| 1 | A bill to be entitled |
| 2 | An act relating to the tax on property rental fees and the |
| 3 | tax on admissions; amending s. 212.031, F.S.; abrogating |
| 4 | the repeal of the tax exemption on rental or license fees |
| 5 | provided for certain property rented, leased, or licensed |
| 6 | by a convention or exhibition hall, auditorium, stadium, |
| 7 | theater, arena, civic center, performing arts center, or |
| 8 | publicly owned recreational facility; amending s. 2, ch. |
| 9 | 2006-101, Laws of Florida; abrogating the repeal of the |
| 10 | tax exemption provided for certain charges imposed by a |
| 11 | convention or exhibition hall, auditorium, stadium, |
| 12 | theater, arena, civic center, performing arts center, or |
| 13 | publicly owned recreational facility upon a lessee or |
| 14 | licensee; amending s. 212.04, F.S.; abrogating the repeal |
| 15 | of the tax exemption for admission charges to events |
| 16 | sponsored by governmental entities, sports authorities, |
| 17 | and sports commissions; providing an effective date. |
| 18 |
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| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
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| 21 | Section 1. Paragraph (a) of subsection (1) of section |
| 22 | 212.031, Florida Statutes, is amended to read: |
| 23 | 212.031 Tax on rental or license fee for use of real |
| 24 | property.-- |
| 25 | (1)(a) It is declared to be the legislative intent that |
| 26 | every person is exercising a taxable privilege who engages in |
| 27 | the business of renting, leasing, letting, or granting a license |
| 28 | for the use of any real property unless such property is: |
| 29 | 1. Assessed as agricultural property under s. 193.461. |
| 30 | 2. Used exclusively as dwelling units. |
| 31 | 3. Property subject to tax on parking, docking, or storage |
| 32 | spaces under s. 212.03(6). |
| 33 | 4. Recreational property or the common elements of a |
| 34 | condominium when subject to a lease between the developer or |
| 35 | owner thereof and the condominium association in its own right |
| 36 | or as agent for the owners of individual condominium units or |
| 37 | the owners of individual condominium units. However, only the |
| 38 | lease payments on such property shall be exempt from the tax |
| 39 | imposed by this chapter, and any other use made by the owner or |
| 40 | the condominium association shall be fully taxable under this |
| 41 | chapter. |
| 42 | 5. A public or private street or right-of-way and poles, |
| 43 | conduits, fixtures, and similar improvements located on such |
| 44 | streets or rights-of-way, occupied or used by a utility or |
| 45 | provider of communications services, as defined by s. 202.11, |
| 46 | for utility or communications or television purposes. For |
| 47 | purposes of this subparagraph, the term "utility" means any |
| 48 | person providing utility services as defined in s. 203.012. This |
| 49 | exception also applies to property, wherever located, on which |
| 50 | the following are placed: towers, antennas, cables, accessory |
| 51 | structures, or equipment, not including switching equipment, |
| 52 | used in the provision of mobile communications services as |
| 53 | defined in s. 202.11. For purposes of this chapter, towers used |
| 54 | in the provision of mobile communications services, as defined |
| 55 | in s. 202.11, are considered to be fixtures. |
| 56 | 6. A public street or road which is used for |
| 57 | transportation purposes. |
| 58 | 7. Property used at an airport exclusively for the purpose |
| 59 | of aircraft landing or aircraft taxiing or property used by an |
| 60 | airline for the purpose of loading or unloading passengers or |
| 61 | property onto or from aircraft or for fueling aircraft. |
| 62 | 8.a. Property used at a port authority, as defined in s. |
| 63 | 315.02(2), exclusively for the purpose of oceangoing vessels or |
| 64 | tugs docking, or such vessels mooring on property used by a port |
| 65 | authority for the purpose of loading or unloading passengers or |
| 66 | cargo onto or from such a vessel, or property used at a port |
| 67 | authority for fueling such vessels, or to the extent that the |
| 68 | amount paid for the use of any property at the port is based on |
| 69 | the charge for the amount of tonnage actually imported or |
| 70 | exported through the port by a tenant. |
| 71 | b. The amount charged for the use of any property at the |
| 72 | port in excess of the amount charged for tonnage actually |
| 73 | imported or exported shall remain subject to tax except as |
| 74 | provided in sub-subparagraph a. |
| 75 | 9. Property used as an integral part of the performance of |
| 76 | qualified production services. As used in this subparagraph, the |
| 77 | term "qualified production services" means any activity or |
| 78 | service performed directly in connection with the production of |
| 79 | a qualified motion picture, as defined in s. 212.06(1)(b), and |
| 80 | includes: |
| 81 | a. Photography, sound and recording, casting, location |
| 82 | managing and scouting, shooting, creation of special and optical |
| 83 | effects, animation, adaptation (language, media, electronic, or |
| 84 | otherwise), technological modifications, computer graphics, set |
| 85 | and stage support (such as electricians, lighting designers and |
| 86 | operators, greensmen, prop managers and assistants, and grips), |
| 87 | wardrobe (design, preparation, and management), hair and makeup |
| 88 | (design, production, and application), performing (such as |
| 89 | acting, dancing, and playing), designing and executing stunts, |
| 90 | coaching, consulting, writing, scoring, composing, |
| 91 | choreographing, script supervising, directing, producing, |
| 92 | transmitting dailies, dubbing, mixing, editing, cutting, |
| 93 | looping, printing, processing, duplicating, storing, and |
| 94 | distributing; |
| 95 | b. The design, planning, engineering, construction, |
| 96 | alteration, repair, and maintenance of real or personal property |
| 97 | including stages, sets, props, models, paintings, and facilities |
| 98 | principally required for the performance of those services |
| 99 | listed in sub-subparagraph a.; and |
| 100 | c. Property management services directly related to |
| 101 | property used in connection with the services described in sub- |
| 102 | subparagraphs a. and b. |
| 103 |
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| 104 | This exemption will inure to the taxpayer upon presentation of |
| 105 | the certificate of exemption issued to the taxpayer under the |
| 106 | provisions of s. 288.1258. |
| 107 | 10. Leased, subleased, licensed, or rented to a person |
| 108 | providing food and drink concessionaire services within the |
| 109 | premises of a convention hall, exhibition hall, auditorium, |
| 110 | stadium, theater, arena, civic center, performing arts center, |
| 111 | publicly owned recreational facility, or any business operated |
| 112 | under a permit issued pursuant to chapter 550. A person |
| 113 | providing retail concessionaire services involving the sale of |
| 114 | food and drink or other tangible personal property within the |
| 115 | premises of an airport shall be subject to tax on the rental of |
| 116 | real property used for that purpose, but shall not be subject to |
| 117 | the tax on any license to use the property. For purposes of this |
| 118 | subparagraph, the term "sale" shall not include the leasing of |
| 119 | tangible personal property. |
| 120 | 11. Property occupied pursuant to an instrument calling |
| 121 | for payments which the department has declared, in a Technical |
| 122 | Assistance Advisement issued on or before March 15, 1993, to be |
| 123 | nontaxable pursuant to rule 12A-1.070(19)(c), Florida |
| 124 | Administrative Code; provided that this subparagraph shall only |
| 125 | apply to property occupied by the same person before and after |
| 126 | the execution of the subject instrument and only to those |
| 127 | payments made pursuant to such instrument, exclusive of renewals |
| 128 | and extensions thereof occurring after March 15, 1993. |
| 129 | 12. Rented, leased, subleased, or licensed to a |
| 130 | concessionaire by a convention hall, exhibition hall, |
| 131 | auditorium, stadium, theater, arena, civic center, performing |
| 132 | arts center, or publicly owned recreational facility, during an |
| 133 | event at the facility, to be used by the concessionaire to sell |
| 134 | souvenirs, novelties, or other event-related products. This |
| 135 | subparagraph applies only to that portion of the rental, lease, |
| 136 | or license payment which is based on a percentage of sales and |
| 137 | not based on a fixed price. This subparagraph is repealed July |
| 138 | 1, 2009. |
| 139 | 13. Property used or occupied predominantly for space |
| 140 | flight business purposes. As used in this subparagraph, "space |
| 141 | flight business" means the manufacturing, processing, or |
| 142 | assembly of a space facility, space propulsion system, space |
| 143 | vehicle, satellite, or station of any kind possessing the |
| 144 | capacity for space flight, as defined by s. 212.02(23), or |
| 145 | components thereof, and also means the following activities |
| 146 | supporting space flight: vehicle launch activities, flight |
| 147 | operations, ground control or ground support, and all |
| 148 | administrative activities directly related thereto. Property |
| 149 | shall be deemed to be used or occupied predominantly for space |
| 150 | flight business purposes if more than 50 percent of the |
| 151 | property, or improvements thereon, is used for one or more space |
| 152 | flight business purposes. Possession by a landlord, lessor, or |
| 153 | licensor of a signed written statement from the tenant, lessee, |
| 154 | or licensee claiming the exemption shall relieve the landlord, |
| 155 | lessor, or licensor from the responsibility of collecting the |
| 156 | tax, and the department shall look solely to the tenant, lessee, |
| 157 | or licensee for recovery of such tax if it determines that the |
| 158 | exemption was not applicable. |
| 159 | Section 2. Section 2 of chapter 2006-101, Laws of Florida, |
| 160 | is amended to read: |
| 161 | Section 2. Notwithstanding the provisions of section 3 of |
| 162 | chapter 2000-345, Laws of Florida, as amended by section 55 of |
| 163 | chapter 2002-218, Laws of Florida, subsection (10) of s. |
| 164 | 212.031, Florida Statutes, shall not stand repealed on July 1, |
| 165 | 2006, as scheduled by such laws, but that subsection is revived |
| 166 | and readopted. Subsection (10) of s. 212.031, Florida Statutes, |
| 167 | is repealed July 1, 2009. |
| 168 | Section 3. Paragraph (a) of subsection (2) of section |
| 169 | 212.04, Florida Statutes, is amended to read: |
| 170 | 212.04 Admissions tax; rate, procedure, enforcement.-- |
| 171 | (2)(a)1. No tax shall be levied on admissions to athletic |
| 172 | or other events sponsored by elementary schools, junior high |
| 173 | schools, middle schools, high schools, community colleges, |
| 174 | public or private colleges and universities, deaf and blind |
| 175 | schools, facilities of the youth services programs of the |
| 176 | Department of Children and Family Services, and state |
| 177 | correctional institutions when only student, faculty, or inmate |
| 178 | talent is used. However, this exemption shall not apply to |
| 179 | admission to athletic events sponsored by a state university, |
| 180 | and the proceeds of the tax collected on such admissions shall |
| 181 | be retained and used by each institution to support women's |
| 182 | athletics as provided in s. 1006.71(2)(c). |
| 183 | 2.a. No tax shall be levied on dues, membership fees, and |
| 184 | admission charges imposed by not-for-profit sponsoring |
| 185 | organizations. To receive this exemption, the sponsoring |
| 186 | organization must qualify as a not-for-profit entity under the |
| 187 | provisions of s. 501(c)(3) of the Internal Revenue Code of 1954, |
| 188 | as amended. |
| 189 | b. No tax shall be levied on admission charges to an event |
| 190 | sponsored by a governmental entity, sports authority, or sports |
| 191 | commission when held in a convention hall, exhibition hall, |
| 192 | auditorium, stadium, theater, arena, civic center, performing |
| 193 | arts center, or publicly owned recreational facility and when |
| 194 | 100 percent of the risk of success or failure lies with the |
| 195 | sponsor of the event and 100 percent of the funds at risk for |
| 196 | the event belong to the sponsor, and student or faculty talent |
| 197 | is not exclusively used. As used in this sub-subparagraph, the |
| 198 | terms "sports authority" and "sports commission" mean a |
| 199 | nonprofit organization that is exempt from federal income tax |
| 200 | under s. 501(c)(3) of the Internal Revenue Code and that |
| 201 | contracts with a county or municipal government for the purpose |
| 202 | of promoting and attracting sports-tourism events to the |
| 203 | community with which it contracts. This sub-subparagraph is |
| 204 | repealed July 1, 2009. |
| 205 | 3. No tax shall be levied on an admission paid by a |
| 206 | student, or on the student's behalf, to any required place of |
| 207 | sport or recreation if the student's participation in the sport |
| 208 | or recreational activity is required as a part of a program or |
| 209 | activity sponsored by, and under the jurisdiction of, the |
| 210 | student's educational institution, provided his or her |
| 211 | attendance is as a participant and not as a spectator. |
| 212 | 4. No tax shall be levied on admissions to the National |
| 213 | Football League championship game, on admissions to any |
| 214 | semifinal game or championship game of a national collegiate |
| 215 | tournament, or on admissions to a Major League Baseball all-star |
| 216 | game. |
| 217 | 5. A participation fee or sponsorship fee imposed by a |
| 218 | governmental entity as described in s. 212.08(6) for an athletic |
| 219 | or recreational program is exempt when the governmental entity |
| 220 | by itself, or in conjunction with an organization exempt under |
| 221 | s. 501(c)(3) of the Internal Revenue Code of 1954, as amended, |
| 222 | sponsors, administers, plans, supervises, directs, and controls |
| 223 | the athletic or recreational program. |
| 224 | 6. Also exempt from the tax imposed by this section to the |
| 225 | extent provided in this subparagraph are admissions to live |
| 226 | theater, live opera, or live ballet productions in this state |
| 227 | which are sponsored by an organization that has received a |
| 228 | determination from the Internal Revenue Service that the |
| 229 | organization is exempt from federal income tax under s. |
| 230 | 501(c)(3) of the Internal Revenue Code of 1954, as amended, if |
| 231 | the organization actively participates in planning and |
| 232 | conducting the event, is responsible for the safety and success |
| 233 | of the event, is organized for the purpose of sponsoring live |
| 234 | theater, live opera, or live ballet productions in this state, |
| 235 | has more than 10,000 subscribing members and has among the |
| 236 | stated purposes in its charter the promotion of arts education |
| 237 | in the communities which it serves, and will receive at least 20 |
| 238 | percent of the net profits, if any, of the events which the |
| 239 | organization sponsors and will bear the risk of at least 20 |
| 240 | percent of the losses, if any, from the events which it sponsors |
| 241 | if the organization employs other persons as agents to provide |
| 242 | services in connection with a sponsored event. Prior to March 1 |
| 243 | of each year, such organization may apply to the department for |
| 244 | a certificate of exemption for admissions to such events |
| 245 | sponsored in this state by the organization during the |
| 246 | immediately following state fiscal year. The application shall |
| 247 | state the total dollar amount of admissions receipts collected |
| 248 | by the organization or its agents from such events in this state |
| 249 | sponsored by the organization or its agents in the year |
| 250 | immediately preceding the year in which the organization applies |
| 251 | for the exemption. Such organization shall receive the exemption |
| 252 | only to the extent of $1.5 million multiplied by the ratio that |
| 253 | such receipts bear to the total of such receipts of all |
| 254 | organizations applying for the exemption in such year; however, |
| 255 | in no event shall such exemption granted to any organization |
| 256 | exceed 6 percent of such admissions receipts collected by the |
| 257 | organization or its agents in the year immediately preceding the |
| 258 | year in which the organization applies for the exemption. Each |
| 259 | organization receiving the exemption shall report each month to |
| 260 | the department the total admissions receipts collected from such |
| 261 | events sponsored by the organization during the preceding month |
| 262 | and shall remit to the department an amount equal to 6 percent |
| 263 | of such receipts reduced by any amount remaining under the |
| 264 | exemption. Tickets for such events sold by such organizations |
| 265 | shall not reflect the tax otherwise imposed under this section. |
| 266 | 7. Also exempt from the tax imposed by this section are |
| 267 | entry fees for participation in freshwater fishing tournaments. |
| 268 | 8. Also exempt from the tax imposed by this section are |
| 269 | participation or entry fees charged to participants in a game, |
| 270 | race, or other sport or recreational event if spectators are |
| 271 | charged a taxable admission to such event. |
| 272 | 9. No tax shall be levied on admissions to any postseason |
| 273 | collegiate football game sanctioned by the National Collegiate |
| 274 | Athletic Association. |
| 275 | Section 4. This act shall take effect upon becoming a law. |