HB 907

1	A bill to be entitled
2	An act relating to review of exemptions and exclusions
3	from the tax on sales, use, and other transactions;
4	requiring the Senate and House of Representatives to
5	appoint a Joint Legislative Review Committee to
6	oversee the review of exemptions from the tax on
7	sales, use, and other transactions and make
8	recommendations regarding the review; creating s.
9	11.9035, F.S.; providing a short title; providing
10	responsibilities of the Joint Legislative Review
11	Committee for the purpose of reviewing exemptions from
12	the general state sales and use tax and exclusions of
13	sales of services from such taxation; providing for
14	meetings and governance by joint rules; providing
15	definitions; specifying powers and duties; providing
16	for reports; requiring continuing periodic review of
17	sales tax exemptions and exclusions; providing for
18	legislative proposals; amending s. 212.08, F.S.;
19	providing for future elimination of all sales, rental,
20	use, consumption, distribution, and storage tax
21	exemptions under the section except those for general
22	groceries, medical, guide dogs for the blind, hospital
23	meals and rooms, household fuels, meals delivered by
24	nonprofit volunteer organizations as a charitable
25	function, and certain books, lunches, and publications
26	used or provided at schools for students grades K
27	through 12; repealing s. 212.051, F.S., relating to
28	exemption for equipment, machinery, and other
29	materials for pollution control; repealing s. 212.052,
30	F.S., relating to exemption for research or
31	development costs; repealing s. 212.0598, F.S.,
32	relating to partial exemption for air carriers'
33	maintenance bases; repealing s. 212.0602, F.S.,
34	relating to a limited exemption for education;
35	repealing s. 212.0801, F.S., relating to an exemption
36	for qualified aircraft; repealing s. 212.0821, F.S.,
37	relating to legislative intent that political
38	subdivisions and public libraries use sales tax
39	exemption certificates for certain purchases;
40	repealing s. 212.09, F.S., relating to trade-ins
41	deducted; repealing s. 212.096, F.S., relating to
42	credit for job creation in enterprise zones; repealing
43	s. 212.097, F.S., relating to Urban High Crime area
44	job tax credit; repealing s. 212.098, F.S., relating
45	to rural job tax credit; providing for future repeal
46	of certain provisions of ss. 212.02, 212.03, 212.031,
47	212.04, 212.05, 212.0506, 212.06, 212.0601, 212.07,
48	212.081, 212.12, 212.20, and 376.75, F.S., relating to
49	various sales and use tax exemptions, exclusions, and
50	credits; providing exceptions; providing effective
51	dates.
52
53	WHEREAS, Florida's current budget difficulties require the
54	state to consider innovative solutions in addressing the long-
55	term viability of the state's tax structure, and
56	WHEREAS, the state's tax structure should treat individuals
57	fairly and equitably, imposing similar tax burdens on people in
58	similar circumstances, and
59	WHEREAS, exemptions to the state's sales tax should serve
60	an important state interest and should be uniform in the effect
61	on citizens of the state, and
62	WHEREAS, the Legislature finds that a periodic sunset and
63	review of all sales tax exemptions will serve to restore
64	fairness to the state's tax structure, NOW, THEREFORE,
65
66	Be It Enacted by the Legislature of the State of Florida:
67
68	Section 1.  The Senate and the House of Representatives
69	shall appoint a Joint Legislative Review Committee for the
70	purposes of overseeing the review of exemptions from the tax on
71	sales, use, and other transactions required by s. 11.9035,
72	Florida Statutes, and making recommendations to the Legislature
73	regarding the review of exemptions.
74	Section 2.  Section 11.9035, Florida Statutes, is created
75	to read:
76	11.9035  Sales and use tax exemption and exclusion review.-
77	(1)  SHORT TITLE.-This section may be cited as the "Florida
78	Sales Tax Fairness Restoration Act."
79	(2)  SALES TAX EXEMPTIONS REVIEW.-The Joint Legislative
80	Review Committee shall conduct comprehensive, periodic reviews
81	of all exemptions from the general state sales and use tax and
82	exclusions of sales of services from such taxation as provided
83	by this section.
84	(3)  PROCEDURES.-The committee for each review cycle shall
85	have its initial meeting no later than September 1, 2012, and
86	thereafter as necessary at the call of the chair at the time and
87	place designated by the chair. A quorum shall consist of a
88	majority of the committee members from each house. During the
89	interim between regular sessions, the committee may conduct its
90	meetings through teleconferences or other similar means.
91	(4)  RULES.-For purposes of this section, the committee
92	shall be governed by joint rules adopted by the Legislature
93	pursuant to the authority to adopt rules under s. 4, Art. III of
94	the State Constitution.
95	(5)  DEFINITIONS.-As used in this section, the term:
96	(a)  "General state sales and use tax" means the sales and
97	use tax imposed under chapter 212.
98	(b)  "Service" means a service within any of the following
99	service categories under the North American Industry
100	Classification System (NAICS):
101	1.  Personal services.
102	2.  Professional services.
103	3.  Business services.
104	4.  Financial services.
105	5.  Media services.
106	6.  Entertainment and sports services.
107	7.  Construction services.
108	8.  Institutional services.
109	9.  Transportation services.
110	10.  Health services.
111	(6)  POWERS AND DUTIES.-The committee shall have the power
112	and duty to conduct a comprehensive review of all current and
113	future exemptions from the general state sales and use tax and
114	the exclusion of sales of services from such taxation. The
115	committee shall establish criteria by which each exemption or
116	exclusion shall be evaluated. In developing the evaluation
117	criteria, the committee shall consider the following principles
118	of taxation:
119	(a)  Equity.-The tax system should treat individuals
120	equitably. It should impose similar tax burdens on people in
121	similar circumstances and should minimize regressivity.
122	(b)  Simplicity, transparency, and compliance.-The tax
123	system should facilitate taxpayer compliance. It should be
124	simple and easy to understand and should provide visibility and
125	awareness of the taxes being paid.
126	(c)  Neutrality.-The tax system should affect taxpayers
127	uniformly and consistently. The primary purpose of any tax
128	should be to raise revenue for appropriate governmental
129	functions, rather than to influence business and personal
130	decisions.
131	(d)  Stability.-The tax system should produce revenues in a
132	stable and reliable manner that is sufficient to fund
133	appropriate governmental functions and expenditures.
134	(e)  Integration.-The tax system should balance the need
135	for integration of federal, state, and local taxation.
136	(f)  Public purpose.-Any sales and use tax exemption or
137	exclusion under the tax system should be based upon a
138	determination that the exemption or exclusion promotes an
139	important state interest and should benefit citizens as equally
140	as possible.
141	(7)  FINDINGS AND RECOMMENDATIONS.-In conducting its review
142	of each exemption from the general state sales and use tax or
143	the exclusion of the sale of a service from such taxation, the
144	committee shall make findings of fact and recommend whether the
145	exemption should be retained, modified, or repealed or whether
146	the exclusion should be retained or eliminated. Each
147	recommendation must be made by majority vote of the committee
148	members from each house. If a majority vote of the committee
149	members from each house cannot be achieved, the committee must
150	recommend that the exemption or exclusion be repealed. The
151	findings of fact and recommendations of the committee shall be
152	made by reports to the President of the Senate and the Speaker
153	of the House of Representatives.
154	(8)  EXEMPTIONS AND EXCLUSIONS REVIEW.-
155	(a)  The committee may use its discretion in determining
156	the order in which it reviews the exemptions and exclusions. For
157	the initial review, the committee shall submit, to the President
158	of the Senate and the Speaker of the House of Representatives,
159	its initial report on one-third of the exemptions and exclusions
160	by November 1, 2012, its report on the second one-third of the
161	exemptions and exclusions by March 1, 2013, and its report on
162	the final one-third of the exemptions and exclusions by July 1,
163	2013, with no duplication of exemptions or exclusions from one
164	report to the next. Thereafter, the committee shall review every
165	3 years approximately one-third of the exemptions and exclusions
166	with no duplication of exemptions or exclusions reviewed from
167	one 3-year period to the next 3-year period. The committee shall
168	submit its 3-year period review reports no later than December 1
169	of the year before the next regular session after the third year
170	of each 3-year review cycle. The committee shall begin a new 9-
171	year review cycle of all exemptions from the general state sales
172	and use tax and all exclusions of sales of services from such
173	taxation every 9 years after the termination of the previous
174	review cycle.
175	(b)  Notwithstanding the provisions of this section,
176	exemptions and exclusions for necessities, including, but not
177	limited to, exemptions for general groceries as described in s.
178	212.08(1), exemptions for medical products or supplies as
179	described in s. 212.08(2), health services, residential housing,
180	residential electricity, and home heating fuel, and sales of
181	property or services that the state is prohibited from taxing
182	under the Constitution or laws of the United States may not be
183	subject to review by the committee or repeal in legislation
184	proposed by the committee.
185	(9)  LEGISLATION.-At the regular session after submission
186	of each annual report to the Speaker of the House of
187	Representatives and the President of the Senate, the committee
188	shall introduce in both houses of the Legislature bills
189	presenting for reenactment, modification, or repeal those
190	exemptions from the general state sales and use tax or any
191	imposition of such taxation on sales of services that were
192	recommended by the committee in the report submitted immediately
193	before the session in which introduced. Each bill introduced
194	must be restricted to a single exemption or the imposition of
195	the tax on a single service and must be submitted to a vote of
196	the members of each house of the Legislature no later than the
197	eighth week of the session in which introduced, unless the
198	substance of the bill has already been voted on by the members
199	of that house of the Legislature in another bill during that
200	session and either passed or defeated or the bill has already
201	been submitted to the members of the other house and has been
202	defeated.
203	(10)  REPEAL.-Any exemption from the state general sales
204	and use tax or exemption from imposition of such tax on sales of
205	services, that is not prohibited from review by the committee
206	under the requirements of paragraph (8)(b) and is not modified
207	or reenacted by the end of the regular session after any 9-year
208	review period, stands repealed on July 1 after the end of the
209	regular session immediately after the 9-year review period.
210	(11)  CONSTRUCTION.-This section does not preclude a
211	legislator from filing for any legislative session a bill
212	proposing to modify, repeal, or enact any exemption from the
213	general state sales and use tax or the imposition of such
214	taxation on the sales of any service.
215	Section 3.  Effective July 1, 2015, section 212.08, Florida
216	Statutes, is amended to read:
217	212.08  Sales, rental, use, consumption, distribution, and
218	storage tax; specified exemptions.-The sale at retail, the
219	rental, the use, the consumption, the distribution, and the
220	storage to be used or consumed in this state of the following
221	are hereby specifically exempt from the tax imposed by this
222	chapter.
223	(1)  EXEMPTIONS; GENERAL GROCERIES.-
224	(a)  Food products for human consumption are exempt from
225	the tax imposed by this chapter.
226	(b)  For the purpose of this chapter, as used in this
227	subsection, the term "food products" means edible commodities,
228	whether processed, cooked, raw, canned, or in any other form,
229	which are generally regarded as food. This includes, but is not
230	limited to, all of the following:
231	1.  Cereals and cereal products, baked goods,
232	oleomargarine, meat and meat products, fish and seafood
233	products, frozen foods and dinners, poultry, eggs and egg
234	products, vegetables and vegetable products, fruit and fruit
235	products, spices, salt, sugar and sugar products, milk and dairy
236	products, and products intended to be mixed with milk.
237	2.  Natural fruit or vegetable juices or their concentrates
238	or reconstituted natural concentrated fruit or vegetable juices,
239	whether frozen or unfrozen, dehydrated, powdered, granulated,
240	sweetened or unsweetened, seasoned with salt or spice, or
241	unseasoned; coffee, coffee substitutes, or cocoa; and tea,
242	unless it is sold in a liquid form.
243	3.  Bakery products sold by bakeries, pastry shops, or like
244	establishments that do not have eating facilities.
245	(c)  The exemption provided by this subsection does not
246	apply to:
247	1.   Food products sold as meals for consumption on or off
248	the premises of the dealer.
249	2.  Food products furnished, prepared, or served for
250	consumption at tables, chairs, or counters or from trays,
251	glasses, dishes, or other tableware, whether provided by the
252	dealer or by a person with whom the dealer contracts to furnish,
253	prepare, or serve food products to others.
254	3.  Food products ordinarily sold for immediate consumption
255	on the seller's premises or near a location at which parking
256	facilities are provided primarily for the use of patrons in
257	consuming the products purchased at the location, even though
258	such products are sold on a "take out" or "to go" order and are
259	actually packaged or wrapped and taken from the premises of the
260	dealer.
261	4.  Sandwiches sold ready for immediate consumption on or
262	off the seller's premises.
263	5.  Food products sold ready for immediate consumption
264	within a place, the entrance to which is subject to an admission
265	charge.
266	6.  Food products sold as hot prepared food products.
267	7.  Soft drinks, including, but not limited to, any
268	nonalcoholic beverage, any preparation or beverage commonly
269	referred to as a "soft drink," or any noncarbonated drink made
270	from milk derivatives or tea, if sold in cans or similar
271	containers.
272	8.  Ice cream, frozen yogurt, and similar frozen dairy or
273	nondairy products in cones, small cups, or pints, popsicles,
274	frozen fruit bars, or other novelty items, whether or not sold
275	separately.
276	9.  Food that is prepared, whether on or off the premises,
277	and sold for immediate consumption. This does not apply to food
278	prepared off the premises and sold in the original sealed
279	container, or the slicing of products into smaller portions.
280	10.  Food products sold through a vending machine,
281	pushcart, motor vehicle, or any other form of vehicle.
282	11.  Candy and any similar product regarded as candy or
283	confection, based on its normal use, as indicated on the label
284	or advertising thereof.
285	12.  Bakery products sold by bakeries, pastry shops, or
286	like establishments having eating facilities, except when sold
287	for consumption off the seller's premises.
288	13.  Food products served, prepared, or sold in or by
289	restaurants, lunch counters, cafeterias, hotels, taverns, or
290	other like places of business.
291	(d)  As used in this subsection, the term:
292	1.  "For consumption off the seller's premises" means that
293	the food or drink is intended by the customer to be consumed at
294	a place away from the dealer's premises.
295	2.  "For consumption on the seller's premises" means that
296	the food or drink sold may be immediately consumed on the
297	premises where the dealer conducts his or her business. In
298	determining whether an item of food is sold for immediate
299	consumption, the customary consumption practices prevailing at
300	the selling facility shall be considered.
301	3.  "Premises" shall be construed broadly, and means, but
302	is not limited to, the lobby, aisle, or auditorium of a theater;
303	the seating, aisle, or parking area of an arena, rink, or
304	stadium; or the parking area of a drive-in or outdoor theater.
305	The premises of a caterer with respect to catered meals or
306	beverages shall be the place where such meals or beverages are
307	served.
308	4.  "Hot prepared food products" means those products,
309	items, or components which have been prepared for sale in a
310	heated condition and which are sold at any temperature that is
311	higher than the air temperature of the room or place where they
312	are sold. "Hot prepared food products," for the purposes of this
313	subsection, includes a combination of hot and cold food items or
314	components where a single price has been established for the
315	combination and the food products are sold in such combination,
316	such as a hot meal, a hot specialty dish or serving, or a hot
317	sandwich or hot pizza, including cold components or side items.
318	(e)1.  Food or drinks not exempt under paragraphs (a), (b),
319	(c), and (d) are exempt, notwithstanding those paragraphs, when
320	purchased with food coupons or Special Supplemental Food Program
321	for Women, Infants, and Children vouchers issued under authority
322	of federal law.
323	2.  This paragraph is effective only while federal law
324	prohibits a state's participation in the federal food coupon
325	program or Special Supplemental Food Program for Women, Infants,
326	and Children if there is an official determination that state or
327	local sales taxes are collected within that state on purchases
328	of food or drinks with such coupons.
329	3.  This paragraph shall not apply to any food or drinks on
330	which federal law shall permit sales taxes without penalty, such
331	as termination of the state's participation.
332	(f)  The application of the tax on a package that contains
333	exempt food products and taxable nonfood products depends upon
334	the essential character of the complete package.
335	1.  If the taxable items represent more than 25 percent of
336	the cost of the complete package and a single charge is made,
337	the entire sales price of the package is taxable. If the taxable
338	items are separately stated, the separate charge for the taxable
339	items is subject to tax.
340	2.  If the taxable items represent 25 percent or less of
341	the cost of the complete package and a single charge is made,
342	the entire sales price of the package is exempt from tax. The
343	person preparing the package is liable for the tax on the cost
344	of the taxable items going into the complete package. If the
345	taxable items are separately stated, the separate charge is
346	subject to tax.
347	(2)  EXEMPTIONS; MEDICAL.-
348	(a)  There shall be exempt from the tax imposed by this
349	chapter any medical products and supplies or medicine dispensed
350	according to an individual prescription or prescriptions written
351	by a prescriber authorized by law to prescribe medicinal drugs;
352	hypodermic needles; hypodermic syringes; chemical compounds and
353	test kits used for the diagnosis or treatment of human disease,
354	illness, or injury; and common household remedies recommended
355	and generally sold for internal or external use in the cure,
356	mitigation, treatment, or prevention of illness or disease in
357	human beings, but not including cosmetics or toilet articles,
358	notwithstanding the presence of medicinal ingredients therein,
359	according to a list prescribed and approved by the Department of
360	Health, which list shall be certified to the Department of
361	Revenue from time to time and included in the rules promulgated
362	by the Department of Revenue. There shall also be exempt from
363	the tax imposed by this chapter artificial eyes and limbs;
364	orthopedic shoes; prescription eyeglasses and items incidental
365	thereto or which become a part thereof; dentures; hearing aids;
366	crutches; prosthetic and orthopedic appliances; and funerals. In
367	addition, any items intended for one-time use which transfer
368	essential optical characteristics to contact lenses shall be
369	exempt from the tax imposed by this chapter; however, this
370	exemption shall apply only after $100,000 of the tax imposed by
371	this chapter on such items has been paid in any calendar year by
372	a taxpayer who claims the exemption in such year. Funeral
373	directors shall pay tax on all tangible personal property used
374	by them in their business.
375	(b)  For the purposes of this subsection:
376	1.  "Prosthetic and orthopedic appliances" means any
377	apparatus, instrument, device, or equipment used to replace or
378	substitute for any missing part of the body, to alleviate the
379	malfunction of any part of the body, or to assist any disabled
380	person in leading a normal life by facilitating such person's
381	mobility. Such apparatus, instrument, device, or equipment shall
382	be exempted according to an individual prescription or
383	prescriptions written by a physician licensed under chapter 458,
384	chapter 459, chapter 460, chapter 461, or chapter 466, or
385	according to a list prescribed and approved by the Department of
386	Health, which list shall be certified to the Department of
387	Revenue from time to time and included in the rules promulgated
388	by the Department of Revenue.
389	2.  "Cosmetics" means articles intended to be rubbed,
390	poured, sprinkled, or sprayed on, introduced into, or otherwise
391	applied to the human body for cleansing, beautifying, promoting
392	attractiveness, or altering the appearance and also means
393	articles intended for use as a compound of any such articles,
394	including, but not limited to, cold creams, suntan lotions,
395	makeup, and body lotions.
396	3.  "Toilet articles" means any article advertised or held
397	out for sale for grooming purposes and those articles that are
398	customarily used for grooming purposes, regardless of the name
399	by which they may be known, including, but not limited to, soap,
400	toothpaste, hair spray, shaving products, colognes, perfumes,
401	shampoo, deodorant, and mouthwash.
402	4.  "Prescription" includes any order for drugs or
403	medicinal supplies written or transmitted by any means of
404	communication by a duly licensed practitioner authorized by the
405	laws of the state to prescribe such drugs or medicinal supplies
406	and intended to be dispensed by a pharmacist. The term also
407	includes an orally transmitted order by the lawfully designated
408	agent of such practitioner. The term also includes an order
409	written or transmitted by a practitioner licensed to practice in
410	a jurisdiction other than this state, but only if the pharmacist
411	called upon to dispense such order determines, in the exercise
412	of his or her professional judgment, that the order is valid and
413	necessary for the treatment of a chronic or recurrent illness.
414	The term also includes a pharmacist's order for a product
415	selected from the formulary created pursuant to s. 465.186. A
416	prescription may be retained in written form, or the pharmacist
417	may cause it to be recorded in a data processing system,
418	provided that such order can be produced in printed form upon
419	lawful request.
420	(c)  Chlorine shall not be exempt from the tax imposed by
421	this chapter when used for the treatment of water in swimming
422	pools.
423	(d)  Lithotripters are exempt.
424	(e)  Human organs are exempt.
425	(f)  Sales of drugs to or by physicians, dentists,
426	veterinarians, and hospitals in connection with medical
427	treatment are exempt.
428	(g)  Medical products and supplies used in the cure,
429	mitigation, alleviation, prevention, or treatment of injury,
430	disease, or incapacity which are temporarily or permanently
431	incorporated into a patient or client by a practitioner of the
432	healing arts licensed in the state are exempt.
433	(h)  The purchase by a veterinarian of commonly recognized
434	substances possessing curative or remedial properties which are
435	ordered and dispensed as treatment for a diagnosed health
436	disorder by or on the prescription of a duly licensed
437	veterinarian, and which are applied to or consumed by animals
438	for alleviation of pain or the cure or prevention of sickness,
439	disease, or suffering are exempt. Also exempt are the purchase
440	by a veterinarian of antiseptics, absorbent cotton, gauze for
441	bandages, lotions, vitamins, and worm remedies.
442	(i)  X-ray opaques, also known as opaque drugs and
443	radiopaque, such as the various opaque dyes and barium sulphate,
444	when used in connection with medical X rays for treatment of
445	bodies of humans and animals, are exempt.
446	(j)  Parts, special attachments, special lettering, and
447	other like items that are added to or attached to tangible
448	personal property so that a handicapped person can use them are
449	exempt when such items are purchased by a person pursuant to an
450	individual prescription.
451	(k)  This subsection shall be strictly construed and
452	enforced.
453	(3)  EXEMPTIONS; CERTAIN FARM EQUIPMENT.-There shall be no
454	tax on the sale, rental, lease, use, consumption, or storage for
455	use in this state of power farm equipment used exclusively on a
456	farm or in a forest in the agricultural production of crops or
457	products as produced by those agricultural industries included
458	in s. 570.02(1), or for fire prevention and suppression work
459	with respect to such crops or products. Harvesting may not be
460	construed to include processing activities. This exemption is
461	not forfeited by moving farm equipment between farms or forests.
462	However, this exemption shall not be allowed unless the
463	purchaser, renter, or lessee signs a certificate stating that
464	the farm equipment is to be used exclusively on a farm or in a
465	forest for agricultural production or for fire prevention and
466	suppression, as required by this subsection. Possession by a
467	seller, lessor, or other dealer of a written certification by
468	the purchaser, renter, or lessee certifying the purchaser's,
469	renter's, or lessee's entitlement to an exemption permitted by
470	this subsection relieves the seller from the responsibility of
471	collecting the tax on the nontaxable amounts, and the department
472	shall look solely to the purchaser for recovery of such tax if
473	it determines that the purchaser was not entitled to the
474	exemption.
475	(4)  EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.-
476	(a)  Also exempt are:
477	1.  Water delivered to the purchaser through pipes or
478	conduits or delivered for irrigation purposes. The sale of
479	drinking water in bottles, cans, or other containers, including
480	water that contains minerals or carbonation in its natural state
481	or water to which minerals have been added at a water treatment
482	facility regulated by the Department of Environmental Protection
483	or the Department of Health, is exempt. This exemption does not
484	apply to the sale of drinking water in bottles, cans, or other
485	containers if carbonation or flavorings, except those added at a
486	water treatment facility, have been added. Water that has been
487	enhanced by the addition of minerals and that does not contain
488	any added carbonation or flavorings is also exempt.
489	2.  All fuels used by a public or private utility,
490	including any municipal corporation or rural electric
491	cooperative association, in the generation of electric power or
492	energy for sale. Fuel other than motor fuel and diesel fuel is
493	taxable as provided in this chapter with the exception of fuel
494	expressly exempt herein. Motor fuels and diesel fuels are
495	taxable as provided in chapter 206, with the exception of those
496	motor fuels and diesel fuels used by railroad locomotives or
497	vessels to transport persons or property in interstate or
498	foreign commerce, which are taxable under this chapter only to
499	the extent provided herein. The basis of the tax shall be the
500	ratio of intrastate mileage to interstate or foreign mileage
501	traveled by the carrier's railroad locomotives or vessels that
502	were used in interstate or foreign commerce and that had at
503	least some Florida mileage during the previous fiscal year of
504	the carrier, such ratio to be determined at the close of the
505	fiscal year of the carrier. However, during the fiscal year in
506	which the carrier begins its initial operations in this state,
507	the carrier's mileage apportionment factor may be determined on
508	the basis of an estimated ratio of anticipated miles in this
509	state to anticipated total miles for that year, and
510	subsequently, additional tax shall be paid on the motor fuel and
511	diesel fuels, or a refund may be applied for, on the basis of
512	the actual ratio of the carrier's railroad locomotives' or
513	vessels' miles in this state to its total miles for that year.
514	This ratio shall be applied each month to the total Florida
515	purchases made in this state of motor and diesel fuels to
516	establish that portion of the total used and consumed in
517	intrastate movement and subject to tax under this chapter. The
518	basis for imposition of any discretionary surtax shall be set
519	forth in s. 212.054. Fuels used exclusively in intrastate
520	commerce do not qualify for the proration of tax.
521	3.  The transmission or wheeling of electricity.
522	(b)  Alcoholic beverages and malt beverages are not exempt.
523	The terms "alcoholic beverages" and "malt beverages" as used in
524	this paragraph have the same meanings ascribed to them in ss.
525	561.01(4) and 563.01, respectively. It is determined by the
526	Legislature that the classification of alcoholic beverages made
527	in this paragraph for the purpose of extending the tax imposed
528	by this chapter is reasonable and just, and it is intended that
529	such tax be separate from, and in addition to, any other tax
530	imposed on alcoholic beverages.
531	(5)  EXEMPTIONS; ACCOUNT OF USE.-
532	(a)  Items in agricultural use and certain nets.-There are
533	exempt from the tax imposed by this chapter nets designed and
534	used exclusively by commercial fisheries; disinfectants,
535	fertilizers, insecticides, pesticides, herbicides, fungicides,
536	and weed killers used for application on crops or groves,
537	including commercial nurseries and home vegetable gardens, used
538	in dairy barns or on poultry farms for the purpose of protecting
539	poultry or livestock, or used directly on poultry or livestock;
540	portable containers or movable receptacles in which portable
541	containers are placed, used for processing farm products; field
542	and garden seeds, including flower seeds; nursery stock,
543	seedlings, cuttings, or other propagative material purchased for
544	growing stock; seeds, seedlings, cuttings, and plants used to
545	produce food for human consumption; cloth, plastic, and other
546	similar materials used for shade, mulch, or protection from
547	frost or insects on a farm; generators used on poultry farms;
548	and liquefied petroleum gas or other fuel used to heat a
549	structure in which started pullets or broilers are raised;
550	however, such exemption shall not be allowed unless the
551	purchaser or lessee signs a certificate stating that the item to
552	be exempted is for the exclusive use designated herein. Also
553	exempt are cellophane wrappers, glue for tin and glass
554	(apiarists), mailing cases for honey, shipping cases, window
555	cartons, and baling wire and twine used for baling hay, when
556	used by a farmer to contain, produce, or process an agricultural
557	commodity.
558	(b)  Machinery and equipment used to increase productive
559	output.-
560	1.  Industrial machinery and equipment purchased for
561	exclusive use by a new business in spaceport activities as
562	defined by s. 212.02 or for use in new businesses that
563	manufacture, process, compound, or produce for sale items of
564	tangible personal property at fixed locations are exempt from
565	the tax imposed by this chapter upon an affirmative showing by
566	the taxpayer to the satisfaction of the department that such
567	items are used in a new business in this state. Such purchases
568	must be made prior to the date the business first begins its
569	productive operations, and delivery of the purchased item must
570	be made within 12 months after that date.
571	2.  Industrial machinery and equipment purchased for
572	exclusive use by an expanding facility which is engaged in
573	spaceport activities as defined by s. 212.02 or for use in
574	expanding manufacturing facilities or plant units which
575	manufacture, process, compound, or produce for sale items of
576	tangible personal property at fixed locations in this state are
577	exempt from any amount of tax imposed by this chapter upon an
578	affirmative showing by the taxpayer to the satisfaction of the
579	department that such items are used to increase the productive
580	output of such expanded facility or business by not less than 10
581	percent.
582	3.a.  To receive an exemption provided by subparagraph 1.
583	or subparagraph 2., a qualifying business entity shall apply to
584	the department for a temporary tax exemption permit. The
585	application shall state that a new business exemption or
586	expanded business exemption is being sought. Upon a tentative
587	affirmative determination by the department pursuant to
588	subparagraph 1. or subparagraph 2., the department shall issue
589	such permit.
590	b.  The applicant shall maintain all necessary books and
591	records to support the exemption. Upon completion of purchases
592	of qualified machinery and equipment pursuant to subparagraph 1.
593	or subparagraph 2., the temporary tax permit shall be delivered
594	to the department or returned to the department by certified or
595	registered mail.
596	c.  If, in a subsequent audit conducted by the department,
597	it is determined that the machinery and equipment purchased as
598	exempt under subparagraph 1. or subparagraph 2. did not meet the
599	criteria mandated by this paragraph or if commencement of
600	production did not occur, the amount of taxes exempted at the
601	time of purchase shall immediately be due and payable to the
602	department by the business entity, together with the appropriate
603	interest and penalty, computed from the date of purchase, in the
604	manner prescribed by this chapter.
605	d.  If a qualifying business entity fails to apply for a
606	temporary exemption permit or if the tentative determination by
607	the department required to obtain a temporary exemption permit
608	is negative, a qualifying business entity shall receive the
609	exemption provided in subparagraph 1. or subparagraph 2. through
610	a refund of previously paid taxes. No refund may be made for
611	such taxes unless the criteria mandated by subparagraph 1. or
612	subparagraph 2. have been met and commencement of production has
613	occurred.
614	4.  The department shall adopt rules governing applications
615	for, issuance of, and the form of temporary tax exemption
616	permits; provisions for recapture of taxes; and the manner and
617	form of refund applications, and may establish guidelines as to
618	the requisites for an affirmative showing of increased
619	productive output, commencement of production, and qualification
620	for exemption.
621	5.  The exemptions provided in subparagraphs 1. and 2. do
622	not apply to machinery or equipment purchased or used by
623	electric utility companies, communications companies, oil or gas
624	exploration or production operations, publishing firms that do
625	not export at least 50 percent of their finished product out of
626	the state, any firm subject to regulation by the Division of
627	Hotels and Restaurants of the Department of Business and
628	Professional Regulation, or any firm that does not manufacture,
629	process, compound, or produce for sale items of tangible
630	personal property or that does not use such machinery and
631	equipment in spaceport activities as required by this paragraph.
632	The exemptions provided in subparagraphs 1. and 2. shall apply
633	to machinery and equipment purchased for use in phosphate or
634	other solid minerals severance, mining, or processing
635	operations.
636	6.  For the purposes of the exemptions provided in
637	subparagraphs 1. and 2., these terms have the following
638	meanings:
639	a.  "Industrial machinery and equipment" means tangible
640	personal property or other property that has a depreciable life
641	of 3 years or more and that is used as an integral part in the
642	manufacturing, processing, compounding, or production of
643	tangible personal property for sale or is exclusively used in
644	spaceport activities. A building and its structural components
645	are not industrial machinery and equipment unless the building
646	or structural component is so closely related to the industrial
647	machinery and equipment that it houses or supports that the
648	building or structural component can be expected to be replaced
649	when the machinery and equipment are replaced. Heating and air-
650	conditioning systems are not industrial machinery and equipment
651	unless the sole justification for their installation is to meet
652	the requirements of the production process, even though the
653	system may provide incidental comfort to employees or serve, to
654	an insubstantial degree, nonproduction activities. The term
655	includes parts and accessories only to the extent that the
656	exemption thereof is consistent with the provisions of this
657	paragraph.
658	b.  "Productive output" means the number of units actually
659	produced by a single plant, operation, or product line in a
660	single continuous 12-month period, irrespective of sales.
661	Increases in productive output shall be measured by the output
662	for 12 continuous months selected by the expanding business
663	following the completion of installation of such machinery or
664	equipment over the output for the 12 continuous months
665	immediately preceding such installation. However, in no case may
666	such time period begin later than 2 years following the
667	completion of installation of the new machinery and equipment.
668	The units used to measure productive output shall be physically
669	comparable between the two periods, irrespective of sales.
670	(c)  Machinery and equipment used in production of
671	electrical or steam energy.-
672	1.  The purchase of machinery and equipment for use at a
673	fixed location which machinery and equipment are necessary in
674	the production of electrical or steam energy resulting from the
675	burning of boiler fuels other than residual oil is exempt from
676	the tax imposed by this chapter. Such electrical or steam energy
677	must be primarily for use in manufacturing, processing,
678	compounding, or producing for sale items of tangible personal
679	property in this state. Use of a de minimis amount of residual
680	fuel to facilitate the burning of nonresidual fuel shall not
681	reduce the exemption otherwise available under this paragraph.
682	2.  In facilities where machinery and equipment are
683	necessary to burn both residual and nonresidual fuels, the
684	exemption shall be prorated. Such proration shall be based upon
685	the production of electrical or steam energy from nonresidual
686	fuels as a percentage of electrical or steam energy from all
687	fuels. If it is determined that 15 percent or less of all
688	electrical or steam energy generated was produced by burning
689	residual fuel, the full exemption shall apply. Purchasers
690	claiming a partial exemption shall obtain such exemption by
691	refund of taxes paid, or as otherwise provided in the
692	department's rules.
693	3.  The department may adopt rules that provide for
694	implementation of this exemption. Purchasers of machinery and
695	equipment qualifying for the exemption provided in this
696	paragraph shall furnish the vendor with an affidavit stating
697	that the item or items to be exempted are for the use designated
698	herein. Any person furnishing a false affidavit to the vendor
699	for the purpose of evading payment of any tax imposed under this
700	chapter shall be subject to the penalty set forth in s. 212.085
701	and as otherwise provided by law. Purchasers with self-accrual
702	authority shall maintain all documentation necessary to prove
703	the exempt status of purchases.
704	(d)  Machinery and equipment used under federal procurement
705	contract.-
706	1.  Industrial machinery and equipment purchased by an
707	expanding business which manufactures tangible personal property
708	pursuant to federal procurement regulations at fixed locations
709	in this state are exempt from the tax imposed in this chapter
710	upon an affirmative showing by the taxpayer to the satisfaction
711	of the department that such items are used to increase the
712	implicit productive output of the expanded business by not less
713	than 10 percent. The percentage of increase is measured as
714	deflated implicit productive output for the calendar year during
715	which the installation of the machinery or equipment is
716	completed or during which commencement of production utilizing
717	such items is begun divided by the implicit productive output
718	for the preceding calendar year. In no case may the commencement
719	of production begin later than 2 years following completion of
720	installation of the machinery or equipment.
721	2.  The amount of the exemption allowed shall equal the
722	taxes otherwise imposed by this chapter on qualifying industrial
723	machinery or equipment reduced by the percentage of gross
724	receipts from cost-reimbursement type contracts attributable to
725	the plant or operation to total gross receipts so attributable,
726	accrued for the year of completion or commencement.
727	3.  The exemption provided by this paragraph shall inure to
728	the taxpayer only through refund of previously paid taxes. Such
729	refund shall be made within 30 days of formal approval by the
730	department of the taxpayer's application, which application may
731	be made on an annual basis following installation of the
732	machinery or equipment.
733	4.  For the purposes of this paragraph, the term:
734	a.  "Cost-reimbursement type contracts" has the same
735	meaning as in 32 C.F.R. s. 3-405.
736	b.  "Deflated implicit productive output" means the product
737	of implicit productive output times the quotient of the national
738	defense implicit price deflator for the preceding calendar year
739	divided by the deflator for the year of completion or
740	commencement.
741	c.  "Eligible costs" means the total direct and indirect
742	costs, as defined in 32 C.F.R. ss. 15-202 and 15-203, excluding
743	general and administrative costs, selling expenses, and profit,
744	defined by the uniform cost-accounting standards adopted by the
745	Cost-Accounting Standards Board created pursuant to 50 U.S.C. s.
746	2168.
747	d.  "Implicit productive output" means the annual eligible
748	costs attributable to all contracts or subcontracts subject to
749	federal procurement regulations of the single plant or operation
750	at which the machinery or equipment is used.
751	e.  "Industrial machinery and equipment" means tangible
752	personal property or other property that has a depreciable life
753	of 3 years or more, that qualifies as an eligible cost under
754	federal procurement regulations, and that is used as an integral
755	part of the process of production of tangible personal property.
756	A building and its structural components are not industrial
757	machinery and equipment unless the building or structural
758	component is so closely related to the industrial machinery and
759	equipment that it houses or supports that the building or
760	structural component can be expected to be replaced when the
761	machinery and equipment are replaced. Heating and air-
762	conditioning systems are not industrial machinery and equipment
763	unless the sole justification for their installation is to meet
764	the requirements of the production process, even though the
765	system may provide incidental comfort to employees or serve, to
766	an insubstantial degree, nonproduction activities. The term
767	includes parts and accessories only to the extent that the
768	exemption of such parts and accessories is consistent with the
769	provisions of this paragraph.
770	f.  "National defense implicit price deflator" means the
771	national defense implicit price deflator for the gross national
772	product as determined by the Bureau of Economic Analysis of the
773	United States Department of Commerce.
774	5.  The exclusions provided in subparagraph (b)5. apply to
775	this exemption. This exemption applies only to machinery or
776	equipment purchased pursuant to production contracts with the
777	United States Department of Defense and Armed Forces, the
778	National Aeronautics and Space Administration, and other federal
779	agencies for which the contracts are classified for national
780	security reasons. In no event shall the provisions of this
781	paragraph apply to any expanding business the increase in
782	productive output of which could be measured under the
783	provisions of sub-subparagraph (b)6.b. as physically comparable
784	between the two periods.
785	(e)  Gas or electricity used for certain agricultural
786	purposes.-
787	1.  Butane gas, propane gas, natural gas, and all other
788	forms of liquefied petroleum gases are exempt from the tax
789	imposed by this chapter if used in any tractor, vehicle, or
790	other farm equipment which is used exclusively on a farm or for
791	processing farm products on the farm and no part of which gas is
792	used in any vehicle or equipment driven or operated on the
793	public highways of this state. This restriction does not apply
794	to the movement of farm vehicles or farm equipment between
795	farms. The transporting of bees by water and the operating of
796	equipment used in the apiary of a beekeeper is also deemed an
797	exempt use.
798	2.  Electricity used directly or indirectly for production
799	or processing of agricultural products on the farm is exempt
800	from the tax imposed by this chapter. This exemption applies
801	only if the electricity used for the exempt purposes is
802	separately metered. If the electricity is not separately
803	metered, it is conclusively presumed that some portion of the
804	electricity is used for a nonexempt purpose, and all of the
805	electricity used for such purposes is taxable.
806	(f)  Motion picture or video equipment used in motion
807	picture or television production activities and sound recording
808	equipment used in the production of master tapes and master
809	records.-
810	1.  Motion picture or video equipment and sound recording
811	equipment purchased or leased for use in this state in
812	production activities is exempt from the tax imposed by this
813	chapter. The exemption provided by this paragraph shall inure to
814	the taxpayer upon presentation of the certificate of exemption
815	issued to the taxpayer under the provisions of s. 288.1258.
816	2.  For the purpose of the exemption provided in
817	subparagraph 1.:
818	a.  "Motion picture or video equipment" and "sound
819	recording equipment" includes only tangible personal property or
820	other property that has a depreciable life of 3 years or more
821	and that is used by the lessee or purchaser exclusively as an
822	integral part of production activities; however, motion picture
823	or video equipment and sound recording equipment does not
824	include supplies, tape, records, film, or video tape used in
825	productions or other similar items; vehicles or vessels; or
826	general office equipment not specifically suited to production
827	activities. In addition, the term does not include equipment
828	purchased or leased by television or radio broadcasting or cable
829	companies licensed by the Federal Communications Commission.
830	Furthermore, a building and its structural components are not
831	motion picture or video equipment and sound recording equipment
832	unless the building or structural component is so closely
833	related to the motion picture or video equipment and sound
834	recording equipment that it houses or supports that the building
835	or structural component can be expected to be replaced when the
836	motion picture or video equipment and sound recording equipment
837	are replaced. Heating and air-conditioning systems are not
838	motion picture or video equipment and sound recording equipment
839	unless the sole justification for their installation is to meet
840	the requirements of the production activities, even though the
841	system may provide incidental comfort to employees or serve, to
842	an insubstantial degree, nonproduction activities.
843	b.  "Production activities" means activities directed
844	toward the preparation of a:
845	(I)  Master tape or master record embodying sound; or
846	(II)  Motion picture or television production which is
847	produced for theatrical, commercial, advertising, or educational
848	purposes and utilizes live or animated actions or a combination
849	of live and animated actions. The motion picture or television
850	production shall be commercially produced for sale or for
851	showing on screens or broadcasting on television and may be on
852	film or video tape.
853	(g)  Building materials used in the rehabilitation of real
854	property located in an enterprise zone.-
855	1.  Building materials used in the rehabilitation of real
856	property located in an enterprise zone are exempt from the tax
857	imposed by this chapter upon an affirmative showing to the
858	satisfaction of the department that the items have been used for
859	the rehabilitation of real property located in an enterprise
860	zone. Except as provided in subparagraph 2., this exemption
861	inures to the owner, lessee, or lessor at the time the real
862	property is rehabilitated, but only through a refund of
863	previously paid taxes. To receive a refund pursuant to this
864	paragraph, the owner, lessee, or lessor of the rehabilitated
865	real property must file an application under oath with the
866	governing body or enterprise zone development agency having
867	jurisdiction over the enterprise zone where the business is
868	located, as applicable. A single application for a refund may be
869	submitted for multiple, contiguous parcels that were part of a
870	single parcel that was divided as part of the rehabilitation of
871	the property. All other requirements of this paragraph apply to
872	each parcel on an individual basis. The application must
873	include:
874	a.  The name and address of the person claiming the refund.
875	b.  An address and assessment roll parcel number of the
876	rehabilitated real property for which a refund of previously
877	paid taxes is being sought.
878	c.  A description of the improvements made to accomplish
879	the rehabilitation of the real property.
880	d.  A copy of a valid building permit issued by the county
881	or municipal building department for the rehabilitation of the
882	real property.
883	e.  A sworn statement, under penalty of perjury, from the
884	general contractor licensed in this state with whom the
885	applicant contracted to make the improvements necessary to
886	rehabilitate the real property, which lists the building
887	materials used to rehabilitate the real property, the actual
888	cost of the building materials, and the amount of sales tax paid
889	in this state on the building materials. If a general contractor
890	was not used, the applicant, not a general contractor, shall
891	make the sworn statement required by this sub-subparagraph.
892	Copies of the invoices that evidence the purchase of the
893	building materials used in the rehabilitation and the payment of
894	sales tax on the building materials must be attached to the
895	sworn statement provided by the general contractor or by the
896	applicant. Unless the actual cost of building materials used in
897	the rehabilitation of real property and the payment of sales
898	taxes is documented by a general contractor or by the applicant
899	in this manner, the cost of the building materials is deemed to
900	be an amount equal to 40 percent of the increase in assessed
901	value for ad valorem tax purposes.
902	f.  The identifying number assigned pursuant to s. 290.0065
903	to the enterprise zone in which the rehabilitated real property
904	is located.
905	g.  A certification by the local building code inspector
906	that the improvements necessary to rehabilitate the real
907	property are substantially completed.
908	h.  A statement of whether the business is a small business
909	as defined by s. 288.703.
910	i.  If applicable, the name and address of each permanent
911	employee of the business, including, for each employee who is a
912	resident of an enterprise zone, the identifying number assigned
913	pursuant to s. 290.0065 to the enterprise zone in which the
914	employee resides.
915	2.  This exemption inures to a municipality, county, other
916	governmental unit or agency, or nonprofit community-based
917	organization through a refund of previously paid taxes if the
918	building materials used in the rehabilitation are paid for from
919	the funds of a community development block grant, State Housing
920	Initiatives Partnership Program, or similar grant or loan
921	program. To receive a refund, a municipality, county, other
922	governmental unit or agency, or nonprofit community-based
923	organization must file an application that includes the same
924	information required in subparagraph 1. In addition, the
925	application must include a sworn statement signed by the chief
926	executive officer of the municipality, county, other
927	governmental unit or agency, or nonprofit community-based
928	organization seeking a refund which states that the building
929	materials for which a refund is sought were funded by a
930	community development block grant, State Housing Initiatives
931	Partnership Program, or similar grant or loan program.
932	3.  Within 10 working days after receipt of an application,
933	the governing body or enterprise zone development agency shall
934	review the application to determine if it contains all the
935	information required by subparagraph 1. or subparagraph 2. and
936	meets the criteria set out in this paragraph. The governing body
937	or agency shall certify all applications that contain the
938	required information and are eligible to receive a refund. If
939	applicable, the governing body or agency shall also certify if
940	20 percent of the employees of the business are residents of an
941	enterprise zone, excluding temporary and part-time employees.
942	The certification must be in writing, and a copy of the
943	certification shall be transmitted to the executive director of
944	the department. The applicant is responsible for forwarding a
945	certified application to the department within the time
946	specified in subparagraph 4.
947	4.  An application for a refund must be submitted to the
948	department within 6 months after the rehabilitation of the
949	property is deemed to be substantially completed by the local
950	building code inspector or by November 1 after the rehabilitated
951	property is first subject to assessment.
952	5.  Only one exemption through a refund of previously paid
953	taxes for the rehabilitation of real property is permitted for
954	any single parcel of property unless there is a change in
955	ownership, a new lessor, or a new lessee of the real property. A
956	refund may not be granted unless the amount to be refunded
957	exceeds $500. A refund may not exceed the lesser of 97 percent
958	of the Florida sales or use tax paid on the cost of the building
959	materials used in the rehabilitation of the real property as
960	determined pursuant to sub-subparagraph 1.e. or $5,000, or, if
961	at least 20 percent of the employees of the business are
962	residents of an enterprise zone, excluding temporary and part-
963	time employees, the amount of refund may not exceed the lesser
964	of 97 percent of the sales tax paid on the cost of the building
965	materials or $10,000. A refund shall be made within 30 days
966	after formal approval by the department of the application for
967	the refund.
968	6.  The department shall adopt rules governing the manner
969	and form of refund applications and may establish guidelines as
970	to the requisites for an affirmative showing of qualification
971	for exemption under this paragraph.
972	7.  The department shall deduct an amount equal to 10
973	percent of each refund granted under this paragraph from the
974	amount transferred into the Local Government Half-cent Sales Tax
975	Clearing Trust Fund pursuant to s. 212.20 for the county area in
976	which the rehabilitated real property is located and shall
977	transfer that amount to the General Revenue Fund.
978	8.  For the purposes of the exemption provided in this
979	paragraph, the term:
980	a.  "Building materials" means tangible personal property
981	that becomes a component part of improvements to real property.
982	b.  "Real property" has the same meaning as provided in s.
983	192.001(12), except that the term does not include a condominium
984	parcel or condominium property as defined in s. 718.103.
985	c.  "Rehabilitation of real property" means the
986	reconstruction, renovation, restoration, rehabilitation,
987	construction, or expansion of improvements to real property.
988	d.  "Substantially completed" has the same meaning as
989	provided in s. 192.042(1).
990	9.  This paragraph expires on the date specified in s.
991	290.016 for the expiration of the Florida Enterprise Zone Act.
992	(h)  Business property used in an enterprise zone.-
993	1.  Business property purchased for use by businesses
994	located in an enterprise zone which is subsequently used in an
995	enterprise zone shall be exempt from the tax imposed by this
996	chapter. This exemption inures to the business only through a
997	refund of previously paid taxes. A refund shall be authorized
998	upon an affirmative showing by the taxpayer to the satisfaction
999	of the department that the requirements of this paragraph have
1000	been met.
1001	2.  To receive a refund, the business must file under oath
1002	with the governing body or enterprise zone development agency
1003	having jurisdiction over the enterprise zone where the business
1004	is located, as applicable, an application which includes:
1005	a.  The name and address of the business claiming the
1006	refund.
1007	b.  The identifying number assigned pursuant to s. 290.0065
1008	to the enterprise zone in which the business is located.
1009	c.  A specific description of the property for which a
1010	refund is sought, including its serial number or other permanent
1011	identification number.
1012	d.  The location of the property.
1013	e.  The sales invoice or other proof of purchase of the
1014	property, showing the amount of sales tax paid, the date of
1015	purchase, and the name and address of the sales tax dealer from
1016	whom the property was purchased.
1017	f.  Whether the business is a small business as defined by
1018	s. 288.703.
1019	g.  If applicable, the name and address of each permanent
1020	employee of the business, including, for each employee who is a
1021	resident of an enterprise zone, the identifying number assigned
1022	pursuant to s. 290.0065 to the enterprise zone in which the
1023	employee resides.
1024	3.  Within 10 working days after receipt of an application,
1025	the governing body or enterprise zone development agency shall
1026	review the application to determine if it contains all the
1027	information required pursuant to subparagraph 2. and meets the
1028	criteria set out in this paragraph. The governing body or agency
1029	shall certify all applications that contain the information
1030	required pursuant to subparagraph 2. and meet the criteria set
1031	out in this paragraph as eligible to receive a refund. If
1032	applicable, the governing body or agency shall also certify if
1033	20 percent of the employees of the business are residents of an
1034	enterprise zone, excluding temporary and part-time employees.
1035	The certification shall be in writing, and a copy of the
1036	certification shall be transmitted to the executive director of
1037	the Department of Revenue. The business shall be responsible for
1038	forwarding a certified application to the department within the
1039	time specified in subparagraph 4.
1040	4.  An application for a refund pursuant to this paragraph
1041	must be submitted to the department within 6 months after the
1042	tax is due on the business property that is purchased.
1043	5.  The amount refunded on purchases of business property
1044	under this paragraph shall be the lesser of 97 percent of the
1045	sales tax paid on such business property or $5,000, or, if no
1046	less than 20 percent of the employees of the business are
1047	residents of an enterprise zone, excluding temporary and part-
1048	time employees, the amount refunded on purchases of business
1049	property under this paragraph shall be the lesser of 97 percent
1050	of the sales tax paid on such business property or $10,000. A
1051	refund approved pursuant to this paragraph shall be made within
1052	30 days after formal approval by the department of the
1053	application for the refund. A refund may not be granted under
1054	this paragraph unless the amount to be refunded exceeds $100 in
1055	sales tax paid on purchases made within a 60-day time period.
1056	6.  The department shall adopt rules governing the manner
1057	and form of refund applications and may establish guidelines as
1058	to the requisites for an affirmative showing of qualification
1059	for exemption under this paragraph.
1060	7.  If the department determines that the business property
1061	is used outside an enterprise zone within 3 years from the date
1062	of purchase, the amount of taxes refunded to the business
1063	purchasing such business property shall immediately be due and
1064	payable to the department by the business, together with the
1065	appropriate interest and penalty, computed from the date of
1066	purchase, in the manner provided by this chapter.
1067	Notwithstanding this subparagraph, business property used
1068	exclusively in:
1069	a.  Licensed commercial fishing vessels,
1070	b.  Fishing guide boats, or
1071	c.  Ecotourism guide boats
1072
1073	that leave and return to a fixed location within an area
1074	designated under s. 379.2353, Florida Statutes 2010, are
1075	eligible for the exemption provided under this paragraph if all
1076	requirements of this paragraph are met. Such vessels and boats
1077	must be owned by a business that is eligible to receive the
1078	exemption provided under this paragraph. This exemption does not
1079	apply to the purchase of a vessel or boat.
1080	8.  The department shall deduct an amount equal to 10
1081	percent of each refund granted under this paragraph from the
1082	amount transferred into the Local Government Half-cent Sales Tax
1083	Clearing Trust Fund pursuant to s. 212.20 for the county area in
1084	which the business property is located and shall transfer that
1085	amount to the General Revenue Fund.
1086	9.  For the purposes of this exemption, "business property"
1087	means new or used property defined as "recovery property" in s.
1088	168(c) of the Internal Revenue Code of 1954, as amended, except:
1089	a.  Property classified as 3-year property under s.
1090	168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
1091	b.  Industrial machinery and equipment as defined in sub-
1092	subparagraph (b)6.a. and eligible for exemption under paragraph
1093	(b);
1094	c.  Building materials as defined in sub-subparagraph
1095	(g)8.a.; and
1096	d.  Business property having a sales price of under $5,000
1097	per unit.
1098	10.  This paragraph expires on the date specified in s.
1099	290.016 for the expiration of the Florida Enterprise Zone Act.
1100	(i)  Aircraft modification services.-There shall be exempt
1101	from the tax imposed by this chapter all charges for aircraft
1102	modification services, including parts and equipment furnished
1103	or installed in connection therewith, performed under authority
1104	of a supplemental type certificate issued by the Federal
1105	Aviation Administration.
1106	(j)  Machinery and equipment used in semiconductor,
1107	defense, or space technology production.-
1108	1.a.  Industrial machinery and equipment used in
1109	semiconductor technology facilities certified under subparagraph
1110	5. to manufacture, process, compound, or produce semiconductor
1111	technology products for sale or for use by these facilities are
1112	exempt from the tax imposed by this chapter. For purposes of
1113	this paragraph, industrial machinery and equipment includes
1114	molds, dies, machine tooling, other appurtenances or accessories
1115	to machinery and equipment, testing equipment, test beds,
1116	computers, and software, whether purchased or self-fabricated,
1117	and, if self-fabricated, includes materials and labor for
1118	design, fabrication, and assembly.
1119	b.  Industrial machinery and equipment used in defense or
1120	space technology facilities certified under subparagraph 5. to
1121	design, manufacture, assemble, process, compound, or produce
1122	defense technology products or space technology products for
1123	sale or for use by these facilities are exempt from the tax
1124	imposed by this chapter.
1125	2.  Building materials purchased for use in manufacturing
1126	or expanding clean rooms in semiconductor-manufacturing
1127	facilities are exempt from the tax imposed by this chapter.
1128	3.  In addition to meeting the criteria mandated by
1129	subparagraph 1. or subparagraph 2., a business must be certified
1130	by the Department of Economic Opportunity in order to qualify
1131	for exemption under this paragraph.
1132	4.  For items purchased tax-exempt pursuant to this
1133	paragraph, possession of a written certification from the
1134	purchaser, certifying the purchaser's entitlement to the
1135	exemption, relieves the seller of the responsibility of
1136	collecting the tax on the sale of such items, and the department
1137	shall look solely to the purchaser for recovery of the tax if it
1138	determines that the purchaser was not entitled to the exemption.
1139	5.a.  To be eligible to receive the exemption provided by
1140	subparagraph 1. or subparagraph 2., a qualifying business entity
1141	shall initially apply to Enterprise Florida, Inc. The original
1142	certification is valid for a period of 2 years. In lieu of
1143	submitting a new application, the original certification may be
1144	renewed biennially by submitting to the Department of Economic
1145	Opportunity a statement, certified under oath, that there has
1146	not been a material change in the conditions or circumstances
1147	entitling the business entity to the original certification. The
1148	initial application and the certification renewal statement
1149	shall be developed by the Department of Economic Opportunity.
1150	b.  The Division of Strategic Business Development of the
1151	Department of Economic Opportunity shall review each submitted
1152	initial application and determine whether or not the application
1153	is complete within 5 working days. Once complete, the division
1154	shall, within 10 working days, evaluate the application and
1155	recommend approval or disapproval to the Department of Economic
1156	Opportunity.
1157	c.  Upon receipt of the initial application and
1158	recommendation from the division or upon receipt of a
1159	certification renewal statement, the Department of Economic
1160	Opportunity shall certify within 5 working days those applicants
1161	who are found to meet the requirements of this section and
1162	notify the applicant of the original certification or
1163	certification renewal. If the Department of Economic Opportunity
1164	finds that the applicant does not meet the requirements, it
1165	shall notify the applicant and Enterprise Florida, Inc., within
1166	10 working days that the application for certification has been
1167	denied and the reasons for denial. The Department of Economic
1168	Opportunity has final approval authority for certification under
1169	this section.
1170	d.  The initial application and certification renewal
1171	statement must indicate, for program evaluation purposes only,
1172	the average number of full-time equivalent employees at the
1173	facility over the preceding calendar year, the average wage and
1174	benefits paid to those employees over the preceding calendar
1175	year, the total investment made in real and tangible personal
1176	property over the preceding calendar year, and the total value
1177	of tax-exempt purchases and taxes exempted during the previous
1178	year. The department shall assist the Department of Economic
1179	Opportunity in evaluating and verifying information provided in
1180	the application for exemption.
1181	e.  The Department of Economic Opportunity may use the
1182	information reported on the initial application and
1183	certification renewal statement for evaluation purposes only.
1184	6.  A business certified to receive this exemption may
1185	elect to designate one or more state universities or community
1186	colleges as recipients of up to 100 percent of the amount of the
1187	exemption. To receive these funds, the institution must agree to
1188	match the funds with equivalent cash, programs, services, or
1189	other in-kind support on a one-to-one basis for research and
1190	development projects requested by the certified business. The
1191	rights to any patents, royalties, or real or intellectual
1192	property must be vested in the business unless otherwise agreed
1193	to by the business and the university or community college.
1194	7.  As used in this paragraph, the term:
1195	a.  "Semiconductor technology products" means raw
1196	semiconductor wafers or semiconductor thin films that are
1197	transformed into semiconductor memory or logic wafers, including
1198	wafers containing mixed memory and logic circuits; related
1199	assembly and test operations; active-matrix flat panel displays;
1200	semiconductor chips; semiconductor lasers; optoelectronic
1201	elements; and related semiconductor technology products as
1202	determined by the Department of Economic Opportunity.
1203	b.  "Clean rooms" means manufacturing facilities enclosed
1204	in a manner that meets the clean manufacturing requirements
1205	necessary for high-technology semiconductor-manufacturing
1206	environments.
1207	c.  "Defense technology products" means products that have
1208	a military application, including, but not limited to, weapons,
1209	weapons systems, guidance systems, surveillance systems,
1210	communications or information systems, munitions, aircraft,
1211	vessels, or boats, or components thereof, which are intended for
1212	military use and manufactured in performance of a contract with
1213	the United States Department of Defense or the military branch
1214	of a recognized foreign government or a subcontract thereunder
1215	which relates to matters of national defense.
1216	d.  "Space technology products" means products that are
1217	specifically designed or manufactured for application in space
1218	activities, including, but not limited to, space launch
1219	vehicles, space flight vehicles, missiles, satellites or
1220	research payloads, avionics, and associated control systems and
1221	processing systems and components of any of the foregoing. The
1222	term does not include products that are designed or manufactured
1223	for general commercial aviation or other uses even though those
1224	products may also serve an incidental use in space applications.
1225	(k)  Samples.-Paint color card samples, flooring and wall
1226	samples, fabric swatch samples, window covering samples, and
1227	similar samples, when such samples serve no useful purpose other
1228	than as a comparison of color, texture, or design; are provided
1229	by the manufacturer to a dealer or ultimate consumer for no
1230	charge; and are given away by the dealer to the ultimate
1231	consumer for no charge, are exempt.
1232	(l)  Growth enhancers or performance enhancers for cattle.-
1233	There is exempt from the tax imposed by this chapter the sale of
1234	performance-enhancing or growth-enhancing products for cattle.
1235	(m)  Educational materials purchased by certain child care
1236	facilities.-Educational materials, such as glue, paper, paints,
1237	crayons, unique craft items, scissors, books, and educational
1238	toys, purchased by a child care facility that meets the
1239	standards delineated in s. 402.305, is licensed under s.
1240	402.308, holds a current Gold Seal Quality Care designation
1241	pursuant to s. 402.281, and provides basic health insurance to
1242	all employees are exempt from the taxes imposed by this chapter.
1243	For purposes of this paragraph, the term "basic health
1244	insurance" shall be defined and promulgated in rules developed
1245	jointly by the Department of Children and Family Services, the
1246	Agency for Health Care Administration, and the Financial
1247	Services Commission.
1248	(n)  Materials for construction of single-family homes in
1249	certain areas.-
1250	1.  As used in this paragraph, the term:
1251	a.  "Building materials" means tangible personal property
1252	that becomes a component part of a qualified home.
1253	b.  "Qualified home" means a single-family home having an
1254	appraised value of no more than $160,000 which is located in an
1255	enterprise zone, empowerment zone, or Front Porch Florida
1256	Community and which is constructed and occupied by the owner
1257	thereof for residential purposes.
1258	c.  "Substantially completed" has the same meaning as
1259	provided in s. 192.042(1).
1260	2.  Building materials used in the construction of a
1261	qualified home and the costs of labor associated with the
1262	construction of a qualified home are exempt from the tax imposed
1263	by this chapter upon an affirmative showing to the satisfaction
1264	of the department that the requirements of this paragraph have
1265	been met. This exemption inures to the owner through a refund of
1266	previously paid taxes. To receive this refund, the owner must
1267	file an application under oath with the department which
1268	includes:
1269	a.  The name and address of the owner.
1270	b.  The address and assessment roll parcel number of the
1271	home for which a refund is sought.
1272	c.  A copy of the building permit issued for the home.
1273	d.  A certification by the local building code inspector
1274	that the home is substantially completed.
1275	e.  A sworn statement, under penalty of perjury, from the
1276	general contractor licensed in this state with whom the owner
1277	contracted to construct the home, which statement lists the
1278	building materials used in the construction of the home and the
1279	actual cost thereof, the labor costs associated with such
1280	construction, and the amount of sales tax paid on these
1281	materials and labor costs. If a general contractor was not used,
1282	the owner shall provide this information in a sworn statement,
1283	under penalty of perjury. Copies of invoices evidencing payment
1284	of sales tax must be attached to the sworn statement.
1285	f.  A sworn statement, under penalty of perjury, from the
1286	owner affirming that he or she is occupying the home for
1287	residential purposes.
1288	3.  An application for a refund under this paragraph must
1289	be submitted to the department within 6 months after the date
1290	the home is deemed to be substantially completed by the local
1291	building code inspector. Within 30 working days after receipt of
1292	the application, the department shall determine if it meets the
1293	requirements of this paragraph. A refund approved pursuant to
1294	this paragraph shall be made within 30 days after formal
1295	approval of the application by the department.
1296	4.  The department shall establish by rule an application
1297	form and criteria for establishing eligibility for exemption
1298	under this paragraph.
1299	5.  The exemption shall apply to purchases of materials on
1300	or after July 1, 2000.
1301	(o)  Building materials in redevelopment projects.-
1302	1.  As used in this paragraph, the term:
1303	a.  "Building materials" means tangible personal property
1304	that becomes a component part of a housing project or a mixed-
1305	use project.
1306	b.  "Housing project" means the conversion of an existing
1307	manufacturing or industrial building to housing units in an
1308	urban high-crime area, enterprise zone, empowerment zone, Front
1309	Porch Community, designated brownfield area, or urban infill
1310	area and in which the developer agrees to set aside at least 20
1311	percent of the housing units in the project for low-income and
1312	moderate-income persons or the construction in a designated
1313	brownfield area of affordable housing for persons described in
1314	s. 420.0004(9), (11), (12), or (17) or in s. 159.603(7).
1315	c.  "Mixed-use project" means the conversion of an existing
1316	manufacturing or industrial building to mixed-use units that
1317	include artists' studios, art and entertainment services, or
1318	other compatible uses. A mixed-use project must be located in an
1319	urban high-crime area, enterprise zone, empowerment zone, Front
1320	Porch Community, designated brownfield area, or urban infill
1321	area, and the developer must agree to set aside at least 20
1322	percent of the square footage of the project for low-income and
1323	moderate-income housing.
1324	d.  "Substantially completed" has the same meaning as
1325	provided in s. 192.042(1).
1326	2.  Building materials used in the construction of a
1327	housing project or mixed-use project are exempt from the tax
1328	imposed by this chapter upon an affirmative showing to the
1329	satisfaction of the department that the requirements of this
1330	paragraph have been met. This exemption inures to the owner
1331	through a refund of previously paid taxes. To receive this
1332	refund, the owner must file an application under oath with the
1333	department which includes:
1334	a.  The name and address of the owner.
1335	b.  The address and assessment roll parcel number of the
1336	project for which a refund is sought.
1337	c.  A copy of the building permit issued for the project.
1338	d.  A certification by the local building code inspector
1339	that the project is substantially completed.
1340	e.  A sworn statement, under penalty of perjury, from the
1341	general contractor licensed in this state with whom the owner
1342	contracted to construct the project, which statement lists the
1343	building materials used in the construction of the project and
1344	the actual cost thereof, and the amount of sales tax paid on
1345	these materials. If a general contractor was not used, the owner
1346	shall provide this information in a sworn statement, under
1347	penalty of perjury. Copies of invoices evidencing payment of
1348	sales tax must be attached to the sworn statement.
1349	3.  An application for a refund under this paragraph must
1350	be submitted to the department within 6 months after the date
1351	the project is deemed to be substantially completed by the local
1352	building code inspector. Within 30 working days after receipt of
1353	the application, the department shall determine if it meets the
1354	requirements of this paragraph. A refund approved pursuant to
1355	this paragraph shall be made within 30 days after formal
1356	approval of the application by the department.
1357	4.  The department shall establish by rule an application
1358	form and criteria for establishing eligibility for exemption
1359	under this paragraph.
1360	5.  The exemption shall apply to purchases of materials on
1361	or after July 1, 2000.
1362	(p)  Community contribution tax credit for donations.-
1363	1.  Authorization.-Persons who are registered with the
1364	department under s. 212.18 to collect or remit sales or use tax
1365	and who make donations to eligible sponsors are eligible for tax
1366	credits against their state sales and use tax liabilities as
1367	provided in this paragraph:
1368	a.  The credit shall be computed as 50 percent of the
1369	person's approved annual community contribution.
1370	b.  The credit shall be granted as a refund against state
1371	sales and use taxes reported on returns and remitted in the 12
1372	months preceding the date of application to the department for
1373	the credit as required in sub-subparagraph 3.c. If the annual
1374	credit is not fully used through such refund because of
1375	insufficient tax payments during the applicable 12-month period,
1376	the unused amount may be included in an application for a refund
1377	made pursuant to sub-subparagraph 3.c. in subsequent years
1378	against the total tax payments made for such year. Carryover
1379	credits may be applied for a 3-year period without regard to any
1380	time limitation that would otherwise apply under s. 215.26.
1381	c.  A person may not receive more than $200,000 in annual
1382	tax credits for all approved community contributions made in any
1383	one year.
1384	d.  All proposals for the granting of the tax credit
1385	require the prior approval of the Department of Economic
1386	Opportunity.
1387	e.  The total amount of tax credits which may be granted
1388	for all programs approved under this paragraph, s. 220.183, and
1389	s. 624.5105 is $10.5 million annually for projects that provide
1390	homeownership opportunities for low-income or very-low-income
1391	households as defined in s. 420.9071(19) and (28) and $3.5
1392	million annually for all other projects.
1393	f.  A person who is eligible to receive the credit provided
1394	for in this paragraph, s. 220.183, or s. 624.5105 may receive
1395	the credit only under the one section of the person's choice.
1396	2.  Eligibility requirements.-
1397	a.  A community contribution by a person must be in the
1398	following form:
1399	(I)  Cash or other liquid assets;
1400	(II)  Real property;
1401	(III)  Goods or inventory; or
1402	(IV)  Other physical resources as identified by the
1403	Department of Economic Opportunity.
1404	b.  All community contributions must be reserved
1405	exclusively for use in a project. As used in this sub-
1406	subparagraph, the term "project" means any activity undertaken
1407	by an eligible sponsor which is designed to construct, improve,
1408	or substantially rehabilitate housing that is affordable to low-
1409	income or very-low-income households as defined in s.
1410	420.9071(19) and (28); designed to provide commercial,
1411	industrial, or public resources and facilities; or designed to
1412	improve entrepreneurial and job-development opportunities for
1413	low-income persons. A project may be the investment necessary to
1414	increase access to high-speed broadband capability in rural
1415	communities with enterprise zones, including projects that
1416	result in improvements to communications assets that are owned
1417	by a business. A project may include the provision of museum
1418	educational programs and materials that are directly related to
1419	any project approved between January 1, 1996, and December 31,
1420	1999, and located in an enterprise zone designated pursuant to
1421	s. 290.0065. This paragraph does not preclude projects that
1422	propose to construct or rehabilitate housing for low-income or
1423	very-low-income households on scattered sites. With respect to
1424	housing, contributions may be used to pay the following eligible
1425	low-income and very-low-income housing-related activities:
1426	(I)  Project development impact and management fees for
1427	low-income or very-low-income housing projects;
1428	(II)  Down payment and closing costs for eligible persons,
1429	as defined in s. 420.9071(19) and (28);
1430	(III)  Administrative costs, including housing counseling
1431	and marketing fees, not to exceed 10 percent of the community
1432	contribution, directly related to low-income or very-low-income
1433	projects; and
1434	(IV)  Removal of liens recorded against residential
1435	property by municipal, county, or special district local
1436	governments when satisfaction of the lien is a necessary
1437	precedent to the transfer of the property to an eligible person,
1438	as defined in s. 420.9071(19) and (28), for the purpose of
1439	promoting home ownership. Contributions for lien removal must be
1440	received from a nonrelated third party.
1441	c.  The project must be undertaken by an "eligible
1442	sponsor," which includes:
1443	(I)  A community action program;
1444	(II)  A nonprofit community-based development organization
1445	whose mission is the provision of housing for low-income or
1446	very-low-income households or increasing entrepreneurial and
1447	job-development opportunities for low-income persons;
1448	(III)  A neighborhood housing services corporation;
1449	(IV)  A local housing authority created under chapter 421;
1450	(V)  A community redevelopment agency created under s.
1451	163.356;
1452	(VI)  A historic preservation district agency or
1453	organization;
1454	(VII)  A regional workforce board;
1455	(VIII)  A direct-support organization as provided in s.
1456	1009.983;
1457	(IX)  An enterprise zone development agency created under
1458	s. 290.0056;
1459	(X)  A community-based organization incorporated under
1460	chapter 617 which is recognized as educational, charitable, or
1461	scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
1462	and whose bylaws and articles of incorporation include
1463	affordable housing, economic development, or community
1464	development as the primary mission of the corporation;
1465	(XI)  Units of local government;
1466	(XII)  Units of state government; or
1467	(XIII)  Any other agency that the Department of Economic
1468	Opportunity designates by rule.
1469
1470	In no event may a contributing person have a financial interest
1471	in the eligible sponsor.
1472	d.  The project must be located in an area designated an
1473	enterprise zone or a Front Porch Florida Community, unless the
1474	project increases access to high-speed broadband capability for
1475	rural communities with enterprise zones but is physically
1476	located outside the designated rural zone boundaries. Any
1477	project designed to construct or rehabilitate housing for low-
1478	income or very-low-income households as defined in s.
1479	420.9071(19) and (28) is exempt from the area requirement of
1480	this sub-subparagraph.
1481	e.(I)  If, during the first 10 business days of the state
1482	fiscal year, eligible tax credit applications for projects that
1483	provide homeownership opportunities for low-income or very-low-
1484	income households as defined in s. 420.9071(19) and (28) are
1485	received for less than the annual tax credits available for
1486	those projects, the Department of Economic Opportunity shall
1487	grant tax credits for those applications and shall grant
1488	remaining tax credits on a first-come, first-served basis for
1489	any subsequent eligible applications received before the end of
1490	the state fiscal year. If, during the first 10 business days of
1491	the state fiscal year, eligible tax credit applications for
1492	projects that provide homeownership opportunities for low-income
1493	or very-low-income households as defined in s. 420.9071(19) and
1494	(28) are received for more than the annual tax credits available
1495	for those projects, the Department of Economic Opportunity shall
1496	grant the tax credits for those applications as follows:
1497	(A)  If tax credit applications submitted for approved
1498	projects of an eligible sponsor do not exceed $200,000 in total,
1499	the credits shall be granted in full if the tax credit
1500	applications are approved.
1501	(B)  If tax credit applications submitted for approved
1502	projects of an eligible sponsor exceed $200,000 in total, the
1503	amount of tax credits granted pursuant to sub-sub-sub-
1504	subparagraph (A) shall be subtracted from the amount of
1505	available tax credits, and the remaining credits shall be
1506	granted to each approved tax credit application on a pro rata
1507	basis.
1508	(II)  If, during the first 10 business days of the state
1509	fiscal year, eligible tax credit applications for projects other
1510	than those that provide homeownership opportunities for low-
1511	income or very-low-income households as defined in s.
1512	420.9071(19) and (28) are received for less than the annual tax
1513	credits available for those projects, the Department of Economic
1514	Opportunity shall grant tax credits for those applications and
1515	shall grant remaining tax credits on a first-come, first-served
1516	basis for any subsequent eligible applications received before
1517	the end of the state fiscal year. If, during the first 10
1518	business days of the state fiscal year, eligible tax credit
1519	applications for projects other than those that provide
1520	homeownership opportunities for low-income or very-low-income
1521	households as defined in s. 420.9071(19) and (28) are received
1522	for more than the annual tax credits available for those
1523	projects, the Department of Economic Opportunity shall grant the
1524	tax credits for those applications on a pro rata basis.
1525	3.  Application requirements.-
1526	a.  Any eligible sponsor seeking to participate in this
1527	program must submit a proposal to the Department of Economic
1528	Opportunity which sets forth the name of the sponsor, a
1529	description of the project, and the area in which the project is
1530	located, together with such supporting information as is
1531	prescribed by rule. The proposal must also contain a resolution
1532	from the local governmental unit in which the project is located
1533	certifying that the project is consistent with local plans and
1534	regulations.
1535	b.  Any person seeking to participate in this program must
1536	submit an application for tax credit to the Department of
1537	Economic Opportunity which sets forth the name of the sponsor, a
1538	description of the project, and the type, value, and purpose of
1539	the contribution. The sponsor shall verify the terms of the
1540	application and indicate its receipt of the contribution, which
1541	verification must be in writing and accompany the application
1542	for tax credit. The person must submit a separate tax credit
1543	application to the Department of Economic Opportunity for each
1544	individual contribution that it makes to each individual
1545	project.
1546	c.  Any person who has received notification from the
1547	Department of Economic Opportunity that a tax credit has been
1548	approved must apply to the department to receive the refund.
1549	Application must be made on the form prescribed for claiming
1550	refunds of sales and use taxes and be accompanied by a copy of
1551	the notification. A person may submit only one application for
1552	refund to the department within any 12-month period.
1553	4.  Administration.-
1554	a.  The Department of Economic Opportunity may adopt rules
1555	pursuant to ss. 120.536(1) and 120.54 necessary to administer
1556	this paragraph, including rules for the approval or disapproval
1557	of proposals by a person.
1558	b.  The decision of the Department of Economic Opportunity
1559	must be in writing, and, if approved, the notification shall
1560	state the maximum credit allowable to the person. Upon approval,
1561	the Department of Economic Opportunity shall transmit a copy of
1562	the decision to the Department of Revenue.
1563	c.  The Department of Economic Opportunity shall
1564	periodically monitor all projects in a manner consistent with
1565	available resources to ensure that resources are used in
1566	accordance with this paragraph; however, each project must be
1567	reviewed at least once every 2 years.
1568	d.  The Department of Economic Opportunity shall, in
1569	consultation with the statewide and regional housing and
1570	financial intermediaries, market the availability of the
1571	community contribution tax credit program to community-based
1572	organizations.
1573	5.  Expiration.-This paragraph expires June 30, 2015;
1574	however, any accrued credit carryover that is unused on that
1575	date may be used until the expiration of the 3-year carryover
1576	period for such credit.
1577	(q)  Entertainment industry tax credit; authorization;
1578	eligibility for credits.-The credits against the state sales tax
1579	authorized pursuant to s. 288.1254 shall be deducted from any
1580	sales and use tax remitted by the dealer to the department by
1581	electronic funds transfer and may only be deducted on a sales
1582	and use tax return initiated through electronic data
1583	interchange. The dealer shall separately state the credit on the
1584	electronic return. The net amount of tax due and payable must be
1585	remitted by electronic funds transfer. If the credit for the
1586	qualified expenditures is larger than the amount owed on the
1587	sales and use tax return that is eligible for the credit, the
1588	unused amount of the credit may be carried forward to a
1589	succeeding reporting period as provided in s. 288.1254(4)(e). A
1590	dealer may only obtain a credit using the method described in
1591	this subparagraph. A dealer is not authorized to obtain a credit
1592	by applying for a refund.
1593	(6)  EXEMPTIONS; POLITICAL SUBDIVISIONS.-
1594	(a)  There are also exempt from the tax imposed by this
1595	chapter sales made to the United States Government, a state, or
1596	any county, municipality, or political subdivision of a state
1597	when payment is made directly to the dealer by the governmental
1598	entity. This exemption shall not inure to any transaction
1599	otherwise taxable under this chapter when payment is made by a
1600	government employee by any means, including, but not limited to,
1601	cash, check, or credit card when that employee is subsequently
1602	reimbursed by the governmental entity. This exemption does not
1603	include sales, rental, use, consumption, or storage for use in
1604	any political subdivision or municipality in this state of
1605	machines and equipment and parts and accessories therefor used
1606	in the generation, transmission, or distribution of electrical
1607	energy by systems owned and operated by a political subdivision
1608	in this state for transmission or distribution expansion.
1609	Likewise exempt are charges for services rendered by radio and
1610	television stations, including line charges, talent fees, or
1611	license fees and charges for films, videotapes, and
1612	transcriptions used in producing radio or television broadcasts.
1613	The exemption provided in this subsection does not include
1614	sales, rental, use, consumption, or storage for use in any
1615	political subdivision or municipality in this state of machines
1616	and equipment and parts and accessories therefor used in
1617	providing two-way telecommunications services to the public for
1618	hire by the use of a telecommunications facility, as defined in
1619	s. 364.02(14), and for which a certificate is required under
1620	chapter 364, which facility is owned and operated by any county,
1621	municipality, or other political subdivision of the state. Any
1622	immunity of any political subdivision of the state or other
1623	entity of local government from taxation of the property used to
1624	provide telecommunication services that is taxed as a result of
1625	this section is hereby waived. However, the exemption provided
1626	in this subsection includes transactions taxable under this
1627	chapter which are for use by the operator of a public-use
1628	airport, as defined in s. 332.004, in providing such
1629	telecommunications services for the airport or its tenants,
1630	concessionaires, or licensees, or which are for use by a public
1631	hospital for the provision of such telecommunications services.
1632	(b)  The exemption provided under this subsection does not
1633	include sales of tangible personal property made to contractors
1634	employed directly to or as agents of any such government or
1635	political subdivision when such tangible personal property goes
1636	into or becomes a part of public works owned by such government
1637	or political subdivision. A determination of whether a
1638	particular transaction is properly characterized as an exempt
1639	sale to a government entity or a taxable sale to a contractor
1640	shall be based upon the substance of the transaction rather than
1641	the form in which the transaction is cast. However, for sales of
1642	tangible personal property that go into or become a part of
1643	public works owned by a governmental entity, other than the
1644	Federal Government, a governmental entity claiming the exemption
1645	provided under this subsection shall certify to the dealer and
1646	the contractor the entity's claim to the exemption by providing
1647	the dealer and the contractor a certificate of entitlement to
1648	the exemption for such sales. If the department later determines
1649	that such sales, in which the governmental entity provided the
1650	dealer and the contractor with a certificate of entitlement to
1651	the exemption, were not exempt sales to the governmental entity,
1652	the governmental entity shall be liable for any tax, penalty,
1653	and interest determined to be owed on such transactions.
1654	Possession by a dealer or contractor of a certificate of
1655	entitlement to the exemption from the governmental entity
1656	relieves the dealer from the responsibility of collecting tax on
1657	the sale and the contractor for any liability for tax, penalty,
1658	or interest related to the sale, and the department shall look
1659	solely to the governmental entity for recovery of tax, penalty,
1660	and interest if the department determines that the transaction
1661	was not an exempt sale to the governmental entity. The
1662	governmental entity may not transfer liability for such tax,
1663	penalty, and interest to another party by contract or agreement.
1664	(c)  The department shall adopt rules for determining
1665	whether a particular transaction is properly characterized as an
1666	exempt sale to a governmental entity or a taxable sale to a
1667	contractor which give special consideration to factors that
1668	govern the status of the tangible personal property before being
1669	affixed to real property. In developing such rules, assumption
1670	of the risk of damage or loss is of paramount consideration in
1671	the determination. The department shall also adopt, by rule, a
1672	certificate of entitlement to exemption for use as provided in
1673	paragraph (b). The certificate shall require the governmental
1674	entity to affirm that it will comply with the requirements of
1675	this subsection and the rules adopted under paragraph (b) in
1676	order to qualify for the exemption and that it acknowledges its
1677	liability for any tax, penalty, or interest later determined by
1678	the department to be owed on such transactions.
1679	(3)(7)  MISCELLANEOUS EXEMPTIONS.-Exemptions provided to
1680	any entity by this chapter do not inure to any transaction that
1681	is otherwise taxable under this chapter when payment is made by
1682	a representative or employee of the entity by any means,
1683	including, but not limited to, cash, check, or credit card, even
1684	when that representative or employee is subsequently reimbursed
1685	by the entity. In addition, exemptions provided to any entity by
1686	this subsection do not inure to any transaction that is
1687	otherwise taxable under this chapter unless the entity has
1688	obtained a sales tax exemption certificate from the department
1689	or the entity obtains or provides other documentation as
1690	required by the department. Eligible purchases or leases made
1691	with such a certificate must be in strict compliance with this
1692	subsection and departmental rules, and any person who makes an
1693	exempt purchase with a certificate that is not in strict
1694	compliance with this subsection and the rules is liable for and
1695	shall pay the tax. The department may adopt rules to administer
1696	this subsection.
1697	(a)  Artificial commemorative flowers.-Exempt from the tax
1698	imposed by this chapter is the sale of artificial commemorative
1699	flowers by bona fide nationally chartered veterans'
1700	organizations.
1701	(b)  Boiler fuels.-When purchased for use as a combustible
1702	fuel, purchases of natural gas, residual oil, recycled oil,
1703	waste oil, solid waste material, coal, sulfur, wood, wood
1704	residues or wood bark used in an industrial manufacturing,
1705	processing, compounding, or production process at a fixed
1706	location in this state are exempt from the taxes imposed by this
1707	chapter; however, such exemption shall not be allowed unless the
1708	purchaser signs a certificate stating that the fuel to be
1709	exempted is for the exclusive use designated herein. This
1710	exemption does not apply to the use of boiler fuels that are not
1711	used in manufacturing, processing, compounding, or producing
1712	items of tangible personal property for sale, or to the use of
1713	boiler fuels used by any firm subject to regulation by the
1714	Division of Hotels and Restaurants of the Department of Business
1715	and Professional Regulation.
1716	(c)  Crustacea bait.-Also exempt from the tax imposed by
1717	this chapter is the purchase by commercial fishers of bait
1718	intended solely for use in the entrapment of Callinectes sapidus
1719	and Menippe mercenaria.
1720	(d)  Feeds.-Feeds for poultry, ostriches, and livestock,
1721	including racehorses and dairy cows, are exempt.
1722	(e)  Film rentals.-Film rentals are exempt when an
1723	admission is charged for viewing such film, and license fees and
1724	direct charges for films, videotapes, and transcriptions used by
1725	television or radio stations or networks are exempt.
1726	(f)  Flags.-Also exempt are sales of the flag of the United
1727	States and the official state flag of Florida.
1728	(g)  Florida Retired Educators Association and its local
1729	chapters.-Also exempt from payment of the tax imposed by this
1730	chapter are purchases of office supplies, equipment, and
1731	publications made by the Florida Retired Educators Association
1732	and its local chapters.
1733	(a)(h)  Guide dogs for the blind.-Also exempt are the sale
1734	or rental of guide dogs for the blind, commonly referred to as
1735	"seeing-eye dogs," and the sale of food or other items for such
1736	guide dogs.
1737	1.  The department shall issue a consumer's certificate of
1738	exemption to any blind person who holds an identification card
1739	as provided for in s. 413.091 and who either owns or rents, or
1740	contemplates the ownership or rental of, a guide dog for the
1741	blind. The consumer's certificate of exemption shall be issued
1742	without charge and shall be of such size as to be capable of
1743	being carried in a wallet or billfold.
1744	2.  The department shall make such rules concerning items
1745	exempt from tax under the provisions of this paragraph as may be
1746	necessary to provide that any person authorized to have a
1747	consumer's certificate of exemption need only present such a
1748	certificate at the time of paying for exempt goods and shall not
1749	be required to pay any tax thereon.
1750	(b)(i)  Hospital meals and rooms.-Also exempt from payment
1751	of the tax imposed by this chapter on rentals and meals are
1752	patients and inmates of any hospital or other physical plant or
1753	facility designed and operated primarily for the care of persons
1754	who are ill, aged, infirm, mentally or physically incapacitated,
1755	or otherwise dependent on special care or attention. Residents
1756	of a home for the aged are exempt from payment of taxes on meals
1757	provided through the facility. A home for the aged is defined as
1758	a facility that is licensed or certified in part or in whole
1759	under chapter 400, chapter 429, or chapter 651, or that is
1760	financed by a mortgage loan made or insured by the United States
1761	Department of Housing and Urban Development under s. 202, s. 202
1762	with a s. 8 subsidy, s. 221(d)(3) or (4), s. 232, or s. 236 of
1763	the National Housing Act, or other such similar facility
1764	designed and operated primarily for the care of the aged.
1765	(c)(j)  Household fuels.-Also exempt from payment of the
1766	tax imposed by this chapter are sales of utilities to
1767	residential households or owners of residential models in this
1768	state by utility companies who pay the gross receipts tax
1769	imposed under s. 203.01, and sales of fuel to residential
1770	households or owners of residential models, including oil,
1771	kerosene, liquefied petroleum gas, coal, wood, and other fuel
1772	products used in the household or residential model for the
1773	purposes of heating, cooking, lighting, and refrigeration,
1774	regardless of whether such sales of utilities and fuels are
1775	separately metered and billed direct to the residents or are
1776	metered and billed to the landlord. If any part of the utility
1777	or fuel is used for a nonexempt purpose, the entire sale is
1778	taxable. The landlord shall provide a separate meter for
1779	nonexempt utility or fuel consumption. For the purposes of this
1780	paragraph, licensed family day care homes shall also be exempt.
1781	(d)(k)  Meals provided by certain nonprofit organizations.-
1782	There is exempt from the tax imposed by this chapter the sale of
1783	prepared meals by a nonprofit volunteer organization to
1784	handicapped, elderly, or indigent persons when such meals are
1785	delivered as a charitable function by the organization to such
1786	persons at their places of residence.
1787	(l)  Organizations providing special educational, cultural,
1788	recreational, and social benefits to minors.-Also exempt from
1789	the tax imposed by this chapter are sales or leases to and sales
1790	of donated property by nonprofit organizations which are
1791	incorporated pursuant to chapter 617 the primary purpose of
1792	which is providing activities that contribute to the development
1793	of good character or good sportsmanship, or to the educational
1794	or cultural development, of minors. This exemption is extended
1795	only to that level of the organization that has a salaried
1796	executive officer or an elected nonsalaried executive officer.
1797	For the purpose of this paragraph, the term "donated property"
1798	means any property transferred to such nonprofit organization
1799	for less than 50 percent of its fair market value.
1800	(m)  Religious institutions.-
1801	1.  There are exempt from the tax imposed by this chapter
1802	transactions involving sales or leases directly to religious
1803	institutions when used in carrying on their customary nonprofit
1804	religious activities or sales or leases of tangible personal
1805	property by religious institutions having an established
1806	physical place for worship at which nonprofit religious services
1807	and activities are regularly conducted and carried on.
1808	2.  As used in this paragraph, the term "religious
1809	institutions" means churches, synagogues, and established
1810	physical places for worship at which nonprofit religious
1811	services and activities are regularly conducted and carried on.
1812	The term "religious institutions" includes nonprofit
1813	corporations the sole purpose of which is to provide free
1814	transportation services to church members, their families, and
1815	other church attendees. The term "religious institutions" also
1816	includes nonprofit state, nonprofit district, or other nonprofit
1817	governing or administrative offices the function of which is to
1818	assist or regulate the customary activities of religious
1819	institutions. The term "religious institutions" also includes
1820	any nonprofit corporation that is qualified as nonprofit under
1821	s. 501(c)(3) of the Internal Revenue Code of 1986, as amended,
1822	and that owns and operates a Florida television station, at
1823	least 90 percent of the programming of which station consists of
1824	programs of a religious nature and the financial support for
1825	which, exclusive of receipts for broadcasting from other
1826	nonprofit organizations, is predominantly from contributions
1827	from the general public. The term "religious institutions" also
1828	includes any nonprofit corporation that is qualified as
1829	nonprofit under s. 501(c)(3) of the Internal Revenue Code of
1830	1986, as amended, the primary activity of which is making and
1831	distributing audio recordings of religious scriptures and
1832	teachings to blind or visually impaired persons at no charge.
1833	The term "religious institutions" also includes any nonprofit
1834	corporation that is qualified as nonprofit under s. 501(c)(3) of
1835	the Internal Revenue Code of 1986, as amended, the sole or
1836	primary function of which is to provide, upon invitation,
1837	nonprofit religious services, evangelistic services, religious
1838	education, administrative assistance, or missionary assistance
1839	for a church, synagogue, or established physical place of
1840	worship at which nonprofit religious services and activities are
1841	regularly conducted.
1842	(n)  Veterans' organizations.-
1843	1.  There are exempt from the tax imposed by this chapter
1844	transactions involving sales or leases to qualified veterans'
1845	organizations and their auxiliaries when used in carrying on
1846	their customary veterans' organization activities.
1847	2.  As used in this paragraph, the term "veterans'
1848	organizations" means nationally chartered or recognized
1849	veterans' organizations, including, but not limited to, Florida
1850	chapters of the Paralyzed Veterans of America, Catholic War
1851	Veterans of the U.S.A., Jewish War Veterans of the U.S.A., and
1852	the Disabled American Veterans, Department of Florida, Inc.,
1853	which hold current exemptions from federal income tax under s.
1854	501(c)(4) or (19) of the Internal Revenue Code of 1986, as
1855	amended.
1856	(o)  Schools, colleges, and universities.-Also exempt from
1857	the tax imposed by this chapter are sales or leases to state
1858	tax-supported schools, colleges, or universities.
1859	(p)  Section 501(c)(3) organizations.-Also exempt from the
1860	tax imposed by this chapter are sales or leases to organizations
1861	determined by the Internal Revenue Service to be currently
1862	exempt from federal income tax pursuant to s. 501(c)(3) of the
1863	Internal Revenue Code of 1986, as amended, when such leases or
1864	purchases are used in carrying on their customary nonprofit
1865	activities.
1866	(q)  Resource recovery equipment.-Also exempt is resource
1867	recovery equipment which is owned and operated by or on behalf
1868	of any county or municipality, certified by the Department of
1869	Environmental Protection under the provisions of s. 403.715.
1870	(e)(r)  School books and school lunches.-This exemption
1871	applies to school books used in regularly prescribed courses of
1872	study, and to school lunches served in public, parochial, or
1873	nonprofit schools operated for and attended by pupils of grades
1874	K through 12. Yearbooks, magazines, newspapers, directories,
1875	bulletins, and similar publications distributed by such
1876	educational institutions to their students are also exempt.
1877	School books and food sold or served at community colleges and
1878	other institutions of higher learning are taxable.
1879	(s)  Tasting beverages.-Vinous and alcoholic beverages
1880	provided by distributors or vendors for the purpose of "wine
1881	tasting" and "spirituous beverage tasting" as contemplated under
1882	the provisions of ss. 564.06 and 565.12, respectively, are
1883	exempt from the tax imposed by this chapter.
1884	(t)  Boats temporarily docked in state.-
1885	1.  Notwithstanding the provisions of chapter 328,
1886	pertaining to the registration of vessels, a boat upon which the
1887	state sales or use tax has not been paid is exempt from the use
1888	tax under this chapter if it enters and remains in this state
1889	for a period not to exceed a total of 20 days in any calendar
1890	year calculated from the date of first dockage or slippage at a
1891	facility, registered with the department, that rents dockage or
1892	slippage space in this state. If a boat brought into this state
1893	for use under this paragraph is placed in a facility, registered
1894	with the department, for repairs, alterations, refitting, or
1895	modifications and such repairs, alterations, refitting, or
1896	modifications are supported by written documentation, the 20-day
1897	period shall be tolled during the time the boat is physically in
1898	the care, custody, and control of the repair facility, including
1899	the time spent on sea trials conducted by the facility. The 20-
1900	day time period may be tolled only once within a calendar year
1901	when a boat is placed for the first time that year in the
1902	physical care, custody, and control of a registered repair
1903	facility; however, the owner may request and the department may
1904	grant an additional tolling of the 20-day period for purposes of
1905	repairs that arise from a written guarantee given by the
1906	registered repair facility, which guarantee covers only those
1907	repairs or modifications made during the first tolled period.
1908	Within 72 hours after the date upon which the registered repair
1909	facility took possession of the boat, the facility must have in
1910	its possession, on forms prescribed by the department, an
1911	affidavit which states that the boat is under its care, custody,
1912	and control and that the owner does not use the boat while in
1913	the facility. Upon completion of the repairs, alterations,
1914	refitting, or modifications, the registered repair facility
1915	must, within 72 hours after the date of release, have in its
1916	possession a copy of the release form which shows the date of
1917	release and any other information the department requires. The
1918	repair facility shall maintain a log that documents all
1919	alterations, additions, repairs, and sea trials during the time
1920	the boat is under the care, custody, and control of the
1921	facility. The affidavit shall be maintained by the registered
1922	repair facility as part of its records for as long as required
1923	by s. 213.35. When, within 6 months after the date of its
1924	purchase, a boat is brought into this state under this
1925	paragraph, the 6-month period provided in s. 212.05(1)(a)2. or
1926	s. 212.06(8) shall be tolled.
1927	2.  During the period of repairs, alterations, refitting,
1928	or modifications and during the 20-day period referred to in
1929	subparagraph 1., the boat may be listed for sale, contracted for
1930	sale, or sold exclusively by a broker or dealer registered with
1931	the department without incurring a use tax under this chapter;
1932	however, the sales tax levied under this chapter applies to such
1933	sale.
1934	3.  The mere storage of a boat at a registered repair
1935	facility does not qualify as a tax-exempt use in this state.
1936	4.  As used in this paragraph, "registered repair facility"
1937	means:
1938	a.  A full-service facility that:
1939	(I)  Is located on a navigable body of water;
1940	(II)  Has haulout capability such as a dry dock, travel
1941	lift, railway, or similar equipment to service craft under the
1942	care, custody, and control of the facility;
1943	(III)  Has adequate piers and storage facilities to provide
1944	safe berthing of vessels in its care, custody, and control; and
1945	(IV)  Has necessary shops and equipment to provide repair
1946	or warranty work on vessels under the care, custody, and control
1947	of the facility;
1948	b.  A marina that:
1949	(I)  Is located on a navigable body of water;
1950	(II)  Has adequate piers and storage facilities to provide
1951	safe berthing of vessels in its care, custody, and control; and
1952	(III)  Has necessary shops and equipment to provide repairs
1953	or warranty work on vessels; or
1954	c.  A shoreside facility that:
1955	(I)  Is located on a navigable body of water;
1956	(II)  Has adequate piers and storage facilities to provide
1957	safe berthing of vessels in its care, custody, and control; and
1958	(III)  Has necessary shops and equipment to provide repairs
1959	or warranty work.
1960	(u)  Volunteer fire departments.-Also exempt are
1961	firefighting and rescue service equipment and supplies purchased
1962	by volunteer fire departments, duly chartered under the Florida
1963	Statutes as corporations not for profit.
1964	(v)  Professional services.-
1965	1.  Also exempted are professional, insurance, or personal
1966	service transactions that involve sales as inconsequential
1967	elements for which no separate charges are made.
1968	2.  The personal service transactions exempted pursuant to
1969	subparagraph 1. do not exempt the sale of information services
1970	involving the furnishing of printed, mimeographed, or
1971	multigraphed matter, or matter duplicating written or printed
1972	matter in any other manner, other than professional services and
1973	services of employees, agents, or other persons acting in a
1974	representative or fiduciary capacity or information services
1975	furnished to newspapers and radio and television stations. As
1976	used in this subparagraph, the term "information services"
1977	includes the services of collecting, compiling, or analyzing
1978	information of any kind or nature and furnishing reports thereof
1979	to other persons.
1980	3.  This exemption does not apply to any service warranty
1981	transaction taxable under s. 212.0506.
1982	4.  This exemption does not apply to any service
1983	transaction taxable under s. 212.05(1)(i).
1984	(w)  Certain newspaper, magazine, and newsletter
1985	subscriptions, shoppers, and community newspapers.-Likewise
1986	exempt are newspaper, magazine, and newsletter subscriptions in
1987	which the product is delivered to the customer by mail. Also
1988	exempt are free, circulated publications that are published on a
1989	regular basis, the content of which is primarily advertising,
1990	and that are distributed through the mail, home delivery, or
1991	newsstands. The exemption for newspaper, magazine, and
1992	newsletter subscriptions which is provided in this paragraph
1993	applies only to subscriptions entered into after March 1, 1997.
1994	(x)  Sporting equipment brought into the state.-Sporting
1995	equipment brought into Florida, for a period of not more than 4
1996	months in any calendar year, used by an athletic team or an
1997	individual athlete in a sporting event is exempt from the use
1998	tax if such equipment is removed from the state within 7 days
1999	after the completion of the event.
2000	(y)  Charter fishing vessels.-The charge for chartering any
2001	boat or vessel, with the crew furnished, solely for the purpose
2002	of fishing is exempt from the tax imposed under s. 212.04 or s.
2003	212.05. This exemption does not apply to any charge to enter or
2004	stay upon any "head-boat," party boat, or other boat or vessel.
2005	Nothing in this paragraph shall be construed to exempt any boat
2006	from sales or use tax upon the purchase thereof except as
2007	provided in paragraph (t) and s. 212.05.
2008	(z)  Vending machines sponsored by nonprofit or charitable
2009	organizations.-Also exempt are food or drinks for human
2010	consumption sold for 25 cents or less through a coin-operated
2011	vending machine sponsored by a nonprofit corporation qualified
2012	as nonprofit pursuant to s. 501(c)(3) or (4) of the Internal
2013	Revenue Code of 1986, as amended.
2014	(aa)  Certain commercial vehicles.-Also exempt is the sale,
2015	lease, or rental of a commercial motor vehicle as defined in s.
2016	207.002(2), when the following conditions are met:
2017	1.  The sale, lease, or rental occurs between two commonly
2018	owned and controlled corporations;
2019	2.  Such vehicle was titled and registered in this state at
2020	the time of the sale, lease, or rental; and
2021	3.  Florida sales tax was paid on the acquisition of such
2022	vehicle by the seller, lessor, or renter.
2023	(bb)  Community cemeteries.-Also exempt are purchases by
2024	any nonprofit corporation that has qualified under s. 501(c)(13)
2025	of the Internal Revenue Code of 1986, as amended, and is
2026	operated for the purpose of maintaining a cemetery that was
2027	donated to the community by deed.
2028	(cc)  Works of art.-
2029	1.  Also exempt are works of art sold to or used by an
2030	educational institution.
2031	2.  This exemption also applies to the sale to or use in
2032	this state of any work of art by any person if it was purchased
2033	or imported exclusively for the purpose of being donated to any
2034	educational institution, or loaned to and made available for
2035	display by any educational institution, provided that the term
2036	of the loan agreement is for at least 10 years.
2037	3.  The exemption provided by this paragraph for donations
2038	is allowed only if the person who purchased the work of art
2039	transfers title to the donated work of art to an educational
2040	institution. Such transfer of title shall be evidenced by an
2041	affidavit meeting requirements established by rule to document
2042	entitlement to the exemption. Nothing in this paragraph shall
2043	preclude a work of art donated to an educational institution
2044	from remaining in the possession of the donor or purchaser, as
2045	long as title to the work of art lies with the educational
2046	institution.
2047	4.  A work of art is presumed to have been purchased in or
2048	imported into this state exclusively for loan as provided in
2049	subparagraph 2., if it is so loaned or placed in storage in
2050	preparation for such a loan within 90 days after purchase or
2051	importation, whichever is later; but a work of art is not deemed
2052	to be placed in storage in preparation for loan for purposes of
2053	this exemption if it is displayed at any place other than an
2054	educational institution.
2055	5.  The exemptions provided by this paragraph are allowed
2056	only if the person who purchased the work of art gives to the
2057	vendor an affidavit meeting the requirements, established by
2058	rule, to document entitlement to the exemption. The person who
2059	purchased the work of art shall forward a copy of such affidavit
2060	to the Department of Revenue at the time it is issued to the
2061	vendor.
2062	6.  The exemption for loans provided by subparagraph 2.
2063	applies only for the period during which a work of art is in the
2064	possession of the educational institution or is in storage
2065	before transfer of possession to that institution; and when it
2066	ceases to be so possessed or held, tax based upon the sales
2067	price paid by the owner is payable, and the statute of
2068	limitations provided in s. 95.091 shall begin to run at that
2069	time. However, tax shall not become due if the work of art is
2070	donated to an educational institution after the loan ceases.
2071	7.  Any educational institution to which a work of art has
2072	been donated pursuant to this paragraph shall make available to
2073	the department the title to the work of art and any other
2074	relevant information. Any educational institution which has
2075	received a work of art on loan pursuant to this paragraph shall
2076	make available to the department information relating to the
2077	work of art. Any educational institution that transfers from its
2078	possession a work of art as defined by this paragraph which has
2079	been loaned to it must notify the Department of Revenue within
2080	60 days after the transfer.
2081	8.  For purposes of the exemptions provided by this
2082	paragraph, the term:
2083	a.  "Educational institutions" includes state tax-
2084	supported, parochial, church, and nonprofit private schools,
2085	colleges, or universities that conduct regular classes and
2086	courses of study required for accreditation by or membership in
2087	the Southern Association of Colleges and Schools, the Florida
2088	Council of Independent Schools, or the Florida Association of
2089	Christian Colleges and Schools, Inc.; nonprofit private schools
2090	that conduct regular classes and courses of study accepted for
2091	continuing education credit by a board of the Division of
2092	Medical Quality Assurance of the Department of Health; or
2093	nonprofit libraries, art galleries, performing arts centers that
2094	provide educational programs to school children, which programs
2095	involve performances or other educational activities at the
2096	performing arts center and serve a minimum of 50,000 school
2097	children a year, and museums open to the public.
2098	b.  "Work of art" includes pictorial representations,
2099	sculpture, jewelry, antiques, stamp collections and coin
2100	collections, and other tangible personal property, the value of
2101	which is attributable predominantly to its artistic, historical,
2102	political, cultural, or social importance.
2103	(dd)  Taxicab leases.-The lease of or license to use a
2104	taxicab or taxicab-related equipment and services provided by a
2105	taxicab company to an independent taxicab operator are exempt,
2106	provided, however, the exemptions provided under this paragraph
2107	only apply if sales or use tax has been paid on the acquisition
2108	of the taxicab and its related equipment.
2109	(ee)  Aircraft repair and maintenance labor charges.-There
2110	shall be exempt from the tax imposed by this chapter all labor
2111	charges for the repair and maintenance of qualified aircraft,
2112	aircraft of more than 15,000 pounds maximum certified takeoff
2113	weight, and rotary wing aircraft of more than 10,000 pounds
2114	maximum certified takeoff weight. Except as otherwise provided
2115	in this chapter, charges for parts and equipment furnished in
2116	connection with such labor charges are taxable.
2117	(ff)  Certain electricity or steam uses.-
2118	1.  Subject to the provisions of subparagraph 4., charges
2119	for electricity or steam used to operate machinery and equipment
2120	at a fixed location in this state when such machinery and
2121	equipment is used to manufacture, process, compound, produce, or
2122	prepare for shipment items of tangible personal property for
2123	sale, or to operate pollution control equipment, recycling
2124	equipment, maintenance equipment, or monitoring or control
2125	equipment used in such operations are exempt to the extent
2126	provided in this paragraph. If 75 percent or more of the
2127	electricity or steam used at the fixed location is used to
2128	operate qualifying machinery or equipment, 100 percent of the
2129	charges for electricity or steam used at the fixed location are
2130	exempt. If less than 75 percent but 50 percent or more of the
2131	electricity or steam used at the fixed location is used to
2132	operate qualifying machinery or equipment, 50 percent of the
2133	charges for electricity or steam used at the fixed location are
2134	exempt. If less than 50 percent of the electricity or steam used
2135	at the fixed location is used to operate qualifying machinery or
2136	equipment, none of the charges for electricity or steam used at
2137	the fixed location are exempt.
2138	2.  This exemption applies only to industries classified
2139	under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2140	23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2141	and 39 and Industry Group Number 212. As used in this paragraph,
2142	"SIC" means those classifications contained in the Standard
2143	Industrial Classification Manual, 1987, as published by the
2144	Office of Management and Budget, Executive Office of the
2145	President.
2146	3.  Possession by a seller of a written certification by
2147	the purchaser, certifying the purchaser's entitlement to an
2148	exemption permitted by this subsection, relieves the seller from
2149	the responsibility of collecting the tax on the nontaxable
2150	amounts, and the department shall look solely to the purchaser
2151	for recovery of such tax if it determines that the purchaser was
2152	not entitled to the exemption.
2153	4.  Such exemption shall be applied as follows: beginning
2154	July 1, 2000, 100 percent of the charges for such electricity or
2155	steam shall be exempt.
2156	(gg)  Fair associations.-Also exempt from the tax imposed
2157	by this chapter is the sale, use, lease, rental, or grant of a
2158	license to use, made directly to or by a fair association, of
2159	real or tangible personal property; any charge made by a fair
2160	association, or its agents, for parking, admissions, or for
2161	temporary parking of vehicles used for sleeping quarters;
2162	rentals, subleases, and sublicenses of real or tangible personal
2163	property between the owner of the central amusement attraction
2164	and any owner of an amusement ride, as those terms are used in
2165	ss. 616.15(1)(b) and 616.242(3)(a), for the furnishing of
2166	amusement rides at a public fair or exposition; and other
2167	transactions of a fair association which are incurred directly
2168	by the fair association in the financing, construction, and
2169	operation of a fair, exposition, or other event or facility that
2170	is authorized by s. 616.08. As used in this paragraph, the terms
2171	"fair association" and "public fair or exposition" have the same
2172	meaning as those terms are defined in s. 616.001. This exemption
2173	does not apply to the sale of tangible personal property made by
2174	a fair association through an agent or independent contractor;
2175	sales of admissions and tangible personal property by a
2176	concessionaire, vendor, exhibitor, or licensee; or rentals and
2177	subleases of tangible personal property or real property between
2178	the owner of the central amusement attraction and a
2179	concessionaire, vendor, exhibitor, or licensee, except for the
2180	furnishing of amusement rides, which transactions are exempt.
2181	(hh)  Solar energy systems.-Also exempt are solar energy
2182	systems or any component thereof. The Florida Solar Energy
2183	Center shall from time to time certify to the department a list
2184	of equipment and requisite hardware considered to be a solar
2185	energy system or a component thereof.
2186	(ii)  Nonprofit cooperative hospital laundries.-Also exempt
2187	are sales or leases to nonprofit organizations that are
2188	incorporated under chapter 617 and which are treated, for
2189	federal income tax purposes, as cooperatives under subchapter T
2190	of the Internal Revenue Code, whose sole purpose is to offer
2191	laundry supplies and services to their members who must all be
2192	exempt from federal income tax pursuant to s. 501(c)(3) of the
2193	Internal Revenue Code. A member of a nonprofit cooperative
2194	hospital laundry whose Internal Revenue Code status changes
2195	shall, within 90 days after such change, divest all
2196	participation in the cooperative. The provision of laundry
2197	supplies and services to a nonmember business pursuant to a
2198	declaration of emergency under s. 252.36(2) and a written
2199	emergency plan of operation executed by the members of the
2200	cooperative does not invalidate or cause the denial of a
2201	cooperative's certificate of exemption.
2202	(jj)  Complimentary meals.-Also exempt from the tax imposed
2203	by this chapter are food or drinks that are furnished as part of
2204	a packaged room rate by any person offering for rent or lease
2205	any transient living accommodations as described in s.
2206	509.013(4)(a) which are licensed under part I of chapter 509 and
2207	which are subject to the tax under s. 212.03, if a separate
2208	charge or specific amount for the food or drinks is not shown.
2209	Such food or drinks are considered to be sold at retail as part
2210	of the total charge for the transient living accommodations.
2211	Moreover, the person offering the accommodations is not
2212	considered to be the consumer of items purchased in furnishing
2213	such food or drinks and may purchase those items under
2214	conditions of a sale for resale.
2215	(kk)  Nonprofit corporation conducting the correctional
2216	work programs.-Products sold pursuant to s. 946.515 by the
2217	corporation organized pursuant to part II of chapter 946 are
2218	exempt from the tax imposed by this chapter. This exemption
2219	applies retroactively to July 1, 1983.
2220	(ll)  Parent-teacher organizations, parent-teacher
2221	associations, and schools having grades K through 12.-
2222	1.  Sales or leases to parent-teacher organizations and
2223	associations the purpose of which is to raise funds for schools
2224	that teach grades K through 12 and that are associated with
2225	schools having grades K through 12 are exempt from the tax
2226	imposed by this chapter.
2227	2.  Parent-teacher organizations and associations described
2228	in subparagraph 1., and schools having grades K through 12, may
2229	pay tax to their suppliers on the cost price of school materials
2230	and supplies purchased, rented, or leased for resale or rental
2231	to students in grades K through 12, of items sold for
2232	fundraising purposes, and of items sold through vending machines
2233	located on the school premises, in lieu of collecting the tax
2234	imposed by this chapter from the purchaser. This paragraph also
2235	applies to food or beverages sold through vending machines
2236	located in the student lunchroom or dining room of a school
2237	having kindergarten through grade 12.
2238	(mm)  Mobile home lot improvements.-Items purchased by
2239	developers for use in making improvements to a mobile home lot
2240	owned by the developer may be purchased tax-exempt as a sale for
2241	resale if made pursuant to a contract that requires the
2242	developer to sell a mobile home to a purchaser, place the mobile
2243	home on the lot, and make the improvements to the lot for a
2244	single lump-sum price. The developer must collect and remit
2245	sales tax on the entire lump-sum price.
2246	(nn)  Veterans Administration.-When a veteran of the armed
2247	forces purchases an aircraft, boat, mobile home, motor vehicle,
2248	or other vehicle from a dealer pursuant to the provisions of 38
2249	U.S.C. s. 3902(a), or any successor provision of the United
2250	States Code, the amount that is paid directly to the dealer by
2251	the Veterans Administration is not taxable. However, any portion
2252	of the purchase price which is paid directly to the dealer by
2253	the veteran is taxable.
2254	(oo)  Complimentary items.-There is exempt from the tax
2255	imposed by this chapter:
2256	1.  Any food or drink, whether or not cooked or prepared on
2257	the premises, provided without charge as a sample or for the
2258	convenience of customers by a dealer that primarily sells food
2259	product items at retail.
2260	2.  Any item given to a customer as part of a price
2261	guarantee plan related to point-of-sale errors by a dealer that
2262	primarily sells food products at retail.
2263
2264	The exemptions in this paragraph do not apply to businesses with
2265	the primary activity of serving prepared meals or alcoholic
2266	beverages for immediate consumption.
2267	(pp)  Donated foods or beverages.-Any food or beverage
2268	donated by a dealer that sells food products at retail to a food
2269	bank or an organization that holds a current exemption from
2270	federal corporate income tax pursuant to s. 501(c) of the
2271	Internal Revenue Code of 1986, as amended, is exempt from the
2272	tax imposed by this chapter.
2273	(qq)  Racing dogs.-The sale of a racing dog by its owner is
2274	exempt if the owner is also the breeder of the animal.
2275	(rr)  Equipment used in aircraft repair and maintenance.-
2276	There shall be exempt from the tax imposed by this chapter
2277	replacement engines, parts, and equipment used in the repair or
2278	maintenance of qualified aircraft, aircraft of more than 15,000
2279	pounds maximum certified takeoff weight, and rotary wing
2280	aircraft of more than 10,300 pounds maximum certified takeoff
2281	weight, when such parts or equipment are installed on such
2282	aircraft that is being repaired or maintained in this state.
2283	(ss)  Aircraft sales or leases.-The sale or lease of a
2284	qualified aircraft or an aircraft of more than 15,000 pounds
2285	maximum certified takeoff weight for use by a common carrier is
2286	exempt from the tax imposed by this chapter. As used in this
2287	paragraph, "common carrier" means an airline operating under
2288	Federal Aviation Administration regulations contained in Title
2289	14, chapter I, part 121 or part 129 of the Code of Federal
2290	Regulations.
2291	(tt)  Nonprofit water systems.-Sales or leases to a not-
2292	for-profit corporation which holds a current exemption from
2293	federal income tax under s. 501(c)(4) or (12) of the Internal
2294	Revenue Code, as amended, are exempt from the tax imposed by
2295	this chapter if the sole or primary function of the corporation
2296	is to construct, maintain, or operate a water system in this
2297	state.
2298	(uu)  Library cooperatives.-Sales or leases to library
2299	cooperatives certified under s. 257.41(2) are exempt from the
2300	tax imposed by this chapter.
2301	(vv)  Advertising agencies.-
2302	1.  As used in this paragraph, the term "advertising
2303	agency" means any firm that is primarily engaged in the business
2304	of providing advertising materials and services to its clients.
2305	2.  The sale of advertising services by an advertising
2306	agency to a client is exempt from the tax imposed by this
2307	chapter. Also exempt from the tax imposed by this chapter are
2308	items of tangible personal property such as photographic
2309	negatives and positives, videos, films, galleys, mechanicals,
2310	veloxes, illustrations, digital audiotapes, analog tapes,
2311	printed advertisement copies, compact discs for the purpose of
2312	recording, digital equipment, and artwork and the services used
2313	to produce those items if the items are:
2314	a.  Sold to an advertising agency that is acting as an
2315	agent for its clients pursuant to contract, and are created for
2316	the performance of advertising services for the clients;
2317	b.  Produced, fabricated, manufactured, or otherwise
2318	created by an advertising agency for its clients, and are used
2319	in the performance of advertising services for the clients; or
2320	c.  Sold by an advertising agency to its clients in the
2321	performance of advertising services for the clients, whether or
2322	not the charges for these items are marked up or separately
2323	stated.
2324
2325	The exemption provided by this subparagraph does not apply when
2326	tangible personal property such as film, paper, and videotapes
2327	is purchased to create items such as photographic negatives and
2328	positives, videos, films, galleys, mechanicals, veloxes,
2329	illustrations, and artwork that are sold to an advertising
2330	agency or produced in-house by an advertising agency on behalf
2331	of its clients.
2332	3.  The items exempted from tax under subparagraph 2. and
2333	the creative services used by an advertising agency to design
2334	the advertising for promotional goods such as displays, display
2335	containers, exhibits, newspaper inserts, brochures, catalogues,
2336	direct mail letters or flats, shirts, hats, pens, pencils, key
2337	chains, or other printed goods or materials are not subject to
2338	tax. However, when such promotional goods are produced or
2339	reproduced for distribution, tax applies to the sales price
2340	charged to the client for such promotional goods.
2341	4.  For items purchased by an advertising agency and exempt
2342	from tax under this paragraph, possession of an exemption
2343	certificate from the advertising agency certifying the agency's
2344	entitlement to exemption relieves the vendor of the
2345	responsibility of collecting the tax on the sale of such items
2346	to the advertising agency, and the department shall look solely
2347	to the advertising agency for recovery of tax if it determines
2348	that the advertising agency was not entitled to the exemption.
2349	5.  The exemptions provided by this paragraph apply
2350	retroactively, except that all taxes that have been collected
2351	must be remitted, and taxes that have been remitted before July
2352	1, 1999, on transactions that are subject to exemption under
2353	this paragraph are not subject to refund.
2354	6.  The department may adopt rules that interpret or define
2355	the provisions of these exemptions and provide examples
2356	regarding the application of these exemptions.
2357	(ww)  Bullion.-The sale of gold, silver, or platinum
2358	bullion, or any combination thereof, in a single transaction is
2359	exempt if the sales price exceeds $500. The dealer must maintain
2360	proper documentation, as prescribed by rule of the department,
2361	to identify that portion of a transaction which involves the
2362	sale of gold, silver, or platinum bullion and is exempt under
2363	this paragraph.
2364	(xx)  Certain repair and labor charges.-
2365	1.  Subject to the provisions of subparagraphs 2. and 3.,
2366	there is exempt from the tax imposed by this chapter all labor
2367	charges for the repair of, and parts and materials used in the
2368	repair of and incorporated into, industrial machinery and
2369	equipment which is used for the manufacture, processing,
2370	compounding, production, or preparation for shipping of items of
2371	tangible personal property at a fixed location within this
2372	state.
2373	2.  This exemption applies only to industries classified
2374	under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22,
2375	23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38,
2376	and 39 and Industry Group Number 212. As used in this
2377	subparagraph, "SIC" means those classifications contained in the
2378	Standard Industrial Classification Manual, 1987, as published by
2379	the Office of Management and Budget, Executive Office of the
2380	President.
2381	3.  This exemption shall be applied as follows:
2382	a.  Beginning July 1, 2000, 50 percent of such charges for
2383	repair parts and labor shall be exempt.
2384	b.  Beginning July 1, 2001, 75 percent of such charges for
2385	repair parts and labor shall be exempt.
2386	c.  Beginning July 1, 2002, 100 percent of such charges for
2387	repair parts and labor shall be exempt.
2388	(yy)  Film and other printing supplies.-Also exempt are the
2389	following materials purchased, produced, or created by
2390	businesses classified under SIC Industry Numbers 275, 276, 277,
2391	278, or 279 for use in producing graphic matter for sale: film,
2392	photographic paper, dyes used for embossing and engraving,
2393	artwork, typography, lithographic plates, and negatives. As used
2394	in this paragraph, "SIC" means those classifications contained
2395	in the Standard Industrial Classification Manual, 1987, as
2396	published by the Office of Management and Budget, Executive
2397	Office of the President.
2398	(zz)  People-mover systems.-People-mover systems, and parts
2399	thereof, which are purchased or manufactured by contractors
2400	employed either directly by or as agents for the United States
2401	Government, the state, a county, a municipality, a political
2402	subdivision of the state, or the public operator of a public-use
2403	airport as defined by s. 332.004(14) are exempt from the tax
2404	imposed by this chapter when the systems or parts go into or
2405	become part of publicly owned facilities. In the case of
2406	contractors who manufacture and install such systems and parts,
2407	this exemption extends to the purchase of component parts and
2408	all other manufacturing and fabrication costs. The department
2409	may provide a form to be used by contractors to provide to
2410	suppliers of people-mover systems or parts to certify the
2411	contractors' eligibility for the exemption provided under this
2412	paragraph. As used in this paragraph, "people-mover systems"
2413	includes wheeled passenger vehicles and related control and
2414	power distribution systems that are part of a transportation
2415	system for use by the general public, regardless of whether such
2416	vehicles are operator-controlled or driverless, self-propelled
2417	or propelled by external power and control systems, or conducted
2418	on roads, rails, guidebeams, or other permanent structures that
2419	are an integral part of such transportation system. "Related
2420	control and power distribution systems" includes any electrical
2421	or electronic control or signaling equipment, but does not
2422	include the embedded wiring, conduits, or cabling used to
2423	transmit electrical or electronic signals among such control
2424	equipment, power distribution equipment, signaling equipment,
2425	and wheeled vehicles.
2426	(aaa)  Florida Fire and Emergency Services Foundation.-
2427	Sales or leases to the Florida Fire and Emergency Services
2428	Foundation are exempt from the tax imposed by this chapter.
2429	(bbb)  Railroad roadway materials.-Also exempt from the tax
2430	imposed by this chapter are railroad roadway materials used in
2431	the construction, repair, or maintenance of railways. Railroad
2432	roadway materials shall include rails, ties, ballasts,
2433	communication equipment, signal equipment, power transmission
2434	equipment, and any other track materials.
2435	(ccc)  Advertising materials distributed free of charge by
2436	mail in an envelope.-Likewise exempt are materials consisting
2437	exclusively of advertisements, such as individual coupons or
2438	other individual cards, sheets, or pages of printed advertising,
2439	that are distributed free of charge by mail in an envelope for
2440	10 or more persons on a monthly, bimonthly, or other regular
2441	basis.
2442	(ddd)  Certain delivery charges.-Separately stated charges
2443	that can be avoided at the option of the purchaser for the
2444	delivery, inspection, placement, or removal from packaging or
2445	shipping materials of furniture or appliances by the selling
2446	dealer at the premises of the purchaser or the removal of
2447	similar items from the premises of the purchaser are exempt. If
2448	any charge for delivery, inspection, placement, or removal of
2449	furniture or appliances includes the modification, assembly, or
2450	construction of such furniture or appliances, then all of the
2451	charges are taxable.
2452	(eee)  Bookstore operations at a postsecondary educational
2453	institution.-Also exempt from payment of the tax imposed by this
2454	chapter on renting, leasing, letting, or granting a license for
2455	the use of any real property are payments to a postsecondary
2456	educational institution made by any person pursuant to a grant
2457	of the right to conduct bookstore operations on real property
2458	owned or leased by the postsecondary educational institution. As
2459	used in this paragraph, the term "bookstore operations" means
2460	activities consisting predominantly of sales, distribution, and
2461	provision of textbooks, merchandise, and services traditionally
2462	offered in college and university bookstores for the benefit of
2463	the institution's students, faculty, and staff.
2464	(fff)  Aircraft temporarily in the state.-
2465	1.  An aircraft owned by a nonresident is exempt from the
2466	use tax imposed under this chapter if the aircraft enters and
2467	remains in this state for less than a total of 21 days during
2468	the 6-month period after the date of purchase. The temporary use
2469	of the aircraft and subsequent removal from this state may be
2470	proven by invoices for fuel, tie-down, or hangar charges issued
2471	by out-of-state vendors or suppliers or similar documentation
2472	that clearly and specifically identifies the aircraft. The
2473	exemption provided in this subparagraph is in addition to the
2474	exemptions provided in subparagraph 2. and s. 212.05(1)(a).
2475	2.  An aircraft owned by a nonresident is exempt from the
2476	use tax imposed under this chapter if the aircraft enters or
2477	remains in this state exclusively for purposes of flight
2478	training, repairs, alterations, refitting, or modification. Such
2479	purposes shall be supported by written documentation issued by
2480	in-state vendors or suppliers which clearly and specifically
2481	identifies the aircraft. The exemption provided in this
2482	subparagraph is in addition to the exemptions provided in
2483	subparagraph 1. and s. 212.05(1)(a).
2484	(ggg)  Fractional aircraft ownership programs.-The sale or
2485	use of aircraft primarily used in a fractional aircraft
2486	ownership program or of any parts or labor used in the
2487	completion, maintenance, repair, or overhaul of such aircraft is
2488	exempt from the tax imposed by this chapter. The exemption is
2489	not allowed unless the program manager of the fractional
2490	aircraft ownership program furnishes the dealer with a
2491	certificate stating that the lease, purchase, repair, or
2492	maintenance is for aircraft primarily used in a fractional
2493	aircraft ownership program and that the program manager
2494	qualifies for the exemption. If a program manager makes tax-
2495	exempt purchases on a continual basis, the program manager may
2496	allow the dealer to keep the certificate on file. The program
2497	manager must inform a dealer that keeps the certificate on file
2498	if the program manager no longer qualifies for the exemption.
2499	The department may adopt rules to administer this paragraph,
2500	including rules determining the format of the certificate.
2501	(8)  PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE OR
2502	FOREIGN COMMERCE.-
2503	(a)  The sale or use of vessels and parts thereof used to
2504	transport persons or property in interstate or foreign commerce,
2505	including commercial fishing vessels, is subject to the taxes
2506	imposed in this chapter only to the extent provided herein. The
2507	basis of the tax shall be the ratio of intrastate mileage to
2508	interstate or foreign mileage traveled by the carrier's vessels
2509	which were used in interstate or foreign commerce and which had
2510	at least some Florida mileage during the previous fiscal year.
2511	The ratio would be determined at the close of the carrier's
2512	fiscal year. However, during the fiscal year in which the vessel
2513	begins its initial operations in this state, the vessel's
2514	mileage apportionment factor may be determined on the basis of
2515	an estimated ratio of anticipated miles in this state to
2516	anticipated total miles for that year and, subsequently,
2517	additional tax shall be paid on the vessel, or a refund may be
2518	applied for, on the basis of the actual ratio of the vessel's
2519	miles in this state to its total miles for that year. This ratio
2520	shall be applied each month to the total Florida purchases of
2521	such vessels and parts thereof which are used in Florida to
2522	establish that portion of the total used and consumed in
2523	intrastate movement and subject to the tax at the applicable
2524	rate. The basis for imposition of any discretionary surtax shall
2525	be as set forth in s. 212.054. Items, appropriate to carry out
2526	the purposes for which a vessel is designed or equipped and
2527	used, purchased by the owner, operator, or agent of a vessel for
2528	use on board such vessel shall be deemed to be parts of the
2529	vessel upon which the same are used or consumed. Vessels and
2530	parts thereof used to transport persons or property in
2531	interstate and foreign commerce are hereby determined to be
2532	susceptible to a distinct and separate classification for
2533	taxation under the provisions of this chapter. Vessels and parts
2534	thereof used exclusively in intrastate commerce do not qualify
2535	for the proration of tax.
2536	(b)  The partial exemption provided for in this subsection
2537	shall not be allowed unless the purchaser signs an affidavit
2538	stating that the item or items to be partially exempted are for
2539	the exclusive use designated herein and setting forth the extent
2540	of such partial exemption. Any person furnishing a false
2541	affidavit to such effect for the purpose of evading payment of
2542	any tax imposed under this chapter is subject to the penalties
2543	set forth in s. 212.12 and as otherwise provided by law.
2544	(c)  It is the intent of the Legislature that neither
2545	subsection (4) nor this subsection shall be construed as
2546	imposing the tax provided by this chapter on vessels used as
2547	common carriers, contract carriers, or private carriers, engaged
2548	in interstate or foreign commerce, except to the extent provided
2549	by the pro rata formula provided in subsection (4) and in
2550	paragraph (a).
2551	(9)  PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES
2552	ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.-
2553	(a)  Railroads that are licensed as common carriers by the
2554	Surface Transportation Board and parts thereof used to transport
2555	persons or property in interstate or foreign commerce are
2556	subject to tax imposed in this chapter only to the extent
2557	provided herein. The basis of the tax shall be the ratio of
2558	intrastate mileage to interstate or foreign mileage traveled by
2559	the carrier during the previous fiscal year of the carrier. Such
2560	ratio is to be determined at the close of the carrier's fiscal
2561	year. However, during the fiscal year in which the railroad
2562	begins its initial operations in this state, the railroad's
2563	mileage apportionment factor may be determined on the basis of
2564	an estimated ratio of anticipated miles in this state to
2565	anticipated total miles for that year and, subsequently,
2566	additional tax shall be paid on the railroad, or a refund may be
2567	applied for, on the basis of the actual ratio of the railroad's
2568	miles in this state to its total miles for that year. This ratio
2569	shall be applied each month to the purchases of the railroad in
2570	this state which are used in this state to establish that
2571	portion of the total used and consumed in intrastate movement
2572	and subject to tax under this chapter. The basis for imposition
2573	of any discretionary surtax is set forth in s. 212.054.
2574	Railroads that are licensed as common carriers by the Surface
2575	Transportation Board and parts thereof used to transport persons
2576	or property in interstate and foreign commerce are hereby
2577	determined to be susceptible to a distinct and separate
2578	classification for taxation under the provisions of this
2579	chapter.
2580	(b)  Motor vehicles that are engaged in interstate commerce
2581	as common carriers, and parts thereof, used to transport persons
2582	or property in interstate or foreign commerce are subject to tax
2583	imposed in this chapter only to the extent provided herein. The
2584	basis of the tax shall be the ratio of intrastate mileage to
2585	interstate or foreign mileage traveled by the carrier's motor
2586	vehicles which were used in interstate or foreign commerce and
2587	which had at least some Florida mileage during the previous
2588	fiscal year of the carrier. Such ratio is to be determined at
2589	the close of the carrier's fiscal year. However, during the
2590	fiscal year in which the carrier begins its initial operations
2591	in this state, the carrier's mileage apportionment factor may be
2592	determined on the basis of an estimated ratio of anticipated
2593	miles in this state to anticipated total miles for that year
2594	and, subsequently, additional tax shall be paid on the carrier,
2595	or a refund may be applied for, on the basis of the actual ratio
2596	of the carrier's miles in this state to its total miles for that
2597	year. This ratio shall be applied each month to the purchases in
2598	this state of such motor vehicles and parts thereof which are
2599	used in this state to establish that portion of the total used
2600	and consumed in intrastate movement and subject to tax under
2601	this chapter. The basis for imposition of any discretionary
2602	surtax is set forth in s. 212.054. Motor vehicles that are
2603	engaged in interstate commerce, and parts thereof, used to
2604	transport persons or property in interstate and foreign commerce
2605	are hereby determined to be susceptible to a distinct and
2606	separate classification for taxation under the provisions of
2607	this chapter. Motor vehicles and parts thereof used exclusively
2608	in intrastate commerce do not qualify for the proration of tax.
2609	For purposes of this paragraph, parts of a motor vehicle engaged
2610	in interstate commerce include a separate tank not connected to
2611	the fuel supply system of the motor vehicle into which diesel
2612	fuel is placed to operate a refrigeration unit or other
2613	equipment.
2614	(10)  PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT OF
2615	ANOTHER STATE.-
2616	(a)  The tax collected on the sale of a new or used motor
2617	vehicle in this state to a resident of another state shall be an
2618	amount equal to the sales tax which would be imposed on such
2619	sale under the laws of the state of which the purchaser is a
2620	resident, except that such tax shall not exceed the tax that
2621	would otherwise be imposed under this chapter. At the time of
2622	the sale, the purchaser shall execute a notarized statement of
2623	his or her intent to license the vehicle in the state of which
2624	the purchaser is a resident within 45 days of the sale and of
2625	the fact of the payment to the State of Florida of a sales tax
2626	in an amount equivalent to the sales tax of his or her state of
2627	residence and shall submit the statement to the appropriate
2628	sales tax collection agency in his or her state of residence.
2629	Nothing in this subsection shall be construed to require the
2630	removal of the vehicle from this state following the filing of
2631	an intent to license the vehicle in the purchaser's home state
2632	if the purchaser licenses the vehicle in his or her home state
2633	within 45 days after the date of sale.
2634	(b)  Notwithstanding the partial exemption allowed in
2635	paragraph (a), a vehicle is subject to this state's sales tax at
2636	the applicable state sales tax rate plus authorized surtaxes
2637	when the vehicle is purchased by a nonresident corporation or
2638	partnership and:
2639	1.  An officer of the corporation is a resident of this
2640	state;
2641	2.  A stockholder of the corporation who owns at least 10
2642	percent of the corporation is a resident of this state; or
2643	3.  A partner in the partnership who has at least 10
2644	percent ownership is a resident of this state.
2645
2646	However, if the vehicle is removed from this state within 45
2647	days after purchase and remains outside the state for a minimum
2648	of 180 days, the vehicle may qualify for the partial exemption
2649	allowed in paragraph (a) despite the residency of owners or
2650	stockholders of the purchasing entity.
2651	(c)  Nothing herein shall require the payment of tax to the
2652	State of Florida for assessments made prior to July 1, 2001, if
2653	the tax imposed by this section has been paid to the state in
2654	which the vehicle was licensed and the department has assessed a
2655	like amount of tax on the same transactions. This provision
2656	shall apply retroactively to assessments that have been
2657	protested prior to August 1, 1999, and have not been paid on the
2658	date this act takes effect.
2659	(11)  PARTIAL EXEMPTION; FLYABLE AIRCRAFT.-
2660	(a)  The tax imposed on the sale by a manufacturer of
2661	flyable aircraft, who designs such aircraft, which sale may
2662	include necessary equipment and modifications placed on such
2663	flyable aircraft prior to delivery by the manufacturer, shall be
2664	an amount equal to the sales tax which would be imposed on such
2665	sale under the laws of the state in which the aircraft will be
2666	domiciled.
2667	(b)  This partial exemption applies only if the purchaser
2668	is a resident of another state who will not use the aircraft in
2669	this state, or if the purchaser is a resident of another state
2670	and uses the aircraft in interstate or foreign commerce, or if
2671	the purchaser is a resident of a foreign country.
2672	(c)  The maximum tax collectible under this subsection may
2673	not exceed 6 percent of the sales price of such aircraft. No
2674	Florida tax may be imposed on the sale of such aircraft if the
2675	state in which the aircraft will be domiciled does not allow
2676	Florida sales or use tax to be credited against its sales or use
2677	tax. Furthermore, no tax may be imposed on the sale of such
2678	aircraft if the state in which the aircraft will be domiciled
2679	has enacted a sales and use tax exemption for flyable aircraft
2680	or if the aircraft will be domiciled outside the United States.
2681	(d)  The purchaser shall execute a sworn affidavit
2682	attesting that he or she is not a resident of this state and
2683	stating where the aircraft will be domiciled. If the aircraft is
2684	subsequently used in this state within 6 months of the time of
2685	purchase, in violation of the intent of this subsection, the
2686	purchaser shall be liable for payment of the full use tax
2687	imposed by this chapter and shall be subject to the penalty
2688	imposed by s. 212.12(2), which penalty shall be mandatory.
2689	Notwithstanding the provisions of this paragraph, the owner of
2690	an aircraft purchased pursuant to this subsection may permit the
2691	aircraft to be returned to this state for repairs within 6
2692	months after the date of sale without the aircraft being in
2693	violation of the law and without incurring liability for payment
2694	of tax or penalty on the purchase price of the aircraft, so long
2695	as the aircraft is removed from this state within 20 days after
2696	the completion of the repairs and such removal can be proven by
2697	invoices for fuel, tie-down, or hangar charges issued by out-of-
2698	state vendors or suppliers or similar documentation.
2699	(12)  PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS, OR
2700	VIDEO TAPES.-
2701	(a)  There are exempt from the taxes imposed by this
2702	chapter the gross receipts from the sale or lease of, and the
2703	storage, use, or other consumption in this state of, master
2704	tapes or master records embodying sound, or master films or
2705	master video tapes; except that amounts paid to recording
2706	studios or motion picture or television studios for the tangible
2707	elements of such master tapes, records, films, or video tapes
2708	are taxable as otherwise provided in this chapter. This
2709	exemption will inure to the taxpayer upon presentation of the
2710	certificate of exemption issued to the taxpayer under the
2711	provisions of s. 288.1258.
2712	(b)  For the purposes of this subsection, the term:
2713	1.  "Amounts paid for the tangible elements" does not
2714	include any amounts paid for the copyrightable, artistic, or
2715	other intangible elements of such master tapes, records, films,
2716	or video tapes, whether designated as royalties or otherwise,
2717	including, but not limited to, services rendered in producing,
2718	fabricating, processing, or imprinting tangible personal
2719	property or any other services or production expenses in
2720	connection therewith which may otherwise be construed as
2721	constituting a "sale" under s. 212.02.
2722	2.  "Master films or master video tapes" means films or
2723	video tapes utilized by the motion picture and television
2724	production industries in making visual images for reproduction.
2725	3.  "Master tapes or master records embodying sound" means
2726	tapes, records, and other devices utilized by the recording
2727	industry in making recordings embodying sound.
2728	4.  "Motion picture or television studio" means a facility
2729	in which film or video tape productions or parts of productions
2730	are made and which contains the necessary equipment and
2731	personnel for this purpose and includes a mobile unit or vehicle
2732	that is equipped in much the same manner as a stationary studio
2733	and used in the making of film or video tape productions.
2734	5.  "Recording studio" means a place where, by means of
2735	mechanical or electronic devices, voices, music, or other sounds
2736	are transmitted to tapes, records, or other devices capable of
2737	reproducing sound.
2738	6.  "Recording industry" means any person engaged in an
2739	occupation or business of making recordings embodying sound for
2740	a livelihood or for a profit.
2741	7.  "Motion picture or television production industry"
2742	means any person engaged in an occupation or business for a
2743	livelihood or for profit of making visual motion picture or
2744	television visual images for showing on screen or television for
2745	theatrical, commercial, advertising, or educational purposes.
2746	(13)  No transactions shall be exempt from the tax imposed
2747	by this chapter except those expressly exempted herein. All laws
2748	granting tax exemptions, to the extent they may be inconsistent
2749	or in conflict with this chapter, including, but not limited to,
2750	the following designated laws, shall yield to and be superseded
2751	by the provisions of this subsection: ss. 125.019, 153.76,
2752	154.2331, 159.15, 159.31, 159.50, 159.708, 163.385, 163.395,
2753	215.76, 243.33, 315.11, 348.65, 348.762, 349.13, 403.1834,
2754	616.07, and 623.09, and the following Laws of Florida, acts of
2755	the year indicated: s. 31, chapter 30843, 1955; s. 19, chapter
2756	30845, 1955; s. 12, chapter 30927, 1955; s. 8, chapter 31179,
2757	1955; s. 15, chapter 31263, 1955; s. 13, chapter 31343, 1955; s.
2758	16, chapter 59-1653; s. 13, chapter 59-1356; s. 12, chapter 61-
2759	2261; s. 19, chapter 61-2754; s. 10, chapter 61-2686; s. 11,
2760	chapter 63-1643; s. 11, chapter 65-1274; s. 16, chapter 67-1446;
2761	and s. 10, chapter 67-1681. This subsection does not supersede
2762	the authority of a local government to adopt financial and local
2763	government incentives pursuant to s. 163.2517.
2764	(14)  TECHNICAL ASSISTANCE ADVISORY COMMITTEE.-The
2765	department shall establish a technical assistance advisory
2766	committee with public and private sector members, including
2767	representatives of both manufacturers and retailers, to advise
2768	the Department of Revenue and the Department of Health in
2769	determining the taxability of specific products and product
2770	lines pursuant to subsection (1) and paragraph (2)(a). In
2771	determining taxability and in preparing a list of specific
2772	products and product lines that are or are not taxable, the
2773	committee shall not be subject to the provisions of chapter 120.
2774	Private sector members shall not be compensated for serving on
2775	the committee.
2776	(15)  ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.-
2777	(a)  Beginning July 1, 1995, charges for electrical energy
2778	used by a qualified business at a fixed location in an
2779	enterprise zone in a municipality which has enacted an ordinance
2780	pursuant to s. 166.231(8) which provides for exemption of
2781	municipal utility taxes on such businesses or in an enterprise
2782	zone jointly authorized by a county and a municipality which has
2783	enacted an ordinance pursuant to s. 166.231(8) which provides
2784	for exemption of municipal utility taxes on such businesses
2785	shall receive an exemption equal to 50 percent of the tax
2786	imposed by this chapter, or, if no less than 20 percent of the
2787	employees of the business are residents of an enterprise zone,
2788	excluding temporary and part-time employees, the exemption shall
2789	be equal to 100 percent of the tax imposed by this chapter. A
2790	qualified business may receive such exemption for a period of 5
2791	years from the billing period beginning not more than 30 days
2792	following notification to the applicable utility company by the
2793	department that an exemption has been authorized pursuant to
2794	this subsection and s. 166.231(8).
2795	(b)  To receive this exemption, a business must file an
2796	application, with the enterprise zone development agency having
2797	jurisdiction over the enterprise zone where the business is
2798	located, on a form provided by the department for the purposes
2799	of this subsection and s. 166.231(8). The application shall be
2800	made under oath and shall include:
2801	1.  The name and location of the business.
2802	2.  The identifying number assigned pursuant to s. 290.0065
2803	to the enterprise zone in which the business is located.
2804	3.  The date on which electrical service is to be first
2805	initiated to the business.
2806	4.  The name and mailing address of the entity from which
2807	electrical energy is to be purchased.
2808	5.  The date of the application.
2809	6.  The name of the city in which the business is located.
2810	7.  If applicable, the name and address of each permanent
2811	employee of the business including, for each employee who is a
2812	resident of an enterprise zone, the identifying number assigned
2813	pursuant to s. 290.0065 to the enterprise zone in which the
2814	employee resides.
2815	8.  Whether the business is a small business as defined by
2816	s. 288.703.
2817	(c)  Within 10 working days after receipt of an
2818	application, the enterprise zone development agency shall review
2819	the application to determine if it contains all information
2820	required pursuant to paragraph (b) and meets the criteria set
2821	out in this subsection. The agency shall certify all
2822	applications that contain the information required pursuant to
2823	paragraph (b) and meet the criteria set out in this subsection
2824	as eligible to receive an exemption. If applicable, the agency
2825	shall also certify if 20 percent of the employees of the
2826	business are residents of an enterprise zone, excluding
2827	temporary and part-time employees. The certification shall be in
2828	writing, and a copy of the certification shall be transmitted to
2829	the executive director of the Department of Revenue. The
2830	applicant shall be responsible for forwarding a certified
2831	application to the department within 6 months after the
2832	occurrence of the appropriate qualifying provision set out in
2833	paragraph (f).
2834	(d)  If, in a subsequent audit conducted by the department,
2835	it is determined that the business did not meet the criteria
2836	mandated in this subsection, the amount of taxes exempted shall
2837	immediately be due and payable to the department by the
2838	business, together with the appropriate interest and penalty,
2839	computed from the due date of each bill for the electrical
2840	energy purchased as exempt under this subsection, in the manner
2841	prescribed by this chapter.
2842	(e)  The department shall adopt rules governing
2843	applications for, issuance of, and the form of applications for
2844	the exemption authorized in this subsection and provisions for
2845	recapture of taxes exempted under this subsection, and the
2846	department may establish guidelines as to qualifications for
2847	exemption.
2848	(f)  For the purpose of the exemption provided in this
2849	subsection, the term "qualified business" means a business which
2850	is:
2851	1.  First occupying a new structure to which electrical
2852	service, other than that used for construction purposes, has not
2853	been previously provided or furnished;
2854	2.  Newly occupying an existing, remodeled, renovated, or
2855	rehabilitated structure to which electrical service, other than
2856	that used for remodeling, renovation, or rehabilitation of the
2857	structure, has not been provided or furnished in the three
2858	preceding billing periods; or
2859	3.  Occupying a new, remodeled, rebuilt, renovated, or
2860	rehabilitated structure for which a refund has been granted
2861	pursuant to paragraph (5)(g).
2862	(g)  This subsection expires on the date specified in s.
2863	290.016 for the expiration of the Florida Enterprise Zone Act,
2864	except that:
2865	1.  Paragraph (d) shall not expire; and
2866	2.  Any qualified business which has been granted an
2867	exemption under this subsection prior to that date shall be
2868	allowed the full benefit of this exemption as if this subsection
2869	had not expired on that date.
2870	(16)  EXEMPTIONS; SPACE ACTIVITIES.-
2871	(a)  There shall be exempt from the tax imposed by this
2872	chapter:
2873	1.  The sale, lease, use, storage, consumption, or
2874	distribution in this state of any orbital space facility, space
2875	propulsion system, or space vehicle, satellite, or station of
2876	any kind possessing space flight capacity, including the
2877	components thereof.
2878	2.  The sale, lease, use, storage, consumption, or
2879	distribution in this state of tangible personal property placed
2880	on or used aboard any orbital space facility, space propulsion
2881	system, or space vehicle, satellite, or station of any kind,
2882	irrespective of whether such tangible personal property is
2883	returned to this state for subsequent use, storage, or
2884	consumption in any manner. This exemption is not affected by the
2885	failure of a launch to occur, or the destruction of a launch
2886	vehicle or any components thereof.
2887	(b)  This subsection shall be strictly construed and
2888	enforced.
2889	(17)  EXEMPTIONS; CERTAIN GOVERNMENT CONTRACTORS.-
2890	(a)  Subject to paragraph (d), the tax imposed by this
2891	chapter does not apply to the sale to or use by a government
2892	contractor of overhead materials. The term "government
2893	contractor" includes prime contractors and subcontractors.
2894	(b)  As used in this subsection, the term "overhead
2895	materials" means all tangible personal property, other than
2896	qualifying property as defined in s. 212.02(14)(a) and
2897	electricity, which is used or consumed in the performance of a
2898	qualifying contract, title to which property vests in or passes
2899	to the government under the contract.
2900	(c)  As used in this subsection and in s. 212.02(14)(a),
2901	the term "qualifying contract" means a contract with the United
2902	States Department of Defense or the National Aeronautics and
2903	Space Administration, or a subcontract thereunder, but does not
2904	include a contract or subcontract for the repair, alteration,
2905	improvement, or construction of real property, except to the
2906	extent that purchases under such a contract would otherwise be
2907	exempt from the tax imposed by this chapter.
2908	(d)  The exemption provided in this subsection applies as
2909	follows:
2910	1.  Beginning July 1, 2000, the tax imposed by this chapter
2911	shall be applicable to 60 percent of the sales price or cost
2912	price of such overhead materials.
2913	2.  Beginning July 1, 2001, the tax imposed by this chapter
2914	shall be applicable to 40 percent of the sales price or cost
2915	price of such overhead materials.
2916	3.  Beginning July 1, 2002, the tax imposed by this chapter
2917	shall be applicable to 20 percent of the sales price or cost
2918	price of such overhead materials.
2919	4.  Beginning July 1, 2003, the entire sales price or cost
2920	price of such overhead materials is exempt from the tax imposed
2921	by this chapter.
2922
2923	The exemption provided in this subsection does not apply to any
2924	part of the cost of overhead materials allocated to a contract
2925	that is not a qualifying contract.
2926	(e)  Possession by a seller of a resale certificate or
2927	direct-pay permit relieves the seller from the responsibility of
2928	collecting the tax, and the department shall look solely to the
2929	contractor for recovery of such tax if it determines that the
2930	contractor was not entitled to the exemption. The contractor
2931	shall self-accrue and remit any applicable sales or use tax due
2932	with respect to overhead materials and with respect to costs
2933	allocable to contracts that are not qualifying contracts. The
2934	department may amend its rules to reflect the use of resale
2935	certificates and direct-pay permits with respect to the
2936	exemption provided for in this subsection.
2937	(f)  This subsection is not an expression of legislative
2938	intent as to the applicability of any tax to any sale or use of
2939	overhead materials prior to July 1, 1999. In addition, this
2940	subsection does not imply that transactions or costs that are
2941	not described in this subsection are taxable.
2942	(18)  MACHINERY AND EQUIPMENT USED PREDOMINANTLY FOR
2943	RESEARCH AND DEVELOPMENT.-
2944	(a)  Machinery and equipment used predominantly for
2945	research and development as defined in this subsection are
2946	exempt from the tax imposed by this chapter.
2947	(b)  For purposes of this subsection:
2948	1.  "Machinery and equipment" includes, but is not limited
2949	to, molds, dies, machine tooling, other appurtenances or
2950	accessories to machinery and equipment, testing and measuring
2951	equipment, test beds, computers, and software, whether purchased
2952	or self-fabricated, and, if self-fabricated, includes materials
2953	and labor for design, fabrication, and assembly.
2954	2.  "Predominantly" means at least 50 percent of the time.
2955	3.  "Research and development" means research that has one
2956	of the following as its ultimate goal:
2957	a.  Basic research in a scientific field of endeavor;
2958	b.  Advancing knowledge or technology in a scientific or
2959	technical field of endeavor;
2960	c.  The development of a new product, whether or not the
2961	new product is offered for sale;
2962	d.  The improvement of an existing product, whether or not
2963	the improved product is offered for sale;
2964	e.  The development of new uses of an existing product,
2965	whether or not a new use is offered as a rationale to purchase
2966	the product; or
2967	f.  The design and development of prototypes, whether or
2968	not a resulting product is offered for sale.
2969
2970	The term "research and development" does not include ordinary
2971	testing or inspection of materials or products used for quality
2972	control, market research, efficiency surveys, consumer surveys,
2973	advertising and promotions, management studies, or research in
2974	connection with literary, historical, social science,
2975	psychological, or other similar nontechnical activities.
2976	(c)  The department may adopt rules pursuant to ss.
2977	120.536(1) and 120.54 that provide for administering and
2978	implementing this exemption.
2979	(d)  A person who claims the exemption provided in this
2980	subsection shall furnish the vendor of the machinery or
2981	equipment, including the vendor of materials and labor used in
2982	self-fabrication of the machinery or equipment, an affidavit
2983	stating that the item or items for which an exemption is claimed
2984	are machinery and equipment that will be used predominantly for
2985	research and development as required by this subsection. A
2986	purchaser who claims the exemption by refund shall include the
2987	affidavit with the refund application. The affidavit must
2988	contain the purchaser's name, address, sales and use tax
2989	registration number, and, if applicable, federal employer's
2990	identification number. Any person fraudulently furnishing an
2991	affidavit to the vendor for the purpose of evading payment of
2992	any tax imposed under this chapter shall be subject to the
2993	penalty set forth in s. 212.085 and as otherwise provided by
2994	law.
2995	(e)  In lieu of furnishing an affidavit, a purchaser
2996	claiming the exemption provided in this subsection who has a
2997	direct-pay permit may furnish the vendor with a copy of the
2998	direct-pay permit and shall maintain all documentation necessary
2999	to prove the exempt status of the purchases and fabrication
3000	activity.
3001	(f)  Purchasers shall maintain all documentation necessary
3002	to prove the exempt status of purchases and fabrication activity
3003	and make such documentation available for inspection pursuant to
3004	the requirements of s. 212.13(2).
3005	Section 4.  (1)  Effective July 1, 2015, ss. 212.051,
3006	212.052, 212.0598, 212.0602, 212.0801, 212.0821, 212.09,
3007	212.096, 212.097, and 212.098, Florida Statutes, are repealed.
3008	(2)  Unless modified or reenacted as provided in s.
3009	11.9035, Florida Statutes, effective July 1, 2015, any
3010	exemption, deduction, or credit from the state sales and use tax
3011	or any exclusion of sales and services from such tax granted by
3012	the following is repealed:
3013	(a)  Section 212.02, Florida Statutes, except rent on low-
3014	income housing under s. 212.02(2), Florida Statutes.
3015	(b)  Section 212.03, Florida Statutes, except rent charges
3016	paid by long-term residents under s. 212.03(4), Florida
3017	Statutes; rent charges paid by full-time students, by active
3018	military personnel, and by permanent residents under s.
3019	212.03(7)(a); Florida Statutes; rent charges in mobile home
3020	parks under s. 212.03(7)(c), Florida Statutes; and rent charges
3021	for living accommodations in migrant labor camps under s.
3022	212.03(7)(d), Florida Statutes.
3023	(c)  Section 212.031, Florida Statutes, except utility
3024	charges under s. 212.031(7), Florida Statutes.
3025	(d)  Sections 212.04, 212.05, and 212.0506, Florida
3026	Statutes.
3027	(e)  Sections 212.06 and 212.081, Florida Statutes, except
3028	any sale exempted by federal law or the United States
3029	Constitution.
3030	(f)  Sections 212.0601, 212.07, 212.12, 212.20, and 376.75,
3031	Florida Statutes.
3032	Section 5.  Except as otherwise expressly provided in this
3033	act, this act shall take effect July 1, 2012.

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