Bill Text: FL S0216 | 2010 | Regular Session | Introduced

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Bill Title: Sales Tax/Review of Exemptions and Exclusions [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-03-18 - Withdrawn from Finance and Tax; General Government Appropriations; Policy & Steering Committee on Ways and Means; Rules -SJ 00268; Withdrawn from further consideration -SJ 00268 [S0216 Detail]

Download: Florida-2010-S0216-Introduced.html

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Florida Senate - 2010                                     SB 216 
 
By Senator Lynn 
7-00025-10                                             2010216__ 
1                        A bill to be entitled 
2         An act relating to a review of exemptions and 
3         exclusions from the tax on sales, use, and other 
4         transactions; amending s. 11.903, F.S.; expanding the 
5         purposes of the Joint Legislative Sunset Committee to 
6         conform to changes made by the act; creating s. 
7         11.9035, F.S.; providing a short title; providing 
8         additional responsibilities of the Joint Legislative 
9         Sunset Committee for the purpose of reviewing 
10         exemptions from the general state sales and use tax 
11         and exclusions of sales of services from such 
12         taxation; providing for meetings and governance by 
13         joint rules; providing definitions; specifying powers 
14         and duties; providing for reports; requiring 
15         continuing periodic review of sales tax exemptions and 
16         exclusions; providing for recommendations to the 
17         Legislature; amending s. 212.08, F.S.; providing for 
18         future elimination of all sales, rental, use, 
19         consumption, distribution, and storage tax exemptions 
20         except those for general groceries, medical, guide 
21         dogs for the blind, and household fuels; repealing s. 
22         212.051, F.S., relating to an exemption for equipment, 
23         machinery, and other materials for pollution control; 
24         repealing s. 212.052, F.S., relating to an exemption 
25         for research or development costs; repealing s. 
26         212.0598, F.S., relating to a partial exemption for 
27         air carriers’ maintenance bases; repealing s. 
28         212.0602, F.S., relating to a limited exemption for 
29         education; repealing s. 212.0801, F.S., relating to an 
30         exemption for qualified aircraft; repealing s. 
31         212.0821, F.S., relating to legislative intent that 
32         political subdivisions and public libraries use sales 
33         tax exemption certificates for certain purchases; 
34         repealing s. 212.09, F.S., relating to trade-ins 
35         deducted; repealing s. 212.096, F.S., relating to 
36         credit for job creation in enterprise zones; repealing 
37         s. 212.097, F.S., relating to the Urban High Crime 
38         Area Job Tax Credit Program; repealing s. 212.098, 
39         F.S., relating to the Rural Job Tax Credit Program; 
40         providing for future repeal of certain provisions of 
41         ss. 212.02, 212.03, 212.031, 212.04, 212.05, 212.0506, 
42         212.06, 212.0601, 212.07, 212.081, 212.12, 212.20, and 
43         376.75, F.S., relating to various sales and use tax 
44         exemptions, exclusions, and credits; providing 
45         exceptions; providing effective dates. 
46 
47         WHEREAS, Florida’s current budget difficulties require the 
48  state to consider innovative solutions in addressing the long 
49  term viability of the state’s tax structure, and 
50         WHEREAS, the state’s tax structure should treat individuals 
51  fairly and equitably, imposing similar tax burdens on people in 
52  similar circumstances, and 
53         WHEREAS, exemptions to the state’s sales tax should serve 
54  an important state interest and should be uniform in the effect 
55  on residents of the state, and 
56         WHEREAS, the Legislature finds that a periodic sunset and 
57  review of all sales tax exemptions will serve to restore 
58  fairness to the state’s tax structure, NOW, THEREFORE, 
59 
60  Be It Enacted by the Legislature of the State of Florida: 
61 
62         Section 1. Subsection (2) of section 11.903, Florida 
63  Statutes, is amended to read: 
64         11.903 Legislative Sunset Review Committees and the Joint 
65  Legislative Sunset Committee.— 
66         (2) The Senate and House of Representatives shall appoint a 
67  Joint Legislative Sunset Committee to: 
68         (a) Oversee for the purposes of overseeing the agency 
69  sunset reviews review process required by ss. 11.901-11.920; and 
70         (b) Review exemptions from the tax on sales, use, and other 
71  transactions required by s. 11.9035. and of making 
72 
73  The committee shall make recommendations to the Legislature 
74  based on the findings of the reviews. 
75         Section 2. Section 11.9035, Florida Statutes, is created to 
76  read: 
77         11.9035 Sales and use tax exemption and exclusion review.— 
78         (1) SHORT TITLE.—This section may be cited as the “Florida 
79  Sales Tax Fairness Restoration Act.” 
80         (2) SALES TAX EXEMPTIONS REVIEW.—In addition to the review 
81  required under ss. 11.901-11.920, the Joint Legislative Sunset 
82  Committee shall conduct comprehensive, periodic reviews of all 
83  exemptions from the general state sales and use tax and 
84  exclusions of sales of services from such taxation as provided 
85  by this section. 
86         (3) PROCEDURES.—In addition to other meeting requirements 
87  specified by ss. 11.901-11.920, the committee for each review 
88  cycle shall have its initial meeting no later than September 1, 
89  2010, and thereafter as necessary, at the call of the chair at 
90  the time and place designated by the chair. A quorum shall 
91  consist of a majority of the committee members from each house. 
92  During the interim between regular sessions, the committee may 
93  conduct its meetings through teleconferences or other similar 
94  means. 
95         (4) RULES.—For purposes of this section, the committee 
96  shall be governed by joint rules adopted by the Legislature 
97  pursuant to authority to adopt rules under s. 4, Art. III of the 
98  State Constitution. 
99         (5) DEFINITIONS.—As used in this section, the term: 
100         (a) “General state sales and use tax” means the sales and 
101  use tax imposed under chapter 212. 
102         (b) “Service” means a service within any of the following 
103  service categories under the North American Industry 
104  Classification System (NAICS): 
105         1. Personal services. 
106         2. Professional services. 
107         3. Business services. 
108         4. Financial services. 
109         5. Media services. 
110         6. Entertainment and sports services. 
111         7. Construction services. 
112         8. Institutional services. 
113         9. Transportation services. 
114         10. Health services. 
115         (6) POWERS AND DUTIES.—The committee shall conduct a 
116  comprehensive review of all current and future exemptions from 
117  the general state sales and use tax and the exclusion of sales 
118  of services from such taxation. The committee shall establish 
119  criteria by which each exemption or exclusion shall be 
120  evaluated. In developing the evaluation criteria, the committee 
121  shall consider the following principles of taxation: 
122         (a) Equity.—The Florida tax system should treat individuals 
123  equitably. It should impose similar tax burdens on people in 
124  similar circumstances and should minimize regressivity. 
125         (b) Simplicity, transparency, and compliance.—The Florida 
126  tax system should facilitate taxpayer compliance. It should be 
127  simple and easy to understand and should provide visibility and 
128  awareness of the taxes being paid. 
129         (c) Neutrality.—The Florida tax system should affect 
130  taxpayers uniformly and consistently. The primary purpose of any 
131  tax should be to raise revenue for appropriate governmental 
132  functions, rather than to influence business and personal 
133  decisions. 
134         (d) Stability.—The Florida tax system should produce 
135  revenues in a stable and reliable manner that is sufficient to 
136  fund appropriate governmental functions and expenditures. 
137         (e) Integration.—The Florida tax system should balance the 
138  need for integration of federal, state, and local taxation. 
139         (f) Public purpose.—Any sales and use tax exemption or 
140  exclusion under the Florida tax system should be based upon a 
141  determination that the exemption or exclusion promotes an 
142  important state interest and should benefit citizens as equally 
143  as possible. 
144         (7) FINDINGS AND RECOMMENDATIONS.—In conducting its review 
145  of each exemption from the general state sales and use tax or 
146  the exclusion of the sale of a service from such taxation, the 
147  committee shall make findings of fact and recommend whether the 
148  exemption should be retained, modified, or repealed or whether 
149  the exclusion should be retained or eliminated. Each 
150  recommendation must be made by majority vote of the committee 
151  members from each house. If a majority vote of the committee 
152  members from each house cannot be achieved, the committee must 
153  recommend that the exemption or exclusion be repealed. The 
154  findings of fact and recommendations of the committee shall be 
155  made by reports to the President of the Senate and the Speaker 
156  of the House of Representatives. 
157         (8) EXEMPTIONS AND EXCLUSIONS REVIEW.— 
158         (a) The committee may use its discretion in determining the 
159  order in which it reviews the exemptions and exclusions. For the 
160  initial review, the committee shall submit to the President of 
161  the Senate and the Speaker of the House of Representatives its 
162  initial report on one-third of the exemptions and exclusions by 
163  November 1, 2010, its report on the second one-third of the 
164  exemptions and exclusions by March 1, 2011, and its report on 
165  the final one-third of the exemptions and exclusions by July 1, 
166  2011, with no duplication of exemptions or exclusions from one 
167  report to the next. Thereafter, the committee shall review every 
168  3 years approximately one-third of the exemptions and 
169  exclusions, with no duplication of exemptions or exclusions 
170  reviewed from one 3-year period to the next 3-year period. The 
171  committee shall submit its 3-year period review reports no later 
172  than December 1 of the year prior to the next regular session 
173  after the expiration of the third year of each 3-year review 
174  cycle. The committee shall begin a new 9-year review cycle of 
175  all exemptions from the general state sales and use tax and all 
176  exclusions of sales of services from such taxation every 9 years 
177  after the termination of the previous review cycle. 
178         (b) Notwithstanding the provisions of this section, 
179  exemptions and exclusions for necessities, including, but not 
180  limited to, exemptions for general groceries as described in s. 
181  212.08(1), medical products or supplies as described in s. 
182  212.08(2), health services, residential housing, residential 
183  electricity, and home heating fuel, and sales of property or 
184  services that the state is prohibited from taxing under the 
185  State Constitution or laws of the United States are not subject 
186  to review by the committee or repeal in legislation proposed by 
187  the committee. 
188         (9) LEGISLATION.—At the regular session after submission of 
189  each annual report to the Speaker of the House of 
190  Representatives and the President of the Senate, the committee 
191  shall introduce in both houses of the Legislature bills 
192  presenting for reenactment, modification, or repeal those 
193  exemptions from the general state sales and use tax or any 
194  imposition of such taxation on sales of services which were 
195  recommended by the committee in the report submitted immediately 
196  prior to the session in which introduced. Each bill introduced 
197  must be restricted to a single exemption or the imposition of 
198  the tax on a single service and must be submitted to a vote of 
199  the members of each house of the Legislature no later than the 
200  8th week of the session in which it is introduced, unless the 
201  substance of the bill has already been voted on by the members 
202  of that house of the Legislature in another bill during that 
203  session, regardless of the outcome of that vote, or the bill has 
204  already been submitted to the members of the other house and has 
205  been defeated. 
206         (10) REPEAL.—Any exemption from the state general sales and 
207  use tax or exemption from imposition of such tax on sales of 
208  services which is not prohibited from review by the committee 
209  under the requirements of paragraph (8)(b) and is not modified 
210  or reenacted by the end of the regular session after any 9-year 
211  review period is repealed on July 1 after the end of the regular 
212  session immediately after the 9-year review period. 
213         (11) CONSTRUCTION.—This section does not preclude a 
214  legislator from filing for consideration during any legislative 
215  session a bill proposing to modify, repeal, or enact any 
216  exemption from the general state sales and use tax or the 
217  imposition of such taxation on the sales of any service. 
218         Section 3. Effective July 1, 2012, section 212.08, Florida 
219  Statutes, is amended to read: 
220         212.08 Sales, rental, use, consumption, distribution, and 
221  storage tax; specified exemptions.—The sale at retail, the 
222  rental, the use, the consumption, the distribution, and the 
223  storage to be used or consumed in this state of the following 
224  are hereby specifically exempt from the tax imposed by this 
225  chapter. 
226         (1) EXEMPTIONS; GENERAL GROCERIES.— 
227         (a) Food products for human consumption are exempt from the 
228  tax imposed by this chapter. 
229         (b) For the purpose of this chapter, as used in this 
230  subsection, the term “food products” means edible commodities, 
231  whether processed, cooked, raw, canned, or in any other form, 
232  which are generally regarded as food. This includes, but is not 
233  limited to, all of the following: 
234         1. Cereals and cereal products, baked goods, oleomargarine, 
235  meat and meat products, fish and seafood products, frozen foods 
236  and dinners, poultry, eggs and egg products, vegetables and 
237  vegetable products, fruit and fruit products, spices, salt, 
238  sugar and sugar products, milk and dairy products, and products 
239  intended to be mixed with milk. 
240         2. Natural fruit or vegetable juices or their concentrates 
241  or reconstituted natural concentrated fruit or vegetable juices, 
242  whether frozen or unfrozen, dehydrated, powdered, granulated, 
243  sweetened or unsweetened, seasoned with salt or spice, or 
244  unseasoned; coffee, coffee substitutes, or cocoa; and tea, 
245  unless it is sold in a liquid form. 
246         3. Bakery products sold by bakeries, pastry shops, or like 
247  establishments that do not have eating facilities. 
248         (c) The exemption provided by this subsection does not 
249  apply: 
250         1. When the food products are sold as meals for consumption 
251  on or off the premises of the dealer. 
252         2. When the food products are furnished, prepared, or 
253  served for consumption at tables, chairs, or counters or from 
254  trays, glasses, dishes, or other tableware, whether provided by 
255  the dealer or by a person with whom the dealer contracts to 
256  furnish, prepare, or serve food products to others. 
257         3. When the food products are ordinarily sold for immediate 
258  consumption on the seller’s premises or near a location at which 
259  parking facilities are provided primarily for the use of patrons 
260  in consuming the products purchased at the location, even though 
261  such products are sold on a “take out” or “to go” order and are 
262  actually packaged or wrapped and taken from the premises of the 
263  dealer. 
264         4. To sandwiches sold ready for immediate consumption on or 
265  off the seller’s premises. 
266         5. When the food products are sold ready for immediate 
267  consumption within a place, the entrance to which is subject to 
268  an admission charge. 
269         6. When the food products are sold as hot prepared food 
270  products. 
271         7. To soft drinks, which include, but are not limited to, 
272  any nonalcoholic beverage, any preparation or beverage commonly 
273  referred to as a “soft drink,” or any noncarbonated drink made 
274  from milk derivatives or tea, when sold in cans or similar 
275  containers. 
276         8. To ice cream, frozen yogurt, and similar frozen dairy or 
277  nondairy products in cones, small cups, or pints, popsicles, 
278  frozen fruit bars, or other novelty items, whether or not sold 
279  separately. 
280         9. To food prepared, whether on or off the premises, and 
281  sold for immediate consumption. This does not apply to food 
282  prepared off the premises and sold in the original sealed 
283  container, or the slicing of products into smaller portions. 
284         10. When the food products are sold through a vending 
285  machine, pushcart, motor vehicle, or any other form of vehicle. 
286         11. To candy and any similar product regarded as candy or 
287  confection, based on its normal use, as indicated on the label 
288  or advertising thereof. 
289         12. To bakery products sold by bakeries, pastry shops, or 
290  like establishments that have eating facilities, except when 
291  sold for consumption off the seller’s premises. 
292         13. When food products are served, prepared, or sold in or 
293  by restaurants, lunch counters, cafeterias, hotels, taverns, or 
294  other like places of business. 
295         (d) As used in this subsection, the term: 
296         1. “For consumption off the seller’s premises” means that 
297  the food or drink is intended by the customer to be consumed at 
298  a place away from the dealer’s premises. 
299         2. “For consumption on the seller’s premises” means that 
300  the food or drink sold may be immediately consumed on the 
301  premises where the dealer conducts his or her business. In 
302  determining whether an item of food is sold for immediate 
303  consumption, there shall be considered the customary consumption 
304  practices prevailing at the selling facility. 
305         3. “Premises” shall be construed broadly, and means, but is 
306  not limited to, the lobby, aisle, or auditorium of a theater; 
307  the seating, aisle, or parking area of an arena, rink, or 
308  stadium; or the parking area of a drive-in or outdoor theater. 
309  The premises of a caterer with respect to catered meals or 
310  beverages shall be the place where such meals or beverages are 
311  served. 
312         4. “Hot prepared food products” means those products, 
313  items, or components which have been prepared for sale in a 
314  heated condition and which are sold at any temperature that is 
315  higher than the air temperature of the room or place where they 
316  are sold. “Hot prepared food products,” for the purposes of this 
317  subsection, includes a combination of hot and cold food items or 
318  components where a single price has been established for the 
319  combination and the food products are sold in such combination, 
320  such as a hot meal, a hot specialty dish or serving, or a hot 
321  sandwich or hot pizza, including cold components or side items. 
322         (e)1. Food or drinks not exempt under paragraphs (a), (b), 
323  (c), and (d) shall be exempt, notwithstanding those paragraphs, 
324  when purchased with food coupons or Special Supplemental Food 
325  Program for Women, Infants, and Children vouchers issued under 
326  authority of federal law. 
327         2. This paragraph is effective only while federal law 
328  prohibits a state’s participation in the federal food coupon 
329  program or Special Supplemental Food Program for Women, Infants, 
330  and Children if there is an official determination that state or 
331  local sales taxes are collected within that state on purchases 
332  of food or drinks with such coupons. 
333         3. This paragraph shall not apply to any food or drinks on 
334  which federal law shall permit sales taxes without penalty, such 
335  as termination of the state’s participation. 
336         (2) EXEMPTIONS; MEDICAL.— 
337         (a) There shall be exempt from the tax imposed by this 
338  chapter any medical products and supplies or medicine dispensed 
339  according to an individual prescription or prescriptions written 
340  by a prescriber authorized by law to prescribe medicinal drugs; 
341  hypodermic needles; hypodermic syringes; chemical compounds and 
342  test kits used for the diagnosis or treatment of human disease, 
343  illness, or injury; and common household remedies recommended 
344  and generally sold for internal or external use in the cure, 
345  mitigation, treatment, or prevention of illness or disease in 
346  human beings, but not including cosmetics or toilet articles, 
347  notwithstanding the presence of medicinal ingredients therein, 
348  according to a list prescribed and approved by the Department of 
349  Health, which list shall be certified to the Department of 
350  Revenue from time to time and included in the rules promulgated 
351  by the Department of Revenue. There shall also be exempt from 
352  the tax imposed by this chapter artificial eyes and limbs; 
353  orthopedic shoes; prescription eyeglasses and items incidental 
354  thereto or which become a part thereof; dentures; hearing aids; 
355  crutches; prosthetic and orthopedic appliances; and funerals. In 
356  addition, any items intended for one-time use which transfer 
357  essential optical characteristics to contact lenses shall be 
358  exempt from the tax imposed by this chapter; however, this 
359  exemption shall apply only after $100,000 of the tax imposed by 
360  this chapter on such items has been paid in any calendar year by 
361  a taxpayer who claims the exemption in such year. Funeral 
362  directors shall pay tax on all tangible personal property used 
363  by them in their business. 
364         (b) For the purposes of this subsection: 
365         1. “Prosthetic and orthopedic appliances” means any 
366  apparatus, instrument, device, or equipment used to replace or 
367  substitute for any missing part of the body, to alleviate the 
368  malfunction of any part of the body, or to assist any disabled 
369  person in leading a normal life by facilitating such person’s 
370  mobility. Such apparatus, instrument, device, or equipment shall 
371  be exempted according to an individual prescription or 
372  prescriptions written by a physician licensed under chapter 458, 
373  chapter 459, chapter 460, chapter 461, or chapter 466, or 
374  according to a list prescribed and approved by the Department of 
375  Health, which list shall be certified to the Department of 
376  Revenue from time to time and included in the rules promulgated 
377  by the Department of Revenue. 
378         2. “Cosmetics” means articles intended to be rubbed, 
379  poured, sprinkled, or sprayed on, introduced into, or otherwise 
380  applied to the human body for cleansing, beautifying, promoting 
381  attractiveness, or altering the appearance and also means 
382  articles intended for use as a compound of any such articles, 
383  including, but not limited to, cold creams, suntan lotions, 
384  makeup, and body lotions. 
385         3. “Toilet articles” means any article advertised or held 
386  out for sale for grooming purposes and those articles that are 
387  customarily used for grooming purposes, regardless of the name 
388  by which they may be known, including, but not limited to, soap, 
389  toothpaste, hair spray, shaving products, colognes, perfumes, 
390  shampoo, deodorant, and mouthwash. 
391         4. “Prescription” includes any order for drugs or medicinal 
392  supplies written or transmitted by any means of communication by 
393  a duly licensed practitioner authorized by the laws of the state 
394  to prescribe such drugs or medicinal supplies and intended to be 
395  dispensed by a pharmacist. The term also includes an orally 
396  transmitted order by the lawfully designated agent of such 
397  practitioner. The term also includes an order written or 
398  transmitted by a practitioner licensed to practice in a 
399  jurisdiction other than this state, but only if the pharmacist 
400  called upon to dispense such order determines, in the exercise 
401  of his or her professional judgment, that the order is valid and 
402  necessary for the treatment of a chronic or recurrent illness. 
403  The term also includes a pharmacist’s order for a product 
404  selected from the formulary created pursuant to s. 465.186. A 
405  prescription may be retained in written form, or the pharmacist 
406  may cause it to be recorded in a data processing system, 
407  provided that such order can be produced in printed form upon 
408  lawful request. 
409         (c) Chlorine shall not be exempt from the tax imposed by 
410  this chapter when used for the treatment of water in swimming 
411  pools. 
412         (d) Lithotripters are exempt. 
413         (e) Human organs are exempt. 
414         (f) Sales of drugs to or by physicians, dentists, 
415  veterinarians, and hospitals in connection with medical 
416  treatment are exempt. 
417         (g) Medical products and supplies used in the cure, 
418  mitigation, alleviation, prevention, or treatment of injury, 
419  disease, or incapacity which are temporarily or permanently 
420  incorporated into a patient or client by a practitioner of the 
421  healing arts licensed in the state are exempt. 
422         (h) The purchase by a veterinarian of commonly recognized 
423  substances possessing curative or remedial properties which are 
424  ordered and dispensed as treatment for a diagnosed health 
425  disorder by or on the prescription of a duly licensed 
426  veterinarian, and which are applied to or consumed by animals 
427  for alleviation of pain or the cure or prevention of sickness, 
428  disease, or suffering are exempt. Also exempt are the purchase 
429  by a veterinarian of antiseptics, absorbent cotton, gauze for 
430  bandages, lotions, vitamins, and worm remedies. 
431         (i) X-ray opaques, also known as opaque drugs and 
432  radiopaque, such as the various opaque dyes and barium sulphate, 
433  when used in connection with medical X rays for treatment of 
434  bodies of humans and animals, are exempt. 
435         (j) Parts, special attachments, special lettering, and 
436  other like items that are added to or attached to tangible 
437  personal property so that a handicapped person can use them are 
438  exempt when such items are purchased by a person pursuant to an 
439  individual prescription. 
440         (k) This subsection shall be strictly construed and 
441  enforced. 
442         (3) EXEMPTIONS; CERTAIN FARM EQUIPMENT.—There shall be no 
443  tax on the sale, rental, lease, use, consumption, or storage for 
444  use in this state of power farm equipment used exclusively on a 
445  farm or in a forest in the agricultural production of crops or 
446  products as produced by those agricultural industries included 
447  in s. 570.02(1), or for fire prevention and suppression work 
448  with respect to such crops or products. Harvesting may not be 
449  construed to include processing activities. This exemption is 
450  not forfeited by moving farm equipment between farms or forests. 
451  However, this exemption shall not be allowed unless the 
452  purchaser, renter, or lessee signs a certificate stating that 
453  the farm equipment is to be used exclusively on a farm or in a 
454  forest for agricultural production or for fire prevention and 
455  suppression, as required by this subsection. Possession by a 
456  seller, lessor, or other dealer of a written certification by 
457  the purchaser, renter, or lessee certifying the purchaser’s, 
458  renter’s, or lessee’s entitlement to an exemption permitted by 
459  this subsection relieves the seller from the responsibility of 
460  collecting the tax on the nontaxable amounts, and the department 
461  shall look solely to the purchaser for recovery of such tax if 
462  it determines that the purchaser was not entitled to the 
463  exemption. 
464         (4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.— 
465         (a) Also exempt are: 
466         1. Water delivered to the purchaser through pipes or 
467  conduits or delivered for irrigation purposes. The sale of 
468  drinking water in bottles, cans, or other containers, including 
469  water that contains minerals or carbonation in its natural state 
470  or water to which minerals have been added at a water treatment 
471  facility regulated by the Department of Environmental Protection 
472  or the Department of Health, is exempt. This exemption does not 
473  apply to the sale of drinking water in bottles, cans, or other 
474  containers if carbonation or flavorings, except those added at a 
475  water treatment facility, have been added. Water that has been 
476  enhanced by the addition of minerals and that does not contain 
477  any added carbonation or flavorings is also exempt. 
478         2. All fuels used by a public or private utility, including 
479  any municipal corporation or rural electric cooperative 
480  association, in the generation of electric power or energy for 
481  sale. Fuel other than motor fuel and diesel fuel is taxable as 
482  provided in this chapter with the exception of fuel expressly 
483  exempt herein. Motor fuels and diesel fuels are taxable as 
484  provided in chapter 206, with the exception of those motor fuels 
485  and diesel fuels used by railroad locomotives or vessels to 
486  transport persons or property in interstate or foreign commerce, 
487  which are taxable under this chapter only to the extent provided 
488  herein. The basis of the tax shall be the ratio of intrastate 
489  mileage to interstate or foreign mileage traveled by the 
490  carrier’s railroad locomotives or vessels that were used in 
491  interstate or foreign commerce and that had at least some 
492  Florida mileage during the previous fiscal year of the carrier, 
493  such ratio to be determined at the close of the fiscal year of 
494  the carrier. However, during the fiscal year in which the 
495  carrier begins its initial operations in this state, the 
496  carrier’s mileage apportionment factor may be determined on the 
497  basis of an estimated ratio of anticipated miles in this state 
498  to anticipated total miles for that year, and subsequently, 
499  additional tax shall be paid on the motor fuel and diesel fuels, 
500  or a refund may be applied for, on the basis of the actual ratio 
501  of the carrier’s railroad locomotives’ or vessels’ miles in this 
502  state to its total miles for that year. This ratio shall be 
503  applied each month to the total Florida purchases made in this 
504  state of motor and diesel fuels to establish that portion of the 
505  total used and consumed in intrastate movement and subject to 
506  tax under this chapter. The basis for imposition of any 
507  discretionary surtax shall be set forth in s. 212.054. Fuels 
508  used exclusively in intrastate commerce do not qualify for the 
509  proration of tax. 
510         3. The transmission or wheeling of electricity. 
511         (b) Alcoholic beverages and malt beverages are not exempt. 
512  The terms “alcoholic beverages” and “malt beverages” as used in 
513  this paragraph have the same meanings ascribed to them in ss. 
514  561.01(4) and 563.01, respectively. It is determined by the 
515  Legislature that the classification of alcoholic beverages made 
516  in this paragraph for the purpose of extending the tax imposed 
517  by this chapter is reasonable and just, and it is intended that 
518  such tax be separate from, and in addition to, any other tax 
519  imposed on alcoholic beverages. 
520         (5) EXEMPTIONS; ACCOUNT OF USE.— 
521         (a) Items in agricultural use and certain nets.—There are 
522  exempt from the tax imposed by this chapter nets designed and 
523  used exclusively by commercial fisheries; disinfectants, 
524  fertilizers, insecticides, pesticides, herbicides, fungicides, 
525  and weed killers used for application on crops or groves, 
526  including commercial nurseries and home vegetable gardens, used 
527  in dairy barns or on poultry farms for the purpose of protecting 
528  poultry or livestock, or used directly on poultry or livestock; 
529  portable containers or movable receptacles in which portable 
530  containers are placed, used for processing farm products; field 
531  and garden seeds, including flower seeds; nursery stock, 
532  seedlings, cuttings, or other propagative material purchased for 
533  growing stock; seeds, seedlings, cuttings, and plants used to 
534  produce food for human consumption; cloth, plastic, and other 
535  similar materials used for shade, mulch, or protection from 
536  frost or insects on a farm; generators used on poultry farms; 
537  and liquefied petroleum gas or other fuel used to heat a 
538  structure in which started pullets or broilers are raised; 
539  however, such exemption shall not be allowed unless the 
540  purchaser or lessee signs a certificate stating that the item to 
541  be exempted is for the exclusive use designated herein. Also 
542  exempt are cellophane wrappers, glue for tin and glass 
543  (apiarists), mailing cases for honey, shipping cases, window 
544  cartons, and baling wire and twine used for baling hay, when 
545  used by a farmer to contain, produce, or process an agricultural 
546  commodity. 
547         (b) Machinery and equipment used to increase productive 
548  output.— 
549         1. Industrial machinery and equipment purchased for 
550  exclusive use by a new business in spaceport activities as 
551  defined by s. 212.02 or for use in new businesses which 
552  manufacture, process, compound, or produce for sale items of 
553  tangible personal property at fixed locations are exempt from 
554  the tax imposed by this chapter upon an affirmative showing by 
555  the taxpayer to the satisfaction of the department that such 
556  items are used in a new business in this state. Such purchases 
557  must be made prior to the date the business first begins its 
558  productive operations, and delivery of the purchased item must 
559  be made within 12 months of that date. 
560         2. Industrial machinery and equipment purchased for 
561  exclusive use by an expanding facility which is engaged in 
562  spaceport activities as defined by s. 212.02 or for use in 
563  expanding manufacturing facilities or plant units which 
564  manufacture, process, compound, or produce for sale items of 
565  tangible personal property at fixed locations in this state are 
566  exempt from any amount of tax imposed by this chapter upon an 
567  affirmative showing by the taxpayer to the satisfaction of the 
568  department that such items are used to increase the productive 
569  output of such expanded facility or business by not less than 10 
570  percent. 
571         3.a. To receive an exemption provided by subparagraph 1. or 
572  subparagraph 2., a qualifying business entity shall apply to the 
573  department for a temporary tax exemption permit. The application 
574  shall state that a new business exemption or expanded business 
575  exemption is being sought. Upon a tentative affirmative 
576  determination by the department pursuant to subparagraph 1. or 
577  subparagraph 2., the department shall issue such permit. 
578         b. The applicant shall be required to maintain all 
579  necessary books and records to support the exemption. Upon 
580  completion of purchases of qualified machinery and equipment 
581  pursuant to subparagraph 1. or subparagraph 2., the temporary 
582  tax permit shall be delivered to the department or returned to 
583  the department by certified or registered mail. 
584         c. If, in a subsequent audit conducted by the department, 
585  it is determined that the machinery and equipment purchased as 
586  exempt under subparagraph 1. or subparagraph 2. did not meet the 
587  criteria mandated by this paragraph or if commencement of 
588  production did not occur, the amount of taxes exempted at the 
589  time of purchase shall immediately be due and payable to the 
590  department by the business entity, together with the appropriate 
591  interest and penalty, computed from the date of purchase, in the 
592  manner prescribed by this chapter. 
593         d. In the event a qualifying business entity fails to apply 
594  for a temporary exemption permit or if the tentative 
595  determination by the department required to obtain a temporary 
596  exemption permit is negative, a qualifying business entity shall 
597  receive the exemption provided in subparagraph 1. or 
598  subparagraph 2. through a refund of previously paid taxes. No 
599  refund may be made for such taxes unless the criteria mandated 
600  by subparagraph 1. or subparagraph 2. have been met and 
601  commencement of production has occurred. 
602         4. The department shall adopt rules governing applications 
603  for, issuance of, and the form of temporary tax exemption 
604  permits; provisions for recapture of taxes; and the manner and 
605  form of refund applications and may establish guidelines as to 
606  the requisites for an affirmative showing of increased 
607  productive output, commencement of production, and qualification 
608  for exemption. 
609         5. The exemptions provided in subparagraphs 1. and 2. do 
610  not apply to machinery or equipment purchased or used by 
611  electric utility companies, communications companies, oil or gas 
612  exploration or production operations, publishing firms that do 
613  not export at least 50 percent of their finished product out of 
614  the state, any firm subject to regulation by the Division of 
615  Hotels and Restaurants of the Department of Business and 
616  Professional Regulation, or any firm which does not manufacture, 
617  process, compound, or produce for sale items of tangible 
618  personal property or which does not use such machinery and 
619  equipment in spaceport activities as required by this paragraph. 
620  The exemptions provided in subparagraphs 1. and 2. shall apply 
621  to machinery and equipment purchased for use in phosphate or 
622  other solid minerals severance, mining, or processing 
623  operations. 
624         6. For the purposes of the exemptions provided in 
625  subparagraphs 1. and 2., these terms have the following 
626  meanings: 
627         a. “Industrial machinery and equipment” means tangible 
628  personal property or other property that has a depreciable life 
629  of 3 years or more and that is used as an integral part in the 
630  manufacturing, processing, compounding, or production of 
631  tangible personal property for sale or is exclusively used in 
632  spaceport activities. A building and its structural components 
633  are not industrial machinery and equipment unless the building 
634  or structural component is so closely related to the industrial 
635  machinery and equipment that it houses or supports that the 
636  building or structural component can be expected to be replaced 
637  when the machinery and equipment are replaced. Heating and air 
638  conditioning systems are not industrial machinery and equipment 
639  unless the sole justification for their installation is to meet 
640  the requirements of the production process, even though the 
641  system may provide incidental comfort to employees or serve, to 
642  an insubstantial degree, nonproduction activities. The term 
643  includes parts and accessories only to the extent that the 
644  exemption thereof is consistent with the provisions of this 
645  paragraph. 
646         b. “Productive output” means the number of units actually 
647  produced by a single plant or operation in a single continuous 
648  12-month period, irrespective of sales. Increases in productive 
649  output shall be measured by the output for 12 continuous months 
650  immediately following the completion of installation of such 
651  machinery or equipment over the output for the 12 continuous 
652  months immediately preceding such installation. However, if a 
653  different 12-month continuous period of time would more 
654  accurately reflect the increase in productive output of 
655  machinery and equipment purchased to facilitate an expansion, 
656  the increase in productive output may be measured during that 
657  12-month continuous period of time if such time period is 
658  mutually agreed upon by the Department of Revenue and the 
659  expanding business prior to the commencement of production; 
660  provided, however, in no case may such time period begin later 
661  than 2 years following the completion of installation of the new 
662  machinery and equipment. The units used to measure productive 
663  output shall be physically comparable between the two periods, 
664  irrespective of sales. 
665         (c) Machinery and equipment used in production of 
666  electrical or steam energy.— 
667         1. The purchase of machinery and equipment for use at a 
668  fixed location which machinery and equipment are necessary in 
669  the production of electrical or steam energy resulting from the 
670  burning of boiler fuels other than residual oil is exempt from 
671  the tax imposed by this chapter. Such electrical or steam energy 
672  must be primarily for use in manufacturing, processing, 
673  compounding, or producing for sale items of tangible personal 
674  property in this state. Use of a de minimis amount of residual 
675  fuel to facilitate the burning of nonresidual fuel shall not 
676  reduce the exemption otherwise available under this paragraph. 
677         2. In facilities where machinery and equipment are 
678  necessary to burn both residual and nonresidual fuels, the 
679  exemption shall be prorated. Such proration shall be based upon 
680  the production of electrical or steam energy from nonresidual 
681  fuels as a percentage of electrical or steam energy from all 
682  fuels. If it is determined that 15 percent or less of all 
683  electrical or steam energy generated was produced by burning 
684  residual fuel, the full exemption shall apply. Purchasers 
685  claiming a partial exemption shall obtain such exemption by 
686  refund of taxes paid, or as otherwise provided in the 
687  department’s rules. 
688         3. The department may adopt rules that provide for 
689  implementation of this exemption. Purchasers of machinery and 
690  equipment qualifying for the exemption provided in this 
691  paragraph shall furnish the vendor with an affidavit stating 
692  that the item or items to be exempted are for the use designated 
693  herein. Any person furnishing a false affidavit to the vendor 
694  for the purpose of evading payment of any tax imposed under this 
695  chapter shall be subject to the penalty set forth in s. 212.085 
696  and as otherwise provided by law. Purchasers with self-accrual 
697  authority shall maintain all documentation necessary to prove 
698  the exempt status of purchases. 
699         (d) Machinery and equipment used under federal procurement 
700  contract.— 
701         1. Industrial machinery and equipment purchased by an 
702  expanding business which manufactures tangible personal property 
703  pursuant to federal procurement regulations at fixed locations 
704  in this state are exempt from the tax imposed in this chapter 
705  upon an affirmative showing by the taxpayer to the satisfaction 
706  of the department that such items are used to increase the 
707  implicit productive output of the expanded business by not less 
708  than 10 percent. The percentage of increase is measured as 
709  deflated implicit productive output for the calendar year during 
710  which the installation of the machinery or equipment is 
711  completed or during which commencement of production utilizing 
712  such items is begun divided by the implicit productive output 
713  for the preceding calendar year. In no case may the commencement 
714  of production begin later than 2 years following completion of 
715  installation of the machinery or equipment. 
716         2. The amount of the exemption allowed shall equal the 
717  taxes otherwise imposed by this chapter on qualifying industrial 
718  machinery or equipment reduced by the percentage of gross 
719  receipts from cost-reimbursement type contracts attributable to 
720  the plant or operation to total gross receipts so attributable, 
721  accrued for the year of completion or commencement. 
722         3. The exemption provided by this paragraph shall inure to 
723  the taxpayer only through refund of previously paid taxes. Such 
724  refund shall be made within 30 days of formal approval by the 
725  department of the taxpayer’s application, which application may 
726  be made on an annual basis following installation of the 
727  machinery or equipment. 
728         4. For the purposes of this paragraph, the term: 
729         a. “Cost-reimbursement type contracts” has the same meaning 
730  as in 32 C.F.R. s. 3-405. 
731         b. “Deflated implicit productive output” means the product 
732  of implicit productive output times the quotient of the national 
733  defense implicit price deflator for the preceding calendar year 
734  divided by the deflator for the year of completion or 
735  commencement. 
736         c. “Eligible costs” means the total direct and indirect 
737  costs, as defined in 32 C.F.R. ss. 15-202 and 15-203, excluding 
738  general and administrative costs, selling expenses, and profit, 
739  defined by the uniform cost-accounting standards adopted by the 
740  Cost-Accounting Standards Board created pursuant to 50 U.S.C. s. 
741  2168. 
742         d. “Implicit productive output” means the annual eligible 
743  costs attributable to all contracts or subcontracts subject to 
744  federal procurement regulations of the single plant or operation 
745  at which the machinery or equipment is used. 
746         e. “Industrial machinery and equipment” means tangible 
747  personal property or other property that has a depreciable life 
748  of 3 years or more, that qualifies as an eligible cost under 
749  federal procurement regulations, and that is used as an integral 
750  part of the process of production of tangible personal property. 
751  A building and its structural components are not industrial 
752  machinery and equipment unless the building or structural 
753  component is so closely related to the industrial machinery and 
754  equipment that it houses or supports that the building or 
755  structural component can be expected to be replaced when the 
756  machinery and equipment are replaced. Heating and air 
757  conditioning systems are not industrial machinery and equipment 
758  unless the sole justification for their installation is to meet 
759  the requirements of the production process, even though the 
760  system may provide incidental comfort to employees or serve, to 
761  an insubstantial degree, nonproduction activities. The term 
762  includes parts and accessories only to the extent that the 
763  exemption of such parts and accessories is consistent with the 
764  provisions of this paragraph. 
765         f. “National defense implicit price deflator” means the 
766  national defense implicit price deflator for the gross national 
767  product as determined by the Bureau of Economic Analysis of the 
768  United States Department of Commerce. 
769         5. The exclusions provided in subparagraph (b)5. apply to 
770  this exemption. This exemption applies only to machinery or 
771  equipment purchased pursuant to production contracts with the 
772  United States Department of Defense and Armed Forces, the 
773  National Aeronautics and Space Administration, and other federal 
774  agencies for which the contracts are classified for national 
775  security reasons. In no event shall the provisions of this 
776  paragraph apply to any expanding business the increase in 
777  productive output of which could be measured under the 
778  provisions of sub-subparagraph (b)6.b. as physically comparable 
779  between the two periods. 
780         (e) Gas or electricity used for certain agricultural 
781  purposes.— 
782         1. Butane gas, propane gas, natural gas, and all other 
783  forms of liquefied petroleum gases are exempt from the tax 
784  imposed by this chapter if used in any tractor, vehicle, or 
785  other farm equipment which is used exclusively on a farm or for 
786  processing farm products on the farm and no part of which gas is 
787  used in any vehicle or equipment driven or operated on the 
788  public highways of this state. This restriction does not apply 
789  to the movement of farm vehicles or farm equipment between 
790  farms. The transporting of bees by water and the operating of 
791  equipment used in the apiary of a beekeeper is also deemed an 
792  exempt use. 
793         2. Electricity used directly or indirectly for production 
794  or processing of agricultural products on the farm is exempt 
795  from the tax imposed by this chapter. This exemption applies 
796  only if the electricity used for the exempt purposes is 
797  separately metered. If the electricity is not separately 
798  metered, it is conclusively presumed that some portion of the 
799  electricity is used for a nonexempt purpose, and all of the 
800  electricity used for such purposes is taxable. 
801         (f) Motion picture or video equipment used in motion 
802  picture or television production activities and sound recording 
803  equipment used in the production of master tapes and master 
804  records.— 
805         1. Motion picture or video equipment and sound recording 
806  equipment purchased or leased for use in this state in 
807  production activities is exempt from the tax imposed by this 
808  chapter. The exemption provided by this paragraph shall inure to 
809  the taxpayer upon presentation of the certificate of exemption 
810  issued to the taxpayer under the provisions of s. 288.1258. 
811         2. For the purpose of the exemption provided in 
812  subparagraph 1.: 
813         a. “Motion picture or video equipment” and “sound recording 
814  equipment” includes only tangible personal property or other 
815  property that has a depreciable life of 3 years or more and that 
816  is used by the lessee or purchaser exclusively as an integral 
817  part of production activities; however, motion picture or video 
818  equipment and sound recording equipment does not include 
819  supplies, tape, records, film, or video tape used in productions 
820  or other similar items; vehicles or vessels; or general office 
821  equipment not specifically suited to production activities. In 
822  addition, the term does not include equipment purchased or 
823  leased by television or radio broadcasting or cable companies 
824  licensed by the Federal Communications Commission. Furthermore, 
825  a building and its structural components are not motion picture 
826  or video equipment and sound recording equipment unless the 
827  building or structural component is so closely related to the 
828  motion picture or video equipment and sound recording equipment 
829  that it houses or supports that the building or structural 
830  component can be expected to be replaced when the motion picture 
831  or video equipment and sound recording equipment are replaced. 
832  Heating and air-conditioning systems are not motion picture or 
833  video equipment and sound recording equipment unless the sole 
834  justification for their installation is to meet the requirements 
835  of the production activities, even though the system may provide 
836  incidental comfort to employees or serve, to an insubstantial 
837  degree, nonproduction activities. 
838         b. “Production activities” means activities directed toward 
839  the preparation of a: 
840         (I) Master tape or master record embodying sound; or 
841         (II) Motion picture or television production which is 
842  produced for theatrical, commercial, advertising, or educational 
843  purposes and utilizes live or animated actions or a combination 
844  of live and animated actions. The motion picture or television 
845  production shall be commercially produced for sale or for 
846  showing on screens or broadcasting on television and may be on 
847  film or video tape. 
848         (g) Building materials used in the rehabilitation of real 
849  property located in an enterprise zone.— 
850         1. Building materials used in the rehabilitation of real 
851  property located in an enterprise zone shall be exempt from the 
852  tax imposed by this chapter upon an affirmative showing to the 
853  satisfaction of the department that the items have been used for 
854  the rehabilitation of real property located in an enterprise 
855  zone. Except as provided in subparagraph 2., this exemption 
856  inures to the owner, lessee, or lessor of the rehabilitated real 
857  property located in an enterprise zone only through a refund of 
858  previously paid taxes. To receive a refund pursuant to this 
859  paragraph, the owner, lessee, or lessor of the rehabilitated 
860  real property located in an enterprise zone must file an 
861  application under oath with the governing body or enterprise 
862  zone development agency having jurisdiction over the enterprise 
863  zone where the business is located, as applicable, which 
864  includes: 
865         a. The name and address of the person claiming the refund. 
866         b. An address and assessment roll parcel number of the 
867  rehabilitated real property in an enterprise zone for which a 
868  refund of previously paid taxes is being sought. 
869         c. A description of the improvements made to accomplish the 
870  rehabilitation of the real property. 
871         d. A copy of the building permit issued for the 
872  rehabilitation of the real property. 
873         e. A sworn statement, under the penalty of perjury, from 
874  the general contractor licensed in this state with whom the 
875  applicant contracted to make the improvements necessary to 
876  accomplish the rehabilitation of the real property, which 
877  statement lists the building materials used in the 
878  rehabilitation of the real property, the actual cost of the 
879  building materials, and the amount of sales tax paid in this 
880  state on the building materials. In the event that a general 
881  contractor has not been used, the applicant shall provide this 
882  information in a sworn statement, under the penalty of perjury. 
883  Copies of the invoices which evidence the purchase of the 
884  building materials used in such rehabilitation and the payment 
885  of sales tax on the building materials shall be attached to the 
886  sworn statement provided by the general contractor or by the 
887  applicant. Unless the actual cost of building materials used in 
888  the rehabilitation of real property and the payment of sales 
889  taxes due thereon is documented by a general contractor or by 
890  the applicant in this manner, the cost of such building 
891  materials shall be an amount equal to 40 percent of the increase 
892  in assessed value for ad valorem tax purposes. 
893         f. The identifying number assigned pursuant to s. 290.0065 
894  to the enterprise zone in which the rehabilitated real property 
895  is located. 
896         g. A certification by the local building code inspector 
897  that the improvements necessary to accomplish the rehabilitation 
898  of the real property are substantially completed. 
899         h. Whether the business is a small business as defined by 
900  s. 288.703(1). 
901         i. If applicable, the name and address of each permanent 
902  employee of the business, including, for each employee who is a 
903  resident of an enterprise zone, the identifying number assigned 
904  pursuant to s. 290.0065 to the enterprise zone in which the 
905  employee resides. 
906         2. This exemption inures to a city, county, other 
907  governmental agency, or nonprofit community-based organization 
908  through a refund of previously paid taxes if the building 
909  materials used in the rehabilitation of real property located in 
910  an enterprise zone are paid for from the funds of a community 
911  development block grant, State Housing Initiatives Partnership 
912  Program, or similar grant or loan program. To receive a refund 
913  pursuant to this paragraph, a city, county, other governmental 
914  agency, or nonprofit community-based organization must file an 
915  application which includes the same information required to be 
916  provided in subparagraph 1. by an owner, lessee, or lessor of 
917  rehabilitated real property. In addition, the application must 
918  include a sworn statement signed by the chief executive officer 
919  of the city, county, other governmental agency, or nonprofit 
920  community-based organization seeking a refund which states that 
921  the building materials for which a refund is sought were paid 
922  for from the funds of a community development block grant, State 
923  Housing Initiatives Partnership Program, or similar grant or 
924  loan program. 
925         3. Within 10 working days after receipt of an application, 
926  the governing body or enterprise zone development agency shall 
927  review the application to determine if it contains all the 
928  information required pursuant to subparagraph 1. or subparagraph 
929  2. and meets the criteria set out in this paragraph. The 
930  governing body or agency shall certify all applications that 
931  contain the information required pursuant to subparagraph 1. or 
932  subparagraph 2. and meet the criteria set out in this paragraph 
933  as eligible to receive a refund. If applicable, the governing 
934  body or agency shall also certify if 20 percent of the employees 
935  of the business are residents of an enterprise zone, excluding 
936  temporary and part-time employees. The certification shall be in 
937  writing, and a copy of the certification shall be transmitted to 
938  the executive director of the Department of Revenue. The 
939  applicant shall be responsible for forwarding a certified 
940  application to the department within the time specified in 
941  subparagraph 4. 
942         4. An application for a refund pursuant to this paragraph 
943  must be submitted to the department within 6 months after the 
944  rehabilitation of the property is deemed to be substantially 
945  completed by the local building code inspector or by September 1 
946  after the rehabilitated property is first subject to assessment. 
947         5. Not more than one exemption through a refund of 
948  previously paid taxes for the rehabilitation of real property 
949  shall be permitted for any single parcel of property unless 
950  there is a change in ownership, a new lessor, or a new lessee of 
951  the real property. No refund shall be granted pursuant to this 
952  paragraph unless the amount to be refunded exceeds $500. No 
953  refund granted pursuant to this paragraph shall exceed the 
954  lesser of 97 percent of the Florida sales or use tax paid on the 
955  cost of the building materials used in the rehabilitation of the 
956  real property as determined pursuant to sub-subparagraph 1.e. or 
957  $5,000, or, if no less than 20 percent of the employees of the 
958  business are residents of an enterprise zone, excluding 
959  temporary and part-time employees, the amount of refund granted 
960  pursuant to this paragraph shall not exceed the lesser of 97 
961  percent of the sales tax paid on the cost of such building 
962  materials or $10,000. A refund approved pursuant to this 
963  paragraph shall be made within 30 days of formal approval by the 
964  department of the application for the refund. This subparagraph 
965  shall apply retroactively to July 1, 2005. 
966         6. The department shall adopt rules governing the manner 
967  and form of refund applications and may establish guidelines as 
968  to the requisites for an affirmative showing of qualification 
969  for exemption under this paragraph. 
970         7. The department shall deduct an amount equal to 10 
971  percent of each refund granted under the provisions of this 
972  paragraph from the amount transferred into the Local Government 
973  Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 
974  for the county area in which the rehabilitated real property is 
975  located and shall transfer that amount to the General Revenue 
976  Fund. 
977         8. For the purposes of the exemption provided in this 
978  paragraph: 
979         a. “Building materials” means tangible personal property 
980  which becomes a component part of improvements to real property. 
981         b. “Real property” has the same meaning as provided in s. 
982  192.001(12). 
983         c. “Rehabilitation of real property” means the 
984  reconstruction, renovation, restoration, rehabilitation, 
985  construction, or expansion of improvements to real property. 
986         d. “Substantially completed” has the same meaning as 
987  provided in s. 192.042(1). 
988         9. This paragraph expires on the date specified in s. 
989  290.016 for the expiration of the Florida Enterprise Zone Act. 
990         (h) Business property used in an enterprise zone.— 
991         1. Business property purchased for use by businesses 
992  located in an enterprise zone which is subsequently used in an 
993  enterprise zone shall be exempt from the tax imposed by this 
994  chapter. This exemption inures to the business only through a 
995  refund of previously paid taxes. A refund shall be authorized 
996  upon an affirmative showing by the taxpayer to the satisfaction 
997  of the department that the requirements of this paragraph have 
998  been met. 
999         2. To receive a refund, the business must file under oath 
1000  with the governing body or enterprise zone development agency 
1001  having jurisdiction over the enterprise zone where the business 
1002  is located, as applicable, an application which includes: 
1003         a. The name and address of the business claiming the 
1004  refund. 
1005         b. The identifying number assigned pursuant to s. 290.0065 
1006  to the enterprise zone in which the business is located. 
1007         c. A specific description of the property for which a 
1008  refund is sought, including its serial number or other permanent 
1009  identification number. 
1010         d. The location of the property. 
1011         e. The sales invoice or other proof of purchase of the 
1012  property, showing the amount of sales tax paid, the date of 
1013  purchase, and the name and address of the sales tax dealer from 
1014  whom the property was purchased. 
1015         f. Whether the business is a small business as defined by 
1016  s. 288.703(1). 
1017         g. If applicable, the name and address of each permanent 
1018  employee of the business, including, for each employee who is a 
1019  resident of an enterprise zone, the identifying number assigned 
1020  pursuant to s. 290.0065 to the enterprise zone in which the 
1021  employee resides. 
1022         3. Within 10 working days after receipt of an application, 
1023  the governing body or enterprise zone development agency shall 
1024  review the application to determine if it contains all the 
1025  information required pursuant to subparagraph 2. and meets the 
1026  criteria set out in this paragraph. The governing body or agency 
1027  shall certify all applications that contain the information 
1028  required pursuant to subparagraph 2. and meet the criteria set 
1029  out in this paragraph as eligible to receive a refund. If 
1030  applicable, the governing body or agency shall also certify if 
1031  20 percent of the employees of the business are residents of an 
1032  enterprise zone, excluding temporary and part-time employees. 
1033  The certification shall be in writing, and a copy of the 
1034  certification shall be transmitted to the executive director of 
1035  the Department of Revenue. The business shall be responsible for 
1036  forwarding a certified application to the department within the 
1037  time specified in subparagraph 4. 
1038         4. An application for a refund pursuant to this paragraph 
1039  must be submitted to the department within 6 months after the 
1040  tax is due on the business property that is purchased. 
1041         5. The amount refunded on purchases of business property 
1042  under this paragraph shall be the lesser of 97 percent of the 
1043  sales tax paid on such business property or $5,000, or, if no 
1044  less than 20 percent of the employees of the business are 
1045  residents of an enterprise zone, excluding temporary and part 
1046  time employees, the amount refunded on purchases of business 
1047  property under this paragraph shall be the lesser of 97 percent 
1048  of the sales tax paid on such business property or $10,000. A 
1049  refund approved pursuant to this paragraph shall be made within 
1050  30 days of formal approval by the department of the application 
1051  for the refund. No refund shall be granted under this paragraph 
1052  unless the amount to be refunded exceeds $100 in sales tax paid 
1053  on purchases made within a 60-day time period. 
1054         6. The department shall adopt rules governing the manner 
1055  and form of refund applications and may establish guidelines as 
1056  to the requisites for an affirmative showing of qualification 
1057  for exemption under this paragraph. 
1058         7. If the department determines that the business property 
1059  is used outside an enterprise zone within 3 years from the date 
1060  of purchase, the amount of taxes refunded to the business 
1061  purchasing such business property shall immediately be due and 
1062  payable to the department by the business, together with the 
1063  appropriate interest and penalty, computed from the date of 
1064  purchase, in the manner provided by this chapter. 
1065  Notwithstanding this subparagraph, business property used 
1066  exclusively in: 
1067         a. Licensed commercial fishing vessels, 
1068         b. Fishing guide boats, or 
1069         c. Ecotourism guide boats 
1070 
1071  that leave and return to a fixed location within an area 
1072  designated under s. 379.2353 are eligible for the exemption 
1073  provided under this paragraph if all requirements of this 
1074  paragraph are met. Such vessels and boats must be owned by a 
1075  business that is eligible to receive the exemption provided 
1076  under this paragraph. This exemption does not apply to the 
1077  purchase of a vessel or boat. 
1078         8. The department shall deduct an amount equal to 10 
1079  percent of each refund granted under the provisions of this 
1080  paragraph from the amount transferred into the Local Government 
1081  Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20 
1082  for the county area in which the business property is located 
1083  and shall transfer that amount to the General Revenue Fund. 
1084         9. For the purposes of this exemption, “business property” 
1085  means new or used property defined as “recovery property” in s. 
1086  168(c) of the Internal Revenue Code of 1954, as amended, except: 
1087         a. Property classified as 3-year property under s. 
1088  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended; 
1089         b. Industrial machinery and equipment as defined in sub 
1090  subparagraph (b)6.a. and eligible for exemption under paragraph 
1091  (b); 
1092         c. Building materials as defined in sub-subparagraph 
1093  (g)8.a.; and 
1094         d. Business property having a sales price of under $5,000 
1095  per unit. 
1096         10. This paragraph expires on the date specified in s. 
1097  290.016 for the expiration of the Florida Enterprise Zone Act. 
1098         (i) Aircraft modification services.—There shall be exempt 
1099  from the tax imposed by this chapter all charges for aircraft 
1100  modification services, including parts and equipment furnished 
1101  or installed in connection therewith, performed under authority 
1102  of a supplemental type certificate issued by the Federal 
1103  Aviation Administration. 
1104         (j) Machinery and equipment used in semiconductor, defense, 
1105  or space technology production.— 
1106         1.a. Industrial machinery and equipment used in 
1107  semiconductor technology facilities certified under subparagraph 
1108  5. to manufacture, process, compound, or produce semiconductor 
1109  technology products for sale or for use by these facilities are 
1110  exempt from the tax imposed by this chapter. For purposes of 
1111  this paragraph, industrial machinery and equipment includes 
1112  molds, dies, machine tooling, other appurtenances or accessories 
1113  to machinery and equipment, testing equipment, test beds, 
1114  computers, and software, whether purchased or self-fabricated, 
1115  and, if self-fabricated, includes materials and labor for 
1116  design, fabrication, and assembly. 
1117         b. Industrial machinery and equipment used in defense or 
1118  space technology facilities certified under subparagraph 5. to 
1119  design, manufacture, assemble, process, compound, or produce 
1120  defense technology products or space technology products for 
1121  sale or for use by these facilities are exempt from the tax 
1122  imposed by this chapter. 
1123         2. Building materials purchased for use in manufacturing or 
1124  expanding clean rooms in semiconductor-manufacturing facilities 
1125  are exempt from the tax imposed by this chapter. 
1126         3. In addition to meeting the criteria mandated by 
1127  subparagraph 1. or subparagraph 2., a business must be certified 
1128  by the Office of Tourism, Trade, and Economic Development as 
1129  authorized in this paragraph in order to qualify for exemption 
1130  under this paragraph. 
1131         4. For items purchased tax-exempt pursuant to this 
1132  paragraph, possession of a written certification from the 
1133  purchaser, certifying the purchaser’s entitlement to exemption 
1134  pursuant to this paragraph, relieves the seller of the 
1135  responsibility of collecting the tax on the sale of such items, 
1136  and the department shall look solely to the purchaser for 
1137  recovery of tax if it determines that the purchaser was not 
1138  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 apply initially to Enterprise Florida, Inc. The original 
1142  certification shall be 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 Office of Tourism, 
1145  Trade, and Economic Development a statement, certified under 
1146  oath, that there has been no material change in the conditions 
1147  or circumstances entitling the business entity to the original 
1148  certification. The initial application and the certification 
1149  renewal statement shall be developed by the Office of Tourism, 
1150  Trade, and Economic Development in consultation with Enterprise 
1151  Florida, Inc. 
1152         b. Enterprise Florida, Inc., shall review each submitted 
1153  initial application and information and determine whether or not 
1154  the application is complete within 5 working days. Once an 
1155  application is complete, Enterprise Florida, Inc., shall, within 
1156  10 working days, evaluate the application and recommend approval 
1157  or disapproval of the application to the Office of Tourism, 
1158  Trade, and Economic Development. 
1159         c. Upon receipt of the initial application and 
1160  recommendation from Enterprise Florida, Inc., or upon receipt of 
1161  a certification renewal statement, the Office of Tourism, Trade, 
1162  and Economic Development shall certify within 5 working days 
1163  those applicants who are found to meet the requirements of this 
1164  section and notify the applicant, Enterprise Florida, Inc., and 
1165  the department of the original certification or certification 
1166  renewal. If the Office of Tourism, Trade, and Economic 
1167  Development finds that the applicant does not meet the 
1168  requirements of this section, it shall notify the applicant and 
1169  Enterprise Florida, Inc., within 10 working days that the 
1170  application for certification has been denied and the reasons 
1171  for denial. The Office of Tourism, Trade, and Economic 
1172  Development has final approval authority for certification under 
1173  this section. 
1174         d. The initial application and certification renewal 
1175  statement must indicate, for program evaluation purposes only, 
1176  the average number of full-time equivalent employees at the 
1177  facility over the preceding calendar year, the average wage and 
1178  benefits paid to those employees over the preceding calendar 
1179  year, the total investment made in real and tangible personal 
1180  property over the preceding calendar year, and the total value 
1181  of tax-exempt purchases and taxes exempted during the previous 
1182  year. The department shall assist the Office of Tourism, Trade, 
1183  and Economic Development in evaluating and verifying information 
1184  provided in the application for exemption. 
1185         e. The Office of Tourism, Trade, and Economic Development 
1186  may use the information reported on the initial application and 
1187  certification renewal statement for evaluation purposes only and 
1188  shall prepare an annual report on the exemption program and its 
1189  cost and impact. The annual report for the preceding fiscal year 
1190  shall be submitted to the Governor, the President of the Senate, 
1191  and the Speaker of the House of Representatives by September 30 
1192  of each fiscal year. 
1193         6. A business certified to receive this exemption may elect 
1194  to designate one or more state universities or community 
1195  colleges as recipients of up to 100 percent of the amount of the 
1196  exemption for which they may qualify. To receive these funds, 
1197  the institution must agree to match the funds so earned with 
1198  equivalent cash, programs, services, or other in-kind support on 
1199  a one-to-one basis in the pursuit of research and development 
1200  projects as requested by the certified business. The rights to 
1201  any patents, royalties, or real or intellectual property must be 
1202  vested in the business unless otherwise agreed to by the 
1203  business and the university or community college. 
1204         7. As used in this paragraph, the term: 
1205         a. “Semiconductor technology products” means raw 
1206  semiconductor wafers or semiconductor thin films that are 
1207  transformed into semiconductor memory or logic wafers, including 
1208  wafers containing mixed memory and logic circuits; related 
1209  assembly and test operations; active-matrix flat panel displays; 
1210  semiconductor chips; semiconductor lasers; optoelectronic 
1211  elements; and related semiconductor technology products as 
1212  determined by the Office of Tourism, Trade, and Economic 
1213  Development. 
1214         b. “Clean rooms” means manufacturing facilities enclosed in 
1215  a manner that meets the clean manufacturing requirements 
1216  necessary for high-technology semiconductor-manufacturing 
1217  environments. 
1218         c. “Defense technology products” means products that have a 
1219  military application, including, but not limited to, weapons, 
1220  weapons systems, guidance systems, surveillance systems, 
1221  communications or information systems, munitions, aircraft, 
1222  vessels, or boats, or components thereof, which are intended for 
1223  military use and manufactured in performance of a contract with 
1224  the United States Department of Defense or the military branch 
1225  of a recognized foreign government or a subcontract thereunder 
1226  which relates to matters of national defense. 
1227         d. “Space technology products” means products that are 
1228  specifically designed or manufactured for application in space 
1229  activities, including, but not limited to, space launch 
1230  vehicles, space flight vehicles, missiles, satellites or 
1231  research payloads, avionics, and associated control systems and 
1232  processing systems and components of any of the foregoing. The 
1233  term does not include products that are designed or manufactured 
1234  for general commercial aviation or other uses even though those 
1235  products may also serve an incidental use in space applications. 
1236         (k) Samples.—Paint color card samples, flooring and wall 
1237  samples, fabric swatch samples, window covering samples, and 
1238  similar samples, when such samples serve no useful purpose other 
1239  than as a comparison of color, texture, or design; are provided 
1240  by the manufacturer to a dealer or ultimate consumer for no 
1241  charge; and are given away by the dealer to the ultimate 
1242  consumer for no charge, are exempt. 
1243         (l) Growth enhancers or performance enhancers for cattle. 
1244  There is exempt from the tax imposed by this chapter the sale of 
1245  performance-enhancing or growth-enhancing products for cattle. 
1246         (m) Educational materials purchased by certain child care 
1247  facilities.—Educational materials, such as glue, paper, paints, 
1248  crayons, unique craft items, scissors, books, and educational 
1249  toys, purchased by a child care facility that meets the 
1250  standards delineated in s. 402.305, is licensed under s. 
1251  402.308, holds a current Gold Seal Quality Care designation 
1252  pursuant to s. 402.281, and provides basic health insurance to 
1253  all employees are exempt from the taxes imposed by this chapter. 
1254  For purposes of this paragraph, the term “basic health 
1255  insurance” shall be defined and promulgated in rules developed 
1256  jointly by the Department of Children and Family Services, the 
1257  Agency for Health Care Administration, and the Financial 
1258  Services Commission. 
1259         (n) Materials for construction of single-family homes in 
1260  certain areas.— 
1261         1. As used in this paragraph, the term: 
1262         a. “Building materials” means tangible personal property 
1263  that becomes a component part of a qualified home. 
1264         b. “Qualified home” means a single-family home having an 
1265  appraised value of no more than $160,000 which is located in an 
1266  enterprise zone, empowerment zone, or Front Porch Florida 
1267  Community and which is constructed and occupied by the owner 
1268  thereof for residential purposes. 
1269         c. “Substantially completed” has the same meaning as 
1270  provided in s. 192.042(1). 
1271         2. Building materials used in the construction of a 
1272  qualified home and the costs of labor associated with the 
1273  construction of a qualified home are exempt from the tax imposed 
1274  by this chapter upon an affirmative showing to the satisfaction 
1275  of the department that the requirements of this paragraph have 
1276  been met. This exemption inures to the owner through a refund of 
1277  previously paid taxes. To receive this refund, the owner must 
1278  file an application under oath with the department which 
1279  includes: 
1280         a. The name and address of the owner. 
1281         b. The address and assessment roll parcel number of the 
1282  home for which a refund is sought. 
1283         c. A copy of the building permit issued for the home. 
1284         d. A certification by the local building code inspector 
1285  that the home is substantially completed. 
1286         e. A sworn statement, under penalty of perjury, from the 
1287  general contractor licensed in this state with whom the owner 
1288  contracted to construct the home, which statement lists the 
1289  building materials used in the construction of the home and the 
1290  actual cost thereof, the labor costs associated with such 
1291  construction, and the amount of sales tax paid on these 
1292  materials and labor costs. If a general contractor was not used, 
1293  the owner shall provide this information in a sworn statement, 
1294  under penalty of perjury. Copies of invoices evidencing payment 
1295  of sales tax must be attached to the sworn statement. 
1296         f. A sworn statement, under penalty of perjury, from the 
1297  owner affirming that he or she is occupying the home for 
1298  residential purposes. 
1299         3. An application for a refund under this paragraph must be 
1300  submitted to the department within 6 months after the date the 
1301  home is deemed to be substantially completed by the local 
1302  building code inspector. Within 30 working days after receipt of 
1303  the application, the department shall determine if it meets the 
1304  requirements of this paragraph. A refund approved pursuant to 
1305  this paragraph shall be made within 30 days after formal 
1306  approval of the application by the department. 
1307         4. The department shall establish by rule an application 
1308  form and criteria for establishing eligibility for exemption 
1309  under this paragraph. 
1310         5. The exemption shall apply to purchases of materials on 
1311  or after July 1, 2000. 
1312         (o) Building materials in redevelopment projects.— 
1313         1. As used in this paragraph, the term: 
1314         a. “Building materials” means tangible personal property 
1315  that becomes a component part of a housing project or a mixed 
1316  use project. 
1317         b. “Housing project” means the conversion of an existing 
1318  manufacturing or industrial building to housing units in an 
1319  urban high-crime area, enterprise zone, empowerment zone, Front 
1320  Porch Community, designated brownfield area, or urban infill 
1321  area and in which the developer agrees to set aside at least 20 
1322  percent of the housing units in the project for low-income and 
1323  moderate-income persons or the construction in a designated 
1324  brownfield area of affordable housing for persons described in 
1325  s. 420.0004(8), (10), (11), or (15) or in s. 159.603(7). 
1326         c. “Mixed-use project” means the conversion of an existing 
1327  manufacturing or industrial building to mixed-use units that 
1328  include artists’ studios, art and entertainment services, or 
1329  other compatible uses. A mixed-use project must be located in an 
1330  urban high-crime area, enterprise zone, empowerment zone, Front 
1331  Porch Community, designated brownfield area, or urban infill 
1332  area, and the developer must agree to set aside at least 20 
1333  percent of the square footage of the project for low-income and 
1334  moderate-income housing. 
1335         d. “Substantially completed” has the same meaning as 
1336  provided in s. 192.042(1). 
1337         2. Building materials used in the construction of a housing 
1338  project or mixed-use project are exempt from the tax imposed by 
1339  this chapter upon an affirmative showing to the satisfaction of 
1340  the department that the requirements of this paragraph have been 
1341  met. This exemption inures to the owner through a refund of 
1342  previously paid taxes. To receive this refund, the owner must 
1343  file an application under oath with the department which 
1344  includes: 
1345         a. The name and address of the owner. 
1346         b. The address and assessment roll parcel number of the 
1347  project for which a refund is sought. 
1348         c. A copy of the building permit issued for the project. 
1349         d. A certification by the local building code inspector 
1350  that the project is substantially completed. 
1351         e. A sworn statement, under penalty of perjury, from the 
1352  general contractor licensed in this state with whom the owner 
1353  contracted to construct the project, which statement lists the 
1354  building materials used in the construction of the project and 
1355  the actual cost thereof, and the amount of sales tax paid on 
1356  these materials. If a general contractor was not used, the owner 
1357  shall provide this information in a sworn statement, under 
1358  penalty of perjury. Copies of invoices evidencing payment of 
1359  sales tax must be attached to the sworn statement. 
1360         3. An application for a refund under this paragraph must be 
1361  submitted to the department within 6 months after the date the 
1362  project is deemed to be substantially completed by the local 
1363  building code inspector. Within 30 working days after receipt of 
1364  the application, the department shall determine if it meets the 
1365  requirements of this paragraph. A refund approved pursuant to 
1366  this paragraph shall be made within 30 days after formal 
1367  approval of the application by the department. 
1368         4. The department shall establish by rule an application 
1369  form and criteria for establishing eligibility for exemption 
1370  under this paragraph. 
1371         5. The exemption shall apply to purchases of materials on 
1372  or after July 1, 2000. 
1373         (p) Community contribution tax credit for donations.— 
1374         1. Authorization.—Persons who are registered with the 
1375  department under s. 212.18 to collect or remit sales or use tax 
1376  and who make donations to eligible sponsors are eligible for tax 
1377  credits against their state sales and use tax liabilities as 
1378  provided in this paragraph: 
1379         a. The credit shall be computed as 50 percent of the 
1380  person’s approved annual community contribution. 
1381         b. The credit shall be granted as a refund against state 
1382  sales and use taxes reported on returns and remitted in the 12 
1383  months preceding the date of application to the department for 
1384  the credit as required in sub-subparagraph 3.c. If the annual 
1385  credit is not fully used through such refund because of 
1386  insufficient tax payments during the applicable 12-month period, 
1387  the unused amount may be included in an application for a refund 
1388  made pursuant to sub-subparagraph 3.c. in subsequent years 
1389  against the total tax payments made for such year. Carryover 
1390  credits may be applied for a 3-year period without regard to any 
1391  time limitation that would otherwise apply under s. 215.26. 
1392         c. A person may not receive more than $200,000 in annual 
1393  tax credits for all approved community contributions made in any 
1394  one year. 
1395         d. All proposals for the granting of the tax credit require 
1396  the prior approval of the Office of Tourism, Trade, and Economic 
1397  Development. 
1398         e. The total amount of tax credits which may be granted for 
1399  all programs approved under this paragraph, s. 220.183, and s. 
1400  624.5105 is $10.5 million annually for projects that provide 
1401  homeownership opportunities for low-income or very-low-income 
1402  households as defined in s. 420.9071(19) and (28) and $3.5 
1403  million annually for all other projects. 
1404         f. A person who is eligible to receive the credit provided 
1405  for in this paragraph, s. 220.183, or s. 624.5105 may receive 
1406  the credit only under the one section of the person’s choice. 
1407         2. Eligibility requirements.— 
1408         a. A community contribution by a person must be in the 
1409  following form: 
1410         (I) Cash or other liquid assets; 
1411         (II) Real property; 
1412         (III) Goods or inventory; or 
1413         (IV) Other physical resources as identified by the Office 
1414  of Tourism, Trade, and Economic Development. 
1415         b. All community contributions must be reserved exclusively 
1416  for use in a project. As used in this sub-subparagraph, the term 
1417  “project” means any activity undertaken by an eligible sponsor 
1418  which is designed to construct, improve, or substantially 
1419  rehabilitate housing that is affordable to low-income or very 
1420  low-income households as defined in s. 420.9071(19) and (28); 
1421  designed to provide commercial, industrial, or public resources 
1422  and facilities; or designed to improve entrepreneurial and job 
1423  development opportunities for low-income persons. A project may 
1424  be the investment necessary to increase access to high-speed 
1425  broadband capability in rural communities with enterprise zones, 
1426  including projects that result in improvements to communications 
1427  assets that are owned by a business. A project may include the 
1428  provision of museum educational programs and materials that are 
1429  directly related to any project approved between January 1, 
1430  1996, and December 31, 1999, and located in an enterprise zone 
1431  designated pursuant to s. 290.0065. This paragraph does not 
1432  preclude projects that propose to construct or rehabilitate 
1433  housing for low-income or very-low-income households on 
1434  scattered sites. With respect to housing, contributions may be 
1435  used to pay the following eligible low-income and very-low 
1436  income housing-related activities: 
1437         (I) Project development impact and management fees for low 
1438  income or very-low-income housing projects; 
1439         (II) Down payment and closing costs for eligible persons, 
1440  as defined in s. 420.9071(19) and (28); 
1441         (III) Administrative costs, including housing counseling 
1442  and marketing fees, not to exceed 10 percent of the community 
1443  contribution, directly related to low-income or very-low-income 
1444  projects; and 
1445         (IV) Removal of liens recorded against residential property 
1446  by municipal, county, or special district local governments when 
1447  satisfaction of the lien is a necessary precedent to the 
1448  transfer of the property to an eligible person, as defined in s. 
1449  420.9071(19) and (28), for the purpose of promoting home 
1450  ownership. Contributions for lien removal must be received from 
1451  a nonrelated third party. 
1452         c. The project must be undertaken by an “eligible sponsor,” 
1453  which includes: 
1454         (I) A community action program; 
1455         (II) A nonprofit community-based development organization 
1456  whose mission is the provision of housing for low-income or 
1457  very-low-income households or increasing entrepreneurial and 
1458  job-development opportunities for low-income persons; 
1459         (III) A neighborhood housing services corporation; 
1460         (IV) A local housing authority created under chapter 421; 
1461         (V) A community redevelopment agency created under s. 
1462  163.356; 
1463         (VI) The Florida Industrial Development Corporation; 
1464         (VII) A historic preservation district agency or 
1465  organization; 
1466         (VIII) A regional workforce board; 
1467         (IX) A direct-support organization as provided in s. 
1468  1009.983; 
1469         (X) An enterprise zone development agency created under s. 
1470  290.0056; 
1471         (XI) A community-based organization incorporated under 
1472  chapter 617 which is recognized as educational, charitable, or 
1473  scientific pursuant to s. 501(c)(3) of the Internal Revenue Code 
1474  and whose bylaws and articles of incorporation include 
1475  affordable housing, economic development, or community 
1476  development as the primary mission of the corporation; 
1477         (XII) Units of local government; 
1478         (XIII) Units of state government; or 
1479         (XIV) Any other agency that the Office of Tourism, Trade, 
1480  and Economic Development designates by rule. 
1481 
1482  In no event may a contributing person have a financial interest 
1483  in the eligible sponsor. 
1484         d. The project must be located in an area designated an 
1485  enterprise zone or a Front Porch Florida Community pursuant to 
1486  s. 20.18(6), unless the project increases access to high-speed 
1487  broadband capability for rural communities with enterprise zones 
1488  but is physically located outside the designated rural zone 
1489  boundaries. Any project designed to construct or rehabilitate 
1490  housing for low-income or very-low-income households as defined 
1491  in s. 420.9071(19) and (28) is exempt from the area requirement 
1492  of this sub-subparagraph. 
1493         e.(I) If, during the first 10 business days of the state 
1494  fiscal year, eligible tax credit applications for projects that 
1495  provide homeownership opportunities for low-income or very-low 
1496  income households as defined in s. 420.9071(19) and (28) are 
1497  received for less than the annual tax credits available for 
1498  those projects, the Office of Tourism, Trade, and Economic 
1499  Development shall grant tax credits for those applications and 
1500  shall grant remaining tax credits on a first-come, first-served 
1501  basis for any subsequent eligible applications received before 
1502  the end of the state fiscal year. If, during the first 10 
1503  business days of the state fiscal year, eligible tax credit 
1504  applications for projects that provide homeownership 
1505  opportunities for low-income or very-low-income households as 
1506  defined in s. 420.9071(19) and (28) are received for more than 
1507  the annual tax credits available for those projects, the office 
1508  shall grant the tax credits for those applications as follows: 
1509         (A) If tax credit applications submitted for approved 
1510  projects of an eligible sponsor do not exceed $200,000 in total, 
1511  the credits shall be granted in full if the tax credit 
1512  applications are approved. 
1513         (B) If tax credit applications submitted for approved 
1514  projects of an eligible sponsor exceed $200,000 in total, the 
1515  amount of tax credits granted pursuant to sub-sub-sub 
1516  subparagraph (A) shall be subtracted from the amount of 
1517  available tax credits, and the remaining credits shall be 
1518  granted to each approved tax credit application on a pro rata 
1519  basis. 
1520         (II) If, during the first 10 business days of the state 
1521  fiscal year, eligible tax credit applications for projects other 
1522  than those that provide homeownership opportunities for low 
1523  income or very-low-income households as defined in s. 
1524  420.9071(19) and (28) are received for less than the annual tax 
1525  credits available for those projects, the office shall grant tax 
1526  credits for those applications and shall grant remaining tax 
1527  credits on a first-come, first-served basis for any subsequent 
1528  eligible applications received before the end of the state 
1529  fiscal year. If, during the first 10 business days of the state 
1530  fiscal year, eligible tax credit applications for projects other 
1531  than those that provide homeownership opportunities for low 
1532  income or very-low-income households as defined in s. 
1533  420.9071(19) and (28) are received for more than the annual tax 
1534  credits available for those projects, the office shall grant the 
1535  tax credits for those applications on a pro rata basis. 
1536         3. Application requirements.— 
1537         a. Any eligible sponsor seeking to participate in this 
1538  program must submit a proposal to the Office of Tourism, Trade, 
1539  and Economic Development which sets forth the name of the 
1540  sponsor, a description of the project, and the area in which the 
1541  project is located, together with such supporting information as 
1542  is prescribed by rule. The proposal must also contain a 
1543  resolution from the local governmental unit in which the project 
1544  is located certifying that the project is consistent with local 
1545  plans and regulations. 
1546         b. Any person seeking to participate in this program must 
1547  submit an application for tax credit to the office which sets 
1548  forth the name of the sponsor, a description of the project, and 
1549  the type, value, and purpose of the contribution. The sponsor 
1550  shall verify the terms of the application and indicate its 
1551  receipt of the contribution, which verification must be in 
1552  writing and accompany the application for tax credit. The person 
1553  must submit a separate tax credit application to the office for 
1554  each individual contribution that it makes to each individual 
1555  project. 
1556         c. Any person who has received notification from the office 
1557  that a tax credit has been approved must apply to the department 
1558  to receive the refund. Application must be made on the form 
1559  prescribed for claiming refunds of sales and use taxes and be 
1560  accompanied by a copy of the notification. A person may submit 
1561  only one application for refund to the department within any 12 
1562  month period. 
1563         4. Administration.— 
1564         a. The Office of Tourism, Trade, and Economic Development 
1565  may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary 
1566  to administer this paragraph, including rules for the approval 
1567  or disapproval of proposals by a person. 
1568         b. The decision of the office must be in writing, and, if 
1569  approved, the notification shall state the maximum credit 
1570  allowable to the person. Upon approval, the office shall 
1571  transmit a copy of the decision to the Department of Revenue. 
1572         c. The office shall periodically monitor all projects in a 
1573  manner consistent with available resources to ensure that 
1574  resources are used in accordance with this paragraph; however, 
1575  each project must be reviewed at least once every 2 years. 
1576         d. The office shall, in consultation with the Department of 
1577  Community Affairs and the statewide and regional housing and 
1578  financial intermediaries, market the availability of the 
1579  community contribution tax credit program to community-based 
1580  organizations. 
1581         5. Notwithstanding sub-subparagraph 1.e., and for the 2008 
1582  2009 fiscal year only, the total amount of tax credit which may 
1583  be granted for all programs approved under this section and ss. 
1584  220.183 and 624.5105 is $13 million annually for projects that 
1585  provide homeownership opportunities for low-income or very-low 
1586  income households as defined in s. 420.9071(19) and (28) and 
1587  $3.5 million annually for all other projects. This subparagraph 
1588  expires June 30, 2009. 
1589         6. Expiration.—This paragraph expires June 30, 2015; 
1590  however, any accrued credit carryover that is unused on that 
1591  date may be used until the expiration of the 3-year carryover 
1592  period for such credit. 
1593         (6) EXEMPTIONS; POLITICAL SUBDIVISIONS.—There are also 
1594  exempt from the tax imposed by this chapter sales made to the 
1595  United States Government, a state, or any county, municipality, 
1596  or political subdivision of a state when payment is made 
1597  directly to the dealer by the governmental entity. This 
1598  exemption shall not inure to any transaction otherwise taxable 
1599  under this chapter when payment is made by a government employee 
1600  by any means, including, but not limited to, cash, check, or 
1601  credit card when that employee is subsequently reimbursed by the 
1602  governmental entity. This exemption does not include sales of 
1603  tangible personal property made to contractors employed either 
1604  directly or as agents of any such government or political 
1605  subdivision thereof when such tangible personal property goes 
1606  into or becomes a part of public works owned by such government 
1607  or political subdivision. A determination whether a particular 
1608  transaction is properly characterized as an exempt sale to a 
1609  government entity or a taxable sale to a contractor shall be 
1610  based on the substance of the transaction rather than the form 
1611  in which the transaction is cast. The department shall adopt 
1612  rules that give special consideration to factors that govern the 
1613  status of the tangible personal property before its affixation 
1614  to real property. In developing these rules, assumption of the 
1615  risk of damage or loss is of paramount consideration in the 
1616  determination. This exemption does not include sales, rental, 
1617  use, consumption, or storage for use in any political 
1618  subdivision or municipality in this state of machines and 
1619  equipment and parts and accessories therefor used in the 
1620  generation, transmission, or distribution of electrical energy 
1621  by systems owned and operated by a political subdivision in this 
1622  state for transmission or distribution expansion. Likewise 
1623  exempt are charges for services rendered by radio and television 
1624  stations, including line charges, talent fees, or license fees 
1625  and charges for films, videotapes, and transcriptions used in 
1626  producing radio or television broadcasts. The exemption provided 
1627  in this subsection does not include sales, rental, use, 
1628  consumption, or storage for use in any political subdivision or 
1629  municipality in this state of machines and equipment and parts 
1630  and accessories therefor used in providing two-way 
1631  telecommunications services to the public for hire by the use of 
1632  a telecommunications facility, as defined in s. 364.02(15), and 
1633  for which a certificate is required under chapter 364, which 
1634  facility is owned and operated by any county, municipality, or 
1635  other political subdivision of the state. Any immunity of any 
1636  political subdivision of the state or other entity of local 
1637  government from taxation of the property used to provide 
1638  telecommunication services that is taxed as a result of this 
1639  section is hereby waived. However, the exemption provided in 
1640  this subsection includes transactions taxable under this chapter 
1641  which are for use by the operator of a public-use airport, as 
1642  defined in s. 332.004, in providing such telecommunications 
1643  services for the airport or its tenants, concessionaires, or 
1644  licensees, or which are for use by a public hospital for the 
1645  provision of such telecommunications services. 
1646         (3)(7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 
1647  entity by this chapter do not inure to any transaction that is 
1648  otherwise taxable under this chapter when payment is made by a 
1649  representative or employee of the entity by any means, 
1650  including, but not limited to, cash, check, or credit card, even 
1651  when that representative or employee is subsequently reimbursed 
1652  by the entity. In addition, exemptions provided to any entity by 
1653  this subsection do not inure to any transaction that is 
1654  otherwise taxable under this chapter unless the entity has 
1655  obtained a sales tax exemption certificate from the department 
1656  or the entity obtains or provides other documentation as 
1657  required by the department. Eligible purchases or leases made 
1658  with such a certificate must be in strict compliance with this 
1659  subsection and departmental rules, and any person who makes an 
1660  exempt purchase with a certificate that is not in strict 
1661  compliance with this subsection and the rules is liable for and 
1662  shall pay the tax. The department may adopt rules to administer 
1663  this subsection. 
1664         (a) Artificial commemorative flowers.—Exempt from the tax 
1665  imposed by this chapter is the sale of artificial commemorative 
1666  flowers by bona fide nationally chartered veterans’ 
1667  organizations. 
1668         (b) Boiler fuels.—When purchased for use as a combustible 
1669  fuel, purchases of natural gas, residual oil, recycled oil, 
1670  waste oil, solid waste material, coal, sulfur, wood, wood 
1671  residues or wood bark used in an industrial manufacturing, 
1672  processing, compounding, or production process at a fixed 
1673  location in this state are exempt from the taxes imposed by this 
1674  chapter; however, such exemption shall not be allowed unless the 
1675  purchaser signs a certificate stating that the fuel to be 
1676  exempted is for the exclusive use designated herein. This 
1677  exemption does not apply to the use of boiler fuels that are not 
1678  used in manufacturing, processing, compounding, or producing 
1679  items of tangible personal property for sale, or to the use of 
1680  boiler fuels used by any firm subject to regulation by the 
1681  Division of Hotels and Restaurants of the Department of Business 
1682  and Professional Regulation. 
1683         (c) Crustacea bait.—Also exempt from the tax imposed by 
1684  this chapter is the purchase by commercial fishers of bait 
1685  intended solely for use in the entrapment of Callinectes sapidus 
1686  and Menippe mercenaria. 
1687         (d) Feeds.—Feeds for poultry, ostriches, and livestock, 
1688  including racehorses and dairy cows, are exempt. 
1689         (e) Film rentals.—Film rentals are exempt when an admission 
1690  is charged for viewing such film, and license fees and direct 
1691  charges for films, videotapes, and transcriptions used by 
1692  television or radio stations or networks are exempt. 
1693         (f) Flags.—Also exempt are sales of the flag of the United 
1694  States and the official state flag of Florida. 
1695         (g) Florida Retired Educators Association and its local 
1696  chapters.—Also exempt from payment of the tax imposed by this 
1697  chapter are purchases of office supplies, equipment, and 
1698  publications made by the Florida Retired Educators Association 
1699  and its local chapters. 
1700         (a)(h) Guide dogs for the blind.—Also exempt are the sale 
1701  or rental of guide dogs for the blind, commonly referred to as 
1702  “seeing-eye dogs,” and the sale of food or other items for such 
1703  guide dogs. 
1704         1. The department shall issue a consumer’s certificate of 
1705  exemption to any blind person who holds an identification card 
1706  as provided for in s. 413.091 and who either owns or rents, or 
1707  contemplates the ownership or rental of, a guide dog for the 
1708  blind. The consumer’s certificate of exemption shall be issued 
1709  without charge and shall be of such size as to be capable of 
1710  being carried in a wallet or billfold. 
1711         2. The department shall make such rules concerning items 
1712  exempt from tax under the provisions of this paragraph as may be 
1713  necessary to provide that any person authorized to have a 
1714  consumer’s certificate of exemption need only present such a 
1715  certificate at the time of paying for exempt goods and shall not 
1716  be required to pay any tax thereon. 
1717         (i) Hospital meals and rooms.—Also exempt from payment of 
1718  the tax imposed by this chapter on rentals and meals are 
1719  patients and inmates of any hospital or other physical plant or 
1720  facility designed and operated primarily for the care of persons 
1721  who are ill, aged, infirm, mentally or physically incapacitated, 
1722  or otherwise dependent on special care or attention. Residents 
1723  of a home for the aged are exempt from payment of taxes on meals 
1724  provided through the facility. A home for the aged is defined as 
1725  a facility that is licensed or certified in part or in whole 
1726  under chapter 400, chapter 429, or chapter 651, or that is 
1727  financed by a mortgage loan made or insured by the United States 
1728  Department of Housing and Urban Development under s. 202, s. 202 
1729  with a s. 8 subsidy, s. 221(d)(3) or (4), s. 232, or s. 236 of 
1730  the National Housing Act, or other such similar facility 
1731  designed and operated primarily for the care of the aged. 
1732         (b)(j) Household fuels.—Also exempt from payment of the tax 
1733  imposed by this chapter are sales of utilities to residential 
1734  households or owners of residential models in this state by 
1735  utility companies who pay the gross receipts tax imposed under 
1736  s. 203.01, and sales of fuel to residential households or owners 
1737  of residential models, including oil, kerosene, liquefied 
1738  petroleum gas, coal, wood, and other fuel products used in the 
1739  household or residential model for the purposes of heating, 
1740  cooking, lighting, and refrigeration, regardless of whether such 
1741  sales of utilities and fuels are separately metered and billed 
1742  direct to the residents or are metered and billed to the 
1743  landlord. If any part of the utility or fuel is used for a 
1744  nonexempt purpose, the entire sale is taxable. The landlord 
1745  shall provide a separate meter for nonexempt utility or fuel 
1746  consumption. For the purposes of this paragraph, licensed family 
1747  day care homes shall also be exempt. 
1748         (k) Meals provided by certain nonprofit organizations. 
1749  There is exempt from the tax imposed by this chapter the sale of 
1750  prepared meals by a nonprofit volunteer organization to 
1751  handicapped, elderly, or indigent persons when such meals are 
1752  delivered as a charitable function by the organization to such 
1753  persons at their places of residence. 
1754         (l) Organizations providing special educational, cultural, 
1755  recreational, and social benefits to minors.—Also exempt from 
1756  the tax imposed by this chapter are sales or leases to and sales 
1757  of donated property by nonprofit organizations which are 
1758  incorporated pursuant to chapter 617 the primary purpose of 
1759  which is providing activities that contribute to the development 
1760  of good character or good sportsmanship, or to the educational 
1761  or cultural development, of minors. This exemption is extended 
1762  only to that level of the organization that has a salaried 
1763  executive officer or an elected nonsalaried executive officer. 
1764  For the purpose of this paragraph, the term “donated property” 
1765  means any property transferred to such nonprofit organization 
1766  for less than 50 percent of its fair market value. 
1767         (m) Religious institutions.— 
1768         1. There are exempt from the tax imposed by this chapter 
1769  transactions involving sales or leases directly to religious 
1770  institutions when used in carrying on their customary nonprofit 
1771  religious activities or sales or leases of tangible personal 
1772  property by religious institutions having an established 
1773  physical place for worship at which nonprofit religious services 
1774  and activities are regularly conducted and carried on. 
1775         2. As used in this paragraph, the term “religious 
1776  institutions” means churches, synagogues, and established 
1777  physical places for worship at which nonprofit religious 
1778  services and activities are regularly conducted and carried on. 
1779  The term “religious institutions” includes nonprofit 
1780  corporations the sole purpose of which is to provide free 
1781  transportation services to church members, their families, and 
1782  other church attendees. The term “religious institutions” also 
1783  includes nonprofit state, nonprofit district, or other nonprofit 
1784  governing or administrative offices the function of which is to 
1785  assist or regulate the customary activities of religious 
1786  institutions. The term “religious institutions” also includes 
1787  any nonprofit corporation that is qualified as nonprofit under 
1788  s. 501(c)(3) of the Internal Revenue Code of 1986, as amended, 
1789  and that owns and operates a Florida television station, at 
1790  least 90 percent of the programming of which station consists of 
1791  programs of a religious nature and the financial support for 
1792  which, exclusive of receipts for broadcasting from other 
1793  nonprofit organizations, is predominantly from contributions 
1794  from the general public. The term “religious institutions” also 
1795  includes any nonprofit corporation that is qualified as 
1796  nonprofit under s. 501(c)(3) of the Internal Revenue Code of 
1797  1986, as amended, the primary activity of which is making and 
1798  distributing audio recordings of religious scriptures and 
1799  teachings to blind or visually impaired persons at no charge. 
1800  The term “religious institutions” also includes any nonprofit 
1801  corporation that is qualified as nonprofit under s. 501(c)(3) of 
1802  the Internal Revenue Code of 1986, as amended, the sole or 
1803  primary function of which is to provide, upon invitation, 
1804  nonprofit religious services, evangelistic services, religious 
1805  education, administrative assistance, or missionary assistance 
1806  for a church, synagogue, or established physical place of 
1807  worship at which nonprofit religious services and activities are 
1808  regularly conducted. 
1809         (n) Veterans’ organizations.— 
1810         1. There are exempt from the tax imposed by this chapter 
1811  transactions involving sales or leases to qualified veterans’ 
1812  organizations and their auxiliaries when used in carrying on 
1813  their customary veterans’ organization activities. 
1814         2. As used in this paragraph, the term “veterans’ 
1815  organizations” means nationally chartered or recognized 
1816  veterans’ organizations, including, but not limited to, Florida 
1817  chapters of the Paralyzed Veterans of America, Catholic War 
1818  Veterans of the U.S.A., Jewish War Veterans of the U.S.A., and 
1819  the Disabled American Veterans, Department of Florida, Inc., 
1820  which hold current exemptions from federal income tax under s. 
1821  501(c)(4) or (19) of the Internal Revenue Code of 1986, as 
1822  amended. 
1823         (o) Schools, colleges, and universities.—Also exempt from 
1824  the tax imposed by this chapter are sales or leases to state 
1825  tax-supported schools, colleges, or universities. 
1826         (p) Section 501(c)(3) organizations.—Also exempt from the 
1827  tax imposed by this chapter are sales or leases to organizations 
1828  determined by the Internal Revenue Service to be currently 
1829  exempt from federal income tax pursuant to s. 501(c)(3) of the 
1830  Internal Revenue Code of 1986, as amended, when such leases or 
1831  purchases are used in carrying on their customary nonprofit 
1832  activities. 
1833         (q) Resource recovery equipment.—Also exempt is resource 
1834  recovery equipment which is owned and operated by or on behalf 
1835  of any county or municipality, certified by the Department of 
1836  Environmental Protection under the provisions of s. 403.715. 
1837         (r) School books and school lunches.—This exemption applies 
1838  to school books used in regularly prescribed courses of study, 
1839  and to school lunches served in public, parochial, or nonprofit 
1840  schools operated for and attended by pupils of grades K through 
1841  12. Yearbooks, magazines, newspapers, directories, bulletins, 
1842  and similar publications distributed by such educational 
1843  institutions to their students are also exempt. School books and 
1844  food sold or served at community colleges and other institutions 
1845  of higher learning are taxable. 
1846         (s) Tasting beverages.—Vinous and alcoholic beverages 
1847  provided by distributors or vendors for the purpose of “wine 
1848  tasting” and “spirituous beverage tasting” as contemplated under 
1849  the provisions of ss. 564.06 and 565.12, respectively, are 
1850  exempt from the tax imposed by this chapter. 
1851         (t) Boats temporarily docked in state.— 
1852         1. Notwithstanding the provisions of chapter 328, 
1853  pertaining to the registration of vessels, a boat upon which the 
1854  state sales or use tax has not been paid is exempt from the use 
1855  tax under this chapter if it enters and remains in this state 
1856  for a period not to exceed a total of 20 days in any calendar 
1857  year calculated from the date of first dockage or slippage at a 
1858  facility, registered with the department, that rents dockage or 
1859  slippage space in this state. If a boat brought into this state 
1860  for use under this paragraph is placed in a facility, registered 
1861  with the department, for repairs, alterations, refitting, or 
1862  modifications and such repairs, alterations, refitting, or 
1863  modifications are supported by written documentation, the 20-day 
1864  period shall be tolled during the time the boat is physically in 
1865  the care, custody, and control of the repair facility, including 
1866  the time spent on sea trials conducted by the facility. The 20 
1867  day time period may be tolled only once within a calendar year 
1868  when a boat is placed for the first time that year in the 
1869  physical care, custody, and control of a registered repair 
1870  facility; however, the owner may request and the department may 
1871  grant an additional tolling of the 20-day period for purposes of 
1872  repairs that arise from a written guarantee given by the 
1873  registered repair facility, which guarantee covers only those 
1874  repairs or modifications made during the first tolled period. 
1875  Within 72 hours after the date upon which the registered repair 
1876  facility took possession of the boat, the facility must have in 
1877  its possession, on forms prescribed by the department, an 
1878  affidavit which states that the boat is under its care, custody, 
1879  and control and that the owner does not use the boat while in 
1880  the facility. Upon completion of the repairs, alterations, 
1881  refitting, or modifications, the registered repair facility 
1882  must, within 72 hours after the date of release, have in its 
1883  possession a copy of the release form which shows the date of 
1884  release and any other information the department requires. The 
1885  repair facility shall maintain a log that documents all 
1886  alterations, additions, repairs, and sea trials during the time 
1887  the boat is under the care, custody, and control of the 
1888  facility. The affidavit shall be maintained by the registered 
1889  repair facility as part of its records for as long as required 
1890  by s. 213.35. When, within 6 months after the date of its 
1891  purchase, a boat is brought into this state under this 
1892  paragraph, the 6-month period provided in s. 212.05(1)(a)2. or 
1893  s. 212.06(8) shall be tolled. 
1894         2. During the period of repairs, alterations, refitting, or 
1895  modifications and during the 20-day period referred to in 
1896  subparagraph 1., the boat may be listed for sale, contracted for 
1897  sale, or sold exclusively by a broker or dealer registered with 
1898  the department without incurring a use tax under this chapter; 
1899  however, the sales tax levied under this chapter applies to such 
1900  sale. 
1901         3. The mere storage of a boat at a registered repair 
1902  facility does not qualify as a tax-exempt use in this state. 
1903         4. As used in this paragraph, “registered repair facility” 
1904  means: 
1905         a. A full-service facility that: 
1906         (I) Is located on a navigable body of water; 
1907         (II) Has haulout capability such as a dry dock, travel 
1908  lift, railway, or similar equipment to service craft under the 
1909  care, custody, and control of the facility; 
1910         (III) Has adequate piers and storage facilities to provide 
1911  safe berthing of vessels in its care, custody, and control; and 
1912         (IV) Has necessary shops and equipment to provide repair or 
1913  warranty work on vessels under the care, custody, and control of 
1914  the facility; 
1915         b. A marina that: 
1916         (I) Is located on a navigable body of water; 
1917         (II) Has adequate piers and storage facilities to provide 
1918  safe berthing of vessels in its care, custody, and control; and 
1919         (III) Has necessary shops and equipment to provide repairs 
1920  or warranty work on vessels; or 
1921         c. A shoreside facility that: 
1922         (I) Is located on a navigable body of water; 
1923         (II) Has adequate piers and storage facilities to provide 
1924  safe berthing of vessels in its care, custody, and control; and 
1925         (III) Has necessary shops and equipment to provide repairs 
1926  or warranty work. 
1927         (u) Volunteer fire departments.—Also exempt are 
1928  firefighting and rescue service equipment and supplies purchased 
1929  by volunteer fire departments, duly chartered under the Florida 
1930  Statutes as corporations not for profit. 
1931         (v) Professional services.— 
1932         1. Also exempted are professional, insurance, or personal 
1933  service transactions that involve sales as inconsequential 
1934  elements for which no separate charges are made. 
1935         2. The personal service transactions exempted pursuant to 
1936  subparagraph 1. do not exempt the sale of information services 
1937  involving the furnishing of printed, mimeographed, or 
1938  multigraphed matter, or matter duplicating written or printed 
1939  matter in any other manner, other than professional services and 
1940  services of employees, agents, or other persons acting in a 
1941  representative or fiduciary capacity or information services 
1942  furnished to newspapers and radio and television stations. As 
1943  used in this subparagraph, the term “information services” 
1944  includes the services of collecting, compiling, or analyzing 
1945  information of any kind or nature and furnishing reports thereof 
1946  to other persons. 
1947         3. This exemption does not apply to any service warranty 
1948  transaction taxable under s. 212.0506. 
1949         4. This exemption does not apply to any service transaction 
1950  taxable under s. 212.05(1)(i). 
1951         (w) Certain newspaper, magazine, and newsletter 
1952  subscriptions, shoppers, and community newspapers.—Likewise 
1953  exempt are newspaper, magazine, and newsletter subscriptions in 
1954  which the product is delivered to the customer by mail. Also 
1955  exempt are free, circulated publications that are published on a 
1956  regular basis, the content of which is primarily advertising, 
1957  and that are distributed through the mail, home delivery, or 
1958  newsstands. The exemption for newspaper, magazine, and 
1959  newsletter subscriptions which is provided in this paragraph 
1960  applies only to subscriptions entered into after March 1, 1997. 
1961         (x) Sporting equipment brought into the state.—Sporting 
1962  equipment brought into Florida, for a period of not more than 4 
1963  months in any calendar year, used by an athletic team or an 
1964  individual athlete in a sporting event is exempt from the use 
1965  tax if such equipment is removed from the state within 7 days 
1966  after the completion of the event. 
1967         (y) Charter fishing vessels.—The charge for chartering any 
1968  boat or vessel, with the crew furnished, solely for the purpose 
1969  of fishing is exempt from the tax imposed under s. 212.04 or s. 
1970  212.05. This exemption does not apply to any charge to enter or 
1971  stay upon any “head-boat,” party boat, or other boat or vessel. 
1972  Nothing in this paragraph shall be construed to exempt any boat 
1973  from sales or use tax upon the purchase thereof except as 
1974  provided in paragraph (t) and s. 212.05. 
1975         (z) Vending machines sponsored by nonprofit or charitable 
1976  organizations.—Also exempt are food or drinks for human 
1977  consumption sold for 25 cents or less through a coin-operated 
1978  vending machine sponsored by a nonprofit corporation qualified 
1979  as nonprofit pursuant to s. 501(c)(3) or (4) of the Internal 
1980  Revenue Code of 1986, as amended. 
1981         (aa) Certain commercial vehicles.—Also exempt is the sale, 
1982  lease, or rental of a commercial motor vehicle as defined in s. 
1983  207.002(2), when the following conditions are met: 
1984         1. The sale, lease, or rental occurs between two commonly 
1985  owned and controlled corporations; 
1986         2. Such vehicle was titled and registered in this state at 
1987  the time of the sale, lease, or rental; and 
1988         3. Florida sales tax was paid on the acquisition of such 
1989  vehicle by the seller, lessor, or renter. 
1990         (bb) Community cemeteries.—Also exempt are purchases by any 
1991  nonprofit corporation that has qualified under s. 501(c)(13) of 
1992  the Internal Revenue Code of 1986, as amended, and is operated 
1993  for the purpose of maintaining a cemetery that was donated to 
1994  the community by deed. 
1995         (cc) Works of art.— 
1996         1. Also exempt are works of art sold to or used by an 
1997  educational institution. 
1998         2. This exemption also applies to the sale to or use in 
1999  this state of any work of art by any person if it was purchased 
2000  or imported exclusively for the purpose of being donated to any 
2001  educational institution, or loaned to and made available for 
2002  display by any educational institution, provided that the term 
2003  of the loan agreement is for at least 10 years. 
2004         3. The exemption provided by this paragraph for donations 
2005  is allowed only if the person who purchased the work of art 
2006  transfers title to the donated work of art to an educational 
2007  institution. Such transfer of title shall be evidenced by an 
2008  affidavit meeting requirements established by rule to document 
2009  entitlement to the exemption. Nothing in this paragraph shall 
2010  preclude a work of art donated to an educational institution 
2011  from remaining in the possession of the donor or purchaser, as 
2012  long as title to the work of art lies with the educational 
2013  institution. 
2014         4. A work of art is presumed to have been purchased in or 
2015  imported into this state exclusively for loan as provided in 
2016  subparagraph 2., if it is so loaned or placed in storage in 
2017  preparation for such a loan within 90 days after purchase or 
2018  importation, whichever is later; but a work of art is not deemed 
2019  to be placed in storage in preparation for loan for purposes of 
2020  this exemption if it is displayed at any place other than an 
2021  educational institution. 
2022         5. The exemptions provided by this paragraph are allowed 
2023  only if the person who purchased the work of art gives to the 
2024  vendor an affidavit meeting the requirements, established by 
2025  rule, to document entitlement to the exemption. The person who 
2026  purchased the work of art shall forward a copy of such affidavit 
2027  to the Department of Revenue at the time it is issued to the 
2028  vendor. 
2029         6. The exemption for loans provided by subparagraph 2. 
2030  applies only for the period during which a work of art is in the 
2031  possession of the educational institution or is in storage 
2032  before transfer of possession to that institution; and when it 
2033  ceases to be so possessed or held, tax based upon the sales 
2034  price paid by the owner is payable, and the statute of 
2035  limitations provided in s. 95.091 shall begin to run at that 
2036  time. However, tax shall not become due if the work of art is 
2037  donated to an educational institution after the loan ceases. 
2038         7. Any educational institution to which a work of art has 
2039  been donated pursuant to this paragraph shall make available to 
2040  the department the title to the work of art and any other 
2041  relevant information. Any educational institution which has 
2042  received a work of art on loan pursuant to this paragraph shall 
2043  make available to the department information relating to the 
2044  work of art. Any educational institution that transfers from its 
2045  possession a work of art as defined by this paragraph which has 
2046  been loaned to it must notify the Department of Revenue within 
2047  60 days after the transfer. 
2048         8. For purposes of the exemptions provided by this 
2049  paragraph, the term: 
2050         a. “Educational institutions” includes state tax-supported, 
2051  parochial, church, and nonprofit private schools, colleges, or 
2052  universities that conduct regular classes and courses of study 
2053  required for accreditation by or membership in the Southern 
2054  Association of Colleges and Schools, the Florida Council of 
2055  Independent Schools, or the Florida Association of Christian 
2056  Colleges and Schools, Inc.; nonprofit private schools that 
2057  conduct regular classes and courses of study accepted for 
2058  continuing education credit by a board of the Division of 
2059  Medical Quality Assurance of the Department of Health; or 
2060  nonprofit libraries, art galleries, performing arts centers that 
2061  provide educational programs to school children, which programs 
2062  involve performances or other educational activities at the 
2063  performing arts center and serve a minimum of 50,000 school 
2064  children a year, and museums open to the public. 
2065         b. “Work of art” includes pictorial representations, 
2066  sculpture, jewelry, antiques, stamp collections and coin 
2067  collections, and other tangible personal property, the value of 
2068  which is attributable predominantly to its artistic, historical, 
2069  political, cultural, or social importance. 
2070         (dd) Taxicab leases.—The lease of or license to use a 
2071  taxicab or taxicab-related equipment and services provided by a 
2072  taxicab company to an independent taxicab operator are exempt, 
2073  provided, however, the exemptions provided under this paragraph 
2074  only apply if sales or use tax has been paid on the acquisition 
2075  of the taxicab and its related equipment. 
2076         (ee) Aircraft repair and maintenance labor charges.—There 
2077  shall be exempt from the tax imposed by this chapter all labor 
2078  charges for the repair and maintenance of qualified aircraft, 
2079  aircraft of more than 15,000 pounds maximum certified takeoff 
2080  weight, and rotary wing aircraft of more than 10,000 pounds 
2081  maximum certified takeoff weight. Except as otherwise provided 
2082  in this chapter, charges for parts and equipment furnished in 
2083  connection with such labor charges are taxable. 
2084         (ff) Certain electricity or steam uses.— 
2085         1. Subject to the provisions of subparagraph 4., charges 
2086  for electricity or steam used to operate machinery and equipment 
2087  at a fixed location in this state when such machinery and 
2088  equipment is used to manufacture, process, compound, produce, or 
2089  prepare for shipment items of tangible personal property for 
2090  sale, or to operate pollution control equipment, recycling 
2091  equipment, maintenance equipment, or monitoring or control 
2092  equipment used in such operations are exempt to the extent 
2093  provided in this paragraph. If 75 percent or more of the 
2094  electricity or steam used at the fixed location is used to 
2095  operate qualifying machinery or equipment, 100 percent of the 
2096  charges for electricity or steam used at the fixed location are 
2097  exempt. If less than 75 percent but 50 percent or more of the 
2098  electricity or steam used at the fixed location is used to 
2099  operate qualifying machinery or equipment, 50 percent of the 
2100  charges for electricity or steam used at the fixed location are 
2101  exempt. If less than 50 percent of the electricity or steam used 
2102  at the fixed location is used to operate qualifying machinery or 
2103  equipment, none of the charges for electricity or steam used at 
2104  the fixed location are exempt. 
2105         2. This exemption applies only to industries classified 
2106  under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22, 
2107  23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 
2108  and 39 and Industry Group Number 212. As used in this paragraph, 
2109  “SIC” means those classifications contained in the Standard 
2110  Industrial Classification Manual, 1987, as published by the 
2111  Office of Management and Budget, Executive Office of the 
2112  President. 
2113         3. Possession by a seller of a written certification by the 
2114  purchaser, certifying the purchaser’s entitlement to an 
2115  exemption permitted by this subsection, relieves the seller from 
2116  the responsibility of collecting the tax on the nontaxable 
2117  amounts, and the department shall look solely to the purchaser 
2118  for recovery of such tax if it determines that the purchaser was 
2119  not entitled to the exemption. 
2120         4. Such exemption shall be applied as follows: beginning 
2121  July 1, 2000, 100 percent of the charges for such electricity or 
2122  steam shall be exempt. 
2123         (gg) Fair associations.—Also exempt from the tax imposed by 
2124  this chapter is the sale, use, lease, rental, or grant of a 
2125  license to use, made directly to or by a fair association, of 
2126  real or tangible personal property; any charge made by a fair 
2127  association, or its agents, for parking, admissions, or for 
2128  temporary parking of vehicles used for sleeping quarters; 
2129  rentals, subleases, and sublicenses of real or tangible personal 
2130  property between the owner of the central amusement attraction 
2131  and any owner of an amusement ride, as those terms are used in 
2132  ss. 616.15(1)(b) and 616.242(3)(a), for the furnishing of 
2133  amusement rides at a public fair or exposition; and other 
2134  transactions of a fair association which are incurred directly 
2135  by the fair association in the financing, construction, and 
2136  operation of a fair, exposition, or other event or facility that 
2137  is authorized by s. 616.08. As used in this paragraph, the terms 
2138  “fair association” and “public fair or exposition” have the same 
2139  meaning as those terms are defined in s. 616.001. This exemption 
2140  does not apply to the sale of tangible personal property made by 
2141  a fair association through an agent or independent contractor; 
2142  sales of admissions and tangible personal property by a 
2143  concessionaire, vendor, exhibitor, or licensee; or rentals and 
2144  subleases of tangible personal property or real property between 
2145  the owner of the central amusement attraction and a 
2146  concessionaire, vendor, exhibitor, or licensee, except for the 
2147  furnishing of amusement rides, which transactions are exempt. 
2148         (hh) Solar energy systems.—Also exempt are solar energy 
2149  systems or any component thereof. The Florida Solar Energy 
2150  Center shall from time to time certify to the department a list 
2151  of equipment and requisite hardware considered to be a solar 
2152  energy system or a component thereof. 
2153         (ii) Nonprofit cooperative hospital laundries.—Also exempt 
2154  are sales or leases to nonprofit organizations that are 
2155  incorporated under chapter 617 and which are treated, for 
2156  federal income tax purposes, as cooperatives under subchapter T 
2157  of the Internal Revenue Code, whose sole purpose is to offer 
2158  laundry supplies and services to their members who must all be 
2159  exempt from federal income tax pursuant to s. 501(c)(3) of the 
2160  Internal Revenue Code. A member of a nonprofit cooperative 
2161  hospital laundry whose Internal Revenue Code status changes 
2162  shall, within 90 days after such change, divest all 
2163  participation in the cooperative. The provision of laundry 
2164  supplies and services to a nonmember business pursuant to a 
2165  declaration of emergency under s. 252.36(2) and a written 
2166  emergency plan of operation executed by the members of the 
2167  cooperative does not invalidate or cause the denial of a 
2168  cooperative’s certificate of exemption. 
2169         (jj) Complimentary meals.—Also exempt from the tax imposed 
2170  by this chapter are food or drinks that are furnished as part of 
2171  a packaged room rate by any person offering for rent or lease 
2172  any transient living accommodations as described in s. 
2173  509.013(4)(a) which are licensed under part I of chapter 509 and 
2174  which are subject to the tax under s. 212.03, if a separate 
2175  charge or specific amount for the food or drinks is not shown. 
2176  Such food or drinks are considered to be sold at retail as part 
2177  of the total charge for the transient living accommodations. 
2178  Moreover, the person offering the accommodations is not 
2179  considered to be the consumer of items purchased in furnishing 
2180  such food or drinks and may purchase those items under 
2181  conditions of a sale for resale. 
2182         (kk) Nonprofit corporation conducting the correctional work 
2183  programs.—Products sold pursuant to s. 946.515 by the 
2184  corporation organized pursuant to part II of chapter 946 are 
2185  exempt from the tax imposed by this chapter. This exemption 
2186  applies retroactively to July 1, 1983. 
2187         (ll) Parent-teacher organizations, parent-teacher 
2188  associations, and schools having grades K through 12.— 
2189         1. Sales or leases to parent-teacher organizations and 
2190  associations the purpose of which is to raise funds for schools 
2191  that teach grades K through 12 and that are associated with 
2192  schools having grades K through 12 are exempt from the tax 
2193  imposed by this chapter. 
2194         2. Parent-teacher organizations and associations described 
2195  in subparagraph 1., and schools having grades K through 12, may 
2196  pay tax to their suppliers on the cost price of school materials 
2197  and supplies purchased, rented, or leased for resale or rental 
2198  to students in grades K through 12, of items sold for 
2199  fundraising purposes, and of items sold through vending machines 
2200  located on the school premises, in lieu of collecting the tax 
2201  imposed by this chapter from the purchaser. This paragraph also 
2202  applies to food or beverages sold through vending machines 
2203  located in the student lunchroom or dining room of a school 
2204  having kindergarten through grade 12. 
2205         (mm) Mobile home lot improvements.—Items purchased by 
2206  developers for use in making improvements to a mobile home lot 
2207  owned by the developer may be purchased tax-exempt as a sale for 
2208  resale if made pursuant to a contract that requires the 
2209  developer to sell a mobile home to a purchaser, place the mobile 
2210  home on the lot, and make the improvements to the lot for a 
2211  single lump-sum price. The developer must collect and remit 
2212  sales tax on the entire lump-sum price. 
2213         (nn) Veterans Administration.—When a veteran of the armed 
2214  forces purchases an aircraft, boat, mobile home, motor vehicle, 
2215  or other vehicle from a dealer pursuant to the provisions of 38 
2216  U.S.C. s. 3902(a), or any successor provision of the United 
2217  States Code, the amount that is paid directly to the dealer by 
2218  the Veterans Administration is not taxable. However, any portion 
2219  of the purchase price which is paid directly to the dealer by 
2220  the veteran is taxable. 
2221         (oo) Complimentary items.—There is exempt from the tax 
2222  imposed by this chapter: 
2223         1. Any food or drink, whether or not cooked or prepared on 
2224  the premises, provided without charge as a sample or for the 
2225  convenience of customers by a dealer that primarily sells food 
2226  product items at retail. 
2227         2. Any item given to a customer as part of a price 
2228  guarantee plan related to point-of-sale errors by a dealer that 
2229  primarily sells food products at retail. 
2230 
2231  The exemptions in this paragraph do not apply to businesses with 
2232  the primary activity of serving prepared meals or alcoholic 
2233  beverages for immediate consumption. 
2234         (pp) Donated foods or beverages.—Any food or beverage 
2235  donated by a dealer that sells food products at retail to a food 
2236  bank or an organization that holds a current exemption from 
2237  federal corporate income tax pursuant to s. 501(c) of the 
2238  Internal Revenue Code of 1986, as amended, is exempt from the 
2239  tax imposed by this chapter. 
2240         (qq) Racing dogs.—The sale of a racing dog by its owner is 
2241  exempt if the owner is also the breeder of the animal. 
2242         (rr) Equipment used in aircraft repair and maintenance. 
2243  There shall be exempt from the tax imposed by this chapter 
2244  replacement engines, parts, and equipment used in the repair or 
2245  maintenance of qualified aircraft, aircraft of more than 15,000 
2246  pounds maximum certified takeoff weight, and rotary wing 
2247  aircraft of more than 10,300 pounds maximum certified takeoff 
2248  weight, when such parts or equipment are installed on such 
2249  aircraft that is being repaired or maintained in this state. 
2250         (ss) Aircraft sales or leases.—The sale or lease of a 
2251  qualified aircraft or an aircraft of more than 15,000 pounds 
2252  maximum certified takeoff weight for use by a common carrier is 
2253  exempt from the tax imposed by this chapter. As used in this 
2254  paragraph, “common carrier” means an airline operating under 
2255  Federal Aviation Administration regulations contained in Title 
2256  14, chapter I, part 121 or part 129 of the Code of Federal 
2257  Regulations. 
2258         (tt) Nonprofit water systems.—Sales or leases to a not-for 
2259  profit corporation which holds a current exemption from federal 
2260  income tax under s. 501(c)(4) or (12) of the Internal Revenue 
2261  Code, as amended, are exempt from the tax imposed by this 
2262  chapter if the sole or primary function of the corporation is to 
2263  construct, maintain, or operate a water system in this state. 
2264         (uu) Library cooperatives.—Sales or leases to library 
2265  cooperatives certified under s. 257.41(2) are exempt from the 
2266  tax imposed by this chapter. 
2267         (vv) Advertising agencies.— 
2268         1. As used in this paragraph, the term “advertising agency” 
2269  means any firm that is primarily engaged in the business of 
2270  providing advertising materials and services to its clients. 
2271         2. The sale of advertising services by an advertising 
2272  agency to a client is exempt from the tax imposed by this 
2273  chapter. Also exempt from the tax imposed by this chapter are 
2274  items of tangible personal property such as photographic 
2275  negatives and positives, videos, films, galleys, mechanicals, 
2276  veloxes, illustrations, digital audiotapes, analog tapes, 
2277  printed advertisement copies, compact discs for the purpose of 
2278  recording, digital equipment, and artwork and the services used 
2279  to produce those items if the items are: 
2280         a. Sold to an advertising agency that is acting as an agent 
2281  for its clients pursuant to contract, and are created for the 
2282  performance of advertising services for the clients; 
2283         b. Produced, fabricated, manufactured, or otherwise created 
2284  by an advertising agency for its clients, and are used in the 
2285  performance of advertising services for the clients; or 
2286         c. Sold by an advertising agency to its clients in the 
2287  performance of advertising services for the clients, whether or 
2288  not the charges for these items are marked up or separately 
2289  stated. 
2290 
2291  The exemption provided by this subparagraph does not apply when 
2292  tangible personal property such as film, paper, and videotapes 
2293  is purchased to create items such as photographic negatives and 
2294  positives, videos, films, galleys, mechanicals, veloxes, 
2295  illustrations, and artwork that are sold to an advertising 
2296  agency or produced in-house by an advertising agency on behalf 
2297  of its clients. 
2298         3. The items exempted from tax under subparagraph 2. and 
2299  the creative services used by an advertising agency to design 
2300  the advertising for promotional goods such as displays, display 
2301  containers, exhibits, newspaper inserts, brochures, catalogues, 
2302  direct mail letters or flats, shirts, hats, pens, pencils, key 
2303  chains, or other printed goods or materials are not subject to 
2304  tax. However, when such promotional goods are produced or 
2305  reproduced for distribution, tax applies to the sales price 
2306  charged to the client for such promotional goods. 
2307         4. For items purchased by an advertising agency and exempt 
2308  from tax under this paragraph, possession of an exemption 
2309  certificate from the advertising agency certifying the agency’s 
2310  entitlement to exemption relieves the vendor of the 
2311  responsibility of collecting the tax on the sale of such items 
2312  to the advertising agency, and the department shall look solely 
2313  to the advertising agency for recovery of tax if it determines 
2314  that the advertising agency was not entitled to the exemption. 
2315         5. The exemptions provided by this paragraph apply 
2316  retroactively, except that all taxes that have been collected 
2317  must be remitted, and taxes that have been remitted before July 
2318  1, 1999, on transactions that are subject to exemption under 
2319  this paragraph are not subject to refund. 
2320         6. The department may adopt rules that interpret or define 
2321  the provisions of these exemptions and provide examples 
2322  regarding the application of these exemptions. 
2323         (ww) Bullion.—The sale of gold, silver, or platinum 
2324  bullion, or any combination thereof, in a single transaction is 
2325  exempt if the sales price exceeds $500. The dealer must maintain 
2326  proper documentation, as prescribed by rule of the department, 
2327  to identify that portion of a transaction which involves the 
2328  sale of gold, silver, or platinum bullion and is exempt under 
2329  this paragraph. 
2330         (xx) Certain repair and labor charges.— 
2331         1. Subject to the provisions of subparagraphs 2. and 3., 
2332  there is exempt from the tax imposed by this chapter all labor 
2333  charges for the repair of, and parts and materials used in the 
2334  repair of and incorporated into, industrial machinery and 
2335  equipment which is used for the manufacture, processing, 
2336  compounding, production, or preparation for shipping of items of 
2337  tangible personal property at a fixed location within this 
2338  state. 
2339         2. This exemption applies only to industries classified 
2340  under SIC Industry Major Group Numbers 10, 12, 13, 14, 20, 22, 
2341  23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 
2342  and 39 and Industry Group Number 212. As used in this 
2343  subparagraph, “SIC” means those classifications contained in the 
2344  Standard Industrial Classification Manual, 1987, as published by 
2345  the Office of Management and Budget, Executive Office of the 
2346  President. 
2347         3. This exemption shall be applied as follows: 
2348         a. Beginning July 1, 2000, 50 percent of such charges for 
2349  repair parts and labor shall be exempt. 
2350         b. Beginning July 1, 2001, 75 percent of such charges for 
2351  repair parts and labor shall be exempt. 
2352         c. Beginning July 1, 2002, 100 percent of such charges for 
2353  repair parts and labor shall be exempt. 
2354         (yy) Film and other printing supplies.—Also exempt are the 
2355  following materials purchased, produced, or created by 
2356  businesses classified under SIC Industry Numbers 275, 276, 277, 
2357  278, or 279 for use in producing graphic matter for sale: film, 
2358  photographic paper, dyes used for embossing and engraving, 
2359  artwork, typography, lithographic plates, and negatives. As used 
2360  in this paragraph, “SIC” means those classifications contained 
2361  in the Standard Industrial Classification Manual, 1987, as 
2362  published by the Office of Management and Budget, Executive 
2363  Office of the President. 
2364         (zz) People-mover systems.—People-mover systems, and parts 
2365  thereof, which are purchased or manufactured by contractors 
2366  employed either directly by or as agents for the United States 
2367  Government, the state, a county, a municipality, a political 
2368  subdivision of the state, or the public operator of a public-use 
2369  airport as defined by s. 332.004(14) are exempt from the tax 
2370  imposed by this chapter when the systems or parts go into or 
2371  become part of publicly owned facilities. In the case of 
2372  contractors who manufacture and install such systems and parts, 
2373  this exemption extends to the purchase of component parts and 
2374  all other manufacturing and fabrication costs. The department 
2375  may provide a form to be used by contractors to provide to 
2376  suppliers of people-mover systems or parts to certify the 
2377  contractors’ eligibility for the exemption provided under this 
2378  paragraph. As used in this paragraph, “people-mover systems” 
2379  includes wheeled passenger vehicles and related control and 
2380  power distribution systems that are part of a transportation 
2381  system for use by the general public, regardless of whether such 
2382  vehicles are operator-controlled or driverless, self-propelled 
2383  or propelled by external power and control systems, or conducted 
2384  on roads, rails, guidebeams, or other permanent structures that 
2385  are an integral part of such transportation system. “Related 
2386  control and power distribution systems” includes any electrical 
2387  or electronic control or signaling equipment, but does not 
2388  include the embedded wiring, conduits, or cabling used to 
2389  transmit electrical or electronic signals among such control 
2390  equipment, power distribution equipment, signaling equipment, 
2391  and wheeled vehicles. 
2392         (aaa) Florida Fire and Emergency Services Foundation.—Sales 
2393  or leases to the Florida Fire and Emergency Services Foundation 
2394  are exempt from the tax imposed by this chapter. 
2395         (bbb) Railroad roadway materials.—Also exempt from the tax 
2396  imposed by this chapter are railroad roadway materials used in 
2397  the construction, repair, or maintenance of railways. Railroad 
2398  roadway materials shall include rails, ties, ballasts, 
2399  communication equipment, signal equipment, power transmission 
2400  equipment, and any other track materials. 
2401         (ccc) Equipment, machinery, and other materials for 
2402  renewable energy technologies.— 
2403         1. As used in this paragraph, the term: 
2404         a. “Biodiesel” means the mono-alkyl esters of long-chain 
2405  fatty acids derived from plant or animal matter for use as a 
2406  source of energy and meeting the specifications for biodiesel 
2407  and biodiesel blends with petroleum products as adopted by the 
2408  Department of Agriculture and Consumer Services. Biodiesel may 
2409  refer to biodiesel blends designated BXX, where XX represents 
2410  the volume percentage of biodiesel fuel in the blend. 
2411         b. “Ethanol” means an anhydrous denatured alcohol produced 
2412  by the conversion of carbohydrates meeting the specifications 
2413  for fuel ethanol and fuel ethanol blends with petroleum products 
2414  as adopted by the Department of Agriculture and Consumer 
2415  Services. Ethanol may refer to fuel ethanol blends designated 
2416  EXX, where XX represents the volume percentage of fuel ethanol 
2417  in the blend. 
2418         c. “Hydrogen fuel cells” means equipment using hydrogen or 
2419  a hydrogen-rich fuel in an electrochemical process to generate 
2420  energy, electricity, or the transfer of heat. 
2421         2. The sale or use of the following in the state is exempt 
2422  from the tax imposed by this chapter: 
2423         a. Hydrogen-powered vehicles, materials incorporated into 
2424  hydrogen-powered vehicles, and hydrogen-fueling stations, up to 
2425  a limit of $2 million in tax each state fiscal year for all 
2426  taxpayers. 
2427         b. Commercial stationary hydrogen fuel cells, up to a limit 
2428  of $1 million in tax each state fiscal year for all taxpayers. 
2429         c. Materials used in the distribution of biodiesel (B10 
2430  B100) and ethanol (E10-E100), including fueling infrastructure, 
2431  transportation, and storage, up to a limit of $1 million in tax 
2432  each state fiscal year for all taxpayers. Gasoline fueling 
2433  station pump retrofits for ethanol (E10-E100) distribution 
2434  qualify for the exemption provided in this sub-subparagraph. 
2435         3. The Florida Energy and Climate Commission shall provide 
2436  to the department a list of items eligible for the exemption 
2437  provided in this paragraph. 
2438         4.a. The exemption provided in this paragraph shall be 
2439  available to a purchaser only through a refund of previously 
2440  paid taxes. An eligible item is subject to refund one time. A 
2441  person who has received a refund on an eligible item shall 
2442  notify the next purchaser of the item that such item is no 
2443  longer eligible for a refund of paid taxes. This notification 
2444  shall be provided to each subsequent purchaser on the sales 
2445  invoice or other proof of purchase. 
2446         b. To be eligible to receive the exemption provided in this 
2447  paragraph, a purchaser shall file an application with the 
2448  Florida Energy and Climate Commission. The application shall be 
2449  developed by the Florida Energy and Climate Commission, in 
2450  consultation with the department, and shall require: 
2451         (I) The name and address of the person claiming the refund. 
2452         (II) A specific description of the purchase for which a 
2453  refund is sought, including, when applicable, a serial number or 
2454  other permanent identification number. 
2455         (III) The sales invoice or other proof of purchase showing 
2456  the amount of sales tax paid, the date of purchase, and the name 
2457  and address of the sales tax dealer from whom the property was 
2458  purchased. 
2459         (IV) A sworn statement that the information provided is 
2460  accurate and that the requirements of this paragraph have been 
2461  met. 
2462         c. Within 30 days after receipt of an application, the 
2463  Florida Energy and Climate Commission shall review the 
2464  application and shall notify the applicant of any deficiencies. 
2465  Upon receipt of a completed application, the Florida Energy and 
2466  Climate Commission shall evaluate the application for exemption 
2467  and issue a written certification that the applicant is eligible 
2468  for a refund or issue a written denial of such certification 
2469  within 60 days after receipt of the application. The Florida 
2470  Energy and Climate Commission shall provide the department with 
2471  a copy of each certification issued upon approval of an 
2472  application. 
2473         d. Each certified applicant shall be responsible for 
2474  forwarding a certified copy of the application and copies of all 
2475  required documentation to the department within 6 months after 
2476  certification by the Florida Energy and Climate Commission. 
2477         e. A refund approved pursuant to this paragraph shall be 
2478  made within 30 days after formal approval by the department. 
2479         f. The Florida Energy and Climate Commission may adopt the 
2480  form for the application for a certificate, requirements for the 
2481  content and format of information submitted to the Florida 
2482  Energy and Climate Commission in support of the application, 
2483  other procedural requirements, and criteria by which the 
2484  application will be determined by rule. The department may adopt 
2485  all other rules pursuant to ss. 120.536(1) and 120.54 to 
2486  administer this paragraph, including rules establishing 
2487  additional forms and procedures for claiming this exemption. 
2488         g. The Florida Energy and Climate Commission shall be 
2489  responsible for ensuring that the total amounts of the 
2490  exemptions authorized do not exceed the limits as specified in 
2491  subparagraph 2. 
2492         5. The Florida Energy and Climate Commission shall 
2493  determine and publish on a regular basis the amount of sales tax 
2494  funds remaining in each fiscal year. 
2495         6. This paragraph expires July 1, 2010. 
2496         (ddd) Advertising materials distributed free of charge by 
2497  mail in an envelope.—Likewise exempt are materials consisting 
2498  exclusively of advertisements, such as individual coupons or 
2499  other individual cards, sheets, or pages of printed advertising, 
2500  that are distributed free of charge by mail in an envelope for 
2501  10 or more persons on a monthly, bimonthly, or other regular 
2502  basis. 
2503         (eee) Certain delivery charges.—Separately stated charges 
2504  that can be avoided at the option of the purchaser for the 
2505  delivery, inspection, placement, or removal from packaging or 
2506  shipping materials of furniture or appliances by the selling 
2507  dealer at the premises of the purchaser or the removal of 
2508  similar items from the premises of the purchaser are exempt. If 
2509  any charge for delivery, inspection, placement, or removal of 
2510  furniture or appliances includes the modification, assembly, or 
2511  construction of such furniture or appliances, then all of the 
2512  charges are taxable. 
2513         (fff) Bookstore operations at a postsecondary educational 
2514  institution.—Also exempt from payment of the tax imposed by this 
2515  chapter on renting, leasing, letting, or granting a license for 
2516  the use of any real property are payments to a postsecondary 
2517  educational institution made by any person pursuant to a grant 
2518  of the right to conduct bookstore operations on real property 
2519  owned or leased by the postsecondary educational institution. As 
2520  used in this paragraph, the term “bookstore operations” means 
2521  activities consisting predominantly of sales, distribution, and 
2522  provision of textbooks, merchandise, and services traditionally 
2523  offered in college and university bookstores for the benefit of 
2524  the institution’s students, faculty, and staff. 
2525         (8) PARTIAL EXEMPTIONS; VESSELS ENGAGED IN INTERSTATE OR 
2526  FOREIGN COMMERCE.— 
2527         (a) The sale or use of vessels and parts thereof used to 
2528  transport persons or property in interstate or foreign commerce, 
2529  including commercial fishing vessels, is subject to the taxes 
2530  imposed in this chapter only to the extent provided herein. The 
2531  basis of the tax shall be the ratio of intrastate mileage to 
2532  interstate or foreign mileage traveled by the carrier’s vessels 
2533  which were used in interstate or foreign commerce and which had 
2534  at least some Florida mileage during the previous fiscal year. 
2535  The ratio would be determined at the close of the carrier’s 
2536  fiscal year. However, during the fiscal year in which the vessel 
2537  begins its initial operations in this state, the vessel’s 
2538  mileage apportionment factor may be determined on the basis of 
2539  an estimated ratio of anticipated miles in this state to 
2540  anticipated total miles for that year and, subsequently, 
2541  additional tax shall be paid on the vessel, or a refund may be 
2542  applied for, on the basis of the actual ratio of the vessel’s 
2543  miles in this state to its total miles for that year. This ratio 
2544  shall be applied each month to the total Florida purchases of 
2545  such vessels and parts thereof which are used in Florida to 
2546  establish that portion of the total used and consumed in 
2547  intrastate movement and subject to the tax at the applicable 
2548  rate. The basis for imposition of any discretionary surtax shall 
2549  be as set forth in s. 212.054. Items, appropriate to carry out 
2550  the purposes for which a vessel is designed or equipped and 
2551  used, purchased by the owner, operator, or agent of a vessel for 
2552  use on board such vessel shall be deemed to be parts of the 
2553  vessel upon which the same are used or consumed. Vessels and 
2554  parts thereof used to transport persons or property in 
2555  interstate and foreign commerce are hereby determined to be 
2556  susceptible to a distinct and separate classification for 
2557  taxation under the provisions of this chapter. Vessels and parts 
2558  thereof used exclusively in intrastate commerce do not qualify 
2559  for the proration of tax. 
2560         (b) The partial exemption provided for in this subsection 
2561  shall not be allowed unless the purchaser signs an affidavit 
2562  stating that the item or items to be partially exempted are for 
2563  the exclusive use designated herein and setting forth the extent 
2564  of such partial exemption. Any person furnishing a false 
2565  affidavit to such effect for the purpose of evading payment of 
2566  any tax imposed under this chapter is subject to the penalties 
2567  set forth in s. 212.12 and as otherwise provided by law. 
2568         (c) It is the intent of the Legislature that neither 
2569  subsection (4) nor this subsection shall be construed as 
2570  imposing the tax provided by this chapter on vessels used as 
2571  common carriers, contract carriers, or private carriers, engaged 
2572  in interstate or foreign commerce, except to the extent provided 
2573  by the pro rata formula provided in subsection (4) and in 
2574  paragraph (a). 
2575         (9) PARTIAL EXEMPTIONS; RAILROADS AND MOTOR VEHICLES 
2576  ENGAGED IN INTERSTATE OR FOREIGN COMMERCE.— 
2577         (a) Railroads that are licensed as common carriers by the 
2578  Surface Transportation Board and parts thereof used to transport 
2579  persons or property in interstate or foreign commerce are 
2580  subject to tax imposed in this chapter only to the extent 
2581  provided herein. The basis of the tax shall be the ratio of 
2582  intrastate mileage to interstate or foreign mileage traveled by 
2583  the carrier during the previous fiscal year of the carrier. Such 
2584  ratio is to be determined at the close of the carrier’s fiscal 
2585  year. However, during the fiscal year in which the railroad 
2586  begins its initial operations in this state, the railroad’s 
2587  mileage apportionment factor may be determined on the basis of 
2588  an estimated ratio of anticipated miles in this state to 
2589  anticipated total miles for that year and, subsequently, 
2590  additional tax shall be paid on the railroad, or a refund may be 
2591  applied for, on the basis of the actual ratio of the railroad’s 
2592  miles in this state to its total miles for that year. This ratio 
2593  shall be applied each month to the purchases of the railroad in 
2594  this state which are used in this state to establish that 
2595  portion of the total used and consumed in intrastate movement 
2596  and subject to tax under this chapter. The basis for imposition 
2597  of any discretionary surtax is set forth in s. 212.054. 
2598  Railroads that are licensed as common carriers by the Surface 
2599  Transportation Board and parts thereof used to transport persons 
2600  or property in interstate and foreign commerce are hereby 
2601  determined to be susceptible to a distinct and separate 
2602  classification for taxation under the provisions of this 
2603  chapter. 
2604         (b) Motor vehicles that are engaged in interstate commerce 
2605  as common carriers, and parts thereof, used to transport persons 
2606  or property in interstate or foreign commerce are subject to tax 
2607  imposed in this chapter only to the extent provided herein. The 
2608  basis of the tax shall be the ratio of intrastate mileage to 
2609  interstate or foreign mileage traveled by the carrier’s motor 
2610  vehicles which were used in interstate or foreign commerce and 
2611  which had at least some Florida mileage during the previous 
2612  fiscal year of the carrier. Such ratio is to be determined at 
2613  the close of the carrier’s fiscal year. However, during the 
2614  fiscal year in which the carrier begins its initial operations 
2615  in this state, the carrier’s mileage apportionment factor may be 
2616  determined on the basis of an estimated ratio of anticipated 
2617  miles in this state to anticipated total miles for that year 
2618  and, subsequently, additional tax shall be paid on the carrier, 
2619  or a refund may be applied for, on the basis of the actual ratio 
2620  of the carrier’s miles in this state to its total miles for that 
2621  year. This ratio shall be applied each month to the purchases in 
2622  this state of such motor vehicles and parts thereof which are 
2623  used in this state to establish that portion of the total used 
2624  and consumed in intrastate movement and subject to tax under 
2625  this chapter. The basis for imposition of any discretionary 
2626  surtax is set forth in s. 212.054. Motor vehicles that are 
2627  engaged in interstate commerce, and parts thereof, used to 
2628  transport persons or property in interstate and foreign commerce 
2629  are hereby determined to be susceptible to a distinct and 
2630  separate classification for taxation under the provisions of 
2631  this chapter. Motor vehicles and parts thereof used exclusively 
2632  in intrastate commerce do not qualify for the proration of tax. 
2633  For purposes of this paragraph, parts of a motor vehicle engaged 
2634  in interstate commerce include a separate tank not connected to 
2635  the fuel supply system of the motor vehicle into which diesel 
2636  fuel is placed to operate a refrigeration unit or other 
2637  equipment. 
2638         (10) PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT OF 
2639  ANOTHER STATE.— 
2640         (a) The tax collected on the sale of a new or used motor 
2641  vehicle in this state to a resident of another state shall be an 
2642  amount equal to the sales tax which would be imposed on such 
2643  sale under the laws of the state of which the purchaser is a 
2644  resident, except that such tax shall not exceed the tax that 
2645  would otherwise be imposed under this chapter. At the time of 
2646  the sale, the purchaser shall execute a notarized statement of 
2647  his or her intent to license the vehicle in the state of which 
2648  the purchaser is a resident within 45 days of the sale and of 
2649  the fact of the payment to the State of Florida of a sales tax 
2650  in an amount equivalent to the sales tax of his or her state of 
2651  residence and shall submit the statement to the appropriate 
2652  sales tax collection agency in his or her state of residence. 
2653  Nothing in this subsection shall be construed to require the 
2654  removal of the vehicle from this state following the filing of 
2655  an intent to license the vehicle in the purchaser’s home state 
2656  if the purchaser licenses the vehicle in his or her home state 
2657  within 45 days after the date of sale. 
2658         (b) Notwithstanding the partial exemption allowed in 
2659  paragraph (a), a vehicle is subject to this state’s sales tax at 
2660  the applicable state sales tax rate plus authorized surtaxes 
2661  when the vehicle is purchased by a nonresident corporation or 
2662  partnership and: 
2663         1. An officer of the corporation is a resident of this 
2664  state; 
2665         2. A stockholder of the corporation who owns at least 10 
2666  percent of the corporation is a resident of this state; or 
2667         3. A partner in the partnership who has at least 10 percent 
2668  ownership is a resident of this state. 
2669 
2670  However, if the vehicle is removed from this state within 45 
2671  days after purchase and remains outside the state for a minimum 
2672  of 180 days, the vehicle may qualify for the partial exemption 
2673  allowed in paragraph (a) despite the residency of owners or 
2674  stockholders of the purchasing entity. 
2675         (c) Nothing herein shall require the payment of tax to the 
2676  State of Florida for assessments made prior to July 1, 2001, if 
2677  the tax imposed by this section has been paid to the state in 
2678  which the vehicle was licensed and the department has assessed a 
2679  like amount of tax on the same transactions. This provision 
2680  shall apply retroactively to assessments that have been 
2681  protested prior to August 1, 1999, and have not been paid on the 
2682  date this act takes effect. 
2683         (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.— 
2684         (a) The tax imposed on the sale by a manufacturer of 
2685  flyable aircraft, who designs such aircraft, which sale may 
2686  include necessary equipment and modifications placed on such 
2687  flyable aircraft prior to delivery by the manufacturer, shall be 
2688  an amount equal to the sales tax which would be imposed on such 
2689  sale under the laws of the state in which the aircraft will be 
2690  domiciled. 
2691         (b) This partial exemption applies only if the purchaser is 
2692  a resident of another state who will not use the aircraft in 
2693  this state, or if the purchaser is a resident of another state 
2694  and uses the aircraft in interstate or foreign commerce, or if 
2695  the purchaser is a resident of a foreign country. 
2696         (c) The maximum tax collectible under this subsection may 
2697  not exceed 6 percent of the sales price of such aircraft. No 
2698  Florida tax may be imposed on the sale of such aircraft if the 
2699  state in which the aircraft will be domiciled does not allow 
2700  Florida sales or use tax to be credited against its sales or use 
2701  tax. Furthermore, no tax may be imposed on the sale of such 
2702  aircraft if the state in which the aircraft will be domiciled 
2703  has enacted a sales and use tax exemption for flyable aircraft 
2704  or if the aircraft will be domiciled outside the United States. 
2705         (d) The purchaser shall execute a sworn affidavit attesting 
2706  that he or she is not a resident of this state and stating where 
2707  the aircraft will be domiciled. If the aircraft is subsequently 
2708  used in this state within 6 months of the time of purchase, in 
2709  violation of the intent of this subsection, the purchaser shall 
2710  be liable for payment of the full use tax imposed by this 
2711  chapter and shall be subject to the penalty imposed by s. 
2712  212.12(2), which penalty shall be mandatory. Notwithstanding the 
2713  provisions of this paragraph, the owner of an aircraft purchased 
2714  pursuant to this subsection may permit the aircraft to be 
2715  returned to this state for repairs within 6 months after the 
2716  date of sale without the aircraft being in violation of the law 
2717  and without incurring liability for payment of tax or penalty on 
2718  the purchase price of the aircraft, so long as the aircraft is 
2719  removed from this state within 20 days after the completion of 
2720  the repairs and such removal can be proven by invoices for fuel, 
2721  tie-down, or hangar charges issued by out-of-state vendors or 
2722  suppliers or similar documentation. 
2723         (12) PARTIAL EXEMPTION; MASTER TAPES, RECORDS, FILMS, OR 
2724  VIDEO TAPES.— 
2725         (a) There are exempt from the taxes imposed by this chapter 
2726  the gross receipts from the sale or lease of, and the storage, 
2727  use, or other consumption in this state of, master tapes or 
2728  master records embodying sound, or master films or master video 
2729  tapes; except that amounts paid to recording studios or motion 
2730  picture or television studios for the tangible elements of such 
2731  master tapes, records, films, or video tapes are taxable as 
2732  otherwise provided in this chapter. This exemption will inure to 
2733  the taxpayer upon presentation of the certificate of exemption 
2734  issued to the taxpayer under the provisions of s. 288.1258. 
2735         (b) For the purposes of this subsection, the term: 
2736         1. “Amounts paid for the tangible elements” does not 
2737  include any amounts paid for the copyrightable, artistic, or 
2738  other intangible elements of such master tapes, records, films, 
2739  or video tapes, whether designated as royalties or otherwise, 
2740  including, but not limited to, services rendered in producing, 
2741  fabricating, processing, or imprinting tangible personal 
2742  property or any other services or production expenses in 
2743  connection therewith which may otherwise be construed as 
2744  constituting a “sale” under s. 212.02. 
2745         2. “Master films or master video tapes” means films or 
2746  video tapes utilized by the motion picture and television 
2747  production industries in making visual images for reproduction. 
2748         3. “Master tapes or master records embodying sound” means 
2749  tapes, records, and other devices utilized by the recording 
2750  industry in making recordings embodying sound. 
2751         4. “Motion picture or television studio” means a facility 
2752  in which film or video tape productions or parts of productions 
2753  are made and which contains the necessary equipment and 
2754  personnel for this purpose and includes a mobile unit or vehicle 
2755  that is equipped in much the same manner as a stationary studio 
2756  and used in the making of film or video tape productions. 
2757         5. “Recording studio” means a place where, by means of 
2758  mechanical or electronic devices, voices, music, or other sounds 
2759  are transmitted to tapes, records, or other devices capable of 
2760  reproducing sound. 
2761         6. “Recording industry” means any person engaged in an 
2762  occupation or business of making recordings embodying sound for 
2763  a livelihood or for a profit. 
2764         7. “Motion picture or television production industry” means 
2765  any person engaged in an occupation or business for a livelihood 
2766  or for profit of making visual motion picture or television 
2767  visual images for showing on screen or television for 
2768  theatrical, commercial, advertising, or educational purposes. 
2769         (13) No transactions shall be exempt from the tax imposed 
2770  by this chapter except those expressly exempted herein. All laws 
2771  granting tax exemptions, to the extent they may be inconsistent 
2772  or in conflict with this chapter, including, but not limited to, 
2773  the following designated laws, shall yield to and be superseded 
2774  by the provisions of this subsection: ss. 125.019, 153.76, 
2775  154.2331, 159.15, 159.31, 159.50, 159.708, 163.385, 163.395, 
2776  215.76, 243.33, 315.11, 348.65, 348.762, 349.13, 403.1834, 
2777  616.07, and 623.09, and the following Laws of Florida, acts of 
2778  the year indicated: s. 31, chapter 30843, 1955; s. 19, chapter 
2779  30845, 1955; s. 12, chapter 30927, 1955; s. 8, chapter 31179, 
2780  1955; s. 15, chapter 31263, 1955; s. 13, chapter 31343, 1955; s. 
2781  16, chapter 59-1653; s. 13, chapter 59-1356; s. 12, chapter 61 
2782  2261; s. 19, chapter 61-2754; s. 10, chapter 61-2686; s. 11, 
2783  chapter 63-1643; s. 11, chapter 65-1274; s. 16, chapter 67-1446; 
2784  and s. 10, chapter 67-1681. This subsection does not supersede 
2785  the authority of a local government to adopt financial and local 
2786  government incentives pursuant to s. 163.2517. 
2787         (14) TECHNICAL ASSISTANCE ADVISORY COMMITTEE.—The 
2788  department shall establish a technical assistance advisory 
2789  committee with public and private sector members, including 
2790  representatives of both manufacturers and retailers, to advise 
2791  the Department of Revenue and the Department of Health in 
2792  determining the taxability of specific products and product 
2793  lines pursuant to subsection (1) and paragraph (2)(a). In 
2794  determining taxability and in preparing a list of specific 
2795  products and product lines that are or are not taxable, the 
2796  committee shall not be subject to the provisions of chapter 120. 
2797  Private sector members shall not be compensated for serving on 
2798  the committee. 
2799         (15) ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.— 
2800         (a) Beginning July 1, 1995, charges for electrical energy 
2801  used by a qualified business at a fixed location in an 
2802  enterprise zone in a municipality which has enacted an ordinance 
2803  pursuant to s. 166.231(8) which provides for exemption of 
2804  municipal utility taxes on such businesses or in an enterprise 
2805  zone jointly authorized by a county and a municipality which has 
2806  enacted an ordinance pursuant to s. 166.231(8) which provides 
2807  for exemption of municipal utility taxes on such businesses 
2808  shall receive an exemption equal to 50 percent of the tax 
2809  imposed by this chapter, or, if no less than 20 percent of the 
2810  employees of the business are residents of an enterprise zone, 
2811  excluding temporary and part-time employees, the exemption shall 
2812  be equal to 100 percent of the tax imposed by this chapter. A 
2813  qualified business may receive such exemption for a period of 5 
2814  years from the billing period beginning not more than 30 days 
2815  following notification to the applicable utility company by the 
2816  department that an exemption has been authorized pursuant to 
2817  this subsection and s. 166.231(8). 
2818         (b) To receive this exemption, a business must file an 
2819  application, with the enterprise zone development agency having 
2820  jurisdiction over the enterprise zone where the business is 
2821  located, on a form provided by the department for the purposes 
2822  of this subsection and s. 166.231(8). The application shall be 
2823  made under oath and shall include: 
2824         1. The name and location of the business. 
2825         2. The identifying number assigned pursuant to s. 290.0065 
2826  to the enterprise zone in which the business is located. 
2827         3. The date on which electrical service is to be first 
2828  initiated to the business. 
2829         4. The name and mailing address of the entity from which 
2830  electrical energy is to be purchased. 
2831         5. The date of the application. 
2832         6. The name of the city in which the business is located. 
2833         7. If applicable, the name and address of each permanent 
2834  employee of the business including, for each employee who is a 
2835  resident of an enterprise zone, the identifying number assigned 
2836  pursuant to s. 290.0065 to the enterprise zone in which the 
2837  employee resides. 
2838         8. Whether the business is a small business as defined by 
2839  s. 288.703(1). 
2840         (c) Within 10 working days after receipt of an application, 
2841  the enterprise zone development agency shall review the 
2842  application to determine if it contains all information required 
2843  pursuant to paragraph (b) and meets the criteria set out in this 
2844  subsection. The agency shall certify all applications that 
2845  contain the information required pursuant to paragraph (b) and 
2846  meet the criteria set out in this subsection as eligible to 
2847  receive an exemption. If applicable, the agency shall also 
2848  certify if 20 percent of the employees of the business are 
2849  residents of an enterprise zone, excluding temporary and part 
2850  time employees. The certification shall be in writing, and a 
2851  copy of the certification shall be transmitted to the executive 
2852  director of the Department of Revenue. The applicant shall be 
2853  responsible for forwarding a certified application to the 
2854  department within 6 months after the occurrence of the 
2855  appropriate qualifying provision set out in paragraph (f). 
2856         (d) If, in a subsequent audit conducted by the department, 
2857  it is determined that the business did not meet the criteria 
2858  mandated in this subsection, the amount of taxes exempted shall 
2859  immediately be due and payable to the department by the 
2860  business, together with the appropriate interest and penalty, 
2861  computed from the due date of each bill for the electrical 
2862  energy purchased as exempt under this subsection, in the manner 
2863  prescribed by this chapter. 
2864         (e) The department shall adopt rules governing applications 
2865  for, issuance of, and the form of applications for the exemption 
2866  authorized in this subsection and provisions for recapture of 
2867  taxes exempted under this subsection, and the department may 
2868  establish guidelines as to qualifications for exemption. 
2869         (f) For the purpose of the exemption provided in this 
2870  subsection, the term “qualified business” means a business which 
2871  is: 
2872         1. First occupying a new structure to which electrical 
2873  service, other than that used for construction purposes, has not 
2874  been previously provided or furnished; 
2875         2. Newly occupying an existing, remodeled, renovated, or 
2876  rehabilitated structure to which electrical service, other than 
2877  that used for remodeling, renovation, or rehabilitation of the 
2878  structure, has not been provided or furnished in the three 
2879  preceding billing periods; or 
2880         3. Occupying a new, remodeled, rebuilt, renovated, or 
2881  rehabilitated structure for which a refund has been granted 
2882  pursuant to paragraph (5)(g). 
2883         (g) This subsection expires on the date specified in s. 
2884  290.016 for the expiration of the Florida Enterprise Zone Act, 
2885  except that: 
2886         1. Paragraph (d) shall not expire; and 
2887         2. Any qualified business which has been granted an 
2888  exemption under this subsection prior to that date shall be 
2889  allowed the full benefit of this exemption as if this subsection 
2890  had not expired on that date. 
2891         (16) EXEMPTIONS; SPACE ACTIVITIES.— 
2892         (a) There shall be exempt from the tax imposed by this 
2893  chapter: 
2894         1. The sale, lease, use, storage, consumption, or 
2895  distribution in this state of any orbital space facility, space 
2896  propulsion system, or space vehicle, satellite, or station of 
2897  any kind possessing space flight capacity, including the 
2898  components thereof. 
2899         2. The sale, lease, use, storage, consumption, or 
2900  distribution in this state of tangible personal property placed 
2901  on or used aboard any orbital space facility, space propulsion 
2902  system, or space vehicle, satellite, or station of any kind, 
2903  irrespective of whether such tangible personal property is 
2904  returned to this state for subsequent use, storage, or 
2905  consumption in any manner. This exemption is not affected by the 
2906  failure of a launch to occur, or the destruction of a launch 
2907  vehicle or any components thereof. 
2908         (b) This subsection shall be strictly construed and 
2909  enforced. 
2910         (17) EXEMPTIONS; CERTAIN GOVERNMENT CONTRACTORS.— 
2911         (a) Subject to paragraph (d), the tax imposed by this 
2912  chapter does not apply to the sale to or use by a government 
2913  contractor of overhead materials. The term “government 
2914  contractor” includes prime contractors and subcontractors. 
2915         (b) As used in this subsection, the term “overhead 
2916  materials” means all tangible personal property, other than 
2917  qualifying property as defined in s. 212.02(14)(a) and 
2918  electricity, which is used or consumed in the performance of a 
2919  qualifying contract, title to which property vests in or passes 
2920  to the government under the contract. 
2921         (c) As used in this subsection and in s. 212.02(14)(a), the 
2922  term “qualifying contract” means a contract with the United 
2923  States Department of Defense or the National Aeronautics and 
2924  Space Administration, or a subcontract thereunder, but does not 
2925  include a contract or subcontract for the repair, alteration, 
2926  improvement, or construction of real property, except to the 
2927  extent that purchases under such a contract would otherwise be 
2928  exempt from the tax imposed by this chapter. 
2929         (d) The exemption provided in this subsection applies as 
2930  follows: 
2931         1. Beginning July 1, 2000, the tax imposed by this chapter 
2932  shall be applicable to 60 percent of the sales price or cost 
2933  price of such overhead materials. 
2934         2. Beginning July 1, 2001, the tax imposed by this chapter 
2935  shall be applicable to 40 percent of the sales price or cost 
2936  price of such overhead materials. 
2937         3. Beginning July 1, 2002, the tax imposed by this chapter 
2938  shall be applicable to 20 percent of the sales price or cost 
2939  price of such overhead materials. 
2940         4. Beginning July 1, 2003, the entire sales price or cost 
2941  price of such overhead materials is exempt from the tax imposed 
2942  by this chapter. 
2943 
2944  The exemption provided in this subsection does not apply to any 
2945  part of the cost of overhead materials allocated to a contract 
2946  that is not a qualifying contract. 
2947         (e) Possession by a seller of a resale certificate or 
2948  direct-pay permit relieves the seller from the responsibility of 
2949  collecting the tax, and the department shall look solely to the 
2950  contractor for recovery of such tax if it determines that the 
2951  contractor was not entitled to the exemption. The contractor 
2952  shall self-accrue and remit any applicable sales or use tax due 
2953  with respect to overhead materials and with respect to costs 
2954  allocable to contracts that are not qualifying contracts. The 
2955  department may amend its rules to reflect the use of resale 
2956  certificates and direct-pay permits with respect to the 
2957  exemption provided for in this subsection. 
2958         (f) This subsection is not an expression of legislative 
2959  intent as to the applicability of any tax to any sale or use of 
2960  overhead materials prior to July 1, 1999. In addition, this 
2961  subsection does not imply that transactions or costs that are 
2962  not described in this subsection are taxable. 
2963         (18) MACHINERY AND EQUIPMENT USED PREDOMINANTLY FOR 
2964  RESEARCH AND DEVELOPMENT.— 
2965         (a) Machinery and equipment used predominantly for research 
2966  and development as defined in this subsection are exempt from 
2967  the tax imposed by this chapter. 
2968         (b) For purposes of this subsection: 
2969         1. “Machinery and equipment” includes, but is not limited 
2970  to, molds, dies, machine tooling, other appurtenances or 
2971  accessories to machinery and equipment, testing and measuring 
2972  equipment, test beds, computers, and software, whether purchased 
2973  or self-fabricated, and, if self-fabricated, includes materials 
2974  and labor for design, fabrication, and assembly. 
2975         2. “Predominantly” means at least 50 percent of the time. 
2976         3. “Research and development” means research that has one 
2977  of the following as its ultimate goal: 
2978         a. Basic research in a scientific field of endeavor; 
2979         b. Advancing knowledge or technology in a scientific or 
2980  technical field of endeavor; 
2981         c. The development of a new product, whether or not the new 
2982  product is offered for sale; 
2983         d. The improvement of an existing product, whether or not 
2984  the improved product is offered for sale; 
2985         e. The development of new uses of an existing product, 
2986  whether or not a new use is offered as a rationale to purchase 
2987  the product; or 
2988         f. The design and development of prototypes, whether or not 
2989  a resulting product is offered for sale. 
2990 
2991  The term “research and development” does not include ordinary 
2992  testing or inspection of materials or products used for quality 
2993  control, market research, efficiency surveys, consumer surveys, 
2994  advertising and promotions, management studies, or research in 
2995  connection with literary, historical, social science, 
2996  psychological, or other similar nontechnical activities. 
2997         (c) The department may adopt rules pursuant to ss. 
2998  120.536(1) and 120.54 that provide for administering and 
2999  implementing this exemption. 
3000         (d) A person who claims the exemption provided in this 
3001  subsection shall furnish the vendor of the machinery or 
3002  equipment, including the vendor of materials and labor used in 
3003  self-fabrication of the machinery or equipment, an affidavit 
3004  stating that the item or items for which an exemption is claimed 
3005  are machinery and equipment that will be used predominantly for 
3006  research and development as required by this subsection. A 
3007  purchaser who claims the exemption by refund shall include the 
3008  affidavit with the refund application. The affidavit must 
3009  contain the purchaser’s name, address, sales and use tax 
3010  registration number, and, if applicable, federal employer’s 
3011  identification number. Any person fraudulently furnishing an 
3012  affidavit to the vendor for the purpose of evading payment of 
3013  any tax imposed under this chapter shall be subject to the 
3014  penalty set forth in s. 212.085 and as otherwise provided by 
3015  law. 
3016         (e) In lieu of furnishing an affidavit, a purchaser 
3017  claiming the exemption provided in this subsection who has a 
3018  direct-pay permit may furnish the vendor with a copy of the 
3019  direct-pay permit and shall maintain all documentation necessary 
3020  to prove the exempt status of the purchases and fabrication 
3021  activity. 
3022         (f) Purchasers shall maintain all documentation necessary 
3023  to prove the exempt status of purchases and fabrication activity 
3024  and make such documentation available for inspection pursuant to 
3025  the requirements of s. 212.13(2). 
3026         Section 4. (1) Effective July 1, 2012, ss. 212.051, 
3027  212.052, 212.0598, 212.0602, 212.0801, 212.0821, 212.09, 
3028  212.096, 212.097, and 212.098, Florida Statutes, are repealed. 
3029         (2) Unless modified or reenacted as provided in s. 11.9035, 
3030  Florida Statutes, effective July 1, 2012, any exemption, 
3031  deduction, or credit from the state sales and use tax or any 
3032  exclusion of sales and services from such tax granted by the 
3033  following sections is repealed: 
3034         (a) Section 212.02, Florida Statutes, except rent on low 
3035  income housing under s. 212.02(2), Florida Statutes; 
3036         (b) Section 212.03, Florida Statutes, except rent charges 
3037  paid by long-term residents under s. 212.03(4), Florida 
3038  Statutes; rent charges paid by full-time students, by active 
3039  military personnel, and by permanent residents under s. 
3040  212.03(7)(a), Florida Statutes; rent charges in mobile home 
3041  parks under s. 212.03(7)(c), Florida Statutes; and rent charges 
3042  for living accommodations in migrant labor camps under s. 
3043  212.03(7)(d), Florida Statutes; 
3044         (c) Section 212.031, Florida Statutes, except utility 
3045  charges under s. 212.031(7), Florida Statutes; 
3046         (d) Sections 212.04, 212.05, and 212.0506, Florida 
3047  Statutes; 
3048         (e) Sections 212.06 and 212.081, Florida Statutes, except 
3049  any sale exempted by federal law or the United States 
3050  Constitution; and 
3051         (f) Sections 212.0601, 212.07, 212.12, 212.20, and 376.75, 
3052  Florida Statutes. 
3053         Section 5. Except as otherwise expressly provided in this 
3054  act, this act shall take effect July 1, 2010.