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.
   15  Be It Enacted by the Legislature of the State of Florida:
   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.