephone, or other technology specified

13  by the department.

14         (3)  Solely for the purposes of administering this

15  section:

16         (a)  Taxes levied under parts I and II of chapter 206

17  shall be considered a single tax.

18         (b)  A person required to remit a tax acting as a

19  collection agent or dealer for the state shall nonetheless be

20  considered the taxpayer.

21         (4)  The executive director may require a taxpayer to

22  file by electronic means returns for which no tax is due for

23  the specific taxing period.

24         (5)  Beginning January 1, 2003, consolidated filers

25  shall file returns and remit taxes by electronic means.

26         (6)  A taxpayer required to file returns by electronic

27  means shall also remit payments by electronic means. A

28  taxpayer who fails to file returns pursuant to this section is

29  liable for a penalty of $10 for each report submitted, which

30  is in addition to any other penalty that may be applicable,

31  unless the taxpayer has first obtained a waiver of such


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  1  requirement from the department. A taxpayer who fails to remit

  2  payments pursuant to this section is liable for a penalty of

  3  $10 for each remittance submitted, which is in addition to any

  4  other penalty that may be applicable.

  5         (7)  The department shall give due regard to developing

  6  uniform standards for formats as adopted by the American

  7  National Standards Institute for encryption and taxpayer

  8  authentication to ensure that the return and payment

  9  information is kept confidential. The department shall also

10  provide several options for filing reports and remitting

11  payments by electronic means in order to make compliance with

12  the requirements of this section as simple as possible for the

13  taxpayer.

14         (8)  The department shall prescribe by rule the format

15  and instructions necessary for filing returns and reports and

16  for remitting payments in accordance with this section to

17  ensure a full collection of taxes, interest, and penalties

18  due. The acceptable method of transfer; the method, form, and

19  content of the electronic filing of returns or remittance of

20  payments of tax, penalty, or interest; and the means, if any,

21  by which the taxpayer will be provided with an acknowledgment

22  of receipt shall be prescribed by the department.

23         (9)  The department may waive the requirement to file a

24  return by electronic means for taxpayers that are unable to

25  comply despite good faith efforts or due to circumstances

26  beyond the taxpayer's reasonable control.

27         (a)  As prescribed by the department, grounds for

28  approving the waiver include, but are not limited to,

29  circumstances in which the taxpayer, the owner, or an officer

30  of the business, or the taxpayer's accountant or bookkeeper,

31  does not:


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  1         1.  Currently file information or data electronically

  2  with any business or government agency; or

  3         2.  Have a compatible computer that meets or exceeds

  4  the department's minimum standards.

  5         (b)  The department shall accept other reasons for

  6  requesting a waiver from the requirement to submit a return by

  7  electronic means, including, but not limited to:

  8         1.  That the taxpayer needs additional time to program

  9  his or her computer;

10         2.  That complying with this requirement causes the

11  taxpayer financial hardship; or

12         3.  That complying with this requirement conflicts with

13  the taxpayer's business procedures.

14         (c)  The department may establish by rule the length of

15  time a waiver is valid and may determine whether subsequent

16  waivers will be authorized, based on the provisions of this

17  subsection.

18         Section 39.  Paragraphs (q) and (gg) of subsection (1)

19  of section 220.03, Florida Statutes, is amended to read:

20         220.03  Definitions.--

21         (1)  SPECIFIC TERMS.--When used in this code, and when

22  not otherwise distinctly expressed or manifestly incompatible

23  with the intent thereof, the following terms shall have the

24  following meanings:

25         (q)  "New employee," for the purposes of the enterprise

26  zone jobs credit, means a person residing in an enterprise

27  zone or a participant in the welfare transition program who is

28  employed at a business located in an enterprise zone who

29  begins employment in the operations of the business after July

30  1, 1995, and who has not been previously employed full-time

31  within the preceding 12 months by the business or a successor


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  1  business claiming the credit pursuant to s. 220.181. A person

  2  shall be deemed to be employed by such a business if the

  3  person performs duties in connection with the operations of

  4  the business on a full-time basis, provided she or he is

  5  performing such duties for an average of at least 36 hours per

  6  week each month. The term "jobs" also includes employment of

  7  an employee leased from an employee leasing company licensed

  8  under chapter 468, if such employee has been continuously

  9  leased to the employer for an average of at least 36 hours per

10  week for more than 6 months. The person must be performing

11  such duties at a business site located in an enterprise zone.

12  The provisions of this paragraph shall expire and be void on

13  June 30, 2005.

14         (gg)  "Jobs" means full-time positions, as consistent

15  with terms used by the Agency for Workforce Innovation and the

16  United States Department of Labor for purposes of unemployment

17  compensation tax administration and employment estimation

18  resulting directly from business operations in this state.

19  These terms This number may not include temporary construction

20  jobs involved with the construction of facilities or any jobs

21  that have previously been included in any application for tax

22  credits under s. 212.096 220.181(1). The term "jobs" also

23  includes employment of an employee leased from an employee

24  leasing company licensed under chapter 468 if the employee has

25  been continuously leased to the employer for an average of at

26  least 36 hours per week for more than 6 months.

27         Section 40.  Effective upon this act becoming a law,

28  and applying to tax years beginning on or after January 1,

29  2002, paragraph (b) of subsection (5) of section 220.15,

30  Florida Statutes, is amended to read:

31         220.15  Apportionment of adjusted federal income.--


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  1         (5)  The sales factor is a fraction the numerator of

  2  which is the total sales of the taxpayer in this state during

  3  the taxable year or period and the denominator of which is the

  4  total sales of the taxpayer everywhere during the taxable year

  5  or period.

  6         (b)1.  Sales of tangible personal property occur in

  7  this state if the property is delivered or shipped to a

  8  purchaser within this state, regardless of the f.o.b. point,

  9  other conditions of the sale, or ultimate destination of the

10  property, unless shipment is made via a common or contract

11  carrier. However, for industries in SIC Industry Number 2037,

12  if the ultimate destination of the product is to a location

13  outside this state, regardless of the method of shipment or

14  f.o.b. point, the sale shall not be deemed to occur in this

15  state.

16         2.  When citrus fruit is delivered by a cooperative for

17  a grower-member, by a grower-member to a cooperative, or by a

18  grower-participant to a Florida processor, the sales factor

19  for the growers for such citrus fruit delivered to such

20  processor shall be the same as the sales factor for the most

21  recent taxable year of that processor.  That sales factor,

22  expressed only as a percentage and not in terms of the dollar

23  volume of sales, so as to protect the confidentiality of the

24  sales of the processor, shall be furnished on the request of

25  such a grower promptly after it has been determined for that

26  taxable year.

27         3.  Reimbursement of expenses under an agency contract

28  between a cooperative, a grower-member of a cooperative, or a

29  grower and a processor is not a sale within this state.

30         Section 41.  Paragraph (a) of subsection (1) of section

31  220.181, Florida Statutes, is amended to read:


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  1         220.181  Enterprise zone jobs credit.--

  2         (1)(a)  Beginning January 1, 2002, there shall be

  3  allowed a credit against the tax imposed by this chapter to

  4  any business located in an enterprise zone which demonstrates

  5  to the department that the total number of full-time jobs has

  6  increased from the average of the previous 12 months. This

  7  credit is also available for A business that created added a

  8  minimum of five new full-time jobs in an enterprise zone

  9  between July 1, 2000, and December 31, 2001, may also be

10  eligible to claim the credit for eligible employees under the

11  provisions that took effect January 1, 2002. The credit shall

12  be computed as 20 percent of the actual monthly wages paid in

13  this state to each new employee hired when a new job has been

14  created, as defined under s. 220.03(1)(ff), unless the

15  business is located in a rural enterprise zone, pursuant to s.

16  290.004(8), in which case the credit shall be 30 percent of

17  the actual monthly wages paid. If no less than 20 percent of

18  the employees of the business are residents of an enterprise

19  zone, excluding temporary and part-time employees, the credit

20  shall be computed as 30 percent of the actual monthly wages

21  paid in this state to each new employee hired when a new job

22  has been created, unless the business is located in a rural

23  enterprise zone, in which case the credit shall be 45 percent

24  of the actual monthly wages paid, for a period of up to 24

25  consecutive months. If the new employee hired when a new job

26  is created is a participant in the welfare transition program,

27  the following credit shall be a percent of the actual monthly

28  wages paid: 40 percent for $4 above the hourly federal minimum

29  wage rate; 41 percent for $5 above the hourly federal minimum

30  wage rate; 42 percent for $6 above the hourly federal minimum

31  wage rate; 43 percent for $7 above the hourly federal minimum


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  1  wage rate; and 44 percent for $8 above the hourly federal

  2  minimum wage rate.

  3         Section 42.  Effective upon this act becoming a law and

  4  applying to tax years beginning on or after January 1, 2002,

  5  paragraph (e) of subsection (2) of section 220.187, Florida

  6  Statutes, is amended to read:

  7         220.187  Credits for contributions to nonprofit

  8  scholarship-funding organizations.--

  9         (2)  DEFINITIONS.--As used in this section, the term:

10         (e)  "Qualified student" means a student who qualifies

11  for free or reduced-price school lunches under the National

12  School Lunch Act and who:

13         1.  Was counted as a full-time-equivalent student

14  during the previous state fiscal year for purposes of state

15  per-student funding; or

16         2.  Received a scholarship from an eligible nonprofit

17  scholarship-funding organization during the previous school

18  year; or.

19         3.  Is eligible to enter kindergarten or first grade.

20         Section 43.  Subsection (4) of section 220.22, Florida

21  Statutes, is amended to read:

22         220.22  Returns; filing requirement.--

23         (4)  The department shall designate by rule certain

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

25  file a return under this code, including an initial

26  information return, unless the entities have taxable income as

27  defined in s. 220.13(2). These entities shall include

28  subchapter S corporations, tax-exempt entities, and others

29  that do not usually owe federal income tax. For the year in

30  which an election is made pursuant to s. 1361(b)(3) of the

31  Internal Revenue Code, the qualified subchapter S subsidiary


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  1  shall file an informational return with the department, which

  2  return shall be restricted to information identifying the

  3  subsidiary, the electing S corporation parent, and the

  4  effective date of the election.

  5         Section 44.  Effective January 1, 2003, paragraph (c)

  6  of subsection (2) of section 220.23, Florida Statutes, is

  7  amended to read:

  8         220.23  Federal returns.--

  9         (2)  In the event the taxable income, any item of

10  income or deduction, or the income tax liability reported in a

11  federal income tax return of any taxpayer for any taxable year

12  is adjusted by amendment of such return or as a result of any

13  other recomputation or redetermination of federal taxable

14  income or loss, if such adjustment would affect any item or

15  items entering into the computation of such taxpayer's net

16  income subject to tax for any taxable year under this code,

17  the following special rules shall apply:

18         (c)  In any case where notification of an adjustment is

19  required under paragraph (a), then notwithstanding any other

20  provision contained in s. 95.091(3):

21         1.  A notice of deficiency may be issued at any time

22  within 5 years after the date such notification is given; or

23         2.  If a taxpayer either fails to notify the department

24  or fails to report a change or correction which is treated in

25  the same manner as if it were a deficiency for federal income

26  tax purposes, a notice of deficiency may be issued at any

27  time;

28         3.  In either case, the amount of any proposed

29  assessment set forth in such notice shall be limited to the

30  amount of any deficiency resulting under this code from

31  recomputation of the taxpayer's income for the taxable year


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  1  after giving effect only to the item or items reflected in the

  2  adjustment.

  3

  4  Interest in accordance with s. 220.807 is due on the amount of

  5  any deficiency from the date fixed for filing the original

  6  return for the taxable year, determined without regard to any

  7  extension of time for filing the original return, until the

  8  date of payment of the deficiency.

  9         Section 45.  Subsection (1) of section 220.809, Florida

10  Statutes, is amended to read:

11         220.809  Interest on deficiencies.--

12         (1)  Except as provided in s. 220.23(2)(c), if any

13  amount of tax imposed by this chapter is not paid on or before

14  the date, determined without regard to any extensions,

15  prescribed for payment of such tax, interest shall be paid in

16  accordance with the provisions of s. 220.807 on the unpaid

17  amount from such date to the date of payment.

18         Section 46.  Subsection (2) of section 290.00677,

19  Florida Statutes, is amended to read:

20         290.00677  Rural enterprise zones; special

21  qualifications.--

22         (2)  Notwithstanding the enterprise zone residency

23  requirements set out in s. 220.03(1)(q), eligible businesses

24  as defined by s. 220.03(1)(c) 212.096(1)(a), located in rural

25  enterprise zones as defined in s. 290.004, may receive the

26  basic minimum credit provided under s. 220.181 for creating a

27  new job and hiring a person residing within the jurisdiction

28  of a rural county, as defined by s. 288.106(1)(r). All other

29  provisions of s. 220.181, including, but not limited to, those

30  relating to the award of enhanced credits apply to such

31  businesses.


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  1         Section 47.  Subsection (5) of section 336.021, Florida

  2  Statutes, is amended to read:

  3         336.021  County transportation system; levy of

  4  ninth-cent fuel tax on motor fuel and diesel fuel.--

  5         (5)  All impositions of the tax shall be levied imposed

  6  before November 1, 1993, to be effective January 1, 1994, and

  7  before July 1 of each year thereafter to be effective January

  8  1 of the following year. However, levies of the tax which were

  9  in effect on July 1, 2002 1996, and which expire on August 31

10  of any year may be reimposed at the current authorized rate to

11  be effective September 1 of the year of expiration. All

12  impositions shall be required to end on December 31 of a year.

13  A No decision to rescind the tax shall not take effect on any

14  date other than December 31 and shall require a minimum of

15  until at least 60 days' notice to days after the county

16  notifies the department of such decision.

17         Section 48.  Paragraphs (a) and (b) of subsection (1)

18  and paragraph (a) of subsection (5) of section 336.025,

19  Florida Statutes, are amended to read:

20         336.025  County transportation system; levy of local

21  option fuel tax on motor fuel and diesel fuel.--

22         (1)(a)  In addition to other taxes allowed by law,

23  there may be levied as provided in ss. 206.41(1)(e) and

24  206.87(1)(c) a 1-cent, 2-cent, 3-cent, 4-cent, 5-cent, or

25  6-cent local option fuel tax upon every gallon of motor fuel

26  and diesel fuel sold in a county and taxed under the

27  provisions of part I or part II of chapter 206.

28         1.  All impositions and rate changes of the tax shall

29  be levied before July 1 to be effective January 1 of the

30  following year for a period not to exceed 30 years, and the

31  applicable method of distribution shall be established


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  1  pursuant to subsection (3) or subsection (4).  However, levies

  2  of the tax which were in effect on July 1, 2002 1996, and

  3  which expire on August 31 of any year may be reimposed at the

  4  current authorized rate effective September 1 of the year of

  5  expiration.  Upon expiration, the tax may be relevied provided

  6  that a redetermination of the method of distribution is made

  7  as provided in this section.

  8         2.  County and municipal governments shall utilize

  9  moneys received pursuant to this paragraph only for

10  transportation expenditures.

11         3.  Any tax levied pursuant to this paragraph may be

12  extended on a majority vote of the governing body of the

13  county. A redetermination of the method of distribution shall

14  be established pursuant to subsection (3) or subsection (4),

15  if, after July 1, 1986, the tax is extended or the tax rate

16  changed, for the period of extension or for the additional

17  tax.

18         (b)  In addition to other taxes allowed by law, there

19  may be levied as provided in s. 206.41(1)(e) a 1-cent, 2-cent,

20  3-cent, 4-cent, or 5-cent local option fuel tax upon every

21  gallon of motor fuel sold in a county and taxed under the

22  provisions of part I of chapter 206.  The tax shall be levied

23  by an ordinance adopted by a majority plus one vote of the

24  membership of the governing body of the county or by

25  referendum.

26         1.  All impositions and rate changes of the tax shall

27  be levied before July 1, to be effective January 1 of the

28  following year.  However, levies of the tax which were in

29  effect on July 1, 2002 1996, and which expire on August 31 of

30  any year may be reimposed at the current authorized rate

31  effective September 1 of the year of expiration.


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  1         2.  The county may, prior to levy of the tax, establish

  2  by interlocal agreement with one or more municipalities

  3  located therein, representing a majority of the population of

  4  the incorporated area within the county, a distribution

  5  formula for dividing the entire proceeds of the tax among

  6  county government and all eligible municipalities within the

  7  county. If no interlocal agreement is adopted before the

  8  effective date of the tax, tax revenues shall be distributed

  9  pursuant to the provisions of subsection (4).  If no

10  interlocal agreement exists, a new interlocal agreement may be

11  established prior to June 1 of any year pursuant to this

12  subparagraph. However, any interlocal agreement agreed to

13  under this subparagraph after the initial levy of the tax or

14  change in the tax rate authorized in this section shall under

15  no circumstances materially or adversely affect the rights of

16  holders of outstanding bonds which are backed by taxes

17  authorized by this paragraph, and the amounts distributed to

18  the county government and each municipality shall not be

19  reduced below the amount necessary for the payment of

20  principal and interest and reserves for principal and interest

21  as required under the covenants of any bond resolution

22  outstanding on the date of establishment of the new interlocal

23  agreement.

24         3.  County and municipal governments shall utilize

25  moneys received pursuant to this paragraph only for

26  transportation expenditures needed to meet the requirements of

27  the capital improvements element of an adopted comprehensive

28  plan. For purposes of this paragraph, expenditures for the

29  construction of new roads, the reconstruction or resurfacing

30  of existing paved roads, or the paving of existing graded

31  roads shall be deemed to increase capacity and such projects


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  1  shall be included in the capital improvements element of an

  2  adopted comprehensive plan. Expenditures for purposes of this

  3  paragraph shall not include routine maintenance of roads.

  4         (5)(a)  By July 1 of each year, the county shall notify

  5  the Department of Revenue of the rate of the taxes tax levied

  6  pursuant to paragraphs (1)(a) and (b), and of its decision to

  7  rescind or change the rate of a the tax, if applicable, and

  8  shall provide the department with a certified copy of the

  9  interlocal agreement established under subparagraph (1)(b)2.

10  or subparagraph (3)(a)1. with distribution proportions

11  established by such agreement or pursuant to subsection (4),

12  if applicable. A No decision to rescind a the tax shall not

13  take effect on any date other than December 31 and shall

14  require a minimum of until at least 60 days' notice to days

15  after the county notifies the Department of Revenue of such

16  decision.

17         Section 49.  Subsection (2) of section 376.70, Florida

18  Statutes, is amended to read:

19         376.70  Tax on gross receipts of drycleaning

20  facilities.--

21         (2)  Each drycleaning facility or dry drop-off facility

22  imposing a charge for the drycleaning or laundering of

23  clothing or other fabrics is required to register with the

24  Department of Revenue and become licensed for the purposes of

25  this section. The owner or operator of the facility shall

26  register the facility with the Department of Revenue.

27  Drycleaning facilities or dry drop-off facilities operating at

28  more than one location are only required to have a single

29  registration. The fee for registration is $30. The owner or

30  operator of the facility shall pay the registration fee to the

31  Department of Revenue. The department may waive the


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  1  registration fee for applications submitted through the

  2  department's Internet registration process.

  3         Section 50.  Subsection (1) and paragraph (e) of

  4  subsection (3) of section 443.131, Florida Statutes, are

  5  amended to read:

  6         443.131  Contributions.--

  7         (1)  WHEN PAYABLE.--Contributions shall accrue and

  8  become payable by each employer for each calendar quarter in

  9  which he or she is subject to this chapter, with respect to

10  wages paid during such calendar quarter for employment.  Such

11  contributions shall become due and be paid by each employer to

12  the Agency for Workforce Innovation or its designee division

13  for the fund, in accordance with such rules as the Agency for

14  Workforce Innovation or its designee division may prescribe.

15  However, nothing in this subsection shall be construed to

16  prohibit the Agency for Workforce Innovation or its designee

17  division from allowing, on a limited basis, at the request of

18  the employer, certain employers of employees performing

19  domestic services, as defined in s. 443.036(21)(g) and by rule

20  of the division, to pay contributions or report wages at

21  intervals other than quarterly when such payment or reporting

22  is to the advantage of the Agency for Workforce Innovation or

23  its designee division and the employers, and when such

24  nonquarterly payment and reporting is authorized under federal

25  law.  This provision gives employers of employees performing

26  domestic services the option to elect to report wages and pay

27  taxes annually, with a due date of January April 1 and a

28  delinquency date of February 1 April 30. In order to qualify

29  for this election, the employer must employ have only

30  employees who perform domestic services employees, be eligible

31  for a variation from the standard rate as computed pursuant to


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  1  subsection (3) in good standing, apply to this program no

  2  later than December 1 30 of the preceding calendar year, and

  3  agree to provide the Agency for Workforce Innovation or its

  4  designee division with any special reports which might be

  5  requested, as required by rule 60BB-2.025(5) 38B-2.025(5),

  6  including copies of all federal employment tax forms. Failure

  7  to timely furnish any wage information when required by the

  8  Agency for Workforce Innovation or its designee shall may

  9  result in the employer's loss of the privilege to elect

10  participation in this program, effective the calendar quarter

11  immediately following the calendar quarter in which such

12  failure occurred. The employer is eligible to reapply for

13  annual reporting after 1 complete calendar year has elapsed

14  since the employer's disqualification if the employer timely

15  furnished any requested wage information during the period in

16  which annual reporting was denied. Contributions shall not be

17  deducted, in whole or in part, from the wages of individuals

18  in such employer's employ. In the payment of any

19  contributions, a fractional part of a cent shall be

20  disregarded unless it amounts to one-half cent or more, in

21  which case it shall be increased to 1 cent.

22         (3)  CONTRIBUTION RATES BASED ON BENEFIT EXPERIENCE.--

23         (e)1.  Variations from the standard rate of

24  contributions shall be assigned with respect to each calendar

25  year to employers eligible therefor. In determining the

26  contribution rate, varying from the standard rate to be

27  assigned each employer, adjustment factors provided for in

28  sub-subparagraphs a.-c. will be added to the benefit ratio.

29  This addition will be accomplished in two steps by adding a

30  variable adjustment factor and a final adjustment factor as

31  defined below. The sum of these adjustment factors provided


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  1  for in sub-subparagraphs a.-c. will first be algebraically

  2  summed. The sum of these adjustment factors will then be

  3  divided by a gross benefit ratio to be determined as follows:

  4  Total benefit payments for the previous 3 years, as defined in

  5  subparagraph (b)1., charged to employers eligible to be

  6  assigned a contribution rate different from the standard rate

  7  minus excess payments for the same period divided by taxable

  8  payroll entering into the computation of individual benefit

  9  ratios for the calendar year for which the contribution rate

10  is being computed. The ratio of the sum of the adjustment

11  factors provided for in sub-subparagraphs a.-c. to the gross

12  benefit ratio will be multiplied by each individual benefit

13  ratio below the maximum tax rate to obtain variable adjustment

14  factors; except that in any instance in which the sum of an

15  employer's individual benefit ratio and variable adjustment

16  factor exceeds the maximum tax rate, the variable adjustment

17  factor will be reduced so that the sum equals the maximum tax

18  rate. The variable adjustment factor of each such employer

19  will be multiplied by his or her taxable payroll entering into

20  the computation of his or her benefit ratio. The sum of these

21  products will be divided by the taxable payroll of such

22  employers that entered into the computation of their benefit

23  ratios. The resulting ratio will be subtracted from the sum of

24  the adjustment factors provided for in sub-subparagraphs a.-c.

25  to obtain the final adjustment factor. The variable adjustment

26  factors and the final adjustment factor will be computed to

27  five decimal places and rounded to the fourth decimal place.

28  This final adjustment factor will be added to the variable

29  adjustment factor and benefit ratio of each employer to obtain

30  each employer's contribution rate; however, at no time shall

31


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  1  an employer's contribution rate be rounded to less than 0.1

  2  percent.

  3         a.  An adjustment factor for noncharge benefits will be

  4  computed to the fifth decimal place, and rounded to the fourth

  5  decimal place, by dividing the amount of benefit payments

  6  noncharged in the 3 preceding years as defined in subparagraph

  7  (b)1. by the taxable payroll of employers eligible to be

  8  considered for assignment of a contribution rate different

  9  from the standard rate that have a benefit ratio for the

10  current year less than the maximum contribution rate. The

11  taxable payroll of such employers will be the taxable payrolls

12  for the 3 years ending June 30 of the current calendar year

13  that had been reported to the division by September 30 of the

14  same calendar year. Noncharge benefits for the purpose of this

15  section shall be defined as benefit payments to an individual

16  which were paid from the Unemployment Compensation Trust Fund

17  but which were not charged to the unemployment record of any

18  employer.

19         b.  An excess payments adjustment factor will be

20  computed to the fifth decimal place, and rounded to the fourth

21  decimal place, by dividing the total excess payments during

22  the 3 preceding years as defined in subparagraph (b)1. by the

23  taxable payroll of employers eligible to be considered for

24  assignment of a contribution rate different from the standard

25  rate that have a benefit ratio for the current year less than

26  the maximum contribution rate. The taxable payroll of such

27  employers will be the same as used in computing the noncharge

28  adjustment factor as described in sub-subparagraph a. The term

29  "excess payments" for the purpose of this section is defined

30  as the amount of benefit payments charged to the employment

31  record of an employer during the 3 preceding years, as defined


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  1  in subparagraph (b)1., less the product of the maximum

  2  contribution rate and his or her taxable payroll for the 3

  3  years ending June 30 of the current calendar year that had

  4  been reported to the division by September 30 of the same

  5  calendar year. The term "total excess payments" is defined as

  6  the sum of the individual employer excess payments for those

  7  employers that were eligible to be considered for assignment

  8  of a contribution rate different from the standard rate.

  9         c.  If the balance in the Unemployment Compensation

10  Trust Fund as of June 30 of the calendar year immediately

11  preceding the calendar year for which the contribution rate is

12  being computed is less than 3.7 4 percent of the taxable

13  payrolls for the year ending June 30 as reported to the

14  division by September 30 of that calendar year, a positive

15  adjustment factor will be computed. Such adjustment factor

16  shall be computed annually to the fifth decimal place, and

17  rounded to the fourth decimal place, by dividing the sum of

18  the total taxable payrolls for the year ending June 30 of the

19  current calendar year as reported to the division by September

20  30 of such calendar year into a sum equal to one-fourth of the

21  difference between the amount in the fund as of June 30 of

22  such calendar year and the sum of 4.7 5 percent of the total

23  taxable payrolls for that year. Such adjustment factor will

24  remain in effect in subsequent years until a balance in the

25  Unemployment Compensation Trust Fund as of June 30 of the year

26  immediately preceding the effective date of such contribution

27  rate equals or exceeds 3.7 4 percent of the taxable payrolls

28  for the year ending June 30 of the current calendar year as

29  reported to the division by September 30 of that calendar

30  year. If the balance in the Unemployment Compensation Trust

31  Fund as of June 30 of the year immediately preceding the


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  1  calendar year for which the contribution rate is being

  2  computed exceeds 4.7 5 percent of the taxable payrolls for the

  3  year ending June 30 of the current calendar year as reported

  4  to the division by September 30 of that calendar year, a

  5  negative adjustment factor will be computed. Such adjustment

  6  factor shall be computed annually to the fifth decimal place,

  7  and rounded to the fourth decimal place, by dividing the sum

  8  of the total taxable payrolls for the year ending June 30 of

  9  the current calendar year as reported to the division by

10  September 30 of such calendar year into a sum equal to

11  one-fourth of the difference between the amount in the fund as

12  of June 30 of the current calendar year and 4.7 5 percent of

13  the total taxable payrolls of such year. Such adjustment

14  factor will remain in effect in subsequent years until the

15  balance in the Unemployment Compensation Trust Fund as of June

16  30 of the year immediately preceding the effective date of

17  such contribution rate is less than 4.7 5 percent but more

18  than 3.7 4 percent of the taxable payrolls for the year ending

19  June 30 of the current calendar year as reported to the

20  division by September 30 of that calendar year.

21         d.  The maximum contribution rate that can be assigned

22  to any employer shall be 5.4 percent, except those employers

23  participating in an approved short-time compensation plan in

24  which case the maximum shall be 1 percent above the current

25  maximum contribution rate, with respect to any calendar year

26  in which short-time compensation benefits are in the

27  employer's employment record.

28         2.  In the event of the transfer of employment records

29  to an employing unit pursuant to paragraph (g) which, prior to

30  such transfer, was an employer, the division shall recompute a

31  benefit ratio for the successor employer on the basis of the


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  1  combined employment records and reassign an appropriate

  2  contribution rate to such successor employer as of the

  3  beginning of the calendar quarter immediately following the

  4  effective date of such transfer of employment records.

  5         Section 51.  Effective upon this act becoming a law and

  6  operating retroactively to December 21, 2000, section

  7  443.1315, Florida Statutes, is created to read:

  8         443.1315  Treatment of Indian tribes.--

  9         (1)  As used in this section:

10         (a)  "Employer" includes any Indian tribe for which

11  service in employment as defined by this chapter is performed.

12         (b)  "Employment" includes service performed in the

13  employ of an Indian tribe, as defined by s. 3306(u) of the

14  Federal Unemployment Tax Act, provided such service is

15  excluded from employment as defined by that act solely by

16  reason of s. 3306(c)(7) of such act and is not otherwise

17  excluded from employment under this chapter. For purposes of

18  this section, the exclusions from employment under s.

19  443.036(21)(d) apply to services performed in the employ of an

20  Indian tribe.

21         (2)  Benefits based on service in employment shall be

22  payable in the same amount, on the same terms, and subject to

23  the same conditions as benefits payable on the basis of other

24  service subject to this chapter.

25         (3)(a)  Indian tribes or tribal units thereof,

26  including subdivisions, subsidiaries, or business enterprises

27  wholly owned by such Indian tribes, subject to this chapter

28  shall pay contributions under the same terms and conditions as

29  all other subject employers unless they elect to pay into the

30  Unemployment Compensation Trust Fund amounts equal to the

31


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  1  amount of benefits attributable to service in the employ of

  2  the Indian tribe.

  3         (b)  Indian tribes electing to make payments in lieu of

  4  contributions must make such election in the same manner and

  5  under the same conditions as provided by s. 443.131 for state

  6  and local governments and nonprofit organizations subject to

  7  this chapter. Indian tribes shall determine whether

  8  reimbursement for benefits paid will be elected by the tribe

  9  as a whole, by individual tribal units thereof, or by

10  combinations of individual tribal units.

11         (c)  Indian tribes or tribal units thereof shall be

12  billed for the full amount of benefits attributable to service

13  in the employ of the Indian tribe or tribal unit on the same

14  schedule as other employing units that have elected to make

15  payments in lieu of contributions.

16         (d)  At the discretion of the director of the Agency

17  for Workforce Innovation or his or her designee, any Indian

18  tribe or tribal unit thereof that elects to become liable for

19  payments in lieu of contributions shall be required, within 90

20  days after the effective date of such election, to:

21         1.  Execute and file with the director or his or her

22  designee a surety bond approved by the director or his or her

23  designee; or

24         2.  Deposit with the director or his or her designee

25  money or securities on the same basis as other employers with

26  the same election option.

27         (4)(a)1.  Failure of the Indian tribe or any tribal

28  unit thereof to make required payments, including assessments

29  of interest and penalty, within 90 days after receipt of the

30  bill will cause the Indian tribe to lose the option to make

31  payments in lieu of contributions as provided in subsection


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  1  (3) for the following tax year unless payment in full is

  2  received before contribution rates for the next tax year are

  3  computed.

  4         2.  Any Indian tribe that loses the option to make

  5  payments in lieu of contributions due to late payment or

  6  nonpayment pursuant to subparagraph 1. shall have such option

  7  reinstated if, after a period of 1 year, all contributions

  8  have been made timely, provided no contributions, payments in

  9  lieu of contributions for benefits paid, penalties, or

10  interest remain outstanding.

11         (b)1.  Failure of the Indian tribe or any tribal unit

12  thereof to make required payments, including assessments of

13  interest and penalty, after all collection activities deemed

14  necessary by the director of the Agency for Workforce

15  Innovation or his or her designee have been exhausted will

16  cause services performed for such tribe to not be treated as

17  employment for purposes of paragraph (1)(b).

18         2.  The director or his or her designee may determine

19  that any Indian tribe that loses coverage under subparagraph

20  1. may have services performed for such tribe again included

21  as employment for purposes of paragraph (1)(b) if all

22  contributions, payments in lieu of contributions, penalties,

23  and interest have been paid.

24         (c)  If an Indian tribe fails to make payments required

25  under this section, including assessments of interest and

26  penalty, within 90 days after a final notice of delinquency,

27  the director of the Agency for Workforce Innovation shall

28  immediately notify the United States Internal Revenue Service

29  and the United States Department of Labor.

30         (5)  Notices of payment and reporting delinquency to

31  Indian tribes or tribal units thereof shall include


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  1  information that failure to make full payment within the

  2  prescribed timeframe:

  3         (a)  Will cause the Indian tribe to be liable for taxes

  4  under the Federal Unemployment Tax Act.

  5         (b)  Will cause the Indian tribe to lose the option to

  6  make payments in lieu of contributions.

  7         (c)  Could cause the Indian tribe to be excepted from

  8  the definition of "employer" provided in paragraph (1)(a) and

  9  services in the employ of the Indian tribe provided in

10  paragraph (1)(b) to be excepted from employment.

11         (6)  Extended benefits paid that are attributable to

12  service in the employ of an Indian tribe and not reimbursed by

13  the Federal Government shall be financed in their entirety by

14  such Indian tribe.

15         (7)  The Agency for Workforce Innovation shall adopt

16  any rules necessary to administer this section.

17         Section 52.  Effective January 1, 2003, section

18  443.163, Florida Statutes, is amended to read:

19         443.163  Electronic reporting and remitting of taxes.--

20         (1)  An employer may choose to file any report and

21  remit any taxes required by this chapter by electronic means

22  in a form initiated through an electronic data interchange

23  using an advanced encrypted transmission by means of the

24  Internet or other suitable transmission. The Agency for

25  Workforce Innovation or its designee division shall prescribe

26  by rule the format and instructions necessary for such filing

27  of reports and remitting of taxes to ensure a full collection

28  of contributions due. The acceptable method of transfer, the

29  method, form, and content of the electronic means data

30  interchange, and the method means, if any, by which the

31  employer will be provided with an acknowledgment, shall be


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  1  prescribed by the agency or its designee division. However,

  2  any employer who employed 10 or more employees in any quarter

  3  during the preceding state fiscal year, or any person that

  4  prepared and reported for 5 or more employers in the preceding

  5  state fiscal year, must submit the Employers Quarterly Reports

  6  (UCT-6) for the current calendar year and remit the taxes due

  7  by electronic means approved by the agency or its designee.

  8         (2)  Any employer or person who fails to file an

  9  Employers Quarterly Report (UCT-6) by electronic means

10  required by law is liable for a penalty of 10 percent of the

11  tax due, but not less than $10 for each report, which is in

12  addition to any other penalty provided by this chapter which

13  may be applicable, unless the employer or person has first

14  obtained a waiver for such requirement from the agency or its

15  designee. Any employer or person who fails to remit tax by

16  electronic means as required by law is liable for a penalty of

17  $10 for each remittance submitted, which is in addition to any

18  other penalty provided by this chapter which may be

19  applicable.

20         (3)  The agency or its designee may waive the

21  requirement to file an Employers Quarterly Report (UCT-6) by

22  electronic means for employers or persons that are unable to

23  comply despite good faith efforts or due to circumstances

24  beyond the employer's or person's reasonable control.

25         (a)  As prescribed by the agency or its designee,

26  grounds for approving the waiver include, but are not limited

27  to, circumstances in which the employer or person does not:

28         1.  Currently file information or data electronically

29  with any business or government agency; or

30         2.  Have a compatible computer that meets or exceeds

31  the standards prescribed by the agency or its designee.


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  1         (b)  The agency or its designee shall accept other

  2  reasons for requesting a waiver from the requirement to submit

  3  the Employers Quarterly Report (UCT-6) by electronic means,

  4  including, but not limited to:

  5         1.  That the employer or person needs additional time

  6  to program his or her computer;

  7         2.  That complying with this requirement causes the

  8  employer or person financial hardship; or

  9         3.  That complying with this requirement conflicts with

10  the employer's business procedures.

11         (c)  The agency or its designee may establish by rule

12  the length of time a waiver is valid and may determine whether

13  subsequent waivers will be authorized, based on the provisions

14  of this subsection; however, the agency or its designee shall

15  only grant a waiver from electronic reporting if the employer

16  or person timely files the Employers Quarterly Report (UCT-6)

17  by telefile, unless the employer wage detail exceeds the

18  agency's or its designee's telefile system capabilities.

19         (4)  For purposes of this section, the term "electronic

20  means" includes, but is not limited to, electronic data

21  interchange; electronic funds transfer; and use of the

22  Internet, telephone, or other technology specified by the

23  agency or its designee.

24         Section 53.  Effective January 1, 2003, subsection (3)

25  is added to section 608.471, Florida Statutes, to read:

26         608.471  Tax exemption on income of certain limited

27  liability companies.--

28         (3)  Single-member limited liability companies and

29  other entities that are disregarded for federal income tax

30  purposes must be treated as separate legal entities for all

31  non-income-tax purposes. The Department of Revenue shall adopt


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  1  rules to take into account that single-member disregarded

  2  entities such as limited liability companies and qualified

  3  subchapter S corporations may be disregarded as separate

  4  entities for federal tax purposes and therefore may report and

  5  account for income, employment, and other taxes under the

  6  taxpayer identification number of the owner of the

  7  single-member entity.

  8         Section 54.  Effective July 1, 2002, subsection (1) of

  9  section 681.117, Florida Statutes, is amended to read:

10         681.117  Fee.--

11         (1)  A $2 fee shall be collected by a motor vehicle

12  dealer, or by a person engaged in the business of leasing

13  motor vehicles, from the consumer at the consummation of the

14  sale of a motor vehicle or at the time of entry into a lease

15  agreement for a motor vehicle.  Such fees shall be remitted to

16  the county tax collector or private tag agency acting as agent

17  for the Department of Revenue. If the purchaser or lessee

18  removes the motor vehicle from the state for titling and

19  registration outside this state, the fee shall be remitted to

20  the Department of Revenue. All fees, less the cost of

21  administration, shall be transferred monthly to the Department

22  of Legal Affairs for deposit into the Motor Vehicle Warranty

23  Trust Fund.  The Department of Legal Affairs shall distribute

24  monthly an amount not exceeding one-fourth of the fees

25  received to the Division of Consumer Services of the

26  Department of Agriculture and Consumer Services to carry out

27  the provisions of ss. 681.108 and 681.109.  The Department of

28  Legal Affairs shall contract with the Division of Consumer

29  Services for payment of services performed by the division

30  pursuant to ss. 681.108 and 681.109.

31


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  1         Section 55.  Sections 3 and 4 of chapter 2000-345, Laws

  2  of Florida, are amended to read:

  3         Section 3.  Effective July 1, 2006 2003, subsection

  4  (10) of section 212.031, Florida Statutes, as created by this

  5  act, is repealed, and paragraph (a) of subsection (1) and

  6  subsection (3) of said section, as amended by this act, are

  7  amended to read:

  8         212.031  Lease or rental of or license in real

  9  property.--

10         (1)(a)  It is declared to be the legislative intent

11  that every person is exercising a taxable privilege who

12  engages in the business of renting, leasing, letting, or

13  granting a license for the use of any real property unless

14  such property is:

15         1.  Assessed as agricultural property under s. 193.461.

16         2.  Used exclusively as dwelling units.

17         3.  Property subject to tax on parking, docking, or

18  storage spaces under s. 212.03(6).

19         4.  Recreational property or the common elements of a

20  condominium when subject to a lease between the developer or

21  owner thereof and the condominium association in its own right

22  or as agent for the owners of individual condominium units or

23  the owners of individual condominium units. However, only the

24  lease payments on such property shall be exempt from the tax

25  imposed by this chapter, and any other use made by the owner

26  or the condominium association shall be fully taxable under

27  this chapter.

28         5.  A public or private street or right-of-way and

29  poles, conduits, fixtures, and similar improvements located on

30  such streets or rights-of-way, occupied or used by a utility

31  or franchised cable television company for utility or


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  1  communications or television purposes. For purposes of this

  2  subparagraph, the term "utility" means any person providing

  3  utility services as defined in s. 203.012. This exception also

  4  applies to property, excluding buildings, wherever located, on

  5  which antennas, cables, adjacent accessory structures, or

  6  adjacent accessory equipment used in the provision of

  7  cellular, enhanced specialized mobile radio, or personal

  8  communications services are placed.

  9         6.  A public street or road which is used for

10  transportation purposes.

11         7.  Property used at an airport exclusively for the

12  purpose of aircraft landing or aircraft taxiing or property

13  used by an airline for the purpose of loading or unloading

14  passengers or property onto or from aircraft or for fueling

15  aircraft.

16         8.a.  Property used at a port authority, as defined in

17  s. 315.02(2), exclusively for the purpose of oceangoing

18  vessels or tugs docking, or such vessels mooring on property

19  used by a port authority for the purpose of loading or

20  unloading passengers or cargo onto or from such a vessel, or

21  property used at a port authority for fueling such vessels, or

22  to the extent that the amount paid for the use of any property

23  at the port is based on the charge for the amount of tonnage

24  actually imported or exported through the port by a tenant.

25         b.  The amount charged for the use of any property at

26  the port in excess of the amount charged for tonnage actually

27  imported or exported shall remain subject to tax except as

28  provided in sub-subparagraph a.

29         9.  Property used as an integral part of the

30  performance of qualified production services.  As used in this

31  subparagraph, the term "qualified production services" means


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  1  any activity or service performed directly in connection with

  2  the production of a qualified motion picture, as defined in s.

  3  212.06(1)(b), and includes:

  4         a.  Photography, sound and recording, casting, location

  5  managing and scouting, shooting, creation of special and

  6  optical effects, animation, adaptation (language, media,

  7  electronic, or otherwise), technological modifications,

  8  computer graphics, set and stage support (such as

  9  electricians, lighting designers and operators, greensmen,

10  prop managers and assistants, and grips), wardrobe (design,

11  preparation, and management), hair and makeup (design,

12  production, and application), performing (such as acting,

13  dancing, and playing), designing and executing stunts,

14  coaching, consulting, writing, scoring, composing,

15  choreographing, script supervising, directing, producing,

16  transmitting dailies, dubbing, mixing, editing, cutting,

17  looping, printing, processing, duplicating, storing, and

18  distributing;

19         b.  The design, planning, engineering, construction,

20  alteration, repair, and maintenance of real or personal

21  property including stages, sets, props, models, paintings, and

22  facilities principally required for the performance of those

23  services listed in sub-subparagraph a.; and

24         c.  Property management services directly related to

25  property used in connection with the services described in

26  sub-subparagraphs a. and b.

27         10.  Leased, subleased, licensed, or rented to a person

28  providing food and drink concessionaire services within the

29  premises of a convention hall, exhibition hall, auditorium,

30  stadium, theater, arena, civic center, performing arts center,

31  publicly owned recreational facility, or any business operated


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  1  under a permit issued pursuant to chapter 550.  A person

  2  providing retail concessionaire services involving the sale of

  3  food and drink or other tangible personal property within the

  4  premises of an airport shall be subject to tax on the rental

  5  of real property used for that purpose, but shall not be

  6  subject to the tax on any license to use the property.  For

  7  purposes of this subparagraph, the term "sale" shall not

  8  include the leasing of tangible personal property.

  9         11.  Property occupied pursuant to an instrument

10  calling for payments which the department has declared, in a

11  Technical Assistance Advisement issued on or before March 15,

12  1993, to be nontaxable pursuant to rule 12A-1.070(19)(c),

13  Florida Administrative Code; provided that this subparagraph

14  shall only apply to property occupied by the same person

15  before and after the execution of the subject instrument and

16  only to those payments made pursuant to such instrument,

17  exclusive of renewals and extensions thereof occurring after

18  March 15, 1993.

19         12.  Rented, leased, subleased, or licensed to a

20  concessionaire by a convention hall, exhibition hall,

21  auditorium, stadium, theater, arena, civic center, performing

22  arts center, or publicly owned recreational facility, during

23  an event at the facility, to be used by the concessionaire to

24  sell souvenirs, novelties, or other event-related products.

25  This subparagraph applies only to that portion of the rental,

26  lease, or license payment which is based on a percentage of

27  sales and not based on a fixed price.

28         (3)  The tax imposed by this section shall be in

29  addition to the total amount of the rental or license fee,

30  shall be charged by the lessor or person receiving the rent or

31  payment in and by a rental or license fee arrangement with the


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  1  lessee or person paying the rental or license fee, and shall

  2  be due and payable at the time of the receipt of such rental

  3  or license fee payment by the lessor or other person who

  4  receives the rental or payment. Notwithstanding any other

  5  provision of this chapter, the tax imposed by this section on

  6  the rental, lease, or license for the use of a convention

  7  hall, exhibition hall, auditorium, stadium, theater, arena,

  8  civic center, performing arts center, or publicly owned

  9  recreational facility to hold an event of not more than 7

10  consecutive days' duration shall be collected at the time of

11  the payment for that rental, lease, or license but is not due

12  and payable to the department until the first day of the month

13  following the last day that the event for which the payment is

14  made is actually held, and becomes delinquent on the 21st day

15  of that month. The owner, lessor, or person receiving the rent

16  or license fee shall remit the tax to the department at the

17  times and in the manner hereinafter provided for dealers to

18  remit taxes under this chapter.  The same duties imposed by

19  this chapter upon dealers in tangible personal property

20  respecting the collection and remission of the tax; the making

21  of returns; the keeping of books, records, and accounts; and

22  the compliance with the rules and regulations of the

23  department in the administration of this chapter shall apply

24  to and be binding upon all persons who manage any leases or

25  operate real property, hotels, apartment houses,

26  roominghouses, or tourist and trailer camps and all persons

27  who collect or receive rents or license fees taxable under

28  this chapter on behalf of owners or lessors.

29         Section 4.  Effective July 1, 2006 2003, paragraph (b)

30  of subsection (1), paragraph (a) of subsection (2), and

31


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  1  subsection (3) of section 212.04, Florida Statutes, as amended

  2  by this act, are amended to read:

  3         212.04  Admissions tax; rate, procedure, enforcement.--

  4         (1)

  5         (b)  For the exercise of such privilege, a tax is

  6  levied at the rate of 6 percent of sales price, or the actual

  7  value received from such admissions, which 6 percent shall be

  8  added to and collected with all such admissions from the

  9  purchaser thereof, and such tax shall be paid for the exercise

10  of the privilege as defined in the preceding paragraph.  Each

11  ticket must show on its face the actual sales price of the

12  admission, or each dealer selling the admission must

13  prominently display at the box office or other place where the

14  admission charge is made a notice disclosing the price of the

15  admission, and the tax shall be computed and collected on the

16  basis of the actual price of the admission charged by the

17  dealer.  The sale price or actual value of admission shall,

18  for the purpose of this chapter, be that price remaining after

19  deduction of federal taxes and state or locally imposed or

20  authorized seat surcharges, taxes, or fees, if any, imposed

21  upon such admission, and. The sale price or actual value does

22  not include separately stated ticket service charges that are

23  imposed by a facility ticket office or a ticketing service and

24  added to a separately stated, established ticket price. the

25  rate of tax on each admission shall be according to the

26  brackets established by s. 212.12(9).

27         (2)(a)1.  No tax shall be levied on admissions to

28  athletic or other events sponsored by elementary schools,

29  junior high schools, middle schools, high schools, community

30  colleges, public or private colleges and universities, deaf

31  and blind schools, facilities of the youth services programs


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  1  of the Department of Children and Family Services, and state

  2  correctional institutions when only student, faculty, or

  3  inmate talent is used. However, this exemption shall not apply

  4  to admission to athletic events sponsored by an institution

  5  within the State University System, and the proceeds of the

  6  tax collected on such admissions shall be retained and used by

  7  each institution to support women's athletics as provided in

  8  s. 240.533(3)(c).

  9         2.a.  No tax shall be levied on dues, membership fees,

10  and admission charges imposed by not-for-profit sponsoring

11  organizations. To receive this exemption, the sponsoring

12  organization must qualify as a not-for-profit entity under the

13  provisions of s. 501(c)(3) of the Internal Revenue Code of

14  1954, as amended.

15         b.  No tax imposed by this section and not actually

16  collected before August 1, 1992, shall be due from any museum

17  or historic building owned by any political subdivision of the

18  state.

19         c.  No tax shall be levied on admission charges to an

20  event sponsored by a governmental entity, sports authority, or

21  sports commission when held in a convention hall, exhibition

22  hall, auditorium, stadium, theater, arena, civic center,

23  performing arts center, or publicly owned recreational

24  facility and when 100 percent of the risk of success or

25  failure lies with the sponsor of the event and 100 percent of

26  the funds at risk for the event belong to the sponsor, and

27  student or faculty talent is not exclusively used.  As used in

28  this sub-subparagraph, the terms "sports authority" and

29  "sports commission" mean a nonprofit organization that is

30  exempt from federal income tax under s. 501(c)(3) of the

31  Internal Revenue Code and that contracts with a county or


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  1  municipal government for the purpose of promoting and

  2  attracting sports-tourism events to the community with which

  3  it contracts.

  4         3.  No tax shall be levied on an admission paid by a

  5  student, or on the student's behalf, to any required place of

  6  sport or recreation if the student's participation in the

  7  sport or recreational activity is required as a part of a

  8  program or activity sponsored by, and under the jurisdiction

  9  of, the student's educational institution, provided his or her

10  attendance is as a participant and not as a spectator.

11         4.  No tax shall be levied on admissions to the

12  National Football League championship game, on admissions to

13  any semifinal game or championship game of a national

14  collegiate tournament, or on admissions to a Major League

15  Baseball all-star game.

16         5.  A participation fee or sponsorship fee imposed by a

17  governmental entity as described in s. 212.08(6) for an

18  athletic or recreational program is exempt when the

19  governmental entity by itself, or in conjunction with an

20  organization exempt under s. 501(c)(3) of the Internal Revenue

21  Code of 1954, as amended, sponsors, administers, plans,

22  supervises, directs, and controls the athletic or recreational

23  program.

24         6.  Also exempt from the tax imposed by this section to

25  the extent provided in this subparagraph are admissions to

26  live theater, live opera, or live ballet productions in this

27  state which are sponsored by an organization that has received

28  a determination from the Internal Revenue Service that the

29  organization is exempt from federal income tax under s.

30  501(c)(3) of the Internal Revenue Code of 1954, as amended, if

31  the organization actively participates in planning and


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  1  conducting the event, is responsible for the safety and

  2  success of the event, is organized for the purpose of

  3  sponsoring live theater, live opera, or live ballet

  4  productions in this state, has more than 10,000 subscribing

  5  members and has among the stated purposes in its charter the

  6  promotion of arts education in the communities which it

  7  serves, and will receive at least 20 percent of the net

  8  profits, if any, of the events which the organization sponsors

  9  and will bear the risk of at least 20 percent of the losses,

10  if any, from the events which it sponsors if the organization

11  employs other persons as agents to provide services in

12  connection with a sponsored event. Prior to March 1 of each

13  year, such organization may apply to the department for a

14  certificate of exemption for admissions to such events

15  sponsored in this state by the organization during the

16  immediately following state fiscal year. The application shall

17  state the total dollar amount of admissions receipts collected

18  by the organization or its agents from such events in this

19  state sponsored by the organization or its agents in the year

20  immediately preceding the year in which the organization

21  applies for the exemption. Such organization shall receive the

22  exemption only to the extent of $1.5 million multiplied by the

23  ratio that such receipts bear to the total of such receipts of

24  all organizations applying for the exemption in such year;

25  however, in no event shall such exemption granted to any

26  organization exceed 6 percent of such admissions receipts

27  collected by the organization or its agents in the year

28  immediately preceding the year in which the organization

29  applies for the exemption. Each organization receiving the

30  exemption shall report each month to the department the total

31  admissions receipts collected from such events sponsored by


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  1  the organization during the preceding month and shall remit to

  2  the department an amount equal to 6 percent of such receipts

  3  reduced by any amount remaining under the exemption. Tickets

  4  for such events sold by such organizations shall not reflect

  5  the tax otherwise imposed under this section.

  6         7.  Also exempt from the tax imposed by this section

  7  are entry fees for participation in freshwater fishing

  8  tournaments.

  9         8.  Also exempt from the tax imposed by this section

10  are participation or entry fees charged to participants in a

11  game, race, or other sport or recreational event if spectators

12  are charged a taxable admission to such event.

13         9.  No tax shall be levied on admissions to any

14  postseason collegiate football game sanctioned by the National

15  Collegiate Athletic Association.

16         (3)  Such taxes shall be paid and remitted at the same

17  time and in the same manner as provided for remitting taxes on

18  sales of tangible personal property, as hereinafter provided.

19  Notwithstanding any other provision of this chapter, the tax

20  on admission to an event at a convention hall, exhibition

21  hall, auditorium, stadium, theater, arena, civic center,

22  performing arts center, or publicly owned recreational

23  facility shall be collected at the time of payment for the

24  admission but is not due to the department until the first day

25  of the month following the actual date of the event for which

26  the admission is sold and becomes delinquent on the 21st day

27  of that month.

28         Section 56.  Paragraph (f) of subsection (4) of section

29  11 of chapter 2000-165, Laws of Florida, is amended to read:

30         Section 11.

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

  2  and functions are transferred to the Agency for Workforce

  3  Innovation:

  4         (f)  The Division of Unemployment Compensation is

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

  6  20.06(2), Florida Statutes, from the Department of Labor and

  7  Employment Security to the Agency for Workforce Innovation.

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

  9  balances of appropriations, allocations, and other funds

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

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

12  Employment Security that support the Division of Unemployment

13  Compensation are transferred by a type two transfer, as

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

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

16  2001, the Agency for Workforce Innovation shall enter into a

17  contract with the Department of Revenue which shall provide

18  for the Department of Revenue to provide unemployment tax

19  collection services.  The Department of Revenue, in

20  consultation with the Department of Labor and Employment

21  Security, shall determine the number of positions needed to

22  provide unemployment tax collection services within the

23  Department of Revenue.  The number of unemployment tax

24  collection service positions the Department of Revenue

25  determines are needed shall not exceed the number of positions

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

27  of Labor and Employment Security for this purpose.  Upon

28  entering into the contract with the Agency for Workforce

29  Innovation to provide unemployment tax collection services,

30  the number of required positions, as determined by the

31  Department of Revenue, shall be authorized within the


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

  2  of Program Policy Analysis and Government Accountability shall

  3  conduct a feasibility study regarding privatization of

  4  unemployment tax collection services.  A report on the

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

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

  7  Representatives. The Department of Revenue is considered to be

  8  administering a revenue law of this state when the department

  9  provides unemployment compensation tax collection services

10  pursuant to a contract of the department with the Agency for

11  Workforce Innovation. Sections 213.018, 213.025, 213.051,

12  213.053, 213.055, 213.071, 213.10, 213.2201, 213.23,

13  213.24(2), 213.27, 213.28, 213.285, 213.37, 213.50, 213.67,

14  213.69, 213.73, 213.733, 213.74, and 213.757, Florida

15  Statutes, apply to the collection of unemployment

16  contributions by the Department of Revenue unless prohibited

17  by federal law.

18         Section 57.  Notwithstanding the percentage increase

19  provided in section 218.21(6), Florida Statutes, for the

20  purpose of calculating distributions made under section

21  212.20(6)(d)6., Florida Statutes, for the 2001-2002 fiscal

22  year, the percentage increase for any government exercising

23  municipal powers under section 6(f), Article VIII of the State

24  Constitution shall be calculated as the revenues from the

25  Revenue Sharing Trust Fund for Municipalities for the

26  2000-2001 fiscal year, divided by the sum of revenues from the

27  Revenue Sharing Trust Fund for Municipalities for the

28  1999-2000 fiscal year and revenues from the Municipal

29  Financial Assistance Trust Fund for the 1999-2000 fiscal year,

30  minus one. Notwithstanding this section, actual payments

31  during fiscal year 2001-2002 shall not be affected by this


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  1  provision and such recalculated amount shall be used to

  2  determine the percentage increase for the 2002-2003 fiscal

  3  year, as provided in section 218.21(6)(b), Florida Statutes.

  4  Any adjustment because of an overpayment during the 2001-2002

  5  fiscal year shall be treated as a credit to the payment in

  6  fiscal year 2002-2003.

  7         Section 58.  Effective upon this act becoming a law and

  8  applying to tax years beginning on or after January 1, 2002,

  9  section 9 of chapter 2001-225, Laws of Florida, is repealed.

10         Section 59.  Effective upon this act becoming a law and

11  applying to tax years beginning on or after January 1, 2002,

12  section 220.331, Florida Statutes, is repealed.

13         Section 60.  (1)  Subsections (1) and (2) of section

14  199.062, section 201.05, and subsection (6) of section

15  212.084, Florida Statutes, are repealed.

16         (2)  Effective July 1, 2002, subsection (10) of section

17  624.509, Florida Statutes, is repealed.

18         Section 61.  Except as otherwise provided herein, this

19  act shall take effect upon becoming a law.

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