Florida Senate - 2019                                    SB 1586
       
       
        
       By Senator Gruters
       
       
       
       
       
       23-00915B-19                                          20191586__
    1                        A bill to be entitled                      
    2         An act relating to a tax exemption for use of real
    3         property; amending s. 212.031, F.S.; providing an
    4         exemption, under certain circumstances, from the sales
    5         tax on commercial real property rentals; providing for
    6         proration of the exemption for certain real property;
    7         specifying the determination of annual adjustments to
    8         a just value threshold under the exemption; providing
    9         an effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Subsection (10) is added to section 212.031,
   14  Florida Statutes, to read:
   15         212.031 Tax on rental or license fee for use of real
   16  property.—
   17         (10)(a) The rental, lease, or license for the use of real
   18  property is exempt from the tax imposed by this section if:
   19         1. The property owner and the person who is renting,
   20  leasing, or licensing the real property are separate legal
   21  entities with 100 percent common ownership; and
   22         2. The just value of the real property, as determined by
   23  the property appraiser under chapter 193, is no more than $1
   24  million in the 2020 tax roll, and for each successive tax roll,
   25  the adjusted value as determined in paragraph (c).
   26         (b) If the real property being rented, leased, or licensed
   27  is not a discrete parcel or unit on the tax roll, for purposes
   28  of this subsection, the just value of the rented, leased, or
   29  licensed real property shall be a value reasonably prorated from
   30  the just value of the parcel of real property on the tax roll of
   31  which the rented, leased, or licensed real property is a part.
   32  Such proration must reflect a reasonable market value of the
   33  rented, leased, or licensed real property and may be based on
   34  square footage and other relevant information as may be
   35  available.
   36         (c) For purposes of paragraph (a), beginning January 1,
   37  2021, and every year thereafter, the $1 million threshold shall
   38  be adjusted by the percentage change in the average of the
   39  Consumer Price Index issued by the United States Department of
   40  Labor for the most recent 12-month period ending September 30.
   41         Section 2. This act shall take effect July 1, 2019.