Bill Text: FL S0220 | 2010 | Regular Session | Comm Sub

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Bill Title: Tax On Sales, Use, and Other Transactions [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-04-30 - Placed on Special Order Calendar; Was taken up -SJ 01141; Substituted CS/HB 173 -SJ 01141; Laid on Table, companion bill(s) passed, see CS/HB 173 (Ch. 2010-128), CS/SB 1752 (Ch. 2010-147) -SJ 01141 [S0220 Detail]

Download: Florida-2010-S0220-Comm_Sub.html

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Florida Senate - 2010                              CS for SB 220 
 
By the Committee on Finance and Tax; and Senator Fasano 
593-04945-10                                           2010220c1 
1                        A bill to be entitled 
2         An act relating to the tax on sales, use, and other 
3         transactions; amending s. 212.05, F.S.; deleting a 
4         requirement that a specified penalty is mandatory and 
5         may not be waived by the Department of Revenue; 
6         deleting authorization to return certain aircraft to 
7         the state for repairs without liability for taxes and 
8         penalties under certain circumstances; amending s. 
9         212.08, F.S.; exempting from the use tax aircraft that 
10         are owned by nonresidents and that enter and remain in 
11         the state for certain purposes under certain 
12         circumstances; providing an effective date. 
13 
14  Be It Enacted by the Legislature of the State of Florida: 
15 
16         Section 1. Paragraph (a) of subsection (1) of section 
17  212.05, Florida Statutes, is amended to read: 
18         212.05 Sales, storage, use tax.—It is hereby declared to be 
19  the legislative intent that every person is exercising a taxable 
20  privilege who engages in the business of selling tangible 
21  personal property at retail in this state, including the 
22  business of making mail order sales, or who rents or furnishes 
23  any of the things or services taxable under this chapter, or who 
24  stores for use or consumption in this state any item or article 
25  of tangible personal property as defined herein and who leases 
26  or rents such property within the state. 
27         (1) For the exercise of such privilege, a tax is levied on 
28  each taxable transaction or incident, which tax is due and 
29  payable as follows: 
30         (a)1.a. At the rate of 6 percent of the sales price of each 
31  item or article of tangible personal property when sold at 
32  retail in this state, computed on each taxable sale for the 
33  purpose of remitting the amount of tax due the state, and 
34  including each and every retail sale. 
35         b. Each occasional or isolated sale of an aircraft, boat, 
36  mobile home, or motor vehicle of a class or type which is 
37  required to be registered, licensed, titled, or documented in 
38  this state or by the United States Government shall be subject 
39  to tax at the rate provided in this paragraph. The department 
40  shall by rule adopt any nationally recognized publication for 
41  valuation of used motor vehicles as the reference price list for 
42  any used motor vehicle which is required to be licensed pursuant 
43  to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any 
44  party to an occasional or isolated sale of such a vehicle 
45  reports to the tax collector a sales price which is less than 80 
46  percent of the average loan price for the specified model and 
47  year of such vehicle as listed in the most recent reference 
48  price list, the tax levied under this paragraph shall be 
49  computed by the department on such average loan price unless the 
50  parties to the sale have provided to the tax collector an 
51  affidavit signed by each party, or other substantial proof, 
52  stating the actual sales price. Any party to such sale who 
53  reports a sales price less than the actual sales price is guilty 
54  of a misdemeanor of the first degree, punishable as provided in 
55  s. 775.082 or s. 775.083. The department shall collect or 
56  attempt to collect from such party any delinquent sales taxes. 
57  In addition, such party shall pay any tax due and any penalty 
58  and interest assessed plus a penalty equal to twice the amount 
59  of the additional tax owed. Notwithstanding any other provision 
60  of law, the Department of Revenue may waive or compromise any 
61  penalty imposed pursuant to this subparagraph. 
62         2. This paragraph does not apply to the sale of a boat or 
63  aircraft by or through a registered dealer under this chapter to 
64  a purchaser who, at the time of taking delivery, is a 
65  nonresident of this state, does not make his or her permanent 
66  place of abode in this state, and is not engaged in carrying on 
67  in this state any employment, trade, business, or profession in 
68  which the boat or aircraft will be used in this state, or is a 
69  corporation none of the officers or directors of which is a 
70  resident of, or makes his or her permanent place of abode in, 
71  this state, or is a noncorporate entity that has no individual 
72  vested with authority to participate in the management, 
73  direction, or control of the entity’s affairs who is a resident 
74  of, or makes his or her permanent abode in, this state. For 
75  purposes of this exemption, either a registered dealer acting on 
76  his or her own behalf as seller, a registered dealer acting as 
77  broker on behalf of a seller, or a registered dealer acting as 
78  broker on behalf of the purchaser may be deemed to be the 
79  selling dealer. This exemption shall not be allowed unless: 
80         a. The purchaser removes a qualifying boat, as described in 
81  sub-subparagraph f., from the state within 90 days after the 
82  date of purchase or extension, or the purchaser removes a 
83  nonqualifying boat or an aircraft from this state within 10 days 
84  after the date of purchase or, when the boat or aircraft is 
85  repaired or altered, within 20 days after completion of the 
86  repairs or alterations; 
87         b. The purchaser, within 30 days from the date of 
88  departure, shall provide the department with written proof that 
89  the purchaser licensed, registered, titled, or documented the 
90  boat or aircraft outside the state. If such written proof is 
91  unavailable, within 30 days the purchaser shall provide proof 
92  that the purchaser applied for such license, title, 
93  registration, or documentation. The purchaser shall forward to 
94  the department proof of title, license, registration, or 
95  documentation upon receipt; 
96         c. The purchaser, within 10 days of removing the boat or 
97  aircraft from Florida, shall furnish the department with proof 
98  of removal in the form of receipts for fuel, dockage, slippage, 
99  tie-down, or hangaring from outside of Florida. The information 
100  so provided must clearly and specifically identify the boat or 
101  aircraft; 
102         d. The selling dealer, within 5 days of the date of sale, 
103  shall provide to the department a copy of the sales invoice, 
104  closing statement, bills of sale, and the original affidavit 
105  signed by the purchaser attesting that he or she has read the 
106  provisions of this section; 
107         e. The seller makes a copy of the affidavit a part of his 
108  or her record for as long as required by s. 213.35; and 
109         f. Unless the nonresident purchaser of a boat of 5 net tons 
110  of admeasurement or larger intends to remove the boat from this 
111  state within 10 days after the date of purchase or when the boat 
112  is repaired or altered, within 20 days after completion of the 
113  repairs or alterations, the nonresident purchaser shall apply to 
114  the selling dealer for a decal which authorizes 90 days after 
115  the date of purchase for removal of the boat. The nonresident 
116  purchaser of a qualifying boat may apply to the selling dealer 
117  within 60 days after the date of purchase for an extension decal 
118  that authorizes the boat to remain in this state for an 
119  additional 90 days, but not more than a total of 180 days, 
120  before the nonresident purchaser is required to pay the tax 
121  imposed by this chapter. The department is authorized to issue 
122  decals in advance to dealers. The number of decals issued in 
123  advance to a dealer shall be consistent with the volume of the 
124  dealer’s past sales of boats which qualify under this sub 
125  subparagraph. The selling dealer or his or her agent shall mark 
126  and affix the decals to qualifying boats in the manner 
127  prescribed by the department, prior to delivery of the boat. 
128         (I) The department is hereby authorized to charge dealers a 
129  fee sufficient to recover the costs of decals issued, except the 
130  extension decal shall cost $425. 
131         (II) The proceeds from the sale of decals will be deposited 
132  into the administrative trust fund. 
133         (III) Decals shall display information to identify the boat 
134  as a qualifying boat under this sub-subparagraph, including, but 
135  not limited to, the decal’s date of expiration. 
136         (IV) The department is authorized to require dealers who 
137  purchase decals to file reports with the department and may 
138  prescribe all necessary records by rule. All such records are 
139  subject to inspection by the department. 
140         (V) Any dealer or his or her agent who issues a decal 
141  falsely, fails to affix a decal, mismarks the expiration date of 
142  a decal, or fails to properly account for decals will be 
143  considered prima facie to have committed a fraudulent act to 
144  evade the tax and will be liable for payment of the tax plus a 
145  mandatory penalty of 200 percent of the tax, and shall be liable 
146  for fine and punishment as provided by law for a conviction of a 
147  misdemeanor of the first degree, as provided in s. 775.082 or s. 
148  775.083. 
149         (VI) Any nonresident purchaser of a boat who removes a 
150  decal prior to permanently removing the boat from the state, or 
151  defaces, changes, modifies, or alters a decal in a manner 
152  affecting its expiration date prior to its expiration, or who 
153  causes or allows the same to be done by another, will be 
154  considered prima facie to have committed a fraudulent act to 
155  evade the tax and will be liable for payment of the tax plus a 
156  mandatory penalty of 200 percent of the tax, and shall be liable 
157  for fine and punishment as provided by law for a conviction of a 
158  misdemeanor of the first degree, as provided in s. 775.082 or s. 
159  775.083. 
160         (VII) The department is authorized to adopt rules necessary 
161  to administer and enforce this subparagraph and to publish the 
162  necessary forms and instructions. 
163         (VIII) The department is hereby authorized to adopt 
164  emergency rules pursuant to s. 120.54(4) to administer and 
165  enforce the provisions of this subparagraph. 
166 
167  If the purchaser fails to remove the qualifying boat from this 
168  state within the maximum 180 days after purchase or a 
169  nonqualifying boat or an aircraft from this state within 10 days 
170  after purchase or, when the boat or aircraft is repaired or 
171  altered, within 20 days after completion of such repairs or 
172  alterations, or permits the boat or aircraft to return to this 
173  state within 6 months from the date of departure, except as 
174  provided in s. 212.08(7)(ggg), or if the purchaser fails to 
175  furnish the department with any of the documentation required by 
176  this subparagraph within the prescribed time period, the 
177  purchaser shall be liable for use tax on the cost price of the 
178  boat or aircraft and, in addition thereto, payment of a penalty 
179  to the Department of Revenue equal to the tax payable. This 
180  penalty shall be in lieu of the penalty imposed by s. 212.12(2) 
181  and is mandatory and shall not be waived by the department. The 
182  maximum 180-day period following the sale of a qualifying boat 
183  tax-exempt to a nonresident may not be tolled for any reason. 
184  Notwithstanding other provisions of this paragraph to the 
185  contrary, an aircraft purchased in this state under the 
186  provisions of this paragraph may be returned to this state for 
187  repairs within 6 months after the date of its departure without 
188  being in violation of the law and without incurring liability 
189  for the payment of tax or penalty on the purchase price of the 
190  aircraft if the aircraft is removed from this state within 20 
191  days after the completion of the repairs and if such removal can 
192  be demonstrated by invoices for fuel, tie-down, hangar charges 
193  issued by out-of-state vendors or suppliers, or similar 
194  documentation. 
195         Section 2. Paragraph (ggg) is added to subsection (7) of 
196  section 212.08, Florida Statutes, to read: 
197         212.08 Sales, rental, use, consumption, distribution, and 
198  storage tax; specified exemptions.—The sale at retail, the 
199  rental, the use, the consumption, the distribution, and the 
200  storage to be used or consumed in this state of the following 
201  are hereby specifically exempt from the tax imposed by this 
202  chapter. 
203         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 
204  entity by this chapter do not inure to any transaction that is 
205  otherwise taxable under this chapter when payment is made by a 
206  representative or employee of the entity by any means, 
207  including, but not limited to, cash, check, or credit card, even 
208  when that representative or employee is subsequently reimbursed 
209  by the entity. In addition, exemptions provided to any entity by 
210  this subsection do not inure to any transaction that is 
211  otherwise taxable under this chapter unless the entity has 
212  obtained a sales tax exemption certificate from the department 
213  or the entity obtains or provides other documentation as 
214  required by the department. Eligible purchases or leases made 
215  with such a certificate must be in strict compliance with this 
216  subsection and departmental rules, and any person who makes an 
217  exempt purchase with a certificate that is not in strict 
218  compliance with this subsection and the rules is liable for and 
219  shall pay the tax. The department may adopt rules to administer 
220  this subsection. 
221         (ggg) Aircraft temporarily in the state.— 
222         1. An aircraft owned by a nonresident is exempt from the 
223  use tax imposed under this chapter if the aircraft enters and 
224  remains in this state for less than a total of 21 days during 
225  the 6-month period after the date of purchase. The temporary use 
226  of the aircraft and subsequent removal from this state may be 
227  proven by invoices for fuel, tie-down, or hangar charges issued 
228  by out-of-state vendors or suppliers or similar documentation 
229  that clearly and specifically identifies the aircraft. The 
230  exemption created by this subparagraph is in addition to the 
231  exemptions provided in subparagraph 2. and s. 212.05(1)(a). 
232         2. An aircraft owned by a nonresident is exempt from the 
233  use tax imposed under this chapter if the aircraft enters or 
234  remains in this state exclusively for the purpose of flight 
235  training, repairs, alterations, refitting, or modification. Such 
236  purposes must be supported by written documentation issued by 
237  in-state vendors or suppliers which clearly and specifically 
238  identifies the aircraft. The exemption created by this 
239  subparagraph is in addition to the exemptions provided in 
240  subparagraph 1. and s. 212.05(1)(a). 
241         Section 3. This act shall take effect July 1, 2010.