HB 469

1	A bill to be entitled
2	An act relating to the tax on sales, use, and other
3	transactions; providing a short title; amending s. 212.05,
4	F.S.; limiting the amount of tax collected on individual
5	sales of aircraft or boats; providing an effective date.
6
7	WHEREAS, Florida's maritime and boating industry, including
8	the sale and servicing of large boats, has historically been a
9	significant component of Florida's economy, with over 220,000
10	people employed in this and related industries, and
11	WHEREAS, Florida has become increasingly important in the
12	field of aircraft manufacturing, sales, maintenance, repair, and
13	overhaul, with approximately 80,000 people employed in the
14	aviation and aerospace industries at an average annual wage of
15	over $50,000, and
16	WHEREAS, the aviation and boating industries not only
17	create significant numbers of jobs in Florida, but also attract
18	large amounts of capital , cause significant tax revenue to be
19	collected and create extensive indirect jobs and other benefits,
20	and
21	WHEREAS, the voters in Florida made clear in the most
22	recent election that, by amending Florida's constitution, they
23	value highly Florida's working waterfronts, and want to see
24	those waterfronts taking advantage of Florida's natural
25	amenities and adding further to employment and capital
26	investment in Florida, and
27	WHEREAS, current tax policy discourages the purchase, use,
28	and maintenance of boats and aircraft in Florida, and actually
29	requires certain purchasers to leave the state to avoid
30	unnecessary taxation, with a resulting loss of jobs, capital
31	investment and sales and use tax revenue, and
32	WHEREAS, current law and policy results in little or no
33	sales tax revenue collection on the purchase and sale of large
34	boats and aircraft because of far more advantageous law and
35	policy in other jurisdictions, including offshore, and
36	WHEREAS, changing tax policy to encourage the sale, use,
37	maintenance, repair, and overhaul of boats and aircraft in
38	Florida would energize its economy, create jobs, attract
39	capital, and generate additional sales and use tax revenue, and,
40	indirectly, assist law enforcement and the Department of
41	Homeland Security by decreasing the number of offshore
42	registered boats in Florida's and America's waters, NOW,
43	THEREFORE,
44
45	Be It Enacted by the Legislature of the State of Florida:
46
47	Section 1.  This act may be cited as the "Aviation and
48	Maritime Full Employment Act."
49	Section 2.  Paragraph (a) of subsection (1) of section
50	212.05, Florida Statutes, is amended to read:
51	212.05  Sales, storage, use tax.--It is hereby declared to
52	be the legislative intent that every person is exercising a
53	taxable privilege who engages in the business of selling
54	tangible personal property at retail in this state, including
55	the business of making mail order sales, or who rents or
56	furnishes any of the things or services taxable under this
57	chapter, or who stores for use or consumption in this state any
58	item or article of tangible personal property as defined herein
59	and who leases or rents such property within the state.
60	(1)  For the exercise of such privilege, a tax is levied on
61	each taxable transaction or incident, which tax is due and
62	payable as follows:
63	(a)1.a.  At the rate of 6 percent of the sales price of
64	each item or article of tangible personal property when sold at
65	retail in this state, computed on each taxable sale for the
66	purpose of remitting the amount of tax due the state, and
67	including each and every retail sale.
68	b.  Each occasional or isolated sale of an aircraft, boat,
69	mobile home, or motor vehicle of a class or type which is
70	required to be registered, licensed, titled, or documented in
71	this state or by the United States Government shall be subject
72	to tax at the rate provided in this paragraph, provided the
73	maximum amount of tax collected under this subparagraph on each
74	individual sale of an aircraft or boat may not exceed $25,000.
75	The department shall by rule adopt any nationally recognized
76	publication for valuation of used motor vehicles as the
77	reference price list for any used motor vehicle which is
78	required to be licensed pursuant to s. 320.08(1), (2), (3)(a),
79	(b), (c), or (e), or (9). If any party to an occasional or
80	isolated sale of such a vehicle reports to the tax collector a
81	sales price which is less than 80 percent of the average loan
82	price for the specified model and year of such vehicle as listed
83	in the most recent reference price list, the tax levied under
84	this paragraph shall be computed by the department on such
85	average loan price unless the parties to the sale have provided
86	to the tax collector an affidavit signed by each party, or other
87	substantial proof, stating the actual sales price. Any party to
88	such sale who reports a sales price less than the actual sales
89	price is guilty of a misdemeanor of the first degree, punishable
90	as provided in s. 775.082 or s. 775.083. The department shall
91	collect or attempt to collect from such party any delinquent
92	sales taxes. In addition, such party shall pay any tax due and
93	any penalty and interest assessed plus a penalty equal to twice
94	the amount of the additional tax owed. Notwithstanding any other
95	provision of law, the Department of Revenue may waive or
96	compromise any penalty imposed pursuant to this subparagraph.
97	2.  This paragraph does not apply to the sale of a boat or
98	aircraft by or through a registered dealer under this chapter to
99	a purchaser who, at the time of taking delivery, is a
100	nonresident of this state, does not make his or her permanent
101	place of abode in this state, and is not engaged in carrying on
102	in this state any employment, trade, business, or profession in
103	which the boat or aircraft will be used in this state, or is a
104	corporation none of the officers or directors of which is a
105	resident of, or makes his or her permanent place of abode in,
106	this state, or is a noncorporate entity that has no individual
107	vested with authority to participate in the management,
108	direction, or control of the entity's affairs who is a resident
109	of, or makes his or her permanent abode in, this state. For
110	purposes of this exemption, either a registered dealer acting on
111	his or her own behalf as seller, a registered dealer acting as
112	broker on behalf of a seller, or a registered dealer acting as
113	broker on behalf of the purchaser may be deemed to be the
114	selling dealer. This exemption shall not be allowed unless:
115	a.  The purchaser removes a qualifying boat, as described
116	in sub-subparagraph f., from the state within 90 days after the
117	date of purchase or the purchaser removes a nonqualifying boat
118	or an aircraft from this state within 10 days after the date of
119	purchase or, when the boat or aircraft is repaired or altered,
120	within 20 days after completion of the repairs or alterations;
121	b.  The purchaser, within 30 days from the date of
122	departure, shall provide the department with written proof that
123	the purchaser licensed, registered, titled, or documented the
124	boat or aircraft outside the state. If such written proof is
125	unavailable, within 30 days the purchaser shall provide proof
126	that the purchaser applied for such license, title,
127	registration, or documentation. The purchaser shall forward to
128	the department proof of title, license, registration, or
129	documentation upon receipt.
130	c.  The purchaser, within 10 days of removing the boat or
131	aircraft from Florida, shall furnish the department with proof
132	of removal in the form of receipts for fuel, dockage, slippage,
133	tie-down, or hangaring from outside of Florida. The information
134	so provided must clearly and specifically identify the boat or
135	aircraft;
136	d.  The selling dealer, within 5 days of the date of sale,
137	shall provide to the department a copy of the sales invoice,
138	closing statement, bills of sale, and the original affidavit
139	signed by the purchaser attesting that he or she has read the
140	provisions of this section;
141	e.  The seller makes a copy of the affidavit a part of his
142	or her record for as long as required by s. 213.35; and
143	f.  Unless the nonresident purchaser of a boat of 5 net
144	tons of admeasurement or larger intends to remove the boat from
145	this state within 10 days after the date of purchase or when the
146	boat is repaired or altered, within 20 days after completion of
147	the repairs or alterations, the nonresident purchaser shall
148	apply to the selling dealer for a decal which authorizes 90 days
149	after the date of purchase for removal of the boat. The
150	department is authorized to issue decals in advance to dealers.
151	The number of decals issued in advance to a dealer shall be
152	consistent with the volume of the dealer's past sales of boats
153	which qualify under this sub-subparagraph. The selling dealer or
154	his or her agent shall mark and affix the decals to qualifying
155	boats in the manner prescribed by the department, prior to
156	delivery of the boat.
157	(I)  The department is hereby authorized to charge dealers
158	a fee sufficient to recover the costs of decals issued.
159	(II)  The proceeds from the sale of decals will be
160	deposited into the administrative trust fund.
161	(III)  Decals shall display information to identify the
162	boat as a qualifying boat under this sub-subparagraph,
163	including, but not limited to, the decal's date of expiration.
164	(IV)  The department is authorized to require dealers who
165	purchase decals to file reports with the department and may
166	prescribe all necessary records by rule. All such records are
167	subject to inspection by the department.
168	(V)  Any dealer or his or her agent who issues a decal
169	falsely, fails to affix a decal, mismarks the expiration date of
170	a decal, or fails to properly account for decals will be
171	considered prima facie to have committed a fraudulent act to
172	evade the tax and will be liable for payment of the tax plus a
173	mandatory penalty of 200 percent of the tax, and shall be liable
174	for fine and punishment as provided by law for a conviction of a
175	misdemeanor of the first degree, as provided in s. 775.082 or s.
176	775.083.
177	(VI)  Any nonresident purchaser of a boat who removes a
178	decal prior to permanently removing the boat from the state, or
179	defaces, changes, modifies, or alters a decal in a manner
180	affecting its expiration date prior to its expiration, or who
181	causes or allows the same to be done by another, will be
182	considered prima facie to have committed a fraudulent act to
183	evade the tax and will be liable for payment of the tax plus a
184	mandatory penalty of 200 percent of the tax, and shall be liable
185	for fine and punishment as provided by law for a conviction of a
186	misdemeanor of the first degree, as provided in s. 775.082 or s.
187	775.083.
188	(VII)  The department is authorized to adopt rules
189	necessary to administer and enforce this subparagraph and to
190	publish the necessary forms and instructions.
191	(VIII)  The department is hereby authorized to adopt
192	emergency rules pursuant to s. 120.54(4) to administer and
193	enforce the provisions of this subparagraph.
194
195	If the purchaser fails to remove the qualifying boat from this
196	state within 90 days after purchase or a nonqualifying boat or
197	an aircraft from this state within 10 days after purchase or,
198	when the boat or aircraft is repaired or altered, within 20 days
199	after completion of such repairs or alterations, or permits the
200	boat or aircraft to return to this state within 6 months from
201	the date of departure, or if the purchaser fails to furnish the
202	department with any of the documentation required by this
203	subparagraph within the prescribed time period, the purchaser
204	shall be liable for use tax on the cost price of the boat or
205	aircraft and, in addition thereto, payment of a penalty to the
206	Department of Revenue equal to the tax payable. This penalty
207	shall be in lieu of the penalty imposed by s. 212.12(2) and is
208	mandatory and shall not be waived by the department. The 90-day
209	period following the sale of a qualifying boat tax-exempt to a
210	nonresident may not be tolled for any reason. Notwithstanding
211	other provisions of this paragraph to the contrary, an aircraft
212	purchased in this state under the provisions of this paragraph
213	may be returned to this state for repairs within 6 months after
214	the date of its departure without being in violation of the law
215	and without incurring liability for the payment of tax or
216	penalty on the purchase price of the aircraft if the aircraft is
217	removed from this state within 20 days after the completion of
218	the repairs and if such removal can be demonstrated by invoices
219	for fuel, tie-down, hangar charges issued by out-of-state
220	vendors or suppliers, or similar documentation.
221	Section 3.  This act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.