Florida Senate - 2017 SB 704 By Senator Garcia 36-00649A-17 2017704__ 1 A bill to be entitled 2 An act relating to the tax on sales, use, and other 3 transactions; amending s. 212.031, F.S.; providing a 4 limited exception from the tax on rental or license 5 fees charged for the use of real property for certain 6 ad valorem tax charges; providing that tax charges in 7 excess of a specified limit are subject to tax; 8 specifying the manner of remitting such taxes to the 9 Department of Revenue; requiring ad valorem tax 10 charges for multiple tenants or licensees of a parcel 11 of property or portions of a property to be calculated 12 in a specified manner under certain circumstances; 13 providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Paragraph (c) of subsection (1) of section 18 212.031, Florida Statutes, is amended to read: 19 212.031 Tax on rental or license fee for use of real 20 property.— 21 (1) 22 (c)1. For the exercise of such privilege, a tax is levied 23 in an amount equal to 6 percent of and on the total rent or 24 license fee charged for such real property by the person 25 charging or collecting the rental or license fee. The total rent 26 or license fee charged for such real property shall include 27 payments for the granting of a privilege to use or occupy real 28 property for any purpose and shall include base rent, percentage 29 rents, or similar charges. Such charges shall be included in the 30 total rent or license fee subject to tax under this section 31 whether or not they can be attributed to the ability of the 32 lessor’s or licensor’s property as used or operated to attract 33 customers. 34 2. Payments for intrinsically valuable personal property 35 such as franchises, trademarks, service marks, logos, or patents 36 are not subject to tax under this section. 37 3. Separately itemized charges for ad valorem taxes paid to 38 the lessor or the licensor, or to any other person if itemized 39 and not taxed, are not subject to tax under this section. For 40 purposes of this subparagraph, the maximum charges that are not 41 subject to tax in a calendar year for a single parcel of real 42 property are the lesser of the ad valorem taxes actually paid to 43 the tax collector or the ad valorem taxes delinquent on April 1 44 of the following calendar year. If the total ad valorem tax 45 charges exceed the taxes actually paid or delinquent on April 1 46 of the following calendar year, the excess ad valorem tax 47 charges are subject to tax, which must be remitted on the 48 December sales and use tax return to the department in the 49 manner provided for dealers to remit taxes under s. 212.11. If 50 multiple tenants or licensees occupy a parcel of real property 51 or portions of the real property are not subject to a lease or 52 license to use real property, the tenants’ or licensees’ ad 53 valorem tax charges shall be calculated based on a reasonable 54 allocation related to the real property occupied by each tenant 55 or used by each licensee. 56 4. In the case of a contractual arrangement that provides 57 for both payments taxable as total rent or license fee and 58 payments not subject to tax, the tax shall be based on a 59 reasonable allocation of such payments and shall not apply to 60 that portion which is for the nontaxable payments. 61 Section 2. This act shall take effect January 1, 2018.